LEASE AGREEMENT BETWEEN CORNERSTONE OPPORTUNITY VENTURES, LLC LANDLORD AND PERFICIENT, INC. TENANT
EXHIBIT
10.13
LEASE
AGREEMENT BETWEEN
CORNERSTONE
OPPORTUNITY VENTURES, LLC
LANDLORD
AND
PERFICIENT,
INC.
TENANT
TABLE OF CONTENTS
1.
|
DEMISED
PREMISES
|
1
|
|
2.
|
TERM
|
1
|
|
3.
|
RENT
AND ADDITIONAL RENT
|
2
|
|
4.
|
USE
OF DEMISED PREMISES
|
7
|
|
5.
|
MAINTENANCE
AND REPAIR
|
7
|
|
6.
|
UTILITY
DEREGULATION
|
8
|
|
7.
|
ALTERATIONS
|
9
|
|
8.
|
ASSIGNMENT
AND SUBLETTING
|
10
|
|
9.
|
INSTALLATIONS
AFFECTING BUILDING AND BUILDING SYSTEMS
|
11
|
|
10.
|
ACCESS
|
12
|
|
11.
|
COVENANTS
OF LANDLORD
|
12
|
|
12.
|
RULES
AND REGULATIONS
|
13
|
|
13.
|
SIGNS
|
13
|
|
14.
|
INSURANCE
|
13
|
|
15.
|
INDEMNITY
|
15
|
|
16.
|
SERVICES
|
16
|
|
17.
|
PARKING
|
18
|
|
18.
|
DAMAGE
BY FIRE OR OTHER CASUALTY
|
18
|
|
19.
|
CONDEMNATION
|
19
|
|
20.
|
DEFAULT
|
20
|
|
21.
|
TENANT
HOLDING OVER
|
21
|
|
22.
|
HAZARDOUS
SUBSTANCES
|
23
|
|
23.
|
ATTORNMENT
AND CURE RIGHTS
|
23
|
|
24.
|
MORTGAGEE
REQUIREMENTS
|
24
|
|
25.
|
ESTOPPEL
CERTIFICATES
|
25
|
|
26.
|
LANDLORD'S
INABILITY TO PERFORM
|
25
|
|
27.
|
TRANSFER
BY LANDLORD
|
25
|
|
28.
|
WAIVER
|
26
|
|
29.
|
ATTORNEY’S
FEES
|
26
|
|
30.
|
GENERAL
PROVISIONS
|
26
|
|
31.
|
OPTION
TO RENEW LEASE
|
29
|
|
32.
|
RIGHT
OF REFUSAL
|
29
|
|
33.
|
RIGHT
TO RELOCATE
|
30
|
|
34.
|
RESOLUTION
OF DISPUTES
|
30
|
|
35.
|
ENTIRE
AGREEMENT
|
30
|
|
36.
|
NO
OPTION
|
30
|
EXHIBITS
TO LEASE
EXHIBIT |
A: FLOOR
PLAN
|
EXHIBIT |
B: BUILDING
SITE PLAN
|
EXHIBIT |
C: BUILDING
SPECIFICATIONS
|
EXHIBIT |
D: CONSTRUCTION
PROVISIONS
|
EXHIBIT |
D-1:
TENANT
FINISH PLAN
|
EXHIBIT |
E: FORM
OF
CERTIFICATE
|
EXHIBIT |
F: RULES
AND REGULATIONS
|
EXHIBIT |
G: SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT
AGREEMENT
|
THIS
AGREEMENT
(the
“Lease”) is made this 21st
day of
December, 2005, by and between Cornerstone Opportunity Ventures, LLC, a Delaware
Limited Liability Company (hereinafter called "Landlord"), and Perficient,
Inc.,
a Delaware corporation (hereinafter called "Tenant").
WITNESSETH:
1. DEMISED
PREMISES
1.1 For
and
in consideration of the covenants and agreements hereinafter set forth and
the
rent hereinafter specifically reserved, the Landlord does hereby lease unto
the
Tenant, and the Tenant does hereby lease from the Landlord, approximately four
thousand nine hundred thirty-six (4,936) rentable square feet of space on the
first floor of the CityPlace One (the "Building"), which space is designated
as
Suite 180, outlined on Exhibit A attached hereto and made a part hereof
(the "Demised Premises") and its share of common area at the Building. The
site
plan of the Building is shown on Exhibit B and the Building Specifications
are described on Exhibit C, both being attached hereto and made a part
hereof.
1.2 Landlord
shall construct the tenant finish requirements in accordance with the
construction provisions and tenant finish plans set forth on Exhibit D,
attached hereto and made a part hereof, (the “Tenant Finish”). Within ten (10)
business days of substantial completion of the Tenant Finish, Landlord and
Tenant shall cooperate to execute a mutually agreeable “punch list” identifying
any incomplete and unacceptable items in the Tenant Finish. No later than
thirty
(30) days after the parties execution of said “punch list”, Landlord shall
complete all items identified on said “punch list”; provided that Landlord shall
have such additional time as is reasonably necessary to complete any items,
so
long as Landlord uses commercially reasonable efforts to promptly complete
such
item.
Upon
completion of all items identified on the “punch list”, Tenant shall execute a
form acknowledging completion of the Tenant Finish.
2. TERM
This
Lease shall continue in force for a term of five (5) years and one (1) months
from the Lease Commencement Date, which shall be the later of (a) February
1,
2006, or (b) such later date as Tenant receives notice from Landlord that the
Tenant Finish work is substantially completed (excluding completion of minor
items identified on the “punch list”) and Landlord has received a temporary
occupancy permit for the Demised Premises. Notwithstanding the foregoing, should
the Lease Commencement Date fall on a date other than the first day of a month,
Tenant shall occupy the Demised Premises on the “Occupancy Date” and the Lease
Commencement Date shall be deemed to be the first day of the following month
and
Tenant shall occupy the Demised Premises on the terms and conditions contained
herein, except that the rent for the partial first month of occupancy shall
be
prorated based on the actual number of days of Tenant’s occupancy. The Lease
Commencement Date (and the Occupancy Date if different) shall be specified
in
the Certificate described in Paragraph 1.3 above.
Notwithstanding
anything herein to the contrary, upon October 31, 2009 only, and upon not
less
than nine (9) months prior written notice to Landlord, Tenant shall have
the
right to terminate the Lease without penalty, provided Tenant pays Landlord
at
the time of termination the following: (i) all unamortized Tenant Improvement
expenses (which shall be amortized over the five (5) year term of the Lease
at a
rate of nine percent (9%) per annum); and (ii) all unamortized brokerage
commissions paid by Landlord (which shall be amortized over the five (5)
year
term of the Lease at a rate of nine percent (9%) per annum.
3. RENT
AND ADDITIONAL RENT
3.1 Base
Annual Rent.
Commencing on the Lease Commencement Date Tenant shall pay to Landlord the
Base
Annual Rent as stated below:
Period
|
Monthly
Rent
|
Monthly
Rent
|
Month
1
|
$0.00
|
$0.00
|
Months
2-13
|
$22.75
|
$9,357.83
|
Months
14-25
|
$23.00
|
$9,460.67
|
Months
26-37
|
$23.50
|
$9,666.33
|
Months
38-49
|
$24.00
|
$9,872.00
|
Months
50-61
|
$24.50
|
$10,077.67
|
Said
Base
Annual Rent shall be paid in twelve equal monthly installments. The initial
Base
Annual Rent shall be adjusted upwards or downwards after final space
measurements have been computed by Landlord's architect in accordance with
the
rentable calculation for office space, said adjustments to be made at the
rates
per rentable square foot set forth in the table above. Tenant shall pay one
full
monthly installment of Base Annual Rent upon execution of this Lease and
Landlord shall credit it against Tenant's rent obligations coming due on
and
after the Lease Commencement Date, and provided the Lease Commencmene Date
is
2/1/06, then the next monthly installment of Base Annual Rent shall be due
on
4/1/06; otherwise the next monthly installment of Base Annual Rent shall
be due
on the first day of the second month following the Lease Commencment Date.
Notwithstanding anything herein to the contrary, the first month following
the
Lease Commencement Date shall be free of the obligation to pay Base Annual
Rent.
3.2 Operating
Expenses.
(a)In addition to the Base Annual Rent, Tenant will pay, as additional rent, its proportionate share of Landlord's costs of operating the Building over the expenses incurred during the 2006 calendar year (the “Base Year”). These costs shall consist of (a) real estate taxes and (b) all other costs defined in Paragraph 3.2 (c) below, which are actually incurred by the Landlord, and which are projected in Landlord's reasonable estimation to reflect the greater of (a) the actually occupancy of the Building or (b) ninety-five percent (95%) occupancy of the Building. Tenant's proportionate share, subject to adjustment pursuant to Paragraph 1.2 above, shall be one and 72/100 percent (1.72%). Tenant’s proportionate share is calculated by dividing the total rentable square footage of the Demised Premises (approximately 4,936 rentable square feet) by the building’s total rentable square footage, which is 287,271 square feet.
(a)In addition to the Base Annual Rent, Tenant will pay, as additional rent, its proportionate share of Landlord's costs of operating the Building over the expenses incurred during the 2006 calendar year (the “Base Year”). These costs shall consist of (a) real estate taxes and (b) all other costs defined in Paragraph 3.2 (c) below, which are actually incurred by the Landlord, and which are projected in Landlord's reasonable estimation to reflect the greater of (a) the actually occupancy of the Building or (b) ninety-five percent (95%) occupancy of the Building. Tenant's proportionate share, subject to adjustment pursuant to Paragraph 1.2 above, shall be one and 72/100 percent (1.72%). Tenant’s proportionate share is calculated by dividing the total rentable square footage of the Demised Premises (approximately 4,936 rentable square feet) by the building’s total rentable square footage, which is 287,271 square feet.
1
(b) Landlord
shall send Tenant a statement showing the fiscal year operating expenses
as soon
as is practicable after the end of each calendar year; however, Landlord’s
failure to provide such operating expense statement as soon as is practicable
after the end of each calendar year shall in no way excuse Tenant from its
obligation to pay its pro rata share of operating expenses or constitute
a
waiver of Landlord’s right to xxxx and collect such pro rata share of operating
expenses from Tenant in accordance with this paragraph 3.2(b).
(c) The
costs
of operating the Building (the "Operating Expenses") shall include the
following:
(i) electricity,
water, sewer and other utility charges (including surcharges) of every type
and
nature, but excluding electricity charges billed directly to Tenant by Landlord
pursuant to Paragraph 16.3 hereof;
(ii) premiums
and other charges incurred by Landlord with respect to all insurance relating
to
the Building and the operation and maintenance thereof, including, without
limitation, all risk of physical damage or fire and extended coverage insurance,
public liability insurance, elevator insurance, xxxxxxx'x compensation
insurance, boiler and machinery insurance, sprinkler leakage insurance, rent
insurance, use and occupancy insurance, and health, accident and group life
insurance for employees;
(iii) management
office costs directly attributable to management and operation of the Building
and management fees and personnel costs of the Building, including, but not
limited to, salaries, wages, fringe benefits and other direct and indirect
costs
of engineers, superintendents, watchmen, porters and any other Building
personnel;
(iv) costs
of
service and maintenance contracts, including, but not limited to, chillers,
boilers, controls, elevators, mail room, windows, security services, and
management fees;
(v) all
costs, charges, and expenses, incurred by Landlord in connection with any
change
of any company providing electricity service, including, without limitation,
maintenance, repair, installation, and service costs associated
herewith;
(vi) all
other
maintenance and repair expenses and supplies which are deducted by Landlord
in
computing its Federal income tax liability;
(vii) amortization
and/or depreciation for capital expenditures incurred by Landlord in connection
with additions, replacements or improvements reasonably expected by Landlord
to
reduce Operating Expenses (and only to the extent that such additions,
replacements or improvements do reduce Operating Expenses), or which are
incurred in connection with compliance with governmental orders;
(viii) the
costs
of any additional services not provided to the Building at the Lease
Commencement Date but thereafter provided by Landlord in the prudent management
of the Building;
(ix) real
estate taxes (or taxes which replace or are in lieu of such real estate
taxes);
(x) the
cost
of janitorial service (allocable to the actual space in the Building being
serviced);
2
(xi) any
Business, Professional and Occupational License tax payable by Landlord with
respect to the Building;
(xii) auditing
and accounting fees including accounting fees incurred in connection with
the
preparation and certification of any and all statements required under this
Lease;
(xiii) all
miscellaneous taxes (including, without limitation, all sales and excise
taxes
on the expenditures enumerated in this Paragraph) applicable to the Building
and
any taxes imposed on personal property in the Building owned by
Landlord;
(xiv) the
cost
of licenses, permits and similar fees and charges; and any other costs and
expenses, including reasonable attorney's fees, incurred by Landlord in
maintaining or operating the Building.
Notwithstanding
anything to the contrary, Operating Expenses shall not include the
following:
(i) Any
ground lease rental;
(ii) Costs
incurred by Landlord for the repair of damage to the Building to the extent
that
Landlord is reimbursed by insurance or condemnation proceeds or by tenants,
warrantors or other third persons;
(iii) Depreciation,
amortization and interest payments, except as specifically permitted elsewhere
in the Lease, and except upon materials, tools, supplies and vendor-type
equipment purchased by Landlord to enable Landlord to supply services Landlord
might otherwise contract for with a third party, where such depreciation,
amortization and interest payments would otherwise have been included in
the
charge for such third party’s services, all as determined in accordance with
generally accepted accounting principles, consistently applied, and when
depreciation or amortization is permitted or required, the item shall be
amortized over its reasonably anticipated useful life;
(iv) Marketing
costs including leasing commissions, attorney’s fees in connection with the
negotiation and preparation of letters, deal memos, letters of intent, leases,
subleases and/or assignments, space planning costs, and other costs and expenses
incurred in connection with lease, sublease and/or assignment negotiations
and
transactions with present or prospective tenants or other occupants of the
Building;
(v) Except
as
permitted elsewhere in the Lease Agreement, costs of a capital nature, including
without limitation, capital improvements, capital replacements, capital repairs,
capital equipment and capital tools, all as determined in accordance with
generally accepted accounting principles consistently applied or otherwise
(“Capital Items”);
(vi) Interest,
principal, points and fees on debt or amortization on any mortgage, deed
of
trust or other debt encumbering the Building or the Project;
(vii) Costs,
including permit, license and inspection costs, incurred with respect to
the
installation of Tenant or other occupants’ improvements made for tenants or
other occupants in the Building, or incurred in renovating or otherwise
improving, decorating painting or redecorating space used exclusively by
tenants
or other occupants of the Building, including space planning and interior
design
costs and fees;
3
(viii) Attorney’s
fees and other costs and expenses incurred in connection with negotiations
or
disputes with present or prospective tenants or other occupants of the Building
or attorney’s fees and other costs and expenses in, settlement, judgments
incurred in connection with potential or actual claims pertaining to Landlord,
the Building or the Project; provided, however, that Operating Expenses shall
include those attorneys’ fees and other costs and expenses incurred in
connection with disputes or claims relating to items of Operating Expenses,
enforcement of rules and regulations of the Building, and such other matters
relating to the maintenance of standards required of Landlord under the Lease
Agreement may be included in Operating Expenses;
(ix) Expenses
in connection with services or other benefits which are not offered to Tenant,
or for which Tenant is charged for directly but which are provided to another
tenant or occupant of the Building;
(x) Costs
incurred by Landlord due to the violation by Landlord of the terms and
conditions of any lease of space in the Building;
(xi) Overhead
and profit increment paid to Landlord or to subsidiaries or affiliates of
Landlord for goods and/or services provided to the Building to the extent
the
same exceeds the costs that would generally be charged for such goods and/or
services if rendered on a competitive basis, based upon a standard of comparable
buildings by unaffiliated third parties capable of providing such services;
provided, however, that nothing in this subparagraph (xi) shall restrict
Landlord’s right to employ an affiliate of Landlord, including but not limited
to The Koman Group, L.L.C., to manage the Building, to pay such affiliate
administrative, management fee and other compensation and to include such
aggregate amount in Operating Expenses;
(xii) Costs
of
Landlord’s general corporate overhead, except to the extent that such overhead
is directly attributable to the management, maintenance and repair of the
Building;
(xiii) All
items
and services for which Tenant or any other tenant in the Building reimburses
Landlord (other than through operating expense pass-through
provisions);
(xiv) Electric
power costs for which any tenant directly contracts with the local public
service company;
(xv) Costs
arising form Landlord’s charitable or political contributions;
(xvi) Rentals
for items (except when needed in connection with normal repairs and maintenance
of permanent systems) which if purchased, rather than rented, would constitute
a
capital improvement which is specifically excluded above, excluding, however,
equipment not affixed to the Building which is used in providing janitorial
or
similar services;
(xvii) Rentals
and other related expenses incurred in leasing HVAC systems, elevators or
other
equipment ordinarily considered to be Capital Items, except for (1) expenses
in
connection with making repairs on or keeping project systems in operation
while
repairs are being made and (2) costs of equipment not affixed to the Building
which is used in providing janitorial or similar services;
(xviii) Advertising
and promotional expenditures;
(xix) Costs
incurred in connection with upgrading the common areas of the Building to
comply
with handicap (including ADA), life, fire and safety codes as such codes
are
interpreted to apply to the Building by the responsible public officials
prior
to the Lease Commencement Date;
4
(xx) Tax
penalties incurred as a result of Landlord’s negligence, inability or
unwillingness to make payments and/or to file any income tax or informational
returns when due;
(xxi) Notwithstanding
any contrary provision of the Lease Agreement, including, without limitation,
any provision relating to capital expenditures, any and all costs arising
form
the presence of hazardous materials or substances in or about the Building
including, without limitation, hazardous substances in the ground water or
soil;
(xxii) Costs
associated with the operation of the business of the entity which constitutes
Landlord as the same are distinguished from the costs of operation of the
Building, including entity accounting and legal matters, costs of defending
any
lawsuits with any deed of trust holder (except as the actions of Tenant may
be
in issue), costs of selling, syndicating, financing, mortgaging or hypothecating
any of Landlord’s interest in the Building, or costs of any disputes between
Landlord and its employees (if any) not engaged in Building operation, disputes
of Landlord with Building management;
(xxiii) Costs
of
signs in or on the Building (other than building directory signs) identifying
the owner of the Building or other tenant’s signs;
(xxiv) Except
as
expressly provided to the contrary in this Lease Agreement, any other expense
that, under generally accepted building operation, consistently applied,
would
not be considered a normal maintenance or operating expense.
(d) Beginning
January 1, 2007, Tenant shall make monthly payments to Landlord on account
of
estimated increases in Operating Expenses for each calendar year. Landlord
shall
submit to Tenant an estimate as soon as practicable after the end of each
calendar year. Following its receipt of each such estimate, Tenant shall
pay to
Landlord, monthly, on the first day of each month through and including the
month in which Tenant receives Landlord's next such estimate, an amount equal
to
one-twelfth (1/12th) of Tenant's proportionate share of estimated increases
in
Operating Expenses. Each year Landlord shall also submit a statement of the
Operating Expenses actually incurred during the immediately preceding calendar
year. If Tenant's total payments on account of estimated increases in Operating
Expenses made through December of the immediately preceding calendar year
exceed
the amount of the increase actually due for the calendar year, Landlord shall
at
its option, either refund the difference directly to the Tenant or credit
Tenant’s rent and/or additional rent obligations coming due thereafter. If, on
the other hand, such payments were less than the amount of the increase actually
due, Tenant shall pay the difference to Landlord with its next rent due.
Tenant's liability for its proportionate share of increases in Operating
Expenses for the last calendar year of the term of this Lease shall survive
the
expiration of the Lease. Similarly, Landlord's obligation to refund to Tenant
the excess, if any, of the amount of Tenant's payment on account of estimated
increases for such last calendar year over Tenant's actual liability therefor
shall survive the expiration of the term of this Lease. Landlord may at any
time
or from time to time furnish to Tenant a revised estimate for any calendar
year
and in such case Tenant's payments on account of estimated increases for
such
calendar year shall be adjusted accordingly. Within thirty (30) days after
receipt of Landlord’s statement, Tenant or its authorized employee shall have
the right to inspect the books of Landlord during the business hours of Landlord
at Landlord’s office in the Building for the purpose of verifying information in
such statement. Unless Tenant asserts specific error(s) to Landlord in writing
within forty-five (45) days after delivery of such statement, the statement
shall be deemed to be correct.
5
(e) No
decrease in Taxes and/or Operating Expenses shall reduce Tenant’s rent below the
annual base rent set forth in Paragraph 3.1 hereinabove.
(f) The
term
“Controllable Operating Expenses” shall mean all Operating Expenses other than
real estate taxes, utility charges and insurance charges that are includable
as
Operating Expenses under Paragraph 3.2(c). Notwithstanding anything to the
contrary contained herein, for purposes of calculating Tenant’s proportionate
share of Operating Expenses for the 2007 calendar year and each calendar
year
thereafter during the term of this Lease (including option periods), the
Controllable Operating Expenses includable in Operating Expenses for each
such
calendar year shall be the lesser of (x) the actual Controllable Operating
Expenses for each such calendar year or (y) one hundred five percent (105%)
of
the Controllable Operating Expenses includable in the calculation of Tenant’s
proportionate share of Operating Expenses for the immediately preceding calendar
year; provided that if the Controllable Operating Expenses attributable to
a
particular calendar year (after the 2006 calendar year) do not increase by
five
percent (5%) over the Controllable Operating Expenses attributable to the
immediately preceding calendar year, then any shortfall in the escalation
of
Controllable Operating Expenses below five percent (5%) between such calendar
years shall be added to the one hundred five percent (105%) cap on Controllable
Operating Expenses in the immediately succeeding calendar Year.
3.3 Rent
Payments. Payments
of rent shall be paid in advance on or before the fifth (5th) day of each
and
every month during the term of this Lease, with appropriate proration for
the
first and last months. Rent shall be paid by either check or electronic funds
transfer (at Tenant’s election), per instructions to be provided by Landlord to
Tenant, payable to Landlord or to such other person, firm or corporation
as
Landlord may designate in writing.
3.4 Delinquent
Rent Payments. Any
installment of rent, or any additional rent, which is not received by Landlord
within five (5) days after the same becomes due and payable, and receipt
of
written notice of such nonpayment, shall obligate Tenant to pay, as additional
rent, a late fee equal to the amount owed with a late payment fee of five
percent (5%) of the outstanding balance, plus for each and every month or
part
thereof that such rent remains unpaid, an interest cost of prime plus eight
percent (8%) but in no event higher than the interest rate permitted by law,
said additional rent to be payable with the next monthly installment of rent.
In
addition, if the Tenant defaults in the making of any payment or the doing
of
any act herein required to be made or done by Tenant, then the Landlord may,
but
shall not be required to, make such payment or do such act, and the amount
of
the expense thereof, if made or done by Landlord, shall be paid by Tenant
to
Landlord together with a late payment fee of five (5%) of the outstanding
balance, plus for each and every month or part thereof that such amount remains
unpaid, an interest cost of prime plus eight percent (8%) but in no event
higher
than the interest rate permitted by law, which amount shall constitute
additional rent hereunder due and payable with the next monthly installment
of
rent. The provisions of this Paragraph shall not be deemed to affect Landlord's
right to pursue any of its remedies under Article 20 hereof.
6
4. USE OF DEMISED PREMISES
4.1 The
Tenant shall use and occupy the Demised Premises for general office purposes
and
for no other purpose whatsoever. The Tenant shall not use or permit the
Demised
Premises or any part thereof to be used for any disorderly, unlawful, or
hazardous purpose and will not manufacture any commodity therein. Tenant
shall
comply with all present and future laws, ordinances (including zoning ordinances
and land use requirements), regulations and orders of all governmental
and/or
quasi-governmental authorities having jurisdiction over the Demised
Premises.
4.2 Tenant
shall pay any business, rent or other taxes that are now or hereafter levied
upon Tenant's use or occupancy of the Demised Premises, the conduct of Tenant's
use or occupancy of the Demised Premises, or Tenant's business in the Demised
Premises, or Tenant's equipment or other personal property, other than taxes
relating to Landlord’s income. In the event that any such taxes are enacted,
changed or altered so that any of such taxes are levied against Landlord,
or the
mode of collection of such taxes is changed so that Landlord is responsible
for
collection or payment of such taxes, Tenant shall pay any and all such taxes
to
Landlord upon written demand from Landlord.
4.3 The
Tenant will not do, or permit anything to be done in the Demised Premises
or the
Building of which they form a part or bring or keep anything therein which
shall, in any way, increase the rate of fire or other insurance on the Building,
or on the property kept therein, or obstruct, or interfere with the rights
of
other tenants, or in any way injure them, or those having business with them
or
conflict with them, or conflict with the fire laws or regulations, or with
any
statutes, rules or regulations enacted or established by the City of Creve
Coeur
or other governmental entity.
5. MAINTENANCE
AND REPAIR
5.1 Tenant
will keep the Demised Premises and the fixtures and equipment therein (other
than major structural elements of the Building, which are the responsibility
of
Landlord, as provided in Section 5.3 below) in a clean, safe and sanitary
condition, will take reasonably good care thereof, will suffer no waste or
injury thereto, and will, at the expiration or other termination of the term
of
this Lease, surrender the same, broom clean, in the same order and condition
in
which they are on the commencement of the term of this Lease, except for
ordinary wear and tear and damage by the elements, fire and other casualty
not
due to the negligence of the Tenant.
5.2 If
Tenant
shall fail to make any repairs or to perform any maintenance which it is
obligated to make or perform under this Lease within ten (10) days after
written
notice from Landlord to do so, or in the event of any emergency, Landlord
may,
with prior written notice to Tenant, make or perform the same for the account
of
Tenant, without liability to Tenant for any loss or damage that may accrue
to
Tenant's fixtures or other property or to Tenant's business by reason thereof,
so long as said damage or loss is not due to Landlord’s negligence and Tenant
shall pay, as additional rent, within thirty (30) days after Landlord shall
have
billed Tenant therefore, Landlord's reasonable and actual out-of-pocket cost
for
making such repairs and/or performing such maintenance (such cost may include
a
reasonable amount for Landlord's overhead, not to exceed ten percent 10%
of the
hard costs of such repair(s) or maintenance). Nothing herein contained shall
imply any duty on the part of Landlord to do any such work which under any
provision of this Lease Tenant may be required to do, nor shall it constitute
a
waiver of Tenant's default in failing to do the same.
7
5.3 Landlord
shall make all necessary repairs to the structure of the Building and the
mechanical, electrical, plumbing, heating and air conditioning systems therein,
except with respect to any items installed or constructed by Tenant and except
where the repair has been made necessary by misuse or neglect by Tenant or
Tenant's agents, servants, visitors or licensees. This obligation to repair
does
not impose upon Landlord an obligation to make repairs other than during
Normal
Building Hours except in emergency situations. Landlord will use its best
efforts to make such repairs in a timely fashion. If Landlord on its part
fails
to make any repair after a ten (10) day written notice from Tenant, Tenant
may
perform the repair and submit an invoice to Landlord. Tenant is to notify
Landlord in writing of the repair and provide Landlord with a copy of the
bid to
perform such repair before it releases any work, except in the case of an
emergency, in which case Tenant shall endeavor to notify the Landlord as
soon as
practical.
5.4 Unless
Landlord shall otherwise request, in writing, no less than fifteen (15) days
prior to the Lease expiration date, within fifteen (15) days of the expiration
or termination of this Lease, Tenant, at its sole cost and expense, shall
remove
all cabling and wiring, (including but not limited to telecommunication and
data
cabling) installed by or for Tenant from the Demised Premises. The provisions
of
this paragraph shall survive the expiration and/or termination of this
Lease.
6. UTILITY
DEREGULATION
6.1 Landlord
hereby advises Tenant that presently Ameren UE (the “Electric Service Provider”)
is the utility company selected by Landlord to provide electric service for
the
Building. Notwithstanding the foregoing, if permitted by law, Landlord shall
have the right at any time and from time to time during the Lease Term to
either
contract for service from a different company or companies providing electricity
service (each such company shall hereinafter be referred to as an “Alternate
Service Provider”) or continue for service from the Electric Service
Provider.
6.2 Tenant
shall cooperate with Landlord, the Electric Service Provider, and any Alternate
Service Provider at all times and, as reasonably necessary, shall allow
Landlord, Electric Service Provider and any Alternate Service Provider
reasonable access to the Building’s electric lines, feeders, risers, wiring, and
any other machinery within the Demised Premises.
6.3 Unless
attributable to Landlord’s negligence, Landlord shall in no way be liable or
responsible for any loss, damage, or expense that Tenant may sustain or incur
by
reason of any change, failure, interference, disruption, or defect in the
supply
or character of the electric energy furnished to the Demised Premises, or
if the
quantity or character of the electric energy supplied by the Electric Service
Provider or any Alternate Service Provider is no longer available or suitable
for Tenant’s requirements, and no such change, failure, defect, unavailability,
or unsuitability shall constitute an actual or constructive eviction, in
whole
or in part, or entitle Tenant to any abatement or diminution of rent, or
relieve
Tenant from any of its obligations under the Lease.
8
7. ALTERATIONS
7.1 Tenant
will not make or permit anyone to make any alterations, additions or
improvements, (hereinafter referred to as "Alterations"), in or to the Demised
Premises or the Building, other than cosmetic alterations which will not
affect
building systems or structure without the prior written consent of Landlord,
which consent shall not be unreasonably withheld or delayed. As a condition
precedent to such written consent of Landlord, Tenant agrees to obtain and
deliver to Landlord upon completion, written, unconditional waivers of
mechanics' and material men's liens against the Building and the land upon
which
it is situated from all proposed contractors, sub-contractors, laborers and
material suppliers for all work, labor and services that were performed and
materials furnished in connection with Alterations. If, notwithstanding the
foregoing, any mechanic's lien is filed against the Demised Premises, the
Building, and/or the land on which the Building is located, for work or
materials done for, or furnished to, Tenant (other than for work or materials
supplied by Landlord), such mechanic's lien shall be discharged by Tenant
the
earlier of (a) the date a responsive pleading is due in any such lien action,
or
(b) ten (10) days thereafter, at Tenant's sole cost and expense, by the payment
thereof or by the filing of any bond required by law. If Tenant shall fail
to
discharge any such mechanic's lien, Landlord may, at its option, discharge
the
same and treat the cost thereof as additional rent hereunder, payable with
the
monthly installment of rent next becoming due; and such discharge by Landlord
shall not be deemed to waive the default of Tenant in not discharging the
same.
Tenant will indemnify and hold Landlord harmless from and against any and
all
expenses (including reasonable attorney's fees), liens, claims or damages
to any
person or property which may or might arise by reason of the making by Tenant
of
any Alterations. Landlord will in turn indemnify and hold Tenant harmless
from
and against any and all expenses (including reasonable attorney’s fees), liens,
claims or damages to any person or property which may or might arise by reason
of the making of Landlord of any alterations.
7.2 Alterations
may be made only at Tenant's expense, by contractors or subcontractors approved
by Landlord, which approval shall not be unreasonably withheld, and only
after
Tenant has obtained all necessary permits from governmental authorities having
jurisdiction and has furnished copies of the permits to Landlord. Landlord
shall
have the right to have the making of any Alterations supervised by its
architects, contractors or workmen. All Alterations that affect or in any
way
relate to the mechanical, electrical, plumbing, heating, air conditioning,
or
structural systems of the Building shall be done only by Landlord or Landlord's
contractor or agent at Tenant's expense. Landlord will use its best effort
to
perform the work at a reasonable cost.
7.3 If
any
Alterations are made without the prior written consent of Landlord, Landlord
may
correct or remove the same, and Tenant shall be liable for all reasonable
expenses so incurred by Landlord. All Alterations in or to the Demised Premises
or the Building made by either party shall immediately become the property
of
Landlord and shall remain upon and be surrendered with the Demised Premises
as a
part thereof at the end of the term hereof; provided however, Tenant shall
have
the right to remove, prior to the expiration of the term of this lease, all
movable furniture, furnishings or equipment installed in the Demised Premises
at
the expense of Tenant, and if such property of Tenant is not removed by Tenant
prior to the expiration or termination of this Lease, the same shall, at
Landlord's option, become the property of Landlord and shall be surrendered
with
the Demised Premises as a part thereof. Should Landlord elect that Alterations
installed by Tenant be removed upon the expiration or termination of this
Lease,
it shall so advise Tenant at the time of its providing consent to such
Alterations, Tenant shall remove the same at Tenant's sole cost and expense,
and
if Tenant fails to remove the same, Landlord may remove the same at Tenant's
expense and Tenant shall reimburse Landlord for the cost of such removal
together with any and all damages which Landlord may sustain by reason of
such
default by Tenant.
9
8. ASSIGNMENT
AND SUBLETTING
8.1 Tenant
may not assign, transfer, mortgage or encumber this Lease, nor shall any
assignment or transfer of this Lease be effectuated by operation of law or
otherwise, without the prior written consent of Landlord, which consent shall
not be unreasonably withheld or delayed, other than Tenant may automatically
and
without Landlord’s consent (but providing written notice to Landlord thereof)
assign the Lease to another controlling, controlled by or under common control
with Tenant. The withdrawal or change, whether voluntary, involuntary or
by
operation of law, of persons or entities owning a controlling interest in
Tenant, or the sale of Tenant's business, shall be deemed a voluntary assignment
of this Lease and subject to the provisions of this Paragraph. Tenant's failure
to comply with the foregoing sentence shall be deemed to be a material breach
of
this Lease by Tenant.
8.2 Tenant
shall not sublease the Demised Premises or any part thereof or transfer
possession or occupancy thereof to any person, firm or corporation without
the
prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed.
8.3 In
the
event Tenant subleases or assigns all or part of the Demised Premises at
a
rental per square foot that is higher than the rental being paid by Tenant
hereunder or in exchange for Tenant's receipt of any bonus or lump sum payment,
Landlord shall be entitled to receive and Tenant shall promptly remit fifty
percent (50%) of any excess rental, bonus and/or lump sum payment which may
inure to Tenant's benefit as a result of any such assignment or subletting
regardless of Landlord's consent thereto. Landlord will receive the excess
rental, if any, within ten (10) days of Tenant’s receipt of same.
8.4 In
the
event Tenant desires to sublease all or any part of the Demised Premises,
Tenant
shall give written notice thereof to Landlord. Landlord shall have the right,
within thirty (30) days after receipt of written notice from Tenant of Tenant's
desire to sublease all or part of the Demised Premises, to retake such portion
to be subleased from Tenant and to terminate this Lease with respect to any
such
space so taken.
8.5 Any
sublease or assignment shall be subject to the following
conditions:
(a)
Tenant’s
successor shall be acceptable as a first class user of office space in
Landlord's reasonable opinion.
(b)
At
the
time of making such assignment or sublease, there is no default under any
of the
agreements, terms, covenants and conditions on the part of the Tenant to
be
performed under this Lease.
(c)
Such
assignment or sublease shall be in writing, shall certify the amount of rental,
bonus and/or lump sum payment paid or to be paid to Tenant, shall contain
an
agreement on the part of the assignee or subtenant to abide by all of the
terms
and provisions of this Lease, except for the payment of rent and additional
rent, and shall be duly executed and acknowledged by Tenant and Tenant's
assignee or subtenant. Landlord’s consent to any assignment or sublet shall not
obviate the requirement of Landlord’s consent to future assignments and/or
sublets on the part of Tenant or any assignee or sublessee of Tenant. A copy
of
the sublease must be supplied to the Landlord within thirty (30) days after
full
and final execution.
10
(d)
Such
assignment or sublease shall expressly prohibit the assignee or subtenant
from
removing any of the Landlord's personal property from the Demised Premises
without the Landlord's express written consent.
(e)
No
assignment or sublease shall obligate Landlord to make any Alterations (as
that
term is defined in Paragraph 8 above) nor to do any finishing or remodeling
work
in or to all or any part of the Demised Premises, nor shall any such assignment
or sublease result in a decrease of any amounts payable to Landlord pursuant
to
the terms of this Lease.
(f)
No
assignment or sublease shall release or discharge, in whole or in part, Tenant's
liability for the full performance of the agreements, terms, covenants and
conditions contained in this Lease.
(g)
If
all or
any part of the Demised Premises shall be subleased or occupied by any person
or
entity other than the Tenant, the Landlord may, after default by the Tenant,
collect rent from any such subtenant(s) or occupant(s), and apply the amount
collected to the rent reserved herein, and Tenant hereby assigns to Landlord
the
rent due from any subtenant or assignee of Tenant and hereby authorizes each
such subtenant or assignee to pay said rent directly to Landlord but no such
collection shall be deemed a waiver of any agreement, term, covenant or
condition hereof nor the acceptance by the Landlord of any subtenant or occupant
as Tenant.
(h) Wherever
notice, demand, request, or any other communication of any nature is required
to
be given by the Landlord or by any mortgagee to the Tenant, no such notice,
demand, request, or communication shall, in any event, be required to be
given
to any such assignee or subtenant, and any notice, demand, request or
communication shall be given only to the Tenant herein.
(i)
Any
assignment or subletting permitted hereunder shall be for the initial term
only,
and shall not include any option or renewal rights.
8.6
If
Landlord withholds approval to the proposed subletting or assignment, this
Lease
shall remain in full force and effect. In the event Landlord does not exercise
any of its rights specified in this Paragraph 8, or does not respond to Tenant's
request for Landlord's consent to an assignment or sublease, within ten (10)
days after Tenant's request therefore, Landlord shall be deemed to have withheld
approval of the sublease or assignment. If Tenant thereafter completes a
sublease or assignment with a third party, such sublease or assignment shall
be
null and void.
9.
|
INSTALLATIONS
AFFECTING BUILDING AND BUILDING
SYSTEMS
|
9.1 Landlord
shall have the right to prescribe the weight and method of installation and
position of safes, heavy fixtures, shelving, files, library stacks, equipment
or
machinery and Tenant will not install any such items which would place a
load
upon any floor exceeding the floor load per square foot which such floor
was
designed to carry. The live load for the building is one hundred pounds per
square foot, with allowable reductions per BOCA. All damage done to the Building
or any part thereof by taking in or removing a safe or any other article
of
Tenant's office equipment, or due to its being in the Demised Premises, shall
be
repaired at the reasonable expense of the Tenant. No freight, furniture,
or
other bulky matter of any description will be received into the Building
or
carried in the elevators, except as approved by the Landlord. All moving
of
furniture, material, and equipment shall be subject to the supervision of
the
Landlord, who shall, however, not be responsible for any damage to or charges
for moving the same. Tenant agrees to promptly remove from the public area
adjacent to the Building and from any common area within the Building any
of
Tenant's merchandise or property there delivered or deposited.
11
9.2 Except
as
may be specifically permitted by the terms of this Lease, Tenant shall not
install or use any equipment of any kind or nature whatsoever which will
or may
necessitate any changes, replacements or additions to or require the use
of the
water, plumbing, heating, air-conditioning, or electrical system of the Demised
Premises without the prior written consent of the Landlord, which consent
shall
not be unreasonably withheld or delayed. In addition, only Landlord or
Landlord’s contractor or agent at Tenant’s reasonable expense shall do all of
the work described in the foregoing sentence. Landlord will use its best
efforts
to secure a competitive price for the work to be performed. Landlord's consent
shall not be unreasonably withheld or delayed, but may be conditioned upon
the
payment by the Tenant of additional rent as compensation for such excess
consumption of utilities and the payment for other alterations as may be
required for such equipment, as and if established by appropriate
engineers.
10.
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ACCESS
|
Tenant
agrees to allow Landlord, its agents or employees to enter the Demised Premises
at all reasonable times and upon 24 hour prior written notice (except in
case of
emergency, in which event Landlord may enter the Demised Premises without
notice) to examine, inspect or protect the same or to prevent damage or injury
to the same; to make such alterations and repairs as the Landlord may deem
necessary; or to exhibit the same to prospective tenants during the last
twelve
(12) months of the term.
Landlord
will provide Tenant with two (2) access card per one thousand (1,000) rentable
square feet of space leased by Tenant at no charge. Each additional or
replacement access card requested by Tenant shall be at a charge to Tenant
of
$15.00 per card.
11.
|
COVENANTS
OF LANDLORD
|
11.1 Landlord
covenants that it has the right to make this Lease for the term aforesaid,
and
that if Tenant shall pay all rent when due and punctually perform all of
the
covenants, terms, conditions and agreements of this Lease to be performed
by
Tenant, Tenant shall, during the term hereby created, freely, peaceably and
quietly occupy and enjoy the full possession of the Demised Premises without
molestation or hindrance by Landlord or any party claiming through or under
Landlord, subject, however, to the provisions of this Lease, including but
not
limited to the Rules and Regulations and the provisions of Paragraph 11.2
below.
11.2 Landlord
hereby reserves to itself and its successors and assigns the following rights
(all of which are hereby consented to by Tenant): (1) to change the street
address and/or name of the Building and/or the arrangement and/or location
of
entrances passageways, atria, doors doorways, corridors, elevators, stairs,
toilets, or other public parts of the Building; (2) to erect, use and maintain
pipes and conduits in and through the Demised Premises; (3) to grant to anyone
the exclusive right to conduct any particular business or undertaking in
the
Building not inconsistent with Tenant's permitted use of the Demised Premises;
and (4) the exclusive right to use and/or lease the roof areas, and the
sidewalks and other exterior areas; provided such acts do not impair Tenant’s
ability to conduct business in the normal course. Landlord may exercise any
or
all of the foregoing rights without being deemed to be guilty of an eviction,
actual or constructive, or a disturbance or interruption of the business
of
Tenant or of Tenant's use or occupancy of the Demised Premises.
12
12.
|
RULES AND REGULATIONS |
Tenant,
its agents, employees and invitees shall abide by and observe the rules and
regulations attached hereto as Exhibit
F.
Tenant,
its agents, employees and invitees shall abide by and observe such other
reasonable rules or reasonable regulations which will be enforced in a uniform
and non-discriminating manner by Landlord as may be promulgated from time
to
time by Landlord for the operation and maintenance of the Building provided
that
the same are not inconsistent with the provisions of this Lease, do not
materially impair Tenant’s permitted use of the premises, and a copy thereof is
sent to Tenant. Nothing contained in this Lease shall be construed to impose
upon Landlord any duty or obligation to enforce such rules and regulations,
or
the terms, conditions or covenants contained in any other Lease, as against
any
other tenant, and Landlord shall not be liable to Tenant for violation of
the
same by any other tenant, or such other Tenant's employees, agents or
invitees.
13.
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SIGNS
|
No
sign,
advertisement or notice shall be inscribed, painted, affixed or displayed
by
Tenant on any part of the outside or the inside of the Building except on
the
doors of offices and on the Building directory and then only in such place,
number, size, color and style as is approved by Landlord, and if any such
sign,
advertisement or notice is exhibited, without Landlord's approval, which
approval shall not be unreasonably withheld or delayed, Landlord shall have
the
right to remove the same and Tenant shall be liable for any and all expenses
incurred by Landlord for such removal. All such suite signs, shall be at
the
sole expense of Tenant, and all directory signage shall be at the sole expense
of Landlord.
14.
|
INSURANCE
|
14.1 Tenant
shall procure and keep in force at its own expense during the term of this
Lease, public liability and property damage insurance in a company acceptable
to
Landlord, naming Landlord, Landlord’s Agent, and any mortgagee of the Building
as additional insureds, with a minimum combined single limit coverage of
two
million dollars ($2,000,000) (to include "independent contractors" coverage,
broad form "contractual" liability, "personal injury" liability and a broad
form
CGL endorsement). Landlord will accept a certificate showing evidence of
coverage under Tenant's umbrella insurance policy. If at any time Tenant
does
not comply with the foregoing provisions of this Paragraph, Landlord may,
at its
option cause such insurance to be issued and in such event Tenant shall pay
the
premium(s) for such insurance promptly upon Landlord's written demand. Tenant
shall, in any event, defend, indemnify and save Landlord harmless from and
against any and all claims, actions, damages, liability, and expenses, including
reasonable attorney's fees, for injury to persons or property, arising in
whole
or in part from any act or omission of Tenant, its employees, agents,
contractors, customers or other visitors, except for negligence on the part
of
Landlord or its employees.
13
14.2 In
addition to the above, Tenant shall maintain insurance covering all of Tenant's
leasehold improvements, trade fixtures and personal property from time to
time
in, on or upon the Demised Premises and any alterations, improvements, additions
or changes made by Tenant thereto in an amount not less than one hundred
percent
(100%) of their full replacement cost from time to time during the Term of
this
Lease, providing protection against perils included within the standard form
of
fire and extended coverage insurance policy, together with insurance against
sprinkler leakage or other sprinkler damage, vandalism and malicious mischief.
Any policy proceeds from such insurance, so long as this Lease shall remain
in
effect, shall be applied first for the repair, reconstruction, restoration
or
replacement of the property damaged or destroyed.
14.3 All
insurance policies required to be obtained and maintained by Tenant under
this
Lease: (1) must be issued by insurance companies with a minimum Best rating
of
XIII; (2) must be written as primary policy coverage and not contributing
with
or in excess of any coverage which Landlord may carry; (3) must contain an
express waiver of any right of subrogation by the insurance company against
Landlord and its agents; (4) must provide that the policy may not be canceled
unless Landlord shall have received thirty (30) days prior written notice
of
cancellation; and (5) shall contain a provision that Landlord and any other
parties in interest, although named as insured, shall nevertheless be entitled
to recover under said policies for any loss occasioned to them, their servants,
agents and employees by reason of the negligence of Tenant (or any other
named
insured). Tenant shall either: a) provide a Certificate of Insurance within
thirty (30) days of occupancy or b) deliver to Landlord certified copies,
or
duplicate originals, of each such policy or renewal policy, together with
evidence of payment of all applicable premiums, not later than thirty (30)
days
after the Lease Commencement Date, and at least thirty (30) days before the
expiration of the expiring policies previously furnished. Any insurance required
of Tenant under this Paragraph 14 may be carried under a blanket policy covering
the Demised Premises and other locations of Tenant, provided that Tenant
shall
deliver to Landlord: a) a Certificate of Insurance or b) a duplicate original
or
certified copy of each blanket policy, or other evidence satisfactory to
Landlord of blanket coverage. Neither the issuance of any such insurance
policy
nor the minimum limits specified in this Paragraph 14 with respect to Tenant's
insurance coverage shall be deemed to limit or restrict in any way Tenant's
liability arising under or out of this Lease.
14.4 Insurance
Cost Increases Due to Tenant's Activity.
In the
event of increases in the insurance rates for fire insurance or other insurance
carried by Landlord due to Tenant's activity or property in or about the
Demised
Premises of the Building, or for improvements to the Demised Premises for
which
Tenant is responsible, Tenant shall be liable for such increases and shall
reimburse Landlord immediately upon written demand therefore. Statements
by an
insurance company or by the applicable insurance rating bureau that such
increases are due to such activity, property or improvements shall be conclusive
evidence for determining the liability of Tenant hereunder.
14
14.5 Procurement
of Certain Policies by Landlord.
Landlord
shall procure and keep in force at its own expense during the term of this
Lease
public liability and property damage insurance policies with respect to building
operations exclusive of the Demised Premises with not less than a combined
single limit of one million dollars ($1,000,000) and general annual aggregate
limit coverage of two million dollars ($2,000,000). Such policy shall be
full
general liability coverage with no unusual exclusions.
14.6 Insurance
on Landlord's Building and Improvements.
In
addition to the insurance described in paragraph 14.5 above, Landlord shall
maintain insurance covering the entire Building and Landlord's improvements
and
personal property from time to time in, on or upon the Building and any
alterations, improvements, additions or changes made by Landlord thereto
in an
amount not less than ninety percent (90%) of their full replacement cost
from
time to time during the entire term of this Lease, providing protection against
perils included within the standard form of fire and extended coverage insurance
policy, together with insurance against sprinkler leakage or other sprinkler
damage, vandalism and malicious mischief. Landlord shall apply the claim
payment
proceeds of such insurance, subject and subordinate to the mortgagor, directly
to the repair or restoration of the loss or damage to the Building that was
the
basis of such claim.
14.7 General
Provisions Relating to Landlord's Insurance.
All
insurance policies required to be obtained and maintained by Landlord under
this
lease (i) must be issued by insurance companies with a minimum Best rating
of
XIII; (ii) must be written as primary policy coverage and not contributing
with
or in excess of any coverage which Tenant may carry; (iii) must provide for
a
waiver of any right of subrogation by the insurance company against Tenant
and
its agents.
14.8 Insurance
Does Not Limit Liability.
Landlord
and Tenant hereby expressly agree that the insurance provisions of this Lease,
including the required minimum limits set forth in paragraphs 14.1, 14.2,
14.5,
and 14.6 of this Lease, are intended to assure that certain minimum standards
of
insurance protection are afforded by or on behalf of the parties. No
specification as to type, scope, amount or amounts of such insurance shall
in
any way be construed as a limitation or measurement of the liabilities of
Tenant
or Landlord arising under or out of this Lease.
15.
|
INDEMNITY |
15.1 General
Release of Landlord Liability.
Except
due to Landlord’s negligence, Tenant does hereby release, indemnify and hold
Landlord harmless from and against any injury, Loss, compensation or claim
by
Tenant, including, but not limited to, claims for the interruption of or
loss to
Tenant's business, based on, arising out of or resulting from any cause
whatsoever (except as otherwise provided in this Paragraph 15) including,
but
not limited to, the following: repairs to any portion of the Demised Premises;
interruption in the use of the Demised Premises or any equipment therein;
any
fire, robbery, theft, vandalism, mysterious disappearance in or on the Demised
Premises; and any leakage in any part or portion of the Demised Premises
or the
Building, or from water, rain, ice or snow that may leak into or flow from,
any
part of the Demised Premises or the Building, or from drains, pipes or plumbing
fixtures in the Building. Any goods, property or personal effects stored
or
placed by Tenant, its employees or agents in or about the Demised Premises
shall
be at the sole risk of Tenant and Landlord shall not in any manner be held
responsible therefore. Notwithstanding the foregoing provisions of this
Xxxxxxxxx 00.0, Xxxxxxxx shall not be released from liability to Tenant or
any
other person or entity for any injury to any natural person or to any property
of Tenant caused by the negligence of Landlord or its employees.
15
15.2 Landlord
assumes no liability or responsibility whatsoever with respect to the conduct
and operation of the business to be conducted by Tenant in the Demised Premises.
Landlord shall not be liable for any accident to or injury to any person
or
persons or property in or about the Demised Premises which are caused by
the
conduct or operation of said business or by virtue of equipment or property
of
Tenant in said Demised Premises, and Tenant agrees to hold the Landlord harmless
against all such claims.
15.3 Tenant
will indemnify Landlord and hold Landlord harmless from and against any loss,
damage or liability, occasioned by or resulting from any default hereunder
or
any wrongful or grossly negligent act on the part of the Tenant, its agents,
servants, employees, invitees, clients or persons authorized on the Demised
Premises by Tenant. Landlord will indemnify Tenant and hold Tenant harmless
from
and against any loss, damage or liability, including reasonable attorney's
fees,
occasioned by or resulting from any default hereunder or any wrongful or
negligent act on the part of the Landlord, its agents, servants, employees,
authorized on the Demised Premises by Tenant.
15.4 In
the
event that at any time during the term of this Lease Tenant shall have a
claim
against Landlord, Tenant shall not have the right to set off or deduct the
amount allegedly owed to Tenant from any rent or other sums payable to Landlord
hereunder.
16.
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SERVICES |
16.1
Landlord
will provide the following services:
a. Automatically
operated elevator service twenty-four (24) hours per day, seven (7) days
a week.
Access to the Building after Normal Building Hours, which are 7:00 a.m. to
6:00
p.m., Monday through Friday and 8:00 a.m. to 12:00 p.m., Saturday shall be
via
the Building card access system.
b.
Heat,
ventilation and air conditioning (“HVAC”) when necessary to provide a seasonable
temperature (subject to governmental regulations) for normal occupancy and
use
of the Demised Premises during Normal Building Hours. No regular HVAC service
will be provided on Sunday or recognized legal holidays. In the event Tenant
requests the use of Building HVAC after Normal Building Hours, Tenant shall
pay
for such use at an hourly rate of $18.50 per hour with a two (2) hour
minimum.
c. Electricity
for building standard lighting during Normal Building Hours. If Tenant regularly
utilizes the Demised Premises beyond Normal Building Hours, electricity for
building standard lighting used beyond Normal Building Hours shall be considered
excess electric and Tenant agrees to pay Landlord, promptly upon demand,
as
Additional Rent hereunder for all electric consumed for the use of said
after-hours lighting at the average rate per unit of energy then in
effect.
d. Electricity
allowance for 120/208-volt power for operation of desk-top computers, printers,
fax machines, copy machines, telephone equipment, non-standard Building
lighting, and other energy consuming devices (“Office Equipment”). In the event
Landlord reasonably determines that Tenant is consuming an excessive amount
of
electricity, Landlord reserves the right to separately meter Tenant’s space at
Tenant’s expense and Tenant agrees to pay to Landlord, promptly upon demand, as
Additional Rent hereunder for said excessive electricity at the average rate
per
unit energy then in effect. An independent engineer selected by Landlord
shall
reasonably determine electricity consumption. Tenant shall have the option
to
have an electric meter installed at Tenant’s expense.
16
e. Dedicated
computer rooms and supplemental air conditioning and/or air ventilation units
shall not be considered standard Office Equipment and shall be separately
metered, at Tenant’s expense. Tenant agrees to pay Landlord, promptly upon
written demand, as Additional Rent hereunder for all electric consumed by
non-standard Office Equipment at the average rate per unit energy then in
effect. Whenever heat generating machines and/or equipment are used by Tenant
in
the Demised Premises, Landlord reserves the right to install supplementary
air
conditioning and or air ventilation units for the Demised Premises and the
cost
of installation, operation and maintenance thereof shall be paid by Tenant
at
rates set by Landlord as Additional Rent.
f. Landlord
shall perform all light tubes or bulb replacements at Tenant's reasonable
request and the cost for same shall be included as an item of Operating
Expenses; provided, however, that the cost of replacing non-Building standard
or
specialized lights shall be replaced at Tenant’s sole cost and
expense.
g. Rest
room
facilities and necessary lavatory supplies, including hot and cold running
water, at those points of supply provided for the general use of other tenants
in the Building, and routine maintenance, painting, and electrical lighting
service for all public areas and special service areas of the Building in
the
manner and to the extent that is standard for first-class office buildings
in
the St. Louis metropolitan area.
h. Access
to
the Demised Premises on a full-time twenty-four hour basis, subject to such
reasonable regulations and/or security systems that Landlord may impose for
security purposes.
i. Janitorial
services that are standard for first-class office buildings in the St. Louis
metropolitan area.
j. Access
to
the front door of the Building during Normal Building Hours. After-hours
access
shall be through the Building’s card access system.
16.2 Any
failure by Landlord to furnish the foregoing services as a result of
governmental restrictions, energy shortages, equipment breakdowns, maintenance,
repairs, strikes, scarcity of labor or materials, or from any cause beyond
the
control of Landlord, shall not render Landlord liable in any respect for
damages
to any person or property, nor be construed as an eviction of Tenant, nor
work
an abatement of rent, nor relieve Tenant from Tenant's obligations hereunder.
If
the Building equipment should cease to function properly, Landlord shall
use
reasonable diligence to repair the same promptly.
16.3 Tenant
shall pay directly to the utility companies all costs and charges for Tenant's
consumption of utilities (other than water) under any separate meters installed
for the Demised Premises and shall pay to Landlord, as additional rent, its
proportionate share of electric bills rendered to Landlord under any meters
shared by Tenant with another tenant or tenants. In the event the cost of
any
such utilities is billed to Landlord, then Tenant shall reimburse Landlord
the
full cost thereof, as additional rent, within ten (10) days after demand
therefor. The provision of Paragraph 3.4 of this Lease shall apply if any
payment due pursuant to this Paragraph is not made when due. In the event
any
charges for utilities billed directly to Landlord are not allocated to Tenant
on
the basis of Tenant's actual usage (i.e., through the use of submeters),
then
such charges shall be allocated by Landlord based on the ratio of the area
of
the Demised Premises compared to the area serviced by the applicable meter
or
submeter. In the event Landlord reasonably determines that Tenant is consuming
an excessive amount of electricity due to a 24-hour computer system, any
other
electrical system or any reason whatsoever, Landlord reserves the right to
separately meter Tenant’s space at Tenant’s sole cost and expense.
17
17. PARKING
Landlord
will provide Tenant unreserved parking per municipal code of the City of
Creve
Coeur, which is currently 3.33 parking spaces per 1,000 rentable square feet
of
leased space, and Landlord will also provide Tenant three (3) reserved covered
parking space in a location to be reasonably determined by Landlord. This
parking will be provided free of charge, through-out the term of the Lease,
in
the parking structures that service the Building. Additional reserved covered
parking spaces shall be available to Tenant at a charge of Fifty and 00/100
Dollars ($50.00) per parking space per month. All parking for the Building
will
be structured.
18.
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DAMAGE
BY FIRE OR OTHER
CASUALTY
|
18.1 If
the
Demised Premises shall be damaged by fire or other casualty, not due to the
negligence or fault of Tenant, Landlord shall, as soon as practicable after
such
damage occurs (subject to being able to obtain all necessary permits and
approvals, including, without limitation, permits and approvals required
from
any agency or body administering environmental laws, rules or regulations,
and
taking into account the time necessary to effectuate a satisfactory settlement
with any insurance company) repair such damage at Landlord's expense and
this
Lease shall not terminate. It is understood and agreed that the Building,
whether partially or totally damaged or destroyed, need not be restored to
the
same condition as existed prior to such damage or destruction, provided the
Building is restored to a condition architecturally harmonious and consistent
with the Demised Premises and the balance of the Building. Landlord shall
not be
required to expend more for any repair, rebuilding, reconstruction, restoration,
or replacement of the Demised Premises and/or the Building pursuant to this
Paragraph than the amount of insurance proceeds paid to Landlord in connection
therewith (or if Landlord shall be self-insured, the amount of insurance
proceeds which would otherwise have been paid to Landlord had not Landlord
been
so self-insured). If the Building is so substantially damaged that it is
reasonably necessary, in Landlord's judgment, to demolish the same for the
purpose of reconstruction, Landlord may demolish the same, in which event
Landlord may treat such demolition as if it had been caused by the same cause
as
that which caused the damage.
18.2 Except
as
otherwise provided herein, if the entire Demised Premises are rendered
untenantable by reason of any such damage, all rent and additional rent shall
xxxxx for the period from the date of the damage to the date the damage is
repaired, and if only a part of the Demised Premises are so rendered
untenantable, the rent shall xxxxx for the same period in the proportion
that
the area of the untenantable part bears to the total area of the Demised
Premises; provided, however, that if, prior to the date when all of the damage
has been repaired, any part of the Demised Premises so damaged are rendered
tenantable and shall be used or occupied by or through Tenant, then the amount
by which the rent abates shall be apportioned for the period from the date
of
such use or occupancy to the date when all the damage has been repaired.
No
compensation or reduction of rent will be paid or allowed by Landlord for
inconvenience, annoyance, or injury to Tenant's business arising from the
need
to repair the Demised Premises or the Building.
18
18.3 Landlord
shall have no obligation to repair damage to or to replace Tenant's personal
property or any other property located in the Demised Premises, and Tenant
shall
within thirty (30) days after the Building is sufficiently repaired so as
to
permit the commencement of work by Tenant, commence to repair, reconstruct
and
restore or replace the Demised Premises (including fixtures, furnishings
and
equipment) and prosecute the same diligently to completion.
18.4 Notwithstanding
the foregoing provisions, if (a) the Demised Premises shall be so damaged
by
fire or other casualty that they cannot be fully repaired within a reasonable
period of time after the date of damage, or (b) the Building shall be so
damaged
by fire or other casualty that, in Landlord's opinion, substantial alteration
or
reconstruction of the Building is required (whether or not the Demised Premises
have been damaged or rendered untenantable), then Landlord, at its option,
within one hundred twenty (120) days after the fire or other casualty, may
give
Tenant written notice of termination of this Lease and, in the event such
notice
is given, this Lease and the term shall terminate (whether or not the term
shall
have commenced) upon the expiration of thirty (30) days after the date of
notice
with the same effect as if the date of expiration of the thirty (30) days
were
the date initially fixed for expiration of the term, and all rents shall
be
apportioned as of such date. Tenant shall have the right to terminate if
the
damage has not been repaired within 120 days of the date the damage has
occurred.
18.5 If
the
Demised Premises or the Building shall be damaged by fire or other casualty
due
to the act or omission of Tenant, or any of its employees, agents, licensees,
invitees, assignees, subtenants, customers, clients, or guests, this Lease
shall
not terminate and Tenant shall remain fully liable to Landlord and Landlord
shall retain all rights and remedies it has against Tenant pursuant to the
terms
of this Lease.
19. CONDEMNATION
19.1 Tenant
agrees that if the whole or a substantial part of the Demised Premises shall
be
taken or condemned for public or quasi-public use or purpose by any competent
authority, Tenant shall have no claim against the Landlord and shall not
have
any right to any portion of the amount that may be awarded as damages or
paid as
a result of any such condemnation; and all right of the Tenant to damages
for
the unexpired leasehold estate and leasehold improvements that are, have
become,
or will become, by the terms and conditions of this Lease, the property of
the
Landlord, if any, are hereby assigned by the Tenant to the Landlord. And
upon
such entire or substantial condemnation or taking, the term of this Lease
shall
cease and terminate from the date of such governmental taking or condemnation
or
taking, and the Tenant shall have no claim against the Landlord for the value
of
any unexpired term of this Lease. If less than a substantial part of the
Demised
Premises is taken or condemned by any governmental authority for any public
or
quasi-public use or purpose, the rent shall be equitably adjusted on the
date
when title vests in such governmental authority and the Lease shall otherwise
continue in full force and effect. For purposes of this Paragraph, a substantial
part of the Demised Premises shall be considered to have been taken if more
than
fifty percent (50%) of the Demised Premises are thereafter unusable by
Tenant.
19
19.2 If
any
part of the Building (including, without limitation, the Common Areas) is
taken
by condemnation so as to render, in Landlord's reasonable judgment, the
remainder unsuitable for use as an office building, Landlord shall have the
right to terminate this Lease upon notice in writing to Tenant within one
hundred twenty (120) days after possession is taken by such condemnation.
If
Landlord terminates this Lease upon a condemnation of the Building as herein
provided, it shall terminate as of the day possession is taken by the condemning
authority, and Tenant shall pay rent and perform all of its other obligations
under this Lease up to that date with a proportionate refund by Landlord
of any
Rent as may have been paid in advance for a period subsequent to such
possession.
20. DEFAULT
20.1
|
If
the Tenant
shall:
|
(a) fail
to
pay the rent or any installment thereof as aforesaid, and/or any additional
rent
as herein provided, and/or any late fee, when the same shall become due and
payable, and such default shall continue for more than five (5) days after
the
date such payment is due; or
(b) default
in the performance of any of the other covenants, conditions, terms, agreements,
rules or regulations herein contained, or hereafter established, on the part
of
the Tenant to be kept and performed and such default shall continue for more
than ten (10) days after Tenant's receipt of written notice of such default
from
Landlord; provided, however, that if such failure is incapable of practicably
being cured with diligence within such ten (10) day period and if Tenant
shall
proceed promptly to cure the same and thereafter shall prosecute such curing
with diligence, then upon receipt by Landlord of a certificate from Tenant
stating the reason such failure cannot be cured within ten (10) days and
stating
the estimated time necessary to fully cure such failure may be cured, shall
be
extended for such period as may be necessary to complete the curing of same
with
diligence; or
(c) be
a
corporation and shall fail to remain in good standing in the State of Missouri
or the state of its incorporation or shall if a foreign corporation, fail
to
maintain a duly registered agent in the State of Missouri and fail to correct
such failure within the time necessary to prevent dissolution or
disqualification by the applicable governing authority then, and in each
and
every such event from thenceforth, and at all times thereafter, at the option
of
the Landlord, the Lease shall terminate and Tenant's right of possession
shall
thereupon cease and terminate, and the Landlord shall be entitled to possession
of the Demised Premises and to re-enter the same without demand of rent or
demand of possession of the Demised Premises by process of law, notice to
quit
or of intention to re-enter the same being hereby expressly waived by the
Tenant. And in the event of such re-entry by process of law or otherwise,
the
Tenant nevertheless agrees to remain liable for any and all damages which
the
Landlord may sustain by such re-entry including, without limitation, deficiency
in or loss of rent, reasonable attorney's fees, other collection costs and
all
expenses of placing the Demised Premises in first-class rentable condition,
including the costs of subdividing all or part of the Demised Premises;
or,
20
(d) vacate
or
abandon the Demised Premises during the term of the Lease, the Tenant would
be
in default, however, abandonment by Tenant shall not be deemed to have occurred
as long as rent is paid when due, regardless of whether Tenant occupies the
Demised Premises.
20.2 If
any of
the defaults described in (a) through (d) occurs, Landlord may, but shall
not be
obligated to, terminate this Lease by notice to Tenant.
20.3 Whether
or not this Lease and/or Tenant's right of possession is terminated by reason
of
Tenant's default, and in addition to any other remedy Landlord may have at
law
or in equity, Landlord may relet the Demised Premises or any part thereof,
alone
or together for such term(s) which may be greater or less than the period
which
otherwise would have constituted the balance of the Lease Term) and on such
terms and conditions (which may include concessions of free rent and alterations
of the Demised Premises) as Landlord, in its sole discretion, may determine,
but
Landlord shall not be liable for, nor shall Tenant's obligations hereunder
be
diminished by reason of, any failure by Landlord to relet the Demised Premises
or any failure by Landlord to collect any rent due upon such
reletting.
20.4 Whether
or not this Lease is terminated by reason of Tenant's default, Tenant
nevertheless shall remain liable for any Base Annual Rent, additional rent
or
damages which may be due or sustained prior to or as a result of such default,
all costs, fees and expenses including, but not limited to, reasonable
attorneys' fees, brokerage fees, expenses incurred in placing the Demised
Premises in first-class rentable condition, and any other costs and expenses
incurred by Landlord in pursuit of its remedies hereunder, or in renting
the
Demised Premises to others from time to time (all such Base Annual Rent,
additional rent, damages, costs, fees and expenses being hereinafter referred
to
as "Termination Damages"), which, at the election of the Landlord, shall
include
either:
(a) An
amount
equal to the Base Annual Rent and additional rent which would have become
due
during the remainder of the term of this Lease, less the amount of rental,
if
any, which Landlord shall receive during such period from others to whom
the
Demised Premises may be rented (other than any additional rent received by
Landlord as a result of any failure of such other person to perform any of
its
obligations to Landlord), in which case such Termination Damages shall be
computed and payable in monthly installments, in advance, on the first day
of
each calendar month following Tenant's default and continuing until the date
on
which the term of this Lease would have expired but for Tenant's default.
Separate suits or actions may be brought to collect any such Termination
Damages
for any subsequent month(s) by similar proceedings, or Landlord may defer
any
suits or actions until after the expiration of the Lease Term; or
(b) An
amount
equal to the present value (as of the date of Tenant's default) of all Base
Annual Rent and additional rent which would have become due during the remainder
of the term of this Lease, discounted at the rate of eight percent (8%) per
annum, which Termination Damages shall be payable to Landlord in one lump
sum on
demand.
21
20.5 If
Tenant
shall (i) generally not pay Tenant's debts as such debts become due or become
insolvent, (ii) make an assignment for the benefit of creditors, (iii) file,
be
the entity subject to, or acquiesce in a petition in any court (whether or
not
pursuant to any statute of the United States or any state) in any bankruptcy,
reorganizations, composition, extension, arrangement, or insolvency proceedings,
or (iv) make an application in any proceedings for, be the entity subject
to, or
acquiesce in, the appointment of a custodian, trustee, receiver or agent
for
Tenant or all or any portion of Tenant's property; or (v) acquiesce in any
petition filed against Tenant in any court (whether or not pursuant to any
statute of the United States or any state) in any bankruptcy, reorganization,
composition, extension, arrangement or insolvency proceedings, in which Tenant
is the subject entity, and, in any of the foregoing enumerated events, (1)
an
order for relief be issued thereon, or (2) such petition shall be approved
by
any court, or (3) such proceedings shall not be dismissed, discontinued,
terminated or vacated within thirty (30) days after such petition is filed;
then, in any of said events, this Lease shall immediately cease and terminate
at
the option of Landlord with the same force and effect as though the date
of
occurrence of said event was the date herein fixed for expiration of the
term of
this Lease. In case any of the foregoing provisions are unenforceable or
invalid
under the Bankruptcy laws of the United States or the insolvency laws or
laws
for the relief of debtors of any state or territory, the remaining provisions
of
this Paragraph shall not be affected thereby, but shall remain in full force
and
effect. No trustee, interim trustee, debtor in possession, debtor engaged
in
business, custodian, receiver or assignee, or any fiduciary by whatever name,
in
dominion, control, custody or title, acting under the purported authority
of any
law, may assume or assign this lease without the prior written consent of
Landlord unless all requirements of the Bankruptcy Laws of the United States
are
fully satisfied. Such requirements in the event of a proceeding under 11
U.S.C.
101, et
seq.,
include
specifically, but without limitation, full compliance with 11 U.S.C. 365
(b) (1)
(A), (B) and (C), (b) (3) (A), (B) and (C), (b) (4) and (f) (2) (A) and (B).
If
the property of Tenant is under administration pursuant to the provision
of 11
U.S.C. 101, et
seq.,
then no
claim of Landlord for failure or refusal of Tenant to perform the covenants
of
this Lease shall exceed amounts allowable under 11 U.S.C. 502 (b) (A) and
(B),
together with any other amounts allowable to Landlord under other provisions
of
11 U.S.C. or interpretations thereof.
20.6 The
provisions contained in this Section 20 shall be in addition to, and shall
not
prevent the enforcement of, any claim Landlord may have against Tenant for
anticipatory breach of this Lease. If, prior to the commencement of the term
of
this Lease, Tenant notifies Landlord of, or otherwise unequivocally
demonstrates, Tenant's intention to repudiate this Lease, Landlord may, at
its
option, consider this anticipatory repudiation as a breach of this Lease,
in
which event Landlord may retain all rent paid upon execution of the Lease
and
the security deposit, if any, as termination damages of Landlord incurred
as a
result of such repudiation. In addition, Tenant shall pay in full for all
tenant
improvements constructed or installed within the Demised Premises to the
date of
the breach, and shall pay for all materials ordered at Tenant's request for
the
Demised Premises.
21. TENANT
HOLDING OVER
In
the
event the Tenant shall hold over after the expiration of the term of this
Lease
or any renewal thereof, then commencing on the first day of the month following
expiration of the term hereof and on the first day of each month during Tenant's
period of hold-over occupancy, Tenant shall pay to Landlord one hundred and
twenty-five percent (125%) of the monthly installment of rent then in effect
for
the month immediately prior to the expiration of the term hereof and one
hundred
and twenty-five percent (125%) of the monthly amount of any additional rent
payable by Tenant pursuant to the terms of this Lease.
22
22. HAZARDOUS
SUBSTANCES
Tenant
covenants and agrees that Tenant shall not (either with or without negligence)
cause or permit the escape, disposal or release of any biologically or
chemically active or other hazardous substances, (as defined below) or materials
on or about the Demised Premises or Building. Tenant shall not allow the
storage, use or disposal of such hazardous substances or materials in any
manner
not sanctioned by law or by the highest standards prevailing in the industry
for
the storage and use of such hazardous substances or materials, nor allow
to be
brought into the Demised Premises or Building any such hazardous materials
or
substances except to use in the ordinary course of Tenant's business, and
then
only after written notice is given to Landlord of the identity of such hazardous
substances or materials. Without limitation, hazardous substances and materials
shall include those described in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601
et
seq., the Resource Conservation and Recovery Act, as amended 42 U.S.C. Section
6901 et seq., any applicable state or local laws, ordinances, ordinances
or
regulations, and the regulations adopted under these acts. If any lender
or
governmental agency shall ever require testing to ascertain whether or not
there
has been any release of hazardous materials or substances due to acts or
omissions of Tenant, then the costs thereof shall be reimbursed by Tenant
to
Landlord upon demand as additional charges if such requirement applies to
the
Demised Premises or Building. In addition, Tenant shall execute affidavits,
representations and the like from time to time at Landlord's request concerning
Tenant's best knowledge and belief regarding the presence of hazardous
substances or materials on the Demised Premises. In all events, Tenant shall
indemnify and hold Landlord harmless from and against any and all claims,
costs
and liabilities, including without limitation reasonable attorney's fees
and
costs incurred as a result of a release or threatened release or hazardous
materials or substances on the Demised Premises or Building occurring while
Tenant is in possession, or if caused by Tenant or persons acting under Tenant.
The within covenants shall survive the expiration or earlier termination
of the
lease term.
23. ATTORNMENT
AND CURE RIGHTS
This
Lease is subject and subordinate to the first mortgage and/or deed of trust
which may now or hereafter affect this Lease or the Building of which the
Demised Premises form a part or the land on which the Building is erected,
and
to all renewals, modifications, consolidations, replacements and extensions
thereof. In confirmation of such subordination, Tenant shall, within ten
(10)
business days after request therefore, execute any commercially reasonable
certificate that the Landlord or Landlord's lender may request and which
does
not modify or amend this Lease. Tenant agrees that in the event any proceeding
is brought for the foreclosure of any mortgage encumbering the Building,
Tenant
shall attorn to the purchaser at such foreclosure sale and shall recognize
such
purchaser as the Landlord under this Lease, and Tenant waives the provisions
of
any statute or rule of law, now or hereafter in effect, which may give or
purport to give Tenant any right to terminate or otherwise adversely affect
this
Lease and the obligations of Tenant hereunder in the event any such foreclosure
proceeding is prosecuted or completed provided that the Purchaser at any
such
foreclosure sale shall recognize this Lease and the rights of Tenant hereunder
as long as Tenant is not in default in the performance of any of the terms
and
provisions on Tenant's part to be kept and performed under this Lease. Tenant
agrees that upon such attornment, such purchaser shall not be (1) bound by
any
payment of annual base rent or additional rent for more than one (1) month
in
advance, except prepayments in the nature of security for the performance
by
Tenant of its obligations under this Lease but only to the extent such
prepayments have been delivered to such purchaser, (2) bound by any subsequent
amendment of this Lease made without the consent of the lender providing
permanent financing for the Building, (3) liable for damages for any act
or
omission of any prior landlord, or (4) subject to any offsets or defenses
which
Tenant might have against any prior landlord, provided, however, that after
succeeding to Landlord's interest under this Lease, such purchaser shall
perform
in accordance with the terms of this Lease all obligations of Landlord arising
after the date such purchaser acquires title to the Building. Upon request
by
such purchaser, Tenant shall execute and deliver an instrument or instruments
confirming its attornment.
23
Contemporaneous
with the execution of this Lease, Tenant shall execute the Subordination,
Non-Disturbance and Attornment Agreement (the “SNDA”) attached hereto as
Exhibit
G.
Upon
receipt of said fully executed SNDA, Landlord shall forward the Agreement
to
Lender, as that term is defined in the SNDA, for execution by
Lender.
24. MORTGAGEE
REQUIREMENTS
Tenant
shall, at its expense, comply with all reasonable requirements and notices
of
any financial institution(s) providing funds for the permanent financing
or
refinancing of the Building, respecting all matters of occupancy, use, condition
or maintenance of the Demised Premises provided the same shall not unreasonably
interfere with the conduct of Tenant's business nor materially limit or affect
the rights of the parties under this Lease. In addition, notwithstanding
acceptance and execution of this Lease by the parties hereto, it is understood
and agreed that the terms hereof shall be automatically deemed modified,
if so
required, for the purpose of complying with or fulfilling the reasonable
requirements of any lender secured by a mortgage or deed of trust which may
now
or hereafter be placed or secured upon the Building by any financial institution
providing funds for the permanent financing or refinancing of the Building,
provided, however, that such modifications shall not be in material derogation
or diminution of any of the rights of the parties hereunder, nor materially
increase any of the obligations or liabilities of the parties hereunder.
In the
event any lender requires commercially reasonable changes to this Lease as
described above, Landlord may submit to Tenant a written amendment to this
Lease
incorporating such changes and, if such amendment does not interfere with
the
conduct of Tenant’s business or materially limit or affect Tenant’s rights and
privileges hereunder, Tenant hereby covenants and agrees to execute, acknowledge
and deliver such amendment to Landlord within ten (10) business days after
Tenant’s receipt thereof.
24
25. ESTOPPEL
CERTIFICATES
Tenant
shall, without charge, at any time, and from time to time, within ten (10)
business days after receipt of request therefore by Landlord, execute,
acknowledge and deliver to Landlord, any mortgagee, assignee of a mortgagee,
or
any purchaser of the Building or any other person designated by Landlord,
as of
the date of such Estoppel Certificate, the following: (1) whether or not
Tenant
is in possession of the Demised Premises; (2) whether or not this Lease is
unmodified and in full force and effect (or if there has been a modification,
that the Lease is in full force and effect (or if there has been a modification,
that the Lease is in full force and effect as modified and setting forth
such
modification); (3) whether or not there are then existing any set-offs or
defenses against the enforcement of any right hereunder (and, if so, specifying
the same in detail); (4) the dates, if any, to which any rent or no other
charges have been paid in advance; (5) that Tenant has no knowledge of any
other
such uncured defaults on the part of Landlord's obligations under this Lease
(or
if Tenant has knowledge, specifying the same in detail); (6) that Tenant
has no
knowledge of any event having occurred that authorizes the termination of
this
Lease by Tenant (or if Tenant has such knowledge, specifying the same in
detail); and (7) the address to which notices to Tenant should be sent. Any
such
statement delivered pursuant hereto may be relied upon by Landlord or any
prospective purchaser or mortgagee of the Building or any part thereof or
estate
therein. Tenant acknowledges that time is of the essence to the delivery
of such
statements by Tenant and that Tenant's failure or refusal to do so may result
in
substantial damages to Landlord resulting from, for example, delays suffered
by
Landlord in obtaining financing or refinancing secured by the Building. Tenant
shall be liable for all such damages suffered by Landlord as a direct result
of
Tenant’s failure or refusal. In addition, if after thirty days from written
notice requesting such estoppel certificate, Tenant's failure or refusal
to
deliver such certificates within the time period aforesaid shall be conclusive
evidence as against Tenant (i) that this Lease is in full force and effect,
without modification except as may be represented by Landlord, (ii) that
there
are no uncured defaults in Landlord's performance of obligations hereunder,
and
(iii) that not more than one month's installment of Minimum Annual Rent has
been
paid in advance of the due date.
26.
|
LANDLORD'S
INABILITY TO PERFORM
|
This
Lease and the obligations of Tenant to pay rent and perform all of the
provisions on the part of Tenant to be performed hereunder shall in no way
be
affected, impaired, or excused because Landlord, due to unavoidable delays,
(1)
is unable to fulfill any of its obligations under this Lease; (2) is unable
to
supply or is delayed in supplying any service expressly or implied to be
supplied; (3) is unable to make or is delayed in making any repairs,
replacements, additions, alterations or decorations; or (4) is unable to
supply
or is delayed in supplying any improvements, equipment or fixtures. Landlord
shall be under no obligation to pay overtime labor rates.
27. TRANSFER
BY LANDLORD
Landlord
may freely sell, assign, or otherwise transfer all or any portion of its
interest under this Lease or in the Demised Premises or the Building, and
in the
event of any such sale, assignment or other transfer, the party originally
executing this Lease as Landlord, and any successor or affiliate of such
party,
shall, without further agreement between Landlord and Tenant or between Landlord
and/or Tenant and the person or entity who is the purchaser, assignee or
other
transferee of Landlord, be relieved of any and all of its obligations under
this
Lease, and Tenant shall thereafter be bound to such purchaser, assignee or
other
transferee, as the case may be, with the same effect as though the latter
had
been the original Landlord hereunder provided any such assignee, purchaser
or
transferee has assumed the obligations of Landlord hereunder.
25
28. WAIVER
If
under
the provisions hereof Landlord shall institute proceedings and a compromise
or
settlement thereof shall be made, the same shall not constitute a waiver
of any
covenant herein contained nor of any of Landlord's rights hereunder. No waiver
of any breach of any covenant, condition, term or agreement herein contained
shall operate as a waiver of the covenant, condition, term or agreement itself
or of any subsequent breach thereof. No provision of this Lease shall be
deemed
to have been waived by Landlord unless such waiver shall be in writing signed
by
Landlord. No payment by Tenant or receipt by Landlord of a lesser amount
than
the monthly installment of rent herein stipulated shall be deemed to be other
than on account of the earliest stipulated rent nor shall any endorsement
or
statement on any check or any letter accompanying any check or payment as
rent
be deemed an accord and satisfaction, and the Landlord may accept such check
or
payment without prejudice to the Landlord's right to recover the balance
of such
rent or pursue any other remedy in this Lease provided. No reentry by Landlord,
and no acceptance by Landlord of keys from Tenant, shall be considered an
acceptance of a surrender of this Lease.
29. ATTORNEY’S
FEES.
If
any
person not a party to this Lease shall institute an action against Tenant
in
which Landlord shall be made a party, Tenant shall indemnify and save Landlord
harmless from all liability by reason thereof, including reasonable attorneys’
fees, and all reasonable and necessary costs incurred by Landlord in such
action
to the extent not attributable to the negligence of Landlord. If any action
shall be brought by Landlord to recover any rental under this Lease, or for
or
on account of any breach of or to enforce or interpret any of the terms,
covenants or conditions of this Lease, or for the recovery of possession
of the
Demised Premises, Landlord shall be entitled to recover from Tenant, as a
part
of Landlords’ costs, a reasonable attorney fee, the amount of which shall be
fixed by the court and shall be made a part of any judgment in favor of
Landlord, and court costs. If any action is commenced by either party against
the other, the prevailing party will be reimbursed for all reasonable attorneys’
fees and associated costs by the other party.
30. GENERAL
PROVISIONS
30.1 Definition
of "Landlord". As
used
herein, the term "Landlord" shall mean the entity herein named as such, and
its
successors and assigns, each of whom shall have the same rights, remedies,
powers, authorities and privileges as it would have had, had it originally
signed this Lease as the Landlord. No person holding the Landlord's interest
hereunder (whether or not such person is named as "Landlord" herein) shall
have
any liability hereunder after such person ceases to hold such interest, except
for any such liability accruing while such person holds such interest. Neither
the Landlord nor any principal of the Landlord, whether disclosed or
undisclosed, shall have any personal liability under any provision of this
Lease. If the Landlord defaults in the performance of any of its obligations
hereunder or otherwise, the Tenant shall look solely to the Landlord's equity,
interest and rights in the Building for satisfaction of the Tenant's remedies
on
account thereof.
26
30.2 Definition
of "Tenant". As
used
herein, the term "Tenant" shall mean each person hereinabove named as such
and
such person's heirs, personal representatives, successors and assigns, each
of
whom shall have the same obligations, liabilities, rights and privileges
as it
would have possessed had it originally executed this Lease as the Tenant;
provided, that no such right or privilege shall inure to the benefit of any
subtenant or assignee of the Tenant, immediate or remote, unless the assignment
to such assignee or the sublease with such subtenant is made in accordance
with
the provisions of Paragraph 8, hereof. In the event that two or more
individuals, corporations, partnerships or other business associations (or
any
combination of two or more thereof) shall sign this Lease as Tenant or guarantee
this Lease as Guarantors, the liability of each such individual, corporation,
partnership or other business association to pay rent and perform all other
obligations hereunder shall be deemed to be joint and several. In like manner,
in the event that the Tenant named in this Lease shall be a partnership or
other
business association, the members of which are by virtue of statute or general
law subject to personal liability, then, and in that event, the liability
of
each such member shall be deemed to be joint and several. Notwithstanding
any
other provisions hereof, or of any rule or provision of law, the failure
or
refusal by Landlord to proceed, in the event of a breach or default by Tenant,
against all the individuals, corporations, partnerships or other business
associations comprising the Tenant (or any combination of two or more thereof)
or against Tenant or against one or more of the Guarantors, if any, hereof
shall
not be deemed to be a release or waiver of any rights which Landlord may
possess
against such other individuals, corporations, partnerships, or associations
not
so proceeded against, nor shall it not be deemed to be a release or waiver
of
any rights which Landlord may possess against such other individuals,
corporations, partnerships, or associations not so proceeded against, nor
shall
the granting by Landlord of a release of, or execution of a covenant not
to xxx
anyone or more of the individuals, corporations, partnerships, or other business
associations comprising the Tenant (or any combination of two or more thereof)
or the Guarantors, if any, constitute a release or waiver, in whole or in
part,
of any rights which Landlord may possess against such other individuals,
corporations, partnerships, or associations not so released or granted a
covenant not to xxx. In the event the Tenant or any guarantor of the Tenant's
obligations hereunder, whether pursuant to a Guaranty attached hereto or
otherwise, (herein called "Guarantor") is a corporation or partnership, the
persons executing this Lease on behalf of the Tenant and/or such Guarantor(s),
as the case may be, hereby represent and warrant that: the Tenant and/or
such
Guarantor(s), as the case may be, is a duly constituted corporation or
partnership qualified to do business in the State of Missouri; all of Tenant's
and/or said Guarantor's franchise and corporate taxes have been paid to date;
that Tenant and/or such Guarantor(s), as the case may be, is otherwise in
good
standing in the State of its incorporation; and that such persons are duly
authorized to execute and deliver this Lease on behalf of Tenant.
30.3 No
Partnership. Nothing
contained in this Lease shall be deemed or construed to create a partnership
or
joint venture of or between Landlord and Tenant, or to create any other
relationship between the parties hereto other than that of Landlord and
Tenant.
30.4 No
Representation. Neither
Landlord nor any agent or employee of Landlord has made any representation
or
promise with respect to the Demised Premises or the Building except as herein
expressly set forth, and no rights, privileges, easements or licenses are
acquired by Tenant except as herein set forth.
30.5 Brokers. Landlord
and Tenant each represents and warrants to the other that, except as set
forth
herein, neither of them has employed or dealt with any broker, agent or finder
in carrying on the negotiations relating to this Lease. Landlord shall pay
to
Tenant’s broker, Xxxxxxx Group, under the direction and along with Transwestern
Commercial Services, a commission per a separate brokerage agreement between
Landlord and Xxxxxxx Group and Transwestern Commercial Services. Landlord
shall
also pay to Landlord’s broker, The Koman Group, L.L.C., a commission per a
separate brokerage agreement between Landlord and The Koman Group, L.L.C.
Tenant
and Landlord shall mutually indemnify and hold each other harmless from and
against any claim or claims for brokerage or other commissions asserted by
any
broker, agent or finder engaged by either party, other than Xxxxxxx Group,
Transwestern Commercial Servies and The Koman Group, L.L.C.
30.6 Invalidity
of Particular Provisions. It
is the
intention of the parties hereto that if any provision of this Lease is capable
of two constructions, one of which would render the provision invalid, and
the
other of which would render the provision valid, then the provision shall
have
the meaning which renders it valid. If any term or provision of this Lease
or
the application thereof to any person or circumstance shall, to any extent,
be
invalid or unenforceable, the remaining terms and provisions of this Lease,
or
the application of such terms and provisions to persons or circumstances
other
than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each term and provision of this Lease shall be valid
and
enforced to the fullest extent permitted by law.
30.7 Notices. All
notices required to be given hereunder by either party to the other shall
be
given by personal delivery, sent by a reputable private carrier of overnight
mail or by certified or registered mail, return receipt requested. In the
event
notice is given by personal delivery, notice shall be deemed given when
delivered; if notice is given by private carrier it shall be deemed made
on the
day after such sending; or if by mail, it shall be deemed given when deposited
into the United States mail, postage prepaid. Notices to the respective parties
shall be to the address written below or such other address as notified to
the
other parties and such notice shall be deemed to be made on the fifth
(5th)
day
after such mailing:
If to the Landlord: | Cornerstone Opportunity Ventures, LLC |
c/o The Koman Group | |
Xxx XxxxXxxxx Xxxxx, Xxxxx 000 | |
Xxxxx
Xxxxx, Xxxxxxxx 00000
|
|
Attn: Xxxxxxx X. Xxxxx, Xx. |
27
With a copy to: | Xxxx X. Xxxxxxxxxx, Esq. |
c/o The Koman Group | |
Xxx XxxxXxxxx Xxxxx | |
Xxxxx
000
|
|
Xxxxx Xxxxx, Xxxxxxxx 00000 |
If to the Tenant: | Perficient, Inc. |
000 Xxxxxxx Xxxx, Xxxxx 000 | |
Xx. Xxxxx, XX 00000 | |
(Attention:
Xxxx Xxxxxxxxxx)
|
If to the Mortgagee: | ______________________ |
______________________ | |
______________________ | |
______________________ |
Any
party
may, by like written notice, designate a new address to which such notices
shall
be directed.
30.8
|
Construction.
|
(a) As
used
herein, the term "person" shall mean a natural person, a trustee, a corporation,
a partnership and any other form of legal entity; and all references made
(1) in
the neuter, masculine or feminine gender shall be deemed to have been made
in
all such genders, and (2) in the singular or plural number shall be deemed
to
have been made, respectively, in the plural or singular number as
well.
(b) The
headings of the Paragraphs hereof are provided only for convenience of
reference, and shall not be considered in construing the contents
thereof.
(c) Time
is
of the essence with respect to each of Tenant's obligations under this
Lease.
(d) Although
the printed provisions of this Lease were drawn by Landlord, this Lease shall
not be construed for or against Landlord or Tenant, but this Lease shall
be
interpreted in accordance with the general tenor of the language in an effort
to
reach the intended result.
30.9 Governing
Law. This
Lease shall be construed and enforced in accordance with the laws of the
State
of Missouri, and any action or proceeding arising hereunder shall be brought
in
the courts of State of Missouri. If any such action or proceeding arises
under
the Constitution, laws or treaties of the United States of America, or if
there
is a diversity of citizenship between the parties hereto, so that suit may
be
brought in a United States District Court, it shall be brought in the United
States District Court for the Eastern District of Missouri, Eastern
Division.
28
31.
|
OPTION
TO RENEW LEASE
|
Tenant
shall have the right to renew this Lease for two (2) additional five (5)
year
terms upon nine (9) month’s prior written notice to Landlord. The Tenant shall
have the right to renew the lease at market rate at the notice of renewal
time,
but in no event will the renewal rent be less than the initial
rent.
32.
|
RIGHT
OF REFUSAL
|
During
the term of this Lease and any renewal periods, Tenant shall have a right
of
refusal to lease the approximately nine thousand six hundred fifty-four (9,654)
rentable square feet of space contiguous to Tenant’s space and currently
occupied by Xxxxx Fargo Home Mortgage, Inc. (the “ROR Space”) as set forth on
Exhibit I,
attached hereto and incorporated herein as the Right of First Refusal Floor
Plan. Tenant’s right of refusal shall be triggered by any one of the following:
(i) Landlord’s receipt of notice that Xxxxx Fargo Home Mortgage, Inc. will
terminate its lease; (ii) termination of the lease between Landlord and Xxxxx
Fargo Home Mortgage, Inc.; (iii) Landlord’s receipt of written notice that Xxxxx
Fargo Home Mortgage, Inc. will vacate the ROR space; or (iv) Xxxxx Fargo
Home
Mortgage, Inc.’s failure to provide Landlord notice of its intention to renew
its lease within the required time period for such notice as specified in
the
lease agreement between Landlord and Xxxxx Fargo Home Mortgage, Inc.
(collectively the “ROR Trigger”). Upon Tenant’s receipt of written notice from
Landlord of the activation of the ROR Trigger, Tenant shall have ten (10)
days
to accept Landlord’s offer in writing. Tenant’s failure to respond within such
ten (10) day period shall constitute a rejection of Landlord’s
offer.
If
Tenant
accept Landlord’s offer, then promptly after receipt of such notice by Landlord,
the parties shall execute an amendment to this Lease incorporating the ROR
Space
(the “Additional Demised Premises”) as part of the Demised Premises. Tenant
shall be deemed to occupy the Additional Demised Premises and Base Annual
Rent
shall begin to accrue on the Additional Demised Premises the day after the
date
Landlord substantially (i.e., excluding minor punch list items) completes
construction of all of Landlord’s Additional Demised Premises Work in accordance
with the Additional Demised Premises Work Plans and delivers possession of
the
Additional Demised Premises to Tenant. The term “Landlord’s Additional Demised
Premises Work” shall mean all work set forth in the Additional Demised Premises
Work Plans. The term “Additional Demised Premises Work Plans” shall mean those
plans and specifications for the work to be performed in the Additional Demised
Premises prepared by Landlord and approved in writing by Tenant.
Landlord
and Tenant shall use all reasonable efforts to agree upon the terms of a
lease
for the Additional Demised Premises; provided, however, that the term of
occupancy for the Additional Demised Premises and the Demised Premises shall
be
no less than five years from the date Tenant occupies the Additional Demised
Premises. Further, Landlord and Tenant shall use all reasonable efforts to
agree
upon the Additional Demised Premises Work Plans. If Landlord and Tenant have
not
agreed upon the terms of a lease for the Additional Demised Premises (including
the Additional Demised Premises Work Plans), within the earlier of (a) thirty
(30) days after the date Tenant elects to lease the Additional Demised Premises
or (b) the date that the ROR Space could be occupied by another Tenant, then
either party may terminate the right of refusal upon the delivery of written
notice to the other party.
29
33. RIGHT
TO RELOCATE
If
Tenant
occupies less than 7,500 rentable square feet of space, Landlord shall have
the
right, upon thirty (30) days’ advance written notice to Tenant, to immediately
relocate Tenant to space in any other building located on the CityPlace Campus
(excluding the Oaks Building) that is comparable is size and finish to Tenant’s
current space, at no additional cost to Tenant (even if the space is larger);
provided that if the space is smaller, Tenant’s Base Annual Rent shall be abated
at the applicable Base Annual Rent rate set forth in Section 3.1, above.
If
Landlord exercises this right, Landlord shall bear all reasonable relocation
costs and expense incurred to move Tenant to the new space.
34. RESOLUTION
OF DISPUTES
Landlord
and Tenant will use their best efforts to resolve any disputes between them
with
respect to their respective obligations and the completion of the Landlord’s
Work and Tenant’s Work as efficiently and as cost-effectively as
possible.
At
all
relevant times, Landlord and Tenant will make bona fide and good faith efforts
to resolve all disputes by amicable negotiations; and ensure their
representatives will meet, negotiate in good faith and try to resolve each
dispute without litigation.
If
a
dispute cannot be resolved through amicable negotiations, Landlord and Tenant
will promptly participate in mediation with a mutually acceptable
mediator.
The
parties will share the cost of the mediator equally and bear their own costs
with respect to the mediation.
35. ENTIRE
AGREEMENT
This
Lease together with all Exhibits attached hereto contains and embodies the
entire agreement of the parties hereto, and no representations, inducements
or
agreements, oral or otherwise, between the parties not contained and embodied
in
this Lease shall be of any force or effect, and this Lease may not be modified,
changed or terminated in whole or in part in any manner other than by an
agreement in writing signed by all parties hereto. All of Tenant's duties
and
obligations hereunder, including but not limited to Tenant's duties and
obligations to pay base rent, additional rent and the costs, expenses, damages
and liabilities incurred by Landlord for which Tenant is liable, shall survive
the expiration or termination of this Lease for any reason
whatsoever.
36. NO
OPTION
The
submission of this Lease for examination or consideration by Tenant or
discussion between Tenant and Landlord does not constitute a reservation
of or
option for the Demised Premises or any other space in the Building, and this
Lease shall be and become effective as Lease and agreement only upon legal
execution, acknowledgment and delivery hereof by Landlord and
Tenant.
30
IN
WITNESS WHEREOF,
the
undersigned have caused this Lease to be signed and sealed as of the day
and
year first above written.
LANDLORD: | |
CORNERSTONE OPPORTUNITY VENTURES, LLC | |
|
|
By: /s/ Xxxxxxx X. Xxxxx, Xx. | |
Xxxxxxx
X. Xxxxx, Xx.
|
|
Managing Member | |
STATE OF MISSOURI | ) | |
) ss | ||
COUNTY
OF ST. LOUIS
|
) |
Personally
appeared before me the undersigned, a Notary Public in and for said County
and
State, Xxxxxxx X. Xxxxx, Xx., known to me to be the Managing Member of
Cornerstone Opportunity Ventures, LLC, the entity which executed the foregoing
document who acknowledged that he did sign the foregoing instrument for and
on
behalf of said entity, being there unto duly authorized; that the same is
his
free act and deed as such Manager and the free act and deed of said
entity.
IN
TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 21st
day of December, 2005.
My
Commission expires: /s/ Xxxxx
Xxxx
10/3/08 Notary
Public
31
TENANT: | |
PERFICIENT,
INC.
|
|
By: /s/Xxxx Xxxxxxxxxx | |
Printed Name: Xxxx Xxxxxxxxxx | |
Title: Vice President - Finance & Administration |
STATE OF MISSOURI |
)
|
|
) ss | ||
COUNTY
OF ST. LOUIS
|
) |
Personally
appeared before me the undersigned, a Notary Public in and for said County
and
State, Xxxx Xxxxxxxxxx known to me to be the Vice President - Finance &
Administration of Perficient, Inc. the entity which executed the foregoing
document who acknowledged that he did sign the foregoing instrument for and
on
behalf of said entity, being there unto duly authorized; that the same is
his
free act and deed as such officer and the free act and deed of said
entity.
IN
TESTIMONY WHEREOF, I have hereunto set my hand and official seal this 19
day of December, 2005.
My
Commission expires: /s/ Xxxxx X.
Xxxxxxx
3/24/08 Notary
Public
32