STANDARD FORM INDUSTRIAL BUILDING LEASE (Multi-Tenant)
EXHIBIT
10.2
STANDARD
FORM
INDUSTRIAL
BUILDING LEASE
(Multi-Tenant)
1. BASIC
TERMS.
This
Section
1
contains
the Basic Terms of this Lease between Landlord and Tenant, named below. Other
Sections of the Lease referred to in this Section
1
explain
and define the Basic Terms and are to be read in conjunction with the Basic
Terms.
1.1.
|
Effective
Date of Lease: June 1, 2008.
|
1.2.
|
Landlord:
First Industrial Pennsylvania, LP
|
1.3.
|
Tenant:
Xxxxxxxx Services, ______.
|
1.4.
|
Premises:
Approximately 11,256 rentable square feet in the building commonly
known
as 000 Xxxxx Xxxx Xxxx, Xxxxx, XX (the “Building”).
|
1.5.
|
Property:
See Exhibit
A.
|
1.6.
|
Lease
Term: 5 years, 3 month (“Term”),
commencing April 1, 2008 (“Commencement
Date”)
and ending June 30, 2013, subject to Section
2.3 below
(“Expiration
Date”).
|
1.7.
|
Permitted
Uses: (See Section
4.1)
_____________________________________.
|
1.8.
|
Tenant’s
Guarantor: None.
|
1.9. |
Brokers:
(See Section
23;
if none, so state): (A) Tenant’s Broker: _____________________;
and (B) Landlord’s Broker:
_____________________
|
1.10.
|
Security/Damage
Deposit: (See Section
4.4)
$25,000.00.
|
1.11.
|
Initial
Estimated Additional Rent Payable by Tenant: $2.41 per square foot
per
month
|
1.12.
|
Tenant’s
Proportionate Share: 100%
|
1.13.
|
Exhibits
to Lease: The following exhibits are attached to and made a part
of this
Lease. (If none, so state):
A
(site plan); B (Tenant Operations Inquiry Form); C (Landlord’s Work); D
(Confirmation of Commencement Date); and E (Broom Clean Condition
and
Repair Requirements)
|
2. LEASE
OF PREMISES; RENT.
2.1. Lease
of Premises for Lease Term.
Landlord hereby leases the Premises to Tenant, and Tenant hereby rents the
Premises from Landlord, for the Term and subject to the conditions of this
Lease.
2.2. Types
of Rental Payments.
Tenant
shall pay net base rent to Landlord in monthly installments, in advance, on
the
first day of each and every calendar month during the Term of this Lease (the
“Base
Rent”)
in the
amounts and for the periods
as set
forth below:
Rental
Payments
Lease
Period
|
Base Rent Per
Square Foot |
Monthly Base Rent
|
|||||
April
1, 2008 – May 31, 2008
|
$
|
0.00
|
$
|
0.00
|
|||
June
1, 2008 – May 31, 2009
|
$
|
11.13
|
$
|
10,439.94
|
|||
June
1, 2009 – May 31, 2010
|
$
|
11.58
|
$
|
10,587.54
|
|||
June
1, 2010 – May 31, 2011
|
$
|
12.04
|
$
|
11,291.84
|
|||
June
1, 2011 – May 31, 2012
|
$
|
12.52
|
$
|
11,743.51
|
|||
June
1, 2012 – June 30, 2013
|
$
|
13.02
|
$
|
12,213.25
|
Notwithstanding
the foregoing, for and in consideration of this Lease, Tenant shall not be
required to make any Base Rent payments for the following months: April,
2008; May, 2008 and January, 2009 (collectively,
the “Base Rent Abatement Months”). Tenant shall be required to make all other
payments due under the Lease during the Rent Abatement Months.
Tenant
shall also pay (a) Tenant’s Proportionate Share (as set forth in Section
1.12)
of
Operating Expenses (as hereinafter defined), and (b) any other amounts owed
by
Tenant hereunder (collectively, “Additional
Rent”).
In the
event any monthly installment of Base Rent or Additional Rent, or both, is
not
paid within 5 days of the date when due, a late charge in an amount equal to
5%
of the then delinquent installment of Base Rent and/or Additional Rent (the
“Late
Charge”)
shall
be imposed with respect to the then-delinquent Rent (as defined below) payment
for purposes of this Lease, the Late Charge, Default Interest, as defined in
Section
22.3
below,
Base Rent and Additional Rent shall collectively be referred to as “Rent.”
All
Rent shall be paid by Tenant to Landlord, c/o
First
Industrial, L.P., X.X.
Xxx
00000, Xxxxxx, XX 00000-0000, or if sent by overnight courier, Bank One National
Processing Corp., 000 Xxxxxx Xxxxxx Xxxx., 0xx
Xxxxx,
Xxxxxxxx, XX 00000, Attention: _____________., Lockbox #__________ (or such
other entity designated as Landlord’s management agent, if any, and if Landlord
so appoints such a management agent, the “Agent”),
or
pursuant to such other directions as Landlord shall designate in this Lease
or
otherwise in writing.
2.3. Covenants
Concerning Rental Payments.
Tenant
shall pay the Rent promptly when due, without notice or demand, and without
any
abatement, deduction or setoff. No payment by Tenant, or receipt or acceptance
by Agent or Landlord, of a lesser amount than the correct Rent shall be deemed
to be other than a payment on account, nor shall any endorsement or statement
on
any check or letter accompanying any payment be deemed an accord or
satisfaction, and Agent or Landlord may accept such payment without prejudice
to
its right to recover the balance due or to pursue any other remedy available
to
Landlord. If the Commencement Date occurs on a day other than the first day
of a
calendar month, the Rent due for the first calendar month of the Term shall
be
prorated on a per diem basis (based on a 360 day, 12 month year) and paid to
Landlord on the Commencement Date, and the Term will be extended to terminate
on
the last day of the calendar month in which the Expiration Date stated in
Section
1.6
occurs.
3. OPERATING
EXPENSES.
3.1. Definitional
Terms Relating to Additional Rent.
For
purposes of this Section and other relevant provisions of the
Lease:
3.1.1. Operating
Expenses.
The
term “Operating
Expenses”
shall
mean all costs and expenses paid or incurred by Landlord with respect to, or
in
connection with, the ownership, repair, restoration, maintenance and operation
of the Property. Operating Expenses may include, but are not limited to, any
or
all of the following: (i) services provided directly by employees of Landlord
or
Agent in connection with the operation, maintenance or rendition of other
services to or for the Property (including, but not limited to, the Common
Areas); (ii) to the extent not separately metered, billed, or furnished, all
charges for utilities and services furnished to either or both of the Property
and the Premises, including, without limitation, the Common Areas (as
hereinafter defined), together with any taxes on such utilities; (iii) all
market-based premiums for commercial property, casualty, general liability,
boiler, flood, earthquake, terrorism and all other types of insurance provided
by Landlord and relating to the Property, all reasonable administrative costs
incurred in connection with the procurement and implementation of such insurance
policies, and all deductibles paid by Landlord pursuant to insurance policies
required to be maintained by Landlord under this Lease; (iv) management fees
to
Landlord or Agent or other persons or management entities actually involved
in
the management and operation of the Property collected from all tenants in
the
Property; (v) any capital improvements made by, or on behalf of, Landlord to
the
Property that are either or both (a) designed to reduce Operating Expenses
and
(b) required to keep the Property in compliance with all governmental laws,
rules and regulations applicable thereto, from time to time, the cost of which
capital improvements shall be reasonably amortized by Landlord over the useful
life of the improvement, in accordance with generally accepted accounting
principles; (vi) all professional fees incurred in connection with the
operation, management and maintenance of the Property; (vii) Taxes, as
hereinafter defined in Section
3.1.2;
and
(viii) dues, fees or other costs and expenses, of any nature, due and payable
to
any association or comparable entity to which Landlord, as owner of the
Property, is a member or otherwise belongs and that governs or controls any
aspect of the ownership and operation of the Property; (ix) any real estate
taxes and common area maintenance expenses levied against, or attributable
to,
the Property under any declaration of covenants, conditions and restrictions,
reciprocal easement agreement or comparable arrangement that encumbers and
benefits the Property and other real property (e.g., a business park); and
(x)
all costs and expenses incurred to maintain, repair and replace all or any
of
the Common Areas.
3.1.2. Taxes.
The
term “Taxes,”
as
referred to in Section
3.1.1(vii)
above
shall mean (i) all governmental taxes, assessments, fees and charges of every
kind or nature (other than Landlord’s income taxes), whether general, special,
ordinary or extraordinary, due at any time or from time to time, during the
Term
and any extensions thereof, in connection with the ownership, leasing, or
operation of the Property, or of the personal property and equipment located
therein or used in connection therewith; and (ii) any reasonable expenses
incurred by Landlord in contesting such taxes or assessments and/or the assessed
value of the Property. For purposes hereof, Tenant
shall be responsible for any Taxes that are due and payable at any time or
from
time to time during the Term and for any Taxes that are assessed, become a
lien,
or accrue during any Operating Year, which obligation shall survive the
termination or expiration of this Lease.
3.1.3. Operating
Year.
The
term “Operating
Year”
shall
mean the calendar year commencing January 1st of each year (including the
calendar year within which the Commencement Date occurs) during the
Term.
3.2. Payment
of Operating Expenses.
Tenant
shall pay, as Additional Rent and in accordance with the requirements of
Section
3.3,
Tenant’s Proportionate Share of the Operating Expenses as set forth in
Section
3.3.
Additional Rent commences to accrue upon the Commencement Date. The Tenant’s
Proportionate Share of Operating Expenses payable hereunder for the Operating
Years in which the Term begins and ends shall be prorated to correspond to
that
portion of said Operating Years occurring within the Term. Tenant’s
Proportionate Share of Operating Expenses and any other sums due and payable
under this Lease shall be adjusted upon receipt of the actual bills therefor,
and the obligations of this Section 3 shall
survive the termination or expiration of the Lease.
3.3. Payment
of Additional Rent.
Landlord shall have the right to reasonably estimate the Operating Expenses
for
each Operating Year. Upon Landlord’s or Agent’s notice to Tenant of such
estimated amount, Tenant shall pay, on the first day of each month during that
Operating Year, an amount (the “Estimated
Additional Rent”)
equal
to the estimate of the Tenant’s Proportionate Share of Operating Expenses
divided by 12 (or the fractional portion of the Operating Year remaining at
the
time Landlord delivers its notice of the estimated amounts due from Tenant
for
that Operating Year). If the aggregate amount of Estimated Additional Rent
actually paid by Tenant during any Operating Year is less than Tenant’s actual
ultimate liability for Operating Expenses for that particular Operating Year,
Tenant shall pay the deficiency within 30 days of Landlord’s written demand
therefor. If the aggregate amount of Estimated Additional Rent actually paid
by
Tenant during a given Operating Year exceeds Tenant’s actual liability for such
Operating Year, the excess shall be credited against the Estimated Additional
Rent next due from Tenant during the immediately subsequent Operating Year,
except that in the event that such excess is paid by Tenant during the final
Lease Year, then upon the expiration of the Term, Landlord or Agent shall pay
Tenant the then-applicable excess promptly after determination
thereof.
3.4. Tenant
Audit Rights.
In the
event that Tenant’s Additional Rent rises by more than ten percent (10%) from
any previous year Tenant shall have the following rights: As
soon
as is reasonably practical after each Operating Year in which there is a 10%
increase, upon written request from Tenant, Landlord shall provide
Tenant
with a statement (a "Statement")
setting
forth Tenant's actual ultimate liability for its Proportionate Share of
Operating Expenses for the subject Operating Year. If Tenant disputes the amount
set forth in a given Statement, Tenant shall have the right, at Tenant's
sole
expense, to cause Landlord's books and records with respect to the particular
Operating Year
that
is the subject of that particular Statement to be audited (the "Audit")
by
a
certified
public
accountant mutually acceptable to Landlord and Tenant (the "Accountant"),
provided
Tenant (i) has not defaulted under this Lease and failed to cure such default
on
a timely basis and (ii) delivers written notice (an "Audit
Notice") to
Landlord on or prior to the date that is sixty (60) days after Landlord delivers
the Statement in question to Tenant (such 60-day period, the "Response
Period").
If
Tenant
fails to timely deliver an Audit Notice with respect to a given Statement,
then
Tenant's right to undertake an Audit with respect to that Statement and the
Operating Year to which that particular Statement relates shall automatically
and irrevocably be waived. Any Statement shall be final and binding upon
Tenant and shall, as between the parties, be conclusively deemed correct, at
the
end of the
applicable Response Period, unless prior thereto, Tenant timely delivers an
Audit Notice
with
respect to the then-applicable Statement. If Tenant timely delivers an Audit
Notice, Tenant
must commence such Audit within sixty (60) days after the Audit Notice is
delivered to
Landlord, and the Audit must be completed within thirty (30) days of the date
on
which it
is
begun. If Tenant fails, for any reason, to commence and complete the Audit
within such periods, the Statement that Tenant elected to Audit shall be deemed
final and binding upon Tenant and shall, as between the parties, be conclusively
deemed correct. The Audit shall take place at the offices of Landlord where
its
books and records are located, at a mutually convenient time during Landlord's
regular business hours. Before conducting the Audit, Tenant must pay the full
amount of Operating Expenses billed under the Statement then in question. Tenant
hereby covenants and agrees that the Accountant engaged by Tenant to conduct
the
Audit shall be compensated on an hourly basis and shall not be compensated
based
upon a percentage of overcharges it discovers. If an Audit is conducted in
a
timely manner, such Audit shall be deemed final and binding upon Landlord and
Tenant and shall, as between the parties, be conclusively deemed correct. If
the
results of the Audit reveal that the Tenant's ultimate liability for Operating
Expenses does not equal the aggregate amount of Estimated Additional Rent
actually paid by Tenant to Landlord during the Operating Year that is the
subject of the Audit, the appropriate adjustment shall be made between Landlord
and Tenant, and any payment required to be made by Landlord or Tenant to the
other shall be made within thirty (30) days after the Accountant's
determination. In no
event
shall this Lease be terminable nor shall Landlord be liable for damages based
upon
any
disagreement regarding an adjustment of Operating Expenses. Tenant agrees that
the results of any Audit shall be kept strictly confidential by Tenant and
shall
not be disclosed to any other person or entity The foregoing provisions
concerning a potential Audit are personal to Tenant and shall not run with
this
Lease or for the benefit of any assignee or sublessee (whether permitted or
not).
4. USE
OF PREMISES AND COMMON AREAS; SECURITY DEPOSIT.
4.1. Use
of Premises and Property.
The
Premises shall be used by the Tenant for the purpose(s) set forth in
Section
1.7
above
and for no other purpose whatsoever. Tenant shall not, at any time, use or
occupy, or suffer or permit anyone to use or occupy, the Premises, or do or
permit anything to be done in the Premises or the Property, in any manner that
may (a) violate any Certificate of Occupancy for the Premises or the Property;
(b) cause, or be liable to cause, injury to, or in any way impair the value
or
proper utilization of, all or any portion of the Property (including, but not
limited to, the structural elements of the Property) or any equipment,
facilities or systems therein; (c) constitute a violation of the laws and
requirements of any public authority or the requirements of insurance bodies
or
the rules and regulations of the Property, including any covenant, condition
or
restriction affecting the Property; (d) exceed the load bearing capacity of
the
floor of the Premises; (e) impair or tend to impair the character, reputation
or
appearance of the Property; or (f) unreasonably annoy, inconvenience or disrupt
the operations or tenancies of other tenants or users of the
Property.
On or
prior to the date hereof, Tenant has completed and delivered for the benefit
of
Landlord a “Tenant Operations Inquiry Form” in the form attached hereto as
Exhibit
B
describing the nature of Tenant’s proposed business operations at the Premises,
which form is intended to, and shall be, relied upon by Landlord. From time
to
time during the Term (but no more often than once in any twelve month period
unless Tenant is in default hereunder or unless Tenant assigns this Lease or
subleases all or any portion of the Premises, whether or not in accordance
with
Section 8),
Tenant
shall provide an updated and current Tenant Operations Inquiry Form upon
Landlord’s request.
4.2. Use
of Common Areas.
As used
herein, “Common
Areas”
shall
mean all areas within the Property that are available for the common use of
tenants of the Property and that are not leased or held for the exclusive use
of
Tenant or other tenants or licensees, including, but not limited to, parking
areas, driveways, sidewalks, loading areas, access roads, corridors, landscaping
and planted areas. Tenant shall have the nonexclusive right to use the Common
Areas for the purposes intended, subject to such reasonable rules and
regulations as Landlord may uniformly establish from time to time. Tenant shall
not interfere with the rights of any or all of Landlord, other tenants or
licensees, or any other person entitled to use the Common Areas. Without
limitation of the foregoing, Tenant shall not park or store any vehicles or
trailers on, or conduct truck loading and unloading activities in, the Common
Areas in a manner that unreasonably disturbs, disrupts or prevents the use
of
the Common Areas by Landlord, other tenants or licensees or other persons
entitled to use the Common Areas. Landlord, from time to time, may change any
or
all of the size, location, nature and use of any of the Common Areas although
such changes may result in inconvenience to Tenant, so long as such changes
do
not materially and adversely affect Tenant’s use of the Premises. In addition to
the foregoing, Landlord may, at any time, close or suspend access to any Common
Areas to perform any acts in the Common Areas as, in Landlord’s reasonable
judgment, are desirable to improve or maintain either or both of the Premises
and the Property, or are required in order to satisfy Landlord’s obligations
under this Lease; provided, however, that Landlord shall use reasonable efforts
to limit any disruption of Tenant’s use and operation of the Premises in
connection therewith.
Notwithstanding anything contained in this Lease to the contrary, if at any
time, Landlord determines, in its sole discretion, that the parking areas at
the
Property are or have become overburdened, Landlord may allocate parking on
a
proportionate basis or assign parking spaces among all tenants at the
Property.
4.3. Signage.
Tenant
shall not affix any sign of any size or character to any portion of the
Property, without prior written approval of Landlord, which approval shall
not
be unreasonably withheld or delayed. Tenant shall remove all signs of Tenant
upon the expiration or earlier termination of this Lease and immediately repair
any damage to either or both of the Property and the Premises caused by, or
resulting from, such removal.
4.4. Security/Damage
Deposit.
Simultaneously with the execution and delivery of this Lease, Tenant shall
deposit with Landlord or Agent the sum set forth in Section
1.10
above,
in cash (the “Security”),
representing security for the performance by Tenant of the covenants and
obligations hereunder. The Security shall be held by Landlord or Agent, without
interest, in favor of Tenant; provided, however, that no trust relationship
shall be deemed created thereby; the Security may be commingled with other
assets of Landlord; and Landlord shall not be required to pay any interest
on
the Security. If Tenant defaults in the performance of any of its covenants
hereunder, Landlord or Agent may, without notice to Tenant, apply all or any
part of the Security to the cure of such default or the payment of any sums
then
due from Tenant under this Lease (including, but not limited to, amounts due
under Section
22.2 of
this
Lease as a consequence of termination of this Lease or Tenant’s right to
possession), in addition to any other remedies available to Landlord. In the
event the Security is so applied, Tenant shall, upon demand, immediately deposit
with Landlord or Agent a sum equal to the amount so used. If Tenant fully and
faithfully complies with all the covenants and obligations hereunder, the
Security (or any balance thereof) shall be returned to Tenant within 30 days
after the last to occur of (i) the date the Term expires or terminates or (ii)
delivery to Landlord of possession of the Premises. Landlord may deliver the
Security to any lender with a mortgage lien encumbering the Property or to
any
Successor Landlord (defined below), and thereupon Landlord and Agent shall
be
discharged from any further liability with respect to the Security.
5. CONDITION
AND DELIVERY OF PREMISES.
5.1. Condition
of Premises.
Tenant
agrees that Tenant is familiar with the condition of both the Premises and
the
Property, and Tenant hereby accepts the foregoing on an “AS-IS,” “WHERE-IS”
basis, except as is otherwise expressly and specifically described on
Exhibit
C
attached
hereto and incorporated herein by this reference, it being understood that,
if
Landlord has agreed to perform any tenant improvements in or to the Premises
in
consideration of Tenant’s entry into this Lease (collectively, “Landlord’s
Work”),
all
of Landlord’s Work shall be described on Exhibit
C.
Tenant
acknowledges that neither Landlord nor Agent, nor any representative of
Landlord, has made any representation as to the condition of the foregoing
or
the suitability of the foregoing for Tenant’s intended use. Tenant represents
and warrants that Tenant has made its own inspection of the foregoing. Neither
Landlord nor Agent shall be obligated to make any repairs, replacements or
improvements (whether structural or otherwise) of any kind or nature to the
foregoing in connection with, or in consideration of, this Lease, except as
expressly and specifically set forth in this Lease, including, but not limited
to, Exhibit
C.
5.2. Delay
in Commencement.
Landlord shall not be liable to Tenant if Landlord does not deliver possession
of the Premises to Tenant on the Commencement Date. The obligations of Tenant
under the Lease shall not be affected thereby, except that the Commencement
Date
shall be delayed until Landlord delivers possession of the Premises to Tenant,
and the Lease Term shall be extended by a period equal to the number of days
of
delay in delivery of possession of the Premises to Tenant, plus the number
of
days necessary to end the Lease Term on the last day of a month.
5.3. Confirmation
of Commencement Date.
Upon
Landlord’s delivery of possession, and as a condition precedent to such
delivery, of the Premises to Tenant, and Tenant shall deliver to Landlord a
Confirmation of Commencement Date in substantially the form attached hereto
as
Exhibit
D.
6. SUBORDINATION;
ESTOPPEL CERTIFICATES; ATTORNMENT.
6.1. Subordination
and Attornment.
This
Lease is and shall be subject and subordinate at all times to (a) all ground
leases or underlying leases that may now exist or hereafter be executed
affecting either or both of the Premises and the Property and (b) any mortgage
or deed of trust that may now exist or hereafter be placed upon, and encumber,
any or all of (x) the Property; (y) any ground leases or underlying leases
for
the benefit of the Property; and (z) all or any portion of Landlord’s interest
or estate in any of said items. Tenant shall execute and deliver, within ten
(10) days of Landlord’s request, and in the form reasonably requested by
Landlord (or its lender), any documents evidencing the subordination of this
Lease.
Tenant
hereby covenants and agrees that Tenant shall attorn to any successor to
Landlord.
6.2. Estoppel
Certificate.
Tenant
agrees, from time to time and within 10 days after request by Landlord, to
deliver to Landlord, or Landlord’s designee, an estoppel certificate stating
such matters pertaining to this Lease as may be reasonably requested by
Landlord. Failure by Tenant to timely execute and deliver such certificate
shall
constitute a Default, as defined below (without any obligation to provide any
notice thereof or any opportunity to cure such failure to timely
perform).
6.3. Transfer
by Landlord.
In the
event of a sale or conveyance by Landlord of the Property, the same shall
operate to release Landlord from any future liability for any of the covenants
or conditions, express or implied, herein contained in favor of Tenant, and
in
such event Tenant agrees to look solely to Landlord’s successor in interest
(“Successor
Landlord”)
with
respect thereto and agrees to attorn to such successor.
7. QUIET
ENJOYMENT.
Subject
to the provisions of this Lease, so long as Tenant pays all of the Rent and
performs all of its other obligations hereunder, Tenant shall not be disturbed
in its possession of the Premises by Landlord, Agent or any other person
lawfully claiming through or under Landlord; provided, however, in addition
to
Landlord’s rights under Section
16
and
elsewhere in this Lease, Landlord and Landlord’s agents, employees, contractors
and representatives shall be provided reasonable access to the Premises such
that Landlord and Landlord’s agents, employees, contractors and representatives
may perform the General Maintenance Services (as hereinafter defined) without
undue interruption, delay or hindrance. This covenant shall be construed as
a
covenant running with the Property and is not a personal covenant of Landlord.
Tenant shall not unreasonably interrupt, delay, prevent or hinder the
performance of the General Maintenance Services by or on behalf of Landlord.
Notwithstanding the foregoing, however, Tenant acknowledges and agrees that
Landlord shall have the unfettered and unilateral right to use portions of
the
Common Areas (inclusive of the roof of the Building) for such purposes and
uses
as Landlord may desire; provided, however, that in all events and under all
circumstances, Landlord’s use of any portion of the Common Areas shall not
interfere, in any material respect, with any or all of (a) Tenant’s rights to
occupy and use the Common Areas (in the manner and for the purposes contemplated
hereunder); (b) Tenant’s right to utilize the vehicular parking areas located on
the Common Areas; and (c) Tenant’s right of access, ingress and egress to and
from the Common Areas.
8. ASSIGNMENT
AND SUBLETTING. Tenant
shall not (a) assign (whether directly or indirectly), in whole or in part,
this
Lease, or (b) allow this Lease to be assigned, in whole or in part, by operation
of law or otherwise, including, without limitation, by transfer of a controlling
interest (i.e.
greater
than a 25% interest) of stock, membership interests or partnership interests,
or
by merger or dissolution, which transfer of a controlling interest, merger
or
dissolution shall be deemed an assignment for purposes of this Lease, or (c)
mortgage or pledge the Lease, or (d) sublet the Premises, in whole or in part,
without (in the case of any or all of (a) through (d) above) the prior written
consent of Landlord, which consent shall not be unreasonably withheld or
delayed. Tenant may, however, assign this Lease or sublease a portion of the
Premises to a wholly-owned subsidiary, provided that Tenant advises Landlord,
in
writing, in advance, and otherwise complies with the succeeding provisions
of
this Section
8.
In no
event shall any assignment or sublease ever release Tenant or any guarantor
from
any obligation or liability hereunder; and in the case of any assignment,
Landlord shall retain all rights with respect to the Security. Any purported
assignment, mortgage, transfer, pledge or sublease made without the prior
written consent of Landlord shall be absolutely null and void. No assignment
of
this Lease shall be effective and valid unless and until the assignee executes
and delivers to Landlord any and all documentation reasonably required by
Landlord in order to evidence assignee’s assumption of all obligations of Tenant
hereunder. Regardless of whether or not an assignee or sublessee executes and
delivers any documentation to Landlord pursuant to the preceding sentence,
any
assignee or sublessee shall be deemed to have automatically attorned to Landlord
in the event of any termination of this Lease. If
this
Lease is assigned, or if the Premises (or any part thereof) are sublet or used
or occupied by anyone other than Tenant, whether or not in violation of this
Lease, Landlord or Agent may (without prejudice to, or waiver of its rights),
collect Rent from the assignee, subtenant or occupant. In the event of an
assignment of this Lease and the payment of consideration from the assignee
to
the Tenant in connection therewith, 50% of such consideration shall be paid
to
Landlord. With respect to the allocable portion of the Premises sublet, in
the
event that the total rent and any other considerations received under any
sublease by Tenant is greater than (on a pro rata and proportionate basis)
the
total Rent required to be paid, from time to time, under this Lease, Tenant
shall pay to Landlord fifty percent (50%) of such excess as received from any
subtenant and such amount shall be deemed a component of the Additional
Rent.
9. COMPLIANCE
WITH LAWS.
9.1. Compliance
with Laws.
Tenant
shall, at its sole expense (regardless of the cost thereof), comply with all
local, state and federal laws, rules, regulations and requirements now or
hereafter in force and all judicial and administrative decisions in connection
with the enforcement thereof (collectively, “Laws”),
pertaining to either or both of the Premises and Tenant’s use and occupancy
thereof, and including, but not limited to, all Laws concerning or addressing
matters of an environmental nature. If any license or permit is required for
the
conduct of Tenant’s business in the Premises, Tenant, at its expense, shall
procure such license prior to the Commencement Date, and shall maintain such
license or permit in good standing throughout the Term. Tenant shall give prompt
notice to Landlord of any written notice it receives of the alleged violation
of
any Law or requirement of any governmental or administrative authority with
respect to either or both of the Premises and the use or occupation thereof.
9.2. Hazardous
Materials.
If, at
any time or from time to time during the Term (or any extension thereof), any
Hazardous Material (defined below) is generated, transported, stored, used,
treated or disposed of at, to, from, on or in either or both of the Premises
and
the Property by, or as a result of any act or omission of, any or all of Tenant
and any or all of Tenant’s Parties (defined below): (i) Tenant shall, at its own
cost, at all times comply (and cause all others to comply) with all Laws
relating to Hazardous Materials, and Tenant shall further, at its own cost,
obtain and maintain in full force and effect at all times all permits and other
approvals required in connection therewith; (ii) Tenant shall promptly provide
Landlord or Agent with complete copies of all communications, permits or
agreements with, from or issued by any governmental authority or agency
(federal, state or local) or any private entity relating in any way to the
presence, release, threat of release, or placement of Hazardous Materials on
or
in the Premises or any portion of the Property, or the generation,
transportation, storage, use, treatment, or disposal at, on, in or from the
Premises, of any Hazardous Materials; (iii) Absent reasonable evidence that
Tenant is not in compliance with the applicable permits or Laws, Landlord,
Agent
and their respective agents and employees shall have the right, not more than
once per Lease Year, to either or both (x) enter the Premises and (y) conduct
appropriate tests, at Tenant’s expense, for the purposes of ascertaining
Tenant’s compliance with all applicable Laws or permits relating in any way to
the generation, transport, storage, use, treatment, disposal or presence of
Hazardous Materials on, at, in or from all or any portion of either or both
of
the Premises and the Property; and (iv) Absent reasonable evidence that Tenant
is not in compliance with the applicable permits or Laws, upon written request
by Landlord or Agent not more than once per Lease Year, Tenant shall cause
to be
performed, and shall provide Landlord with the results of, reasonably
appropriate tests of air, water or soil to demonstrate that Tenant complies
with
all applicable Laws or permits relating in any way to the generation, transport,
storage, use, treatment, disposal or presence of Hazardous Materials on, at,
in
or from all or any portion of either or both of the Premises and the Property.
This Section
9
does not
authorize the generation, transportation, storage, use, treatment or disposal
of
any Hazardous Materials at, to, from, on or in the Premises in contravention
of
this Section
9.
Tenant
covenants to investigate, clean up and otherwise remediate, at Tenant’s sole
expense, any release of Hazardous Materials caused, contributed to, or created
by any or all of (A) Tenant and (B) any or all of Tenant’s officers, directors,
members, managers, partners, invitees, agents, employees, contractors or
representatives (“Tenant
Parties”)
during
the Term. Such investigation and remediation shall be performed only after
Tenant has obtained Landlord’s prior written consent; provided, however, that
Tenant shall be entitled to respond (in a reasonably appropriate manner)
immediately to an emergency without first obtaining such consent. All
remediation shall be performed in strict compliance with Laws and to the
reasonable satisfaction of Landlord. Tenant shall not enter into any settlement
agreement, consent decree or other compromise with respect to any claims
relating to any Hazardous Materials in any way connected to the Premises without
first obtaining Landlord’s written consent (which consent may be given or
withheld in Landlord’s sole, but reasonable, discretion) and affording Landlord
the reasonable opportunity to participate in any such proceedings. As used
herein, the term, “Hazardous
Materials,”
shall
mean any waste, material or substance (whether in the form of liquids, solids
or
gases, and whether or not airborne) that is or may be deemed to be or include
a
pesticide, petroleum, asbestos, polychlorinated biphenyl, radioactive material,
urea formaldehyde or any other pollutant or contaminant that is or may be deemed
to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful
or
injurious, or that presents a risk to public health or to the environment,
and
that is or becomes regulated by any Law. The undertakings, covenants and
obligations imposed on Tenant under this Section
9
shall
survive the termination or expiration of this Lease.
10. INSURANCE.
10.1. Insurance
to be Maintained by Landlord.
Landlord shall maintain: (a) a commercial property insurance policy covering
the
Property (at its full replacement cost), but excluding Tenant’s personal
property; (b) commercial general public liability insurance covering Landlord
for claims arising out of liability for bodily injury, death, personal injury,
advertising injury and property damage occurring in and about the Property
and
otherwise resulting from any acts and operations of Landlord, its agents and
employees; (c) rent loss insurance;
and (d)
any other insurance coverage deemed appropriate by Landlord or required by
Landlord’s lender. All of the coverages described in (a) through (d) shall be
determined from time to time by Landlord, in its sole discretion.
All
insurance maintained by Landlord shall be in addition to and not in lieu of
the
insurance required to be maintained by the Tenant.
10.2. Insurance
to be Maintained by Tenant.
Tenant
shall purchase, at its own expense, and keep in force at all times during this
Lease the policies of insurance set forth below (collectively,
“Tenant’s
Policies”).
All
Tenant’s Policies shall (a) be issued by an insurance company with a Best’s
rating of A or better and otherwise reasonably acceptable to Landlord and shall
be licensed to do business in the state in which the Property is located, unless
agreed to otherwise by Landlord; (b) provide that said insurance shall contain
a
standard 30 day cancellation policy; (c) provide for deductible amounts that
are
reasonably acceptable to Landlord (and its lender, if applicable) and (d)
otherwise be in such form, and include such coverages, as Landlord may
reasonably require. The
Tenant’s Policies described in (i) and (ii) below shall (1)
provide
coverage on an occurrence basis; (2) name Landlord (and its lender, if
applicable) as an additional insured; (3) provide coverage, to the extent
insurable, for the indemnity obligations of Tenant under this Lease;
(4)
contain
a separation of insured parties provision; (5)
be
primary with respect to vicarious liability imputed to the additional insured(s)
for injuries or damages caused by Tenant; and (6)
provide
coverage with no exclusion for a pollution incident arising from a hostile
fire. All
Tenant’s Policies (or, at Landlord’s option, Certificates of Insurance and
applicable endorsements, including, without limitation, an
"Additional Insured-Managers or Landlords of Premises" endorsement)
shall
be delivered to Landlord prior to the Commencement Date and renewals thereof
shall be delivered to Landlord’s notice addresses at least 30 days prior to the
applicable expiration date of each Tenant’s Policy. In the event that Tenant
fails, at any time or from time to time, to comply with the requirements of
the
preceding sentence, Landlord may (x) order such insurance and charge the cost
thereof to Tenant, which amount shall be payable by Tenant to Landlord upon
demand, as Additional Rent or (y) impose on Tenant, as Additional Rent, a
monthly delinquency fee, for each month during which Tenant fails to comply
with
the foregoing obligation, in an amount equal to five percent (5%) of the Base
Rent then in effect. Tenant shall give prompt notice to Landlord and Agent
of
any bodily injury, death, personal injury, advertising injury or property damage
occurring in and about the Property.
10.3. Tenant
shall purchase and maintain, throughout the Term, a Tenant’s Policy(ies) of (i)
commercial general or excess liability insurance, including personal injury
and
property damage, in the amount of not less than $2,000,000.00 per occurrence,
and $5,000,000.00 annual general aggregate, per location; (ii) comprehensive
automobile liability insurance covering Tenant, against any personal injuries
or
deaths of persons and property damage based upon or arising out of the
ownership, use, occupancy or maintenance of a motor vehicle at the Premises
and
all areas appurtenant thereto in the amount of not less than $1,000,000,
combined single limit;
(iii)
commercial property insurance covering Tenant’s personal
property
(at its
full replacement cost);
and
(iv)
workers’ compensation insurance per the applicable state statutes covering all
employees of Tenant;
and if
Tenant handles, stores or utilizes Hazardous Materials in its business
operations, (v) pollution legal liability insurance.
10.4. Waiver
of Subrogation.
Notwithstanding anything to the contrary in this Lease, Landlord and Tenant
mutually waive their respective rights of recovery against each other and each
other’s officers, directors, constituent partners, members, agents and
employees, and Tenant further waives such rights against (a) each lessor under
any ground or underlying lease encumbering the Property and (b) each lender
under any mortgage or deed of trust or other lien encumbering the Property
(or
any portion thereof or interest therein), to the extent any loss is insured
against or required to be insured against under this Lease, including, but
not
limited to, losses, deductibles or self-insured retentions covered by Landlord’s
or Tenant’s commercial property, general liability, or automobile liability
policies described above, This provision is intended to waive, fully and for
the
benefit of each party to this Lease, any and all rights and claims that might
give rise to a right of subrogation by any insurance carrier. Each party shall
cause its respective insurance policy(ies) to be endorsed to evidence compliance
with such waiver.
11. ALTERATIONS.
Tenant
may, from time to time, at its expense, make alterations or improvements in
and
to the Premises (hereinafter collectively referred to as “Alterations”),
provided that either (x) Tenant first obtains the written consent of Landlord
or
(y) the aggregate costs that Tenant shall incur in order to perform the
then-applicable Alterations, together with those costs that Tenant incurred
to
perform any Alterations during the preceding twelve (12) month period do not
exceed $10,000.00. Regardless of whether or not Landlord’s consent to an
Alteration(s) is required, all
of
the following shall apply with respect to all Alterations: (a) the Alterations
are non-structural and the structural integrity of the Property shall not be
affected; (b) the Alterations are to the interior of the Premises; (c) the
proper functioning of the mechanical, electrical, heating, ventilating,
air-conditioning (“HVAC”),
sanitary and other service systems of the Property shall not be affected and
the
usage of such systems by Tenant shall not be increased; and (d) Tenant shall
have appropriate insurance coverage, reasonably satisfactory to Landlord,
regarding the performance and installation of the Alterations. Additionally,
before proceeding with any Alterations, Tenant shall (i) at Tenant’s expense,
obtain all necessary governmental permits and certificates for the commencement
and prosecution of Alterations; (ii) if Landlord’s consent is required for the
planned Alteration, submit to Landlord, for its written approval, working
drawings, plans and specifications and all permits for the work to be done
and
Tenant shall not proceed with such Alterations until it has received Landlord’s
approval (if required); and (iii) cause those contractors, materialmen and
suppliers engaged to perform the Alterations to deliver to Landlord certificates
of insurance (in a form reasonably acceptable to Landlord) evidencing policies
of commercial general liability insurance (providing the same coverages as
required in Section
10.2
above)
and workers’ compensation insurance. Such insurance policies shall satisfy the
obligations imposed under Section
10.2.
Tenant
shall cause the Alterations to be performed in compliance with all applicable
permits, Laws and requirements of public authorities, and with Landlord’s
reasonable rules and regulations or any other restrictions that Landlord may
impose on the Alterations. Tenant shall cause the Alterations to be diligently
performed in a good and workmanlike manner, using new materials and equipment
at
least equal in quality and class to the standards for the Property established
by Landlord. With respect to any and all Alterations for which Landlord’s
consent is required, Tenant shall provide Landlord with “as built” plans, copies
of all construction contracts, governmental permits and certificates and proof
of payment for all labor and materials, including, without limitation, copies
of
paid invoices and final lien waivers.
If
Landlord’s consent to any Alterations is required, and Landlord provides that
consent, then at the time Landlord so consents, Landlord shall also advise
Tenant whether or not Landlord shall require that Tenant remove such Alterations
at the expiration or termination of this Lease. If Landlord requires Tenant
to
remove the Alterations, then, during the remainder of the Term, Tenant shall
be
responsible for the maintenance of appropriate commercial property insurance
(pursuant to Section
10.2)
therefor; however, if Landlord shall not require that Tenant remove the
Alterations, such Alterations shall constitute Landlord’s Property and Landlord
shall be responsible for the insurance thereof, pursuant to Section
10.1.
Notwithstanding
the foregoing, Tenant, as part of its fit out of the Premises, Tenant shall
be
permitted to: (i) install additional return ducting and/or re-route existing
air
flows to minimize cross-contamination between labs and to improve air return;
(ii) add temperature controls to allow for separate temperature zones; (iii)
install a new control system; and/or (iv) the install conventional HVAC systems
for specific areas requiring autonomous control.
12. LANDLORD’S
AND TENANT’S PROPERTY.
All
fixtures, machinery, equipment, improvements and appurtenances attached to,
or
built into, the Premises by Landlord at the commencement of, or during, the
Term
shall remain a part of the Premises; shall be deemed the property of Landlord
(the “Landlord’s
Property”),
without compensation or credit to Tenant; and shall not be removed by Tenant
at
the Expiration Date unless Landlord requires their removal (including, but
not
limited to, Alterations pursuant to Section
11).
Further, any personal property, equipment or machinery (with the exception
of
Building mechanicals such as HVAC) installed by the Tenant in the Premises,
at
Tenant’s cost, for purposes of the Permitted Use on or after the Commencement
Date, movable or otherwise shall constitute Tenant’s property and shall be
removed by Tenant. Notwithstanding anything to the contrary otherwise contained
in the Lease, in no event shall Tenant remove any of the following materials
or
equipment without Landlord’s prior written consent (which consent may be given
or withheld in Landlord’s sole discretion): any power wiring or power panels,
lighting or lighting fixtures, wall or window coverings, carpets or other floor
coverings, heaters, air conditioners or any other HVAC equipment, fencing or
security gates, or other similar building operating equipment and decorations.
At
or
before the Expiration Date, or the date of any earlier termination, Tenant,
at
its expense, shall remove from the Premises all of Tenant’s personal property
and any Alterations that Landlord requires be removed pursuant to Section
11,
and
Tenant shall repair (to Landlord’s reasonable satisfaction) any damage to the
Premises or the Property resulting from either or both such installation and
removal. Any other items of Tenant’s personal property that remain in the
Premises after the Expiration Date, or following an earlier termination date,
may, at the option of Landlord, be deemed to have been abandoned, and in such
case, such items may be retained by Landlord as its property or be disposed
of
by Landlord, in Landlord’s sole and absolute discretion and without
accountability, at Tenant’s expense. Notwithstanding the foregoing, if Tenant is
in default under the terms of this Lease, Tenant may remove Tenant’s personal
property from the Premises only upon the express written direction of
Landlord.
13. REPAIRS
AND MAINTENANCE.
13.1. Tenant
Repairs and Maintenance.
13.1.1. Tenant
Responsibilities.
Except
for events of damage, destruction or casualty to the Premises or Property (which
are addressed in Section
18),
throughout the Term, Tenant shall, at its sole cost and expense: (i) both (x)
maintain and preserve, in the same condition as exists on the Commencement
Date,
subject to normal and customary wear and tear (the “Same
Condition”),
and
(y) perform any and all repairs and replacements required in order to so
maintain and preserve, in the Same Condition, the Premises and the fixtures
and
appurtenances therein (including, but not limited to, the Premises’ plumbing and
HVAC systems, all doors, overhead or otherwise, glass and levelers located
in
the Premises or otherwise available in the Property for Tenant’s sole use; and
excluding, however, only those specific components of the Premises for which
Landlord is expressly responsible under Section
13.2);
and
(ii) except to the extent Landlord elects to repair and maintain the HVAC
systems as part of General Maintenance Services, maintain, in full force and
effect, a preventative maintenance and service contract with a reputable service
provider for maintenance of the HVAC systems of the Premises (the “HVAC
Maintenance Contract”).
In
addition to Tenant’s obligations under (i) and (ii) above, Tenant shall also be
responsible for all costs and expenses incurred to perform any and all repairs
and replacements (whether structural or non-structural; interior or exterior;
and ordinary or extraordinary), in and to the Premises and the Property and
the
facilities and systems thereof, if and to the extent that the need for such
repairs or replacements arises directly or indirectly from any act, omission,
misuse, or neglect of any or all of Tenant, any of its subtenants, Tenant’s
Parties, or others entering into, or utilizing, all or any portion of the
Premises for any reason or purpose whatsoever, including, but not limited to
(a)
the performance or existence of any Alterations, (b) the installation, use
or
operation of Tenant’s personal property in the Premises; and (c) the moving of
Tenant’s personal property in or out of the Property (collectively,
“Tenant-Related
Repairs”).
All
such repairs or replacements required under this Section
13.1.1
shall be
subject to the supervision and control of Landlord, and all repairs and
replacements shall be made with materials of equal or better quality than the
items being repaired or replaced.
13.1.2. General
Maintenance Services.
Notwithstanding any of the foregoing, however, from time to time during the
Term, Landlord may elect, in its sole discretion and by delivery of written
notice to Tenant, to perform on behalf of Tenant, all or some portion of the
repairs, maintenance, restoration and replacement in and to the Premises
required to be performed by Tenant under this Lease (any such repairs,
maintenance, restoration and/or replacement activities that Landlord elects
to
perform on behalf of Tenant are herein collectively referred to as “General
Maintenance Services”).
Tenant shall reimburse Landlord for the cost or value of all General Maintenance
Services provided by Landlord as Additional Rent, simultaneously with the
payment of Operating Expenses as part of Estimated Additional Rent (on a monthly
estimated basis subject to annual reconciliation, as described in Section
3.3
above).
Unless and until Landlord affirmatively elects to provide General Maintenance
Services, nothing contained herein shall be construed to obligate Landlord
to
perform any General Maintenance Services or, except as otherwise expressly
provided in Section
13.2,
to
repair, maintain, restore or replace any portion of the Premises. Landlord
may
from time to time, in its sole discretion, (x) reduce or expand the scope of
the
General Maintenance Services that Landlord has elected to provide or (y) revoke
its election to provide any or all of the General Maintenance Services, in
either event, upon delivery of not less than thirty (30) days’ prior written
notice to Tenant.
13.1.3. HVAC
Maintenance Contract.
The
terms and provisions of any such HVAC Maintenance Contract shall require that
the service provider maintain the Premises’ HVAC system in accordance with the
manufacturer’s recommendations and otherwise in accordance with normal,
customary and reasonable practices in the geographic area in which the Premises
is located and for HVAC systems comparable to the Premises’ HVAC system. If
Landlord does not elect to repair and maintain the HVAC systems as part of
General Maintenance Services, or revokes such election at any time after having
made such election, then, within 30 days following either (a) the Commencement
Date or (b) the date on which Landlord advises Tenant that Landlord will no
longer provide General Maintenance Services for the HVAC system, whichever
date
is applicable, Tenant shall procure and deliver to Landlord the HVAC Maintenance
Contract. Thereafter, Tenant shall provide to Landlord a copy of renewals or
replacements of such HVAC Maintenance Contract no later than 30 days prior
to
the then-applicable expiry date of the existing HVAC Maintenance Contract.
If
Tenant fails to timely deliver to Landlord the HVAC Maintenance Contract (or
any
applicable renewal or replacement thereof), then Landlord shall have the right
to contract directly for the periodic maintenance of the HVAC systems in the
Premises and to charge the cost thereof back to Tenant as Additional
Rent.
13.2. Landlord
Repairs.
Notwithstanding anything to the contrary stated herein, Landlord shall repair,
replace and restore the (a) foundation, exterior and interior load-bearing
walls, roof structure and roof covering of the Property and (b) the Common
Areas; provided, however, that in the case of both (a) and (b): (i) all costs
and expenses so incurred by Landlord to repair, replace and restore the above
items shall constitute Operating Expenses; provided, however, that with respect
to any costs incurred in the replacement context, those costs shall not
constitute an Operating Expense except to the extent that such costs so qualify
under Section
3.1.1(v);
and
(ii) notwithstanding (i) above, in the event that any such repair, replacement
or restoration is a Tenant-Related Repair, then Tenant shall be required to
reimburse Landlord for all costs and expenses that Landlord incurs in order
to
perform such Tenant-Related Repair, and such reimbursement shall be paid, in
full, within 10 days after Landlord’s delivery of demand therefor.
14. UTILITIES.
Tenant
shall purchase all utility services and shall provide for scavenger, cleaning
and extermination services. As provided in Section
3.1.1.
above,
utility charges may be included within Operating Expenses; nevertheless, at
Landlord’s election or with Landlord’s consent, (a) Tenant may pay the utility
charges for its Premises directly to the utility or municipality providing
such
service, and in that event all charges shall be paid by Tenant before they
become delinquent; and (b) Landlord may directly xxxx Tenant for its
Proportionate Share of utility expenses when and as such expenses are incurred.
Tenant shall be solely responsible for the repair and maintenance of any meters
necessary in connection with such services. Tenant’s use of electrical energy in
the Premises shall not, at any time, exceed the capacity of either or both
of
(x) any of the electrical conductors and equipment in or otherwise servicing
the
Premises; and (y) the HVAC systems of either or both of the Premises and the
Property.
15. INVOLUNTARY
CESSATION OF SERVICES.
Landlord reserves the right, without any liability to Tenant and without
affecting Tenant’s covenants and obligations hereunder, to stop service of any
or all of the HVAC, electric, sanitary, elevator (if any), and other systems
serving the Premises, or to stop any other services required by Landlord under
this Lease, whenever and for so long as may be necessary by reason of (i)
accidents, emergencies, strikes, or the making of repairs or changes which
Landlord or Agent, in good faith, deems necessary or (ii) any other cause beyond
Landlord’s reasonable control. Further, it is also understood and agreed that
Landlord or Agent shall have no liability or responsibility for a cessation
of
services to the Premises or to the Property that occurs as a result of causes
beyond Landlord’s or Agent’s reasonable control. No such interruption of service
shall be deemed an eviction or disturbance of Tenant’s use and possession of the
Premises or any part thereof, or render Landlord or Agent liable to Tenant
for
damages, or relieve Tenant from performance of Tenant’s obligations under this
Lease, including, but not limited to, the obligation to pay Rent; provided,
however, that if any interruption of services persists for a period in excess
of
five (5) consecutive business days Tenant shall, as Tenant’s sole remedy, be
entitled to a proportionate abatement of Rent to the extent, if any, of any
actual loss of use of the Premises by Tenant.
16. LANDLORD’S
RIGHTS.
Landlord, Agent and their respective agents, employees and representatives
shall
have the right to enter and/or pass through the Premises at any time or times
upon reasonable prior notice (except in the event of emergency): (a) to examine
and inspect the Premises and to show them to actual and prospective lenders,
prospective purchasers or mortgagees of the Property or providers of capital
to
Landlord and its affiliates; and in connection with the foregoing, to install
a
sign at or on the Property to advertise the Property for lease or sale; (b)
to
make such repairs, alterations, additions and improvements in or to all or
any
portion of either or both of the Premises and the Property, or the Property’s
facilities and equipment as Landlord is required or desires to make. During
the
period of nine (9) months prior to the Expiration Date (or at any time, if
Tenant has vacated or abandoned the Premises or is otherwise in default under
this Lease), Landlord and its agents may exhibit the Premises to prospective
tenants. Additionally, Landlord and Agent shall have the following rights with
respect to the Premises, exercisable without notice to Tenant, without liability
to Tenant, 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: (i) to have pass keys, access cards, or both, to the
Premises; and (ii) to decorate, remodel, repair, alter or otherwise prepare
the
Premises for reoccupancy at any time after Tenant vacates or abandons the
Premises for more than 30 consecutive days or without notice to Landlord of
Tenant’s intention to reoccupy the Premises.
17. NON-LIABILITY
AND INDEMNIFICATION.
17.1. Non-Liability.
Except
with respect to Landlord’s indemnity under Section
17.3,
none
of
Landlord, Agent, any other managing agent, or their respective affiliates,
owners, partners, directors, officers, agents and employees shall be liable
to
Tenant for any loss, injury, or damage, to Tenant or to any other person, or
to
its or their property, irrespective of the cause of such injury, damage or
loss.
Further, none of Landlord, Agent, any other managing agent, or their respective
affiliates, owners, partners, directors, officers, agents and employees shall be
liable to Tenant (a) for any damage caused by other tenants or persons in,
upon
or about the Property, or caused by operations in construction of any public
or
quasi-public work, except as otherwise expressly provided in Section
17.3;
(b)
with respect to matters for which Landlord is liable, for consequential or
indirect damages purportedly arising out of any loss of use of the Premises
or
any equipment or facilities therein by Tenant or any person claiming through
or
under Tenant; (c) for any defect in the Premises or the Property; (d) for injury
or damage to person or property caused by fire, or theft, or resulting from
the
operation of heating or air conditioning or lighting apparatus, or from falling
plaster, or from steam, gas, electricity, water, rain, snow, ice, or dampness,
that may leak or flow from any part of the Property, or from the pipes,
appliances or plumbing work of the same, except as otherwise expressly provided
in Section
17.3.
17.2. Tenant
Indemnification. Except
for the Landlord’s gross negligence, sole negligence or willful misconduct,
Tenant hereby indemnifies, defends, and holds Landlord, Agent, Landlord’s
members and their respective affiliates, owners, partners, members, directors,
officers, agents and employees (collectively, “Landlord
Indemnified Parties”)
harmless from and against any and all Losses (defined below) arising from or
in
connection with any or all of: (a) the conduct or management of either or both
the Property and the Premises or any business therein, or any work or
Alterations done, or any condition created by any or all of Tenant and Tenant’s
Parties in or about the Premises during the Term or during the period of time,
if any, prior to the Commencement Date that Tenant has possession of, or is
given access to, the Premises; (b) any act, omission or negligence of any or
all
of Tenant and Tenant’s Parties; (c) any bodily injury or property damage
occurring in, at or upon the Premises and caused by any or all of Tenant and
Tenant’s Parties; (d) any breach by Tenant of any or all of its warranties,
representations and covenants under this Lease; (e) any actions necessary to
protect Landlord’s interest under this Lease in a bankruptcy proceeding or other
proceeding under the Bankruptcy Code; (f) the creation or existence of any
Hazardous Materials in, at, on or under the Premises or the Property, if and
to
the extent brought to the Premises or the Property or caused by Tenant or any
party within Tenant’s control; and (g) any violation or alleged violation by any
or all of Tenant and Tenant’s Parties of any Law (collectively, “Tenant’s
Indemnified Matters”).
In
case any action or proceeding is brought against any or all of Landlord and
the
Landlord Indemnified Parties by reason of any of Tenant’s Indemnified Matters,
Tenant, upon notice from any or all of Landlord, Agent or any Superior Party
(defined below), shall resist and defend such action or proceeding by counsel
reasonably satisfactory to Landlord. The term “Losses”
shall
mean all claims, demands, expenses, actions, judgments, damages (actual, but
not
consequential), penalties, fines, liabilities, losses of every kind and nature,
suits, administrative proceedings, costs and fees, including, without
limitation, attorneys’ and consultants’ reasonable fees and expenses, and the
costs of cleanup, remediation, removal and restoration, that are in any way
related to any matter covered by the foregoing indemnity. The provisions of
this
Section
17.2
shall
survive the expiration or termination of this Lease.
17.3. Landlord
Indemnification.
Landlord hereby indemnifies, defends and holds Tenant harmless from and against
any and all Losses actually suffered or incurred by Tenant as the sole and
direct result of any negligent, willful or intentional acts or omissions of
any
or all of Landlord, Agent and any parties within the direct and sole control
of
either or both of Landlord and Agent. Notwithstanding anything to the contrary
set forth in this Lease, however, in all events and under all circumstances,
the
liability of Landlord to Tenant, whether under this Section
17.3
or any
other provision of this Lease, shall be limited to the interest of Landlord
in
the Property, and Tenant agrees to look solely to Landlord’s interest in the
Property for the recovery of any judgment or award against Landlord, it being
intended that Landlord shall not be personally liable for any judgment or
deficiency. The provisions of this Section
17.3
shall
survive the expiration or termination of this Lease.
17.4. Force
Majeure.
Neither
the obligations of Tenant (except the obligation to pay Rent and the obligation
to maintain insurance, and provide evidence thereof, in accordance with
Section
10.2)
nor
those of Landlord shall be affected, impaired or excused, and neither Landlord
nor Tenant shall have any liability whatsoever to the other, with respect to
any
act, event or circumstance arising out of either or both (a) Landlord’s or
Tenant’s, as the case may be, failure to fulfill, or delay in fulfilling any of
its obligations under this Lease (except, with respect to Tenant, the obligation
to pay Rent and the obligation to maintain insurance, and provide evidence
thereof, in accordance with Section
10.2)
by
reason of labor dispute, governmental preemption of property in connection
with
a public emergency or shortages of fuel, supplies, or labor, or any other cause,
whether similar or dissimilar, beyond Landlord’s or Tenant’s, as the case may
be, reasonable control; or (b) any failure or defect in the supply, quantity
or
character of utilities furnished to the Premises, or by reason of any
requirement, act or omission of any public utility or others serving the
Property, beyond Landlord’s or Tenant’s, as the case may be, reasonable
control.
18. DAMAGE
OR DESTRUCTION.
18.1. Notification
and Repair; Rent Abatement.
Tenant
shall give prompt notice to Landlord and Agent of (a) any fire or other casualty
to the Premises or the Property, and (b) any damage to, or defect in, any part
or appurtenance of the Property’s sanitary, electrical, HVAC, elevator or other
systems located in or passing through the Premises or any part thereof. In
the
event that, as a result of Tenant’s failure to promptly notify Landlord pursuant
to the preceding sentence, Landlord’s insurance coverage is compromised or
adversely affected, then Tenant is and shall be responsible for the payment
to
Landlord of any insurance proceeds that Landlord’s insurer fails or refuses to
pay to Landlord as a result of the delayed notification. Subject to the
provisions of Section
18.2
below,
if either or both of the Property and the Premises is damaged by fire or other
insured casualty, Landlord
shall repair (or cause Agent to repair) the damage and restore and rebuild
the
Property and/or the Premises (except Tenant’s personal property) with reasonable
dispatch after the adjustment of the insurance proceeds attributable to such
damage. Landlord (or Agent, as the case may be) shall use its diligent, good
faith efforts to make such repair or restoration promptly and in such manner
as
not to unreasonably interfere with Tenant’s use and occupancy of the Premises,
but Landlord or Agent shall not be required to do such repair or restoration
work except during normal business hours of business days.
Provided
that any damage to either or both of the Property and the Premises is not caused
by, or is not the result of acts or omissions by, any or all of Tenant and
Tenant’s Parties, if (i) the Property is damaged by fire or other casualty
thereby causing the Premises to be inaccessible or (ii) the Premises are
partially damaged by fire or other casualty, the Rent shall be proportionally
abated to the extent of any actual loss of use of the Premises by
Tenant.
18.2. Total
Destruction.
If the
Property or the Premises shall be totally destroyed by fire or other casualty,
or if the Property shall be so damaged by fire or other casualty that (in the
reasonable opinion of a reputable contractor or architect designated by
Landlord): (i) its repair or restoration of the Premises requires more than
180
days or (ii) such repair or restoration requires the expenditure of more than
(a) 80% of the full insurable value of the Premises immediately prior to the
casualty or (b) 50% of the full insurable value of the Property immediately
prior to the casualty, Landlord and Tenant shall each have the option to
terminate this Lease (by so advising the other, in writing) within 10 days
after
said contractor or architect delivers written notice of its opinion to Landlord
and Tenant, but in all events prior to the commencement of any restoration
of
the Premises or the Property by Landlord. Additionally, if the damage (x) is
less than the amount stated in (ii) above, but more than 10% of the full
insurable value of the Property; and (y) occurs during the last two years of
Lease Term, then Landlord, but not Tenant, shall have the option to terminate
this Lease pursuant to the notice and within the time period established
pursuant to the immediately preceding sentence. In the event of a termination
pursuant to either of the preceding two (2) sentences, the termination shall
be
effective as of the date upon which either Landlord or Tenant, as the case
may
be, receives timely written notice from the other terminating this Lease
pursuant to the preceding sentence. If neither Landlord nor Tenant timely
delivers a termination notice, this Lease shall remain in full force and effect.
Notwithstanding the foregoing, if (A) any holder of a mortgage or deed of trust
encumbering the Property or landlord pursuant to a ground lease encumbering
the
Property (collectively, “Superior
Parties”)
or
other party entitled to the insurance proceeds fails to make such proceeds
available to Landlord in an amount sufficient for restoration of the Premises
or
the Property, or (B) the issuer of any commercial property insurance policies
on
the Property fails to make available to Landlord sufficient proceeds for
restoration of the Premises or the Property, then Landlord may, at Landlord’s
sole option, terminate this Lease by giving Tenant written notice to such effect
within 30 days after Landlord receives notice from the Superior Party or
insurance company, as the case may be, that such proceeds shall not be made
available, in which event the termination of this Lease shall be effective
as of
the date Tenant receives written notice from Landlord of Landlord’s election to
terminate this Lease. Landlord shall have no liability to Tenant, and Tenant
shall not be entitled to terminate this Lease by virtue of any delays in
completion of repairs and restoration. For purposes of this Section
18.2
only,
“full
insurable value”
shall
mean replacement cost, less the cost of footings, foundations and other
structures below grade.
19. EMINENT
DOMAIN.
If the
whole, or any substantial (as reasonably determined by Landlord) portion, of
the
Property is taken or condemned for any public use under any Law or by right
of
eminent domain, or by private purchase in lieu thereof, and such taking would
prevent or materially interfere with the Permitted Use of the Premises, this
Lease shall terminate effective when the physical taking of said Premises
occurs. If less than a substantial portion of the Property is so taken or
condemned, or if the taking or condemnation is temporary (regardless of the
portion of the Property affected), this Lease shall not terminate, but the
Rent
payable hereunder shall be proportionally abated to the extent of any actual
loss of use of the Premises by Tenant. Landlord shall be entitled to any and
all
payment, income, rent or award, or any interest therein whatsoever, which may
be
paid or made in connection with such a taking or conveyance, and Tenant shall
have no claim against Landlord for the value of any unexpired portion of this
Lease. Notwithstanding the foregoing, any compensation specifically and
independently awarded to Tenant for loss of business or goodwill, or for its
personal property, shall be the property of Tenant.
20. SURRENDER
AND HOLDOVER.
On the
last day of the Term, or upon any earlier termination of this Lease, or upon
any
re-entry by Landlord upon the Premises: (a) Tenant shall quit and surrender
the
Premises to Landlord “broom-clean” (as defined by Exhibit
E,
attached hereto and incorporated herein by reference), and in a condition that
would reasonably be expected with normal and customary use in accordance with
prudent operating practices and in accordance with the covenants and
requirements imposed under this Lease, subject only to ordinary wear and tear
(as is attributable to deterioration by reason of time and use, in spite of
Tenant’s reasonable care) and such damage or destruction as Landlord is required
to repair or restore under this Lease; (b) Tenant shall remove all of Tenant’s
personal property therefrom, except as otherwise expressly provided in this
Lease; and (c) Tenant shall surrender to Landlord any and all keys, access
cards, computer codes or any other items used to access the Premises. Landlord
shall be permitted to inspect the Premises in order to verify compliance with
this Section
20
at any
time prior to (x) the Expiration Date, (y) the effective date of any earlier
termination of this Lease, or (z) the surrender date otherwise agreed to in
writing by Landlord and Tenant. The obligations imposed under the first sentence
of this Section
20 shall
survive the termination or expiration of this Lease. If Tenant remains in
possession after the Expiration Date hereof or after any earlier termination
date of this Lease or of Tenant’s right to possession: (i) Tenant shall be
deemed a tenant-at-will; (ii) Tenant shall pay 200% of the aggregate of all
Rent
last prevailing hereunder, and also shall pay all actual damages sustained
by
Landlord, directly by reason of Tenant’s remaining in possession after the
expiration or termination of this Lease; (iii) there shall be no renewal or
extension of this Lease by operation of law; and (iv) the tenancy-at-will may
be
terminated by either party hereto upon 30 days’ prior written notice given by
the terminating party to the non-terminating party. The provisions of this
Section
20
shall
not constitute a waiver by Landlord of any re-entry rights of Landlord provided
hereunder or by law.
21. EVENTS
OF DEFAULT.
21.1. Bankruptcy
of Tenant.
It
shall be a default by Tenant under this Lease (“Default”
or
“Event
of Default”)
if
Tenant makes an assignment for the benefit of creditors, or files a voluntary
petition under any state or federal bankruptcy (including the United States
Bankruptcy Code) or insolvency law, or an involuntary petition is filed against
Tenant under any state or federal bankruptcy (including the United States
Bankruptcy Code) or insolvency law that is not dismissed within 90 days after
filing, or whenever a receiver of Tenant, or of, or for, the property of Tenant
shall be appointed, or Tenant admits it is insolvent or is not able to pay
its
debts as they mature.
21.2. Default
Provisions.
In
addition to any Default arising under Section
21.1 above,
each of the following shall constitute a Default: (a) if Tenant fails to pay
Rent or any other payment when due hereunder within five days after written
notice from Landlord of such failure to pay on the due date; provided, however,
that if in any consecutive 12 month period, Tenant shall, on two (2) separate
occasions, fail to pay any installment of Rent on the date such installment
of
Rent is due, then, on the third such occasion and on each occasion thereafter
on
which Tenant shall fail to pay an installment of Rent on the date such
installment of Rent is due, Landlord shall be relieved from any obligation
to
provide notice to Tenant, and Tenant shall then no longer have a five day period
in which to cure any such failure; (b) if Tenant fails, whether by action or
inaction, to timely comply with, or satisfy, any or all of the obligations
imposed on Tenant under this Lease (other than the obligation to pay Rent)
for a
period of 30 days after Landlord’s delivery to Tenant of written notice of such
default under this Section
21.2(b);
provided, however, that if the default cannot, by its nature, be cured within
such 30 day period, but Tenant commences and diligently pursues a cure of such
default promptly within the initial 30 day cure period, then Landlord shall
not
exercise its remedies under Section
22
unless
such default remains uncured for more than 60 days after the initial delivery
of
Landlord’s original default notice; and, at Landlord’s election, (c) if Tenant
vacates or abandons the Premises during the Term.
22. RIGHTS
AND REMEDIES.
22.1. Landlord’s
Cure Rights Upon Default of Tenant.
If a
Default occurs, then Landlord may (but shall not be obligated to) cure or remedy
the Default for the account of, and at the expense of, Tenant,
but
without waiving such Default.
22.2. Landlord’s
Remedies.
In the
event of any Default by Tenant under this Lease, Landlord, at its option, may,
in addition to any and all other rights and remedies provided in this Lease
or
otherwise at law or in equity do or perform any or all of the
following:
22.2.1. Terminate
Tenant’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Tenant shall immediately surrender possession
to
Landlord. In such event, Landlord shall be entitled to recover from Tenant
all
of: (i) the unpaid Rent that is accrued and unpaid as of the date on which
this
Lease is terminated; (ii) the worth, at the time of award, of the amount by
which (x) the unpaid Rent that would otherwise be due and payable under this
Lease (had this Lease not been terminated) for the period of time from the
date
on which this Lease is terminated through the Expiration Date exceeds (y) the
amount of such rental loss that the Tenant proves could have been reasonably
avoided; and (iii) any other amount necessary to compensate Landlord for all
the
detriment proximately caused by the Tenant’s failure to perform its obligations
under this Lease or which, in the ordinary course of events, would be likely
to
result therefrom, including but not limited to, the cost of recovering
possession of the Premises, expenses of reletting, including renovation and
alteration of the Premises, reasonable attorneys’ fees, and that portion of any
leasing commission paid by Landlord in connection with this Lease applicable
to
the unexpired Term (as of the date on which this Lease is terminated). The
worth, at the time of award, of the amount referred to in provision (ii) of
the
immediately preceding sentence shall be computed by discounting such amount
at
the current yield, as of the date on which this Lease is terminated under this
Section
22.2.1,
on
United States Treasury Bills having a maturity date closest to the stated
Expiration Date of this Lease, plus one percent per annum. In the event that
Tenant vacates the Premises, Landlord shall, at Tenant’s full cost and expense,
use commercially reasonable efforts to mitigate its damages caused by Tenant’s
Default, but shall in no event be said to have waived Landlord’s right to
recover damages under this Section
22.2.
Should
Landlord, as a result of its mitigation efforts receive any rents for the
Premises, Landlord shall apply such rents (after deducting the full cost of
its
mitigation efforts therefrom) against the amount otherwise due from Tenant
as a
result of its Default. If this Lease is terminated through any unlawful entry
and detainer action, Landlord shall have the right to recover in such proceeding
any unpaid Rent and damages as are recoverable in such action, or Landlord
may
reserve the right to recover all or any part of such Rent and damages in a
separate suit; or
22.2.2. Continue
the Lease and either (a) continue Tenant’s right to possession or (b) terminate
Tenant’s right to possession and in the case of either (a) or (b), recover the
Rent as it becomes due. Acts of maintenance, efforts to relet, and/or the
appointment of a receiver to protect the Landlord’s interests shall not
constitute a termination of the Tenant’s right to possession; or
22.2.3. Pursue
any other remedy now or hereafter available under the laws of the state in
which
the Premises are located.
22.2.4. Without
limitation of any of Landlord’s rights in the event of a Default by Tenant,
Landlord may also exercise its rights and remedies with respect to any Security
under Section
4.4 above.
Any
and
all personal property of Tenant that may be removed from the Premises by
Landlord pursuant to the authority of this Lease or of law may be handled,
removed or stored by Landlord at the sole risk, cost and expense of Tenant,
and
in no event or circumstance shall Landlord be responsible for the value,
preservation or safekeeping thereof. Tenant shall pay to Landlord, upon demand,
any and all expenses incurred in such removal and all storage charges for such
property of Tenant so long as the same shall be in Landlord’s possession or
under Landlord’s control. Any such property of Tenant not removed from the
Premises as of the Expiration Date or any other earlier date on which this
Lease
is terminated shall be conclusively presumed to have been conveyed by Tenant
to
Landlord under this Lease as in a xxxx of sale, without further payment or
credit by Landlord to Tenant.
Neither
expiration or termination of this Lease nor the termination of Tenant’s right to
possession shall relieve Tenant from its liability under the indemnity
provisions of this Lease.
22.3. Additional
Rights of Landlord.
All
sums advanced by Landlord or Agent on account of Tenant under this Section,
or
pursuant to any other provision of this Lease, and all Base Rent and Additional
Rent, if delinquent or not paid by Tenant and received by Landlord when due
hereunder, shall bear interest at the rate of 5% per annum above the “prime” or
“reference” or “base” rate (on a per annum basis) of interest publicly announced
as such, from time to time, by the JPMorgan Chase Bank, or its successor
(“Default
Interest”),
from
the due date thereof until paid, and such interest shall be and constitute
Additional Rent and be due and payable upon Landlord’s or Agent’s submission of
an invoice therefor. The various rights, remedies and elections of Landlord
reserved, expressed or contained herein are cumulative and no one of them shall
be deemed to be exclusive of the others or of such other rights, remedies,
options or elections as are now or may hereafter be conferred upon Landlord
by
law.
22.4. Event
of Bankruptcy.
In
addition to, and in no way limiting the other remedies set forth herein,
Landlord and Tenant agree that if Tenant ever becomes the subject of a voluntary
or involuntary bankruptcy, reorganization, composition, or other similar type
proceeding under the federal bankruptcy laws, as now enacted or hereinafter
amended, then: (a) “adequate assurance of future performance” by Tenant pursuant
to Bankruptcy Code Section 365 will include (but not be limited to) payment
of
an additional/new security deposit in the amount of three times the then current
Base Rent payable hereunder; (b) any person or entity to which this Lease is
assigned, pursuant to the provisions of the Bankruptcy Code, shall be deemed,
without further act or deed, to have assumed all of the obligations of Tenant
arising under this Lease on and after the effective date of such assignment,
and
any such assignee shall, upon demand by Landlord, execute and deliver to
Landlord an instrument confirming such assumption of liability; (c)
notwithstanding anything in this Lease to the contrary, all amounts payable
by
Tenant to or on behalf of Landlord under this Lease, whether or not expressly
denominated as “Rent”, shall constitute “rent” for the purposes of Section
502(b)(6) of the Bankruptcy Code; and (d) if this Lease is assigned to any
person or entity pursuant to the provisions of the Bankruptcy Code, any and
all
monies or other considerations payable or otherwise to be delivered to Landlord
or Agent (including Base Rent, Additional Rent and other amounts hereunder),
shall be and remain the exclusive property of Landlord and shall not constitute
property of Tenant or of the bankruptcy estate of Tenant. Any and all monies
or
other considerations constituting Landlord’s property under the preceding
sentence not paid or delivered to Landlord or Agent shall be held in trust
by
Tenant or Tenant’s bankruptcy estate for the benefit of Landlord and shall be
promptly paid to or turned over to Landlord.
22.5. CONFESSION
OF JUDGMENT FOR POSSESSION
TENANT,
IN CONSIDERATION OF THE EXECUTION OF THIS LEASE BY LANDLORD AND FOR THE
COVENANTS AND AGREEMENTS ON THE PART OF LANDLORD HEREIN CONTAINED, AND FULLY
COMPREHENDING THE RELINQUISHMENT OF CERTAIN RIGHTS INCLUDING RIGHTS OF
PREJUDGMENT NOTICE AND HEARING AND POST JUDGMENT/PRE-EXECUTION NOTICE AND
HEARING, AND AFTER DEFAULT BY TENANT UNDER THIS LEASE, HEREBY EXPRESSLY
AUTHORIZES ANY ATTORNEY OF ANY COURT OF RECORD TO ACCEPT SERVICE OF PROCESS
FOR,
TO APPEAR FOR, AND TO CONFESS JUDGMENT IN EJECTMENT AGAINST TENANT IN ANY AND
ALL ACTIONS BROUGHT HEREUNDER BY LANDLORD AGAINST TENANT TO RECOVER POSSESSION
FROM TIME TO TIME OF THE PREMISES (AND TENANT AGREES THAT UPON THE ENTRY OF
EACH
JUDGMENT FOR SUCH POSSESSION A WRIT OF POSSESSION OR OTHER APPROPRIATE PROCESS
MAY ISSUE FORTHWITH). THE RIGHT TO CONFESS JUDGMENT IN EJECTMENT SHALL NOT
BE
EXHAUSTED BY THE SINGLE OR MULTIPLE USE THEREOF. TENANT CONFIRMS THAT THIS
IS A
COMMERCIAL LEASE, THAT TENANT WAS REPRESENTED BY COUNSEL IN TENANT'S NEGOTIATION
AND EXECUTION OF THIS LEASE, AND THAT TENANT KNOWINGLY, WILLINGLY, FREELY AND
VOLUNTARILY EXECUTED THIS LEASE WITH THIS SECTION AS A PART THEREOF. LANDLORD
COVENANTS NOT TO CONFESS JUDGMENT IN ACCORDANCE WITH THIS PARAGRAPH 22.5 UNLESS
IT SHALL HAVE PROVIDED TENANT WITH AT LEAST TEN (1O) DAYS PRIOR WRITTEN NOTICE
OF LANDLORD’S INTENTION TO SO CONFESS JUDGMENT.
22.6. WAIVER
OF NOTICE UNDER PENNSYLVANIA LANDLORD AND TENANT ACT.
IF
PROCEEDINGS ARE COMMENCED BY LANDLORD TO RECOVER POSSESSION UNDER THE ACTS
OF
ASSEMBLY AND RULES OF CIVIL PROCEDURE, UPON THE EXPIRATION OR EARLIER
TERMINATION OF THE TERM, OR FOR NON-PAYMENT OF RENT OR ANY OTHER REASON, TENANT
SPECIFICALLY WAIVES THE RIGHT TO THE NOTICES REQUIRED BY THE LANDLORD AND TENANT
ACT OF 1951, AS THE SAME MAY BE AMENDED, AND AGREES THAT FIVE (5) DAYS' NOTICE
SHALL BE SUFFICIENT IN ALL CASES, EXCEPT WHERE OTHERWISE PROVIDED
HEREIN.
23. BROKER.
Tenant
covenants, warrants and represents that the broker set forth in Section
1.9(A)
was the
only broker to represent Tenant in the negotiation of this Lease (“Tenant’s
Broker”).
Landlord covenants, warrants and represents that the broker set forth in
Section
1.9(B)
was the
only broker to represent Landlord in the negotiation of this Lease
(“Landlord’s
Broker”).
Landlord shall be solely responsible for paying the commission of [both
Tenant’s Broker and]
Landlord’s Broker. Each party agrees to and hereby does defend, indemnify and
hold the other harmless against and from any brokerage commissions or finder’s
fees or claims therefor by a party claiming to have dealt with the indemnifying
party and all costs, expenses and liabilities in connection therewith,
including, without limitation, reasonable attorneys’ fees and expenses, for any
breach of the foregoing. The foregoing indemnification shall survive the
termination or expiration of this Lease.
24. MISCELLANEOUS.
24.1. Merger.
All
prior understandings and agreements between the parties are merged in this
Lease, which alone fully and completely expresses the agreement of the parties.
No agreement shall be effective to modify this Lease, in whole or in part,
unless such agreement is in writing, and is signed by the party against whom
enforcement of said change or modification is sought.
24.2. Notices.
Any
notice required to be given by either party pursuant to this Lease, shall be
in
writing and shall be deemed to have been properly given, rendered or made only
if (a) personally delivered, or (b) if sent by Federal Express or other
comparable commercial overnight delivery service, or (c) sent by certified
mail,
return receipt requested and postage prepaid, addressed (in the case of any
or
all of (a), (b) and (c) above) to the other party at the addresses set forth
below each party’s respective signature block (or to such other address as
Landlord or Tenant may designate to each other from time to time by written
notice), and shall be deemed to have been given, rendered or made (i) on the
day
so delivered or (ii) in the case of overnight courier delivery on the first
business day after having been deposited with the courier service, and (iii)
in
the case of certified mail, on the third (3rd)
business day after deposit with the U.S. Postal Service.
24.3. Non-Waiver.
The
failure of either party to insist, in any one or more instances, upon the strict
performance of any one or more of the obligations of this Lease, or to exercise
any election herein contained, shall not be construed as a waiver or
relinquishment for the future of the performance of such one or more obligations
of this Lease or of the right to exercise such election, but the Lease shall
continue and remain in full force and effect with respect to any subsequent
breach, act or omission. The receipt and acceptance by Landlord or Agent of
Base
Rent or Additional Rent with knowledge of breach by Tenant of any obligation
of
this Lease shall not be deemed a waiver of such breach.
24.4. Legal
Costs.
Any
party in breach or default under this Lease (the “Defaulting
Party”)
shall
reimburse the other party (the “Nondefaulting
Party”)
upon
demand for any legal fees and court (or other administrative proceeding) costs
or expenses that the Nondefaulting Party incurs in connection with the breach
or
default, regardless whether suit is commenced or judgment entered. Such costs
shall include legal fees and costs incurred for the negotiation of a settlement,
enforcement of rights or otherwise. Furthermore, in the event of litigation,
the
court in such action shall award to the party in whose favor a judgment is
entered a reasonable sum as attorneys’ fees and costs, which sum shall be paid
by the losing party. Tenant shall pay Landlord’s attorneys’ reasonable fees
incurred in connection with Tenant’s request for Landlord’s consent under
provisions of this Lease governing assignment and subletting, or in connection
with any other act which Tenant proposes to do and which requires Landlord’s
consent.
24.5. Parties
Bound.
Except
as otherwise expressly provided for in this Lease, this Lease shall be binding
upon, and inure to the benefit of, the successors and assignees of the parties
hereto. Tenant hereby releases Landlord named herein from any obligations of
Landlord for any period subsequent to the conveyance and transfer of Landlord’s
ownership interest in the Property. In the event of such conveyance and
transfer, Landlord’s obligations shall thereafter be binding upon each
transferee (whether Successor Landlord or otherwise). No obligation of Landlord
shall arise under this Lease until the instrument is signed by, and delivered
to, both Landlord and Tenant.
24.6. Recordation
of Lease.
Tenant
shall not record or file this Lease (or any memorandum hereof) in the public
records of any county or state.
24.7. Governing
Law; Construction.
This
Lease shall be governed by and construed in accordance with the laws of the
state in which the Property is located. If any provision of this Lease shall
be
invalid or unenforceable, the remainder of this Lease shall not be affected
but
shall be enforced to the extent permitted by law. The captions, headings and
titles in this Lease are solely for convenience of reference and shall not
affect its interpretation. This Lease shall be construed without regard to
any
presumption or other rule requiring construction against the party causing
this
Lease to be drafted. Each covenant, agreement, obligation, or other provision
of
this Lease to be performed by Tenant, shall be construed as a separate and
independent covenant of Tenant, not dependent on any other provision of this
Lease. All terms and words used in this Lease, regardless of the number or
gender in which they are used, shall be deemed to include any other number
and
any other gender as the context may require. This Lease may be executed in
counterpart and, when all counterpart documents are executed, the counterparts
shall constitute a single binding instrument.
24.8. Time.
Time is
of the essence for this Lease. If the time for performance hereunder falls
on a
Saturday, Sunday or a day that is recognized as a holiday in the state in which
the Property is located, then such time shall be deemed extended to the next
day
that is not a Saturday, Sunday or holiday in said state.
24.9. Authority
of Tenant.
Tenant
and the person(s) executing this Lease on behalf of Tenant hereby represent,
warrant, and covenant with and to Landlord as follows: the individual(s) acting
as signatory on behalf of Tenant is(are) duly authorized to execute this Lease;
Tenant has procured (whether from its members, partners or board of directors,
as the case may be), the requisite authority to enter into this Lease; this
Lease is and shall be fully and completely binding upon Tenant; and Tenant
shall
timely and completely perform all of its obligations hereunder.
24.10. WAIVER
OF TRIAL BY JURY.
THE
LANDLORD AND THE TENANT, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO,
HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY ANY PARTY
TO
THIS LEASE WITH RESPECT TO THIS LEASE, THE PREMISES, OR ANY OTHER MATTER RELATED
TO THIS LEASE OR THE PREMISES.
24.11. Relocation. Intentionally
Omitted.
24.12. Financial
Information.
From
time
to time during the Term, Tenant shall deliver to Landlord information and
documentation describing and concerning Tenant’s financial condition, and in
form and substance reasonably acceptable to Landlord, within ten (10) days
following Landlord’s written request therefor.
Upon
Landlord’s request, Tenant shall provide to Landlord the most currently
available audited financial statement of Tenant; and if no such audited
financial statement is available, then Tenant shall instead deliver to Landlord
its most currently available balance sheet and income statement. Furthermore,
upon the delivery of any such financial information from time to time during
the
Term, Tenant shall be deemed to automatically represent and warrant to Landlord
that the financial information delivered to Landlord is true, accurate and
complete, and that there has been no adverse change in the financial condition
of Tenant since the date of the then-applicable financial
information.
24.13. Confidential
Information.
Tenant
agrees to maintain in strict confidence the economic terms of this Lease and
any
or all other materials, data and information delivered to or received by any
or
all of Tenant and Tenants’ Parties either prior to or during the Term in
connection with the negotiation and execution hereof. The provisions of this
Section
24.13
shall
survive the termination of this Lease.
24.14. Submission
of Lease.
Submission of this Lease to Tenant for signature does not constitute a
reservation of space or an option to lease. This Lease is not effective until
execution by and delivery to both Landlord and Tenant.
24.15. Lien
Prohibition.
Tenant
shall not permit any mechanics or materialmen’s liens to attach to the Premises
or the Property. Tenant, at its expense, shall procure the satisfaction or
discharge of record of all such liens and encumbrances within 30 days after
the
filing thereof; or, within such thirty (30) day period, Tenant shall provide
Landlord, at Tenant’s sole expense, with endorsements (satisfactory, both in
form and substance, to Landlord and the holder of any mortgage or deed of trust)
to the existing title insurance policies of Landlord and the holder of any
mortgage or deed of trust, insuring against the existence of, and any attempted
enforcement of, such lien or encumbrance. In the event Tenant has not so
performed, Landlord may, at its option, pay and discharge such liens and Tenant
shall be responsible to reimburse Landlord, on demand and as Additional Rent
under this Lease, for all costs and expenses incurred in connection therewith,
together with Default Interest thereon, which expenses shall include reasonable
fees of attorneys of Landlord’s choosing, and any costs in posting bond to
effect discharge or release of the lien as an encumbrance against the Premises
or the Property.
24.16. Counterparts.
This
Lease may be executed in multiple counterparts, but all such counterparts shall
together constitute a single, complete and fully-executed document.
[Signature
Page Follows]
IN
WITNESS WHEREOF,
Landlord and Tenant have duly executed this Lease as of the day and year first
above written.
LANDLORD:
|
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FIRST
INDUSTRIAL PENNSYLVANIA, L.P.,
|
|
a
Delaware limited partnership
|
|
By:
|
First
Industrial Pennsylvania Corporation,
|
a
Maryland corporation, its General Partner
|
|
By:
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Name:
|
|
Title:
|
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TENANT:
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By:
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|
Name:
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Title:
|
Landlord’s
Addresses for Notices:
|
Tenant’s
Addresses for Notices:
|
First
Industrial Pennsylvania, L.P.
|
|
000
Xxxxx Xxxxxx Xxxxx, Xxxxx 0000
|
|
Xxxxxxx,
Xxxxxxxx 00000
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Attn:
Executive Vice President-Operations
|
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With
a copy to:
|
With
a copy to:
|
First
Industrial Realty Trust, Inc.
|
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000
Xxxxxxx Xxxx
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Xxxxx,
XX. 00000-0000
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Attn:
Senior Regional Director
|
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With
a
copy to:
Xxxx
Xxxxx LLP
Centre
Square West
0000
Xxxxxx Xxxxxx — 00xx
Xxxxx
Xxxxxxxxxxxx,
XX 00000-0000
Attn:
F.
Xxxxxxx Xxxxxxx, Esquire
LEASE
EXHIBIT A
Property
ATTACH
APPROPRIATE SITE PLAN
LEASE
EXHIBIT B
TENANT
OPERATIONS INQUIRY FORM
1. Name
of
Company/Contact_______________________________________________________________________
2. Address/Phone________________________________________________________________________________
3. Provide
a
brief description of your business and operations:
______________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
4. Will
you
be required to make filings and notices or obtain permits as required by
Federal
and/or State regulations for the operations at the proposed facility?
Specifically:
a.
XXXX Title III Section 312 (Tier II) reports
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YES
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NO
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(>
10,000lbs. of hazardous materials STORED at any one time)
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|||
b.
XXXX Title III Section 313 (Tier III) Form R reports
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YES
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NO
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(>
10,000lbs. of hazardous materials USED per year)
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|||
c.
NPDES or SPDES Stormwater Discharge permit
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YES
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NO
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(answer
“No” if “No-Exposure Certification” filed)
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d.
EPA Hazardous Waste Generator ID Number
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YES
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NO
|
5. Provide
a
list of chemicals and wastes that will be used and/or generated at the proposed
location. Routine office and cleaning supplies are not included. Make additional
copies if required.
Chemical/Waste
|
Approximate Annual
Quantity Used or
Generated
|
Storage Container(s)
(i.e. Drums, Cartons, Totes,
Bags, ASTs, USTs, etc)
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|||
LEASE
EXHIBIT C
LANDLORD’S
WORK
LEASE
EXHIBIT D
CONFIRMATION
OF COMMENCEMENT DATE
[Date]
[Tenant’s
Name and Address]
RE: [Describe
lease, by title and date (the “Lease”); name Landlord and
Tenant]
Dear
[Name
of Contact Person at Tenant]:
This
letter shall confirm that the Commencement Date for the above-referenced Lease
is [specify
Commencement Date].
[Name
of Tenant],
as
Tenant, hereby acknowledges the following: (i) Tenant is in possession of the
Premises (as defined in the Lease); (ii) the Lease is in full force and effect;
(iii) Landlord is not in default under the Lease; and (iv) possession of the
Premises is accepted by Tenant as having been delivered in accordance with
the
terms and conditions of the Lease.
Our
records indicate the following information for the [Number
of square feet comprising Premises]
square
feet of space:
Commencement
Date:
|
____________________
200__
|
Base
Rent Commencement Date:
|
____________________
200__
|
Next
Monthly Base Rent Due:
|
____________________
200__
|
Operating
Expense Commencement Date:
|
____________________
200__
|
Lease
Expiration Date:
|
____________________
200__
|
Please
sign two (2) copies of this letter in the space provided below acknowledging
your agreement with the above and return them to me at my office. I suggest
you
attach a copy of this letter to your copy of the Lease.
Thank
you
again for your cooperation and assistance regarding this matter. Please contact
me at any time should you have questions regarding the lease, building, or
any
related manner.
Sincerely,
|
Acknowledged
and Agreed to this ___ day of __________________,
20____
|
|
[Name]
Property
Manager
|
[Name
of Tenant]
|
|
By:
|
||
Title:
|
LEASE
EXHIBIT E
Broom
Clean Condition and Repair Requirements
· |
All
lighting is to be placed into good working order. This includes
replacement of bulbs, ballasts, and lenses as
needed.
|
· |
All
truck doors and dock levelers should be serviced and placed in good
operating order (including, but not limited to, overhead door springs,
rollers, tracks and motorized door operator). This would include
the
necessary (a) replacement of any dented truck door panels, broken
panels
and cracked lumber, and (b) adjustment of door tension to insure
proper
operation. All door panels that are replaced shall be painted to
match the
Building standard.
|
· |
All
structural steel columns in the warehouse and office should be inspected
for damage, and must be repaired. Repairs of this nature shall be
pre-approved by the Landlord prior to implementation.
|
· |
HVAC
system shall be in good working order, including the necessary replacement
of any parts to return the unit to a well-maintained condition. This
includes, but is not limited to, filters, thermostats, warehouse
heaters
and exhaust fans. Upon move-out, Landlord will have an exit inspection
performed by a certified mechanical contractor to determine the condition
of the HVAC system.
|
· |
All
holes in the sheet rock walls shall be repaired prior to move-out.
All
walls shall be clean.
|
· |
The
carpets and vinyl tiles shall be in a clean condition and shall not
have
any holes or chips in them. Flooring shall be free of excessive dust,
dirt, grease, oil and stains. Cracks in concrete and asphalt shall
be
acceptable as long as they are ordinary wear and tear, and are not
the
result of misuse.
|
· |
Facilities
shall be returned in a clean condition, including, but not limited
to, the
cleaning of the coffee bar, restroom areas, windows, and other portions
of
the Premises.
|
· |
There
shall be no protrusion of anchors from the warehouse floor and all
holes
shall be appropriately patched. If machinery/equipment is removed,
the
electrical lines shall be properly terminated at the nearest junction
box.
|
· |
All
exterior windows with cracks or breakage shall be replaced. All windows
shall be clean.
|
· |
Tenant
shall provide keys for all locks on the Premises, including front
doors,
rear doors, and interior doors.
|
· |
All
mechanical and electrical systems shall be left in a safe condition
that
confirms to code. Bare wires and dangerous installations shall be
corrected to Landlord’s reasonable
satisfaction.
|
· |
All
plumbing fixtures shall be in good working order, including, but
not
limited to, the water heater. Faucets and toilets shall not
leak.
|
· |
All
dock bumpers shall be left in place and
well-secured.
|
· |
Drop
grid ceiling shall be free of excessive dust from lack of changing
filters. No ceiling tiles may be missing or
damaged.
|
· |
All
trash shall be removed from both inside and outside of the
Building.
|
· |
All
signs in front of Building and on glass entry door and rear door
shall be
removed.
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