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EXHIBIT 10.27
INDUSTRIAL BUILDING LEASE
Landlord:
CENTERPOINT PROPERTIES TRUST,
a Maryland real estate investment trust
Tenant:
WORLD DRYER CORPORATION,
a Division of Specialty Equipment Manufacturing
Corporation, a Delaware corporation
Property Address:
0000 XxXxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxx
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TABLE OF CONTENTS
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ARTICLE I Lease Terms......................................... 1
Section 1.1. Definitions......................................... 1
Section 1.2. Significance of Definitions......................... 2
Section 1.3. Enumeration of Exhibits............................. 2
ARTICLE II Premises............................................ 2
Section 2.1. Lease............................................... 2
ARTICLE III Term................................................ 2
Section 3.1. Term................................................ 2
ARTICLE IV Condition of Demised Premises....................... 3
Section 4.1. Condition of Premises............................... 3
ARTICLE V Rent................................................ 3
Section 5.1. Base Rent........................................... 3
Section 5.2. Interest and Late Charges on Late Payments.......... 3
ARTICLE VI Taxes and Impositions............................... 4
Section 6.1. Taxes............................................... 4
Section 6.2. Utilities........................................... 5
Section 6.3. Expenses............................................ 5
Section 6.4. Deposits............................................ 5
Section 6.5. Adjustment Statement ............................... 5
Section 6.6. Payments ........................................... 5
Section 6.7. Payment Adjustments ................................ 6
Section 6.8. Right to Pay ....................................... 6
Section 6.9. Landlord's Contest of Taxes ........................ 6
ARTICLE VII Use ................................................ 6
Section 7.1. Use ................................................ 6
Section 7.2. Prohibited Uses .................................... 6
ARTICLE VIII Maintenance, Repair and Replacements of Premises.... 7
Section 8.1. .................................................... 7
Section 8.2. Governmental Requirements........................... 7
Section 8.3. Tenant's Responsibilities........................... 7
Section 8.4. Maintenance Contract................................ 8
ARTICLE IX
Tenant's Insurance .................................................. 8
Section 9.1. Coverage Required................................... 8
Section 9.2. Policies............................................ 10
Section 9.3. Subrogation......................................... 10
Section 9.4. Self-Insurance...................................... 10
Section 9.5. Miscellaneous Insurance Provisions.................. 11
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ARTICLE X Property Insurance.................................. 12
ARTICLE XI Damage or Destruction............................... 12
Section 11.1. Damage or Destruction by Fire or Casualty........... 12
ARTICLE XII Liens............................................... 12
Section 12.1. Lien Claims......................................... 12
Section 12.2. Landlord's Right to Cure............................ 12
ARTICLE XIII Alterations and Improvements........................ 13
Section 13.1. Alterations......................................... 13
Section 13.2. Ownership of Alterations............................ 14
Section 13.3. Signs............................................... 14
Section 13.4. Tenant Indemnity.................................... 14
Section 13.5. Environmental Impact................................ 14
ARTICLE XIV Condemnation........................................ 15
Section 14.1. Taking: Lease to Terminate.......................... 15
Section 14.2. Taking: Lease to Continue........................... 15
Section 14.3. Tenant's Claim...................................... 15
ARTICLE XV Rent Absolute ...................................... 15
Section 15.1. Rent Absolute....................................... 15
ARTICLE XVI Assignment -- Subletting by Tenant.................. 16
Section 16.1. No Assignment Subletting or Other Transfer.......... 16
Section 16.2. Operation of Law.................................... 16
Section 16.3. Excess Rental....................................... 16
Section 16.4. Merger or Consolidation............................. 16
Section 16.5. Unpermitted Transaction............................. 17
ARTICLE XVII Annual Statements................................... 17
Section 17.1. Annual Statements................................... 17
ARTICLE XVIII Indemnity for Litigation............................ 17
Section 18.1. Indemnity for Litigation............................ 17
ARTICLE XIX Estoppel Certificates............................... 17
Section 19.1. Estoppel Certificate................................ 17
ARTICLE XX Inspection of Premises.............................. 17
Section 20.1. Inspections......................................... 17
Section 20.2. Signs............................................... 18
ARTICLE XXI Fixtures............................................ 18
Section 21.1. Building Fixtures................................... 18
Section 21.2. Tenant's Equipment.................................. 18
Section 21.3. Removal of Tenant's Equipment....................... 18
ARTICLE XXII Default............................................. 18
Section 22.1. Events of Default................................... 18
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Section 22.2. Waivers............................................. 19
Section 22.3. Bankruptcy.......................................... 20
ARTICLE XXIII Landlord's Performance of Tenant's Covenants....... 21
Section 23.1. Landlord's Right to Perform Tenant's Obligations.... 21
ARTICLE XXIV Exercise of Remedies................................ 21
Section 24.1. Cumulative Remedies................................. 21
Section 24.2. No Waiver........................................... 21
Section 24.3. Equitable Relief.................................... 22
ARTICLE XXV Subordination to Mortgages.......................... 22
Section 25.1. Subordination....................................... 22
Section 25.2. Mortgage Protection................................. 22
ARTICLE XXVI Indemnity and Waiver................................ 22
Section 26.1. Indemnity........................................... 22
Section 26.2. Waiver of Claims.................................... 23
ARTICLE XXVII Surrender........................................... 24
Section 27.1. Condition........................................... 24
Section 27.2. Removal of Tenant's Equipment....................... 24
Section 27.3. Holdover............................................ 24
ARTICLE XXVIII Covenant of Quiet Enjoyment......................... 24
Section 2 8.1. Covenant of Quiet Enjoyment......................... 24
ARTICLE XXIX No Recording........................................ 25
Section 29.1. Short Form of Lease................................. 25
ARTICLE XXX Notices............................................. 25
Section 30.1. Notices............................................. 25
ARTICLE XXXI Covenants Run with Land............................. 25
Section 31.1. Covenants........................................... 25
Section 31.2. Release of Landlord................................. 25
ARTICLE XXXII Environmental Matters............................... 26
Section 32.1. Defined Terms....................................... 26
Section 32.2. Tenant's Covenants with Respect to
Environmental Matters............................. 27
Section 32.3. Conduct of Tenant................................... 28
Section 32.4. Exacerbation........................................ 29
Section 32.5. Rights of Inspection................................ 29
Section 32.6. Copies of Notices................................... 29
Section 32.7. Tests and Reports................................... 29
Section 32.8. Indemnification..................................... 30
Section 32.9. Tenant Acknowledgments with respect to
Environmental Matters............................ 31
Section 32.10. No Liability of Landlord............................ 31
ARTICLE XXXIII Security Deposit.................................... 32
Section 33.1. Security Deposit.................................... 32
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ARTICLE XXXIV Tenant's Work....................................... 32
Section 34. 1. Tenant's Work....................................... 32
Section 34.2. Plans............................................... 32
Section 34.3. Tenant Allowance.................................... 32
Section 34.4. Governmental Approvals.............................. 32
Section 34.5. Landlord Access to Tenant Work...................... 33
Section 34.6. Safety.............................................. 33
Section 34.7. Completion.......................................... 33
ARTICLE XXXV Miscellaneous....................................... 33
Section 35.1. Captions............................................ 33
Section 35.2. Severability........................................ 34
Section 35.3. Applicable Law...................................... 34
Section 35.4. Amendments in Writing............................... 34
Section 35.5. Relationship of Parties............................. 34
Section 35.6. Brokerage........................................... 34
Section 35.7. No Accord and Satisfaction.......................... 34
Section 35.8. Joint Effort........................................ 34
Section 35.9. Waiver of Jury Trial................................ 34
Section 35.10. Time................................................ 34
Section 35.11. Landlord's Consent.................................. 34
Section 35.12. No Partnership...................................... 35
Section 35.13. Landlord's Liability................................ 35
Section 35.14. Entire Agreement.................................... 35
Section 35.15. Rent Absolute....................................... 35
Section 35.16. Purchase Contingency................................ 35
(iv)
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Property
Address:
0000 XxXxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxx
INDUSTRIAL BUILDING LEASE
-------------------------
THIS LEASE is made as of this 21st day of December, 1999 between
CENTERPOINT PROPERTIES TRUST, a Maryland real estate investment trust
("Landlord"), and WORLD DRYER CORPORATION, a Division of Specialty Equipment
Manufacturing Corporation, a Delaware corporation ("Tenant").
ARTICLE I
Lease Terms
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SECTION 1.1. DEFINITIONS. In addition to the other terms, which are
elsewhere defined in this Lease, the following terms and phrases, whenever used
in this Lease shall have the meanings set forth in this Subsection, and only
such meanings, unless such meanings are expressly contradicted, limited or
expanded elsewhere herein.
A. BASE RENT SCHEDULE:
PERIOD ANNUAL MONTHLY
LEASE YEAR (BY LEASE MONTH) BASE RENT BASE RENT
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1 1-12 $226,386.00 $18,865.50
2 13-24 $230,913.72 $19,242.81
3 25-36 $235,531.99 $19,627.67
4 37-48 $240,242.63 $20,020.22
5 49-60 $245,047.48 $20,420.62
6 61-72 $249,948.43 $20,829.04
7 73-84 $254,947.40 $21,245.62
8 85-96 $260,046.35 $21,670.53
9 97-108 $265,247.28 $22,103.94
10 100-120 $270,552.23 $22,546.02
B. SECURITY DEPOSIT: $29,481.69
C. INITIAL DEPOSIT: $10,616.19
(i) Initial Tax Deposit: $10,616.19
(ii) Initial Insurance Deposit: $-0
(iii) Initial Expense Deposit: $-0
D. INITIAL TERM: The initial ten (10)-year term, commencing
as of the Commencement Date.
E. COMMENCEMENT DATE: The later of (i) the first day following
Landlord's acquisition of the Premises, or (ii) February 1, 2000. Landlord
shall provide Tenant with a five (5) day notice of Landlord's
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estimate of the Commencement Date and shall further provide notice to Tenant as
of the actual Commencement Date. By way of example only, if Landlord acquires
the Premises on December 25, 1999, the Commencement Date shall be December 26,
1999 and Landlord shall provide notice to Tenant on or before December 21, 1999
with the estimated Commencement Date and then provide notice to Tenant with the
actual Commencement Date on December 26, 1999.
F. TERMINATION DATE: The last day of the one hundred twentieth
(120th) full month following the Commencement Date.
G. TERM: The Initial Term as same may be extended or sooner
terminated.
H. USE: Light manufacturing, warehouse and related offices.
I. LANDLORD'S MAILING ADDRESS:
0000 Xxxxx Xxxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attn: Xx. Xxxx X. Xxxxx
J. TENANT'S MAILING ADDRESS:
0000 XxXxxxxxx Xxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attn: Mr. Xxx XxXxx
SECTION 1.2. SIGNIFICANCE OF DEFINITIONS. Each reference in this Lease to
any of the Definitions contained in Section 1.1 of this Article shall be deemed
and construed to incorporate all of the terms provided under each such
Definition.
SECTION 1.3. ENUMERATION OF EXHIBITS. The exhibits in this Section and
attached to this Lease are incorporated in this Lease by this reference and are
to be construed as a part of this Lease.
EXHIBIT "A" - Legal Description
EXHIBIT "B" - Form of Estoppel Certificate
Exhibit "C" - Tenant's Work
ARTICLE 11
PREMISES
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SECTION 2.1. LEASE. Landlord, for and in consideration of the rents herein
reserved and of the covenants and agreements herein contained on the part of
Tenant to be kept, observed and performed, does by these presents, lease to
Tenant, and Tenant hereby leases from Landlord, the real estate located at 0000
XxXxxxxxx Xxxxx, Xxxxxxxx, Xxxxxxxx, and legally described on Exhibit "A"
attached hereto and by this reference incorporated herein ("Land"), together
with all improvements now located or hereafter constructed thereon
("Improvements") (the Land and the Improvements are sometimes collectively
referred to as the "Premises"), subject to covenants, conditions, agreements,
easements, encumbrances and restrictions affecting the Land and the Improvements
thereon ("Restrictions").
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ARTICLE III
TERM
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SECTION 3.1. TERM. The Initial Term of this Lease shall commence on the
Commencement Date and shall end on the Termination Date, unless sooner
terminated as hereinafter set forth. If the Commencement Date is a day other
than the first (1st) day of a calendar month, the Initial Term shall expire 120
months after the first (1st) day of the first full calendar month after the
Commencement Date and shall, accordingly, include the period between the
Commencement Date and the end of the calendar month in which the Commencement
Date occurs, with Rent for such partial month to be calculated pro rata on a
daily basis. If the Landlord shall be unable to give possession of the Premises
on the Commencement Date for any reason the Rent reserved and covenanted to be
paid herein shall not commence until the Premises are available for occupancy by
Tenant. No such failure to give possession on the Commencement Date of the Term
hereof shall subject Landlord to any liability for failure to give possession
nor shall same affect the validity of this Lease or the obligation of the Tenant
hereunder, nor shall the same be construed to extend the Term. In the event of
the delayed delivery of possession to Tenant, the Lease shall be amended so that
the Term shall be extended by the period of time possession is delayed.
ARTICLE IV
CONDITION OF DEMISED PREMISES
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SECTION 4.1. CONDITION OF PREMISES. Tenant agrees to accept the Premises in
an absolutely "as-is" condition, and Tenant acknowledges that Landlord, its
agents, attorneys, representatives and employees have not and do not make any
representations or warranties, express or implied, to Tenant regarding the
Premises, including, but not limited to: (i) the zoning of the Premises; (ii)
the condition of any underground, above ground or surface improvements; (iii)
the size, area, use or type of the Premises or the fitness of the Premises for
any intended or particular use; (iv) the nature of the soil on and underlying
the Premises or its suitability for development or any other use thereof; (v)
any financial information pertaining to the operation of the Premises; (vi) the
status of any requirements or obligations imposed, implied or to be undertaken
by the owner or developer of the Premises pursuant to any zoning, subdivision,
development laws or agreements with any governmental entities; (vii) the
presence or absence of any toxic wastes, hazardous materials or structural
defects in, on or under the Premises or any improvements thereon; or (viii) the
presence or absence of any rights of any governmental authority, or of owners of
property in the vicinity of the Premises, to obtain reimbursement, recapture or
special assessments from any owner of the Premises for all or a portion of the
cost of any utilities, roads or other improvements heretofore or hereafter
located on or in the vicinity of the Premises (and if such rights exist, Tenant
agrees to pay all sums due pursuant thereto, it being expressly acknowledged and
agreed that, Tenant hereby waives any claim Tenant may have or may hereafter
acquire against Landlord, its agents, attorneys, representatives or employees
for said costs), any and all such representations and warranties, express or
implied, being hereby expressly waived by Tenant and disclaimed by Landlord.
Tenant waives any claim that may exist for patent and/or latent defects or for
mutual or unilateral mistake of fact. No promise of Landlord to alter, remodel,
decorate, clean or improve the Premises or any portion thereof and no
representation respecting the condition of the Premises or any portion thereof
have been made by Landlord to Tenant.
ARTICLE V
RENT
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SECTION 5.1. BASE RENT. In consideration of the leasing aforesaid, Tenant
agrees to pay Landlord, without offset or deduction, base rent for the Initial
Term ("Base Rent"), payable monthly in advance in the amount of the Monthly Base
Rent set forth in the Base Rent Schedule commencing on the Commencement Date and
continuing on the first (1st) day of each month thereafter for the balance of
the Term of this Lease, and in addition thereto, shall pay such charges as are
herein described as "Additional Rent". The term "Rent" when used in this Lease
shall include all
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Base Rent payable under this Section 5.1. as well as the charges herein
described as Additional Rent. All Rent payable hereunder shall be payable to
Landlord at 000 X. XxXxxxx Xxxxxx, Xxxx. 0000, Xxxxxxx, Xxxxxxxx 00000-0000, or
as Landlord may otherwise from time to time designate in writing.
SECTION 5.2. INTEREST AND LATE CHARGES ON LATE PAYMENTS. Tenant
acknowledges that its late payment of any Rent will cause Landlord to incur
certain costs and expenses not contemplated under this Lease, the exact amount
of which is extremely difficult or impracticable to fix. Such costs and expenses
will include, without limitation, loss of use of money, administrative and
collection costs and processing and accounting expenses. Therefore, if any
installment of monthly Base Rent is not received by Landlord within ten (10)
days of the date when due or any other sum due hereunder is not paid within ten
(10) days of the date when due, Tenant shall immediately pay to Landlord a late
charge equal to three percent (3%) of the unpaid amount. Such late charge is in
addition to any interest due as set forth below. Landlord and Tenant agree that
this late charge represents a reasonable estimate of costs and expenses incurred
by Landlord from, and is fair compensation to Landlord for, its loss suffered,
by such non-payment by Tenant. In addition to the foregoing, Rent not paid
within thirty (30) days of the date when due shall bear interest from the
date when the same is payable under the terms of this Lease until the same shall
be paid at an annual rate of interest equal to the rate of interest announced
from time to time by the First National Bank of Chicago as its Corporate Base
Rate, plus three percent (3%), unless a lesser rate shall then be the maximum
rate permissible by law, in which event said lesser rate shall be charred
("Lease Interest Rate"). The term "Corporate Base Rate" means that rate of
interest announced by The First National Bank of Chicago ("First") from time to
time as its "Corporate Base Rate" of interest, changing automatically and
simultaneously with each change in the Corporate Base Rate made by First from
time to time. Any publication issued or published by First from time to time or
a certificate signed by an officer of First stating its Corporate Base Rate as
of a date shall be conclusive evidence of the Corporate Base Rate on that date.
Acceptance of the late charge shall not constitute a waiver of Tenant's default
with respect to such non-payment by Tenant or prevent Landlord from exercising
any other rights and remedies available to Landlord under this Lease. Failure to
pay the late charge shall constitute a default under this Lease.
ARTICLE VI
TAXES AND IMPOSITIONS
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SECTION 6.1. TAXES. Tenant further agrees to pay, as Additional Rent for
the Premises, all Taxes (as hereinafter defined) which accrue during the Term of
this Lease, and are levied, assessed or become a lien imposed upon the Premises
or any part thereof. Such Additional Rent shall be payable notwithstanding the
fact that the amount of such Taxes may not be ascertainable or due and payable
until after the expiration of the Term of this Lease; provided, however, that
the Taxes levied against the Premises shall be prorated between Landlord and
Tenant for the first year of the Initial Term hereof as of the Commencement
Date, and as of the date of expiration of the Term of this Lease for the last
year of said Term, all on the basis of the most recent ascertainable taxes as
applied to the most recent assessed valuation of the Premises. Tenant shall be
responsible for all increases in Taxes based upon Tenant's occupancy of the
Premises. After the expiration of the Term hereof, including any extensions
thereof, Tenant hereby agrees to reprorate Taxes. In the event of any increase
in Taxes from the Taxes reflected on the proration made upon the expiration of
the Term of this Lease, Tenant agrees to immediately pay to Landlord such sums
as reflected by such reproration Benefit may be taken by Tenant of the
provisions of any statute or ordinance permitting any special assessment to be
paid over a period of years; provided, however, that Tenant shall pay all
installments of special assessments due during the Term hereof. Tenant shall,
in addition to the foregoing, pay any new Tax of a nature not presently in
effect but which may hereafter be levied or assessed upon Landlord or upon the
Premises or imposed as a lien upon the Premises, if such Tax shall be based upon
or arise out of "he ownership, use or operation of the Premises; provided,
however, that for the purpose of computing Tenant's liability for such new type
of Tax, the Premises shall be deemed the only property of Landlord. Tenant's
obligations under this Section shall survive the expiration or termination of
this Lease. As used herein, "Taxes" means real estate taxes, assessments, sewer
rents, rates and charges, permit and license fees, transit taxes, taxes based
upon the receipt of rent, and any other federal, state or local governmental
charge, general, special, ordinary or extraordinary, which may now or hereafter
be assessed, accrue or become a lien against the Premises or any
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portion thereof in any year during the Term of this Lease, and also shall
include any personal property taxes (attributable to the year in which paid)
imposed upon the furniture, fixtures, machinery, equipment, apparatus, systems
and appurtenances used in connection with the operation of the Premises and any
fine, penalty, interest or cost that may be added to the foregoing as a result
of Tenant's nonpayment of Landlord's invoice therefor.
Nothing contained herein shall be construed to require Tenant to pay any
franchise, inheritance, estate, succession or transfer tax of Landlord or any
income or excess profits tax assessed upon or in respect of all income of
Landlord or chargeable to or required to be paid by Landlord unless such tax
shall be specifically levied against the rental income of Landlord derived
hereunder (as opposed to a general income tax), which tax shall be paid by
Tenant as part of Taxes hereunder provided said rental income shall be
considered as the sole income of Landlord.
SECTION 6.2. UTILITIES. Tenant shall pay, directly to the appropriate
supplier, all costs of natural gas, electricity, heat, light, power, sewer
service, telephone, water, refuse disposal and other utilities and services
supplied to the Premises. Landlord shall, at Landlord's sole cost and expense,
separately meter the Premises. Landlord shall not in any way be liable or
responsible to Tenant for any cost or damage or expense which Tenant may sustain
or incur if either the quality or character of such service is changed or is no
longer available or suitable for Tenant's requirements.
SECTION 6.3. EXPENSES. Tenant further agrees to pay as Additional Rent for
the Premises, all of the following, charges incurred by Landlord during the Term
of this Lease (collectively, the "Expenses"): (i) costs of sprinkler inspections
conducted by Landlord from time to time in the Premises as required by all
governmental authorities having jurisdiction over the Premises; provided,
however, that Tenant may provide Landlord with copies of annual sprinkler
inspection reports for inspections conducted at Tenant's expense, by Factory
Mutual Engineering or another engineering company, reasonably acceptable to
Landlord that are required as part of Tenant's insurance program for the
Premises. If Tenant fails to provide said reports to Landlord as provided
herein, Landlord may cause said inspections to be performed and the cost thereof
shall be paid by Tenant to Landlord within ten (10) days after Landlord submits
its invoice to Tenant for same; (ii) costs of inspections conducted by Landlord
from time to time to verify Tenant's compliance with Article XXXII of this
Lease; and (iii) costs of roof inspections conducted by Landlord from time to
time, no more than tri-annually.
SECTION 6.4. DEPOSITS. As security for the obligations contained in
Sections 6.1., 6.3. and 10.3. hereof, Tenant shall deposit monthly with
Landlord, or such other entity as Landlord may designate, on the first (1st) day
of each and every month of the Term, a sum equal to one twelfth (1/12) of
Landlord's estimate of the current amount of Taxes levied with respect to the
Premises, Insurance Premiums (as hereinafter defined) and Expenses. All monthly
deposits need not be kept separate and apart by Landlord and shall be held by
Landlord in such account or accounts as may be authorized by the then current
state or federal banking laws, rules or regulations. The monthly deposits shall
be used as a fund to be applied, to the extent thereof, to the payment of Taxes,
Expenses and Insurance Premiums, as the same become due and payable. The
existence of said fund shall not limit or alter Tenant's obligation to pay the
Taxes, Expenses and Insurance Premiums for which the fund was created. Tenant
shall be entitled to interest on said fund at the rate of three percent (3%) per
annum. Tenant shall pay Landlord as its monthly deposit for the period
commencing on the Commencement Date and terminating on the December 31st
immediately thereafter the Initial Deposit. On or prior to each December 31st
occurring within the Term, Landlord shall advise Tenant as to Landlord's
estimate of the monthly deposits that will be required for the next Lease Year
(as hereinafter defined).
SECTION 6.5. ADJUSTMENT STATEMENT. As soon as reasonably feasible after the
expiration of each calendar year contained within the Term ("Lease Year"),
Landlord will furnish Tenant a statement ("Adjustment Statement") showing the
following:
(i) Actual Taxes, Insurance Premiums and Expenses for the
Lease Year last ended and the amount of Taxes, Insurance Premiums and
Expenses payable by Tenant for such Lease Year;
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(ii) The amount of Additional Rent due Landlord for the
Lease Year last ended, less credits for monthly deposits paid, if any; and
(iii) Accrued interest on said monthly deposit amounts paid,
if any; and
(iv) The monthly deposits due in the current Lease Year.
SECTION 6.6. PAYMENTS. Within thirty (30) days after Tenant's receipt of
each Adjustment Statement, Tenant shall pay to Landlord:
(i) The amount of Additional Rent shown on said Adjustment
Statement to be due to Landlord for the Lease Year last ended; plus
(ii) The amount, which when added to the monthly deposits
theretofore paid in the current Lease Year would provide that Landlord has
then received such portion of the monthly deposits as would have
theretofore been paid to Landlord had Tenant paid one twelfth (1/12) of
the monthly deposits, for the current Lease Year, to Landlord monthly on
the first day of each month of such Lease Year.
During the last Lease Year, Landlord may include in the monthly deposits its
estimate of the Additional Rent which may not be finally determined until after
the expiration of the Term. Tenant's obligation to pay such Additional Rent
shall survive the Term.
SECTION 6.7. PAYMENT ADJUSTMENTS. Tenant's payment of the monthly deposits
for each Lease Year plus any accrued interest thereon, shall be credited against
the Additional Rent for such Lease Year. If the monthly deposits paid by Tenant,
plus any accrued interest thereon, for any Lease Year exceed the Additional Rent
due for such Lease Year, then Landlord shall give a credit to Tenant in an
amount equal to such excess against the Additional Rent due for the next
succeeding Lease Year, except that if any such excess relates to the last Lease
Year of the Term, then, provided that no default of Tenant exists hereunder,
Landlord shall refund such excess to Tenant.
SECTION 6.8. RIGHT TO PAY. Landlord shall, at its option, have the right,
without notice to Tenant, at all times during the Term to pay any such Taxes not
timely paid by Tenant, and the amounts so paid, including reasonable expenses,
shall be so much Additional Rent due at the next rent day after any such
payments, with interest at the Lease Interest Rate from the date of payment
thereof.
SECTION 6.9. LANDLORD'S CONTEST OF TAXES. To the extent Landlord desires,
in Landlord's reasonable business judgment, to contest the imposition of any
Taxes against the Land and Improvements, Landlord shall proceed with such
protest in accordance with applicable law. Tenant agrees Taxes shall include all
of Landlord's reasonable costs and expenses, including legal fees and court
costs, in pursuing any such contest whether or not Landlord is successful in
such contest. There shall be deducted from Taxes the amount of any Taxes
refunded in any Lease Year, provided said refund relates to an assessment year
included within the Term of the Lease.
ARTICLE VII
USE
---
SECTION 7.1. USE. The Premises shall be used for the Use only, and for no
other purpose.
SECTION 7.2. PROHIBITED USES. Tenant shall not permit the Premises, or any
portion thereof, to be used in such manner which impairs Landlord's right, title
or interest in the Premises or any portion thereof, or in such manner which
gives rise to a claim or claims of adverse possession or of a dedication of the
Premises, or any portion thereof, for public use. Tenant shall not use or occupy
the Premises or permit the Premises to be used or occupied contrary to
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any statute, rule, order, ordinance, requirement, regulation or restrictive
covenant applicable thereto or in any manner which would violate any certificate
of occupancy affecting the same or which would render the insurance thereon void
or the insurance risk more hazardous, or which would cause structural injury to
the Improvements or cause the value or usefulness of the Premises or any part
thereof to diminish or which would constitute a public or private nuisance or
waste, and Tenant agrees that it will, promptly upon discovery of any such use,
immediately notify Landlord and take all necessary steps to compel the
discontinuance of such use.
ARTICLE VIII
MAINTENANCE, REPAIR AND REPLACEMENTS OF PREMISES
------------------------------------------------
SECTION 8.1.
A. TENANT'S OBLIGATIONS. Except as set forth in Section 8.1B below,
Tenant agrees, at Tenant's sole cost and expense, to take good care of the
Premises, including the Improvements, and keep same and all parts thereof,
including without limitation, the entire exterior and interior, the roof,
foundations, parking areas, sidewalks, railroad tracks, water, sewer, gas
and electricity connections, pipes, mains and all other fixtures,
machinery, apparatus, equipment, overhead cranes, and appurtenances thereto
together with any and all alterations and additions thereto, in good order,
condition and repair, suffering no waste or injury. Except as set forth in
Section 8.1B below, Tenant shall, at its sole cost and expense, promptly
make all necessary repairs and replacements, structural or otherwise,
ordinary as well as extraordinary, foreseen as well as unforeseen, in and
to any Improvements or equipment now or hereafter located upon the Land,
including, without limitation, the entire interior and exterior of the
Improvements, the roof, the foundations, sidewalks, parking areas, railroad
tracks, water, sewer, gas and electricity connections, pipes, mains and all
other fixtures, machinery, apparatus, equipment and appurtenances now or
hereafter belonging to, connected with or used in conjunction with the
Premises. All such repairs and replacements shall be of first-class quality
and sufficient for the proper maintenance and operation of the Premises.
Tenant shall keep and maintain the Premises, including the Improvements and
all sidewalks, vault space, parking areas and areas adjacent thereto, safe,
secure and clean, specifically including, but not by way of limitation,
snow and ice clearance, landscaping and removal of waste and refuse matter.
Tenant shall not permit anything to be done upon the Premises (and shall
perform all maintenance and repairs thereto so as not) to invalidate, in
whole or in part, or prevent the procurement of any insurance policies
which may, at any time, be required under the provisions of this Lease.
Tenant shall not obstruct or permit the obstruction of any parking area,
adjoining street or sidewalk.
B. LANDLORD'S OBLIGATIONS. Subject to the provisions of Articles X and
XIV hereof, Landlord shall make, or cause to be made, all necessary
maintenance, repairs and replacements to the "structural components" (as
hereinafter defined) of the Premises. For purposes of this Lease, the
phrase "STRUCTURAL COMPONENTS" shall mean the roof, exterior face of the
exterior walls (excluding windows, window frames, doors and door frames)
and foundation of the Premises; provided, however, during the first two
years of the Term, Landlord shall maintain and repair the roof of the
building portion of the Premises and Tenant shall reimburse Landlord for
the cost of such maintenance and repairs (up to $5,000.00 per year) within
fifteen (15) days after receipt of an invoice for such maintenance and
repair costs from Landlord. The cost of repairs after the first two (2)
years of the Term and replacements to such structural components shall be
the sole responsibility of Landlord except to the extent such costs arise
as a result of any act or omission of Tenant or any person, firm or entity
claiming by, through or under any of them, in which event, the cost
therefor shall be paid by Tenant, as Additional Rent, within five (5) days
after Landlord bills Tenant therefor from time to time.
SECTION 8.2. GOVERNMENTAL REQUIREMENTS. Tenant, at its own cost and
expense, shall promptly comply with any and all governmental requirement to or
affecting the Premises or any part thereof, irrespective of the nature of the
work required to be done, extraordinary as well as ordinary, whether or not the
same involve or require any
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structural changes or additions in or to the Improvements and irrespective of
whether or not such changes or additions be required on account of any
particular use to which the Premises or any part thereof are being put.
SECTION 8.3. TENANT'S RESPONSIBILITIES. Landlord shall not be required to
furnish any services or facilities whatsoever to the Premises. Tenant hereby
assumes full and sole responsibility for condition, operation, repair,
alteration, improvement, replacement, maintenance and management of the
Premises. Landlord shall not be responsible for any loss or damage to the person
or property of Tenant, any guests or invitees, any persons using or working on
the Premises, or any persons claiming by, through or under, or any agents,
employees, heirs, legal representatives, successors or assigns of, any of the
foregoing.
SECTION 8.4. MAINTENANCE CONTRACT. At Landlord's option, Tenant shall enter
into a maintenance contract, in form and substance and with a firm reasonably
satisfactory to Landlord, for the maintenance of the HVAC and sprinkler systems,
equipment and apparatus or from time to time, as requested by Landlord, and
provide Landlord as reasonably requested from time to time with evidence that it
has maintained said items on a regular basis with its own forces.
ARTICLE IX
TENANT'S INSURANCE
------------------
SECTION 9.1. COVERAGE REQUIRED. Tenant shall procure and maintain, or cause
to be maintained, at all times during the term of this Lease, at Tenant's sole
cost and expense, and until each and every obligation of Tenant contained in the
Lease has been fully performed, the types of insurance specified below, with
insurance companies authorized to do business in the State of Illinois covering
all operations under this Lease, whether performed by Tenant or by Contractors.
For purposes of this Article IX, "Contractors" shall mean Tenant and contractors
and subcontractors and materialmen or any tier providing services, material,
labor, operation or maintenance on, about or adjacent to the Premises, whether
or not in privity with Tenant.
A. IN GENERAL. Upon execution of the Lease, Tenant shall procure
and maintain the following kinds and amounts of insurance:
(i) WORKER'S COMPENSATION AND OCCUPATIONAL DISEASE
INSURANCE. Worker's Compensation and Occupational Disease
Insurance, in statutory amounts, covering all employees who
provide a service under this Lease or to the Project. Employer's
liability coverage with limits of not less than $ 100,000 each
accident or illness shall be included.
(ii) COMMERCIAL LIABILITY INSURANCE(PRIMARY AND
UMBRELLA). Commercial Liability Insurance or equivalent with
limits of not less than $5,000,000 per occurrence, combined
single limit, for bodily injury, personal injury, and property
damage liability. Products/completed operations, explosion,
collapse, independent contractors, broad form property damage and
contractual liability (with no limitation) coverages are to be
included. Landlord is to be named as additional insureds, on a
primary, non-contributory basis for any liability, arising
directly or indirectly from this Lease.
(iii) AUTOMOBILE LIABILITY INSURANCE. When any motor
vehicles are used in connection with this Lease, Tenant shall
provide Automobile Liability Insurance with limits of not less
than $2,000,000 per occurrence combined single limit, for bodily
and property damage. Landlord is to be named as additional
insureds on a primary non-contributory basis.
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(iv) CONTENTS INSURANCE. Insurance against fire,
sprinkler leakage, vandalism, and the extended coverage perils
for the full insurable value of all contents of Tenant within the
Premises, and of all office furniture, trade fixtures, office
equipment, merchandise and all other items of Tenant's property
on the Premises and business interruption insurance.
(v) REAL PROPERTY INSURANCE. Real property insurance
(hereinafter referred to as "Real Property Insurance") shall insure
the Premises and shall include in its coverage all perils
customarily designated as "All Risk" or "Special" including, but
not limited to, fire, extended coverage, vandalism, malicious
mischief, sewer back-up, flood, earthquake and building ordinance
coverage (full limits with sub-limits for increased cost of
construction and demolition). The policy or policies for Real
Property Insurance shall be written for not less than one hundred
percent (100%) of the full current replacement cost of the Premises
and such policy or policies shall include a replacement cost
endorsement and an agreed amount endorsement. Tenant shall bear the
cost of any appraisal, if necessary, required to obtain the
replacement cost endorsement and the agreed amount endorsement.
Landlord shall cooperate in obtaining the replacement cost
endorsement and the agreed amount endorsement by furnishing
information regarding the replacement cost of the Premises. The
policy and policies of Real Property Insurance shall be subject to
a deductible amount not to exceed One Hundred Thousand Dollars and
No Cents ($100,000.00) for covered losses. Tenant shall bear the
cost of such a deductible in the event that a loss covered by the
Real Property Insurance occurs. The Real Property Insurance shall
provide that payments made in connection with losses covered by the
policy shall be made to Landlord. In the event that the Real
Property Insurance provides a "blanket" limit of liability
applicable to real property other than the Premises or to personal
property of Tenant, Tenant shall obtain a loss payable clause
applicable to the Real Property Insurance in favor of Landlord
specifying a limit of liability equal to not less than one hundred
percent (100%) of the full current replacement value of the
Premises.
(vi) BOILER AND MACHINERY INSURANCE. Boiler and
machinery insurance (hereinafter referred to as "Boiler and
Machinery Insurance") shall include in its coverage all steam
boilers, pressure tanks, air conditioning equipment, pipes,
turbines, engines, other similar pressure vessels and other such
similar apparatus on the Premises on the Commencement Date of this
Lease and such similar apparatus, if any, that Tenant may install
on the Premises during the term of this Lease. The policy or
policies of Boiler and Machinery Insurance shall be written for an
amount of not less than FIVE HUNDRED THOUSAND AND NO/100
($500,000.00) DOLLARS per occurrence on a repair and replacement
cost basis.
(vii) RENTAL VALUE. Loss of rents insurance
(hereinafter referred to as "Rental Value Insurance") for loss of
gross Rent for a period of twelve (12) months.
(viii) OTHER INSURANCE. Such other insurance required by
Landlord under the terms customarily carried by Landlord from time
to time for other buildings owned by Landlord, excluding,
environmental liability insurance provided, however, that Landlord
may purchase environmental liability insurance from Landlord's
insurance carrier and, if so purchased, Tenant shall reimburse
Landlord for the cost of the environmental liability insurance
annually, within fifteen (15) days after written demand from
Landlord. Prior to purchasing said environmental liability
insurance, Landlord shall give Tenant sixty (60) days prior notice
of its intention to purchase said environmental liability insurance
and shall allow Tenant, the opportunity at Tenant's sole cost and
expense, to provide said environmental liability insurance with
coverage at least equal to that to be provided to Landlord by
Landlord's insurance carrier, and from companies that are
acceptable to Landlord in Landlord's reasonable discretion.
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B. CONSTRUCTION. During any construction that Tenant may
perform may cause to be performed during the term of this Lease (including
improvements, betterments or repairs), Tenant shall procure and maintain,
or cause to be maintained by its Contractors, the following kinds and
amounts of insurance:
(i) Those coverages as required under
Section 9.1(A)(i)(ii)(iii).
(ii) ALL RISK BUILDERS RISK INSURANCE. All Risk
Blanket Builder's Risk Insurance to cover the materials,
supplies, equipment, machinery and fixtures that are or will be
part of the Project. Coverage extensions shall include the
following: right to partial occupancy, material stored off-site
and in-transit, boiler and machinery, earthquake, flood
(including surface water backup), collapse, water damage, debris
removal, faulty workmanship or materials, testing
mechanical-electrical breakdown and failure, deletion of freezing
and temperature exclusions, business interruption, extra expense,
loss of revenue, loss of rents and loss of use of property, as
applicable, Landlord shall be named as loss payee.
(iii) PROFESSIONAL LIABILITY. When any architects,
engineers, or consulting firms perform work in connection with
this. Lease, Professional Liability Insurance shall be maintained
with limits of $ 1,000,000. The policy shall have an extended
reporting period of two (2) years. When policies are renewed or
replaced, the policy retroactive date must coincide with, or
precede, start of work.
SECTION 9.2. POLICIES. All insurance policies shall be written with
insurance companies and shall be in form satisfactory to Landlord. All insurance
policies shall name Landlord as an additional insured and loss payee as their
respective interests may appear and shall provide that they may not be
terminated or modified without sixty (60) days' advance written notice to
Landlord. All policies shall also contain an endorsement that Landlord, although
named as additional insured, shall nevertheless be entitled to recover for
damages caused by the negligence of Tenant. The minimum limits of insurance
specified in this Section shall in no way limit or diminish Tenant's liability
under this Lease. Tenant shall furnish to Landlord, not less than fifteen (15)
days prior to the date such insurance is first required to be carried by Tenant,
and thereafter at least fifteen (15) days prior to the expiration of each such
policy, certificates of insurance, and such other evidence of coverages required
herein as Landlord may reasonably request, and evidence of payment of all
premiums and other expenses owed in connection therewith. Upon Tenant's default
in obtaining or delivering the certificates OF insurance FOR any such insurance
or Tenant's failure to pay the charges therefor, Landlord may, at its option, on
or after the tenth (10th) day after written notice thereof is given to Tenant,
procure or pay the charges for any such policy or policies and the total cost
and expense (including attorneys' fees) thereof shall be immediately paid by
Tenant to Landlord as Additional Rent upon receipt of a xxxx therefor. Within
thirty (30) days after demand by Landlord that the minimum amount of any
coverage be so increased, Tenant shall furnish Landlord with evidence of
Tenant's compliance with such demand.
SECTION 9.3. SUBROGATION. Landlord and Tenant agree to have all fire and
extended coverage and material damage insurance which may be carried by either
of them endorsed with a clause providing that any release from liability of or
waiver of claim for recovery from the other party or any of the parties named in
Section 9.2 above entered into in writing by the insured thereunder prior to any
loss or damage shall not affect the validity of said policy or the right of the
insured to recover thereunder, and providing further that the insurer waives all
rights of subrogation which such insurer might have against the other party or
any of the parties named in Section 9.2 above. Without limiting any release or
waiver of liability or recovery contained in any other Section of this Lease but
rather in confirmation and furtherance thereof, Landlord and any beneficiaries
of Landlord waive all claims for recovery from Tenant, and Tenant waives all
claims for recovery from Landlord, any beneficiaries of Landlord and the
managing agent for the Project and their respective agents, partners and
employees, for any loss or damage to any of its property insured under valid and
collectible insurance policies to the extent of any recovery collectible under
such insurance policies. Notwithstanding the foregoing or anything, contained in
this Lease to the contrary, any release or any waiver of claims shall not be
operative, nor shall the foregoing endorsements be required, in any case where
the effect of such release or waiver is
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to invalidate insurance coverage or invalidate the right of the insured to
recover thereunder or increase the cost thereof (provided that in the case of
increased cost the other party shall have the right, within ten (10) days
following written notice, to pay such increased cost, thereby keeping such
release or waiver in full force and effect).
SECTION 9.4. SELF-INSURANCE. In order to permit Tenant to self-insure,
Landlord waives the insurance requirements imposed upon Tenant under Section 9.1
of this Lease so long as (i) Tenant maintains availability on its bank revolving
line of credit of at least Ten Million and No/100 Dollars ($10,000,000.00)
according to its most recent certified financial statement. Tenant is a publicly
held company and shall supply Landlord, on a quarterly basis throughout the term
of this Lease, with a copy of its published financial statements. If Tenant
elects to self-insure, Tenant shall be responsible for any losses or liabilities
that would have been assumed by the insurance companies that would have issued
the insurance required of Tenant hereunder. Tenant will notify Landlord in
advance of any period for which it intends to self-insure and shall provide
Landlord with satisfactory evidence that it complies with these requirements in
order to give Landlord an opportunity to confirm the satisfaction of the
conditions set forth above.
SECTION 9.5. MISCELLANEOUS INSURANCE PROVISIONS. Landlord and Tenant
further agree as follows:
A. Tenant expressly understands and agrees that any insurance
coverages and limits furnished by the Tenant and Contractors shall in no
way limit the Tenant's and Contractor's liabilities and responsibilities
specified under the Lease, or contracts executed relating to the Project,
or by law.
B. The failure of Landlord to obtain such evidence from Tenant
or Contractors before permitting Tenant or Contractors to commence work
shall not be deemed to be a waiver by Landlord, and Tenant or contractors
shall remain under continuing obligation to maintain the insurance
coverage.
C. Any and all deductibles on referenced insurance coverages
shall be borne by Tenant and Contractors.
D. Tenant expressly understands and agrees that any insurance
maintained by Landlord shall apply in excess of and not contribute with
insurance provided by the Tenant or Contractors under the Lease.
E. If Tenant or any Contractors desire additional coverage,
higher limits of liability, or other modifications for their own
protection, Tenant and such Contractors shall be responsible for the
acquisition and cost of such additional protection.
F. Tenant agrees, and shall cause each Contractor in connection
with the Project to agree, that all insurers shall waive their rights of
subrogation against Landlord.
G. Tenant and Contractors shall not violate or permit to be
violated any of the conditions or provisions of any of the insurance
policies, and Tenant and Contractors shall so perform and satisfy or cause
to be performed and satisfied the requirements of the companies writing
such policies so that at all times companies of good standing, satisfactory
to Landlord shall be willing to write and continue such insurance.
H. Landlord shall not be limited in the proof of any damages
which Landlord may claim against Tenant and contractors arising out of or
by reason of Tenant's and Contractor's failure to provide and keep in force
insurance, as aforesaid, to the amount of the insurance premium or premiums
not paid or incurred by Tenant and Contractors and which would have been
payable under such insurance, but Landlord shall also be entitled to
recover as damages for such breach the uninsured amount of any loss, to the
extent of any deficiency in the insurance required by the provisions of
this Lease, and damages, costs and expenses of suit suffered or incurred by
reason of damage to, or destruction of, the Project or the Premises
occurring during any period when Tenant or Contractors shall have failed or
neglected to provide insurance as aforesaid.
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I. The insurance required by this Lease, at the option of
Tenant or Contractors, may be effected by blanket or umbrella policies
issued to Tenant or Contractors covering the Premises and other properties
owned or leased by Tenant or Contractors, provided that the policies
otherwise comply with the provisions of this Lease and allocate to the
Premises the specified coverage, without possibility of reduction or
coinsurance by reason of, or damage to, any other premises covered therein.
J. All insurance companies shall have a Best rating of not less
than A/VII, or an equivalent rating in the event Best ceases to exist or
provide a rating.
K. Tenant and Contractors shall provide and keep in force such
other insurance in such amounts as may from time to time be reasonably
required by Landlord or a holder of a Mortgage (defined in Section 23.1
hereof) against such other insurable hazards as at the time are commonly
insured against in the case of prudent owners of properties similar to the
Project and the Premises, and in that connection Landlord may require
changes in the forms, types and amounts of insurance required pursuant to
this Section or add to, modify or delete other requirements; and in any
event, if under applicable law, rule, regulation or ordinance of any
governmental authority, state or federal, having jurisdiction in the
Premises, liability may be imposed upon Landlord on account of the use or
operation of the Premises or the Project or other improvements, insurance
within limits reasonably satisfactory to Landlord shall be maintained by
Tenant and Contractors against any such liability.
L. The required insurance to be carried shall not be limited by
any limitations expressed in the indemnification language herein or any
limitation placed on the indemnity therein given as a matter of law.
ARTICLE X
PROPERTY INSURANCE
------------------
[THIS ARTICLE INTENTIONALLY LEFT BLANK.]
ARTICLE XI
DAMAGE OR DESTRUCTION
---------------------
SECTION 11.1. DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY. In the event the
Premises are damaged by fire, explosion or other casualty, Landlord shall
diligently proceed with respect to the proposed restoration promptly after
receipt of the insurance proceeds. Landlord shall commence the repair,
restoration or rebuilding thereof and shall complete such restoration, repair or
rebuilding as soon as reasonably possible after the receipt of such proceeds,
subject to extension due to delay because of changes, deletions, or additions in
construction requested by Tenant, acts of Tenant, strikes, lockouts, casualties,
acts of God, war, fuel or energy shortages, material or labor shortages,
governmental regulation or control, severe weather conditions or other causes
beyond the control of Landlord ("Extension Events"). In the event of any such
casualty all insurance proceeds shall be payable to Landlord. In no event shall
Landlord be required to repair or replace any alterations or improvements made
by Tenant which are not related to the Improvements, Tenant's Equipment or any
other fixtures, furnishing and personal property of Tenant. Tenant agrees that
Tenant shall pay to Landlord within thirty (30) days after the date the Premises
are damaged by fire, explosion or other casualty the amount necessary to pay the
cost of restoration, repair and rebuilding in excess of the insurance proceeds.
If the amount of the insurance proceeds are unknown at such time, Tenant shall
immediately pay Landlord the amount of the deductible with the balance, less all
amounts paid by the insurance carrier to Landlord, to be paid by Tenant to
Landlord within ten (10) business days after the amount of the insurance
proceeds is determined. Landlord's obligation to repair, restore or rebuild the
Premises shall be limited to restoring the Premises to substantially the
condition in which the same existed prior to the casualty. Rent and all other
charges payable by Tenant hereunder shall
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xxxxx during the period of such repair, restoration or rebuilding to the extent
that the Improvements are not tenantable because of any damage or destruction,
but only to the extent of the Rental Value Insurance proceeds actually received
by Landlord. In the event the casualty causes fifty percent (50%) or more of the
Premises to be untenantable during the last twenty-four (24) months of the Term,
Landlord may terminate this Lease as of the date of such casualty by providing
notice to Tenant within thirty (30) days after occurrence of the fire or other
casualty causing the damage, in which event, all insurance proceeds shall be
paid to the Landlord and in addition Tenant shall pay to Landlord the amount of
any deductible carried by Tenant under its insurance policies.
ARTICLE XII
LIENS
-----
SECTION 12.1. LIEN CLAIMS. Tenant shall not do any act which shall in any
way encumber the title of Landlord in and to the Premises, nor shall any
interest or estate of Landlord in the Premises be in any way subject to any
claim by way of lien or encumbrance, whether by operation of law or by virtue of
any express or implied contract by Tenant, and any claim to or lien upon the
Premises arising from any act or omission of Tenant shall accrue only against
the leasehold estate of Tenant and shall in all respects be subject and
subordinate to the paramount title and rights of Landlord in and to the
Premises. Tenant will not permit the Premises to become subject to any
mechanics', laborers' or materialmen's lien on account of labor or material
furnished to Tenant or claimed to have been furnished to Tenant in connection
with work of any character performed or claimed to have been performed on the
Premises by or at the direction of sufferance of Tenant; provided, however that
Tenant shall have the right to contest in good faith and with reasonable
diligence, the validity of any such lien or claimed lien if Tenant shall first
give to Landlord an amount equal to one hundred twenty percent (120%) of the
amount of the lien or claimed lien which, together with interest earned thereon,
shall be held by Landlord as security to insure payment thereof and to prevent
any sale, foreclosure or forfeiture of the Premises by reason of non-payment
thereof. The amount so deposited with Landlord shall be held by Landlord in an
account established at a federally insured banking institution until
satisfactory removal of said lien or claim of lien. On any final determination
of the lien or claim for lien, Tenant will immediately pay any judgment
rendered, with all proper costs and charges, and will, at its own expense, have
the lien released and any judgment satisfied. Should Tenant fail to diligently
contest and pursue such lien contest, Landlord may, at its option, use the sums
so deposited to discharge any such lien and upon the satisfaction of such lien
or encumbrance Landlord shall pay all such sums remaining on deposit to Tenant.
SECTION 12.2. LANDLORD'S RIGHT TO CURE. If Tenant shall fail to contest the
validity of any lien or claimed lien or fail to give security to Landlord to
insure payment thereof, or shall fail to prosecute such contest with diligence,
or shall fail to have the same released and satisfy any judgment rendered
thereon, then Landlord may, at its election (but shall not be so required)
remove or discharge such lien or claim for lien (with the right, in its
discretion, to settle or compromise the same), and any amounts advanced by
Landlord, including reasonable attorneys' fees, for such purposes shall be so
much additional rent due from Tenant to Landlord at the next rent date after any
such payment, with interest thereon at the Lease Interest Rate from the date so
advanced.
ARTICLE XIII
ALTERATIONS AND IMPROVEMENTS
----------------------------
SECTION 13.1. ALTERATIONS. Tenant shall not at any time during the Term of
this Lease make any openings in the roof or exterior walls of the Building or
make any Tenant alteration, addition or improvement to the Premises or any
portion thereof (collectively, "Alterations") without in each instance, the
prior written consent of Landlord; provided, however, upon notice to, but
without the consent of Landlord, Tenant shall have the rig it to make any
Alterations where same are non-structural, do not require openings on the roof
or exterior walls of the Improvements, do not affect any Building system, and do
not exceed TWENTY FIVE THOUSAND AND NO/100 DOLLARS
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($25,000.00) in the aggregate in any twelve (12)-month period. No Alteration to
the Premises for which Landlord's consent is required shall be commenced by
Tenant until Tenant has, subject to Tenant's right to self-insure in accordance
with Section 9.4 hereof, furnished Landlord with a satisfactory certificate or
certificates from an insurance company acceptable to Landlord, evidencing
workmen's compensation coverage, and insurance coverage in amounts satisfactory
to Landlord and protecting Landlord against public liability and property damage
to any person or property, on or off the Premises, arising out of and during the
making of such alterations, additions or improvements. Any Alteration by Tenant
hereunder shall be done in a good and workmanlike manner in compliance with any
applicable governmental law, statute, ordinance or regulation. Upon completion
of any Alteration by Tenant hereunder, Tenant shall furnish Landlord with a copy
of the "as built" plans covering such construction. Tenant, at its sole cost and
expense, will make all Alterations on the Premises which may be necessary by the
act or neglect of any other person or corporation (public or private), except
Landlord, its agents, employees or contractors. Before commencing any
Alterations, involving an estimated cost of more than TWENTY FIVE THOUSAND AND
NO/100 DOLLARS ($25,000.00): (a) plans and specifications therefor, prepared by
a licensed architect, shall be submitted to and approved by Landlord (such
approval shall not be unreasonably withheld or delayed); (b) Tenant shall
furnish to Landlord an estimate of the cost of the proposed work, certified by
the architect who prepared such plans and specifications; (c) all contracts for
any proposed work shall be submitted to and approved by Landlord; and (d) Tenant
shall either furnish to Landlord a bond in form and substance satisfactory to
Landlord, or such other security reasonably satisfactory to Landlord to insure
payment for the completion of all work free and clear of liens. Tenant further
agrees that all contractors engaging in any construction activity by and for the
benefit of Tenant for which Landlord's consent shall be required shall obtain
comprehensive/commercial general liability, worker's compensation and such other
liability insurance in such amounts as may be reasonably required by Landlord
naming the Landlord as an additional insured and providing liability coverage
during all phases of construction including, without limitation: (a)
contractor's and owners protection; (b) blanket contractual liability coverage;
(c) broad form property damage insurance; (d) statutory worker's compensation
coverage and employer's liability coverage; (e) coverage under the structural
work act of the State of Illinois; and (f) environmental liability, if
applicable. Before commencing any Alteration, Tenant shall provide Landlord with
a written certification that the Alteration does not have any environmental
impact on the Premises. Prior to the commencement of any construction activity
for which Landlord's consent shall be required, certificates of such insurance
coverages (and original policies with respect to environmental liability
insurance) shall be provided to Landlord.
SECTION 13.2. OWNERSHIP OF ALTERATIONS. All Alterations (except Tenant's
Equipment, as defined in Section 21.2 hereof), put in at the expense of Tenant
shall become the property of Landlord and shall, unless the Landlord request
their removal, remain upon and be surrendered with the Premises as a part
thereof at the termination of this Lease, without compensation or allowance to
Tenant. Landlord may, at its sole option, request that Tenant, at Tenant's sole
cost, remove any such Alterations and if Tenant shall fail to do so, Landlord
may remove the same and Tenant shall pay the cost of such removal to Landlord
upon demand. Notwithstanding the foregoing, upon Tenant's request prior to such
time as Tenant intends to make any Alteration, Landlord shall indicate to Tenant
whether or not such Alterations must be removed upon surrender of the Premises.
SECTION 13.3. SIGNS. Tenant shall not place any signs on any part of the
Premises without the prior written consent of Landlord. Notwithstanding any of
the immediately foregoing provisions of this Section 13.3, upon notice and with
the consent of Landlord, which consent shall not be unreasonably withheld,
Tenant may place a monument sign adjacent to the Premises, provided that: (i)
the installation and dimensions of said sign is in strict accordance with
applicable law, ordinances and restrictions; (ii) Tenant continually maintains
said sign in a first-class manner; and (iii) Tenant, at Tenant's sole cost and
expense, removes said sign at the expiration of the Term and restores the area
in which said sign is placed to its condition prior to the installation of said
sign.
Section 13.4. TENANT INDEMNITY. Tenant hereby agrees to indemnify, defend
and hold the Landlord, its beneficiaries, shareholders, partners or members and
their respective agents and employees harmless from any and all liabilities of
every kind and description which may arise out of or be connected in any way
with said Alterations. Any mechanic's lien filed against the Premises for work
claimed to have been furnished to Tenant shall be discharged of
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record by Tenant within ten (10) days thereafter, at Tenant's expense. Upon
completing any Alterations, Tenant shall furnish Landlord with contractors'
affidavits and full and final waivers of lien and receipted bills covering all
labor and materials expended and used. All Alterations shall comply with all
insurance requirements and with all ordinances and regulations of any pertinent
governmental authority. All alterations and additions shall be constructed in a
workmanlike manner and only good grades of materials shall be used.
SECTION 13.5. ENVIRONMENTAL IMPACT. Notwithstanding, any other term,
covenant or condition contained in this Lease, in the event that any Alteration
has any environmental impact on the Premises, Landlord may deny the Tenant the
right to proceed in Landlord's sole and absolute discretion.
ARTICLE XIV
CONDEMNATION
------------
SECTION 14.1. TAKING: LEASE TO TERMINATE. In the event the whole of the
Premises shall be taken as a result of the exercise of the power of eminent
domain or condemned for a public or quasi-public use or purpose by any competent
authority or sold to the condemning authority under threat of condemnation, or
in the event a portion of the Premises shall be taken or sold as a result of
such event, and as a result thereof the balance of the Premises cannot be used
for the same purpose as before such taking, sale or condemnation, then and in
either of such events, the Term of this Lease shall terminate as of the date of
vesting of title pursuant to such proceeding or sale. The total award,
compensation or damages received from such proceeding or sale (collectively, the
"Award"), shall be paid to and be the property of Landlord, whether the Award
shall be made as compensation for diminution of the value of the leasehold or
the fee of the Premises or otherwise, and Tenant hereby assigns to Landlord, all
of Tenant's right, title and interest in and to the Award. Tenant shall execute,
immediately upon demand of Landlord, such documents as may be necessary to
facilitate collection by Landlord of any such Award.
SECTION 14.2. TAKING: LEASE TO CONTINUE. In the event only a part of the
Premises shall be taken as a result of the exercise of the power of eminent
domain or condemned for a public or quasi-public use or purpose by any competent
authority or sold to the condemning authority under threat of condemnation, and
as a result thereof the balance of the Premises can be used for the same purpose
as before such taking, sale or condemnation, this Lease shall not terminate and
Landlord, at its sole cost and expense, shall, to the extent practical, promptly
repair and restore the Premises, subject to any Extension Events. Any Award paid
as a consequence of such taking, sale, or condemnation, shall be paid to
Landlord. Any sums not so disbursed shall be retained by Landlord. In the event
of a taking of land only, this Lease shall not terminate and Landlord shall not
be obligated to repair or restore the Premises.
SECTION 14.3. TENANT'S CLAIM. To the extent permitted by law and subject to
the rights of any lender with respect to the Premises, Tenant shall be allowed
to pursue a claim against the condemning authority (hereinafter referred to as
the "Tenant's Claim") that shall be independent of and wholly separate from any
action, suit or proceeding relating to any award to Landlord for reimbursement
of relocation expenses or for Tenant's Equipment and personal property,
provided: (i) Tenant's Claim shall in no way limit, affect, alter or diminish in
any kind or way whatsoever Landlord's award as a result of such taking, sale or
condemnation; (ii) Tenant's Claim shall in no event include any claim for any
interest in real property, it being expressly understood and agreed that all
sums paid with respect to the real property interests taken, sold or condemned
shall be the sole property of Landlord; and (iii) Tenant's Claim shall in no
event be joined with Landlord's proceeding or argued or heard concurrently
therewith and if the tribunal hearing Tenant's Claim orders such joinder, Tenant
agrees to voluntarily dismiss Tenant's Claim without prejudice until such time
as Landlord has received its award for such taking, sale or condemnation.
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ARTICLE XV
RENT ABSOLUTE
-------------
SECTION 15.1. RENT ABSOLUTE. This Lease shall be deemed and construed to be
a "net lease" and Tenant agrees to pay all costs and expenses of every kind and
nature whatsoever, ordinary and extraordinary, arising out of or in connection
with the ownership, maintenance, repair, replacement, use and occupancy of the
Premises during the Term of this Lease, which, except for the execution and
delivery hereof, would otherwise have been payable by Landlord.
ARTICLE XVI
ASSIGNMENT -- SUBLETTING BY TENANT
----------------------------------
SECTION 16.1. NO ASSIGNMENT, SUBLETTING OR OTHER TRANSFER. Tenant shall not
assign this Lease or any interest hereunder, nor shall Tenant sublet or permit
the use or occupancy of the Premises or any part thereof by anyone other than
Tenant, without the express prior written consent of Landlord which consent
shall not be unreasonably withheld. No assignment or subletting shall relieve
Tenant of its obligations hereunder, and Tenant shall continue to be liable as a
principal and not as a guarantor or surety, to the same extent as though no
assignment or sublease had been made, unless specifically provided to the
contrary in Landlord's consent. Consent by Landlord pursuant to this Article
shall not be deemed, construed or held to be consent to any additional
assignment or subletting, but each successive act shall require similar consent
of Landlord. Landlord shall be reimbursed by Tenant for any costs or expenses
incurred pursuant to any request by Tenant for consent to any such assignment or
subletting. In the consideration of the granting or denying of consent, Landlord
may, at its option, take into consideration: (i) the business reputation and
credit worthiness of the proposed subtenant or assignee; (ii) any required
alteration of the Premises; (iii) the intended use of the Premises by the
proposed subtenant or assignee; and (iv) any other factors which Landlord shall
deem relevant.
Section 16.2. OPERATION OF LAW. Tenant shall not allow or permit any
transfer of this Lease, or any interest hereunder, by operation of law, or
convey, mortgage, pledge or encumber this Lease or any interest hereunder.
SECTION 16.3. EXCESS RENTAL. If Tenant shall, with Landlord's prior consent
as herein required, sublet the Premises, an amount equal to one hundred percent
(100%) of the rental in excess of the base rent and any additional rent herein
provided to be paid shall be for benefit of Landlord and shall be paid to
Landlord promptly when due under any such subletting as additional rent due
hereunder.
SECTION 16.4. MERGER OR CONSOLIDATION. If Tenant is a corporation whose
stock is not publicly traded, any transaction or series of transactions
(including, without limitation, any dissolution, merger, consolidation or other
reorganization of Tenant, or any issuance, sale, gift, transfer or redemption of
any capital stock of Tenant, whether voluntary, involuntary or by operation of
law, or any combination of any of the foregoing transactions) resulting in the
transfer of control of Tenant, other than by reason of death, shall be deemed to
be a voluntary assignment of this Lease by Tenant subject to the provisions of
this Section 16. If Tenant is a partnership, any transaction or series of
transactions (including without limitation any withdrawal or admittance of a
partner or a change in any partner's interest in Tenant, whether voluntary,
involuntary or by operation of law, or any combination of any of the foregoing
transactions resulting in the transfer of control of Tenant, other than by
reason of death, shall be deemed to be a voluntary assignment of this Lease by
Tenant subject to the provisions of this assignment of this Lease by Tenant
subject to the provisions of this Section 16. If Tenant is a corporation, a
change or series of changes in ownership of stock which would result in direct
or indirect change in ownership by the stockholders or an affiliated group of
stockholders of less than fifty percent (50%) of the outstanding stock as of the
date of the execution and delivery of this Lease shall not be considered a
change of control. Notwithstanding the immediately foregoing, Tenant may, upon
notice to, but without Landlord's consent, assign this Lease to any corporation
resulting from a merger or consolidation of Tenant, provided that ;he total
assets and the total net worth of such assignee after such consolidation or
merger shall be in excess of the greater of (i) the net worth of Tenant
immediately prior to such consolidation or merger, or (ii) the
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net worth of Tenant as of the date hereof, determined by generally accepted
accounting principles and provided that Tenant is not at such time in default
hereunder, and provided further that such successor shall execute an instrument
in writing, acceptable to Landlord in its reasonable discretion, fully assuming
all of the obligations and liabilities imposed upon Tenant hereunder and deliver
the same to Landlord. Tenant shall provide in its notice to Landlord such
information as may be reasonably required by Landlord to determine that the
requirements of this Section 16.4 have been satisfied. As used in this Section
16.4, the term "control" means possession of the power to vote not less than a
majority interest of any class of voting securities and partnership or limited
liability company interests or to direct or cause the direction (directly or
indirectly) of the management or policies of a corporation, or partnership or
limited liability company through the ownership of voting securities,
partnership interests or limited liability company interests, respectively.
SECTION 16.5. UNPERMITTED TRANSACTION. Any assignment, subletting, use,
occupancy, transfer or encumbrance of this Lease or the Premises without
Landlord's prior written consent shall be of no effect and shall, at the option
of Landlord, constitute a default under this Lease.
ARTICLE XVII
ANNUAL STATEMENTS
-----------------
SECTION 17.1. ANNUAL STATEMENTS. Tenant agrees to furnish Landlord
annually, within ninety (90) days of the end of such fiscal year with a copy of
its annual audited statements, together with applicable footnotes and any other
financial information reasonably requested by Landlord (hereinafter collectively
referred to as, the "Financial Information") and agrees that Landlord may
deliver such Financial Information to any mortgagee, prospective mortgagee or
prospective purchaser of the Premises.
ARTICLE XVIII
INDEMNITY FOR LITIGATION
------------------------
SECTION 18.1. INDEMNITY FOR LITIGATION. Tenant agrees to pay, and to
indemnify and defend Landlord against, all costs and expenses (including
reasonable attorneys' fees) incurred by or imposed upon Landlord by or in
connection with any litigation to which Landlord becomes or is made a party
without fault on its part, whether commenced by or against Tenant, or any other
person or entity or that may be incurred by Landlord in enforcing any of the
covenants and agreements of this Lease with or without the institution of any
action or proceeding relating to the. Premises or this Lease, or in obtaining
possession of the Premises after an Event of Default hereunder or upon
expiration or earlier termination of this Lease. The foregoing notwithstanding,
Tenant's responsibility under this Section 18.1 to pay Landlord's costs and
expenses (including reasonable attorneys' fees) shall not extend to such costs
and expenses incurred in defending an action brought by Tenant to enforce the
terms of this Lease in which there is a court determination that Landlord failed
to perform its obligations under this Lease. The provisions of this Section 18.1
shall survive the expiration or earlier termination of this Lease.
ARTICLE XIX
ESTOPPEL CERTIFICATES
---------------------
SECTION 19.1. ESTOPPEL CERTIFICATE. Tenant agrees that on the Commencement
Date and at any time and from time to time thereafter, upon not less than ten
(10) days' prior written request by Landlord, it will execute, acknowledge and
deliver to Landlord, or Landlord's mortgagee to the extent factually accurate, a
statement in writing in the form of EXHIBIT "B" attached hereto and by this
reference incorporated herein; provided, however, Tenant agrees
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to certify to any prospective purchaser or mortgagee any other reasonable
information specifically requested by such prospective purchaser or mortgagee.
ARTICLE XX
INSPECTION OF PREMISES
----------------------
SECTION 20.1. INSPECTIONS. Tenant agrees to permit Landlord and any
authorized representatives of Landlord, to enter the Premises at all reasonable
times on reasonable advance notice, except in the case of emergency, for the
purpose of inspecting the same. Any such inspections shall be solely for
Landlord's purposes and may not be relied upon by Tenant or any other person.
SECTION 20.2. SIGNS. Tenant agrees to permit Landlord and any authorized
representative of Landlord to enter the Premises at all reasonable times during
business hours on reasonable advance notice to exhibit the same for the purpose
of sale, mortgage or lease, and during the final year of the Term hereof or any
extension thereof, Landlord may display on the Premises customary "For Sale" or
"For Rent" signs.
ARTICLE XXI
FIXTURES
--------
SECTION 21.1. BUILDING FIXTURES. All improvements and all plumbing,
heating, lighting, electrical and air-conditioning fixtures and equipment, and
other articles of personal property used in the operation of the Premises (as
distinguished from operations incident to the business of Tenant), whether or
not attached or affixed to the Premises ("Building Fixtures"), shall be and
remain a part of the Premises and shall constitute the property of Landlord.
SECTION 21.2. TENANT'S EQUIPMENT. All of Tenant's trade fixtures and all
personal property, fixtures, apparatus, machinery and equipment now or hereafter
located upon the Premises, other than Building Fixtures, as shall be and remain
the personal property of Tenant, and the same are herein referred to as
"Tenant's Equipment."
SECTION 21.3. REMOVAL OF TENANT'S EQUIPMENT. Tenant's Equipment may be
removed from time to time by Tenant; provided, however, that if such removal
shall injure or damage the Premises, Tenant shall repair the damage and place
the Premises in the same condition as it would have been if such Tenant's
Equipment had not been installed.
ARTICLE XXII
DEFAULT
-------
SECTION 22.1. EVENTS OF DEFAULT. Tenant agrees that any one or more of the
following events shall be considered "Events of Default" as said term is used
herein:
(a) If an order, judgment or decree shall be entered by any
court adjudicating Tenant a bankrupt or insolvent, or approving a petition
seeking reorganization of Tenant or appointing a receiver, trustee or
liquidator of Tenant, or of all or a substantial part of its assets, and
such order, judgment or decree shall continue unstayed and in effect for
any period of sixty (60) days; or
(b) Tenant shall file an answer admitting the material
allegations of a petition filed against Tenant in any bankruptcy,
reorganization or insolvency proceeding or under any laws relating to the
relief of debtors, readjustment or indebtedness, reorganization,
arrangements, composition or extension; or
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(c) Tenant shall make any assignment for the benefit of creditors
or shall apply for or consent to the appointment of a receiver, trustee or
liquidator of Tenant, or any of the assets of Tenant; or
(d) Tenant shall file a voluntary petition in bankruptcy, or
shall admit in writing its inability to pay its debts as they come due, or
shall file a petition or an answer seeking reorganization or arrangement
with creditors or take advantage of any insolvency law; or
(e) A decree or order appointing a receiver of the property of
Tenant shall be made and such decree or order shall not have been vacated
within sixty (60) days from the date of entry or granting thereof; or
(f) Tenant shall vacate the Premises or abandon same during the
Term hereof; or
(g) Tenant shall default in making any payment of Rent or other
payment required to be made by Tenant hereunder when due as herein
provided; or
(h) Tenant shall be in default in the performance of or
compliance with any of the agreements, terms, covenants or conditions in
this Lease other than those referred to in the foregoing subparagraphs (a)
through (g) of this Section for a period of twenty (20) days after notice
from Landlord to Tenant specifying the items in default, or in the case of
a default which cannot, with due diligence, be cured within said twenty
(20)-day period, Tenant fails to proceed within said twenty (20)-day period
to cure the same and thereafter to prosecute the curing of such default
with due diligence (it being intended in connection with a default not
susceptible of being cured with due diligence within said twenty (20)-day
period that the time of Tenant within which to cure the same shall be
extended for such period as may be necessary to complete the same with all
due diligence).
Upon the occurrence of any one or more of such Events of Default, Landlord
may at its election terminate this Lease or terminate Tenant's right to
possession only, without terminating this Lease. Upon termination of this Lease
or of Tenant's right to possession, Tenant shall immediately surrender
possession and vacate the Premises, and deliver possession thereof to Landlord,
and Landlord or Landlord's agents may immediately or any time thereafter without
notice, re-enter the Premises and remove all persons and all or any property
therefrom, either by any suitable action or proceeding at law or equity or by
force or otherwise, without being liable in indictment, prosecution or damages,
therefor, and repossess and enjoy the Premises, together with the right to
receive all income of, and from, the Premises.
Upon termination of this Lease, Landlord shall be entitled to recover as
liquidated damages, because the parties hereto recognize that as of the date
hereof actual damages are not ascertainable and are of imprecise calculation and
not as a penalty, all Rent and other sums due and payable by Tenant through the
date of termination plus (i) an amount equal to sixty percent (60%) of the Rent
and other sums provided herein to be paid by Tenant for the residue of the Term,
and (ii) the costs of performing any other covenants to be performed by Tenant.
If Landlord elects to terminate Tenant's right to possession only, without
terminating this Lease, Landlord may, at Landlord's option, enter into the
Premises, remove Tenant's signs and other evidences of tenancy, and take and
hold possession thereof as hereinabove provided, without such entry and
possession terminating this Lease or releasing Tenant, in whole or in part, from
Tenant's obligations to pay the Rent hereunder for the full Term or from any
other obligations of Tenant under this Lease. Landlord shall use commercially
reasonably efforts to relet all or any part of the Premises for such rent and
upon terms as are commercially reasonable (including the right to relet the
Premises for a term greater or lesser than that remaining of the Term of
premises and the right to relet the Premises as a part of a larger area, the
right to change the character or use made of the Premises and the right to grant
concessions of free rent). For the purpose of such reletting, Landlord may
decorate or make any repairs, changes, alterations, or additions in or to the
Premises that may be necessary or desirable. If Landlord is unable to relet the
Premises after using such commercially reasonably efforts to do so, Landlord
shall have the right to terminate this Lease, in which event, Tenant
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shall pay to Landlord liquidated damages (because the parties hereto recognize
that as of the date hereof actual damages are not ascertainable and are of
imprecise calculation and not as a penalty) equal to sixty percent (60%) of the
Rent, and other sums provided herein to be paid by Tenant for the remainder of
the Term. If the Premises are relet and sufficient sums shall not be realized
from such reletting after payment of all expenses of such decorations, repairs,
changes, alterations, additions and the expenses of repossession and such
reletting, and the collection of the Rent herein provided and other payments
required to be made by Tenant under the provisions of this Lease for the
remainder of the Term of this Lease then, in such event, Tenant shall pay to
Landlord on demand any such deficiency and Tenant agrees that Landlord may file
suit to recover any sums falling due under the terms of this Section from time
to time, and all costs and expenses of Landlord, including attorneys' fees,
incurred in connection with any such suit shall be paid by Tenant.
SECTION 22.2. WAIVERS. Tenant hereby expressly waives, so far as permitted
by law, the service of any notice of intention to re-enter provided for in any
statute, and except as is herein otherwise provided. Tenant for and on behalf of
itself and all persons claiming through or under Tenant, also waives any and all
rights of redemption or re-entry or repossession in case Tenant shall be
dispossessed by a judgment or by warrant of any court or judge or in case of
re-entry or repossession by Landlord or in case of any expiration or termination
of this Lease. The terms "enter," "re-enter," "entry" or "re-entry". as used
in this Lease are not restricted to their technical legal meanings.
SECTION 22.3. BANKRUPTCY. If Landlord shall not be permitted to terminate
this Lease, as provided in this Article XXII because of the provisions of the
United States Code relating to Bankruptcy, as amended (the "Bankruptcy Code"),
then Tenant as a debtor-in-possession or any trustee for Tenant agrees promptly,
within no more than sixty (60) days after the filing of the bankruptcy petition,
to assume or reject this Lease. In such event, Tenant or any trustee for Tenant
may only assume this Lease if: (a) it cures or provides adequate assurances that
the trustee will promptly cure any default hereunder; (b) compensates or
provides adequate assurance that Tenant will promptly compensate Landlord of any
actual pecuniary loss to Landlord resulting from Tenant's default; and (c)
provides adequate assurance of performance during the fully stated term hereof
of all of the terms, covenants, and provisions of this Lease to be performed by
Tenant. In no event after the assumption of this Lease shall any then-existing
default remain uncured for a period in excess of the earlier of ten (10) days or
the time period set forth herein. Adequate assurance of performance of this
Lease, as set forth hereinabove, shall include, without limitation, adequate
assurance: (i) of the source of rent reserved hereunder; and (ii) that the
assumption of this Lease will not breach any provision hereunder.
If Tenant assumes this Lease and proposes to assign the same pursuant to
the provisions of the Bankruptcy Code to any person or entity who shall have
made a bona fide offer to accept an assignment of this Lease on terms acceptable
to Tenant, then notice of such proposed assignment, setting forth: (i) the name
and address of such person; (ii) all of the terms and conditions of such offer,
and (iii) the adequate assurance to be provided Landlord to assure such person's
future performance under the Lease, including, without limitation, the assurance
referred to in Section 365(b)(3) of the Bankruptcy Code, shall be given to
Landlord by the Tenant no later than twenty (20) days after receipt by the
Tenant but in any event no later than ten (10) days prior to the date that the
Tenant shall make application to a court of competent jurisdiction for authority
and approval to enter into such assignment and assumption, and Landlord shall
thereupon have the prior right and option, to be exercised by notice to the
Tenant given at any time prior to the effective date of such proposed
assignment, to accept an assignment of this Lease upon the same terms and
conditions and for the same consideration, if any, as the bona fide offer made
by such person, less any brokerage commissions which may be payable out of the
consideration to be paid by such person for the assignment of this Lease.
If this Lease is assigned to any person or entity pursuant to the
provisions of the Bankruptcy Code any and all monies or other considerations
payable or otherwise to be delivered to Landlord, shall be and remain the
exclusive property of Landlord and shall not constitute property of Tenant or of
the estate of the Tenant within the meaning of the Bankruptcy Code. Any and all
monies or other considerations constituting the Landlord's property under the
preceding sentence not paid or delivered to the Landlord shall be held in trust
for the benefit of Landlord and shall be promptly paid to the Landlord.
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Any person or entity to which this Lease is assigned pursuant to the
provisions of the Bankruptcy Code shall be conclusively deemed without further
act or deed to have assumed all of the obligations arising under this Lease on
and after the date of such assignment. Any such assignee shall upon demand
execute and deliver to Landlord an instrument confirming such assumption. Any
such assignee shall be permitted to use the Leased Premises only for the Use.
Nothing contained in this Section shall, in any way, constitute a waiver of
the provisions of Article XVI of this Lease relating to alienation. Tenant shall
not, by virtue of this section, have any further rights relating to assignment
other than those granted in the Bankruptcy Code. Notwithstanding anything in
this Lease to the contrary, all amounts payable by Tenant to or on behalf of
Landlord under this Lease, whether or not expressly denominated as rent, shall
constitute rent for the purpose of Section 501(b)(6) or any successive section
of the Bankruptcy Code.
ARTICLE XXIII
LANDLORD'S PERFORMANCE OF TENANT'S COVENANTS
--------------------------------------------
SECTION 23.1. LANDLORD'S RIGHT TO PERFORM TENANT'S OBLIGATIONS. In the
event Tenant shall fail to maintain any insurance required to be paid by it
under the terms hereof, or in an Emergency Situation or upon occurrence of an
Event of Default, Landlord may (but shall not be obligated so to do), and
without waiving or releasing Tenant from any obligation of Tenant hereunder,
make any payment or perform any other act which Tenant is obligated to make or
perform under this Lease in such manner and to such extent as Landlord may deem
desirable; and in so doing Landlord shall also have the right to enter upon the
Premises for any purpose reasonably necessary in connection therewith and to pay
or incur any other necessary and incidental costs and expenses, including
reasonable attorneys' fees. All sums so paid and all liabilities so incurred by
Landlord, together with interest thereon at the rate per annum which is the
lesser of (i) the Lease Interest Rate or (ii) the highest rate permitted by law
shall be deemed Additional Rent hereunder and shall be payable to Landlord upon
demand as Additional Rent. Landlord shall use reasonable efforts to give prior
notice (which may be oral) of its performance, if reasonably feasible under the
circumstances. The performance of any such obligation by Landlord shall not
constitute a waiver of Tenant's default in failing to perform the same. Inaction
of Landlord shall never be considered as a waiver of any right accruing to it
pursuant to this Lease. Landlord, in making any payment hereby authorized: (a)
relating to Taxes, may do so according to any xxxx, statement or estimate,
without inquiry into the validity of any tax, assessment, sale, forfeiture, tax
lien or title or claim thereof; (b) for the discharge, compromise or settlement
of any lien, may do so without inquiry as to the validity or amount of any claim
for lien which may be asserted; or (c) in connection with the completion of
construction of improvements to the Premises or the repair, maintenance or the
payment of operating costs thereof, may do so in such amounts and to such
persons as Landlord reasonably may deem appropriate. Nothing contained herein
shall be construed to require Landlord to advance monies for any purpose.
Landlord shall not in any event be liable for inconvenience, annoyance,
disturbance, loss of business or other damage of Tenant or any other occupant of
the Premises or any part thereof, by reason of making repairs or the performance
of any work on the Premises or on account of bringing materials, supplies and
equipment into or through the Premises during the course thereof and the
obligations of Tenant under this Lease shall not thereby be affected in any
manner. In doing so, however, Landlord shall use reasonable efforts not to
interfere with the normal operation of the Premises. The term "EMERGENCY
SITUATION" shall mean a situation which has caused or is likely to cause bodily
injury to persons, contamination of or physical damage to the Premises or
adjoining property or economic liability or criminal jeopardy to Landlord.
ARTICLE XXIV
EXERCISE OF REMEDIES
--------------------
SECTION 24.1. CUMULATIVE REMEDIES. No remedy contained herein or otherwise
conferred upon or reserved to Landlord, shall be considered exclusive of any
other remedy, but the same shall be cumulative and shall be
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in addition to every other remedy given herein, now or hereafter existing at law
or in equity or by statute, and every power and remedy given by this Lease to
Landlord may be exercised from time to time and as often as occasion may arise
or as may be deemed expedient. No delay or omission of Landlord to exercise any
right or power arising from any default shall impair any such right or power or
shall be construed to be a waiver of any such default or an acquiescence
therein.
SECTION 24.2. NO WAIVER. No waiver of any breach of any of the covenants of
this Lease shall be construed, taken or held to be a waiver of any other breach,
or a waiver, acquiescence in or consent to any further or succeeding breach of
the same covenant. The acceptance by Landlord of any payment of Rent or other
sums payable hereunder after the termination by Landlord of this Lease or of
Tenant's right to possession hereunder shall not, in the absence of agreement in
writing to the contrary by Landlord, be deemed to restore this Lease or Tenant's
right to possession hereunder, as the case may be, but shall be construed as a
payment on account and not in satisfaction of damages due from Tenant to
Landlord. Receipt of Rent by Landlord, with knowledge of any breach of this
Lease by Tenant or of any default by Tenant in the observance or performance of
any of the conditions or covenants of this Lease, shall not be deemed to be a
waiver of any provision of this Lease.
SECTION 24.3. EQUITABLE RELIEF. In the event of any breach or threatened
breach by Tenant of any of the agreements, terms, covenants or conditions
contained in this Lease, Landlord shall be entitled to enjoin such breach or
threatened breach and shall have the right to invoke any right and remedy
allowed at law or in equity or by statute or otherwise as though re-entry,
summary proceedings, and other remedies were not provided for in this Lease.
ARTICLE XXV
SUBORDINATION TO MORTGAGES
--------------------------
SECTION 25.1. SUBORDINATION. Landlord may execute and deliver a mortgage or
trust deed in the nature of a mortgage (both sometimes hereinafter referred to
as "Mortgage") against the Premises or any portion thereof. This Lease and the
rights of Tenant hereunder, shall automatically, and without the requirement of
the execution of any further documents, be and are hereby made expressly subject
and subordinate at all times to the lien of any Mortgage now or hereafter
encumbering any portion of the Improvements, and to all advances made or
hereafter to be made upon the security thereof; provided, however, the holder of
said Mortgage agrees in writing not to disturb the rights of Tenant under this
Lease so long as Tenant is not in default hereunder. Notwithstanding the
foregoing, Tenant agrees to execute and deliver such instruments subordinating
this Lease to the lien of any such Mortgage as may be requested in writing
Landlord from time to time. Notwithstanding anything to the contrary contained
herein, any mortgagee under a Mortgage may, by notice in writing to the Tenant,
subordinate its Mortgage to this Lease.
SECTION 25.2. MORTGAGE PROTECTION. Tenant agrees to give the holder of any
Mortgage, by registered or certified mail, a copy of any notice of default
served upon the Landlord by Tenant, provided that prior to such notice Tenant
has received notice (by way of service on Tenant of a copy of an assignment of
rents and leases, or otherwise) of the address of such mortgagee and containing
a request therefor. Tenant further agrees that if Landlord shall have failed to
cure such default within the time provided for in this Lease, then said
mortgagee shall have an additional thirty (30) days after receipt of notice
thereof within which to cure such default or, if such default cannot be cured
within that time, then such additional time as may be necessary, if, within such
thirty (30) days, any mortgagee has commenced and is diligently pursuing the
remedies necessary to cure such default (including but not limited to
commencement of foreclosure proceedings, if necessary to effect such cure). Such
period of time shall be extended by any period within which such mortgagee is
prevented from commencing or pursuing such foreclosure proceedings by reason of
Landlord's bankruptcy. Until the time allowed as aforesaid for said mortgagee to
cure such defaults has expired without cure, Tenant shall have no right to, and
shall not, terminate this Lease on account of default. This Lease may not be
modified or amended so as to reduce the Rent or shorten the Term, or so as to
adversely affect in any other respect to any material extent the rights of the
Landlord, nor shall this Lease be cancelled or surrendered, without the prior
written consent, in each instance, of the mortgagee.
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ARTICLE XXVI
INDEMNITY AND WAIVER
--------------------
SECTION 26.1. INDEMNITY. Tenant shall not do or permit any act or thing to
be done or omit to do any act or thing upon the Premises which may subject
Landlord to any liability or responsibility for injury, damage to persons or
property, or to any liability by reason of any violation of applicable laws and
shall exercise such control over the Premises so as to fully protect Landlord
against any such liability. Tenant shall defend, indemnify and save Landlord,
and any official, agent, beneficiary, contractor, director, employee, lessor,
mortgagee, officer, parent, partner, shareholder and trustee of Landlord (each
an "INDEMNIFIED PARTY") representatives, successors and assigns harmless from
and against any and all liabilities, suits, judgments, settlements, obligations,
fines, damages, penalties, claims, costs, charges and expenses, including,
without limitation, engineers', architects' and attorneys' fees, court costs and
disbursements, which may be imposed upon or incurred by or asserted against any
Indemnified Party by reason of any of the following occurring during or after
(but attributable to a period of time falling within) the Term:
A. any demolition or razing or construction of any improvements
or any other work or thing done in, on or about the Premises or any part
thereof by Tenant or any member of the Tenant Group (defined below),
including any claim that such work constitutes "public works";
B. any use, nonuse, possession, occupation, alteration, repair,
condition, operation, maintenance or management of the Premises or any part
by Tenant or any member of the Tenant Group;
C. any act or failure to act on the part of Tenant or any
member of the Tenant Group;
D. any accident, injury (including death) or damage to any
person or property occurring in, on or about the Premises or any part
thereof or in, on or about any tunnel, creek, ditch, detention area,
sidewalk, curb or vault adjacent thereto as a result of the act or neglect
of Tenant or any member of the Tenant Group;
E. any failure to perform or comply with any of the covenants,
agreements, terms or conditions in this Lease on Tenant's part to be
performed or complied with (other than the payment of money);
F. any lien or claim which may be alleged to have arisen
against or on the Premises, or any lien or claim which may be alleged to
have arisen out of this Lease and created or permitted to be created by
Tenant or any member of the Tenant Group against any assets of Landlord, or
any liability which may be asserted against Landlord with respect thereto;
G. any failure on the part of Tenant to keep, observe and
perform any of the terms, covenants, agreements, provisions, conditions or
limitations contained in the contracts and agreements affecting the
Premises on Tenant's part to be kept, observed or performed;
H. any contest permitted pursuant to the provisions of this
Lease; and
I. any failure by Tenant to comply with its obligations under
Section 11.1 or arising out of or relating to Tenant's self insurance
under Section 9.4 hereof.
No agreement or covenant of Tenant in this Section 26.1 shall be deemed to
exempt Landlord from, and Tenant's obligations under this Section 26.1 shall not
include liability or damages for injury to persons or damage to property caused
by or resulting from the negligence of Landlord, its agents or employees, in the
operation or maintenance of the Project.
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The obligations of Tenant under this Section 26.1 shall not be affected in any
way by the absence in any case of covering insurance or by the failure or
refusal of any insurance carrier to perform any obligation on its part under
insurance policies affecting the Premises or any part thereof.
SECTION 26.2. WAIVER OF CLAIMS. Subject to Section 9.3 hereof, and except
to the extent resulting from the negligence of Landlord, its agents, employees
and contractors, Tenant waives all claims it may have against Landlord and
Landlord's agents for damage or injury to person or property sustained by Tenant
or any persons claiming through Tenant or by any occupant of the Premises, or
by any other person, resulting from any part of the Premises becoming out of
repair, or resulting from any accident on or about the Premises or resulting
directly or indirectly from any act or neglect of any person, including Landlord
to the extent permitted by law. This Section 26.2. shall include, but not by way
of limitation, damage caused by water, snow, frost, steam, excessive heat or
cold, sewage, gas, odors, or noise, or caused by bursting or leaking pipes. or
plumbing fixtures, and shall apply equally whether any such damage results from
the act or neglect of Tenant or of any other person, including Landlord to the
extent permitted by law, and whether such damage be caused or result from
anything or circumstance above mentioned or referred to, or to any other thing
or circumstance whether of a like nature or of a wholly different nature. All
Tenant's Equipment and other personal property belonging to Tenant or any
occupant of the Premises that is in or on any part of the Premises shall be
there at the risk of Tenant or of such other person only, and Landlord shall not
be liable for any damage thereto or for the theft or misappropriation thereof.
ARTICLE XXVII
SURRENDER
SECTION 27.1. CONDITION. Upon the termination of this Lease whether by
forfeiture, lapse of time or otherwise, or upon the termination of Tenant's
right to possession of the Premises, Tenant will at once surrender and deliver
up the Premises to Landlord, broom clean, in good order, condition and repair,
reasonable wear and tear excepted. "Broom clean" means free from all debris,
dirt, rubbish, personal property of Tenant, oil, grease, tire tracks or other
substances, inside and outside of the Improvements and on the grounds comprising
the Premises. Any damage caused by removal of Tenant from the Premises,
including any damages caused by removal of Tenant's Equipment as defined above,
shall be repaired and paid for by Tenant prior to the expiration of the Term.
SECTION 27.2. REMOVAL OF TENANT'S EQUIPMENT. Upon the termination of this
Lease by lapse of time, or otherwise, Tenant may remove Tenant's Equipment
provided, however, that Tenant shall repair any injury or damage to the Premises
which may result from such removal. If Tenant does not remove Tenant's Equipment
from the Premises prior to the end of the Term, however ended, Landlord may, at
its I option, remove the same and deliver the same to any other place of
business of Tenant or warehouse the same, and Tenant shall pay the cost of such
removal (including the repair of any injury or damage to the Premises resulting
from such removal), delivery and warehousing to Landlord on demand, or Landlord
may treat tenant's equipment as having been conveyed to Landlord with this Lease
as a Xxxx of Sale, without further payment or credit by Landlord to Tenant.
SECTION 27.3. HOLDOVER. If Tenant retains possession of the Premises or any
part thereof after the termination of the Term, by lapse of time and otherwise,
then Tenant shall pay to Landlord monthly rent, at double the rate payable for
the month immediately preceding said holding over (including increases for
additional rent which Landlord may reasonably estimate), computed on a per-month
basis, for each month or part thereof (without reduction for any such partial
month) that Tenant thus remains in possession, and in addition thereto, Tenant
shall pay Landlord all damages, consequential as well as direct, sustained by
reason of Tenant's retention of possession. Alternatively, at the election of
Landlord expressed in a written notice to Tenant and not otherwise, such
retention of possession shall constitute a renewal of this Lease for one (1)
year, at a rental equal to one hundred twenty percent (120%) of the Rent during
the previous year. The provisions of this paragraph do not exclude the
Landlord's rights of re-entry or any other right hereunder. Any such extension
or renewal shall be subject to all other terms and conditions herein contained.
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ARTICLE XXVIII
COVENANT OF QUIET ENJOYMENT
---------------------------
SECTION 28.1. COVENANT OF QUIET ENJOYMENT. Landlord covenants that Tenant,
on paying the Rent and all other charges payable by Tenant hereunder, and on
keeping, observing and performing all the other terms, covenants, conditions,
provisions and agreements herein contained on the part of Tenant to be kept,
observed and performed, all of which obligations of Tenant are independent of
Landlord's obligations hereunder, shall, during the Term, peaceably and quietly
have, hold and enjoy the Premises subject to the terms, covenants, conditions,
provisions and agreement hereof free from hindrance by Landlord or any person
claiming by, through or under Landlord.
ARTICLE XXIX
NO RECORDING
------------
SECTION 29.1. SHORT FORM OF LEASE. This Lease shall not be recorded.
ARTICLE XXX
NOTICES
-------
SECTION 30.1. NOTICES. All notices, consents, approvals to or demands upon
or by Landlord or Tenant desired or required to be given under the provisions
hereof, shall be in writing. Any notices or demands from Landlord to Tenant
shall be deemed to have been duly and sufficiently given if a copy thereof has
been personally served, forwarded by expedited messenger or recognized overnight
courier service with evidence of delivery or mailed by United States registered
or certified mail in an envelope properly stamped and addressed to Tenant at
Tenant's Mailing Address, or at such other address as Tenant may theretofore
have furnished by written notice to Landlord. Any notices or demands from Tenant
to Landlord shall be deemed to have been duly and sufficiently given if
forwarded by expedited messenger or recognized overnight courier service with
evidence of delivery or mailed by United States registered or certified mail in
an envelope properly stamped and addressed to Landlord at Landlord's Mailing
Address, with a copy to Xxxx X. Xxxxxxxx, Xxxx Xxxxxxx & Xxxxxxxx, 000 Xxxx
Xxxxxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000, or at such other address as
Landlord may theretofore have furnished by written notice to Tenant. The
effective date of such notice shall be the date of actual delivery, except that
if delivery is refused, the effective date of notice shall be the date delivery
is refused.
ARTICLE XXXI
COVENANTS RUN WITH LAND
-----------------------
SECTION 31.1. COVENANTS. All of the covenants, agreements, conditions and
undertakings in this Lease contained shall extend and inure to and be binding
upon the heirs, executors, administrators, successors and assigns of the
respective parties hereto, the same as if they were in every case specifically
named, and shall be construed as covenants running with the Land, and wherever
in this Lease reference is made to either of the parties hereto, it shall be
held to include and apply to, wherever applicable, the heirs, executors,
administrators, successors and assigns of such party. Nothing herein contained
shall be construed to grant or confer upon any person or persons, firm,
corporation or governmental authority, other than the parties hereto, their
heirs, executors, administrators, successors and assigns, any right, claim or
privilege by virtue of any covenant, agreement, condition or undertaking in this
Lease contained.
SECTION 31.2. RELEASE OF LANDLORD. The term "Landlord" as used in this
Lease, so far as covenants or obligations on the part of Landlord are concerned,
shall be limited to mean and include only the owner or owners at the
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time in question of title to the Premises, and in the event of any transfer or
transfers of the title, Landlord herein named (and in the case of any subsequent
transfers or conveyances, the then grantor) shall be automatically freed and
relieved, from and after the date of such transfer or conveyance, of all
personal liability as respects the performance of any covenants or obligations
on the part of Landlord contained in this Lease thereafter to be performed;
provided that any funds in the hands of such Landlord or the then grantor at the
time of such transfer, in which Tenant has an interest, shall be turned over to
the grantee.
ARTICLE XXXII
ENVIRONMENTAL MATTERS
---------------------
SECTION 32.1. DEFINED TERMS.
A. "HAZARDOUS MATERIAL" shall include but shall not be limited
to any substance, material, or waste that is regulated by any federal,
state, or local governmental authority because of toxic, flammable,
explosive, corrosive, reactive, radioactive or other properties that may be
hazardous to human health or the environment, including without limitation
asbestos and asbestos-containing materials, radon, petroleum and petroleum
products, urea formaldehyde foam insulation, methane, lead-based paint,
polychlorinated biphenyl compounds, hydrocarbons or like substances and
their additives or constituents, pesticides, agricultural chemicals, and
any other special, toxic, or hazardous substances, materials, or wastes of
any kind, including without limitation those now or hereafter defined,
determined, or identified as "hazardous substances," "hazardous materials,"
"toxic substances," or "hazardous wastes" in any Environmental Law.
B. "ENVIRONMENTAL LAW" shall mean any federal, state, or local
law, statute, ordinance, code, rule, regulation, policy, common law,
license, authorization, decision, order, or injunction which pertains to
health, safety, any Hazardous Material, or the environment (including but
not limited to ground, air, water, or noise pollution or contamination, and
underground or abovegroundtanks) and shall include, without limitation, the
Resource Conservation and Xxxxxxxx Xxx, 00 X.X.X. 00000 et seq., as amended
by the Hazardous and Solid Waste Amendments of 1984; the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.
89601 et seq., as amended by the Superfund Amendments and Reauthorization
Act of 1986; the Hazardous Materials Xxxxxxxxxxxxxx Xxx, 00 X.X.X. 00000 et
seq.; the Federal Water Pollution Control Act, 33 U.S.C. 81251 et seq., the
Clean Air Act, 42 U.S.C. 87401 et seq.,; the Toxic Substances Xxxxxxx Xxx,
00 X.X.X. 00000 et seq.,; the Safe Drinking Water Act, 42 U.S.C. ss. 300f
et seq., the Illinois Environmental Protection Act, 415 ILCS 4/1 et seq.;
the Municipal Code of the City of Chicago; the Rivers and Harbors Act, (33
U.S.C. 8401 et seq.); the Emergency Planning and Community Right-to-Know
Act of 1986,42 U.S.C. 11001 et seq. ("EPCRA"), the Federal Insecticide,
Fungicide and Rodenticide Act, 7 U.S.C. 136 to 136y; the Oil Pollution Act
of 1990, 33 U.S.C. 2701 et seq.; and the Occupational Safety and Health
Act, 29 U.S.C. 651 et seq.; and any other federal, state, or local
environmental requirements, together with all rules, regulations, orders,
and decrees now or hereafter promulgated under any of the foregoing, as any
of the foregoing now exist or may be changed or amended or come into effect
in the future.
C. "ENVIRONMENTAL CLAIM" shall mean and include any demand,
notice of violation, inquiry, cause of action, proceeding, or suit for
damages (including reasonable attorneys', consultants', and experts' fees,
costs or expenses), losses, injuries to person or property, damages to
natural resources, fines, penalties, interest, cost recovery, compensation,
or contribution resulting from or in any way arising in connection with any
Hazardous Material or any Environmental Law.
D. "PRE-EXISTING CONDITION" shall mean the presence of any
Hazardous Material on the Premises, to the extent such Hazardous Material
was not introduced onto the Premises after the Commencement Date.
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E. "ENVIRONMENTAL CONDITION" shall mean (i) the presence on
the Premises of one or more underground storage tanks or (ii) the existence
of any Hazardous Material on the Premises, other than a Pre-Existing
Condition,
(a) in violation of or requiring cleanup under any
Environmental Law or the provisions of this Article XXXII, or
(b) in concentrations or at levels exceeding applicable
federal, state, or local standards for soil, groundwater, or
waste on residential properties,
either of which subjects Landlord to liability for any Environmental Claim
or which must be remediated to prevent Landlord from incurring loss of any
kind.
F. "ENVIRONMENTAL REMEDIATION" shall mean any investigation,
cleanup, removal, containment, remediation, or other action relating to an
Environmental Condition (i) required pursuant to any Environmental Law, or
(ii) necessary to prevent Landlord from incurring, or relieve Landlord
from, loss of any kind as a result of an Environmental Claim.
G. "REMEDIATING PARTY" shall mean the party which has elected
(or is deemed to have elected) to perform any Environmental Remediation.
H. "TENANT GROUP" shall mean Tenant and its officers,
directors, shareholders, employees, contractors, licensees, invitees,
agents, successors and assigns and any person or entity acting by, through
or under any of the foregoing.
SECTION 32.2. TENANT'S COVENANTS WITH RESPECT TO ENVIRONMENTAL MATTERS.
During the Term, Tenant, at its sole cost and expense, shall:
A. comply with all Environmental Laws relating to the use and
operation of the Premises;
B. keep the Premises free of any Hazardous Material;
C. not exacerbate a Pre-Existing Condition;
D. upon the discovery of an Environmental Condition:
(1) promptly, but not later than three (3) business days
after the discovery of the Environmental Condition, notify
Landlord of the Environmental Condition;
(2) furnish a letter of credit, personal guaranty, escrow
of funds, or other security reasonably acceptable to Landlord to
secure performance of Environmental Remediation and to assure
Landlord that all necessary funds are readily available to
Landlord to pay the costs and expenses of Environmental
Remediation;
(3) prior to commencement of any Environmental Remediation,
submit a proposed scope of work for the Environmental
Remediation, together with a timetable and a cost estimate, to
Landlord for review and approval;
(4) after obtaining Landlord's approval, diligently
perform the approved Environmental Remediation;
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(5) submit to Landlord in a timely manner for Landlord's
review and comment the documentation and information required by
Sections 32.6 and 32.7 of this Lease relating to each phase of
the Environmental Remediation;
(6) comply with applicable release reporting requirements
and provide Landlord with any information necessary for Landlord
to comply with Environmental Law; and
(7) obtain a so-called "no further action letter" or other
acknowledgment from the federal, state, or local governmental
agency with jurisdiction over the Environmental Condition that
the Premises have been fully remediated without reliance on
institutional controls (including but not limited to deed
restrictions) or engineered barriers;
E. not install or operate any above or below ground tank,
sump, pit, pond, lagoon, or other storage or treatment vessel or device on
the Premises without first obtaining Landlord's prior written consent;
F. not handle, use, generate, treat, dispose of, or permit
the use, handling, generation, treatment, storage, or disposal of any
Hazardous Material in, on, under, around, or above the Premises at any time
during the Term;
G. not use any above-ground tank (including barrels and drums),
of any size within or without the Premises, except (i) in compliance with
all Environmental Laws, and (ii) if secondary containment approved by
Landlord is provided. Empty tanks, barrels and drums shall be presumed to
have one (1) inch of product remaining when declared empty.
SECTION 32.3. CONDUCT OF TENANT. If Tenant, with the prior written
authorization of Landlord, which authorization may be granted or denied by
Landlord in its sole and absolute discretion, generates, uses, transports,
stores, treats, or disposes of any Hazardous Material:
A. Tenant shall, at its own cost and expense, comply with all
Environmental Laws relating to any Hazardous Material;
B. Tenant shall (i) not dispose of any Hazardous Material in
dumpsters or trash containers or at any other location at the Premises;
(ii) not discharge any Hazardous Material into drains or sewers; (iii) not
cause or allow the release, discharge, emission, or run-off of any
Hazardous Material to air, surface waters, the land, or ground water,
whether directly or indirectly; (iv) at Tenant's own cost and expense,
arrange for the lawful transportation and off-site disposal of all
Hazardous Materials generated by Tenant; (v) provide secondary containment
around all Hazardous Material storage containers, storage facilities, and
above-ground storage tanks; (vi) conduct all necessary environmental
inspections, including but not limited to asbestos inspections prior to any
renovation or demolition as required by 40 CFR Part 61, and provide copies
of all reports associated with such inspections to Landlord; (vii) comply
with all reporting requirements under any federal, state, or local
ordinance, statute, or regulation, including but not limited to toxics
inventory reporting under EPCRA, the provisions of 40 CFR Part 61, or
various regulations controlling the emissions of volatile organic
compounds, and Tenant shall provide copies of all such reports and
notifications to Landlord; and (viii) use only highly skilled people
acceptable to Landlord to address all environmental issues associated with
the Premises, and ensure that such people and all employees of the Tenant
shall receive all training or certification required under any federal,
state, or local legal requirement specifically mentioned or alluded to in
Section 32.1 of this Lease;
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C. Tenant shall promptly provide Landlord with copies of all
communications, permits, or agreements with any governmental authority or
agency (federal, state, or local) or any private entity relating in any way
to the violation or alleged violation of any Environmental Laws or to any
violation of Tenant's obligations under subparagraph (B) above;
D. Landlord and Landlord's agents and employees shall have the
right to enter the Premises and/or conduct appropriate tests for the
purpose of ascertaining that Tenant complies with all applicable laws,
rules or permits relating in any way to the presence of any Hazardous
Materials on the Premises; and
E. Upon the written request of Landlord no more frequently
than once every year, or on any other occasion in the event that Landlord
has reason to believe an environmental problem exists at the Premises,
Tenant shall provide Landlord the results of appropriate tests of air,
water, and soil to demonstrate (i) that Tenant is in compliance with all
applicable laws, rules or permits relating in any way to the presence of
any Hazardous Material on the Premises and (ii) the lack of any releases,
discharges, or emissions.
If the presence, release, threat of release, or placement of any Hazardous
Material on or in the Premises occurs or is caused in whole or in part during
the Term of this Lease, or the generation, transportation, storage, treatment,
or disposal of any Hazardous Material at the Premises occurs or is caused in
whole or in part during the Term of this Lease, and such gives rise to liability
(including, but not limited to, a response action, remedial action, or removal
action) under any Environmental Law or common law theory, including but not
limited to nuisance, strict liability, negligence and trespass, Tenant shall
promptly take any and all action necessary to clean up the Premises and mitigate
exposure to liability arising from the Hazardous Material, whether or not
required by law.
SECTION 32.4. EXACERBATION. If Tenant exacerbates a Pre-Existing Condition
(as a result of Tenant's investigative or remedial activities or otherwise)
during the Lease Term, the provisions of this Article XXX shall apply to such
exacerbation of the Pre-Existing Condition as if it were an Environmental
Condition, and Tenant shall perform Environmental Remediation as to such
exacerbation. Tenant shall be responsible for all fines and penalties caused by
Tenant or to the extent exacerbated by Tenant at any time during the Lease Term.
SECTION 32.5. RIGHTS OF INSPECTION. Landlord and their respective agents
and representatives shall have a right of entry and access to the Premises at
any time in Landlord's discretion for the purposes of (i) inspecting the
documentation relating to Hazardous Materials or environmental matters
maintained by Tenant or occupant of the Premises; (ii) ascertaining the nature
of the activities being conducted on the Premises and investigating whether
Tenant is in compliance with its obligations under Article XXXII of this Lease;
and (iii) determining the type, kind, and quantity of all products, materials,
and substances brought onto the Premises, or made or produced thereon. Landlord
and its agents and representatives shall have the right to take samples in
quantities sufficient for analysis of all products, materials, and substances
present on the Premises including, but not limited to, samples, products,
materials, or substances brought onto or made or produced on the Premises by
Tenant or occupant of the Premises or their respective agents, employees,
contractors or invitees and shall also have the right to conduct other tests and
studies as may be reasonably determined by Landlord to be appropriate in order
to investigate whether Tenant is in compliance with its obligations under
Article XXXII.
SECTION 32.6. COPIES OF NOTICES. During the term of this Lease, Tenant and
Landlord shall each provide the other promptly with copies of all summons,
citations, directives, information inquiries or requests, notices of potential
responsibility, notices of violation or deficiency, orders or decrees,
Environmental Claims, complaints, investigations, judgments, letters, notices of
environmental liens or response actions in progress, and other communications,
written or oral, actual or threatened, received in the case of Tenant, by Tenant
or occupant of the Premises, or in the case of Landlord, by Landlord, from the
United States Environmental Protection Agency, Occupational Safety and Health
Administration, Illinois Environmental Protection Agency, Illinois Office of the
State Fire Xxxxxxxx, Chicago Department of the Environment, or other federal,
state, or local agency or authority, or any other entity or individual
(including both governmental and non-governmental entities and individuals),
concerning (a) any
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actual or alleged release of any Hazardous Material on, to, or from the
Premises; (b) the imposition of any lien on the Premises relating to any
Hazardous Material; (c) any actual or alleged violation of or responsibility
under Environmental Laws; or (d) any actual or alleged liability under any
theory of common law tort or toxic tort, including without limitation,
negligence, trespass, nuisance, strict liability, or ultrahazardous activity.
SECTION 32.7. TESTS AND REPORTS.
A. Upon written request by Landlord, Tenant shall provide
Landlord, at Tenant's expense, with (i) copies of all environmental reports
and tests prepared or obtained by or for Tenant or occupant of the
Premises; (ii) copies of transportation and disposal contracts (and related
manifests, schedules, reports, and other information) entered into or
obtained by Tenant with respect to any Hazardous Material; (iii) copies of
any permits issued to Tenant under Environmental Laws with respect to the
Premises; (iv) prior to filing, copies of any and all reports,
notifications, and other filings to be made by Tenant or occupant of the
Premises to any federal, state, or local environmental authorities or
agencies, and after filing, copies of such filings; and (v) any other
relevant documents and information with respect to environmental matters
relating to the Premises. Tenant shall be obligated to provide such
documentation only to the extent that the documentation is within Tenant's
possession or control.
B. In addition, if an Environmental Claim is made or
threatened, or if a default shall have occurred under the Lease, Landlord
shall have the right, but not the duty, to enter upon the Premises and
conduct an environmental assessment of the Premises, including but not
limited to a visual site inspection, review of records pertaining to the
site, and interviews of Tenant's representatives or others concerning
the site use and history and other matters. The investigation may also
include reasonable subsurface or other invasive investigation of the
Premises, including but not limited to soil borings and sampling of site
soil and ground or surface water for laboratory analysis, as may be
recommended by the Landlord's consultant (discussed below) as part of its
inspection of the Premises or based upon such other reasonable evidence of
Environmental Conditions warranting such subsurface or other invasive
investigation. Landlord shall have the right, but not the duty, to retain
any independent professional consultant to conduct any such environmental
assessment; provided, however, that Landlord agrees to limit, in the
absence of an Environmental Claim or default under this Article XXXII, the
number of such environmental assessments to one (1) per Lease Year for the
Lease Term. Tenant will cooperate with the Landlord's consultant and will
supply to the consultant, promptly upon request, any information
reasonably requested by Landlord to facilitate the completion of the
environmental assessment. Landlord and its designees are hereby granted
access to the Premises at any time or times, upon reasonable notice (which
may be written or oral) to perform such environmental assessment. In
exercising its right, Landlord shall use its reasonable efforts to
minimize disruption of operations at the Premises. Any costs associated
with performance of the environmental assessment, including but not
limited to the consultant fees and restoration of any property damaged by
such environmental assessment, shall be paid by Landlord unless such
investigation discloses an Environmental Condition, in which case Tenant
shall pay such costs.
C. Tenant shall pay costs incurred by Landlord (including
consultants' fees, costs and expenses) to review and comment on all reports
and other documentation and information required by Sections 32.5 and 32.6,
and to monitor the performance of any Environmental Remediation performed
by Tenant.
SECTION 32.8. INDEMNIFICATION. Tenant shall reimburse, defend with counsel
chosen by Landlord, indemnify, and hold Landlord and any other Indemnified Party
free and harmless from and against any and all Environmental Claims, response
costs, losses, liabilities, damages, costs, and expenses, including without
limitation loss of rental income, loss due to business interruption, and
reasonable attorneys' and consultants' fees, costs and expenses arising out of
or in any way connected with any or all of the following:
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A. any Hazardous Material (other than a Pre-Existing Condition)
which, at any time during the Term, is or was actually or allegedly
generated, stored, treated, released, disposed of, or otherwise located on
or at the Premises as a result of the act or omission of Tenant or any
member of the Tenant Group (regardless of the location at which such
Hazardous Material is now or may in the future be located or disposed of),
including, but not limited to any and all (i) liabilities under any common
law theory of tort, nuisance, strict liability, ultrahazardous activity,
negligence, or otherwise based upon, resulting from or in connection with
any Hazardous Material; (ii) obligations to take response, cleanup, or
corrective action pursuant to any Environmental Laws; and (iii) the costs
and expenses of investigation or remediation in connection with the
decontamination, removal, transportation, incineration, or disposal of any
of the foregoing; and
B. any actual or alleged illness, disability, injury, or death
of any person, in any manner arising out of or allegedly arising out of
exposure to any Hazardous Material or other substances or conditions
present at the Premises as a result of the act or omission of Tenant or any
member of the Tenant Group (including, but not limited to, ownership,
operation, and disposal of any equipment which generates, creates, or uses
electromagnetic files, x-rays, other forms of radiation and radioactive
materials), regardless of when any such illness, disability, injury, or
death shall have occurred or been incurred or manifested itself and
C. any actual or alleged failure of Tenant or any member of the
Tenant Group at any time and from time to time to comply with all
applicable Environmental Laws or any permit issued thereunder;
D. any failure by Tenant to comply with any obligation under
this Article XXXII relating to an Environmental Condition for which Tenant
is Remediating Party;
E. Tenant's failure to provide any information, make any
submission, and take any step required by any relevant governmental
authorities;
F. the imposition of any lien for damages caused by, or the
recovery of any costs for, the remediation or cleanup of any Hazardous
Material as a result of events that took place during the Term of this
Lease as a result of the act or omission of Tenant or any member of the
Tenant Group;
G. costs of removal of any and all Hazardous Materials from
all or any portion of the Premises, which Hazardous Materials came to be
present at the Premises during the Term of this Lease as a result of the
act or omission of Tenant or any member of the Tenant Group;
H. costs incurred to comply, in connection with all or any
portion of the Premises, with all governmental requirements with respect to
any Hazardous Material on, in, under or affecting the Premises, which
Hazardous Material came to be present at the Premises during the Term of
this Lease as a result of the act or omission of Tenant or any member of
the Tenant Group;
I. any spills, charges, leaks, escapes, releases, dumping,
transportation, storage, treatment, or disposal of any Hazardous Material
which occur during the Term of this Lease, but only to the extent that such
Hazardous Material originated from or were or are located on the Premises.
The obligations of Tenant under this Section 32.8 shall survive any
termination or expiration of this Lease.
SECTION 32.9. TENANT ACKNOWLEDGMENTS WITH RESPECT TO ENVIRONMENTAL
MATTERS. Tenant acknowledges that the Premises are being leased in their present
"as is" condition. Tenant further acknowledges that Landlord has made no
representation whatsoever regarding any Hazardous Material on or about the
Premises.
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SECTION 32.10. NO LIABILITY OF LANDLORD.
A. Landlord shall not have any liability to Tenant or any of
its employees, agents, shareholders, officers or directors, or any other
persons as a result of any Hazardous Material now or hereafter located on
the Premises.
B. Tenant hereby waives and releases Landlord from all
Environmental Claims arising from or relating to Pre-Existing Conditions.
ARTICLE XXXIII
SECURITY DEPOSIT
----------------
SECTION 33.1. SECURITY DEPOSIT. Tenant agrees to deposit with Landlord,
upon the execution of this Lease, the Security Deposit as security for the full
and faithful performance by Tenant of each and every term, provision, covenant
and condition of this Lease. If Tenant defaults in respect to any of the terms,
provisions, covenants and conditions of this Lease including, but not limited
to, payment of all rental and other sums required to be paid by Tenant
hereunder, Landlord may use, apply or retain the whole or any part of the
security so deposited for the payment of such rent in default, for any sum which
Landlord may expend or be required to expend by reason of Tenant's default
including, without limitation, any damages or deficiency in the reletting of the
Premises, whether such damages or deficiency shall have accrued before or after
re-entry by Landlord. If any of the security deposit shall be so used, applied
or retained by Landlord at any time or from time to time, Tenant shall promptly,
in each such instance, on written demand therefor by Landlord, pay to Landlord
such additional sums as may be necessary to restore the security deposit to the
original amount set forth in the first sentence of this section. If Tenant shall
fully and faithfully comply with all the terms, provisions, covenants and
conditions of this Lease, the security deposit, or the balance thereof, shall be
returned to Tenant after the following: (a) the time fixed as the expiration of
the Term of this Lease; (b) the removal of Tenant from the Premises; (c) the
surrender of the Premises by Tenant to Landlord in accordance with this Lease;
and (d) final determination of all amounts payable by Tenant hereunder and
payment of same. Except as otherwise required by law, Tenant shall be entitled
to interest at the rate of three percent (3%) per annum throughout the Term on
the aforesaid security deposit only in the event there is no claim against the
Security Deposit during the Term. In the absence of evidence satisfactory to
Landlord of an assignment of the right to receive the security deposit or the
remaining balance thereof, Landlord may return the security deposit to the
original Tenant, regardless of one or more assignments of this Lease.
ARTICLE XXXIV
TENANT'S WORK
-------------
SECTION 34.1. TENANT'S WORK. Tenant shall have the right to perform
alterations to the Premises (the "Tenant's Work") as set forth on EXHIBIT "C"
attached hereto and by this reference made a part hereof, upon the terms and
conditions contained herein. Tenant's Work shall be completed in compliance with
all applicable governmental laws, rules, statutes, ordinances and regulations,
in a good workmanlike and lien free manner in accordance with the approved
Tenant's Plans. Only new and good grades of material shall be used. Tenant's
Work shall comply with all applicable insurance requirements, all laws,
statutes, ordinances and regulations of the City of Berkeley and the State of
Illinois. The provisions of Article XIII hereof to the extent not inconsistent
with this Article XXXIV shall apply to the performance of the Tenant's Work by
Tenant.
SECTION 34.2. PLANS. The Tenant shall, at Tenant's sole cost and expense
(subject to the Tenant's Allowance), cause to be prepared and submitted to the
Landlord at such time as Tenant desires, plans and specifications ("Tenant's
Plans") for the Tenant Work, including, but not limited to, all space plans,
working drawings, mechanical
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and engineering drawings disclosing all construction to be performed. Landlord
shall have a period of five (5) business days after each submission of Tenant's
Plans in which to approve or disapprove Tenant's Plans. Landlord's disapproval
of any portion of Tenant's Plans shall note the specific items not approved and
the reasons therefor. In the event Tenant's Plans are disapproved, the Tenant
may revise and resubmit Tenant's Plans expeditiously and Landlord shall review
the same and notify the Tenant of its approval or disapproval within five (5)
business days thereafter in the same manner as required for the initial
submittal.
SECTION 34.3. TENANT ALLOWANCE. Landlord shall pay or reimburse Tenant for
the costs of completing Tenant's Work up to a maximum amount of $358,000.00
("Tenant's Allowance"). The cost of all work necessary to complete Tenant's Work
(including, but not limited to, all labor, material and permits) and to pay
architectural fees, permit fees and engineering fees shall, in excess of
Tenant's Allowance, shall be the responsibility of the Tenant. The Tenant's
Allowance shall be paid by the Landlord to the contractors, subcontractors and
material suppliers or to the extent Tenant has previously paid such parties, to
reimburse Tenant within thirty (30) days of Tenant's presentation of
documentation ("Draw Documents") reasonably satisfactory to Landlord evidencing
(i) the amounts due, in relation to Tenant's Work, to the Consultant and any
subcontractors and materialmen, including, but not limited to a contractor's
sworn statement and lien waivers covering all work performed as of the
applicable disbursement date, covering all Tenant's Work for which the Tenant is
requesting payment; (ii) a sworn statement from Tenant setting forth in detail
all contractors and material suppliers with whom Tenant has contracted, their
addresses, work or materials to be furnished, amounts of contracts, amounts paid
to date, amounts of current payments and balances due; and (iii) a report by the
architect who prepared Tenant's Plans certifying that Tenant's Work has been
completed and materials are in place as indicated by the request for payment by
Tenant; (iv) an endorsement to Landlord's owner's policy of title insurance
showing no mechanic's liens; and (v) a certificate of occupancy from the City
of Berkeley, Illinois to the extent required with respect to the applicable
work. A Tenant Allowance draw shall never exceed, in the aggregate,
the remaining unpaid amount of the Tenant's Allowance. In the event that in
Landlord's reasonable opinion, the cost to complete the Tenant's Work exceeds
the Tenant's Allowance, Landlord shall not have any obligation to disburse any
portion of the Tenant's Allowance until Tenant has paid such portion of the cost
of the Tenant's Work (and provided the Draw Documents with respect thereto) so
that the remaining cost of the Tenant's Work is equal to the remainder of the
Tenant's Allowance.
SECTION 34.4. GOVERNMENTAL APPROVALS. Tenant, at its sole cost and expense,
shall file all necessary plans with the appropriate governmental authorities
having jurisdiction over Tenant's Work. Tenant shall be responsible for
obtaining all permits, authorizations and approvals necessary to perform and
complete Tenant's Work. Tenant shall not commence Tenant's Work until the
required permits authorizations and approvals for such work are obtained and
delivered to Landlord.
SECTION 34.5. LANDLORD ACCESS TO TENANT WORK. The Landlord and its agents
and their representatives shall at all times have access to the Tenant's Work
wherever it is in preparation or progress for the purpose of observing and
reviewing the same; provided, however, Landlord shall not unreasonably interfere
with the performance of Tenant's Work in connection with any such observations
or reviews. Tenant and its contractors shall provide reasonable facilities for
such access and for inspection.
SECTION 34.6. SAFETY. Tenant shall assume responsibility for the prevention
of accidents to its agents and employees and shall take all reasonable safety
precautions with respect to the work to be performed and shall comply with all
reasonable safety measures initiated by the Landlord and with all applicable
laws, ordinances, rules, regulations and orders applicable to the Tenant's Work
including those of any public authority for the safety of persons or property.
Tenant shall report to Landlord any injury to any of its agents or employees and
shall furnish Landlord a copy of the accident report filed with its insurance
carrier within three (3) days of its occurrence.
SECTION 34.7. COMPLETION. Upon completion of Tenant's Work, Tenant shall
furnish Landlord with a copy of the Tenant's Plans (together with any and all
change orders), final waivers of lien and contractors affidavits for
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Tenant's Work, a detailed breakdown of the costs of Tenant's Work and evidence
of payment reasonably satisfactory to Landlord, and an occupancy permit for the
demised premises to the extent issued by the City of Berkeley, Illinois.
ARTICLE XXXV
MISCELLANEOUS
-------------
SECTION 35.1. CAPTIONS. The captions of this Lease are for convenience only
and are not to be construed as part of this Lease and shall not be construed as
defining or limiting in any way the scope or intent of the provisions hereof.
SECTION 35.2. SEVERABILITY. If any covenant, agreement or condition of this
Lease or the application thereof to any person, firm or corporation or to any
circumstances, shall to any extent be invalid or unenforceable, the remainder of
this Lease, or the application of such covenant, agreement or condition to
persons, firms or corporations or to circumstances other than those as to which
it is invalid or unenforceable, shall not be affected thereby. Each covenant,
agreement or condition of this Lease shall be valid and enforceable to the
fullest extent permitted by law.
SECTION 35.3. APPLICABLE LAW. This Lease shall be construed and enforced in
accordance with the laws of the state where the Premises are located.
SECTION 35.4. AMENDMENTS IN WRITING. None of the covenants, terms or
conditions of this Lease, to be kept and performed by either party, shall in any
manner be altered, waived, modified, changed or abandoned, except by a written
instrument, duly signed, acknowledged and delivered by the other party.
SECTION 35.5. RELATIONSHIP OF PARTIES. Nothing contained herein shall be
deemed or construed by the parties hereto, nor by any third party, as creating
the relationship of principal and agent or of partnership, or of joint venture
by the parties hereto, it being understood and agreed that no provision
contained in this Lease nor any acts of the parties hereto shall be deemed to
create any relationship other than the relationship of Landlord and Tenant.
SECTION 35.6. BROKERAGE. Tenant warrants that it has no dealings with any
real estate broker or agent in connection with this lease, and Tenant covenants
to pay, hold harmless and indemnify Landlord from and against any and all cost,
expense or liability for any compensation, commissions and charges claimed by
any other broker or other agent with respect to this Lease or the negotiation
thereof arising out of any acts of Tenant.
SECTION 35.7. NO ACCORD AND SATISFACTION. No payment by Tenant or receipt
by Landlord of a lesser amount than the monthly rent herein stipulated and
additional rent shall be deemed to be other than on account of the earliest
stipulated rent, nor shall any endorsement or statement on any check or any
letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of such rent or pursue any other remedy
in this Lease provided.
SECTION 35.8. JOINT EFFORT. The preparation of this Lease has been a joint
effort of the parties hereto and the resulting documents shall not, solely as a
matter of judicial construction, be construed more severely against one of the
parties than the other.
SECTION 35.9. WAIVER OF JURY TRIAL. Tenant hereby waives a jury trial in
action brought by Landlord hereunder. If Landlord commences any proceeding for
nonpayment of rent or any other sum due to be paid by Tenant under this Lease,
Tenant hereby agrees that Tenant will not impose any counterclaim of any nature
or description in any such proceeding, provided however, such agreement of
Tenant shall not be construed as a waiver of the right of Tenant to assert such
claim in a separate action or actions brought by Tenant.
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SECTION 35.10. TIME. Time is of the essence of this Lease, and all
provisions herein relating thereto shall be strictly construed.
SECTION 35.11. LANDLORD'S CONSENT. Landlord's granting of any consent under
this Lease, or Landlord's failure to object to any action taken by Tenant
without Landlord's consent required under this Lease, shall not be deemed a
waiver by Landlord of its rights to require such consent for any further similar
act by Tenant. No waiver by Landlord of any other breach of the covenants of
this Lease shall be construed, taken or held to be a waiver of any other breach
or to be a waiver, acquiescence in or consent to any further or succeeding
breach of the same covenant. None of the Tenant's covenants under this Lease,
and no breach thereof, shall be waived, altered or modified except by a written
instrument executed by Landlord.
SECTION 35.12. NO PARTNERSHIP. Landlord is not, and shall not be deemed to
be, in any way or for any purpose, the partner, employer, principal, master or
agent of or with Tenant.
SECTION 35.13. LANDLORD'S LIABILITY. Notwithstanding anything to the
contrary herein contained, there shall be absolutely no personal liability
asserted or enforceable against Landlord or on any persons, firms or entities
who constitute Landlord with respect to any of the terms, covenants, conditions
and provisions of this Lease, and Tenant shall, subject to the rights of any
mortgagee, look solely to the interest of Landlord, its successors and assigns
in the Premises for the satisfaction of each and every remedy of Tenant in the
event of default by Landlord hereunder; such exculpation of personal liability
is absolute and without any exception whatsoever. If the entity constituting
Landlord is a partnership, Tenant agrees that the deficit capital account of any
such partner shall not be deemed an asset or property of said partnership.
Notwithstanding anything in this Lease to the contrary, with respect to any
provision of this Lease which requires Landlord's consent or approval, Tenant
shall not be entitled to make, nor shall Tenant make, any claim for (and Tenant
hereby waives any claim for) money damages as a result of any claim by Tenant
that Landlord has unreasonably withheld or unreasonably delayed any consent or
approval, but Tenant's sole remedy shall be an action or proceeding to enforce
such provision, or for specific performance, injunction or declaratory judgment.
SECTION 35.14. ENTIRE AGREEMENT. It is understood and agreed that all
understandings and agreements heretofore had between the parties hereto are
merged in this Lease, the exhibits annexed hereto and the instruments and
documents referred to herein, which alone fully and completely express their
agreements, and that no party hereto is relying upon any statement or
representation, not embodied in this Agreement, made by the other. Each party
expressly acknowledges that, except as expressly provided in this Agreement, the
other party and the agents and representatives of the other party have not made,
and the other party is not liable for or bound in any manner by, any express or
implied warranties, guaranties, promises, statements, inducements,
representations or information pertaining to the transactions contemplated
hereby.
SECTION 35.15. RENT ABSOLUTE. Except as otherwise expressly provided
herein, this Lease shall be deemed and construed to be a "net lease" and Tenant
agrees to pay all costs and expenses of every kind and nature whatsoever,
ordinary and extraordinary, arising out of or in connection with the ownership,
maintenance, repair, replacement, use and occupancy of the Premises during the
Term of this Lease, which, except for the execution and delivery hereof, would
otherwise have been payable by Landlord.
SECTION 35.16. PURCHASE CONTINGENCY. Landlord and Tenant acknowledge and
agree that Landlord's obligations under this Lease are expressly contingent upon
Landlord's purchase of the Premises and the closing of such purchase by which
Landlord obtains fee simple title to the Land. In the event that said events
have not occurred on or before February 29, 2000, either party may terminate
this Lease upon notice to the other at any time prior to the closing of such
purchase.
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IN WITNESS WHEREOF, the parties have executed this Lease as of the date set
forth above.
LANDLORD: CENTERPOINT PROPERTIES TRUST, a Maryland real
--------- estate investment trust
By: /s/ Xxxx X. Xxxxx
--------------------------------------------
Its: Xxxx X. Xxxxx
--------------------------------------------
Chief Investment Officer
By: [ILLEGIBLE]
--------------------------------------------
Its: V.P./Controller
--------------------------------------------
TENANT: WORLD DRYER CORPORATION, a Division of Specialty
------- Equipment Manufacturing Corporation, a Delaware
corporation
By: /s/ Xxxxx X. Xxxxxx
--------------------------------------------
Its: President
--------------------------------------------
ATTEST:
By: /s/ Xxxxx X. Kilaryde
--------------------------------------------
Its: Vice President
--------------------------------------------
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EXHIBIT "A"
LEGAL DESCRIPTION
-----------------
PARCEL 1:
THAT PART OF THE XXXXX CORPORATION BERKELEY INDUSTRIAL DEVELOPMENT UNIT 'B'
BEING A SUBDIVISION OF PART OF THE SOUTH 1/2 OF THE SOUTH EAST 1/4 OF SECTION 6,
TOWNSHIP 39 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN, WHICH IS
BOUNDED AS FOLLOWS:
ON THE EAST BY A LINE 129 FEET WEST OF AND PARALLEL WITH THE EAST LINE OF LOT 14
IN SAID SUBDIVISION; ON THE SOUTH BY THE NORTH LINE OF MC DERMOTT DRIVE; ON THE
WEST BY A LINE 334 FEET WEST OF AND PARALLEL WITH SAID EAST LINE OF SAID LOT 14;
AND ON THE NORTH BY THE NORTHERLY LINE OF SAID SUBDIVISION; IN XXXX COUNTY,
ILLINOIS.
PARCEL 2:
NON-EXCLUSIVE EASEMENT FOR THE BENEFIT OF PARCEL 1 AS CREATED BY GRANTS FROM THE
XXXXX CORPORATION, AN ILLINOIS CORPORATION, TO AMERICAN NATIONAL BANK AND TRUST
COMPANY OF CHICAGO, AS TRUSTEE UNDER TRUST AGREEMENT DATED AUGUST 30, 1965 AND
KNOWN AS TRUST NUMBER 22196 DATED SEPTEMBER 1, 1965 AND RECORDED SEPTEMBER 16,
1965 AS DOCUMENT 19589602 AND DATED MARCH 7, 1966 AND RECORDED MARCH 8, 1966 AS
DOCUMENT 19759362 FOR RAILROAD SIDE TRACKS OVER THE FOLLOWING DESCRIBED
PROPERTY:
A 20 FOOT STRIP OF LAND SOUTH OF AND ADJOINING THE SOUTH LINE OF THE EASEMENT
GRANTED BY CHICAGO AND NORTHWESTERN RAILWAY COMPANY TO THE COMMONWEALTH EDISON
COMPANY BY GRANT DATED AUGUST 21, 1961 AND RECORDED AUGUST 31, 1961 AS DOCUMENT
18263289 EXTENDING FROM THE EAST LINE OF XXXX AVENUE IN THE VILLAGE OF BERKELEY
TO THE WEST LINE OF PARCEL 1 AND FROM THE EAST LINE OF PARCEL 1 TO A LINE 51
FEET EAST OF AND PARALLEL WITH THE WEST LINE OF LOT 10 IN THE XXXXX
CORPORATION'S BERKELEY INDUSTRIAL DEVELOPMENT UNIT 'A' BEING A SUBDIVISION OF
PART OF THE SOUTH 1/2 OF THE SOUTH EAST 1/4 OF SECTION 6, TOWNSHIP 39 NORTH,
RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN XXXX COUNTY, ILLINOIS.
A-1
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EXHIBIT "B"
TENANT ESTOPPEL CERTIFICATE
---------------------------
Property Name:
Tenant:
To:
DEFINITIONS:
------------
Lease Date:
Landlord:
Tenant:
Security Deposit:
Date of Possession:
Rent Commencement Date:
Monthly Base Rent:
Annual Base Rental Amount:
Monthly Deposits:
Term:
Termination Date:
Renewal Option(s):
Square Footage:
Use:
Tenants Address For Notices:
["Purchaser"] ["Lender"] proposes to [purchase the Property] [finance the
Property] and this Tenant Estoppel Certificate is to be made and delivered in
connection with that [purchase] [financing].
The undersigned Tenant under the above-referenced lease dated as of the
Lease Date between Landlord and Tenant ("Lease"), certifies, represents,
confirms and agrees in favor of [Purchaser] [Lender] the following:
B-1
44
1. The above-described Lease has not been cancelled, modified, assigned,
extended or amended and contains the entire agreement between Landlord and
Tenant except as follows:
2. Rent has been paid to ________________________________________. There
is no Prepaid Rent. The amount of the Security Deposit is as set forth above,
which is currently being held by Landlord.
3. Tenant took possession of the leased premises on the Date of
Possession, and commenced to pay rent on the Rent Commencement Date, in the
amount of the Monthly Base Rent, each payable in advance. Our current Annual
Base Rental Amount is as set forth above, payable in equal monthly installments,
subject to percentage rental, common area maintenance charges, escalation
charges and other charges in accordance with the terms and provisions of the
Lease, which as of the date hereof total the Monthly Deposit Amount, each
payable in equal monthly installments in advance. We are currently in occupancy
of the leased premises. No "discounts", "free rent", "discounted rent" or
"abatements of rent" have been agreed to or are in effect.
4. The Lease is for the Term set forth above and ending on the Termination
Date, and we have the Renewal Option(s) set forth above.
5. All space and improvements covered by the Lease have been completed and
furnished to the satisfaction of Tenant, all conditions required under the Lease
have been met, and Tenant has accepted and taken possession of the leased
premises on the Date of Possession as set forth above and presently occupies the
leased premises, presently consisting of the Square Footage as set forth above.
6. The Lease is (a) in full force and effect, and (b) free from default by
both Landlord and Tenant; and we have no claims, liens, charges or credits
against Landlord or offsets against rent.
7. The undersigned has not assigned or sublet the Lease, nor does the
undersigned hold the Property under assignment or sublease.
8. There are no other agreements written or oral, between the undersigned
and Landlord with respect to the Lease and/or the leased premises and building.
Landlord has satisfied all commitments, arrangements or understandings made to
induce Tenant to enter into the Lease, and Landlord is not in any respect in
default in the performance of the terms and provisions of the lease, nor is
there now any fact or condition which, with notice or lapse of time or both,
would become such a default.
9. The leased premises are currently being used for the Use set forth
above.
10. Tenant is maintaining (free of default) all insurance policies that the
Lease requires Tenant to maintain.
11. Neither Landlord nor [Purchaser] [Lender] nor any of their respective
successor or assigns, has or will have any personal liability of any kind or
nature under or in connection with the Lease; and, in the event of a default by
Landlord or [Purchaser] [Lender] under the Lease, Tenant shall look solely to
Landlord's or [Purchaser's] [Lender's] interest in the building in which the
leased premises are located.
12. Tenant is not in any respect in default under the terms and provisions
of the Lease (nor is there now any fact or condition which, with notice or lapse
of time or both, would become such a default), and Tenant has not assigned,
transferred or hypothecated its interest under the Lease.
13. Tenant (i) does not have any option or preferential right to purchase
all or any part of the leased premises or all or any part of the building of
which the leased premises are a part; and (ii) does not have any right, title or
interest with respect to the leased premises other than as lessee under the
Lease.
B-2
45
14. We understand that [Purchaser] [Lender] is planning, to [purchase]
[finance] the Property on which the leased premises is located to Purchaser, and
we agree to make all payments required under the Lease to [Purchaser] [Lender]
upon our receipt of notice from Landlord and/or [Purchaser] [Lender]. Further,
upon receipt of such notice, we will thereafter look to [Purchaser] [Lender] and
not Landlord as the landlord under the Lease. We agree to give all notices
required to be given by us to Landlord under the Lease to [Purchaser] [Lender]
upon our receipt of said notice.
15. The statements contained herein may be relied upon by [Purchaser]
[Lender] and by any prospective purchaser or lender of the Property.
16. If Tenant is a Corporation, the undersigned is a duly appointed officer
of the corporation signing this Agreement, and is the incumbent in the office
indicated under his or her name. If Tenant is a partnership or joint venture,
the undersigned is a duly appointed partner or officer of the partnership or
joint venture signing this certificate. In any event, the undersigned individual
is duly authorized to execute this Agreement on behalf of Tenant.
17. Tenant (a) executes this certificate with the understanding that
[Purchaser] [Lender] is contemplating [purchasing] [financing] the Property, and
that if [Purchaser] [Lender] [purchases] [finances] the Property, [Purchaser]
[Lender] will do so in material reliance on this certificate; and (b) agrees
that the certifications and representations made herein shall survive such
acquisition.
18. The current address to which all notices to Tenant as required under
the Lease should be sent is the Tenant's Address for Notices.
19. [Purchaser's] [Lender's] rights hereunder shall inure to its successors
and assigns.
IN WITNESS WHEREOF, Tenant has executed this estoppel certificate as of
this _________ day of _________, 199__.
_____________________,a(n)____________________
By:
---------------------------------------------
Its:
--------------------------------------------
B-3
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EXHIBIT "C"
TENANT'S WORK
-------------
C-1
