OFFICE LEASE
Exhibit 10.31
THIS OFFICE LEASE (the “Lease”) is made and entered into as of the Date of this Lease, by and between Landlord and Tenant. “Date of this Lease” shall mean the date on which the last one of the Landlord and Tenant has signed this Lease.
W I T N E S S E T H:
Subject to and on the terms and conditions of this Lease, Landlord leases to Tenant and Tenant hires from Landlord the Premises.
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1. BASIC LEASE INFORMATION AND DEFINED TERMS. The key business terms of this Lease and the defined terms used in this Lease are as follows: |
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1.1 Landlord. 3801 PGA ACQUISITION COMPANY, a Delaware corporation authorized to transact business in Florida. |
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1.2 Tenant. BANKRATE, INC., a Delaware corporation authorized to transact business in Florida. |
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1.3 Building. The building containing the Premises located at 0000 XXX Xxxxxxxxx, Xxxx Xxxxx Xxxxxxx, Xxxxxxx 00000. The Building is located within the Project. |
Project. The parcel of land and the buildings and improvements located on such land known as Financial Center at the Gardens located at 0000 XXX Xxxxxxxxx, Xxxx Xxxxx Xxxxxxx, Xxxx Xxxxx Xxxxxx, Xxxxxxx. The Project is legally described in EXHIBIT “A” to this Lease.
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1.4 Premises. Suite Nos. 555 and 510 on the fifth floor of the Building. The Premises are depicted in the sketch attached as EXHIBIT “B”. Landlord reserves the right to install, maintain, use, repair, and replace pipes, ducts, conduits, risers, chases, wires, and structural elements leading through the Premises in locations that will not materially interfere with Tenant’s use of the Premises. |
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1.5 Rentable Area of the Premises. 25,960 square feet. This square footage figure includes an add-on factor for Common Areas in the Building and has been agreed upon by the parties as final and correct and is not subject to challenge or dispute by either party. The Premises includes balcony space the area of which is not included in the Rentable Area. |
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1.6 Permitted Use of the Premises. General office purposes only (see the Use article of this Lease). |
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1.7 Commencement Date. The earlier to occur of (i) date of Substantial Completion of the Tenant Improvements by Tenant, or (ii) December 1, 2014. |
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1.8 Substantial Completion. The date that a Certificate of Occupancy or its equivalent, including a Certificate of Completion or Certificate of Final Inspection, is issued by the appropriate local government entity concerning the Tenant Improvements, or, if no such Certificate will be issued for the Tenant Improvements, the date on which the Tenant Improvements are substantially completed so that Tenant may use the Premises for their intended purpose, notwithstanding that punch-list items or insubstantial details concerning construction, decoration, or mechanical adjustment remain to be performed. |
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1.9 Lease Term. A term commencing on the Commencement Date and continuing for 144 full calendar months and eight (8) days (plus any partial calendar month in which the Commencement Date falls), as extended or sooner terminated under the terms of this Lease. If the Commencement Date falls on a day other than the first day of a month, then for purposes of calculating the length of the Lease Term, the first month of the Lease Term shall be the month immediately following the month in which the Commencement Date occurs. Tenant shall pay prorated Rent calculated on a per diem basis for the partial month in which the Commencement Date occurs. Notwithstanding the Lease Term, Landlord agrees to provide Tenant with access to, and exclusive possession of, the Premises and non-exclusive use of the Common Areas upon the Date of this Lease (provided Tenant has delivered to Landlord required Certificates of Insurance) for the purpose of Tenant’s commencement of the Tenant Improvements. In connection therewith, from the Date of this Lease until the Commencement Date, Tenant shall observe all terms and conditions of this Lease except the requirement to pay Rent. |
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1.10 Base Rent. The following amounts: |
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Period |
Rate P/S/F Per Annum |
Monthly Base Rent |
Period Base Rent |
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Months 1 – 12 |
$21.00 |
$45,430.00 |
$545,160.00* |
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Months 13 – 24 |
$21.68 |
$46,906.48 |
$562,877.70* |
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Months 25 – 36 |
$22.38 |
$48,415.40 |
$580,984.80* |
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Months 37 – 48 |
$23.11 |
$49,994.63 |
$599,935.60 |
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Months 49 – 60 |
$23.86 |
$51,617.13 |
$619,405.60 |
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Months 61 – 72 |
$24.64 |
$53,304.53 |
$639,654.40 |
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Months 73 – 84 |
$25.44 |
$55,035.20 |
$660,422.40 |
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Months 85 – 96 |
$26.27 |
$56,830.77 |
$681,969.20 |
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Months 97 – 108 |
$27.12 |
$58,669.60 |
$704,035.20 |
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Months 109 – 120 |
$28.00 |
$60,573.33 |
$726,880.00 |
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Months 121 – 132 |
$28.91 |
$62,541.97 |
$750,503.60 |
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Months 133 – 144 |
$29.85 |
$64,574.58 |
$774,894.96 |
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Month 145 |
$30.82 |
$66,673.93 |
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*See Section 4.2
Base Rent amounts shown above do not include applicable sales tax, which shall be paid by Tenant together with payments of Base
Rent as set forth in Section 4.
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1.11 Allocated Share. 13.75%. This share is a stipulated percentage, agreed upon by the parties, and constitutes a material part of the economic basis of this Lease and the consideration to Landlord in entering into this Lease. Landlord may readjust the Allocated Share from time to time based on changes in the rentable area of the Building. |
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1.12 Security Deposit. $74,939.60, to be paid to Landlord upon execution of this Lease by Tenant. |
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1.13 Prepaid Rent. $74,939.60 (Base Rent, Operating Costs and sales tax for the first month of the Lease Term for which rent is due and not abated), to be paid to Landlord upon execution of this Lease by Tenant. |
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1.14 Tenant’s Notice Address. All notices to Tenant under this Lease should be sent to: Bankrate, Inc., 000 Xxxxxxx Xxx., Xxxxx 000, Xxx Xxxx, XX 00000, Attn: Legal Department. |
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1.15 Landlord’s Notice Address. |
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For all Notices: |
With a copy to: |
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3801 PGA Acquisition Company x/x Xxxxxxx & Xxxxxxxxx xx Xxxxxxx, Inc. 0000 XXX Xxxxxxxxx, Xxxxx 000 Xxxx Xxxxx Xxxxxxx, XX 00000 Attention: Property Manager Telephone: 000.000.0000
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3801 PGA Acquisition Company c/o JPMorgan Asset Management NY1-K150 000 Xxxx Xxxxxx, 0xx Xxxxx Xxx Xxxx, XX 00000 Attention:Xxxxxx X. Xxxxxxxx - Financial Center at the Gardens Telephone: 000.000.0000
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1.16 Landlord’s Address for Payments. 3801 PGA ACQUISITION COMPANY, X.X. Xxx 000000, Xxxxxxx, XX 00000-0000. |
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1.17 Tenant Improvement Cost. $1,168,200.00 pursuant to EXHIBIT “E” of this Lease. |
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1.18 Landlord’s Broker. Xxxxxxx & Xxxxxxxxx of Florida, Inc. |
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1.19 Tenant’s Broker. Transwestern Commercial Services Florida, LLC d/b/a Transwestern. |
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1.20 Guarantor. None. |
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1.21 Parking Spaces. Total Spaces: 105 covered unreserved spaces in the Building parking garage. |
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1.22 Business Days. All days other than Saturdays, Sundays, or Legal Holidays. |
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1.23 Legal Holidays. New Year’s Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, and Christmas Day. |
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4. RENT. |
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4.1 General. Tenant shall pay Rent to Landlord in lawful United States currency. All Base Rent and additional rent for Operating Costs shall be payable in monthly installments, in advance, beginning on the Commencement Date (subject to Prepaid Rent paid pursuant to Article 1 and Rent Abatement as defined and set forth in Article 4.2 hereinbelow), and continuing on the first day of each and every calendar month thereafter during the Lease Term. Unless otherwise expressly provided, all monetary obligations of Tenant to Landlord under this Lease, of any type or nature, other than Base Rent, shall be denominated as additional rent. Except as otherwise provided, all additional rent payments (other than Operating Costs which are due together with Base Rent) are due ten days after delivery of an invoice. Tenant shall pay monthly to Landlord any sales, use, or other tax (excluding state and federal income tax) now or hereafter imposed on any Rent due under this Lease. The term “Rent” when used in this Lease includes Base Rent and all forms of additional rent. All Rent shall be paid to Landlord without demand, setoff, or deduction whatsoever, except as specifically provided in this Lease, at Landlord’s Address for Payments, or at such other place as Landlord designates in writing to Tenant. Tenant’s obligations to pay Rent are covenants independent of the Landlord’s obligations under this Lease. |
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4.2 Rent Abatement. Tenant shall have a Rent credit in the amount of the Base Rent and the additional rent for Tenant’s Allocated Share of Operating Costs owed for the first twenty-four (24) full calendar months plus eight (8) days (“Free Rental Period”) of the Lease Term (“Rent Abatement”), which credit shall be applied to the installments of Base Rent and the additional rent for Tenant’s Allocated Share of Operating Costs due for those months. Accordingly, subject to Prepaid Rent paid pursuant to Article 1, if the Commencement Date occurs on a day other than the first day of the month, the prorated Rent for the first partial month of the Lease Term shall be due on the Commencement Date and the rent abatement period shall commence on the first day of the first full calendar month of the Lease Term and shall expire on the eighth (8th) day after the last day of the twenty-fourth (24th) full calendar month of the Lease Term. Landlord has provided the Rent Abatement to Tenant as a material inducement for Tenant to pay for and perform the Tenant Improvements upon the Premises in accordance with EXHIBIT “E”, which Tenant has agreed to perform at its sole cost and expense in lieu of Landlord performing a build-out of the Premises and providing a customary tenant improvement allowance to Tenant for the same. If after Tenant has been granted all or any portion of the Rent Abatement, the Lease Term is terminated by virtue of a default by Tenant or Landlord resumes possession of the Premises consequent upon a default by Tenant, and Landlord is precluded by applicable law from collecting the full amount of damages attributable to the default as provided in the Default section of this Lease, then, in addition to all other available damages and remedies, Landlord shall also be entitled to recover from Tenant the unamortized portion (calculated using an interest rate of 10% per annum compounded monthly) of the Tenant Improvement Cost, which sum shall not be deemed rent. This obligation to pay the rent credit shall survive the expiration or sooner termination of the Lease Term. |
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5.1 General. Tenant shall pay to Landlord its Allocated Share of Operating Costs in accordance with the terms and provisions of this article and based on the following. |
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5.2 Defined Terms. The following terms shall have the following definitions: |
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5.2.1 “Real Estate Taxes” shall mean the total of all taxes, assessments, and other charges by any governmental or quasi-governmental authority that are assessed, levied, or in any manner imposed on the Project, including all charges on the tax bills for the Project, real and personal property taxes, special district taxes and assessments, franchise taxes, solid waste assessments, and non-ad valorem assessments or charges. If a tax shall be levied against Landlord in substitution in whole or in part for the Real Estate Taxes or otherwise as a result of the ownership of the Project, then the other tax shall be deemed to be included within the definition of “Real Estate Taxes”. “Real Estate Taxes” also includes all costs incurred by Landlord in contesting the amount of the assessment of the Project made for Real Estate Tax purposes, including attorneys’, consultants’, and appraisers’ fees. |
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5.2.2 “Operating Costs” shall mean the total of all of the costs incurred by Landlord relating to the ownership, operation, and maintenance of the Project and the services provided tenants in the Project. By way of explanation and clarification, but not by way of limitation, Operating Costs will include the costs and expenses incurred for the following: Real Estate Taxes; pest control; trash and garbage removal (including dumpster rental); xxxxxx and matron service; security; Common Areas decorations; repairs, maintenance, and alteration of building systems, Common Areas, and other portions of the Project to be maintained by Landlord; amounts paid under easements or other recorded agreements affecting the Project, including assessments by property owners’ or condominium associations; repairs, maintenance, replacements, and improvements that are appropriate for the continued operation of the Project as a first-class building; improvements in security systems; materials, tools, supplies, and equipment to enable Landlord to supply services that Landlord would otherwise have obtained from a third party; costs for improvements made to the Project which, although capital in nature, are expected to reduce the normal operating costs (including all utility costs) of the Project, as amortized using a commercially reasonable interest rate over the time period reasonably estimated by Landlord to recover the costs thereof taking into consideration the anticipated cost savings, as determined by Landlord using its good faith, commercially reasonable judgment, as well as capital improvements made in order to comply with any law hereafter promulgated by any governmental authority, or any amendment to or any interpretation hereafter rendered with respect to any existing law that have the effect of changing the legal requirements applicable to the Project from those currently in effect, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements as determined by Landlord in its reasonable discretion; landscaping, including fertilization and irrigation supply, parking area maintenance and supply; property management fees (not to exceed four percent (4%) of gross revenues from the Project); an on-site management office; all utilities serving the Project and not separately billed to or reimbursed by any tenant of the Project; cleaning; window washing, and janitorial services; all insurance customarily carried by owners of comparable buildings or required by any mortgagee of the Project; supplies; service and maintenance contracts for the Project; wages, salaries, and other benefits and costs of employees of the Landlord up to and including the Building manager (including a pro rata share only of the wages and benefits of employees who are employed at more than one building, which pro rata share shall be determined by Landlord and shall be based on Landlord’s estimate of the percentage of time spent by the employees at the Project); legal, accounting, and administrative costs; and uniforms and working clothes for employees and the cleaning of them. Landlord may contract for the performance of some or all of the management and maintenance functions generally described in this section with entities that are affiliated with Landlord. In no event shall Operating Costs include: (i) depreciation; (ii) costs of tenant improvements incurred in renovating leased space for the exclusive use of a particular tenant; (iii) brokers' commissions; (iv) ground lease payments, mortgage principal or interest; (v) capital expenses other than: (a) those which, under generally accepted accounting principles, with deviations from such principles which are customary in the real estate industry, are expenses or regarded as deferred expenses, (b) those designed to result in savings or reductions in Operating Costs, (c) those required by any law that becomes effective (by enactment or interpretation) after the Date of this Lease, (d) expenditures for materials, tools, supplies, and equipment purchased or leased by Landlord to enable Landlord to supply services that Landlord would otherwise have obtained from a third party, (e) those not reimbursed by insurance and related to a casualty, or required by any insurer of the Project, and (f) other items that may be otherwise categorized as capital expenditures but which in the real estate industry are customarily considered maintenance and repair items, such as painting of Common Areas, light bulb replacement, replacement of carpet in elevator lobbies, and the like. In any of the situations described in (b) – (e) above, the cost of the capital improvements or expenditures shall be included in Operating Costs for the year in which the costs are incurred and subsequent years, amortized on a straight line basis over an appropriate period, but in no event more than ten years, with an interest factor equal to 10%; (vi) costs of repairs or other work to the extent Landlord is reimbursed by insurance or condemnation proceeds; (vii) utilities or other services charged directly to, or paid directly by, a tenant of the Project other than as a part of the Operating Costs; (viii) fines, interest and
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penalties incurred due to the late payment of Operating Costs; (ix) organizational expenses associated with the creation and operation of the entity which constitutes Landlord; (x) any penalties or damages that Landlord pays to Tenant under this Lease or to other tenant in the Project under their respective leases; (xi) reserves; (xii) legal fees due to Legal fees due to costs of defending any lawsuits with any mortgagee, costs of selling, syndicating, financing, mortgaging, or hypothecating any of the Landlord’s interests in the Project, costs of any disputes between Landlord and its employees (if any) not engaged in Project operations, disputes of Landlord with the Project management company, or outside fees paid in connection with disputes with other tenants, and costs to prepare deal memos, leases, consents and the like; and (xiii) financing and refinancing costs. |
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5.3 Variable Operating Costs. If during any year the entire Building is not occupied or Landlord is not furnishing utilities or services to all of the premises in the Building, then the Variable Operating Costs for such year shall be “grossed up” (using reasonable projections and assumptions) to the amounts that would apply if 95% of the Building were occupied and all of the premises in the Building were provided with the applicable utilities or services. Variable Operating Costs are Operating Costs that are variable with the level of occupancy of the Building (such as janitorial services, utilities, refuse and waste disposal, and management fees). |
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5.4 Payment. Landlord shall reasonably estimate the Operating Costs that will be payable for each calendar year. Tenant shall pay one-twelfth of its Allocated Share of the estimated Operating Costs monthly in advance, together with the payment of Base Rent. Should any assumptions used in creating a budget change, Landlord may adjust the estimated monthly Operating Costs payments to be made by Tenant by notice to Tenant. After the conclusion of each calendar year, Landlord shall furnish Tenant a detailed statement of the actual Operating Costs for the year; and an adjustment shall be made between Landlord and Tenant with payment to or repayment by Landlord, as the case may require. Tenant waives and releases any and all objections or claims relating to Operating Costs for any calendar year unless, within 180 days after Landlord provides Tenant with the annual statement of the actual Operating Costs for the calendar year, Tenant provides Landlord notice that it disputes the statement and specifies the matters disputed. If Tenant disputes the statement then, Tenant shall continue to pay the Rent in question to Landlord in the amount provided in the disputed statement pending resolution of the dispute. |
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5.5 Alternate Computation. Instead of including in Operating Costs certain costs, Landlord may xxxx Tenant and Tenant shall pay for those costs in any one or a combination of the following manners: (a) direct charges for services provided for the exclusive benefit of the Premises that are subject to quantification; (b) based on a formula that takes into account the relative intensity or quantity of use of utilities or services by Tenant and all other recipients of the utilities or services, as reasonably determined by Landlord; or (c) pro rata based on the ratio that the Rentable Area of the Premises bears to the total rentable area of the tenant premises within the Building that are benefited by such costs. |
Audit Rights. Provided Tenant has paid the disputed statement and is not otherwise in default under this Lease, within 60 days following delivery of Tenant’s notice of dispute, Tenant may, upon 30 days’ prior written notice to Landlord, examine Landlord’s books and records pertaining to Operating Costs covered by the disputed statement. The examination shall be conducted at the place where the books and records are maintained, shall be conducted during regular business hours, shall be restricted to one examination per calendar year, and shall be at the sole cost and expense of Tenant. Tenant shall reimburse Landlord for the costs of photocopying or transferring to digital media any books and records requested by Tenant in an amount equal to the actual cost charged to Landlord by third party copy services or $.25 per page should the copies be made with Landlord’s photocopying equipment. If it is finally determined that the disputed statement contains an error in an amount in excess of 5% of the total amount of the statement, Landlord shall pay the reasonable out-of-pocket costs of Tenant for the examination. In no event shall Landlord be obligated to pay any of Tenant’s costs which are calculated on a percentage of the recovery by Tenant or any other contingency based fees. As a condition to Tenant’s right of examination, Tenant and all of its consultants shall, prior to the examination, execute a confidentiality agreement; providing, without limitation, that the information contained in Landlord’s books and records, any other information obtained from the examination (including, without limitation, costs, expenses, and income) as well as any compromise, settlement, or adjustment reached between Landlord and Tenant shall remain confidential and may not be disclosed by Tenant or its consultants to any other person, specifically including, but not limited to, other tenants of the Building and that Tenant and all of its consultants shall indemnify Landlord from any claims or expenses arising from a breach by them of the Confidentiality Agreement. Examinations may only be conducted by an employee of Tenant or a national or regional accounting firm who is not being compensated based on a percentage of the recovery by Tenant or on any other contingency fee basis. The certified public accountant performing the examination must be licensed to practice in the state in which the Building is located. Within 90 days following delivery of Tenant’s notice of dispute, Tenant shall have the right to give Landlord written notice stating in reasonable detail the results of its audit and any objection to the statement in dispute. If Tenant fails to give written notice of objection within the 90 day period, Tenant shall be deemed to have approved the statement in all respects and released all claims based on the statement. Upon Landlord’s receipt of a timely objection notice from Tenant, Landlord and Tenant shall work together in good faith to resolve the
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discrepancy between Landlord’s statement and Tenant’s review. If Landlord and Tenant determine that Operating Costs are less than reported, Landlord shall promptly pay to Tenant, or provide Tenant with a credit against future rent in the amount of, the difference. Likewise, if Landlord and Tenant determine that Operating Costs are greater than reported, Tenant shall promptly pay the difference to Landlord. If Landlord disputes the results of Tenant’s examination and Landlord and Tenant are unable to resolve the dispute by negotiation, the dispute shall, at Landlord’s election, which election may be made at any time before Landlord commences a judicial proceeding, or on or before the last date on which Landlord has to file an answer or defensive motion to a complaint which Tenant has filed and served in a judicial proceeding, be settled by arbitration in the county in which the Premises is located administered by the American Arbitration Association under its Commercial Arbitration Rules, with the following exceptions. There shall be a single arbitrator selected by the American Arbitration Association. The arbitrator shall have at least ten years’ experience in the supervision of the operation and management of major office buildings in the market area in which the Building is located. The scope of the arbitrator’s inquiry and determination shall be limited to whether Operating Costs as billed to Tenant are in accordance with the definitions and computations provided in this Lease and the arbitrator shall not apply principles of good faith and fair dealing, unconscionability, or any other equitable principles in reaching his decision. The arbitrator will have no authority to award punitive or other damages not measured by the prevailing party’s actual damages. The arbitrator must set forth in any award findings of fact and conclusions of law supporting the decision. Judgment on the award of the arbitrator may be entered in any court having jurisdiction. Notwithstanding anything to the contrary contained in this Lease, Tenant shall have no rights to examine Landlord’s books and records as provided in this section if Landlord provides Tenant with a certification from an independent firm of certified public accountants confirming that Operating Costs for the year in question have been calculated in accordance with the terms of this Lease.
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6. ASSIGNMENT OR SUBLETTING |
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6.1 General; Definition of Transfer. Neither Tenant nor Tenant’s legal representatives or successors in interest by operation of law or otherwise shall transfer this Lease except as provided in this article. For purposes of this article, a “transfer” shall mean any of the following: (a) an assignment of this Lease; (b) a collateral assignment, mortgage, or other encumbrance involving this Lease; (c) a sublease, license agreement, or other agreement permitting all or any portion of the Premises to be used by others; (d) a reduction of Tenant’s assets to the point that this Lease is substantially Tenant’s only asset; (e) a change or conversion in the form of entity of Tenant or any transferee or any entity controlling any of them which has the effect of limiting the liability of any of the partners, members, or other owners of the entity; (f) the agreement by a third party to assume, take over, or reimburse Tenant for any of Tenant’s obligations under this Lease in order to induce Tenant to lease space from the third party; or (g) any transfer of control of Tenant, which shall be defined as any issuance or transfer of stock in any corporate tenant or subtenant or any interest in any noncorporation entity tenant or subtenant, by sale, exchange, merger, consolidation, operation of law, or otherwise, or creation of new stock or interests, by which an aggregate of 50% or more of Tenant’s stock or equity interests shall be vested in one or more parties who are not stockholders or interest holders as of the Date of this Lease, or any transfer of the power to direct the operations of any entity (by equity ownership, contract, or otherwise), to one or more parties who are not stockholders or interest holders as of the Date of this Lease, however accomplished, and whether in a single transaction or in a series of related or unrelated transactions. This section shall not apply to sales of stock by persons other than those deemed “insiders” within the meaning of the Securities Exchange Act of 1934 as amended, which sales are effected through any recognized securities exchange. Any modification or amendment to any sublease of any portion of the Premises shall be deemed a further sublease of this Lease. As used in this article, the term “transferee” shall include any assignee or subtenant of Tenant or any other party involved in any of the other transactions or events constituting a transfer. Consent by Landlord to a transfer shall not relieve Tenant from the obligation to obtain Landlord’s written consent to any further transfer. Any transfer by Tenant in violation of this article shall be void and shall constitute a default under this Lease. Notwithstanding anything contained herein to the contrary, Tenant may assign or transfer this Lease (including, without limitation, a sublease of all or any portion of the Premises) to an Affiliate, as defined below, at any time without Landlord’s consent, provided that (i) a significant purpose of any such transfer is not to avoid the restrictions on transfer otherwise imposed under this article, (ii) Landlord is provided written notice of the transfer and the identity of the transferee prior to the effective date of the transfer, (iii) the resulting tenant entity shall have equal or greater tangible net worth and creditworthiness as Tenant as of the Date of this Lease or the date of transfer, whichever is greater, (iv) the form of any agreement of assignment or any sublease shall otherwise comply with the terms and conditions of this article, and (vi) no default under the Lease then exists. "Tangible net worth" shall mean the excess of the value of tangible assets (i.e. assets excluding those which are intangible such as goodwill, patents and trademarks) over liabilities. For purposes of this Section 6.1, an “Affiliate” shall mean (i) any entity controlling, controlled by, or under common control with Tenant, or (ii) any successor of Tenant resulting from a merger or consolidation of Tenant or as a result of a sale by Tenant of all or substantially all of its assets or stock. For the purposes of this Section 6.1, the term “control” means (a) legal or beneficial ownership of twenty-five percent (25%) or more of the voting interests of an entity, or (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise. |
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6.2 Request for Consent. If Tenant requests Landlord’s consent to a transfer, it shall submit in writing to Landlord, not later than 30 days before any anticipated transfer, (a) the name and address of the proposed transferee, (b) a duly executed counterpart of the proposed transfer agreement, (c) reasonably satisfactory information as to the nature and character of the business of the proposed transferee, as to the nature and character of its proposed use of the space, and otherwise responsive to the criteria set forth in the Reasonable Consent section of this article, and (d) banking, financial, or other credit information relating to the proposed transferee reasonably sufficient to enable Landlord to determine the financial responsibility and character of the proposed transferee, including balance sheets and profit and loss statements for the transferee covering the three years before the transfer, certified by the transferee, and a list of personal, banking, business, and credit references for the transferee. |
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6.3 Recapture. Except for an assignment or transfer to an Affiliate of Tenant, in which event this Section 6.3 shall not apply, Landlord shall have the following options to be exercised within 15 Business Days from submission of Tenant’s request for Landlord’s consent to a specific transfer: |
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6.3.1 If Tenant proposes to assign this Lease or sublet all or substantially all of the Premises, Landlord shall have the option to cancel and terminate this Lease as of the proposed commencement date for the transfer. |
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6.3.2 If Tenant proposes to sublet less than all or substantially all of the Premises or if a proposed sublease shall be for less than the balance of the Lease Term, Landlord shall have the option of canceling and terminating this Lease only as to the applicable portion of the Premises and the applicable portion of the Lease Term covered by the proposed sublease, effective as of the proposed commencement date of the sublease. If Landlord exercises this option, all Rent for the Premises shall be equitably apportioned as of the commencement date of the sublease and Landlord, at Tenant’s expense, shall perform all work and make all alterations as may be required physically to separate the applicable portion of the Premises from the remainder of the Premises and to permit lawful occupancy of the separated portion. |
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6.4 Reasonable Consent. If Landlord does not elect either of the options provided in the Recapture section of this article, Landlord shall not unreasonably withhold or delay its consent to a proposed transfer. It shall be deemed reasonable for Landlord to withhold consent to any proposed transfer if any of the following conditions have not been established to Landlord’s satisfaction: |
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6.4.1 The proposed transferee has sufficient financial wherewithal to discharge its obligations under this Lease and the proposed agreement of transfer and as determined by Landlord’s criteria for selecting Project tenants and has experience and reputation that is not less than the experience, and reputation of Tenant on the Date of this Lease and the date of the transfer, whichever is greater. |
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6.4.2 The proposed transfer shall not, in Landlord’s reasonable judgment, cause physical harm to the Project or harm to the reputation of the Project that would result in an impairment of Landlord’s ability to lease space in the Project or a diminution in the rental value of space in the Project. |
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6.4.3 The proposed use of the Premises by the proposed transferee will be the Permitted Use, and not prohibited by the Rules and Regulations, and will not violate any restrictive covenants or exclusive use provisions applicable to Landlord. |
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6.4.4 The proposed transferee shall not be any person or entity who shall at that time be a tenant, subtenant, or other occupant of any part of the Project, or who dealt with Landlord or Landlord’s agent (directly or through a broker) as to space in the Project during the six months immediately preceding Tenant’s request for Landlord’s consent. |
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6.4.5 The proposed use of the Premises by the proposed transferee will not require alterations or additions to the Premises or the Project to comply with applicable law or governmental requirements and will not negatively affect insurance requirements or involve the introduction of materials to the Premises that are not in compliance with the environmental laws. |
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6.4.6 Any mortgagee of the Project will consent to the proposed transfer if such consent is required under the relevant loan documents. |
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6.4.7 The proposed use of the Premises will not materially increase the Operating Costs for the Project or the burden on Project services, or generate excessive foot traffic, elevator usage, Parking Area usage, or security concerns in the Project, or compromise or reduce the comfort or safety, or both, of Landlord and the other occupants of the Project. |
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6.4.8 The proposed transferee shall not be, and shall not be affiliated with, anyone with whom Landlord or any of its affiliates has been involved with in litigation or who has defaulted under any agreement with Landlord or any of its affiliates. |
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6.4.9 The proposed transfer will not cause a violation of another lease for space in the Project or give an occupant of the Project a right to cancel its lease. |
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6.4.10 There shall be no default by Tenant, beyond any applicable grace period, under any of the terms, covenants, and conditions of this Lease at the time that Landlord’s consent to a transfer is requested and on the date of the commencement of the term of the proposed transfer. |
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6.4.11 If the transfer is an assignment, the proposed assignee will assume in writing all of the obligations of Tenant under this Lease. |
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6.4.12 Tenant acknowledges that the foregoing is not intended to be an exclusive list of the reasons for which Landlord may reasonably withhold its consent to a proposed transfer. |
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6.5 Tenant’s Remedies. Tenant waives any remedy for money damages (nor shall Tenant claim any money damages by way of setoff, counterclaim, or defense) based on any claim that Landlord has unreasonably withheld, delayed, or conditioned its consent to a proposed transfer under this Lease. Tenant’s sole remedy in such an event shall be to institute an action or proceeding seeking specific performance, injunctive relief, or declaratory judgment. |
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6.6 Transfer Documents. Any sublease shall provide that: (a) the subtenant shall comply with all applicable terms and conditions of this Lease to be performed by Tenant; (b) the sublease is expressly subject to all of the terms and provisions of this Lease; and (c) unless Landlord elects otherwise, the sublease will not survive a termination of this Lease (whether voluntary or involuntary) or resumption of possession of the Premises by Landlord following a default by Tenant. The sublease shall further provide that if Landlord elects that the sublease shall survive a termination of this Lease or resumption of possession of the Premises by Landlord following a default by Tenant, the subtenant will, at the election of the Landlord, attorn to the Landlord and continue to perform its obligations under its sublease as if this Lease had not been terminated and the sublease were a direct lease between the Landlord and the subtenant. Any assignment of lease shall contain an assumption by the assignee of all of the obligations of Tenant under this Lease. |
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6.7 No Advertising. Tenant shall not advertise (but may list with brokers) its space for sublease at a rental rate lower than the greater of the then Project Rental rate for the space or the rental rate then being paid by Tenant to Landlord. |
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6.8 Consideration for Consent. If Tenant effects any transfer, then Tenant shall pay to Landlord a sum equal to the net Rent, additional rent, or other consideration paid to Tenant by any transferee that is in excess of the Rent then being paid by Tenant to Landlord under this Lease for the portion of the Premises so transferred (on a prorated, square footage basis and valuing the leasehold interest based on the fair market value of Tenant’s interest under this Lease) (provided, that in no event shall Landlord be entitled to receive any consideration allocated to the sale of Tenant’s business or goodwill; it being understood that the foregoing provision is only intended to capture amounts payable to Tenant as rental payments in excess of the rental payments due hereunder or other consideration received for the value of the Lease if in lieu of rent). The net Rent, additional rent, or other consideration paid to Tenant shall be calculated by deducting from the gross Rent, additional rent, or other consideration reasonable and customary real estate brokerage commissions actually paid by Tenant to third parties, tenant improvement allowances, Rent concessions, the actual cost of improvements to the Premises made by Tenant for the transferee, and other direct out-of-pocket costs actually incurred by Tenant in connection with the transfer (as long as the costs are commercially reasonable and are commonly incurred by landlords in leasing similar space). Upon reasonable notice, Landlord shall have the right to audit Tenant's books and records to determine the amount payable to Landlord under this section. All sums payable by Tenant under this section shall be payable to Landlord immediately on receipt by Tenant. |
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6.9 Acceptance of Payments. If this Lease is nevertheless assigned, or the Premises are sublet or occupied by anyone other than Tenant, Landlord may accept Rent from the assignee, subtenant, or occupant and apply the net amount received to the Rent reserved in this Lease, but no such assignment, subletting, occupancy, or acceptance of Rent shall be deemed a waiver of the requirement for Landlord’s consent as contained in this article or constitute a novation or otherwise release Tenant from its obligations under this Lease. |
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6.10 Continuing Liability. Except as provided in the Recapture section of this article, following any transfer (other than a transfer to any successor of Tenant resulting from a merger or consolidation of Tenant or as a result of a sale by Tenant of all or substantially all of its assets or stock), Tenant and Guarantor shall remain liable to Landlord for the prompt and continuing payment of all forms of Rent payable under this Lease following the transfer. The joint and several liability of Tenant, Guarantor, and any immediate and remote successor in interest of Tenant (by assignment or otherwise, other than as specifically set forth in the preceding sentence), and the due performance of the obligations of this Lease on Tenant’s part to be performed or observed, shall not in any way be discharged, released, or impaired by any (a) agreement that modifies any of the rights or obligations of the parties under this Lease, (b) stipulation that extends the time within which an obligation under this Lease is to be performed, (c) waiver of the performance of an obligation required under this Lease, or (d) failure to enforce any of the obligations set forth in this Lease. |
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6.11 Administrative Fee. Tenant shall pay to Landlord, on demand, an administrative fee of $1,000, plus all reasonable attorneys’ fees and actual costs associated with Landlord’s consideration of Tenant’s transfer request and the review and preparation of all documents associated therewith. |
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6.12 Landlord Transfer. Landlord may assign or encumber its interest under this Lease. If any portion of the Premises is sold, transferred, or leased, or if Landlord’s interest in any underlying lease of the Premises is transferred or sold, Landlord shall be relieved of all existing and future obligations and liabilities under this Lease, provided that the purchaser, transferee, or tenant of the Premises assumes in writing those obligations and liabilities. |
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7. INSURANCE/WAIVERS/SUBROGATION. |
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7.1 Insurance Requirements. Effective as of the Date of this Lease and continuing throughout the Lease Term, Tenant shall maintain the following insurance policies: |
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(b) Commercial Property Insurance. (1) Cause of loss-special risk form (formerly “all-risk”) or its equivalent insurance (including, but not limited to, sprinkler leakage, ordinance and law, sewer back-up, flood, earthquake, windstorm and collapse coverage) covering the full value of all alterations and improvements and betterments in the Premises, naming Landlord and Landlord’s mortgagee as additional loss payees as their interests may appear, and (2) cause of loss-special risk form (formerly “all-risk”) or its equivalent insurance covering the full value of all furniture, trade fixtures, equipment and personal property (including property of Tenant or others) in the Premises or otherwise placed in the Project by or on behalf of a Tenant Party (including Tenant’s Off-Premises Equipment); |
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(c) Contractual Liability Insurance. Contractual liability insurance sufficient to cover Tenant’s indemnity obligations hereunder (but only if such contractual liability insurance is not already included in Tenant’s commercial general liability insurance policy); |
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(d) Commercial Auto Liability Insurance. Commercial auto liability insurance (if applicable) covering automobiles owned, hired or used by Tenant in carrying on its business with limits not less than $1,000,000 combined single limit for each accident, insuring Tenant (and naming as additional insureds Landlord, Landlord’s property management company, Landlord’s asset management company and, if requested in writing by Landlord, Landlord’s mortgagee); |
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(e) Worker’s Compensation Insurance; Employer’s Liability Insurance. Worker’s compensation insurance of $1,000,000 (or such larger amount if required by local statute) and employer’s liability insurance of $1,000,000; |
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(f) Business Interruption Insurance. Business interruption insurance covering six (6) months of Base Rent under the Lease; and |
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(g) Comprehensive Crime. Comprehensive crime coverage of $1,000,000. |
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8.1 Events of Default. Each of the following shall be an event of default (“Event of Default”) under this Lease: (a) Tenant fails to make any payment of Rent within five days after written notice from Landlord that the same is past due (provided that Landlord shall not be required to provide such notice more than two (2) times in any calendar year); (b) Tenant or any Guarantor for Tenant’s obligations under this Lease becomes bankrupt or insolvent or makes an assignment for the benefit of creditors or takes the benefit of any insolvency act, or if any debtor proceedings are taken by or against Tenant or any Guarantor (and are not dismissed within sixty (60) days thereafter, in the event of an involuntary filing); (c) Tenant transfers this Lease in violation of the Assignment or Subletting article; (d) Tenant fails to deliver an estoppel certificate or subordination agreement or maintain required insurance coverages within five (5) Business Days after written notice that the same has not been delivered within the time periods required by this Lease; (e) Tenant does not comply with its obligations to vacate the Premises under the Relocation or End of Term articles of this Lease; or (f) Tenant fails to perform any other obligation under this Lease within twenty days of receipt of notice from Landlord or the additional time, if any, that is reasonably necessary to promptly and diligently cure the failure, after it receives written
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notice from Landlord setting forth in reasonable detail the nature and extent of the failure, provided that Tenant commences such cure within such twenty day period and diligently pursues the same to completion. |
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8.2 Remedies. If an Event of Default occurs, in addition to all remedies provided by law, Landlord may declare the entire balance of all forms of Rent due under this Lease for the remainder of the Lease Term to be forthwith due and payable and may collect the then present value of the Rents (calculated using a discount rate equal to the discount rate of the branch of the Federal Reserve Bank closest to the Premises in effect as of the date of the default). If this Lease is rejected in any bankruptcy proceeding, Rent for the entire month in which the rejection occurs shall be due and payable in full and shall not be prorated. If Landlord exercises its remedy to retake possession of the Premises and collects from Tenant all forms of Rent due under this Lease for the remainder of the Lease Term, Landlord shall account to Tenant, at the date of the expiration of the Lease Term, for amounts actually collected by Landlord as a result of a reletting, net of the Tenant’s obligations as specified above. |
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8.3 Landlord’s Right to Perform. If an Event of Default occurs (or upon any default resulting in an emergency involving immediate damage or injury), Landlord may, but shall have no obligation to, perform the obligations of Tenant, and if Landlord, in doing so, makes any expenditures or incurs any obligation for the payment of money, including reasonable attorneys’ fees, the sums so paid or obligations incurred shall be paid by Tenant to Landlord upon receipt of a xxxx or statement to Tenant therefor. |
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8.4 Late Charges, Interest, and Bad Checks. If any payment due Landlord shall not be paid within five days of the date when due, Tenant shall pay, in addition to the payment then due, an administrative charge equal to the greater of (a) 5% of the past due payment; or (b) $250. All payments due Landlord shall bear interest at the lesser of: (a) 12% per annum, or (b) the highest rate of interest permitted to be charged by applicable law (“Default Interest Rate”), accruing from the date the obligation arose through the date payment is actually received by Landlord. If any check given to Landlord for any payment is dishonored for any reason whatsoever not attributable to Landlord, in addition to all other remedies available to Landlord, upon demand, Tenant will reimburse Landlord for all insufficient funds, bank, or returned check fees, plus an administrative fee not to exceed the maximum amount prescribed by Section 68.065, Florida Statutes. In addition, Landlord may require all future payments from Tenant to be made by cashier’s check from a local bank or by Federal Reserve wire transfer to Landlord’s account. |
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8.5 Limitations. None of Landlord’s officers, employees, agents, directors, shareholders, partners, members, managers, or affiliates shall ever have any personal liability to Tenant. No person holding Landlord’s interest shall have any liability after such person ceases to hold such interest, except for any liability accruing while such person held such interest. Tenant shall look solely to Landlord’s estate and interest in the Building (INCLUDING ANY PROCEEDS OF INSURANCE, CONDEMNATION AND RENTS) for the satisfaction of any right or remedy of Tenant under this Lease, and no other assets of Landlord shall be subject to levy, execution, or other enforcement procedure for the satisfaction of Tenant’s rights or remedies, or any other liability of Landlord to Tenant of whatever kind or nature. No act or omission of Landlord or its agents shall constitute an actual or constructive eviction of Tenant or a default by Landlord as to any of its obligations under this Lease unless Landlord shall have first received written notice from Tenant of the claimed default and shall have failed to cure it after having been afforded reasonable time in which to do so, which in no event shall be less than 30 days. Further, Tenant waives any claims against Landlord that Tenant does not make in writing within 30 days of the onset of the cause of such claim. Landlord and Tenant each waive all rights (other than rights under the Estoppel Certificate and End of Term articles) to consequential damages, lost profits, punitive damages, or special damages of any kind. |
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8.6 Default By Landlord. Landlord shall be in default under this Lease if Landlord fails to perform any of Landlord’s obligations under this Lease and the failure continues for more than 30 days after notice from Tenant specifying the default, or if the default is of a nature that it cannot be completely cured within the 30 day period, if Landlord fails to begin curing the default within the 30 day period or fails thereafter to cure the default within the time reasonably necessary to do so, and if Landlord’s failure materially affects Tenant’s use and occupancy of the Premises. If Landlord fails to cure any such default within the time periods set forth above, Tenant’s sole remedies will be to commence an action against Landlord (i) seeking specific performance of the obligation or obligations hereunder with respect to which Landlord is in default if Tenant does not have an adequate remedy at law, or (ii) seeking recovery of actual damages (but excluding any punitive and consequential damages) incurred by Tenant as the direct result of Landlord’s default. Tenant will not be entitled to any right of deduction, offset, self-help or any right to terminate this Lease as a result of any uncured default hereunder by Landlord. |
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9. ALTERATIONS. “Alterations” shall mean any alteration, addition, or improvement in or on or to the Premises of any kind or nature, including any improvements made, except for the Tenant Improvements. Tenant shall make no Alterations, other
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than decorative Alterations, such as painting, wall coverings, floor coverings or other non-structural alterations for which no building permit is required and which do not affect any Building systems, and in the aggregate cost less than $25,000, without the prior written consent of Landlord, which consent may be withheld or conditioned in Landlord’s sole discretion. However, Landlord will not unreasonably withhold or delay consent to non-structural interior Alterations, provided that they do not involve demolition of improvements, affect utility services or Building systems, are not visible from outside the Premises, and do not require other alterations, additions, or improvements to areas outside the Premises. Tenant shall reimburse Landlord, on demand, for the actual out-of-pocket costs for the services of any third party employed by Landlord to review or prepare any Alteration-related plan or other document for which Landlord’s consent or approval is required. If requested by Tenant, if Landlord, or its agent or contractor performs or supervises the performance of any Alterations, Tenant shall pay to Landlord an amount equal to 5% of the cost of the work, as a supervisory fee Except as expressly set forth in this Lease, Landlord has made no representation or promise as to the condition of the Premises, Landlord shall not perform any alterations, additions, or improvements to make the Premises suitable and ready for occupancy and use by Tenant, and Tenant shall accept possession of the Premises in its then “as-is”, “where-is” condition, without representation or warranty of any kind by Landlord. Except for work to be performed by Landlord, before any Alterations are undertaken by or on behalf of Tenant, Tenant shall deliver to Landlord any governmental permit required for the Alterations and shall require any contractor performing work on the Premises to obtain and maintain, at no expense to Landlord, workers’ compensation insurance as required by law, builder’s risk insurance in the amount of the replacement cost of the applicable Alterations (or such other amount reasonably required by Landlord), commercial general liability insurance, and auto liability insurance (to include all automobiles owned, leased, hired or borrowed), written on an occurrence basis with minimum limits of $2 million per occurrence limit, $2 million general aggregate limit, $2 million personal and advertising limit, and $2 million products/completed operations limit; which coverage limits may be effected with umbrella coverage (including contractual liability, broad form property damage and contractor’s protective liability coverage). Contractor’s insurance shall contain an endorsement insuring the Landlord and its managing agent (and, if requested, Landlord’s mortgagee) as additional insureds and shall be primary over any other coverage available to the Landlord. All Alterations by Tenant shall also comply with Landlord’s rules and requirements for contractors performing work in the Project. |
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10. LIENS. The interest of Landlord in the Premises shall not be subject in any way to any liens, including construction liens, for improvements to or other work performed in the Premises by or on behalf of Tenant. Tenant shall have no power or authority to create any lien or permit any lien to attach to the present estate, reversion, or other estate of Landlord (or the interest of any ground Landlord) in the Premises or in the Building and all mechanics, materialmen, contractors, artisans, and other parties contracting with Tenant or its representatives or privies as to the Premises or any part of the Premises are charged with notice that they must look to the Tenant to secure payment of any xxxx for work done or material furnished or for any other purpose during the Lease Term. These provisions are made with express reference to Section 713.10, Florida Statutes. Landlord and Tenant acknowledge and agree that there is no requirement under this Lease that Tenant make any alterations or improvements to the Premises and no improvements to be made by Tenant to the Premises constitute “the pith of the lease” as provided in applicable Florida law. If any lien is filed against the Premises for work or materials claimed to have been furnished to Tenant, Tenant shall cause it to be discharged of record or properly transferred to a bond under Section 713.24, Florida Statutes, within ten days after written notice to Tenant. Further, Tenant shall indemnify, defend, and save Landlord harmless from and against any damage or loss, including reasonable attorneys’ fees, incurred by Landlord as a result of any liens or other claims arising out of or related to work performed in the Premises by or on behalf of Tenant. Tenant shall notify every contractor making improvements to the Premises that the interest of the Landlord in the Premises shall not be subject to liens. |
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12. COMMON AREAS. The “Common Areas” of the Project include such areas and facilities as delivery facilities, walkways, landscaped and planted areas, and parking facilities and are those areas designated by Landlord for the general use in common of occupants of the Project, including Tenant. The Common Areas shall at all times be subject to the exclusive control and management of Landlord. Landlord may grant third parties specific rights concerning portions of the Common Areas. Landlord may increase, reduce, improve, or otherwise alter the Common Areas, otherwise make improvements, alterations, or additions to the Project, and change the name or number by which the Building or Project is known; provided that Landlord shall use commercial reasonable efforts so that none of the foregoing shall unreasonably and materially interfere with Tenant's conduct of its business or Tenant's use and enjoyment of the Premises, including, without limitation, any access thereto or parking therefor. Landlord may also temporarily close the Common Areas to make repairs or improvements. In addition, Landlord may temporarily close the Building or
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Project and preclude access to the Premises in the event of casualty, governmental requirements, the threat of an emergency such as a hurricane or other act of God, or if Landlord otherwise reasonably deems it necessary in order to prevent damage or injury to person or property. This Lease does not create, nor will Tenant have any express or implied easement for, or other rights to, air, light, or view over, from, or about the Project. |
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14. CASUALTY DAMAGE. If: (a) the Building shall be so damaged that substantial reconstruction of the Building shall, in Landlord’s opinion, be required (whether or not the Premises shall have been damaged by the casualty); or (b) Landlord is not permitted to rebuild the Building in substantially the same form as it existed before the damage; or (c) the Premises shall be materially damaged by casualty during the last two years of the Lease Term; or (d) any mortgagee requires that the insurance proceeds be applied to the payment of the mortgage debt; or (e) the damage is not covered by insurance maintained by Landlord; then Landlord may, within 90 days after the casualty, give notice to Tenant of Landlord’s election to terminate this Lease, and the balance of the Lease Term shall automatically expire on the fifth day after the notice is delivered. If Landlord does not elect to terminate this Lease in accordance with the preceding sentence, or if the Premises or Building are partially damaged (i.e., damage that does not require substantial reconstruction of the Building, and Landlord determines that the restoration can be completed within 12 months of the casualty), Landlord shall proceed with reasonable diligence to restore the Building and the Premises to substantially the same condition they were in immediately before the casualty. However, Landlord shall not be required to restore any unleased premises in the Building or any portion of Tenant’s property, and Landlord’s obligation to repair or restore the Premises shall be limited to the extent of insurance proceeds actually received by Landlord due to the casualty and shall not include any improvements or alterations performed by Tenant. If this Lease is not terminated as set forth above, if Landlord fails to fully complete such repair or restoration within twelve (12) months from the date of such damage (such restoration period shall be extended due to Unavoidable Delays as defined in Section 29), then in such event, Tenant, as its sole and exclusive remedy, may terminate this Lease upon thirty (30) days prior written notice to Landlord. Rent shall xxxxx in proportion to the portion of the Premises not usable by Tenant as a result of any casualty resulting in damage to the Building, as of the date on which the Premises becomes unusable until the date the Premises are rendered tenantable for the Permitted Use. Landlord shall not otherwise be liable to Tenant for any inconvenience or annoyance to Tenant or injury to Tenant’s business resulting in any way from the damage or the repairs, Tenant’s sole remedy being the right to an abatement of Rent. |
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15. CONDEMNATION. If the whole or any substantial part of the Premises shall be condemned by eminent domain or acquired by private purchase in lieu of condemnation, this Lease shall terminate on the date on which possession of the Premises is delivered to the condemning authority and Rent shall be apportioned and paid to that date. If no portion of the Premises is taken but a substantial portion of the Building is taken, at Landlord’s option, this Lease shall terminate on the date on which possession of such portion of the Building is delivered to the condemning authority and Rent shall be apportioned and paid to that date. Tenant shall have no claim against Landlord for the value of any unexpired portion of the Lease Term, nor shall Tenant be entitled to any part of the Landlord’s condemnation award or private purchase price. If this Lease is not terminated as provided above, Rent shall xxxxx in proportion to the portion of the Premises condemned. |
HVAC systems servicing the Premises requested by Tenant exclusively for their use) in a clean, attractive, first-class condition. All replacements shall be of equal quality and class to the original items replaced. Tenant shall not commit or allow to be committed any waste on any portion of the Premises. |
endorsement or statement on any check or any letter accompanying any check or payment of Rent will be deemed an accord and satisfaction. Landlord may accept the check or payment without prejudice to Landlord’s right to recover the balance of the Rent or to pursue any other remedy. It is the intention of the parties that this article will modify the common law rules of waiver and estoppel and the provisions of any statute that might dictate a contrary result. |
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22. SECURITY DEPOSIT. The Security Deposit shall be held by Landlord as security for Tenant’s full and faithful performance of this Lease including the payment of Rent. Tenant grants Landlord a security interest in the Security Deposit. The Security Deposit may be commingled with other funds of Landlord and Landlord shall have no liability for payment of any interest on the Security Deposit. Landlord may apply the Security Deposit to the extent required to cure any default by Tenant. If Landlord so applies the Security Deposit, Tenant shall deliver to Landlord the amount necessary to replenish the Security Deposit to its original sum within five days after notice from Landlord. The Security Deposit shall not be deemed an advance payment of Rent or a measure of damages for any default by Tenant, nor shall it be a defense to any action that Landlord may bring against Tenant. |
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23. GOVERNMENTAL REGULATIONS. Tenant shall promptly comply with all laws, codes, and ordinances of governmental authorities, including the Americans with Disabilities Act of 1990 and all similar present or future laws; provided however, that in no event shall the foregoing require Tenant to make any alterations or improvements to the Premises, structural or otherwise unless such alterations are required due to any Tenant Improvements or other Alterations performed by or on behalf of Tenant, or arising from Tenant’s specific use. |
shall have the right to remove Tenant’s name or sign from the monument sign, if, any time during the Lease Term, Tenant (a) assigns this Lease, (b) sublets more than 30% of the Premises, or (c) ceases to occupy at least 25,960 rentable square feet of space in the Building. Tenant’s sign shall be removed at Tenant’s sole cost at the end of the Lease Term or earlier termination of the Lease and all damage promptly repaired at Tenant’s cost. The signage rights granted to Tenant under this article shall not prohibit Landlord from granting other tenants the right to install signage on the monument or the Building. |
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25. BROKER. Tenant represents and warrants that it neither consulted nor negotiated with any broker or finder regarding the Premises, except the Landlord’s Broker and Tenant’s Broker, who shall be paid by Landlord pursuant to a separate written agreement (and Landlord shall indemnify and hold Tenant harmless from and against any claims regarding such commissions), provided that neither the foregoing nor anything else in this Lease is intended, or shall be construed, to grant such Brokers any rights under this Lease or make them third party beneficiaries of this Lease. Each of Landlord and Tenant shall indemnify, defend, and hold the other harmless from and against any claims for commissions from any real estate broker other than the Landlord’s Broker and Tenant’s Broker with whom it has dealt in connection with this Lease. The terms of this Article shall survive the expiration or earlier termination of this Lease. |
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33. WATER OR MOLD NOTIFICATION. To the extent Tenant or its agents or employees discover any water leakage, water damage or mold in or about the Premises or Project, Tenant shall promptly notify Landlord thereof in writing. Mold is a naturally occurring substance. Mold is found both indoors and outdoors. The presence of mold may cause property damage or health problems. Unless the presence of mold is caused by Landlord’s failure to comply with its obligations under this Lease, Landlord shall not be liable for any loss, damage or personal injury suffered by Tenant, or any of the Tenant’s officers, directors, employees, or invitees, due to the presence of mold in or around the Building. Unless the presence of mold is caused by landlord’s failure to comply with its obligations under this Lease, Tenant acknowledges that it shall be Tenant’s responsibility to undertake necessary measures within Tenant’s control to retard and prevent mold from accumulating within the Premises, including, but not limited to, the following: (a) maintaining appropriate climate control within the Premises; (b) maintaining the cleanliness of the Premises; (c) removing visible moisture accumulations on windows, window sills, walls, floors, ceilings and other surfaces as soon as reasonably possible; and (d) not blocking or covering any heating, ventilating or air conditioning ducts within the Premises. Tenant shall report immediately in writing to Landlord any evidence of mold or of a water leak or excessive moisture within the Premises, or the Building, of which Tenant becomes aware. Should Tenant desire a mold inspection or additional information about mold, Tenant should contact a professional in this field. If Landlord determines that any material concentrations of mold species or mold concentrations are detected in the Premises that are not found in air samples taken in the exterior of the Building and which, in the reasonable business judgment of Landlord, pose a hazard to the health and safety of the occupants of the Premises, and such mold species or mold concentrations were not introduced or caused by Tenant, its agents, employees, subtenants, or contractors (including
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but not limited to due to Tenant’s failure to make repairs to the Premises as required of Tenant under this Lease), Landlord shall remediate any such excess mold concentrations and/or species within the Building, the cost of which shall be included in Operating Costs. If such mold concentrations or species are caused by Tenant, its agents, employees, subtenants, or contractors, then Tenant shall remediate any such excess mold concentrations at Tenant’s sole cost and expense. |
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34. UBTI. Landlord and Tenant agree that all Rent payable by Tenant to Landlord shall qualify as “rents from real property” within the meaning of both Sections 512(b)(3) and 856(d) of the Internal Revenue Code of 1986, as amended (the “Code”) and the U.S. Department of Treasury Regulations promulgated thereunder (the “Regulations”). In the event that Landlord, in its sole and absolute discretion, determines that there is any risk that all or part of any Rent shall not qualify as “rents from real property” for the purposes of Sections 512(b)(3) or 856(d) of the Code and the Regulations promulgated thereunder, Tenant agrees (a) to cooperate with Landlord by entering into such amendment or amendments as Landlord deems necessary to qualify all Rents as “rents from real property,” and (b) to permit an assignment of this Lease; provided, however, that any adjustments required pursuant to this Section 25.28 shall be made so as to produce the equivalent Rent (in economic terms) payable prior to such adjustment. |
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35. PROHIBITED PERSONS AND TRANSACTIONS. Tenants represents and warrants that neither it nor, to its knowledge, any of its affiliates, nor any of its respective partners, members, shareholders or other equity owners, and none of their respective employees, officers, directors, representatives or agents is, nor will they become, a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated Nationals and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and will not Transfer this Lease to, contract with or otherwise engage in any dealings or transactions or be otherwise associated with such persons or entities. |
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36. ERISA. Tenant represents that (i) neither Tenant nor any entity controlling or controlled by Tenant owns a ten percent (10%) or more interest (within the meaning of Prohibited Transaction Class Exemption 84-14) in JPMorgan Chase Bank, N.A. (“JPMorgan”) or any of JPMorgan's affiliates, and (ii) neither JPMorgan, nor, to Tenant's actual knowledge (after having used reasonable efforts to ascertain the accuracy of such information), any of its affiliates, owns a ten percent (10%) or more interest in Tenant or any entity controlling or controlled by Tenant. |
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37.1 Installation/Operation. No changes to the Generator or its related equipment, wiring, and connections to the Premises (together with the Generator, the “Generator Equipment”); shall be made without the prior written consent of Landlord, which shall not be unreasonably withheld. Landlord shall have the right, in its sole discretion, to disapprove any work that voids or adversely affects any warranty. Tenant, at its sole expense, shall operate the Generator Equipment in accordance with all applicable laws and requirements of all governmental and quasi-governmental authorities having jurisdiction over the Building (the “Codes”), including obtaining all permits required, and with all requirements or recommendations of Landlord’s insurer, lender, or both, and Landlord’s reasonable rules and regulations. Tenant shall pay the electrical utility provider directly for the electricity consumed or as billed by Landlord, if any. Landlord shall not be liable to Tenant for any stoppages or shortages of electrical power furnished to the Generator because of any act, omission, or requirement of any electrical utility provider, or the act or omission of any other tenant or licensee of the Project, or for any other cause beyond the control of Landlord. Landlord may from time to time relocate the Equipment, or any part of it, to other areas in, at, or upon the Project. Upon relocation of the Equipment, Tenant’s means of access and cabling will be relocated by Landlord or, at Landlord’s option, by Tenant, as required to operate and maintain the Equipment. |
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37.2 Service Contract. As part of its repair and maintenance obligation, Tenant shall enter into an annual contract with a generator repair firm, fully licensed to repair generators in the State of Florida, which firm shall: (a) regularly service and inspect the Generator Equipment on a monthly basis, changing parts as required; (b) perform emergency and extraordinary repairs on the Generator Equipment; and (c) keep a detailed record of all Generator Equipment services performed on the Premises and
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prepare a yearly service report to be furnished to Tenant at the end of each calendar year. Tenant shall furnish to Landlord, at the end of each calendar year, a copy of the yearly service report. Not later than 30 days prior to the Commencement Date and annually thereafter, Tenant shall furnish to Landlord a copy of the maintenance contract described above and proof that the annual premium for the maintenance contract has been paid. |
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37.3 No Liability. Landlord shall have no responsibility or liability for the conduct or safety of any of Tenant’s representatives, or repair, maintenance, and engineering personnel while in any part of the Project; and shall not be liable for any charge, fine, cost, expense, or damage to the Generator Equipment or any part of the Project, unless proximately caused solely by Landlord’s gross negligence or willful misconduct. Tenant shall give Landlord prompt written notice of any accident to any equipment of Landlord. Landlord shall not be liable for any latent defect or change or modification in the Project or Site, nor for any damage to property or persons caused by any overflow or leakage of water, steam, gas, electricity, or any other substance from any other generator whatsoever, except for such damage caused by the gross negligence or willful misconduct of Landlord. Tenant shall be solely responsible for any loss or damage to the Generator arising from casualty, fire, flood, tornado, or other acts of God. |
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37.4 Discontinuance. If Tenant fails to cure a default under this Section 37 within five Business Days after notice of non-compliance from Landlord, Landlord may require Tenant to discontinue Tenant’s Generator use. |
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38. GENERAL PROVISIONS. |
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38.1 Construction Principles. The words “including” and “include” and similar words will not be construed restrictively to limit or exclude other items not listed. This Lease has been negotiated “at arm’s-length” by Landlord and Tenant, each having the opportunity to be represented by legal counsel of its choice and to negotiate the form and substance of this Lease. Therefore, this Lease shall not be more strictly construed against either party because one party may have drafted this Lease. If any provision of this Lease is determined to be invalid, illegal, or unenforceable, the remaining provisions of this Lease shall remain in full force, if the essential provisions of this Lease for each party remain valid, binding, and enforceable. The parties may amend this Lease only by a written agreement of the parties. This Lease shall constitute the entire agreement of the parties concerning the matters covered by this Lease. All prior understandings and agreements had between the parties concerning those matters, including all preliminary negotiations, lease proposals, letters of intent, and similar documents, are merged into this Lease, which alone fully and completely expresses the understanding of the parties. The provisions of this Lease may not be explained, supplemented, or qualified through evidence of trade usage or a prior course of dealings. In entering into this Lease, neither party has relied upon any statement, representation, warranty, or agreement of the other party except for those expressly contained in this Lease. There are no conditions precedent to the effectiveness of this Lease, other than those expressly stated in this Lease. Landlord and Tenant intend that faxed or PDF format signatures constitute original signatures binding on the parties. This Lease shall bind and inure to the benefit of the heirs, personal representatives, and, except as otherwise provided, the successors and assigns of the parties to this Lease. Each provision of this Lease shall be deemed both a covenant and a condition and shall run with the land. Any liability or obligation of Landlord or Tenant arising during the Lease Term shall survive the expiration or earlier termination of this Lease. |
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38.2 Radon Gas. The following notification is provided under Section 404.056(5), Florida Statutes: “Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department.” |
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38.3 Corporate Seal. The scroll seal set forth immediately below the signature of the individual executing this Lease on Tenant’s behalf has been adopted by the corporation as its seal for the purpose of execution of this Lease and the scroll seal has been affixed to this Lease as the seal of the corporation and not as the personal or private seal of the officer executing this Lease on behalf of the corporation. |
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38.4 Exhibits. All exhibits, riders, and addenda attached to this Lease shall, by this reference, be incorporated into this Lease. The following exhibits are attached to this Lease: |
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EXHIBIT “A” |
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Legal Description of the Project |
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EXHIBIT “B” |
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Location of Premises |
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EXHIBIT “C” |
– |
Intentionally Omitted |
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EXHIBIT “D” |
– |
Rules and Regulations |
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EXHIBIT “E” EXHIBIT “F” |
– – |
Tenant Improvements Monument Signage |
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39. JURY WAIVER; COUNTERCLAIMS. LANDLORD AND TENANT KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM INVOLVING ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE. |
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40. QUIET POSSESSION. So long as an Event of Default is not occurring, and subject to the Lease terms, Tenant shall have peaceable and quiet enjoyment of the Premises during the Term from interference caused by Landlord, or any party acting by, through, or under Landlord. |
IN WITNESS WHEREOF, this Lease has been executed on behalf of Landlord and Tenant as of the Date of this Lease.
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WITNESSES:
_____________________________________ Signature of Witness 1
_____________________________________ Print or type name of Witness 1
_____________________________________ Signature of Witness 2
_____________________________________ Print or type name of Witness 2
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LANDLORD:
3801 PGA ACQUISITION COMPANY, a Delaware corporation
By: ____________________________________ Name: _________________________________ Title: __________________________________
[CORPORATE SEAL]
Date Executed: ___________________________
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_____________________________________ Signature of Witness 1
_____________________________________ Print or type name of Witness 1
_____________________________________ Signature of Witness 2
_____________________________________ Print or type name of Witness 2
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TENANT:
BANKRATE, INC., a Delaware corporation
By: ____________________________________ Name: _________________________________ Title*: __________________________________
[CORPORATE SEAL]
Date Executed: ________________________
*Must be the President, any Vice President, or Chief Executive Officer |
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EXHIBIT “A”
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LEGAL DESCRIPTION OF THE PROJECT |
PARCEL 1:
Parcel “C”, THE MEDICAL MALL AT PALM BEACH GARDENS PLAT 1, according to the Plat thereof, as recorded in Plat Book 74, Page 80, of the Public Records of Palm Beach County, Florida.
PARCEL 2:
TOGETHER WITH a non-exclusive easement for the purpose of access, ingress and egress upon Parcel “B”, THE MEDICAL MALL AT PALM BEACH GARDENS PLAT 1, according to the Plat thereof, as recorded in Plat Book 74, Page 80, pursuant to Covenants, Restrictions and Easements recorded in Official Records Book 11936, Page 752, of the Public Records of Palm Beach County, Florida.
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EXHIBIT “B”
LOCATION OF PREMISES
The above plan is for location of Premises only and is not a representation by Landlord as to any other improvements shown.
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EXHIBIT “C”
Intentionally Omitted
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EXHIBIT “D”
RULES AND REGULATIONS
The following rules and regulations shall apply to the Premises, the Building, any parking garage or other parking lot or facility associated therewith, and the appurtenances thereto:
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1. Sidewalks, doorways, vestibules, halls, stairways, and other similar areas shall not be obstructed by tenants or used by any tenant for purposes other than ingress and egress to and from their respective leased premises and for going from one to another part of the Building. The halls, passages, exits, entrances, elevators, stairways, balconies and roof are not for the use of the general public and Landlord shall, in all cases, retain the right to control and prevent access thereto by all persons whose presence in the judgment of Landlord, reasonably exercised, shall be prejudicial to the safety, character, reputation and interests of the Project. No Tenant Party shall go upon the roof of the Project. |
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2. Plumbing, fixtures and appliances shall be used only for the purposes for which designed, and no sweepings, rubbish, rags or other unsuitable material shall be thrown or deposited therein. Damage resulting to any such fixtures or appliances from misuse by a tenant or its agents, employees or invitees, shall be paid by such tenant. |
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3. No signs, advertisements or notices (other than those that are not visible outside the Premises) shall be painted or affixed on or to any windows or doors or other part of the Building without the prior written consent of Landlord. No nails, hooks or screws (other than those which are necessary to hang paintings, prints, pictures, or other similar items on the Premises’ interior walls) shall be driven or inserted in any part of the Building except by Building maintenance personnel. No curtains or other window treatments shall be placed between the glass and the Building standard window treatments. |
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4. Landlord shall provide all initial door locks at the entry of each tenant’s leased premises, at Landlord’s cost, and no tenant shall place any additional door locks in its leased premises without Landlord’s prior written consent. Landlord shall furnish to Tenant one key and/or access card to each of Tenant’s employees to be located within Premises, at Landlord’s cost, and Tenant shall not make a duplicate thereof. Replacement keys and/or access cards shall be provided on a reasonable basis and at Tenant’s cost. |
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5. Movement in or out of the Building of furniture or office equipment, or dispatch or receipt by tenants of any bulky material, merchandise or materials which require use of elevators or stairways, or movement through the Building entrances or lobby shall be conducted under Landlord’s supervision at such times and in such a manner as Landlord may reasonably require. Each tenant assumes all risks of and shall be liable for all 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 damaged or injured as a result of acts in connection with carrying out this service for such tenant. |
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6. Landlord may prescribe weight limitations and determine the locations for safes and other heavy equipment or items, which shall in all cases be placed in the Building so as to distribute weight in a manner acceptable to Landlord which may include the use of such supporting devices as Landlord may require. All damages to the Building caused by the installation or removal of any property of a tenant, or done by a tenant’s property while in the Building, shall be repaired at the expense of such tenant. |
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7. Corridor doors, when not in use, shall be kept closed. Nothing shall be swept or thrown into the corridors, halls, elevator shafts or stairways. No bicycles, birds or animals (other than seeing-eye dogs) shall be brought into or kept in, on or about any tenant’s leased premises. No portion of any tenant’s leased premises shall at any time be used or occupied as sleeping or lodging quarters. |
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8. Tenant shall cooperate with Landlord’s employees in keeping its leased premises neat and clean. Tenants shall not employ any person for the purpose of such cleaning other than the Building’s cleaning and maintenance personnel. |
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9. To ensure orderly operation of the Building, no ice, mineral or other water, towels, newspapers, etc. shall be delivered to any leased area except by persons approved by Landlord. |
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10. Tenant shall not make or permit any vibration or improper, objectionable or unpleasant noises or odors in the Building or otherwise interfere in any way with other tenants or persons having business with them. |
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11. No machinery or appliances of any kind (other than normal office equipment and normal break room appliances) shall be operated by any tenant on its leased area without Landlord’s prior written consent, nor shall any tenant use or keep in the Building any flammable or explosive fluid or substance (other than typical office supplies [e.g., photocopier toner] used in compliance with all laws). |
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12. Landlord will not be responsible for lost or stolen personal property, money or jewelry from tenant’s leased premises or public or common areas regardless of whether such loss occurs when the area is locked against entry or not. |
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13. No vending or dispensing machines of any kind may be maintained in any leased premises without the prior written permission of Landlord. |
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14. Tenant shall not conduct any activity on or about the Premises or Building which will draw pickets, demonstrators, or the like. |
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15. All vehicles are to be currently licensed, in good operating condition, parked for business purposes having to do with Tenant’s business operated in the Premises, parked within designated parking spaces, one vehicle to each space. No vehicle shall be parked as a “billboard” vehicle in the parking lot. Any vehicle parked improperly may be towed away. Tenant, Tenant’s agents, employees, vendors and customers who do not operate or park their vehicles as required shall subject the vehicle to being towed at the expense of the owner or driver. Landlord may place a “boot” on the vehicle to immobilize it and may levy a charge of $50.00 to remove the “boot.” Tenant shall indemnify, hold and save harmless Landlord from any liability arising from the towing or booting of any vehicles belonging to Tenant Party. |
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16. No tenant may enter into phone rooms, electrical rooms, mechanical rooms, or other service areas of the Building unless accompanied by Landlord or the Building manager. |
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17. Tenant will not permit any Tenant Party to bring onto the Project any handgun, firearm or other weapons of any kind, illegal drugs or, unless expressly permitted by Landlord in writing, alcoholic beverages. |
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18. Tenant shall not permit any Tenant Party to smoke in the Premises or anywhere else on the Project, except in any Landlord-designated smoking area outside the Building. Tenant shall cooperate with Landlord in enforcing this prohibition and use its best efforts in supervising each Tenant Party in this regard. |
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19. Tenant shall not allow any Tenant Party to use any type of portable space heater in the Premises or the Building. |
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20. Only artificial holiday decorations may be placed in the Premises, no live or cut trees or other real holiday greenery may be maintained in the Premises or the Building. |
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21. Tenant shall not park or operate any semi-trucks or semi-trailers in the parking areas associated with the Building. |
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22. Tenant shall cooperate fully with Landlord to assure the most effective operation of the Premises or the Project’s heating and air conditioning, and shall refrain from attempting to adjust any controls, other than room thermostats installed for Tenant’s use. Tenant shall keep corridor doors closed and shall turn off all lights before leaving the Project at the end of the day. |
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23. Without the prior written consent of Landlord, Tenant shall not use the name of the Project or any picture of the Project in connection with, or in promoting or advertising the business of, Tenant, except Tenant may use the address of the Project as the address of its business. |
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24. Tenant shall not exhibit, sell or offer for sale, rent or exchange in the Premises or at the Project any article, thing or service to the general public or anyone other than Tenant’s employees without the prior written consent of Landlord. |
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25. Tenant shall ensure that all portions of the leased premises visible from any interior Building common areas are lighted at all times during normal business hours regardless whether the leased premises are occupied. |
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EXHIBIT “E”
TENANT IMPROVEMENTS
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Tenant Builds at Tenant’s Cost |
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1. Condition of Premises. Landlord has made no representation or promise as to the condition of the Premises. Landlord shall not perform any alterations, additions, or improvements in order to make the Premises suitable and ready for occupancy and use by Tenant. Tenant has inspected the Premises, is fully familiar with the physical condition of the Premises, and shall accept the Premises “as-is,” “where-is,” without any warranty, express or implied, or representation as to fitness or suitability. Landlord shall not be liable for any latent or patent defect in the Premises or for any costs or expenses related in any way to the Tenant Improvements, except as expressly set forth in this Exhibit. |
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2. Plans. Tenant shall, at its sole cost and expense, perform all work necessary or desirable for Tenant’s occupancy of the Premises (the “Tenant Improvements”). The performance of any Tenant Improvements by Tenant is not a required condition to this Lease. Within 21 days after the Date of this Lease, Tenant shall furnish to Landlord, for Landlord's written approval, a permit set (final construction drawings) of plans and specifications for the Tenant Improvements (the “Plans”). The Plans shall include the following: fully dimensioned architectural plan; electric/telephone outlet diagram; reflective ceiling plan with light switches; mechanical plan; furniture plan; electric power circuitry diagram; plumbing plans; all color and finish selections; all special equipment and fixture specifications; and fire sprinkler design drawings. Tenant shall submit the approved Plans to applicable building authorities for permit within five days following Landlord's approval and Tenant shall thereafter diligently pursue obtaining its building permits. The Plans will be prepared by a licensed architect and the electrical and mechanical plans will be prepared by a licensed professional engineer. The Plans shall be produced on CAD. The architect and engineer will be subject to Landlord's approval, which shall not be unreasonably withheld. The Plans shall comply with all applicable laws, ordinances, directives, rules, regulations, and other requirements imposed by any and all governmental authorities having or asserting jurisdiction over the Premises. Landlord shall review the Plans and either approve or disapprove them within a reasonable period of time. Should Landlord disapprove them, Tenant shall make any necessary modifications and resubmit the Plans to Landlord in final form within ten days following receipt of Landlord’s disapproval of them. |
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3. Contractor. The Tenant Improvements shall be constructed by a licensed and insured general contractor selected and paid by Tenant and approved by Landlord. At Landlord’s option, the general contractor shall obtain a payment and performance bond in form complying with Section 713.23, Florida Statutes. A copy of the bond, the contractor's license(s) to do business in the jurisdiction(s) in which the Premises are located, the fully executed contract between Tenant and the general contractor, the general contractor’s work schedule, and all building or other governmental permits required for the Tenant Improvements shall be delivered to Landlord before commencement of the Tenant Improvements. Tenant shall cause the Tenant Improvements to be completed promptly and with due diligence, and in accordance with the Plans in a good and workmanlike manner using new materials in accordance with Building standards. All work shall be done in compliance with all other applicable provisions of this Lease and with all applicable laws, ordinances, directives, rules, regulations, and other requirements of any governmental authorities having or asserting jurisdiction over the Premises, including the making of any alterations or improvements to the Premises or the Project which are required to comply with the ADA and the payment by Tenant of any impact fees or assessments arising from the Tenant Improvements or occupancy. Before the commencement of any work by Tenant, Tenant shall furnish to Landlord certificates evidencing the existence of builder’s risk, commercial general and auto liability, and workers' compensation insurance complying with the requirements for contractors set forth in the Alterations article of this Lease, or as otherwise required by Landlord. Any damage to any part of the Project that occurs as a result of the Tenant Improvements shall be promptly repaired by Tenant. |
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4. Compliance. Tenant shall also ensure compliance with the following requirements concerning construction, including all future Alterations: |
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4.1 Tenant and all construction personnel shall abide by Landlord’s job site rules, requirement, and regulations (whether supplemental or additional to the requirements set forth in this Lease), and fully cooperate with Landlord’s construction representatives in coordinating all construction activities in the Project, including rules and regulations concerning working hours and parking, and, if applicable, use of the construction elevator. |
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4.2 All transportation of construction materials shall be on the padded construction elevator only, if any. |
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4.3 Tenant shall deliver to Landlord all forms of approval provided by the appropriate local governmental authorities to certify that the Tenant Improvements have been completed and the Premises are ready for occupancy, including original building permit and a final, unconditional Certificate of Occupancy or its equivalent, including a Certificate of Completion or Certificate of Final Inspection. |
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4.4 At all times during construction, Tenant shall allow Landlord access to the Premises for inspection purposes. On completion of the Tenant Improvements, Tenant’s general contractor shall review the Premises with Landlord and Tenant and secure Landlord’s and Tenant’s acceptance of the Tenant Improvements. |
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4.5 Tenant shall be responsible for cleaning up any refuse or other materials left behind by construction personnel at the end of each work day. If required by Landlord, Workers shall provide their own temporary toilet facilities, trash facilities, water coolers, and construction materials dumpsters and shall locate them along with any construction trailers or field offices in areas specifically designated by Landlord. |
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4.6 Any work that may disturb tenants of the Building (including welding, cutting torch, drilling or cutting of the concrete floor slab or temporary interruption of any utility service), shall only occur before or after normal business hours and as otherwise specified by Landlord. No painting or spraying of chemicals, varnishes, lacquers, finishes, or paint will be allowed during normal business hours. Such activities shall only occur during days and times specifically preapproved by Landlord. All workers must stay in their designated work areas and the use of radios, loud music, alcoholic beverages, narcotics, or cigarette smoking is prohibited on the Project. |
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4.7 Reasonable quantities of water and electricity for lighting, portable power tools, and other common uses as well as use of the construction elevator will be furnished to the contractor at a cost to be assigned at the completion of the job based on usage during the build-out period (including Building standard charges for use of the elevator). The contractor shall make all utility connections, furnish any necessary extensions, and promptly and professionally remove such connections and extensions on completion of work. |
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4.8 Any work that will involve the draining of a sprinkler line or otherwise affect the Building’s fire sprinkler system must be approved by Landlord in advance. In all instances where this is done, the system shall not be left inoperable overnight or over a prolonged period. |
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4.9 All equipment installed shall be compatible with the base building fire alarm system and the contractor shall warrant that any connection to the base building fire alarm system shall only occur after proper notification to Landlord and on an after-hours basis. Any disruption to the existing fire alarm system or damage as a result of contractor’s work will be the sole responsibility of Tenant. |
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4.10 All additional electrical circuits added to existing electrical panels or any new circuits added to new electrical panels will be appropriately labeled as to the area or equipment serviced by the circuit in question. Any electrical panel covers removed to facilitate installation or connection shall be reattached. |
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4.11 Tenant shall deliver copies of all Notices to Owner received from subcontractors, vendors, trade contractors and all others giving Notice to Owner under applicable Construction Lien Law within five days of receipt of such notices. |
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4.12 Upon completion of the Tenant Improvements Tenant shall also deliver to Landlord two complete copies of each of the following: |
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(a) “as-built” construction documents in PDF file format on CDs; |
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(b) general contractor’s one-year warranty and subcontractor warrantees, as well as factory warrantees on equipment installed; |
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(c) operating and maintenance manuals for all equipment installed; |
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(d) fire sprinkler system permit set of drawings; |
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(e) HVAC test and balance reports; |
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(f) subcontractor listing with contact and phone numbers included; |
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(g) final payment application from general contractor; and |
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(h) final releases of lien from Tenant’s general contractor and all lienors giving notice as defined in the Florida Construction Lien Law (in form required by Landlord) and a final contractor’s affidavit from the general contractor in accordance with the Florida Construction Lien Law, indicating all "lienors" have been paid in full. |
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5. Tenant Improvement Cost. Tenant shall spend the Tenant Improvement Cost set forth in the Basic Lease Information and Defined Terms section of this Lease for the Tenant Improvements to the Premises and complete the Tenant Improvements to such extent of the Tenant Improvement Cost by no later than February 1, 2015. Such date shall be subject to extension for Unavoidable Delays (but shall not be subject to any additional cure periods). Landlord and Tenant acknowledge and agree that, in lieu of Landlord performing a build-out of the Premises and/or providing Tenant a tenant improvement allowance, Landlord, as a material inducement for Tenant to pay for and construct the Tenant Improvements upon the Premises, has provided the Rent Abatement to Tenant. |
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exhibit “f”
monument signage
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