THIRD AMENDMENT TO LEASE
Exhibit
10.2
THIRD AMENDMENT TO LEASE
THIS THIRD AMENDMENT TO LEASE
(“Amendment”) is made
and entered into effective as of the 1st day of March, 2004 (“Effective Date”), by and
between 303 XXXXXX REALTY
L.L.C., a Delaware limited liability company (hereinafter referred to as
“Landlord”), and XXXXXXX XXXXXXXX ENVIRODYNE ENGINEERS,
INC., a Delaware corporation (hereinafter referred to as “Tenant”).
R E C I T
A L S:
A. Landlord
(as successor in interest to Metropolitan Life Insurance Company) and Tenant are
parties to that certain Office Lease dated January 1, 1996 (“Original Lease”), as amended
by First Amendment to Lease dated effective as of October 1, 1999 (the “First Amendment”) and by
Second Amendment to Lease dated as of January 22, 2001 (the “Second Amendment”) (such
Original Lease, as so amended by the First Amendment and the Second Amendment
and as amended hereby and as further amended from time to time, and including,
without limitation, that certain Commencement Date Agreement dated January 1,
1996 [i.e., being “Rider
l”] and
“Rider 2” incorporated
as part of the Original Lease, being collectively referred to herein as the
“Lease”), demising
premises stipulated to contain 74,234 square feet situated on the 5th, 6th and
12th floors of the Building commonly known as 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx,
Xxxxxxxx for a term expiring September 30, 2006; and
B. Landlord
and Tenant desire to amend the Lease to, among other things, extend the term of
the Lease and to include additional space on the 9th and 10th floors as part of
the Premises, and for other matters, all upon the terms and conditions
hereinafter set forth.
NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Landlord and Tenant hereby amend the Lease in the following
respects only and hereby agree as follows:
1. Defined
Terms. As used in this Amendment, the following terms shall
have the respective meanings indicated below:
(a) “Additional Premises” shall
mean the premises on the 9th and 10th floors of the Building, stipulated to
contain 43,145 square feet of Rentable Area (being the entire 9th floor
consisting of 29,852 square feet of Rentable Area, and a portion of the 10th
floor, consisting of 00,000 xxxxxx xxxx xx Xxxxxxxx Xxxx), as shown on Exhibit A
attached hereto and made a part hereof.
(b) “Additional Premises Commencement Date” shall mean
the first to occur of (i) October 1, 2004 and (ii) the date Tenant occupies all
or any part of the Additional Premises for the conduct of business operations
therefrom, in any case subject to the abatements of rent attributable to the
Additional Premises as provided in Paragraphs 4(d) and 5(d) below.
1
(c) “Existing Premises” shall mean the Premises
being leased under the Lease immediately prior to the date of this Amendment, as
described in Recital A above, consisting of 74,234 square feet of Rentable
Area on the 5th, 6th and 12th floors of the
Building.
(d) “Existing Premises Area A” shall mean that portion
of the Existing Premises located on the 5th and 6th floors of the Building,
as described in the Original Lease, consisting of 56,520 square feet of Rentable
Area.
(e) “Existing Premises Area B” shall mean that portion
of the Existing Premises located on the 12th floor of the Building,
as described in the Second Amendment as the “Additional Premises”, consisting of
17,714 square feet
of Rentable Area.
All other
capitalized terms used but not otherwise defined herein shall have the same
meanings as set forth in the Lease. For purposes of the Lease, the term “Rent” shall specifically
include the rental payments due with respect to the Additional Premises and the
Existing Premises as described in Paragraphs 4 and 5
hereinbelow.
2. Additional
Premises. Effective as of the Additional Premises Commencement
Date and for a lease term expiring concurrently with the end of the Term for the
remainder of the Premises, as it may be sooner terminated or extended as
provided herein or in the Lease:
(a) the
Premises shall include the Additional Premises; and
(b) the
Rentable Area of the Premises shall be increased by the Rentable Area of the
Additional Premises.
3. Extension
of Term; Lease Governs. The expiration date of the term of the
Lease is hereby extended from September 30, 2006 to September 30,
2014 (subject to
further extension thereof as provided in Paragraphs 9 and 10 below). Such extension
of the term shall be upon all of the terms and conditions as set forth in the
Lease, as expressly amended hereby. Without limitation of the foregoing, from
and after the Additional Premises Commencement Date and through the end of the
term of the Lease (as extended hereby), all provisions of the Lease (as
expressly amended hereby) shall be in full force and effect with respect to, and
shall govern Tenant's possession of, both the Additional Premises and the
Existing Premises.
|
4.
|
Monthly
Base Rent.
|
(a) From
and after the Additional Premises Commencement Date, Monthly Base Rent under the
Lease with respect to the Additional Premises (herein, “Monthly Additional Premises Base
Rent”) shall be payable in the amounts and at the annual rates per square
of foot of Rentable Area of the Additional Premises for the respective periods
hereafter described:
2
Period
|
Monthly
|
Annually
|
Rate/SF
|
Additional
Premises
|
$58,425.52*
|
$701,106.25*
|
$16.25
|
Commencement
Date through
|
|||
September
30, 2005
|
|||
October
1, 2005 through
|
$59,612.01
|
$715,344.10
|
$16.58
|
September
30, 2006
|
|||
October
1, 2006 through
|
$60,798.50
|
$729,581.95
|
$16.91
|
September
30, 2007
|
|||
October
1, 2007 through
|
$62,020.94
|
$744,251.25
|
$17.25
|
September
30, 2008
|
|||
October
1, 2008 through
|
$63,279.33
|
$759,352.00
|
$17.60
|
September
30, 2009
|
|||
October
1, 2009 through
|
$65,184.90
|
$782,218.85
|
$18.13
|
September
30, 2010
|
|||
October
1, 2010 through
|
$67,126.43
|
$805,517.15
|
$18.67
|
September
30, 2011
|
|||
October
1, 2011 through
|
$69,139.86
|
$829,678.35
|
$19.23
|
September
30, 2012
|
|||
October
1, 2012 through
|
$71,225.20
|
$854,702.45
|
$19.81
|
September
30, 2013
|
|||
October
I. 2013 through
|
$73,346.50
|
$880,158.00
|
$20.40
|
September
30, 2014
|
*subject
to abatement as described in Paragraph 4(d) below.
Monthly
Additional Premises Base Rent shall be payable at such times and at such place
and in accordance with such provisions as otherwise set forth in the Lease
relative to the payment of Monthly Base Rent thereunder.
(b) Monthly
Base Rent under the Lease with respect to that portion of the Existing Premises
constituting Existing Premises Area A shall continue to be payable in such
amounts and in accordance with such provisions as are set forth in the Lease
from and after the Effective Date hereof and through September 30, 2006 (which
Monthly Base Rent is set forth in the last line item in Section 1.01(8) of the
Original Lease and is also reflected in the following Monthly Base Rent schedule
for information purposes), subject to Paragraph 4(e) below regarding a certain
one-month abatement thereof. From and after October 1, 2006, Monthly Base Rent
for Existing Premises Area A shall be payable by Tenant in the following amounts
and at the following rates per square foot of Rentable Area for the respective
periods hereinafter described:
3
Period
|
Monthly
|
Annually
|
Rate/SF
|
Effective
Date through
|
$64,688.44*
|
$776,261.28*
|
$13.73
|
September
30, 2006
|
|||
October
1, 2006 through
|
$79,646.10
|
$955,753.20
|
$16.91
|
September
30, 2007
|
|||
October
1, 2007 through
|
$81,247.50
|
$974,970.00
|
$17.25
|
September
30, 2008
|
|||
October
1, 2008 through
|
$82,896.00
|
$994,752.00
|
$17.60
|
September
30, 2009
|
|||
October
1, 2009 through
|
$85,392.30
|
$1,024,707.60
|
$18.13
|
September
30, 2010
|
|||
October
1, 2010 through
|
$87,935.70
|
$1,055,228.40
|
$18.67
|
September
30, 2011
|
|||
October
1, 2011 through
|
$90,573.30
|
$1,086,879.60
|
$19.23
|
September
30, 2012
|
|||
October
1, 2012 through
|
$93,305.10
|
$1,119,661.20
|
$19.81
|
September
30, 2013
|
|||
October
1, 2013 through
|
$96,084.00
|
$1,153,008.00
|
$20.40
|
September
30, 2014
|
*subject
to abatement as described in Paragraph 4(e) below.
The
foregoing Monthly Base Rent for Existing Premises Area A shall be payable at
such times and at such place and in accordance with such provisions as otherwise
set forth in the Lease relative to the payment of Monthly Base Rent
thereunder.
(c) Monthly
Base Rent under the Lease with respect to that portion of the Existing Premises
constituting Existing Premises Area B shall continue to be payable in such
amounts and in accordance with such provisions as are set forth in the Lease
from and after the Effective Date hereof and through September 30, 2004 (which
Monthly Base Rent is set forth in Paragraph 4 of the Second Amendment and is
also reflected in the following Month's Base Rent schedule for information
purposes). From and after October 1, 2004, Monthly Base Rent for Existing
Premises Area B shall be payable by Tenant in the following amounts and at the
following rates per square foot of Rentable Area for the respective periods
hereinafter described (notwithstanding anything in said Paragraph 4 of the
Second Amendment to the contrary):
4
Period
|
Monthly
|
Annually
|
Rate/SF
|
Effective
Date through
|
$27,412.42
|
$328,948.98
|
$18.57
|
May
31, 2004
|
|||
June
1, 2004 through
|
$28,239.07
|
$338,868.82
|
$19.13
|
September
30, 2004
|
|||
October
1, 2004 through
|
$23,987.71
|
$287,852.50
|
$16.25
|
September
30, 2005
|
|||
October
1, 2005 through
|
$24,474.84
|
$293,698.12
|
$16.58
|
September
30, 2006
|
|||
October
1, 2006 through
|
$24,961.98
|
$299,543.74
|
$16.91
|
September
30, 2007
|
|||
October
1, 2007 through
|
$25,463.88
|
$305,566.50
|
$17.25
|
September
30, 2008
|
|||
October
1, 2008 through
|
$25,890.53
|
$311,766.40
|
$17.60
|
September
30, 2009
|
|||
October
1, 2009 through
|
$26,762.90
|
$321,154.82
|
$18.13
|
September
30, 2010
|
|||
October
1, 2010 through
|
$27,560.03
|
$330,720.38
|
$18.67
|
September
30, 201 1
|
|||
October
1, 2011 through
|
$28,386.69
|
$340,640.22
|
$19.23
|
September
30, 2012
|
|||
October
1, 2012 through
|
$29,242.86
|
$350,914.34
|
$19.81
|
September
30, 2013
|
|||
October
1, 2013 through
|
$30,113.80
|
$361,365.60
|
$20.40
|
September
30, 2014
|
*subject
to abatement as described in Paragraph 4(e) below.
The
foregoing Monthly Base Rent for Existing Premises Area B shall be payable at
such times and at such place and in accordance with such provisions as otherwise
set forth in the Lease relative to the payment of Monthly Base Rent
thereunder.
(d) Notwithstanding
anything herein or in the Lease to the contrary, provided that Tenant is not
otherwise in default under the Lease at any time during a respective “Additional
Premises Abatement Month” (as hereinafter defined) which default has not been or
is not thereafter cured by Tenant in the time and manner described in the Lease
after written notice from Landlord, Monthly Base Rent attributable to the
Additional Premises shall xxxxx for each full or partial calendar month
commencing with the Additional Premises Commencement Date and continuing through
October 31, 2004 (each such full or partial calendar month, an “Additional Premises Abatement Month”);
provided that Tenant shall remain responsible for all other obligations of
Tenant under the Lease during each of the aforedescribed Additional Premises
Abatement Months, and provided further that such abatement of Monthly Additional
Premises Base Rent shall not apply for any Additional Premises Abatement Month
during which Tenant, at any time, is otherwise in default under the Lease which
default has not
5
been or
is not thereafter cured by Tenant in the time and manner described in the Lease
after written notice from Landlord.
(e)
Notwithstanding anything herein or in the Lease to the contrary, provided that
Tenant is not otherwise in default under the Lease at any time during the
“Existing Premises Abatement Month” (as hereinafter defined) which default has
not been or is not thereafter cured by Tenant in the time and manner described
in the Lease after written notice from Landlord, Monthly Base Rent attributable
to the Existing
Premises shall xxxxx for the month of October, 2004 (the “Existing Premises Abatement
Month”) ; provided that
Tenant shall remain responsible for all other obligations of Tenant under the
Lease during such Existing Premises Abatement Month, and provided further, that
such abatement of Monthly Base Rent attributable to the Existing Premises shall
not apply for such Existing Premises Abatement Month if Tenant, at any time
during such Existing Premises Abatement Month, is otherwise in default under the
Lease which default has not been or is not thereafter cured by Tenant in the
time and manner described in the Lease after written notice from
Landlord.
|
5.
|
Additional
Premises Rent Adjustments.
|
(a) For
the calendar year in which the Additional Premises Commencement Date falls,
Tenant's Share of Operating Expenses and Taxes (i.e., Rent Adjustments under the
Lease) provided for in Article Four of the Lease shall be calculated separately
for the Additional Premises apart from the remainder of the Premises, but not
for any subsequent years of the Term of the Lease. In subsequent years, Rent
Adjustments shall be calculated for the Additional Premises together with the
remainder of the Premises. Rent Adjustments for the Additional Premises for the
calendar year in which the Additional Premises Commencement Date falls (herein,
the “Additional Premises Rent
Adjustments”) shall be prorated by multiplying the Rent Adjustments
attributable to the Additional Premises by a fraction, the numerator of which is
the number of days remaining in such calendar year following the Additional
Premises Commencement Date and the denominator of which is 365.
(b)
For purposes of calculating Additional Premises Rent Adjustments (i.e., being
the Rent Adjustments payable on account of the Additional Premises for the
calendar year in which the Additional Premises Commencement Date falls),
“Tenant's Share” shall be 5.6023%. For purposes of calculating Rent Adjustments
payable on account of both the Additional Premises and the remainder of the
Premises (i.e., being the “Existing Premises” as described herein) for all
subsequent calendar years (or partial calendar years) within the Term of the
Lease, “Tenant's Share” shall be 15.2415% (and Section 1.01(13) of the Lease is
hereby amended accordingly). Rent Adjustments for the Existing Premises shall
continue to be calculated and paid in accordance with Article Four of the Lease
for the calendar year in which the Additional Premises Commencement Date
falls.
(c) All
Rent Adjustments described in this Paragraph 5 shall be payable at such times,
in such manner,
and in accordance with such procedures (i.e, including
6
payment
of “Rent Adjustment Deposits” and final reconciliations) as set forth in Article
Four of the Lease relative to payment of Rent Adjustments
thereunder.
(d) Notwithstanding
anything herein or in the Lease to the contrary, it is agreed that, provided
that Tenant is not in default under the Lease during any applicable Additional
Rent Abatement Month (as hereinafter defined) which default has not been or is
not thereafter cured by Tenant in the time and manner described in the Lease
after written notice from Landlord, then, Tenant shall be entitled to an
abatement of Rent Adjustments and Rent Adjustment Deposits attributable to the
Additional Premises being leased hereunder for each full or partial calendar
month commencing with the Additional Premises Commencement Date and continuing
through September 30, 2004 (each such full or partial calendar month, an “Additional Rent Abatement
Month”). The
foregoing abatement of Rent Adjustments and Rent Adjustment Deposits
attributable to the Additional Premises shall not otherwise affect Tenant's
obligation to pay all other amounts due and owing under the Lease during each
such respective Additional Rent Abatement Month, nor shall it affect any other
obligations of Tenant hereunder or under the Lease; and provided further, that
Tenant shall not be entitled to any such abatement of Rent Adjustments and Rent
Adjustment Deposits for any Additional Rent Abatement Month during which Tenant
is, at any time, in default under the Lease which default has not been or is not
thereafter cured by Tenant in the time and manner described in the Lease after
written notice from Landlord.
6. Condition;
Tenant Improvements.
(a) Without
limitation of the terms of Paragraphs 6(b) and 6(c) below, Tenant hereby accepts
the Additional Premises in their “as is” condition as of the
Turnover Date described in Paragraph 7 below, subject to Paragraphs 6(b) and
6(c) below, and Tenant hereby accepts the Existing Premises in their “as is” condition as of the date
hereof, and Tenant acknowledges and agrees that Landlord shall not be required
to make any improvements to the Additional Premises (except as provided in
Paragraph 6(c) below) or the Existing Premises for Tenant's use and occupancy
during the term of the Lease (as extended hereby). Without limitation of the
foregoing, it is acknowledged that Tenant shall, at its sole cost and expense
(subject to application of the Allowance as defined in the hereafter described
“Initial Premises Workletter”), perform any work at the Existing Premises and/or
the Additional Premises as may be necessary or desired by Tenant to improve the
Existing Premises and/or the Additional Premises for occupancy, all subject to
and in accordance with the provisions of the Workletter Agreement attached
hereto as Exhibit B (the “Initial Premises
Workletter”). All work completed by
Tenant on or after the Turnover Date (as defined in Paragraph 7 below) and on or
before the one hundred eightieth (180th) day following the Additional Premises
Commencement Date as referenced in this Paragraph 6(a) is hereinafter referred
to as “Tenant's
Work”.
(b) Notwithstanding
the terms of Paragraph 6(a) above, Landlord shall maintain and make necessary
repairs to the electrical, plumbing, heating, ventilation and air-conditioning
systems of the Building so that the same continue to function in good working
order, all as and to the extent described in Section 8.01 of the Original Lease.
Further, Landlord shall maintain the Common Areas of the Building (as well as
attached
7
parking
structures, if applicable) in compliance, in all material respects, with
applicable Laws, including without limitation, the Americans with Disabilities
Act and any and all environmental Laws to the extent applicable. For purposes of
this Paragraph 6(b), it is understood and agreed that (i) any costs incurred by
Landlord relative to its maintenance, repair and/or compliance activities as
described in this Paragraph 6(b), including costs of capital improvements, may
be included as part of “Operating Expenses” under the Lease (subject to any
other limitations expressly described in the definition of “Operating Expenses”
under the Lease and subject to the terms of the last sentence of this Paragraph
6(b) hereinbelow), and (ii) Tenant shall have no claim against Landlord relative
to Landlord's failure to perform maintenance or repair obligations under this
Paragraph 6(b) or under the Lease or relative to Landlord's noncompliance of
Laws under this Paragraph 6(b) or under the Lease, if any such failure or any
such noncompliance of Laws does not adversely or financially impact Tenant's use
and quiet enjoyment of any portion of the Premises in accordance with the terms
of the Lease, and (iii) Tenant shall reasonably cooperate with Landlord in
allowing access to the Premises, subject to prior scheduling with Tenant, to
enable Landlord to perform any maintenance, repair and/or compliance work which
is required within the Premises. Notwithstanding the foregoing, if the Building
is in violation of any such Laws (as now existing) as of the date of this
Amendment (i.e., meaning that the Building was obligated to take action to
comply with such Laws on or before the date of this Amendment, and has failed to
do so) including, without limitation, any environmental Laws, then the costs of
any capital improvements or other compliance activities made to the Building
after the date of this Amendment in order to cure such violations of Laws shall
not be included in recoverable “Operating Expenses” under the
Lease.
(c) Landlord
shall perform, or cause to be performed, certain sprinkler work at that portion
or the Additional Premises located on the 10th floor, which work is described in
Exhibit E hereto (the “Work”), at no cost to Tenant.
Landlord shall use commercially reasonable efforts to tender possession of the
Additional Premises to Tenant, with the Work being substantially completed
therein, on or before June 1, 2004, all as and to the extent and subject to the
terms and conditions provided in Paragraph 7 below. For purposes hereof, the
term “substantially
completed”, “substantially complete”,
“substantial
completion”, or words of similar import, shall mean completion of the
Work, except for minor and insubstantial details of construction, detail,
finishes or mechanical adjustments which remain to be done, to the extent that
such remaining incomplete items would not materially interfere with the use of
the Additional Premises for Tenant's office operations under the Lease. In the
event of any dispute as to whether the Work is substantially complete, the
decision of Landlord's architect shall be final and binding on the parties.
Following delivery of the Additional Premises to Tenant in accordance with the
terms of this Amendment, Landlord shall proceed diligently to complete the
balance (if any) of the Work in a reasonable time frame. Tenant hereby
acknowledges that, following Landlord's delivery of possession to Tenant of the
Additional Premises, Landlord may be completing any then unfinished portions of
the Work in or about the Additional Premises during normal business hours while
Tenant is performing work or otherwise conducting other activities therein.
Tenant hereby agrees to reasonably cooperate with Landlord with regard to
scheduling times for the
8
performance
of said balance of the Work and coordinating Tenant's activities in the
Additional Premises with Landlord's performance of same.
7. Possession. Landlord
shall use commercially reasonable efforts to deliver possession of the
Additional Premises to Tenant, with the “Work” being “substantially completed”
therein (as such terms are defined in Paragraph 6(c) above), no later than June
1, 2004, in order for Tenant to proceed with the Tenant's Work. The date
Landlord so delivers possession of the Additional Premises is referred to herein
as the “Turnover
Date”. If
Landlord should be unable, due to fire or other casualty, a holdover tenant or
any other reason beyond Landlord's reasonable control, to so deliver possession
of the Additional Premises on or before June 1, 2004, Landlord shall not be
subject to any liability for failure to deliver possession. Such failure to
deliver possession shall not affect either the validity of the Lease or the
obligations of either Landlord or Tenant under the Lease or be construed to
extend the expiration of the term of the Lease either as to the respective
Additional Premises or the balance of the Premises; provided, however, that
under such circumstances (A) the stated Additional Premises Commencement Date
set forth in Paragraph l(b)(i) above shall be extended by one day for each day
of delay beyond June 1, 2004 in delivery of possession of such Additional
Premises to Tenant, and (B) Landlord shall continue to use reasonable efforts to
so deliver possession of the Additional Premises to Tenant as soon thereafter as
reasonably practicable. Any occupancy of the Additional Premises from and after
the Turnover Date and continuing through the day immediately prior to the
Additional Premises Commencement Date shall be subject to all of the terms and
provisions set forth in the Lease, except that (i) Tenant shall not be obligated
to pay Monthly Base Rent or Rent Adjustments attributable to the Additional
Premises for any such period prior to the Additional Premises Commencement Date,
and (ii) Landlord shall be obligated to furnish janitorial or other base
building services within the Additional Premises for any such period prior to
the Additional Premises Commencement Date.
8. Right of
First Offer. Subject to the provisions hereinafter set forth,
Landlord hereby grants to Tenant the right to lease, on the terms and conditions
hereinafter set forth, each portion of the First Offer Space (as hereinafter
defined) which becomes available for leasing during the First Offer Period (as
hereinafter defined).
(a) A
portion of the First Offer Space shall be deemed to be “available for leasing” upon the occurrence of
the following events.
(i) the
expiration of an Existing Lease (as hereinafter defined) of such portion of the
First Offer Space (including any renewals or extensions thereof, whether or not
pursuant to options currently set forth therein), provided that such portion of
the First Offer Space is not then subject to a right or option to lease such
space granted in another Existing Lease;
(ii) if
such portion of the First Offer Space is subject to a right or option granted in
another Existing Lease, which right or option is not exercised, the later to
occur of (A) the expiration of such right or option unexercised and (B) the
expiration of the Existing Lease of such portion of the First Offer Space
(including any renewals or extensions thereof, whether or not pursuant to
options currently set forth therein); or
9
(iii)
if such portion of the First Offer Space is subject to a right or option granted
in another Existing Lease, which option is exercised, the expiration of the term
of such other Existing Lease (including any renewals or extensions thereof,
whether or not pursuant to options currently granted therein) or any later date
on which the term of the demise of such portion of the First Offer Space created
by the exercise of such right or option (including any renewals or extensions
thereof, whether or not pursuant to options currently granted in such Existing
Lease) expires.
(b) Prior
to Landlord's offering to the public for lease, or leasing, or granting options
to lease, any portion of space on floors 4, 7, 10 or 12 of the Building (herein,
the “First Offer
Space”), which is not otherwise leased to Tenant and which becomes
available for leasing during the First Offer Period, Landlord shall give Tenant
written notice of the location and Rentable Area of such portion of the First
Offer Space, the date of commencement of the term of the demise, as determined
by Landlord, with respect to such portion of the First Offer Space (the “First Offer Space Commencement
Date”) and the rental rate for such portion of the First Offer Space
(determined as hereinafter provided) (such notice being referred to as a “Landlord Initial Notice”). The
First Offer Space Commencement Date shall not be less than sixty (60) days after
the date such Landlord Initial Notice is given by Landlord. Tenant's right to
lease the First Offer Space described in such a Landlord Initial Notice from
Landlord shall be exercisable by written notice from Tenant to Landlord of
Tenant's election to exercise said right given not later than ten (10) business
days after such Landlord Initial Notice is given, time being of the essence. If
such right is not so exercised, Landlord shall have the right to thereafter
market such space for leasing or for granting options to lease, subject to
Tenant's continuing first offer rights described in Paragraph 8(c) below. Tenant
may not elect to lease less than the entire area of the First Offer Space
described in any such Landlord Initial Notice.
(c) If
Tenant does not validly exercise its first offer option with respect to any
applicable First Offer Space as provided in Paragraph 8(b) above, then Landlord
shall have the right to market the applicable First Offer Space for leasing or
for options to lease, to any person or entity; provided that prior to Landlord
leasing, or granting options to lease, all or any portion of such applicable
First Offer Space for a term commencing during the First Offer Period, Landlord
shall give Tenant written notice of the location and Rentable Area of such
applicable portion of the First Offer Space and the then proposed First Offer
Space Commencement Date therefor and the then determined rental rate therefor
(determined as hereinafter provided) (such notice being referred to as a “Landlord Second Notice”). The
then proposed First Offer Space Commencement Date shall not be less than sixty
(60) days after the date such Landlord Second Notice is given by Landlord.
Tenant's right to lease the First Offer Space described in such a Landlord
Second Notice from Landlord shall be exercisable by written notice from Tenant
to Landlord of Tenant's election to exercise said right given not later than
five (5) business days after the applicable Landlord Second Notice is given,
time being of the essence. If such right is not so exercised, Tenant's right of
first offer shall thereupon terminate as to such portion of the First Offer
Space, and Landlord may thereafter lease or grant options to lease all or any
portion of such applicable First Offer Space without notice to
Tenant
10
and free
of any right in Tenant; provided, however, that if Landlord shall not have
leased, or granted options to lease, the applicable First Offer Space described
in any applicable Landlord Second Notice within the period ending one hundred
eighty (180) days following the date of such Landlord Second Notice (plus, if
Landlord is negotiating with a particular potential tenant at the time such
period expires, such additional period during which Landlord continues to
negotiate with such potential tenant), Landlord shall not lease or grant options
to lease such portion of the First Offer Space for a term commencing during the
First Offer Period without again giving a Landlord Second Notice to Tenant as
described above, and, in such event, Tenant shall again have the first offer
right with respect to such applicable First Offer Space in accordance with the
terms and provisions set forth in this Paragraph 8. Tenant may not elect to
lease less than the entire area of the First Offer Space described in a Landlord
Second Notice. Further, if Tenant does not exercise its first offer rights as
described in this Paragraph 8(c), and if Landlord thereafter leases or grants
options to lease the applicable First Offer Space, then Tenant shall again have
first offer rights under this Paragraph 8 with respect to such space if and when
such First Offer Space again becomes “available for leasing” during the First
Offer Period.
(d) Unless
Landlord otherwise agrees (at its sole discretion), Tenant may only exercise its
right to lease a portion of the First Offer Space, and an exercise thereof shall
only be effective, if at the time of Tenant's exercise of said right and on the
pertinent First Offer Space Commencement Date, the Lease is in full force and
effect and Tenant is not (i) in monetary default under the Lease, or (ii) in
non-monetary default under the Lease, and in either event, such default is not
cured by Tenant in the time and manner described in the Lease after written
notice from Landlord, and (inasmuch as this right of first offer is intended
only for the benefit of the original Tenant named in this Amendment) at least
two-thirds of the Rentable Area of the Premises (inclusive of the Additional
Premises described herein) are occupied by the original Tenant named in this
Amendment and/or one or more permitted Affiliates under Article Ten of the
Lease, and said Tenant has not assigned the Lease (other than to a permitted
Affiliate), or sublet greater than one-third of the Rentable Area of the
Premises (other than to one or more permitted Affiliates). Without limitation of
the foregoing, no sublessee or assignee (other than a permitted Affiliate
assignee) shall be entitled to exercise any first offer right hereunder, and,
unless Landlord otherwise agrees (at its sole discretion), no exercise of any
first offer right hereunder by the original Tenant named in this Amendment or by
a permitted Affiliate assignee shall be effective in the event said Tenant
assigns the Lease (other than a permitted Affiliate assignee) or subleases all
or greater than one-third of the Rentable Area of the Premises (other than to
one or more permitted Affiliates) prior to the pertinent First Offer Space
Commencement Date. If the original Tenant named in this Amendment has assigned
the Lease to an assignee which is a permitted Affiliate assignee under Article
Ten of the Lease, as of the time of Tenant's exercise of any first offer rights
under this Paragraph 8 or on the pertinent First Offer Space Commencement Date,
then, at Landlord's option, any such exercise of the first offer right under
this Paragraph 8 shall need to be executed by the original named Tenant in this
Amendment and each such permitted Affiliate assignee in order to be effective
for purposes hereof (unless, however, the original named Tenant no longer exists
as a separate and distinct entity as a direct result of the transaction giving
rise to the assignment to such permitted Affiliate, such as
11
is the
case of a merger, in which event only the permitted Affiliate assignee shall be
obligated to execute such first offer exercise notice hereunder).
Notwithstanding anything to the contrary, Landlord shall have the right, at its
election, to waive any of the conditions precedent to Tenant's valid exercise of
its first offer rights under this Paragraph 8, as such conditions are described
above in this Paragraph 8(d), whereupon Tenant's prior exercise of such first
offer rights shall be valid and in full force and effect and in all respects.
Any such waiver by Landlord must be in writing in order to be effective for
purposes of the preceding sentence.
(e) If
Tenant has validly exercised its right to lease a portion of the First Offer
Space, then effective as of the First Offer Space Commencement Date such portion
of the First Offer Space shall be included in the Premises, subject to all of
the terms, conditions and provisions of the Lease, except that the rent per
square foot of Rentable Area for such portion of the First Offer Space,
including concessions, shall be equal to the ROFO Market Rental Rate (as
hereinafter defined). Without limitation of the foregoing:
(i) the
Rentable Area of the Premises shall be increased by the Rentable Area of such
portion of the First Offer Space (and “Tenant's Share” shall be increased
accordingly);
(ii) the
term of the demise covering such portion of the First Offer Space shall commence
on the First Offer Space Commencement Date and shall expire simultaneously with
the expiration of the term of the Lease, including any extension or renewal
thereof; and
(iii) the
First Offer Space shall be rented in its “as is” condition as of the
First Offer Space Commencement Date
(inasmuch as tenant improvement work, allowances, free-rent during tenant
construction periods and other concessions, if any, as will be reflected in ROFO Market Rental
Rate as described in Paragraph 8(i) below).
(f) If
Tenant has validly exercised its right to lease a portion of the First Offer
Space, within thirty (30) days after request by either party hereto, Landlord
and Tenant shall enter into a written amendment to the Lease confirming the
terms, conditions and provisions applicable to such portion of the First Offer
Space as determined in accordance herewith.
(g) If
Tenant has validly exercised its right to lease a portion of the First Offer
Space, Landlord shall use commercially reasonable efforts to deliver possession
of such First Offer Space to Tenant on the pertinent First Offer Space
Commencement Date (including, the filing and diligent prosecution of eviction
proceedings, if necessary, with respect to any holdover tenant therein), but in
the event Landlord should be unable for any reason to do so, then Landlord shall
not be subject to any liability for failure to deliver possession except as
provided below in this Paragraph 8(g). Such failure to deliver possession shall
not affect either the validity of the Lease or the obligations of either
Landlord or Tenant thereunder or be construed to extend the expiration of the
term of the Lease either as to such portion of the First Offer Space or the
balance of the
12
Premises;
provided that in such event, the First Offer Space Commencement Date shall be
extended until Landlord is able to deliver possession (i.e., with any rental
abatement periods under Paragraph 8(e)(iii) hereof, as applicable, being
deferred accordingly). Without limitation of the foregoing, in the event
Landlord fails to deliver possession of any portion of the First Offer Space,
which failure continues for ninety (90) days beyond the pertinent First Offer
Space Commencement Date (the “Outside First Offer Space
Commencement Date”) for any reason
whatsoever (including reasons beyond Landlord's reasonable control), then Tenant
shall have the additional ongoing right, exercised upon thirty (30) days'
written notice thereof to Landlord delivered at any time following such 90-day
period and prior to such time as Landlord has tendered the applicable First
Offer Space to Tenant (time being of the essence) and Landlord's failure to
deliver possession of such First Offer Space to Tenant within such 30-day
period, to revoke its earlier exercise of such applicable first offer right,
whereupon the Lease shall continue in full force and effect without regard to
such First Offer Space, and neither party shall have any further rights or
obligations with respect thereto (provided that Landlord shall again give Tenant
a Landlord Second Notice under this Paragraph 8, and Tenant shall again have
first offer rights as provided in this Paragraph 8, prior to Landlord leasing or
granting options to lease such First Offer Space which remains available for
leasing for a term commencing during the First Offer Period). If Tenant fails to
so revoke its prior exercise notice within the time periods set forth in the
preceding sentence Tenant shall be deemed to have waived such right, and the
remaining terms of this Paragraph 8(g) shall continue to apply.
(h) In
the event any portion of the First Offer Space is leased to Tenant other than
pursuant to the right of first offer described herein, such portion of the First
Offer Space shall thereupon be deleted from the First Offer Space.
(i) As
used herein, the following terms shall have the following meanings:
(i) the
term “First Offer
Period” shall mean the term of
the Lease and all extensions and renewals thereof; provided, however, that the
First Offer Period shall not include the last two (2) years of the stated term
(as extended by this Amendment) or the last two (2) years of any renewal period
hereunder, unless Tenant has then validly exercised any option granted to Tenant
under this Amendment to extend the term for any further renewal period described
herein, (in which event the First Offer Period shall not include the last two
(2) years of any such renewal period);
(ii) the
term “Existing
Lease” shall
mean a lease of any space in the Building in effect as of the date hereof, as
amended from time to time (including extensions or renewals thereof, whether or
not pursuant to options granted therein), whether or not the term of such lease
has yet commenced;
(iii) the
term “ROFO Market Rental
Rate” per
square foot of Rentable Area shall mean (i) the annual rate of net rent
reasonably determined by Landlord to be the prevailing market net rental rate in
downtown Chicago, Illinois for comparable previously improved office space
(taking into consideration the
13
duration
of the terms for which such space is being leased, location and/or floor level
within the applicable buildings, when the applicable rate first becomes
effective, quality, condition and location of the applicable buildings and the
applicable space, rental concessions, brokerage commissions, and other
comparable factors) and reflecting (i.e., reduced, if applicable, to reflect any
prevailing concessions which are not being provided to Tenant in kind)
prevailing concessions such as, but not limited to, rental concessions, tenant
improvement work, allowances, time for construction of tenant improvements,
etc.), for terms commencing on or about the First Offer Space Commencement Date,
plus (ii) additional components of the ROFO Market Rental Rate determined by
Landlord, which may include, among the other then prevailing components of rent,
periodic adjustments or additions to a fixed rent based on a share of real
estate taxes and other expenses (such as Rent Adjustments); and which may also
include a market-level security deposit based upon security deposits then being
imposed upon other tenants in downtown Chicago, Illinois, having comparable
concession packages and being of comparable credit worthiness as that of Tenant
at the time ROFO Market Rental Rate is being determined. Completed lease
transactions at the Building and/or bona fide written offers to lease comparable
space at the Building received by Landlord from third parties (at arm's length)
and/or letters of intent or other proposals for the leasing of space at the
Building submitted or otherwise executed by third parties (at arm's length) may
be used by Landlord and thereupon have preferential value as an indication of
the ROFO Market Rental Rate.
(iv) Tenant's
first offer rights under this Paragraph 8 are expressly subject to the terms of
Paragraph 12(g) below.
9. First
Renewal Option. Subject to the provisions hereinafter set
forth, Landlord hereby grants to Tenant an option to extend the term of the
Lease for all or a “First Renewal Designated Portion” (as hereinafter described)
of the Premises on the same terms, conditions and provisions as contained in the
Lease, except as otherwise provided herein, for one period of five (5) years
(the “First Renewal
Period”) after the
expiration of the stated term of the Lease (as extended by this Amendment),
which First Renewal Period shall commence on October 1, 2014 (the “First Renewal Period
Commencement Date”) and end on the day
before the fifth (5th) anniversary of the First Renewal Period Commencement
Date.
(a) Said
option shall be exercisable by written notice from Tenant to Landlord of
Tenant's election to exercise said option given not later than the date which is
nine (9) months prior to the First Renewal Period Commencement Date, time being
of the essence. If Tenant's option is not so exercised, said option shall
thereupon expire. Tenant shall have the right, as part of its exercise notice,
to designate only a portion of the Premises (the “First Renewal Designated Portion”) for which the Term
shall be extended, provided that such First Renewal Designated Portion (i) shall
be no less than fifty percent (50%) of the Rentable Area of the initial Premises
hereunder (i.e., meaning the Existing Premises and the Additional Premises, as
described herein), and (ii) must include in any event, all space included as
part of the then Premises on any given floor at the Building (e.g., if Tenant
desires the fifth floor of the Premises to be included as part
14
of the
First Renewal Designated Portion, then the First Renewal Designated Portion must
include the entire fifth floor space then included as part of the Premises, and
may not include only a portion of such space). If Tenant properly exercises its
renewal option designating a First Renewal Designated Portion meeting the
criteria as described above, then the Term of the Lease shall expire as to the
balance of the Premises on the then stated expiration date, without regard to
any such extension or renewal hereunder. If Tenant does not properly designate a
First Renewal Designated Portion meeting the above stated criteria as part of
its exercise notice, then Tenant shall be deemed, as part of any renewal
exercise notice hereunder, to have exercised its renewal option as to the entire
then Premises.
(b) Unless
Landlord otherwise agrees (at its sole discretion), Tenant may only exercise
said option, and an exercise thereof shall only be effective, if at the time of
Tenant's exercise of said option and on the First Renewal Period Commencement
Date, the Lease is in full force and effect and Tenant is not (i) in monetary
default under the Lease or (ii) in non-monetary default under the Lease, and in
either event, such default is not cured by Tenant in the time and manner set
forth in the Lease after written notice from Landlord, and (inasmuch as said
option is intended only for the benefit of the original Tenant named in this
Amendment) not less than fifty percent (50%) of the Rentable Area of the then
Premises are occupied by the original Tenant named in this Amendment and/or one
or more permitted Affiliates under Article Ten of the Lease, and said Tenant has
not assigned the Lease (other than to a permitted Affiliate) or sublet greater
than fifty percent (50%) of the Rentable Area of the then Premises (other than
to one or more permitted Affiliates). Without limitation of the foregoing, no
sublessee or assignee (other than a permitted Affiliate assignee) shall be
entitled to exercise said option, and, unless Landlord otherwise agrees (at its
sole discretion), no exercise of said option by the original Tenant named in
this Amendment or by a permitted Affiliate assignee shall be effective in the
event said Tenant assigns the Lease (other than a permitted Affiliate assignee),
or subleases greater than fifty percent (50%) of the Rentable Area of the then
Premises (other than to one or more permitted Affiliates) prior to the First
Renewal Period Commencement Date. In the event of an assignment to a permitted
Affiliate assignee under Article Ten of the Lease as of the time of Tenant's
exercise of said option under this Paragraph 9 or as of the First Renewal Period
Commencement date, then, at Landlord's election, any exercise of said option
under this Paragraph 9 must be signed by both the original named Tenant and each
such permitted Affiliate assignee in order to be effective (unless, however, the
original named Tenant no longer exists as a separate and distinct entity as a
direct result of the transaction giving rise to the assignment to such permitted
Affiliate assignee, such as is the case of a merger, in which event only the
permitted Affiliate assignee shall be obligated to execute such renewal exercise
notice hereunder). Notwithstanding anything herein to the contrary, Landlord
shall have the right, at its election, to waive any of the conditions precedent
to Tenant's valid exercise of its renewal rights under this Paragraph 9, as such
conditions are described above in this Paragraph 9(b), whereupon Tenant's prior
exercise of such renewal rights shall be valid and in full force and effect in
all respects. Any such waiver by Landlord must be in writing to be effective for
purposes of the preceding sentence.
15
(c) Rent
per square foot of Rentable Area of the Premises payable during the First
Renewal Period with respect to all space included in the Premises as of the
First Renewal Period Commencement Date, as well as corresponding concessions,
shall be equal to the Market Rental Rate (as hereinafter defined). Landlord
shall give Tenant written notice of the Market Rental Rate (including
concessions) within thirty (30) days following Tenant's request therefor,
provided that Tenant's written request shall be given no earlier than twelve
(12) months prior to the First Renewal Period Commencement Date.
(d) If
Tenant has validly exercised said renewal option, then within thirty (30) days
after the request of either party and final determination of the Market Rental
Rate, Landlord and Tenant shall enter into a written amendment to the Lease
confirming the terms, conditions and provisions applicable to the First Renewal
Period as determined in accordance herewith, with such revisions to the rental
provisions of the Lease as may be necessary to conform such provisions to the
Market Rental Rate.
10. Second
Renewal Option. Subject to the provisions hereinafter set
forth, if Tenant has validly exercised its first renewal option under Paragraph
9 above, then Landlord hereby grants to Tenant an additional option to extend
the term of the Lease for all or a “Second Renewal Designated Portion” (as
hereinafter defined) of the Premises on the same terms, conditions and
provisions as contained in the Lease, except as otherwise provided herein, for
one additional period of five (5) years (the “Second Renewal Period”) after the
expiration of the First Renewal Period, which Second Renewal Period shall
commence on October 1, 2019 (the “Second Renewal Period Commencement
Date”) and end on the day before the fifth (5th) anniversary of the
Second Renewal Period Commencement Date.
(a) Said
option shall be exercisable by written notice from Tenant to Landlord of
Tenant's election to exercise said option given not later than the date which is
nine (9) months prior to the Second Renewal Period Commencement Date, time being
of the essence. If Tenant's option is not so exercised, said option shall
thereupon expire. Tenant shall have the right, as past of its exercise notice,
to designate only a portion of the Premises (the “Second Renewal Designated Portion”) for which
the Term shall be extended, provided that such Second Renewal Designated Portion
(i) shall be no less than fifty percent (50%) of the Rentable Area of the
initial Premises hereunder (i.e., meaning the Existing Premises and the
Additional Premises, as described herein), and (ii) must include in any event,
all space included as part of the then Premises on any given floor at the
Building (e.g., if Tenant desires the fifth floor of the Premises to be included
as part of the Second Renewal Designated Portion, then the Second Renewal
Designated Portion must include the entire fifth floor space then included as
part of the Premises, and may not include only a portion of such space). If
Tenant properly exercises its renewal option designating a Second Renewal
Designated Portion meeting the criteria as described above, then the Term of the
Lease shall expire as to the balance of the Premises on the then stated
expiration date, without regard to any such extension or renewal hereunder. If
Tenant does not properly designate a Second Renewal Designated Portion meeting
the above stated criteria as part of its exercise notice, then Tenant shall be
deemed, as part of any renewal exercise notice hereunder, to have exercised its
renewal option as to the entire then Premises.
16
(b) Unless
Landlord otherwise agrees (at its sole discretion), Tenant may only exercise
said option, and an exercise thereof shall only be effective, if at the time of
Tenant's exercise of said option and on the Second Renewal Period Commencement
Date, the Lease is in full force and effect and Tenant is not (i) in monetary
default under the Lease or (ii) in non-monetary default under the Lease, and in
either event, such default is not cured by Tenant in the time and manner set
forth in the Lease after written notice from Landlord, and (inasmuch as said
option is intended only for the benefit of the original Tenant named in this
Amendment) not less than fifty percent (50%) of the Rentable Area of the then
Premises are occupied by the original Tenant named in this Amendment and/or one
or more permitted Affiliates under Article Ten of the Lease, and said Tenant has
not assigned the Lease (other than to a permitted Affiliate) or sublet greater
than fifty percent (50%) of the Rentable Area of the then Premises (other than
to one or more permitted Affiliates). Without limitation of the foregoing, no
sublessee or assignee (other than a permitted Affiliate assignee) shall be
entitled to exercise said option, and, unless Landlord otherwise agrees (at its
sole discretion), no exercise of said option by the original Tenant named in
this Amendment or by a permitted Affiliate assignee shall be effective in the
event said Tenant assigns the Lease (other than a permitted Affiliate assignee),
or subleases greater than fifty percent (50%) of the Rentable Area of the then
Premises (other than to one or more permitted Affiliates) prior to the Second
Renewal Period Commencement Date. In the event of an assignment to a permitted
Affiliate assignee under Article Ten of the Lease as of the time of Tenant's
exercise of said option under this Paragraph 10 or as of the Second Renewal
Period Commencement date, then, at Landlord's election, any exercise of said
option under this Paragraph 10 must be signed by both the original named Tenant
and each such permitted Affiliate assignee in order to be effective (unless,
however, the original named Tenant no longer exists as a separate and distinct
entity as a direct result of the transaction giving rise to the assignment to
such permitted Affiliate assignee, such as is the case of a merger, in which
event only the permitted Affiliate assignee shall be obligated to execute such
renewal exercise notice hereunder). Notwithstanding anything herein to the
contrary, Landlord shall have the right, at its election, to waive any of the
conditions precedent to Tenant's valid exercise of its renewal rights under this
Paragraph 10, as such conditions are described above in this Paragraph 10(b),
whereupon Tenant's prior exercise of such renewal rights shall be valid and in
full force and effect in all respects. Any such waiver by Landlord must be in
writing to be effective for purposes of the preceding sentence.
(c) Rent
per square foot of Rentable Area of the Premises payable during the Second
Renewal Period with respect to all space included in the Premises as of the
Second Renewal Period Commencement Date, as well as corresponding concessions,
shall be equal to the Market Rental Rate (as hereinafter defined). Landlord
shall give Tenant written notice of the Market Rental Rate (including
concessions) within thirty (30) days following Tenant's request therefor,
provided that Tenant's written request shall be given no earlier than twelve
(12) months prior to the Second Renewal Period Commencement Date.
(d) If
Tenant has validly exercised said renewal option, then within thirty (30) days
after the request of either party and final determination of the Market Rental
Rate,
17
Landlord
and Tenant shall enter into a written amendment to the Lease confirming the
terms, conditions and provisions applicable to the Second Renewal Period as
determined in accordance herewith, with such revisions to the rental provisions
of the Lease as may be necessary to conform such provisions to the Market Rental
Rate.
(e) Tenant
shall have no right to renew or extend the term of the Lease beyond the Second
Renewal Period hereunder.
11. Market
Rental Rate. As used herein, the term “Market Rental Rate” per square foot of
Rentable Area shall mean (i) the annual rate of net rent reasonably determined
by Landlord to be the prevailing market net rental rate for leases of comparable
previously improved office space in comparable office buildings in downtown
Chicago, Illinois (taking into consideration the duration of the terms for which
such space is being leased, location and/or floor level within the applicable
buildings, size of the applicable space, when the applicable rate becomes
effective, quality, condition and location of the applicable buildings and the
applicable space, rental concessions brokerage commissions, and other comparable
factors) and reflecting (i.e., reduced, if applicable, to reflect any prevailing
concessions which are not being provided to Tenant in kind) prevailing
concessions such as, but not limited to, rental concessions, tenant improvement
work, allowances, time for construction of tenant improvements, etc.) (as the
case may be) for lease terms commencing on or about the First Renewal Period
Commencement Date or Second Renewal Period Commencement Date (as the case may
be), plus (ii) additional components of the Market Rental Rate determined by
Landlord, which may include, among the other then prevailing components of rent,
periodic adjustments or additions to a fixed rent based on a share of real
estate taxes and other expenses (such as Rent Adjustments) and which may also
include a market-level security deposit based upon security deposits then being
imposed upon tenants at other comparable first class office buildings in
downtown Chicago, Illinois having comparable concession packages and being of
comparable credit-worthiness as that of Tenant at the time Market Rental Rate is
being determined. Completed lease or lease renewal transactions at the Building
and/or bona fide written offers, letters of intent or proposals to renew or to
enter into new leases of comparable space at the Building received by Landlord
from third parties (at arm's length) and otherwise executed by third parties (at
arm's length) may be used by Landlord and thereupon have preferential value as
an indication of the Market Rental Rate.
12. Partial
Termination Of Lease.
(a) Tenant
may elect to terminate the Lease with respect to either (i) that portion of the
Additional Premises described herein which is located on the 10th floor of the
Premises, consisting of 13,293 square feet of Rentable Area, or (ii) that
portion of the Additional Premises described herein which is located on the 9th
floor of the Building, consisting of 29,852 square feet of Rentable Area, or
(iii) the entire Additional Premises (which election as to the space described
in either clauses (i), (ii) or (iii) above shall be made by Tenant as
hereinafter provided) (in either case, the “Excluded Premises”) by notice of such
partial termination election given by Tenant to Landlord, in writing no later
than January 1, 2009 (time being of the essence). Tenant's exercise notice, in
order to be effective, shall specify which of the three (3) spaces described in
subclauses (i), (ii) and (iii) above shall constitute the Excluded Premises. If
Tenant fails to so timely and validly exercise its partial termination right as
provided above in this Paragraph 12, then
18
such
right shall thereupon terminate, and this Paragraph 12 shall be null and void.
If Tenant so timely and validly exercises its partial termination option, then,
the lease of the Excluded Premises shall terminate as of October 1, 2009 (the
“Exclusion Date”) as
though the Lease had expired by lapse of time on the Exclusion Date with respect
to the Excluded Premises. From and after the Exclusion Date, the remainder of
the Premises (the “Remainder
Leased Premises”) shall be deemed to be the leased premises under the
Lease.
(b) Tenant
shall vacate and deliver possession of the Excluded Premises to Landlord in the
manner set forth in, and in the condition required by, the Lease for surrender
of the Premises, on or before the Exclusion Date. Any retention of possession by
Tenant of all or part of the Excluded Premises after the Exclusion Date shall be
deemed a holding over under Article Thirteen of the Original Lease without
consent of Landlord, and shall be subject to the terms and conditions of said
Article Thirteen of the Original Lease with respect to such
holdover.
(c) Effective
as of the Exclusion Date, Monthly Base Rent provided to be paid under the Lease
for the leased premises shall be reduced for the remainder of the Lease term
based on the Monthly Base Rent applicable to the Excluded Premises as set forth
in Paragraph 4 above. Rent Adjustments for the calendar year which includes the
Exclusion Date shall be calculated separately for the Excluded Premises and the
Remainder Leased Premises as follows:
(i) Rent
Adjustments attributable to the Excluded Premises shall be prorated pursuant to
Article Four of the Lease for the calendar year which includes the Exclusion
Date as though the Lease will terminate on the Exclusion Date. Share
attributable to the Excluded Premises for said calendar year shall be computed
pursuant to the definition of “Tenant's Share” set forth in Section 1.03(37) of
the Original Lease, using as the numerator of the ratio described therein the
Rentable Area of the Excluded Premises.
(ii) Tenant's
Share with respect to the Remainder Leased Premises for such calendar year and
for the remainder of the term thereafter shall be computed pursuant to the
definition of “Tenant's Proportionate Share” set forth in Section 1.03(37), of
the Original Lease, using as the numerator of the ratio described therein the
total Rentable Area of the Remainder Leased Premises.
(d) In
the event Tenant exercises its option to terminate the Lease as provided in this
Paragraph 12 with respect to the Excluded Premises, then, notwithstanding
anything contained in this Paragraph 12 to the contrary, Tenant shall pay
Landlord one-half of the Excluded Premises Termination Fee (as hereinafter
defined) with respect to the Excluded Premises within three (3) months after Tenant
delivers its written termination notice under this Paragraph 12, and Tenant
shall pay the remaining one-half of said Excluded Premises Termination Fee on or
before the Exclusion Date. The foregoing payments shall (at Landlord's option)
be an express condition of the effectiveness of Tenant's early termination
election hereunder. Payment of the Excluded Premises Termination Fee shall be
made in cash or by certified or cashier's check or wire
19
transfer
of same day funds. For purposes hereof, the term “Excluded Premises Termination
Fee” shall
mean an amount equal to (A) the “Unamortized Space Cost Allocation” (as
hereinafter defined), plus (B) if (and only if) the Excluded Premises includes
the entire Additional Premises (i.e., as described in subclause (iii) under
Paragraph 12(a) above), then, in addition to the Unamortized Space Cost
Allocation, the Excluded Premises Termination Fee shall also include an amount
equal to six (6) months’ prospective Base Rent and Rent Adjustments attributable
to said Additional Premises (calculated based on the rate of Base Rent and the
monthly Rent Adjustments in effect for the Additional Premises as of the
Exclusion Date). For purposes hereof, the term “Unamortized Space Cost
Allocation” shall mean the sum of
(A) with respect to those components of “Unamortized Space Costs” (as
hereinafter defined) attributable to the Allowance and to brokerage commissions,
the entire Unamortized Space Cost amount attributable thereto, and (B) with
respect to all other components of Unamortized Space Costs, the product of (i)
all such other “Unamortized Space Costs” (as hereinafter defined) divided by
117,379 square feet (i.e., being the overall Rentable Area of the Existing
Premises and the Additional Premises), multiplied by (ii) the number of square
feet of Rentable Area comprising the Excluded Premises. Further, for purposes
hereof, the term “Unamortized
Space Costs” shall mean an amount
calculated by determining the outstanding principal balance of a loan as of the
Exclusion Date, which loan has (A) an original principal balance equal to the
amount of all tenant improvement costs, allowances (including, without
limitation, the “Allowance” and “Space Plan Allowance” described in the
Workletter and the “Existing Lease Allowance” described in Paragraph 22 below),
rental abatements, legal fees and brokerage commissions given or incurred by
Landlord hereunder or in connection with this Amendment (it being understood
that, for purposes of the foregoing calculations in this subclause (A), the
initial amount of the “Allowance” is hereby stipulated to be $35.00 multiplied
by the number of square feet of Rentable Area of the applicable Excluded
Premises and the initial amount of brokerage commissions is hereby stipulated to
be $12.00 multiplied by the number of square feet of Rentable Area of the
applicable Excluded Premises), (B) an interest rate of eight percent (8%) per
annum, (C) a term and full amortization period equal to the scheduled initial
term of the Lease (as extended under Paragraph 3 hereof) (i.e., meaning from and
after October 1, 2004 and through the expiration of the initial term of the
Lease, as so extended under Paragraph 3 hereof), and (D) payments of principal
and interest made in equal monthly installments, with interest paid in arrears,
and assuming that the first payment was made as of the first month anniversary
of October 1, 2004.
(e) Tenant
may not, unless Landlord otherwise agrees, exercise such right to terminate the
Lease with respect to the Excluded Premises, as provided in this Paragraph 12,
and, unless Landlord otherwise agrees, no such exercise shall be effective, at
any time that Tenant is (i) in monetary default under the Lease; or (ii) in
non-monetary default under the Lease, which default, in either event, is not
cured by Tenant in the time and manner set forth in the Lease after written
notice from Landlord. Further, no termination hereunder shall be effective if
Tenant fails to pay any applicable portion of the termination fee when due under
this Paragraph 12 (unless Landlord otherwise agrees). Any notice to terminate
shall be irrevocable once given.
20
(f) If
Tenant exercises its option to terminate under this Paragraph 12, unless
Landlord otherwise agrees, Tenant shall represent and warrant to Landlord that
the following shall be true on the Exclusion Date (which representation and
warranty shall, at Landlord's option, be a condition to the effectiveness of
such termination right of Tenant):
(i) The
original named Tenant under this Amendment or a permitted Affiliate assignee
under Article Ten of the Lease owns and holds the entire interest of Tenant
under the Lease;
(ii) There
shall exist no subleases affecting the Excluded Premises which shall survive the
Exclusion Date;
(iii) Tenant
shall not have assigned or encumbered Tenant's interest under the Lease or any
part thereof which shall in any manner affect the Excluded Premises and which
shall survive the Exclusion Date; and
(iv) No
work shall have been performed at the Excluded Premises that has not been fully
paid for prior to the Exclusion Date and that is of a nature which could give
rise to a mechanics' lien or other claims against the Premises, the Building
and/or Landlord.
(g) In
the event Tenant exercises its first offer right at any time under Paragraph 8
above, then, notwithstanding anything herein to the contrary, Tenant shall no
longer have any termination rights under this Paragraph 12, and this Paragraph
12 shall be deemed null and void. Further, if Tenant exercises its termination
right under this Paragraph 12, then Tenant shall have no further first offer
rights under Paragraph 8 above, notwithstanding anything in this Amendment to
the contrary, and said Paragraph 8 shall thereafter become null and
void.
13. Assignment/Subletting. Article
Ten of the Original Lease is hereby amended by eliminating any further
“recapture” rights of Landlord thereunder (it being acknowledged and agreed that
Landlord shall have no further recapture rights under Article Ten of the
Original Lease from and after the date hereof).
14. Signage.
(a) Full
Floor/Exterior Signage. At Tenant's cost and expense, (i) Tenant shall
have the right to install and maintain interior identification signage for
Tenant located in the elevator lobby of any full floor being leased by Tenant as
part of the Premises, and (ii) if Landlord, at any time during the Term, at its
sole discretion, installs an additional monument base on the exterior of the
Building for identification of one or more tenants at the Building, then so long
as the original named Tenant and/or any one or more permitted Affiliates under
Article Ten hereof continue to occupy not less than seventy-five percent (75%)
of the Rentable Area of the Premises for the conduct of business operations
therefrom, Tenant shall have the non-exclusive right to install and maintain, at
Tenant's expense, identification signage for Tenant located on such exterior
monument (herein, in any case under subclause (i) or (ii) above, the “Identification
21
Signage”), all in accordance
with the following terms and conditions. The parties hereby agree that (i) the
foregoing Identification Signage permitted under subclause (ii) above (i.e., the
exterior monument signage) shall be limited to the name of the original named
Tenant or the name of a permitted Affiliate assignee under Article 10 of the
Lease designated by Tenant in writing to Landlord (it being understood that only
one such party shall have the right, at any given time, to have Identification
Signage hereunder and if Tenant or any such Affiliate assignee replaces signage
previously installed, Tenant (or such assignee, as applicable) shall be fully
responsible for removing, at its sole cost and expense, any then existing
signage being so replaced), (ii) the width and length of the letters comprising
the Identification Signage permitted hereunder shall, as it relates to exterior
signage, be consistent with building-standard exterior identification signage
requirements, (iii) the length and width of the letters comprising the
Identification Signage permitted in any elevator lobby of the Building and the
design and color of and materials used for any Identification Signage in any
elevator lobby of the Building shall be consistent with Landlord's
building-standard lobby signage requirements, and the design and color of and
materials used for any Identification Signage located external to the Building
shall be consistent with Landlord's building standard exterior identification
signage requirements; and (iv) all Identification Signage shall otherwise be
located at an exact area designated by Landlord and reasonably approved by
Tenant. Upon Tenant's request for Identification Signage, and provided that the
conditions for Tenant's signage rights under this Paragraph 14 have then been
satisfied, Tenant shall cause its architect to prepare plans and specifications
relative to the Identification Signage (which plans and specifications shall be
consistent with the requirements specified above), which plans and
specifications shall be delivered to Landlord for its review and approval. All
work performed under this Paragraph 14 shall comply with the terms and
conditions described in the Workletter (i.e., if included as part of the
Tenant's Work) or in Article Nine of the Lease (i.e., if included as subsequent
Tenant Alterations); provided however, that Landlord reserves the right, at is
discretion, to install any such Identification Signage on Tenant's behalf, using
Landlord's designated contractors, agents or employees, all at Tenant's cost and
expense. The signage rights of Tenant set forth in subclause (ii) of this
Paragraph 14 (i.e., the exterior monument signage) are personal to the original
named Tenant hereunder and any permitted Affiliate assignee under Article Ten of
the Lease and may not be exercised by any assignee (other than an Affiliate
assignee under Article Ten of the Lease and so designated by Tenant in writing
to Landlord) or sublessee, or any other party, unless Landlord otherwise
consents thereto (at Landlord's sole discretion).
(b) Door
Signage. Tenant shall have the right to install and maintain,
during the Term, at Tenant's expense, identification signage for Tenant and/or
any of its permitted assignee(s) or subtenant(s) located on the entry doors of
the Premises hereunder (“Entry
Door Identification”). Such Entry
Door Identification shall be designed, and use materials, and be of size and
color, consistent with Landlord's building-standard entry door signage
requirements, and plans and specifications therefor shall be subject to the
review and approval of Landlord, such approval not to be unreasonably withheld.
All work performed under this Paragraph 14(b) shall comply and be performed in
accordance with the terms and conditions described in the Workletter (i.e., if
included as part of the Tenant's Work) or in Article Nine of this Lease (i.e.,
if included as subsequent Tenant Alterations), in either case subject to the
terms and conditions therein
22
described;
provided, however, that Landlord reserves the right, at its discretion, to
install any such Entry Door Identification on Tenant's behalf, using Landlord's
designated contractors, agents or employees, all at Tenant's cost and
expense.
15. Building
Security. Landlord, as an “Operating Expense” of the Building,
shall provide twenty-four (24) hour on-site Building security, equipment,
personnel, procedures and systems, all if, as and to the extent determined by
Landlord from time to time to be consistent with the customary practices of
other comparable first class office buildings in downtown Chicago,
Illinois.
16. Building
Directory. At no cost or expense to Tenant, Landlord shall
provide Tenant with space on any Building directory existing from time to time
in the lobby of the Building for entries for the name of Tenant, its sublessees,
assignees and a reasonable number of each such party's designated personnel (but
with total entries not exceeding Tenant's Share of total available directory
space unless Landlord otherwise agrees in its sole discretion). Tenant shall pay
Landlord for Landlord's cost (if any) of any substitution in name entries
following the initial installation of Tenant's directory entries (i.e., meaning
any substitutions occurring later than three (3) months following the Additional
Premises Commencement Date).
17. Parking. During
the Term, Tenant shall be entitled to have up to thirty-five (35) cars parked in
the garage below the concourse level of the Building (the “Parking Spaces”), all subject
to the terms and conditions, including parking rules and regulations, applicable
from time to time to parking in the garage. In addition, if Tenant does not
initially elect to utilize all thirty-five (35) of said Parking Spaces from and
after the Effective Date hereof, then Tenant shall have the right, exercised by
written notice thereof to Landlord given on or before October 1, 2005 (time
being of the essence), to use up to the balance of such aforedescribed
thirty-five (35) Parking Spaces, which were not so initially being used by
Tenant, all subject to the terms and conditions, including parking rules and
regulations, applicable from time to time to parking in the garage. Tenant shall
pay the parking charges in effect from time to time in the garage (at monthly
rates, if monthly rates are then being charged) for all parking spaces that it
elects to use under this Paragraph 17. In connection with the Parking Spaces,
Tenant may be required to periodically execute parking agreements. Subject to
the terms of the second sentence of this Paragraph 17, Tenant shall pay parking
charges for all spaces provided for hereunder, whether or not Tenant does, in
fact, utilize such parking. If Tenant, at any time, fails to contract for, or
otherwise pay the parking charges relating to, any one or more of the spaces
being made available to Tenant under this Paragraph 17, and Tenant does not cure
any such failure within seven (7) days after its receipt of written notice
thereof from Landlord (each such parking space being referred to as a “Waived Space”), then, subject
to the terms of the second sentence of this Paragraph 17, Tenant shall forfeit
its rights relative to each such Waived Space, and Landlord shall have no
further obligation to offer such Waived Space to Tenant during the balance of
the Term of the Lease. Landlord shall not be liable to Tenant in damages or
otherwise under any circumstances for failure to provide parking if at any time
Landlord or the garage operator is legally restricted from operating a parking
garage or providing parking below the concourse level of the Building or
otherwise unable to do so for reasons beyond its reasonable control, and in no
event shall Tenant have any right to terminate the Lease due to Landlord’s
failure to make parking available as required under this Section. Spaces will
not be reserved for Tenant.
23
18. National
Holidays. It is agreed that the “National Holidays” described
in Section 1.03(20) of the Original Lease shall not include Xxxxxx Xxxxxx Xxxx
Day, President's Day or Veterans Day for purposes of Landlord's HVAC services
required under Section 6.01(a)(1) of the Original Lease.
19. After-Hours
HVAC Use. Without limitation of the terms of Section 6.03 of
the Original Lease, the following terms shall apply relative to after-hours HVAC
services:
(a) There
are no minimum hourly requirements for after-hours HVAC usage contiguous with
standard hours of operation. Non-contiguous requests shall have a minimum of
four (4) hours.
(b) Rates
for such overtime charges shall be based on the actual costs as reasonably
estimated by Landlord based on projected electrical usage, engineer salary and
fringe benefits, equipment maintenance and accelerated wear and
tear.
(c) For
information purposes, only, it is acknowledged that the current low-rise
after-hours HVAC charges, as of the Effective Date hereof, are $118 per hour for
heating and $140 per hour for cooling.
20. Holdover
Rent. The last two (2) sentences of Article Thirteen of the
Original Lease are hereby deleted and the following language is hereby
substituted therefor:
“In
addition to and without limiting any other rights and remedies which Landlord
may have on account of such holding over by Tenant, Tenant shall indemnify
Landlord from and against any and all damages suffered by Landlord on account of
such holding over by Tenant, including any damages and claims by tenants
entitled to future possession, subject to the further conditions set forth in
this Article Thirteen. Upon Tenant's written request, made at any time within
the last six (6) months of the Term, Landlord shall notify Tenant, within five
(5) business days after Landlord's receipt of such written request, of any then
current or proposed leasing agreements relative to the Premises (or any portion
thereof) for a term commencing following the termination of this lease, which
may give rise to indemnification obligations of Tenant pursuant to this Article
Thirteen (the “Affected Agreements”). If, following such Tenant request,
Landlord so notifies Tenant of any such Affected Agreements, then Tenant shall
not be obligated to indemnify Landlord for Landlord's consequential damages
unless such holdover continues for more than forty-five (45) days. If, following
such Tenant request, Landlord does not so notify Tenant of any such Affected
Agreements, then Tenant shall not be obligated to indemnify Landlord for
Landlord's consequential damages unless such holdover continues for more than
ninety (90) days (i.e., irrespective of whether Landlord has then entered into,
or thereafter enters into, any such Affected Agreements). No occupancy by Tenant
after the expiration or other termination of this lease shall be construed to
extend the Term, and Tenant's continued occupancy of the Premises shall be as
a
24
tenancy
at sufferance. The provisions of this Article Thirteen shall not be deemed to
limit or constitute a waiver of any rights or remedies of Landlord as provided
herein or at law or equity.”
21. Competitors. Landlord
hereby acknowledges and agrees that, for so long as the original named Tenant
hereunder and/or one or more permitted Affiliates under Article Ten of the Lease
are occupying at least 74,234 square feet of Rentable Area of the Premises being
demised from time to time under the Lease for the conduct of business therefrom,
then during the Term of the Lease (i.e., inclusive of any renewal or extension
of such Term as provided herein), Landlord shall not hereafter enter into any
lease for space in the lower elevator bank at the Building nor grant any
exterior signage rights upon the exterior of or upon any monument in front of
the Building, directly with or to any of the entities listed on Exhibit C to this Amendment
(the “Unpermitted
Tenants”). Landlord shall not be in
violation of the Paragraph 21 if any such Unpermitted Tenants succeeds to the
interest of any tenant of the Building or to any tenant's leasehold interest at
the Building following such time as Landlord has so entered into a lease or so
granted such exterior signage rights with or to the predecessor tenant. Subject
to the last sentence of this Paragraph 21, Tenant shall have the right, by
written notice delivered to Landlord, to substitute for any of the Unpermitted
Tenants then being listed on Exhibit C hereto a different entity (in which case
such revised list shall thereafter be deemed the “Umpermitted Tenants” under
this Paragraph 21); provided that any such new entity (i) shall be a competitor
of Tenant engaged in substantially the same business as that of the original
named Tenant hereunder; (ii) shall not be an entity that is then leasing or
subleasing space in the Building; and (iii) shall not be an entity which
Landlord is then negotiating with for space at the Building (as evidenced by the
execution of a written proposal, offer or letter of intent by such prospective
tenant); and provided further, that the addition of such entity to the list of
Unpermitted Tenants hereunder, and Landlord's agreements under the Paragraph 21
with respect thereto, shall not give rise to a violation by Landlord of any then
existing contractual or legal obligations of Landlord. If and to the extent that
Tenant so validly delivers notice to Landlord substituting a new Unpermitted
Tenant, as contemplated above, then, at the request of either Landlord or
Tenant, the parties shall enter into an amendment to this Lease substituting a
new Exhibit C for the exhibit then attached to this Lease. The restrictions set
forth in this Paragraph 21 shall not apply to any current tenant or occupant at
the Building or its affiliates. Further, Tenant may not substitute more than two
(2) Unpermitted Tenants on Exhibit C, in the aggregate, during the
Term.
22. Existing
Lease Allowance. Provided that Tenant is not otherwise in
default under the Lease at any time during a respective “Existing Lease Rent
Credit Month” (as hereinafter defined) which default has not been or is not
thereafter cured by Tenant in the time and manner described in the Lease after
written notice from Landlord, Tenant shall be entitled to be reimbursed from
Landlord an overall amount not exceeding the aggregate sum of $4,000,000.00 (the
“Existing Lease
Allowance”), payable monthly
commencing October, 2004 and continuing monthly until the first to occur of (i)
the entire Existing Lease Allowance having being disbursed or (ii) the date that
no further rents are due and owing under the Existing Lease (as hereinafter
defined) (each such calendar month, an “Existing Lease Rent Credit
Month”) in
the amount, for each such calendar month, that Tenant and/or its affiliate has
paid in rent for such month to its existing landlord under its existing lease
for space at 000 Xxxx Xxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx (said lease, as
existing as of the date hereof, a copy of which having heretofore
25
been
delivered by Tenant to Landlord, is referred to herein as the “Existing Lease”); provided
that (A) Tenant has delivered reasonable evidence to Landlord of Tenant's and/or
its affiliate's payment to its existing landlord of rental amounts attributable
to such Existing Lease Rent Credit Month for which Tenant is seeking credit
under this paragraph (herein, the “Payment Evidence”), and (B) in
no event shall the aggregate amount to be disbursed by Landlord under this
paragraph exceed $4,000,000.00 (and once Tenant has received reimbursement from
Landlord under this Paragraph of up to $4,000,000.00, Tenant shall no longer be
entitled to any further credit amounts under this paragraph), and (C) in no
event shall Landlord be obligated to disburse more than $148,150.00 under this
Paragraph 22 herein during any one Existing Lease Rent Credit Month, and (D)
Tenant shall remain responsible for all obligations of Tenant hereunder during
each of the Existing Lease Rent Credit Months, and provided further, that such
obligation of Landlord to disburse the Existing Lease Allowance shall not apply
for any Existing Lease Rent Credit Month during which Tenant, at any time, is
otherwise in (a) monetary default under the Lease (provided that if any such
monetary default is cured by Tenant in the time and manner described in the
Lease after written notice from Landlord, then Tenant shall again be entitled to
such disbursement in accordance with the other terms and conditions hereof) or
(b) non-monetary “Default” under the Lease (i.e., meaning a non-monetary default
which has not been cured by Tenant in the time and manner described in the Lease
after written notice from Landlord). Landlord shall make monthly payments of the
Existing Lease Allowance required under this Paragraph 22: (a) on or before the
10th
day of the calendar month next succeeding the calendar month in which Tenant
delivers the applicable corresponding Payment Evidence to Landlord, in the event
such Payment Evidence is so delivered on or before the 20th day of any given
calendar month, or (b) on or before the 10th
day of the second calendar month following the month in which Tenant delivers
the applicable corresponding Payment Evidence to Landlord, in the event such
Payment Evidence is so delivered following the 20th day of any given calendar
month (in either case, the “Outside Required Payment
Date”). Notwithstanding the forgoing, in the event Tenant and/or its
affiliate negotiates a one-time termination fee with its landlord under the
Existing Lease, then Tenant may notify Landlord of such occurrence, and upon
delivery of Payment Evidence to Landlord evidencing Tenant's and/or its
affiliate's payment of such termination fee, (1) the overall “Existing Lease
Allowance” required hereunder shall automatically be reduced to $3,649,571.00
(the “Discounted Existing Lease
Allowance”), and (2) Landlord shall reimburse Tenant, on or before the
corresponding Outside Required Payment Date relative to the delivery of such
Payment Evidence, an amount which is the lesser of (i) the amount paid to the
existing landlord as such termination fee, as evidenced by the Payment Evidence,
or (ii) the amount of (1) the Discounted Existing Lease Allowance less (2) all
payments of the Existing Lease Allowance theretofore made by Landlord, all in
accordance with the other terms and conditions for disbursement described in
this Paragraph 22. Without limitation of the foregoing, in the event Tenant has
not utilized the entire Existing Lease Allowance or Discounted Existing Lease
Allowance (as the case may be) at a time when no further payments are due and
owing under the Existing Lease, then in lieu of receiving such remaining
Existing Lease Allowance or such remaining Discounted Existing Lease Allowance
(as the case may be) to which Tenant would otherwise
be entitled hereunder, Tenant shall have the right to add such remaining
Existing Lease Allowance or Discounted Existing Lease Allowance (as the case may
be) to the “Allowance” amount otherwise provided for in Paragraph 9 of the
Workletter attached hereto as Exhibit B or to offset such Existing Lease
Allowance or Discounted Existing Lease Allowance (as the case may
be against Monthly Base Rent due under
26
the
Lease, subject, however to the following terms and conditions: (1) in no event
shall the Existing Lease Allowance or Discounted Existing Lease Allowance (as
the case may be) so offset against Monthly Base Rent Exceed $148,150.00 during
any one calendar month, and (2) in no event shall the overall sum of the
Existing Lease Allowance or Discounted Existing Lease Allowance (as the case may
be) so added to the “Allowance” or otherwise so offset against Monthly Base
Rent, together with the amount of Existing Lease Allowance and the Discounted
Existing Lease Allowance )as the case may be) previously disbursed by the
Landlord hereunder, exceed $4,000,000.00 in the aggregate (as it relates to the
Existing Lease Allowance) or $3,649,571.00 in the aggregate (as it relates to
the Discounted Existing Lease Allowance), as applicable, and (3) in no event
shall Tenant be entitled to an offset against Monthly Base Rent pursuant to this
Paragraph 22 in excess of $1,000,000.00 in the aggregate (and any excess of the
remaining unused Existing Lease Allowance or Discounted Existing Lease Allowance
(as the case may be) over $1,000,000.00 may, at Tenant’s option, be thereafter
added to the “Allowance” amount otherwise provided for in Paragraph 9 of the
Workletter attached hereto as Exhibit B), and (4) in no event shall Tenant be
entitled to an offset against Monthly Base Rent pursuant to this Paragraph at
any time prior to October 1, 2006, and (5) in no event shall Tenant be entitled
to any such offset against Monthly Base Rent under this Paragraph 22 during any
calendar month in which Landlord has otherwise disbursed any portion of the
Existing Lease Allowance or Discounted Existing Lease Allowance (as the case may
be) or during any calendar month in which Tenant, at any time, is otherwise in
default under the Lease, which default has not been or is not thereafter cured
by Tenant in the time and manner described in the Lease after written notice
from Landlord.
23. Inapplicable
Provisions. It is acknowledged and agreed that the following
provisions no longer apply, and are hereby deemed null and void:
(a) Original
Lease - Rider 2, except, however, for Paragraph 9 (entitled “Storage Space”)
thereof (as modified by Paragraph 3 of the First Amendment) (which Paragraph 9
of said Rider 2, as modified by Paragraph 3 of the First Amendment, shall
continue to apply during the Term of the Lease, as extended
hereby);
(b) First
Amendment - Paragraphs 4 and 5, together with Exhibit A to said First Amendment
(which Exhibit A was incorporated as Exhibit G to the Original
Lease);
(c) Second
Amendment - Paragraphs 6(c) and 13; and
(d) Generally
- Any further obligations of Landlord to disburse or give credit for any
allowance proceeds or other tenant improvement concessions of any nature under
the Lease, other than such allowance proceeds expressly required of Landlord
under this Amendment.
24. Intentionally
Omitted.
25. Guaranty. As
material consideration for the agreements of Landlord contained herein, and to
induce Landlord to enter into this Amendment, Tenant shall cause AECOM
Technology Corporation, a Delaware corporation, being the parent company of
Tenant and being benefited by this Amendment, to execute and deliver to Landlord
(concurrent with Tenant's
27
execution
and delivery of this Amendment to Landlord) that certain Guaranty in the form of
Exhibit D attached
hereto.
26. Real
Estate Brokers. Landlord and Tenant each represent and warrant
to the other that such party making the representation has not dealt with any
broker in connection with this Amendment other than Xxxxxxx & Xxxxxxxxx
(whose commissions shall be payable by Landlord pursuant to its separate written
commissions agreement with said broker). Landlord and Tenant each agree to
indemnify and hold the other harmless from all loss, damages, liabilities,
claims, costs and expenses (including reasonable attorneys' fees) arising from
any claims or demands of any other broker or brokers or finders with whom the
indemnifying party dealt for any commission alleged to be due such other broker,
brokers or finders.
27. Present
Status. Tenant certifies to Landlord that as of the execution
and delivery of this Amendment by both Tenant and Landlord, Landlord is not in
default under the Lease by reason of failure to perform any obligations
thereunder. Such certificate is given to the actual knowledge of
Tenant.
28. Entire
Agreement. The entire agreement of the parties with respect to
the subject matter hereof is set forth in this Amendment and in the Lease as
amended hereby. No prior agreement or understanding with respect to the Lease
and this Amendment shall be valid or of any force or effect.
29. Offer. This
Amendment shall not become effective as a lease or otherwise until executed and
delivered by both Landlord and Tenant. The submission of this Amendment to
Tenant does not constitute a reservation of or option for the Additional
Premises or for the renewal of the Term being effectuated hereby, except that,
upon execution and delivery by Tenant, it shall constitute an irrevocable offer
on the part of Tenant in effect for ten (10) business days to lease the
Additional Premises and extend the Term on the terms and conditions herein
contained.
30. Lease in
Full Force and Effect. Except as amended hereby, all the terms
and provisions of the Lease shall remain in full force and effect, and are
hereby ratified and confirmed. Without limitation of the foregoing, Section
26.08 of the Lease (as amended by Paragraph 6 of the First Amendment) shall
apply to this Amendment and to the Lease (as amended hereby).
[Signature Page to Follow]
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IN WITNESS WHEREOF, the
parties have entered into this Amendment as of the day and year first above
written.
TENANT:
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LANDLORD:
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XXXXXXX
XXXXXXXX
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303 XXXXXX REALTY L.L.C.,
a Delaware
|
||||||
ENVIRODYNE
ENGINEERS, INC.,
|
limited
liability company
|
||||||
a
Delaware corporation
|
|||||||
By:
|
Hines
Three Illinois Center Associates
|
||||||
Limited
Partnership,
|
|||||||
By:
/s/ Xxxxxxx X.
Crumrie
|
its
managing member
|
||||||
Name:
|
|||||||
Title:
|
By:
|
Xxxxx Three Illinois Center
L.L.C., a
|
|||||
general
partner
|
|||||||
ATTEST:
|
|||||||
By:
|
Xxxxx
Interests Limited
|
||||||
By:
/s/ Xxxxxx X.
Xxxxxxx
|
Partnership, a
member
|
||||||
Name:
Xxxxxx X.
Xxxxxxx
|
|||||||
Title:
Ass't.
Secretary
|
By:
Xxxxx Holdings,
Inc., its
|
||||||
general
partner
|
|||||||
By:
/s/ XX
Xxxxxxxxx
|
|||||||
Name:
Xxxxxxxxx
|
|||||||
Title: EVP
|
29
EXHIBIT
A
ADDITIONAL PREMISES
ADDITIONAL PREMISES
29,852
RSF on the 0xx Xxxxx
X-0
ADDITIONAL
PREMISES
13,293
RSF on the 10th Floor
A-2
EXHIBIT
B
INITIAL PREMISES WORKLETTER
AGREEMENT
THIS INITIAL PREMISES WORKLETTER
AGREEMENT is hereby incorporated as part of that certain Third Amendment
to Lease made and entered into as of the ____day of ______, 2004 by and between
303 XXXXXX REALTY
L.L.C., a Delaware limited liability
company ("Landlord"), and XXXXXXX XXXXXXXX ENVIRODYNE
ENGINEERS, INC.,
a Delaware corporation ("Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant
have entered into a certain Third Amendment to Lease to which this Workletter is
attached (the "Third Amendment"), which Third Amendment further amends a certain
Office Lease dated January 1, 1996, as amended by First Amendment dated
effective as of October 1, 1999 and by Second Amendment dated as of January 22,
2001 (collectively, the "Lease"; all capitalized terms used but not otherwise
defined herein shall have the same meaning as set forth in the Third Amendment
or in the balance of the Lease, as applicable); and
WHEREAS, pursuant to the Third
Amendment, Tenant will be leasing certain demised premises referred to therein
as the "Existing Premises" and the "Additional Premises" (collectively herein,
the "Premises") consisting of 117,379 square feet of Rentable Area located on
the 5th, 6th, 9th, 10th and 12th floors of the office building located at 000
Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx (the "Building"); and
WHEREAS, certain tenant
improvement work is to be completed on the Premises;
NOW, THEREFORE, for and in
consideration of the agreement to lease the Premises and pay rent and the mutual
covenants contained herein, the parties agree as follows:
1. POSSESSION. Tenant is currently in
possession of that portion of the Premises referred to in the Third Amendment as
the "Existing Premises". Landlord shall deliver possession of that portion of
the Premises referred to in the Third Amendment as the "Additional Premises" as
of the Turnover Date described in said Third Amendment.
2. TENANT'S
WORK. Tenant, at its sole cost
and expense, but subject to payment of the Allowance (as hereinafter defined) as
provided under Paragraph 9 below, shall perform, or cause to be performed, the
Tenant's Work (as defined in the Third Amendment) in the Premises provided for
in the Plans (as hereafter defined) submitted to and approved by Landlord. The
Tenant's Work shall be constructed in a good and workmanlike fashion, in
accordance with the requirements set forth herein and in compliance with all
applicable statutes, laws, ordinances, orders, codes, rules, regulations,
building and fire codes and other governmental requirements, including, without
limitation, the Americans with Disabilities Act and its regulations (the "ADA").
Landlord's review and approval of the Plans or any other submission of Tenant
shall create no responsibility or liability on the part of Landlord for such
compliance or for their
B-1
completeness
or design sufficiency. Tenant shall commence the construction of the Tenant's
Work promptly following completion of the pre-construction activities provided
for in Paragraph 3 below and shall diligently proceed with all such construction
in order to complete the Tenant's Work prior to the Additional Premises
Commencement Date (as defined in the Third Amendment) or as soon thereafter as
is reasonably practicable. Tenant shall coordinate the Tenant's Work so as avoid
interference with any other work being performed by or on behalf of Landlord and
other tenants at the Building.
3. PRE-CONSTRUCTION
ACTIVITIES.
(a) Prior
to commencing any of the Tenant's Work, Tenant shall submit the following
information and items to Landlord for Landlord's review and approval with
respect thereto:
(i) A
detailed construction schedule containing the major components of the Tenant's
Work and the time required for each, including the scheduled commencement date
of construction of the Tenant's Work, milestone dates and the estimated date of
completion of construction.
(ii) An
itemized statement of estimated construction costs, including permits and
architectural and engineering fees.
(iii) The
names and addresses of Tenant's contractors (and the contractor's subcontractors
as well as any vendors who will be delivering materials directly to the Building
site) to be engaged by Tenant for the Tenant's Work and of any construction
manager proposed to be engaged by Tenant for the Tenant's Work (collectively,
"Tenant's Contractors"). Landlord has the right to approve or disapprove
Tenant's Contractors, which approval shall not be unreasonably withheld or
delayed. Landlord shall give its approval or disapproval of the proposed
Tenant's Contractors designated by Tenant within ten (10) days after Tenant's
submittal thereof to Landlord. Tenant shall not employ as Tenant's Contractors
any persons or entities so disapproved by Landlord. If Landlord has
affirmatively approved only certain contractor(s) and/or subcontractor(s) from
Tenant's list, Tenant shall employ as Tenant's Contractors only those persons or
entities so approved. Landlord may, at its election, designate a list of
approved contractors for performance of work affecting electrical, mechanical,
plumbing or life safety systems ("Approved Building System Contractors"), from
which Tenant must select its contractors for such work. Without limitation of
the foregoing, Landlord hereby confirms that any of the contractors listed on
Attachment 1(a) hereto will be an approved general contractor for Tenant to
engage relative to the performance of the Tenant's Work and any of the
contractors listed on Attachment l(b) hereto shall be an Approved Building
System Contractor for Tenant or the general contractor to engage for performance
of work affecting electrical mechanical, plumbing or life safety systems. For
purposes hereof, the term "life safety systems" shall include the Building's
fire protection/sprinkler system, strobes, and speakers connected to the
Building's annunciator panel.
B-2
(iv) A
written statement from Tenant, acting in its capacity as architect for the
Tenant's Work, stating that Tenant has visited the site, inspected and verified
existing conditions as such conditions affect the Plans and construction of the
Tenant's Work.
(v) Certified
copies of insurance policies or certificates of insurance as hereinafter
described. Tenant shall not permit Tenant's Contractors to commence work until
the required insurance has been obtained and certified copies of policies or
certificates have been delivered to Landlord.
(vi) The
Plans for the Tenant's Work, which Plans shall be subject to Landlord's approval
in accordance with Paragraph 3(b) below.
Tenant
will update such information and items by notice to Landlord of any changes,
which changes shall be subject to Landlord's prior approval hereunder. Landlord
shall promptly (or as otherwise required by this Workletter) review all
submissions made by Tenant.
(b) As
used herein the term "Plans" shall mean full and detailed architectural and
engineering plans and specifications covering the Tenant's Work (including,
without limitation, architectural, mechanical, electrical, life safety, fire
protection and plumbing working drawings for the Tenant's Work). The Plans shall
include the minimum information shown on Attachment 2 attached hereto and
incorporated herein. Subject to the Allowance (as hereinafter defined) and the
Space Plan Allowance (as hereinafter defined), Tenant shall pay all costs and
expenses of preparing the Plans. The Plans shall be subject to Landlord's
approval (not to be unreasonably withheld) and the approval of all local
governmental authorities requiring approval, if any. Landlord shall give its
approval or disapproval (giving reasons in case of disapproval) of the Plans
within ten (10) business days after their delivery to Landlord. Landlord agrees
not to unreasonably withhold its approval of said Plans; provided, however, that
Landlord shall not be deemed to have acted unreasonably if it withholds its
consent because, in Landlord's reasonable opinion: (i) the Tenant's Work is
likely to adversely affect Building systems, the structure of the Building or
the safety of the Building and its occupants; (ii) the Tenant's Work would
adversely affect Landlord's ability to furnish services to Tenant or other
tenants; (iii) the Tenant's Work would increase the cost of operating the
Building (unless Tenant agrees to pay any such increased costs); (iv) the
Tenant's Work would violate any governmental laws, rules or ordinances; (v) the
Tenant's Work contains or would require the use of hazardous or toxic material
in any unlawful manner; (vi) the Tenant's Work would adversely affect (A) the
exterior appearance of the Building or (B) the interior appearance of the
Building if visible from the common corridors or other common or public areas on
any floor in which Tenant is not leasing the entire such floor as part of the
Premises; or (vii) the Tenant's Work would adversely affect another tenant's
premises. The foregoing reasons, however, shall not be exclusive of the reasons
for which Landlord may withhold consent, whether or not such other reasons are
similar or dissimilar to the foregoing. Landlord shall cooperate with Tenant by
discussing or reviewing preliminary plans and specifications at Tenant's request
prior to completion of the full, final detailed Plans in order to expedite the
preparation of and the subsequent approval process concerning the final Plans.
If Landlord notifies Tenant that changes are
B-3
required
to the final Plans submitted by Tenant, Tenant shall submit to Landlord, for its
approval, the Plans amended in accordance with the changes so required. Such
submission of revised Plans shall be accompanied by a written point by point
response from Tenant specifically responding to any disapprovals or other
responses delivered by Landlord to Tenant. Landlord shall give its approval or
disapproval (giving reasons in case of disapproval) of any such revised Plans
within five (5) business days after their delivery to Landlord. The Plans shall
also be revised, and the Tenant's Work shall be changed, to incorporate any work
required in the Premises by any local governmental field inspector. Landlord's
approval of the Plans shall in no way be deemed to be acceptance or approval of
any element therein contained which is in violation of any applicable statutes,
laws, ordinances, orders, codes, rules, regulations, building or fire codes or
other governmental requirements.
(c) Upon
Landlord's approval of the Plans, at Tenant's express written request, Landlord
shall designate in writing any affixed appurtenances which are part of Tenant's
Work which Tenant shall be required to remove upon the expiration of the Lease.
Any such agreement entered into in writing by Landlord shall be binding on
Landlord at expiration of the Lease.
(d) No
Tenant's Work shall be undertaken or commenced by Tenant in the Premises
until:
(i) The
Plans for the Premises have been submitted to and approved by Landlord (which
approval shall not be unreasonably withheld or delayed as provided in Section
3(b) hereinabove).
(ii) All
necessary building permits have been obtained by Tenant.
(iii) All
required insurance coverages have been obtained by Tenant, it being understood
that failure of Landlord to receive evidence of such coverage upon commencement
of the Tenant's Work shall not waive Tenant's obligations to obtain such
coverages.
(iv) Items
required to be submitted to Landlord prior to commencement of construction of
the Tenant's Work have been so submitted and have been approved, where
required.
(e) Tenant,
at Tenant's option, may retain Landlord as construction manager for all or any
portion of Tenant's Work, if Landlord agrees to perform such construction
management services. In the event that Tenant elects to retain Landlord as
construction manager and Landlord agrees to perform such construction management
services, Tenant and Landlord shall, at Landlord's request, enter into
Landlord's standard form of workletter or tenant construction agreement for
similar work in the Building, subject to Tenant's approval thereof and with
mutually agreed upon changes thereto and with agreed-upon fees payable to
Landlord in connection therewith in the amount of three percent (3%) of the
"hard" costs associated with the applicable Tenant's Work. In the event Tenant
does not so engage Landlord as construction manager, then Tenant
shall
B-4
have the
right to retain its own construction manager or general contractor for
construction of the Tenant's Work, subject to Landlord's reasonable approval as
provided herein, whereupon Landlord shall not be entitled to any general
coordination/supervision fee relative to the Tenant's Work, except as expressly
provided in Paragraph 5 below.
4. DELAYS.
In the event Tenant fails to deliver or deliver in sufficient and accurate
detail the information required under Paragraph 3 on or before the respective
dates specified in said paragraph, or in the event Tenant, for any reason, fails
to complete the Tenant's Work on or before the Additional Premises Commencement
Date, Tenant shall be responsible for Monthly Additional Premises Base Rent,
Additional Premises Rent Adjustments and all other obligations as set forth in
the Third Amendment and the balance of the Lease from the Additional Premises
Commencement Date, regardless of the degree of completion of the Tenant's Work
on such date, and no such delay in completion of the Tenant's Work shall affect
the Additional Premises Commencement Date, or relieve Tenant of any of its
obligations under the Third Amendment or the balance of said Lease.
Notwithstanding any of the foregoing, if the Tenant's Work being performed
within the Additional Premises (as defined in the Third Amendment) (herein the
"Additional Premises Tenant's Work") is not substantially completed on or before
the later of (i) the stated Additional Premises Commencement Date of October 1,
2004, and (ii) the date set forth in Tenant's construction schedule delivered
under Paragraph 3(a)(i) as the scheduled date for completion of the Additional
Premises Tenant's Work (herein, the "Target Date"), and if any such delay in
substantial completion of the Additional Premises Tenant's Work is attributable
to Landlord Delay (as hereinafter defined) or a Contractor Strike Delay (as
hereinafter defined), then the Additional Premises Commencement Date shall be
extended by the period of delay in the Tenant's Work beyond the Target Date
which was attributable to the Landlord Delay or the Contractor Strike Delay
(i.e., as opposed to being attributable to any other matter causing such delay).
As used herein, the term "Landlord Delay" means Landlord's delay in responding
to Tenant's Plans or Tenant's request for approval of Tenant's Contractors, as
and when required under Paragraph 3(a)(iii) and/or Paragraph 3(b) hereof, or any
default by Landlord of its obligations hereunder, in any case to the extent
delaying substantial completion of the Additional Premises Tenant's Work. For
purposes hereof, the term "Contractor Strike Delay" shall mean any delay in
substantial completion of the Additional Premises Tenant's Work resulting from
(a) a strike or organized labor work stoppage of all Approved Building System
Contractors designated by Landlord under Paragraph 3(a)(iii) above (which strike
or work stoppage was not caused in whole or in part by Tenant or its contractors
or any actions of said parties), and (b) Landlord's failure, within three (3)
business days after written notice from Tenant of the situation described in
subclause (a), to either (i) designate one or more other Approved Building
System Contractors who are not then on strike or involved with any other
organized work stoppage, or (ii) expressly allow Tenant to engage its own such
contractors to perform any of Tenant's Work affecting Building systems (subject,
however, to Landlord's reasonable approval of said contractors as provided
herein). Landlord Delay or Contractor Strike Delay shall not include any delay
in substantial completion of the Additional Premises Tenant's Work that would in
any event (i.e., even if the Landlord Delay or Contractor Strike Delay had not
occurred) have resulted from other causes. Tenant shall notify Landlord, in
writing, of any claim for Landlord Delay or Contractor Strike Delay, which
notice shall be delivered within five (5) business days following receipt by
Tenant or its contractors or other representatives of knowledge of the event
claimed by Tenant to give rise to such Landlord Delay
B-5
or
Contractor Strike Delay (time being of the essence); Tenant's failure to notify
Landlord within said five (5) business days shall be deemed a waiver of the
subject claim of delay.
5. CHARGES
AND FEES. Subject to Paragraph 9
below, Tenant shall be responsible for all costs and expenses attributable to
the Tenant's Work, including payment to Landlord of a supervisory fee equal to
the amount of all out-of-pocket costs and expenses incurred by Landlord in
reviewing the Plans and other submittals hereunder (e.g., third party structural
and MEP engineering review), which fee shall not, in any event, exceed the
amount of $15,000.00, and which payment to Landlord shall be made within thirty
(30) days following Landlord's request therefor from time to time. Except as
provided in the preceding sentence or as otherwise provided in Paragraph 3(e)
above, Landlord shall not be entitled to any additional supervision fee relative
to the Tenant's Work.
6. CHANGE
ORDERS. All
changes (other than deminimius changes based on field conditions as more
particularly described in Paragraph 7(k) below) to the final Plans requested by
Tenant must be approved by Landlord in advance of the implementation of such
changes as part of the Tenant's Work. Subject to Paragraph 9 below, Tenant shall
be responsible for all costs and expenses attributable to any changes, including
a supervisory fee to Landlord in an amount equal to the amount of all
out-of-pocket costs and expenses incurred by Landlord in reviewing the change
order request and related materials (which payment to Landlord shall be made
within thirty (30) days following Landlord's request therefor from time to time)
or such other amount as provided in Paragraph 3(e) above if applicable. All
delays caused by Tenant initiated change orders, including, without limitation,
any stoppage of work during the change order review process, are solely the
responsibility of Tenant and shall cause no delay in the Additional Premises
Commencement Date, or payment of Monthly Additional Premises Base Rent,
Additional Premises Rent Adjustments and performance of all other obligations
set forth in the Third Amendment or the balance of the Lease.
7. STANDARDS
OF DESIGN AND CONSTRUCTION AND CONDITIONS OF TENANT'S
PERFORMANCE. All work done in or upon
the Premises by Tenant shall be done according to the standards set forth in
this Paragraph 7, except as the same may be modified in the Plans approved by
both Landlord and Tenant
(a) Tenant's
Plans and all design and construction of the Tenant's Work shall comply with all
applicable statutes, ordinances, regulations, laws, codes and industry
standards, including, but not limited to, requirements of Landlord's fire
insurance underwriters and the requirements of the ADA (i.e., as such ADA
requirements pertain to the space within the Premises, and not to any areas
external thereto). Approval by Landlord of the Plans shall not constitute a
waiver of this requirement or assumption by Landlord of responsibility for
compliance. Where several sets of the foregoing laws, codes and standards must
be met, the strictest shall apply where not prohibited by another law, code or
standard.
(b) Tenant
shall, at its own cost and expense, but subject to payment by Landlord of the
Allowance under Paragraph 9 below, obtain all required building permits and,
when construction has been completed, shall, at its own cost and expense, obtain
an occupancy permit for the Premises, which shall be delivered to Landlord.
Tenant's
B-6
failure
to obtain such permits shall not cause a delay in the Additional Premises
Commencement Date, or the payment of Monthly Additional Premises Base Rent,
Additional Premises Rent Adjustments and performance of all other obligations
under the Third Amendment or the balance of the Lease.
(c) Tenant's
Contractors shall be licensed contractors, possessing good labor relations,
capable of performing quality workmanship and working in harmony with Landlord's
contractors and subcontractors and with other contractors and subcontractors in
the Building. All work shall be coordinated with any other construction or other
work in the Building in order not to adversely affect construction work being
performed by or for Landlord or its tenants, it being understood that in the
event of any conflict, Landlord and its contractors and subcontractors shall
have priority over Tenant and Tenant's Contractors; provided, however,
notwithstanding such priority, Landlord shall not unreasonably inhibit Tenant's
Contractors from performing their work.
(d) Landlord
shall have the right, but not the obligation, upon not less than 72 hours' prior
written notice thereof to Tenant (provided that no such notice shall be required
in the event of an emergency), to perform, on behalf of and for the account of
Tenant, subject to reimbursement by Tenant (provided that the Allowance may be
used for such purposes), any work (i) which Landlord deems necessary to be done
on an emergency basis or (ii) which pertains to structural components, building
systems, the general utility systems for the Building or connecting the Tenant's
Work with any other work in the Building (but only to the extent the Tenant's
Work impacts the structural components of the Building or any Building systems,
and Landlord, in good faith determines that action is warranted), or (iii) which
pertains to the erection of temporary safety barricades or signs during
construction.
(e) Tenant
shall use only new, quality materials in the Tenant's Work, except where
explicitly shown in the Plans approved by Landlord and Tenant. Tenant shall
obtain, promptly after completion of the Tenant's Work, warranties of at least
one (1) year duration from the completion of the Tenant's Work against defects
in workmanship and materials on all work performed and equipment installed in
the Premises as part of the Tenant's Work, a copy of which warranties shall be
delivered to Landlord upon Tenant's receipt of the same. It is acknowledged that
the foregoing required warranties, to the extent issued by the general
contractor, shall satisfy the minimum requirements of this Paragraph
7(e).
(f) Tenant
and Tenant's Contractors, in performing work, shall do so in conformance with
the "303 East Xxxxxx Drive Contractor Regulations and Guidelines for Tenant
Improvements" (a copy of which has heretofore been made available to Tenant) and
shall not unreasonably interfere with other tenants and occupants of the
Building. Tenant and Tenant's Contractors shall make all reasonable efforts and
take all reasonable steps appropriate to construction activities undertaken in a
fully-occupied first-class office building so as not to interfere with the
operation of the Building and shall, in any event, comply with all other
reasonable rules and regulations existing from time to time at the Building.
Tenant and Tenant's Contractors shall take all reasonable precautionary steps to
minimize dust, noise and construction traffic, and to protect their facilities
and
B-7
the
facilities of others affected by the Tenant's Work and to properly police same.
Tenant shall not permit noise from construction of Tenant's Work to unreasonably
or materially disturb other tenants in the Building. Tenant's Work which does so
unreasonably or materially disturb other tenants shall be performed after
regular working hours. Construction equipment and materials are to be kept
within the Premises and delivery and loading of equipment and materials shall be
done at such locations and at such time as Landlord shall direct so as not to
burden the construction or operation of the Building.
(g) Landlord
shall have the right, upon 24 hours' prior written notice to Tenant (except that
no notice shall be required in the case of an emergency), to order Tenant or any
of Tenant's Contractors who violate the requirements imposed on Tenant or
Tenant's Contractors as set forth herein in performing work to cease work and
remove its equipment and employees from the Building. No such action properly
exercised by Landlord shall delay the Additional Premises Commencement Date, or
the payment of Monthly Additional Premises Base Rent, Additional Premises Rent
Adjustments and performance of all other obligations under the Third Amendment
or the balance of the Lease.
(h) Utility
costs or charges for any service (including, but not limited to, HVAC,
electrical, and the like) to the Additional Premises (as defined in the Third
Amendment) shall be the responsibility of Tenant from the date Tenant is
obligated to commence or commences the Tenant's Work and shall be paid for by
Tenant at Landlord's rates; provided that Tenant shall not be responsible for
any usage charges for HVAC to the Additional Premises during standard building
office hours at any time prior to the Additional Premises Commencement Date.
Tenant shall not be responsible for any usage charges for freight elevator
service during standard building office hours at any time prior to the
Additional Premises Commencement Date. Tenant shall apply and pay for all
utility meters required. Tenant shall remain responsible for utility costs and
other charges associated with the Existing Premises (as defined in the Third
Amendment) as and to the extent otherwise provided in the Lease. Use of freight
elevators is subject to scheduling by Landlord. Any use of the freight elevators
outside of normal building office hours will be at Tenant's expense, in an
amount equal to one hundred six percent (106%) of the out-of-pocket expenses
incurred by Landlord relative to security personnel or union operators
necessitated by such after-hours freight elevator usage. Tenant shall arrange
and pay for removal of construction debris and shall not place debris in the
Building's waste containers.
(i) Tenant
shall permit access to the Premises, and the Tenant's Work shall be subject to
inspection, by Landlord and Landlord's architects, engineers, contractors and
other representatives, at all times during the period in which the Tenant's Work
is being constructed and installed and following completion of the Tenant's
Work.
(j) Tenant
shall proceed with its work expeditiously, continuously and efficiently, from
the date Landlord tenders possession of the Additional Premises to Tenant for
the construction of the Tenant's Work. Tenant shall notify Landlord upon
substantial completion and upon final completion of the Tenant's Work and shall
furnish
B-8
Landlord
and Landlord's title insurance company with such further documentation as may be
necessary under Paragraph 9 below.
(k) Tenant
shall have no authority to deviate from the Plans in performance of the Tenant's
Work, except as authorized by Landlord and its designated representative in
writing and except for deminimus changes based on field conditions and not
affecting the overall basic design and construction evidenced by such Plans and
not impacting the base Building systems or structural components of the
Building. Tenant shall furnish to Landlord "as-built" drawings of the Tenant's
Work consisting of record drawings of the installed condition of each component
of the Tenant's Work completed from the Plans marked up daily in the field by
the various trades. Such record drawings shall be submitted in a final package
by Tenant's general contractor to Landlord within ninety (90) days after
completion of the Tenant's Work. Final disbursement of any remaining amounts of
the Allowance will not occur until such record drawings have been received by
Landlord (the "Record Drawing Allowance Condition"); provided that if all other
conditions hereunder to the final disbursement of the Allowance have been
satisfied, then Landlord shall not withhold more than two percent (2%) of the
total Allowance being contributed hereunder as a result of the Record Drawing
Allowance Condition having not yet been satisfied.
(1) Landlord
shall have the right to require Tenant to install and maintain proper access
panels to utility lines, pipes, conduits, duct work and component parts of
mechanical and electrical systems existing or installed in the Premises in
accordance with the Lease.
(m) Tenant
shall impose on and enforce all applicable terms of this Workletter against
Tenant's Architect, Tenant's Engineer and the Tenant's Contractors.
8. INSURANCE
AND INDEMNIFICATION.
(a) In
addition to any insurance which may be required under the Lease, Tenant shall
secure, pay for and maintain or cause Tenant's Contractors to secure, pay for
and maintain during the continuance of construction and fixturing work within
the Building or Premises, insurance in the following minimum coverages and
limits of liability:
(i) Worker's
Compensation and Employer's Liability Insurance with limits of not less than
$1,000,000.00, or such higher amounts as may be required from time to time by
any employee benefit acts or other statutes applicable where the work is to be
performed, and in any event sufficient to protect Tenant's Contractors from
liability under the aforementioned acts.
(ii) Commercial
General Liability Insurance including Broad Form Contractual, Broad Form
Property Damage, Personal Injury, Completed Operations and Products coverages
(such Completed Operations and Products shall be provided for a period of three
(3) years after the date of final acceptance of the Tenant's Work), and deletion
of any exclusion pertaining to explosion,
B-9
collapse
and underground property damage hazards, with limits of not less than
$10,000,000.00 per occurrence and having a general aggregate amount on a per
location basis of not less than $10,000,000.00.
(iii) Comprehensive
Automobile Liability Insurance including Owned, Non-Owned and Hired Car
coverages, with limits of not less than $2,000,000.00 combined single limit for
both bodily injury and property damage.
(iv) "All-risk"
builder's risk insurance upon the entire Tenant's Work to the full insurable
value thereof. This insurance shall include the interests of Landlord and Tenant
(and their respective contractors and subcontractors of any tier to the extent
of any insurable interest therein) in the Tenant's Work and shall insure against
the perils of fire and extended coverage and shall include "all-risk" builder's
risk insurance for physical loss or damage including, without duplication of
coverage, theft, vandalism and malicious mischief. If any portion of the
Allowance has been disbursed with respect to portions of the Tenant's Work which
are stored off the site of the Building or in transit to said site, then to the
extent such portions of the Tenant's Work are not covered under said "all-risk"
builder's risk insurance, Tenant shall secure and maintain similar property
insurance on such portions of the Tenant's Work. Any loss insured under said
"all-risk" builder's risk insurance is to be adjusted between Landlord and
Tenant and made payable to Landlord as trustee for the insureds, as their
interests may appear.
All
policies (except the worker's compensation policy) shall be endorsed to include
as additional insured parties Landlord and its partners, directors, officers,
members, employees and agents, Landlord's contractors, Landlord's architects,
and such additional persons as Landlord may designate. The waiver of subrogation
provisions contained in the Lease shall apply to all insurance policies (except
the worker's compensation policy) to be obtained by Tenant pursuant to this
paragraph. The insurance policy endorsements shall also provide that all
additional insured parties shall be given thirty (30) days' prior written notice
of any reduction, cancellation or non-renewal of coverage (except that ten (10)
days' notice shall be sufficient in the case of cancellation for non-payment of
premium) and shall provide that the insurance coverage afforded to the
additional insured parties thereunder shall be primary to any insurance carried
independently by said additional insured parties. Additionally, where
applicable, each policy shall contain a cross-liability and severability of
interest clause.
(b) Without
limitation of the indemnification provisions contained in the Lease, to the
fullest extent permitted by law Tenant agrees to indemnify, protect, defend and
hold harmless Landlord, its partners, directors, officers, employees and agents,
from and against all claims, liabilities, losses, damages and expenses of
whatever nature arising out of or in connection with the Tenant's Work or the
entry of Tenant, Tenant's Architect, Tenant's Engineer or Tenant's Contractors
into the Building and the Premises, including, without limitation, mechanic's
liens or the cost of any repairs to the Premises or Building necessitated by
activities of Tenant, Tenant's Architect, Tenant's Engineer or Tenant's
Contractors and bodily injury to persons or damage to the property of Tenant,
its employees, agents, invitees, licensees or others, except and to the extent
that such claims,
B-10
liabilities,
losses, damages and expenses arise out of the negligent act or omission of
Landlord. It is understood and agreed that the foregoing indemnity shall be in
addition to the insurance requirements set forth above and shall not be in
discharge of or in substitution for same or any other indemnity or insurance
provision of the Lease.
9. ALLOWANCE;
PERIODIC PAYMENTS.
(a) Landlord
shall make a contribution (the "Allowance") towards the "hard costs" and the
"soft costs" of Tenant's Work (as such terms are hereinafter defined), in an
amount equal to $3,011,645.00 (i.e., being approximately $25.66 per square foot
of Rentable Area of the Premises), on the terms and conditions hereinafter set
forth. If the cost of the Tenant's Work exceeds the Allowance, Tenant shall have
sole responsibility for the payment of such excess cost, and shall pay any such
excess when due from time to time (i.e., based on estimates from time to time of
the total cost of the Tenant's Work) prior to any further disbursement of the
Allowance. It is acknowledged that Landlord intends that not less than
$2,307,371.00 (i.e., being approximately $19.66 per square feet of Rentable Area
of the Premises) of the overall Allowance be contributed to so-called "hard"
construction costs for the Tenant's Work (which "hard" construction costs, for
purposes hereof, shall include all costs and fees payable under the construction
contract with Tenant's general contractor or under any other construction
contracts entered into by Tenant relative to the construction of the Tenant's
Work, together with all costs associated with permits and other governmental
approvals, the "supervisory fees" payable to Landlord under Paragraph 5 hereof,
and all costs associated with the installation of telephone and cabling lines
into the walls of the Premises), and it is hereby agreed that no more than
$704,274.00 (i.e., being $6.00 per square foot of Rentable Area of the Premises)
of the overall Allowance (herein, the "Available Soft Cost Contribution") may be
applied by Tenant to pay for so-called "soft" costs associated with Tenant's
construction of the Tenant's Work, including moving/relocation to the Premises
(which "soft" costs, for purposes hereof, shall include all architectural and
engineering costs and fees, moving expenses, relocation costs, consulting fees
and other reimburseable expenses; all costs of furniture, fixtures and
equipment; telephone and cabling costs associated with the interior of the
Premises; and all other costs and expenses paid by Tenant to Landlord hereunder,
other than the "supervisory fees" specifically set forth in Paragraph 5 of this
Agreement).
(b) Periodically,
but not more frequently than once per month, Tenant may submit to Landlord a
payment request for costs of the Tenant's Work incurred and not previously paid
naming the parties to be paid and the respective amounts of such payments, which
payment request shall be accompanied by:
(i) A
statement in writing under oath signed by Tenant stating the various contracts
entered into by Tenant for the Tenant's Work and with respect to each: the total
contract price of all labor, work, services and materials; the amounts
theretofore paid thereon; the amount requested for the current disbursement; and
the balance due for such labor, work, services and materials, after payment of
the current disbursement, to complete the Tenant's Work in accordance with the
Plans;
B-11
(ii) A
written application for payment from each of Tenant's Contractors disclosed in
the aforesaid sworn Tenant's statement wherein each of Tenant's Contractors
certifies completion and the cost of that portion of the Tenant's Work for which
payment is requested and further certifies that the cost to complete the
Tenant's Work remaining to be done under said contract will not exceed the
balance due thereunder (without including in such balance any required
retainages) and a statement in writing under oath or verified by affidavit of
Tenant's Contractor stating: the names of all persons, firms, associations,
corporations or other parties by whom labor, materials, services or work will he
rendered or furnished pursuant to the contract with Tenant's Contractor; the
nature of labor, work, services and materials to be rendered or furnished by
each of the foregoing; the amounts (in the case of firm subcontracts) and
estimated amounts (in other cases) to be paid for such labor, work, services and
materials; the amounts theretofore paid thereon; the amount requested for the
current disbursement; and the balance due for such labor, work, services and
materials, after payment of the current disbursement, to complete the work
described in such subcontract;
(iii) A
statement from each of the subcontractors and materialmen disclosed in the
aforesaid Tenant's Contractor's sworn statement, in writing under oath or
verified by affidavit of a duly authorized agent of such subcontractor of the
parties furnishing materials and labor to it or for their account, and of the
amounts due or to become due each;
(iv) Certificate
for payment executed by Tenant, acting in its capacity as the architect for the
Tenant's Work, on American Institute of Architect's Form G-703;
(v) Originals
of partial waivers of lien from each of Tenant's Contractors and all materialmen
and vendors requesting payment covering such requested payment; and
(vi) Evidence
reasonably satisfactory to Landlord that Tenant has paid or will pay,
simultaneous with payment by Landlord, Tenant's required share of the costs of
the Tenant's Work.
Provided
that the foregoing deliveries have been made, and so long as Tenant is not then
in default hereunder or under the Lease, Landlord shall disburse portions of the
Allowance in the amount of the requested disbursement no later than thirty (30)
days after each such request therefor.
(c) Landlord
may make payments of the Allowance through a construction escrow established
with Landlord's title insurance company pursuant to which escrow said title
company shall examine the sworn statements and lien waivers provided by Tenant
and Tenant's Contractors and, if so required by Landlord, insure against
mechanic lien claims for work done through the date of Tenant's Contractors'
most recent request for payment, in which case Tenant agrees to comply with the
reasonable terms and
B-12
conditions
of such construction escrow. The escrowee's charges therefor shall be deemed
part of the costs of the Tenant's Work. Notwithstanding anything to the contrary
contained herein or in the Lease, in the event Landlord makes payments of the
Allowance through a construction escrow as provided in this paragraph, Tenant's
Contractors may, at their own expense, arrange to provide "trailing" waivers
(lien waivers which are dated up to thirty (30) days earlier than the
contractor's request for payment) if Landlord's lender so permits and Landlord's
title insurance company nevertheless provides the insurance called for by this
paragraph.
(d) Within
thirty (30) days after final completion and installation of the Tenant's Work,
Tenant shall submit to Landlord a detailed breakdown of the total amount of the
costs of the Tenant's Work, together with final waivers of liens, contractors'
affidavits, and architects' certificates in such form as may be reasonably
required by Landlord, Landlord's title insurance company and Landlord's lender,
if any, from all parties performing labor or supplying materials or services in
connection with the Tenant's Work, showing that all of said parties have been
compensated in full and waiving all liens in connection with the Premises and
Building.
(e) Landlord
has no obligation to disburse any portion of the Allowance during any period
when Tenant is in (A) monetary default hereunder or under the Lease (provided
that if Tenant cures any such monetary default in the time and manner provided
in the Lease after written notice from Landlord, then Tenant shall again be
entitled to disbursement of the Allowance in accordance with the other terms and
conditions set forth herein) or (B) non-monetary "Default" hereunder or under
the Lease (i.e., meaning a non-monetary default which has not been cured by
Tenant in the time and manner described in the Lease after written notice from
Landlord). Disbursement of any portion of the Allowance shall not be deemed a
waiver of Tenant's obligation to comply with such provisions. Tenant shall be
responsible for the appropriateness and completeness of the contractors'
affidavits and waivers of lien and approval of any of such work; Landlord shall
have no responsibility for any of the foregoing.
(f) Landlord
shall have the right to withhold a 10% retainage from the Allowance until final
disbursement of the Allowance is due hereunder (subject, however, to the terms
of Paragraph 7(k) above). Subject to Paragraph 7(k) above, Landlord shall make
final disbursement of the Allowance, upon Tenant's satisfaction of the terms of
Paragraphs 9(b) and 9(d) above and Tenant's final request for payment (which
request shall be made no earlier than the Additional Premises Commencement Date)
and certification that the entire Tenant's Work has been performed and that the
amounts for which payment is requested are due and owing, which disbursement
shall be made within thirty (30) days after presentation by Tenant to Landlord
of request for payment and appropriate and complete contractor's affidavits and
waivers of lien showing that the work covered thereby has been performed in the
Premises.
(g) In
the event that the cost of Tenant's Work and such other items for which the
Allowance may be applied should for any reason be less than the full amount of
the Allowance, Tenant shall be entitled to receive such difference as a credit
against Monthly Base Rent for the Premises next coming due under the Lease;
provided that Tenant shall
B-13
not be so
entitled to any portion of such difference exceeding $1,467,237.50 (i.e., being
$12.50 per square foot of Rentable Area of the Premises), and in no event shall
such credit against Monthly Base Rent exceed $733,618.75 (i.e., being $6.25 per
square foot of Rentable Area) in any one calendar year.
(h) Without
limitation of the foregoing terms regarding the "Allowance" due and owing from
Landlord hereunder, Landlord hereby agrees to make the following contribution
(the "Space Plan Allowance") pursuant to the following terms and
conditions:
(i) A
contribution toward the fees and costs due and owing from Tenant to its space
planner in connection with the preparation of the initial space plans (and up to
two (2) revisions thereof) for Tenant's Work in the amount not to exceed
$4,314.50 (i.e., being $.10 per square foot of Rentable Area of the Additional
Premises, as defined in the Third Amendment).
Within
thirty (30) days following submission by Tenant to Landlord of a payment request
with respect to the Space Plan Allowance, which request shall include a copy of
the invoice(s) showing amounts due and owing to Tenant's space planner in
connection with said space plans, or an invoice showing the fees and costs
expensed internally by Tenant or one of its Affiliates to prepare the space
plan, and, if requested by Landlord, a lien waiver from said space planner
showing that all amounts so due and owing in connection with the preparation of
the space plans have been fully paid, Landlord shall disburse the Space Plan
Allowance to Tenant or, at Tenant's direction, directly to the aforedescribed
space planner. Landlord has no obligation to disburse any portion of the Space
Plan Allowance during any period when Tenant is in (A) monetary default
hereunder or under the Lease or under any Tenant Construction Agreement
applicable to the Tenant's Work (provided that if Tenant cures any such monetary
default in the time and manner provided in the Lease after written notice from
Landlord, then Tenant shall again be entitled to disbursement of the Space Plan
Allowance in accordance with the other terms and conditions set forth herein),
or (B) non-monetary "Default" hereunder or under the Lease or under any Tenant
Construction Agreement applicable to the Tenant's Work (i.e., meaning a
non-monetary default which has not been cured by Tenant in the time and manner
described in the Lease after written notice from Landlord). Disbursement of any
portion of the Space Plan Allowance shall not be deemed a waiver of Tenant's
obligation to comply with such provisions. In the event that the fees and costs
payable by Tenant to its space planner in connection with preparation of the
foregoing space plans is, for any reason, less than the full amount of the Space
Plan Allowance, then Tenant shall not be entitled to receive any such
difference. In the event that the foregoing fees and costs are greater than the
Space Plan Allowance, Tenant shall be fully responsible for the payment of all
such excess costs and fees.
10. MISCELLANEOUS.
(a) Except
as herein expressly set forth or in the Lease, Landlord has no agreement with
Tenant and has no obligation to do any work with respect to the
Premises.
(b) Time
is of the essence under this Workletter
B-14
(c) [Intentionally
Omitted]
(d) If
Tenant fails to make any payment relating to the Tenant's Work as required
hereunder, Landlord, at its option, may complete the Tenant's Work pursuant to
the approved Plans and continue to hold Tenant liable for the costs thereof and
all other costs due to Landlord. Tenant's failure to pay any amounts owed by
Tenant hereunder when due, which failure continues for ten (10) business days
after written notice to Tenant of such failure, or Tenant's failure to perform
any other obligations hereunder, which failure continues for fifteen (15)
business days after written notice to Tenant of such failure (which 15-business
day period shall be extended for the time reasonably required to complete such
cure, not to exceed, in any event, an additional seventy-five (75) day period,
if such failure cannot reasonably be cured within said 15-business day period
and Tenant commences to cure such failure within said 15-business day period and
thereafter diligently and continuously proceeds to cure such failure), shall, in
each such case, also constitute a Default under the Lease and Landlord shall
have all the rights and remedies granted to Landlord under the Lease for
nonpayment of any amounts owed thereunder or failure by Tenant to perform its
obligations thereunder.
(e) Notices
under this Workletter shall be given in the same manner as under the
Lease.
(f) The
liability of Landlord hereunder or under any amendment hereto or any instrument
or document executed in connection herewith shall be limited as provided in
Section 26.08 of the Lease.
(g) The
headings set forth herein are for convenience only.
(h) This
Workletter and the Lease sets forth the entire agreement of Tenant and Landlord
regarding the Tenant's Work. This Workletter may only he amended if in writing,
duly executed by both Landlord and Tenant.
(i) Tenant
shall act as architect (sometimes referred to herein as "Tenant's Architect")
for purposes of preparing the architectural portions of the Plans for the
Tenant's Work and Tenant shall also act as engineer (sometimes referred to
herein as "Tenant's Engineer") for purposes of preparing the mechanical,
plumbing, electrical, fire protection and life safety portions of the
Plans.
(j) Except
for the "Premises" as defined herein, this Agreement shall not be deemed
applicable to any additional space added to the leased premises under the Lease
at any time or from time to time, whether by any options under the Lease or
otherwise, or to any portion of the leased premises under the Lease or any
additions thereto in the event of a renewal or extension of the original term of
the Lease, whether by any options under the Lease or otherwise, except as
expressly provided in any amendment or supplement to the Lease.
11. DESIGNATED
REPRESENTATIVES: COOPERATION.
B-15
(a) Landlord
and Tenant shall each appoint one qualified and readily available representative
with the authority to give and receive notices, other materials and information
relating to the Tenant's Work, and approvals under this Agreement. Initially,
Landlord's representative shall be Xxxxxxx Xxxxxx, whose address is c/o Hines
Interests Limited Partnership, 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx 00000
and whose telephone number is (000) 000-0000, and Tenant's representative shall
be Xxxxxxx X. Xxxxxxxx, whose address is c/o Consoer Xxxxxxxx Envirodyne
Engineers, Inc., 000 Xxxx Xxxxxx Xxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxxx 00000 and
whose telephone number is (000) 000-0000.
(b) Tenant
and Landlord agree to make their respective architects and engineers available
to the other to answer questions and provide clarifications and additional
information as is reasonable for the timely progress and completion of the
Tenant's Work.
[END OF WORKLETTER - ATTACHMENTS
FOLLOW]
B-16
ATTACHMENT 1(a) TO
WORKLETTER
APPROVED GENERAL
CONTRACTORS
1.
|
Xxxxx
Construction
|
2.
|
Interior
Construction Group
|
3.
|
Xxxxx
Construction
|
4.
|
Xxxxxx
Construction
|
5.
|
The
McClier Corporation
|
B-17
ATTACHMENT 1(b) TO
WORKLETTER
APPROVED BUILDING SYSTEM
CONTRACTORS
Mechanical -
Controls
|
Siemens
Building Technologies Inc.
|
Xxxxxx
Division
|
000
Xxxxxx Xxxxx
|
Xxxxx
Xxxxxxxx, XX 00000
|
phone:
(000) 000-0000
|
fax: (000)
000-0000
|
contact:
Xxxxxxx Xxxxx
|
Mechanical -
Balancing
|
Aero
Testing and Balancing Systems Inc.
|
0000
X. Xxxxxxx Xxxxxx
|
Xxxxxxx,
XX 00000
|
phone:
(000) 000-0000
|
fax:
(000) 000-0000
|
contact: Xxxx
Xxxxxxxx
|
Fire Protection -
Sprinklers:
|
Great
Lakes Plumbing & Heating Co.
|
0000
Xxxx Xxxxxxxx Xxxxxx
|
Xxxxxxx,
XX 00000
|
phone:
(000) 000-0000
|
fax:
(000) 000-0000
|
contact: Xxx
Xxxxx
|
Fire Protection -
Controls
|
Siemens
Building Technologies, Inc.
|
Siemens
Cerberus Division
|
0000
X. Xxxxxxx Xxxxxx, #00
|
Xxxx
Xxxxx, XX 00000
|
phone:
(000) 000-0000
|
Fax:
(000) 000-0000
|
contact: Xxxxxxx
Xxxxxxxx
|
Structural
Engineer
|
Xxxxxx,
Xxxxxxx & Associates, Inc.
|
000
Xxxx Xxxxxxxx Xxxxxx
|
Xxxxx
0000
|
Xxxxxxx,
XX 00000
|
phone:
(000) 000-0000
|
fax:
(000) 000-0000
|
contact: Xxxxx
Xxx
|
B-18
ATTACHMENT 2 TO
WORKLETTER
MINIMUM INFORMATION FOR
PLANS
Plans and
specifications (including architectural, engineering and structural, as
applicable, working drawings) required for the supply, installation and
finishing of the Tenant's Work and including, without limitation: finish
schedule; material submittals; graphics and signage; interior and demising
partitions; doors, frames and hardware; ceilings; wiring; lights and switches;
telephone and electrical outlets; floor coverings; wall coverings; all millwork
and built-ins; appliances; plumbing fixtures; refrigeration equipment; and other
equipment, equipment connections and facilities attached to and forming a part
of the Building.
B-19
EXHIBIT
C
UNPERMITTED
TENANTS
[To be
furnished by Tenant and approved by Landlord]
C-1
GUARANTY
THIS GUARANTY (the "Guaranty") is made and entered
into effective as of the 4th day of
March, 2004, by the undersigned (the "Guarantor”), being the owner
of all or substantially all of the ownership interests of Tenant (as hereinafter
defined), who, having received (1) a copy of that certain Third Amendment to
Lease dated concurrently herewith (the "Third Amendment") between
303 XXXXXX REALTY
L.L.C., a Delaware limited liability company ("Landlord"), and XXXXXXX XXXXXXXX ENVIRODYNE
ENGINEERS, INC., a Delaware corporation ("Tenant"), which Third
Amendment amends that certain Office Lease dated January 1, 1996, as amended by
First Amendment to Lease dated effective as of October 1, 1999 and by Second
Amendment to lease dated as of January 22, 2001 (said Office Lease, as so
amended and as amended from time to time, the "Lease"), and (2) a copy of the
balance of the Lease, has examined the Third Amendment and the balance of the
Lease and is familiar with all the terms, covenants and provisions contained
therein, and as an inducement to Landlord to enter into the Third Amendment,
does hereby unconditionally guarantee to Landlord: (i) the full and prompt
payment of all Base Rent, Rent Adjustments and other items of Rent and all other
sums and charges payable by Tenant under the Lease; (ii) the full and timely
performance and observance of all the covenants, terms, conditions, and
agreements therein provided to be performed and observed by Tenant; (iii) the
full and prompt payment of all costs, expenses and reasonable attorneys' fees
incurred by Landlord in enforcing the Lease and/or this Guaranty (herein "Enforcement Costs"); and (iv)
the full and prompt payment to Landlord of the amount of any payments made to
Landlord which are recovered from Landlord by a trustee, receiver or creditor of
the Guarantor or Tenant pursuant to applicable law; and the Guarantor hereby
covenants and agrees to and with Landlord that (a) if default shall at any time
be made by Tenant in the payment of any Base Rent, Rent Adjustments, other items
of Rent, or any other sum or charge payable by Tenant under said Lease, or (b)
if Tenant should default in the performance and observance of any of the
covenants, terms, conditions, or agreements contained in said Lease, and in the
case of either of the events described in (a) or (b), if such default is not
cured in the time and manner described in the Lease after written notice from
Landlord to Tenant, then the Guarantor will forthwith pay such rent and such
other sums and charges to Landlord, and any arrears thereof, and shall forthwith
faithfully perform and fulfill all of such terms, covenants, conditions, and
agreements contained in the Lease. It is acknowledged that the Third Amendment
amends the Lease to, among other things, extend the term of the Lease and to
include additional space as part of the Premises, and includes the giving by
Landlord of certain allowance and other concessions as therein described, and
Landlord would not agree to enter into said Third Amendment or any of the
agreements therein set forth in the absence of the execution and delivery of
this Guaranty by Guarantor.
This
Guaranty is an absolute and unconditional guaranty of payment and of
performance, and not of collection. It shall be enforceable against the
Guarantor without the necessity of any suit or proceedings on Landlord's part of
any kind or nature whatsoever against Tenant and, except for notices expressly
required herein or in the Lease, without the necessity of any notice of
nonpayment, nonperformance or nonobservance or of any notice of acceptance of
this Guaranty or of any other notice or demand to which the Guarantor might
otherwise be entitled, all of which the Guarantor hereby expressly waives; and
the Guarantor hereby expressly agrees that the validity of this Guaranty and the
obligations of the Guarantor hereunder shall in no way be terminated, affected,
diminished, or impaired by reason of the assertion or the failure to assert by
Landlord against Tenant, or against Tenant's successors and assigns, any of the
rights or
1
remedies
reserved to Landlord pursuant to the provisions of said Lease or by relief of
Tenant from any of Tenant's obligations under the Lease based on the rejection
of said Lease in connection with proceedings under the bankruptcy laws now or
hereafter in effect or otherwise based on any applicable bankruptcy, fraudulent
conveyance, debtor-creditor, insolvency or other similar laws now or hereafter
in effect. Without limitation of the foregoing, if a trustee in bankruptcy
(which shall include the "Tenant" as a debtor in possession) shall assume the
Lease, or assume and assign the Lease, all duties and obligations of the
undersigned pursuant to this Guaranty shall continue and remain in full force
and effect. Further, notwithstanding anything contained herein or in the Lease
to the contrary, in the event that Tenant, or a trustee in bankruptcy, rejects
the Lease pursuant to the provisions of any applicable bankruptcy laws, the
personal liability of the undersigned pursuant to this Guaranty, shall not be
subject to any limitations imposed under Section 365 or Section 502(b)(6) of the
federal bankruptcy code or any other applicable provisions of said bankruptcy
code or any limitations imposed under any comparable state bankruptcy laws now
or hereafter in effect.
Except as
specifically provided herein, this Guaranty shall be a continuing guaranty and
the liability of the Guarantor hereunder shall in no way be affected, modified
or diminished by reason of any assignment, renewal, modification, or extension
of the Lease or by reason of any modification or waiver of or change in any of
the terms, covenants, conditions, or provisions of the Lease, or by reason of
any extension of time that may be granted by Landlord to Tenant, or a changed or
different use of the leased premises, or by reason of any dealings or
transactions or matters or things occurring between Landlord and Tenant, whether
or not notice thereof is given to the Guarantor.
The
Guarantor hereby unconditionally waives (a) presentment, notice of dishonor,
protest, demand for payment, and all notices of any kind, including, without
limitation, notice of acceptance hereof; notice of nonpayment, non-performance,
or other default under the Lease; and notice of any action taken to collect upon
or enforce any of the terms and provisions of the Lease; (b) any subrogation to
the rights of Landlord against Tenant until all of the obligations of Tenant
under the Lease have been fully complied with and the Lease has expired or
terminated and such payments made by the Guarantor are not subject to a right of
recovery; (c) any and all defenses of suretyship; and (d) any setoffs or
counterclaims against Landlord which would otherwise impair Landlord's rights
against the Guarantor hereunder.
The
assignment by Landlord of the Lease and/or the rents, profits, avails, and/or
proceeds thereof made either with or without notice to the Guarantor shall in no
manner whatsoever release the Guarantor from any liability as
Guarantor.
This
Guaranty shall be governed by and construed in accordance with the laws of the
State of Illinois.
All of
the provisions of this Guaranty shall inure to the benefit of Landlord and its
grantees, successors and assigns and shall inure to the benefit of any future
owner of the fee title of which the leased premises are a part, and all the
provisions of this Guaranty shall be binding upon the Guarantor and its heirs,
legal representatives, successors, and assigns. All of Landlord's rights and
remedies under the Lease and under this Guaranty shall be distinct, separate and
cumulative and no such right or remedy shall be exclusive of or a waiver of any
of the others.
2
If
Guarantor consists of more than one person or entity, each person or entity
comprising the Guarantor shall be jointly and severally liable hereunder with
every other person or entity so comprising the "Guarantor" of the Lease. Without
limitation of the foregoing, each person or entity comprising Guarantor shall be
jointly and severally liable with Tenant for all obligations and liabilities of
the "Tenant" under the Lease.
Guarantor
hereby submits to personal jurisdiction in the State of Illinois for the
enforcement of this Guaranty and waives any and all personal rights to object to
such jurisdiction for the purposes of litigation to enforce this Guaranty.
Guarantor agrees that all actions or proceedings arising directly, indirectly or
otherwise in connection with, out of, related to or from this Guaranty shall be
litigated, in Landlord's sole discretion and at Landlord's sole election, only
in courts having a situs within the County of Xxxx, State of Illinois. For the
purposes of the foregoing, Guarantor hereby waives any right to a trial by jury
in any action to enforce or defend any matter arising from or related to this
Guaranty and irrevocably consents and submits to the jurisdiction of any local,
state or federal court located within the County of Xxxx, State of Illinois.
Guarantor hereby waives any right Guarantor may have to transfer or change the
venue of any litigation brought against Guarantor in accordance with this
paragraph. Nothing in this paragraph shall affect or impair Landlord's right to
serve legal process in any manner permitted by law or Landlord's right to bring
any action or proceeding against Guarantor or its property in the courts of any
other applicable jurisdiction.
In any
action or proceeding pursuant to, or in order to enforce the terms of, this
Guaranty and/or the Lease, Landlord shall be entitled to recover from Guarantor
all costs and expenses incurred by Landlord in such action or proceeding,
including reasonable attorney's fees, costs and expenses.
Notwithstanding
any provision of this Guaranty to the contrary, if at any time on or after the
fifth (5th) anniversary of the Additional Premises Commencement Date (as defined
in the Third Amendment), Tenant shall not be in default of any of its
obligations under the Lease, then this Guaranty shall automatically terminate,
subject to the next succeeding paragraph, and if applicable, the immediately
preceding paragraph.
Notwithstanding
anything to the contrary contained in this Guaranty, Guarantor agrees that, to
the extent that Tenant makes a payment or payments to Landlord and the
obligation to make such payments arose under the Lease prior to the fifth (5th)
anniversary of the Additional Premises Commencement Date described in the Third
Amendment (or if later, prior to the earliest date after the fifth (5th)
anniversary of the Additional Premises Commencement Date on which no default by
Tenant under the Lease was continuing), which payment or payments or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to Tenant, its estate, trustee, receiver
or any other party, including, without limitation, Guarantor, under any
bankruptcy law, state or federal law, common law or equitable theory
(collectively the "Rescinded Payments"), then to the extent of such Rescinded
Payments, Tenant's obligations under the Lease with respect to same, and
Guarantor's obligations hereunder with respect to same, shall be reinstated and
continued in full force and effect, to the fullest extent permitted by
law.
Initially
capitalized terms used but not otherwise defined herein have the same meanings
given them in the Lease.
3
Guarantor
acknowledges that (a) it is a principal and affiliate of Tenant and will receive
direct benefits from the Third Amendment and the Lease (as amended) described
herein, and (b) that this Guaranty is required as a condition to Landlord's
agreement to enter into such Third Amendment. This Guaranty is being delivered
for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged by Guarantor.
IN WITNESS WHEREOF, the
undersigned has executed this Guaranty effective as of the date first written
above.
GUARANTOR:
|
||
AECOM TECHNOLOGY CORPORATION,
a
|
||
Delaware
corporation
|
||
By:
/s/ Xxxx Xxxx
|
||
Name:
Xxxx Xxxx
|
||
Title:
Senior Vice President, Corporate
|
||
Finance,
and General Counsel
|
||
Address:
000 X. Xxxxxx Xxxxxx, Xxxxx 0000
|
||
Xxx
Xxxxxxx, Xxxxxxxxxx 00000
|
4
EXHIBIT
E
DESCRIPTION OF THE
WORK
Sprinkler - Landlord will
install new main and branch pipe configuration in the 10th floor additional
premises to accommodate standard office building sprinkler density as required
by City of Chicago code.
E-1
SECOND AMENDMENT TO
LEASE
THIS SECOND AMENDMENT TO LEASE
("Amendment") is made and entered into
this 22nd day of January, 2001, by and between 303 XXXXXX REALTY L.L.C., a Delaware limited
liability company (hereinafter referred to as "Landlord"), and XXXXXXX XXXXXXXX ENVIRODYNE
ENGINEERS, INC., a Delaware corporation (hereinafter referred to as
"Tenant").
RECITALS:
A. Landlord
(as successor in interest to Metropolitan Life Insurance Company) and Tenant are
parties to that certain Office Lease dated January 1, 1996 (“Original Lease”), as amended by First
Amendment to Lease dated effective as of October 1, 1999 (the "First Amendment”) (such Original Lease, as
so amended by the First Amendment and as amended from time to time, and
including, without limitation, that certain Commencement Date Agreement dated
January 1, 1996 [i.e., being “Rider 1”] and “Rider 2” incorporated as part of
the Original Lease, being collectively referred to herein as the “Lease”), demising premises (the
"Premises") stipulated
to contain 56,520 square feet situated on the 5th and 6th floors of the Building
commonly known as 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx for a term expiring
September 30, 2006; and
B. Landlord
and Tenant desire to amend the Lease to, among other things, include additional
space on the 12th floor as part of the Premises, upon the terms and conditions
hereinafter set forth.
NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Landlord and Tenant hereby amend the Lease in the following respects
only:
1. Defined
Terms. As
used in this Amendment, the following terms shall have the respective meanings
indicated below:
(a) “Additional Premises” shall mean the premises
on the 12"' floor of the Building, stipulated to contain 17,714 square feet of
Rentable Area, as shown on Exhibit A attached hereto and made a part
hereof.
(b) “Additional Premises Commencement
Date” shall
mean June 1, 2001.
All other
capitalized terms used but not otherwise defined herein shall have the same
meanings as set forth in the Lease. For purposes of the Lease, the term “Rent” shall specifically
include the rental payments due with respect to the Additional Premises as
described in Paragraphs 4 and 5 hereinbelow.
2. Additional
Premises. Effective as of the
Additional Premises Commencement Date and for a lease term expiring concurrently
with the end of the Term for the remainder of the Premises, as it may be sooner
terminated or extended as provided herein or in the Lease:
(a) the
Premises shall include the Additional Premises; and
(b) the
Rentable Area of the Premises shall be increased by the Rentable Area of the
Additional Premises.
3. Lease
Governs. Except as expressly provided herein, from and after the
Additional Premises Commencement Date and through the end of the Term of the
Lease, all provisions of the Lease shall be in full force and effect with
respect to, and shall govern Tenant's possession of, the Additional
Premises.
4. Monthly
Additional Premises Base Rent. From and after the Additional Premises
Commencement Date, Monthly Base Rent under the Lease with respect to the
Additional Premises (herein, "Monthly Additional Premises Base
Rent") shall be payable in the amounts and at the annual rates per square
of foot of Rentable Area of the Additional Premises for the respective periods
hereafter described:
Period
|
Monthly
|
Annually
|
Rate/SF
|
06/01/01
through 05/31/02
|
$25,832.92
|
$309,995.00
|
$17.50
|
06/01/02
through 05/31/03
|
$26,615.29
|
$319,383.42
|
$18.03
|
06/01/03
through 05/31/04
|
$27,412.42
|
$328,948.98
|
$18.57
|
06/01/04
through 05/31/05
|
$28,239.07
|
$338,868.82
|
$19.13
|
06/01/05
through 05/31/06
|
$29,080.48
|
$348,965.80
|
$19.70
|
06/01/06
through 09/30/06
|
$29,951.42
|
$359,417.06
|
$20.29
|
Monthly
Additional Premises Base Rent shall be payable at such times and at such place
and in accordance with such provisions as otherwise set forth in the Lease
relative to the payment of Monthly Base Rent thereunder.
5. Additional
Premises Rent Adjustments.
(a) For
the calendar year in which the Additional Premises Commencement Date falls,
Tenant's Share of Operating Expenses and Taxes (i.e., Rent Adjustments under the
Lease) provided for in Article Four of the Lease shall be calculated separately
for the Additional Premises apart from the remainder of the Premises, but not
for any subsequent years of the Term of the Lease. In subsequent years, Rent
Adjustments shall be calculated for the Additional Premises together with the
remainder of the Premises. Rent Adjustments for the Additional Premises for the
calendar year in which the Additional Premises Commencement Date falls (herein,
the "Additional Premises Rent
Adjustments") shall be prorated by multiplying the Rent Adjustments
attributable to the Additional Premises by a fraction, the numerator of which is
the number of days remaining in such calendar year following the Additional
Premises Commencement Date and the denominator of which is 365.
(b) For
purposes of calculating Additional Premises Rent Adjustments (i.e., being the
Rent Adjustments payable on account of the Additional Premises for the calendar
year in which the Additional Premises Commencement Date falls), "Tenant's Share"
shall be 2.3001%. For purposes of calculating Rent Adjustments payable on
account of both the Additional Premises and the remainder of the Premises for
all subsequent calendar years (or partial calendar years) within the Term of the
Lease, "Tenant's Share" shall be 9.6391% (and Section 1.01(13) of the Lease is
hereby amended accordingly). Rent Adjustments for the initial Premises leased
under the Original Lease shall continue to be calculated and paid in accordance
with the Original Lease for the calendar year in which the Additional Premises
Commencement Date falls.
2
(c) All
Rent Adjustments described in this Paragraph 5 shall be payable at such times,
in such manner, and in accordance with such procedures (i.e., including payment
of "Rent Adjustment Deposits" and final reconciliations) as set forth in Article
Four of the Lease relative to payment of Rent Adjustments
thereunder.
6. Condition:
Tenant Improvements.
|
(a)
|
Except
as expressly provided in Paragraph 6(c) below, Tenant hereby accepts the
Additional Premises in their "as is" condition as of the date hereof and
acknowledges that Landlord shall not be required to make any improvements
to the Additional Premises for Tenant's use and occupancy. Without
limitation of the foregoing, it is acknowledged that Tenant shall, at its
sole cost and expense (subject to application of the Allowance as defined
in the hereafter described "Additional Premises Workletter"), perform any
work at the Additional Premises as may be necessary or desired by Tenant
to improve the Additional Premises for occupancy (including without
limitation, the items described in Paragraph 6(b) below) all subject to
and in accordance with the provisions of the Workletter Agreement attached
hereto as Exhibit B (the "Additional Premises
Workletter"). All work completed by Tenant on or before the one
hundred eightieth (180th) day following the Additional Premises
Commencement Date as referenced in this Paragraph 6(a) is hereinafter
referred to as "Tenant's
Work".
|
|
(b)
|
Without
limitation of the foregoing terms of this Xxxxxxxxx 0, Xxxxxx, at its sole
cost and expense (subject to application of the Allowance as described in
the Additional Premises Workletter), as part of the "Tenant's Work"
described above, shall perform all work described in Exhibit C hereto (the
"Required Tenant's
Work"). The foregoing Required Tenant's Work shall be completed, in
any event, on or before the first to occur of (i) the Additional Premises
Commencement Date, and (ii) the date Tenant occupies the Additional
Premises for the performance of any business operations
therefrom.
|
|
(c)
|
Landlord
shall review any areas in the Additional Premises which are identified by
Tenant's architect, prior to commencement of any of Tenant's Work at the
Additional Premises, as problem areas due to the height of the fire
sprinklers in those areas. Except for any sprinkler lines which cannot be
raised due to the obstructions represented by the main HVAC trunk ducts on
the 12th floor of the Building, Landlord shall raise the height of
sprinkler lines which would, if not raised, require that sprinkler heads
in any portion of the Additional Premises to protrude below the Building's
standard ceiling height of [8'10"] when the sprinkler heads are not
extended. Any work described in this Paragraph 6(c) (herein, the "Landlord's Sprinkler
Work") shall be performed prior to or concurrently with Tenant's
construction of Tenant's Work in the Additional Premises, and Tenant shall
fully cooperate with Landlord and its contractors (i) to allow proper
access to the Additional Premises for Landlord to so perform the
Landlord's Sprinkler Work, and (ii) to coordinate the Landlord's Sprinkler
Work with any of the ongoing Tenant's Work then being performed at the
Additional Premises.
|
7. Possession.
Landlord shall deliver possession of the Additional Premises to Tenant
concurrently with the mutual execution and delivery of this Amendment by
Landlord and Tenant, in order for Tenant to proceed with the Tenant's
Work.
3
8. Real
Estate Brokers. Landlord and Tenant each represent and warrant to the
other that such party making the representation has not dealt with any broker in
connection with this Amendment other than Xxxxxx X. Xxxxxxx (whose commissions
shall be payable by Landlord pursuant to its separate written commissions
agreement with said broker). Landlord and Tenant each agree to indemnify and
hold the other harmless from all loss, damages, liabilities, claims, costs and
expenses (including reasonable attorneys' fees) arising from any other claims or
demands of any broker or brokers or finders with whom the indemnifying party
dealt for any commission alleged to be due such broker, brokers or
finders.
9. Present
Status. Tenant certifies to Landlord that as of the execution and
delivery of this Amendment by both Tenant and Landlord, Landlord is not in
default under the Lease by reason of failure to perform any obligations
thereunder. Such certificate is given to the actual knowledge of
Tenant.
10. Deletions.
Section 4 of Rider 2, as amended by Paragraph 4 of the First Amendment (i.e.,
entitled "First Expansion Option"), and Section 6 of Rider 2 (i.e., entitled
"Continuing Right of First Offer") are each hereby deleted in their entirety,
and shall be deemed null and void. Further, Tenant's exercise notice dated
September 27, 2000 regarding certain expansion rights under the Lease is hereby
deemed null and void in its entirety.
11. Acceleration
Option. It is hereby confirmed that the "First Acceleration Option", as
set forth in Paragraph 2 of Rider 2, is no longer applicable, and is hereby
deemed null and void. With respect to the "Second Acceleration Option" (i.e.,
September 30, 2003), it is hereby confirmed that, notwithstanding the terms of
Paragraph 2.A.2 or 2.A.3 of Rider 2, the "Second Acceleration Amount", as
defined in Paragraph 2.A.3 of Rider 2, shall be increased as a result of the
Additional Premises hereunder, which increase shall be in the amount of
$719,188.00 (i.e., being the sum of all brokerage commissions payable by
Landlord in connection with this Amendment and the amount of the Allowance
contributed by Landlord under the Additional Premises Workletter, without any
further amortization thereof). As a result, the total Second Acceleration Amount
shall be in the amount of $2,075,668.00 (i.e., being $719,188.00 attributable to
the Additional Premises, and $1,356,480.00 attributable to the balance of the
Premises), subject to further increase as provided in Paragraph 2.A.3 of Rider 2
in the event any additional space is added to the leased premises after the date
hereof.
12. First
Amendment - Modifications. The First Amendment, as defined in Recital
A hereof, is hereby
amended in the following respects:
(a) The
following language is added as a new Paragraph 3(d) of said First
Amendment:
"(d)
Notwithstanding the foregoing, the additional rent due and owing for the Storage
Space as described in Paragraph 3(b) above shall xxxxx for the period of May 1,
2001 through July 31, 2001"
(b) The
following language is added as a new Paragraph 3(e) of said First
Amendment
"(e)
Notwithstanding anything to the contrary contained herein or in Section 9 of
Rider 2 to the Lease, Tenant may elect to terminate the lease of the Storage
Space as of any date by giving not less than sixty (60) days' prior written
notice to Landlord, which notice shall designate the effective date of
termination. Said notice shall be effective to terminate the lease of the
Storage Space (but not as to the balance of the leased premises under the Lease)
on the date designated in such notice. If the lease of the Storage Space is so
terminated, the term of said lease shall be deemed to have expired
4
by lapse
of time on the specified termination date, and Tenant shall vacate the Storage
Space and surrender possession thereof in the same condition and in accordance
with the same terms as otherwise required for surrender of the balance of the
leased premises at the end of the term, as provided in Article 12 of the Lease
(failing of which shall be deemed a holding over of such space, subject to the
terms and conditions of Article 13 of the Lease with respect
thereto)."
13. Renewal
Option. It is hereby acknowledged that KPMG Peat Xxxxxxxx LLC ("Existing Tenant") has
heretofore been granted, among other rights, two (2) fixed expansion rights (the
"First Fixed Expansion
Right" and the "Second
Fixed Expansion Right", respectively, and collectively, the "Superior Expansion Rights")
relating to the 12th floor of the Building which, if both exercised, may affect
all or a substantial portion of the Additional Premises during portions of the
renewal period described in Paragraph 3 of Rider 2 to the Lease. It is further
acknowledged that (a) the exercise of the First Fixed Expansion Right does not
directly relate to the Additional Premises, but would thereafter result in all
or a substantial portion of the Additional Premises being the potential subject
of a subsequent exercise of the Second Fixed Expansion Right, and (b) in the
event that the First Fixed Expansion Right is not exercised, then any subsequent
exercise of the Second Fixed Expansion Right would not affect the Additional
Premises in any manner. Based on the foregoing, it is hereby acknowledged and
agreed that Tenant's "Renewal Option", as described in Paragraph 3 of Rider 2 to
the Lease, as it relates to the Additional Premises demised hereunder, is
expressly subject and subordinate to the Superior Expansion Rights, and in the
event Existing Tenant, or any successor tenant under Existing Tenant's lease at
the Building, exercises its First Fixed Expansion Right, then the "Renewal
Option" under Paragraph 3 of said Rider 2 shall only apply with respect to the
balance of the leased premises under the Lease (i.e., excluding the Additional
Premises being demised hereunder). Tenant shall have the right, at any time
after February 1, 2004, to deliver written notice to Landlord requesting
Landlord to inform Tenant as to whether Existing Tenant has exercised the
aforedescribed First Fixed Expansion Right, and Landlord shall respond to such
written request within ten (10) business days after receipt thereof. In the
event that Existing Tenant exercises the aforedescribed First Fixed Expansion
Right, and if Tenant thereafter exercises its Renewal Option with respect to the
balance of the leased premises (i.e., excluding the Additional Premises), in
accordance with Paragraph 3 of Rider 2 (as such Paragraph 3 is amended by this
Paragraph 13), then the term of the Lease with respect to the Additional
Premises shall terminate as of September 30, 2006, as if such date were the
stated expiration date of the term of the Lease, and Tenant shall vacate and
surrender possession of the Additional Premises as of such date in the same
condition and in accordance with the same terms as otherwise required for
surrender of the balance of the leased premises at the end of the term, as
provided in Article 12 of the Lease (failing of which shall be deemed a holding
over of such space, subject to the terms and conditions of Article 13 of the
Lease with respect thereto). In the event Tenant exercises its Renewal Option
for the leased premises (including the Additional Premises) prior to Existing
Tenant having exercised its First Fixed Expansion Right, and if Existing Tenant
subsequently exercises such First Fixed Expansion Right, then Landlord shall so
notify Tenant, in writing, of such subsequent exercise by Existing Tenant, and
Tenant shall have ten (10) business days thereafter (time being of the essence)
to withdraw its prior exercise of the Renewal Option by written notice thereof
to Landlord with said 10-business day period, in which event the term of the
Lease shall expire as of September 2006 in accordance with its terms and without
regard to Tenant's prior exercise of said Renewal Option.
14. Entire
Agreement. The entire agreement of the parties with respect to the
subject matter hereof is set forth in this Amendment and in the Lease as amended
hereby. No prior agreement or understanding with respect to the Lease and this
Amendment shall be valid or of any force or effect.
15. Offer.
This Amendment shall not become effective as a lease or otherwise until executed
and delivered by both Landlord and Tenant. The submission of this Amendment to
Tenant does not
5
constitute
a reservation of or option for the Additional Premises, except that, upon
execution and delivery by Tenant, it shall constitute an irrevocable offer on
the part of Tenant in effect for ten (10) business days to lease the Additional
Premises on the terms and conditions herein contained.
16. Lease in
Full Force and Effect.
Except as amended hereby, all the terms and provisions of the Lease shall
remain in full force and effect, and are hereby ratified and confirmed. Without
limitation of the foregoing, Section 26.08 of the Lease (as amended hereby)
shall apply to this Amendment and to the Lease (as amended hereby).
[Signature Page to Follow]
6
IN WITNESS WHEREOF, the
parties have entered into this Amendment as of the day and year first above
written.
TENANT:
|
LANDLORD:
|
|||||
XXXXXXX
XXXXXXXX ENVlRODYNE
|
303 XXXXXX REALTY
L.L.C., a Delaware limited
|
|||||
ENGINEERS,
INC.,
|
liability
company
|
|||||
a
Delaware corporation
|
||||||
By:
|
Hines
Three Illinois Center Associates Limited
|
|||||
By:
/s/ Xxxxxxx X.
Xxxxxxxx
|
Partnership,
|
|||||
Name:
Xxxxxxx X.
Xxxxxxxx
|
its
managing member
|
|||||
Title:
President
|
||||||
By:
|
Xxxxx Three Illinois Center
L.L.C., a
|
|||||
general
partner
|
||||||
ATTEST:
|
||||||
By:
|
Xxxxx
Interests Limited
|
|||||
By:
/s/ Xxxxxxx X.
Xxxxxxxx
|
Partnership, a
member
|
|||||
Name:
Xxxxxxx X.
Xxxxxxxx
|
||||||
Title:
Secretary
|
By:
Xxxxx Holdings, Inc.,
its
|
|||||
general
partner
|
||||||
By:
/s/ C. Xxxxx
Xxxxxxxxx
|
||||||
Name:
C. Xxxxx Xxxxxxxxx
|
||||||
Title:
|
Executive
Vice President
|
7
EXHIBIT
A
ADDITIONAL PREMISES
[Attached]
A-1
EXHIBIT
B
ADDITIONAL PREMISES
WORKLETTER AGREEMENT
THIS ADDITIONAL PREMISES WORKLETTER
AGREEMENT is hereby incorporated as part of that certain Second Amendment
to Lease made and entered into as of the 22nd day of
January, 2001 by and between 303 XXXXXX REALTY L.L.C., a
Delaware limited liability company ("Landlord"), and XXXXXXX XXXXXXXX ENVIRODYNE
ENGINEERS, INC., a Delaware corporation
("Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant have
entered into a certain Second Amendment to Lease to which this Workletter is
attached (the "Second Amendment"), which Second Amendment further amends a
certain Office Lease dated January 1, 1996, as amended by First Amendment dated
effective as of October 1, 1999 (collectively, the "Lease"; all capitalized
terms used but not otherwise defined herein shall have the same meaning as set
forth in the Second Amendment or in the balance of the Lease, as applicable);
and
WHEREAS, pursuant to the Second
Amendment, Tenant will be leasing certain demised premises (herein, the
"Premises") located on the 12th floor of the office building located at 000 Xxxx
Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx (the "Building"); and
WHEREAS, certain tenant
improvement work is to be completed on the Premises;
NOW, THEREFORE, for and in consideration
of the agreement to lease the Premises and pay rent and the mutual covenants
contained herein, the parties agree as follows:
1. POSSESSION. Landlord shall deliver
possession of the Premises concurrent with the mutual execution and delivery of
the Second Amendment by Landlord and Tenant, in order for Tenant to perform the
Tenant's Work, all as otherwise described in Paragraph 7 of the Second
Amendment.
2. TENANT'S
WORK. Tenant, at its sole cost
and expense, but subject to payment of the Allowance (as hereinafter defined) as
provided under Paragraph 9 below shall perform, or cause to be performed, the
Tenant's Work (as defined in the Lease) in the Premises provided for in the
Plans (as hereafter defined) submitted to and approved by Landlord. The Tenant's
Work shall be constructed in a good and workmanlike fashion, in accordance with
the requirements set forth herein and in compliance with all applicable
statutes, laws, ordinances, orders, codes, rules, regulations, building and fire
codes and other governmental requirements, including, without limitation, the
Americans with Disabilities Act and its regulations (the “ADA”). Landlord's
review and approval of the Plans or any other submission of Tenant shall create
no responsibility or liability on the part of Landlord for such compliance or
for their completeness or design
sufficiency.
Tenant shall commence the construction of the Tenant's Work promptly following
completion of the pre-construction activities provided for in Paragraph 3 below and shall
diligently proceed with all such construction in order to complete the Tenant's
Work prior to the Additional Premises Commencement Date or as soon thereafter as
is reasonably practicable. Tenant shall coordinate the Tenant's Work so as avoid
interference with any other work being performed by or on behalf of Landlord and
other tenants at the Building.
3. PRE-CONSTRUCTION
ACTIVITIES.
(a) Prior
to commencing any of the Tenant's Work, Tenant shall submit the following
information and items to Landlord for Landlord's review and approval with
respect thereto:
(i) A
detailed construction schedule containing the major components of the Tenant's
Work and the time required for each, including the scheduled commencement date
of construction of the Tenant's Work, milestone dates and the estimated date of
completion of construction.
(ii) An
itemized statement of estimated construction costs, including permits and
architectural and engineering fees.
(iii) The
names and addresses of Tenant's contractors (and the contractor's subcontractors
as well as any vendors who will be delivering materials directly to the Building
site) to be engaged by Tenant for the Tenant's Work and of any construction
manager proposed to be engaged by Tenant for the Tenant's Work (collectively,
"Tenant's Contractors"). Landlord has the right to approve or disapprove
Tenant's Contractors, which approval shall not be unreasonably withheld or
delayed. Landlord shall give its approval or disapproval of the proposed
Tenant's Contractors designated by Tenant within ten (10) days after Tenant's
submittal thereof to Landlord. Tenant shall not employ as Tenant's Contractors
any persons or entities so disapproved by Landlord. If Landlord has
affirmatively approved only certain contractor(s) and/or subcontractor(s) from
Tenant's list, Tenant shall employ as Tenant's Contractors only those persons or
entities so approved. Landlord may, at its election, designate a list of
approved contractors for performance of work affecting electrical, mechanical,
plumbing or life safety systems ("Approved Building System Contractors"), from
which Tenant must select its contractors for such work. Without limitation of
the foregoing, Landlord hereby confirms that any of the contractors listed on
Attachment 1(a) hereto will be an approved general contractor for Tenant to
engage relative to the performance of the Tenant's Work and any of the
contractors listed on Attachment 1(b) hereto shall be an Approved Building
System Contractor for Tenant or the general contractor to engage for performance
of work affecting electrical mechanical, plumbing or life safety systems. For
purposes hereof, the term "life safety systems" shall include the Building's
fire protection/sprinkler system, strobes, and speakers connected to the
Building's annunciator panel.
2
(iv) A
written statement from Tenant, acting in its capacity as architect for the
Tenant's Work, stating that Tenant has visited the site, inspected and verified
existing conditions as such conditions affect the Plans and construction of the
Tenant's Work.
(v) Certified
copies of insurance policies or certificates of insurance as hereinafter
described. Tenant shall not permit Tenant's Contractors to commence work until
the required insurance has been obtained and certified copies of policies or
certificates have been delivered to Landlord.
(vi) The
Plans for the Tenant's Work, which Plans shall be subject to Landlord's approval
in accordance with Paragraph 3(b) below.
Tenant
will update such information and items by notice to Landlord of any changes.
Landlord shall promptly (or as otherwise required by this Workletter) review all
submissions made by Tenant.
(b) As
used herein the term "Plans" shall mean full and detailed architectural and
engineering plans and specifications covering the Tenant's Work (including,
without limitation, architectural, mechanical, electrical, life safety, fire
protection and plumbing working drawings for the Tenant's Work). The Plans shall
include the minimum information shown on Attachment 2 attached hereto and
incorporated herein. Subject to the Allowance (as hereinafter defined), Tenant
shall pay all costs and expenses of preparing the Plans. The Plans shall be
subject to Landlord's approval (not to be unreasonably withheld) and the
approval of all local governmental authorities requiring approval, if any.
Landlord shall give its approval or disapproval (giving reasons in case of
disapproval) of the Plans within ten (10) business days after their delivery to
Landlord. Landlord agrees not to unreasonably withhold its approval of said
Plans; provided, however, that Landlord shall not be deemed to have acted
unreasonably if it withholds its consent because, in Landlord's reasonable
opinion: (i) the Tenant's Work is likely to adversely affect Building systems,
the structure of the Building or the safety of the Building and its occupants;
(ii) the Tenant's Work would adversely affect Landlord's ability to furnish
services to Tenant or other tenants; (iii) the Tenant's Work would increase the
cost of operating the Building; (iv) the Tenant's Work would violate any
governmental laws, rules or ordinances; (v) the Tenant's Work contains or would
require the use of hazardous or toxic material in any unlawful manner; (vi) the
Tenant's Work would adversely affect the appearance of the Building; or (vii)
the Tenant's Work would adversely affect another tenant's premises. The
foregoing reasons, however, shall not be exclusive of the reasons for which
Landlord may withhold consent, whether or not such other reasons are similar or
dissimilar to the foregoing. Landlord shall cooperate with Tenant by discussing
or reviewing preliminary plans and specifications at Tenant's request prior to
completion of the full, final detailed Plans in order to expedite the
preparation of and the subsequent approval process concerning the final Plans.
If Landlord notifies Tenant that changes are required to the final Plans
submitted by Tenant, Tenant shall submit to Landlord, for its approval, the
Plans amended in accordance with
3
the
changes so required. Such submission of revised Plans shall be accompanied by a
written point by point response from Tenant specifically responding to any
disapprovals or other responses delivered by Landlord to Tenant. Landlord shall
give its approval or disapproval (giving reasons in case of disapproval) of any
such revised Plans within five (5) business days after their delivery to
Landlord. The Plans shall also be revised, and the Tenant's Work shall be
changed, to incorporate any work required in the Premises by any local
governmental field inspector. Landlord's approval of the Plans shall in no way
be deemed to be acceptance or approval of any element therein contained which is
in violation of any applicable statutes, laws, ordinances, orders, codes, rules,
regulations, building or fire codes or other governmental
requirements.
(c) Upon
Landlord's approval of the Plans, at Tenant's express written request, Landlord
shall designate in writing any affixed appurtenances which are part of Tenant's
Work which Tenant shall be required to remove upon the expiration of the Lease.
Any such agreement entered into in writing by Landlord shall be binding on
Landlord at expiration of the Lease.
(d) No
Tenant's Work shall be undertaken or commenced by Tenant in the Premises
until:
(i) The
Plans for the Premises have been submitted to and approved by Landlord (which
approval shall not be unreasonably withheld or delayed as provided in Section
3(b) hereinabove).
(ii) All
necessary building permits have been obtained by Tenant.
(iii) All
required insurance coverages have been obtained by Tenant, it being understood
that failure of Landlord to receive evidence of such coverage upon commencement
of the Tenant's Work shall not waive Tenant's obligations to obtain such
coverages.
(iv) Items
required to be submitted to Landlord prior to commencement of construction of
the Tenant's Work have been so submitted and have been approved, where
required.
4. DELAYS.
In the event Tenant fails to deliver or deliver in sufficient and accurate
detail the information required under Paragraph 3 on or before the
respective dates specified in said paragraph, or in the event Tenant, for any
reason, fails to complete the Tenant's Work on or before the Additional Premises
Commencement Date, Tenant shall be responsible for Monthly Additional Premises
Base Rent, Additional Premises Rent Adjustments and all other obligations as set
forth in the Second Amendment and the balance of the Lease from the Additional
Premises Commencement Date, regardless of the degree of completion of the
Tenant's Work on such date, and no such delay in completion of the Tenant's Work
shall affect the Additional Premises Commencement Date, or relieve Tenant of any
of its obligations under the Second Amendment or the balance of said Lease.
Notwithstanding any of the foregoing, if the Tenant's Work is not substantially
completed on or before the later of (i) the stated
4
Additional
Premises Commencement Date of June 1, 2001, and (ii) the date set forth in
Tenant's construction schedule delivered under Paragraph 3(a)(i) as the
scheduled date for completion of Tenant's Work (herein, the "Target Date"), and
if any such delay in substantial completion of the Tenant's Work is solely
attributable to Landlord Delay (as hereinafter defined) or a Contractor Strike
Delay (as hereinafter defined), then the Additional Premises Commencement Date
shall be extended by the period of delay in the Tenant's Work beyond the Target
Date which was attributable to the Landlord Delay or the Contractor Strike Delay
(i.e., as opposed to being attributable to any other matter causing such delay),
but not beyond the day Tenant first begins to conduct any of its customary
business operations in the Premises. As used herein, the term "Landlord Delay"
means Landlord's delay in responding to Tenant's Plans or Tenant's request for
approval of Tenant's Contractors, as and when required under Paragraph 3(a)(iii)
and/or Paragraph 3(b) hereof, or any default by Landlord of its obligations
hereunder, in any case to the extent delaying substantial completion of the
Tenant's Work. For purposes hereof, the term "Contractor Strike Delay" shall
mean any delay in substantial completion of the Tenant's Work resulting from (a)
a strike or organized labor work stoppage of all Approved Building System
Contractors designated by Landlord under Paragraph 3(a)(iii) above (which strike
or work stoppage was not caused in whole or in part by Tenant or its contractors
or any actions of said parties), and (b) Landlord's failure, within three (3)
business days after written notice from Tenant of the situation described in
subclause (a), to either (i) designate one or more other Approved Building
System Contractors who are not then on strike or involved with any other
organized work stoppage, or (ii) expressly allow Tenant to engage its own such
contractors to perform any of Tenant's Work affecting Building systems (subject,
however, to Landlord's reasonable approval of said contractors as provided
herein). Landlord Delay or Contractor Strike Delay shall not include any delay
in substantial completion of the Tenant's Work that would in any event (i.e.,
even if the Landlord Delay or Contractor Strike Delay had not occurred) have
resulted from other causes. Tenant shall notify Landlord, in writing, of any
claim for Landlord Delay or Contractor Strike Delay, which notice shall be
delivered within five (5) business days following receipt by Tenant or its
contractors or other representatives of knowledge of the event claimed by Tenant
to give rise to such Landlord Delay or Contractor Strike Delay (time being of
the essence); Tenant's failure to notify Landlord within said five (5) business
days shall be deemed a waiver of the subject claim of delay.
5. CHARGES
AND FEES. Subject to Paragraph 9
below, Tenant shall be responsible for all costs and expenses attributable to
the Tenant's Work, including payment to Landlord of a supervisory fee equal to
the amount of all out-of-pocket costs and expenses incurred by Landlord in
reviewing the Plans and other submittals hereunder or otherwise incurred in
supervising or coordinating the Tenant's Work (which fees shall not exceed, in
any event, the amount of $6,200.00 and which payment to Landlord shall be made
within thirty (30) days following Landlord's request therefor from time to
time). Except as provided in the preceding sentence, Landlord shall not be
entitled to any additional supervision fee relative to the Tenant's
Work.
6. CHANGE
ORDERS. All changes (other than deminimius changes based on field
conditions as more particularly described in Paragraph 7(k) below) to the final
Plans requested by Tenant must be approved by Landlord in advance of the
implementation of such changes as part of the Tenant's Work. Subject to
Paragraph 9 below, Tenant shall be responsible
5
for all
costs and expenses attributable to any changes, including a supervisory fee to
Landlord in an amount equal to the amount of all reasonable and customary
out-of-pocket costs and expenses incurred by Landlord in reviewing the change
order request and related materials or otherwise incurred in supervising or
coordinating the change order work (which payment to Landlord shall be made
within thirty (30) days following Landlord's request therefor from time to
time). All delays caused by Tenant initiated change orders, including, without
limitation, any stoppage of work during the change order review process, are
solely the responsibility of Tenant and shall cause no delay in the Additional
Premises Commencement Date, or payment of Monthly Additional Premises Base Rent,
Additional Premises Rent Adjustments and performance of other obligations set
forth in the Second Amendment or the balance of the Lease.
7. STANDARDS
OF DESIGN AND CONSTRUCTION AND CONDITIONS OF TENANT'S PERFORMANCE. All work done in or upon
the Premises by Tenant shall be done according to the standards set forth in
this Paragraph 7, except as the same may be modified in the Plans approved by
both Landlord and Tenant.
(a) Tenant's
Plans and all design and construction of the Tenant's Work shall comply with all
applicable statutes, ordinances, regulations, laws, codes and industry
standards, including, but not limited to, requirements of Landlord's fire
insurance underwriters and the requirements of the ADA (i.e., as such ADA
requirements pertain to the space within the Premises, and not to any areas
external thereto). Approval by Landlord of the Plans shall not constitute a
waiver of this requirement or assumption by Landlord of responsibility for
compliance. Where several sets of the foregoing laws, codes and standards must
be met, the strictest shall apply where not prohibited by another law, code or
standard.
(b) Tenant
shall, at its own cost and expense, but subject to payment by Landlord of the
Allowance under Paragraph 9 below, obtain all required building permits and,
when construction has been completed, shall, at its own cost and expense, obtain
an occupancy permit for the Premises, which shall be delivered to Landlord.
Tenant's failure to obtain such permits shall not cause a delay in the
Additional Premises Commencement Date, or the payment of Monthly Additional
Premises Base Rent, Additional Premises Rent Adjustments and performance of
other obligations under the Second Amendment or the balance of the
Lease.
(c) Tenant's
Contractors shall be licensed contractors, possessing good labor relations,
capable of performing quality workmanship and working in harmony with Landlord's
contractors and subcontractors and with other contractors and subcontractors in
the Building. All work shall be coordinated with any other construction or other
work in the Building in order not to adversely affect construction work being
performed by or for Landlord or its tenants, it being understood that in the
event of any conflict, Landlord and its contractors and subcontractors shall
have priority over Tenant and Tenant's Contractors; provided, however,
notwithstanding such priority, Landlord shall not unreasonably inhibit Tenant's
Contractors from performing their work.
6
(d) Landlord
shall have the right, but not the obligation, upon not less than 72 hours' prior
written notice thereof to Tenant (provided that no such notice shall be required
in the event of an emergency), to perform, on behalf of and for the account of
Tenant, subject to reimbursement by Tenant (provided that the Allowance may be
used for such purposes), any work (i) which Landlord deems necessary to be done
on an emergency basis or (ii) which pertains to structural components, building
systems, the general utility systems for the Building or connecting the Tenant's
Work with any other work in the Building (but only to the extent the Tenant's
Work impacts the structural components of the Building or any Building systems,
and Landlord, in good faith determines that action is warrented), or (iii) which
pertains to the erection of temporary safety barricades or signs during
construction.
(e) Tenant
shall use only new, quality materials in the Tenant's Work, except where
explicitly shown in the Plans approved by Landlord and Tenant. Tenant shall
obtain, promptly after completion of the Tenant's Work, warranties of at least
one (1) year duration from the completion of the Tenant's Work against defects
in workmanship and materials on all work performed and equipment installed in
the Premises as part of the Tenant's Work, a copy of which warranties shall be
delivered to Landlord upon Tenant's receipt of the same. It is acknowledged that
the foregoing required warranties, to the extent issued by the general
contractor, shall satisfy the minimum requirements of this Paragraph
7(e).
(f) Tenant
and Tenant's Contractors, in performing work, shall do so in conformance with
the "303 East Xxxxxx Drive Contractor Regulations and Guidelines for Tenant
Improvements" (a copy of which has heretofore been made available to Tenant) and
shall not unreasonably interfere with other tenants and occupants of the
Building. Tenant and Tenant's Contractors shall make all reasonable efforts and
take all reasonable steps appropriate to construction activities undertaken in a
fully-occupied first-class office building so as not to interfere with the
operation of the Building and shall, in any event, comply with all other
reasonable rules and regulations existing from time to time at the Building.
Tenant and Tenant's Contractors shall take all reasonable precautionary steps to
minimize dust, noise and construction traffic, and to protect their facilities
and the facilities of others affected by the Tenant's Work and to properly
police same. Tenant shall not permit noise from construction of Tenant's Work to
unreasonably disturb other tenants in the Building. Tenant's Work which does so
unreasonably disturb other tenants shall be performed after regular working
hours. Construction equipment and materials are to be kept within the Premises
and delivery and loading of equipment and materials shall be done at such
locations and at such time as Landlord shall direct so as not to burden the
construction or operation of the Building.
(g) Landlord
shall have the right, upon 24 hours' prior written notice to Tenant (except that
no notice shall be required in the case of an emergency), to order Tenant or any
of Tenant's Contractors who violate the requirements imposed on Tenant or
Tenant's Contractors as set forth herein in performing work to cease work and
remove its equipment and employees from the Building. No such action properly
exercised by Landlord shall delay the Additional Premises Commencement Date, or
the payment of
7
Monthly
Additional Premises Base Rent, Additional Premises Rent Adjustments and
performance of other obligations under the Second Amendment or the balance of
the Lease.
(h) Utility
costs or charges for any service (including, but not limited to, HVAC,
electrical, hoisting and the like) to the Premises shall be the responsibility
of Tenant from the date Tenant is obligated to commence or commences the
Tenant's Work and shall be paid for by Tenant at Landlord's rates. Tenant shall
apply and pay for all utility meters required. Use of freight elevators is
subject to scheduling by Landlord. Any use of the freight elevators outside of
normal construction hours will be at Tenant's expense, in an amount equal to one
hundred six percent (106%) of the out-of-pocket expenses incurred by Landlord
relative to security personnel necessitated by such after-hours freight elevator
usage. Tenant shall arrange and pay for removal of construction debris and shall
not place debris in the Building's waste containers.
(i) Tenant
shall permit access to the Premises, and the Tenant's Work shall be subject to
inspection, by Landlord and Landlord's architects, engineers, contractors and
other representatives, at all times during the period in which the Tenant's Work
are being constructed and installed and following completion of the Tenant's
Work.
(j) Tenant
shall proceed with its work expeditiously, continuously and efficiently, from
the date Landlord tenders possession of the Premises to Tenant for the
construction of the Tenant's Work. Tenant shall notify Landlord upon Substantial
Completion and upon final completion of the Tenant's Work and shall furnish
Landlord and Landlord's title insurance company with such further documentation
as may be necessary under Paragraph 9 below.
(k) Tenant
shall have no authority to deviate from the Plans in performance of the Tenant's
Work, except as authorized by Landlord and its designated representative in
writing and except for deminimus changes based on field conditions and not
affecting the overall basic design and construction evidenced by such Plans and
not impacting the base Building systems or structural components of the
Building. Tenant shall furnish to Landlord "as-built" drawings of the Tenant's
Work consisting of record drawings of the installed condition of each component
of the Tenant's Work completed from the Plans marked up daily in the field by
the various trades. Such record drawings shall be submitted in a final package
by Tenant's general contractor to Landlord within ninety (90) days after
completion of the Tenant's Work. Final disbursement of any remaining amounts of
the Allowance will not occur until such record drawing have been received by
Landlord (the "Record Drawing Allowance Condition"); provided that if all other
conditions hereunder to the final disbursement of the Allowance have been
satisfied, then Landlord shall not withhold more than two percent (2%) of the
total Allowance being contributed hereunder as a result of the Record Drawing
Allowance Condition having not yet been satisfied.
(l) Landlord
shall have the right to require Tenant to install and maintain proper access
panels to utility lines, pipes, conduits, duct work and component parts
of
8
mechanical
and electrical systems existing or installed in the Premises in accordance with
the Lease.
(m) Tenant
shall impose on and enforce all applicable terms of this Workletter against
Tenant's Architect, Tenant's Engineer and the Tenant's Contractors.
8. INSURANCE
AND INDEMNIFICATION.
(a) In
addition to any insurance which may be required under the Lease, Tenant shall
secure, pay for and maintain or cause Tenant's Contractors to secure, pay for
and maintain during the continuance of construction and fixturing work within
the Building or Premises, insurance in the following minimum coverages and
limits of liability:
(i) Worker's
Compensation and Employer's Liability Insurance with limits of not less than
$1,000,000.00, or such higher amounts as may be required from time to time by
any employee benefit acts or other statutes applicable where the work is to be
performed, and in any event sufficient to protect Tenant's Contractors from
liability under the aforementioned acts.
(ii) Commercial
General Liability Insurance including Broad Form Contractual, Broad Form
Property Damage, Personal Injury, Completed Operations and Products coverages
(such Completed Operations and Products shall be provided for a period of three
(3) years after the date of final acceptance of the Tenant's Work), and deletion
of any exclusion pertaining to explosion, collapse and underground property
damage hazards, with limits of not less than $10,000,000.00 per occurrence and
having a general aggregate amount on a per location basis of not less than
$10,000,000.00.
(iii) Comprehensive
Automobile Liability Insurance including Owned, Non-Owned and Hired Car
coverages, with limits of not less than $2,000,000.00 combined single limit for
both bodily injury and property damage.
(iv) "All-risk"
builder's risk insurance upon the entire Tenant's Work to the full insurable
value thereof. This insurance shall include the interests of Landlord and Tenant
(and their respective contractors and subcontractors of any tier to the extent
of any insurable interest therein) in the Tenant's Work and shall insure against
the perils of fire and extended coverage and shall include "all-risk" builder's
risk insurance for physical loss or damage including, without duplication of
coverage, theft, vandalism and malicious mischief. If any portion of the
Allowance has been disbursed with respect to portions of the Tenant's Work which
are stored off the site of the Building or in transit to said site, then to the
extent such portions of the Tenant's Work are not covered under said "all-risk”
builder's risk insurance, Tenant shall secure and maintain similar property
insurance on such portions of the Tenant's Work. Any loss insured under said
"all-risk" builder's risk insurance is to be adjusted between Landlord and
Tenant
9
and made
payable to Landlord as trustee for the insureds, as their interests may
appear.
All
policies (except the worker's compensation policy) shall be endorsed to include
as additional insured parties Landlord and its partners, directors, officers,
members, employees and agents, Landlord's contractors, Landlord's architects,
and such additional persons as Landlord may designate. The waiver of subrogation
provisions contained in the Lease shall apply to all insurance policies (except
the worker's compensation policy) to be obtained by Tenant pursuant to this
paragraph. The insurance policy endorsements shall also provide that all
additional insured parties shall be given thirty (30) days1 prior written notice
of any reduction, cancellation or non-renewal of coverage (except that ten (10)
days' notice shall be sufficient in the case of cancellation for non-payment of
premium) and shall provide that the insurance coverage afforded to the
additional insured parties thereunder shall be primary to any insurance carried
independently by said additional insured parties. Additionally, where
applicable, each policy shall contain a cross-liability and severability of
interest clause.
(b) Without
limitation of the indemnification provisions contained in the Lease, to the
fullest extent permitted by law Tenant agrees to indemnify, protect, defend and
hold harmless Landlord, its partners, directors, officers, employees and agents,
from and against all claims, liabilities, losses, damages and expenses of
whatever nature arising out of or in connection with the Tenant's Work or the
entry of Tenant, Tenant's Architect, Tenant's Engineer or Tenant's Contractors
into the Building and the Premises, including, without limitation, mechanic's
liens or the cost of any repairs to the Premises or Building necessitated by
activities of Tenant, Tenant's Architect, Tenant's Engineer or Tenant's
Contractors and bodily injury to persons or damage to the property of Tenant,
its employees, agents, invitees, licensees or others, except and to the extent
that such claims, liabilities, losses, damages and expenses arise out of the
negligent act or omission of Landlord. It is understood and agreed that the
foregoing indemnity shall be in addition to the insurance requirements set forth
above and shall not be in discharge of or in substitution for same or any other
indemnity or insurance provision of the Lease.
9. ALLOWANCE;
PERIODIC PAYMENTS.
(a) Landlord
shall make a contribution (the "Allowance") towards the "hard costs" and the
"soft costs" of Tenant's Work (as such terms are hereinafter defined), in an
amount equal to $619,990.00 (i.e., being $35.00 per square foot of Rentable Area
of the Premises), on the terms and conditions hereinafter set forth. If the cost
of the Tenant's Work exceeds the Allowance, Tenant shall have sole
responsibility for the payment of such excess cost, and shall pay any such
excess when due from time to time (i.e., based on estimates from time to time of
the total cost of the Tenant's Work) prior to any further disbursement of the
Allowance. It is acknowledged that Landlord intends that not less than
$513,706.00 (i.e., being $29.00 per square feet of Rentable Area of the
Premises) of the overall Allowance be contributed to so-called "hard"
construction costs for the Tenant's Work (which "hard" construction costs, for
purposes hereof, shall include all costs and fees payable under the construction
contract with Tenant's general contractor or
10
under any
other construction contracts entered into by Tenant relative to the construction
of the Tenant's Work, together with all costs associated with permits and other
governmental approvals, the "supervisory fees" payable to Landlord under
Paragraph 5 hereof, and all costs associated with the installation of telephone
and cabling lines into the walls of the Premises), and it is hereby agreed that
no more than $106,284.00 (i.e., being $6.00 per square foot of Rentable Area of
the Premises) of the overall Allowance (herein, the "Available Soft Cost
Contribution") may be applied by Tenant to pay for so-called "soft" costs
associated with Tenant's construction of the Tenant's Work, including
moving/relocation to the Premises (which "soft" costs, for purposes hereof,
shall include all architectural and engineering costs and fees, moving expenses,
relocation costs, consulting fees and other reimburseable expenses; all costs of
furniture, fixtures and equipment; telephone and cabling costs associated with
the interior of the Premises; and all other costs and expenses paid by Tenant to
Landlord hereunder, other than the "supervisory fees" specifically set forth in
Paragraph 5 of this Agreement).
(b) Periodically,
but not more frequently than once per month, Tenant may submit to Landlord a
payment request for costs of the Tenant's Work incurred and not previously paid
naming the parties to be paid and the respective amounts of such payments, which
payment request shall be accompanied by:
(i) A
statement in writing under oath signed by Tenant stating the various contracts
entered into by Tenant for the Tenant's Work and with respect to each: the total
contract price of all labor, work, services and materials; the amounts
theretofore paid thereon; the amount requested for the current disbursement; and
the balance due for such labor, work, services and materials, after payment of
the current disbursement, to complete the Tenant's Work in accordance with the
Plans;
(ii) A
written application for payment from each of Tenant's Contractors disclosed in
the aforesaid sworn Tenant's statement wherein each of Tenant's Contractors
certifies completion and the cost of that portion of the Tenant's Work for which
payment is requested and further certifies that the cost to complete the
Tenant's Work remaining to be done under said contract will not exceed the
balance due thereunder (without including in such balance any required
retainages) and a statement in writing under oath or verified by affidavit of
Tenant's Contractor stating: the names of all persons, firms, associations,
corporations or other parties by whom labor, materials, services or work will be
rendered or furnished pursuant to the contract with Tenant's Contractor; the
nature of labor, work, services and materials to be rendered or furnished by
each of the foregoing; the amounts (in the case of firm subcontracts) and
estimated amounts (in other cases) to be paid for such labor, work, services and
materials; the amounts theretofore paid thereon; the amount requested for the
current disbursement; and the balance due for such labor, work, services and
materials, after payment of the current disbursement, to complete the work
described in such subcontract;
11
(iii) A
statement from each of the subcontractors and materialmen disclosed in the
aforesaid Tenant's Contractor's sworn statement, in writing under oath or
verified by affidavit of a duly authorized agent of such subcontractor of the
parties furnishing materials and labor to it or for their account, and of the
amounts due or to become due each;
(iv) Certificate
for payment executed by Tenant, acting in its capacity as the architect for the
Tenant's Work, on American Institute of Architect's Form G-703;
(v) Originals
of partial waivers of lien from each of Tenant's Contractors and all materialmen
and vendors requesting payment covering such requested payment; and
(vi) Evidence
reasonably satisfactory to Landlord that Tenant has paid or will pay,
simultaneous with payment by Landlord, Tenant's proportionate share of the costs
of the Tenant's Work.
Provided
that the foregoing deliveries have been made, and so long as Tenant is not then
in default hereunder or under the Lease, Landlord shall disburse portions of the
Allowance in the amount of the requested disbursement no later than thirty (30)
days after each such request therefor.
(c) Landlord
may make payments of the Allowance through a construction escrow established
with Landlord's title insurance company pursuant to which escrow said title
company shall examine the sworn statements and lien waivers provided by Tenant
and Tenant's Contractors and, if so required by Landlord, insure against
mechanic lien claims for work done through the date of Tenant's Contractors'
most recent request for payment, in which case Tenant agrees to comply with the
reasonable terms and conditions of such construction escrow. The escrowee's
charges therefor shall be deemed part of the costs of the Tenant's Work.
Notwithstanding anything to the contrary contained herein or in the Lease, in
the event Landlord makes payments of the Allowance through a construction escrow
as provided in this paragraph, Tenant's Contractors may, at their own expense,
arrange to provide "trailing" waivers (lien waivers which are dated up to thirty
(30) days earlier than the contractor's request for payment) if Landlord's
lender so permits and Landlord's title insurance company nevertheless provides
the insurance called for by this paragraph.
(d) Within
thirty (30) days after final completion and installation of the Tenant's Work,
Tenant shall submit to Landlord a detailed breakdown of the total amount of the
costs of the Tenant's Work, together with final waivers of liens, contractors'
affidavits, and architects' certificates in such form as may be reasonably
required by Landlord, Landlord's title insurance company and Landlord's lender,
if any, from all parties performing labor or supplying materials or services in
connection with the Tenant's Work, showing that all of said parties have been
compensated in full and waiving all liens in connection with the Premises and
Building.
12
(e) Landlord
has no obligation to disburse any portion of the Allowance during any period
when Tenant is in default hereunder or under the Lease. Disbursement of any
portion of the Allowance shall not be deemed a waiver of Tenant's obligation to
comply with such provisions. Tenant shall be responsible for the appropriateness
and completeness of the contractors' affidavits and waivers of lien and approval
of any of such work; Landlord shall have no responsibility for any of the
foregoing.
(f) Landlord
shall have the right to withhold a 10% retainage from the Allowance until final
disbursement of the Allowance is due hereunder (subject, however, to the terms
of Paragraph 7(k) above). Landlord shall make final disbursement of the
Allowance, upon Tenant's satisfaction of the terms of Paragraphs 9(b) and 9(d)
above and Tenant's final request for payment (which request shall be made no
earlier than the Additional Premises Commencement Date) and certification that
the entire Tenant's Work has been performed and that the amounts for which
payment is requested are due and owing, which disbursement shall be made within
thirty (30) days after presentation by Tenant to Landlord of request for payment
and appropriate and complete contractor's affidavits and waivers of lien showing
that the work covered thereby has been performed in the Premises.
(g) In
the event that the cost of Tenant's Work and such other items for which the
Allowance may be applied should for any reason be less than the full amount of
the Allowance, Tenant shall be entitled to receive such difference either in
cash or as a credit against Monthly Additional Premises Base Rent for the
Additional Premises next coming due under the Lease (with such choice being made
at Tenant's sole election); provided that Tenant shall not be so entitled to any
portion of such difference exceeding the unused portion of the "Available Soft
Cost Contribution" (i.e., meaning that portion of the Available Soft Cost
Contribution not otherwise used to fund "soft" costs as described in Paragraph
9(a) above).
10. MISCELLANEOUS.
(a) Except
as herein expressly set forth or in the Lease, Landlord has no agreement with
Tenant and has no obligation to do any work with respect to the
Premises.
(b) Time
is of the essence under this Workletter.
(c) Any
person signing this Workletter on behalf of Landlord and Tenant warrants and
represents he has authority to do so.
(d) If
Tenant fails to make any payment relating to the Tenant's Work as required
hereunder, Landlord, at its option, may complete the Tenant's Work pursuant to
the approved Plans and continue to hold Tenant liable for the costs thereof and
all other costs due to Landlord. Tenant's failure to pay any amounts owed by
Tenant hereunder when due, which failure continues for ten (10) business days
after written notice to
13
Tenant of
such failure, or Tenant's failure to perform any other obligations hereunder,
which failure continues for fifteen (15) business days after written notice to
Tenant of such failure (which 15-business day period shall be extended for the
time reasonably required to complete such cure, not to exceed, in any event, an
additional seventy-five (75) day period, if such failure cannot reasonably be
cured within said 15-business day period and Tenant commences to cure such
failure within said 15-business day period and thereafter diligently and
continuously proceeds to cure such failure), shall, in each such case, also
constitute a Default under the Lease and Landlord shall have all the rights and
remedies granted to Landlord under the Lease for nonpayment of any amounts owed
thereunder or failure by Tenant to perform its obligations
thereunder.
(e) Notices
under this Workletter shall be given in the same manner as under the
Lease.
(f) The
liability of Landlord hereunder or under any amendment hereto or any instrument
or document executed in connection herewith shall be limited as provided in
Section 26.08 of the Lease.
(g) The
headings set forth herein are for convenience only.
(h) This
Workletter and the Lease sets forth the entire agreement of Tenant and Landlord
regarding the Tenant's Work. This Workletter may only be amended if in writing,
duly executed by both Landlord and Tenant.
(i) Tenant
shall act as architect (sometimes referred to herein as "Tenant's Architect")
for purposes of preparing the architectural portions of the Plans for the
Tenant's Work and Tenant shall also act as engineer (sometimes referred to
herein as "Tenant's Engineer") for purposes of preparing the mechanical,
plumbing, electrical, fire protection and life safety portions of the
Plans.
(j) Except
for the Premises being leased under the Second Amendment, this Agreement shall
not be deemed applicable to any additional space added to the leased premises
under the Lease at any time or from time to time, whether by any options under
the Lease or otherwise, or to any portion of the leased premises under the Lease
or any additions thereto in the event of a renewal or extension of the original
term of the Lease, whether by any options under the Lease or otherwise, except
as expressly provided in any amendment or supplement to the Lease.
14
11. DESIGNATED
REPRESENTATIVES; COOPERATION.
(a) Landlord
and Tenant shall each appoint one qualified and readily available representative
with the authority to give and receive notices, other materials and information
relating to the Tenant's Work, and approvals under this Agreement. Initially,
Landlord's representative shall be Xxxxxxx Xxxxxxxx, whose address is Xxxxx
Interests Limited Partnership, 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx 00000
and whose telephone number is (000) 000-0000, and Tenant's representative shall
be Xxxxxxx X. Xxxxxxxx, whose address is c/o Consoer Xxxxxxxx Envirodyne
Engineers, Inc., 000 Xxxx Xxxxxx Xxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxxx 00000 and
whose telephone number is (000) 000-0000.
(b) Tenant
and Landlord agree to make their respective architects and engineers available
to the other to answer questions and provide clarifications and additional
information as is reasonable for the timely progress and completion of the
Tenant's Work.
[END OF WORKLETTER - ATTACHMENTS
FOLLOW]
15
ATTACHMENT 1(a) TO
WORKLETTER
APPROVED GENERAL
CONTRACTORS
1.
|
Xxxxx
Construction
|
2.
|
Interior
Construction Group
|
3.
|
Xxxxx
Construction
|
4.
|
Xxxxxx
Construction
|
1(a)-1
ATTACHMENT 1(b) TO
WORKLETTER
APPROVED BUILDING SYSTEM
CONTRACTORS
[Attached]
1(b)-1
000 Xxxx
Xxxxxx
PRE-APPROVED SUB-CONTRACTOR
LIST
Electrical:
|
|
Shamrock
Electric Co,
|
P.E.I.,
Inc.
|
000 X.
Xxxxx
|
0000 X. 000xx
Xxxxxx
|
Xxxxx
000
|
Xxxxxx
Xxxx, XX
00000
|
Xxxxxxx,
XX 00000
|
phone:
(000) 000-0000
|
phone: (000) 000-0000
|
fax: (000) 000-0000
|
fax:
(000) 000-0000
|
contact: Xxxx Xxxxxxxx
|
contact: Xxx Xxxxxxx,
VP
|
|
Mechanical:
|
|
Hayward, Inc.
|
X.
X. Xxxxx Inc.
|
000 X. Xxxx Xxxx
Xxxx
|
0000 Xxxxxxx
xxxxx
|
Xxxxx
000
|
Xxxxxxxxxx,
XX, 00000-0000
|
Wood
Xxxx, XX 00000
|
phone:
(000) 000-0000
|
phone: (000) 000-0000
|
fax: (000)
000-0000
|
fax: (000)
000-0000
|
contact: Xxxx
Xxxxxx
|
contact: Xxx
Xxxxxxxx
|
|
Mechanical -
Controls
|
Mechanical -
Balancing
|
Siemens
Building Technologies Inc.
|
Aero
Testing and Balancing Systems Inc.
|
Xxxxxx Division
|
0000 X. Xxxxxxx
Xxxxxx
|
000 Xxxxxx
Xxxxx
|
Xxxxxxx,
XX 00000
|
Xxxxx
Xxxxxxxx, XX 00000
|
phone: (000)
000-0000
|
phone:
(000) 000-0000
|
fax: (000)
000-0000
|
fax: (000)
000-0000
|
contact: Xxxx
Xxxxxxxx
|
contact: Xxxxx
Xxxxxx
|
|
Plumbing:
|
|
Great
Lakes Plumbing & Heating Co.
|
Fettes,
Love & Xxxxxx
|
0000
Xxxx Xxxxxxxx Xxxxxx
|
0000
X. Xxxxxxx
Xxxxxx
|
Xxxxxxx,
XX 00000
|
Xxxxxxx,
XX 00000
|
phone: (000)
000-0000
|
phone:
(000) 000-0000
|
fax: (000)
000-0000
|
fax: (000)
000-0000
|
contact: Xxx
Xxxx
|
contact: Xxxx
Xxxxxx
|
Fire Protection –
Sprinklers:
|
||
Great
Lakes Plumbing & Heating Co.
|
||
0000 Xxxx Xxxxxxxx
Xxxxxx
|
||
Xxxxxxx,
L 60639
|
||
phone: (000)
000-0000
|
||
fax: (000)
000-0000
|
||
contact: Xxx
Xxxxx
|
||
Fire Protection
Controls
|
||
Siemens
Building Technologies, Inc.
|
Contech
MSI Co.
|
|
Siemens
Cerberus Division
|
Fire
Detection & Signaling System
|
|
0000
X. Xxxxxxx
Xxxxxx, #00
|
0000 Xxxxxxx
Xxxxx
|
|
Xxxx
Xxxxx, XX 00000
|
Xxxxxxx
Xxxxxxx, XX 00000
|
|
phone: (000)
000-0000
|
phone: (000)
000-0000
|
|
fax: (000)
000-0000
|
fax: (000)
000-0000
|
|
contact: Xxxxxx
X. Xxxxxxxx
|
contact: Xxx
Xxxxx
|
|
Carpeting/Flooring:
|
||
Flooring
Resources Corporation
|
Peerless
Rug Company
|
|
000
Xxxxx Xxxxxxxxx
|
3033 North Lincoln
Avenue
|
|
Elk Grove Village, IL
60007
|
Xxxxxxx,
XX 00000
|
|
phone: (000)
000-0000
|
phone: (000)
000-0000
|
|
fax: (000)
000-0000
|
fax: (000)
000-0000
|
|
contact: Xxxxx
X. Xxxxxxx
|
contact: Xxx Xxxxx
|
Carpentor
XxXxxxx
Bros. Company
|
0000
Xxxxx Xxxxxx
Xxxxxx
|
Xxxxxxx, XX
00000
|
Phone: (000)
000-0000
|
fax: (000)
000-0000
|
contact: Xxxxx
X. Xxxxxxx
|
Harware/Locks
Suburban
Door Check & Lock
Service, Inc.
|
000
Xxxx Xxxxx Xxxxxx
|
Xxxxxxxx,
XX 00000
|
Phone: (000)
000-0000
|
fax: (000)
000-0000
|
contact: Xxxx
Xxxxxx or Xxxx Xxxxxx
|
Structural
Engineer
|
Xxxxxx,
Xxxxxxx &
Associates, Inc.
|
000
Xxxx Xxxxxxxx Xxxxxx
|
Xxxxx
0000
|
Xxxxxxx,
XX 00000
|
phone: (000)
000-0000
|
fax: (000)
000-0000
|
contact: Xxxxx
Xxx
|
Telecommunications:
|
Infrastructure
Management Company
|
000
X. Xxxxxx Xxxxx
|
Xxxxx
0000
|
Xxxxxxx,
XX 00000
|
phone:
(000) 000-0000
|
fax: (000)
000-0000
|
contact: Xxxxxxx Xxxxxx
|
ATTACHMENT 2 TO
WORKLETTER
MINIMUM INFORMATION FOR
PLANS
Plans and
specifications (including architectural, engineering and structural, as
applicable, working drawings) required for the supply, installation and
finishing of the Tenant's Work and including, without limitation: finish
schedule; material submittals; graphics and signage; interior and demising
partitions; doors, frames and hardware; ceilings; wiring; lights and switches;
telephone and electrical outlets; floor coverings; wall coverings; all millwork
and built-ins; appliances; plumbing fixtures; refrigeration equipment; and other
equipment, equipment connections and facilities attached to and forming a part
of the Building.
EXHIBIT
C
REQUIRED TENANT'S
WORK
Sprinkler
work at the Additional Premises as required by City of Chicago
code.
C-1
FIRST AMENDMENT TO
LEASE
THIS FIRST AMENDMENT TO LEASE
("Amendment") is made
effective as of the 1st day of October,
1999 by and between
303 XXXXXX REALTY
L.L.C., a Delaware limited liability company (hereinafter referred to as
"Landlord"), and XXXXXXX
XXXXXXXX ENVIRODYNE ENGINEERS, INC., a Delaware
corporation (hereinafter referred to as "Tenant").
RECITALS
A. Landlord
(as successor-in-interest to the original named landlord), as landlord, and
Tenant are parties to that certain Office Lease dated January 1, 1996 (the "Original Lease"), which
Original Lease includes as a part thereof that certain Commencement Date
Agreement dated January 1, 1996 (i.e., being Rider
1) and Rider 2 ("Rider 2") (said Original
Lease, as amended hereby and as further amended from time to time, the "Lease"), whereby Tenant leases
certain premises ("Premises") stipulated to
contain 56,520 square feet situated on
the 5th and
6th floors of the
Building commonly known as 000 Xxxx Xxxxxx Xxxxx,
Xxxxxxx, Xxxxxxxx; and
B. Landlord
and Tenant desire to amend the Lease with respect to certain expansion rights
and storage space rights set forth in the Lease and for other matters
hereinafter described.
NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements herein
contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree as
follows:
1. Incorporation
of Recitals and Exhibits. The foregoing Recitals and the Exhibit attached
to this Amendment are, by this reference, hereby incorporated herein as if the
same had been fully set forth in this Amendment.
2. Defined
Terms. All capitalized and other terms used but not otherwise defined in
this Amendment shall have the same meaning as set forth in the
Lease.
3. Storage
Space. The parties acknowledge that, pursuant to Section 9 of Rider 2, Tenant is currently
leasing certain Storage Space located on the 29th Floor
of the Building and stipulated to contain 1,800 square feet of Rentable
Area (which Storage Space is being leased in lieu of the initial Storage Space
located on the concourse level of the Building as originally provided in said
Section 9). Notwithstanding anything
contained in said Section 9 of Rider 2 to the contrary, it is
hereby agreed as follows:
(a) Pursuant
to Section 9 of
Rider 2 to the
Lease, Tenant hereby notifies Landlord, and the parties hereby agree, that
Tenant shall continue to lease the above described Storage Space during the
entire Term of the Lease, upon all of the terms and
conditions
as set forth in Section 9 of Rider 2 to the Lease (as said Section is amended by
this Section 3), including, without
limitation, Landlord's right to relocate such Storage Space as provided in
subsection C of said Section 9;
(b) Commencing
on the date hereof and continuing for the balance of the Term of the Lease,
Tenant shall pay additional rent for the Storage Space at the annual rate of
$23,000.00 for the balance of calendar year 1999 (prorated for that portion of
1999 that Tenant so leases the Storage Space) and calendar year 2000, with a
compounding increase of 3% per calendar year (or portion thereof) for each year
(or portion thereof) thereafter occurring within the Term of the Lease;
and
(c) Tenant
hereby acknowledges that it has accepted the foregoing Storage Space, and that
it shall continue to lease the same, in its "as-is" condition existing as of the
date hereof.
4. First
Expansion Option. Section 4 of Rider 2 is hereby deleted from the Lease
in its entirety and the following provision is hereby inserted in lieu
thereof:
"4. First
Expansion Option.
A.
Subject to the provisions of this Section 4, Tenant shall have the option (the
"First Expansion
Option") to lease an area (the "First Expansion Space") of the
Building consisting of a portion of the space identified on Exhibit G to this
Lease, which First Expansion Space shall be comprised of no less than 6,300
rentable square feet and no more than 11,000 rentable square feet (provided that
the exact size and location of the First Expansion Space shall be determined by
Landlord in its sole and absolute discretion), if:
1. Landlord
receives notice (the "First
Expansion Notice") from Tenant of its exercise of its First Expansion
Option no later than September 30, 2000 (which notice shall be irrevocable on
Tenant's part, but Tenant's rights shall be subject to the provisions of this
Section 4); and
2. at
the time Tenant delivers the First Expansion Notice:
a. a
Default under this Lease has not occurred and is then continuing;
and
b. the
original named Tenant herein or its Affiliates continues to occupy at least one
full floor of the Building pursuant to this Lease; and
c. Tenant
has not exercised its Acceleration Option in accordance with Section 2 of this
Rider 2; and
2
3. the
First Expansion Space is intended for the exclusive use of Tenant and its
Affiliates during the Term.
B. During
the Term of the Lease, Tenant shall pay Monthly Base Rent for the First
Expansion Space at the "Prevailing Market for the Expansion Space" (as defined
in subsection I below) and Rent Adjustment for the First Expansion
Space.
C. Within
a reasonable time after receipt of the First Expansion Notice, Landlord shall
prepare an amendment (the "First Expansion Amendment") to
reflect the size and location of the First Expansion Space, commencement date
(the "First Expansion
Commencement Date") of the term for the First Expansion Space (which
shall be a date determined in Landlord's sole and absolute discretion, provided
that said First Expansion Commencement Date shall be no earlier than October 1,
2001 and no later than September 30, 2003) and the changes in Monthly Base Rent,
Rentable Area of the Premises, Tenant's Share, Acceleration Amounts (under
Section 2 of this Rider 2 above), and other appropriate terms on account of the
addition of the First Expansion Space to the Premises. The First Expansion
Amendment shall be executed by Tenant and returned to Landlord within ten (10)
days after its submission to Tenant.
D. Effective
on the First Expansion Commencement Date, the First Expansion Space shall be
deemed added to the Premises subject to all the terms and conditions of the
Lease, except as otherwise provided in this Section 4 and except that no
allowances, credits, abatements or other rent limitations set forth in the Lease
shall apply to the First Expansion Space except to the extent included in the
Prevailing Market for the Expansion Space.
E. The
First Expansion Space shall be tendered to and accepted by Tenant in its "as-is"
condition and "as-built" configuration existing on the earlier of the date
Tenant takes possession of the First Expansion Space or as of the First
Expansion Commencement Date.
F. If
Tenant exercises its rights hereunder by sending the First Expansion Notice as
provided in subsection A.1, Tenant's rights hereunder shall, at Landlord's sole
option, nevertheless terminate if, after Tenant's delivery of the First
Expansion Notice but prior to the commencing of the term for the First Expansion
Space, Tenant commits a default under the Lease, or assigns the Lease (other
than to an Affiliate), or the original named Tenant herein or its Affiliates
cease to occupy at least one full floor of the Building pursuant to this Lease
or Tenant exercises its Acceleration Option pursuant to Section 2.
G. Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights hereunder.
3
H. The
rights of Tenant under this Section 4 are personal to the original Tenant named
in this Lease and its Affiliates and are not assignable to any other person or
entity.
I. For
purposes of this Section 4, "Prevailing Market for the Expansion
Space" means the monthly base rent and electricity charges which are
being offered or which would be offered by Landlord and other landlords of
comparable downtown Chicago highrise office buildings to bona fide prospective
tenants with a reputation and financial condition similar to Tenant's at that
time, for leases with a term commencing at or about the First Expansion
Commencement Date and continuing for the period of the lease of the space in
question for comparable office space and improvements therein, taking into
account concessions which are or would be offered in such circumstances. If
Landlord and Tenant are unable to agree as to what the Prevailing Market for the
Expansion Space is for the balance of the Term with thirty (30) days after
Landlord's receipt of the First Expansion Notice, the Prevailing Market for the
Expansion Space for the balance of the Term shall be determined as
follows:
Within
ten (10) days after Landlord and Tenant determine that they cannot reach an
agreement as to Prevailing Market for the Expansion Space as provided above,
Landlord and Tenant, at their respective expense, shall each cause an
independent MAI appraiser with not less than ten years of experience in the
downtown Chicago market and then actively engaged in the real estate appraisal
business in such area to determine the Prevailing Market for the Expansion Space
on a basis consistent with the terms of this Lease, said determination to be
made within thirty (30) days of their appointment by Landlord and Tenant,
respectively. In the event that the determination differs by less than ten
percent (l0%), the Prevailing Market for the Expansion Space shall be the
average of the two. In the event that the determination differs by more than ten
percent (l0%), then the two appraisers shall select a third independent MAI
appraiser with the aforesaid qualifications within fifteen (15) days, the fees
and expenses of which third appraiser shall be paid fifty percent (50%) by
Landlord and fifty percent (50%) by Tenant. If the two appraisers cannot agree
upon a third appraiser within said fifteen (15)-day period, then either Landlord
or Tenant may request that one be appointed by the local office of the American
Arbitration Association. Said third appraiser shall, within fifteen days of his
selection (or appointment, as applicable), designate which of the two
determinations made by said MAI appraisers selected by Landlord and Tenant most
accurately reflects Prevailing Market for the Expansion Space. The determination
made in accordance with the foregoing shall be final and binding on Landlord and
Tenant."
5. Exhibit
G. The parties hereby agree that Exhibit A to this Amendment shall be
deemed to be Exhibit G to the Original Lease.
4
6. Second
Expansion Option. Section 5 of Rider 2 attached to and incorporated as
part of the Lease (i.e., being entitled "Second Expansion Option") is hereby
deleted in its entirety from the Lease and shall be deemed null and
void.
7. Real
Estate Brokers. Tenant represents and warrants that Tenant has not dealt
with any brokers in connection with this Amendment. Tenant agrees to indemnify
and hold Landlord, its partners, its members, the managing agent and the leasing
agent of the Building harmless from all losses, damages, liabilities and
expenses (including reasonable attorneys' fees) arising from any claims or
demands of any broker or brokers or finders with whom Tenant dealt for any
commission alleged to be due such broker or brokers or finders in connection
with this Amendment.
8. Notice.
Landlord's notice address as described in Article Twenty-Four of the Original
Lease is hereby deleted and the following is substituted therefor:
Notices
to Landlord shall be addressed to:
303
Xxxxxx Realty L.L.C.
c/x
Xxxxx
000 Xxxx
Xxxxxx Xxxxx
Xxxxxxx,
Xxxxxxxx 00000
Attention: Property
Manager
with an
additional copy to:
Xxxxx
Interests Limited Partnership
00 Xxxx
Xxxxxxx Xxxxxx
Xxxxx
000
Xxxxxxx,
Xxxxxxxx 00000
Attention: C.
Xxxxx Xxxxxxxxx
and
to:
303
Xxxxxx Realty L.L.C.
c/o X.X.
Xxxxxx Investment Management Inc.
000 Xxxxx
Xxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Attention: Xxx
X. Xxxx
5
9. Exculpatory
Provisions. The following additional language is hereby added to the end
of Section 26.08 of the Original Lease:
Without
limitation of the foregoing terms of this Section 26.08, it is hereby understood
and agreed that the liability of any Landlord under this Lease or any amendment
to this Lease, or any instrument or document executed in connection with this
Lease, shall be limited to and enforceable solely against the assets of such
Landlord constituting an interest in the Building and not any other assets of
such Landlord. Assets of a Landlord which is a partnership or limited liability
company do not include the assets of the partners or members of such Landlord,
and any negative capital account of a partner or member in a partnership or
limited liability company which is a Landlord, and any obligation of a partner
or member to contribute capital to the partnership or limited liability company
which is Landlord, shall not be deemed to be assets of the partnership or
limited liability company which is the Landlord. No directors, officers,
employees, managers, members, partners or shareholders of any corporation,
partnership or limited liability company which is Landlord shall have any
personal liability arising from or in connection with this Lease (as the same
may be amended from time to time).
10. Inapplicable
Provisions. The parties hereby acknowledge and agree that the terms of
(i) the Workletter Agreement attached and Exhibit B to the Original Lease shall
not be applicable to any space other than the initial Premises leased under the
Original Lease, and (ii) Section 8 of Rider 2 (i.e., such Section 8 being
entitled "Available Space Option"), are no longer applicable.
11. Entire
Agreement. The entire agreement between Landlord and Tenant is set forth
in this Amendment and in the Lease (as amended hereby). No prior agreement or
understanding with respect to the Lease and this Amendment shall be valid or of
any force or effect.
12. Lease in
Full Force and Effect. Except as herein provided, all of the terms and
provisions of the Lease shall remain in full force and effect, and are hereby
ratified and confirmed. Without limitation of the foregoing, Section 26.08 of
the Lease (as amended hereby) shall apply to this Amendment and to the Lease (as
amended hereby).
[SIGNATURES
ON FOLLOWING PAGE]
6
IN WITNESS WHEREOF, Landlord
and Tenant have executed this Amendment as of the day and year hereinabove set
forth.
TENANT:
|
LANDLORD:
|
||
XXXXXXX
XXXXXXXX
|
303 XXXXXX REALTY L.L.C., a | ||
ENVIRODYNE ENGINEERS,
INC.,
|
Delaware
limited liability company
|
||
a
Delaware corporation
|
|||
By:
|
Hines
Three Illinois Center Associates
|
||
Limited Partnership, its
managing member
|
|||
By: /s/ Xxxxxx X.
Xxxxxxx
|
|||
Name:
Xxxxxx X.
Xxxxxxx
|
By:
Hines Three Illinois
Center L.L.C.,
|
||
Title:
President
|
a
general partner
|
||
By:
Xxxxx Interests
Limited
|
|||
ATTEST:
|
Partnership,
a member
|
||
By: Hines Holding,
Inc.,
|
|||
By: /s/ Xxxxxxx X.
Xxxxxxxx
|
its
general partner
|
||
Name:
Xxxxxxx X.
Xxxxxxxx
|
|||
Title:
Secretary
|
|||
By:
/s/ C. Xxxxx
Xxxxxxxxx
|
|||
Name:
C. Xxxxx Xxxxxxxxx
|
|||
Title:
Executive Vice President
|
7
Exhibit
A
000
Xxxx Xxxxxx Xxxxx, Xxxxxxx, XX
FLOOR
|
|
28
|
Not
included in Possible Expansion Space
|
27
|
Not
included in Possible Expansion Space
|
26
|
Not
included in Possible Expansion Space
|
25
|
Not
included in Possible Expansion Space
|
24
|
Not
included in Possible Expansion Space
|
23
|
Not
included in Possible Expansion Space
|
22
|
Not
included in Possible Expansion Space
|
21
|
Not
included in Possible Expansion Space
|
20
|
Not
included in Possible Expansion Space
|
19
|
Not
included in Possible Expansion Space
|
18
|
Not
included in Possible Expansion Space
|
17
|
Not
included in Possible Expansion Space
|
16
|
Not
included in Possible Expansion Space
|
15
|
Not
included in Possible Expansion Space
|
14
|
Not
included in Possible Expansion Space
|
13
|
Not
included in Possible Expansion Space
|
12
|
Not
included in Possible Expansion Space
|
11
|
Possible
Expansion Space
|
10
|
Possible
Expansion Space
|
9
|
Possible
Expansion Space
|
8
|
Possible
Expansion Space
|
7
|
Possible
Expansion Space
|
6
|
Possible
Expansion Space
|
5
|
Possible
Expansion Space
|
4
|
Possible
Expansion Space
|
3
|
Possible
Expansion Space
|
2
|
Possible
Expansion Space
|
Lobby
|
Not
included in Possible Expansion Space
|
Concourse
|
Not
included in Possible Expansion
Space
|
OFFICE
LEASE
BETWEEN
METROPOLITAN
LIFE INSURANCE COMPANY (LANDLORD)
AND
XXXXXXX
XXXXXXXX ENVIRODYNE ENGINEERS, INC.,
a
Delaware corporation (TENANT)
DATED:
January 1, 1996
TABLE OF
CONTENTS
PAGE
ARTICLE ONE – BASIC LEASE
PROVISIONS
|
1
|
1.01
BASIC LEASE PROVISIONS
|
1
|
1.02
ENUMERATION OF EXHIBITS
|
2
|
1.03
DEFINITIONS
|
2
|
ARTICLE TWO – PREMISES, TERM AND FAILURE TO
GIVE POSSESSION
|
8
|
2.01
LEASE OF PREMISES
|
8
|
2.02
TERM
|
8
|
2.03
FAILURE TO GIVE POSSESSION
|
8
|
2.04
AREA OF PREMISES
|
9
|
2.05
CONDITION OF PREMISES
|
9
|
ARTICLE
THREE – RENT
|
9
|
ARTICLE FOUR – RENT ADJUSTMENTS AND
PAYMENTS
|
10
|
4.01
RENT ADJUSTMENTS
|
10
|
4.02
STATEMENT OF LANDLORD
|
10
|
4.03
BOOKS AND RECORDS
|
11
|
4.04
PARTIAL OCCUPANCY
|
12
|
ARTICLE FIVE – INTENTIONALLY
OMITTED
|
13
|
ARTICLE SIX – SERVICES
|
13
|
6.01
LANDLORD’S GENERAL SERVICES
|
13
|
6.02
ELECTRICAL SERVICES
|
14
|
6.03
ADDITIONAL AND AFTER-HOUR SERVICES
|
15
|
6.04
PHONE SERVICES
|
15
|
6.05
DELAYS IN FURNISHING SERVICES
|
16
|
ARTICLE SEVEN – POSSESSION, USE AND CONDITION
OF PREMISES
|
17
|
7.01 POSSESSION AND
USE OF
PREMISES
|
17
|
7.02
LANDLORD ACCESS TO PREMISES
|
18
|
7.03
QUIET ENJOYMENT
|
19
|
ARTICLE EIGHT – MAINTENANCE
|
20
|
8.01
LANDLORD’S MAINTENANCE
|
20
|
8.02
TENANT’S MAINTENANCE
|
20
|
ARTICLE NINE – ALTERATIONS AND
IMPROVEMENTS
|
21
|
9.01
TENANT’S ALTERATIONS
|
21
|
i
9.02
LIENS
|
23
|
ARTICLE TEN – ASSIGNMENT AND
SUBLETTING
|
23
|
10.01
ASSIGNMENT AND SUBLETTING
|
23
|
10.02
RECAPTURE
|
25
|
10.03
EXCESS RENT
|
25
|
10.04
TENANT LIABILITY
|
26
|
10.05
ASSUMPTION AND ATTORNMENT
|
26
|
ARTICLE ELEVEN – DEFAULT AND
REMEDIES
|
27
|
11.01
EVENTS OF DEFAULT
|
27
|
11.02
LANDLORD’S REMEDIES
|
28
|
11.03
ATTORNEY’S FEES
|
29
|
11.04
BANKRUPTCY
|
29
|
ARTICLE TWELVE – SURRENDER OF
PREMISES
|
31
|
12.01
IN GENERAL
|
31
|
12.02
LANDLORD’S RIGHTS
|
32
|
ARTICLE THIRTEEN – HOLDING
OVER
|
32
|
ARTICLE FOURTEEN – DAMAGE BY FIRE OR OTHER
CASUALTY
|
32
|
14.01
SUBSTANTIAL UNTENANTABILITY
|
33
|
14.02
INSUBSTANTIAL UNTENANTABILITY
|
34
|
14.03
RENT ABATEMENT
|
34
|
ARTICLE FIFTEEN – EMINENT
DOMAIN
|
34
|
15.01
TAKING OF WHOLE OR SUBSTANTIAL PART
|
34
|
15.02
TAKING OF PART
|
35
|
15.03
COMPENSATION
|
35
|
ARTICLE SIXTEEN – INSURANCE
|
36
|
16.01
TENANT’S INSURANCE
|
36
|
16.02
FORM OF POLICIES
|
36
|
16.03
LANDLORD’S INSURANCE
|
37
|
16.04
WAIVER OF SUBROGATION
|
37
|
16.05
NOTICE OF CASUALTY
|
39
|
ARTICLE SEVENTEEN –
WAIVER OF CLAIMS AND
INDEMNITY
|
39
|
17.01
WAIVER OF CLAIMS
|
39
|
17.02
INDEMNITY BY TENANT
|
40
|
ARTICLE EIGHTEEN – RULES AND
REGULATIONS
|
40
|
18.01
RULES
|
40
|
ii
18.02
ENFORCEMENT
|
40
|
ARTICLE NINETEEN – LANDLORD’S RESERVED
RIGHTS
|
41
|
ARTICLE TWENTY – ESTOPPEL
CERTIFICATE
|
42
|
20.01
IN GENERAL
|
42
|
20.02
ENFORCEMENT
|
42
|
ARTICLE TWENTY-ONE –
RELOCATION OF
TENANT
|
42
|
ARTICLE TWENTY-TWO –
REAL ESTATE
BROKERS
|
43
|
ARTICLE TWENTY-THREE –
MORTGAGEE
PROTECTION
|
44
|
23.01
SUBORDINATION AND ATTORNMENT
|
44
|
23.02
MORTGAGEE PROTECTION
|
44
|
ARTICLE TWENTY-FOUR –
NOTICES
|
45
|
ARTICLE TWENTY-FIVE –
INTENTIONALLY
OMITTED
|
46
|
ARTICLE TWENTY-SIX –
MISCELLANEOUS
|
46
|
26.01
LATE CHARGES
|
46
|
26.02
WAIVER OF JURY TRIAL
|
47
|
26.03
DEFAULT UNDER OTHER LEASE
|
47
|
26.04
OPTION
|
47
|
26.05
TENANT AUTHORITY
|
47
|
26.06
ENTIRE AGREEMENT
|
47
|
26.07
MODIFICATION OF LEASE FOR BENEFIT OF MORTGAGEE
|
48
|
26.08
EXCULPATION
|
48
|
26.09
ACCORD AND SATISFACTION
|
48
|
26.10
LANDLORD’S OBLIGATIONS ON SALE OF BUILDING
|
48
|
26.11
BINDING EFFECT
|
49
|
26.12
CAPTIONS
|
49
|
26.13
APPLICABLE LAW
|
49
|
26.14
ABANDONMENT
|
49
|
26.15
LANDLORD’S RIGHT TO PERFORM TENANT’S DUTIES
|
49
|
26.16
RIDERS AND EXHIBITS
|
50
|
Exhibits and
Rider
|
EXHIBIT
A. Plan of Premises
EXHIBIT
B. Workletter Agreement
EXHIBIT
C. Building Specifications
EXHIBIT
D. Rules and Regulations
EXHIBIT
E. Intentionally
Deleted
iii
EXHIBIT
F. Cleaning Specifications
RIDER
1. Commencement
Date Agreement
RIDER
2. Additional
Provisions
iv
OFFICE
LEASE
ARTICLE
ONE
BASIC
LEASE PROVISIONS
1.01
|
BASIC LEASE PROVISIONS -
In the event of any conflict between these Basic Lease Provisions and any
other Lease provision, such other Lease provision shall
control.
|
(1) BUILDING
AND ADDRESS:
000 Xxxx
Xxxxxx Xxxxx
Xxxxxxx,
Xxxxxxxx 00000-0000
(2) LANDLORD
AND ADDRESS:
METROPOLITAN
LIFE INSURANCE COMPANY
c/o MS
Management Services
000 Xxxx
Xxxxxx Xxxxx - Xxxxxxxxx Xxxxx
Xxxxxxx,
Xxxxxxxx 00000-0000
(3) TENANT
AND CURRENT ADDRESS:
XXXXXXX XXXXXXXX ENVIRODYNE
ENGINEERS, INC.
(4) DATE
OF LEASE: January 1, 1996
(5) LEASE
TERM: ten (10) years
(6) PROJECTED
COMMENCEMENT DATE: October 1, 1996
(7) PROJECTED
EXPIRATION DATE: 120 months after the Commencement Date
(8) MONTHLY
BASE RENT:
(a) For
the Premises:
Period
|
Monthly
|
Annually
|
Rate/SF
|
Months
1-3
|
$56,944.73
|
$683,336.76
|
$12.09
|
Months
4-15
|
58,417.35
|
701,008.20
|
12.40
|
Months
16-27
|
59,962.39
|
719,548.68
|
12.73
|
Months
28-39
|
61,555.71
|
738,668.52
|
13.07
|
Months
40-43
|
63,221.46
|
758,657.52
|
13.42
|
Months
44-60
|
55,980.99
|
671,771.88
|
11.89
|
Months
61-67
|
61,977.19
|
743,726.28
|
13.16
|
Months
68-120
|
64,688.44
|
776,261.28
|
13.73
|
(9) RENTABLE
AREA OF THE BUILDING: 770,130 square feet
(10) RENTABLE
AREA OF THE PREMISES: 56,520 square feet consisting of 32,535 square feet on the
5th and 6th floors (“Current Premises”) and 23,985 square feet on the 5th
floor
1
(“New
Premises”), as shown on Exhibit A. The Current Premises and New Premises are
sometimes referred to collectively as the “Entire Premises”. Except as otherwise
set forth herein, all references herein to the “Premises” shall mean the Entire
Premises.
(11) SECURITY
DEPOSIT: None.
(12) SUITE
NUMBER OF PREMISES: Suites 500 and 600
(13) TENANT’S
SHARE: 7.339% for the Entire Premises, consisting of 4.225% for the Current
Premises and 3.114% for the New Premises.
(14) TENANT’S
USE OF PREMISES: General office use
1.02 ENUMERATION
OF EXHIBITS
The
exhibits set forth below and attached to this Lease are incorporated in this
Lease by this reference:
EXHIBIT
A.
|
Plan
of Premises
|
EXHIBIT
B.
|
Workletter
Agreement
|
EXHIBIT
C.
|
Building
Specifications
|
EXHIBIT
D.
|
Rules
and Regulations
|
EXHIBIT
E.
|
Form
of Letter of Credit
|
EXHIBIT
F.
|
Cleaning
Specifications
|
RIDER
1.
|
Commencement
Date Agreement
|
RIDER
2.
|
Additional
Provisions
|
1.03 DEFINITIONS
For
purposes hereof, the following terms shall have the following
meanings:
(1) AFFILIATE:
Any corporation or other business entity which is currently owned or controlled
by, owns or controls, or is under common ownership or control with Tenant. The
term “control” means for this purpose the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of an
entity whether through the ownership of voting securities, by contractor or
otherwise. For this purpose, “ownership” shall mean ownership of at least fifty
percent (50%) of all voting securities of an entity, or if greater, ownership of
sufficient voting securities to be able to cast at least fifty percent (50%) of
all votes on major decisions which are subject to such votes.
2
(2) ADJUSTMENT
YEAR: The calendar year or any portion thereof after the Commencement Date of
this Lease for which a Rent Adjustment computation is being made.
(3) BUILDING:
The office building located at 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx,
Xxxxxxxx.
(4) COMMENCEMENT
DATE: The date specified in Section 1.01(6) as the Projected Commencement Date,
unless changed by operation of Article Two.
(5) COMMON
AREAS: All areas of the Real Property made available by Landlord from time to
time for the general common use or benefit of the tenants of the Building, and
their employees and invitees, or the public, as such areas currently exist and
as they may be changed from time to time.
(6) DECORATION:
Tenant Alterations which do not require a building permit and which do not
involve any of the structural elements of the Building, or any of the Building’s
systems, including, without limitation, its electrical, mechanical, plumbing and
security and life/safety systems.
(7) DEFAULT
RATE: Two percent (2%) above the rate then most recently announced by American
National Bank and Trust Company of Chicago as its corporate base lending rate,
from time to time announced, but in no event higher than the maximum rate
permitted by law.
(8) ENVIRONMENTAL
LAWS: Any Law governing the use, storage, disposal or generation of any
Hazardous Material, including without limitation, the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended and
the Resource Conservation and Recovery Act of 1976, as amended.
(9) EXPIRATION
DATE: The date specified in Section 1.01 (7) unless changed by operation of
Article Two.
(10) FORCE
MAJEURE: Any accident, casualty, act of God, war or civil commotion, strike or
labor troubles, or any cause whatsoever beyond the reasonable control of
Landlord, including, but not limited to, energy shortages or governmental
preemption in connection with a national emergency, or by reason of government
laws or any rule, order or regulation of any department or subdivision thereof
or any governmental agency, or by reason of the conditions of supply and demand
which have been or are affected by war or other emergency.
3
(11) HAZARDOUS
MATERIAL: Such substances, material and wastes which are or become regulated
under any Environmental Law; or which are classified as hazardous or toxic under
any Environmental Law; and explosives and firearms, radioactive material,
asbestos, and polychlorinated biphenyl’s.
(12) INDEMNITEES:
Collectively, Landlord, any Mortgagee or ground lessor of the Property, the
property manager and the leasing manager for the Property and their respective
partners, directors, officers, agents and employees.
(13) LAND:
The parcels of real estate on which the Building is located.
(14) INTENTIONALLY
OMITTED
(15) LAWS:
All laws, ordinances, rules, regulations and other requirements adopted by any
governmental body, or agency or department having jurisdiction over the
Property, the Premises or Tenant’s activities at the Premises and any covenants,
conditions or restrictions of record which affect the Property.
(16) LEASE:
This instrument and all exhibits and riders attached hereto, as may be amended
from time to time.
(17) LEASE
YEAR: The twelve month period beginning on the first day of the first month
following the Commencement Date (unless the Commencement Date is the first day
of a calendar month in which case beginning on the Commencement Date), and each
subsequent twelve month, or shorter, period until the Expiration
Date.
(18)
MONTHLY BASE RENT: The monthly rent specified in Section 1.01 (8).
(19) MORTGAGEE:
Any holder of a mortgage, deed of trust or other security instrument encumbering
the Property.
(20) NATIONAL
HOLIDAYS: New Year’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day and other holidays recognized by the Landlord
and the janitorial and other unions servicing the Building in accordance with
their contracts.
(21) OPERATING
EXPENSES: All costs, expenses and disbursements of every kind and nature which
Landlord shall pay or become obligated to pay in connection with the ownership,
management, operation, maintenance, replacement and repair of the Property
(including the amortized portion of any
4
capital
expenditure or improvement, together with interest thereon). Operating Expenses
shall not include, (i) costs of alterations and decorations of the premises of
tenants of the Building, (ii) costs of capital improvements to the Building
(except for amortized portion of capital improvements (together with interest
thereon) installed for the purpose of reducing or controlling Operating Expenses
or complying with applicable Laws), (iii) depreciation charges, (iv) interest
and principal payments on loans (except for loans for capital improvements which
Landlord is allowed to include in Operating Expenses as provided above), (v)
ground rental payments, (vi) real estate brokerage and leasing commissions,
(vii) advertising and marketing expenses, (viii) expenses incurred in
negotiating leases of other tenants in the Building or enforcing lease
obligations of other tenants in the Building, (ix) Landlord’s or Landlord’s
property manager’s corporate general overhead or corporate general
administrative expenses, (x) the cost of electrical energy furnished directly to
tenants of the Property and paid for by such tenants directly to the provider of
such electrical energy, (xi) salaries or fringe benefits of personnel above the
grade of Building Manager, (xii) the cost of any items to the extent to which
such cost is reimbursed to Landlord by tenants of the Property (other than by
virtue of the pass-throughs of “Operating Expenses” to tenants of the Building),
insurance or condemnation proceeds or third parties, (xiii) costs incurred in
connection with the making of repairs which are the obligation of another tenant
of the Building, and (xiv) costs incurred by Landlord as a result of Landlord’s
breach of this Lease or any other lease with a tenant of the Property. If any
Operating Expense, though paid in one year, relates to more than one calendar
year, at option of Landlord such expense may be proportionately allocated among
such related calendar years.
(22) PREMISES:
The space located in the Building described in Section 1.01(10) and depicted on
Exhibit A attached hereto.
(23) PROPERTY:
The Building, the Land, any other improvements located on the Land, including,
without limitation, any parking structures and the personal property, fixtures,
machinery, equipment, systems and apparatus located in or used in conjunction
with and of the foregoing.
(24) REAL
PROPERTY: The Property excluding any personal property.
(25) RENT:
Collectively, Monthly Base Rent, Rent Adjustments and Rent Adjustment Deposits,
and all other charges, payments,
5
late fees
or other amounts required to be paid by Tenant under this Lease.
(26) RENTABLE
AREA OF THE BUILDING: 770,130 square feet, which represents the sum of the
rentable area of all office space in Building.
(27) RENTABLE
AREA OF THE PREMISES: The amount of square footage set forth in
1.01(9).
(28) RENT
ADJUSTMENT: Any amounts owed by Tenant for payment of Operating Expenses or
Taxes. The Rent Adjustments shall be determined and paid as provided in Article
Four.
(29) RENT
ADJUSTMENT DEPOSIT: An amount equal to the Rent Adjustments attributable to each
month within the latest Adjustment Year for which the Rent Adjustment has been
determined. Landlord shall estimate the Rent Adjustment Deposit for the
remainder of the first calendar year of this Lease based on the Taxes and
Operating Expenses of the Property.
(30) SECURITY
DEPOSIT: The funds specified in Section 1.01(11), if any, deposited by Tenant
with Landlord as security for Tenant’s performance of its obligations under this
Lease.
(31) SUBSTANTIALLY
COMPLETE: The completion of the Tenant Work, except for minor insubstantial
details of construction, decoration or mechanical adjustments which remain to be
done.
(32) TAXES:
All federal, state and local governmental taxes, assessments and charges of
every kind or nature, whether general, special, ordinary or extraordinary, which
Landlord shall pay or become obligated to pay because of or in connection with
the ownership, leasing, management, control or operation of the Property or any
of its components, or any personal property used in connection therewith, which
shall also include any rental or similar taxes levied in lieu of or in addition
to general real and/or personal property taxes. For purposes hereof, Taxes for
any year shall be Taxes which are assessed or become a lien during such year,
whether or not such taxes are billed and payable in a subsequent calendar year.
There shall be included in Taxes for any year the amount of all fees, costs and
expenses (including reasonable attorneys’ fees) paid by Landlord during such
year in seeking or obtaining any refund or reduction of Taxes. Taxes for any
year shall be reduced by the net amount of any tax refund received by Landlord
attributable to such year. If a special assessment payable in installments is
levied against any part
6
of the
Property, Taxes for any year shall include only the installment of such
assessment and any interest payable or paid during such year. Taxes shall not
include any federal or state inheritance, general income, gift or estate taxes,
except that if a change occurs in the method of taxation resulting in whole or
in part in the substitution of any such taxes, or any other assessment, for any
Taxes as above defined, such substituted taxes or assessments shall be included
in the Taxes. Taxes shall not include interest or penalties charged because of
late payment by Landlord of Taxes due (excluding interest on installment
payments of special assessments, which may be included in Taxes as set forth
above).
(33) TENANT
ADDITIONS: Collectively, Tenant Work and Tenant Alterations.
(34) TENANT
ALTERATIONS: Any alterations, improvements, additions, installations or
construction in or to the Premises or any Building systems serving the Premises
(done as part of Tenant Work); and any supplementary air-conditioning systems
installed by Landlord or by Tenant at Landlord’s request pursuant to Section
6.01(b).
(35) INTENTIONALLY
OMITTED
(36) TENANT
WORK: All work installed or furnished to the Premises by Tenant pursuant to the
Workletter.
(37) TENANT’S
SHARE: The percentage specified in Section 1.01(13) which represents the ratio
of the Rentable Area of the Current, New and Entire Premises (as the case may
be) to the Rentable Area of the Building.
(38) TERM:
The term of this Lease commencing on the Commencement Date and expiring on the
Expiration Date, unless sooner terminated as provided in this
Lease.
(39) TERMINATION
DATE: The Expiration Date or such earlier or later date as this Lease terminates
or Tenant’s right to possession of the Premises terminates.
(40) WORKLETTER:
The Agreement regarding the manner of completion of Tenant Work attached as
Exhibit B attached hereto.
7
ARTICLE
TWO
PREMISES, TERM AND FAILURE TO GIVE
POSSESSION
2.01 LEASE
OF PREMISES
Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord the Premises for
the Term and upon the conditions provided in this Lease. In the event Landlord
delivers possession of the Premises to Tenant prior to the Commencement Date,
Tenant shall be subject to all of the terms, covenants and conditions of this
Lease (except with respect to the payment of Rent) as of the date of such
possession.
2.02 TERM
(a) The
Commencement Date shall be the Projected Commencement Date.
(b) Within
thirty (30) days following the occurrence of the Commencement Date, Landlord and
Tenant shall enter into an agreement (which is attached hereto as Rider 1)
confirming the Commencement Date and the Expiration Date. If Tenant fails to
enter into such agreement, then the Commencement Date and the Expiration Date
shall be the dates designated by Landlord in such agreement.
2.03 FAILURE TO GIVE
POSSESSION
If the
Landlord shall be unable to give possession of the Premises on the Projected
Commencement Date by reason of the following: (i) the holding over or retention
of possession of any tenant, tenants or occupants, or (ii) for any other reason,
then Landlord shall not be subject to any liability for the failure to give
possession on said date. Under such circumstances the rent reserved and
covenanted to be paid herein shall not commence until the Premises are made
available to Tenant by Landlord, and no such failure to give possession on the
Projected Commencement Date shall affect the validity of this Lease or the
obligations of the Tenant hereunder. At the option of Landlord or Tenant to be
exercised within thirty (30) days of the delayed delivery of possession to
Tenant, the Lease shall be amended so that the term shall be extended by the
period of time possession is delayed. The Premises shall be deemed to be ready
for Tenant’s occupancy if the delay in the availability of the Premises for
occupancy shall be due to any default on the part of Tenant and/or its subtenant
or subtenants.
2.04 AREA OF PREMISES
Landlord
and Tenant agree that for all purposes of this Lease the Rentable Area of
the Premises and
the Rentable Area of the
8
Building
as set forth in Article One are controlling, and are not subject to revision
after the date of this Lease, except as expressly provided herein with respect
to the Rentable Area of the Premises in the event of an expansion or contraction
of the Premises.
2.05 CONDITION
OF PREMISES
Tenant
agrees to accept possession of the Premises in its “as is” condition without any
improvements thereto by Landlord. Except for any latent structural defects in
the Premises, Tenant shall be conclusively deemed to have accepted the Premises
“as is” in the condition existing on the date Tenant first takes possession, and
to have waived all claims relating to the condition of the Premises; provided,
however, the foregoing waiver shall not relieve Landlord of its maintenance and
repair obligations set forth in this Lease. Landlord shall proceed diligently to
correct any latent structural defects of which it receives notice from Tenant
unless Landlord disputes the existence of any such defects. In the event of any
dispute as to the existence of any such defects, the decision of Landlord’s
architect shall be final and binding on the parties, which decision shall be
rendered in good faith and in accordance with professional standards. No
agreement of Landlord to alter, remodel, decorate, clean or improve the Premises
or the Building and no representation regarding the condition of the Premises or
the Building has been made by or on behalf of Landlord to Tenant, except as may
be specifically stated in this Lease or in the Workletter.
ARTICLE
THREE
RENT
Tenant
agrees to pay to Landlord at the office specified in Section 1.01(2), or to such other persons,
or at such other places designated by Landlord, without any prior demand
therefor in immediately available funds and without any deduction whatsoever
(except as expressly set forth in this Lease), Rent, including, without
limitation, Monthly Base Rent, and Rent Adjustments in accordance with Article
Four, during the Term. Monthly Base Rent shall be paid monthly in advance on the
first day of each month of the Term, except that the first installment of
Monthly Base Rent shall be paid by Tenant to Landlord on the Commencement Date.
Monthly Base Rent shall be prorated for partial months within the Term. Unpaid
Rent shall bear interest at the Default Rate from the fifth day after the date
due until paid. Tenant’s covenant to pay Rent (net of abatements and credits
specifically provided for elsewhere in this Lease) shall be independent of every
other covenant in this Lease.
9
Notwithstanding
anything contained herein to the contrary, in the event Tenant occupies the New
Premises prior to the Commencement Date, Tenant shall do so subject to all of
the terms and conditions of this Lease, except that Tenant shall have no
obligation to pay Monthly Base Rent and Rent Adjustments pursuant to the terms
of this Lease until the Commencement Date.
ARTICLE
FOUR
RENT
ADJUSTMENTS AND PAYMENTS
4.01 RENT
ADJUSTMENTS
Tenant
shall pay to Landlord Rent Adjustments during the Term as follows:
(i) The
Rent Adjustment Deposit representing Tenant’s Share of Operating Expenses and
Taxes attributable to any calendar year (or portion thereof) monthly during the
Lease Term with the payment of Monthly Base Rent except the first installment
which shall be paid by Tenant to Landlord on the Commencement Date;
and
(ii) Any
Rent Adjustments due in excess of the Rent Adjustment Deposits in accordance
with Section 4.02.
4.02 STATEMENT
OF LANDLORD
On or
before the April 30 after the expiration of each calendar year of this Lease, or
as soon as feasible thereafter each such year, Landlord will furnish Tenant a
statement (“Landlord’s Statement”) showing the following:
(i) Operating
Expenses and Taxes for the Adjustment Year;
(ii) The
amount of Rent Adjustments due Landlord for the Adjustment Year, less credit for
Rent Adjustment Deposits paid, if any; and
(iii) The
Rent Adjustment Deposit due monthly in the calendar year next following the
Adjustment Year including the amount or revised amount due for months prior to
the rendition of the statement.
Tenant
shall pay to Landlord within thirty (30) days after receipt of such statement
any amounts for Rent Adjustments then due in accordance with Landlord’s
Statement. Any amounts due from Landlord to Tenant pursuant to this Section
shall be credited to the Monthly Base Rent and Rent Adjustment Deposit next
coming due;
10
provided,
however, if the amount of the credit exceeds the following month’s Monthly Base
Rent and Rent Adjustment Deposit, then Landlord shall refund the excess to
Tenant within thirty (30) days after the date of such statement provided Tenant
is not in default hereunder; and provided further that any such uncredited
amounts shall be refunded to Tenant within thirty (30) days after the date of
such statement if the Term has already expired provided Tenant is not in default
hereunder. No interest or penalties shall accrue on any amounts which Landlord
is obligated to credit to Tenant by reason of this Section 4.02. Landlord’s
failure to deliver Landlord’s Statement or in computing the amount of the Rent
Adjustments shall not constitute a waiver by Landlord of its right to deliver
such items nor constitute a release of Tenant’s obligations to pay such amounts.
The Rent Adjustment Deposit shall be credited against Rent Adjustments due for
the applicable Adjustment Year. During the last complete calendar year or during
any partial calendar year in which the Lease terminates, Landlord may include in
the Rent Adjustment Deposit its estimate of Rent Adjustments which may not be
finally determined until after the termination of this Lease. Tenant’s
obligation to pay Rent Adjustments survives the expiration or termination of the
Lease. Notwithstanding the foregoing, in no event shall the sum of Monthly Base
Rent and the Rent Adjustments be less than the Monthly Base Rent
payable.
4.03 BOOKS AND RECORDS
Landlord
shall maintain books and records showing Operating Expenses and Taxes in
accordance with sound accounting and management practices, consistently applied.
The Tenant or its representative (which representative shall be a certified
public accountant licensed to do business in the state in which the Property is
located) shall have the right, for a period of one hundred twenty (120) days
following the date upon which Landlord’s Statement is delivered to Tenant, to
examine the Landlord’s books and records with respect to the items in the
foregoing statement of Operating Expenses and Taxes during normal business
hours, upon written notice, delivered at least three (3) business days in
advance. If Tenant does not object in writing to Landlord’s Statement within one
hundred twenty (120) days of Tenant’s receipt thereof, specifying the nature of
the item in dispute and the reasons therefor, then Landlord’s Statement shall be
considered final and accepted by Tenant. Any amount due to the Landlord as shown
on Landlord’s Statement, whether or not disputed by Tenant as provided herein
shall be paid by Tenant when due as provided above, without prejudice to any
such written exception. Tenant shall cause any information obtained by Tenant or
its representative pursuant to the aforesaid process to be kept confidential. If
within sixty (60) days after Tenant’s timely objection to Landlord’s Statement,
Landlord and Tenant are not able to agree
11
upon the
amount of the Operating Expenses and Taxes in question, then the dispute shall
be submitted for resolution to an Illinois licensed certified public accounting
firm mutually agreeable to both Landlord and Tenant. The decision of said firm
shall be final and binding on both Landlord and Tenant, and shall take into
account any adjustments referred to in Section 4.04 below. The fees and expenses
of said firm shall be paid by Tenant; provided, however, if the decision of said
firm is that the Landlord overstated the amount of the Operating Expenses and
Taxes by more than five percent (5%), then the fees and expenses of said firm,
together with the reasonable fees and expenses of Tenant’s certified public
accounting firm in connection therewith shall be borne by Landlord. If as
finally determined (whether through agreement between Landlord and Tenant or
through the decision of said firm), the amount of Operating Expenses and Taxes
was either overstated or understated, there shall within thirty (30) days
thereafter be an adjustment made between Landlord and Tenant so that in all
events the Tenant has paid tenant’s Share of Operating Expenses and
Taxes.
4.04 PARTIAL
OCCUPANCY
For
purposes of determining Rent Adjustments for any Adjustment Year if the Building
is not fully rented during all or a portion of any year, Landlord may make
appropriate adjustments to the Operating Expenses for such Adjustment Year
employing sound accounting and management principles consistently applied, to
determine the amount of Operating Expenses that would have been paid or incurred
by Landlord had the Building been 95% occupied, and the amount so determined
shall be deemed to have been the amount of Operating Expenses for such
Adjustment Year. In the event any other tenant in the building provides itself
with a service which Landlord would supply under the Lease without an additional
or separate charge to Tenant, then Operating Expenses shall be deemed to include
the cost Landlord would have incurred had Landlord provided such service to such
other tenant.
ARTICLE
FIVE
INTENTIONALLY
OMITTED
ARTICLE
SIX
SERVICES
6.01 LANDLORD ‘S GENERAL
SERVICES
(a) So
long as the Lease is in full force and effect and Tenant has paid all Rent then,
Landlord shall furnish the following services:
12
(1)
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heat
and air-conditioning in the Premises, Monday through Friday from 8:00 A.M.
to 6:00 P.M., Saturday, from 8:00 A.M. to 1:00 P.M., excluding National
Holidays, in accordance with the standards set forth on Exhibit C attached
hereto, subject to compliance with all applicable voluntary and mandatory
regulations and laws;
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(2)
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tempered
and cold water for use in lavatories in common with other tenants from the
regular supply of the Building;
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(3)
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cleaning
and janitorial services in the Premises Monday through Friday, excluding
National Holidays in accordance with the schedule of such services
attached hereto as Exhibit F;
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(4)
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washing
of the outside windows in the Premises weather permitting four times per
year;
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(5)
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automatic
passenger elevator service in common with other tenants of the Building
and freight elevator service subject to reasonable scheduling by Landlord
and payment of Landlord’s standard charges; provided, at least one
automatic passenger elevator shall remain in service twenty-four (24)
hours per day, every day;
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(b) Wherever
heat generating machines or equipment are used by Tenant in the Premises, the
following additional provisions shall apply:
(1)
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If
the use of such machinery exceeds the limits established in Exhibit C
thereby affecting the temperature otherwise maintained by the air-cooling
system or whenever the occupancy or electrical load exceeds the standards
set forth in Exhibit C, Landlord reserves the right to install or to
require Tenant to install supplementary air-conditioning units in the
Premises. Tenant shall bear all costs and expenses related to the
installation, maintenance and operation of such
units.
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(2)
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Tenant
shall pay Landlord at rates fixed by Landlord for all tenants in the
Building, charges for all water furnished to the Premises for other
purposes, including the expenses of installation of a water line, meter
and fixtures.
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6.02 ELECTRICAL
SERVICES
(a) The
electricity used during the performance of janitorial service or the making of
alterations or repairs in the Premises by Landlord shall be paid by Tenant. Tenant
also agrees to purchase from Landlord or its agents at competitive prices fixed
by Landlord for all tenants in the Building all
13
lamps,
bulbs, ballasts and starters used in the Premises; provided, Tenant may provide
and install its own lamps for overhead fixtures so long as they are
substantially the same (especially as to color) as those used by the Landlord in
the Building (which are currently F34 Cool White 4 foot florescent tubes) and so
long as such work does not cause disharmony with Landlord’s personnel and
contractors working in the Building. Landlord reserves the right to provide
electricity to Tenant and in such event Tenant agrees to purchase electricity
from Landlord at Landlord’s then current charges, which charges shall be based
upon Landlord’s cost to furnish such electricity without markup by Landlord.
Tenant shall make no alterations or additions to the electric equipment or
systems without the prior written consent of the Landlord in each instance,
which consent shall not be unreasonably withheld or delayed.
(b) Tenant
shall, at Tenant’s expense, cause the Premises to be separately metered for all
electrical consumption prior to the Commencement Date. Tenant shall make all
necessary arrangements with the local utility company for furnishing, metering
and paying for electricity furnished by it to Tenant and consumed on the
Premises. Landlord shall permit Landlord’s wire and conduits, to the extent
available and safely capable, to be used for such purposes.
(c) If
the Premises are not separately metered for any reason or are separately metered
only in part, Tenant shall pay Landlord as additional Rent, in monthly
installments at the time prescribed for monthly installments of Monthly Base
Rent, an amount, reasonably estimated by Landlord from time to time, which
Tenant would pay for such electricity if the same were separately metered to the
Premises by the local electric utility company and billed to Tenant at such
utility company’s then current rates. As of the date of this Lease, the Premises
are not separately metered with respect to the electricity for overhead lights.
However, in accordance with subsection 6.02(b) above, Tenant shall cause the
Premises to be separately metered for all electrical consumption in the
Premises, including overhead lights, prior to the Commencement
Date.
6.03 ADDITIONAL
AND AFTER-HOUR SERVICES
At
Tenant’s request, Landlord shall furnish additional quantities of any of the
services or utilities specified in Section 6.01, if Landlord can reasonably do
so, on the terms set forth herein. Tenant shall deliver to Landlord a written
request for such additional services or utilities prior to 2:00 P.M. on Monday
through Friday (except National Holidays) for service on those
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days, and
prior to 2:00 P.M. on the last business day prior to Saturday, Sunday or a
National Holiday. For services or utilities requested by Tenant and furnished by
Landlord, Tenant shall pay to Landlord as a charge therefor Landlord’s
prevailing published rates for such services and utilities. If Tenant shall fail
to make any such payment, Landlord may, upon notice to Tenant and in addition to
Landlord’s other remedies under this Lease, discontinue any or all of the
additional services.
6.04 PHONE
SERVICES
All
telephone, and electric connections which Tenant may desire shall be first
approved by Landlord in writing (such approval not to be unreasonably withheld
or delayed), before the same are installed, and the location of all wires and
the work in connection therewith shall be performed by contractors chosen by
Tenant and approved by Landlord in writing (such approval not to be unreasonably
withheld or delayed) and shall be subject to the direction of Landlord. Landlord
reserves the right to reasonably approve the entity or entities providing
telephone or other communication cable installation, repair and maintenance
services to Tenant and to reasonably restrict and control access to telephone
cabinets. Tenant shall be responsible for and shall pay all costs incurred in
connection with the installation of telephone cables and related wiring in the
Premises, including, without limitation, any hook-up, access and maintenance
fees related to the installation of such wires and cables in the Premises and
the commencement of service therein, and the maintenance thereafter of such wire
and cables; and there shall be included in Operating Expenses for the Building
all installation, hook-up or maintenance costs incurred by Landlord in
connection with telephone cables and related wiring in the Building which are
not allocable to any individual users of such service but are allocable to the
Building generally. If Tenant fails to maintain all telephone cables and related
wiring in the Premises and such failure affects or interferes with the operation
or maintenance of any other telephone cables or related wiring in the Building,
Landlord or any vendor hired by Landlord may enter into and upon the Premises
forthwith and perform such repairs, restorations or alterations as Landlord
deems necessary in order to eliminate any such interference (and Landlord may
recover from Tenant all of Landlord’s costs in connection therewith). Upon the
Termination Date, Tenant agrees to remove all telephone and computer cables and
related wiring installed by Tenant for and during Tenant’s occupancy, which
Landlord shall request Tenant to remove. Tenant agrees that neither Landlord nor
any of its agents or employees shall be liable to Tenant, or any of Tenant’s
employees, agents, customers or invitees or anyone claiming through, by or under
Tenant, for any damages, injuries, losses, expenses, claims or causes of action
because of any interruption, diminution, delay or discontinuance at
15
any time
for any reason in the furnishing of any telephone service to the Premises and
the Building. If in connection with the foregoing, Tenant requires any cabling
outside of the Premises, the specific location of such cabling shall be as
prescribed by Landlord and, other than reasonably necessary cabling between the
portions of the Premises located on different floors the Building, such cabling
shall be subject to availability restrictions reasonably imposed by Landlord
taking into account the needs of Landlord and other tenants and users of the
Building.
6.05 DELAYS
IN FURNISHING SERVICES
Tenant
agrees that Landlord shall not be liable to Tenant for damages or otherwise, for
any failure to furnish, or a delay in furnishing, any service when such failure
or delay is occasioned, in whole or in part, by repairs, improvements or
mechanical breakdowns by the act or default of Tenant or other parties or by an
event of Force Majeure. No such failure or delay shall be deemed to be an
eviction or disturbance of Tenant’s use and possession of the Premises, or
relieve Tenant from paying Rent or from performing any other obligations of
Tenant under this Lease. Notwithstanding the foregoing to the contrary, except
for the interruption of the foregoing services arising by reason of fire or
casualty loss provided for in Article Fourteen, any interruption of such
services which is within Landlord’s reasonable control and which “materially
interferes” with Tenant’s use of any part of the Premises for a period of seven
(7) consecutive business days after notice by Tenant to Landlord of such
interruption of service shall entitle Tenant, as its sole remedy with respect
thereto, to xxxxx the Monthly Base Rent and Rent Adjustments under this Lease
for that portion of the Premises which are untenantable for the period
commencing on the eighth (8th) business day of interruption of such services and
terminating on the day of restoration of the services. For purposes of this
Section 6.05, material interference with Tenant’s use of the Premises shall
occur when Tenant shall be prevented from using the Premises for general office
purposes as a consequence of Landlord’s inability to provide the services
specified in Section 6.01. Except as may otherwise be expressly set forth
herein, in no event shall Landlord be liable for any damages, consequential or
otherwise arising from such interruption of service, and in no event shall
Tenant have any right to terminate this Lease.
ARTICLE
SEVEN
POSSESSION,
USE AND CONDITION OF PREMISES
7.01 POSSESSION
AND USE OF PREMISES
16
(a) Tenant
shall be entitled to possession of the Premises upon delivery thereof in “as in”
condition by Landlord. Tenant shall occupy and use the Premises only for the
uses specified in Section 1.01(14) to conduct Tenant’s business. Tenant shall
not occupy or use the Premises (or permit the use or occupancy of the Premises)
for any purpose or in any manner which: (1) is unlawful or in violation of any
Law or Environmental Law; (2) may be dangerous to persons or property or which
may increase the cost of, or invalidate, any policy of insurance carried on the
Building or covering its operations; (3) is contrary to or prohibited by the
terms and conditions of this Lease or the rules of the Building set forth in
Article Eighteen; or (4) would tend to create or continue a
nuisance.
(b) Tenant
and Landlord shall each comply with all Environmental Laws concerning the proper
storage, handling and disposal of any Hazardous Material with respect to the
Property. Tenant shall not generate, store, handle or dispose of any Hazardous
Material in, on, or about the Property without the prior written consent of
Landlord. In the event that Tenant is notified of any investigation or violation
of any Environmental Law arising from Tenant’s activities at the Premises,
Tenant shall immediately deliver to Landlord a copy of such notice. In such
event or in the event Landlord in good faith reasonably believes that a
violation of Environmental Law exists as a result of Tenant’s activities,
Landlord may conduct such tests and studies relating to compliance by Tenant
with Environmental Laws or the alleged presence of Hazardous Materials upon the
Premises as Landlord deems desirable. If any such inspections or tests show a
violation of any applicable Environmental Laws (or any rules or regulations
promulgated thereunder) as to which Tenant is responsible hereunder, then Tenant
shall, in addition to its other responsibilities hereunder, pay for the costs of
such inspections and tests, as well as any additional inspections and tests
Landlord may require to ensure that a proper clean up is being made and/or has
been completed. Landlord’s inspection and testing rights are for Landlord’s own
protection only, and Landlord has not, and shall not be deemed to have assumed
any responsibility to Tenant or any other party for compliance with
Environmental Laws, as a result of the exercise, or non-exercise of such rights.
Tenant shall indemnify, defend, protect and hold harmless the Indemnitees from
any and all loss, claim, expense, liability and cost (including attorneys’ fees)
arising out of or in any way related to the presence of any Hazardous Material
introduced to the Premises during the Lease Term by any party other than
Landlord. If any Hazardous Material is released, discharged or disposed of on or
about the Property and such release, discharge or disposal is not caused by
Tenant or other occupants of the Premises, or their employees, agents or
contractors, such release, discharge or disposal shall be deemed casualty damage
under Article Fourteen to the extent that the
17
Premises
are affected thereby; in such case, Landlord and Tenant shall have the
obligations and rights respecting such casualty damage provided under such
Article.
(c) Landlord
and Tenant acknowledge that the Americans With Disabilities Act of 1990 (42
U.S.C. §12101 et seq.) and regulations and guidelines promulgated thereunder, as
all of the same may be amended and supplemented from time to time (collectively
referred to herein as the “ADA”) establish requirements for business operations,
accessibility and barrier removal, and that such requirements may or may not
apply to the Premises and the Building depending on, among other things: (1)
whether Tenant’s business is deemed a “public accommodation” or “commercial
facility”, (2) whether such requirements are “readily achievable”, and (3)
whether a given alteration affects a “primary function area” or triggers “path
of travel” requirements. The parties hereby agree that: (a) Landlord shall be
responsible for ADA Title III compliance in the Common Areas, except as provided
below, and (b) Tenant shall be responsible for ADA Title III compliance in the
Premises, including any leasehold improvements or other work to be performed in
the Premises under or in connection with this Lease. Tenant shall be solely
responsible for requirements under Title I of the ADA relating to Tenant’s
employees.
7.02 LANDLORD
ACCESS TO PREMISES
(a) Tenant
shall permit Landlord to erect, use and maintain pipes, ducts, wiring and
conduits in and through the Premises, so long as Tenant’s use, layout or design
(whether functionally or esthetically) of the Premises is not materially
affected or altered. Landlord or Landlord’s agents shall have the right to enter
upon the Premises in the event of an emergency, or to inspect the Premises, to
perform janitorial and other services, to conduct safety and other testing in
the Premises and to make such repairs, alterations, improvements or additions to
the Premises or the Building as Landlord may deem necessary or desirable.
Janitorial and cleaning services shall be performed after normal business hours.
In connection therewith, Landlord shall be allowed to store on the Premises all
necessary supplies and materials. Any entry or work by Landlord may be during
normal business hours and Landlord shall use reasonable efforts to ensure that
any entry or work shall not materially interfere with Tenant’s occupancy of the
Premises.
(b) If
Tenant shall not be personally present to permit an entry into the Premises when
for any reason an entry therein shall be necessary or permissible, Landlord (or
Landlord’s agents), after attempting to notify Tenant (unless Landlord believes
an emergency situation exists), may enter the Premises without rendering
Landlord or its agents liable therefor (if during such entry Landlord or
Landlord’s agent shall accord reasonable care to
18
Tenant’s
property), and without relieving Tenant of any obligations under this
Lease.
(c) Landlord
may enter the Premises for the purpose of conducting such inspections, tests and
studies as Landlord may deem desirable or necessary to confirm Tenant’s
compliance with all Laws and Environmental Laws or for other purposes necessary
in Landlord’s reasonable judgment to ensure the sound condition of the Building
and the systems serving the Building. Landlord’s rights under this Section
7.02(c) are for Landlord’s own protection only, and Landlord has not, and shall
not be deemed to have assumed any responsibility to Tenant or any other party
for compliance with Laws or Environmental Laws, as a result of the exercise or
non-exercise of such rights. Any entry or work by Landlord may be during normal
business hours and Landlord shall use reasonable efforts to ensure that any
entry or work shall not materially interfere with Tenant’s occupancy of the
Premises.
(d) Landlord
may do any of the foregoing, or undertake any of the inspection or work
described in the preceding paragraphs without such action constituting an actual
or constructive eviction of Tenant, in whole or in part, or giving rise to an
abatement of Rent by reason of loss or interruption of business of the Tenant,
or otherwise.
7.03 QUIET
ENJOYMENT
Landlord
covenants that so long as Tenant is in compliance with the covenants and
conditions set forth in this Lease, Tenant shall have the right to quiet
enjoyment of the Premises without hindrance or interference from Landlord or
those claiming through Landlord, and subject to the rights of any subsequent
Mortgagee or ground lessor as provided herein or in any written agreement signed
by a Mortgagee or ground lessor and by Tenant.
ARTICLE
EIGHT
MAINTENANCE
8.01 LANDLORD’S
MAINTENANCE
Subject
to the provisions of Article Fourteen, Landlord shall maintain and make
necessary repairs to the foundations, roofs, exterior walls, and the structural
elements of the Building, the electrical, plumbing, heating, ventilation and
air-conditioning systems of the Building (including the convectors located
within the Premises) and the public corridors, washrooms and lobby of the
Building, except that: (a) Landlord shall not be responsible for the maintenance
or repair of any floor or wall coverings in the Premises or any of such systems
which are located within the
19
Premises
and are supplemental or special to the Building’s standard systems; and (b) the
cost of performing any of said maintenance or repairs whether to the Premises or
to the Building caused by the negligence of Tenant, its employees, agents,
servants, licensees, subtenants, contractors or invitees, shall be paid by
Tenant. Landlord shall not be liable to Tenant for any expense, injury, loss or
damage resulting from work done in or upon, or the use of, any adjacent or
nearby building, land, street, or alley.
8.02 TENANT’S
MAINTENANCE
Subject
to the provisions of Article Fourteen, Tenant, at its expense, shall keep and
maintain the Premises and all Tenant Additions in good order, condition and
repair (ordinary wear and tear excepted) and in accordance with all applicable
Laws and Environmental Laws. Tenant shall not permit waste and shall promptly
and adequately repair all damages to the Premises and replace or repair all
damaged or broken glass in the interior of the Premises, fixtures or
appurtenances. Landlord shall be responsible for repair of exterior window glass
in the Premises, unless damage thereto is caused by Tenant or its employees,
agents, contractors, guests or invitees. Any repairs or maintenance shall be
completed with materials of similar quality to the original materials, all such
work to be completed under the supervision of Landlord. Any such repairs or
maintenance shall be performed only by contractors or mechanics approved by
Landlord, which approval shall not be unreasonably withheld or delayed, and
whose work will not cause or threaten to cause disharmony or interference with
Landlord or other tenants in the Building and their respective agents and
contractors performing work in or about the Building. If Tenant fails to perform
any of its obligations set forth in this Section 8.02, Landlord may, in its sole
discretion and upon 24 hours prior notice to Tenant (except in the case of
emergencies), perform the same, and Tenant shall pay to Landlord any costs or
expenses incurred by Landlord upon demand.
ARTICLE
NINE
ALTERATIONS
AND IMPROVEMENTS
9.01 TENANT’S
ALTERATIONS
(a) Except
as otherwise provided in the Workletter with respect to the completion of Tenant
Work undertaken by Tenant pursuant to the Workletter, the following provisions
shall apply to the completion of any Tenant Alterations:
(1)
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Tenant
shall not, except as provided herein, without the prior written consent of
Landlord, which consent shall not be unreasonably withheld or delayed,
make or cause to be made any
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20
Tenant
Alterations in or to the Premises or any Building systems serving the Premises.
Prior to making any Tenant Alterations, Tenant shall give Landlord five (5)
business days prior written notice (or such earlier notice as would be necessary
pursuant to applicable Law) to permit Landlord sufficient time to post
appropriate notices of non-responsibility. Subject to all other requirements of
this Article Nine, Tenant may undertake Decoration work without Landlord’s prior
written consent. Tenant shall furnish Landlord with the names and addresses of
all contractors and subcontractors and copies of all contracts. All
Tenant Alterations shall be completed at such time and in such manner as
Landlord may from time to time designate, and only by contractors or mechanics
chosen by Tenant and approved by Landlord, which approval shall not be
unreasonably withheld or delayed, and whose work will not cause or threaten to
cause disharmony or interference with Landlord or other tenants in the Building
and their respective agents and contractors performing work in or about the
Building. Landlord may further condition its consent upon Tenant furnishing to
Landlord and Landlord approving prior to the commencement of any work or
delivery of materials to the Premises related to the Tenant Alterations such of
the following as specified by Landlord: architectural plans and specifications,
opinions from engineers reasonably acceptable to Landlord stating that the
Tenant Alterations will not in any way adversely affect the Building’s systems,
including, without limitation, the mechanical, heating, plumbing, security,
ventilating, air-conditioning, electrical, and the fire and life safety systems
in the Building, necessary permits and licenses, certificates of insurance, and
such other documents in such form reasonably requested by Landlord. Landlord
may, in the exercise of reasonable judgment, request that Tenant provide
Landlord with appropriate evidence of Tenant’s ability to complete and pay for
the completion of Tenant Alterations which in aggregate cost more than $250,000,
such as a performance bond or letter of credit. Landlord may also condition its
consent on the agreement of Tenant to remove such Tenant Alterations upon the
expiration or termination of this Lease with respect to the affected portion of
the Premises. Upon completion of the Tenant Alterations, Tenant shall deliver to
Landlord an as-built mylar and digitized (if available) set of plans and
specifications for the Tenant Alterations.
(2)
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Tenant
shall pay the cost of all Tenant Alterations and the cost of decorating
the Premises and any work to the Building occasioned thereby. In
connection with completion of any Tenant Alterations, Tenant shall pay
Landlord all elevator and hoisting charges at Landlord’s then standard
rates. In
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21
addition,
Tenant shall reimburse Landlord within twenty (20) days after each request
therefor, for all of Landlord’s out-of-pocket expenses incurred in connection
with any such Tenant Alterations, including without limitation, fees of
architects and engineers and the cost of additional security personnel, if any.
Upon completion of Tenant Alterations, Tenant shall furnish Landlord with
contractors’ affidavits and full and final waivers of lien and receipted bills
covering all labor and materials expended and used in connection therewith and
such other documentation reasonably requested by Landlord or
Mortgagee.
(3)
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Tenant
agrees to complete all Tenant Alterations (i) in accordance with all Laws,
Environmental Laws, all requirements of applicable insurance companies and
in accordance with Landlord’s standard construction rules and regulations,
and (ii) in a good and workmanlike manner with the use of good grades of
materials. Tenant shall notify Landlord immediately if Tenant receives any
notice of violation of any Law in connection with completion of any Tenant
Alterations and shall immediately take such steps as are necessary to
remedy such violation. In no event shall such supervision or right to
supervise by Landlord nor shall any approvals given by Landlord under this
Lease constitute any warranty by Landlord to Tenant of the adequacy of the
design, workmanship or quality of such work or materials for Tenant’s
intended use or of compliance with the requirements of Section
9.01(a)(3)(i) and (ii) above or impose any liability upon Landlord in
connection with the performance of such
work.
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(b) All
Tenant Additions whether installed by Landlord or Tenant, shall without
compensation or credit to Tenant, become part of the Premises and the property
of Landlord at the time of their installation and shall remain in the Premises,
unless pursuant to Article Twelve, Tenant may remove them or is required to
remove them at Landlord’s request.
9.02 LIENS
Tenant
shall not permit any lien or claim for lien of any mechanic, laborer or supplier
or any other lien to be filed against the Building, the Land, the Premises, or
any part thereof arising out of work performed, or alleged to have been
performed by, or at the direction of, or on behalf of Tenant. If any such lien
or claim for lien is filed, Tenant shall within ten (10) days of receiving
notice of such lien or claim (a) have such lien or claim for lien released of
record or (b) deliver to Landlord a bond in form, content, amount, and issued by
surety, satisfactory to Landlord, indemnifying, protecting, defending and
holding harmless the Indemnitees against all costs and liabilities resulting
from such
22
lien or
claim for lien and the foreclosure or attempted foreclosure thereof. If Tenant
fails to take any of the above actions, Landlord, without investigating the
validity of such lien or claim for lien, may pay or discharge the same and
Tenant shall, as payment of additional Rent hereunder, reimburse Landlord upon
demand for the amount so paid by Landlord, including Landlord’s expenses and
attorneys’ fees.
ARTICLE
TEN
ASSIGNMENT
AND SUBLETTING
10.01 ASSIGNMENT
AND SUBLETTING
(a) Without
the prior written consent of Landlord, Tenant may not sublease, assign,
mortgage, pledge, hypothecate or otherwise transfer or permit the transfer of
this Lease or the encumbering of Tenant’s interest therein in whole or in part,
by operation of law or otherwise or permit the use or occupancy of the Premises,
or any part thereof, by anyone other than Tenant. If Tenant desires to enter
into any sublease of the Premises or assignment of this Lease, Tenant shall
deliver written notice thereof to Landlord (“Tenant’s Notice”), together with
the identity of the proposed subtenant or assignee and the proposed principal
terms thereof and financial and other information sufficient for Landlord to
make an informed judgment with respect to such proposed subtenant or assignee at
least thirty (30) days prior to the commencement date of the term of the
proposed sublease or assignment. If Tenant proposes to sublease less than all of
the Rentable Area of the Premises (or proposes to assign this Lease as it
pertains to at least an entire floor of the Building), the space proposed to be
sublet (or which is subject to the assignment) and the space retained by Tenant
must each be a marketable unit as reasonably determined by Landlord and
otherwise in compliance with all Laws. Landlord shall notify Tenant in writing
of its approval or disapproval of the proposed sublease or assignment or its
decision to exercise its rights under Section 10.02 within thirty (30) days
after receipt of Tenant’s Notice (and all required information). In no event may
Tenant sublease any portion of the Premises or assign the Lease to any other
tenant of the Building if the Building is then less than ninety percent (90%)
leased. Tenant shall submit for Landlord’s approval (which approval shall not be
unreasonably withheld or delayed) any advertising (excluding flyers to brokers)
which Tenant or its agents intend to use with respect to the space proposed to
be sublet.
(b) In
making its determination of whether to consent to any proposed sublease or
assignment, Landlord may take into consideration the business reputation and
credit-worthiness of the proposed subtenant or assignee; the intended use of the
Premises by
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the
proposed subtenant or assignee; the nature of the business conducted by such
subtenant or assignee and whether such business would be deleterious to the
reputation of the Building or Landlord or would violate the provisions of any
other leases of tenants of the Building; the estimated pedestrian and vehicular
traffic in the Premises and to the Building which would be generated by the
proposed subtenant or assignee; whether the proposed assignee or subtenant is a
department, representative or agency of any governmental body, foreign or
domestic; and any other factors which Landlord shall deem relevant. In no event
shall Landlord be obligated to consider a consent to any proposed (i) sublease
of the Premises or assignment of the Lease if a Default then exists under the
Lease, or a fact or condition exists, which but for the giving of notice or the
passage of time would constitute a Default, or (ii) assignment of the Lease
which would assign less than an entire floor of the Premises.
(c) If
Landlord chooses not to recapture the space proposed to be subleased or assigned
as provided in Section 10.02, Landlord shall not unreasonably withhold or delay
its consent to a subletting or assignment under this Section 10.01. Any approved
sublease or assignment shall be expressly subject to the terms and conditions of
this Lease. Any such subtenant or assignee shall execute such documents as
Landlord may reasonably require to evidence such subtenant or assignee’s
assumption of such obligations and liabilities. Tenant shall deliver to Landlord
a copy of all agreements executed by Tenant and the proposed subtenant and
assignee with respect to the Premises. Landlord’s approval of a sublease or
assignment shall not constitute a waiver of Landlord’s right to consent to
further assignments or subleases.
(d) For
purposes of this Article Ten, but subject to Section 10.01(e) below, an
assignment shall be deemed to include a change in the majority control of
Tenant, resulting from any transfer, sale or assignment of shares of stock of
Tenant occurring by operation of law or otherwise if Tenant is a corporation
whose shares of stock are not traded publicly. If Tenant is a partnership, any
change in the partners of Tenant shall be deemed to be an
assignment.
(e) Notwithstanding
anything to the contrary contained in this Article Ten, Tenant shall have the
right, without the prior written consent of Landlord, to sublease the Premises,
or to assign this Lease to an Affiliate of Tenant.
10.02 RECAPTURE
Except as
provided in Section 10.01(e) Landlord shall have the option to exclude from the
Premises covered by this Lease (“recapture”), the entire space (but not less
than the entire
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space)
proposed to be sublet or subject to the assignment, effective as of the proposed
commencement date of such sublease or assignment, for the entire Lease Term (as
to a proposed assignment), and for the entire term of the proposed sublease (as
to a proposed sublease). If Landlord elects to recapture, Tenant shall surrender
possession of the space proposed to be subleased or subject to the assignment to
Landlord on the effective date of recapture of such space from the Premises such
date being the Termination Date for such space. Effective as of the date of
recapture of any portion of the Premises pursuant to this Section, the Monthly
Base Rent, Rentable Area of the Premises and Tenant’s Share shall be adjusted
accordingly. If Landlord recaptures space pursuant to this Section 10.02,
Landlord shall demise such space, but Landlord shall not be obligated to do more
than erect walls. All related and finishing work within the remaining Premises,
including without limitation, carpets, floor coverings, ceiling tiles or grids,
light fixtures, baseboard treatments, painting and wall coverings, hvac,
electric and plumbing shall be Tenant’s responsibility at Tenant’s sole
expense.
10.03 EXCESS
RENT
Tenant
shall pay Landlord on the first day of each month during the term of the
sublease or assignment, fifty percent (50%) of the amount by which the sum of
all rent and other consideration (direct or indirect) due from the subtenant or
assignee for such month exceeds: (i) that portion of the Monthly Base Rent and
Rent Adjustments due under this Lease for said month which is allocable to the
space sublet or assigned; and (ii) the following costs and expenses for the
subletting or assignment of such space: (1) brokerage commissions and attorneys’
fees and expenses, (2) advertising for subtenants or assignees; (3) the actual costs paid
in making any improvements or substitutions in the Premises required by any
sublease or assignment; and (4) “free rent” periods, costs of any inducements or
concessions given to subtenant or assignee, moving costs, and other amounts in
respect of such subtenant’s or assignee’s other leases or occupancy
arrangements. All such costs will be amortized over the term of the sublease or
assignment pursuant to sound accounting principles.
10.04 TENANT
LIABILITY
In the
event of any sublease or assignment, Tenant shall not be released or discharged
from any liability, whether past, present or future, under this Lease, including
any liability arising from the exercise of any renewal or expansion option, to
the extent expressly permitted by Landlord. If Landlord grants consent to such
sublease or assignment, Tenant shall pay all reasonable attorneys’ fees and
expenses incurred by Landlord with respect to such assignment or sublease. In
addition, if Tenant has any
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options
to extend the term of this Lease or to add other space to the Premises, such
options shall not be available to any subtenant or assignee, directly or
indirectly without Landlord’s express written consent.
10.05 ASSUMPTION
AND ATTORNMENT
If Tenant
shall assign this Lease as permitted herein, the assignee shall expressly assume
all of the obligations of Tenant hereunder in a written instrument satisfactory
to Landlord and furnished to Landlord not later than fifteen (15) days prior to
the effective date of the assignment. If Tenant shall sublease the Premises as
permitted herein, Tenant shall, at Landlord’s option, within fifteen (15) days
following any request by Landlord, obtain and furnish to Landlord the written
agreement of such subtenant to the effect that the subtenant will attorn to
Landlord and will pay all subrent directly to Landlord.
ARTICLE
ELEVEN
DEFAULT
AND REMEDIES
11.01 EVENTS
OF DEFAULT
The
occurrence or existence of any one or more of the following shall constitute a
“Default” by Tenant under this Lease:
(i) Tenant
fails to pay any installment or other payment of Rent including without
limitation Rent Adjustment Deposits or Rent Adjustments within five (5) business
days after the date when due;
(ii) Tenant
fails to observe or perform any of the other covenants, conditions or provisions
of this Lease or the Workletter and fails to cure such default within thirty
(30) days after
written notice thereof to Tenant (unless the default involves a hazardous
condition, which shall be cured forthwith);
(iii) the
interest of Tenant in this Lease is levied upon under execution or other legal
process;
(iv) a
petition is filed by or against Tenant to declare Tenant bankrupt or seeking a
plan of reorganization or arrangement under any Chapter of the Bankruptcy Act,
or any amendment, replacement or substitution therefor, or to delay payment of,
reduce or modify Tenant’s debts, which in the case of an involuntary action is
not discharged within thirty (30) days;
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(v) Tenant
is declared insolvent by law or any assignment of Tenant’s property is made for
the benefit of creditors;
(vi) a
receiver is appointed for Tenant or Tenant’s property, which appointment is not
discharged within thirty (30) days;
(vii) any
action taken by or against Tenant to reorganize or modify Tenant’s capital
structure in a materially adverse way which in the case of an involuntary action
is not discharged within thirty (30) days;
(viii) upon
the dissolution of Tenant; or
(ix) upon
the third occurrence within any Lease Year that Tenant fails to pay Rent when
due or has breached a particular covenant of this Lease (whether or not such
failure or breach is thereafter cured within any stated cure or grace period or
statutory period).
11.02 LANDLORD’S
REMEDIES
(a) If
a Default occurs, Landlord shall have the rights and remedies hereinafter set
forth, which shall be distinct and cumulative: (i) Landlord may terminate this
Lease by giving Tenant notice of Landlord’s election to do so, in which event,
the term of this Lease shall end and all of Tenant’s rights and interests shall
expire on the date stated in such notice; (ii) Landlord may terminate Tenant’s
right of possession of the Premises without terminating this Lease by giving
notice to Tenant that Tenant’s right of possession shall end on the date
specified in such notice; or (iii) Landlord may enforce the provisions of this
Lease and may enforce and protect the rights of the Landlord hereunder by a suit
or suits in equity or at law for the specific performance of any covenant or
agreement contained herein, or for the enforcement of any other appropriate
legal or equitable remedy, including recovery of all monies due or to become due
for the balance of the Term from Tenant under any of the provisions of this
Lease.
(b) In
the event that Landlord terminates the Lease, Landlord shall be entitled to
recover as damages for loss of the bargain and not as a penalty, Rent for the
balance of the Term, plus all Landlord’s reasonable expenses of reletting,
including without limitation, repairs, alterations, improvements, additions,
decorations, legal fees and brokerage commissions (collectively, the “Reletting
Expenses”).
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(c) In
the event Landlord proceeds pursuant to subparagraph (a) (ii) above, Landlord
shall use commercially reasonable efforts to relet the Premises, or any part
thereof for the account of Tenant, for such rent and term and upon such terms
and conditions as are reasonably acceptable to Landlord; provided, Landlord
shall not be liable for any failure to relet the Premises; and provided further,
that while there is other vacant space in the Building, Landlord may attempt to
lease such other vacant space to a prospective tenant in lieu of the Premises.
For purposes of such reletting, Landlord is authorized to decorate, repair,
alter and improve the Premises to the extent reasonably necessary or desirable.
If the Premises are relet and the consideration realized therefrom after payment
of all Landlord’s Reletting Expenses, is insufficient to satisfy the payment
when due of Rent reserved under this Lease for any monthly period, then Tenant
shall pay Landlord upon demand any such deficiency monthly. If such
consideration is greater than the amount necessary to pay the full amount of the
Rent, the full amount of such excess shall be retained by Landlord and shall in
no event be payable to Tenant. Tenant agrees that Landlord may file suit to
recover any sums due to Landlord hereunder from time to time and that such suit
or recovery of any amount due Landlord hereunder shall not be any defense to any
subsequent action brought for any amount not theretofore reduced to judgment in
favor of Landlord.
(d) In
the event a Default occurs, Landlord may, at Landlord’s option, enter into the
Premises, remove Tenant’s property, fixtures, furnishings, signs and other
evidences of tenancy, and take and hold such property; provided, however, that
such entry and possession shall not terminate this Lease or release Tenant, in
whole or in part, from Tenant’s obligation to pay the Rent reserved hereunder
for the full Term or from any other obligation of Tenant under this Lease. Any
and all property which may be removed from the Premises by Landlord pursuant to
the authority of the Lease or law, to which Tenant is or may be entitled, may be
handled, removed or stored by Landlord at the risk, cost and expense of Tenant,
and Landlord shall in no event be responsible for the value, preservation or
safekeeping thereof. Tenant shall pay Landlord, upon demand, any and all
expenses incurred in such removal and all storage charges against such property
so long as the same shall be in the Landlord’s possession or under the
Landlord’s control. Any such property of Tenant not retaken from storage by
Tenant within thirty (30) days after the Termination Date, shall be conclusively
presumed to have been conveyed by Tenant to Landlord under this Lease as a xxxx
of sale without further payment or credit by Landlord to Tenant.
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11.03 ATTORNEY’S
FEES
Tenant
shall pay upon demand, all costs and expenses, including reasonable attorneys’
fees, incurred by Landlord in successfully enforcing the Tenant’s performance of
its obligations under this Lease, or resulting from Tenant’s Default, or
incurred by Landlord in any litigation, negotiation or transaction in which
Tenant causes Landlord, without Landlord’s fault, to become involved or
concerned.
Landlord
shall pay upon demand, all costs and expenses, including reasonable attorneys’
fees, incurred by Tenant in successfully enforcing Landlord’s performance of its
obligations under this Lease if Landlord fails to do so after reasonable notice
thereof from Tenant, or incurred by Tenant in any litigation in which Landlord
causes Tenant, without Tenant’s fault, to become involved or
concerned.
11.04 BANKRUPTCY
The
following provisions shall apply in the event of the bankruptcy or insolvency of
Tenant:
(a) In
connection with any proceeding under Chapter 7 of the Bankruptcy Code where the
trustee of Tenant elects to assume this Lease for the purposes of assigning it,
such election or assignment, may only be made upon compliance with the
provisions of (b) and (c) below, which conditions Landlord and Tenant
acknowledge to be commercially reasonable. In the event the trustee elects to
reject this Lease then Landlord shall immediately be entitled to possession of
the Premises without further obligation to Tenant or the trustee.
(b) Any
election to assume this Lease under Chapter 11 or 13 of the Bankruptcy Code by
Tenant as debtor-in-possession or by Tenant’s trustee (the “Electing Party”)
must provide for:
The
Electing Party to cure or provide to Landlord adequate assurance that it will
cure all monetary defaults under this Lease within fifteen (15) days from the
date of assumption and it will cure all nonmonetary defaults under this Lease
within thirty (30) days from the date of assumption. Landlord and Tenant
acknowledge such condition to be commercially reasonable.
(c) If
the Electing Party has assumed this Lease or elects to assign Tenant’s interest
under this Lease to any other person, such interest may be assigned only if the
intended assignee has provided adequate assurance of future performance (as
herein
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defined),
of all of the obligations imposed on Tenant under this Lease.
For the
purposes hereof, “adequate assurance of future performance” means that Landlord
has ascertained that each of the following conditions has been
satisfied:
(i) The
assignee has submitted a current financial statement, certified by its chief
financial officer, which shows a net worth and working capital in amounts
sufficient to assure the future performance by the assignee of Tenant’s
obligations under this Lease; and
(ii) Landlord
has obtained consents or waivers from any third parties which may be required
under a lease, mortgage, financing arrangement, or other agreement by which
Landlord is bound, to enable Landlord to permit such assignment.
(d) Landlord’s
acceptance of rent or any other payment from any trustee, receiver, assignee,
person, or other entity will not be deemed to have waived, or waive, the
requirement of Landlord’s consent, Landlord’s right to terminate this Lease for
any transfer of Tenant’s interest under this Lease without such consent, or
Landlord’s claim for any amount of Rent due from Tenant.
ARTICLE
TWELVE
SURRENDER
OF PREMISES
12.01 IN
GENERAL
Upon the
Termination Date, Tenant shall surrender and vacate the Premises immediately and
deliver possession thereof to Landlord in a clean, good and tenantable
condition, ordinary wear and tear, and damage caused by Landlord excepted.
Tenant shall deliver to Landlord all keys to the Premises. Tenant shall be
entitled to remove from the Premises all movable personal property of Tenant,
Tenant’s trade fixtures and such Tenant Additions which at the time of their
installation Landlord and Tenant agreed may be removed by Tenant. Tenant shall
also remove such other Tenant Additions as required by Landlord, including, but
not limited to, any Tenant Additions containing Hazardous Materials; provided,
that other than with respect to Tenant Additions containing Hazardous Materials
or consisting of cabling and wiring in the plenum or outside of the Premises,
Landlord shall not require Tenant to remove other Tenant Additions except those
upon which Landlord’s consent pursuant to Article Nine above was conditioned
upon such removal. Tenant immediately shall repair all damage resulting from
removal of any
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of
Tenant’s property, furnishings or Tenant Additions, shall close all floor,
ceiling and roof openings and shall restore the Premises to a tenantable
condition as reasonably determined by Landlord. Notwithstanding the foregoing
provisions hereof to the contrary, (i) if any of the Tenant Additions which were
installed by Tenant involved the lowering of ceilings, raising of floors or the
installation of specialized wall or floor coverings or lights, then Tenant shall
also be obligated to return such surfaces to their condition prior to the
commencement of this Lease and Tenant shall also be required to close any
staircases or other openings between floors, and (ii) except for such items as
may contain Hazardous Materials and except for the raised flooring in the
existing computer room in the Premises which Tenant shall remove from the
Premises upon the Termination Date, Tenant shall not be required under this
Section 12.01 to remove any of the other now existing improvements located in
the Premises. In the event possession of the Premises is not delivered to
Landlord when required hereunder, or if Tenant shall fail to remove those items
described above, Landlord may, at Tenant’s expense, remove any of such property
therefrom without any liability to Landlord and undertake, at Tenant’s expense
such restoration work as Landlord deems necessary or advisable.
12.02 LANDLORD’S
RIGHTS
All
property which may be removed from the Premises by Landlord shall be
conclusively presumed to have been abandoned by Tenant and Landlord may deal
with such property as provided in Section 11.02(d). Tenant shall also reimburse
Landlord for all costs and expenses incurred by Landlord in removing any of
Tenant Additions and in restoring the Premises to the condition required by this
Lease at the Termination Date.
ARTICLE
THIRTEEN
HOLDING
OVER
Tenant
shall pay Landlord the greater of (i) one hundred fifty percent (150%) of the
monthly Rent payable for the month immediately preceding the holding over
(including increases for Rent Adjustments which Landlord may reasonably
estimate) or, (ii) one hundred fifty percent (150%) of the fair market rental
value of the Premises as reasonably determined by Landlord for each month or
portion thereof that Tenant retains possession of the Premises, or any portion
thereof, after the Termination Date (without reduction for any partial month
that Tenant retains possession); provided, that for every thirty (30) days such
holdover continues past the Termination Date, the percentage in clauses (i) and
(ii) above shall each be increased by twenty percent (20%) until the percentages
reach two hundred percent (200%) after ninety (90) days
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of
holdover. Tenant shall also pay all damages sustained by Landlord by reason of
such retention of possession; provided, Tenant shall not be responsible for
Landlord’s consequential damages unless such holdover continues for more than
forty-five (45) days after the Termination Date or unless Landlord gives Tenant
notice that Landlord will suffer consequential damages as a result of the
holdover and the holdover occurs or continues more than twenty (20) days after
Tenant’s receipt of such notice. The provisions of this Article shall not
constitute a waiver by Landlord of any re-entry rights of Landlord and Tenant’s
continued occupancy of the Premises shall be as a tenancy in
sufferance.
ARTICLE
FOURTEEN
DAMAGE
BY FIRE OR OTHER CASUALTY
14.01 SUBSTANTIAL
UNTENANTABILITY
(a) If
any fire or other casualty (whether insured or uninsured) renders all or a
substantial portion of the Premises or the Building untenantable, Landlord
shall, with reasonable promptness after the occurrence of such damage (and in
all events within forty-five (45) days thereafter), estimate the length of time
that will be required to Substantially Complete the repair and restoration and
shall by notice advise Tenant of such estimate (“Landlord’s Notice”). If
Landlord estimates that the amount of time required to Substantially Complete
such repair and restoration will exceed one hundred eighty (180) days from the
date such damage occurred, then Landlord, or Tenant if all or a substantial
portion of the Premises is rendered untenantable, shall have the right to
terminate this Lease as of the date of such damage upon giving written notice to
the other at any time within twenty (20) days after delivery of Landlord’s
Notice, provided that if Landlord so chooses, Landlord’s Notice may also
constitute such notice of termination.
(b) Unless
this Lease is terminated as provided in the preceding subparagraph, Landlord
shall proceed with reasonable promptness to repair and restore the Premises to
its condition as existed prior to such casualty, subject to reasonable delays
for insurance adjustments and Force Majeure delays, and also subject to zoning
laws and building codes then in effect. Landlord shall have no liability to
Tenant, and Tenant shall not be entitled to terminate this Lease if such repairs
and restoration are not in fact completed within the time period estimated by
Landlord so long as Landlord shall proceed with reasonable diligence to complete
such repairs and restoration.
(c) Tenant
acknowledges that Landlord shall be entitled to the full proceeds of any
insurance coverage, whether carried by
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Landlord
or Tenant, for damages to the Premises, except for those proceeds of Tenant’s
insurance of its own personal property and equipment which would be removable by
Tenant at the Termination Date. All such insurance proceeds shall be payable to
Landlord whether or not the Premises are to be repaired and
restored.
(d) Notwithstanding
anything to the contrary herein set forth, Landlord shall have no duty pursuant
to this Section to repair or restore any portion of any Tenant Additions or to
expend for any repair or restoration of the Premises or Building amounts in
excess of insurance proceeds paid to Landlord and available for repair or
restoration.
(e) Any
repair or restoration of the Premises performed by Tenant shall be in accordance
with the provisions of Article Nine hereof.
14.02 INSUBSTANTIAL
UNTENANTABILITY
If the
Premises or the Building is damaged by a casualty but neither is rendered
substantially untenantable, then Landlord shall proceed to repair and restore
the Building or the Premises other than Tenant Additions, with reasonable
promptness, unless such damage is to the Premises and occurs during the last six
(6) months of the Term (including any extension thereof properly made prior to
such casualty), in which event either Tenant or Landlord shall have the right to
terminate this Lease as of the date of such casualty by giving written notice
thereof to the other within twenty (20) days after the date of
such casualty.
14.03 RENT
ABATEMENT
If all or
any part of the Premises are rendered untenantable by fire or other casualty and
this Lease is not terminated, Monthly Base Rent and Rent Adjustments shall xxxxx
for that part of the Premises which is untenantable on a per diem basis from the
date of the casualty until Landlord has Substantially Completed the repair and
restoration work in the Premises which it is required to perform, provided, that
as a result of such casualty, Tenant does not occupy the portion of the Premises
which is untenantable during such period.
ARTICLE
FIFTEEN
EMINENT
DOMAIN
15.01 TAKING
OF WHOLE OR SUBSTANTIAL PART
In the
event the whole or any substantial part of the Building or of the Premises is
taken or condemned by any competent authority
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for any
public use or purpose (including a deed given in lieu of condemnation) and is
thereby rendered untenantable, this Lease shall terminate as of the date title
vests in such authority, and Monthly Base Rent and Rent Adjustments shall be
apportioned as of the Termination Date. For purposes of this Article Fifteen,
the parties agree that a “substantial part” of the Premises shall be 10,000
square feet or more of the Premises. Notwithstanding anything to the contrary
herein set forth, in the event the taking is temporary (for less than the
remaining term of the Lease), Landlord may elect either (i) to terminate this
Lease or (ii) permit Tenant to receive the entire award with respect to the
Premises, in which case Tenant shall continue to pay Rent and this Lease shall
not terminate.
15.02 TAKING
OF PART
In the
event a part of the Building or the Premises is taken or condemned by any
competent authority (or a deed is delivered in lieu of condemnation) and this
Lease is not terminated, the Lease shall be amended to reduce or increase, as
the case may be, the Monthly Base Rent and Tenant’s Proportionate Share to
reflect the Rentable Area of the Premises or Building, as the case may be,
remaining after any such taking or condemnation. Landlord, upon receipt and to
the extent of the award in condemnation (or proceeds of sale) shall make
necessary repairs and restorations to the Premises (exclusive of Tenant
Additions) and to the Building to the extent necessary to constitute the portion
of the Building not so taken or condemned as a complete architectural and
economically efficient unit. Notwithstanding the foregoing, if as a result of
any taking, or a governmental order that the grade of any street or alley
adjacent to the Building is to be changed and such taking or change of grade
makes it necessary or desirable to substantially remodel or restore the Building
or prevents the economical operation of the Building, Landlord shall have the
right to terminate this Lease upon ninety (90) days prior written notice to
Tenant.
15.03 COMPENSATION
Landlord
shall be entitled to receive the entire award (or sale proceeds) from any such
taking, condemnation or sale without any payment to Tenant, and Tenant hereby
assigns to Landlord Tenant’s interest, if any, in such award; provided, however,
Tenant shall have the right separately to pursue against the condemning
authority a separate award in respect of the loss, if any, to Tenant Additions
paid for by Tenant without any credit or allowance from Landlord, and for
Tenant’s moving expenses, in both cases so long as there is no diminution of
Landlord’s award as a result.
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ARTICLE
SIXTEEN
INSURANCE
16.01 TENANT’S
INSURANCE
Tenant,
at Tenant’s expense, agrees to maintain in force, with a company or companies
acceptable to Landlord, during the Term: (a) Commercial General Liability
Insurance on a primary basis and without any right of contribution from any
insurance carried by Landlord covering the Premises on an occurrence basis
against all claims for personal injury, bodily injury, death and property
damage, including contractual liability covering the indemnification provisions
in this Lease. Such insurance shall be for such limits that are reasonably
required by Landlord from time to time but not less than a combined single limit
of Five Million and No/100 Dollars ($5,000,000.00); (b) Workers’ Compensation
and Employers’ Liability Insurance for an amount of not less than One Million
and No/100 Dollars ($1,000,000.00), both in accordance with the laws of The
State of Illinois; (c) “All Risks” property insurance in an amount adequate to
cover the full replacement cost of all equipment, installations, fixtures and
contents of the Premises in the event of loss and any such policy shall contain
a provision requiring the insurance carriers to waive their rights of
subrogation against Landlord; (d) In the event a motor vehicle is to be used by
Tenant in connection with its business operation from the Premises,
Comprehensive Automobile Liability Insurance coverage with limits of not less
than One Million and No/100 Dollars ($1,000,000.00) combined single limit
coverage against bodily injury liability and property damage liability arising
out of the use by or on behalf of Tenant, its agents and employees in connection
with this Lease, of any owned, non-owned or hired motor vehicles; and (e) such
other insurance or coverages as Landlord reasonably requires.
16.02 FORM
OF POLICIES
Each
policy referred to in 16.01 shall satisfy the following requirements. Each
policy shall (i) name Landlord and the Indemnitees as additional insureds, (ii)
be issued by one or more responsible insurance companies licensed to do business
in Illinois reasonably satisfactory to Landlord, (iii) where applicable, provide
for deductible amounts satisfactory to Landlord and not permit co-insurance,
(iv) shall provide that such insurance may not be canceled or amended without
thirty (30) days’ prior written notice to the Landlord, and (v) shall provide
that the policy shall not be invalidated should the insured waive in writing
prior to a loss, any or all rights of recovery against any other party for
losses covered by such policies. Tenant shall deliver to Landlord, certificates
of insurance and at Landlord’s reasonable request, copies of all policies and
renewals thereof to be maintained by
35
Tenant
hereunder, not less than ten (10) days prior to the Commencement Date and not
less than ten (10) days prior to the expiration date of each
policy.
16.03 LANDLORD’S
INSURANCE
Landlord
agrees to purchase and keep in full force and effect during the Term hereof,
including any extensions or renewals thereof, insurance under policies issued by
insurers of recognized responsibility, qualified to do business in Illinois on
the Building in amounts not less than the greater of eighty (80%) percent of the
then full replacement cost (without depreciation) of the Building (above
foundations) or an amount sufficient to prevent Landlord from becoming a
co-insurer under the terms of the applicable policies, against fire and such
other risks as may be included in standard forms of all risk coverage insurance
reasonably available from time to time. Landlord agrees to maintain in force
during the Term, Commercial General Liability Insurance covering the Building on
an occurrence basis against all claims for personal injury, bodily injury, death
and property damage. Such insurance shall be for not less than a combined single
limit of Five Million and No/100 Dollars ($5,000,000.00). Neither Landlord’s
obligation to carry such insurance nor the carrying of such insurance shall be
deemed to be an indemnity by Landlord with respect to any claim, liability,
loss, cost or expense due, in whole or in part, to Tenant’s negligent acts or
omissions or willful misconduct.
16.04 WAIVER
OF SUBROGATION
(a) Landlord
agrees that, if obtainable at no, or minimal, additional cost, it will include
in its “All Risks” policies appropriate clauses pursuant to which the insurance
companies (i) waive all right of subrogation against Tenant with respect to
losses payable under such policies and/or (ii) agree that such policies shall
not be invalidated should the insured waive in writing prior to a loss any or
all right of recovery against any party for losses covered by such
policies.
(b) Tenant
agrees to include, if obtainable at no, or minimal, additional cost, in its “All
Risks” insurance policy or policies on its furniture, furnishings, fixtures and
other property removable by Tenant under the provisions of its lease of space in
the Building appropriate clauses pursuant to which the insurance company or
companies (i) waive the right of subrogation against Landlord and/or any tenant
of space in the Building with respect to losses payable under such policy or
policies and/or (ii) agree that such policy or policies shall not be invalidated
should the insured waive in writing prior to a loss any or all right of recovery
against any party for losses covered by such policy or policies.
36
If Tenant
is unable to obtain in such policy or policies either of the clauses described
in the preceding sentence, Tenant shall, if legally possible and without
necessitating a change in insurance carriers, have Landlord named in such policy
or policies as an additional named insured. If Landlord shall be named as an
additional named insured in accordance with the foregoing, Landlord agrees to
endorse promptly to the order of Tenant, without recourse, any check, draft, or
order for the payment of money representing the proceeds of any such policy or
representing any other payment growing out of or connected with said policies,
and Landlord does hereby irrevocably waive any and all rights in and to such
proceeds and payments.
(c) Provided
that Landlord’s right of full recovery under its policy or policies aforesaid is
not adversely affected or prejudiced thereby, Landlord hereby waives any and all
right of recovery which it might otherwise have against Tenant, its servants,
agents and employees, for loss or damage occurring to the Building and the
fixtures, appurtenances and equipment therein, to the extent the same is covered
by Landlord’s insurance, notwithstanding that such loss or damage may result
from the negligence or fault of Tenant, its servants, agents or employees.
Provided that Tenant’s right of full recovery under its aforesaid policy or
policies is not adversely affected or prejudiced thereby, Tenant hereby waives
any and all right of recovery which it might otherwise have against Landlord,
its servants, and employees and against every other tenant in the Building who
shall have executed a similar waiver as set forth in this Section 16.04 (c) for
loss or damage to Tenant’s furniture, furnishings, fixtures and other property
removable by Tenant under the provisions hereof to the extent that same is
covered by Tenant’s insurance, notwithstanding that such loss or damage may
result from the negligence or fault of Landlord, its servants, agents or
employees, or such other tenant and the servants, agents or employees
thereof.
(d) Landlord
and Tenant hereby agree to advise the other promptly if the clauses to be
included in their respective insurance policies pursuant to subparagraphs (a)
and (b) above cannot be obtained on the terms hereinbefore provided (and if such
clauses are obtainable only upon payment of more than minimal additional cost,
then the party in whose favor such waiver of subrogation would be in shall have
the option to pay such additional cost and cause the other party to obtain such
waiver) and thereafter to furnish the other with a certificate of insurance or
copy of such policies showing the naming of the other as an additional named
insured, as aforesaid. Landlord and Tenant hereby also agree to notify the other
promptly of any cancellation or change of the terms of any such policy which
would affect such clauses or naming. All such policies which name both Landlord
and Tenant as additional named insureds shall, to the extent
37
obtainable,
contain agreements by the insurers to the effect that no act or omission of any
additional named insured will invalidate the policy as to the other additional
named insureds.
16.05 NOTICE
OF CASUALTY
Tenant
shall give Landlord notice in case of a fire or accident in the Premises
promptly after Tenant is aware of such event.
ARTICLE
SEVENTEEN
WAIVER
OF CLAIMS AND INDEMNITY
17.01 WAIVER
OF CLAIMS
To the
extent permitted by law, Tenant releases the Indemnitees from, and waives all
claims for, damage to person or property sustained by the Tenant or any occupant
of the Building or Premises resulting directly or indirectly from any existing
or future condition, defect, matter or thing in and about the Property or the
Premises or any part of either or any equipment or appurtenance therein, or
resulting from any accident in or about the Property, or resulting directly or
indirectly from any act or neglect of any tenant or occupant of the Building or
of any other person, including Landlord’s agents and servants, except where
resulting from the willful and wrongful act of any of the Indemnitees. Tenant
hereby waives any consequential damages, compensation or claims for
inconvenience or loss of business, rents, or profits as a result of such injury
or damage. If any such damage, whether to the Premises or to any part of the
Property or any part thereof, or whether to Landlord or to other tenants in the
Building, results from any act or neglect of Tenant, its employees, servants,
agents, contractors, invitees and customers, Tenant shall be liable therefor and
Landlord may, at Landlord’s option, repair such damage and Tenant shall, upon
demand by Landlord, as payment of additional Rent hereunder, reimburse Landlord
within ten (10) days of demand for the total cost of such repairs, in excess of
amounts, if any, paid to Landlord under insurance covering such damages. Tenant
shall not be liable for any damage caused by its acts or neglect if Landlord or
a tenant has recovered the full amount of the damage from proceeds of insurance
policies and the insurance company has waived its right of subrogation against
Tenant.
Notwithstanding
any provision of this Article Seventeen or any other provision of this Lease to
the contrary other than Article Sixteen, Tenant shall not be deemed to have
exempted Landlord from liability for damage for injury to persons or damage to
property caused by or resulting from the negligence or willful misconduct of
Landlord, its agents, servants or employees in the operation or maintenance of
the Building.
38
17.02 INDEMNITY
BY TENANT
To the
extent permitted by law, Tenant agrees to indemnify, protect, defend and hold
the Indemnitees harmless against any and all actions, claims, demands, costs and
expenses, including reasonable attorney’s fees and expenses for the defense
thereof, arising from Tenant’s occupancy of the Premises, from the undertaking
of any Tenant Additions or repairs to the Premises, from the conduct of Tenant’s
business on the Premises, or from any breach or default on the part of Tenant in
the performance of any covenant or agreement on the part of Tenant to be
performed pursuant to the terms of this Lease, or from any willful or negligent
act of Tenant, its agents, contractors, servants, employees, customers or
invitees, in or about the Premises, but only to the extent of Landlord’s
liability, if any, in excess of amounts, if any, paid to Landlord under
insurance covering such claims or liabilities. In case of any action or
proceeding brought against the Indemnitees by reason of any such claim, upon
notice from Landlord, Tenant covenants to defend such action or proceeding by
counsel reasonably satisfactory to Landlord.
ARTICLE
EIGHTEEN
RULES
AND REGULATIONS
18.01 RULES
Tenant
agrees for itself and for its subtenants, employees, agents, and invitees to
comply with the rules and regulations listed on Exhibit D attached hereto and
with all reasonable modifications and additions thereto which Landlord may make
from time to time.
18.02 ENFORCEMENT
Nothing
in this Lease shall be construed to impose upon the Landlord any duty or
obligation to enforce the rules and regulations as set forth on Exhibit D or as
hereafter adopted, or the terms, covenants or conditions of any other lease as
against any other tenant, and the Landlord shall not be liable to the Tenant for
violation of the same by any other tenant, its servants, employees, agents,
visitors or licensees. Landlord shall use reasonable efforts to enforce the
rules and regulations of the Building in a uniform and non-discriminatory
manner. Tenant shall pay to Landlord all damages caused by Tenant’s failure to
comply with the provisions of this Article Eighteen and shall also pay to
Landlord as additional Rent an amount equal to any increase in insurance
premiums directly caused by such failure to comply.
39
ARTICLE
NINETEEN
LANDLORD’S
RESERVED RIGHTS
Landlord
shall have the following rights exercisable without notice to Tenant and without
liability to Tenant for damage or injury to persons, property or business and
without being deemed an eviction or disturbance of Tenant’s use or possession of
the Premises or giving rise to any claim for setoff or abatement of Rent: (1) To
change the Building’s name or street address upon sixty (60) days’ prior written
notice to Tenant; (2) To install, affix and maintain all signs on the exterior
and/or interior of the Building; (3) To designate and/or approve prior to
installation, all types of signs, window shades, blinds, drapes, awnings or
other similar items, and all internal lighting that may be visible from the
exterior of the Premises; (4) Upon reasonable notice to Tenant, to display the
Premises to prospective tenants at reasonable hours during the last twelve (12)
months of the Term; (5) To grant to any party the exclusive right to conduct any
business or render any service in or to the Building, provided such exclusive
right shall not operate to prohibit Tenant from using the Premises for the
purpose permitted hereunder; (6) To change the arrangement and/or location of
entrances or passageways, doors and doorways, corridors, elevators, stairs,
washrooms or public portions of the Building, and to close entrances, doors,
corridors, elevators or other facilities, provided that such action shall not
materially and adversely interfere with Tenant’s access to the Premises or the
Building; (7) To have access for Landlord and other tenants of the Building to
any mail chutes and boxes located in or on the Premises as required by any
applicable rules of the United States Post Office; and (8) To close the Building
after normal business hours, except that Tenant and its employees and invitees
shall be entitled to admission at all times, under such regulations as Landlord
prescribes for security purposes.
ARTICLE
TWENTY
ESTOPPEL
CERTIFICATE
20.01 IN GENERAL
Within
fifteen (15) days after request therefor
by Landlord, Mortgagee or any prospective mortgagee or owner, Tenant agrees as
directed in such request to execute an Estoppel Certificate in recordable form,
binding upon Tenant, certifying (i) that this Lease is unmodified and in full
force and effect (or if there have been modifications, a description of such
modifications and that this Lease as modified is in full force and effect; (ii)
the dates to which Rent has been paid; (iii) that Tenant is in the possession of
the Premises if that is the case; (iv) that, to the best of
40
Tenant’s
knowledge and belief, Landlord is not in default under this Lease, or, if Tenant
believes Landlord is in default, the nature thereof in detail; (v) that Tenant
has no off-sets or defenses to the performance of its obligations under this
Lease (or if Tenant believes there are any off-sets or defenses, a full and
complete explanation thereof); (vi) that the Premises have been completed in
accordance with the terms and provisions hereof or the Workletter, that Tenant
has accepted the Premises and the condition thereof and of all improvements
thereto and has no claims against Landlord or any other party with respect
thereto; (vii) that if an assignment of rents or leases has been served upon the
Tenant by a Mortgagee, Tenant will acknowledge receipt thereof and agree to be
bound by the provisions thereof; (viii) that Tenant will give to the Mortgagee
copies of all notices required or permitted to be given by Tenant to Landlord;
and (ix) to any other information reasonably requested.
20.02 ENFORCEMENT
In the
event that Tenant fails to deliver an Estoppel Certificate, then such failure
shall be a Default for which there shall be no cure or grace period. In addition
to any other remedy available to Landlord, Tenant shall be deemed to have
irrevocably appointed Landlord as Tenant’s attorney-in-fact to execute and
deliver such Estoppel Certificate.
ARTICLE
TWENTY-ONE
RELOCATION
OF TENANT
At any
time after the date of this Lease, Landlord may substitute for any portion of
the Premises constituting all of the Premises located on a floor of the
Building, other premises in the Building (the “New Premises”), in which event
the New Premises shall be deemed to be the Premises for all purposes under this
Lease, provided that (i) the New Premises shall be substantially similar to the
Premises in area, elevator bank and configuration; (ii) if Tenant is then
occupying the Premises, Landlord shall pay the actual and reasonable expenses of
physically moving Tenant, its property and equipment to the New Premises
including without limitation, moving, packing and unpacking, reinstalling
Tenant’s computers, telephones and equipment, together with Tenant’s reasonable
expenses for new stationery and business cards; (iii) Landlord shall give Tenant
not less than sixty (60) days’ prior written
notice of such substitution; (iv) Landlord, at its expense, shall improve the
New Premises with improvements substantially similar to those in the Premises at
the time of such substitution, if the Premises are then improved; (v) the New
Premises shall not be on a lower floor in the Building than the portion of the
Premises it is replacing; (vi) the move shall take
41
place at
night or over a weekend in order to minimize the disruption to Tenant’s
business; and (vii) if the New Premises is larger than the portion of the
Premises it is replacing, Tenant’s Monthly Base Rent and Rent Adjustments shall
not be increased as a result thereof. Notwithstanding the foregoing provisions
of this Article Twenty-One to the contrary, as long as the Premises continues to
consist of at least two full floors in the Building, the only portions of the
Premises for which Landlord may elect hereunder to substitute other space, shall
be those portions, if any, which are not part of a full floor leased to Tenant
hereunder.
ARTICLE
TWENTY-TWO
REAL
ESTATE BROKERS
Tenant
represents that, except for Xxxxxx X. Xxxxxxx, Inc. and
MS Management Services, L.P., Tenant has not dealt with any real estate
broker, sales person, or finder in connection with this Lease, and no such
person initiated or participated in the negotiation of this Lease, or showed the
Premises to Tenant. Tenant hereby agrees to indemnify, protect, defend and hold
Landlord and the Indemnitees, harmless from and against any and all liabilities
and claims for commissions and fees arising out of a breach of the foregoing
representation. Landlord shall be responsible for the payment of all commissions
to the broker, if any, specified in this Article.
ARTICLE
TWENTY-THREE
MORTGAGEE
PROTECTION
23.01 SUBORDINATION
AND ATTORNMENT
This
Lease is and shall be expressly subject and subordinate at all times to (i) any
ground or underlying lease of the Real Property hereafter existing, and all
amendments, renewals and modifications to any such lease, and (ii) the lien of
any first mortgage or trust deed hereafter encumbering fee title to the Real
Property and/or the leasehold estate under any such lease, unless such ground
lease or ground lessor, or mortgage or Mortgagee, expressly provides or elects
that the Lease shall be superior to such lease or mortgage. This subordination
shall be self-operative and no further certificate or instrument of
subordination need be required by any such Mortgagee or ground lessor. In
confirmation of such subordination, however, Tenant shall execute promptly any
reasonable certificate or instrument that Landlord, Mortgagee or ground lessor
may request. If any such mortgage or trust deed is foreclosed, or if any such
lease is terminated, upon request of the Mortgagee or ground lessor, as the case
may be, Tenant will attorn to the purchaser at the foreclosure sale or to the
ground lessor
42
under
such lease, as the case may be, provided, however, that such purchaser or ground
lessor shall not be (i) bound by any payment of Rent for more than one month in
advance except payments in the nature of security for the performance by Tenant
of its obligations under this Lease; (ii) subject to any offset, defense or
damages arising out of a default of any obligations of any preceding Landlord;
or (iii) bound by any amendment or modification of this Lease made without the
written consent of the Mortgagee or ground lessor; or (iv) liable for any
security deposits not actually received in cash by such purchaser or ground
lessor. Upon request by such successor in interest, Tenant shall execute and
deliver reasonable instruments confirming the attornment provided for herein.
Landlord will use reasonable efforts to obtain a non-disturbance agreement in
favor of Tenant from future Mortgagees on each such Mortgagee’s standard
form.
23.02 MORTGAGEE
PROTECTION
Tenant
agrees to give any Mortgagee or ground lessor, by registered or certified mail,
a copy of any notice of default served upon the Landlord by Tenant, provided
that prior to such notice Tenant has received notice (by way of service on
Tenant of a copy of an assignment of rents and leases, or otherwise) of the
address of such Mortgagee or ground lessor. Tenant further agrees that if
Landlord shall have failed to cure such default within the time provided for in
this Lease, then the Mortgagee or ground lessor shall have an additional thirty
(30) days after receipt of notice thereof within which to cure such default or
if such default cannot be cured within that time, then such additional notice
time as may be necessary, if, within such thirty (30) days, any Mortgagee or
ground lessor has commenced and is diligently pursuing the remedies necessary to
cure such default (including but not limited to commencement of foreclosure
proceedings or other proceedings to acquire possession of the Real Property, if
necessary to effect such cure). Such period of time shall be extended by any
period within which such Mortgagee or ground lessor is prevented from commencing
or pursuing such foreclosure proceedings or other proceedings to acquire
possession of the Real Property by reason of Landlord’s bankruptcy. Until the
time allowed as aforesaid for Mortgagee or ground lessor to cure such defaults
has expired without cure, Tenant shall have no right to, and shall not,
terminate this Lease on account of default. This Lease may not be modified or
amended so as to reduce the rent or shorten the term, or so as to adversely
affect in any other respect to any material extent the rights of the Landlord,
nor shall this Lease be canceled or surrendered, without the prior written
consent, in each instance, of the ground lessor or the Mortgagee.
ARTICLE
TWENTY-FOUR
43
NOTICES
(a) All
notices, demands or requests provided for or permitted to be given pursuant to
this Lease must be in writing and shall be personally delivered, sent by Federal
Express or other overnight courier service, or mailed by first class, registered
or certified mail, return receipt requested, postage prepaid.
(b) All
notices, demands or requests to be sent pursuant to this Lease shall be deemed
to have been properly given or served by delivering or sending the same in
accordance with this Section, addressed to the parties hereto at their
respective addresses listed below:
(1) Notices
to Landlord shall be addressed:
MS
MANAGEMENT SERVICES
000 Xxxx
Xxxxxx Xxxxx - Xxxxxxxxx Xxxxx
Xxxxxxx,
Xxxxxxxx 00000-0000
with a
copy to the following:
METROPOLITAN
LIFE INSURANCE COMPANY
0000
Xxxxxx Xxxx - Xxxxx 000
Xxx
Xxxxx, Xxxxxxxx 00000
(2) Notices
to Tenant shall be addressed:
Senior
Vice President and Chief Financial Officer
000 Xxxx
Xxxxxx Xxxxx - Xxxxx 000
Xxxxxxx,
Xxxxxxxx 00000
(c) If
notices, demands or requests are sent by registered or certified mail, said
notices, demands or requests shall be effective upon being deposited in the
United States mail. However, the time period in which a response to any such
notice, demand or request must be given shall commence to run from the date of
receipt on the return receipt of the notice, demand or request by the addressee
thereof. Rejection or other refusal to accept or the inability to deliver
because of changed address of which no notice was given shall be deemed to be
receipt of notice, demand or request sent.
Notices
may also be served by personal service upon any officer, director or partner of
Landlord or Tenant or in the case of delivery by Federal Express or other
overnight courier service, notices shall be effective upon acceptance of
delivery by an employee, officer, director or partner of Landlord or
Tenant.
44
(d) By
giving to the other party at least thirty (30) days written notice thereof,
either party shall have the right from time to time during the term of this
Lease to change their respective addresses for notices, statements, demands and
requests, provided such new address shall be within the United States of
America.
ARTICLE TWENTY-FIVE
INTENTIONALLY
OMITTED
ARTICLE TWENTY-SIX
MISCELLANEOUS
26.01 LATE
CHARGES
All
payments required hereunder (other than the Monthly Base Rent, Rent Adjustments,
and Rent Adjustment Deposits, which shall be due as hereinbefore provided) to
Landlord shall be paid within twenty (20) days after Landlord’s demand therefor.
All such amounts (including, without limitation Monthly Base Rent, Rent
Adjustments, and Rent Adjustment Deposits) not paid when due shall bear interest
from the fifth day after the date due until the date paid at the Default Rate in
effect on the date such payment was due.
26.02 WAIVER
OF JURY TRIAL
As a
material inducement to Landlord to enter into this Lease, Tenant and Landlord
each hereby waive their rights to a trial by jury of any issues relating to or
arising out of its obligations under this Lease or Tenant’s occupancy of the
Premises. Tenant acknowledges that it has read and understood the foregoing
provision.
26.03 DEFAULT
UNDER OTHER LEASE
It shall
be a Default under this Lease if Tenant or any affiliated company under any
other lease with Landlord for premises in the Building defaults under such lease
and as a result thereof such lease is terminated or terminable.
26.04 OPTION
This
Lease shall not become effective as a lease or otherwise until executed and
delivered by both Landlord and Tenant. The submission of the Lease to Tenant
does not constitute a reservation of or option for the Premises, except that it
shall constitute an irrevocable offer on the part of Tenant in effect for
fifteen (15)
45
days to
lease the Premises on the terms and conditions herein contained.
26.05 TENANT
AUTHORITY
Tenant
and Landlord each represents and warrants to the other that it has full
authority and power to enter into and perform its obligations under this Lease,
that the person executing this Lease is fully empowered to do so, and that no
consent or authorization is necessary from any third party.
26.06 ENTIRE
AGREEMENT
This
Lease, the Exhibits and Riders attached hereto and the Workletter contain the
entire agreement between Landlord and Tenant concerning the Premises and there
are no other agreements, either oral or written. This Lease shall not be
modified except by a writing executed by Landlord and Tenant.
26.07 MODIFICATION
OF LEASE FOR BENEFIT OF MORTGAGEE
If
Mortgagee of Landlord requires a modification of this Lease which shall not
result in any increased cost or expense to Tenant or in any other substantial
and adverse change in the rights and obligations of Tenant hereunder, then
Tenant agrees that the Lease may be so modified.
26.08 EXCULPATION
Tenant
agrees, on its behalf and on behalf of its successors and assigns, that any
liability of Landlord with respect to this Lease shall never exceed the amount
of $5,000,000 and Tenant shall not be entitled to any judgment in excess of such
amount.
26.09 ACCORD
AND SATISFACTION
No
payment by Tenant or receipt by Landlord of a lesser amount than any installment
or payment of Rent due shall be deemed to be other than on account of the amount
due, and no endorsement or statement on any check or any letter accompanying any
check or payment of Rent shall be deemed an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord’s right
to recover the balance of such installment or payment of Rent or pursue any
other remedies available to Landlord. No receipt of money by Landlord from
Tenant after the termination of this Lease or Tenant’s right of possession of
the Premises shall reinstate, continue or extend the Term.
46
26.10 LANDLORD’S
OBLIGATIONS ON SALE OF BUILDING
In the
event of any sale or other transfer of the Building, Landlord shall be entirely
freed and relieved of all agreements and obligations of Landlord hereunder
accruing or to be performed after the date of such sale or transfer, provided
that all of Landlord’s obligations hereunder are specifically assumed by the
buyer or transferee.
26.11 BINDING
EFFECT
This
Lease shall be binding upon and inure to the benefit of Landlord and Tenant and
their respective heirs, legal representatives, successors and permitted
assigns.
26.12 CAPTIONS
The
Article and Section captions in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe, or describe the scope or
intent of such Articles and Sections.
26.13 APPLICABLE
LAW
This
Lease shall be construed in accordance with the laws of the State of Illinois.
If any term, covenant or condition of this Lease or the application thereof to
any person or circumstance shall, to any extent, be invalid or unenforceable,
the remainder of this Lease, or the application of such term, covenant or
condition to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and each item, covenant
or condition of this Lease shall be valid and be enforced to the fullest extent
permitted by law.
26.14 ABANDONMENT
In the
event Tenant abandons the Premises but is otherwise in compliance with all the
terms, covenants and conditions of this Lease, Landlord shall (i) have the right to enter into
the Premises in order to show the space to prospective tenants, (ii) have the
right to reduce the services provided to Tenant pursuant to the terms of this
Lease to such levels as Landlord reasonably determines to be adequate services
for an unoccupied premises and (iii) during the last six (6) months of the Term,
have the right to prepare the Premises for occupancy by another tenant upon the
end of the Term.
26.15 LANDLORD’S
RIGHT TO PERFORM TENANT’S DUTIES
If Tenant
fails timely to perform any of its duties under this Lease or the Workletter,
Landlord shall have the right (but not the
47
obligation),
to perform such duty on behalf and at the expense of Tenant without prior notice
to Tenant, and all sums expended or expenses incurred by Landlord in performing
such duty shall be deemed to be additional Rent under this Lease and shall be
due and payable upon demand by Landlord.
26.16 RIDERS
AND EXHIBITS
All
Riders and Exhibits attached hereto shall be deemed to be a part hereof and are
hereby incorporated herein.
48
IN WITNESS WHEREOF, this Lease has been
executed as of the date set forth in Section 1.01(4) hereof.
LANDLORD:
|
TENANT:
|
METROPOLITAN
LIFE INSURANCE
|
XXXXXXX
XXXXXXXX ENVIRODYNE
|
COMPANY
|
ENGINEERS,
INC., a Delaware
|
corporation
|
|
By:
[Signature
Illegible]
|
By:
/s/ Xxxxx X.
Xxxxxx
|
Its:
Vice
President
|
Its:
SR VP -
CFO
|
ATTEST:
|
ATTEST:
|
By:
[Signature
Illegible]
|
By:
/s/ Xxxxxx X.
Xxxxx
|
Its:
Senior
Investment Analyst
|
Its:
Assistant
Secretary
|
49
PLAN
OF PREMISES
EXHIBIT
A
WORKLETTER
AGREEMENT
1. Landlord and Tenant Work.
Under the Lease, Tenant has agreed to accept the Premises "as is, "
without any obligations for the performance of improvements or other work by
Landlord, and Tenant desires to perform certain improvements thereto (the
"Tenant Work"). Such Tenant Work shall be in accordance with the provisions of
this Workletter Agreement, and to the extent not expressly inconsistent
herewith, in accordance with the provisions of the Lease, including without
limitation, Article 9 thereof. Performance of the Tenant Work shall not serve to
xxxxx or extend the time for the commencement of Rent under the Lease, except to
the extent Landlord delays approvals beyond the times permitted
below.
2. Cost of the Work. Except as
provided hereinafter, Tenant shall pay all costs (the "Costs of the Work")
associated with the Tenant Work whatsoever, including without limitation, all
permits, inspection fees, fees of space planners, architects, engineers, and
contractors, utility connections, the cost of all labor and materials, bonds,
insurance, and any structural or mechanical work, additional HVAC equipment, or
modifications to any building mechanical, electrical, plumbing or other systems
and equipment, either within or outside the Premises required as a result of the
layout, design, or construction of the Tenant Work (including without
limitation, computer and phone cabling and wiring installation).
Of the
Costs of the Work, Landlord shall reimburse Tenant up to the amount of
$624,329.55 (the "Improvement Allowance"). Landlord shall fund the Improvement
Allowance in installments, not more frequently than monthly, based on
applications for payment and releases of lien rights, submitted by Tenant on
Landlord's standard form for use by contractors requesting progress payments,
together with such lien releases and affidavits of payments by Tenant's general
contractor and subcontractors contemplated therein with respect to the work
being paid for, and such other documentation as Landlord may reasonably require.
Landlord may issue checks to fund the Improvement Allowance jointly to Tenant,
its general contractor, and, at Tenant's option, to any subcontractors or
suppliers.
In
addition to the Improvement Allowance, Landlord shall reimburse Tenant for
Tenant's space planner's fees to initially design the build-out of the New
Premises in an amount not to exceed One Thousand Nine Hundred Eighteen and
80/100ths Dollars ($1,918.80), plus an additional Seven Hundred Nineteen and
55/100ths Dollars ($719.55) for revisions thereof, plus an additional Seven
Hundred Nineteen and 55/100ths Dollars ($719.55) for construction pricing xxxx
up drawings.
1
Exhibit
B
Landlord
shall apply any unused Improvement Allowance as a credit against the
installments of Monthly Base Rent and Rent Adjustments next coming due until
such credit is used up; provided, however, at Tenant's election by notice to
Landlord, up to $119,925 of the unused Improvement Allowance may be used by
Tenant to pay for furniture, computers and other costs associated with either
Tenant Work or moving into the New Premises (such reimbursements to be made to
Tenant by Landlord not more than once per month after Landlord's receipt of
bills for such items and such other documentation as Landlord may reasonably
require).
3. Space
Plan and Specifications.
a. No
later than May 1, 1996, Tenant shall submit two (2) sets of a "Space Plan" (as
described in Section 15) to Landlord for approval.
b. Landlord
shall within five (5) days after receipt thereof, either approve said Space
Plan, or disapprove the same advising Tenant of the reasons for such
disapproval. In the event Landlord disapproves said Space Plan, Tenant shall
modify the same, taking into account the reasons given by Landlord for said
disapproval, and shall submit two sets of the revised Space Plan to Landlord
within five (5) days after receipt of Landlord's initial
disapproval.
4. Working
Drawings and Engineering Report.
a. No
later than thirty (30) days after receipt of Landlord's approval of the Space
Plan, Tenant shall submit to Landlord for approval two (2) sets of "Working
Drawings" (as defined in Section 15), and a report (the "Engineering Report")
from Tenant's mechanical, structural and electrical engineers indicating any
special heating, cooling, ventilation, electrical, heavy load or other special
or unusual requirements of Tenant.
b. Landlord
shall use reasonable efforts to attempt to either approve the Working Drawings
and Engineering Report, or disapprove the same advising Tenant of the reasons
for disapproval within five (5) business days (and all events within ten (10)
business days) after Landlord's receipt thereof. If Landlord disapproves of the
Working Drawings or Engineering Report, Tenant shall modify and submit revised
Working Drawings, and a revised Engineering Report, taking into account the
reasons given by Landlord for disapproval, within five (5) days after receipt of
Landlord's initial disapproval.
5. Landlord's Approval. Landlord
shall not unreasonably withhold approval of any Space Plans, Working Drawings,
or Engineering Report submitted hereunder if they provide for a customary office
layout, with finishes and materials generally
2
Exhibit
B
conforming
to building standard finishes and materials currently being used by Landlord at
the Property, are compatible with the Property's shell and core construction,
and if no modifications will be required for the Property electrical, heating,
air-conditioning, ventilation, plumbing, fire protection, life safety, or other
systems or equipment, and will not require any structural modifications to the
Property, whether required by heavy loads or otherwise.
6. Space Planners, Architects,
Engineers, and Contractors. The Space Plan, Working Drawings, Engineering
Report and the Tenant Work, shall be prepared and performed by such space
planners, architects, engineers and contractors as may be chosen by Tenant,
subject to Landlord's reasonable prior approval; provided, those chosen by
Tenant shall be licensed, bonded, reputable and qualified and capable of working
in harmony with each other and those of Landlord so as to ensure proper
maintenance of good labor relationships, and in compliance with all applicable
labor agreements existing between trade unions and the relevant chapter of the
Association of General Contractors of America. Such approval shall be granted or
denied within fifteen (15) days after Landlord receives from Tenant with respect
to each such party a reasonable description of the proposed party's background,
references and qualifications. Obtaining such approvals shall not serve to delay
the times for submission of the Space Plan, Working Drawings and Engineering
Report required herein, except to the extent that Landlord delays granting or
denying approval beyond the aforementioned fifteen (15) day period.
7. Change Orders. No changes,
modifications, alterations or additions to the approved Space Plan or Working
Drawings may be made without the prior written consent of the Landlord after
written request therefor by Tenant; provided, changes which are not material and
which do not affect Building systems or structural components shall not require
the prior written consent of Landlord, but Tenant shall promptly give Landlord
notice thereof in all events. Landlord shall consent to or deny such request
within five (5) business days after Landlord's receipt of such request and all
information Landlord reasonably requests in connection therewith. In the event
that the Premises are not constructed in accordance with said approved Space
Plan and Working Drawings, then Tenant shall not be permitted to occupy the
Premises until the Premises reasonably comply in all respects with said approved
Space Plan and Working Drawings; in such case, the Rent shall nevertheless
commence to accrue and be payable as otherwise provided in the
Lease.
8. Compliance. The Tenant Work
shall comply in all respects with the following: (a) the Building Code of the
City and State in which the Building is located and Federal, State, County, City
or other laws, codes, ordinances and regulations, as each may apply
3
Exhibit
B
according
to the rulings of the controlling public official, agent or other such person,
(b) applicable standards of the National Board of Fire Underwriters and National
Electrical Code, (c) building material manufacturer's specifications, and (d)
all other applicable laws and regulations.
9. Guarantees. Each contractor,
subcontractor and supplier participating in the Tenant Work shall guarantee that
the portion thereof for which he is responsible shall be free from any defects
in workmanship and materials for a period of not less than one (1) year from the
date of completion thereof. Every such contractor, subcontractor, and supplier
shall be responsible for the replacement or repair, without additional charge,
of all work done or furnished in accordance with its contract which shall become
defective within one (1) year after completion thereof. The correction of such
work shall include, without additional charge, all additional expenses and
damages in connection with such removal or replacement of all or any part of the
Tenant Work, and/or the Property and/or common areas, or work which may be
damaged or disturbed thereby. All such warranties or guarantees as to materials
or workmanship of or with respect to the Tenant Work shall be contained in the
contract or subcontract which shall be written such that said warranties or
guarantees shall inure to the benefit of both Landlord and Tenant, as their
respective interests may appear, and can be directly enforced by either. Tenant
covenants to give Landlord any assignment or other assurances necessary to
effect such right of direct enforcement. Copies of all contracts and
subcontracts shall be furnished to Landlord promptly after the same are
entered.
10. Performance.
a. The
Tenant Work shall be commenced within a reasonable period after Landlord
approves the Working Drawings, and shall thereafter be diligently prosecuted to
completion, subject to delays for reasons beyond Tenant's control (except
financial matters). All Tenant Work shall conform with the Working Drawings
approved by Landlord in writing, and Landlord may periodically inspect the Work
for such compliance. The Tenant Work shall be coordinated under Landlord's
direction with the work being done or to be performed for or by Landlord or
other tenants in the Property so that the Tenant Work will not interfere with or
delay the completion of any other construction work in the
Property.
b. The
Tenant Work shall be performed in a thoroughly safe, first-class and workmanlike
manner in conformity with the approved Space Plan and Working Drawings, and
shall be in good and usable condition at the date of completion.
c. Tenant
shall be required to obtain and pay for all necessary permits and/or fees with
respect to the Tenant Work, and
4
Exhibit
B
the same
shall be shown to Landlord prior to commencement of the Tenant
Work.
d. Each
contractor and subcontractor shall be required to obtain prior written approval
from Landlord for any space outside the Premises within the Property, which such
contractor or subcontractor desires to use for storage, handling, and moving of
his materials and equipment, as well as for the location of any facilities for
his personnel.
e. The
contractors and subcontractors shall be required to remove from the Premises and
dispose of, at least once a week and more frequently as Landlord may direct, all
debris and rubbish caused by or resulting from the construction. Upon completion
of the Tenant Work, the contractors and subcontractors shall remove all surplus
materials, debris and rubbish of whatever kind remaining within the Property
which has been brought in or created by the contractors and subcontractors in
the performance of the Tenant Work. If any contractor or subcontractor shall
neglect, refuse or fail to remove any such debris, rubbish, surplus material or
temporary structures within two (2) days after notice to Tenant from Landlord
with respect thereto, Landlord may cause the same to be removed by contract or
otherwise as Landlord may determine expedient, and charge the cost thereof to
Tenant as additional Rent under the Lease.
f. Tenant
shall obtain and furnish Landlord all approvals with respect to electrical,
water and telephone work as may be required by the respective company supplying
the service. Tenant shall obtain utility service, including metering, from the
utility company supplying service, unless Landlord elects to supply service
and/or meters.
g. Landlord's
acceptance of the Tenant Work as being complete in accordance with the approved
Space Plan and Working Drawings shall be subject to Landlord's inspection and
written approval. Tenant shall give Landlord 5 days prior written notification
of the anticipated completion date of the Tenant Work.
h. If
contemplated or permitted under the statutes of the State in which the Property
is located, within ten (10) days after completion of construction of the Tenant
Work, Tenant shall execute and file a Notice of Completion with respect thereto
and furnish a copy thereof to Landlord upon recordation, failing which, Landlord
may itself execute and file the same on behalf of Tenant as Tenant's agent for
such purpose.
i. Tenant
shall, at its cost and expense construct, purchase, install and perform any and
all items of the Tenant Work and employ its personnel so as to obtain any
governmentally required certificate of occupancy and to occupy the Premises
as
5
Exhibit
B
soon as
possible, and in all cases on or before the date required therefor hereunder or
under the Lease.
j. If
an expansion joint occurs within the Premises, Tenant shall install finish floor
covering to or covering such joint in a workmanlike manner, and Landlord shall
not accept responsibility for any finish floor covering applied to or installed
over the expansion joint.
k. At
least two (2) copies of "as built" drawings shall be provided to Landlord no
later than thirty (30) days after completion of the Tenant Work.
l. Landlord’s
approval of Tenant's plans and specifications, and Landlord's recommendations or
approvals concerning contractors, subcontractors, space planners, engineers or
architects, shall not be deemed a warranty as to the quality or adequacy of the
Tenant Work, or the design thereof, or of its compliance with laws, codes and
other legal requirements.
m. Tenant
shall conduct its labor relations and relations with employees so as to avoid
strikes, picketing, and boycotts of, on or about the Premises or Property. If
any employees strike, or if picket lines or boycotts or other visible activities
objectionable to Landlord are established, conducted or carried out against
Tenant, its employees, agents, contractors, subcontractors or suppliers, in or
about the Premises or Property, Tenant shall immediately close the Premises and
remove or cause to be removed all such employees, agents, contractors,
subcontractors and suppliers until the dispute has been settled.
n. Landlord
shall not be responsible for any disturbance or deficiency created in the air
conditioning or other mechanical, electrical or structural facilities within the
Property or Premises as a result of the Tenant Work. If such disturbances or
deficiencies result, Tenant shall correct the same and restore the services to
Landlord's reasonable satisfaction, within a reasonable time.
o. If
performance of the Tenant Work shall require that additional services or
facilities (including without limitation, extra or after-hours elevator usage or
cleaning services) be provided, Tenant shall pay Landlord's reasonable charges
therefor.
p. Tenant's
contractors shall comply with the rules of the Property and Landlord's
requirements respecting the hours of availability of elevators and manner of
handling materials, equipment and debris. Tenant's demolition must be performed
after 6:00 p.m. or on weekends. Delivery of materials, equipment and removal of
debris must be arranged to avoid any inconvenience or
6
Exhibit
B
annoyance
to other occupants. The Tenant Work and all cleaning in the Premises must be
controlled to prevent dirt, dust or other matter from infiltrating into adjacent
tenant or mechanical areas.
q. Landlord
may impose reasonable additional requirements from time to time in order to
ensure that the Tenant Work, and the construction thereof does not disturb or
interfere with any other tenants of the Property, or their visitors, contractors
or agents. nor interfere with the efficient, safe and secure operation of the
Property.
11. Insurance. All contractors and
sub-contractors shall carry Worker's Compensation Insurance covering all of
their respective employees in the statutory amounts, Employer's Liability
Insurance in the amount of at least $500,000 per occurrence, and comprehensive
general liability insurance of at least $3,000,000 combined single limit for
bodily injury, death, or property damage; and the policies therefor shall cover
Landlord and Tenant, as additional named insureds, as well as the contractor or
subcontractor. Tenant or Tenant's contractor shall carry builder's risk
insurance coverage respecting the construction and improvements to be made by
Tenant, in the amount of the anticipated cost of construction of the Tenant Work
(or any guaranteed maximum price). All insurance carriers hereunder shall be
rated at least A and X in Best's Insurance Guide. Certificates for all such
insurance shall be delivered to Landlord before the construction is commenced or
contractor's equipment is moved onto the Property. All policies of insurance
must require that the carrier give Landlord twenty (20) days' advance written
notice of any cancellation or reduction in the amounts of insurance. In the
event that during the course of the Tenant Work any damage shall occur to the
construction and improvements being made by Tenant, then Tenant shall repair the
same at Tenant's cost.
12. Signage. Notwithstanding
anything contained herein to the contrary, Landlord shall cause signage of
building standard material and design to be placed on or near the door of the
Premises. Tenant shall also have the right to signage on the 5th and 6th floors
and in the Building lobby, in locations to be selected by Landlord. In addition,
Landlord shall cause signage to be placed in the main elevator lobby of the
Building consistent with that of other tenants with signage there. Tenant shall
pay the cost of all such signage to Landlord upon demand. The amount due from
Tenant therefor shall be deemed "Rent" under the Lease. Tenant shall promptly
advise Landlord what name or names Tenant wishes for said signage. The design,
color, size and content of all signage shall be subject to Landlord's prior
written approval. No other signage may be installed or placed outside the
Premises by Tenant.
7
Exhibit
B
13. Liens. Tenant shall keep the
Property and Premises free from any mechanic's, materialman's or similar liens
or other such encumbrances in connection with the Tenant Work, and shall
indemnify and hold Landlord harmless from and against any claims, liabilities,
judgments, or costs (including attorneys’ fees) arising in connection therewith.
Tenant shall give Landlord notice at least twenty (20) days prior to the
commencement of the Tenant Work (or such additional time as may be necessary
under applicable laws), to afford Landlord the opportunity of posting and
recording appropriate notices of nonresponsibility. Tenant shall remove any such
lien or encumbrance by bond or otherwise within thirty (30) days after written
notice by Landlord, and if Tenant shall fail to do so, Landlord may pay the
amount necessary to remove such lien or encumbrance, without being responsible
for investigating the validity thereof. The amount paid shall be deemed
additional rent under the Lease payable upon demand, without limitation as to
other remedies available to Landlord under the Lease. Nothing contained herein
shall authorize Tenant to do any act which shall subject Landlord's title to the
Property or Premises to any liens or encumbrances whether claimed by operation
of law or express or implied contract. Any claim to a lien or encumbrance upon
the Property or Premises arising in connection with the Tenant Work shall be
null and void, or at Landlord's option shall attach only against Tenant's
interest in the Premises and shall in all respects be subordinate to Landlord's
title to the Property and Premises.
14. Indemnity. Tenant shall
indemnify, defend and hold harmless Landlord (and Landlord's principals,
partners, members, agents, trustees, beneficiaries, officers, employees and
affiliates) from and against any claims, demands, losses, damages, injuries,
liabilities, expenses, judgments, liens, encumbrances, orders, and awards,
together with attorneys' fees and litigation expenses arising out of or in
connection with the Tenant Work, or Tenant's failure to comply with the
provisions hereof, or any failure by Tenant's contractors, subcontractors or
their employees to comply with the provisions hereof, except to the extent
caused by Landlord's intentional or negligent acts.
15. Certain
Definitions.
a. "Space
Plan" herein means a floor plan, drawn to scale, showing: (1) demising walls,
corridor doors, interior partition walls and interior doors, including any
special walls, glass partitions or special corridor doors, (2) any restrooms,
kitchens, computer rooms, file rooms and other special purpose rooms, and any
sinks or other plumbing facilities, or other special facilities or equipment,
(3) any communications system, indicating telephone and computer outlet
locations, and (4) any other details or features required to reasonably
delineate the Tenant Work to be performed.
8
Exhibit
B
b. "Working
Drawings" herein means fully dimensioned architectural construction drawings and
specifications, and any required engineering drawings (including mechanical,
electrical, plumbing, air-conditioning, ventilation and heating), and shall
include any applicable items described above for the Space Plan, and if
applicable: (1) electrical outlet locations, circuits and anticipated usage
therefor, (2) reflected ceiling plan, including lighting, switching, and any
special ceiling specifications, (3) duct locations for heating, ventilating and
air-conditioning equipment, (4) details of all millwork, (5) dimensions of all
equipment and cabinets to be built in, (6) furniture plan showing details of
space occupancy, (7) keying schedule, (8) lighting arrangement, (9) location of
print machines, equipment in lunch rooms, concentrated file and library loadings
and any other equipment or systems (with brand names wherever possible) which
require special consideration relative to air-conditioning, ventilation,
electrical, plumbing, structural, fire protection, life-fire-safety system, or
mechanical systems, (10) special heating, ventilating and air conditioning
equipment and requirements, (11) weight and location of heavy equipment, and
anticipated loads for special usage rooms, (12) demolition plan, (13) partition
construction plan, (14) type and color of floor and wall-coverings, wall paint
and any other finishes, and any other details or features required to completely
delineate the Tenant Work to be performed.
16. Taxes. Tenant shall pay prior
to delinquency all taxes, charges or other governmental impositions (including
without limitation, any real estate taxes or assessments, sales tax or value
added tax) assessed against or levied upon Tenant's fixtures, furnishings,
equipment and personal property located in the Premises and the Tenant Work to
the Premises under this Agreement. Whenever possible, Tenant shall cause all
such items to be assessed and billed separately from the property of Landlord.
In the event any such items shall be assessed and billed with the property of
Landlord, Tenant shall pay its share of such taxes, charges or other
governmental impositions to Landlord within thirty (30) days after Landlord
delivers a statement and a copy of the assessment or other documentation showing
the amount of such impositions applicable to Tenant.
17. INCORPORATED INTO LEASE; DEFAULT. THE
PARTIES AGREE THAT THE PROVISIONS OF THIS WORKLETTER AGREEMENT ARE HEREBY
INCORPORATED BY THIS REFERENCE INTO THE LEASE FULLY AS THOUGH SET FORTH THEREIN.
In the event of any express inconsistencies between the Lease and this
Workletter Agreement, the latter shall govern and control. If Tenant shall
default under the Lease or this Workletter Agreement, Landlord may order that
all Work being performed in the Premises be stopped immediately, and that no
further deliveries to the Premises be made, until such default is cured, without
limitation as to Landlord's other remedies, and the same shall constitute
Tenant's
9
Exhibit
B
Delay.
Any amounts payable by Tenant to Landlord hereunder shall be paid as additional
rent under the Lease. Any default by the other party hereunder shall constitute
a default under the Lease and shall be subject to the remedies and other
provisions applicable thereto under the Lease. If Tenant shall default under the
Lease or this Workletter Agreement and fail to cure the same within the time
permitted for cure under the Lease, at Landlord's option, all amounts paid or
incurred by Landlord towards the Improvement Allowance shall become immediately
due and payable as additional Rent under the Lease.
10
Exhibit
B
SYSTEMS
SPECIFICATIONS
Air-conditioning
which shall, within tolerances normal in first-class buildings, be capable of
maintaining inside space conditions of 75°F (+ 2° F) dry bulb and 50% relative
humidity when outside conditions are 95°F dry bulb and 75°F wet bulb. Heating
shall, within tolerances normal in first-class office buildings, be capable of
maintaining inside space conditions of 72°F dry bulb when outside conditions are
-5°F dry bulb. The foregoing is based upon occupancy density of not more than
one (1) person for each one hundred fifty (150) usable square feet of floor area
within the Premises and a maximum electric lighting and office machine load of
3.5 xxxxx per useable square foot demand load.
Exhibit
C
RULES
AND REGULATIONS
(1)
|
No
sign, lettering, picture, notice or advertisement shall be placed on any
outside window or in a position to be visible from outside the Premises
and if visible from the outside or public corridors within the Building
shall be installed in such manner and be of such character and style as
Landlord shall approve in writing.
|
(2)
|
Tenant
shall not use the name of the Building for any purpose other than Tenant's
business address; Tenant shall not use the name of the Building for
Tenant's business address after Tenant vacates the Premises; nor shall
Tenant use any picture or likeness of the Building in any circulars,
notices, advertisements or
correspondence.
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(3)
|
No
article which is explosive or inherently dangerous is allowed in the
Building.
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(4)
|
Tenant
shall not represent itself as being associated with any company or
corporation by which the Building may be known or
names.
|
(5)
|
Sidewalks,
entrances, passages, courts, corridors, halls, elevators and stairways in
and about the Premises shall not be
obstructed.
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(6)
|
No
animals (except for dogs in the company of a blind person), pets, bicycles
or other vehicles shall be brought or permitted to be in the Building or
the Premises.
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(7)
|
Room-to-room
canvasses to solicit business from other tenants of the Building are not
permitted; Tenant shall not advertise the business, profession or
activities of Tenant conducted in the Building in any manner which
violates any code of ethics by any recognized association or organization
pertaining to such business, profession or
activities.
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(8)
|
Tenant
shall not waste electricity, water or air-conditioning and shall cooperate
fully with Landlord to assure the most effective and efficient operation
of the Building's heating and air-conditioning
systems.
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(9)
|
No
locks or similar devices shall be attached to any door except by Landlord
and Landlord shall have the right to retain a key to all such locks.
Tenant may not install any locks without Landlord's prior approval, which
approval shall not be unreasonably withheld or
delayed.
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1
Exhibit
D
(10)
|
Tenant
assumes full responsibility of protecting the Premises from theft, robbery
and pilferage; the Indemnitees shall not be liable for damage thereto or
theft or misappropriation thereof. Except during Tenant's normal business
hours, Tenant shall keep all doors to the Premises locked and other means
of entry to the Premises closed and secured. All corridor doors shall
remain closed at all times. If Tenant desires telegraphic, telephones,
burglar alarms or other electronic mechanical devices, the Landlord will,
upon request direct where and how connections and all wiring for such
services shall be installed and no boring, cutting or installing of wires
or cables is permitted without Landlord's
approval.
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(11)
|
Except
with the prior reasonable approval of Landlord, all cleaning, repairing,
janitorial, decorating, painting or other services and work in and about
the Premises shall be done only by authorized Building
personnel.
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(12)
|
The
weight, size and location of safes, furniture, equipment, machines and
other large or bulky articles shall be subject to Landlord's approval and
shall be brought to the Building and into and out of the Premises at such
times and in such manner as the Landlord shall direct and at Tenant's sole
risk and cost. Prior to Tenant's removal of any of such articles from the
Building, Tenant shall obtain written authorization of the Office of the
Building and shall present such authorization to a designated employee of
Landlord.
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(13)
|
Tenant
shall not overload the safe capacity of the electrical writing of the
Building and the Premises or exceed the capacity of the feeders to the
Building or risers. T o Landlord's actual knowledge, the floor load of the
Premises is 80 pounds per square foot live load and 20 pounds per square
foot partition, ceiling and door
load.
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(14)
|
To
the extent permitted by law, Tenant shall not cause or permit picketing or
other activity which would interfere with the business of Landlord or any
other tenant or occupant of the Building, or distribution of written
materials involving its employees in or about the Building, except in
those locations and subject to time and other limitations as to which
Landlord may give prior written
consent.
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(15)
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Tenant
shall not xxxx, otherwise prepare or sell any food or beverages in or from
the Premises or use the Premises for housing accommodations or lodging or
sleeping purposes except that Tenant may install and maintain vending
machines, coffee/beverage stations and food warming equipment and eating
facilities for the benefit of its employees or guests, provided the same
are maintained in compliance with
applicable
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2
Exhibit
D
laws and
regulations and do not disturb other tenants in the Building with odor, refuse
or pests.
(16)
|
Tenant
shall not permit the use of any apparatus for sound production or
transmission in such manner that the sound so transmitted or produced
shall be audible or vibrations therefrom shall be detectable beyond the
Premises; nor permit objectionable odors or vapors to emanate from the
Premises.
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(17)
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No
floor covering shall be affixed to any floor in the Premises by means of
glue or other adhesive without Landlord's prior written
consent.
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(18)
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Tenant
shall at all time maintain the window blinds in the lowered position,
though Tenant may keep the louvers
open.
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(19)
|
Tenant
shall only use the freight elevator for mail carts, dollies and other
similar devices for delivering material between floors that Tenant may
occupy.
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(20)
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No
smoking, eating, drinking, loitering or laying is permitted in the Common
Area except in designated areas.
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(21)
|
Landlord
may require that all persons who enter or leave the Building identify
themselves to security guards, by registration or otherwise. Landlord,
however, shall have no responsibility or liability for any theft, robbery
or other crime in the Building. Tenant shall assume full responsibility
for protecting the Premises, including keeping all doors to the Premises
locked after the close of business.
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(22)
|
Tenant
shall comply with all safety, fire protection and evacuation procedures
and regulations established by Landlord or any governmental agency and
shall cooperate and participate in all reasonable security and safety
programs affecting the Building. If Tenant installs a security system
which includes card reader access devices, crash bars or similar hardware
on fire exit doors, Tenant shall in all events not prohibit access
required by laws or regulations or by safety, fire protection and
evacuation procedures.
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3
Exhibit
D
EXHIBIT
E
HAS
BEEN INTENTIONALLY DELETED
1
Exhibit
E
CLEANING
SCHEDULE
1
Exhibit
F
II. CLEANING
SPECIFICATIONS - NIGHT
A. CLIENT
SUITES
GENERAL
NOTE: The Contractor is responsible for damage to client space including any
broken desks, plants, venetian blinds, etc.
1. NIGHTLY
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a.
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Carpeted
floors: All carpeted floors will be vacuumed nightly using a high
quality vacuum, moving all light furniture such as chairs and stands. All
furniture will be replaced to its original position. Vacuum under all
desks and large furniture
|
6
where
possible. Spot clean, as required. Beater bar vacuum should be used when
necessary.
|
b.
|
Uncarpeted
floors: All hard-surfaced floors will be dust-mopped nightly, using
a treated dust mop, moving all light furniture. All furniture will be
replaced to its original position. Dust-mop under all desks and large
furniture where possible. Spot-clean where necessary to remove spills and
smudges and buff as necessary.
|
|
c.
|
Dusting
and cleaning: Wipe all furniture tops, legs, rungs and sides; wipe
and disinfect telephones; move lamps, ashtrays, and other accessories
(i.e. paper clips holder, rolodex, etc.) as necessary. Wipe all horizontal
surfaces within reach, including window ledges, baseboards, ledges,
molding and xxxxx on glass and partitions. No feather dusters will be
allowed. Papers or other personal items (i.e., pictures, keys, wallets,
etc.) left on desk tops should not be
removed.
|
|
d.
|
Furniture
and Accessories: Dust, wipe clean and remove finger marks, if
necessary, from all furniture, file cabinets, mapboards, and telephones
using treated cloth.
|
|
e.
|
Doors
and Walls: All doors, jambs, walls and window mullions will be
spot-cleaned to remove streaks, smudges, finger marks, spills, and stains,
paying particular attention to walls around switch plates and door jambs
and doors around knobs and opening
edges.
|
|
f.
|
Trash
Removal: Collect and remove
wastepaper, waste material and cardboard boxes (which Contractor will flatten)
to designated area in or adjacent to the premises. Separate all wastepaper
from other waste material and bag separately. Waste and/or rubbish bags
shall be furnished by Contractor, if requested
by Manager, and
shall be adequate to hold contents without breaking. Manager shall have the
right to approve trash removal containers and janitorial carts. Cardboard
boxes should be placed in compactor, wood and metal should be placed in
open dumpster. Contractor will
participate in building recycling program, where
applicable.
|
|
g.
|
Miscellaneous:
Sweep private stairways, wash as necessary, vacuum carpeted stairways,
dust hand rails, balustrades and stringers as
necessary.
|
7
Dust and
clean all chair rails, paneling, trim, door and other architectural louvers,
lattices and ornamental work, grilles, pictures, vinyl or fabric of chairs and,
settees, ventilating louvers, charts and baseboards. Clean all directory board
glass and display glass. Wash as needed and directed by Manager.
Remove
all finger marks, smudges, gum or foreign matter from glass desk tops, glass
table tops, glass entrances, private entrances to offices and elevator doors.
Additionally, remove all marks and smudges from metal partitions and mail chutes
(if any).
Clean
glass entrance doors nightly.
Scour,
wash clean all water fountains and coolers, emptying waste water as
needed.
Mop up,
wash or spot remove all coffee stain spills, foot tracks and smears throughout.
Remove all ink stains as necessary.
Dust and
wash all closet and coatroom shelving, coat racks and flooring.
Wipe
clean and polish all brass, stainless steel, metal and other bright work, using
a non-acid polish.
Upon
completion of all nightly chores, all lights shall be turned off, windows
closed, doors locked and offices left in a neat and orderly
condition.
Once
entering a suite, the door is to be locked. Propping the doors open is not
allowed.
2. WEEKLY
|
a.
|
Carpeted
Floors: All carpeted floors will be edged with an edging tool,
paying particular attention to corners, behind doors, and around furniture
legs and bases. Baseboards will be washed with a mild soap, rinsed with
clean water and wiped dry.
|
8
3. MONTHLY
|
a.
|
Uncarpeted
Floors: All hard-surfaced floors will be buffed with an electric
rotary buffing machine as necessary, per manufacturer's specifications,
but no less than once a month. All finish marks and/or residual cleaning
fluids will be removed from baseboards, doors, and
frames.
|
|
b.
|
High
dusting: Perform all high dusting throughout on a monthly basis
unless otherwise specified, including the
following:
|
Vacuum
and dust all pictures, frames, charts, graphs and similar wall hangings not
reached in nightly cleaning. Damp dust as required.
Vacuum
and dust all vertical surfaces such as walls, partitions, doors, bucks and
ventilating louvers, grilles, high moldings and other surfaces not reached in
nightly cleaning.
Dust all
overhead pipes, sprinklers, ventilating and air conditioning louvers and
adjacent ceiling areas, ducts and other equipment items not reached in nightly
cleaning.
Dust all
venetian blinds and window frames.
Dust
exterior of lighting fixtures.
Wash all
furniture glass.
Upholstered
furniture will be vacuumed to remove crumbs and dust.
Vacuum
and dust ceiling tiles as required.
Wipe
clean and polish all aluminum, chrome, stainless steel, brass and other metal
work, including trim and hardware, using a non-acid polish or other solution as
directed by Manager.
4. BI-MONTHLY
|
a.
|
Hard-surfaced
Floors: All hard-surfaced floors will be completely stripped,
removing all finish. After the floors
have
|
9
been
mopped, rinsed and dried, they will be refinished and machine polished to a
uniformly bright, clean appearance, using manufacturer's recommended
specifications. All wax spills and splashes will be removed from baseboards,
doors, jambs, molding and walls.
|
b.
|
Wastebaskets: As
requested by Manager or Client,
thoroughly wash waste-baskets inside and out, dry, and return to their
original location.
|
GENERAL
NOTES: A non-staining floor finish that provides a high-degree of slip
prevention shall be used on all floor maintenance work
Contractor shall provide all
required carpet maintenance for such installations throughout all areas of the
building.
Complete
floor maintenance shall be provided prior to the move-in of all new clients and
a unit price shall be submitted for this work.
Provide
Manager and keep on
file, on site, all safety data sheets on all materials used.
5. ANNUALLY
|
a.
|
All
building standard light fixtures will be removed, cleaned and
replaced.
|
|
b.
|
All
window blinds will be removed, cleaned and
replaced.
|
B. RESTROOMS
1. General
It is the
intention of this specification to keep lavatories thoroughly clean and not to
mask odors. If disinfectants are necessary, an odorless disinfectant shall be
used. Remove all wastepaper and refuse, including sanitary napkins, to a
designated area in the building and dispose of same. All wastepaper and sanitary
napkin receptacles are to be thoroughly cleaned and washed, and new liners
installed; liners to be installed so as to ensure maximum usage of receptacles.
Fill toilet tissue holders, seat cover containers, soap dispensers, towel
dispensers, and sanitary napkin dispensers. All supplies (i.e. toilet paper,
hand towels, toilet seat covers and plastic trash receptacle liners) to be
furnished by Manager.
The filling of
10
such
dispensers to be in such quantity as to last the entire business day. Whenever
possible, do not overfill and do not stock supplies
on shelves, vanity tops or other visible areas. Immediately report all necessary
repairs/replacements to the Manager including lights not
functioning properly. The sanitary dispenser machines will be maintained by
Contractor. The products
for the sanitary dispensers shall be purchased by the Contractor. Revenues collected
by the Contractor on a
regular basis shall be deemed the revenue of the Contractor.
All tasks
detailed above are to be done on a nightly basis.
2. Nightly
Cleaning
|
a.
|
Walls
and Metal Partitions: Damp wipe all metal toilet partitions and
tiled walls, removing graffiti with
care taken not to damage surfaces. All surfaces are to be wiped dry so
that all wipe marks are removed and surface has a uniformly bright
appearance. Dust the top edges of all partitions, ledges and mirror
tops.
|
|
b.
|
Floors
and Tile: Floors will be swept clean and wet-mopped with a
germicidal detergent approved by Manager using spray tank
method. The floors will then be mopped dry and all watermarks and stains
wiped from wall and metal partition bases, paying particular attention to
corners. Scuff marks and footmarks are to be removed
throughout.
|
|
c.
|
Metal
Fixtures: Wash and polish all mirrors, powder shelves, bright work
(including flushometers and exposed piping below wash basins and behind
toilet fixtures), towel dispensers, receptacles and any other metal
accessories. Contractor shall use
only non-abrasive, non-acidic material to avoid damage to metal
fixtures.
|
|
d.
|
Ceramic
Fixtures: Scour, wash and disinfect all basins, including faucet
handles, bowls, urinals and tile walls near urinals with approved
germicidal detergent solution. Special care must be taken to inspect and
clean areas of difficult access, such as the underside of the lip/rim of
toilet bowls and urinals, to prevent buildup of calcium and iron oxide
deposits. Wash both sides of all toilet seats with approved germicidal
solution and wipe dry. Toilet seats are to be left in an upright
position.
|
11
|
e.
|
Powder
Rooms: If applicable, should be thoroughly cleaned and floors
should be washed and waxed or vacuumed with spot removal, if
applicable.
|
3. Weekly
|
a.
|
Floors:
All floors will be machine scrubbed, using a germicidal solution,
detergent and water. After scrubbing, floors will be rinsed with clean
water and dried. All water marks will be removed from walls, partitions,
and fixtures. An approved floor finish will be applied and buffed as
needed.
|
|
b.
|
Floor
Drains: Clean, disinfect, and fill with water
to avoid the escape of sewer gasses. No acids are
permitted.
|
4. Monthly
|
a.
|
Walls
and Metal Partitions and Washable Ceiling: Wash with water and
germicidal solution. Wipe dry and polish to a uniformly bright, clean
condition.
|
|
b.
|
High
dusting and Cleaning: Perform all high dusting, inclusive of
grilles and diffusers, vacuum and wash all ceilings and louvers, including
washable acoustical tile.
|
The above
shall be performed more frequently, if directed by Manager.
5. Quarterly
|
a.
|
Light
Fixtures and Ceiling Grills: Specially trained employees will
remove light lenses and ceiling grills. Wash thoroughly, dry and replace.
This will be done as often as necessary, but not less often than
quarterly. A proposed cleaning schedule providing for the cleaning in 25%
of the building will be submitted with contractor's proposal for the
proper care and maintenance of these fixtures. Such schedule will be
subject to approval by Manager.
|
12
C. ELEVATORS/ESCALATORS
(Below and Above Grades, including Freights)
1. Nightly
|
a.
|
Floors:
All elevator carpets will be vacuumed and spot-cleaned nightly, using
particular care to clean in corners and along edges. Soluble spots will be
removed using a procedure without risk or injury to color or fabric.
Uncarpeted floors will be swept and
damp-mopped.
|
|
b.
|
Saddles:
All saddles and door tracks will be wiped clean, removing all dirt and
stains. All dirt and debris is to be removed from door tracks using brush,
vacuum and/or edging tool. Saddles and tracks will be left in a uniformly
bright, clean condition.
|
|
x.
|
Xxxxx
and Metalwork: All marks, streaks, smudges, gum and other sticky
substances will be removed from walls, doors (interior and exterior),
panels, granite, facing, grout (removal of marks from grout must be
accomplished without compromising the integrity of the grout), handrails
and jambs and will be wiped down and polished to a uniformly clean and
bright appearance. In a like manner, ceiling panels and above ceiling
areas will be maintained in a uniformly clear and bright appearance. Any
damage (such as scratches, graffiti or broken floor-call buttons) is to be
reported to Manager. In addition,
any lights not functioning properly are to be reported to Manager, noting elevator
numbers.
|
|
d.
|
Escalators:
All metal work on escalators will be wiped cleaned and polished and left
in a uniformly clean and bright
condition.
|
2. WEEKLY
|
a.
|
Floors:
Shampoo carpets in elevator cabs, including spare carpets if made
available, following manufacturer's specifications. Uncarpeted floors are
to be machine scrubbed and sealed, as
necessary.
|
13
D. MAIN
LOBBY AND CONCOURSE
1. Nightly
|
a.
|
Carpeted
Areas: Any carpeted areas, including carpet behind consoles, will
be vacuumed nightly. Vacuuming shall include nightly edging along
baseboards, movement of cigarette urns and small furniture. All furniture
and fixtures are to be replaced to their original position when vacuuming
is finished. Carpet will be spot-cleaned where necessary each
night.
|
|
b.
|
Uncarpeted
Areas: Hard-surfaced floors are to be dust-mopped, using a treated
mop to remove all loose dirt and grit, and then wet-mopped with clean
water and dried. All mop marks and water splashes will be removed from
walls, baseboards, carpeting and furniture, and all furniture and fixtures
replaced to their original position when mopping is completed. Lobby
planters are to be moved to allow for cleaning of floor, then put back in
the same location, where possible.
|
|
x.
|
Xxxxx
and Doors: All walk (including granite), doors, and jambs will be
cleaned to remove all dust, finger marks, smudges and spills (inclusive of
stairway and utility doors). Special attention to all areas around call
buttons.
|
NOTE:
Care must be taken around and/or near all artwork and displays.
|
d.
|
Lobby
Glass: All glass windows, doors, and jambs will be cleaned to
remove all finger marks, smudges and spills, and will be left in a
uniformly bright, clean condition.
|
|
e.
|
Miscellaneous
Metalwork: All metalwork, such as mail chutes and boxes, door
hardware and frames, metal lettering, mullions and xxxxx, door knobs and
kick plates, etc. will be wiped clean and polished and left in a bright
condition, free of all dust and
streaks.
|
|
f.
|
Elevator
Doors, Panels, Granite and Saddles (Tracks): Elevator doors
(interior and exterior) will be wiped down and polished (top to bottom)
and left in a bright condition, free of all dust and streaks. Elevator
saddles will be wiped clean and all dirt and debris removed from door
tracks, using a
|
14
vacuum
service tool. Spills and smudges will be removed so that the saddles and tracks
are left in a bright, clean condition. Any and all scratches or marks should be
reported to the supervisor for report to Manager. Special care should
be taken when cleaning elevator control panels. Do not use water on control
panels.
|
g.
|
Cigarette
Urns: Clean all cigarette urns, removing all butts and debris
nightly using a sifting or screen tool. Refill with sand when necessary;
sand to be no more than 1" from top. All material to be furnished by Contractor.
|
|
h.
|
Dusting:
All horizontal surfaces, including furniture tops and areas within reach
which includes the security station (console) and seating areas, are to be
dusted nightly using treated dust cloths. No feather dusters are
to be used.
|
|
i.
|
Miscellaneous
Displays: Clean all miscellaneous displays, except artwork
(including sign holders, stanchions and newspaper trays nightly) and other
displays as directed.
|
|
j.
|
Louvers:
Dust all door louvers and other ventilating louvers within
reach.
|
|
k.
|
Baseboards:
Dust and clean all baseboards, electric fixtures and any other fixtures or
fittings within reach.
|
|
1.
|
Escalators:
All escalator rails and glass are to be thoroughly cleaned. All escalator
metal is to be cleaned and
polished.
|
|
m.
|
Mats:
Sweep, vacuum, spot clean and scrub as required all mats and
runners.
|
2. Weekly
|
a.
|
Carpeted
Areas: Carpeted floors are to be vacuumed using a pile
lifter to remove all embedded dirt and grit. The operation will
include the same edging and detailing required for nightly
vacuuming.
|
|
b.
|
Uncarpeted
Areas: All hard-surfaced floors will be machine buffed following
specified (Section D, paragraph 1 b) nightly procedures, using an electric
rotary buffing machine to obtain maximum
shine.
|
15
3. Monthly
|
a.
|
Carpeted
Areas: All carpeted floors will be shampooed to remove any spots,
stains or other spills, and be left in a uniformly clean condition. Any
spots not removable by normal shampooing will be reported by the
supervisor to Manager.
|
|
b.
|
Uncarpeted
Areas: All hard-surfaced floors are to be completely machine
scrubbed. After scrubbing, the floor will be re-sealed as needed. On
completion of re-sealing, all water and other marks will be removed from
walls, baseboards, doors, furniture mullions and adjacent carpeted areas.
Lobby and concourse planters shall be moved in all possible cases and
replaced. Special care should be given to ensure that planters or column
bases are not damaged in the scrubbing process. Any repairs shall be made
by Contractor at
Contractor's sole
cost and expense.
|
|
c.
|
Air
Diffusers: All diffusers shall be cleaned using a treated dust
cloth.
|
4. Semi-Annual
|
a.
|
Walls:
All walls, doors and frames will be thoroughly cleaned, using methods
reviewed and accepted by Manager, leaving no
streaks, smudges, dust, or stains. Walls, doors and frames shall have a
uniformly bright and clean appearance when completed. All nicks and
scratches requiring more than routine touch-up will be reported by the
supervisor to the Manager for repair. The
Office of the Building shall be notified one week in advance of the
semi-annual cleaning in order to schedule the removal and safekeeping of
Lobby art work and any other
displays.
|
|
b.
|
Lights:
Clean high lights, globes, fixtures and all other items not reached in
nightly, weekly or quarterly
cleaning
|
NOTE: It
is the intent of this Agreement and Contractor agrees to keep
lobbies. concourse areas and entrance ways properly maintained and clean and
presentable at all times, commensurate with first-class office
buildings.
16
|
E.
|
PUBLIC
AREAS (Hallways, All Elevators Lobbies Which Include Passenger,
Garage and Freights).
|
1. Nightly
|
a.
|
Carpeted
Areas: All carpeted floors are to be vacuumed and edged with a
small broom or edging tool, moving any and all furniture and accessories.
Carpet will be spot-cleaned where necessary, using a method without risk
of injury to color or fabric.
|
|
b.
|
Uncarpeted
Areas: All hard-surfaced floors are to be mopped with a treated
dust mop and buffed, as needed, to maintain a uniformly bright appearance,
with particular attention to edges, corners, and behind doors. All spills
and stains will be removed with a damp mop or cloth. Baseboards, frames
(molding) and granite will be wiped down with a treated dust
cloth.
|
|
x.
|
Xxxxx:
All walls will be spot-cleaned to remove all smudges, stains, and hand
marks, using only clean water or a mild cleansing agent, where necessary.
When soap or cleaner is used, the wall will be rinsed with clean water and
dried. No abrasive materials or solutions are to be
used.
|
|
d.
|
Doors
and Jambs: All doors and jambs will be spot-cleaned to remove any
hand marks, stains, spills or smudges. Use only clean water or a mild
cleansing agent where necessary, and rinse with clean water and dry. When
completed, doors and jambs shall have a uniformly clean
appearance.
|
|
e.
|
Glass
Doors and Partitions: All glass doors and partitions, including any
directory glass, will be spot-cleaned to remove any finger marks, smudges,
or stains and will be left in a uniformly bright, clean
condition.
|
|
f.
|
Miscellaneous
Metalwork: All metalwork, such as mail chutes, door hardware and
frames, metal lettering, and other metal accessories will be wiped clean
and polished using a non-acid polish and left in a uniformly clean and
bright condition, free of all dust and
streaks.
|
|
g.
|
Elevator
Doors and Saddles: Elevator doors, panels (granite or metal) and
frames will be completely wiped down
and
|
17
polished,
removing all dust, marks and stains, and left in a uniformly clean and bright
condition.
|
h.
|
Cigarette
Urns: Clean all cigarette urns, removing all butts and debris
utilizing a sifter screen and fill to within 1" of top with clean sand as
needed. Material to be provided by Contractor.
|
|
i.
|
Dusting:
Dust all accessories, planters, ledges and all other horizontal surfaces,
using a treated dust cloth. No feather dusters are to be used. All
surfaces to be left in a clean, dust-free condition. Spot-clean as
necessary.
|
|
j.
|
Furniture
and Miscellaneous: All furniture is to be wiped, using treated dust
cloth, paying particular attention to legs and surfaces near the floor.
Vinyl or leather surfaces are to be dusted and spot-cleaned where
necessary; fabric is to be vacuumed as
necessary.
|
2. Weekly
|
a.
|
Carpeted
Areas: All carpeted floors will be vacuumed, using a pile lifter to
remove all embedded dirt and grit and restore pile to a uniformly upright
condition.
|
|
b.
|
Uncarpeted
Areas: All hard-surfaced floors will be wet-mopped. All residual
wax and mop or scrubber marks will be removed from baseboards. Floors,
chrome frames, granite walls and baseboards to be left in a uniformly
bright, clean condition.
|
|
c.
|
Baseboards
will be cleaned with mild soap and water, rinsed with clean water and
wiped dry after vacuuming of the carpets is
complete.
|
3. Monthly
|
a.
|
Carpeted
Areas: All carpeted areas will be shampooed removing all stains.
Any damage (i.e., xxxxx, rips, etc.) will be reported to supervisor for
report to Manager.
|
|
b.
|
Uncarpeted
Areas: All hard-surfaced floors are to be stripped of all wax or
other coating, cleaned and dried, removing any and all marks or stains.
Floors will then be refinished and
|
18
polished
and left in a uniformly bright, clean condition. All finish spills and splashes
will be completely removed from baseboards, walls, doors, granite and
frames.
4. Periodic
Cleaning and General Items
|
a.
|
Utility
Areas: All telephone closets, utility closets and building storage
areas shall be cleaned as directed by Manager, but not less
than weekly.
|
|
b.
|
Vacant
Spaces: Clean and sweep all vacant areas as needed or directed by
Manager, but not
less than weekly.
|
|
c.
|
Overhead
Pipes: Dust all visible overhead pipes, sprinklers and equipment
items not reached in nightly cleaning, as directed by Manager, but not less
than monthly.
|
|
d.
|
High
Dusting: All high dusting beyond the reach of the normal day-to-day
dusting will be accomplished monthly. This will include, but not be
limited to, all ledges, charts, picture frames, graphs, air diffusers, and
other horizontal surfaces as well as all vertical surfaces such as walls
and partitions.
|
|
e.
|
Doors
and Jambs: All painted doors and jambs will be washed down with
clean water, using a mild cleansing agent where necessary, rinsed with
clean water and dried, leaving no streaks, marks, or smudges. Chips or
scratches will be reported to supervisor for report to Manager.
|
|
f.
|
Air
Diffusers: All air diffusers will be thoroughly washed and dried
and left in a clean condition as often as necessary, but not less often
than once a month.
|
F. JANITORS'
STORAGE CLOSETS
All
janitors' storage closets, restrooms, lunchrooms, and work/break areas (service
areas) provided by the building for use of Contractor personnel will be
kept in a neat, clean, sanitary and orderly condition at all times. The
restrooms will be maintained in the same condition as the public restrooms as
specified in Section B. Before leaving the premises each night, all of the
service areas will be dust-mopped, and spot-cleaned, where necessary, and
dusted. Tile floors will be stripped and waxed, as necessary, but not less often
than every sixty days. Concrete floors will be sealed (where
19
necessary),
dust-mopped nightly, and wet-mopped monthly. All doors and walls will be
spot-cleaned nightly.
G. STAIRWELLS
1. Weekly
|
a.
|
Cleaning:
All doors, jambs and xxxxx will be checked daily and, where needed, dusted
(wiped down) and spot-cleaned to remove all finger marks, smudges and
stains. Stairs and landings will be swept and spot-cleaned to remove all
spills, stains and litter.
|
|
b.
|
Dusting:
Handrails, baseboards, light fixtures, and all horizontal ledges and
surfaces will be wiped with a treated dust
cloth.
|
|
c.
|
Fire
Equipment: All fire equipment, inclusive of extinguishers, hose
cabinets or covers and communication devices, shall be
dusted.
|
2. Quarterly
|
a.
|
High
dusting: All high dusting, including but not limited to door
closures/smoke dampers and all other surfaces not reached during normal
dusting operations, will be dusted or cleaned, as necessary, but not less
than every three months.
|
3. Semi-Annually
|
a.
|
Stairs
and Landings: All stairs and landings will be wet-mopped and dried.
A schedule for this project shall be submitted in advance for
approval.
|
H. CONSTRUCTION/PRE-OCCUPANCY
(To be considered an extra to contract cost.)
1. Client
Areas
Prior to
client occupancy of new or remodeled space, Contractor shall render a
thorough initial cleaning of all newly-constructed and rented space, including
dusting, sweeping, vacuuming, polishing of metal and bright work, windows, and
mullions, removal of plaster, dust and construction debris so that the premises
are left in a clean.
20
orderly
condition ready for occupancy by client. Contractor shall also provide
complete floor maintenance and initial waxing and polishing throughout the
premises prior to move-in of all new clients.
2. Restrooms
Contractor shall perform a
thorough initial cleaning of all floors, walls, partitions, fixtures, and bright
work as they are placed in operation, at no cost to the Building. No caustic
materials will be used.
I. RECYCLING
PROGRAM
The Manager has instituted a
recycling program which involves the client placing paper goods in centrally
located bins for nightly removal.
The Contractor shall instruct its
associates to use special care when removing this material from the building
into compactors or dumpsters.
Specially
colored liners shall be provided for recycled products by the Manager.
If client
elects to have recycled products sorted at individual work areas rather than
centrally located depots, Contractor agrees to provide
this service at no additional cost to Manager or
Client.
J. LOADING
DOCK (including
compactor area and freight elevator lobby)
1. Nightly
|
a.
|
The
loading dock shall be thoroughly cleaned using a mechanical scrubber and
appropriate grease-cutting and sanitizing
cleansers.
|
2. Monthly
|
a.
|
In
addition to the nightly tasks, the dock area will be detailed around edges
and corners once a month or as required by Manager.
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NOTE:
Freight elevator lobbies and the loading dock office are to be cleaned in
accordance with the previously detailed NIGHT specifications.
21
III. DAY
CLEANING AND GENERAL MAINTENANCE EXPECTATIONS
The
following is an overview and more detailed duties are provided under "DUTIES".
The Day
Staff shall be trained and expected to perform the following duties as well as
any additional duties as may be directed by the Manager; in all activities,
damage or exceptions (lights out, loose panels, etc.) are to be reported to
supervisor for appropriate action.
A. INTERIOR
CLEANING
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1.
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Lobby:
(including Concourse). Maintain entry lobby. Use of carpet sweeper and/or
vacuum shall be used during the day. Treated dust mops shall be used for
removing footprints from floors. Damp mop shall be used for spills. All
glass and walls shall be spot cleaned, removing handprints, smudges, etc.
throughout the day. Security Console and Client Directory shall be cleaned
as needed using a treated cloth but no less than twice a day. FEATHER DUSTERS ARE NOT TO BE
USED. No
scrubbing or buffing shall be done during the day in the Lobby or in
Concourse Areas.
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|
2.
|
Glass
Interior and Exterior: Spot clean glass entry doors and windows
throughout the day, as needed.
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|
3.
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Elevators:
Maintain all elevator cabs. Carpeted elevators are to be vacuumed and
spot-cleaned. Surface litter should be removed, and fingerprints and
smudges on wall panels wiped down. This cleaning should be performed at
least once in the morning and once in the afternoon. Metal damage and
graffiti are to be reported to Manager
immediately.
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|
4.
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Restrooms:
Day Porters and Matrons shall be trained and assigned to perform the
following duties and any additional duties as may be directed by the Manager:
|
|
a.
|
Metal
Fixtures: Wash and polish all mirrors, powder shelves, towel
dispensers, receptacles, and any other metal
accessories.
|
|
b.
|
Ceramic
Fixtures: Special care must be taken to inspect toilet seats,
toilet bowls, sinks and faucet handles. Make sure they are
clean.
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22
|
x.
|
Xxxxx
and Metal Partitions: Damp wipe all metal toilet partitions and
tiled walls, using approved germicidal solution, if necessary. Note any
damage and/or graffiti and report
immediately.
|
|
d.
|
General:
Remove all wastepaper and refuse, including sanitary napkins, also fill
toilet tissue holders, seat cover containers, soap and lotion dispensers,
towel dispensers, and sanitary napkin
dispensers.
|
Clean
drinking fountains twice
daily.
Paper
product refill stock is not to be visibly stored in any area of the
restroom.
B. EXTERIOR
CLEANING
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1.
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Plazas:
First thing each morning, day Porters are to police the entire exterior of
the building, including walkways and lower/upper plazas, picking up
cigarette butts, papers, leaves, and any other debris, mopping/sweeping up
standing water, noting any damage or exceptions, and assuring that the
area is in a neat, orderly condition. Any discrepancies or clean-up
required beyond the morning walk will be reported to Manager for attention
during the day.
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All
plazas, courts, walkways, garden areas, seating areas, ponds, pools, handrails,
etc., are to be checked and cleaned throughout the day with special attention to
early morning 6:00 - 7:00 am, lunch time 11:30 am - 1:00 pm, and end of day 3:30
pm - 4:30 pm All trash and cigarette receptacles to be emptied regularly.
Benches to be cleaned regularly.
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2.
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Exterior
Granite: All exterior walks (including public sidewalks), stairs
and open/covered plazas will be cleaned daily and scrubbed at least weekly
with a mechanical scrubber/vacuum. After cleaning and sweeping, all
standing water will be removed by squeegee and the surfaces left in a
clean, dirt-free condition. Caution signs and stanchions must be used
during the operation. Timing of this scrubbing should not interfere with
usage of the Plaza areas during lunch time or during morning and evening
peak traffic times. Special attention should be given to the cleaning of
grout; removal of efflorescence, accumulated dirt and
stains.
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23
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3.
|
Safety:
Set out rain mats, as necessary, and maintain them in a clean condition.
Report damage or wear and tear. Mats are to be flat and located so as to
meet traffic demands. (Back-rolling for
storage.)
|
|
4.
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Entrances:
Keep entrance door glass and frames in a clean
condition.
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|
5.
|
Brass:
Clean and polish all brass
including but not limited to grates, railings, expansion joint covers,
drain covers, grills, standpipes and fire hose connections as necessary
and at least once a month.
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|
6.
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Railings:
Dust handrails, stair stringers, risers and railings; wash as
necessary.
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|
7.
|
Stairwells:
Clean, sweep, dust, mop, and pick up stairwells and
landings.
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|
8.
|
Special
Events: Clean exterior walks and patios and set up for special
occasions and events.
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|
9.
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Escalators:
Escalator treads are to be mechanically scrubbed and buffed weekly.
Sidewalls and flashing are to be cleaned daily, and handrails dusted
throughout each day. Report damage or exceptions (e.g. missing or loose
screws, squeaking sounds, etc.) for immediate
action.
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|
10.
|
Changing
Rooms and Storage Area: All changing rooms and storage areas are to
be maintained in a clean, orderly
condition.
|
C. LOADING
DOCK (See also CLEANING: NIGHT)
|
1.
|
Maintain
loading dock areas in a clean and sanitary condition. Report any problems
with compactors to the Office of the Building immediately. Compactors to
be kept locked, and all personnel with keys must be trained and
certified in their proper use. When compactor is removed for
dumping, area underneath it shall be swept, hosed and
sanitized.
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|
2.
|
Compactor
Operation: Training of all persons operating compactor should be
arranged with Owner's Manager. Inspect daily
and report to Manager if rubbish
removal contractor does not clean and/or
sanitize.
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24
D. DUTIES
(Detailed list of overall responsibilities for Day Matrons and Day
Porters).
|
1.
|
Duties
of Day Matrons: Contractor agrees to furnish day matrons, as
outlined in this specification, to perform the following duties and any
additional duties as may be directed by Manager.
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Matrons
shall be properly attired in freshly laundered, starched uniforms and equipped
with an appropriate carry-all approved by Manager (shopping bags, travel
bags, etc. are not acceptable). Matrons shall use freight cars only
when traveling with supplies.
|
a.
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Police
all ladies' restrooms and lavatories, keeping them in clean condition as
previously specified, but not less than twice per
day.
|
|
b.
|
Matron
to fill toilet tissue, soap, sanitary napkin and towel dispensers in
ladies' restrooms on an floors.
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|
c.
|
Perform
such other duties as may be directed by Manager.
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2. Duties of
Day Porters:
Contractor agrees to furnish
day porters, as outlined in this specification, to perform the following duties
and any additional duties which may be directed by the Manager.
Contractor also agrees to
provide sufficient porters for client work, which in no way will delete from
building staff, unless approved by Manager.
The
number of porters added to the building staff for client work shall be charged
to Manager.
Sufficient
day porters shall be assigned to perform the following services and any
additional chores as directed by building management.
These
services include but are not limited to the following:
|
a.
|
Police
entire lobby areas and exterior areas including concourse and
plaza.
|
25
|
b.
|
Police
and maintain elevator cabs, including floors as required. If carpeted
floors in elevators, cabs to be vacuumed and spots to be removed, as
required, if resilient tile, clean buff and wax floors, as
required.
|
|
c.
|
Police
all floor men's lavatories, to be checked a minimum of twice a day,
morning and afternoon.
|
|
d.
|
Check
and fill, as necessary, toilet tissue and soap dispensers and towel
dispensers, materials to be furnished by Contractor.
|
|
e.
|
Clean
basement (including all levels below first floor), corridors, utility
areas; police employer's locker rooms so they are kept in clean condition
at all times.
|
|
f.
|
Sweep
and hose building entrance sidewalks and all exterior areas, as required,
but not less than once each week. All equipment including steam and
washing equipment to clean plaza and sidewalks to be provided by Contractor and such
equipment to be of a type and manufacture as approved by the Manager.
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|
g.
|
Set
out and remove weather mats on an as needed basis; keep in clean
condition.
|
|
h.
|
Keep
entrance door glass and frames in clean
condition.
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i.
|
Clean
and polish standpipes and sprinkler Siamese connections as
necessary.
|
|
j.
|
Properly
maintain exterior of all buildings at ground level, including canopy trim
and painted underside of canopies, store fronts, and other applicable
areas; all garden areas to be
policed.
|
|
k.
|
Clean
loading dock areas as needed.
|
|
l.
|
Sweep
and dust stairways and fire tower. Dust handrails, spindles, newels and
stair stringers; wash stairs as
necessary.
|
|
m.
|
Remove
snow when necessary from building entrance ways, sidewalks and plaza. All
materials and equipment, including powered snow removal, steam and washing
equipment to clean plaza, to be furnished by Contractor, and
such
|
26
equipment
to be of a type and manufacture as set forth by Manager. This is to be
considered an extra to the base contract cost when required on overtime. Provide
a list of people to be called in for snow removal.
|
n.
|
As
directed by Manager, equipment
rooms, fan rooms, and other utility rooms, shall be swept
regularly.
|
|
o.
|
Perform
such other duties as may be directed by Manager.
|
|
p.
|
Clean
basement corridors and utility areas, including floors, walls, ceilings,
fixtures and other areas. All such areas shall be kept in clean condition
to the satisfaction of the Manager.
|
IV. STANDARDS
AND SPECIAL CONDITIONS
A. CLEANING
STANDARDS
The
following cleaning standards shall be used in evaluating janitorial
services:
|
1.
|
Dusting:
A properly dusted surface is free of all dirt, dust, dust streaks, lint
and cobwebs.
|
|
2.
|
Plumbing
Fixture and Dispenser Cleaning: Plumbing fixtures and dispensers
are clean when free of all deposits and stains so that an item is left
without dust streaks, film, odor or
stains.
|
|
3.
|
Sweeping:
A property swept floor is free of all dirt, dust, grit, lint and debris
except embedded dirt and grit.
|
|
4.
|
Spot-Cleaning:
A surface adequately spot-cleaned is free of all stains and deposits and
is substantially free of cleaning
marks.
|
|
5.
|
Damp-Mopping:
A satisfactorily damp-mopped floor is without dirt, dust, marks, film,
streaks, debris, water spots or standing
water.
|
|
6.
|
Metal
Cleaning: All cleaned metal surfaces are without deposits or
tarnish, with a uniformly bright appearance, and the cleaner is removed
from adjacent surfaces.
|
|
7.
|
Glass
Cleaning: Glass is clean when all glass surfaces are without
streaks, film, deposits, and stains and has a uniformly bright appearance
and adjacent surfaces have been wiped
clean.
|
27
|
8.
|
Wax
Removal/Application: Wax removal is accomplished when surfaces have
all wax removed down to floor material, floor is left free of all dirt,
stains, deposits, debris, cleaning solution and standing water, and the
floor has a uniform appearance when dry. Application of wax shall be
complete when a thin, evenly applied layer of wax is clear and dry and
ready for buffing to a uniform, glossy
appearance.
|
|
9.
|
Scrubbing
(Manual): Scrubbing is satisfactorily performed when all surfaces
are without embedded dirt, cleaning solution, film, debris, stains, marks
and standing water, and the floor has a uniformly clean
appearance.
|
|
10.
|
Light
Fixture Cleaning: Light fixtures are considered clean when all
components, including bulbs, tubes and adjacent surfaces, reflective and
otherwise, are without insects, dirt, lint, film and streaks. All lenses
that have been removed are to be reinstalled immediately, per
specs.
|
|
11.
|
Wall
Washing: Walls are considered clean when the surface of the walk,
the ceiling, exposed pipes and equipment will have a uniformly clean
appearance, free from dirt, stains, streaks, lint and cleaning marks.
Painted surfaces must not be damaged. Hard finish glazed ceramic tile
surfaces must be bright, free of film, streaks, and
deposits.
|
|
12.
|
Buffing
of Waxed Surfaces: All waxed surfaces will be considered buffed
sufficiently when the surface has maximum gloss and a uniform
appearance.
|
As used
in this cleaning specification, "Approved Product" or "Approved Cleaner" shall
mean a product or cleaner approved in writing by Manager prior to Contractor's use of product or
cleaner in the building.
|
13.
|
Mechanical
Scrubber: The mechanical scrubber shall at all times be clean in
appearance and operation and shall be maintained free of hazards to
persons or property.
|
8. EQUIPMENT
STANDARDS
The Contractor shall provide all
equipment necessary for the effective and efficient cleaning of the Building in
accordance with the intent and the letter of specifications. All cleaning
equipment shall be state-of-the-art and
28
consistent
with good cleaning practices. All equipment shall be kept
in first class working order and clean (spotless, like new) at all times.
Acceptably maintained equipment meets the following standards:
|
1.
|
Equipment
is replaced when obsolete or defective as determined by Manager.
|
|
2.
|
Equipment
is kept clean and neat at all times reflecting a "like new" appearance and
operates like new equipment both mechanically and
functionally.
|
|
3.
|
Modifications
to equipment required to prevent damage to any of the architectural
finishes of the Building is made at the direction and with the written
approval of the Owner at no additional cost to the Owner or Manager.
|
|
4.
|
Electrical
machinery (vacuums, polishers, scrubbers, et al) must be kept free of
sharp edges and any other condition that presents a hazard to persons or
property.
|
|
5.
|
Damaged
equipment is to be repaired to the standard defined in #2 above before
reuse.
|
|
6.
|
Wheels
and rolling parts on carts are to be maintained so as to roll easily;
carts have wide (min. 1") wheels with a minimum 4" diameter in order to
avoid getting caught in ridges and cracks; carts have area large enough to
accommodate all equipment without having to strap on
contents.
|
|
7.
|
Dents/scratches
on equipment are repaired immediately. Any and all parts (squeegees,
bumpers, etc.) of the equipment damaged or worn shall be replaced at the
expense of the Contractor.
|
|
8.
|
Mechanical
equipment (wet-vac, scrubbing machine, et al) is free of dirt and residue;
containers/nozzles for spray liquids are to be maintained in clean
condition, without buildup of dirt or
liquid.
|
|
9.
|
Brooms
have even bristles that do not scratch surfaces being
swept.
|
|
10.
|
Dustmops
(treated and untreated) are maintained in clean
condition.
|
|
11.
|
Wet
mops are washed with clear water and at least once a week with bleach or
disinfectant. Two (2) mops are located in each
work
|
29
area and
are dried between use (alternated every other day). When mops are not in use,
they are to be stored with the mop "end up".
|
12.
|
Rags
and cleaning cloths are maintained in clean condition - rags used with
water only kept separate from rags used with solvent
only.
|
|
13.
|
All
buckets/receptacles are free of accumulated dirt, grease, grime,
etc.
|
|
14.
|
All
signs are clean (like new) and neat at all times with lettering clear and
distinct.
|
C. SUPPLIES
All
supplies required for the effective cleaning and maintenance of the Building in
accordance with the specifications will be supplied by the Contractor, including but not
limited to cleansers, waxes, disinfectants, sand for ash urns, ammonia, etc. The
disposable supplies used in client suites and restrooms (plastic liners, hand
towels, seat covers, toilet tissue and hand soap) will be purchased by Manager or Contractor, if requested to do
so.
D. UNIFORMS
The Contractor shall provide
complete uniforms (winter and summer) for all Janitorial personnel, if
directed.
The Manager shall select and
approve all uniforms and direct, when necessary, the modification, repair or
replacement of all uniforms.
Night
personnel would be provided with a minimum of two (2) changes per week and day
personnel would be provided with a minimum of three (3) changes per
week.
Proper
identification tags shall be worn by all Contractor's personnel,
including Manager's
specialized name badge, at the sole cost of Contractor. The current cost
of each name badge is $7.50 and will need to be replaced at the associate's
annual anniversary date, at cost of Contractor.
NOTE:
Price of badge is subject to change.
Contractor would clean and
maintain uniforms in a neat appearance to the satisfaction of the Manager.
All
personnel shall be equipped as required with appropriate and adequate outer
garments and protective gear for both inclement and cold weather.
30
COMMENCEMENT DATE AGREEMENT
Metropolitan
Life Insurance Company, a New York corporation (“Landlord”), and Xxxxxxx
Xxxxxxxx Envirodyne Engineers, Inc., a Delaware corporation (“Tenant”), have
entered into a certain Office Lease dated January 1, 1996 (the
“Lease”).
W
I T N E S S E T H:
WHEREAS, Landlord and Tenant
wish to confirm and memorialize the Commencement Date and Expiration Date of the
Lease as provided for in Section 2.02(b) of the Lease;
NOW, THEREFORE, in
consideration of these presents and the mutual covenants hereby contained and
contained in the Lease, Landlord and Tenant agree as follows:
1. The
Commencement Date (as defined in the Lease) of the Lease is October 1,
1996.
2. The
Expiration Date (as defined in the Lease) of the Lease is September 30,
2006.
3. Except
as expressly modified hereby, all terms and provisions of the Lease are hereby
ratified, republished and revive and shall remain in full force and effect and
binding on the parties hereto.
4. The
Lease and this Commencement Date Agreement contain all of the terms, covenants,
conditions and agreements between the Landlord and the Tenant relating to the
subject matter herein. No prior other agreements or understandings pertaining to
such matters are valid or of any force and effect.
1
Rider
1
IN WITNESS WHEREOF, Landlord
and Tenant have caused their respective names to be subscribed to this
commencement Date Agreement, the execution and delivery thereof have been duly
authorized.
LANDLORD:
|
TENANT:
|
METROPOLITAN
LIFE INSURANCE
COMPANY, a New York corporation |
XXXXXXX
XXXXXXXX ENVIRODYNE
ENGINEERS, INC., a Delaware corporation |
By: /s/ [Signature
Illegible]
|
By: /s/ Xxxxx X
Xxxxxx
|
Its: VICE
PRESIDENT
|
Its: SR
VP-CFO
|
2
Rider
1
RIDER
2
1. Rent Credit.
A. Landlord,
provided Tenant is not in default under this Lease and continuously occupies the
Premises, grants Tenant the following credits (sometimes referred to hereinafter
as abatements) to be applied against installments of Monthly Base
Rent:
1. A
credit of $32,664.19 shall be applied to the Monthly Base Rent for each of the
first fourteen (14) months of the Lease Term;
2. A
credit of $16,674.19 shall be applied to Monthly Base Rent for each of the
fifteenth (15th) through forty-forty-third (43rd) months of the Lease Term;
and
3. A
credit of $25,000.00 shall be applied to the first month’s Monthly Base Rent due
under this Lease.
B. Rent
Adjustments with respect only to the New Premises (and not the Current Premises)
shall be abated in full during the first fourteen (14) months of the Lease
Term.
C. The
balance of Base Rent, Rent Adjustment Deposits and/or Rent Adjustments due (if
any) for a month in which a credit is applied shall be paid in accordance with
Article 3 and Article 4 of this Lease.
2. Acceleration
Option.
A. Tenant
may accelerate the Expiration Date (“Acceleration Option”) for all or a portion
of the Premises from September 30, 2006 to either (i) September 30, 2000 (“First
Acceleration Option”) or (ii) September 30, 2003 (“Second Acceleration Option”),
if, and only if, in either case:
1. Landlord
receives notice of acceleration (which notice shall be irrevocable on Tenant’s
part, but Tenant’s rights shall be subject to the provisions of this Section 2)
from Tenant as follows:
|
a.
|
with
respect to the First Acceleration Option, Landlord must receive notice no
later than June 30, 1999 (the “First Acceleration Notice”);
and
|
|
b.
|
With
respect to the Second Acceleration Option, Landlord must receive notice
no
|
1
Rider
2
later
than June 30, 2002 (the “Second Acceleration Notice”); and
2. With
respect to the First Acceleration Option, the First Acceleration Notice is
accompanied by a payment (the “First Acceleration Amount”) in the form of a
cashier’s or certified check in the amount of $39.00 per square foot of the
Premises as to which Tenant is exercising the Acceleration Option;
and
3. With
respect to the Second Acceleration Option, the Second Acceleration Notice is
accompanied by a payment (the “Second Acceleration Amount”) in the form of a
cashier’s or certified check in the amount of $24.00 per square foot of the
Premises as to which Tenant is exercising the Acceleration Option.
It is understood and agreed that in
either case the First or Second Acceleration Amount is being paid as and for a
termination fee resulting from the early termination of this Lease and not as a
penalty; provided that the First or Second Acceleration Amount (as the case may
be) shall automatically be increased to reflect the Landlord’s unamortized costs
(including, without limitation, brokerage commissions, rent abatements, and
other financial concessions or commissions, if any) in connection with the
addition of any space to Premises; such costs shall be amortized over the term
of the lease of such additional space taking into account an interest component
at the rate of ten percent (10%) per annum compounded monthly; and
4. a
Default under this Lease has not occurred and is then continuing at the time
Tenant delivers the First or Second Acceleration Notice (as the case may be);
and
5. This
Lease has not been assigned (except to an Affiliate of Tenant) or the Premises
or portion thereof being surrendered to Landlord have not been sublet beyond the
early termination date for such space at the time Tenant delivers the First or
Second Acceleration Notice (as the case may be) to Landlord; and
6. If
Tenant elects to exercise this option with respect to only a portion of the
Premises, such portion and the remainder of the Premises must each be regular
and marketable in shape (and at least 5,000 square feet in size, or if the space
being returned to Landlord is an Offering Space (as defined in Section 6 below)
smaller than 5,000 square feet, then the entire Offering Space) with appropriate
means of ingress and egress suitable for normal renting purposes, have proper
demising walls, hvac distribution and electric and telephone service (including
without limitation, electrical meters and panels), have telephone (homerun)
conduit to telephone closet, appropriate light fixtures
2
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2
along new
demising walls, new acoustic ceiling tiles around demising walls as needed, new
standard entry door, if needed, paint demising walls if needed, rework carpet
and install vinyl base as needed, and if needed, Tenant shall build out
corridors similarly to other multi-tenant floors in the Building;
and
7. Tenant
executes and returns the Acceleration Amendment (defined below) within ten (10)
days of its submission to Tenant.
B. If
Tenant is able to and properly exercises the First or Second Acceleration Option
(as the case may be):
1. Landlord
shall prepare an amendment (the “Acceleration Amendment”) to reflect the change
in the Term, size of the Premises, the Expiration Date, the Base Rent, Rent
Adjustments and other appropriate terms, if any. A copy of the Acceleration
Amendment shall be sent to Tenant within a reasonable time after receipt of the
First or Second Acceleration Notice (as the case may be. The Acceleration
Amendment shall be executed by Tenant and returned to Landlord in accordance
with subsection A.8.
2. Tenant
shall remain obligated and liable for all Rent and Rent Adjustments due under
this Lease up to and including the accelerated Expiration Date established
pursuant to the First or Second Acceleration Notice (as the case may be) and
Acceleration Amendment (even if xxxxxxxx occur subsequent to the applicable
accelerated Expiration Date), and thereafter with respect to the remaining
Premises, if any.
C. Notwithstanding
anything contained herein to the contrary, at Landlord’s sole option, Tenant’s
rights hereunder shall terminate if, after delivery of the First or Second
Acceleration Notice (as the case may be) but prior to the applicable accelerated
Expiration Date, Tenant commits a default under the Lease or assigns the Lease
or subleases the Premises or any portion thereof which is being surrendered to
Landlord which sublease extends beyond the early termination date.
D. Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights hereunder.
E. The
rights of Tenant under this Section 2 are personal to the original Tenant named
in this Lease and its Affiliates and are not assignable to any other person or
entity.
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3. Renewal
Option.
A. Tenant
shall have the option to extend the Expiration Date (“Renewal Option”) from
September 30, 2006 to September 30, 2011, if:
1. Landlord
receives notice of exercise (“Renewal Notice”) on or before September 30, 2005
(which notice shall be irrevocable on Tenant’s part, but Tenant’s rights shall
be subject to the provisions of this Section 3); and
2. at
the time Landlord receives the Renewal Notice:
|
a.
|
a
Default under this Lease has not occurred and is then continuing;
and
|
|
b.
|
the
original named Tenant herein or its Affiliates continues to occupy at
least one full floor of the Building pursuant to this Lease;
and
|
3. the
Premises is for the intended use of Tenant and its Affiliates only during the
entire Extension (as hereinafter defined); and
4. Tenant
executes and returns the “Renewal Amendment” (as hereinafter defined) extending
the Term accordingly pursuant to the exercise of this Renewal Option within ten
(10) days of its submission to Tenant, subject to a good faith reasonable
dispute by Tenant with Landlord as to whether the business terms embodied
therein properly reflect the terms hereof.
B. The
monthly Base Rent rate for the Premises during the Extension shall equal
ninety-five percent (95%) of the Prevailing Market (as hereinafter
defined).
C. Except
as expressly modified by this Section 3, all of the provisions, terms and
conditions of the Lease shall apply to the Premises during the Extension,
including, but not limited to Article 4 of the Lease, except that no allowances,
credits, abatements or other rent limitations (if any) set forth in the Lease
shall apply to the Premises during the Extension (except only to the extent
included in the Prevailing Market determination).
D. If
Tenant is able to and properly exercises its Renewal Option, Landlord shall
prepare an amendment (the “Renewal Amendment”) to reflect the changes in Base
Rent, installments of Base Rent, Expiration Date and other appropriate terms. A
copy of the Renewal Amendment shall be:
4
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2
1. sent
to Tenant within a reasonable time after receipt of the Renewal Notice;
and
2. executed
by Tenant and returned to Landlord in accordance with subsection A.4.
hereof.
E. For
purposes hereof, the following terms shall have the following
meanings:
1. “Extension”
means the period commencing on the tenth (10th) anniversary of the Commencement
Date and ending five (5) years thereafter.
2. “Prevailing
Market” means the Monthly base rent and provisions for Operating Expenses, Taxes
and electricity charges which are being offered or which would be offered by
Landlord and other landlords of comparable downtown Chicago class-A highrise
office buildings to bona fide prospective tenants with a reputation and
financial condition similar to Tenant’s at that time, for leases with a term
commencing at or about the then scheduled Expiration Date and continuing for the
period of the lease of the space in question for comparable office space fully
improved with then Building standard office space improvements for general
office purposes, taking into account concessions which are or would be offered
in such circumstances. If Landlord and Tenant are unable to agree as to what the
Prevailing Market is for the Extension at least twelve (12) months prior to the
prospective commencement of such Extension, Prevailing Market for the Extension
shall be determined as follows:
Within
ten (10) days after Landlord and Tenant determine that they cannot reach an
agreement as to Prevailing Market for the Extension as provided above, Landlord
and Tenant, at their respective expense, shall each cause an independent MAI
appraiser with not less than ten years of experience in the downtown Chicago
market and then actively engaged in the real estate appraisal business in such
area to determine the Prevailing Market on a basis consistent with the terms of
this Lease, said determination to be made within thirty (30) days of their
appointment by Landlord and Tenant, respectively. In the event that the
determination differs by less than ten percent (10%), the Prevailing Market
shall be the average of the two. In the event that the determination differs by
more than ten percent (10%), then the two appraisers shall select a third
independent MAI appraiser with the aforesaid qualifications within fifteen (15)
days, the fees and expenses of which third appraiser shall be paid fifty percent
(50%) by Landlord and fifty percent (50%) by Tenant. If the two appraisers
cannot agree upon a third
5
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2
appraiser
within said fifteen (15)-day period, then either Landlord or Tenant may request
that one be appointed by the local office of the American Arbitration
Association. Said third appraiser shall, within fifteen days of his selection
(or appointment, as applicable), designate which of the two determinations made
by said MA1 appraisers selected by Landlord and Tenant most accurately reflects
Prevailing Market. The determination made in accordance with the foregoing shall
be final and binding on Landlord and Tenant.
F. Notwithstanding
anything contained herein to the contrary, Tenant’s rights hereunder shall
terminate., at Landlord’s election, if, after Tenant’s delivery of the Renewal
Notice but prior to the commencing of the Extension, Tenant commits a default
under the Lease, or assigns the Lease (other than to an Affiliate), or the
original named Tenant herein or its Affiliates cease to occupy at least one full
floor of the Building pursuant to this Lease.
G. Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights hereunder.
H. The
rights of Tenant under this Section 3 are personal to the original Tenant named
in this Lease and its Affiliates and are not assignable to any other person or
entity.
4. First
Expansion Option.
A. Subject
to the provisions of this Section 4, Tenant shall have the option (the “First
Expansion Option”) to lease all, but not less than all of that certain space to
be located on the 4th or 7th floors of the Building (the “First Expansion
Space”) consisting of between 7,000 and 10,000 rentable square feet (plus or
minus ten percent (10%)), the exact size and location of which is to be
determined by Landlord in its reasonable discretion (provided, if Tenant has
exercised its ROFO pursuant to Section 6 of this Rider 2, then at Landlord’s
election, the size of the First Expansion Option Space may be reduced by the
aggregate size of the Offering Spaces leased by Tenant), so long as the First
Expansion Space meets the other parameters hereinbefore set forth,
if:
1. Landlord
receives notice (the “First Expansion Notice”) from Tenant of its exercise of
its First Expansion Option no later than the end of the fourth Lease Year (which
notice shall be irrevocable on Tenant’s part, but Tenant’s rights shall be
subject to the provisions of this Section 4); and
2. at
the time Tenant delivers the First Expansion Notice
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|
a
|
Default
under this Lease has not occurred and is then continuing;
and
|
|
b.
|
the
original named Tenant herein or its Affiliates continues to occupy at
least one full floor of the Building pursuant to this Lease;
and
|
|
c.
|
Tenant
has not exercised its Acceleration Option in accordance with Section 2 of
this Rider 2; and
|
3. the
Expansion Space is intended for the exclusive use of Tenant and its Affiliates
during the Term.
B. Tenant
shall pay Base Rent for the First Expansion Space during the term of the Lease
for such space at the Prevailing Market. If within thirty (30) days after
Landlord’s receipt of the First Expansion Notice Landlord and Tenant are unable
to agree upon the Prevailing Market for the First Expansion Space, the
Prevailing Market for the First Expansion Space shall be determined as set forth
above in Section 3.E.2 (taking into account the actual term of the lease of the
First Expansion Space).
C. Within
a reasonable time after receipt of the First Expansion Notice, Landlord shall
prepare an amendment (the “First Expansion Amendment”) to reflect the
commencement date (the “First Expansion Commencement Date”) of the term for the
First Expansion Space (which shall be a date determined by Landlord which is not
earlier than the first day of the sixth (6th) Lease Year, and not later than the
last day of the seventh (7th) Lease Year) and the changes in Base Rent, Rentable
Area of the Premises, Tenant’s Share, Acceleration Amounts (under Section 2
above) and other appropriate terms. The First Expansion Amendment shall be
executed by Tenant and returned to Landlord within ten (10) days after its
submission to Tenant.
D. Effective
on the First Expansion Commencement Date, the First Expansion Space shall be
deemed added to the Premises subject to all the terms and conditions of the
Lease, except as otherwise provided in this Section 4 and except that no
allowances, credits, abatements or other rent limitations set forth in the Lease
shall apply to the First Expansion Space except to the extent included in the
Prevailing Market.
E. The
First Expansion Space shall be tendered to and accepted by Tenant in its “as-is”
condition and “as-built” configuration existing on the earlier of the date
Tenant takes possession of the First Expansion Space or as of the date the term
for the First Expansion Space commences.
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F. If
Tenant exercises its rights hereunder by sending the First Expansion Notice as
provided in subsection A.1, Tenant’s rights hereunder shall, at Landlord’s sole
option, nevertheless terminate if, after Tenant’s delivery of the First
Expansion Notice but prior to the commencing of the term for the First Expansion
Space, Tenant commits a default under the Lease, or assigns the Lease (other
than to an Affiliate), or the original named Tenant herein or its Affiliates
cease to occupy at least one full floor of the Building pursuant to this Lease
or Tenant exercises its Acceleration Option pursuant to Section 2.
G. Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights hereunder.
H. The
rights of Tenant under this Section 4 are personal to the original Tenant named
in this Lease and its Affiliates and are not assignable to any other person or
entity.
5. Second Expansion Option.
(Deleted in 1st
Amendment)
A. Subject
to the provisions of this Section 5, Tenant shall have the option (the “Second
Expansion Option”) to lease all, but not less than all of that certain space to
be located on the 4th or 7th floors of the Building (the “Second Expansion
Space”) consisting of between 7,000 and 10,000 rentable square feet (plus or
minus ten percent (10%)) , the exact size and location of which is to be
determined by Landlord in its sole discretion (but which Second Expansion Space
shall be contiguous to the First Expansion Space, if and only if Tenant properly
exercised its option in Section 4 above and is then leasing the First Expansion
Space, and provided, if Tenant has exercised its ROFO pursuant to Section 6
below, then at Landlord’s election, the size of the Second Expansion Option
Space may be reduced by the aggregate size of the Offering Space leased by
Tenant), so long as the Second Expansion Space meets the parameters hereinbefore
set forth, if:
1. Landlord
receives notice (the “Second Expansion Notice”) from Tenant of its exercise of
its Second Expansion Option no later than the end of the ninth Lease Year (which
notice shall be irrevocable on Tenant’s part, but Tenant’s
rights shall be subject to the provisions of this Section 5); and
2. at
the time Tenant delivers the Second Expansion Notice
|
a.
|
Default
under this Lease has not occurred and is then continuing;
and
|
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|
b.
|
the
original named Tenant herein or its Affiliates continues to occupy at
least one full floor of the Building pursuant to this Lease;
and
|
|
c.
|
Tenant
has not exercised its Acceleration Option in accordance with Section 2 of
this Rider 2; and
|
3. the
Expansion Space is intended for the exclusive use of Tenant and its Affiliates
during the Term.
B. Tenant
shall pay Base Rent for the Second Expansion Space during the term of the lease
for such space at the Prevailing Market. If within thirty (30) days after
Landlord’s receipt of the Second Expansion Notice Landlord and Tenant are unable
to agree upon the Prevailing Market for the Second Expansion Space, the
Prevailing Market for the Second Expansion Space shall be determined as set
forth above in Section 3.E.2 (taking into account the actual term of the lease
of the Second Expansion Space).
C. Within
a reasonable time after receipt of the Second Expansion Notice, Landlord shall
prepare an amendment (the “Second Expansion Amendment”) to reflect the
commencement date (the “Second Expansion Commencement Date”) of the term for the
Second Expansion Space (which shall be a date determined by Landlord which is
not earlier than the first day of the eleventh (11th) Lease Year, and not later
than the last day of the twelfth (12th) Lease Year) and the changes in Base
Rent, Rentable Area of the Premises, Tenant’s Share, Acceleration Amounts (under
Section 2 above) and other appropriate terms. The Second Expansion Amendment
shall be executed by Tenant and returned to Landlord within ten (10) days after
its submission to Tenant.
D. Effective
on the Second Expansion Commencement Date, the Second Expansion Space shall be
deemed added to the Premises subject to all the terms and conditions of the
Lease, except as otherwise provided in this Section 5 and except that no
allowances, credits, abatements or other rent limitations set forth in the Lease
shall apply to the Second Expansion Space except to the extent included in the
Prevailing Market.
E. The
Second Expansion Space shall be tendered to and accepted by Tenant in its
“as-is” condition and “as-built” configuration existing on the earlier of the
date Tenant takes possession of the Second Expansion Space or as of the date the
term for the Second Expansion Space commences.
F. If
Tenant exercises its rights hereunder by sending the Second Expansion Notice as
provided in subsection A.1, Tenant’s rights
hereunder shall, at Landlord’s sole option,
9
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nevertheless
terminate if, after Tenant’s delivery of the Second Expansion Notice but prior
to the commencing of the term for the Second Expansion Space, Tenant commits a
default under the Lease, or assigns the Lease (other than to an Affiliate), or
the original named Tenant herein or its Affiliates cease to occupy at least one
full floor of the Building pursuant to this Lease or Tenant exercises its
Acceleration Option pursuant to Section 2.
G. Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights hereunder.
H. The
rights of Tenant under this Section 5 are personal to the original Tenant named
in this Lease and its Affiliates and are not assignable to any other person or
entity.
6. Continuing Right of First
Offer.
A. During
the period commencing on the Commencement Date and ending on September 30, 2005
(or September 30, 2010 if Tenant has validly exercised its Renewal Option
pursuant to Section 3), whenever Landlord has a prospective tenant (“Prospect”)
interested in leasing all or any part of the rentable space on the 4th floor of
the Building (the “Offering Space”), Landlord shall so advise Tenant in writing
(the “Advice”) of the terms upon which Landlord is willing to lease the Offering
Space to the Prospect (the “Prospect Terms”), and which Advice shall set forth
the date on which the Offering Space shall be available for lease by Tenant;
provided, however, if the Prospect desires to lease such fourth floor space and
other space in the Building pursuant to a single lease, then for purposes
hereof, the Offering Space shall be deemed to include all such space in the
Building and the proposed terms thereof shall be included in the Prospect Terms.
Subject to the provisions of this Section 6, Tenant shall have the right to
lease (“Right of First Offering” or “ROFO”) all but not less than all of the
Offering Space under the Prospect Terms, except that Tenant shall have no such
right, and Landlord need not give the Advice, if:
1. at
the time Landlord would otherwise deliver the Advice:
|
a.
|
a
Default under this Lease has not occurred and is then continuing;
or
|
|
b.
|
the
original named Tenant herein or its Affiliates no longer occupies at least
one full floor of the Building pursuant to this Lease;
or
|
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2
|
c.
|
the
Lease has been assigned (other than to an Affiliate);
or
|
|
d.
|
Tenant
has exercised either of its Expansion Options as set forth in Sections 4
and 5 of this Rider 2; or
|
2. the
Offering Space is not intended for the exclusive use of Tenant and its
Affiliates during the Term.
B. The
ROFO shall be exercised by Tenant by delivery to Landlord of written notice of
exercise (the “Notice of Exercise”) within ten (10) days after the date of the
Advice (which notice shall be irrevocable on Tenant’s part, but Tenant’s rights
shall be subject to the provisions of this Section 6). If Tenant provides
Landlord with a Notice of Exercise, Landlord shall prepare an amendment (the
“Offering Amendment”) adding the Offering Space to the Premises pursuant to the
terms set forth in the Advice and subsection C below, and reflecting changes in
the size of the Premises, Base Rent, Tenant’s Share and other appropriate terms,
including the term of the Lease as it relates only to the Offering Space (it
being the intention of the parties that the term of the lease of the Offering
Space by Tenant be the same as that included in the Prospect Terms, even if it
is not the same as the then scheduled Expiration Date of this Lease for the
remainder of the Premises). A copy of such Offering Amendment shall be sent to
Tenant within a reasonable time after receipt of the Advice and executed by
Tenant and returned to Landlord within ten (10) days after the submission of the
Offering Amendment to Tenant by Landlord.
C. 1. The
term for the Offering Space shall commence on the date set forth in the Advice
and end on the date set forth in the Advice.
2. Except
as expressly modified by this Section 6, all of the provisions, terms and
conditions of this Lease, including without limitation Article 4, shall apply to
the Offering Space, provided that Tenant shall not be entitled to any credits,
allowances, abatements or other rent limitations set forth in the Lease, except
as are included in the Prospect Terms.
3. The
Offering Space shall be accepted by Tenant in its as-is condition and as-built
configuration existing on the earlier of the date Tenant takes possession of the
Offering Space or as of the date the term for such Offering Space
commences.
D. The
rights of Tenant under this Section 6 shall terminate on the earlier to occur
of:
11
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2
1. if
Landlord is not obligated to send an Advice under subsection A, the date on
which Landlord would have sent the Advice if it had been obligated to do so;
and
2. if
Landlord is obligated to send an Advice under subsection A, and Tenant does not
deliver a Notice of Exercise to Landlord within the time period set forth in
subsection B, on the date which is ten (10) days after the date of the
Advice.
E. If
Landlord has a Prospect for the Offering Space and Landlord is not obligated to
send Tenant an Advice under subsection A, Landlord may lease the Offering Space
to the Prospect or any other prospective tenants on whatever terms Landlord
deems appropriate and Tenant shall have no further rights with respect to the
Offering Space under this Section 6. In addition, where Landlord sends an Advice
and Tenant does not exercise its rights hereunder Landlord may lease the
Offering Space to the Prospect or any other prospective tenants, so long as
prior to entering into a lease with the Prospect or any other prospect for a
total rent which is 10% less (or more than 10% less) than the total rent
contained in the Prospect Terms offered to Tenant, Landlord shall re-offer the
Offering Space to Tenant following the Advice procedure hereinbefore set forth.
The term “total rent” as used in the preceding sentence shall mean the present
value of the “bottom-line” rent, using a 10% discount rate, So, for example, if
the net base rent for the Offering Space set forth in the Advice for a ten year
term is $10.00 per square foot, with a $25.00 per square foot allowance for
tenant improvements, six months of base rent abatement at the start of the ten
year term, an additional $5.00 per square foot allowance for tenant’s moving
expenses, etc. and leasing commissions of $7.50 per square foot, the “total
rent” would be $3.28 per square foot, computed as follows:
10
Year Term
|
|
10%
Discount Rate
|
|
Present
Value/S.F.
|
|
Net
Base Rent $10.00/S.F.
|
$10.00
|
Less:
Tenant Improvements ($25.00/S.F.)
|
(3.97)
|
Abatement
(6 months)
|
(.77)
|
Additional
allowance ($5.00/S.F.)
|
(.79)
|
Leasing
commissions ($7.50/S.F.)
|
(1.19)
|
Bottom
Line Rent
|
$ 3.28
|
F. If
Landlord sends Tenant an Advice and Tenant exercises its rights hereunder by
returning the Notice of Exercise portion of the Advice as provided in subsection
B, Tenant’s rights hereunder shall nevertheless terminate, at Landlord’s
election, if, after Tenant’s delivery of the Notice of Exercise but prior to the
commencing of the term for the Offering Space, Tenant commits a default under
the Lease, or assigns the Lease (other than to an Affiliate), or the original
named Tenant herein or its Affiliates
12
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2
ceases to
occupy at least one full floor of the Building pursuant to this Lease or Tenant
exercises either of its Expansion Options pursuant to Section 4 or 5 or its
Acceleration Option pursuant to Section 2.
G. Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights hereunder.
I. The
rights of Tenant under this Section 6 are personal to the original Tenant named
in this Lease or its Affiliates and are not assignable to any other person or
entity.
J. Tenant’s
rights under this Section 6 are subject to the rights of other tenants which may
now or (so long as Landlord has complied with this Section 6) hereafter lease
any space on the fourth floor of the Building to expand their premises or extend
the term of their lease.
7. Existing Lease of Current
Premises.
Reference
is made to that certain lease dated as of June 19, 1979, between Landlord’s
predecessor in interest and Tenant’s predecessor in interest pursuant to which
Tenant initially leased 52,245 square feet on the 5th and 6th floors of the
Building, as such Lease was subsequently amended by a First Amendment to Lease
dated as of June 24, 1980, a Second Amendment to Lease dated as of August 6,
1982, and a Third Amendment to Lease dated as of May 25, 1989 (such Lease as
amended by the First, Second and Third Amendments is hereinafter referred to as
the “Existing Lease”).
Landlord,
provided Tenant is not in default under this Lease and continuously occupies the
Premises, grants Tenant a credit in the total amount of One Hundred Fifty
Thousand Sixty-Seven and 71/100ths Dollars ($150,067.71) be applied against
monthly Installments of Base Rent (as defined in the Existing Lease) in the
amount of Sixteen Thousand Six Hundred Seventy-Four and 19/100ths Dollars
($16,674.19) per month during the nine (9) month period commencing on the date
of this Lease. If the Existing Lease is terminated pursuant to this Section 7
prior to the application of all such credits, then any unused credit shall be
applied to Monthly Base Rent due under this Lease.
The
balance of Base Rent, Rent Adjustment Deposits and/or Rent Adjustments (all as
defined in the Existing Lease) due for a month in which a credit is applied
shall be paid in accordance with Sections 2 and 3 of the Existing
Lease.
The
Existing Lease shall automatically terminate on the day prior to the
Commencement Date of this Lease as if that day had been set forth therein as the
last day of the Term thereof.
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8. Available
Space Option.
A. Subject
to the provisions of this Section 8, Tenant shall have the one time right (the
“Available Space Option”) to lease up to 10,000 rentable square feet of
additional space on the fourth (4th) or seventh (7th) floors of the Building
(the “Available Space”), the exact size and location of which shall be
determined by Landlord in its reasonable discretion, taking into account
Tenant’s Available Space Notice (as defined below), so long as such Available
Space is not then subject to a lease or occupied (whether through holdover or
otherwise) by a tenant, if:
1. Landlord
receives notice (the “Available Space Notice”) from Tenant of its election to
lease the Available Space no later than March 31, 1997 (which election shall be
irrevocable on Tenant’s part, but Tenant’s rights shall be subject to the
provisions of this Section 8) and which notice shall specify the approximate
rentable square footage Tenant desires to lease (although the exact rentable
square footage shall be determined by Landlord in its reasonable discretion
taking into account Tenant’s request); and
2. at
the time Tenant delivers the Available Space Notice a Default under this Lease
has not occurred and is then continuing; and
3. the
Available Space is intended for the exclusive use of Tenant and its Affiliates
during the Term.
B. The
Monthly Base Rent, Improvement Allowance and Monthly Base Rent credits
applicable to the Available Space shall be as set forth below based upon the
commencement date for the term of the Available Space:
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Number
of Months of
|
|||
Monthly
Base Rent
|
|||
Credit
at Commence-
|
|||
ment
of lease of
|
|||
Monthly
Base
|
Available
Space
|
||
Commencement
|
Rent
|
Improvement
|
|
Date
|
(Annualized)
|
Allowance
|
|
11/1/96
|
months
1-59 $9/ft
|
13
|
$25.91
|
months
60-119 $12/ft
|
|||
12/1/96
|
months
1-58 $9/ft
|
12
|
$25.77
|
months
59-118 $12/ft
|
|||
1/1/97
|
months
1-57 $9/ft
|
11
|
$25.64
|
months
58-117 $12/ft
|
|||
2/1/97
|
months
1-56 $9/ft
|
10
|
$25.52
|
months
57-116 $12/ft
|
|||
3/1/97
|
months
1-55 $9/ft
|
9
|
$25.38
|
months
56-115 $12/ft
|
|||
4/1/97
|
months
1-54 $9/ft
|
8
|
$25.25
|
months
55-114 $12/ft
|
C. Within
a reasonable time after receipt of the Available Space Notice, Landlord shall
prepare an amendment (the “Available Space Amendment”) to reflect the
commencement date of the term for the Available Space (which commencement date
shall be the first day of the first calendar month following the date of
Tenant’s Available Space Notice, whether or not said amendment is then fully
executed, but in no event earlier than November 1, 1996 or later than April 1,
1997), the changes to the Premises, the Base Rent, Improvement Allowance,
Monthly Base Rent credits, Rentable Area of the Premises (the Available Space
constituting additional New Premises for applicable provisions of this Lease),
Tenant’s Share and other appropriate terms. The Available Space Amendment shall
be executed by Tenant and returned to Landlord within ten (10) days after its
submission to Tenant.
D. Effective
on the aforesaid commencement date of the term for the Available Space, the
Available Space shall be deemed added to the Premises subject to all of the
terms and conditions of this Lease, except as otherwise provided in this Section
8.
E. The
Available Space shall be tendered to and accepted by Tenant in its “as is”
condition and “as-built” configuration existing on the date of the commencement
of the term thereof.
F. Tenant’s
rights hereunder shall terminate if Tenant assigns this Lease (other than to an
Affiliate) or the original named Tenant herein or its Affiliates cease to occupy
at least one full floor of the Building pursuant to this Lease.
15
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2
G. Tenant
agrees that time is of the essence in connection with the valid exercise of
Tenant’s rights under this Section 8.
H. The
rights of Tenant under this Section 8 are personal to the original named Tenant
in this Lease and its Affiliates and are not assignable to any other person or
entity.
I. Notwithstanding
any provision of Sections 4 or 5 of this Rider 2 to the contrary, the size and
availability of the First Expansion Space and/or the Second Expansion Space
under Sections 4 and 5, respectively, of this Rider 2 shall be reduced or
eliminated, as reasonably determined by Landlord, if the Available Space
impinges or encroaches on the areas that would otherwise be designated as such
expansion spaces.
9. Storage
Space.
A. Landlord
shall lease to Tenant during the first (1st) three (3) Lease Years of the Term,
an aggregate of approximately 1,181 square feet of Rentable Area on the
concourse level to be used and occupied by Tenant as storage space in such
single or multiple locations as Landlord may determine from time to time (the
“Storage Space”). The Storage Space shall be made available to Tenant in broom
clean condition. Landlord has no obligation to make any improvements to the
Storage Space other than to install a single light fixture, a door with a lock
and demising walls, if not already in place. Tenant’s use of the Storage Space
shall at all times be in compliance with the provisions of this
Lease.
B. Tenant
shall pay no base rent or pass-through of operating expenses or taxes to
landlord for the Storage Space during the first (1st) three (3) Lease Years. If
Tenant desires to continue to lease the Storage Space after the end of the third
(3rd) Lease Year, provided Tenant has given Landlord notice thereof at least
three (3) months prior to the end of the third (3rd) Lease Year, Tenant may
continue to lease the Storage Space during the Term of this Lease subject to
this Section 9 and the terms and provisions of this Lease, except that Tenant
shall pay additional rent for the Storage Space at the rates then being offered
by Landlord for similar storage space.
C. Landlord
may from time to time upon ten (10) business days prior notice to Tenant
relocate any or all of the Storage Space to other storage areas in the Building
(“New Storage Space”) in which event the New Storage Space shall be deemed to be
the Storage Space hereunder. Landlord will either move Tenant’s property to the
New Storage Space at Landlord’s expense or, at Landlord’s election, Tenant will
do so and Landlord will reimburse
16
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2
Tenant
promptly for Tenant’s reasonable out-of-pocket costs incurred in moving Tenant’s
property to the New Storage Space. The Storage Space may consist of multiple
locations at any time.
D. In
no event whatsoever will Landlord be liable for any of the property stored in
any Storage Space and Tenant hereby waives all claims of any sort pertaining to
or arising out of Tenant’s use of the Storage Space.
17
Rider
2