STORAGE AREA LICENSE AGREEMENT
THIS AGREEMENT is made as of this 27th day of July, 2018, by and between Carlsbad Palomar, LLC, a Delaware limited liability company (hereinafter called Licensor), and Spinal Elements, Inc., a Georgia corporation (hereinafter called Licensee).
R E C I T A L S
WHEREAS, by lease dated September 27, 2012 (the Lease) Licensors predecessor-in-interest did lease to Licensee approximately 39,655 rentable square feet of space (the Premises) in the building located at 3115 Melrose Drive, Carlsbad, CA 92010 (the Property);
WHEREAS, In connection with the use and occupation by Licensee of the Premises, Licensee has requested the right to use a portion of the Property as shown as Suite 140 on Exhibit A attached hereto consisting of approximately 2,007 square feet for storage space (the Storage Area) and the parties are entering into this Agreement to set forth the terms and conditions for such use.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, and good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
1. Use. Licensor hereby grants to Licensee a license to use the Storage Area on the terms and conditions contained in this Agreement. The Storage Area shall be used solely for the lawful storage of equipment, inventory and/or other items normally used in Licensees business as such business is permitted to be conducted under the Lease, and for no other purpose. In no event shall Licensee keep in the Storage Area any flammable, combustible or explosive fluid, chemical or substance, any perishable items or any toxic or Hazardous Materials (as defined in the Lease). Licensee shall use the Storage Area in accordance with Licensors rules and regulations as defined in Exhibit B of the Lease.
2. License Period. The term of this Agreement shall be for a period (the License Period) commencing August 1, 2018 and ending on the date of expiration or earlier termination of the Lease, unless sooner terminated as hereinafter provided.
3. Fee. The Licensee shall, throughout the License Period, pay to the Licensor without any deduction, abatement or set-off whatsoever, a fee of Thirty Thousand One Hundred Five Dollars ($30,105.00) per annum, payable in equal consecutive monthly installments of Two Thousand Five Hundred Eight and 75/100 Dollars ($2,508.75) in advance on the first day of each calendar month during the License Period, based upon an annual rate of Fifteen Dollars ($15.00) per square foot of the Storage Area. Fees due for any partial month shall be prorated. Payments which are not received when due shall be subject to the penalties and fees for late payments as set forth in the Lease.
4. Security Deposit. Pursuant to the Lease Licensor, as Landlord under the Lease, is holding a cash security deposit from Licensee, as Tenant under the Lease, of $84,069.00 (the Security