LEASE AGREEMENT FOR BUILDING NO. 1 OF THE NOKIA DALLAS BUILDINGS
EXHIBIT 10.80
FOR BUILDING NO. 1 OF THE NOKIA DALLAS BUILDINGS
Lease
THE COMMONS OF LAS COLINAS
BUILDING I
IRVING, TEXAS
Between
NOKIA INC.
a Delaware corporation
(Tenant)
and
CARRAMERICA REALTY, L.P.,
a Delaware limited partnership
(Landlord)
LEASE
THIS LEASE (the “Lease”) is made as of this day of October, 1998 between
CarrAmerica Realty, L.P., a Delaware limited partnership (the “Landlord”) and the Tenant as named in the Schedule below. The term “Project” means the three (3) building complex including
Building I (the “Building”) known as “The Commons of Las Colinas” and the land (the “Land”) located along Connection Drive and S.H. 000, Xxxxxx, Xxxxx described on Appendix A-1.
“Premises” means that part of the Project leased to Tenant described in the Schedule and outlined on Appendix A.
The following schedule (the “Schedule”) is an integral part of this Lease. Terms defined in this Schedule shall have the same meaning throughout the Lease.
SCHEDULE
1. |
Tenant: NOKIA INC. |
2. |
Premises: Covering all nine (9) stories in the Building, as more particularly shown on the Plans |
3. |
Rentable Square Feet of the Premises: 228,196, subject to final verification upon completion of the Building |
4. |
Tenant’s Proportionate Share: 41.49% based upon a total of 550,000 rentable square feet in the Project, subject to verification upon completion of
the Building by each of Tenant’s and Landlord’s architect pursuant to Paragraph 15 of the Work Agreement attached hereto as Appendix C). |
5. |
Security Deposit: None. |
6. |
Tenant’s Real Estate Broker for this Lease: Xxxxxxx & Xxxxxxxxx of Texas, Inc. |
7. |
Landlord’s Real Estate Broker for this Lease: None. |
8. |
Tenant Improvements, if any: See the Work Agreement attached hereto as Appendix C. |
9. |
Commencement Date: For Floors 3 and 4: May 1, 1999; for Floors 5 and 6: May 14, 1999; for Floor 7: May 25, 1999; for Floors 1 and 2: July 6, 1999; for
Floor 8: June 15, 1999; and for Floor 9: July 1, 1999 but if the Premises are subject to new construction pursuant to Appendix C, the earlier to occur of (i) the date Tenant occupies the applicable portion of the Premises, or (ii) the Completion
Date, as defined therein, if it is later; Landlord and Tenant shall execute a Commencement Date Confirmation substantially in the form of Appendix E promptly following the Commencement Date which shall, among other matters, conclusively establish
the square footage of the Premises and the Building. |
10. |
Termination Date/Term: Ten (10) years after the Commencement Date, or if the Commencement Date is not the first day of a month, then on the last day of
the month in which the tenth (10th) anniversary of the Commencement Date occurred. |
11. |
Guarantor: Nokia Corporation. |
12. |
Expense Stop: $6.00/rentable square feet. |
13. |
Base Rent: * |
Period |
Annual Base
Rent |
Monthly Base
Rent | ||||
Years 1-5 |
$ |
23.65/square foot |
$ |
449,736 | ||
Years 6-10 |
$ |
25.35/square foot |
$ |
482,064 |
* |
subject to increase pursuant to the terms of the Work Agreement (Appendix C). |
1. LEASE AGREEMENT. On the terms stated in this Lease, Landlord leases the Premises to Tenant,
and Tenant leases the Premises from Landlord, for the Term beginning on the
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Commencement Date and ending on the Termination Date unless extended or sooner terminated pursuant to this Lease.
2. RENT.
A. Types of Rent. Tenant shall pay the following Rent in the form of a check to Landlord at the following address (if the address or wire transfer information
is not available at the time of execution of this Lease, Landlord shall subsequently provide them to Tenant by notice sent in accordance with this Lease):
CarrAmerica Realty, L.P.
t/a Commons of Las Colinas
X.X. Xxx
Xxxxxxx, XX 00000-
or by
wire transfer as follows:
NationsBank, N.A. (South)
ABA Number 000-000-000
Account Number
or in such other manner as Landlord may notify Tenant
reasonably in advance of the applicable payment due date:
(1) Base Rent in
monthly installments in advance, the first monthly installment payable upon the Commencement Date and thereafter on or before the first day of each month of the Term in the amount set forth on the Schedule. It is understood that Base Rent for the
first year of the Term shall be calculated and paid to reflect the fact that the Premises will become available for occupancy in increments and that there will be a different Commencement Date for each increment of the Premises.
(2) Operating Cost Share Rent in an amount equal to the Tenant’s Proportionate Share of
the excess of Operating Costs for the applicable fiscal year of the Lease (the “Excess Operating Costs”) over the product of the Expense Stop times the Rentable Square Feet of the Premises (the “Base Operating
Costs”), paid monthly in advance in an estimated amount. Definitions of Operating Costs and Tenant’s Proportionate Share, and the method for billing and payment of Operating Cost Share Rent are set forth in Sections 2B, 2C and
2D.
The Controllable Operating Cost Share Rent (defined below) applicable to the second fiscal
year of the Lease shall be the lesser of (i) Tenant’s Proportionate Share of Controllable Operating Costs during the second fiscal year, or (ii) the sum of Tenant’s Proportionate Share of Controllable Operating Costs for the first fiscal
year, plus 4% (such sum is the “Cap Amount”).
The Controllable Operating
Cost Share Rent applicable to each fiscal year thereafter shall be the lesser of (i) Tenant’s Proportionate Share of Controllable Operating Costs during the applicable fiscal year, or (ii) the sum of the Cap Amount for the immediately preceding
fiscal year, plus 4%.
“Controllable Operating Cost Share Rent” shall be
an amount equal to Tenant’s Proportionate Share of Controllable Operating Costs. “Controllable Operating Costs” means all Operating Costs other than costs related to Taxes (as defined below) insurance, collectively
bargained union wages, electricity and other utilities (herein, “Non-Controllable Operating Costs”). There shall be no cap on Non-Controllable Operating Costs.
Assume, for example, Controllable Operating Cost Share Rent for the first fiscal year of $100.00. In the second fiscal year, Controllable Operating Cost
Share Rent would
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be the lesser of (i) Tenant’s Proportionate Share of Controllable Operating Costs for the second fiscal year, or (ii) $104.00 ($100.00 plus 4%, which would be the Cap Amount). In the third
year, Controllable Operating Cost Share Rent would be the lesser of (i) Tenant’s Proportionate Share of Controllable Operating Costs for the third fiscal year, or (ii) $108.16 ($104.00 plus 4%, which becomes the Cap Amount for the following
year).
(3) Electrical Cost Share Rent in an amount equal to the sum of (a) all
electricity used by the Premises; plus (b) Tenant’s Proportionate Share of all electricity used by the Project (“Electrical Costs”). Electrical Costs exclude any electricity charges attributable to any tenantable areas
(i.e., those areas either leased or being held for lease by Landlord) and any charges paid directly by Tenant to the electric utility company pursuant to a contract between such parties. Such amount shall be payable monthly in advance in an
estimated amount. The method of billing and payment of Electrical Cost Share Rent is set forth in Sections 2B and 2D.
(4) Additional Rent in the amount of all costs, expenses, liabilities, and amounts which Tenant is required to pay under this Lease, excluding Base Rent, Operating Cost Share Rent and Electrical Cost Share
Rent, but including any interest for late payment of any item of Rent.
(5) Rent
as used in this Lease means Base Rent, Operating Cost Share Rent, Electrical Cost Share Rent and Additional Rent. Tenant’s agreement to pay Rent is an independent covenant, with no right of setoff, deduction or counterclaim of any kind.
B. Payment of Operating Cost Share Rent and Electrical Cost Share Rent.
(1) Payment of Estimated Operating Cost Share Rent and Electrical Cost Share
Rent. Landlord shall estimate the Operating Costs and Electrical Costs (please see clause A.(4) above for limits on definition of Electrical Costs and clause B.(4) below for “true-up” provisions) of the Project
by April 1 of each fiscal year, or as soon as reasonably possible thereafter. Landlord may revise these estimates whenever it obtains more accurate information, such as the final real estate tax assessment or tax rate for the Project.
Within thirty (30) days after receiving the original or revised estimate from Landlord setting forth (a) an
estimate of Operating Costs for a particular fiscal year, (b) the Base Operating Costs, and (c) the resulting estimate of Excess Operating Costs for such fiscal year, Tenant shall pay Landlord one-twelfth (1/12th) of Tenant’s Proportionate
Share of the estimated Excess Operating Costs, multiplied by the number of months that have elapsed in the applicable fiscal year to the date of such payment including the current month, minus payments previously made by Tenant for the months
elapsed. On the first day of each month thereafter, Tenant shall pay Landlord one-twelfth (1/12th) of Tenant’s Proportionate Share of this estimate, until a new estimate becomes applicable.
Within thirty (30) days after receiving the original or revised estimate setting forth an estimate of Tenant’s Proportionate Share of Electrical
Costs for a particular fiscal year, Tenant shall pay Landlord one-twelfth (1/12th) of the estimated Tenant’s Proportionate Share of Electrical Costs, multiplied by the number of months that have elapsed in the applicable fiscal year to the date
of payment, including the current month, minus payments previously made by Tenant for the months elapsed. On the first day of each month thereafter, Tenant shall pay Landlord one-twelfth (1/12th) of Tenant’s Proportionate Share of such
estimate, until a new estimate becomes available.
(2) Correction of Operating Cost
Share Rent. Landlord shall deliver to Tenant a report for the previous fiscal year (the “Operating Cost Report”) by May 15 of each year, or as soon as reasonably possible thereafter, setting forth
(a) the actual Operating Costs incurred, (b) the Base Operating Costs, (c) the amount of Operating Cost Share Rent due from Tenant, and (d) the amount of Operating Cost Share Rent paid by Tenant. Within thirty (30) days after such delivery, Tenant
shall pay to Landlord the amount due
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minus the amount paid. If the amount paid exceeds the amount due, Landlord shall apply the excess to Tenant’s payments of Operating Cost Share Rent next coming due and, if such excess has
not been fully applied within six (6) months, then against other Rent, next becoming due. Notwithstanding the foregoing, all sums owed by Landlord to Tenant pursuant to the preceding sentence shall be fully applied or paid prior to the end of the
calendar year in which such overpayment occurs. If this Lease has been terminated prior to such determination, such excess will be promptly paid to Tenant.
(3) Correction of Electrical Cost Share Rent. Landlord shall deliver to Tenant a report for the previous fiscal
year (the “Electrical Cost Report”) by May 15 of each year, or as soon as reasonably possible thereafter, setting forth (a) the actual Electrical Costs, (b) the amount of Electrical Cost Share Rent due from Tenant, and (c)
the amount of Electrical Cost Share Rent paid by Tenant. Within thirty (30) days after such delivery, Tenant shall pay to Landlord the amount due from Tenant minus the amount paid by Tenant. If the amount paid exceeds the amount due, Landlord shall
apply any excess as a credit against Tenant’s payments of Electrical Cost Share Rent next coming due and, if such excess has not been fully applied within six (6) months, then against other Rent next coming due. Notwithstanding the foregoing,
all sums owed by Landlord to Tenant pursuant to the preceding sentence shall be fully applied or paid prior to the end of the calendar year in which such overpayment occurs. If this Lease has been terminated prior to such determination, such excess
will be promptly paid to Tenant.
C. Definitions.
(1) Included Operating Costs. “Operating Costs” means any
expenses, costs and disbursements of any kind other than Electrical Costs, paid or incurred by Landlord in connection with the management, maintenance, operation, insurance, repair and other related activities in connection with any part of the
Project and of the personal property, fixtures, machinery, equipment, systems and apparatus used in connection therewith, including the cost of providing those services required to be furnished by Landlord under this Lease and Taxes (as defined
below). Operating Costs shall also include an annual capital reserve equal to the product of $0.15 times the Rentable Square Feet of the Premises (the “Capital Reserve Amount”).
If the Project is not fully occupied during any portion of any fiscal year, Landlord may adjust in a manner equitable to
Tenant and the other tenants in the Project (an “Equitable Adjustment”) Operating Costs to equal what would have been incurred by Landlord had the Project been fully occupied. This Equitable Adjustment shall apply only to
Operating Costs which are variable and therefore increase as occupancy of the Project increases. Landlord may incorporate the Equitable Adjustment in its estimates of Operating Costs.
(2) Excluded Operating Costs. Operating Costs shall not include:
(a) costs of alterations of tenant premises;
(b) costs of capital improvements other than the Capital Reserve Amount;
(c) interest and principal payments on mortgages or any other debt costs, or rental payments on any ground lease of the Project;
(d) real estate brokers’ leasing commissions;
(e) legal fees, space planner fees and advertising expenses incurred with regard to leasing the Project or portions thereof;
(f) any cost or expenditure for which Landlord is reimbursed, by insurance proceeds or otherwise, except by Operating
Cost Share Rent;
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(g) the cost of any service furnished to any office
tenant of the Project which Landlord does not make available to Tenant;
(h) depreciation;
(i) franchise or income taxes imposed
upon Landlord, except to the extent imposed in lieu of all or any part of Taxes;
(j) costs of correcting defects in construction of the Project(as opposed to the cost of normal repair, maintenance and replacement expected with the construction materials and equipment installed in the Project in light
of their specifications);
(k) legal and auditing fees which are for the benefit of
Landlord such as collecting delinquent rents, preparing tax returns and other financial statements;
(l) the wages of any employee for services not related directly to the management, maintenance, operation and repair of the Project;
(m) fines, penalties and interest;
(n) any ground lease rental;
(o) depreciation, amortization and interest payments (except as provided herein and except on 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 GAAP, consistently
applied, and when depreciation or amortization is permitted or required, the item shall be amortized over its reasonably anticipated useful life;
(p) costs incurred by Landlord due to the violation by Landlord or any tenant of the terms and conditions of any lease of space in the Project;
(q) overhead and profit increment paid to Landlord or to subsidiaries or affiliates
of Landlord for goods and/or services in the Project to the extent same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis;
(r) any compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord or in the parking garage of the
Project and/or all fees paid to any parking facility operator (on or off site) (provided, however, if Landlord provides such parking free of charge to Tenant, these expenses may be included as Operating Costs);
(s) advertising and promotional expenditures;
(t) electric power costs for which any tenant directly contracts with the local public service company;
(u) tax penalties to the extent 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;
(v) costs arising from the presence of asbestos in or about the Project; and
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(w) costs arising from Landlord’s charitable or
political contributions.
(x) any expense associated with the initial construction or
maintenance of other portions of the Project, until such other portions of the Project are occupied by tenants paying rent and operating expenses to Landlord.
(3) Taxes. “Taxes” means any and all taxes, assessments and charges of any kind, general or
special (except as set forth below), ordinary or extraordinary, levied against the Project, which Landlord shall pay or become obligated to pay in connection with the ownership, leasing, renting, management, use, occupancy, control or operation of
the Project or of the personal property, fixtures, machinery, equipment, systems and apparatus used in connection therewith. Taxes shall include real estate taxes, personal property taxes, sewer rents, water rents, special or general assessments
(other than special assessments made by taxing authorities for roads, sewers or similar improvements related to a “business park”), transit taxes, ad valorem taxes, and any tax which may in the future be levied on the rents hereunder or on
the interest of Landlord under this Lease (the “Rent Tax”). Taxes shall also include all reasonable fees and other reasonable costs and expenses paid by Landlord in reviewing any tax and in seeking a refund or reduction of
any Taxes, whether or not the Landlord is ultimately successful. Landlord agrees to use all commercially reasonable efforts to insure that Taxes do not exceed the amount per rentable square foot of comparable buildings within The Commons of Las
Colinas area. If Landlord elects not to protest Taxes, Tenant may deliver written notice to Landlord requesting that Landlord protest Taxes. If Landlord fails to file such protest within thirty (30) days following Landlord’s receipt of
Tenant’s notice then Tenant may, at Tenant’s cost, file such protest on Landlord’s behalf and with Landlord’s cooperation, but such cooperation will not obligate Landlord to incur any tax protest costs. If Tenant files such
protest and Taxes are increased from that proposed prior to such protest, Tenant must promptly pay to Landlord an amount equal to the increased Taxes for the current and all future years, all as calculated in a manner reasonably acceptable to
Landlord.
For any year, the amount to be included in Taxes (a) from taxes or assessments payable
in installments, shall be the amount of the installments (with any interest) due and payable during such year, and (b) from all other Taxes, shall at Landlord’s election be the amount accrued, assessed, or otherwise imposed for such year or the
amount due and payable in such year. Any refund or other adjustment to any Taxes by the taxing authority, shall apply during the year in which the adjustment is made.
Taxes shall exclude any net income (except Rent Tax), capital, stock, succession, transfer, franchise, gift, estate or inheritance tax, except to the extent
that such tax shall be imposed in lieu of any portion of Taxes. Taxes shall also exclude any governmental or business park special assessments (such as for roads and sewers).
(4) Lease Year. “Lease Year” means each consecutive twelve-month period beginning with the
Commencement Date, except that if the Commencement Date is not the first day of a calendar month, then the first Lease Year shall be the period from the Commencement Date through the final day of the twelve months after the first day of the
following month, and each subsequent Lease Year shall be the twelve months following the prior Lease Year.
(5) Fiscal Year. “Fiscal Year” means the calendar year, except that the first fiscal year and the last fiscal year of the Term may be a partial calendar year.
D. Computation of Base Rent and Rent Adjustments.
(1) Prorations. If this Lease begins on a day other than the first day of a
month, the Base Rent, Operating Cost Share Rent, Electrical Cost Share Rent, shall be prorated for such partial month based on the actual number of days in such month. If this Lease begins on a day other than the first day, or ends on a day other
than the last day, of
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the fiscal year, Operating Cost Share Rent and Electrical Cost Share Rent, shall be prorated for the applicable fiscal year.
(2) Default Interest. Any sum due from Tenant to Landlord not paid when due shall bear interest from the date due
until paid at the lesser of the maximum rate permitted by applicable law or the then Prime Rate (as hereinafter defined) plus five percent (5%) per annum.
(3) Rent Adjustments. The square footage of the Premises and the Building set forth in the Commencement Date
Confirmation, when executed will be conclusively deemed to be the actual square footage thereof, without regard to any subsequent remeasurement of the Premises or the Building. If any Operating Cost paid in one fiscal year relates to more than one
fiscal year, Landlord may proportionately allocate such Operating Cost among the related fiscal years.
(4) Books and Records. Landlord shall maintain books and records reflecting the Operating Costs, Taxes and Electrical Cost in accordance with sound accounting and management practices. Tenant and
its certified public accountant shall have the right to inspect Landlord’s records at Landlord’s office upon at least seventy-two (72) hours’ prior notice during normal business hours during (a) the eighteen (18) months following the
respective delivery of the Operating Cost Report or the Electrical Cost Report relating to the first two (2) Lease Years or (b) six (6) months following the respective delivery of the Operating Cost Report or the Electrical Cost Report relating to
subsequent Lease Years. Tenant’s facilities management consultant may join Tenant’s certified public accountant in Tenant’s inspection of Landlord’s records. The results of any such inspection shall be kept strictly confidential
by Tenant and its agents, and Tenant and its certified public accountant must agree, in their contract for such services, to such confidentiality restrictions and shall specifically agree that the results shall not be made available to any other
tenant of the Building. Unless Tenant sends to Landlord any written exception to either such report within the said eighteen (18) months or six (6) months period (as the case may be), such report shall be deemed final and accepted by Tenant. Tenant
shall pay the amount shown on both reports in the manner prescribed in this Lease, whether or not Tenant takes any such written exception, without any prejudice to such exception. If Tenant makes a timely exception, Landlord shall select and cause
an independent certified public accountant, reasonably acceptable to Tenant, with at least ten (10) years of experience in auditing the books and records of commercial office projects to issue a final and conclusive resolution of Tenant’s
exception. The cost of such certification shall be borne equally by Tenant and Landlord.
(5) Miscellaneous. So long as Tenant is in default of any monetary obligation under this Lease after the expiration of any applicable cure period, Tenant shall not be entitled to any refund of
any amount from Landlord but when such default is cured Tenant will receive such refund. If this Lease is terminated for any reason prior to the annual determination of Operating Cost Share Rent or Electrical Cost Rent, either party shall pay the
full amount due to the other within thirty (30) days after Landlord’s notice to Tenant of the amount when it is determined. Landlord may commingle any payments made with respect to Operating Cost Share Rent or Electrical Cost Rent, without
payment of interest.
3. PREPARATION AND CONDITION OF PREMISES; POSSESSION AND SURRENDER
OF PREMISES.
A. Condition of
Premises. Landlord shall, at Landlord’s expense, cause the Premises to be completed in a good and xxxxxxx-like manner in accordance with the terms and provisions of the Work Agreement attached as Appendix C.
B. Tenant’s Possession. Tenant’s taking
possession of any portion of the Premises shall be conclusive evidence that the Premises was in good order, repair and condition, except for punch list items, if any, identified by Tenant to Landlord by written notice delivered to Landlord
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no later than 30 days following substantial completion of the Initial Improvements and, for a period of two (2) years following the Commencement Date or the period any applicable warranty is in
effect, whichever is later, any latent defects in the Premises. If Landlord authorizes Tenant to take possession of any part of the Premises prior to the Commencement Date for purposes of doing business, all terms of this Lease shall apply to such
pre-Term possession, including Base Rent at the rate set forth for the First Lease Year in the Schedule prorated for any partial month.
C. Maintenance. Throughout the Term, Tenant shall maintain the Premises in their condition as of the Completion Date, loss or damage caused by the elements,
ordinary wear, and fire and other casualty excepted, and at the termination of this Lease, or Tenant’s right to possession, Tenant shall return the Premises to Landlord in broom-clean condition. To the extent Tenant fails to perform either
obligation, Landlord may, but need not, restore the Premises to such condition and Tenant shall pay the cost thereof.
D. Landlord Certification. Landlord hereby certifies to Tenant that as of the Commencement Date the Base Building Work will have been designed and built to (1) comply with then
applicable Governmental Requirements and then current customary interpretations of any applicable disability access laws (assuming customary office use and not any particular use of Tenant). Landlord shall be responsible for any corrective work
arising from the Texas statutory requirement to have an inspection of the Premises and Building one (1) year after completion of construction, pursuant to Texas Civil Statutes, Article 9102 et. seq., with respect to the Base Building Work and the
Leasehold Work resulting from Landlord’s failure to perform same pursuant to the plans and specifications for the Leasehold Work. Tenant shall be responsible for preparing the plans and specifications for the Leasehold Work in compliance with
applicable Governmental Requirements. In the event the Leasehold Work does not comply with applicable Governmental Requirements as a result of such plans and specifications not being in such compliance, then Tenant shall bear the cost of any such
corrective work. If during the Term of this Lease, any change in Governmental Requirements requires retrofit work in the Premises to maintain compliance, Tenant shall bear the cost of such work.
Landlord hereby further certifies to Tenant that the Premises will be free of any latent defects for a period of two (2) years following the Commencement Date or the
period any applicable warranty is in effect, whichever is later.
4. PROJECT
SERVICES.
Landlord shall, at Landlord’s cost and expense (subject to Paragraph 2 hereof),
furnish services as follows:
A. Heating and Air
Conditioning. During the normal business hours of 8:00 a.m. to 6:00 p.m., Monday through Friday, and 8:00 a.m. to 1:00 p.m. on Saturday, Landlord shall furnish (i) air conditioning (by way of the primary heating,
ventilating and air conditioning systems of the Building) within the limits and ranges set forth on the Plans and the work letter, and (ii) heat within the limits and ranges set forth on the Plans and the work letter. Landlord’s obligations
hereunder shall be diminished to the extent that Tenant adversely affects the temperature maintained by the heating and air conditioning system by operating its equipment and to the extent that Landlord’s efforts to fulfill its obligations are
hindered by the failure or inadequacy of the secondary heating, ventilating and air conditioning systems for which Tenant hereby assumes, at Tenant’s sole cost, the maintenance obligations therefor. If Tenant installs such equipment, Landlord
may install supplementary air conditioning units in the Premises, and Tenant shall pay to Landlord upon demand as Additional Rent the cost of installation, operation and maintenance thereof.
Landlord shall furnish heating and air conditioning after business hours if Tenant provides Landlord reasonable prior notice, and pays Landlord all then
current charges for such additional heating or air conditioning. Such charges shall be calculated based on the additional depreciation cost related to operating the heating and air conditioning systems beyond the standard hours required to be
operated under this Section 4.A.
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B. Elevators. Landlord
shall provide passenger elevator service to Tenant. Landlord shall, at no cost to Tenant, provide freight access at such times as Tenant shall reasonably require, and subject to such restrictions, as Landlord may reasonably require.
C. Electricity. Landlord shall provide sufficient electricity to
accommodate Tenant ‘s requirements for the Premises as indicated by the Leasehold Engineers pursuant to Paragraph 2 of the Work Agreement. The Building has been designed with the electrical capacity set forth in the Plans, which shall provide
up to 8 xxxxx per rentable square foot of demand load at the electrical panel in each floor of the Premises (exclusive of power required for heating, air conditioning and lighting). Tenant shall not install or operate in the Premises any
electrically operated equipment or other machinery which would exceed the electrical capacity provided in the Base Building Work without obtaining the prior written consent of Landlord. Tenant shall pay the Electrical Cost Share Rent set forth in
Section 2A(3) above.
Tenant shall have the right, at Tenant’s expense, at any time during
the term of this Lease to contract directly with the local electric utility company or to install emergency power equipment. Tenant shall be responsible for the repair of any damage to the Premises caused by the installation or maintenance of such
equipment. The cost of furnishing electricity to the Building, to the extent not represented by Tenant’s directly contracting with such local utility company, shall be included within the Electrical Costs as defined in Section 2 above.
D. Water. Landlord shall furnish hot and cold tap water
for drinking and toilet purposes. Tenant shall pay Landlord for water furnished for any other purpose as Additional Rent at rates fixed by Landlord. Tenant shall not permit water to be wasted.
E. Janitorial Service. Landlord shall furnish janitorial service in accordance with the standards set forth on
Appendix H. In the event Tenant determines that such janitorial service is unsatisfactory, in Tenant’s reasonable judgment, Tenant shall deliver written notice to Landlord specifying in detail the manner in which such service is deemed
deficient. If the deficiencies are not, in Tenant’s reasonable judgment, substantially corrected during the next succeeding sixty (60) days, then Tenant may deliver a further notice directing Landlord to terminate the contract for the
applicable contractor providing such service to the Premises, subject to and in accordance with the termination provisions of such contract. Landlord shall cause such janitorial service contract that Tenant has the right to cause the termination of
pursuant hereto to be terminable on not more than sixty (60) days prior notice. If Tenant delivers such notice of termination, Landlord shall terminate such contract. Promptly thereafter, Landlord shall enter into a new contract for the janitorial
service with a contractor mutually agreeable to Landlord and Tenant.
The foregoing,
notwithstanding Tenant shall have the right, upon no less than ninety (90) days prior written notice to Landlord, to elect not to receive the janitorial services provided by Landlord and to provide such services itself with respect to the Premises.
If Tenant elects to provide such cleaning services to the Premises (i) such change shall be implemented upon expiration of Landlord’s then current cleaning contract for the Premises, such cleaning contract to have a term not in excess of one
(1) year, (ii) Tenant shall comply with reasonable procedures established by Landlord with respect to Tenant’s cleaning activities, including security procedures, (iii) Tenant shall perform such cleaning services with personnel employed by
Tenant or its affiliates, and not an unrelated third party contractor, and (iv) the costs of the nighttime cleaning contract shall no longer be an Operating Cost, such adjustment to be applied from and after the date on which Tenant assumes such
responsibility for cleaning the Premises (such adjustment to be pro-rated for the year in which Tenant assumes such responsibility).
F. Security Service. Tenant shall provide security service for the Building in a manner and to the extent deemed appropriate by Tenant.
G. Parking. Landlord shall grant and provide certain parking rights to Tenant as
described below:
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The construction documents for the Building contemplate a total
of approximately 869 parking spaces, with 380 surface spaces and 489 spaces located in the parking structure. Tenant shall have the right to use such spaces subject to the reservation of 105 spaces for the tenant(s) of Building II upon its
completion. The parking spaces allocated to Building I will be 304 surface spaces and 484 spaces located in the parking structure. Tenant acknowledges that the entrances for both the parking structure and the surface parking shall serve both the
Building and Building II upon completion of the latter.
H. Access. Tenant shall have access to the Premises at all times during the Term of this Lease.
I. Interruption of Services. If any of the Building equipment or machinery (other than such Building equipment or
machinery for which Tenant has assumed the responsibility to maintain) ceases to function properly for any cause Landlord shall use reasonable diligence to repair the same promptly. Landlord’s inability to furnish, to any extent, the Project
services set forth in this Section 4, or any cessation thereof resulting from any causes, including any entry for repairs pursuant to this Lease, and any renovation, redecoration or rehabilitation of any area of the Building shall not render
Landlord liable for damages, except for Landlord’s gross negligence or willful misconduct, to either person or property or for interruption or loss to Tenant’s business, nor be construed as an eviction of Tenant, nor work an abatement of
any portion of rent, nor relieve Tenant from fulfillment of any covenant or agreement hereof. However, in the event that an interruption of the Project services set forth in this Section 4 (other than those services which Tenant has assumed the
responsibility to maintain) causes the Premises to be untenantable for a period of at least ten (10) consecutive days (or, as to air conditioning service during the months of June to August, five (5) consecutive days), monthly Rent shall be
thereafter abated proportionately. Landlord shall use reasonable efforts to minimize any interference with Tenant’s business operations in performing any repairs, renovations, redecoration or rehabilitation pursuant to this Lease.
J. Contractors. Tenant shall have the right at any time and from time
to time to request that Landlord use certain contractors to furnish and perform the following services: janitorial, exterior landscaping, pest control, elevator maintenance, waste disposal, fire protection, security and window cleaning. Landlord
shall use the contractors requested by Tenant unless the cost thereof is materially higher than that charged by competitors or the quality of the services performed is materially inferior, in the good faith judgment of Landlord. Landlord will
cooperate with Tenant to provide acceptable levels of such services for which Landlord is responsible to provide hereunder.
5. ALTERATIONS AND REPAIRS.
A.
Landlord’s Consent and Conditions.
Tenant shall not make any improvements or
alterations to the Premises (the “Work”) without in each instance submitting plans and specifications for the Work to Landlord and obtaining Landlord’s prior written consent (such consent not to be unreasonably withheld) unless
(a) the cost thereof is less than $25,000, (b) such Work does not impact the base structural components or, in Landlord’s reasonable opinion, adversely affects the mechanical, electrical or plumbing systems of the Building, (c) such Work will
not materially adversely impact any other tenant’s premises, and (d) such Work does not involve changes to the exterior appearance of the Premises. Tenant shall, except as to the Initial Improvements, pay Landlord’s reasonable
out-of-pocket costs incurred for review of the plans and all other items submitted by Tenant. Landlord will be deemed to be acting reasonably in withholding its consent for any Work which (a) materially impacts the base structural components or, in
Landlord’s reasonable opinion, adversely affects systems of the Building, (b) materially adversely impacts any other tenant’s premises, or (c) involves material changes to the exterior appearance of the Premises. The Work does not include
merely decorative alterations such as painting, carpeting, floor covering, furniture movement, cabling and computer and telephone installation to the extent same do not impact base structural systems or, in Landlord’s reasonable opinion,
adversely affect the systems of the Building.
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Tenant, shall except as to the Initial Improvements, reimburse
Landlord for reasonable out-of-pocket costs incurred for review of the plans and all other items submitted by Tenant. Tenant shall pay for the cost of all Work. All Work shall become the property of Landlord upon its installation, except for
Tenant’s Trade Fixtures and for items which Landlord requires Tenant to remove at Tenant’s cost at the termination of the Lease pursuant to Section 3E. As used herein, “Trade Fixtures” shall mean any equipment or
furnishings customarily considered in a technology—based business office or in the telecommunications industry generally to be the property of the tenant, including in particular any built-in computer equipment, video conferencing facilities,
audiovisual facilities, any other built-in communications equipment, and antenna or satellite equipment installed on the roof or elsewhere, and any special climate control equipment installed to protect file servers (except to the extent removal of
same would adversely affect the Building systems) or other telecommunications equipment, but excluding any millwork or hardware not heretofore specified.
The following requirements shall apply to all Work:
(1) Prior to commencement, Tenant shall furnish to Landlord building permits, and certificates of insurance reasonably satisfactory to Landlord.
(2) Tenant shall perform all Work so as to maintain cooperation among other contractors serving the Project and
shall take all reasonable measures so as to avoid interference with other work to be performed or services to be rendered in the Project.
(3) The Work shall be performed in a good and workmanlike manner, meeting the standard for construction and quality of materials in the Building, and shall comply with all insurance
requirements and all applicable governmental laws, ordinances and regulations (“Governmental Requirements”).
(4) Tenant shall perform all Work so as to minimize or prevent disruption to other tenants, and Tenant shall comply with all reasonable requests of Landlord in response to complaints from
other tenants.
(5) Tenant shall perform all Work in compliance with Landlord’s
“Policies, Rules and Procedures for Construction Projects” in effect at the time the Work is performed (a copy of which is attached hereto as Appendix J and made a part hereof).
(6) Tenant shall permit Landlord to supervise all Work. Landlord may charge a supervisory fee not to exceed five percent (5%) of labor,
material, and all other costs of the Work, if Landlord’s employees or contractors perform the Work. The foregoing does not apply to Work which does not require Landlord’s prior consent nor to the Initial Improvements.
(7) Upon completion, Tenant shall furnish Landlord with contractor’s affidavits and full and
final statutory waivers of liens, as-built plans and specifications, and receipted bills covering all labor and materials, and all other close-out documentation required in Landlord’s “Policies, Rules and Procedures for Construction
Projects”.
B. Damage to Systems. If any part of
the mechanical, electrical or other systems in the Premises shall be damaged, Tenant shall promptly notify Landlord, and Landlord shall repair such damage. Landlord may also at any reasonable time make any repairs or alterations which Landlord deems
necessary for the safety or protection of the Project, or which Landlord is required to make by any court or pursuant to any Governmental Requirement and, if Landlord fails to do so, Tenant may pursue its self-help and offset rights under Section 22
below. Tenant shall at its expense make all other repairs necessary to keep the Premises, and Tenant’s fixtures and personal property, in good order, condition and repair; to the extent Tenant fails to do so (after expiration of all applicable
notice and cure periods), Landlord may make such repairs itself. The cost of any repairs made by Landlord on account of Tenant’s default, or on account of the
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mis-use or neglect by Tenant or its invitees, contractors or agents anywhere in the Project, shall become Additional Rent payable by Tenant on demand.
C. No Liens. Tenant has no authority to cause or permit any lien or
encumbrance of any kind to affect Landlord’s interest in the Project; any such lien or encumbrance shall attach to Tenant’s interest only. If any mechanic’s lien shall be filed or claim of lien made for work or materials furnished to
Tenant, then Tenant shall at its expense within thirty (30) days thereafter either discharge or contest the lien or claim. If Tenant contests the lien or claim, then Tenant shall (i) within such thirty (30) day period, provide Landlord adequate
security for the lien or claim, (ii) contest the lien or claim using reasonable efforts by appropriate proceedings that operate to stay its enforcement, and (iii) pay promptly any final adverse judgment entered in any such proceeding. If Tenant does
not comply with these requirements (after expiration of all applicable notice and cure periods), Landlord may discharge the lien or claim, and the amount paid, as well as reasonable attorney’s fees and other expenses incurred by Landlord, shall
become Additional Rent payable by Tenant on demand.
D. Ownership of
Improvements. All Work as defined in this Section 5, partitions, hardware, equipment, machinery and all other improvements and all fixtures except Trade Fixtures, constructed in the Premises by either Landlord or Tenant,
(i) shall, except as set forth in Section 5E below, become Landlord’s property upon installation without compensation to Tenant, unless Landlord consents otherwise in writing, and (ii) shall, except as set forth in Subsection 5E below, be
surrendered to Landlord with the Premises at the termination of the Lease or of Tenant’s right to possession.
E. Removal at Termination. Upon the termination of this Lease or Tenant’s right of possession Tenant shall remove (and repair any damage caused by such removal) from the Project,
its Trade Fixtures, telecommunications and computer equipment, furniture, moveable equipment and other personal property, together with any other non-standard office installations designated by Landlord at the time of Tenant’s installation
(e.g., stairwells, safes, etc.). Any standard office installations (i.e., walls, attached bookcases, attached credenzas, built-in reception desks, etc.) attached to the Premises must remain in the Premises. Tenant shall not be required to remove any
cabling or wiring located within the risers and raceways used for such telecommunications and computer equipment. If Tenant does not timely remove such property, then Tenant shall be conclusively presumed to have, at Landlord’s election (i)
conveyed such property to Landlord without compensation or (ii) abandoned such property, and Landlord may dispose of or store any part thereof in any manner at Tenant’s sole cost, without waiving Landlord’s right to claim from Tenant all
expenses arising out of Tenant’s failure to remove the property, and without liability to Tenant or any other person. Landlord shall have no duty to be a bailee of any such personal property. If Landlord elects abandonment, Tenant shall pay to
Landlord, upon demand, any expenses incurred for disposition.
F. Rooftop
Communications Systems. Tenant may at its sole cost install, maintain, and from time to time replace a communications systems (a “RCS”) on the roof of the Building, provided that Tenant shall obtain
Landlord’s, and (to the extent required by applicable restrictive covenants affecting the Building) The Las Colinas Association’s, prior reasonable approval of the proposed size, weight and location of the RCS and method for installing the
RCS on the roof, and that Tenant will at its sole cost comply with all Governmental Requirements and the conditions of any bond or warranty maintained by Landlord on the roof. Landlord may supervise any roof penetration. Tenant shall repair any
damage to the Building caused by Tenant’s installation, maintenance, replacement, use or removal of the RCS. The RCS shall remain the property of Tenant, and Tenant may remove the RCS at its cost at any time during the Term. Tenant shall remove
the RCS at its cost upon expiration or termination of the Lease. Tenant shall protect, defend, indemnify and hold harmless Landlord from and against claims, damages, liabilities, costs and expenses of every kind and nature, including attorneys’
fees, incurred by or asserted against Landlord arising out of Tenant’s installation, maintenance, replacement, use or removal of the RCS. Tenant shall have the right to install and maintain other equipment on the roof of the Building, subject
to Landlord’s aesthetic and structural guidelines.
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G. Conduits. Except as
set forth herein, Tenant has the right to use existing or construct, at Tenant’s cost, new conduits into and through the Building and the right, at its cost, to install cables, equipment and other related telecommunications facilities required
for Tenant’s network into and through the Building, subject to Landlord’s approval, not to be unreasonably withheld. Landlord shall construct as part of the Base Building Work set forth in the Work Agreement an underground conduit
connecting the Building and Building III having dimensions specified by Tenant [provided, however, that Tenant shall reimburse Landlord for the cost of such conduit in excess of Thirty Thousand Dollars ($30,000.00)].
H. Additional Tenant Obligations. Notwithstanding anything in the Lease to the
contrary, Landlord shall not be responsible for providing any service that Tenant has undertaken, or subsequently undertakes, to furnish in lieu of Landlord and Tenant shall be responsible, at Tenant’s sole cost, for the maintenance of any
equipment and/or systems used to furnish such services. In particular, Tenant shall be responsible, at Tenant’s sole cost, for the maintenance and level of service of the emergency generator, the secondary heating, ventilating and air
conditioning distribution system, and the Building and parking garage security systems.
6. USE OF PREMISES. Tenant shall use the Premises only for general office purposes and any other office-related uses typical or ancillary to technology-based businesses,
as long as such uses are permitted by applicable zoning regulations. Tenant shall not allow any hazardous use of the Premises which will increase the cost of coverage of Landlord’s insurance on the Project. The Project is currently zoned to
permit office use and Landlord agrees not to change the zoning to prohibit such use. Tenant shall not allow any inflammable or explosive liquids or materials to be kept on the Premises (other than commonly used janitorial supplies and supplies
customarily used in the operation of business offices). Tenant shall not allow any use of the Premises which would cause the value or utility of any part of the Premises to diminish or would interfere with any other Tenant or with the operation of
the Project by Landlord. Tenant shall not permit any nuisance or waste upon the Premises, or allow any offensive noise or odor in or around the Premises.
7. GOVERNMENTAL REQUIREMENTS AND BUILDING RULES. Tenant shall comply with all Governmental Requirements applying to its use of the
Premises. Tenant shall also comply with all reasonable rules established for the Project from time to time by Landlord. The present rules and regulations are contained in Appendix B. Failure by another tenant to comply with the rules or failure by
Landlord to enforce them shall not relieve Tenant of its obligation to comply with the rules or make Landlord responsible to Tenant in any way. Landlord shall use reasonable efforts to apply the rules and regulations uniformly and in a
non-discriminatory manner with respect to Tenant and tenants in the Building under leases containing rules and regulations similar to this Lease. In the event of alterations and repairs performed by Tenant, Tenant shall comply with the provisions of
Section 5 of this Lease and such other rules as Landlord may reasonably require. In the event of any conflict, inconsistency or ambiguity between the terms of this Lease and the terms of Appendix B, the terms of this Lease shall govern and control.
Landlord shall construct and operate the Project in accordance with environmentally sound management principles,
including the principles of the International Chamber of Commerce Business Charter on Sustainable Development.
8. WAIVER OF CLAIMS; INDEMNIFICATION; INSURANCE.
A. Waiver of Claims. To the extent permitted by law, Tenant waives any claims it may have against Landlord or its officers, directors, employees or agents for business interruption or damage
to property sustained by Tenant as the result of any act or omission of Landlord to the extent covered by insurance or to the extent same could have been covered by insurance to the extent such party failed to maintain the insurance described below.
To the extent permitted by law, Landlord waives any claims it may have against Tenant or its
officers, directors, employees or agents for loss of rents (other than Rent) or damage to property sustained by Landlord as the result of any act or omission of Tenant to the extent
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covered by insurance or to the extent same could have been covered by insurance to the extent such party failed to maintain the insurance described below.
Landlord and Tenant mutually waive all rights of subrogation.
The terms and provisions of this Section 8A shall survive the termination of this Lease.
B. Indemnification. Tenant shall indemnify, defend and hold harmless Landlord and its officers, directors,
employees and agents against any claim by any third party for injury to any person or damage to or loss of any property occurring in the Project and arising from the use of the Premises or from any other act or omission or negligence of Tenant or
any of Tenant’s employees or agents. Tenant’s obligations under this section shall survive the termination of this Lease.
Landlord shall indemnify, defend and hold harmless Tenant and its officers, directors, employees and agents against any claim by any third party for damage to person or Premises or from any other act
or omission or negligence of Landlord or any of Landlord’s employees or agents. Landlord’s obligations under this section shall survive the termination of this Lease.
C. Tenant’s Insurance. Tenant shall maintain insurance as follows, with such other terms, coverages and
insurers, as Landlord shall reasonably require from time to time:
(1) Commercial
General Liability Insurance, with (a) Contractual Liability including the indemnification provisions contained in this Lease, (b) a severability of interest endorsement, (c) limits of not less than Two Million Dollars ($2,000,000) combined single
limit per occurrence and not less than Two Million Dollars ($2,000,000) in the aggregate for bodily injury, sickness or death, and property damage, and umbrella coverage of not less than Five Million Dollars ($5,000,000).
(2) Property Insurance against “All Risks” of physical loss covering the replacement cost of all
improvements, fixtures and personal property. Tenant waives all rights of subrogation, and Tenant’s property insurance shall include a waiver of subrogation in favor of Landlord.
(3) (Unless Tenant elects to self-insure this risk or otherwise comply with applicable law in this subject matter), Workers’ compensation or
similar insurance in form and amounts required by law, and Employer’s Liability with not less than the following limits:
Each Accident |
$500,000 | |
Disease—Policy Limit |
$500,000 | |
Disease—Each Employee |
$500,000 |
Such insurance shall contain a waiver of
subrogation provision in favor of Landlord and its agents and may be under a blanket policy as long as the Premises and Landlord are specifically listed therein in a manner reasonably acceptable to Landlord.
Landlord, and if any, Landlord’s building manager or agent and ground lessor shall be named as additional insureds as
respects to insurance required of the Tenant in Section 8C(1). The company or companies writing any insurance which Tenant is required to maintain under this Lease, as well as the form of such insurance, shall at all times be subject to
Landlord’s approval, and any such company shall be licensed to do business in the state in which the Building is located. Such insurance companies shall have a A.M. Best rating of A VI or better.
Tenant shall cause any contractor of Tenant performing work on the Premises to maintain insurance as follows, with such
other terms, coverages and insurers, as Landlord shall reasonably require from time to time:
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(1) Commercial General Liability Insurance, including
contractor’s liability coverage, contractual liability coverage, completed operations coverage, broad form property damage endorsement, and contractor’s protective liability coverage, to afford protection with limits, for each occurrence,
of not less than One Million Dollars ($1,000,000) with respect to personal injury, death or property damage.
(2) Workers’ compensation or similar insurance in form and amounts required by law, and Employer’s Liability with not less than the following limits:
Each Accident |
$500,000 | |
Disease—Policy Limit |
$500,000 | |
Disease—Each Employee |
$500,000 |
Such insurance shall contain a waiver of
subrogation provision in favor of Landlord and its agents.
Tenant’s contractor’s
insurance shall be primary and not contributory to that carried by Tenant, Landlord, their agents or mortgagees. Tenant and Landlord, and if any, Landlord’s building manager or agent, mortgagee or ground lessor shall be named as additional
insured on Tenant’s contractor’s insurance policies.
D. Insurance
Certificates. Tenant shall deliver to Landlord certificates evidencing all required insurance no later than five (5) days prior to the Commencement Date and each renewal date. Each certificate will provide for thirty (30)
days prior written notice of cancellation to Landlord and Tenant.
E. Landlord’s Insurance. Landlord shall maintain “All-Risk” property insurance at replacement cost, including loss of rents, on the Building, and Commercial General Liability
insurance policies covering the common areas of the Building, each with such terms, coverages and conditions as are normally carried by reasonably prudent owners of properties similar to the Project. With respect to property insurance, Landlord and
Tenant mutually waive all rights of subrogation, and the respective “All-Risk” coverage property insurance policies carried by Landlord and Tenant shall contain enforceable waiver of subrogation endorsements.
9. FIRE AND OTHER CASUALTY.
A. Termination. If a fire or other casualty causes substantial damage to the Building or the Premises, Landlord
shall engage a registered architect qualified, competent and experienced in performing this function, to certify within one (1) month of the casualty to both Landlord and Tenant the amount of time needed to restore the Building and the Premises to
tenantability, using standard working methods. If the time needed exceeds twelve (12) months from the beginning of the restoration, or two (2) months therefrom if the restoration would begin during the last twelve (12) months of the Lease, then in
the case of the Premises, either Landlord or Tenant may terminate this Lease, and in the case of the Building, Landlord may terminate this Lease, by notice to the other party within ten (10) days after the notifying party’s receipt of the
architect’s certificate. The termination shall be effective thirty (30) days from the date of the notice and Rent shall be paid by Tenant to that date, with an abatement for any portion of the space which has been untenantable after the
casualty.
B. Restoration. If a casualty causes damage to
the Building or the Premises but this Lease is not terminated for any reason, then Landlord shall obtain the applicable insurance proceeds and diligently restore the Building and the Premises subject to current Governmental Requirements. Tenant
shall replace its damaged improvements, personal property and fixtures. Rent shall be abated on a per diem basis during the restoration for any portion of the Premises which is untenantable. Any subordination, non-disturbance and attornment
agreement subsequently entered into with Tenant shall require the application of insurance proceeds to restoration of the Premises and the Building.
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10. EMINENT
DOMAIN. If a part of the Project is taken by eminent domain or deed in lieu thereof which is so substantial that the Premises cannot reasonably be used by Tenant for the operation of its business, then either
party may terminate this Lease effective as of the date of the taking. If any substantial portion of the Project is taken without affecting the Premises, then Landlord may terminate this Lease as of the date of such taking. As used herein,
“substantial portion” shall mean a taking of more than forty percent (40%) of the Land or more than thirty percent (30%) of the rentable area of the remainder of the Project. Rent shall xxxxx from the date of the taking in proportion to
any part of the Premises taken. The entire award for a taking of any kind shall be paid to Landlord. Tenant may pursue a separate award for its trade fixtures and moving expenses in connection with the taking, but only if such recovery does not
reduce the award payable to Landlord. Notwithstanding the foregoing, if applicable law prohibits Tenant from pursuing such separate award, then Tenant may make a claim for its Trade Fixtures and moving expenses in conjunction with Landlord’s
claim so long as Landlord and Tenant can readily identify and separate their respective portions of the award granted under such combined claim. All obligations accrued to the date of the taking shall be performed by each party.
11. RIGHTS RESERVED TO LANDLORD.
Landlord may exercise at any time any of the following rights respecting the operation of the Project without liability to the Tenant of any kind:
A. Signs. To install and maintain any signs on the exterior and in the interior
of the Building, and to approve, at its sole discretion, prior to installation, any of Tenant’s signs in the Premises visible from the common areas or the exterior of the Building; provided, however, that as long as Tenant occupies the entire
Building, Landlord’s approval of signs in the Premises shall not be required, and further provided, that as long as Tenant occupies at least 100,000 square feet in the Building, Tenant will have the exclusive right to place its name and
corporate logo on the Building at a mutually agreeable location. Notwithstanding the foregoing, if Landlord commences construction of the Expansion Building and Landlord and Tenant have not entered into a lease agreement whereby Tenant will lease
all of the rentable square feet in the Expansion Building, Landlord shall have the right to require Tenant to alter its exterior signage to comply with Landlord’s then signage criteria for the Project. The Plans will include specifications for
the location and design of Tenant’s signage. Landlord agrees to diligently pursue, at Tenant’s cost, all reasonable avenues to obtain maximum signage rights from all applicable governmental authorities.
B. Window Treatments. To approve, at its discretion (except as otherwise set
forth in Paragraph 7), prior to installation, any shades, blinds, ventilators or window treatments of any kind, as well as any lighting within the Premises that may be visible from the exterior of the Building or any interior common area.
C. Keys. Subject to subparagraph D below, to retain and
use at any time passkeys to enter the Premises or any door within the Premises. Subject to subparagraph D below, Tenant shall not alter or add any lock or bolt.
D. Access. To have access to inspect the Premises (subject to 24 hours advance authorization except in cases of
emergency), and to perform its obligations, or make repairs, alterations, additions or improvements, as permitted by this Lease upon reasonable prior notice to Tenant, during normal business hours and with minimal interference with Tenant’s
business operations. A representative of Tenant may, at Tenant’s option, be present during any such access. If Tenant complies with all of the requirements set forth in this Section, Tenant may provide its own locks to an area or areas within
the Premises (the “Secured Areas”). At least ten (10) days prior to the creation of any Secured Area, Tenant shall notify Landlord of the exact location of such Secured Area and the name of the representative of Tenant to be
contacted and the manner of contact to avoid a forcible entry. Tenant need not furnish Landlord with keys to the Secured Areas. Upon the termination of this Lease, Tenant shall surrender all keys to Landlord. Landlord shall have no obligation to
provide janitorial service to the Secured Areas. If Landlord determines in its reasonable discretion that a suspected fire or flood or other emergency in the Building requires Landlord to gain access to any Secured Area, Landlord may
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forcibly enter. Landlord shall make a reasonable effort to contact Tenant to secure access, but Landlord shall not be obligated to contact Tenant.
E. Preparation for Reoccupancy. To decorate, remodel, repair, alter or otherwise
prepare the Premises for reoccupancy at any time following Tenant’s default (after the expiration of any applicable notice and cure period and Landlord’s exercise of its right to terminate this Lease or Tenant’s possession), without
relieving Tenant of any obligation to pay Rent.
F. Heavy
Articles. To approve the weight, size, placement and time and manner of movement within the Building of any safe, central filing system or other heavy article of Tenant’s property. Tenant shall move its property
entirely at its own risk. The Building has been designed with the floor load capacity referred to on the Plans.
G. Show Premises. To show the Premises to prospective purchasers, tenants (only during the last 6 months of the Term), brokers, lenders, investors, rating agencies or others at any
reasonable time, provided that Landlord gives prior notice to Tenant and does not unreasonably interfere with Tenant’s use of the Premises. Tenant may, at Tenant’s option, have a representative present during any such showing.
H. Relocation of Tenant. [Intentionally Deleted].
I. Use of Lockbox. To designate a lockbox collection
agent for collections of amounts due Landlord. The date of payment of Rent or other sums shall be the date Rent is deposited in such lockbox. However, if Tenant is in default and this Lease has been terminated Landlord may reject any payment for all
purposes as of the date of receipt or actual collection by mailing to Tenant within 21 days after such receipt or collection a check equal to the amount sent by Tenant.
J. Repairs and Alterations. To make repairs or alterations to the Project and in doing so transport any required
material through the Premises, to close entrances, doors, corridors, elevators and other facilities in the Project, to open any ceiling in the Premises, or to temporarily suspend services or use of common areas in the Building provided that any such
repairs do not unreasonably interfere with Tenant’s use of the Premises. Landlord may perform any such repairs or alterations during ordinary business hours, except that Tenant may require any Work in the Premises to be done after business
hours if Tenant pays Landlord for overtime and any other expenses incurred. Landlord may do or permit any work on any nearby building, land, street, alley or way. Landlord shall use reasonable efforts to minimize interference with Tenant’s
business operations in the course of performing such work.
K. Landlord’s
Agents. If Tenant is in default under this Lease, possession of Tenant’s funds or negotiation of Tenant’s negotiable instrument by any of Landlord’s agents shall not waive any breach by Tenant or any
remedies of Landlord under this Lease.
L. Building
Services. To install, use and maintain through the Premises, pipes, conduits, wires and ducts serving the Building, provided that such installation, use and maintenance does not unreasonably interfere with Tenant’s
use of the Premises.
M. Other Actions. To take any other
action which Landlord deems reasonable in connection with the operation, maintenance or preservation of the Building.
12. TENANT’S DEFAULT.
Any of the following shall
constitute a default by Tenant:
A. Rent Default. Tenant
fails to pay any Rent when due, and such failure continues for five (5) days following the date of Landlord’s written notice to Tenant;
B. Other Performance Default. Tenant fails to perform any other obligation to Landlord under this Lease, and such failure continues for thirty (30) days after
written notice
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from Landlord, except that if Tenant begins to cure its failure within the thirty (30) day period but cannot reasonably complete its cure within such period, then, so long as Tenant continues to
diligently attempt to cure its failure, the thirty (30) day period shall be extended to one hundred twenty (120) days, or such lesser period as is reasonably necessary to complete the cure;
C. Credit Default. One of the following credit defaults occurs:
(1) Tenant commences any proceeding under any law relating to bankruptcy, insolvency, reorganization or relief
of debts, or seeks appointment of a receiver, trustee, custodian or other similar official for the Tenant or for any substantial part of its property, or any such proceeding is commenced against Tenant and either remains undismissed for a period of
thirty days or results in the entry of an order for relief against Tenant which is not fully stayed within ninety (90) days after entry;
(2) Tenant becomes insolvent or bankrupt, does not generally pay its debts as they become due, or admits in writing its inability to pay its debts, or makes a general assignment for the
benefit of creditors;
(3) Any third party obtains a levy or attachment under process
of law against Tenant’s leasehold interest and Tenant fails to have same removed within ninety (90) days.
13. LANDLORD REMEDIES.
A. Termination of Lease or Possession. If Tenant defaults, Landlord may elect by notice to Tenant either to terminate this Lease or to terminate Tenant’s possession of the Premises
without terminating this Lease. In either case, Tenant shall immediately vacate the Premises and deliver possession to Landlord, and Landlord may repossess the Premises and may, at Tenant’s sole cost, remove any of Tenant’s signs and any
of its other property, without relinquishing its right to receive Rent or any other right against Tenant. If Landlord desires to terminate this Lease as to any non-monetary default, Landlord agrees that notice of termination as to any non-monetary
default will only be effective if Tenant fails to cure same within three (3) days following the date of Landlord’s notice.
B. Lease Termination Damages. If Landlord terminates the Lease, Tenant shall pay to Landlord all Rent due on or before the date of termination, plus the
aggregate Rent that would have been payable from the date of termination through the Termination Date, reduced by the rental value of the Premises calculated as of the date of termination for the same period, taking into account reletting expenses
and market concessions, both discounted to present value at the prime rate per annum then published as such in The Wall Street Journal or, if not in existence, such other newspaper having a national circulation (the “Prime
Rate”).
C. Possession Termination Damages. If
Landlord terminates Tenant’s right to possession without terminating the Lease and Landlord takes possession of the Premises itself, Landlord may relet any part of the Premises for such Rent, for such time, and upon such terms as Landlord in
its sole discretion shall determine, without any obligation to do so prior to renting other vacant areas in the Building. Any proceeds from reletting the Premises shall first be applied to the expenses of reletting, including redecoration, repair,
alteration, advertising, brokerage, legal, and other reasonably necessary expenses. If the reletting proceeds after payment of expenses are insufficient to pay the full amount of Rent under this Lease, Tenant shall pay such deficiency to Landlord
monthly upon demand as it becomes due. Any excess proceeds shall be retained by Landlord.
D. Intentionally Deleted.
E. Landlord’s Remedies
Cumulative. All of Landlord’s remedies under this Lease shall be in addition to all other remedies Landlord may have at law or in equity. Waiver by Landlord of any breach of any obligation by Tenant shall be effective
only if it is in writing, and shall not be deemed a waiver of any other breach, or any subsequent breach of the
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same obligation. Landlord’s acceptance of payment by Tenant shall not constitute a waiver of any breach by Tenant, and if the acceptance occurs after Landlord’s notice to Tenant, or
termination of the Lease or of Tenant’s right to possession, the acceptance shall not affect such notice or termination. Acceptance of payment by Landlord after commencement of a legal proceeding or final judgment shall not affect such
proceeding or judgment. Landlord may advance such monies and take such other actions for Tenant’s account as reasonably may be required to cure or mitigate any default by Tenant. Tenant shall immediately reimburse Landlord for any such advance,
and such sums shall bear interest at the default interest rate until paid.
F. WAIVER OF TRIAL BY JURY. EACH PARTY WAIVES TRIAL BY JURY IN THE EVENT OF ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH THIS LEASE. EACH PARTY SHALL BRING ANY
ACTION AGAINST THE OTHER IN CONNECTION WITH THIS LEASE IN A FEDERAL OR STATE COURT LOCATED IN DALLAS COUNTY, TEXAS, CONSENTS TO THE JURISDICTION OF SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING TRANSFERRED FROM SUCH COURTS ON THE GROUND
OF IMPROPER VENUE OR INCONVENIENT FORUM.
G. Litigation
Costs. Tenant shall pay Landlord’s reasonable attorneys’ fees and other costs in enforcing this Lease, whether or not suit is filed. In the event of any litigation concerning this Lease, the non-prevailing party
will reimburse the prevailing party’s reasonable attorneys’ fees, reasonable disbursements and court costs.
H. Reletting. Tenant acknowledges that Landlord has entered into this Lease in reliance upon, among other matters, Tenant’s agreement and continuing obligation to pay all Rent
due throughout the Term. As a result, Tenant hereby knowingly and voluntarily waives, after advice of competent counsel, any duty of Landlord (and any affirmative defense based upon such duty) following any default to relet the Premises or otherwise
mitigate Landlord’s damages arising from such default. If such waiver is not effective under then applicable law or Landlord otherwise elects, at Landlord’s sole option, to attempt to relet all or any part of the Premises, Tenant agrees
that Landlord has no obligation to: (i) relet the Premises prior to leasing any other space within the Building; (ii) relet the Premises (A) at a rental rate or otherwise on terms below market, as then determined by Landlord in its sole discretion;
(B) to any entity not satisfying Landlord’s then standard financial credit risk criteria; (C) for a use (1) not consistent with Tenant’s use prior to default; (2) which would violate then applicable law or any restrictive covenant or other
lease affecting the Building; (3) which would impose a greater burden upon the Building’s parking, HVAC or other facilities; and/or (4) which would involve any use of Hazardous Substances; (iii) divide the Premises, install new demising walls
or otherwise reconfigure the Premises to make same more marketable; (iv) pay any leasing or other commissions arising from such reletting, unless Tenant unconditionally delivers Landlord, in good and sufficient funds, the full amount thereof in
advance; (v) pay, and/or grant any allowance for, tenant finish or other costs associated with any new lease, even though same may be amortized over the applicable lease term, unless Tenant unconditionally delivers Landlord, in good and sufficient
funds, the full amount thereof in advance; and/or (vi) relet the Premises, if to do so, Landlord would be required to alter other portions of the Building, make ADA-type modifications or otherwise install or replace any sprinkler, security, safety,
HVAC or other Building operating systems. Tenant further acknowledges that if Tenant, notwithstanding Tenant’s waiver above, raises Landlord’s mitigation as an affirmative defense to a claim made by Landlord prior to any actual reentry of
the Premises by Landlord then, in such event, Tenant will be deemed to have automatically waived, and released and discharged Landlord from and against, any and all other claims and defenses to the payment of Rent.
14. SURRENDER. Upon termination of this Lease or Tenant’s right to
possession, Tenant shall return the Premises to Landlord in good order and condition, ordinary wear and casualty damage excepted. If Landlord requires Tenant to remove any alterations, then Tenant shall remove the alterations in a good and
workmanlike manner and restore the Premises to its condition prior to their installation. In the event that Tenant does not exercise its option to renew the Term of this Lease as set forth in Appendix F, then Tenant shall restore the first floor
lobby of the Premises to the original design thereof prepared by Landlord, if and to the extent Tenant
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has modified the lobby from such original design. Such restoration shall be made at Tenant’s cost and expense.
15. HOLDOVER. If Tenant retains possession of any part of the Premises after the Term, Tenant shall become a
month-to-month tenant for the entire Premises upon all of the terms of this Lease as might be applicable to such month-to-month tenancy, except that Tenant shall pay all of Base Rent, Operating Cost Share Rent and Tax Share Rent at one hundred
thirty-five percent (135%) of the rate in effect immediately prior to such holdover, computed on a monthly basis for each full or partial month Tenant remains in possession, as liquidated damages for Tenant’s holdover. No acceptance of Rent or
other payments by Landlord under these holdover provisions shall operate as a waiver of Landlord’s right to regain possession or any other of Landlord’s remedies.
16. SUBORDINATION TO GROUND LEASES AND MORTGAGES.
A. Subordination. This Lease shall be subordinate to any future ground lease or mortgage respecting the Project,
and any amendments to such ground lease or mortgage, at the election of the ground lessor or mortgagee as the case may be, effected by notice to Tenant in the manner provided in this Lease. The subordination shall be effective upon such notice, but
at the request of Landlord or ground lessor or mortgagee, Tenant shall within ten (10) days of the request, execute and deliver to the requesting party any reasonable documents provided to evidence the subordination. Any mortgagee has the right, at
its option, to subordinate its mortgage to the terms of this Lease, without notice to, nor the consent of, Tenant. There are no existing mortgages or ground leases affecting the Project. As a condition to Tenant’s agreement to subordinate
Tenant’s interest in this Lease to any future mortgage or ground lease, the mortgagee or ground lessor, as applicable, must deliver to Tenant a non-disturbance agreement reasonably acceptable to Tenant, providing that so long as Tenant is not
in default under this Lease after the expiration of any applicable notice and cure periods, Tenant may remain in possession of the Premises under the terms of this Lease, even if the ground lessor should terminate the ground lease or if the
mortgagee or its successor should acquire Landlord’s title to the Project.
B. Termination of Ground Lease or Foreclosure of Mortgage. If any ground lease is terminated or mortgage foreclosed or deed in lieu of foreclosure given and the ground lessor, mortgagee, or
purchaser at a foreclosure sale shall thereby become the owner of the Project, Tenant shall attorn to such ground lessor or mortgagee or purchaser without any deduction or setoff by Tenant, and this Lease shall continue in effect as a direct lease
between Tenant and such ground lessor, mortgagee or purchaser. The ground lessor or mortgagee or purchaser shall be liable as Landlord only during the time such ground lessor or mortgagee or purchaser is the owner of the Project. At the request of
Landlord, ground lessor or mortgagee, Tenant shall execute and deliver within ten (10) days of the request any document furnished by the requesting party to evidence Tenant’s agreement to attorn.
C. Security Deposit. Any ground lessor or mortgagee shall be responsible for the
return of any security deposit by Tenant, if any, only to the extent the security deposit is received by such ground lessor or mortgagee.
D. Notice and Right to Cure. The Project is subject to any ground lease and mortgage identified with name and address of ground lessor or mortgagee in Appendix
D to this Lease (as the same may be amended from time to time by written notice to Tenant). Tenant agrees to send by registered or certified mail to any ground lessor or mortgagee identified either in such Appendix or in any later notice from
Landlord to Tenant a copy of any notice of default sent by Tenant to Landlord. If Landlord fails to cure such default within the required time period under this Lease, but ground lessor or mortgagee begins to cure within ten (10) days after such
period and proceeds diligently to complete such cure, then ground lessor or mortgagee shall have such additional time as is necessary to complete such cure, including any time necessary to obtain possession if possession is necessary to cure, and
Tenant shall not begin to enforce its remedies so long as the cure is being diligently pursued.
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E. Definitions. As used
in this Section 16, “mortgage” shall include “deed of trust” and/or “trust deed” and “mortgagee” shall include “beneficiary” and/or “trustee”, “mortgagee” shall include the
mortgagee of any ground lessee, and “ground lessor”, “mortgagee”, and “purchaser at a foreclosure sale” shall include, in each case, all of its successors and assigns, however remote.
17. ASSIGNMENT AND SUBLEASE.
A. In General. Tenant shall not, without the prior consent of Landlord in each case, (i) make or allow any
assignment or transfer, by operation of law or otherwise, of any part of Tenant’s interest in this Lease, (ii) grant or allow any lien or encumbrance, by operation of law or otherwise, upon any part of Tenant’s interest in this Lease,
(iii) sublet any part of the Premises, or (iv) permit anyone other than Tenant and its employees to occupy any part of the Premises. Tenant shall remain primarily liable for all of its obligations under this Lease, notwithstanding any assignment,
subletting or transfer under this Section 17 or otherwise. No consent granted by Landlord shall be deemed to be a consent to any subsequent assignment or transfer, lien or encumbrance, sublease or occupancy. Tenant shall pay all of Landlord’s
attorneys’ fees and other expenses incurred in connection with any consent requested by Tenant or in reviewing any proposed assignment or subletting. Any assignment or transfer, grant of lien or encumbrance, or sublease or occupancy without
Landlord’s prior written consent shall be void. Except in the case of an assignment permitted under Section 17F below, if Tenant shall assign this Lease or sublet the Premises in its entirety any rights of Tenant to renew this Lease, extend the
Term or to lease additional space in the Project shall be extinguished thereby and will not be transferred to the assignee or subtenant, all such rights being personal to the Tenant named herein.
B. Landlord’s Consent. Landlord will not unreasonably withhold or delay its consent to any proposed
assignment or subletting. It shall be reasonable for Landlord to withhold its consent to any assignment or sublease if (i) Tenant is in monetary default or material non-monetary default under this Lease after the expiration of all applicable cure
periods, (ii) the proposed assignee or sublessee is a tenant in the Project or an affiliate of such a tenant or a party that Landlord is then actively involved in negotiations as a prospective tenant in the Project, (iii) the financial
responsibility, nature of business, and character of the proposed assignee or subtenant are not all reasonably satisfactory to Landlord, (iv) in the reasonable judgment of Landlord the purpose for which the assignee or subtenant intends to use the
Premises (or a portion thereof) is not in keeping with Landlord’s standards for the Building or are in violation of the terms of this Lease or any other leases in the Project, or (v) the proposed assignee or subtenant is a government entity.
The foregoing shall not exclude any other reasonable basis for Landlord to withhold its consent.
C. Procedure. Tenant shall notify Landlord of any proposed assignment or sublease at least ten (10) business days prior to its proposed effective date. The notice shall include the name
and address of the proposed assignee or subtenant, its corporate affiliates in the case of a corporation and its partners in a case of a partnership, an execution copy of the proposed assignment or sublease, and sufficient information to permit
Landlord to determine the financial responsibility and character of the proposed assignee or subtenant. As a condition to any effective assignment of this Lease, the assignee shall execute and deliver in form reasonably satisfactory to Landlord at
least five (5) business days prior to the effective date of the assignment, an assumption of all of the obligations of Tenant under this Lease. As a condition to any effective sublease, subtenant shall execute and deliver in form reasonably
satisfactory to Landlord at least five (5) business days prior to the effective date of the sublease, an agreement to comply with all of Tenant’s obligations under this Lease, and at Landlord’s option, an agreement (except for the economic
obligations which subtenant will undertake directly to Tenant) to attorn to Landlord (and if Landlord requests such attornment, Landlord must recognize such subtenant) under the terms of the sublease in the event this Lease terminates before the
sublease expires.
D. Change of Management or
Ownership. Any direct or indirect change in 50% or more of the ownership interest in Tenant shall constitute an assignment of this Lease.
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E. Excess Payments. If
Tenant shall assign this Lease or sublet any part of the Premises, except under Clause F. below, for consideration in excess of the pro-rata portion of Rent applicable to the space subject to the assignment or sublet, less any actual out-of-pocket
costs incurred by Tenant, and payable to non-affiliated third parties, in connection therewith (i.e., brokerage commissions, tenant finish costs, legal fees, advertising costs, work allowances, free rent and marketing expenses, all of which must be
amortized over the applicable lease term), then Tenant shall pay to Landlord as Additional Rent seventy percent (70%) of any such excess immediately upon receipt.
F. Related Entity. If Landlord has not elected to terminate this Lease or Tenant’s right to possession in
accordance with Section 13 of this Lease following a default by Tenant, Tenant may assign this Lease to (i) an entity into which Tenant is merged or consolidated or to an entity to which substantially all of Tenant’s assets are transferred
through a public offering on a recognized exchange, or (ii) any entity controlling, controlled by or under common control with a Tenant, without first obtaining Landlord’s written consent, if Tenant notifies Landlord at least ten (10) business
days prior to the proposed transaction, providing information reasonably satisfactory to Landlord in order to determine the relationship with Tenant. Nokia, Inc. or, if applicable, its successor by merger, consolidation, public offering or
otherwise, will at all times remain primarily liable under this Lease, as amended from time to time, following any such transfer.
18. CONVEYANCE BY LANDLORD. If Landlord shall at any time transfer its interest in the Project or this Lease, Landlord shall be released of any obligations occurring after
such transfer (as long as Landlord’s successor assumes such liability), except the obligation to return to Tenant any security deposit not delivered to its transferee, and Tenant shall look solely to Landlord’s successors for performance
of such obligations. This Lease shall not be affected by any such transfer.
19. ESTOPPEL
CERTIFICATE. Each party shall, as soon as reasonably practical but in no event beyond twenty (20) days of receiving a request from the other party accompanied by the form of certificate requested together with
all proposed exhibits or schedules attached, execute, acknowledge in recordable form, and deliver to the other party or its designee a certificate stating, subject to a specific statement of any applicable exceptions, that the Lease as amended to
date is in full force and effect, that the Tenant is paying Rent and other charges on a current basis, and that to the best of the knowledge of the certifying party, the other party has committed no uncured defaults and has no offsets or claims. The
certifying party may also be required to state the date of commencement of payment of Rent, the Commencement Date, the Termination Date, the Base Rent, the current Operating Cost Share Rent, Tax Share Rent and Electrical Cost Share Rent estimates,
the status of any improvements required to be completed by Landlord, the amount of any security deposit, and such other matters as may be reasonably requested.
20. SECURITY DEPOSIT. [Intentionally Deleted.]
21. FORCE MAJEURE. Neither party shall be in default under this Lease to the extent such party is unable to perform any of its obligations
on account of any strike or labor problem, energy shortage, governmental pre-emption or prescription, national emergency, or any other cause of any kind beyond the reasonable control of such party (“Force Majeure”). This paragraph
does not, however, apply to any monetary obligations under this Lease, including Tenant’s obligation to pay Rent and insure the Premises or Landlord’s obligations under Section 8E of this Lease.
22. LANDLORD’S DEFAULT. If Landlord fails to perform its obligations
under this Lease and such failure continues for a period of thirty (30) days following the date of Tenant’s written notice to Landlord specifying such default (or such longer period as may be reasonably necessary to cure such default, as long
as Landlord continues to exercise reasonable efforts to cure same) then in such event Tenant may perform same. In such event Landlord will reimburse Tenant for all third party costs actually incurred by Tenant to cure such default and, if Landlord
fails to pay same within thirty (30) days following the date of Tenant’s notice
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specifying such costs and including copies of all relevant invoices therefor, then Tenant may offset same against Rent next becoming due thereafter, but in no event will the amount of any offset
in any month exceed ten percent (10%) of the amount otherwise due to Landlord for such month. In no event, however, will Tenant have any right to terminate this Lease for any default by Landlord. Tenant may act sooner in the event of an emergency
involving imminent risk of death, personal injury and property damage as long as Tenant has first taken reasonable measures to notify Landlord, and, once the emergency has come under control, permits Landlord to control any remaining corrective
measures.
23. NOTICES. All notices, consents,
approvals and similar communications to be given by one party to the other under this Lease, shall be given in writing, mailed or personally delivered or sent by legible facsimile (with answer back confirmation) as follows:
A. Landlord. To Landlord as follows:
CarrAmerica Realty, L.P.
c/o CarrAmerica
Realty Corporation
00000 Xxxxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attn: Xxxxxxx X. Xxxxxxxxxxxxxx
Facsimile: (000) 000-0000
with a copy to:
CarrAmerica Realty Corporation
0000 X Xxxxxx, X.X., Xxxxx 000
Xxxxxxxxxx, X.X. 00000
Attn: Lease Administration
Facsimile: (000) 000-0000
or to such
other person at such other address as Landlord may designate by notice to Tenant.
B. Tenant. To Tenant as follows:
Nokia Inc.
0000 Xxxxxxxxxx Xxxxx
Xxxxxx, Xxxxx 00000
Attn: Facility Manager
Facsimile: (000) 000-0000
with a copy to:
Nokia Inc.
0000 Xxxxxxxxxx Xxxxx
Xxxxxx, Xxxxx 00000
Attn: Chief Legal Officer
Facsimile: (000) 000-0000
or to such other person at such other address as Tenant may designate by notice to Landlord.
Mailed notices shall be sent by United States certified mail, or by a reputable national overnight courier
service, postage prepaid. Mailed notices shall be deemed to have been given on the date of first attempted delivery. Notices sent by facsimile shall be deemed given on the date of transmission with confirmed answer back.
24. QUIET POSSESSION. Tenant shall enjoy peaceful and quiet possession of
the Premises against any party claiming through Landlord.
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25. REAL ESTATE
BROKER. Each party represents to the other that such party has not dealt with any real estate broker with respect to this Lease except for any broker(s) listed in the Schedule, and no other broker is in any way
entitled to any broker’s fee or other payment in connection with this Lease. Landlord agrees to pay any commissions owed to the brokers identified in such Schedule pursuant to a separate written agreement with such brokers. Each party shall
indemnify and defend the other against any claims by any other broker or third party for any payment of any kind in connection with this Lease attributable to the acts of such party.
26. MISCELLANEOUS.
A. Successors and Assigns. Subject to the limits on Tenant’s assignment contained in Section 17, the provisions of this Lease shall be binding upon and
inure to the benefit of all successors and assigns of Landlord and Tenant.
B. Date
Payments Are Due. Except for Base Rent, estimated payments of Additional Rent and other payments to be made by Tenant under this Lease which are due upon demand, Tenant shall pay to Landlord any amount for which Landlord
renders a statement of account within thirty (30) days of Tenant’s receipt of Landlord’s statement.
C. Meaning of “Landlord”, “Re-Entry, “including” and “Affiliate”. The term “Landlord” means only the owner of the Project and the lessor’s
interest in this Lease from time to time. The words “re-entry” and “re-enter” are not restricted to their technical legal meaning. The words “including” and similar words shall mean “without limitation.” The
word “affiliate” shall mean a person or entity controlling, controlled by or under common control with the applicable entity. “Control” shall mean the power directly or indirectly, by contract or otherwise, to direct the
management and policies of the applicable entity.
D. Time of the
Essence. Time is of the essence of each provision of this Lease.
E. No Option. This document shall not be effective for any purpose until it has been executed and delivered by both parties; execution and delivery by one party shall not create any option or
other right in the other party.
F. Severability. The
unenforceability of any provision of this Lease shall not affect any other provision.
G. Governing Law. This Lease shall be governed in all respects by the laws of the state in which the Project is located, without regard to the principles of conflicts of laws.
H. Lease Modification. Tenant agrees to modify this Lease in any way
reasonably requested by a mortgagee which does not cause increased expense or obligation to Tenant or otherwise adversely affect Tenant’s interests under this Lease.
I. No Oral Modification. No modification of this Lease shall be effective unless it is a written modification
signed by both parties.
J. Landlord’s Right to
Cure. If Landlord breaches any of its obligations under this Lease, Tenant shall notify Landlord in writing and shall take no action respecting such breach so long as Landlord immediately begins to cure the breach and
diligently pursues such cure to its completion. Landlord may cure any default by Tenant; any expenses incurred shall become Additional Rent due from Tenant on demand by Landlord.
K. Captions. The captions used in this Lease shall have no effect on the construction of this Lease.
L. Authority. Landlord and Tenant each represents to the other that it
has full power and authority to execute and perform this Lease.
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M. Landlord’s Enforcement of
Remedies. Landlord may enforce any of its remedies under this Lease either in its own name or through an agent.
N. Entire Agreement. This Lease, together with all Appendices, constitutes the entire agreement between the parties. No representations or agreements of any
kind have been made by either party which are not contained in this Lease.
O. Landlord’s Title. Landlord’s title shall always be paramount to the interest of the Tenant, and nothing in this Lease shall empower Tenant to do anything which might in any way
impair Landlord’s title.
P. Light and Air
Rights. Landlord does not grant in this Lease any rights to light and air in connection with Project. Landlord reserves to itself, the Land, the Building below the improved floor of each floor of the Premises, the Building
above the ceiling of each floor of the Premises, the exterior of the Premises and the areas on the same floor outside the Premises, along with the areas within the Premises required for the installation and repair of utility lines and other items
required to serve other tenants of the Building.
Q. Singular and
Plural. Wherever appropriate in this Lease, a singular term shall be construed to mean the plural where necessary, and a plural term the singular. For example, if at any time two parties shall constitute Landlord or
Tenant, then the relevant term shall refer to both parties together.
R. Recording
by Tenant. Neither party shall record this Lease or any portion thereof in any public records. However, Tenant shall have the right to record a memorandum of this Lease in a form approved by Landlord in the appropriate
public records of Dallas County, Texas.
S. Exclusivity. Landlord does not grant to Tenant in this Lease any exclusive right except the right to occupy its Premises.
T. No Construction Against Drafting Party. The rule of construction that ambiguities are resolved against the
drafting party shall not apply to this Lease.
U. Survival. All obligations of Landlord and Tenant under this Lease which the terms of this Lease contemplate the performance of same following the termination hereof shall survive the
termination of this Lease.
V. Rent Not Based on
Income. No rent or other payment in respect of the Premises shall be based in any way upon net income or profits from the Premises. Tenant may not enter into or permit any sublease or license or other agreement in
connection with the Premises which provides for a rental or other payment based on net income or profit.
W. Building Manager and Service Providers. Landlord may perform any of its obligations under this Lease through its employees or third parties hired by the Landlord.
X. Late Charge and Interest on Late Payments. Without limiting the provisions of
Section 12A, if Tenant fails to pay any installment of Rent or other charge to be paid by Tenant pursuant to this Lease when same becomes due and payable, then Tenant shall pay a late charge equal to two percent (2%) of the amount due if not paid by
the due date, or, if not paid within five (5) business days following written notice, then five percent (5%) of the amount due. In addition, interest shall be paid by Tenant to Landlord on any late payments of Rent made after five (5) business days
from the date due at the rate provided in Section 2D(2) from the date due until paid. Such late charge and interest shall constitute additional Rent due and payable by Tenant to Landlord upon the date of payment of the delinquent payment referenced
above.
27. UNRELATED BUSINESS INCOME. If Landlord
is advised by its counsel at any time that any part of the payments by Tenant to Landlord under this Lease may be characterized as unrelated business income under the United States Internal Revenue Code and its regulations, then Tenant shall enter
into any amendment proposed by Landlord to avoid such
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income, so long as the amendment does not require Tenant to make more payments or accept fewer services from Landlord, than this Lease provides and is otherwise in form reasonably acceptable to
Tenant.
28. HAZARDOUS SUBSTANCES. Landlord
certifies to Tenant that, to Landlord’s current actual knowledge, there are no Hazardous Substances located at the Project, except as disclosed in that certain environmental report dated July 18, 1997 prepared by Mission GeoSciences, Inc. (a
copy of which has heretofore been delivered to Tenant) or Hazardous Substances customarily used in the operation of comparable office buildings (e.g., janitorial supplies). Landlord will remove or cause to be removed any Hazardous Substances which
are found on the Premises, the Project or the Land. Tenant shall not be responsible for the cost of such removal unless Tenant caused such Hazardous Substances to be present on the Premises, the Project or the Land, as the case may be. Landlord will
indemnify and hold Tenant harmless from and against any damages or expenses incurred by Tenant as a result of the presence of such Hazardous Substances not caused by Tenant. Landlord shall take all measures, consistent with those taken by the owners
of other office buildings similar and within proximity to the Project, to prohibit other tenants from disposing of Hazardous Substances. Tenant shall not cause or permit any Hazardous Substances to be brought upon, produced, stored, used, discharged
or disposed of in or near the Project unless Landlord has consented to such storage or use in its sole discretion. Tenant has no responsibility for any Hazardous Substances brought upon, produced, stored, used, discharged or disposed of in or near
the Project, except by Tenant or its employees, agents and affiliates. “Hazardous Substances” include those hazardous substances 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 other applicable federal, state or local law, and the regulations adopted under these laws. If any governmental
agency shall require testing for Hazardous Substances in the Premises or if any lender shall do so based upon verifiable evidence of Hazardous Substance contamination caused by Tenant, Tenant shall pay for such testing.
29. EXCULPATION. Landlord shall have no personal liability under this Lease;
its liability shall be limited to its interest in the Project and shall not extend to any other property or assets of the Landlord. In no event shall any officer, director, employee, agent, shareholder, partner, member or beneficiary of Landlord be
personally liable for any of Landlord’s obligations hereunder.
30. WAIVER OF
CONSUMER RIGHTS. EACH PARTY ACKNOWLEDGES THAT IT IS A “BUSINESS CONSUMER” FOR PURPOSES OF THE TEXAS DECEPTIVE TRADE PRACTICES ACT, BUT SHOULD SUCH DETERMINATION BE HELD OTHERWISE BY A FINAL JUDGMENT OF
A COURT OF COMPETENT JURISDICTION THE FOLLOWING SHALL APPLY: EACH PARTY WAIVES ALL OF ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES—CONSUMER PROTECTION ACT, SECTION 17.41 ET SEQ., BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL
RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF EACH PARTY’S OWN SELECTION, SUCH PARTY VOLUNTARILY CONSENTS TO THE FOREGOING WAIVER.
31. MUNICIPAL INCENTIVES. Landlord shall reasonably cooperate with Tenant in connection with any renegotiation or transfer of any tax or
other forms of concessions which have been granted to Tenant by the City of Irving, Texas. Tenant shall reimburse Landlord for any out-of-pocket costs and expenses incurred by Landlord in connection therewith, including Landlord’s reasonable
attorney’s fees.
32. SECURITY SYSTEMS. Subject
to Landlord’s reasonable approval of the plans and specifications therefor, Tenant shall install within the Building and parking garage a card key or similar system, card readers, camera surveillance, security desk, garage entrance gates and
related components and accessories. Landlord’s share of the cost of installing such systems shall not exceed Seventy-Five Thousand and No/100 Dollars ($75,000.00) (the “Security Allowance”). The portion of the cost in excess of
the Security Allowance, if any, shall be borne by Tenant.
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33. LANDSCAPE
PLAN. Landlord shall install and maintain landscaping around the Building pursuant to a landscape plan to be agreed upon by Landlord and Tenant, which shall have a Base Building Cost component of $275,000.
34. SIGNAGE. Landlord shall provide the
maximum amount of exterior signage on the Building and monument signage on Xxxxx Xxxxxxx 000, Xxxxx Xxxxxxx 000, Xxxxx Xxxx and Connection Drive permitted by applicable law. Tenant’s name shall be exclusively shown on all such signage except
for the signs at the Royal Lane entrance to The Commons of Las Colinas and the signs identifying Building II thereof. Landlord’s share of the cost of providing such signage shall not exceed Seventy Five Thousand and No/100 Dollars ($75,000.00)
(the “Sign Allowance”). The portion of the cost in excess of the Sign Allowance, if any, shall be borne by Tenant. In the event that Tenant fully leases all of the Buildings in the Project, Landlord shall negotiate in good faith
with Tenant with respect to the installation, location and content of a monument sign for the Project.
35. AMENITIES. Tenant shall also have the exclusive right to install amenities such as a cafeteria or delicatessen, a fitness facility, a sauna suite and conference
center as part of Tenant’s improvements. Landlord shall provide the standard base building components for such amenities (except for the sauna and conference room) stubbed to the kitchen and fitness facility areas of the Premises.
36. ADDRESS OF BUILDING. Landlord will use reasonable efforts to
cause the address of the Building to be designated as being on Connection Drive. Tenant shall reasonably cooperate with Landlord in such efforts. If Tenant exercises its expansion option as set forth in Appendix G hereto, Landlord shall also cause
the names of Building I and Building III to be changed to Nokia House 4 and Nokia House 2, respectively or a roman numbering system shall be used alternatively, at Tenant’s election.
37. LEASEHOLD TITLE POLICY. Tenant shall have the right to obtain, at Tenant’s cost, a policy of title
insurance insuring Tenant’s leasehold interest in the Premises. Landlord shall reasonably cooperate with Tenant in obtaining such policy, provided, however, that Landlord shall not be obligated to incur any expense in connection therewith.
38. CONFIDENTIALITY. Landlord and Tenant each agree
that prior to disclosing any information contained in this Lease or publicizing it in any way (except for disclosures to attorney’s, accountants, architects, brokers, consultants, construction lenders, investors and the like on a “need to
know” basis), it will secure the prior written consent of the other party (which consent will not be unreasonably withheld or delayed).
39. NO CONSEQUENTIAL DAMAGES. Neither party shall have the right to seek consequential damages against the other with respect to any breach
of such party’s obligations under this Lease.
40. NAME OF
PROJECT. Landlord agrees that during the Term of this Lease, Landlord shall not change the name of the Project to a name which includes the name of any of the following companies: Alcatel, Ericsson, Motorola,
Nextel, Nortel, Philips, Qualcomm, Samsung, Siemens, and Sony.
41. SEPARATE TAX
PARCELS. Landlord shall use reasonable efforts to cause the land and improvements associated with each of the three (3) buildings comprising the Project to be designated as separate tax parcels by the pertinent
taxing authorities.
42. MAINTENANCE OF
PROJECT. Landlord shall have no obligation to fund the entire Capital Reserve Amount by any date during the Term. However, Landlord agrees that the Project shall be operated and maintained in a first-class
manner and condition during the Term and shall expend portions of the Capital Reserve Amount from time to time during the Term in order to comply with such obligations.
43. GUARANTY.
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Upon execution of this Lease, Tenant agrees to furnish to Landlord a guaranty of
this Lease executed by Nokia Corporation, in the form, and containing the provisions, set forth on Appendix J, as security for Tenant’s obligations hereunder. In the event that Tenant is unable to furnish such guaranty upon execution of this
Lease, Tenant shall either (i) furnish a letter of credit in the form of Appendix K to that certain Lease Agreement between Landlord and Tenant covering Building III (Nokia House 2) (the “Original Lease”) or (ii) amend such letter of
credit issued for the Original Lease in a manner satisfactory to Landlord to additionally secure Tenant’s obligations under this Lease which shall remain in effect until such time as Tenant furnishes the guaranty described herein, which shall
in no event be later than December 1, 1998.
44. STORAGE
AREA. Tenant shall have the right to use certain areas of the roof of the Building for storage purposes, subject to Landlord’s prior written consent and Tenant’s indemnity of Landlord for any loss,
cost, damage, claim or expense resulting from such storage activity.
45. ADA. Landlord acknowledges that the Building must comply with certain provisions of the Americans with Disabilities Act of 1990 and certain regulations and guidelines
issued by authorized agencies with respect thereto, all as amended from time to time (the “ADA”) and the Texas accessibility standards and all regulations and guidelines issued by authorized agencies with respect thereto, all as amended
from time to time (“TAS”) [the ADA and TAS being collectively, the “ADA/TAS”], Landlord agrees that the responsibility for compliance with the ADA/TAS shall be borne by Landlord (including any corrective work arising from the
Texas statutory requirement to have an inspection of the Building and Premises one (1) year after completion of the construction with respect to the Base Building Work and Landlord’s failure to perform the Leasehold Work pursuant to the plans
and specifications therefor. Tenant shall be responsible for preparing the plans and specifications for the Leasehold Work in compliance with ADA/TAS and performing any corrective work required thereby as a result of such non-compliance. The
allocation of responsibility for ADA/TAS compliance between Landlord and Tenant, and the obligations of Landlord and Tenant established by such allocations shall supersede any other provisions of the Lease that may contradict or otherwise differ
from the requirements of this Section 45.
46. LEGAL
DESCRIPTION. Landlord and Tenant agree to amend the legal description of the Project set forth in Appendix A-1 from time to time as necessary to correct any inaccuracies contained therein or to reflect any
changes resulting from re-platting or other causes.
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IN WITNESS WHEREOF, the parties hereto have executed this Lease.
LANDLORD: CARRAMERICA REALTY, L.P., a Delaware limited partnership | ||
By: |
CarrAmerica Realty GP Holdings, Inc., its general partner | |
By: |
/s/ XXXXX X.
XXXXXX | |
Print Name: Xxxxx X. Xxxxxx Print Title: Chief
Financial Officer |
TENANT: NOKIA, INC., a Delaware corporation | ||
By: |
/s/ [ILLEGIBLE] | |
Print Name: [ILLEGIBLE] Print Title: Senior Vice
President |
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