OFFICE LEASE
at
ONE XXXXX CENTER
between
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP (LANDLORD)
and
GENESIS CRUDE OIL, L.P. (TENANT)
DATED: JULY 15, 1997
TABLE OF CONTENTS
PAGE
----
ARTICLE ONE 1
BASIC LEASE PROVISIONS 1
1.01 BASIC LEASE PROVISIONS 1
1.02 ENUMERATION OF EXHIBITS 2
1.03 DEFINITIONS 2
ARTICLE TWO 11
PREMISES, TERM AND OTHER LEASE RIGHTS 11
2.01 LEASE OF PREMISES 11
2.02 TERM 11
2.03 FAILURE TO GIVE POSSESSION 11
2.04 CONDITION OF PREMISES 12
2.05 RENEWAL OPTION 12
2.06 CANCELLATION OPTION 12
2.07 MANDATORY EXPANSION 13
2.08 PREFERENTIAL LEASE RIGHT 13
2.09 LICENSE FOR ROOFTOP COMMUNICATIONS EQUIPMENT 13
ARTICLE THREE 13
RENT 13
ARTICLE FOUR 14
RENT ADJUSTMENT 14
4.01 RENT ADJUSTMENT 14
4.02 PROCEDURE 14
4.03 BOOKS AND RECORDS 15
4.04 PARTIAL OCCUPANCY 16
ARTICLE FIVE 16
SECURITY DEPOSIT 16
[INTENTIONALLY DELETED] 16
ARTICLE SIX 16
SERVICES 16
6.01 LANDLORD'S GENERAL SERVICES 16
6.02 ELECTRICAL SERVICES 18
6.03 ADDITIONAL AND AFTER-HOUR SERVICES 19
6.04 TELEPHONE SERVICES 20
6.05 DELAYS IN FURNISHING SERVICES 20
ARTICLE SEVEN 22
POSSESSION, USE AND CONDITION OF PREMISES 22
7.01 POSSESSION AND USE OF PREMISES 22
7.02 LANDLORD ACCESS TO PREMISES 24
7.03 QUIET ENJOYMENT 25
7.04 ENTRY CARDS 25
7.05 TENANT SECURITY MEASURES 26
ARTICLE EIGHT 26
MAINTENANCE 26
8.01 LANDLORD'S MAINTENANCE 26
8.02 TENANT'S MAINTENANCE 26
ARTICLE NINE 27
ALTERATIONS AND IMPROVEMENTS 27
9.01 TENANT ALTERATIONS 27
9.02 LIENS 28
ARTICLE TEN 29
ASSIGNMENT AND SUBLETTING 29
10.01 ASSIGNMENT AND SUBLETTING 29
10.02 RECAPTURE 31
10.03 EXCESS RENT 31
10.04 TENANT LIABILITY 31
10.05 ASSUMPTION AND ATTORNMENT 31
ARTICLE ELEVEN 32
DEFAULT AND REMEDIES 32
11.01 EVENTS OF DEFAULT 32
11.02 LANDLORD'S REMEDIES 33
11.03 ATTORNEY'S FEES 35
11.04 BANKRUPTCY 35
ARTICLE TWELVE 36
SURRENDER OF PREMISES 36
12.01 IN GENERAL 36
12.02 LANDLORD'S RIGHTS 36
ARTICLE THIRTEEN 37
HOLDING OVER 37
ARTICLE FOURTEEN 37
DAMAGE BY FIRE OR OTHER CASUALTY 37
14.01 SUBSTANTIAL UNTENANTABILITY 37
14.02 INSUBSTANTIAL UNTENANTABILITY 38
14.03 RENT ABATEMENT 38
ARTICLE FIFTEEN 39
EMINENT DOMAIN 39
15.01 TAKING OF WHOLE OR SUBSTANTIAL PART 39
15.02 TAKING OF PART 39
15.03 COMPENSATION 39
ARTICLE SIXTEEN 40
INSURANCE 40
16.01 TENANT'S INSURANCE 40
16.02 FORM OF POLICIES 40
16.03 LANDLORD'S INSURANCE 40
16.04 WAIVER OF SUBROGATION 41
16.05 NOTICE OF CASUALTY 42
ARTICLE SEVENTEEN 42
WAIVER OF CLAIMS AND INDEMNITY 42
17.01 INDEMNITY BY TENANT 42
17.02 INDEMNITY BY LANDLORD 43
ARTICLE EIGHTEEN 43
RULES AND REGULATIONS 43
18.01 RULES 43
18.02 ENFORCEMENT 43
ARTICLE NINETEEN 44
LANDLORD'S RESERVED RIGHTS 44
19.01 RESERVED RIGHTS 44
ARTICLE TWENTY 44
ESTOPPEL CERTIFICATE 44
20.01 IN GENERAL 44
20.02 ENFORCEMENT 45
ARTICLE TWENTY-ONE 45
RELOCATION OF TENANT 45
ARTICLE TWENTY-TWO 46
REAL ESTATE BROKERS 46
ARTICLE TWENTY-THREE 46
MORTGAGEE PROTECTION 46
23.01 SUBORDINATION AND ATTORNMENT 46
23.02 NON-DISTURBANCE AGREEMENT 47
23.03 MORTGAGEE PROTECTION 47
ARTICLE TWENTY-FOUR 48
NOTICES 48
ARTICLE TWENTY-FIVE 49
MISCELLANEOUS 49
25.01 LATE CHARGES 49
25.02 WAIVER OF JURY TRIAL 49
25.03 DEFAULT UNDER OTHER LEASE - INTENTIONALLY DELETED 49
25.04 OPTION 49
25.05 TENANT AUTHORITY 50
25.06 ENTIRE AGREEMENT 50
25.07 MODIFICATION OF LEASE FOR BENEFIT OF MORTGAGEE 50
25.08 EXCULPATION 50
25.09 ACCORD AND SATISFACTION 50
25.10 LANDLORD'S OBLIGATIONS ON SALE OF BUILDING 51
25.11 BINDING EFFECT 51
25.12 CAPTIONS 51
25.13 APPLICABLE LAW 51
25.14 ABANDONMENT 51
25.15 LANDLORD'S RIGHT TO PERFORM TENANT'S DUTIES 51
25.16 TEXAS DECEPTIVE TRADE PRACTICES ACT INAPPLICABLE 52
25.17 CLUB MEMBERSHIPS 52
25.18 ENTIRE AGREEMENT 52
25.19 NOTICE OF INDEMNIFICATION 53
OFFICE LEASE
ARTICLE ONE
BASIC LEASE PROVISIONS
1.01 BASIC LEASE PROVISIONS - In the event of any conflict between these Basic
Lease Provisions and any other Lease provision, such other Lease provision shall
control.
(1) BUILDING AND ADDRESS: One Xxxxx Center, 500 Dallas, Xxxxxxx, Xxxxx 00000.
(2) LANDLORD: Trizec Xxxxx Center Limited Partnership, a Delaware limited
partnership d/b/a TrizecHahn Xxxxx Center Limited Partnership.
(3) TENANT: Genesis Crude Oil, L.P., a Delaware limited partnership
(4) DATE OF LEASE: July 15, 1997.
(5) LENGTH OF LEASE TERM: Approximately eight (8) years.
(6) PROJECTED COMMENCEMENT DATE: November 1, 1997.
(7) PROJECTED EXPIRATION DATE: October 31, 2005.
(8) BASE RENT:
Period from/to Monthly Annually Rate/SF of Rentable Area
-------------- ------- -------- ------------------------
Lease Years 1-6 $28,625.42 $343,505 $14.50
Lease Years 7-8 $33,560.83 $402,730 $17.00
(9) PREMISES: Suite No. 2500. (subject to expansion as provided in EXHIBIT H)
23,690 SQUARE FEET OF RENTABLE AREA (approximate)
21,610 SQUARE FEET OF USABLE AREA (approximate)
(10) SECURITY DEPOSIT: None
(11) TENANT'S USE OF PREMISES: General office use and such other lawful
purposes as are consistent with uses of office space being made from time to
time by tenants in the Building in accordance with their written lease
agreements and no other purpose whatsoever, in compliance with all applicable
laws, and without unreasonably disturbing or interfering with any other tenant
or occupant of the Building. Without limiting the foregoing, Tenant may
maintain (for use by Tenant and its employees and invitees) (i) conference
and/or meeting facilities, (ii) libraries, (iii) coffee bars, (iv) support staff
facilities (including, without limitation, word processing and copy facilities),
(v) lunchrooms and kitchen facilities (including, without limitation, vending
machines and microwave ovens, subject, however, to Landlord's reasonable
approval of the location (and ventilation, as applicable) of said vending
machines and microwave ovens), and (vi) storage space incidental to general
office purposes.
1.02 ENUMERATION OF EXHIBITS
The exhibits and riders set forth below and attached to this Lease are
incorporated in this Lease by this reference:
EXHIBIT A Legal Description of Land
EXHIBIT B Plan of Premises
EXHIBIT C Workletter Agreement
EXHIBIT D Rules and Regulations
EXHIBIT E Parking
EXHIBIT F Renewal Option
EXHIBIT G Cancellation Options
EXHIBIT H Mandatory Expansion
EXHIBIT I Preferential Lease Right
EXHIBIT J License for Rooftop Communications Equipment
EXHIBIT K Janitorial Specifications
EXHIBIT L Subordination, Non-Disturbance and Attornment Agreement
1.03 DEFINITIONS
For purposes hereof, the following terms shall have the following meanings:
AFFILIATE: Any corporation or other business entity which is currently owned or
controlled by, owns or controls, or is under common ownership or control with
Tenant.
ALLOWANCE: "Allowance" shall mean an amount equal to the product of $24.00
times the number of square feet of Rentable Area of the Premises.
BUILDING: The "Building" shall mean the office building known as One Xxxxx
Center located upon the Land.
COMMENCEMENT DATE: The date specified in Section 1.01(6) as the Projected
Commencement Date, unless changed by operation of Article Two.
COMMON AREAS: All areas of the Real Property made available by Landlord from
time to time for the general common use or benefit of the tenants of the
Building, and their employees and invitees, or the public, as such areas
currently exist and as they may be changed from time to time. "Exterior Common
Areas" shall mean that portion of the Property (and other tracts of real
property comprising the multi-building project in the event the Building is
located in such a project) which are not located within the Building (or other
building in a multi-building project) and which are provided and maintained for
the common use and benefit of Landlord and all tenants of the Building (or
multi-building project) generally and the employees, invitees and licensees of
Landlord and such tenants; including without limitation, all parking areas
(enclosed or otherwise, including, without limitation, the Building Garage and
the Xxxxx Center Parking Garage) and all streets, sidewalks, walkways,
pedestrian tunnels and landscaped areas contained within the Project.
DECORATION: Tenant Alterations which do not require a building permit and which
do not involve any of the structural elements of the Building, or any of the
Building's systems, including, without limitation, its electrical, mechanical,
plumbing and security and life/safety systems.
DEFAULT RATE: The lesser of (i) a floating rate equal to four percent (4%)
above the prime rate of interest (or the equivalent) then being charged by Texas
Commerce Bank National Association, or its successor and (ii) the maximum non-
usurious interest rate permitted by law.
ENVIRONMENTAL LAWS: Any Law governing the use, storage, disposal or generation
of any Hazardous Material, including without limitation, the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended and
the Resource Conservation and Recovery Act of 1976, as amended.
EXPENSE STOP: The sum of the Operating Expenses (as grossed up in Section 4.04)
and Taxes (as defined in this Lease) per square foot of Rentable Area in the
Building for the calendar year 1997.
EXPIRATION DATE: The date specified in Section 1.01(7) unless changed by
operation of Article Two.
FORCE MAJEURE: Any accident, casualty, act of God, war or civil commotion,
strike or labor troubles, or any cause whatsoever beyond the reasonable control
of Landlord, including, but not limited to, energy shortages or governmental
preemption in connection with a national emergency, or by reason of government
laws or any rule, order or regulation of any department or subdivision thereof
or any governmental agency, or by reason of the conditions of supply and demand
which have been or are affected by war or other emergency.
HAZARDOUS MATERIAL: Such substances, material and wastes which are or become
regulated under any Environmental Law; or which are classified as hazardous or
toxic under any Environmental Law; and explosives and firearms, radioactive
material, asbestos, and polychlorinated byphenyls.
INDEMNITEES: Collectively, Landlord, any Mortgagee or ground lessor of the
Property, the property manager and the leasing manager for the Property and
their respective directors, officers, agents and employees.
INITIAL IMPROVEMENTS: "Initial Improvements", when used herein, shall mean
those improvements or remodeling to the Premises, if any, which Landlord and/or
Tenant shall agree to provide according to the Workletter attached hereto as
EXHIBIT C.
LAND: The parcels of real estate on which the Building is located, as more
particularly described in EXHIBIT A attached hereto.
LANDLORD DELAY: Any event or occurrence caused by Landlord which delays
Tenant's completion of the Initial Improvements, as more particularly described
in the Workletter.
LAWS: All laws, ordinances, rules, regulations and other requirements adopted
by any governmental body, or agency or department having jurisdiction over the
Property, the Premises or Tenant's activities at the Premises and any covenants,
conditions or restrictions of record which affect the Property.
LEASE: This instrument and all exhibits and riders attached hereto, as may be
amended from time to time.
LEASE YEAR: The twelve (12) month period beginning on the first day of the
first month following the Commencement Date (unless the Commencement Date is the
first day of a calendar month in which case beginning on the Commencement Date),
and each subsequent twelve (12) month, or shorter, period until the Expiration
Date.
MONTHLY BASE RENT: The monthly rent specified in Section 1.01(8).
MORTGAGEE: Any holder of a mortgage, deed of trust or other security instrument
encumbering the Property.
NATIONAL HOLIDAYS: New Year's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day and any other holiday recognized by tenants
occupying at least fifty percent (50%) of the Rentable Area of the Building
other than Amerada Xxxx Corp., but in no event more than one (1) additional
holiday per year.
OPERATING EXPENSES: Operating Expenses shall mean all direct and indirect costs
and expenses in each calendar year of operating, maintaining, repairing,
managing and owning the Property plus a portion of all such operating expenses
reasonably allocable to the Project, plus Taxes. Operating Expenses shall, also
include the amortization of capital improvements made: (i) primarily to reduce
Operating Expenses, or to comply with any laws or other governmental
requirements, provided, however, (x) Landlord will furnish Tenant with
documentation justifying Landlord's reasonable anticipation that such capital
expenditures will reduce or avoid increases in Operating Expenses and (y) the
maximum amount which may be amortized in any year shall be the amount which
Landlord reasonably estimates has been saved during that year as a result of the
reduction of Operating Expenses caused by the installation of such capital
items, or (ii) for replacements (as opposed to additions or new improvements) of
non-structural items located in the Common Areas of the Property required to
keep such areas in good condition; provided, all such permitted capital
expenditures (together with reasonable financing charges, if any) shall be
amortized for purposes of this Lease at a rate of ten percent (10%) per annum
over the shorter of: (x) their useful lives, or (y) the period during which the
reasonably estimated savings in Operating Expenses equals the expenditures.
The following shall be excluded from Operating Expenses:
(i) All costs and operating expenses incurred in connection with any parking
facilities and the repair, maintenance and operation thereof.
(ii) Depreciation, and except as set forth above, amortization.
(iii) Financing and refinancing costs, interest on debt or amortization
payments on any mortgage or mortgages, and rental under any ground or underlying
leases or lease together with all cost incidental to the items mentioned in this
subparagraph.
(iv) Costs of correcting defects in the original design or any subsequent
construction of the Building or the material used in the construction of the
Property (including latent defects in the original or any subsequent
construction of the Property or defects in the design of the Property) or in the
Property equipment or appurtenances thereto, except that for the purposes of
this subparagraph conditions (not occasioned by design or construction defects)
resulting from ordinary wear and tear and use shall not be deemed defects.
(v) The cost of any repair to remedy damage caused by or resulting from the
negligence of any other tenants in the Property, including their agents,
servants, employees or invitees, together with the costs and expenses incurred
by Landlord in attempting to recover such costs, to the extent specifically
reimbursed by such tenant, insurance, or otherwise (other than as part of
Operating Expenses).
(vi) Legal and other fees, leasing commissions, advertising expenses and other
similar costs incurred in connection with the leasing of the Building.
(vi) Costs incurred in renovating or otherwise improving or decorating or
redecorating space for new tenants or other existing tenants or occupants in the
Building or vacant space in the Building or costs related thereto (including
architectural and engineering fees); and costs incurred by Landlord that are
specifically reimbursed to Landlord by other tenants (other than as part of
Operating Expenses) in connection with maintenance or repair of above Building
standard condition improvements.
(viii) Any items not otherwise excluded to the extent Landlord is
specifically reimbursed by insurance or otherwise compensated (other than as
part of Operating Expenses), including direct reimbursement by any tenant other
than pursuant Operating Expense reimbursements or similar reimbursements less
the out-of-pocket cost of collection.
(ix) A bad debt loss, rent loss or reserves for bad debts or rent loss.
(x) The cost (or any amortization thereof) of any alteration, addition, change,
replacement, improvement, repair or other item which are properly capitalized
except as provided above.
(xi) Any item of cost which is includable in Operating Expenses, but which
represents an amount paid to an Affiliate of Landlord or an Affiliate of any
partner or shareholder of Landlord, or to the Property management company or an
Affiliate of the Property management company, to the extent the same is in
excess of the reasonable cost of said item or service in an arms length
transaction.
(xii) All interest or penalties incurred as a result of Landlord's failure
to pay any costs of Taxes as the same shall become due because of Landlord's
negligence.
(xiii) Costs or expenses incurred by Landlord which represent amounts spent
by Landlord or its agents in bad faith and an amount equal to any costs which
represent any payments received by Landlord or the Property manager, or the
employees or officers or either, from suppliers or goods or services as kick-
backs, finders fees, expediting fees or other similar dishonest fees.
(xiv) Any and all costs associated with the operation of the business of the
entity which constitutes Landlord; excluded items shall specifically include,
but shall not be limited to formation of the entity, internal accounting and
legal matters, including but not limited to preparation of tax returns and
financial statements and gathering of data thereof (except to the extent related
to Landlord's performance under this Lease and other leases, for example,
without limitation, matters relating to Operating Expenses), costs of defending
any lawsuits with any mortgagee (except as the actions of a tenant may be in
issue), costs of selling, syndication, financing, mortgaging or hypothecating
any of Landlord's interest in the Property, costs of any disputes between
Landlord and its employees (if any) not engaged in the operation of the
Property, and disputes between Landlord and managers of the Property.
(xv) Except for costs and expenses associated with management up to and
including the level of area manager (which area manager may be pro-rated with
other buildings), and except for costs and expenses properly allocable to the
Building, Landlord's home office costs and general overhead.
(xvi) Any cost or expense for services or amenities that are specifically
for the benefit of a particular tenant and that are of a nature not generally
provided to all tenants in the Building or for services or amenities generally
provided to all tenants in the Building but which are provided to any particular
tenant without additional charge or at a reduced charge (on a net effective
basis) than the charge imposed upon other tenants.
(xvii) Landlord's cost of electricity, incremental air conditioning and other
services sold to tenants for which Landlord is entitled to be reimbursed by
tenants (whether or not actually collected by Landlord) as a separate additional
charge or rental.
(xviii) Any expense incurred as a direct result of the negligence of Landlord,
its agents, servants, or employees or arising out of Landlord's negligent
failure to manage the Property consistently with the standard required by this
Lease to the extent that such expense would not have been incurred in the
absence of such negligence.
(xix) Any cost or expense incurred as a direct result of painting,
decorating, carpet shampooing, drapery cleaning, and wall washing within the
Rentable Areas of the Building to the extent such are not Building standard
services.
(xx) Costs incurred for the production and distribution of the tenant
newsletter, tenant perception surveys and the creation and implementation of
tenant retention programs to the extent the annual aggregate cost of all such
items exceeds $10,000 for the Building for calendar year 1997. Such amount may
increase in subsequent years based on increases in Landlord's costs for such
items but in no event shall any such increase for any calendar year exceed five
percent (5%) of the aggregate cost of such items for the previous year.
(xxi) Charitable donations attributable to the Building in excess of $10,000
per year.
(xxii) Costs which would duplicate costs theretofore included in Operating
Expenses.
(xxiii) Any other cost or expenditure which under generally accepted
accounting principles, consistently applied are considered capital expenditures
(except as provided above).
(xxiv) Any expense incurred by Landlord in connection with the management,
repair, maintenance or operation of any portion of the Building used solely for
retail purposes. To the extent that any amount, expense, or cost incurred by
Landlord is common to the office portion of the Building and the retail portion
of the Building, Landlord shall reasonably and equitably allocate such item so
that only the portion thereof allocated to the office portion of the Building
will be included in Operating Expenses. Absent manifest error or bad faith, the
allocation of such common expenses determined by Landlord will be binding upon
Tenant.
PREMISES: The space located in the Building, described in Section 1.01(9) and
depicted on EXHIBIT B attached hereto.
PROJECT: The Xxxxx Center project located on the tracts of land described on
EXHIBIT A, together with that certain elevated pedestrian walkway between the
building known as Three Xxxxx Center and the Xxxxx Center Parking Garage
("Skywalk") and the pedestrian tunnel between the Building and the Hyatt Regency
Hotel ("One Xxxxx Tunnel"), less (i) the Building, (ii) the building known as
Two Xxxxx Center, (iii) the building known as Three Xxxxx Center, (iv) the Xxxxx
Center Parking Garage, and (v) the Metropolitan Parking Garage, but including
such other improvements and amenities as may from time to time exist within the
land described on EXHIBIT A. Any such improvements and/or amenities may be
modified, altered or eliminated by Landlord and the other owners of property in
the Project in their sole discretion without incurring any liability to Tenant
or any other person or entity.
PROPERTY: The Building, the Land, all existing underground pedestrian tunnels
and above ground "sky bridge" pedestrian tunnels owned or controlled by Landlord
and servicing the Building and any such tunnels constructed in the future (the
"Building Tunnels") all Common Areas, any other public areas or facilities,
easements, corridors, lobbies, sidewalks, loading areas, driveways, landscaped
areas, skywalks, parking garages (limited to parking garages within or beneath
the Building or on the Land) connected to the Building or located on the Land,
and all parcels or tracts of land owned or leased by Landlord on which all or
any portion of the Building or any of the other foregoing is located, and any
fixtures, machinery, equipment, apparatus, systems and equipment, furniture and
other personal property located thereon or therein and used in connection
therewith. If the Building shall be part of a complex, development or group of
buildings or structures collectively owned or managed by Landlord. Landlord
hereby grants to Tenant, its employees, invitees and other visitors, a
nonexclusive license for the Term of this Lease and all extensions and renewals
thereof to use, in common with other tenants and visitors to the Building, and
in accordance with the Landlord's rules and regulations governing the Property
(i) the sidewalks and other Exterior Common Areas located on the Land; (ii) the
Building Tunnels; (iii) the lobbies, public corridors and elevator foyers of the
Building, and (vi) the Building service entrance and loading dock.
REAL PROPERTY: The Property excluding any personal property.
RENT: Collectively, Monthly Base Rent, Rent Adjustments and all other charges,
payments, late fees or other amounts required to be paid by Tenant under this
Lease.
RENTABLE AREA OF THE BUILDING (existing as of the date of this Lease): 993,238
square feet.
RENTABLE AREA OF THE PREMISES: The amount of square footage set forth in
Section 1.01(9), which represents the sum of (i) the "Usable Area" within the
Premises (i.e., the gross area enclosed by the surface of the exterior glass
walls, the mid-point of any walls separating portions of the Premises from those
of adjacent tenants, the slab penetration line of all walls separating the
Premises from Service Areas and the corridor side of walls separating the
Premises from Common Areas) plus (ii) a pro rata part of the Common Areas within
the Building, such proration to be based upon the ratio of the Usable Area
within the Premises to the total Usable Area within the Building existing as of
the date of this Lease, including the area encompassed by any columns or other
structural elements which provide support to the Premises and/or the Building.
Rentable Area shall not include any Service Areas.
RENT ADJUSTMENT: Any amounts owed by Tenant for payment of Operating Expenses.
The Rent Adjustments shall be determined and paid as provided in Article Four.
SECURITY DEPOSIT: The funds specified in Section 1.01(10), if any, deposited by
Tenant with Landlord as security for Tenant's performance of its obligations
under this Lease.
SERVICE AREAS: "Service Areas" shall mean those areas within the outside walls
used for building stairs, elevator shafts, flues, vents, stacks, pipe shafts and
other vertical penetrations (but shall not include any such areas for the
exclusive use of a particular tenant).
SHELL IMPROVEMENTS: "Shell Improvements" (to be provided by Landlord) shall
mean (i) lay-in acoustical ceiling grid; (ii) central air conditioning and
heating ducts and diffusers in a placement deemed typical by Landlord, (iii)
lay-in fluorescent light fixtures, in a placement deemed typical by Landlord
(Tenant shall be entitled to utilize all of the light fixtures now being stored
within the Premises (approximately 160 light fixtures) at no cost to Tenant;
provided any additional light fixtures required by Tenant shall be purchased at
Tenant's sole cost and expense), (iv) window xxxxx; (v) window mini-blinds (at
Landlord's cost), (vi) Base-building HVAC system (to the extent such HVAC system
is not in good working condition or is below Building standard, as reasonably
determined by Landlord's and Tenant's engineers, Landlord shall upgrade such
system to Building standard at Landlord's sole cost and expense (including
replacement of motors, and disconnects, as necessary) at some time during the
pendency of Tenant's construction of the Initial Improvements but in any event
on or prior to the Commencement Date and (vii) Floor 25 restrooms and drinking
fountains in current locations and quantities (Landlord hereby represents and
warrants that to the best of Landlord's actual current knowledge the Floor 25
restrooms and drinking fountains comply in all material respects with the "ADA"
(as defined herein) and the TABA (as defined herein) as such laws are
promulgated, interpreted and enforced as of the date hereof). All Shell
Improvements will be provided "AS-IS," in their current condition and placement.
SUBSTANTIALLY COMPLETE: The completion of the Initial Improvements, except for
minor insubstantial details of construction, decoration or mechanical
adjustments which remain to be done.
TAXES: All federal, state and local governmental taxes, assessments and charges
of every kind or nature, whether general, special, ordinary or extraordinary,
which Landlord shall pay or become obligated to pay because of or in connection
with the ownership, leasing, management, control or operation of the Property or
any of its components, or any personal property used in connection therewith,
which shall also include any rental or similar taxes levied in lieu of or in
addition to general real and/or personal property taxes. For purposes hereof,
Taxes for any year shall be Taxes which are assessed or become a lien during
such year, whether or not such taxes are billed and payable in a subsequent
calendar year. There shall be included in Taxes for any year the amount of all
fees, costs and expenses (including reasonable attorneys' fees) paid by Landlord
during such year in seeking or obtaining any refund or reduction of Taxes.
Taxes for any year shall be reduced by the net amount of any tax refund received
by Landlord attributable to such year. If a special assessment payable in
installments is levied against any part of the Property, Taxes for any year
shall include only the installment of such assessment and any interest payable
or paid during such year. Taxes shall not include any federal, state or local
inheritance taxes, general income taxes, gift or estate taxes, excess profit
taxes, franchise taxes, and/or capital gains taxes except that if a change
occurs in the method of taxation resulting in whole or in part in the
substitution of any such taxes, or any other assessment, for any Taxes as above
defined, such substituted taxes or assessments shall be included in the Taxes.
TENANT ALTERATIONS: Any alterations, improvements, additions, installations or
construction in or to the Premises or any Building systems serving the Premises
pursuant to Section 9.01, excluding Initial Improvements.
TENANT DELAY: Any event or occurrence caused by Tenant which delays Tenant's
completion of the Initial Improvements, as more particularly described in the
Workletter.
TERM: The term of this Lease commencing on the Commencement Date and expiring
on the Expiration Date.
TERMINATION DATE: The Expiration Date or such earlier date as this Lease
terminates or Tenant's right to possession of the Premises terminates.
WORK: The construction or installation of improvements to the Premises, as more
specifically described in the Workletter attached hereto as EXHIBIT C.
WORKLETTER: The Agreement regarding the manner of completion of the Initial
Improvements, attached hereto as EXHIBIT C.
ARTICLE TWO
PREMISES, TERM AND OTHER LEASE RIGHTS
2.01 LEASE OF PREMISES
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the
Premises for the Term and upon the conditions provided in this Lease. Landlord
shall deliver possession of the Premises to Tenant for Tenant's construction of
the Initial Improvements within five (5) business days following execution of
this Lease by both Landlord and Tenant. Tenant's possession of same shall be
subject to all of the terms, covenants, and conditions of this Lease (except
with respect to the payment of Rent). In any event, Tenant's obligation to pay
Rent shall not commence until the Projected Commencement Date (November 1,
1997). If Landlord fails to deliver possession of the Premises to Tenant within
thirty (30) days (subject to events of force majeure) following execution of
this Lease by both Landlord and Tenant, Tenant may terminate this Lease upon
written notice to Landlord, in which event neither party shall have any further
liability or obligations hereunder.
2.02 TERM
(a) The Commencement Date shall be the date determined as follows:
(i) If the Initial Improvements are Substantially Complete on or before the
Projected Commencement Date then on the date which is the earlier to occur of:
(x) the Projected Commencement Date (November 1, 1997); or
(y) the date Tenant first occupies all or part of the Premises for the conduct
of business; or
(ii) If the Initial Improvements are not Substantially Complete by the Projected
Commencement Date, then on the Projected Commencement Date.
(b) Within thirty (30) days following the occurrence of the Commencement Date,
Landlord, through its property manager, and Tenant shall enter into an agreement
confirming the Commencement Date and the Expiration Date. If Tenant fails to
enter into such agreement, then the Commencement Date and the Expiration Date
shall be the dates designated by Landlord in such agreement.
2.03 FAILURE TO GIVE POSSESSION
If the Landlord shall be unable to give possession of the Premises on the
Projected Commencement Date by reason of the following: (a) the Building has not
been sufficiently completed to make the Premises ready for occupancy, (b) the
Initial Improvements are not Substantially Complete, or (c) for any other
reason, then Landlord shall not be subject to any liability for the failure to
give possession on said date. Under such circumstances the rent reserved and
covenanted to be paid herein shall not commence until the Premises are made
available to Tenant by Landlord, and no such failure to give possession on the
Projected Commencement Date shall affect the validity of this Lease or the
obligations of the Tenant hereunder. At the option of Landlord, to be exercised
within thirty (30) days of the delayed delivery of possession to Tenant, the
Lease shall be amended so that the term shall be extended by the period of time
possession is delayed. The said Premises shall be deemed to be ready for
Tenant's occupancy in the event the Initial Improvements are Substantially
Complete, or if the delay in the availability of the Premises for occupancy
shall be due to any Tenant Delay and/or default on the part of Tenant and/or its
subtenant or subtenants. In the event of any dispute as to whether the Initial
Improvements are Substantially Complete, the mutual agreement of Landlord's and
Tenant's architect shall be final and binding on the parties.
2.04 CONDITION OF PREMISES
Tenant shall notify Landlord in writing within thirty (30) days after the later
of (a) Substantial Completion of the Initial Improvements, or (b) when Tenant
takes possession of the Premises, of any defects in the Premises claimed by
Tenant or in the materials or workmanship furnished by Landlord in completing
the Initial Improvements. Except for defects stated in such notice, Tenant
shall be conclusively deemed to have accepted the Premises "AS IS" and "WITH ALL
FAULTS" in the condition existing on the date Tenant first takes possession, and
to have waived all claims relating to the condition of the Premises. Landlord
shall proceed diligently to correct the defects stated in such notice unless
Landlord disputes the existence of any such defects. In the event of any
dispute as to the existence of any such defects, the mutual agreement of
Landlord's and Tenant's architect shall be final and binding on the parties.
No agreement of Landlord to alter, remodel, decorate, clean or improve the
Premises or the Building and no representation regarding the condition of the
Premises or the Building has been made by or on behalf of Landlord to Tenant,
except as may be specifically stated in this Lease or in the Workletter.
2.05 RENEWAL OPTION
Tenant shall have the option to renew the Term of this Lease in accordance with
the terms and conditions of EXHIBIT F attached hereto and made a part hereof for
all purposes.
2.06 CANCELLATION OPTIONS
Landlord and Tenant each shall have the option to cancel the Term of this Lease
prior to the Expiration Date in accordance with the terms and conditions of
EXHIBIT G attached hereto and made a part hereof for all purposes.
2.07 MANDATORY EXPANSION
Tenant must lease additional space on Floor 25 of the Building in accordance
with the terms and conditions of EXHIBIT H attached hereto and made a part
hereof for all purposes.
2.08 PREFERENTIAL LEASE RIGHT
Tenant shall have a preferential right to lease additional space on Floor 26 of
the Building in accordance with the terms and conditions of EXHIBIT I attached
hereto and made a part hereof for all purposes.
2.09 LICENSE FOR ROOFTOP COMMUNICATIONS EQUIPMENT
Tenant shall also have a non-exclusive license during the Term of this Lease to
occupy certain space on the roof of the Building for the installation, operation
and maintenance of one antennae (not to exceed six feet (6') in height and one
one meter satellite dish and related equipment in accordance with the terms and
conditions of EXHIBIT J attached hereto and made a part hereof for all purposes.
Landlord and Tenant will execute such agreement prior to installation of such
equipment. Tenant may elect to utilize such license at any time during the Term
hereof, subject to availability of space on the roof at such time for such
purposes (in Landlord's sole discretion) and Landlord's approval of the design,
location and installation of equipment, in accordance with EXHIBIT J.
ARTICLE THREE
RENT
Tenant agrees to pay to Landlord at the property management office specified in
Article 24, or to such other persons, or at such other places designated by
Landlord, without any prior demand therefor in immediately available funds and
without any deduction whatsoever, Rent, including, without limitation, Monthly
Base Rent and Rent Adjustments in accordance with Article Four, during the Term.
Monthly Base Rent shall be paid monthly in advance on the first day of each
month of the Term, except that the first installment of Monthly Base Rent shall
be paid by Tenant to Landlord concurrently with Tenant's execution of this
Lease. Monthly Base Rent shall be prorated for partial months within the Term.
Unpaid Rent shall bear interest at the Default Rate from the date due until paid
(but if Tenant pays Rent prior to the end of the fifth (5th) business day
following the date due, Tenant shall not be liable for any such interest
payment). Tenant's covenant to pay Rent shall be independent of every other
covenant in this Lease.
ARTICLE FOUR
RENT ADJUSTMENT
4.01 RENT ADJUSTMENT
The Base Rent payable hereunder shall be adjusted ("Rent Adjustment") from time
to time in accordance with this Article Four:
Tenant's Base Rent is based, in part, upon the estimate that annual Operating
Expenses will be equal to the Expense Stop. During the Term, Tenant shall pay
as a Rent Adjustment hereunder an amount (per each square foot of Rentable Area
within the Premises) equal to the excess ("Excess") from time to time of
Operating Expenses per square foot of Rentable Area in the Building over the
Expense Stop. Landlord may collect such additional Base Rent in monthly
installments based on Landlord's estimated Excess for the calendar year in
question. Landlord shall also have the option to make one good faith revised
estimate of the Excess during each calendar year (or remainder thereof, if
applicable) and, upon thirty (30) days' written notice to Tenant, may require
the monthly payment of Base Rent to be adjusted in accordance with such revised
estimate. Any amounts paid based on any such estimate shall be subject to
adjustment pursuant to Section 4.02 below when Operating Expenses are available
for such calendar year.
4.02 PROCEDURE
The following additional provisions shall apply to Rent Adjustments per Section
4.01:
(a) By April 1 of each calendar year during Tenant's occupancy, or as soon
thereafter as practical, Landlord shall furnish to Tenant a statement
("Landlord's Statement") of Landlord's Operating Expenses for the previous
calendar year. If for any calendar year additional Base Rent was collected for
the prior year, as a result of Landlord's estimate of Operating Expenses, in
excess of the additional Base Rent due during such prior year, then Landlord
shall refund to Tenant any over payment (or at Landlord's option, apply such
amount against rentals due hereunder) within thirty (30) days following Tenant's
receipt of Landlord's statement. Likewise, Tenant shall pay to Landlord, within
thirty (30) days following Tenant's receipt of Landlord's Statement, any
underpayment with respect to the prior year. In no event shall Operating
Expenses per square foot of Rentable Area within the Building be deemed to be
less than the Expense Stop, it being the intent of Landlord and Tenant that
Tenant shall at all times be responsible for the payment of, and shall pay, not
less than the amount of Base Rent for the applicable period (before adjustment)
specified in this Lease.
(b) In the event that the Term commences on a day other than January 1 or
terminates on a day other than December 31, the Excess for that part of the
first (1st) calendar year or last calendar year during the Term shall be
determined as follows:
(i) The Expense Stop shall be prorated based upon the number of months in such
partial calendar year. With respect to any partial calendar month occurring
during such partial calendar year, the Expense Stop shall also be prorated based
upon the number of days in that partial calendar month.
(ii) The Excess, if any, for the applicable partial calendar year shall then be
the amount by which (x) actual Operating Expenses per square foot of Rentable
Area in the Building for such calendar year, prorated based upon the number of
months and days in the applicable partial calendar year, exceed (y) the Expense
Stop, as prorated pursuant to the provisions of this Subsection 4.02(b).
(iii) With respect to the proration for the first (1st) calendar year, in
the event that Landlord discovers Landlord's estimate of the Operating Expenses
to be incurred during such partial calendar year exceeds the Expense Stop, as
prorated pursuant to the provisions of this subsection 4.02(b), Landlord may
revise its estimate and, upon thirty (30) days' prior written notice to Tenant,
may require the Monthly Base Rent occurring during such partial calendar year to
be adjusted in accordance with Landlord's revised estimate. Landlord may not
revise its estimate more than once in any calendar year
4.03 BOOKS AND RECORDS
Landlord shall maintain books and records showing Operating Expenses in
accordance with sound accounting and management practices, consistently applied.
Tenant's employees or its third-party representative (which third-party
representative shall be a certified public accountant licensed to do business in
the State of Texas) shall have the right, for a period of ninety (90) days
following the date upon which Landlord's Statement is delivered to Tenant, to
examine the Landlord's books and records with respect to the items in the
foregoing statement of Operating Expenses during normal business hours, upon
written notice, delivered at least ten (10) business days in advance. No
contingency-fee based audits shall be permitted unless (a) such auditor
affirmatively covenants in writing to Landlord that it will not solicit, contact
or accept engagement from other tenants of the Building until January 1st of the
year following the year in which Landlord, Tenant and such consultant enter into
a written agreement either (i) confirming such audit results or (ii) resolving
any dispute with respect to such audit (but in no event shall Tenant be liable
to Landlord for a breach by an auditor of such covenant with Landlord); (b) all
copies of Landlord's records shall be made at Tenant's or such auditor's expense
and Landlord shall only be obligated to provide the reasonable, non-exclusive
use of its copier(s) to such auditor; (c) Tenant may not assign any claim it
might have against Landlord to such auditor or any third party; (c) Tenant
retains active control of the audit process and any claim decisions; and (e) the
financial accounting components of any such audit shall be conducted and
determined by certified public accountants licensed in the State of Texas. If
Tenant does not object in writing to Landlord's Statement within thirty (30)
days following the date of Tenant's audit, specifying the nature of the item in
dispute and the reasons therefor, then Landlord's Statement shall be considered
final and accepted by Tenant. Any amount due to the Landlord as shown on
Landlord's Statement, whether or not disputed by Tenant as provided herein shall
be paid by Tenant when due as provided above, without prejudice to any such
written exception, pending resolution thereof. Any examination by Tenant or any
third-party audit by Tenant's representative shall be at Tenant's expense. If
the third-party audit reflects that Operating Expenses have been overstated by
more than three percent (3%), Landlord shall reimburse Tenant for the reasonable
cost of such audit
4.04 PARTIAL OCCUPANCY
Notwithstanding any language in the Lease or in this Article Four seemingly to
the contrary, Landlord shall determine and estimate Operating Expenses for any
calendar year within the Term by increasing the variable components of Operating
Expenses to the amount which Landlord projects (a) would have been incurred had
the Building been occupied to the extent of ninety-five percent (95%) of the
Rentable Area therein (if actual occupancy is less than ninety-five percent
(95%)) or (b) has been incurred based on the percentage of the Rentable Area of
the Building actually occupied (if actual occupancy is more than ninety-five
percent (95%)) during all of the applicable calendar year. In such event, the
term "Operating Expenses", as used in this Article Four and in the Lease, shall
include (i) the actual Operating Expenses incurred during any portion of such
calendar year in which the Building is occupied to the extent of ninety-five
percent (95%) or more of the Rentable Area therein, plus (ii) the Operating
Expenses which would have been incurred had the Building been occupied to the
extent of ninety-five percent (95%) of the Rentable Area therein during any
portion of such calendar year in which the actual occupancy of the Building is
below ninety-five percent (95%); and Landlord shall have the option of making
such estimate in advance for any upcoming calendar year.
ARTICLE FIVE
SECURITY DEPOSIT
[INTENTIONALLY DELETED]
ARTICLE SIX
SERVICES
6.01 LANDLORD'S GENERAL SERVICES
So long as the Lease is in full force and effect and Tenant has paid all Rent
then due, Landlord shall furnish the following services:
(a) Central heat, ventilation, and air conditioning in season within tolerances
normal for buildings similar to the Building located in the Xxxxxxx Xxxxxxxx
Xxxxxxxx xx Xxxxxxx, Xxxxx, Monday through Friday from 7:00 a.m. to 7:00 p.m.;
and Saturday, from 7:00 a.m. to 1:00 p.m., excluding National Holidays. The
foregoing notwithstanding, the design specifications for the Building's central
heat, ventilation, and air conditioning levels (the "HVAC Specifications"), upon
which such levels of services for the Building are based on the following: (i)
density factors of not more than one (1) person per one hundred fifty (150)
square feet of Usable Area nor more than 3.5 xxxxx of electrical heat load per
Usable Area of each area served, inside space conditions of 75deg F. dry bulb
and 63% relative humidity when outside conditions are 95deg F. dry bulb and
80deg wet bulb; (ii) the total scheduled air conditioning capacity for each
floor of the Premises is no greater than 74.8 tons; (iii) that said 74.8 tons
of air conditioning will air condition each such floor to 75deg F.D.B. ambient
air at the following interior load conditions: (x) 000 xxxxxx xxxx xx Xxxxxx
Xxxx per person; (y) 2 xxxxx/per square foot of Usable Area lighting loan; and
(z) 1.5 xxxxx/per square foot of Usable Area power load; and (iv) with
respect to ventilation, is further based upon the following criteria: outdoor
air will be added to the Premises at an approximate rate of 0.12 cubic feet
per minute per square foot of floor area. All additional central heat,
ventilation, and air conditioning required (if any) to heat,
ventilate, or air condition the
Premises, or that is otherwise requested by the Tenant for the Premises which
requires additional equipment and/or which results in Landlord providing
additional hot or chilled water (as the case may be) to service such additional
requirements, shall be metered at Tenant's sole cost and expense, billed to the
Tenant on a monthly basis and paid for by Tenant promptly upon receipt of an
invoice therefor. Such additional hot and chilled water consumption
necessitated pursuant to the foregoing will be determined as measured by BTU
meters and submeters installed (at Tenant's cost as aforesaid) and further
maintained in good order and repair all at Tenant's expense;
(b) tempered and cold water for use in lavatories in common with other tenants
from the regular supply of the Building;
(c) customary cleaning and janitorial services in the Premises five (5) days
per week, excluding National Holidays in accordance with the standards set forth
in EXHIBIT K attached hereto and made a part hereof for all purposes;
(d) washing of the outside windows in the Premises weather permitting at
intervals determined by Landlord but at least twice per year;
(e) automatic passenger elevator service twenty-four (24) hours per day, seven
(7) days per week in common with other tenants of the Building and their
contractors, agents and visitors (subject to after-hours reductions in service,
provided at least two (2) passenger elevators in the elevator bank serving the
Premises shall be made available for use by tenants of the Building after-
hours), and freight elevator service subject to reasonable scheduling by
Landlord;
(f) all Building standard fluorescent bulb and ballast replacement in the
Premises necessary to maintain the lighting provided as a part of the Shell
Improvements and fluorescent and incandescent bulb and ballast replacement in
the Common Areas and Service Areas;
(g) routine maintenance and electric lighting service for all Common Areas and
Service Areas of the Building in the manner and to the extent deemed by Landlord
to be standard and otherwise consistent with the standards of other first-class
office buildings in the Xxxxxxx Xxxxxxxx Xxxxxxxx xx Xxxxxxx, Xxxxx; and
(h) on-site security personnel and equipment for the Property twenty-four (24)
hours per day, seven (7) days per week; provided, however, that Tenant agrees
that Landlord shall not be responsible for the adequacy or effectiveness of such
security provided that (i) Landlord has exercised reasonable care in the
selection of the security contractor and equipment, and (ii) the scope and
extent of the security services contracted for by Landlord are in keeping with
the standards of other first-class office buildings in the Xxxxxxx Xxxxxxxx
Xxxxxxxx xx Xxxxxxx, Xxxxx.
6.02 ELECTRICAL SERVICES
Tenant's use of electrical services furnished by Landlord shall be subject to
the following:
(a) Landlord will provide the necessary facilities to supply twenty-four (24)
hours per day, seven (7) days per week (i) two (2) xxxxx per square foot of
Usable Area within the Premises, at 277 volts, for Tenant's fluorescent lighting
and (ii) four (4) xxxxx per square foot of Usable Area within the Premises, at
120 volts, for Tenant's receptacle/equipment loads (excluding Tenant's dedicated
circuits). Collectively, Tenant's lighting and receptacle/equipment shall not
have an electrical design load greater than an average of six (6) xxxxx per
square foot of Usable Area within the Premises ("Standard Building Capacity").
The electrical costs component of Operating Expenses is calculated on the basis
of the Standard Building Capacity. Any electrical usage in the Premises and the
Expansion Premises (as defined in EXHIBIT H hereto) in excess of .34 kilowatt
hours per square foot of Usable Area in the Premises per month shall be
considered to be in excess of Standard Building Capacity and shall be separately
metered and billed to Tenant on a monthly basis. Notwithstanding the above,
high voltage power used for Building standard lighting will not be metered
unless the Building standard allowance for lighting (defined as one (1) 2x4
parabolic lighting fixture for each eighty (80) square feet of Usable Area
within the Premises) is exceeded.
(b) The electrical facilities in the Building available for Tenant's use are
(i) 277/480 volts, 3 phase, for large equipment loads and fluorescent lighting;
and (ii) 120/208 volts, 3 phase, for small equipment loads and incandescent
lighting. Tenant shall notify Landlord, in writing, of any equipment (other
than personal (as opposed to mainframe) computers and copier machines) that has
a rated electrical load greater than 500 xxxxx and/or that requires a service
voltage other than 120 volts, and Landlord's written approval (not to be
unreasonably withheld) shall be required with respect to the installation of any
such high electrical consumption equipment in the Premises.
(c) Tenant shall pay for all costs of meters, submeters, wiring, risers,
transformers, electrical panels, air conditioning and other items required by
Landlord, in Landlord's reasonable discretion, to accommodate Tenant's design
loads and capacities that exceed Standard Building Capacity, including, without
limitation, the installation and maintenance thereof. Notwithstanding the
foregoing, Landlord may refuse to install and withhold consent for Tenant's
installation of any wiring, risers, transformers, electrical panels, or air
conditioning if, in Landlord's reasonable judgment, the same are not necessary
or would cause damage or injury to the Building or the Premises or cause or
create a dangerous or hazardous condition or entail excessive or unreasonable
alterations or repairs to the Building or the Premises, or would interfere with
or create or constitute a disturbance to other tenants or occupants of the
Building. In no event shall Landlord incur any liability for Landlord's refusal
to install, or withholding of consent for Tenant's installation of, any such
electrical facility or equipment.
(d) Tenant shall pay to Landlord, upon demand, the cost of the consumption of
electrical service in excess of the Standard Building Capacity at rates
determined by Landlord based on Landlord's actual cost therefor and otherwise in
accordance with any applicable laws.
(e) Landlord may, at its option, upon not less than thirty (30) days' prior
written notice to Tenant, discontinue the availability of such extraordinary
electrical service. If Landlord gives any such notice, Tenant will contract
directly with the applicable public utility for the supplying of such electrical
service to the Premises.
6.03 ADDITIONAL AND AFTER-HOUR SERVICES
At Tenant's request, Landlord shall furnish additional quantities of any of the
services or utilities specified in Section 6.01, if Landlord can reasonably do
so, on the terms set forth herein. Tenant may order after-hours HVAC service
instantaneously by a coded entry over a touch-tone phone. The charge for after-
hours HVAC service is currently $25.00 per handler per hour (subject to change
from time to time based on Landlord's costs therefor) and shall be billed to
Tenant monthly. For other services or utilities requested by Tenant and
furnished by Landlord, Tenant shall pay to Landlord as a charge therefor
Landlord's prevailing rates for such services and utilities. If Tenant shall
fail to make any such payment, Landlord may, upon notice to Tenant and in
addition to Landlord's other remedies under this Lease, discontinue any or all
of such additional services.
6.04 TELEPHONE SERVICES
All telegraph, telephone, and electric connections which Tenant may desire shall
be first approved by Landlord in writing (such approval not to be unreasonably
withheld, conditioned or delayed), before the same are installed, and the
location of all wires and the work in connection therewith shall be performed by
contractors approved by Landlord and shall be subject to the direction of
Landlord. Landlord reserves the right to designate and control the entity or
entities providing telephone or other communication cable installation, repair
and maintenance in the Building and to restrict and control access to telephone
cabinets. In the event Landlord designates a particular vendor or vendors to
provide such cable installation, repair and maintenance for the Building, Tenant
agrees to abide by and participate in such program. Tenant shall be responsible
for and shall pay all costs incurred in connection with the installation of
telephone cables and related wiring in the Premises, including, without
limitation, any hook-up, access and maintenance fees related to the installation
of such wires and cables in the Premises and the commencement of service
therein, and the maintenance thereafter of such wire and cables; and there shall
be included in Operating Expenses for the Building all installation, hook-up or
maintenance costs incurred by Landlord in connection with telephone cables and
related wiring in the Building which are not allocable to any individual users
of such service but are allocable to the Building generally. If Tenant fails to
maintain all telephone cables and related wiring in the Premises and such
failure affects or interferes with the operation or maintenance of any other
telephone cables or related wiring in the Building, Landlord or any vendor hired
by Landlord may enter into and upon the Premises forthwith and perform such
repairs, restorations or alterations as Landlord deems necessary in order to
eliminate any such interference (and Landlord may recover from Tenant all of
Landlord's costs in connection therewith). Upon the Termination Date, Tenant
agrees to remove all telephone cables and related wiring installed by Tenant for
and during Tenant's occupancy, which Landlord shall request in writing that
Tenant remove. Tenant agrees that neither Landlord nor any of its agents or
employees shall be liable to Tenant, or any of Tenant's employees, agents,
customers or invitees or anyone claiming through, by or under Tenant, for any
damages, injuries, losses, expenses, claims or causes of action because of any
interruption, diminution, delay or discontinuance at any time for any reason in
the furnishing of any telephone service to the Premises and the Building.
6.05 DELAYS IN FURNISHING SERVICES
Tenant agrees that Landlord shall not be liable to Tenant for damages or
otherwise, for any failure to furnish, or a delay in furnishing, any service
when such failure or delay is occasioned, in whole or in part, by repairs,
improvements or mechanical breakdowns by the act or default of Tenant or other
parties or by an event of Force Majeure. No interruption or malfunction of any
utility service shall constitute an eviction or disturbance of Tenant's use or
possession of the Premises or a breach by Landlord of any of Landlord's
obligations hereunder or render Landlord liable or responsible to Tenant for any
loss or damage which Tenant may sustain or incur if either the quantity or
character of any utility service is changed or is no longer available to or is
no longer suitable for Tenant's requirements or entitle Tenant to be relieved
from any of Tenant's obligations hereunder, including, without limitation, the
obligation to pay Rent, or grant Tenant any right to set-off, abatement, or
recoupment. Landlord reserves the right, upon not less than ninety (90) days
prior written notice to Tenant, to discontinue the availability of electrical
service to all tenants of the Building. If Landlord elects such option, Tenant
shall contract directly with the utility service provider for the continuance of
service to the Premises. However, Landlord shall not have the right to
discontinue such service if the utility service provider furnishing such service
will not contract with Tenant for the supplying of such service. Landlord shall
at the written request of Tenant make all necessary arrangements with the
utility service provider in connection with obtaining such utility service to
the Premises. If Landlord discontinues providing electricity to all tenants of
the Building for any reason other than Landlord's reasonable anticipation that
tenants will realize costs savings as a result of contracting directly with
utility service provider(s) for electricity, Landlord will pay all conversion
charges relating thereto. Otherwise, such conversion costs shall be considered
an item of Operating Expense, for which Tenant shall be responsible for its
proportionate share thereof. In addition, during the period Tenant actually
receives electrical service directly from the utility service provider, Tenant's
pro rata share of Operating Expenses shall be reduced proportionately to account
for the cessation of Building standard electrical service to the Premises. The
foregoing shall not, however, prohibit Landlord from escalating Operating
Expenses with respect to the increased cost of electrical services furnished to
the Common Areas and Service Areas. Failure to any extent to make available, or
any slowdown, stoppage, or interruption of, the specified utility services (a
"Service Failure") resulting from any cause, including, without limitation,
Landlord's compliance with any voluntary or similar governmental or business
guidelines now or hereafter published or any requirements now or hereafter
established by any governmental agency, board, or bureau having jurisdiction
over the operation of the Building or other causes beyond the reasonable control
of Landlord, shall not render Landlord liable in any respect for damages to
either persons, property, or business, nor be construed as an eviction of Tenant
or work an abatement of Rent, nor relieve Tenant of Tenant's obligations for
fulfillment of any covenant or agreement hereof. Should any equipment or
machinery furnished by Landlord break down or for any cause cease to function
properly, Landlord shall use reasonable diligence to repair same promptly, but
except as provided below, Tenant shall have no claim for abatement of Rent or
damages for any Service Failure. Notwithstanding the foregoing, if any Service
Failure with respect to an Essential Service (hereinafter defined) renders any
of the Premises unsuitable for the normal conduct of Tenant's business therefrom
(as determined by both Landlord and Tenant in good faith) which was not caused
by a fire or other casualty, then:
(a) if the Premises or any portion thereof remains in an unsuitable condition
for three (3) consecutive business days after Tenant gives written notice
thereof to Landlord, then Rent shall thereafter xxxxx for the portion of the
Premises so rendered unsuitable until such unsuitability is removed;
(b) if such Service Failure resulted from any cause within the reasonable
control of Landlord, and fifty percent (50%) or more of the Rentable Area of the
Premises remains in an unsuitable condition for one hundred twenty (120)
consecutive days after Tenant gives written notice thereof to Landlord, Tenant
may terminate this Lease by giving written notice thereof to Landlord at any
time thereafter but prior to the date that the affected portion(s) of the
Premises are returned to a condition reasonably suitable for the normal conduct
of Tenant's business; and
(c) fifty percent (50%) or more of the Rentable Area of the Premises remains in
an unsuitable condition due to any such Service Failure (whether or not
resulting from a cause within Landlord's reasonable control) for one hundred
eighty (180) consecutive days after Tenant gives written notice thereof to
Landlord, Tenant may terminate this Lease by giving written notice thereof to
Landlord at any time thereafter but prior to the date that the affected
portion(s) of the Premises are returned to a condition reasonably suitable for
the normal conduct of Tenant's business. Notwithstanding the foregoing, in no
event shall Tenant have any Lease termination rights with respect to any Service
Failure which was caused primarily by the negligence or willful misconduct of
Tenant, or by an employee, agent, or contractor of Tenant.
The foregoing Rent abatement and termination rights shall be Tenant's sole
recourse in the event of a Service Failure for an Essential Service. Landlord
in no event shall be liable for damages by reason of loss of profits, business
interruption or other consequential damages. The term "Essential Service" as
used herein means any one or more of the following services: HVAC, electricity,
water and/or elevator service or the severing or damage by Landlord to Tenant's
telephone lines and/or computer cabling or the cessation or interruption of
Tenant's use of the Building chase by Tenant for telephone lines and computer
cabling (subject to reasonable limitations on Tenant's use of the Building chase
in common with other tenants of the Building).
ARTICLE SEVEN
POSSESSION, USE AND CONDITION OF PREMISES
7.01 POSSESSION AND USE OF PREMISES
(a) Tenant shall be entitled to possession of the Premises for the purposes of
conducting business therefrom on the Commencement Date. Tenant shall occupy and
use the Premises only for the uses specified in Section 1.01(11). Tenant shall
not occupy or use the Premises (or permit the use or occupancy of the Premises)
for any purpose or in any manner which: (i) is unlawful or in violation of any
Law or Environmental Law; (ii) may be dangerous to persons or property or which
may increase the cost of, or invalidate, any policy of insurance carried on the
Building or covering its operations; (iii) is contrary to or prohibited by the
terms and conditions of this Lease or the rules of the Building set forth in
Article Eighteen; or (iv) would tend to create or constitute a nuisance.
(b) Tenant and Landlord shall each comply with all Environmental Laws
concerning the proper storage, handling and disposal of any Hazardous Material
with respect to the Property. Tenant shall not generate, store, handle or
dispose of any Hazardous Material in, on, or about the Property without the
prior written consent of Landlord. In the event that Tenant is notified of any
investigation or violation of any Environmental Law arising from Tenant's
activities at the Premises, Tenant shall immediately deliver to Landlord a copy
of such notice. In such event or in the event Landlord reasonably believes that
a violation of Environmental Law exists, Landlord may conduct such tests and
studies relating to compliance by Tenant with Environmental Laws or the alleged
presence of Hazardous Materials upon the Premises as Landlord deems desirable,
all of which shall be completed at Tenant's expense if the violation is
confirmed by such tests to have been caused by, or attributable to Tenant or its
employees, agents, contractors, or invitees. Landlord's inspection and testing
rights are for Landlord's own protection only, and Landlord has not, and shall
not be deemed to have assumed any responsibility to Tenant or any other party
for compliance with Environmental Laws, as a result of the exercise, or
non-exercise of such rights. Tenant shall indemnify, defend, protect and hold
harmless the Indemnitees from any and all loss, claim, expense, liability and
cost (including attorneys' fees) arising out of or in any way related to the
presence of any Hazardous Material introduced to the Premises during the Term by
Tenant or its employees, agents, contractors or invitees. If any Hazardous
Material is released, discharged or disposed of on or about the Property and
such release, discharge or disposal is not caused by Tenant or other occupants
of the Premises, or their employees, agents or contractors, such release,
discharge or disposal shall be deemed casualty damage under Article Fourteen to
the extent that the Premises are affected thereby; in such case, Landlord and
Tenant shall have the obligations and rights respecting such casualty damage
provided under such Article.
(c) Landlord and Tenant acknowledge that the Americans With Disabilities Act of
1990 (42 U.S.C. 12101 et seq.) and regulations and guidelines promulgated
thereunder, as all of the same may be amended and supplemented from time to time
(collectively referred to herein as the "ADA") establish requirements for
business operations, accessibility and barrier removal, and that such
requirements may or may not apply to the Premises and the Building depending on,
among other things: (i) whether Tenant's business is deemed a "public
accommodation" or "commercial facility", (ii) whether such requirements are
"readily achievable", and (iii) whether a given alteration affects a "primary
function area" or triggers "path of travel" requirements.
The parties hereby agree that: (i) Landlord shall be responsible for
implementing ADA Title III compliance in the Common Areas (and with respect to
the existing restrooms and drinking fountains located on Floor 25) as part of
Operating Expenses, except as provided below, (ii) Tenant shall be responsible
for ADA Title III compliance in the Premises, including any leasehold
improvements or other work to be performed in the Premises under or in
connection with this Lease, (iii) Landlord may perform, or require that Tenant
perform, and Tenant shall be responsible for the cost of, ADA Title III "path of
travel" requirements triggered by alterations in the Premises, and (iv) Landlord
may perform, or require Tenant to perform, and Tenant shall be responsible for
the cost of, ADA Title III compliance in the Common Areas necessitated by the
Building being deemed to be a "public accommodation" instead of a "commercial
facility" as a result of Tenant's use of the Premises. Tenant shall be solely
responsible for requirements under Title I of the ADA relating to Tenant's
employees within the Premises.
(d) Landlord and Tenant acknowledge that the Texas Architectural Barriers Act,
Art. 9102, Tex. Civ. Stat. Xxx. (1994), and regulations and guidelines
promulgated thereunder, as all of the same may be amended and supplemented from
time to time (collectively referred to herein as "TABA") establish requirements
for accessibility and barrier removal. The parties hereby agree that: (i)
Tenant shall be responsible for compliance with TABA, including, without
limitation, submission (through the Property manager) of required plans and
documents to the State of Texas for approval of accessibility design features,
in connection with the work set forth in the Workletter attached hereto, if any,
and any other construction or alterations to the Premises during the Term,
except that Landlord agrees to be responsible for such compliance in connection
with any work done by Landlord pursuant to Section 8.01 hereof; and (ii)
Landlord shall be responsible for compliance with TABA, including, without
limitation, submission of required plans and documents to the State of Texas for
approval of accessibility design features, in connection with construction or
alterations to the Common Areas, except that Tenant agrees to be responsible for
such compliance in connection with any such work which may be necessitated
solely as a result of Tenant's use of the Premises.
7.02 LANDLORD ACCESS TO PREMISES
(a) Tenant shall permit Landlord to erect, use and maintain pipes, ducts,
wiring and conduits in and through the Premises, so long as Tenant's use, layout
or design of the Premises is not materially affected or altered. Landlord or
Landlord's agents shall have the right to enter upon the Premises in the event
of an emergency, or to inspect the Premises, to perform janitorial and other
services, to conduct safety and other testing in the Premises and to make such
repairs, alterations, improvements or additions to the Premises or the Building
as Landlord may deem necessary or desirable. Janitorial and cleaning services
shall be performed after normal business hours. Any entry or work by Landlord
may be during normal business hours and Landlord shall use reasonable efforts to
ensure that any entry or work shall not unreasonably or materially interfere
with Tenant's occupancy of the Premises, however, any such interference shall
not be a default by Landlord.
(b) If Tenant is not personally present to permit an entry into the Premises
when for any reason an entry therein shall be necessary or permissible, Landlord
(or Landlord's agents), after attempting to notify Tenant (unless Landlord
believes an emergency situation exists), may enter the Premises without
rendering Landlord or its agents liable therefor (if during such entry Landlord
or Landlord's agent shall afford reasonable care to Tenant's property), and
without relieving Tenant of any obligations under this Lease.
(c) Landlord may enter the Premises for the purpose of conducting such
inspections, tests and studies as Landlord may deem desirable or necessary to
confirm Tenant's compliance with all Laws and Environmental Laws or for other
purposes necessary in Landlord's reasonable judgment to ensure the sound
condition of the Building and the systems serving the Building. Landlord's
rights under this Section 7.02(c) are for Landlord's own protection only, and
Landlord has not, and shall not be deemed to have assumed any responsibility to
Tenant or any other party for compliance with Laws or Environmental Laws, as a
result of the exercise or non-exercise of such rights.
(d) Landlord may do any of the foregoing, or undertake any of the inspection or
work described in the preceding paragraphs without such action constituting an
actual or constructive eviction of Tenant, in whole or in part, or giving rise
to an abatement of Rent by reason of loss or interruption of business of the
Tenant, or otherwise.
7.03 QUIET ENJOYMENT
Landlord covenants that so long as Tenant is in compliance with the covenants
and conditions set forth in this Lease, Tenant shall have the right to quiet
enjoyment of the Premises during the Term plus any renewals thereof without
hindrance or interference from Landlord or those claiming through Landlord, and
subject to the rights of any Mortgagee.
7.04 ENTRY CARDS
Landlord shall provide limited access to the Building before and after normal
business hours in the form of special limited access entry cards ("Entry Cards")
for Tenant and its employees. An Entry Card shall not automatically qualify
Tenant or any of its employees for an access card to the "Parking Garage" as
defined in and pursuant to the terms of EXHIBIT E. Landlord agrees to provide
Tenant with up to, but not in excess of, eighty-five (85) Entry Cards at no cost
to Tenant. Tenant shall pay Landlord for any additional or replacement cards,
in such amount as Landlord shall, from time to time, determine. The current
cost required for a replacement card and an additional card is $10.00 per card.
Landlord shall be entitled to cancel (by computer entry) any lost or stolen
cards of which it becomes aware. Tenant shall promptly notify Landlord of any
lost or stolen cards. Landlord shall have no liability to Tenant, its
employees, agents, invitees, or licensees for losses due to theft or burglary,
or for damages committed by unauthorized persons on the Premises; and neither
shall Landlord be required to insure against any such losses. Tenant shall
cooperate fully in Landlord's efforts to maintain security in the Building and
shall follow all regulations promulgated by Landlord with respect thereto.
Tenant further agrees to surrender all Entry Cards in its possession upon the
expiration or earlier termination of this Lease.
7.05 TENANT SECURITY MEASURES
Tenant, at its sole cost and expense, shall have the right to install and
maintain a security system and equipment preferred or required by Tenant to
limit and/or monitor access to the Premises. All of such systems must be
approved in advance by Landlord and be compatible with the Building's security,
elevator, and stairwell systems and must comply with all governmental
requirements, including without limitation Building, fire, life, and safety
codes. In the event that there are subsequent changes to the Building systems,
then Tenant will be responsible for altering its systems to be compatible
therewith. Tenant shall also have the right at its sole cost and expense to
adapt Tenant's existing access control system and equipment for compatibility
with existing Building system(s) and equipment to enable Landlord's third-party
contractor to monitor Tenant's system for a periodic monitoring fee to be agreed
upon by Tenant and such contractor prior to conversion of Tenant's system.
Landlord shall have no liability for the performance of Tenant's security system
or monitoring personnel.
ARTICLE EIGHT
MAINTENANCE
8.01 LANDLORD'S MAINTENANCE
Subject to the provisions of Article Fourteen, Landlord shall maintain and make
necessary repairs to the foundations, roofs, exterior walls, and the structural
elements of the Building, the electrical, plumbing, heating, ventilation and
air-conditioning systems of the Building and the public corridors, washrooms and
lobby of the Building, except that: (a) Landlord shall not be responsible for
the maintenance or repair of any floor or wall coverings in the Premises or any
of such systems which are located within the Premises and are supplemental or
special to the Building's standard systems; and (b) the cost of performing any
of said maintenance or repairs whether to the Premises or to the Building caused
by the negligence of Tenant, its employees, agents, servants, licensees,
subtenants, contractors or invitees, shall be paid by Tenant. Landlord shall
not be liable to Tenant for any expense, injury, loss or damage resulting from
work done in the Building or upon the Property, or the use of, any adjacent or
nearby building, land, street, or alley unless caused by, or attributable to,
Landlord's gross negligence or willful misconduct.
8.02 TENANT'S MAINTENANCE
Subject to the provisions of Article Fourteen, Tenant, at its expense, shall
keep and maintain the Premises and all Tenant Alterations in good order,
condition and repair and in accordance with all Laws and Environmental Laws.
Tenant shall not permit waste and shall promptly and adequately repair all
damages to the Premises and replace or repair all damaged or broken glass in the
interior of the Premises, fixtures or appurtenances. Any repairs or maintenance
shall be completed with materials of similar quality to the original materials,
all such work to be completed under the supervision of Landlord. Any such
repairs or maintenance shall be performed only by contractors or mechanics
approved by Landlord, which approval shall not be unreasonably withheld,
conditioned or delayed and whose work will not cause or threaten to cause
disharmony or interference with Landlord or other tenants in the Building and
their respective agents and contractors performing work in or about the
Building. If Tenant fails to perform promptly any of its obligations set forth
in this Section 8.02, Landlord may, in its reasonable discretion and upon
reasonable advance written notice to Tenant reasonable under the circumstances
(except without notice in the case of emergencies), perform the same, and Tenant
shall pay to Landlord's actual costs or expenses incurred by Landlord upon
demand.
ARTICLE NINE
ALTERATIONS AND IMPROVEMENTS
9.01 TENANT ALTERATIONS
The following provisions shall apply to the completion of any Tenant
Alterations:
(a) Tenant shall not, except as provided herein, without the prior written
consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed, make or cause to be made any Tenant Alterations in or to
the Premises or any Building systems serving the Premises. Prior to making any
Tenant Alterations, Tenant shall give Landlord five (5) days' prior written
notice (or such earlier notice as would be necessary pursuant to applicable law)
to permit Landlord sufficient time to post appropriate notices of
non-responsibility. Subject to all other requirements of this Article Nine,
Tenant may undertake Decoration work without Landlord's prior written consent.
Tenant shall furnish Landlord with the names and addresses of all contractors
and subcontractors and copies of all contracts. All Tenant Alterations shall be
completed at such time and in such manner as Landlord may from time to time
designate, and only by contractors or mechanics approved by Landlord, which
approval shall not be unreasonably withheld, conditioned or delayed, and whose
work will not cause or threaten to cause disharmony or interference with
Landlord or other tenants in the Building and their respective agents and
contractors performing work in or about the Building. Landlord may further
condition its consent upon Tenant furnishing to Landlord and Landlord approving
prior to the commencement of any work or delivery of materials to the Premises
related to the Tenant Alterations such of the following as specified by
Landlord: architectural plans and specifications, opinions from engineers
reasonably acceptable to Landlord stating that the Tenant Alterations will not
in any way adversely affect the Building's systems, including, without
limitation, the mechanical, heating, plumbing, security, ventilating,
air-conditioning, electrical, and the fire and life safety systems in the
Building, necessary permits and licenses, certificates of insurance, and such
other documents in such form reasonably requested by Landlord. Landlord may, in
the exercise of reasonable judgment, request that Tenant provide Landlord with
appropriate evidence of Tenant's ability to complete and pay for the completion
of the Tenant Alterations such as a performance bond or letter of credit. Upon
completion of the Tenant Alterations, Tenant shall deliver to Landlord an
as-built mylar and digitized (if available) set of plans and specifications for
the Tenant Alterations.
(b) Tenant shall pay the cost of all Tenant Alterations and the cost of
decorating the Premises and any work to the Building occasioned thereby. In
connection with completion of any Tenant Alterations, Tenant shall pay Landlord
a construction management fee in an amount reasonably acceptable to both parties
under the circumstances based on the scope of the Tenant Alterations to be
performed, but in any event not to exceed five percent (5%) of the cost of such
Tenant Alterations. Upon completion of Tenant Alterations, Tenant shall furnish
Landlord with contractors' affidavits and full and final waivers of lien and
receipted bills covering all labor and materials expended and used in connection
therewith and such other documentation reasonably requested by Landlord or
Mortgagee.
(c) Tenant agrees to complete all Tenant Alterations (i) in accordance with all
Laws, Environmental Laws, all requirements of applicable insurance companies and
in accordance with Landlord's standard construction rules and regulations, and
(ii) in a good and workmanlike manner with the use of good grades of materials.
Tenant shall notify Landlord immediately if Tenant receives any notice of
violation of any Law in connection with completion of any Tenant Alterations and
shall immediately take such steps as are necessary to remedy such violation. In
no event shall such supervision or right to supervise by Landlord nor shall any
approvals given by Landlord under this Lease constitute any warranty by Landlord
to Tenant of the adequacy of the design, workmanship or quality of such work or
materials for Tenant's intended use or of compliance with the requirements of
Section 9.01(c)(i) and (ii) above or impose any liability upon Landlord in
connection with the performance of such work.
(d) All Tenant Alterations whether installed by Landlord or Tenant, shall
without compensation or credit to Tenant, become part of the Premises and the
property of Landlord at the time of their installation and shall remain in the
Premises, unless pursuant to Article Twelve, Tenant may remove them or is
required to remove them at Landlord's request.
9.02 LIENS
Tenant shall not permit any lien or claim for lien of any mechanic, laborer or
supplier or any other lien to be filed against the Building, the Land, the
Premises, or any part thereof arising out of work performed, or alleged to have
been performed by, or at the direction of, or on behalf of Tenant. If any such
lien or claim for lien is filed, Tenant shall within thirty (30) days of
receiving notice of such lien or claim (a) have such lien or claim for lien
released of record or (b) deliver to Landlord a bond in form, content, amount,
and issued by surety, satisfactory to Landlord, indemnifying, protecting,
defending and holding harmless the Indemnitees against all costs and liabilities
resulting from such lien or claim for lien and the foreclosure or attempted
foreclosure thereof. If Tenant fails to take any of the above actions,
Landlord, without investigating the validity of such lien or claim for lien, may
pay or discharge the same and Tenant shall, as payment of additional Rent
hereunder, reimburse Landlord upon demand for the amount so paid by Landlord,
including Landlord's expenses and attorneys' fees.
ARTICLE TEN
ASSIGNMENT AND SUBLETTING
10.01 ASSIGNMENT AND SUBLETTING
(a) Without the prior written consent of Landlord, Tenant may not sublease,
assign, mortgage, pledge, hypothecate or otherwise transfer or permit the
transfer of this Lease or the encumbering of Tenant's interest therein in whole
or in part, by operation of law or otherwise or permit the use or occupancy of
the Premises, or any part thereof, by anyone other than Tenant. If Tenant
desires to enter into any sublease of the Premises or assignment of this Lease,
Tenant shall deliver written notice thereof to Landlord ("Tenant's Notice"),
together with the identity of the proposed subtenant or assignee and the
proposed principal terms thereof and financial and other information sufficient
for Landlord to make an informed judgment with respect to such proposed
subtenant or assignee at least thirty (30) days but no more than one hundred
twenty (120) days prior to the commencement date of the term of the proposed
sublease or assignment. If Tenant proposes to sublease less than all of the
Rentable Area of the Premises, the space proposed to be sublet and the space
retained by Tenant must each be a marketable unit as reasonably determined by
Landlord and otherwise in compliance with all Laws. Landlord shall notify
Tenant in writing of its approval or disapproval of the proposed sublease or
assignment or its decision to exercise its rights under Section 10.02 within ten
(10) business days after receipt of Tenant's Notice (and all required
information). In no event may Tenant sublease any portion of the Premises or
assign the Lease to any other tenant of the Building, unless Landlord was (or
is) unable to accommodate such tenant's space requirements prior to the
effective date of the proposed assignment or subletting.
(b) In making its determination of whether to consent to any proposed sublease
or assignment to a non-Affiliate of Tenant, Landlord may take into consideration
the business reputation and credit-worthiness of the proposed subtenant (only if
Landlord has reasonable concerns regarding the creditworthiness of Tenant at
such time) or the proposed assignee; the intended use of the Premises by the
proposed subtenant or assignee; the nature of the business conducted by such
subtenant or assignee and whether such business would be deleterious to the
reputation of the Building or Landlord or would violate the provisions of any
other leases of tenants of the Building; the estimated pedestrian and vehicular
traffic in the Premises and to the Building which would be generated by the
proposed subtenant or assignee; whether the proposed assignee or subtenant is a
department, representative or agency of any governmental body, foreign or
domestic; and any other factors which Landlord shall deem relevant. In no
event shall Landlord be obligated to consider a consent to any proposed (i)
sublease of the Premises or assignment of the Lease if a Default then exists
under the Lease, or a fact or condition exists, which but for the giving of
notice or the passage of time would constitute a Default, or (ii) assignment of
the Lease which would assign less than the entire Premises for the remaining
Lease Term.
(c) If Landlord chooses not to recapture the space proposed to be subleased or
assigned as provided in Section 10.02, Landlord shall not unreasonably withhold,
condition or delay, its consent to a subletting or assignment under this Section
10.01. Any approved sublease or assignment shall be expressly subject to the
terms and conditions of this Lease. Any such subtenant or assignee shall
execute such documents as Landlord may reasonably require to evidence such
subtenant or assignee's assumption of such obligations and liabilities. Tenant
shall deliver to Landlord a copy of all agreements executed by Tenant and the
proposed subtenant and assignee with respect to the Premises. Landlord's
approval of a sublease or assignment shall not constitute a waiver of Tenant's
obligation to obtain Landlord's consent to further assignments or subleases.
(d) For purposes of this Article Ten, an assignment shall be deemed to include
a change in the majority control of Tenant, resulting from any transfer, sale or
assignment of more than an aggregate of fifty percent (50%) partnership interest
in Tenant's managing general partner and/or Tenant's operating general partner,
occurring by operation of law or otherwise to a party other than Affiliate, or
the sale or other transfer of more than an aggregate of fifty percent (50%) of
Tenant's net assets to a party other than Affiliate.
(e) Notwithstanding anything to the contrary contained in this Article Ten,
Tenant shall have the right, without the prior written consent of Landlord, to
sublease the Premises, or to assign this Lease to an Affiliate who shall use the
Premises consistent with Tenant's Use of Premises provided in Section 1.01(11)
hereof. Landlord acknowledges and agrees that Tenant's Affiliates, Genesis
Energy LLC and Genesis, L.P. shall occupy portions of the Premises pursuant to
an office sharing arrangement with Tenant.
10.02 RECAPTURE
Except as provided in Section 10.01(e) Landlord shall have the option by giving
written notice to Tenant within ten (10) business days after receipt of Tenant's
notice requesting an assignment or subletting, to exclude from the Premises
covered by this Lease ("recapture"), the space proposed to be sublet or subject
to the assignment (the "Subject Space"), effective as of the proposed
commencement date of such sublease or assignment. If Landlord elects to
recapture, Tenant shall surrender possession of the Subject Space on the
effective date of recapture of such Subject Space from the Premises such date
being the Termination Date for such space. Effective as of the date of
recapture of any portion of the Premises pursuant to this Section, the Monthly
Base Rent, Rentable Area of the Premises and Tenant's Rent Adjustment shall be
adjusted accordingly.
10.03 EXCESS RENT
Tenant shall pay Landlord on the first day of each month during the term of the
sublease or assignment, fifty percent (50%) of the amount by which the sum of
all rent and other consideration (direct or indirect) due from the subtenant or
assignee for such month exceeds: (a) that portion of the Monthly Base Rent and
Rent Adjustments due under this Lease for said month which is allocable to the
space sublet or assigned; and (b) the following costs and expenses for the
subletting or assignment of such space: (i) brokerage commissions and attorneys'
fees and expenses, (ii) advertising for subtenants or assignees; (iii) the
actual costs paid in making any improvements or substitutions in the Premises
required by any sublease or assignment; and (iv) "free rent" periods, costs of
any inducements or concessions given to subtenant or assignee, moving costs, and
other amounts in respect of such subtenant's or assignee's other leases or
occupancy arrangements. All such costs will be amortized over the term of the
sublease or assignment pursuant to sound accounting principles at a rate of ten
percent (10%) per year.
10.04 TENANT LIABILITY
In the event of any sublease or assignment, whether or not with Landlord's
consent, Tenant shall not be released or discharged from any liability, whether
past, present or future, under this Lease, including any liability arising from
the exercise of any renewal or expansion option, to the extent expressly
permitted by Landlord. If Landlord grants consent to such sublease or
assignment, Tenant shall pay all reasonable attorneys' fees and expenses
incurred by Landlord with respect to such assignment or sublease. In addition,
if Tenant has any options to extend the term of this Lease or to add other space
to the Premises, such options shall not be available to any subtenant or
assignee, directly or indirectly without Landlord's express written consent.
10.05 ASSUMPTION AND ATTORNMENT
If Tenant shall assign this Lease to any party as permitted herein, the assignee
shall expressly assume all of the obligations of Tenant hereunder in a written
instrument satisfactory to Landlord and furnished to Landlord not later than
fifteen (15) days prior to the effective date of the assignment.
ARTICLE ELEVEN
DEFAULT AND REMEDIES
11.01 EVENTS OF DEFAULT
The occurrence or existence of any one or more of the following shall constitute
a "Default" by Tenant under this Lease:
(a) Tenant fails to pay any installment or other payment of Rent including
without limitation Rent Adjustment Deposits or Rent Adjustments when due and
Tenant's continued failure to pay same within five (5) business days following
Landlord's written notice to Tenant as to such default (provided, however, that
after Landlord has given Tenant written notice of failure to pay Rent when due
on two (2) separate occasions in any twelve (12) month period, Landlord shall
not be required to give Tenant notice for any subsequent failure during such
twelve (12) month period);
(b) Tenant fails to observe or perform any of the other covenants, conditions
or provisions of this Lease or the Workletter and fails to cure such default
within thirty (30) days after written notice thereof to Tenant (unless the
default involves a hazardous condition, which shall be cured forthwith);
(c) The interest of Tenant in this Lease is levied upon under execution or
other legal process;
(d) A petition is filed by or against Tenant to declare Tenant bankrupt or
seeking a plan of reorganization or arrangement under any Chapter of the
Bankruptcy Act, or any amendment, replacement or substitution therefor, or to
delay payment of, reduce or modify Tenant's debts, which in the case of an
involuntary action is not discharged within thirty (30) days;
(e) Tenant is declared insolvent by law or any assignment of Tenant's property
is made for the benefit of creditors;
(f) A receiver is appointed for Tenant or Tenant's property, which appointment
is not discharged within thirty (30) days;
(g) Any action taken by or against Tenant to reorganize or modify Tenant's
capital structure in a materially adverse way which in the case of an
involuntary action is not discharged within thirty (30) days;
(h) Upon the dissolution of Tenant; or
(i) Upon the third occurrence within any Lease Year that Tenant fails to pay
Rent when due or has breached a particular covenant of this Lease (whether or
not such failure or breach is thereafter cured within any stated cure or grace
period or statutory period).
11.02 LANDLORD'S REMEDIES
(a) If a Default occurs, Landlord shall have the rights and remedies
hereinafter set forth, which shall be distinct and cumulative: (i) Landlord may
terminate this Lease by giving Tenant notice of Landlord's election to do so, in
which event, the term of this Lease shall end and all of Tenant's rights and
interests shall expire on the date stated in such notice; (ii) Landlord may
terminate Tenant's right of possession of the Premises without terminating this
Lease by giving notice to Tenant that Tenant's right of possession shall end on
the date specified in such notice; or (iii) Landlord may enforce the provisions
of this Lease and may enforce and protect the rights of the Landlord hereunder
by a suit or suits in equity or at law for the specific performance of any
covenant or agreement contained herein, or for the enforcement of any other
appropriate legal or equitable remedy, including recovery of all monies due or
to become due from Tenant under any of the provisions of this Lease. All
Landlord remedies shall be cumulative and not exclusive.
(b) In the event that Landlord terminates the Lease, Landlord shall be entitled
to recover (i) the sum of all Rents and other indebtedness accrued to the date
of such termination, plus (ii) the cost of recovering the Premises, (iii) the
cost of reletting the Premises, or portions thereof (including, without
limitation, brokerage commissions) and (iv) the cost of repairs, alterations,
improvements, additions and decorations to the Premises to the extent Landlord
deems reasonably necessary or desirable. Items (ii) through (iv) are herein
defined as the "Recovery Costs." In addition, in the event that Tenant's
Default constitutes a material breach, Landlord shall be entitled to recover a
sum equal to the difference between (x) the total Base Rent due under this Lease
for the remainder of the Term and (y) the then fair market rental value of the
Premises during such period, both discounted to present value at a rate
determined by Landlord, in its sole discretion ("Discounted Future Rent").
(c) In the event Landlord proceeds pursuant to subparagraph (a)(ii) above,
Landlord shall be entitled to recover (i) the sum of all Rents and other
indebtedness accrued to the date of such termination of Tenant's possession,
plus (ii) the Recovery Costs (as defined above). Landlord shall use objectively
reasonable efforts (in accordance with applicable law) to relet the Premises, or
any part thereof for the account of Tenant, for such rent and term and upon such
terms and conditions as are reasonably acceptable to Landlord. For purposes of
such reletting, Landlord is authorized to decorate, repair, alter and improve
the Premises to the extent reasonably necessary or desirable. If the Premises
are relet and the consideration realized therefrom after payment of all
Landlord's Reletting Expenses, is insufficient to satisfy the payment when due
of Rent reserved under this Lease for any monthly period, then Tenant shall pay
Landlord upon demand any such deficiency monthly ("Rental Deficiency"). If such
consideration is greater than the amount necessary to pay the full amount of the
Rent, the full amount of such excess shall be retained by Landlord and shall in
no event be payable to Tenant. Tenant agrees that Landlord may file suit to
recover any sums due to Landlord hereunder from time to time and that such suit
or recovery of any amount due Landlord hereunder shall not be any defense to any
subsequent action brought for any amount not theretofore reduced to judgment in
favor of Landlord. Notwithstanding any such reletting without termination,
Landlord may at any time thereafter elect to terminate this Lease for such
previous Default. In the alternative (but only in the event that Tenant's
Default constitutes a material breach), Landlord may elect to terminate Tenant's
right to occupy the Premises and to immediately recover as damages, in lieu of
the Rental Deficiency, a sum equal to the Discounted Future Rent (as defined
above).
(d) In the event a Default occurs, Landlord may, at Landlord's option, enter
into the Premises, remove Tenant's property, fixtures, furnishings, signs and
other evidences of tenancy (excluding Tenant's files, records, books and the
personal belongings of individual employees), and take and hold such property in
accordance with applicable law; provided, however, that such entry and
possession shall not terminate this Lease or release Tenant, in whole or in
part, from Tenant's obligation to pay the Rent reserved hereunder for the full
Term or from any other obligation of Tenant under this Lease. Any and all
property which may be removed from the Premises by Landlord pursuant to the
authority of the Lease or law, to which Tenant is or may be entitled, may be
handled, removed or stored by Landlord at the risk, cost and expense of Tenant,
and Landlord shall in no event be responsible for the value, preservation or
safekeeping thereof. Tenant shall pay Landlord, upon demand, any and all
expenses incurred in such removal and all storage charges against such property
so long as the same shall be in the Landlord's possession or under the
Landlord's control. Any such property of Tenant not retaken from storage by
Tenant within thirty (30) days after the Termination Date, shall be conclusively
presumed to have been conveyed by Tenant to Landlord under this Lease as a xxxx
of sale without further payment or credit by Landlord to Tenant.
(e) If Landlord terminates this Lease or Tenant's right to possession (without
terminating the Lease), Landlord shall use objectively reasonable efforts to
mitigate Landlord's damages by re-letting the Premises following Tenant's
vacancy thereof (but in doing so, Tenant agrees that Landlord shall not be
required to give preference to re-letting the Premises prior to leasing other
space that Landlord has available, i.e., any prospective tenant's space
requirements will dictate Landlord's leasing activities). Tenant shall bear the
burden of proof to demonstrate that Landlord has mitigated or failed to mitigate
Landlord's damages.
11.03 ATTORNEY'S FEES
Tenant shall pay upon demand, all costs and expenses, including reasonable
attorneys' fees, incurred by Landlord in enforcing the Tenant's performance of
its obligations under this Lease, or resulting from Tenant's Default, or
incurred by Landlord in any litigation, negotiation or transaction in which
Tenant causes Landlord, without Landlord's fault, to become involved or
concerned.
11.04 BANKRUPTCY
The following provisions shall apply in the event of the bankruptcy or
insolvency of Tenant:
(a) In connection with any proceeding under Chapter 7 of the Bankruptcy Code
where the trustee of Tenant elects to assume this Lease for the purposes of
assigning it, such election or assignment, may only be made upon compliance with
the provisions of (b) and (c) below, which conditions Landlord and Tenant
acknowledge to be commercially reasonable. In the event the trustee elects to
reject this Lease then Landlord shall immediately be entitled to possession of
the Premises without further obligation to Tenant or the trustee.
(b) Any election to assume this Lease under Chapter 11 or 13 of the Bankruptcy
Code by Tenant as debtor-in-possession or by Tenant's trustee (the "Electing
Party") must provide for:
The Electing Party to cure or provide to Landlord adequate assurance that it
will cure all monetary defaults under this Lease within fifteen (15) days from
the date of assumption and it will cure all nonmonetary defaults under this
Lease within thirty (30) days from the date of assumption. Landlord and Tenant
acknowledge such condition to be commercially reasonable.
(c) If the Electing Party has assumed this Lease or elects to assign Tenant's
interest under this Lease to any other person, such interest may be assigned
only if the intended assignee has provided adequate assurance of future
performance (as herein defined), of all of the obligations imposed on Tenant
under this Lease. For the purposes hereof, "adequate assurance of future
performance" means that Landlord has ascertained that each of the following
conditions has been satisfied:
(i) The assignee has submitted a current financial statement, certified by its
chief financial officer, which shows a net worth and working capital in amounts
sufficient to assure the future performance by the assignee of Tenant's
obligations under this Lease; and
(ii) Landlord has obtained consents or waivers from any third parties which may
be required under a lease, mortgage, financing arrangement, or other agreement
by which Landlord is bound, to enable Landlord to permit such assignment.
(d) Landlord's acceptance of rent or any other payment from any trustee,
receiver, assignee, person, or other entity will not be deemed to have waived,
or waive, the requirement of Landlord's consent, Landlord's right to terminate
this Lease for any transfer of Tenant's interest under this Lease without such
consent, or Landlord's claim for any amount of Rent due from Tenant.
ARTICLE TWELVE
SURRENDER OF PREMISES
12.01 IN GENERAL
Upon the Termination Date, Tenant shall surrender and vacate the Premises
immediately and deliver possession thereof to Landlord in a clean, good and
tenantable condition, ordinary wear and tear, and damage caused by Landlord
excepted. Tenant shall deliver to Landlord all keys to the Premises. Tenant
shall be entitled to remove from the Premises all movable personal property of
Tenant and Tenant's trade fixtures. In addition, Tenant shall be required to
remove those Tenant Alterations which at the time of their installation were
designated in writing by Landlord as being subject to removal by Tenant. None
of the Initial Improvements will be required to be removed by Tenant upon
expiration or termination of the Term. Tenant immediately shall repair all
damage resulting from removal of any of Tenant's property, furnishings, Initial
Improvements or Tenant Alterations, shall close all floor, ceiling and roof
openings and shall restore the Premises to a tenantable condition as reasonably
determined by Landlord. In the event possession of the Premises is not
delivered to Landlord when required hereunder, or if Tenant shall fail to remove
those items described above, Landlord may, at Tenant's expense, remove any of
such property therefrom without any liability to Landlord and undertake, at
Tenant's expense such restoration work as Landlord deems necessary or advisable.
12.02 LANDLORD'S RIGHTS
All property which may be removed from the Premises by Landlord shall be
conclusively presumed to have been abandoned by Tenant and Landlord may deal
with such property as provided in Section 11.02(d). Tenant shall also reimburse
Landlord for all costs and expenses incurred by Landlord in removing any of
Tenant Alterations and in restoring the Premises to the condition required by
this Lease at the Termination Date.
ARTICLE THIRTEEN
HOLDING OVER
Tenant shall pay Landlord the greater of (a) one hundred fifty percent (150%) of
the monthly Rent payable for the month immediately preceding the holding over
(including increases for Rent Adjustments which Landlord may reasonably
estimate) or, (b) one hundred ten percent (110%) of the fair market rental value
of the Premises as reasonably determined by Landlord for each month or portion
thereof that Tenant retains possession of the Premises, or any portion thereof,
after the Termination Date (without reduction for any partial month that Tenant
retains possession). In addition, in the event Tenant retains possession of the
Premises in excess of thirty (30) days, Tenant shall also pay all damages
sustained and losses incurred by Landlord by reason of such retention of
possession. The provisions of this Article shall not constitute a waiver by
Landlord of any re-entry rights of Landlord and Tenant's continued occupancy of
the Premises shall be as a tenancy in sufferance.
ARTICLE FOURTEEN
DAMAGE BY FIRE OR OTHER CASUALTY
14.01 SUBSTANTIAL UNTENANTABILITY
(a) If any fire or other casualty (whether insured or uninsured) renders all or
a substantial portion of the Premises or the Building untenantable, Landlord
shall, within sixty (60) days after the occurrence of such damage, estimate the
length of time that will be required to Substantially Complete the repair and
restoration and shall by notice advise Tenant of such estimate ("Landlord's
Notice"). If Landlord estimates that the amount of time required to
Substantially Complete such repair and restoration will exceed one hundred
eighty (180) days from the date such damage occurred, then Landlord, or Tenant
if all or a substantial portion of the Premises is rendered untenantable, shall
have the right to terminate this Lease as of the date of such damage upon giving
written notice to the other at any time within sixty (60) days after delivery of
Landlord's Notice, provided that if Landlord so chooses, Landlord's Notice may
also constitute such notice of termination. Tenant shall have ninety (90) days
following Landlord's termination notice or Tenant's termination notice, as
applicable to vacate the Premises unless an earlier vacancy is required by
applicable law.
(b) Unless this Lease is terminated as provided in the preceding subparagraph,
Landlord shall proceed with reasonable promptness to repair and restore the
Premises to its condition as existed prior to such casualty, subject to
reasonable delays for insurance adjustments and Force Majeure delays, and also
subject to zoning laws and building codes then in effect. Landlord shall have
no liability to Tenant, and Tenant shall not be entitled to terminate this Lease
if such repairs and restoration are not in fact completed within the time period
estimated by Landlord so long as Landlord shall proceed with reasonable
diligence to complete such repairs and restoration.
(c) Tenant acknowledges that Landlord shall be entitled to the full proceeds of
any insurance coverage, whether carried by Landlord or Tenant, for damages to
the Premises, except for those proceeds of Tenant's insurance of its own
personal property and equipment which would be removable by Tenant at the
Termination Date. All such insurance proceeds shall be payable to Landlord
whether or not the Premises are to be repaired and restored.
(d) Notwithstanding anything to the contrary herein set forth: (i) Landlord
shall have no duty pursuant to this Section to repair or restore any portion of
any Tenant Alterations exceeding Building-standard improvements or to expend for
any repair or restoration of the Premises or Building amounts in excess of
insurance proceeds paid to Landlord and available for repair or restoration; and
(ii) Tenant shall not have the right to terminate this Lease pursuant to this
Section if any damage or destruction was caused by the sole act or neglect of
Tenant, its agent or employees.
(e) Any repair or restoration of the Premises performed by Tenant shall be in
accordance with the provisions of Article Nine hereof.
14.02 INSUBSTANTIAL UNTENANTABILITY
If the Premises or the Building is damaged by a casualty but neither is rendered
substantially untenantable, then Landlord shall proceed to repair and restore
the Building or the Premises other than Tenant Alterations, with reasonable
promptness, unless such damage is to the Premises and occurs during the last
twelve (12) months of the Term, in which event either Tenant or Landlord shall
have the right to terminate this Lease as of the date of such casualty
(including Tenant's obligation to pay Rent) by giving written notice thereof to
the other within twenty (20) days after the date of such casualty.
14.03 RENT ABATEMENT
Except for the sole negligence or willful act of Tenant or its agents,
employees, contractors or invitees, if all or any part of the Premises are
rendered untenantable by fire or other casualty and this Lease is not
terminated, Monthly Base Rent and Rent Adjustments shall xxxxx for that part of
the Premises which is untenantable on a per diem basis from the date of the
casualty until Landlord has Substantially Completed the repair and restoration
work in the Premises which it is required to perform, provided, that as a result
of such casualty, Tenant does not occupy the portion of the Premises which is
untenantable during such period. For purposes of this Article 14 the Premises
shall be considered "untenantable" if they are not reasonably usable for the
conduct of Tenant's business.
ARTICLE FIFTEEN
EMINENT DOMAIN
15.01 TAKING OF WHOLE OR SUBSTANTIAL PART
In the event the whole or any substantial part of the Building or of the
Premises is taken or condemned by any competent authority for any public use or
purpose (including a deed given in lieu of condemnation) and is thereby rendered
untenantable, this Lease shall terminate as of the date title vests in such
authority, and Monthly Base Rent and Rent Adjustments shall be apportioned as of
the Termination Date. Notwithstanding anything to the contrary herein set
forth, in the event the taking is temporary (for less than the remaining term of
the Lease), Landlord may elect to permit Tenant to receive the entire award
attributable to the Premises during the temporary taking, in which case Tenant
shall continue to pay Rent and this Lease shall not terminate.
15.02 TAKING OF PART
In the event a part of the Building or the Premises is taken or condemned by any
competent authority (or a deed is delivered in lieu of condemnation) and this
Lease is not terminated, the Lease shall be amended to reduce or increase, as
the case may be, the Monthly Base Rent and Tenant's Rent Adjustment to reflect
the Rentable Area of the Premises or Building, as the case may be, remaining
after any such taking or condemnation. Landlord, upon receipt and to the extent
of the award in condemnation (or proceeds of sale) shall make necessary repairs
and restorations to the Premises (exclusive of Tenant Alterations) and to the
Building to the extent necessary to constitute the portion of the Building not
so taken or condemned as a complete architectural and economically efficient
unit. Notwithstanding the foregoing, if as a result of any taking, or a
governmental order that the grade of any street or alley adjacent to the
Building is to be changed and such taking or change of grade makes it necessary
or desirable to substantially remodel or restore the Building or prevents the
economical operation of the Building, Landlord shall have the right to terminate
this Lease upon ninety (90) days' prior written notice to Tenant.
15.03 COMPENSATION
Landlord shall be entitled to receive the entire award (or sale proceeds) from
any such taking, condemnation or sale without any payment to Tenant, and Tenant
hereby assigns to Landlord Tenant's interest, if any, in such award; provided,
however, Tenant shall have the right separately to pursue against the condemning
authority a separate award in respect of the loss, if any, to Tenant Alterations
paid for by Tenant without any credit or allowance from Landlord so long as
there is no diminution of Landlord's award as a result.
ARTICLE SIXTEEN
INSURANCE
16.01 TENANT'S INSURANCE
Tenant, at Tenant's expense, agrees to maintain in force, with a company or
companies acceptable to Landlord, during the Term: (a) Commercial General
Liability Insurance on a primary basis and without any right of contribution
from any insurance carried by Landlord covering Tenant against all claims for
personal injury, bodily injury, death and property damage with respect to the
Premises, including contractual liability covering the indemnification
provisions in this Lease. Such insurance shall be for such limits that are
reasonably required by Landlord from time to time but not less than a combined
single limit of Five Million and No/100 Dollars ($5,000,000.00) (of which at
least the first $1,000,000.00 shall be on an occurrence basis, and the remainder
on a claims made basis); (b) Workers' Compensation and Employers' Liability
Insurance for an amount of not less than One Million and No/100 Dollars
($1,000,000.00), both in accordance with the laws of The State of Texas; (c)
"All Risks" property insurance in an amount adequate to cover the full
replacement cost of all improvements to the Premises exceeding Building standard
improvements and, to the extent deemed reasonable by Tenant, the full
replacement cost of all equipment, trade fixtures and contents of the Premises
in the event of loss and any such policy shall contain a provision requiring the
insurance carriers to waive their rights of subrogation against Landlord; and
(d) in the event a motor vehicle is to be used by Tenant in connection with its
business operation from the Premises, Comprehensive Automobile Liability
Insurance coverage with limits of not less than Two Million and No/100 Dollars
($2,000,000.00) combined single limit coverage against bodily injury liability
and property damage liability arising out of the use by or on behalf of Tenant,
its agents and employees in connection with this Lease, of any owned, non-owned
or hired motor vehicles.
16.02 FORM OF POLICIES
Each policy referred to in 16.01 shall satisfy the following requirements. Each
policy shall (a) name Landlord and the Indemnitees as additional insureds
(excepting Worker's Compensation and Employee's Liability insurance policies),
(b) be issued by one or more responsible insurance companies qualified to do
business in Texas reasonably satisfactory to Landlord, (c) shall provide that
such insurance may not be canceled or amended without thirty (30) days' prior
written notice to the Landlord, and (d) shall provide that the policy shall not
be invalidated should the insured waive in writing prior to a loss, any or all
rights of recovery against any other party for losses covered by such policies.
Tenant shall deliver to Landlord certificates of insurance evidencing such
policies to be maintained by Tenant hereunder, not less than five (5) days prior
to the Commencement Date and not less than five (5) days prior to the expiration
date of each policy.
16.03 LANDLORD'S INSURANCE
Landlord agrees to purchase and keep in full force and effect during the Term
hereof, including any extensions or renewals thereof, insurance under policies
issued by insurers of recognized responsibility, qualified to do business in
Texas on the Building in amounts not less than the greater of ninety (90%)
percent of the then full replacement cost (without depreciation) of the Building
(above foundations) or an amount sufficient to prevent Landlord from becoming a
co-insurer under the terms of the applicable policies, against fire and such
other risks as may be included in standard forms of all risk coverage insurance
reasonably available from time to time. Landlord agrees to maintain in force
during the Term, Commercial General Liability Insurance covering the Building on
an occurrence basis against all claims for personal injury, bodily injury, death
and property damage. Such insurance shall be for a combined single limit of
Five Million and No/100 Dollars ($5,000,000.00). Neither Landlord's obligation
to carry such insurance nor the carrying of such insurance shall be deemed to be
an indemnity by Landlord with respect to any claim, liability, loss, cost or
expense due, in whole or in part, to Tenant's negligent acts or omissions or
willful misconduct.
16.04 WAIVER OF SUBROGATION
(a) Landlord agrees that, if obtainable at no, or minimal, additional cost, and
so long as the same is permitted under the laws of Texas, it will include in its
"All Risks" policies appropriate clauses pursuant to which the insurance
companies (i) waive all right of subrogation against Tenant with respect to
losses payable under such policies and/or (ii) agree that such policies shall
not be invalidated should the insured waive in writing prior to a loss any or
all right of recovery against any party for losses covered by such policies.
(b) Tenant agrees to include, if obtainable at no, or minimal, additional cost,
and so long as the same is permitted under the laws of Texas, in its "All Risks"
insurance policy or policies on its furniture, furnishings, fixtures and other
property removable by Tenant under the provisions of its lease of space in the
Building, appropriate clauses pursuant to which the insurance company or
companies (i) waive the right of subrogation against Landlord and/or any tenant
of space in the Building with respect to losses payable under such policy or
policies and/or (ii) agree that such policy or policies shall not be invalidated
should the insured waive in writing prior to a loss any or all right of recovery
against any party for losses covered by such policy or policies. If Tenant is
unable to obtain in such policy or policies either of the clauses described in
the preceding sentence, Tenant shall, if legally possible and without
necessitating a change in insurance carriers, have Landlord named in such policy
or policies as an additional insured. If Landlord shall be named as an
additional insured in accordance with the foregoing, Landlord agrees to endorse
promptly to the order of Tenant, without recourse, any check, draft, or order
for the payment of money representing the proceeds of any such policy or
representing any other payment growing out of or connected with said policies,
and Landlord does hereby irrevocably waive any and all rights in and to such
proceeds and payments.
(c) Provided that Landlord's right of full recovery under its policy or
policies aforesaid is not adversely affected or prejudiced thereby, Landlord
hereby waives any and all right of recovery which it might otherwise have
against Tenant, its servants, agents and employees, for loss or damage occurring
to the Building and the fixtures, appurtenances and equipment therein, to the
extent the same is covered by Landlord's insurance, notwithstanding that such
loss or damage may result from the negligence or fault of Tenant, its servants,
agents or employees. Provided that Tenant's right of full recovery under its
aforesaid policy or policies is not adversely affected or prejudiced thereby,
Tenant hereby waives any and all right of recovery which it might otherwise have
against Landlord, its servants, and employees and against every other tenant in
the Building who shall have executed a similar waiver as set forth in this
Section 16.04(c) for loss or damage to Tenant's furniture, furnishings, fixtures
and other property removable by Tenant under the provisions hereof to the extent
that same is covered or coverable by Tenant's insurance required under this
Lease, notwithstanding that such loss or damage may result from the negligence
or fault of Landlord, its servants, agents or employees, or such other tenant
and the servants, agents or employees thereof.
(d) Landlord and Tenant hereby agree to advise the other promptly if the
clauses to be included in their respective insurance policies pursuant to
subparagraphs (a) and (b) above cannot be obtained on the terms hereinbefore
provided and thereafter to furnish the other with a certificate of insurance or
copy of such policies showing the naming of the other as an additional insured,
as aforesaid. Landlord and Tenant hereby also agree to notify the other
promptly of any cancellation or change of the terms of any such policy which
would affect such clauses or naming. All such policies which name both Landlord
and Tenant as additional insureds shall, to the extent obtainable, contain
agreements by the insurers to the effect that no act or omission of any
additional insured will invalidate the policy as to the other additional
insureds.
16.05 NOTICE OF CASUALTY
Tenant shall give Landlord notice in case of a fire or accident in the Premises
promptly after Tenant is aware of such event.
ARTICLE SEVENTEEN
WAIVER OF CLAIMS AND INDEMNITY
17.01 INDEMNITY BY TENANT
Tenant releases Landlord from all liability for any injury or damage to person
or property occurring in the Premises except to the extent that such injury or
damage is attributable to the negligence or willful misconduct of Landlord, its
agents, servants, employees or contractors, and Tenant agrees to protect,
defend, indemnify and hold Landlord harmless from and against all liabilities,
claims, suits, actions and costs (including reasonable attorneys' fees and costs
of suit) arising out of or in connection with any injury or damage occurring in
the Premises except to the extent that such injury or damage is attributable to
the negligence or willful misconduct of Landlord, its agents, servants,
employees or contractors.
17.02 INDEMNITY BY LANDLORD
Landlord releases Tenant from all liability for any injury or damage to person
or property occurring in any area of the Building other than the Premises except
to the extent that such injury or damage is attributable to the negligence or
willful misconduct of Tenant, its agents, servants, employees, contractors,
customers or invitees, and Landlord agrees to protect, defend, indemnify and
hold Tenant harmless from and against all liabilities, claims, suits, actions
and costs (including reasonable attorney's fees and costs of suit) arising out
of or in connection with any injury or damage occurring in any area of the
Building other than the Premises, except to the extent that such injury or
damage is attributable to the negligence or willful misconduct of Tenant, its
agents, servants, employees, contractors, customers or invitees.
ARTICLE EIGHTEEN
RULES AND REGULATIONS
18.01 RULES
Tenant agrees for itself and for its subtenants, employees, agents, and invitees
to comply with the rules and regulations listed on EXHIBIT D attached hereto and
with all reasonable modifications and additions thereto which Landlord may make
from time to time.
18.02 ENFORCEMENT
Nothing in this Lease shall be construed to impose upon the Landlord any duty or
obligation to enforce the rules and regulations as set forth on EXHIBIT D or as
hereafter adopted, or the terms, covenants or conditions of any other lease as
against any other tenant, and the Landlord shall not be liable to the Tenant for
violation of the same by any other tenant, its servants, employees, agents,
visitors or licensees. Landlord shall use reasonable efforts to enforce the
rules and regulations of the Building in a uniform and non-discriminatory
manner. Tenant shall pay to Landlord all damages caused by Tenant's failure to
comply with the provisions of this Article Eighteen and shall also pay to
Landlord as additional Rent an amount equal to any increase in insurance
premiums caused by such failure to comply.
ARTICLE NINETEEN
LANDLORD'S RESERVED RIGHTS
19.01 RESERVED RIGHTS
Landlord shall have the following rights exercisable without notice to Tenant
and without liability to Tenant for damage or injury to persons, property or
business and without being deemed an eviction or disturbance of Tenant's use or
possession of the Premises or giving rise to any claim for setoff or abatement
of Rent: (a) To change the Building's name or street address upon thirty (30)
days' prior written notice to Tenant; (b) To install, affix and maintain all
signs on the exterior and/or interior of the Building; (c) To designate and/or
approve prior to installation, all types of signs, window shades, blinds,
drapes, awnings or other similar items, and all internal lighting that may be
visible from the exterior of the Premises; (d) upon reasonable notice to Tenant,
to display the Premises to prospective tenants at reasonable hours during the
last nine (9) months of the Term; (e) To grant to any party the exclusive right
to conduct any business or render any service in or to the Building, provided
such exclusive right shall not operate to prohibit Tenant from using the
Premises for the purpose permitted hereunder; (f) To change the arrangement
and/or location of entrances or passageways, doors and doorways, corridors,
elevators, stairs, washrooms or public portions of the Building, and to close
entrances, doors, corridors, elevators or other facilities, provided that such
action shall not materially and adversely interfere with Tenant's access to the
Premises or the Building; (g) to have access for Landlord and other tenants of
the Building to any mail chutes and boxes located in or on the Premises as
required by any applicable rules of the United States Post Office; and (h) To
close the Building after normal business hours, except that Tenant and its
employees and invitees shall be entitled to admission at all times, under such
regulations as Landlord prescribes for security purposes.
ARTICLE TWENTY
ESTOPPEL CERTIFICATE
20.01 IN GENERAL
Within thirty (30) days after request therefor by Landlord, Mortgagee or any
prospective mortgagee or owner, Tenant agrees as directed in such request to
execute an Estoppel Certificate in recordable form, binding upon Tenant,
certifying to the extent accurate (a) at this Lease is unmodified and in full
force and effect (or if there have been modifications, a description of such
modifications and that this Lease as modified is in full force and effect); (b)
the dates to which Rent has been paid; (c) that Tenant is in the possession of
the Premises if that is the case; (d) that Landlord is not in default under this
Lease, or, if Tenant believes Landlord is in default, the nature thereof in
detail; (e) that Tenant has no off-sets or defenses to the performance of its
obligations under this Lease (or if Tenant believes there are any off-sets or
defenses, a full and complete explanation thereof); (f) that the Premises have
been completed in accordance with the terms and provisions hereof or the
Workletter, that Tenant has accepted the Premises and the condition thereof and
of all improvements thereto and has no claims against Landlord or any other
party with respect thereto; (g) that if an assignment of rents or leases has
been served upon the Tenant by a Mortgagee, Tenant will acknowledge receipt
thereof and agree to be bound by the provisions thereof; (h) that Tenant will
give to the Mortgagee copies of all notices required or permitted to be given by
Tenant to Landlord; and (i) to any other information reasonably requested.
20.02 ENFORCEMENT
In the event that Tenant fails to deliver an Estoppel Certificate or otherwise
respond in good faith in writing to such request within such twenty (20) day
period, such failure shall be a Default for which there shall be no cure or
grace period. In addition, such failure shall be deemed to be an admission by
Tenant of the truth and accuracy of the matters set forth in such Estoppel
Certificate.
ARTICLE TWENTY-ONE
RELOCATION OF TENANT
At any time after the expiration of the second Lease Year, Landlord shall have
the right to relocate the Premises to comparable space (as hereinafter defined)
located on a floor no lower than Floor 10 in the Building or in Two Xxxxx
Center by providing Tenant with at least ninety (90) days' prior written notice
of such intention to relocate Tenant. Effective on the date of such relocation,
this Lease shall be amended by a written lease amendment, to be executed by both
Landlord and Tenant, by deleting the description of the original Premises and
substituting therefor the description of the new space (the "Substituted
Premises"), it being understood and agreed that all other terms and conditions
of this Lease shall remain the same, except that (a) Landlord's right to
relocate Tenant pursuant to this Article 21 shall be deleted, and (b) the
Substituted Premises will be leased on the same terms and conditions as the
Lease, including any renewal option(s) and preferential lease right(s)
(subordinate to the rights of existing tenants with respect to the new
preferential space) granted in favor of Tenant at the time of relocation, but in
no event will the term for the Substituted Premises commence prior to the date
when the leasehold improvements in the Substituted Premises are substantially
completed by Landlord and/or its contractors. For purposes of this Article 21,
"comparable space" will mean space of at least the same size and general layout
as the Premises, containing improvements comparable to those in the Premises at
the time of relocation, and the Base Rent will not exceed that being paid by
Tenant as of the date of such relocation. Anything in the foregoing provisions
of this Article 21 to the contrary notwithstanding, Landlord shall not have the
right to relocate the Premises if less than twelve (12) months remain on the
Term (except if Tenant shall have exercised the Renewal Option granted pursuant
to EXHIBIT F hereto) or the Renewal Term, as the case may be.
Landlord will pay for or otherwise reimburse Tenant for all reasonable out-of-
pocket expenses incurred by Tenant in relocating to the Substituted Premises,
including, but not limited to, the following: all reasonable costs and
expenses, including filing fees and building permits, incurred to reconstruct
all leasehold improvements in the Substituted Premises to substantially the same
condition and level of improvements as existed in the Premises prior to such
relocation; reasonable moving costs incurred to relocate furniture, fixtures,
and equipment, filing cabinets and the contents thereof, supplies, telephones
and telephone equipment (including disconnect and connect charges), computer
equipment, fiber network, and other communications - and computer-related
cabling and connections (including setup changes) and all other property
(including personal property) of Tenant and its employees located in the
Premises as of the date of such relocation; and reasonable costs incurred for
space planning/interior architecture, engineering, and attorneys' fees,
reprinting of stationery of the same quality and quantity as on hand immediately
prior to such relocation, and postage and delivery costs directly related to
change-of-address notification to Tenant's clients and vendors. In addition,
Landlord shall xxxxx all Rent with respect to the Substituted Premises for a
period of six (6) full months following Tenant's occupancy thereof.
Notwithstanding the foregoing, Landlord shall not be entitled to exercise the
relocation option set forth in this Article 21 unless the relocation is
necessary in order to (a) accommodate the space needs of Amerada Xxxx Corp. in
the event it exercises the Hess Expansion Option (as defined in EXHIBIT F
hereto) or (b) locate a tenant that will occupy at least two (2) full floors in
the Building. In addition, Landlord may only relocate Tenant once during the
Term or once during the Renewal Term (if Tenant exercises the Renewal Option),
as applicable.
ARTICLE TWENTY-TWO
REAL ESTATE BROKERS
Tenant represents that, except for Xxxxxxx Realty Corporation, Tenant has not
dealt with any real estate broker, sales person, or finder in connection with
this Lease, and no such person initiated or participated in the negotiation of
this Lease, or showed the Premises to Tenant. Tenant hereby agrees to
indemnify, protect, defend and hold Landlord and the Indemnitees, harmless from
and against any and all liabilities and claims for commissions and fees arising
out of a breach of the foregoing representation. Landlord shall be responsible
for the payment of all commissions to all brokers specified in this Article 22.
ARTICLE TWENTY-THREE
MORTGAGEE PROTECTION
23.01 SUBORDINATION AND ATTORNMENT
This Lease is and shall be expressly subject and subordinate at all times to (a)
any ground or underlying lease of the Real Property, now or hereafter existing,
and all amendments, renewals and modifications to any such lease, and (b) the
lien of any first mortgage or trust deed now or hereafter encumbering fee title
to the Real Property and/or the leasehold estate under any such lease, unless
such ground lease or ground lessor, or mortgage or Mortgagee, expressly provides
or elects that the Lease shall be superior to such lease or mortgage. If any
such mortgage or trust deed is foreclosed, or if any such lease is terminated,
upon request of the Mortgagee or ground lessor, as the case may be, Tenant will
attorn to the purchaser at the foreclosure sale or to the ground lessor under
such lease, as the case may be, provided, however, that such purchaser or ground
lessor shall not be (i) bound by any payment of Rent for more than one month in
advance except payments in the nature of security for the performance by Tenant
of its obligations under this Lease; (ii) subject to any offset, defense or
damages arising out of a default of any obligations of any preceding Landlord;
or (iii) bound by any amendment or modification of this Lease made without the
written consent of the Mortgagee or ground lessor; or (iv) liable for any
security deposits not actually received in cash by such purchaser or ground
lessor. This subordination shall be self-operative and no further certificate
or instrument of subordination need be required by any such Mortgagee or ground
lessor. In confirmation of such subordination, however, Tenant shall execute
promptly any reasonable certificate or instrument that Landlord, Mortgagee or
ground lessor may request. Tenant hereby constitutes Landlord as Tenant's
attorney-in-fact to execute such certificate or instrument for and on behalf of
Tenant upon Tenant's failure to do so within fifteen (15) days of a request to
do so. Upon request by such successor in interest, Tenant shall execute and
deliver reasonable instruments confirming the attornment provided for herein.
23.02 NON-DISTURBANCE AGREEMENT
Notwithstanding the foregoing, Landlord shall cause Landlord's existing
mortgagee to enter into a subordination, non-disturbance and attornment
agreement with Tenant in the form attached hereto as EXHIBIT L within thirty
(30) days following the date specified in Section 1.01(4) hereof.
23.03 MORTGAGEE PROTECTION
Tenant agrees to give any Mortgagee or ground lessor, by registered or certified
mail, a copy of any notice of default served upon the Landlord by Tenant,
provided that prior to such notice Tenant has received notice (by way of service
on Tenant of a copy of an assignment of rents and leases, or otherwise) of the
address of such Mortgagee or ground lessor. Tenant further agrees that if
Landlord shall have failed to cure such default within the time provided for in
this Lease, then the Mortgagee or ground lessor shall have an additional thirty
(30) days after receipt of notice thereof within which to cure such default or
if such default cannot be cured within that time, then such additional notice
time as may be necessary, if, within such thirty (30) days, any Mortgagee or
ground lessor has commenced and is diligently pursuing the remedies necessary to
cure such default (including but not limited to commencement of foreclosure
proceedings or other proceedings to acquire possession of the Real Property, if
necessary to effect such cure). Such period of time shall be extended by any
period within which such Mortgagee or ground lessor is prevented from commencing
or pursuing such foreclosure proceedings or other proceedings to acquire
possession of the Real Property by reason of Landlord's bankruptcy. Until the
time allowed as aforesaid for Mortgagee or ground lessor to cure such defaults
has expired without cure, Tenant shall have no right to, and shall not,
terminate this Lease on account of default. This Lease may not be modified or
amended so as to reduce the rent or shorten the term, or so as to adversely
affect in any other respect to any material extent the rights of the Landlord,
nor shall this Lease be canceled or surrendered, without the prior written
consent, in each instance, of the ground lessor or the Mortgagee.
ARTICLE TWENTY-FOUR
NOTICES
(a) All notices, demands or requests provided for or permitted to be given
pursuant to this Lease must be in writing and shall be personally delivered,
sent by Federal Express or other overnight courier service, or mailed by first
class, registered or certified mail, return receipt requested, postage prepaid.
(b) All notices, demands or requests to be sent pursuant to this Lease shall be
deemed to have been properly given or served by delivering or sending the same
in accordance with this Section, addressed to the parties hereto at their
respective addresses listed below:
Notices to Landlord shall be addressed:
Trizec Xxxxx Center Limited Partnership
Attn: Regional Vice President
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Notices to Tenant shall be addressed:
Genesis Crude Oil, L.P.
Attn: Chief Financial Officer
000 Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
with a copy to Tenant's General Counsel at the same address.
(c) If notices, demands or requests are sent by registered or certified mail,
said notices, demands or requests shall be effective upon being deposited in the
United States mail. However, the time period in which a response to any such
notice, demand or request must be given shall commence to run from the date of
receipt on the return receipt of the notice, demand or request by the addressee
thereof. Rejection or other refusal to accept or the inability to deliver
because of changed address of which no notice was given shall be deemed to be
receipt of notice, demand or request sent. Notices may also be served by
personal service upon any officer, director or partner of Landlord or Tenant or
in the case of delivery by Federal Express or other overnight courier service,
notices shall be effective upon acceptance of delivery by an employee, officer,
director or partner of Landlord or Tenant.
(d) By giving to the other party at least thirty (30) days' written notice
thereof, either party shall have the right from time to time during the term of
this Lease to change their respective addresses for notices, statements, demands
and requests, provided such new address shall be within the United States of
America.
ARTICLE TWENTY-FIVE
MISCELLANEOUS
25.01 LATE CHARGES
All payments required hereunder (other than the Monthly Base Rent and Rent
Adjustments, which shall be due as hereinbefore provided) to Landlord shall be
paid within ten (10) days after Landlord's demand therefor. All such amounts
(including, without limitation Monthly Base Rent and Rent Adjustments not paid
when due shall bear interest from the date due until the date paid at the
Default Rate in effect on the date such payment was due, provided, however, if
Tenant pays such sum prior to the end of the fifth (5th) business day following
the date due, Tenant shall not be liable for any such interest payment.
25.02 WAIVER OF JURY TRIAL
As a material inducement to Landlord to enter into this Lease, Tenant hereby
waives (to the extent permitted by law) as to any Mortgagee succeeding to the
interest of Landlord hereunder (but not as to Landlord) its right to a trial by
jury of any issues relating to or arising out of its obligations under this
Lease or its occupancy of the Premises attributable to matters occurring prior
to the date such Mortgagee succeeds to the interest of Landlord hereunder.
Tenant acknowledges that it has read and understood the foregoing provision.
25.03 DEFAULT UNDER OTHER LEASE - INTENTIONALLY DELETED
25.04 OPTION
This Lease shall not become effective as a lease or otherwise until executed and
delivered by both Landlord and Tenant. The submission of the Lease to Tenant
does not constitute a reservation of or option for the Premises, except that it
shall constitute an irrevocable offer on the part of Tenant in effect for ten
(10) days to lease the Premises on the terms and conditions herein contained.
25.05 TENANT AUTHORITY
Tenant represents and warrants to Landlord that it has full authority and power
to enter into and perform its obligations under this Lease, that the person
executing this Lease is fully empowered to do so, and that no consent or
authorization is necessary from any third party. Landlord may request that
Tenant provide Landlord evidence of Tenant's authority.
25.06 ENTIRE AGREEMENT
This Lease and the Exhibits attached hereto contain the entire agreement between
Landlord and Tenant concerning the Premises and there are no other agreements,
either oral or written. This Lease shall not be modified except by a writing
executed by Landlord and Tenant.
25.07 MODIFICATION OF LEASE FOR BENEFIT OF MORTGAGEE
If Mortgagee of Landlord requires a modification of this Lease which shall not
result in any increased cost or expense to Tenant or in any other material or
adverse change in the rights and obligations of Tenant hereunder, then Tenant
agrees that the Lease may be so modified.
25.08 EXCULPATION
Tenant agrees, on its behalf and on behalf of its successors and assigns, that
any liability or obligation under this Lease shall only be enforced against (a)
Landlord's equity interest in the Property and (b) subject to the rights of any
Mortgagee or lienholder in and to such funds, proceeds awarded or payable to
Landlord as a result of condemnation or a casualty with respect to the Property,
provided that in such event Tenant's claim against Landlord must be attributable
to a claim against Landlord which occurred or arose prior to the date of, or as
a result of, such condemnation of, or casualty to the Property, but in no event
against any other assets of the Landlord, or Landlord's officers or directors.
25.09 ACCORD AND SATISFACTION
No payment by Tenant or receipt by Landlord of a lesser amount than any
installment or payment of Rent due shall be deemed to be other than on account
of the amount due, and no endorsement or statement on any check or any letter
accompanying any check or payment of Rent shall be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of such installment or payment of Rent
or pursue any other remedies available to Landlord. No receipt of money by
Landlord from Tenant after the termination of this Lease or Tenant's right of
possession of the Premises shall reinstate, continue or extend the Term.
25.10 LANDLORD'S OBLIGATIONS ON SALE OF BUILDING
In the event of any sale or other transfer of the Building, Landlord shall be
entirely freed and relieved of all agreements and obligations of Landlord
hereunder accruing or to be performed after the date of such sale or transfer,
provided that all of Landlord's obligations hereunder are specifically assumed
by the buyer or transferee. The term "Landlord" as used in this Lease, insofar
as the performance of any covenants or obligations on the part of Landlord under
the Lease are concerned, shall mean only the owner of the Building, or the
entity with right of possession of the Building at the time in question.
25.11 BINDING EFFECT
This Lease shall be binding upon and inure to the benefit of Landlord and Tenant
and their respective heirs, legal representatives, successors and permitted
assigns.
25.12 CAPTIONS
The Article and Section captions in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe, or describe the scope or
intent of such Articles and Sections.
25.13 APPLICABLE LAW
This Lease shall be construed in accordance with the laws of the State of Texas.
If any term, covenant or condition of this Lease or the application thereof to
any person or circumstance shall, to any extent, be invalid or unenforceable,
the remainder of this Lease, or the application of such term, covenant or
condition to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and each item, covenant
or condition of this Lease shall be valid and be enforced to the fullest extent
permitted by law.
25.14 ABANDONMENT
In the event Tenant abandons the Premises but is otherwise in compliance with
all the terms, covenants and conditions of this Lease, Landlord shall (a) have
the right to enter into the Premises in order to show the space to prospective
tenants during the last nine (9) months of the Term and (b) have the right to
reduce the services provided to Tenant pursuant to the terms of this Lease to
such levels as Landlord reasonably determines to be adequate services for an
unoccupied premises.
25.15 LANDLORD'S RIGHT TO PERFORM TENANT'S DUTIES
If Tenant fails timely to perform any of its duties under this Lease or the
Workletter with any applicable cure periods, Landlord shall have the right (but
not the obligation), to perform such duty on behalf and at the expense of Tenant
without further notice to Tenant, and all sums expended or expenses incurred by
Landlord in performing such duty shall be deemed to be additional Rent under
this Lease and shall be due and payable upon demand by Landlord.
25.16 TEXAS DECEPTIVE TRADE PRACTICES ACT INAPPLICABLE
It is the intent of Landlord and Tenant that the provisions of the Texas
Deceptive Trade Practices-Consumer Protection Act, Subchapter E of Chapter 17 of
the Texas Business and Commerce Code (the "DTPA") be inapplicable to this Lease
and the transaction evidenced hereby. Accordingly, Tenant hereby represents and
warrants to Landlord as follows:
(a) The total consideration paid or to be paid by Tenant over the term of this
Lease exceeds $100,000.00.
(b) Tenant is represented by legal counsel of its own choice and designation in
connection with the transaction contemplated by this Lease;
(c) Tenant's counsel was not directly or indirectly identified, suggested or
selected by Landlord or an agent of Landlord; and
(d) Tenant is leasing the Premises for business or commercial purposes, not for
use as Tenant's residence.
25.17 CLUB MEMBERSHIPS
Upon Tenant's request at any time during the first six (6) months after Tenant
takes occupancy of the Premises, Landlord will provide "Resident Associate" type
memberships (the "Club Memberships") for up to eight (8) of Tenant's employees,
at no initiation charge to Tenant or the designated employees, in the Houston
Metropolitan Racquet Club located in the Project. All membership agreements or
arrangements with the Club Memberships will be handled directly between Tenant's
employees and the Houston Metropolitan Racquet Club, and Tenant's employees
shall be solely responsible for the monthly dues and all additional fees or
charges associated with the use of the Club Memberships. All Club Memberships
may not be transferred and shall revert back to Landlord upon the Termination
Date or earlier termination of the Lease.
25.18 ENTIRE AGREEMENT
No oral statements or prior written material not specifically incorporated
herein shall be of any force or effect. Tenant agrees that in entering into and
taking this Lease, it relies solely upon the representation and agreements
contained in this Lease and no others. This Lease, together with all Exhibits
and Addenda, if any, attached to this Lease, constitutes the whole agreement of
the parties and shall in no way be conditioned, modified or supplemented except
by a written agreement executed by both parties.
25.19 NOTICE OF INDEMNIFICATION
THE PARTIES TO THIS LEASE HEREBY ACKNOWLEDGE AND AGREE THAT THIS LEASE (AND
ATTACHED EXHIBITS) CONTAINS CERTAIN INDEMNIFICATION PROVISIONS.
IN WITNESS WHEREOF, this Lease has been executed as of the date set forth in
Section 1.01(4) hereof.
"Landlord" "Tenant"
TRIZEC XXXXX CENTER LIMITED GENESIS CRUDE OIL, L.P., a Delaware
PARTNERSHIP, a Delaware limited limited partnership
partnership, d/b/a TrizecHahn
Xxxxx Center Limited Partnership By:Genesis Energy L.L.C.,
its general partner
By: Trizec Xxxxx Center, Inc.,
its general partner
By:/s/ Xxxx X. Xxxxx By:/s/ Xxxxx X. Xxxxxxx, XX
----------------- ------------------------
Name: Xxxx X. Xxxxx Name: Xxxxx X. Xxxxxxx, XX
Title: Vice President and Title: Chief Financial Officer
Asst. Secretary
By:/s/ Xxxxx X. Xxxxx
------------------
Name: Xxxxx X. Xxxxx
Title: Vice President
EXHIBIT A
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
LEGAL DESCRIPTION OF LAND
TRACT A - ONE XXXXX CENTER TRACT
Being a tract or parcel containing 82,212 square feet of land in the Obedience
Xxxxx Survey, Abstract 696 and the Xxxx Xxxxxx Survey, Abstract 1, Xxxxxx
County, Texas and being a part of those certain tracts designated as "Tract 1, 2
and Tract 3" per the deed recorded in Volume 7769, Page 561 of the Xxxxxx County
Deed Records, and a part of certain street rights-of-way as closed by City
Council Motion No. 70-1288, passed April 15, 1970 and filed in Volume 8104, Page
1 of said Deed Records and being more particularly described by metes and bounds
as follows with all bearings and coordinates referenced to the Texas Coordinate
System, South Central Zone:
COMMENCING at City Rod 541 (X=3,151,055.22, Y=717,483.00) located in West Dallas
Avenue (80 feet wide) at its intersection with Xxxxx Street (92 feet wide);
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 355.14 feet along the City Reference Line to a
Copperweld Rod (X=3,151,247.92, Y=717,781.26) stamped "AC-1" marking the
reference line intersect with the centerline of Dallas Avenue (80 feet wide);
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 619.84 feet along the centerline of said Dallas
Avenue to a point North 57deg08'03" West, 40.00 feet from the centerline
intersect of Xxxxx Street (80 feet wide);
THENCE, South 32deg51'57" West, 40.00 feet, at a right angle to said
centerline of Dallas Avenue to the POINT OF BEGINNING (X=3,151,746.76,
Y=717,411.34), said point also being the intersect of the southwesterly
right-of-way line of said Dallas Avenue and the northwesterly right-of-way of
said Xxxxx Xxxxxx;
XXXXXX, Xxxxx 00xxx00'00" West, 221.00 feet along the northwesterly right-of-way
line of Xxxxx Street to a point for most southerly corner;
THENCE, North 57deg08'03" West, 372.00 feet to a point for most westerly corner;
THENCE, North 32deg51'57" East, 221.00 feet to a point on the southwesterly
right-of-way line of Dallas Avenue for most northerly corner;
THENCE, South 57deg08'03" East 372.00 feet along said right-of-way line of
Dallas Avenue to the POINT OF BEGINNING, containing a computed area of 82,212
square feet of land.
TRACT B - TWO XXXXX CENTER TRACT
Being a tract or parcel of land containing 98,863 square feet in the Obedience
Smith Survey, Abstract 696, Xxxxxx County, Texas, and being all of that certain
tract of land conveyed to XXXXX CENTER CO. #2 by the deeds recorded in the
Xxxxxx County Official Public Records of Real Property (H.C.O.P.R.R.P.), under
File Number F 124311, Film Code 000-00-0000, File Number F 124312, Film Code
000-00-0000 and File Number F 124313, Film Code 000-00-0000. Said tract being
more particularly described by metes and bounds as follows, with all bearings
and coordinates referenced to the Texas Coordinate System, South Central Zone:
BEGINNING at the intersection (X=3,151,520.75, Y=717,061.57) of the northerly
right-of-way line of Polk Avenue (varying width) with the northwesterly
right-of-way line of Xxxxx Street (80 feet wide);
THENCE, South 87deg36'57" West, 203.28 feet along the northerly right-of-way
line of said Polk Avenue to a 5/8 inch iron rod set for the beginning of a
tangent curve to the right;
THENCE, 106.78 feet northwesterly along said tangent curve and said northerly
right-of-way line of Polk Avenue (Delta Angle = 13deg21'05", Radius = 458.22
feet, Chord = North 85deg42'30" West, 106.54 feet) to a point of non-tangency;
THENCE, continuing along said northerly right-of-way line, North 63deg33'06"
West, 45.53 feet to a point for corner common to the herein described tract
and a 119,251 square foot tract described in exhibit "J" of the document
recorded in H.C.O.P.R.R.P., File Number F 792860, Film Code 000-00-0000;
THENCE, along the boundary common to said tracts the following seven courses;
Departing said north right-of-way line, North 16deg35'07" East, 15.00 feet to a
5/8-inch iron rod set for the beginning of a non-tangent curve to the left;
143.43 feet easterly along said non-tangent curve to the left (Delta Angle =
18deg58'09", Radius = 433.22 feet, Chord = Xxxxx 00xxx00'00" Xxxx, 142.77
feet) to a 5/8-inch iron rod set for point of tangency;
Tangent to said curve, North 87deg36'57" East, 10.28 feet to a 5/8-inch iron rod
set for corner;
North 57deg08'03" West, 219.67 feet;
North 32deg51'57" East, 196.42 feet;
Xxxxx 00xxx00'00" Xxxx, 129.15 feet;
North 32deg51'57" East, 90.00 feet to a point for corner in the southwesterly
line of ONE XXXXX CENTER 1.887 acre tract;
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 262.56 feet along the line common to said 1.887
acre tract and the tract herein described to the northwesterly right-of-way line
of said Xxxxx Xxxxxx;
XXXXXX, Xxxxx 00xxx00'00" West, 195.45 feet along the northwesterly right-of-way
line of said Xxxxx Street to the POINT OF BEGINNING, containing a computed area
of 98,863 square feet of land.
TRACT C - THREE XXXXX CENTER TRACT
BEING a tract or parcel of land containing 119,202 square feet out of the Xxxx
Xxxxxx Survey, Abstract No. 1, and the Obedience Smith Survey, Abstract No. 696,
Xxxxxx County, Texas, and being part of those certain tracts designated as
"Tract 1, 2, 3 and Tract 4" per the deed recorded in Volume 7769, Page 592, of
Xxxxxx County Deed Records, and a part of certain street rights-of-way as closed
by City Council Motion No. 70-1288, passed April 15, 1970 and filed in Volume
8104, Page 1 of said Deed Records and being more particularly described by metes
and bounds as follows with all bearings and coordinates referenced to the Texas
Coordinate System, South Central Zone:
BEGINNING at the most northerly cut-back corner (X=3,150,861.30, Y=717,454.95)
at the intersection of the south right-of-way line of West Dallas Avenue (80
feet wide) with the easterly right-of-way line of Clay Avenue (100 feet wide);
THENCE, North 87deg 37' 33" East, a distance of 156.34 feet along the south
right- of-way line of said West Dallas Avenue to the beginning of a tangent
curve to the left;
THENCE, 135.53 feet northeasterly along the arc of said curve (Delta Angle =
54deg 45' 36", Radius = 141.81 feet, Chord = North 60deg 14' 45" East, 130.43
feet) to a point at the end of said curve in the southeasterly right-of-way line
of Xxxxx Street (varying width), said point also being a point on a non-tangent
curve to the left;
THENCE, 126.55 feet easterly along the southeasterly right-of-way line of said
Xxxxx Street and the arc of said curve (Delta Angle = 10deg 54' 11", Radius =
665.00 feet, Chord = North 38deg 18' 56" East, 126.36 feet);
THENCE, South 32deg 51' 57" West, 172.98 feet;
THENCE, South 57deg 08' 03" East, 20.62 feet;
THENCE, North 77deg 51' 57" East, 45.24 feet;
THENCE, South 57deg 08' 03" East, 121.23 feet;
THENCE, North 32deg 51' 57" East, 27.13 feet;
THENCE, North 77deg 51' 57" East, 7.07 feet;
THENCE, South 57deg 08' 03" East, 126.44 feet;
THENCE, South 32deg 51' 57" West, 90.00 feet;
THENCE, North 57deg 08' 03" West, 129.15 feet;
THENCE, South 32deg 51' 57" West, 196.42 feet;
THENCE, South 57deg 08' 03" East, 219.67 feet;
THENCE, South 87deg 36' 57" West, 10.28 feet to the beginning of a tangent curve
to the right;
THENCE, 143.43 feet westerly along the arc of said curve (Delta Angle = 18deg
58'09", Radius = 433.22 feet, Chord = North 82deg 53' 58" West, 142.77 feet);
THENCE, South 16deg 35' 07" West, 15.00 feet to an intersection with the
northeasterly right-of-way line of said Clay Avenue and a point on a non-tangent
curve to the right;
THENCE, 415.17 feet northwesterly along the northeasterly right-of-way line of
Clay Avenue and the arc of said curve (Delta Angle = 53deg 04' 18", Radius =
448.22 feet, Chord = North 42deg 52' 45" West, 400.49 feet) to a point of a
compound curve to the right;
THENCE, 93.22 feet northwesterly along said northeasterly right-of-way line of
Clay Avenue and the arc of said curve (Delta Angle = 09deg 09' 01", Radius =
583.72 feet, Chord = North 15deg 46' 05" West, 93.12 feet) to a point on a cut-
back to the right;
THENCE, North 38deg 27' 43" East, 13.08 feet along said cut-back to the POINT OF
BEGINNING, containing a computed area of 119,202 square feet of land.
TRACT D - METROPOLITAN GARAGE TRACT
All that certain tract of land out of the X. Xxxxx Survey, A-696, Houston,
Xxxxxx County, Texas and being more particularly described by metes and bounds
as follows:
Commencing at the City of Houston Engineering Department Reference Rod No. 541
located in West Dallas at its intersection with Xxxxx Street, thence
S 89deg45'00" W passing the City of Houston Engineering Reference Rod No. 94 at
520.09' and continuing for a total distance of 732.26' to a point, thence
S 0deg15'00" E - 20.05' to a 5/8" iron rod located in the south right-of-way
line of West Dallas (based on a 90' width) at its intersection with the east
right-of-way line of Xxxxxx Street, and being the POINT OF BEGINNING of the
herein described tract:
THENCE N 89deg45'29" E - 247.30' along the south right-of-way line of said West
Dallas to a point for corner;
THENCE S 00deg15' E - 557.76' to a 3/8" iron rod for corner;
THENCE S 89deg45'07" W - 250.02' to a 3/8" iron rod for corner located in the
east right-of-way line of Xxxxxx Street;
THENCE along the said east right-of-way line of Xxxxxx Street the five following
courses and distances:
N 00deg21'53" W - 100.04' to a point,
N 06deg24'16" E - 30.20' to a point,
N 00deg15' W - 200' to a point,
N 01deg26'42" W - 27.76' to a point,
N 00deg15' W - 200'
to the POINT OF BEGINNING and containing 138,131.8 square feet of land more or
less.
TRACT E - XXXXX CENTER PARKING GARAGE TRACT
Being a tract or parcel of land containing 179,624 square feet of land out of
the Obedience Smith Survey, Abstract 696, Xxxxxx County, Texas, and being a part
of those certain tracts designated as "Tract 4, 5 and Tract 8" per the deed
recorded in Volume 7769, Page 568 of the Xxxxxx County Deed Records, and a part
of certain street rights-of-way as closed by City Council Motion No. 70-1288,
passed April 15, 1970 and filed in Volume 8104, Page 1 of said Deed Records, and
being more particularly described by metes and bounds as follows with all
bearings and coordinates referenced to the Texas Coordinate System, South
Central Zone:
BEGINNING at a point (X=3,150,750.60, Y=717,450.35) at the intersection of the
south right-of-way line of West Dallas Avenue (80 feet wide) with the westerly
right-of-way line of Clay Avenue (100 feet wide), said point also being on a
non-tangent curve to the left;
THENCE, 134.65 feet southeasterly along the westerly right-of-way line of said
Clay Avenue and the arc of said curve (Delta Angle = 11deg17'02", Radius =
683.72 feet, Chord = Xxxxx 00xxx00'00" Xxxx, 134.44 feet) to a point for the
end of said curve and point of a compound curve to the left;
THENCE, 283.23 feet southeasterly, continuing along said westerly right-of-way
line of Clay Avenue and the arc of said curve (Delta Angle = 29deg36'05",
Radius = 548.22 feet, Chord = Xxxxx 00xxx00'00" Xxxx, 280.09 feet) to the end
of said curve and the most northerly corner of a cut-back to the right at the
intersection of said westerly right-of-way line of Clay Avenue and the westerly
right-of-way line of Xxxx Street (60 feet wide):
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 9.77 feet along said cut-back and westerly
right- of-way line of Xxxx Street to the beginning of a non-tangent curve to
the left;
THENCE, 219.99 feet southwesterly along the arc of said curve and said westerly
right-of-way line (Delta Angle = 30deg44'32", Radius = 410.00 feet, Chord =
South 13deg14'49" West, 217.36 feet) to a point of tangency;
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 60.47 feet along said westerly right-of-way line
to the most northerly corner of a cut-back to the right;
THENCE, South 42deg45'03" West, 14.17 feet along said cut-back and westerly
right-of-way line to a point at the intersection of said westerly right-of-
way line of Xxxx Street and the north right-of-way line of Xxxxxxx Street (60
feet wide);
THENCE, South 87deg37'33" West, 255.65 feet along the north right-of-way line of
said Xxxxxxx Street to an angle point in said north right-of-way;
THENCE, South 85deg38'14" West, 34.46 feet, continuing along the north right-of-
way line of said Xxxxxxx Street to a nail set in concrete for southwest corner;
THENCE, North 02deg22'27" West, 99.98 feet to an "X" cut in concrete for xx
xxxxx xxxxx;
XXXXXX, Xxxxx 00xxx00'00" West, 557.64 feet to a point for northwest corner,
said point being on the south right-of-way line of said Xxxx Xxxxxx Xxxxxx;
XXXXXX, Xxxxx 00xxx00'00" East, 177.90 feet along the south right-of-way line of
said West Dallas Avenue to the POINT OF BEGINNING, containing a computed area of
179,624 square feet of land.
TRACT F - ANTIOCH PARK TRACT
A tract or parcel containing 27,402 square feet of land out of the Obedience
Smith Survey, Abstract 696, Xxxxxx County, Texas. Said tract also being a
portion of Lots 9 and 10 in Block 3, and Xxxx 0, 0, 0, 0 xxx 0 xx Xxxxx 2 of the
Xxxxxxxx Addition, a subdivision of record per the map recorded in Volume M,
Page 475 of the Xxxxxx County Deed Records, and contains that portion of
Xxxxxxxxx Street that is bounded on the north by Clay Avenue (width varies) and
is bounded on the south by Xxxxxxx Street (50 feet wide). The herein described
tract is more particularly described as follows, with all bearings and
coordinates referenced to the Texas Coordinate System, South Central Zone:
COMMENCING at a Copperweld Rod stamped "AC-5" (X=3,150,906.78, Y=716,037.50)
found at the intersection of the centerlines of Xxxxx Street (80 feet wide) and
Xxxxx Avenue (80 feet wide) from which City Survey Marker 5357-1606-C (City Rod
No. 52) bears South 57deg08'01" East;
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 950.00 feet along the centerline of said Xxxxx
Street;
THENCE, departing said centerline at a right angle, North 57deg08'03" West,
89.73 feet to a 5/8-inch iron rod (X=3,151,346.89, Y=716,884.03) found for the
intersection of the southwesterly right-of-way line of Clay Avenue (varying
width) with the northwesterly right-of-way line of said Xxxxx Street (width
varies at this point), said iron rod being a point on the line common to Lots 8
and 9 in said Block 2 and the POINT OF BEGINNING;
THENCE, South 02deg07'27" East, 61.20 feet along the northwesterly right-of-way
line of said Xxxxx Street and the line common to said Lots 8 and 9 to a 5/8-inch
iron rod found for the new northerly right-of-way line of Xxxxxxx Street (50
feet wide);
THENCE South 87deg37'33" West, 265.27 feet along the new northerly right-of-way
line of said Xxxxxxx Street to a 5/8-inch iron rod found on the line common to
Lots 9 and 8 in said Block 3;
THENCE, North 02deg07'27" West, 95.63 feet along said common line to a 5/8-inch
iron rod found at the corner common to Lots 2, 3, 8 and 9 in said Block 3;
XXXXXX, Xxxxx 00xxx00'00" Xxxx, 99.99 feet along the line common to Lots 9,
10, 2 and 1 in said Block 3 to a 5/8-inch iron rod found for the corner
common to said Lots 1 and 10 in the westerly right-of-way line of abandoned
Xxxxxxxxx xxxxxx;
XXXXXX, Xxxxx 00xxx00'00" East, 17.50 feet to the centerline of said Xxxxxxxxx
Xxxxxx;
XXXXXX, Xxxxx 00xxx00'00" West, 54.49 feet along said centerline to the south
right-of-way line of said Xxxx Xxxxxx;
XXXXXX, Xxxxx 00xxx00'00" Each, 40.34 feet along said southwesterly right-of-way
line of Clay Avenue to a 5/8-inch iron rod found for the beginning of a tangent
curve to the right;
THENCE, 81.46 feet southeasterly along the arc of said curve and southwesterly
right-of-way line (Radius = 538.22 feet, Delta = 8deg40'19", Chord = Xxxxx
00xxx00'00" Xxxx, 81.38 feet) to a 5/8-inch iron rod found for point of
tangency;
THENCE, continuing along the southwesterly right-of-way line of said Xxxx
Xxxxxx, Xxxxx 00xxx00'00" Xxxx, 50.78 feet to the POINT OF BEGINNING,
containing a computed area of 27,402 square feet of land.
EXHIBIT B
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
PLAN OF PREMISES
[TO COME]
EXHIBIT C
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
WORKLETTER
(Tenant Does Work-Allowance)
This Work Letter ("Work Letter") describes and specifies the rights and
obligations of Landlord and Tenant with respect to certain allowances granted to
Tenant hereunder and rights and responsibilities of Landlord and Tenant with
respect to the design, construction and payment for the completion of the
Initial Improvements within the Premises.
1. Definitions. Terms which are defined in the Lease shall have the same
meaning in this Work Letter. Additionally, as used in this Work Letter, the
following terms (when delineated with initial capital letters) shall have the
respective meaning indicated for each as follows:
(a) Allowance shall mean a sum not to exceed $24.00 per square foot of Rentable
Area within the initial 23,690 square feet comprising the Premises (a maximum of
$586,560). A portion of the Allowance not to exceed $3.00 per square foot of
Rentable Area (a maximum of $71,070.00) may be used by Tenant for architectural
and engineering fees and moving fees. The rest of the Allowance shall be used
for the construction of the Initial Improvements.
(b) Basic Construction of the Building shall mean the structure of the Building
as built on the date of this Work Letter, the Shell Improvements, and all other
improvements, fixtures and facilities constituting a part of the Project, as
these exist on the date of this Work Letter if the Building is complete, or as
provided for in Landlord's plans and specifications for the Building if prior to
completion.
(c) Landlord's Architect shall mean the architect designated by Landlord as its
architect, from time to time, to perform the functions of Landlord's Architect
hereunder.
(d) Plans and Specifications shall mean collectively, the plans,
specifications and other information prepared or to be prepared by Tenant's
Architect, engineers and other design professionals and, where necessary, by
Landlord's electrical, mechanical and structural engineers, all at Tenant's
expense, which shall detail the Work required by Tenant in the Premises and
which shall be approved in writing by both Tenant and Landlord prior to the
commencement of such Work.
(e) Tenant's Architect shall mean Xxxxxxx and Partners, who is an architect
licensed to practice in the State of Texas.
(f) Work shall mean all materials and labor to be added to the Basic
Construction of the Building and the Shell Improvements in order to complete the
installation of the Initial Improvements within the Premises for Tenant in
accordance with the Plans and Specifications, including, without limitation any
modification to Basic Construction of the Building or to the Shell Improvements,
any structural modifications to the Building, any electrical or plumbing work
required to meet Tenant's electrical and plumbing requirements, and any special
air conditioning work required to be performed in the Premises.
(g) Cost of the Work shall mean the cost of all materials and labor to be added
to the Basic Construction of the Building and the Shell Improvements in order to
complete the installation of the Initial Improvements within the Premises in
accordance with the Plans and Specifications.
(h) Landlord's Costs shall mean that portion of the Cost of the Work up to, but
not in excess of, the aggregate amount of the Allowance.
(i) Tenant's Costs shall mean that portion of the Cost of the Work in excess of
Landlord's Costs.
(j) Change Costs shall mean all costs or expenses attributable to any change in
the Plans and Specifications which, when added to other costs and expenses
incurred in completing the Work, exceed Landlord's Costs, including, without
limitation, (i) any cost caused by direction of Tenant to omit any item of Work
contained in the Plans and Specifications, (ii) any additional architectural or
engineering services, (iii) any changes to materials in the process of
fabrication, (iv) the cancellation or modification of supply or fabricating
contracts, (v) the removal or alteration of any Work or any plans completed or
in process, or (vi) delays affecting the schedule of the Work.
(k) Working Days shall mean all days of the week other than Saturday, Sunday,
and legal holidays.
(l) Tenant's Contractor shall mean the general contractor selected by Tenant
and approved by Landlord to perform the Work.
(m) Initial Improvements shall mean those improvements or remodeling to the
Premises, if any, which Tenant shall provide according to the terms of this
Workletter.
(n) Landlord Delay shall mean each day beyond designated time periods set forth
in this Workletter that Landlord fails to respond to a request by Tenant for
approval of Tenant's design drawings, Plans and Specifications, or Change
Orders.
2. Procedure and Schedules for the Completion of Plans and Specifications.
The Plans and Specifications shall be completed in accordance with the following
procedure and time schedules:
(a) Design Drawings. Within ten (10) Working Days from execution of the Lease,
Tenant shall submit to Landlord four (4) sets of prints of design drawings,
specifying the intended design, character and finishing of the Initial
Improvements within the Premises. Such package shall include separate drawings
for signs in accordance with Landlord's sign criteria. The design drawings
shall set forth the requirements of Tenant with respect to the installation of
the Initial Improvements within the Premises, and such drawings shall include,
without limiting their scope, a Tenant approved space plan, architectural design
of the space, including office front, plans, elevations, sections, and
renderings indicating materials, color selections and finishes.
(i) Within five (5) Working Days following its receipt of the initial design
drawings, or three (3) Working Days following its receipt of the revised design
drawings pursuant to (ii) below, as applicable, Landlord shall return to Tenant
one set of prints of design drawings with Landlord's suggested modifications
and/or approval.
(ii) If the design drawings are returned to Tenant with comments, but not
bearing approval of Landlord, the design drawings shall be immediately revised
by Tenant and resubmitted to Landlord for approval within five (5) Working Days
of their receipt by Tenant. Unless such action is taken, Tenant will be deemed
to have accepted and approved all of Landlord's comments on the design drawings.
(b) Completion of Plans and Specifications. All Plans and Specifications shall
be prepared in strict compliance with applicable Building standards and
requirements as set forth in the Lease, this Work Letter and otherwise, and
shall also adhere to the design drawings approved by Landlord. In order to
assure the compatibility of Tenant's electrical and mechanical systems and the
compatibility of Tenant's structural requirements with the existing Building and
in order to expedite the preparation of Tenant's electrical, mechanical and
structural drawings Tenant or Tenant's Architect shall deliver to Landlord's
Architect, not later than ten (10) Working Days from the date of Landlord's
approval of design drawings, a detailed plan setting forth any and all
electrical, mechanical and structural requirements, and Tenant's Architect shall
retain, at Tenant's expense, Tenant's electrical, mechanical and structural
engineers to prepare all necessary electrical, mechanical and structural
construction drawings which shall be included as a part of the Plans and
Specifications. All construction documents and calculations prepared by
Tenant's Architect shall be submitted by Tenant, in the form of four (4) sets of
blueline prints, to Landlord for approval within ten (10) Working Days after the
date of receipt by Tenant of Landlord's approval of design drawings. If the
Plans and Specifications are returned to Tenant with comments, but not bearing
approval of Landlord, the Plans and Specifications shall be immediately revised
by Tenant and resubmitted to Landlord for approval within ten (10)Working Days
of their receipt by Tenant. If Tenant fails to resubmit the revised Plans and
Specifications to Landlord within ten (10) Working Days, Tenant will be deemed
to have accepted and approved all of Landlord's comments to the Plans and
Specifications.
(i) The fees for Tenant's Architect and any consultants or engineers retained
by or on behalf of Tenant or Tenant's Architect (including, but not limited to,
the electrical, mechanical and structural engineers required to be retained
under this paragraph) shall be paid by Tenant.
(ii) Tenant shall have the sole responsibility for compliance of the Plans and
Specifications with all applicable statutes, codes, ordinances and other
regulations, including the Americans with Disabilities Act, and the approval of
the Plans and Specifications or calculations included therein by Landlord shall
not constitute an indication, representation or certification by Landlord that
such Plans and Specifications or calculations are in compliance with said
statutes, codes, ordinances and other regulations. In instances where several
sets of requirements must be met, the requirements of Landlord's insurance
underwriter or the strictest applicable requirements shall apply where not
prohibited by applicable codes.
(iii) Upon completion of the Initial Improvements, if so required by
Landlord, Tenant shall deliver to Landlord, at Tenant's expense, an "as-built"
set of Plans and Specifications for the Premises in AutoCad or comparable
format, together with such other information required by Landlord to place the
information from the "as-built" Plans and Specifications on to Landlord's data
base.
3. Payments. Landlord's obligation for payment with respect to the Work shall
not exceed the aggregate amount of Landlord's Costs; and after Landlord has
reimbursed Tenant in an amount equal to Landlord's Costs, Tenant shall
thereafter pay all Cost of the Work, including, without limitation, any Change
Costs. Tenant may submit to Landlord a request for payment no more than once
every thirty (30) days. In each such request, Tenant shall submit to Landlord
copies of all invoices and Tenant shall certify that such request represents a
just estimate of costs reimbursable to Tenant and that there are no known
mechanic's or materialmen's liens outstanding at the date of requests and that
there is no known basis for the filing of any mechanic's or materialmen's liens
relating to the Work and that waivers from all subcontractors, mechanics and
materialmen have been obtained in such form as to constitute an effective waiver
of lien under the laws of the State of Texas. Landlord shall pay the amount due
under each request for payment within thirty (30) days of receipt of such items.
Landlord shall apply that portion of the Allowance not utilized by Tenant (up to
$5.00 per square foot of Rentable Area within the Premises, a maximum of
$118,450) against Rent next due from Tenant.
4. Performance of the Work. Tenant shall, at its expense and in a manner and
on terms and conditions and at times satisfactory to and approved in writing by
Landlord, construct, install and complete the Initial Improvements in the
Premises subject to the following requirements.
(a) Tenant shall commence, and shall thereafter prosecute diligently to
completion, the Work.
(b) Tenant shall use only contractors, subcontractors and workers approved by
Landlord (such approval not to be unreasonably withheld, conditioned, or
delayed) in writing prior to Tenant's contracting with such contractor or such
contractors contracting with such subcontractors. Landlord shall have the right
to stop all work in the Premises, at no cost to Landlord, if any contractor,
subcontractor or worker working in the Premises is not so approved by Landlord.
Tenant shall cause the Tenant's Contractor to perform the Work in conformity
with Landlord's requirements as set forth in "Manager's Conditions for Tenant
Managed Construction" and in substantial accordance with the Plans and
Specifications.
(c) The Work shall not adversely affect any structural component of the
Building or the Building's HVAC system, plumbing system, electrical system, or
other mechanical systems or elevators. The Work shall be generally consistent
in quality with the quality of construction of the Building. Neither the Work
nor the installation of Tenant's furniture, fixtures and equipment shall exceed
the presently existing live load capacity of the floor on which the Premises are
located without Landlord's prior written approval. Tenant shall remove all
debris and waste material relating to any construction area and leave the
immediately surrounding areas in broom-clean condition.
(d) As soon as reasonably practical, but in any event prior to the commencement
of the Work, Tenant shall furnish to Landlord certificates of insurance
evidencing builder's risk and liability insurance coverage naming Landlord and
Tenant as additional named insureds, as their interests may appear, in amounts
and coverages satisfactory to Landlord and issued by an insurance company or
companies which carries a policy holders rating of not less than "A+" and a
financial rating of not less than "VIII" as designated in the most current
Best's Insurance Guide and which shall be licensed to do business in the State
of Texas.
(e) Landlord shall review and monitor the construction of the Work. Tenant and
its contractors shall cooperate with the Landlord as appropriate.
(f) All materials used in the construction, installation and completion of the
Work shall be at least Building standard. The Work shall be completed in a good
and workmanlike manner.
(g) Tenant shall cause all work relating to the Work to be performed in a good
and workmanlike manner at Tenant's expense in compliance with all applicable
legal requirements by contractors approved in advance in writing by Landlord in
accordance with the Plans and Specifications.
(h) Tenant's contractors, laborers, materialmen and others furnishing labor or
materials for the Work shall work in harmony and not interfere with any labor
utilized by Landlord, Landlord's contractors or mechanics or by any other tenant
or such other tenant's contractors or mechanics; and if at any time such entry
by one or more persons furnishing labor or materials for the Work shall cause
disharmony or interference, Landlord may require Tenant to cause the Work to
cease immediately at no cost to Landlord, and cause the disharmony or
interference to cease.
(i) Tenant's Contractor, its subcontractors and suppliers and their employees
shall use only the service elevators and shall observe all the rules and
regulations of the Project and Building while in the Building. Tenant shall be
responsible for all cleaning, repair and maintenance of any area of the Building
damaged or disturbed in connection with the Work.
(j) Tenant acknowledges that the mechanical rooms on Floor 25 of the Building
may contain asbestos. Landlord will not be required to remove any asbestos from
the mechanical rooms on Floor 25 of the Building. However, if Landlord elects
not to remove any asbestos from such mechanical rooms, Landlord shall be
responsible for any excess out-of-pocket costs incurred by Tenant in the
performance of the Work with respect to such mechanical rooms and the mechanical
systems of the Building directly resulting from the presence of asbestos.
Tenant will not commence or perform any Work in the mechanical rooms without
Landlord's prior written approval and supervision. Any asbestos containing
material which is not removed shall be covered by an operation and maintenance
program established and maintained by Landlord in accordance with any laws,
ordinances, orders, rules, regulations and other requirements of governmental
authority, whether now in force or hereafter enacted, for the purpose of
protecting same from disturbance. Tenant agrees to comply with Landlord's
operation and maintenance program with respect to the containment of asbestos.
Furthermore, Landlord, at Landlord's expense, shall comply with all laws,
ordinances, orders, rules, regulations and other requirements of governmental
authority, whether now in force or hereafter enacted, which impose any duty with
respect to or otherwise relate to the abatement, removal or containment of
asbestos containing materials on Floor 25 of the Building.
(k) Tenant shall indemnify and hold Landlord, the manger and all of their
employees and agents, harmless against any and all claims, demands, loss or
damages (including attorney's fees and expenses) arising out of or in connection
with any of the Work.
5. Change Orders. All changes and modifications in the Work from that
contemplated in the Plans and Specifications, whether or not such change or
modification gives rise to a Change Cost, must be evidenced by a written Change
Order executed by both Landlord and Tenant. In that regard, Tenant shall submit
to Landlord such information as Landlord shall require with respect to any
Change Order requested by Tenant. After receipt of requested Change Order,
together with such information as Landlord shall require with respect thereto,
Landlord shall return to Tenant within two (2) Working Days either the executed
Change Order, which will evidence Landlord's approval thereof, or the Plans and
Specifications with respect thereto with Landlord's suggested modification.
6. Tenant License To Enter Premises. Landlord shall permit Tenant and its
agents to enter the Premises prior to the Commencement Date in order that Tenant
may perform the Work. The foregoing license to enter prior to the Commencement
Date, however, is conditioned upon worker's compensation and public liability
insurance and property damage insurance, all in amounts and with companies and
on forms satisfactory to Landlord being provided and at all times maintained by
Tenant's contractors engaged in the performance of the Work, and certificates of
such insurance being furnished to Landlord prior to commencing the Work. If at
any time such entry shall cause disharmony and interference to other
contractors, or labor, including strikes or other work stoppages, this license
may be immediately withdrawn by Landlord upon notice to Tenant. During such
entry, Tenant shall be deemed to be obligated by all of the terms, covenants,
provisions, and conditions of the Lease except as to the covenant to pay rent.
During such entry, Tenant acknowledges that Landlord shall have no obligation
under the Lease with respect to the Premises and specifically shall have no
obligation to provide those services called for under the Lease with respect to
the Premises other than Building Standard Capacity electricity, freight elevator
service and water. During the pendency of the Work, Tenant's general contractor
and subcontractor(s) shall have the right to park in designated spaces in
Landlord's surface parking lot located adjacent to the Building at no cost to
Tenant or such contractor and subcontractor(s). Tenant further acknowledges that
Landlord shall not be liable in any way for any injury, loss or damage which may
occur to any of the workers performing the Work, the same being solely at
Tenant's risk.
7. Liens. All work in connection with the Work shall be done and completed,
in such manner to insure that no mechanic's, materialman's or similar liens
attach to the Building and Tenant shall obtain from Tenant's Contractor, and
subcontractors and materialmen lien waivers and releases, copies of which shall
be furnished to Landlord when received. If a claim for any such lien shall be
filed against the Building or any part thereof, Tenant shall have such claim of
lien immediately removed and present evidence of such removal to Landlord by
bonding or other method acceptable to Landlord.
8. Whole Agreement; No Oral Modification. This Work Letter embodies all
representations, warranties and agreements of Landlord and Tenant with respect
to the matter described herein, and this Work Letter may not be altered or
modified except by an agreement in writing signed by the parties.
9. Paragraph Headings. The paragraph headings contained in this Work Letter
are for convenient reference only and shall not in any way affect the meaning or
interpretation of such paragraphs.
10. Notices. All notices required or contemplated hereunder shall be given to
the parties in the manner specified for giving notices under the Lease.
11. Binding Effect. This Work Letter shall be construed under the laws of the
State of Texas and shall be binding upon and shall inure to the benefit of the
parties hereto and their respective permitted successors and assigns.
12. Conflict. In the event of conflict between this Work Letter and any other
exhibits or addenda to this Lease, this Work Letter shall prevail.
EXHIBIT D
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
RULES AND REGULATIONS
1. Sidewalks, doorways, vestibules, halls, stairways, and similar areas shall
not be obstructed nor shall refuse, furniture, boxes or other items be placed
therein by Tenant or its officers, agents, servants, and employees, or used for
any purpose other than ingress and egress to and from the leased premises, or
for going from one part of the Building to another part of the Building.
Canvassing, soliciting and peddling in the Building are prohibited.
2. Plumbing fixtures and appliances shall be used only for the purposes for
which constructed, and no unsuitable material shall be placed therein. Damages
resulting from misuse of fixtures or appliances by Tenant, or its employees,
agents or contractors, shall be paid by Tenant.
3. No signs, directories, posters, advertisements, or notices shall be painted
or affixed on or to any of the windows or doors, or in corridors or other parts
of the Building, except in such color, size, and style, and in such places, as
shall be first approved in writing by Landlord, not to be unreasonably withheld,
conditioned or delayed. Building standard suite identification signs will be
prepared by Landlord at Tenant's expense. Landlord shall have the right to
remove all unapproved signs without notice to Tenant, at the expense of Tenant.
4. Tenants shall not do, or permit anything to be done in or about the
Building, or bring or keep anything therein, that will in any way increase the
rate of fire or other insurance on the Building, or on property kept therein or
otherwise increase the possibility of fire or other casualty. Electric current
shall not be used for cooking (other than microwave ovens) or heating without
prior written permission from Landlord.
5. Landlord shall have the power to prescribe the weight and position of heavy
equipment or objects which may over stress any portion of the floor. All damage
done to the Building by the improper placing of such heavy items by Tenant, its
employees, agents or contractors will be repaired at the sole expense of Tenant.
6. Tenant shall notify the Building manager when safes or other heavy
equipment are to be taken on or out of the Building, and the moving shall be
done after written permission is obtained from Landlord on such conditions as
Landlord shall require.
7. For tenants on multi-tenant floors, corridor doors, when not in use, shall
be kept closed.
8. All deliveries must be made via the service entrance and service elevator,
when provided, during normal working hours. Landlord's written approval must be
obtained for any delivery after normal working hours.
9. Each tenant shall cooperate with Landlord's employees in keeping its leased
premises neat and clean. Nothing shall be swept or thrown into corridors,
halls, elevator shafts, stairways, or other public areas, nor shall tenants
place any trash receptacles in these areas.
10. Tenants shall not cause or permit any improper noises in the Building, or
allow any unpleasant odors to emanate from the leased premises, or otherwise
interfere, injure or annoy in any way other tenants, or persons having business
with them.
11. No animals shall be brought into or kept in or about the Building, except
guide dogs or similar support animals accompanying persons who are physically
disabled.
12. When conditions are such that Tenant must dispose of crates, boxes, etc.,
it will be the responsibility of Tenant to dispose of same prior to, or after
the hours of 7:30 a.m. and 5:30 p.m., respectively.
13. No machinery of any kind, other than ordinary office machines such as
typewriters and calculators, shall be operated on the leased premises without
the prior written consent of Landlord, nor shall a tenant use or keep in the
Building any inflammable or explosive fluid or substance (including Christmas
trees and ornaments), or any illuminating materials, except candles. No space
heaters shall be operated in the Building.
14. No bicycles, motorcycles or similar vehicles will be allowed in the
Building.
15. No nails, hooks, or screws (other than for hanging pictures, diplomas, and
other personal belongings of Tenant's employees) shall be driven into or
inserted in any part of the Building except as approved by Landlord.
16. Landlord has the right to evacuate the Building in the event of an
emergency or catastrophe.
17. No food and/or beverages shall be distributed on a retail basis from
Tenant's office without the prior written approval of the Building manager. At
any party where alcoholic beverages are to be consumed on Building premises,
Tenant is required to have two (2) off-duty police officers attend such party.
18. No additional locks shall be placed upon any doors without the prior
written consent of Landlord. Four (4) keys per entry door shall be furnished by
Landlord, and the same shall be surrendered upon termination of this Lease.
Tenant shall then give Landlord or his agent an explanation of the combination
of all locks on doors or vaults. No duplicates of such keys shall be made by
Tenant. Additional keys shall be obtained only from Landlord at Landlord's
costs thereof plus a ten percent (10%) overhead charge.
19. Tenants will not locate furnishings or cabinets adjacent to mechanical or
electrical access panels or over air conditioning outlets so as to prevent
operating personnel from servicing such units as routine or emergency access may
require. Cost of moving such furnishings for Landlord's access will be for
Tenant's account. The lighting and air conditioning equipment of the Building
will remain the exclusive charge of the Building designated personnel.
20. Tenant shall comply with parking rules and regulations as may be posted or
distributed from time to time.
21. No portion of the Building shall be used for the purpose of lodging rooms.
22. Vending machines or dispensing machines of any kind will not be placed in
the leased premises by a tenant without prior written approval by Landlord not
to be unreasonably withheld, conditioned or delayed.
23. Prior written approval, which shall be at Landlord's sole discretion, must
be obtained for installation of window shades, blinds, drapes or any other
window treatment for external windows of any kind whatsoever. Landlord will
control all internal lighting that may be visible from the exterior of the
Building and shall have the right to change any lighting which has not been so
approved by Landlord, without notice to Tenant, at Tenant's expense.
24. No tenant shall make any changes or alterations to any portion of the
Building without Landlord's prior written approval, which may be given on such
conditions as Landlord may elect. All such work shall be done by Landlord or by
contractors and/or workmen approved by Landlord, working under Landlord's
supervision.
25. Tenant and its contractors shall provide Landlord with Material Safety Data
Sheets (MSDS) for all materials or substances being used or stored in or about
the Building. The MSDS will be provided prior to bringing the materials or
substances into the Building.
26. The directory board of the Building will be provided for the display of the
name and location of tenants only. Tenant will be provided one (1) line or
strip on the Building directory board for every two thousand (2,000) square feet
of space (up to fourteen (14) lines for the initial Premises). Any additional
lines which Tenant shall desire to place upon said directory board over and
above this allowance must first be approved by Landlord, and if so approved, a
charge will be made therefor.
27. Tenants shall ensure that the doors of their leased premises are closed and
securely locked and must observe strict care and caution that all water faucets,
water apparatus and utilities are shut off before a tenant and such tenant's
employees leave the leased premises, so as to prevent waste or damage. On
multiple-tenancy floors, all tenants shall keep the door or doors to the
Building corridors closed at all times except for ingress and egress.
28. Tenants shall exercise reasonable precautions in the protection of their
personal property from loss or damage by keeping doors to unattended area
locked. Tenants shall also report any thefts or losses to the Building manager
as soon as reasonably possible after discovery and shall also notify the
Building manager of the presence of any persons whose conduct is suspicious or
causes a disturbance.
29. Firearms of any caliber or make are strictly prohibited from being carried
or stored in the Building. Requests for an exception to this policy must be
submitted in writing to Landlord prior to any introduction of a firearm in the
Building and must detail the reasons for the requested exception. Any exception
permitting a person to carry or store a firearm in the Building must be in
writing signed by Landlord and shall contain such conditions and provisions as
Landlord may specify in its sole discretion. Notwithstanding the grant of any
exception, Landlord shall retain the right to revoke such permission at any time
and for any reason, including without limitation, the unsafe, rude, offensive,
alarming or reckless display or carrying of the firearms.
30. Landlord shall not be responsible to the tenants, their agents, employees
or invitees for any loss of money, jewelry or other personal property from the
leased premises or public areas or for any damages to any property therein from
any cause whatsoever whether such loss or damage occurs when an area is locked
against entry or not.
31. Movement in or out of the Building of furniture or office equipment, or
dispatch or receipt by tenants of any heavy equipment, bulky material or
merchandise which requires use of elevators or stairways, or movement through
the Building entrances or lobbies shall be restricted to such hours as Landlord
shall reasonably designate. All such movement shall be in a manner to be agreed
between the tenants and Landlord in advance. Such pre-arrangement shall be
initiated by the tenant. The time, method, and routing of movement and
limitations for safety or other concern which may prohibit any article,
equipment or other item from being brought into the Building shall be subject to
Landlord's reasonable discretion and control. Although Landlord or its
personnel may participate in or assist in the supervision of such movement, the
tenant assumes final responsibility for all risks as to damage to articles moved
and injury to persons or public engaged or not engaged in such movement,
including equipment, property and personnel of Landlord if damages or injured as
a result of acts in connection with carrying out this service for a tenant from
time of entering the property to completion of work. Landlord shall not be
liable for acts of any person engaged in, or any damage or loss to any of said
property or persons resulting from any act in connection with such service
performed for a tenant.
32. Tenants shall not employ any person for the purpose of cleaning other than
the authorized cleaning and maintenance personnel for the Building unless
otherwise approved in writing by Landlord. To ensure orderly operation of the
Building, Landlord reserves the right to approve all concessionaires, vending
machine operators or other distributors of cold drinks, coffee, food or other
concessions, water, towels, or newspapers.
33. Tenants, their employees, guests and invitees may be called upon to show
suitable identification and/or sign a building register when entering or leaving
the Building at times other than normal Building operating hours. All tenants
shall cooperate fully with Building security personnel in complying with such
requirements.
34. Tenants shall not solicit from or circulate advertising material among
other tenants of the Building except the regular use of the U.S. mail service.
Tenants shall notify the Building manager or the Building security personnel
promptly if it comes to their attention that any unauthorized persons are
soliciting from or causing annoyance to tenants, their employees, guests or
invitees.
35. Landlord reserves the right to deny entrance to the Building or remove any
person or persons from the Building in any case where the conduct of such person
or persons involves a hazard or nuisance to any tenant of the Building or to the
public or in the event of fire or other emergency, riot, civil commotion or
similar disturbance involving risk to the Building, tenants or the general
public.
36. Landlord reserves the right to rescind any of these rules and make such
other and further rules and regulations as in its judgment shall from time to
time be necessary or advisable for the operation of the Building, which rules
shall be binding upon each tenant upon delivery to such tenant of notice thereof
in writing.
EXHIBIT E
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
PARKING
This EXHIBIT E ("Parking Exhibit") describes and specifies Tenant's non-
exclusive right to use twenty-eight (28) parking spaces (collectively,
"Spaces") located on such levels inside one or more of the Building's parking
garages as set forth on Schedule 1 attached to this Parking Exhibit and
incorporated herein by reference, all upon the terms and conditions set forth
below. Landlord shall also provide to Tenant on a month-to-month basis up to
thirty-three (33) permits to park in unreserved spaces (the "Additional Spaces")
in the Metropolitan Parking Garage (as defined below). The parking garage
beneath the Building shall be referred to as the "Building Garage." The parking
garage located at 000 Xxxx Xxxxxx shall be referred to as the "Xxxxx Center
Parking Garage." The parking garage located at 000 Xxxx Xxxxxx Xxxxxx shall be
referred to as the "Metropolitan Parking Garage." The Building Garage, Xxxxx
Center Parking Garage and Metropolitan Parking Garage may be hereinafter
referred to individually and collectively as the "Parking Garage."
1. Definitions. The terms which are defined in the Lease shall have the same
meanings in this Parking Exhibit.
2. Grant and Rental Fee. Provided no event of default has occurred and is
continuing under the Lease, Tenant shall rent (a) on a "must-take" basis, the
Spaces during the entire Term and (b) on a month-to-month basis, the Additional
Spaces, at such monthly rates (together with any applicable tax thereon) and
subject to such terms, conditions, and regulations as are, from time to time,
promulgated by Landlord or the manager of the Parking Garage, as applicable, and
charged or applicable to patrons of the Parking Garage for spaces similarly
situated therein. In the event the Premises are increased or decreased during
the Term other than pursuant to EXHIBIT H to the Lease, the number of Spaces
available to Tenant shall likewise be increased or decreased so that the
aggregate number of Spaces to which Tenant is entitled shall equal one (1)
unreserved Space for each one thousand (1,000) square feet of Rentable Area
within the Premises.
3. Unavailability of Spaces. If the Spaces are not available or become
unavailable to Tenant (due to causes beyond the reasonable control of Landlord)
during any portion of the Term of this Lease, Landlord shall make available to
Tenant alternate parking spaces located reasonably near the Building until the
Spaces are made available to Tenant. Landlord shall not be obligated to provide
replacement parking for the Additional Spaces should any of same become
unavailable.
4. Risk. All motor vehicles (including all contents thereof) shall be parked
in the Spaces and the Additional Spaces at the sole risk of Tenant, its
employees, agents, invitees and licensees, it being expressly agreed and
understood that Landlord has no duty to insure any of said motor vehicles
(including the contents thereof), and that Landlord is not responsible for the
protection and security of such vehicles. Landlord shall have no liability
whatsoever for any property damage and/or personal injury which might occur as a
result of or in connection with the parking of said motor vehicles in any of the
Spaces and the Additional Spaces, and Tenant hereby agrees to indemnify and hold
Landlord harmless from and against any and all costs, claims, expenses, and/or
causes of action which Landlord may incur in connection with or arising out of
Tenant's use of the Spaces and the Additional Spaces pursuant to this Parking
Exhibit.
5. No Bailment. It is further agreed that this Parking Exhibit shall not be
deemed to create a bailment between the parties hereto, it being expressly
agreed and understood that the only relationship created between Landlord and
Tenant hereby is that of licensor and licensee, respectively.
6. Rules and Regulations. In its use of the Spaces and the Additional Spaces,
Tenant shall follow all of the Rules and Regulations of the Building (attached
to the Lease as EXHIBIT D) applicable thereto, any rules and regulations
promulgated by Landlord or the manager of the Parking Garage, as applicable, as
the same may be amended from time to time. Upon the occurrence of any breach of
such rules, failure to make parking rental payments due hereunder or default by
Tenant under the Lease, Landlord shall be entitled to terminate this Parking
Exhibit, in which event Tenant's right to utilize the Spaces and the Additional
Spaces shall thereupon automatically cease.
7. Access. Landlord shall be entitled to utilize whatever access device
Landlord deems necessary (including but not limited to the issuance of parking
stickers or access cards), to assure that only those persons who have contracted
to use spaces in the Parking Garage are using the parking spaces therein.
Landlord currently limits access to the Parking Garage through the use of a
parking entry card system, the cards for which shall be provided by Landlord.
These cards are different from and do not entitle the holder thereof to an
after-hours entry card to the Building (pursuant to the terms of Section 7.04
of the Lease). Landlord agrees to provide to Tenant twenty-eight (28)
parking entry cards. Tenant further agrees to surrender all parking entry
cards in its possession upon the expiration or earlier termination of this
Lease. Landlord shall be entitled to cancel any lost or stolen cards of which
it becomes aware. Tenant shall promptly notify Landlord of any lost or stolen
cards. Tenant shall pay Landlord for each additional card(s) or for each
replacement card(s) for any card(s) lost by or stolen from Tenant, in such
amount as Landlord shall, from time to time determine, the present charge for
such lost or stolen cards being $10.00 per card. Tenant acknowledges that
the parking entry card may also be
the same as the master entry card used for access to the Building during other
than normal business hours, and to the extent the cards are the same, agrees
that the provisions of Section 7.04 of the Lease shall also be applicable and in
the event of a conflict with the provisions of this Parking Exhibit, the
provisions of Section 7.04 shall control. In the event Tenant, its agent or
employees wrongfully park in any of the Parking Garage's spaces, Landlord shall
be entitled and is hereby authorized to have any such vehicle towed away, at
Tenant's sole risk and expense, and Landlord is further authorized to impose
upon Tenant a penalty of $25.00 for each such occurrence. Tenant hereby agrees
to pay all amounts falling due hereunder upon demand therefor, and the failure
to pay any such amount shall additionally be deemed an event of default
hereunder entitling Landlord to cancel Tenant's right to use such spaces in
addition to all of its rights and remedies under this Parking Exhibit.
SCHEDULE 1
TO
EXHIBIT E
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
BUILDING GARAGE
XXXXX CENTER PARKING GARAGE OR METROPOLITAN PARKING GARAGE
RESERVED SPACES
CURRENT MONTHLY
NO. OF SPACES PRICE PER SPACE
------------- ---------------
0 Xxxxx Center Garage
$146.14 (including tax)
0 Metropolitan Parking Garage
$ 97.43 (including tax)
8 Building Garage*
$173.20 (including tax)
TOTAL RESERVED SPACES: 8
UNRESERVED SPACES
CURRENT MONTHLY
NO. OF SPACES PRICE PER SPACE
------------- ---------------
0 Building Garage
$173.20 (including tax)
0 Xxxxx Center Garage
$ 97.43 (including tax)
20 Metropolitan Parking Garage
$ 81.19 (including tax)
TOTAL UNRESERVED SPACES: 20
The parking rates referenced above shall remain in effect through December 31,
1998.
* Tenant's employees utilizing the reserved Spaces in the Building Garage must
park in designated spaces 5 through 12. Tenant acknowledges that such Spaces
are ordinarily unreserved spaces, but as an accommodation to Tenant, such Spaces
will be reserved for Tenant's use; provided, however, Landlord shall have no
obligation to actually designate such Spaces as "Reserved" by signage or
otherwise. In the event other parkers utilize or attempt to utilize such
Spaces, Tenant shall promptly notify Landlord in writing. Thereafter Landlord
will use good faith efforts to prevent other parkers from parking in Spaces 5
through 12, by signage or other means. In addition, Landlord agrees to restripe
spaces 5 through 12 to the standard width of the other spaces in the Building
Garage prior to the Commencement Date. In addition, Tenant shall be entitled to
utilize spaces 5 through 12 in the Building Garage (in connection with its
existing lease in the Building) at no charge through October 31, 1997.
EXHIBIT F
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
RENEWAL OPTION
1. Tenant shall have an option (the "Renewal Option") to renew and extend the
term of this Lease for one additional period of five (5) years, commencing on
the day following the Expiration Date and expiring five (5) years thereafter
(the "Renewal Term"). The Renewal Option may only be exercised by Tenant giving
written notice thereof no more than fifteen (15) months nor less than twelve
(12) months prior to the Expiration Date. If Tenant fails to give notice of
exercise of the Renewal Option within such specified time period, the Renewal
Option shall be deemed waived and of no further force and effect.
2. Tenant's right to extend this Lease as provided for herein can be exercised
only if, at the time of such exercise and upon the commencement of the Renewal
Term (a) no Event of Default then exists under this Lease, and (b) Tenant has
not subleased twenty-five percent (25%) or more of the total Rentable Area of
the Premises (other than to an Affiliate) (unless Landlord, in its sole
discretion, elects to waive either such condition). If either of such
conditions are not satisfied or waived by Landlord, the Renewal Option shall be
terminated and of no further force and effect, any purported exercise thereof
shall be null and void, and this Lease shall terminate on the Expiration Date.
No assignee of this Lease other than an Affiliate of Tenant shall have the right
to exercise the Renewal Option. No subtenant shall have any rights hereunder
whatsoever.
3. If Tenant shall exercise the Renewal Option (in accordance with and subject
to the provisions of this EXHIBIT F), all of the terms, covenants and conditions
provided in this Lease shall continue to apply during the Renewal Term, except
that (i) the Base Rental during the Renewal Term shall be the then Prevailing
Market Rate (as defined below) for the Premises, and (ii) any terms, covenants
and conditions that are expressly or by their nature inapplicable to such
renewal term (including, without limitation, this EXHIBIT F) shall be deemed
void and of no further force and effect.
4. As used herein, the term "Prevailing Market Rate" means the annual amount
per square foot of Rentable Area within the Premises that a willing tenant would
pay and a willing landlord would accept in arm's length, bona fide negotiations
for a renewal of the Premises to be executed at the time of determination and to
commence at the beginning of the Renewal Term, as determined by Landlord in good
faith based upon comparable renewal transactions made in the Building and in
other Class "A" office buildings (including Two Xxxxx Center and Three Xxxxx
Center) located in the Xxxxxxx Xxxxxxxx Xxxxxxxx xx Xxxxxxx, Xxxxx within the
previous twelve (12) months (taking into consideration the location, quality,
and age of the building, floor level, extent of leasehold improvements (existing
or to be provided), rental abatements, lease takeovers/assumptions, moving
expenses and other concessions, term of lease, extent of services to be
provided, distinction between "gross" and "net" lease, base year or other
amounts allowed for escalation purposes (expense stop), other inducements such
as parking spaces or club memberships), the time the particular rental rate
under consideration became or is to become effective, or any other relevant term
or condition. Within ten (10) business days after receipt of Tenant's notice of
exercise of the Renewal Option, Landlord will notify Tenant in writing of its
determination of the Prevailing Market Rate for the Premises for the Renewal
Term. If Tenant disagrees with Landlord's determination, Tenant shall have a
period of ten (10) business days after receipt of Landlord's notice to notify
Landlord in writing of (i) its acceptance of Landlord's determination of the
Prevailing Market Rate (in which event such rate shall apply during the Renewal
Term), or (ii) its disapproval of Landlord's determination of the Prevailing
Market Rate, in which event Landlord and Tenant shall negotiate in good faith
for an additional period of thirty (30) days in an effort to agree on the
Prevailing Market Rate for the Renewal Term. Failure by Tenant to so notify
Landlord within such ten (10) business day period shall be deemed acceptance by
Tenant of Landlord's determination of the Prevailing Market Rate for the Renewal
Term. If the parties are unable to agree on the Prevailing Market Rate within
such additional thirty (30) day period, or if Tenant elects to exercise a
Preferential Right and have the Prevailing Market Rate determined by Qualified
Brokers pursuant to EXHIBIT I, Landlord and Tenant will each within five (5)
days after the expiration of such (30) day period or Landlord's receipt of
Tenant's notice of exercise of the Preferential Right, as the case may be,
nominate and appoint a Qualified Broker to determine the Prevailing Market Rate
for the Premises being renewed or the Preferential Premises, as applicable.
Upon the appointment of the two Qualified Brokers, they will be instructed to
fairly and impartially determine the Prevailing Market Rate for the Premises for
the Renewal Term or for the Preferential Premises for the term thereof, as
applicable. The two (2) Qualified Brokers will afford to Landlord and Tenant
the right to submit evidence with respect to such rate and will, with all
possible speed, make their respective determinations and deliver a written
report thereof to Landlord and Tenant within thirty (30) days after their
appointment. If the higher of the two Prevailing Market Rate determinations is
not more than one-hundred five percent (105%) of the lower determination, the
average of the rates so determined will be binding upon Landlord and Tenant and
will be the Prevailing Market Rate for purposes of the Renewal Option or
Preferential Right. If the higher determination is more than one-hundred five
percent (105%) of the lower determination, the two Qualified Brokers will within
five (5) days after both of such Qualified Brokers have submitted their written
reports to Landlord and Tenant, select by mutual agreement, a third (3rd)
Qualified Broker and give written notice of such appointment to Landlord and
Tenant. If the two Qualified Brokers fail to agree upon the third Qualified
Broker within said five (5) day period, a third Qualified Broker will be
selected by mutual agreement of Landlord and Tenant within a further period of
five (5) days. If Landlord and Tenant cannot so agree on the third Qualified
Broker, then either Landlord or Tenant may elect to have the third Qualified
Broker appointed by any Federal District Judge for the Southern District of
Texas. The third Qualified Broker will be instructed to fairly and impartially
determine which of the two original Qualified Brokers' determinations of the
Prevailing Market Rate most closely approximates his or her determination
thereof, and the determination so selected will be binding upon Landlord and
Tenant and will be the Prevailing Market Rate for purposes of the Renewal Option
or Preferential Right. Landlord and Tenant will pay the fees and expenses of
the Qualified Broker it appoints, and the fees and expenses of the third
Qualified Broker will be divided equally between Landlord and Tenant. If any
Qualified Broker appointed as aforesaid will thereafter become unable or
unwilling to act, such Qualified Broker's successor will be appointed in the
same manner as provided in this paragraph for the appointment of that Qualified
Broker.
As used herein, the term "Qualified Broker" means a real estate broker who (a)
is licensed in the State of Texas, (b) is a member of the Houston Office Leasing
Brokers Association, (c) has been actively and continuously involved in leasing
office space in multi-story office buildings in the Houston Central Business
District for not less than the previous ten (10) year period, (d) during the
preceding three (3) year period has individually represented a party to an
office space lease in the Houston Central Business District of at least 75,000
square feet; and (3) has not represented Landlord or Tenant during the preceding
five (5) year period. Failure by Tenant to withdraw its exercise of the Renewal
Option within such ten (10) day period shall be deemed acceptance by Tenant of
Landlord's determination of the Prevailing Market Rate for the Renewal Term.
5. Tenant acknowledges and agrees that the Renewal Option is subject and
subordinate to the expansion option of Amerada Xxxx Corp. with respect to a
portion of the Building including the Premises (the "Hess Expansion Option").
If Amerada Xxxx Corp. exercises such option pursuant to the terms of its lease
with Landlord, Landlord shall provide written notice thereof to Tenant within
ten (10) days following the date of exercise, and the Renewal Option shall
terminate in all respects.
EXHIBIT G
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
CANCELLATION OPTIONS
Tenant's Cancellation Option
1. Subject to and upon the terms, provisions and conditions set forth in this
EXHIBIT G, Tenant shall have a one-time option (the "Termination Option") to
terminate this Lease effective as of December 31, 2003 (the "Termination Date").
Tenant must give Landlord written notice of its exercise of the Termination
Option not later than December 31, 2002, and pay the Termination Fee (as
hereinafter defined) to Landlord on or prior to the Termination Date. If Tenant
fails to give notice of exercise of the Termination Option on or prior to
December 31, 2002, the Termination Option shall be deemed waived and of no
further force and effect. If Tenant gives timely notice of exercise of the
Termination Option but fails to pay the Termination Fee to Landlord on or before
the Termination Date, Landlord may at its option either (a) deem the Termination
Option waived and of no further force and effect or (b) enforce the termination
of this Lease, effective as of the Termination Date, and Tenant's obligation to
pay the Termination Fee. The provisions of this paragraph shall survive the
expiration or termination of this Lease.
2. Landlord will have the option to revoke and nullify any purported exercise
of the Termination Option by Tenant if at the time of exercise or thereafter
Tenant is in default under the Lease.
3. The "Termination Fee" shall be an amount equal to (a) the unamortized
portion of the Lease Costs (as hereinafter defined) as of the Termination Date
and (b) a sum equal to three (3) monthly installments of gross Rent at the
rate(s) then in effect with respect to the entire Premises then leased by Tenant
as of the Termination Date. For purposes of calculating the Termination Fee,
each component or item of Lease Costs will be deemed to be amortized in equal
monthly installments over the term of this Lease at the rate of ten percent
(10%) per annum beginning on the date that such component or item of Lease Costs
was actually paid by Landlord. "Lease Costs" means all unamortized lease costs
including but not limited to (a) leasehold improvements allowances and
architectural and engineering fees or allowances, if any with respect to the
construction or refurbishment of the initial Premises; (b) the leasing
commissions incurred by Landlord in connection with the execution of this Lease;
(c) club membership initiation fees and (d) all of the foregoing costs and fees
(if applicable) and all other costs incurred by Landlord in connection with
Tenant's lease of any additional space in the Building after the execution date
of this Lease.
Landlord's Cancellation Option
1. In the event of exercise of the Hess Expansion Option, and if Landlord
elects not to relocate, or is unable to relocate Tenant to alternative space in
the Building in accordance with the terms of Article 21 of the Lease, Landlord
shall have a one-time option to terminate this Lease effective as of December
31, 2003. Landlord must give written notice to Tenant of its exercise of such
termination option on or prior to January 31, 2003. If Landlord fails to give
notice of exercise of such termination option, such option shall be deemed
waived and of no further force and effect.
2. Failure of Landlord to exercise such termination option on or prior to
January 31, 2003 shall in no way affect Landlord's rights under Article 21 of
the Lease following such date.
EXHIBIT H
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
MANDATORY EXPANSION
1. As material consideration to Landlord to enter into this Lease, Tenant has
agreed to expand the initial Premises by leasing all of the remaining Rentable
Area on Floor 25 of the Building (the "Expansion Premises") not later than
eighteen (18) months after the Commencement Date (the "Required Expansion
Date"). Landlord and Tenant stipulate and agree that the Rentable Area of the
Expansion Premises is 4,000 square feet, notwithstanding any different
measurement thereof that may be made hereafter by or on behalf of either party.
2. Tenant shall have the right to occupy the Expansion Premises prior to the
Required Expansion Date subject to all terms and conditions of the Lease other
than the payment of Rent.
3. The Base Rental for the Expansion Premises shall be at the same rate as for
the initial Premises, i.e., $14.50 per square foot of Rentable Area through the
end of the sixth (6th) Lease Year of the Lease term, and $17.00 per square foot
of Rentable Area for the remainder of the Lease term. Tenant's obligation to pay
Rent with respect to the Expansion Premises shall commence, and Tenant's
proportionate share of Operating Expenses and Taxes shall be increased based on
the Rentable Area of the Expansion Premises on the Required Expansion Date.
4. Tenant shall be entitled to an Allowance from Landlord of up to $22.25 per
square foot of Rentable Area within the Expansion Premises (a maximum of
$89,000) for the construction of leasehold improvements within the Expansion
Premises in accordance with the terms and conditions of the Workletter. Such
Allowance shall be funded by Landlord within thirty (30) days following the
later to occur of (i) Landlord's receipt of the final invoices and lien waivers
required by Paragraph 3 of the Workletter documenting the Work with respect to
the Expansion Premises or (ii) the Required Expansion Date. Landlord shall
apply that portion of the Allowance not utilized by Tenant (up to $5.00 per
square foot of Rentable Area within the Premises (a maximum of $20,000), against
Rent next due from Tenant.
5. Tenant will execute and return to Landlord an amendment to the Lease adding
the Expansion Premises or such other documentation as Landlord shall reasonably
require in order to confirm the leasing of such Expansion Premises within thirty
(30) days after Tenant's receipt of such documentation.
6. Upon request of Landlord at any time after the Required Expansion Date,
Tenant shall execute and deliver to Landlord a declaration (in a form provided
by Landlord) specifying (i) the Base Rental schedule for the Expansion Premises,
(ii) the Rentable Area of the Expansion Premises, and (iii) Tenant's revised
proportionate share of Taxes and Operating Expenses with respect to the
Expansion Premises.
7. Tenant may occupy and use the Expansion Premises for the purpose of
conducting business as of the Commencement Date subject to all of the terms and
conditions of this Lease other than the payment of Rent. Rent shall not
commence with respect to the Expansion Premises until the Required Expansion
Date.
EXHIBIT I
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
PREFERENTIAL LEASE RIGHT
1. Subject to and upon the terms, provisions and conditions set forth in this
EXHIBIT I, Tenant shall have, and is hereby granted, a preferential right to
lease (the "Preferential Right") during the initial Term of this Lease through
December 31, 2003 certain space (hereinafter sometimes called the "Preferential
Premises") located on Floor 26 of the Building and consisting of approximately
10,847 square feet of Rentable Area. A floor plan of the Preferential Premises
is attached hereto as EXHIBIT I-1.
2. Landlord will have the option to revoke and nullify any purported exercise
of a Preferential Right by Tenant if at the time of exercise or thereafter (a)
Tenant is in default under the Lease, or (b) Tenant has subleased more than
twenty-five percent (25%) or more of the total Rentable Area of the Premises
(other than to an Affiliate), or (c) Tenant has subleased space from any other
tenant of the Building provided at the time of such sublease, Landlord had space
available to accommodate Tenant's space requirements.
3. Should the Preferential Premises become available for Lease or if Landlord
receives an offer from a third-party tenant to lease the Preferential Premises,
Landlord shall promptly deliver to Tenant written notice of such availability or
offer as applicable and the proposed terms for lease of the Preferential
Premises including the rental rate set forth in such third-party offer, or if no
third-party offer, Landlord's determination of the Prevailing Market Rate for
the Preferential Premises determined in accordance with EXHIBIT F (a "Lease
Proposal") . If the Preferential Premises is the subject of lease negotiations
which include other portions of the Building, the foregoing Preferential Right
shall, at Landlord's option, apply to the entire space which is subject to such
negotiations, and, at Landlord's option, Tenant shall be obligated to either
accept or refuse the opportunity to lease such entire space on the terms
provided in the Lease Proposal. Tenant shall have a period of twenty (20) days
if no third-party offer (or ten (10) days if there is a third-party offer) after
receipt of a Lease Proposal to irrevocably and unconditionally exercise its
Preferential Right to lease the entire Preferential Premises (and such
additional space, if applicable); provided, however, if there is no third-party
offer with respect to the Preferential Premises, and Tenant disagrees with
Landlord's determination of the Prevailing Market Rate, Tenant shall indicate
its disapproval of such rate in its exercise notice, and the parties shall
negotiate in good faith for an additional period of thirty (30) days in an
effort to agree on the Prevailing Market Rate for the Preferential Premises. If
the parties are unable to agree on the Prevailing Market Rate within such thirty
(30) day period, the Prevailing Market Rate will be determined by arbitration in
accordance with EXHIBIT F. Except as provided above, any purported conditional
or qualified exercise of a Preferential Right shall be null and void.
4. Upon Tenant's exercise of a Preferential Right Tenant will execute and
return to Landlord any amendment to the Lease adding the Preferential Premises
or such other documentation as Landlord shall reasonably require in order to
confirm the leasing of such Preferential Premises within thirty (30) days after
Tenant's receipt of such documentation.
5. No assignee of this Lease other than an Affiliate of Tenant shall have the
right to exercise the Preferential Right. No subtenant shall have any rights
hereunder whatsoever.
6. If Landlord does not receive written notice from Tenant of its exercise of
the Preferential Right within such twenty (20) day (or ten (10) day period), as
applicable, referenced in paragraph 3, Landlord shall have a period of one
hundred eighty (180) days thereafter to lease the Preferential Premises for an
effective rental rate not less than the effective rental rate reflected by the
Lease Proposal, and without material change to the other terms and conditions
set forth therein. If Landlord does not lease the Preferential Premises within
said one hundred eighty (180) day period, Tenant shall have a Preferential Right
on any subsequent leasing thereof the terms set forth above. However, if Tenant
fails or elects not to exercise a Preferential Right on three (3) separate
occasions, Tenant's rights hereunder shall automatically terminate. The
Preferential Right shall expire in any event if not exercised by Tenant on or
prior to December 31, 2003.
7. Tenant acknowledges and agrees that the Preferential Right is subject and
subordinate to any and all preferential rights, renewal options, expansion
options, and refusal rights of (i) the following existing tenants in the
Building and their permitted assigns: (x) Amerada Xxxx Corp.; (y) Xxxxxxx,
Xxxxxxx & Xxxxx; and (z) Xxxxxxx Gas, L.P., and (ii) future tenant(s) of the
Preferential Premises for which Tenant did not exercise a Preferential Right.
8. Landlord shall deliver, and Tenant will accept the Preferential Premises
broom-clean and vacuumed but otherwise in an "AS IS" and "WITH ALL FAULTS"
condition. Landlord may elect to offer to Tenant a market improvements
allowance, to be applied against the costs of design and construction of the
leasehold improvements desired by Tenant with respect to the Preferential
Premises. However, Tenant acknowledges that any such improvement allowance
granted to Tenant by Landlord shall affect the Prevailing Market Rate payable by
Tenant with respect to the Preferential Premises. The term of the Lease with
respect to the Preferential Premises shall commence upon such space being
delivered to Tenant and shall expire simultaneously with the expiration of the
Lease. Rent will accrue and be due and payable with respect to the Preferential
Premises on the earliest to occur of (a) ninety (90) days following the date
Landlord tenders possession of the Preferential Premises to Tenant; and (b) the
date Tenant occupies the Preferential Premises for the conduct of Tenant's
business.
EXHIBIT J
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
LICENSE FOR ROOFTOP
COMMUNICATIONS EQUIPMENT
1. Landlord hereby grants Tenant the non-exclusive license to use a portion of
the roof of the Building mutually agreed upon by Landlord and Tenant only for
the purpose of installing, operating and maintaining the following (the
"Items"): [DESCRIBE EQUIPMENT] and for no other purpose together with the
necessary conduit sleeving or wiring extending from such equipment through the
interior of the Building to connection points within the Premises.
2. Tenant shall not be obligated to pay any roof rent, but Tenant shall bear
all associated costs without limitation, Tenant shall reimburse Landlord for all
electricity consumed by the Items, as reasonably estimated by Landlord's
engineer, within thirty (30) days after Landlord bills the same from time to
time.
3. Landlord shall permit Tenant reasonable access to the roof for the purposes
permitted hereunder, during normal business hours at the Building upon
reasonable advance notice and scheduling through Landlord's management and
security personnel. Access after normal business hours may be granted by
Landlord in its reasonable discretion, and for such reasonable charges as
Landlord shall impose. Landlord reserves the right to enter the roof, without
notice, at any time for the purpose of inspecting the same, or making repairs,
additions or alterations to the Building, or to exhibit the roof to prospective
tenants, purchasers or others, or for any other reason not inconsistent with
Tenant's rights hereunder. In connection with exercising such rights, Landlord
may temporarily disconnect and/or move the Items, if necessary. The exercise by
Landlord of any of its rights under this Paragraph shall not be deemed an
eviction or disturbance of Tenant's use of the roof.
4. Tenant shall not install the Items, or thereafter make any alterations,
additions or improvements to the roof or the Items without Landlord's prior
written consent, which shall not be unreasonably withheld. Landlord shall
approve or reject the proposed installation of the Items within a reasonable
time after Tenant submits (a) plans and specifications for the installation of
the Items, (b) copies of all required governmental and quasi-governmental
permits, licenses, and authorizations which Tenant will obtain at its own
expense, and (c) a certificate of insurance evidencing the coverage required
herein. Landlord may withhold approval if the installation or operation of the
Items may damage the structural integrity of the Building, interfere with the
operation of any other rooftop communications equipment owned or leased by
Landlord or any other occupant of the Building, reduce the amount of leasable
space in the Building, detract from the appearance of the Building, or for any
other reasonable ground. Tenant may utilize contractor(s) of its choice for the
installation of, and repairs to the Items (subject to Landlord's reasonable
approval). Landlord may require that any installation or other work be done
under the supervision of Landlord's employees or agents, and in a manner so as
to avoid damage to the Building. All installation work shall be performed in a
good and workmanlike manner, in accordance with all governmental requirements.
5. Upon termination of the Lease or this EXHIBIT J, by expiration or
otherwise, Tenant shall disconnect and remove the Items and fully repair and
restore the roof and the affected portions of the Premises and the Building to
the same or better condition than prior to installation of the Items, ordinary
wear and tear, and damage from fire or other casualty not the fault of Tenant
excepted. Tenant shall promptly and properly repair (or at Landlord's option,
pay Landlord's reasonable charges for repairing) during the Term and upon
termination of the Lease or this EXHIBIT J, any roof leaks or other damage or
injury to the roof, or the Building (or contents thereof) caused by Tenant's use
of the roof or its installation, use, maintenance or removal of the Items. If
Tenant does not immediately repair any such leaks, damage or injury, or does not
remove the Items when so required, Tenant hereby authorizes Landlord to make
such repairs or remove and dispose of the Items and Tenant shall promptly pay
Landlord's reasonable charges for doing so. Landlord shall not be liable for
any property so disposed or removed by Landlord.
6. Landlord does not represent or warrant that use of the roof hereunder will
comply with any applicable federal, state, county or local laws or ordinances or
the regulations of any of their agencies, or that the roof will be suitable for
Tenant's purposes. Tenant agrees that Tenant has inspected the roof and agrees
to accept the same hereunder "AS IS" and "WITH ALL FAULTS". Tenant shall at all
times comply with any applicable federal, state, county or local laws or
ordinances, pertaining to Tenant's use of the roof or the Items.
7. Tenant shall indemnify and hold Landlord harmless from and against any and
all loss, cost, claim, damage, liability or expense which Landlord may incur as
a direct or indirect result of Tenant's use of the roof or Items, including but
not limited to attorneys' fees, whether or not any legal action is instituted.
This indemnity obligation shall include Landlord's partners, officers,
directors, trustees, beneficiaries, affiliates and agents ("Indemnitees").
Tenant shall maintain commercial general liability insurance covering risks of
bodily injury, death or property damage arising out of Tenant's use of the roof
or Items, in the amount of at least $2,000,000 combined single limit per
occurrence with a responsible insurance company reasonably satisfactory to
Landlord, which policy shall include a contractual liability endorsement and
shall include Landlord and the other Indemnitees (as defined above) as
additional insureds. Tenant shall provide a certificate of such insurance to
Landlord prior to using the roof, and such insurance policy shall not be
cancelable without at least thirty (30) days' written notice to Landlord.
Landlord shall not be responsible for the Items in the event of loss or damage
thereto from any cause whatsoever. Tenant, on behalf of its insurers, hereby
waives any rights of subrogation against Landlord (or the "Indemnitees" defined
above).
8. Tenant shall not use the roof or the Items so as to interfere in any way
with the ability of Landlord or its tenants and occupants of the Building and
neighboring properties to receive radio, television, telephone, microwave,
short-wave, long-wave or other signals of any sort that are transmitted
through the air or atmosphere, nor so as to interfere with the use of electric,
electronic or other facilities, appliances, personal property and fixtures,
nor so as to interfere in any way with the use of any antennas, satellite dishes
or other electronic or electric equipment or facilities currently or hereafter
located on the roof or any floor or area of the Building.
9. If the roof, Building or Items are materially damaged by fire or other
casualty, this Agreement shall terminate as of the date of such damage, subject
to any provisions hereof which by their terms or reasonable implication shall
survive such termination. Landlord shall have no obligation to provide
substitute space on the roof or to repair or restore the roof or Building. In
the event of such damage, Tenant shall look solely to its insurers for any
claims that Tenant may have in connection with such damage or destruction.
10. This EXHIBIT J creates a license coupled with an interest. Landlord agrees
not to revoke this license until the Lease Term (including any options to renew
thereunder validly exercised) expires or is sooner terminated, or shall default
under this EXHIBIT J and fail to cure within ten (10) days after written notice,
or shall default under the terms of the Lease and fail to cure within the time
periods for curing defaults set forth therein. In any such events, Landlord may
also discontinue providing electricity to the Items. Tenant's rights under this
EXHIBIT J shall not be assignable, nor may Tenant sub-license its rights under
this EXHIBIT J. Tenant may not let any other party tie into or use the Items or
the roof, and Tenant may not transmit or distribute signals through the Items to
any parties not affiliated with Tenant. The rights granted herein are personal
to Tenant. Any default by Tenant under this EXHIBIT J shall also be a default
under the Lease.
EXHIBIT K
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
JANITORIAL SPECIFICATIONS
I. Terms and Conditions
Landlord agrees to perform the herein specified cleaning maintenance services
for the Premises, which services shall be performed under the following terms
and general conditions:
A. Intent of Specifications
It is the intent of these specifications that the Premises be kept reasonably
clean on a regular basis. These specifications should therefore, be referred to
as a guide for the services required to effectively maintain the Premises.
B. Staffing and Back-Up Staff Requirements
1. Normal Working Staff
a. Staffing shall be as required to perform the necessary work to maintain the
level of cleanliness as heretofore specified in Article A, entitled "Intent of
Specifications."
b. Staffing shall include at least one (1) day maid for the common areas of
the Building to accomplish any periodic maintenance herein specified without
decreasing the level of the nightly janitorial services at Landlord' sole cost
and expense.
c. Landlord will periodically inspect areas to be designated by Tenant and
record results of said inspections on a written form, to be supplied by
Landlord, upon Tenant's request.
2. Back-up Staff
a. Landlord shall maintain and show evidence of an adequate back-up labor
force and supervisory staff to be able to assist immediately in case of flood,
fire, natural or man-made disasters, or any other emergency.
b. Landlord must submit a list of at least three emergency telephone numbers
of management-level supervisory personnel and/or an answering service authorized
to dispatch emergency back-up working crews in the event of a request by Tenant
for such services. Landlord will update these emergency telephone numbers as
required throughout the term of this Lease.
D. Supervision
1. Landlord will provide an adequate supervisory staff as required to maintain
the level of cleanliness as previously defined herein.
2. In addition to the supervision of all cleaning services, the supervisory
staff will be responsible for the following:
a. Instructing personnel in the securing of all lighting as soon as possible
each night.
b. Securing all suite entrances in conjunction with the Building's security
requirements.
c. Prompt transmittal in writing of all accident and/or damage reports to
Tenant.
d. A member of the supervisory staff shall be available on request by Tenant
during the normal business hours of the Building to visit with Tenant and answer
complaints of any nature relating to the janitorial function.
E. Bonding
Landlord will cause cleaning personnel to be bonded in amounts to be mutually
agreed upon.
F. Equipment
Landlord will provide all equipment reasonably necessary for the cleaning of the
Premises in accordance with the intent of the specifications. All cleaning
equipment shall be of a type consistent with good cleaning practices. All
equipment shall be kept in good working order at all times and shall be repaired
or replaced when obsolete or defective. Any modifications to equipment required
to prevent damage to any of the architectural finishes of the Premises will be
reasonably attempted by Landlord.
G. Supplies
All supplies reasonably required for the effective cleaning of the Premises in
accordance with the specifications will be supplied by Landlord. A list of all
such supplies will also be supplied by Landlord. All supplies used must be in
compliance with applicable safety rules and regulations, and must be of a nature
that will not mar or cause deterioration of finish surfaces.
H. General Procedures
The following general procedures will be followed by Landlord's janitorial
personnel:
1. Use reasonable efforts to report all damage, breakage, and/or apparent
plumbing or electrical problems to Tenant immediately.
2. Have access to Tenant's emergency telephone list.
3. Report any evidence of security breaches to Tenant immediately.
4. Maintain all janitor's closets, slop sinks and storerooms in a reasonably
clean condition on a regular basis.
5. Lock all entrance doors during the entire cleaning operation. Only the
cleaner assigned to clean each tenant suite and the supervisory staff are to be
admitted to the respective tenant areas.
6. Close all perimeter office doors after cleaning to prevent excessive heat
gain or heat loss in the interior spaces.
7. Make time clock report available to Tenant, upon request.
8. Exercise reasonable diligence in an attempt to prevent damage to corners
and wall finishes by electrical extension cords.
9. Empty buckets only in designated janitorial sinks.
10. Hold doors open by doorstops only, not by foreign materials in the door
jams.
II. Cleaning Specifications
A. Office Areas
1. Empty, clean and damp dust all waste receptacles and remove waste paper and
rubbish from the Premises nightly, wash receptacles as necessary. Provide trash
can liners for all waste receptacles.
2. Vacuum all rugs and carpeted areas in offices, lobbies and corridors
nightly.
3. Hand dust and wipe clean with damp or treated cloth all office furniture,
files, fixtures, paneling, window xxxxx and all other horizontal surfaces
nightly; wash window xxxxx when necessary. Desks and other furniture must be
reasonably cleared of all items by Tenant to be eligible hereunder. (It is the
intent of the parties that cleaning personnel shall not be required to move
items on Tenant's furniture or floors in order to perform any janitorial
services hereunder.)
4. Damp wipe and polish all glass furniture tops nightly. Furniture must be
reasonably cleared of all items by Tenant to be eligible hereunder.
5. Remove all finger marks and smudges from all vertical surfaces, including
doors, door frames, around light switches, private entrance glass and partitions
nightly.
6. Wash clean all water coolers nightly.
7. Sweep all private stairways nightly; vacuum if carpeted.
8. Monitor all stairwells throughout the entire Building daily and keep in
clean condition.
9. Damp mop spillage in office and public areas as necessary.
10. Damp dust all telephones as necessary.
B. Restrooms
1. Mop, rinse and dry floors nightly.
2. Scrub floors as necessary.
3. Clean all mirrors, bright work aud enameled surfaces nightly.
4. Wash and disinfect all basins, urinals and bowls nightly, using scouring
powder to remove stains, and clean undersides of rim of urinals, and bowls.
5. Wash both sides of all toilet seats with soap and water and disinfectant
nightly.
6. Damp wipe nightly, and wash with disinfectant when necessary, all
partitions, tile walls and outside surface of dispensers and receptacles.
7. Empty and sanitize, all receptacles and sanitary disposals nightly;
thoroughly clean and wash at least once per week.
8. Fill toilet tissue, soap, towel, and sanitary napkin dispensers nightly.
9. Clean flushometers, piping, toilet seat hinges and other metal work
nightly.
10. Wash and polish all walls, partitions, tile walls and enamel surfaces from
trim to floor monthly.
11. Vacuum all louvers, ventilating grilles and dust light fixtures monthly.
12. Generally clean common areas, building standard restrooms and refill toilet
tissue, soap, towel, and sanitary napkin dispensers in same at no additional
expense to Tenant whether or not Tenant leases the entirety of the floor in
question.
NOTE: Wash rooms shall be thoroughly cleaned and a disinfectant or deodorant
shall not be used to kill odors. If a disinfectant is necessary, an odorless
product shall be used.
C. Floors
1. Sweep ceramic tile, marble and terrazzo floors nightly; wash, buff or scrub
as necessary.
2. Sweep nightly, using dust-down preparation, ceramic tile, vinyl, rubber or
other composition floors and bases; wax and buff such floors in public areas on
multi-tenant floors monthly.
3. Wax and buff resilient tile flooring in office areas monthly.
4. Vacuum clean all carpeted areas and rugs nightly.
5. Perform carpet shampooing at Tenant's request and xxxx to Tenant.
D. Glass
1. Clean glass entrance doors and adjacent glass panels nightly.
2. Clean inside surface of exterior windows at least once per year.
3. Clean outside surface of exterior windows at least three times per year;
provided, however, in the event Landlord cleans more frequently than three times
per year the exterior windows of floors located above the Premises in such a
manner so as to dirty the windows of the Premises, then Landlord shall clean the
windows of the Premises as frequently as those located above same.
E. High Dusting (quarterly)
1. Dust and wipe clean all closet shelving when empty. Carpet sweep or dry
mop all floors in closets if same are empty.
2. Dust all picture frames, charts, graphs and similar wall hangings.
3. Dust clean all vertical surfaces, such as walls, partitions, doors, door
bucks and other surfaces above shoulder height.
4. Damp dust all ceiling air conditioning diffusers, wall grilles, registers
and other ventilating louvers.
5. Dust the exterior surface of lighting fixtures, including glass and plastic
enclosures.
F. Day Service
1. At least once during the day, check the men's washrooms for soap, towel and
toilet tissue replacement.
2. At least once during the day, check ladies' washrooms for soap, towel,
toilet tissue and sanitary napkin replacement.
3. Vacuum elevator cabs as necessary.
4. Maintain regular surveillance of public areas to ensure cleanliness.
G. General
1. Wipe all interior metal window frames, mullions and other unpainted
interior metal surfaces of the perimeter walls of the Building each time the
interior side of the windows is washed.
2. Keep slopsink rooms in a clean, neat and orderly condition on a regular
basis.
3. Wipe clean and polish all metal hardware, fixtures and other bright work
nightly.
4. Dust and/or wash all directory boards as required; remove fingerprints and
smudges nightly.
5. Maintain the Building lobby, corridors, VIP Parking, Parking Garage and
other public areas of the Building and the Project in a clean condition.
CLEANING SPECIFICATIONS - FREQUENCY SUMMARY
Primary Item Achievement Frequency
------------ ----------- ---------
A. Entrance
Steps and foyer Inspect and sweep 5 x week
Door glass and frames Clean 5 x week
B. Public Areas
Floors - carpet Vacuum and spot clean 5 x week
Floors - compositions Dust sweep and spot mop 5 x week
Furnishings Dust 5 x week
Drinking fountains Clean and disinfect 5 x week
Walls, doors and frames Spot clean 5 x week
Telephones Damp wipe 5 x week
Stairs Inspect 5 x week
Janitor closets Keep clean 5 x week
Stairs Sweep 1 x week
Metal plates and knobs Polish 1 x week
Ledges, xxxxx and rails Dust 1 x week
Stairs (all) Dust mop and spot clean 1 x month
Light fixtures Dust or vacuum 1 x month
Walls Dust 1 x quarter
Window coverings Dust or vacuum 1 x quarter
C. Work Areas (general and private offices, conference, and sales rooms)
Floors - carpet Vacuum 5 x week
Floors - composition Dust sweep and spot mop 5 x week
Trash receptacles Empty and clean 5 x week
Trash Collect 5 x week
Telephones Damp wipe 5 x week
Furnishings - horizontal Dust 5 x week
Glass desk tops Wash and dry polish 5 x week
Glass partitions Spot clean 1 x week
Doors and frames Dust and spot wash 1 x week
Walls and switchplates Spot clean 1 x week
Furnishings - vertical Dust 1 x week
Low ledges and xxxxx Dust 1 x month
High ledges and grills Dust 1 x 2 months
Glass partitions Wash 1 x 2 months
Light fixtures - exterior surfaces Dust or vacuum 1 x quarter
D. Restrooms
Floors Mop and disinfect 5 x a week
Receptacles Empty and disinfect 5 x a week
Fixtures Scour and disinfect 5 x a week
Dispensers Refill and clean 5 x a week
Mirrors Wash and dry polish 5 x a week
Bright metal Clean and polish 5 x a week
Walls, dividers and doors Spot clean or wash 5 x a week
Furnishings Dust or vacuum 5 x a week
Vents and lights Dust or vacuum 1 x a week
Floors Machine scrub As needed
E. Floor Maintenance Profile (programmed floor care)
Main lobby (wood floors excluded) Polish 5 x week
Other lobbies and halls Polish As needed
Lunchrooms and lounges Polish 1 x month
Offices (wood floors excluded) Polish 1 x month
Top-quality, anti-slip floor materials and finishes shall be used at all times.
EXHIBIT L
TO
OFFICE LEASE BETWEEN
TRIZEC XXXXX CENTER LIMITED PARTNERSHIP,
AS LANDLORD,
AND
GENESIS CRUDE OIL, L.P.,
AS TENANT
SUBORDINATION, NON-DISTURBANCE
AND ATTORNMENT AGREEMENT
RECORDING REQUESTED
BY AND WHEN RECORDED
RETURN TO:
_______________________, Esq.
-----------------------
-----------------------
-----------------------
NOTICE: THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT RESULTS
IN YOUR LEASEHOLD ESTATE IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.
DEFINED TERMS
Execution Date:
----------------------------------------------------------------
Beneficiary and Address: Metropolitan Life Insurance Company, a New York
corporation
----------------------------
----------------------------
Attention: Assistant Vice President
with a copy to:
----------------------------
----------------------------
----------------------------
Attention:
------------------
----------------------------------------------------------------
Tenant and Address:
----------------------------
----------------------------
----------------------------
Attention:
------------------
----------------------------------------------------------------
Landlord and Address:
----------------------------
----------------------------
----------------------------
Attention:
------------------
----------------------------------------------------------------
Loan: A first mortgage loan in the original principal amount of
$________________ from Beneficiary
--------------
--
to Landlord.
----------------------------------------------------------------
Note: A Promissory Note executed by Landlord in favor of Beneficiary in the
amount of the Loan dated as of __________________________.
--------------------------
----------------------------------------------------------------
Deed of Trust: A Deed of Trust, Security Agreement and Fixture Filing dated as
of ____________
------------
executed by Landlord, to _____________________, as Trustee, for the benefit of
Beneficiary securing
---------------------
repayment of the Note recorded under Clerk's File No. in
the Official Public
---------------------
Records of Real Property of Xxxxxx County, Texas.
----------------------------------------------------------------
Lease and Lease Date: The lease entered into by Landlord and Tenant dated as of
_____________ covering the Premises.
[Add amendments]
----------------------------------------------------------------
Property:
---------------------
---------------------
---------------------
Attention:
----------
----------------------------------------------------------------
The Property is more particularly described on Exhibit A.
THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (the "Agreement")
is made by and among Tenant, Landlord, and Beneficiary and affects the Property
described in Exhibit A. Certain terms used in this Agreement are defined in the
Defined Terms. This Agreement is entered into as of the Execution Date with
reference to the following facts:
A. Landlord and Tenant have entered into the Lease covering certain space in
the improvements located in and upon the Property (the "Premises").
B. Beneficiary has made or is making the Loan to Landlord evidenced by the
Note. The Note is secured, among other documents, by the Deed of Trust.
C. Landlord, Tenant and Beneficiary all wish to subordinate the Lease to the
lien of the Deed of Trust.
D. Tenant has requested that Beneficiary agree not to disturb Tenant's rights
in the Premises pursuant to the Lease in the event Beneficiary forecloses the
Deed of Trust, or acquires the Property pursuant to the trustee's power of sale
contained in the Deed of Trust or receives a transfer of the Property by a
conveyance in lieu of foreclosure of the Property (collectively, a "Foreclosure
Sale") but only if Tenant is not then in default under the Lease and Tenant
attorns to Beneficiary or a third party purchaser at the Foreclosure Sale (a
"Foreclosure Purchaser").
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties agree as follows:
1. Subordination. The Lease and the leasehold estate created by the Lease and
all of Tenant's rights under the Lease are and shall remain subordinate to the
Deed of Trust and the lien of the Deed of Trust, to all rights of Beneficiary
under the Deed of Trust and to all renewals, amendments, modifications and
extensions of the Deed of Trust.
2. Acknowledgments by Tenant. Tenant agrees that (a) Tenant has notice that
the Lease and the rent and all other sums due under the Lease have been or are
to be assigned to Beneficiary as security for the Loan. In the event that
Beneficiary notifies Tenant of a default under the Deed of Trust and requests
Tenant to pay its rent and all other sums due under the Lease to Beneficiary,
Tenant shall pay such sums directly to Beneficiary or as Beneficiary may
otherwise request. (b) Tenant shall send a copy of any notice or statement
under the Lease to Beneficiary at the same time Tenant sends such notice or
statement to Landlord. (c) This Agreement satisfies any condition or
requirement in the Lease relating to the granting of a non-disturbance
agreement.
3. Foreclosure and Sale. In the event of a Foreclosure Sale,
(a) So long as Tenant complies with this Agreement and is not in default under
any of the provisions of the Lease, the Lease shall continue in full force and
effect as a direct lease between Beneficiary and Tenant, and Beneficiary will
not disturb the possession of Tenant, subject to this Agreement. Tenant agrees
to attorn to and accept Beneficiary as Landlord under the Lease and to be bound
by and perform all of the obligations imposed by the Lease. Upon Beneficiary's
acquisition of title to the Property, Beneficiary will perform all of the
obligations imposed on the Landlord by the Lease except as set forth in this
Agreement; provided, however, that Beneficiary shall not be: (i) liable for any
act or omission of a prior landlord (including Landlord); or (ii) subject to any
offsets for defenses that Tenant might have against any prior landlord
(including Landlord;) or (iii) bound by any rent or additional rent which Tenant
might have paid in advance to any prior landlord (including Landlord) for a
period in excess of one month or by any security deposit, cleaning deposit or
other sum that Tenant may have paid in advance to any prior landlord (including
Landlord); or (iv) bound by any amendment, modification, assignment or
termination of the Lease made without the written consent of Beneficiary; (v)
obligated or liable with respect to any representations, warranties or
indemnities contained in the Lease; or (vi) liable to Tenant or any other party
for any conflict between the provisions of the Lease and the provisions of any
other lease affecting the Property which is not entered into by Beneficiary.
(b) Upon the written request of Beneficiary after a Foreclosure Sale, the
parties shall execute a lease of the Premises upon the same provisions as
contained in the Lease between Landlord and Tenant, except as set forth in this
Agreement, for the unexpired term of the Lease.
(c) If Beneficiary acquires title to the Property as a result of a Foreclosure
Sale, the Lease shall be automatically amended as set forth in Exhibit B.
4. Subordination and Release of Purchase Options. Tenant represents that it
has no right or option of any nature to purchase the Property or any portion of
the Property or any interest in the Landlord. To the extent Tenant has or
acquires any such right or option, these rights or options are acknowledged to
be subject and subordinate to the Deed of Trust and are waived and released as
to Beneficiary and any Foreclosure Purchaser.
5. Acknowledgment by Landlord. In the event of a default under the Deed of
Trust, at the election of Beneficiary, Tenant shall and is directed to pay all
rent and all other sums due under the Lease to Beneficiary.
6. Construction of Improvements. Beneficiary shall not have any obligation or
incur any liability with respect to the completion of the improvements in which
the Premises are located at the commencement of the term of the Lease.
7. Notice. All notices under this Agreement shall be deemed to have been
properly given if delivered by overnight courier service or mailed by United
States certified mail, with return receipt requested, postage prepaid to the
party receiving the notice at its address set forth in the Defined Terms (or at
such other address as shall be given in writing by such party to the other
parties) and shall be deemed complete upon receipt or refusal of delivery.
8. Miscellaneous. Beneficiary shall not be subject to any provision of the
Lease that is inconsistent with this Agreement. Nothing contained in this
Agreement shall be construed to derogate from or in any way impair or affect the
lien or the provisions of the Deed of Trust. This Agreement shall be governed
by and construed in accordance with the laws of the State of Texas.
9. Liability and Successors and Assigns. In the event that Beneficiary
acquires title to the Premises or the Property, Beneficiary shall have no
obligation nor incur any liability [beyond Beneficiary's then equity interest in
the Premises and Tenant shall look solely to Beneficiary's then equity interest
for the payment and performance of any obligations imposed upon Beneficiary
under this Agreement or under the Lease][in an amount in excess of $3,000,000
and Tenant's recourse against Beneficiary shall in no extent exceeds the amount
of $3,000,000.] This Agreement shall run with the land and shall inure to the
benefit of the parties and, their respective successors and permitted assigns
including a Foreclosure Purchaser. If a Foreclosure Purchaser acquires the
Property or if Beneficiary assigns or transfers its interest in the Note and
Deed of Trust or the Property, all obligations and liabilities of Beneficiary
under this Agreement shall terminate and be the responsibility of the
Foreclosure Purchaser or other party to whom Beneficiary's interest is assigned
or transferred. The interest of Tenant under this Agreement may not be assigned
or transferred except in connection with an assignment of its interest in the
Lease which has been consented to by Beneficiary.
IN WITNESS WHEREOF, the parties have executed this Subordination, Non-
disturbance and Attornment Agreement as of the Execution Date.
NOTICE: THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT CONTAINS
PROVISIONS WHICH ALLOW THE PERSON OBLIGATED ON THE LEASE TO OBTAIN A LOAN, A
PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENTS OF THE
PROPERTY. IT IS RECOMMENDED THAT THE PARTIES CONSULT WITH THEIR ATTORNEYS PRIOR
TO THE EXECUTION OF THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT
AGREEMENT.
BENEFICIARY: METROPOLITAN LIFE INSURANCE COMPANY, a New York
corporation
By:
---------------------------------
Its:
---------------------------------
TENANT:
---------------------------------
a
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By:
---------------------------------
Its:
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LANDLORD:
---------------------------------
a
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By:
---------------------------------
Its:
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EXHIBIT A
PROPERTY DESCRIPTION
[TO COME]
EXHIBIT B
AMENDMENTS
In the event of foreclosure of the Deed of Trust, or upon a sale of the Property
pursuant to the trustee's power of sale contained therein, or upon a transfer of
the Property by conveyance in lieu of the foreclosure, the Lease shall be
amended as follows:
