OFFICE LEASE AGREEMENT
Exhibit
10.45
THIS
LEASE AGREEMENT (the "Lease"), made and entered into as of the 16th day
of July, 2007, between Fairways 2001 Office Partners, Ltd., a Texas
limited partnership and Ascendant Solutions, Inc., a Delaware
corporation.
WITNESSETH:
1.
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DEFINITIONS. For
the purposes of this Lease, the following definitions shall
govern:
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(a)
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"Landlord":
Fairways 2001 Office Partners, Ltd., a Texas limited
partnership.
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(b)
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"Tenant":
Ascendant Solutions, Inc., a Delaware
corporation.
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(c)
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"The
Property": The real property known as 00000 Xxxxxx Xxxxxxx,
Xxxxxx, Xxxxx, more particularly described in Exhibit "A"
attached hereto and incorporated
herein.
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(d)
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"Building": The
office building located on and constituting a part of the
Property.
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(e)
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"Premises": Suite
No. 111 in the Building, being the offices located on
the first and second floor(s) as outlined on the floor plan
attached to this Lease as Exhibit "B" and incorporated
herein. The Premises on the date hereof are stipulated for all
purposes to contain a total of 2,401 square feet of Rentable
Area.
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(f)
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"Base
Rental": See Exhibit
E.
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(g)
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"Commencement
Date": August 15, 2007.
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(h)
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"Lease
Term": A term commencing on the Commencement Date and
continuing for a period of sixty (60)
months.
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(i)
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"Expense
Stop": The Expense Stop will be established during the
12-month period of 2007 (hereinafter referred to as the "Base
Year"). During the Base Year, Tenant shall pay only Base
Rental; Tenant shall have no liability for any adjustments to Base
Rental
pursuant to Section 6 of this Lease for the Base Year. At the
conclusion of the Base Year, the Expense Stop per square foot of
Rentable
Area will be determined for the remaining Lease Term, including any
extension of the Lease Term in accordance with the provisions of
this
Lease, by dividing the Operating Expenses for the Base Year as determined
in Section 1(j) below, by 34,520 (the square feet of Rentable Area
in the
Building).
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(j)
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"Operating
Expenses": The sum of the
following:
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(1)
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The
Taxes; plus
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(2)
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The
Insurance Costs; plus
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(3)
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All
direct and indirect costs and expenses (including charges for water,
waste
water, refuse removal, and electricity used or consumed) that are
incurred
in operating, maintaining, repairing, administrating, managing and
owning
the Exterior Common Areas; plus
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(4)
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All
expenses and disbursements of every kind (subject to the
limitations set forth below) which Landlord incurs, pays or becomes
obligated to pay in connection with the ownership, operation, and
maintenance of the Building (including the Service Areas and Common
Areas), determined in accordance with generally accepted federal
income
tax basis accounting principles consistently applied, increased to
the
amount which would have been incurred had the Building been occupied
to
the extent of ninety-five percent (95%) of the Rentable Area in the
Building, and specifically includes but is not limited to the
following:
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(i) Wages
and salaries (including management fees) of all employees engaged in the
operation, repair, replacement, maintenance, and security of the Building,
including taxes, insurance and benefits relating thereto;
(ii) All
supplies and materials used in the operation, maintenance, repair, replacement,
and security of the Building and all parking areas, enclosed or otherwise,
and
all streets, sidewalks and landscaped areas.
(iii) Annual
cost of all capital improvements made to the Building which although capital
in
nature can reasonably be expected to reduce the normal operating costs of the
Building, as well as all capital improvements made in order to comply with
any law hereafter promulgated by any governmental authority relating to energy,
conservation, public safety or security, as amortized over the useful
economic life of such improvements as determined by Landlord in its reasonable
discretion (without regard to the period over which such improvements may be
depreciated or amortized for federal income tax purposes);
(iv) Cost
of all utilities, other than the cost of utilities actually reimbursed to
Landlord by the Building's tenants;
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(v) Cost
of repairs, replacements, and general maintenance of the Building, other than
repair, replacement, and general maintenance of the roof, foundation
and exterior walls of the Building; and
(vi) Cost
of service or maintenance contracts with independent contractors for the
operation, maintenance, repair, replacement, or security of the Building
(including, without limitation, alarm service and window cleaning).
There
are specifically excluded from the definition of the term "Operating Expenses"
costs (1) for capital improvements made to the Building, other than capital
improvements described in subparagraph (iii) above and except for items which,
though capital for accounting purposes, are properly considered maintenance
and
repair items, such as painting of common areas, replacement of carpet in the
lobbies, and the like; (2) for repair, replacements and general maintenance
paid
by proceeds of insurance or by Tenant or other third parties, and alterations
attributable solely to tenants of the Building other than Tenant; (3) for
interest, amortization or other payments on loans to Landlord; (4) for
depreciation of the Building; (5) for leasing commissions; (6) for legal
expenses; (7) for renovating or otherwise improving space for occupants of
the
Building or vacant space in the Building; (8) for correcting defects in the
construction of the Building; (9) for overtime or other expenses of Landlord
in
curing defaults or performing work expressly provided in this Lease to be borne
at Landlord's expense; and (10) for federal income taxes imposed on or measured
by the income of Landlord from the operation of the Building.
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(k)
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"Taxes":
means all taxes, assessments and governmental charges, whether federal,
state, county or municipal, and whether they be by taxing districts
or
authorities presently taxing the Property or by others, subsequently
created or otherwise and any other taxes, association dues and assessments
attributable to the Property or its operation, including taxes on
Landlord
attributable to revenues from the operation of the Property, excluding,
however, federal and state income taxes, franchise taxes, inheritance,
estate, gift, corporation, net profits or any similar tax for which
Landlord becomes liable and/or which may be imposed upon or assessed
against Landlord; provided, however, if, at any time during the
Lease Term, the present method of taxation changes such that a business
tax, margin tax or increased franchise tax (such business, margin
or
franchise tax is referred to herein as a “Margin Tax”) is imposed
on Landlord in lieu of or in addition to real estate taxes imposed
against
the Property, then the first full calendar year of the Lease Term
following the imposition of the Margin Tax, the Expense Stop shall
be
increased by the difference, if any, between (i) the real estate
taxes for
the Base Year, and (ii) the sum of the real estate taxes and the
Margin
Tax applicable to the first full calendar year that the Margin Tax
is in
effect.
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(l)
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"Insurance
Costs": All costs incurred by Landlord associated with the
insurance required to be maintained by Landlord pursuant to this
Lease,
including premiums and any deductible required to be paid by Landlord
under any such policy.
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(m)
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"Tenant's
Prorata Share": A fraction, the numerator of which is the
number of square feet of Rentable Area in the Premises and the denominator
of which is the number of square feet of Rentable Area in the
Building. Tenant's Prorata Share at the beginning of the Lease
Term shall be 6.955%, calculated on the basis of the initial Rentable
Area
of the Premises on the date hereof. Tenant's Prorata Share
shall be adjusted each time the Rentable Area in the Premises is
increased.
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(n)
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"Common
Areas": Those areas of the Building devoted to corridors,
restrooms, mechanical rooms, janitorial closets, electrical and telephone
closets, vending areas and other facilities provided for the common
use or
benefit of tenants generally and/or the
public.
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(o)
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"Service
Areas": Those areas of the Building within the outside
walls used for mechanical rooms, building stairs, fire towers (but
shall
not include any such areas for the exclusive use of the particular
tenant).
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(p)
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"Usable
Area" of the Premises: The gross area within the inside
surface of the outer glass of the exterior walls, to the mid-point
of any
walls separating portions of the Premises from those of adjacent
tenants
and to the inside surface of walls separating the Premises from Common
Areas and Service Areas.
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(q)
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"Rentable
Area" of
the Premises: The sum
of the Usable Area plus the prorata part of the Common Areas allocated
to
the floor(s) leased to Tenant in the Building. Rentable Area
shall include any columns and/or projection(s) which protrude into
the
Premises and/or the Common Areas. The "Rentable Area" shall be calculated
in accordance with ANSI Z65.1-1996, as promulgated by the
Building Owners and Managers Association (BOMA). The initial
Rentable Area of the Premises is 2,401 square feet and the Common
Area
factor for the first floor is 1.1670%. The Common Area factor
shall remain constant throughout the initial term of the Lease unless
Tenant expands the Premises or reconfigures the Premises in accordance
with this Lease, in which event the Common Area factor will be adjusted
only to the extent necessary to take into consideration Tenant’s expansion
or reconfiguration.
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(r)
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"Exterior
Common Areas": Those areas which are not located within the
Building and which are provided and maintained for the common use
and
benefit of Landlord and tenants of the Building generally and the
employees, invitees and licensees of Landlord and such tenants; including
without limitation, all parking areas, enclosed or otherwise, and
all
streets, sidewalks and landscaped
areas.
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(s)
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"Building
Standard Improvements", when used herein, shall mean those
improvements to the Premises which Landlord shall agree to provide
according to the Work Letter attached hereto as Exhibit "C" and
incorporated herein for all purposes. "Building Grade"
shall mean the type, brand and/or quality of materials Landlord designates
from time to time to be the minimum quality to be used in the Building
or
the exclusive type, grade or quality of material to be used in the
Building.
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2.
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LEASE
GRANT. Subject to and upon the terms herein set forth,
Landlord leases to Tenant and Tenant leases from Landlord the
Premises.
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3.
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LEASE
TERM. This Lease shall continue in force during a period
beginning on Commencement Date and continuing until the expiration
of the
Lease Term, unless this Lease is sooner terminated or extended to
a later
date under any other term or provision hereof. If this Lease is
executed before the Premises become vacant or otherwise available
and
ready for occupancy by Tenant, or if any present occupant of the
Premises
holds over and Landlord cannot acquire possession of the Premises
before
the Commencement Date, then (a) Tenant's obligation to pay rent hereunder
shall be waived until Landlord tenders possession of the Premises
to
Tenant, (b) the Lease Term shall be extended by the time between
the
scheduled Commencement Date and the date on which Landlord tenders
possession of the Premises to Tenant (which date will then be defined
as
the Commencement Date), (c) Landlord shall not be in default hereunder
or
be liable for damages therefor, and (d) Tenant shall accept possession
of
the Premises when Landlord tenders possession thereof to
Tenant. By occupying the Premises, Tenant shall be deemed to
have accepted the Premises in their condition as of the date of such
occupancy, subject to the performance of punch-list items that remain
to
be performed by Landlord, if any. Tenant shall execute and
deliver to Landlord, within ten (10) days after Landlord has requested
same, a letter confirming (i) the Commencement Date, (ii) that Tenant
has
accepted the Premises, and (iii) that Landlord has performed all
of its
obligations with respect to the Premises (except for punch-list items
specified in such letter).
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4.
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USE. Tenant
shall continuously occupy the Premises and use the Premises only
for
general office use and for no other purpose. Tenant agrees not
to use or permit the use of the Premises for any purpose which is
illegal,
or which, in Landlord's opinion, creates a nuisance, interferes with
other
tenants or Landlord in its management of the Building, or which would
increase the cost of insurance coverage with respect to the
Building.
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5.
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BASE
RENTAL. (a) Tenant agrees to pay during the Lease Term, to
Landlord, without any setoff or deduction whatsoever, the Base Rental
and
all such other sums of money as shall become due hereunder as additional
rent, including, without limitation, any estimated adjustments to
Base
Rental all of which are sometimes herein collectively called
"rent", the nonpayment of which Landlord shall be entitled to
exercise all such rights and remedies as are herein provided in the
case
of the nonpayment of Base Rental. The Base Rental, together
with any adjustments thereto pursuant to Section 6 hereof then in
effect, shall be due and
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payable
in advance monthly on the first day of each calendar month during the Lease
Term
(including any extensions or renewals thereof), and Tenant hereby agrees to
pay
such Base Rental and any adjustments thereto to Landlord at Landlord's address
provided herein (or such other address in Dallas County as may be designated
by
Landlord in writing from time to time) monthly, in advance, and without
demand. If the Lease Term commences on a day other than the first day
of a month or terminates on a day other than the last day of a month, then
the
installments of Base Rental and any adjustments thereto for such month or months
shall be prorated, based on the number of days in such month.
(b) If
Tenant shall fail to pay the Base Rental on or before the fifth day of the
calendar month in which such Base Rental is due, Tenant shall pay to Landlord
a
late charge equal to ten percent (10%) of such Base Rental; provided, however,
no late charge shall be imposed under this paragraph (b) with respect to the
first two times during the term of this Lease that Tenant fails to pay Base
Rental on or before the fifth day of the calendar month in which such Base
Rental is due so long as Tenant pays in full such Base Rental on or before
the
tenth day of such calendar month. All installments of rent, including
late charges, not paid when due and payable shall bear interest at the lesser
of
the maximum lawful rate or one and one-half percent (1-1/2%) per month from
the
date due until paid. Such interest shall be in addition to the late
charge described in this paragraph (b).
6.
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BASE
RENTAL ADJUSTMENTS. The Base Rental payable hereunder shall
be adjusted upward from time to time in accordance with the following
provisions:
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(a)
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Tenant's
Base Rental is based, in part, upon the estimate that annual Operating
Expenses for the Building will be equal to the Expense Stop per square
foot of Rentable Area in the Building. Tenant shall, during the
Lease Term, pay as additional rent Tenant's Prorata Share of the
amount by
which the Operating Expenses per square foot of Rentable Area in
the
Building for each calendar year exceed the Expense Stop (the amount
of
such excess is referred to as the "Excess"). Landlord
may collect such additional rent in arrears on a yearly
basis. Landlord shall also have the option from time to time to
make a good faith estimate of the Excess for the present, as well
as each
upcoming calendar year, and upon thirty (30) days' written notice
to
Tenant may require the monthly payment of Base Rental adjusted in
accordance with such estimate. Any amounts paid based on such
an estimate shall be subject to adjustment pursuant to Section 6(b)
when
actual Operating Expenses are available for each calendar
year.
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(b)
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By
April 1 of each calendar year during Tenant's occupancy, or as soon
thereafter as practical, Landlord shall furnish to Tenant a statement
of
Landlord's actual Operating Expenses for the previous calendar
year. If for any calendar year additional Base Rental collected
for the prior year, as a result of Landlord's estimate of Operating
Expenses, is in excess of the additional Base Rental actually due
during
such prior
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year,
then Landlord shall refund to Tenant any overpayment (or at Landlord's option,
apply such amount against rentals due hereunder). Likewise, Tenant
shall pay to Landlord, on demand, any underpayment with respect to the prior
year.
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(c)
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Tenant,
at its expense, shall have the right no more frequently than once
per
calendar year, following prior written notice to Landlord, to audit
Landlord's books and records relating to Operating Expenses for the
immediately preceding calendar year; or at Landlord's sole discretion,
Landlord will provide such audit prepared by a certified public
accountant, in lieu of allowing Tenant's auditors to inspect such
books
and records.
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(d)
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All
taxes (other than Taxes) allocated or attributed to Tenant, or Tenant's
property shall be paid by Tenant prior to
delinquency.
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7.
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SERVICES
TO BE FURNISHED BY LANDLORD. Landlord agrees to furnish
Tenant the following services:
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(a)
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Hot
and cold water at those points of supply provided for general use
of other
tenants in the Building, central heat and air conditioning in season,
at
such temperatures and in such amounts as are considered by Landlord
to be
standard or as required by governmental authority; provided, however,
Landlord shall furnish to Tenant a keyfob which will enable Tenant
to
activate the heating and air conditioning for the Premises at times
other
than for "Normal Business Hours" for the Building (which are 7:00
a.m. to 6:00 p.m. on Mondays through Fridays and 9:00 a.m. to 1:00
p.m. on
Saturdays, exclusive of normal business holidays). Tenant shall
pay to Landlord an amount equal to $25.00 per hour for central heat
and
air conditioning services that are provided to Tenant during other
than
Normal Business Hours, which amount shall be due and payable upon
presentation of a statement therefor by Landlord. Tenant
acknowledges that the foregoing hourly rate includes certain
administrative expenses of Landlord in administering such after hour
services and an allocation for the additional wear and tear on the
Building HVAC system attributable to the additional use of such system
and
only that portion of such hourly rate that equals the actual amount
charged by the electric utility supplier will be included in the
calculation of Operating Expenses for the purpose of determining
Tenant's
obligations under Section 6(a)
above.
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(b)
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Routine
maintenance and electric lighting service of all Common Areas and
Service
Areas of the Building in the manner and to the extent deemed by Landlord
to be standard.
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(c)
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Janitor
service, five times weekly, exclusive of normal business holidays;
provided, however, if Tenant's floor covering or other improvements
require special treatment, Tenant shall pay the additional cleaning
cost
attributable thereto as additional rent upon presentation of a statement
therefor by Landlord.
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(d)
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Subject
to the provisions of Section 12, all electrical current required
by Tenant
in its use and occupancy of the
Premises.
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(e)
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All
Building standard fluorescent bulb replacement in the Premises and
fluorescent and incandescent bulb replacement in the Common Areas
and
Service Areas.
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(f)
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[Intentionally
deleted].
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(g)
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Security
in the form of limiting the general public's access to the Building
during
other than Normal Business Hours shall be provided in such form as
Landlord deems appropriate. Landlord, however, shall have no
liability to Tenant, its employees, agents, invitees or licensees
for
losses due to theft or burglary, or for damages done by unauthorized
persons on the Premises and neither shall Landlord be required to
insure
against any such losses. Tenant shall cooperate fully in
Landlord's efforts to maintain security in the Building and shall
follow
all regulations promulgated by Landlord with respect
thereto.
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The
failure by Landlord to any extent to furnish or the interruption or termination
of the services described above in whole or in part, resulting from causes
beyond the reasonable control of Landlord shall not render Landlord liable
in
any respect nor be construed as an eviction of Tenant, nor work as an abatement
of rent, nor relieve Tenant from the obligation to fulfill any covenant or
agreement hereof. Should any of the equipment or machinery used in
the provision of such services for any cause cease to function properly, Tenant
shall have no claim for offset or abatement of rent or damages on account of
an
interruption in service occasioned thereby or resulting therefrom.
8.
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IMPROVEMENTS
TO THE PREMISES.Exhibit
"C"
attached hereto sets forth the obligations of Landlord and Tenant
with
respect to the initial tenant finish-work for the Premises. Any
additional installations, alterations and improvements hereafter
placed on
the Premises shall be for Tenant's account and at Tenant's cost,
subject,
however, to Section 11 below.
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9.
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MAINTENANCE
AND REPAIR OF PREMISES BY LANDLORD. Except as otherwise
expressly provided herein, Landlord shall not be required to make
any
repairs to the Premises. In the event that the Premises should
become in need of repairs or maintenance required to be made by Landlord
under this Lease, Tenant shall give written notice thereof to Landlord;
and Landlord shall not be responsible in any way for any failure
to make
any such repairs until a reasonable time shall have elapsed after
the
receipt by Landlord of such written
notice.
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10.
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CARE
OF THE PREMISES BY TENANT. Tenant agrees not to commit or
allow any waste to be committed on any portion of the Premises, and
at the
termination of this Lease to deliver up the Premises to Landlord
in as
good condition as the same existed on the Commencement Date, ordinary
wear
and tear excepted.
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11.
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REPAIRS
AND ALTERATIONS BY TENANT. Tenant shall maintain the
Premises in a clean, safe, operable, attractive condition, and shall
not
permit or allow to remain any waste or damage to any portion of the
Premises. Tenant covenants and agrees with Landlord, at
Tenant's own cost and expense, to repair or replace any damage done
to the
Building, or any part thereof, caused by Tenant or Tenant's agents,
employees, invitees, or visitors, and such repairs shall restore
the
Building to as good a condition as it was in prior to such damage,
and
shall have been completed in compliance with all applicable laws;
provided, however, if Tenant fails to make such repairs or replacements
promptly, Landlord may, at its option, make such repairs or replacements,
and Tenant shall pay the cost thereof (plus a reasonable fee for
Landlord's supervision of such repairs or replacements) to the Landlord
on
demand as additional rent. Tenant agrees with Landlord not to
make or allow to be made any alterations to the Premises, or install
any
vending machines on the Premises without first obtaining the written
consent of Landlord in each such instance, which consent may be given
on
such conditions as Landlord may elect. Tenant must obtain all
permits and comply with applicable laws. Improvements to the Premises
shall be installed at the expense of Tenant only in accordance with
plans
and specifications which have been previously submitted to and approved
in
writing by Landlord. After the initial Tenant improvements are
made, no alterations or physical additions in or to the Premises
may be
made without Landlord's prior written consent. Tenant shall not
paint or install lighting or decorations, signs, window or door lettering,
or advertising media of any type on or about the Premises without
the
prior written consent of Landlord. All alterations,
additions, or improvements (whether temporary or permanent in character,
and including without limitation all air-conditioning equipment and
all
other equipment that is in any manner connected to the Building's
plumbing
system) made in or upon the Premises, either by Landlord or Tenant,
shall
be Landlord's property at the end of the Lease Term and shall remain
on
the Premises without compensation to Tenant. Approval by
Landlord of any of Tenant's drawings and plans and specifications
prepared
in connection with any improvements in the Premises shall not constitute
a
representation or warranty of Landlord as to the adequacy or sufficiency
of such drawings, plans and specifications, or the improvements to
which
they relate, for any use, purpose, or condition, but such approval
shall
merely be the consent of Landlord as required hereunder. Any and
all
alterations to the Premises shall become the property of Landlord
upon
termination of this Lease (except for movable equipment, trade fixtures,
or furniture owned by Tenant). Landlord may, nonetheless,
require Tenant to remove any and all fixtures, equipment and other
improvements installed on the Premises. In the event that
Landlord so elects, and Tenant fails to remove such improvements,
Landlord
may remove such improvements at Tenant's cost, and Tenant shall pay
Landlord on demand the cost of restoring the Premises to Building
standard.
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12.
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USE
OF ELECTRICAL SERVICES BY TENANT. Tenant's use of
electrical services furnished by Landlord shall be subject to the
following:
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(a)
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Tenant's
electrical equipment and overhead lighting shall be restricted to
equipment and lighting which does not have either a rated capacity
or an
electrical design load greater than that which is standard for the
Building. Tenant shall be responsible for determining that its
electrical equipment and overhead lighting have rated capacities
and
design loads within those limits which are standard for the
Building.
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(b)
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If
Tenant's consumption of electrical services exceeds either the rated
capacities and/or design loads that are standard for the Building,
then
Tenant shall remove such equipment and/or lighting to achieve compliance
within 10 days after receiving notice from Landlord. Or upon
receiving Landlord's prior written approval, such equipment and/or
lighting may remain in the Premises, subject to the
following:
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(i)
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Tenant
shall pay for all costs of installation and maintenance of submeters,
wiring, air conditioning and other items required by Landlord, in
Landlord's discretion, to accommodate Tenant's excess design loads
and
capacities.
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(ii)
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Tenant
shall pay to Landlord, upon demand, the cost of the excess demand
and
consumption of electrical service at rates determined by Landlord
which
shall be in accordance with any applicable
laws.
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(iii)
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Landlord
may, at its option, upon not less than thirty (30) days' prior written
notice to Tenant, discontinue the availability of such extraordinary
utility service. If Landlord gives any such notice, Tenant will
contract directly with the public utility for the supplying of such
utility service to the Premises.
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13.
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PARKING. Tenant
shall have the non-exclusive right to use, at no charge, one parking
space
for every 333 square feet of Rentable Area in the Premises, of which
3 of
such spaces shall be reserved covered spaces and the balance shall
be
uncovered. Tenant's uncovered parking spaces shall not
be reserved spaces and shall be available to Tenant and its employees
on a
first come/first serve basis along with other tenants of the
Building.
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14.
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LAWS
AND REGULATIONS. Tenant agrees to comply with all
applicable laws, ordinances, rules, and regulations of any governmental
entity or agency having jurisdiction over the
Premises.
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15.
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BUILDING
RULES. Tenant will comply with the rules of the Building
and the Property attached hereto as Exhibit "D", as amended and
altered by Landlord from time to time, and will cause all of its
agents,
employees, invitees and visitors to so comply. Landlord may, from
time to
time, change such rules and regulations for the safety, care, or
cleanliness of the Building and related facilities, provided that
such
changes are applicable to all tenants of the Building and will not
unreasonably interfere with Tenant's use of the
Premises.
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16.
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ENTRY
BY LANDLORD. Tenant agrees to permit Landlord or its agents
or representatives to enter into and upon any part of the Premises
during
ordinary business hours, or at such other times as Landlord deems
appropriate to inspect the same, or to show the Premises to prospective
purchasers, mortgagees, or insurers, to clean or make repairs, alterations
or additions thereto, and Tenant shall not be entitled to any abatement
or
reduction of rent by reason
thereof.
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17.
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ASSIGNMENT
AND SUBLETTING.
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(a)
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Tenant
shall not assign, sublease, transfer or encumber this Lease or any
interest therein (any assignment, sublease, transfer, or encumbrance
is
referred to herein as a "Transfer") without Landlord's prior
written consent, which consent shall be given or withheld in the
exercise
of Landlord’s commercially reasonable judgment). If Tenant
requests Landlord's consent to a Transfer, then Tenant shall provide
Landlord with a written description of all terms and conditions of
the
proposed Transfer, copies of the proposed documentation, and the
following
information about the proposed transferee: name and address; reasonably
satisfactory information about its business and business history;
its
proposed use of the Premises; banking, financial, and other credit
information; and general references sufficient to enable Landlord
to
determine the proposed transferee's creditworthiness and character
(such
request for consent and accompanying information is referred to herein
as
the "Consent Request Package"). The Consent Request
Package shall be delivered to Landlord in a container that is marked
conspicuously on the front cover: "TIME SENSITIVE MATERIAL-IMMEDIATE
RESPONSE REQUIRED". Tenant shall reimburse Landlord for its
attorneys' fees and other expenses incurred in connection with considering
any request for its consent to a Transfer (limited to $250 per
request). If Landlord consents to a proposed Transfer, then the
proposed transferee shall deliver to Landlord a written agreement
whereby
it expressly assumes the Tenant's obligations hereunder (other than
Tenant's obligation to pay Base Rental under this Lease if the transferee
is a sublessee); however, any transferee of less than all of the
space in
the Premises shall be liable only for obligations under this Lease
that
are properly allocable to the space subject to the Transfer, and
only to
the extent of the rent it has agreed to pay Tenant
therefor. Landlord's consent to a Transfer shall not release
Tenant from performing its obligations under this Lease, but rather
Tenant
and its transferee shall be jointly and severally liable
therefor. Landlord's consent to any Transfer shall not waive
Landlord's rights as to any subsequent Transfers. If an Event
of Default occurs while the Premises or any part thereof are subject
to a
Transfer, then Landlord, in addition to its other remedies, may collect
directly from such transferee all rents becoming due to Tenant and
apply
such rents against Rent. Tenant authorizes its transferees to
make payments of rent directly to Landlord upon receipt of written
notice
from Landlord to do so. Landlord shall, within ten (10)
business days after its receipt of the Consent Request Package, notify
Tenant in writing either (i) that Landlord consents to the proposed
Transfer, or (ii) that Landlord does not consent to the proposed
Transfer
and in such rejection notice identify the reasons for Landlord's
decision
not to consent to such Transfer. If Landlord fails to provide
Tenant with the written notice described in the preceding
sentence
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-50-
within
such 10-business day period, Landlord shall be conclusively deemed to have
consented to the proposed Transfer.
(b) With
respect to any assignment and any subletting, Tenant shall pay to Landlord,
immediately upon receipt thereof, one-half of all net compensation received
by
Tenant for such Transfer that exceeds the Base Rental allocable to the portion
of the Premises covered thereby.
(c)
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If no Event of Default has occurred and is continuing, Tenant may
assign
this Lease without the prior written consent of Landlord to a parent,
subsidiary or affiliate of Tenant or to an acquirer of substantially
all
of the assets of Tenant; provided that (i) Tenant shall have notified
Landlord in writing prior to such assignment of its intent to effect
the
same, (ii) at the time thereof no Event of Default has occurred and
is
continuing, (iii) with respect to a transferee that is acquiring
substantially all of the assets of Tenant, Landlord has received
evidence
reasonably acceptable to Landlord that the transferee has
the financial wherewithal and creditworthiness to satisfy
Tenant’s remaining obligations under this Lease, and (iv) the proposed
transferee shall deliver to Landlord a written agreement whereby
it
expressly assumes all of the Tenant's obligations under this Lease
(an
assignment that satisfies the requirements of this paragraph (c)
is
referred to herein as a "Permitted
Transfer").
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18.
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LIENS. Tenant
will not permit any mechanic's lien or liens to be placed upon the
Premises or the Building and nothing in this Lease shall be deemed
or
construed in any way as constituting the consent or request of Landlord,
express or implied, by inference or otherwise, to any person for
the
performance of any labor or the furnishing of any materials to the
Premises, or any part thereof, nor as giving Tenant any right, power,
or
authority to contract for or permit the rendering of any services
or the
furnishing of any materials that would give rise to any mechanics'
or
other liens against the Premises. In the event any such lien is
attached to the Premises, then, in addition to any other right or
remedy
of Landlord, Landlord may, but shall not be obligated to, discharge
the
same. Any amount paid by Landlord for any of the aforesaid
purposes shall be paid by Tenant to Landlord on demand as additional
rent. Landlord may require, at Landlord's sole option, that
Tenant shall provide to Landlord, at Tenant's sole cost and expense,
a
performance and payment bonds in an amount equal to one and one-half
(1-1/2) times the estimated cost of any improvements, additions,
or
alterations in the Premises which the Tenant desires to make to insure
Landlord against any liability for mechanic's liens and materialman's
liens and to insure completion of the work. Tenant shall comply
with this Section with respect to any repairs, improvements or alterations
to the Premises that are otherwise permitted by Section 11
above.
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19.
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PROPERTY
INSURANCE. Landlord shall maintain fire and extended
coverage insurance on the Building and the Premises in such amounts
as
Landlord's mortgagees shall require. Such insurance shall be
maintained at the expense of Landlord (as a part of the Insurance
Costs),
and payments for losses thereunder shall be made solely to Landlord
or the
mortgagees of Landlord as their interests shall appear. Tenant
shall maintain at its expense, in an amount equal to full replacement
cost, fire and extended coverage insurance on all of
its
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-51-
personal
property, including removable trade fixtures, located in the Premises and in
such additional amounts as are required to meet Tenant's obligations pursuant
to
Section 23
hereof. Tenant
shall, at Landlord's request from time to time, provide Landlord with current
certificates of insurance evidencing Tenant's compliance with this Section
19
and Section 20. Tenant shall obtain the agreement of Tenant's
insurers to notify Landlord that a policy is due to expire at least 30 days
prior to such expiration.
20.
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LIABILITY
INSURANCE.
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(a) Tenant
shall keep in force throughout the Term: (i) a Commercial General
Liability insurance policy or policies to protect the Landlord Entities
against any liability to the public or to any invitee of tenant or a Landlord
Entity incidental to the use of or resulting from any accident occurring in
or
upon the Premises with a limit of not less than $1,000,000.00 per occurrence
and
not less than $2,000,000.00 in the annual aggregate, or such larger amount
as
Landlord may prudently require from time to time, covering bodily injury and
property damage liability and $1,000,000 products/completed operations
aggregate; (ii) Business Auto Liability covering owned, non-owned and
hired vehicles with a limit of not less than $1,000,000 per accident; (iii)
insurance protecting against liability under Worker’s Compensation Laws
with limits at lease as required by statue; (iv) Employers Liability with limits
of $500,000 each accident, $500,000 disease policy limit, $500,000 disease-each
employee; (v) All Risk or Special Form coverage protecting Tenant against
loss of or damage to Tenant’s alterations, additions, improvements, carpeting,
floor coverings, paintings, decorations, fixtures, inventory and other business
personal property located in or about the Premises to the full replacement
value
of the property so insured; and (vi) Business Interruption Insurance with
limit of liability representing loss of at lease approximately six months of
income.
(b) Each
of the aforesaid policies shall (i) be provided at Tenant’s expense; (ii) name
the Landlord and the building management company, if any, as additional
insureds; (iii) be issued by an insurance company with a minimum Best’s rating
of “A:VII” during the Term; and (iv) provide that said insurance shall not be
cancelled unless thirty (30) days prior written notice (ten days for nonpayment
of premium) shall have been given to Landlord; and said policy or policies
or
certificates thereof shall be delivered to Landlord by Tenant upon the
Commencement Date and at lease thirty (30) days prior to each renewal of said
insurance.
(c) Whenever
Tenant shall undertake any alterations, additions or improvements in, to or
about the Premises (“Work”) the aforesaid insurance protection must
extend to and include injuries to persons and damage to property arising in
connection with such Work, without limitation including liability under any
applicable structural work, act, and such other insurance as Landlord shall
require; and the policies of or certificates evidencing such insurance must
be
delivered to Landlord prior to the commencement of any such Work.
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-52-
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(d)
|
Landlord
may maintain a policy of comprehensive general liability insurance
with
respect to the Property and the costs of such insurance shall be
included
in the Insurance Costs.
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21.
|
INDEMNITY.
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(a)
|
Landlord
shall not be liable to Tenant, or to Tenant's agents, servants, employees,
customers, or invitees for any injury to person or damage to property
caused by any act, omission, or neglect of Tenant, its agents, servants,
or employees, invitees, licensees or any other person entering the
Property under the invitation of Tenant or arising out of the use
of the
Premises by Tenant and the conduct of its business or out of a default
by
Tenant in the performance of its Subject to Section 22 below, Tenant
hereby agrees to defend, indemnify, and hold harmless Landlord and
its
agents from and against all claims, demands, liabilities, causes
of
action, suits, judgments, and expenses (including attorneys' fees)
for any
injury to or death of any person or persons or the damage to or theft,
destruction, loss, or loss of use of any property (a "Loss")
arising from any occurrence on the Premises or from Tenant's failure
to
perform its obligations under this Lease (other than a Loss arising
from
the sole or gross negligence of Landlord or its agents), even though
caused or alleged to be caused by the joint, comparative, or concurrent
negligence or fault of Landlord or its agents, and even though any
such
claim, cause of action, or suit is based upon or alleged to be based
upon
the strict liability of Landlord or its agents. This
indemnity provision is intended to indemnify Landlord and its agents
against the consequences of their own negligence or fault as provided
above when Landlord or its agents are jointly, comparatively, or
concurrently negligent with Tenant. This indemnity
provision shall survive termination or expiration of this
Lease.
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|
(b)
|
Subject
to Section 22 below, Landlord hereby agrees to defend, indemnify,
and hold
harmless Tenant and its agents from and against all claims, demands,
liabilities, causes of action, suits, judgments, and expenses (including
attorneys' fees) for any Loss arising from any occurrence in the
Common
Areas and other areas of the Property that are not leased to other
tenants
or from Landlord's failure to perform its obligations under this
Lease
(other than a Loss arising from the sole or gross negligence of Tenant
or
its agents). This indemnity provision shall survive
termination or expiration of this
Lease.
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22.
|
WAIVER
OF SUBROGATION RIGHTS. Anything in this Lease to the
contrary notwithstanding, Landlord and Tenant each hereby waives
any and
all rights of recovery, claim, action, or cause of action, against
the
other, its agents, officers, or employees, for any loss or damage
that may
occur to the Property, the Premises, or any improvements thereto,
or
|
-53-
the
Building of which the Premises are a part, or any improvements thereto, or
any
personal property of such party therein, by reason of fire, the elements, or
any
other causes(s) which are insured against under the terms of the standard fire
and extended coverage insurance
policies
referred to in Section 19 hereof, regardless of cause or origin, including
negligence of the other party hereto, its agents, officers, or
employees. Each of Landlord and Tenant also agrees that no right of
recovery, claim, action or cause of action hereby waived shall ever be assigned
to its insurance carriers.
23.
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CASUALTY
DAMAGE. If the Premises or any part thereof shall be
damaged by fire or other casualty, Tenant shall give prompt written
notice
thereof to Landlord. If Landlord determines, in Landlord's good
faith business judgment, that the damage by fire or other casualty
precludes occupancy of any substantial part of the Premises, or if
the
Building is so damaged that in Landlord's judgment, substantial alteration
or reconstruction of the Building is required (whether or not the
Premises
have been damaged by the casualty), or if any mortgagee of the Property
requires application of the insurance proceeds to the reduction of
the
mortgage debt, or if any material uninsured loss occurs, or if such
casualty occurs during the last two years of the Lease Term, Landlord
may,
at its option, terminate this Lease by notifying Tenant within 60
days
after the date of the casualty. If Landlord does not elect to
terminate this Lease, it shall, within 60 days after the date of
the
casualty, notify Tenant of that decision and of the estimated repair
time. If the damage reasonably precludes occupancy of any
substantial part of the Premises and if the estimated repair time
to
restore that part of the Premises to a condition that reasonably
permits
occupancy will extend beyond one year after the date of the casualty,
Tenant may elect to terminate this Lease by so notifying Landlord
within
10 days after receipt of notice of Landlord's decision not to terminate
this Lease. If Landlord elects not to terminate this Lease (or
if Landlord is not entitled to terminate this Lease if Tenant has
the
option under the preceding sentence), Landlord shall restore the
Building
to substantially its former condition as soon as reasonably
possible. Landlord shall not, however, be required to restore
any part of the Building in excess of the Building Standard Improvements
unless the proceeds of Tenant's fire and extended coverage insurance
are
made available to Landlord for that purpose, or to spend any amount
in
excess of the insurance proceeds actually received by Landlord as
a result
of the casualty. Provided the fire or other casualty was not
caused to any extent by the act or omission of Tenant or its employees,
agents or contractors, Landlord shall allow Tenant a fair reduction
of
rent during the time and to the extent the Premises are unfit for
occupancy. If the Premises or any other portion of the Building
be damaged by fire or other casualty resulting from the fault or
negligence of Tenant or any of Tenant's agents, employees, or invitees,
the rent hereunder shall not be diminished during the repair of such
damage and Tenant shall be liable to Landlord for the cost of the
repair
and restoration of the Building caused thereby to the extent such
cost and
expense is not covered by insurance
proceeds.
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-54-
24.
|
CONDEMNATION. If
the whole or substantially the whole of the Building or the Premises
should be taken for any public or quasi-public use, by right of eminent
domain or otherwise, or should be sold in lieu of condemnation, then
this
Lease shall terminate as of the date when physical possession of
the
Building or the Premises is taken by the condemning authority. If
less
than the whole or substantially the whole of the Building or the
Premises
is thus taken or sold, Landlord (whether or not the Premises are
affected
thereby) may terminate this Lease
|
by
giving written notice thereof to Tenant, in which event this Lease shall
terminate as of the date when physical possession of such portion of the
Building or Premises is taken by the condemning authority. If this
Lease is not so terminated upon any such taking or sale, the Base Rental payable
hereunder shall be diminished by an equitable amount, and Landlord shall, to
the
extent Landlord deems feasible, restore the Building and the Premises to
substantially their former condition, but such work shall not exceed the scope
of the work done by Landlord in originally constructing the Building and
installing Building Standard Improvements in the Premises, nor shall Landlord
in
any event be required to spend for such work an amount in excess of the amount
received by Landlord as compensation for such damage. All amounts awarded upon
a
taking of any part or all of the Property or the Premises shall belong to
Landlord and Tenant shall not be entitled to and expressly waives all claim
to
any such compensation.
25.
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DAMAGES
FROM CERTAIN CAUSES. Landlord shall not be liable to Tenant
for any loss or damage to any property or person occasioned by theft,
vandalism, misconduct of persons other than Landlord, fire, act of
God,
public enemy, injunction, riot, strike, insurrection, war, court
order,
requisition, or order of governmental body or authority or by any
other
cause beyond the control of Landlord. Nor shall Landlord be
liable for any damage or inconvenience which may arise through repair
or
alteration of any part of the Building or
Premises.
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26.
|
EVENTS
OF DEFAULT/REMEDIES.
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(a)
|
The
following events shall be deemed to be events of default by Tenant
under
this Lease:
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|
(i)
|
Tenant's
failure to pay rent, or any other sums due from Tenant to Landlord
under
the Lease (or any other lease executed by Tenant for space in the
Building), when due;
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(ii)
|
Tenant's
failure to perform, comply with, or observe any other agreement or
obligation of Tenant under this Lease (or any other lease executed
by
Tenant for space in the Building);
|
|
(iii)
|
the
leasehold estate hereunder demised shall be taken on execution or
other
process of law in any action against
Tenant;
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-55-
|
(iii)
|
Tenant
shall fail to promptly move into and take possession of the Premises
when
the Premises are ready for occupancy or shall cease to do business
in or,
abandons or vacates any substantial portion of the
Premises;
|
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(iv)
|
Tenant
shall become insolvent or unable to pay its debts as they become
due, or
Tenant notifies Landlord that it anticipates either
condition;
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(v)
|
Tenant
takes any action to, or notifies Landlord that Tenant intends to
file a
petition under any section or chapter of the National Bankruptcy
Act, as
amended, or under any similar law or statute of the United States
or any
State thereof; or a petition shall be filed against Tenant under
any such
statute or Tenant or any creditor of Tenant's notifies Landlord that
it
knows such a petition will be filed or Tenant notifies Landlord that
it
expects such a petition to be
filed;
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(vi)
|
a
receiver or trustee shall be appointed for Tenant's leasehold interest
in
the Premises or for all or a substantial part of the assets of Tenant;
or
|
|
(b)
|
Upon
the occurrence of any event or events of default by Tenant, whether
enumerated in paragraph (a) above or not, Landlord shall have the
option to pursue any one or more of the following remedies without
any
notice or demand for possession whatsoever (and without limiting
the
generality of the foregoing, Tenant hereby specifically waives notice
and
demand for payment of rent or other obligations due and waives any
and all
other notices or demand requirements imposed by applicable
law):
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(i)
|
terminate
this Lease in which event Tenant shall immediately surrender the
Premises
to Landlord;
|
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(ii)
|
terminate
Tenant's right to occupy the Premises and re-enter and take possession
of
the Premises (without terminating this
Lease);
|
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(iii)
|
enter
upon the Premises and do whatever Tenant is obligated to do under
the
terms of this Lease; and Tenant agrees to reimburse Landlord on demand
for
any expenses which Landlord may incur in effecting compliance with
Tenant's obligations under this Lease, and Tenant further agrees
that
Landlord shall not be liable for any damages resulting to the Tenant
from
such action;
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(iv)
|
terminate
Tenant's rights, if any, to cancel this Lease, to expand into additional
space in the Building, to exercise any renewal, extension and rights
of
first refusal or first offer to lease additional space or purchase
the
Building;
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-56-
(v)
|
exercise
any remedies that may be available under the Partnership Agreement
as a
result of a default by Tenant thereunder or hereunder;
and
|
(vi)
|
exercise
all other remedies available to Landlord at law or in equity, including,
without limitation, injunctive relief of all
varieties.
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In
the event Landlord elects to re-enter or take possession of the Premises after
Tenant's default, Tenant hereby waives notice of such reentry or repossession
and of Landlord's intent to re-enter or retake possession. Landlord
may, without prejudice to any other remedy which he may have for possession
or
arrearages in rent, expel or remove Tenant and any other person who may be
occupying said Premises or any part thereof. In addition, the
provisions of Section 28 hereof, shall apply with respect to the period from and
after the giving of notice of such termination to Tenant. All
Landlord's remedies shall be cumulative and not exclusive. In the
event of any such default or breach by Tenant, Landlord may at any time
thereafter, in his sole discretion, with or without notice or demand and without
limiting Landlord in the exercise of a right or remedy which Landlord may have
by reason of such default or breach, be entitled to recover from Tenant all
damages incurred by Landlord by reason of Tenant's default including, but not
limited to: the cost of recovering possession of the Premises;
expenses of reletting, including necessary renovation and alteration of the
Premises; reasonable attorney's fees; the amount of the excess of (i) the total
rental and other benefits which Landlord would have received under this Lease
for the remainder of the term together with all other expenses incurred by
Landlord in connection with Tenant's default and (ii) the fair market value
rental rate of the balance of the term as of the time of the breach or default;
that portion of any leasing commission paid by Landlord with respect to this
Lease applicable to the unexpired term of this Lease by amortizing such
commission over the Lease Term; and all other sums of money and damages owing
by
Tenant to Landlord. Unpaid installments of rent or other sums shall
bear interest from the date due at the lesser of the maximum legal rate or
Prime
Rate of the Bank of America, N.A. (or successor) plus 3%, plus late charges
on
the rent as noted in Section 5(b). Forbearance by Landlord to enforce
one or more of the remedies herein provided upon an event of default shall
not
be deemed or construed to constitute a waiver of such default.
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(c)
|
To
the extent Landlord has a duty to mitigate Tenant’s damages as a result of
Tenant’s default (notwithstanding the provisions of Section 35(r) to the
contrary), Landlord shall use reasonable efforts to relet the Premises
on
such terms and conditions as Landlord in its sole discretion may
determine
(including a term different from the Lease Term, rental concessions,
and
alterations to, and improvement of, the Premises); however, Landlord
shall
not be obligated to relet the Premises before leasing other portions
of
the Building. Landlord shall not be liable for, nor shall
Tenant's obligations hereunder be diminished because of, Landlord's
failure to relet the Premises or to collect rent due for such
reletting. Tenant shall not be entitled to the excess of any
consideration obtained by reletting over the rent
due
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-57-
hereunder. Reentry
by Landlord in the Premises shall not affect Tenant's obligations hereunder
for
the unexpired Lease Term; rather, Landlord may, from time to time, bring action
against Tenant to collect amounts due by Tenant, without the necessity of
Landlord's waiting until the expiration of the Lease Term. Unless
Landlord delivers written notice to Tenant expressly stating that it has elected
to terminate this
Lease,
all actions taken by Landlord to exclude or dispossess Tenant of the Premises
shall be deemed to be taken under Section 26(b)(ii) above. If
Landlord elects to proceed under Section 26(b)(ii) or (iii), it may at any
time
elect to terminate this Lease under Section 26(b)(i) above.
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(d)
|
Additionally,
without notice, Landlord may alter locks or other security devices
at the
Premises to deprive Tenant of access thereto, and Landlord shall
not be
required to provide a new key or right of access to
Tenant.
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(e)
|
This
Section 26 shall be enforceable to the maximum extent not prohibited
by
applicable law, and the unenforceability of any portion thereof shall
not
thereby render unenforceable any other portion. Upon any event
of default by Tenant, Tenant shall pay to Landlord all costs incurred
by
Landlord (including court costs and reasonable attorneys' fees and
expenses) in (i) obtaining possession of the Premises, (ii) removing
and
storing Tenant's or any other occupant's property, (iii) repairing,
restoring, altering, remodeling, or otherwise putting the Premises
into
condition acceptable to a new tenant, (iv) if Tenant is dispossessed
of
the Premises and this Lease is not terminated, reletting all or any
part
of the Premises (including brokerage commissions, cost of tenant
finish
work, and other costs incidental to such reletting), (v) performing
Tenant's obligations which Tenant failed to perform, and (vi) enforcing,
or advising Landlord of, its rights, remedies, and recourses arising
out
of the event of default.
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(f)
|
In
the event Tenant becomes indebted to Landlord for any amounts owed
under
this Lease (whether or not Landlord has elected to formally declare
a
default under this Lease) that are not paid when due (in each case,
a
"Delinquent Sum"), Tenant hereby expressly authorizes Landlord to
withhold from Tenant the payment of any dividend or distribution on
or with respect to its partnership interest in Landlord, and any
other
payment with respect to such partnership interests made by or on
behalf of
Landlord or any partner thereof and to apply the amounts so withheld
against Delinquent Sums (including any late charges and interest
applicable thereto) until such amounts have been fully paid and
discharged. The provisions of this paragraph (f) shall not
apply after Fairways 2001 Office Partners, Ltd. transfers the Property
to
a third party in which Tenant owns no
interest.
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(g)
|
Landlord's
acceptance of rent following an event of default shall not waive
Landlord's rights regarding such event of default. No waiver by
Landlord of any violation or breach of any of the terms contained
herein
shall waive Landlord's rights regarding any future violation of such
term
or violation of any other term.
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-58-
(h)
|
Landlord
shall be in default hereunder in the event Landlord has not begun
and
pursued with reasonable diligence the cure of any failure of Landlord
to
meet its obligations hereunder within thirty (30) days of the receipt
by
Landlord of written notice from Tenant of the alleged failure to
perform. In addition, Tenant hereby covenants that, prior to
the exercise of any such remedies, it will give the mortgagees holding
mortgages on the Property notice and a reasonable time to cure any
default
by Landlord. Tenant's obligation to pay rent is an independent
covenant, and the occurrence of a default by Landlord shall not entitle
Tenant to withhold rent or offset alleged damages against
rent.
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27.
|
PEACEFUL
ENJOYMENT. Provided Tenant has performed all of the terms
and conditions of this Lease to be performed by Tenant, Tenant shall
peaceably and quietly hold and enjoy the Premises for the Lease Term,
without hindrance from Landlord or any party claiming by, through,
or
under Landlord, subject to the terms and conditions of this
Lease.
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28.
|
HOLDING
OVER. In the event of holding over by Tenant after
expiration or other termination of this Lease or in the event Tenant
continues to occupy the Premises after the termination of Tenant's
right
of possession pursuant to Section 26(b) hereof, Tenant shall be a
tenant
at will and, in addition to all other damages and remedies to which
Landlord may be entitled for such holding over, throughout the entire
holdover period, Tenant shall pay rent equal to 150% of the Base
Rental
and additional Base Rental which would have been applicable had the
term
of this Lease continued through the period of such holding over by
Tenant
and, in addition to such rent, Tenant shall be liable to Landlord
for any
damages suffered or incurred by Landlord as a result of Tenant's
holdover. No holding over by Tenant after the expiration of the
term of this Lease shall be construed to extend the term of this
Lease.
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29.
|
SUBORDINATION
TO MORTGAGE.
|
|
(a)
|
Tenant
accepts this Lease subject and subordinate to any mortgage, deed
of trust
or other lien presently existing or hereafter arising upon the Premises,
upon the Building or upon the Property as a whole, and to any renewals,
refinancing and extensions thereof, but Tenant agrees that any such
mortgagee shall have the right at any time to subordinate such mortgage,
deed of trust or other lien to this Lease on such term and subject
to such
conditions as such mortgagee may deem appropriate in its
discretion. Landlord is hereby irrevocably vested with full
power and authority to subordinate this Lease to any mortgage, deed
of
trust or other lien now existing or hereafter placed upon the Premises,
the Building or the Property as a whole, and Tenant agrees upon demand
to
execute such further instruments subordinating this Lease (or such
mortgage to this Lease) or attorning to the holder of any such liens
as
Landlord may request. In the event that Tenant should fail to
execute any such instrument promptly as requested, Tenant hereby
irrevocably constitutes Landlord as its attorney-in-fact
to
|
-59-
execute
such instrument in Tenant's name, place and stead, it being agreed that such
power is one coupled with an interest. Tenant agrees that it will
from time to time upon request by Landlord execute and deliver to such persons
as Landlord shall request a statement in recordable form certifying that this
Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so modified),
stating the dates to which rent and other charges payable under this Lease
have
been paid, stating that Landlord is not in default hereunder (or if Tenant
alleges a default stating the nature of such alleged default) and further
stating such other matters as Landlord shall reasonably require.
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(b)
|
Nothing
contained in this Section 29, however, shall be construed to impose
upon Tenant any legal or financial obligation nor require Tenant
to
effectuate such a subordination unless, in the latter circumstance,
the
mortgagee, trust holder, secured party, or beneficiary named in the
pertinent instrument shall first agree in writing that any proceeding
to
foreclose, sell, or any other action taken under such instrument
shall not
effect this Lease or any of the rights of Tenant hereunder for so
long as
Tenant shall not be held in default by Landlord of any of the provisions,
covenants or conditions of the Lease, and shall continue to make
the
payments required hereunder to the appropriate designated
party.
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30.
|
SIGNAGE. Landlord
reserves full right of approval and rejection of any and all of Tenant's
signs on the Premises, which approval will not be unreasonably
withheld.
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31.
|
PERSONAL
LIABILITY. The liability of Landlord to Tenant for any
default by Landlord under the terms of this Lease shall be limited
to
Landlord's interest in the Building and the Property, and Tenant
agrees to
look solely to Landlord's interest in the Building and the Property
for
recovery of any judgment from Landlord, it being intended that Landlord
shall not be personally liable for any judgment or
deficiency.
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31.
|
COMMISSIONS. Landlord
and Tenant hereby indemnify and hold each other harmless against
any loss,
claim, expense or liability with respect to any commissions or brokerage
fees claimed on account of the execution and/or renewal of this Lease
due
to any action of the indemnifying
party.
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33.
|
RIGHTS
RESERVED TO LANDLORD. Provided that the exercise of such
rights does not unreasonably interfere with Tenant's occupancy of
the
Premises, Landlord shall have the following
rights:
|
(i) To
decorate and to make inspections, repairs, alterations, additions, changes,
or
improvements, whether structural or otherwise, in and about the Building, or
any
part thereof; for such purposes, to enter upon the Premises and, during the
continuance of any such work, to temporarily close doors, entryways, public
space, and corridors in the Building; to interrupt or temporarily suspend
Building services and facilities; and to change the
-60-
arrangement
and location of entrances or passageways, doors, and doorways, corridors,
stairs, restrooms, or other public parts of the Building;
(ii) To
take such reasonable measures as Landlord deems advisable for the security
of
the Building and its occupants, including without limitation searching all
persons entering or leaving the Building; evacuating the Building for cause,
suspected cause, or for drill purposes; temporarily denying access to the
Building; and closing the Building after normal business hours and on Saturdays,
Sundays, and holidays, subject, however, to Tenant's right to enter when the
Building is closed after normal business hours under such reasonable
regulations as Landlord may prescribe from time to time which may include
by way of example, but not of limitation, that persons entering or leaving
the
Building, whether or not during normal business hours, identify themselves
to a
security officer by registration or otherwise and that such persons establish
their right to enter or leave the Building;
(iii) To
change the name by which the Building is designated; and
(iv) To
enter the Premises at all reasonable hours to show the Premises to prospective
purchasers, lenders, or tenants.
34.
|
GENERAL
PROVISIONS.
|
|
(a)
|
Attorney's
Fees. In the event either party defaults in the performance
of any of the terms of this Lease and the other party employs an
attorney
in connection therewith, the defaulting party agrees to pay the prevailing
party's reasonable attorneys' fees and court
costs.
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|
(b)
|
No
Implied Waiver. The failure of Landlord to insist at any
time upon the strict performance of any covenant or agreement herein,
or
to exercise any option, right, power or remedy contained in this
Lease
shall not be construed as a waiver or a relinquishment thereof for
the
future. No payment by Tenant or receipt by Landlord of a lesser
amount than the monthly installment of rent due under this Lease
shall be
deemed to be other than on account of the earliest rent due hereunder,
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.
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|
(c)
|
Notice. Any
notice in this Lease provided for must, unless otherwise expressly
provided herein, be in writing, and may, unless otherwise in this
Lease
expressly provided, be given or be served by depositing the same
in the
United States mail, postpaid and certified and addressed to the party
to
be notified, with return receipt requested, or by delivering the
same in
person to an officer of such party, or by prepaid telegram, or by
facsimile transmission, when appropriate, addressed to
the
|
-61-
party
to be notified at the address stated in this Lease or such other address notice
of which has been given to the other party. Notice deposited in the
mail in the manner hereinabove described shall be effective from and after
the
expiration of three (3) days after it is so deposited.
|
(d)
|
Severability. If
any term or provision of this Lease, or the application thereof to
any
person or circumstance shall, to any extent, be invalid or unenforceable
the remainder of this Lease, or the application of such term or provision
to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby, and each
term and
provision of this Lease shall be valid and enforceable to the fullest
extent permitted by law.
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|
(e)
|
Recordation. Tenant
agrees not to record this Lease, or any memorandum hereof. In
the event Landlord's first mortgagee may so require, Tenant agrees
to
execute a short form of this Lease for
recordation.
|
|
(f)
|
Governing
Law. This Lease and the rights and obligations of the
parties hereto shall be interpreted, construed, and enforced in accordance
with the laws of the State of
Texas.
|
|
(g)
|
Force
Majeure. Whenever a period of time is herein prescribed for
the taking of any action by Landlord, Landlord shall not be liable
or
responsible for, and there shall be excluded from the computation
of such
period of time, any delays due to strikes, riots, acts of God, shortages
of labor or materials, war, governmental laws, regulations or
restrictions, or any other cause whatsoever beyond the control of
Landlord.
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|
(h)
|
Time
of Performance. Except as expressly otherwise herein
provided, with respect to all required acts of Tenant, time is of
the
essence of this Lease.
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|
(i)
|
Transfers
by Landlord. Landlord shall have the right to transfer and
assign, in whole or in part, all its rights and obligations hereunder
and
in the Building and the property, and in such event and upon such
transfer
Landlord shall be released from any further obligations hereunder,
and
Tenant agrees to look solely to such successor in interest of Landlord
for
the performance of such
obligations.
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|
(j)
|
Effect
of Delivery of this Lease. Landlord has delivered a copy of
this Lease to Tenant for Tenant's review only, and the delivery hereof
does not constitute an offer to Tenant or option. This lease
shall not be effective until a copy executed by both Landlord and
Tenant
is delivered to and accepted by
Landlord.
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|
(k)
|
Mail. Tenant
understands and agrees that mail delivery in the Building shall be
only to
boxes provided by Landlord in the
Building.
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-62-
|
(l)
|
Waiver
of Warranties. For and in consideration of Landlord's
execution of this Lease, Tenant waives any implied or express warranties
of habitability, suitability, merchantability, quality, condition
or
fitness for a particular purpose with respect to the
Premises. In addition, the taking of possession of the Premises
by Tenant shall be conclusive evidence that Tenant has inspected
the
Premises and is thoroughly familiar with its condition, and Tenant
hereby
accepts the Premises as being in good and satisfactory condition
and
suitable for their intended commercial
purpose.
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|
(m)
|
Entire
Agreement. This Lease contains all of the terms, promises,
covenants, conditions and representations made or entered into between
Landlord and Tenant concerning the subject matter hereof, and supersedes
all prior discussions and agreements, whether written or oral, between
Landlord and Tenant with respect to the subject matter of this Lease
and
constitutes the sole and entire agreement between Landlord and Tenant
relating thereto.
|
(n)
|
Waiver
of Right To Contest Taxes. Tenant hereby waives any
right it may have under Section 41.413 of Texas Tax Code to protest
the
appraised value of all or any portion of the Premises and the Building,
and any right it may have under Section 42.015 of the Texas Tax Code
to
appeal an order of the appraisal review board with respect to all
or any
portion of the Premises and/or the Building. Tenant agrees that
Landlord shall have the sole right to protest any appraisals of the
Premises and the Building. Tenant also hereby waives any right
it may have to receive a copy of any notice received by Landlord
of
reappraisal of all or any portion of the Premises and/or the Building,
including without limitation any notice required under Section 41.413(d)
of the Texas Tax Code. Tenant agrees that Landlord shall not be
liable to Tenant for any damages for Landlord’s failure to send to Tenant
a copy of any invoice of reappraisal concerning the Premises and/or
the
Building, irrespective of any obligation under applicable law of
Landlord
to provide such notice. Not withstanding the foregoing, if
Tenant protests, challenges or appeals any valuation for property
tax
purposes of all or any portion of the Premises and/or the Building,
and
such valuation increases from the value protested, appealed, or
challenged, Tenant agrees to indemnify Landlord on an after-tax basis
for
any property taxes due as a result of such
increase.
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(o)
|
Estoppel
Certificates. From time to time, Tenant shall furnish to
any party designated by Landlord, within ten (10) days after Landlord
has
made a request therefor, a certificate signed by Tenant confirming
and
containing such factual certifications and representations as to this
Lease as Landlord may reasonably
request.
|
-63-
(p)
|
Amendments;
and Binding Effect. This Lease may not be amended except by
instrument in writing signed by Landlord and Tenant. No
provision of this Lease shall be deemed to have been waived by Landlord
unless such waiver is in writing signed by Landlord, and no custom
or
practice which may evolve between the parties in the administration
of the
terms hereof shall waive or diminish the right of Landlord to insist
upon
the performance by Tenant in strict accordance with the terms
hereof. The terms and conditions contained in this Lease shall
inure to the benefit of and be binding upon the parties hereto, and
upon
their respective successors in interest and legal representatives,
except
as otherwise herein expressly provided. This Lease is for the
sole benefit of Landlord and Tenant, and, other than Landlord's Mortgagee,
no third party shall be deemed a third party beneficiary
hereof.
|
(q)
|
Joint
and Several Liability. If there is more than one Tenant,
then the obligations hereunder imposed upon Tenant shall be joint
and
several. If there is a guarantor of Tenant's obligations
hereunder, then the obligations hereunder imposed upon Tenant shall
be the
joint and several obligations of Tenant and such guarantor, and Landlord
need not first proceed against Tenant before proceeding against such
guarantor nor shall any such guarantor be released from its guaranty
for
any reason whatsoever.
|
(r)
|
Captions. The
captions contained in this Lease are for convenience of reference
only,
and do not limit or enlarge the terms and conditions of this
Lease.
|
|
(s)
|
Landlord's
Consent. Whenever this Lease requires Landlord's consent,
Landlord agrees that such consent shall be given or withheld based
on
Landlord's good faith business judgment and that Landlord will not
act
arbitrarily or capriciously in the exercise of such business
judgment.
|
(t) Certification.
(a) Tenant
certifies that (i) it is not acting, directly or indirectly, for or on behalf
of
any person, group, entity, or nation named by any Executive Order or the United
States Treasury Department as a terrorist, “Specially Designated National and
Blocked Person,” or other banned or blocked person, entity, nation, or
transaction pursuant to any law, order, rule, or regulation that is enforced
or
administered by the Office of Foreign Assets Control; and (ii) it is not engaged
in this transaction, directly or indirectly on behalf or, or instigating or
facilitating this transaction, directly or indirectly on behalf of, any such
person, group, entity, or nation.
(b) Tenant
hereby agrees to defend, indemnify, and hold harmless Landlord from and against
any and all claims, damages, losses, risks, liabilities, and expenses (including
attorney’s fees and costs) arising from or related to any breach of the
foregoing certification.
-64-
36.
|
HAZARDOUS
MATERIALS. Landlord
hereby agrees to indemnify and hold harmless Tenant from and against
any
claims or liabilities suffered or incurred by Tenant that arises
from or
is attributable to the presence of any hazardous materials in the
Premises
or the Property in violation of applicable environmental laws prior
to the
date of this Lease or after the date of this Lease if such presence
is
attributable to the actions of Landlord or its agents or
employees. Tenant hereby agrees to indemnify and hold harmless
Landlord and its partners from and against any claims or liabilities
suffered or incurred by Landlord or such partners that arises from
or is
attributable to the presence of any hazardous materials in the Premises
in
violation of applicable environmental laws after the date of this
Lease if
such presence is attributable to the actions of Tenant or its agents,
employees or invitees.
|
37.
|
EXHIBITS. Exhibits
"A", "B", "C", "D", "E" and "F" are attached hereto and incorporated
herein and made a part of this Lease for all
purposes:
|
LANDLORD
AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE PREMISES ARE
SUITABLE FOR TENANT'S INTENDED COMMERCIAL PURPOSE, AND TENANT'S OBLIGATION
TO
PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE PREMISES OR THE
PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS HEREUNDER, AND, EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED HEREIN, TENANT SHALL CONTINUE TO PAY THE RENT, WITHOUT
ABATEMENT, SETOFF, DEDUCTION, NOTWITHSTANDING ANY BREACH BY LANDLORD OF ITS
DUTIES OR OBLIGATIONS HEREUNDER, WHETHER EXPRESS OR IMPLIED.
-65-
IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple
original counterparts as of the day and year first above written.
LANDLORD:
|
TENANT:
|
Fairways
2001 Office Partners, Ltd.,
|
Ascendant
Solutions, Inc.,
|
a
Texas limited partnership
|
a
Delaware corporation
|
By: VIII
Canyons, LLC.,
|
|
a
Texas limited liability
company
|
|
By:/s/Xxxxx
Xxxxxx
|
By:/s/Xxxxx
X. Xxxx
|
Xxxxx
Xxxxxx,
|
Xxxxx
X. Xxxx
|
Manager
|
President
& CEO
|
Address:
|
Address
prior to occupancy:
|
0000
Xxxxxx Xxxxxxx
Xxxx, Xxxxx 000
|
00000
Xxxxxx Xxxxxxx, Xxxxx 000
|
Xxxxxxx,
XX
00000
|
Xxxxxx,
XX 00000
|
-66-
EXHIBIT
"A"
LEGAL
DESCRIPTION
Being
a tract of land situated in Xxxxxx X. Xxxxx Survey, Abstract No. 360
and being Xxx 0 Xxxxx X/0000 xx Xxxxxxxx Xxxxxx, an addition to the City of
Dallas, Texas as recorded in Vol. 77162 Page 0564, Records of Dallas County,
Texas, and being more particularly described as follows:
COMMENCING
at the intersection of the north line of Xxxxxx Springs Road and the east line
of Dallas Parkway; THENCE N 00 deg. 53' 09" E along said east line,
1190.55 feet; THENCE in a northerly direction continuing along said
east line with a curve to the left, said curve having a central angle of 18
deg.
24' 52" and a radius of 1600.00 feet, a distance of 514.23
feet; THENCE N 89 deg. 42' 00" E, 445.70 feet to the Place of
Beginning:
THENCE
FROM THE PLACE OF BEGINNING N 89 deg. 42' 00" E, 350.70 feet;
THENCE
S 24 deg. 27' 31" W, 412.94 feet;
THENCE
S 89 deg. 50' 30" W, 101.40 feet;
THENCE
in a northerly direction with a curve to the left, chord bearing N 18 deg.
29'
50" W, said curve having a central angle of 03 deg. 06' 08" and a radius of
530.00 feet, a distance of 28.70 feet;
THENCE
in a northerly direction with a curve to the right, said curve having a central
angle of 13 deg. 11' 49" and a radius of 470.00 feet, a distance of 108.26
feet;
THENCE
in a northerly direction with a curve to the left, said curve having a central
angle of 06 deg. 56' 55" and a radius of 2030.00 feet, a distance of 246.20
feet
to the Place of Beginning and containing 1.968 acres of land.
-67-
EXHIBIT
"B"
FLOOR
PLAN
EXHIBIT
"C"
TENANT
FINISH-WORK:
ALLOWANCE
1. Tenant
accepts the Premises in their "as is" condition on the date that this lease
is
entered into(including the current condition of the Building as it relates
to
handicapped access). If applicable handicapped access laws require
that alterations be made to the non-tenant areas of the Building for the
Building to be in compliance with such laws, Landlord shall be responsible
for
such alterations.
-68-
Landlord
shall not be responsible for any alterations to the Premises that may be
required by handicapped access laws.
2. Landlord
shall at its sole cost and expense prior to the Commencement Date, paint all
interior walls and shampoo all interior carpeting. Further, Landlord
shall repair any damage and repaint the walls in the “Server
Closet”.
-69-
|
EXHIBIT
"D"
|
RULES
AND REGULATIONS
|
1.
|
Sidewalks,
doorways, vestibules, halls, stairways, and similar areas shall not
be
obstructed nor shall refuse, furniture, boxes or other items be placed
therein by Tenant or its officers, agents, servants, and employees,
or
used for any purpose other than ingress and egress to and from the
leased
premises, or for going from one part of the Building to another part
of
the Building. Canvassing, soliciting and peddling in the
Building are prohibited.
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|
2.
|
Plumbing
fixtures and appliances shall be used only for the purposes for which
constructed, and no unsuitable material shall be placed
therein.
|
|
3.
|
No
signs, directories, posters, advertisements, or notices shall be
painted
or affixed on or to any of the windows or doors, or in corridors
or other
parts of the Building, except in such color, size, and style, and
in such
places, as shall be first approved in writing by Landlord in its
reasonable discretion. Landlord shall have the right to remove
all unapproved signs without notice to Tenant, at the expense of
Tenant.
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|
4.
|
Tenant
shall not do, or permit anything to be done in or about the Building,
or
bring or keep anything therein, that will in any way increase the
rate of
fire or other insurance on the Building, or on property kept therein
or
otherwise increase the possibility of fire or other
casualty.
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|
5.
|
Landlord
shall have the power to prescribe the weight and position of heavy
equipment or objects which may overstress any portion of the
floor. All damage done to the Building by the improper placing
of such heavy items will be repaired at the sole expense of the
responsible Tenant.
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|
6.
|
Tenants
shall notify the Building Manager when safes or other heavy equipment
are
to be taken in or out of the Building, and the moving shall be done
after
written permission is obtained from Landlord on such conditions as
Landlord shall require.
|
|
7.
|
Corridor
doors, when not in use, shall be kept
closed.
|
|
8.
|
Tenants
shall cooperate with Landlord's agents in keeping the leased premises
neat
and clean.
|
|
9.
|
Tenants
shall not cause or permit any improper noises in the Building, or
allow
any unpleasant odors to emanate from the leased premises, or otherwise
interfere, injure or annoy in any way other tenants, or persons having
business with them.
|
-70-
|
10.
|
No
animals shall be brought into or kept in or about the
Building.
|
|
11.
|
When
conditions are such that Tenant must dispose of crates, boxes, etc.
it
will be the responsibility of Tenant to dispose of same prior to,
or after
the hours of 7:30 a.m. and 5:30 p.m. respectively. Crates and
construction debris shall be removed from the project by Tenant at
Tenant's expense and shall not be placed in ordinary trash removal
receptacles.
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|
12.
|
No
machinery of any kind, other than ordinary office machines such as
typewriters and calculators, shall be operated on the leased premises
without the prior written consent of Landlord, nor shall Tenants
use or
keep in the Building any inflammable or explosive fluid or substance
or
any illuminating materials. No space heaters or fans shall be
operated in the Building, without Landlords' prior written
consent.
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|
13.
|
No
bicycles, motorcycles or similar vehicles will be allowed in the
Building.
|
|
14.
|
No
nails, hooks or screws shall be driven into or inserted in any part
of the
Building except as approved by Building maintenance
personnel.
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|
15.
|
Landlord
has the right to evacuate the Building in the event of an emergency
or
catastrophe, and Tenant shall cooperate in such an
evacuation.
|
|
16.
|
No
food and/or beverages shall be distributed from Tenant's office without
the prior written approval of the Building
Manager.
|
|
17.
|
No
additional locks shall be placed upon any doors without the prior
written
consent of Landlord. All necessary keys shall be furnished by
Landlord, and the same shall be surrendered upon termination of this
Lease, and Tenant shall then give Landlord or his agent an explanation
of
the combination of all locks on the doors or vaults. Tenant
shall initially be given two (2) keys to the Premises by
Landlord. No duplicates of such keys shall be made by
Tenants. Additional keys shall be obtained only from Landlord,
at a reasonable fee to be determined by
Landlord.
|
|
18.
|
Tenants
will not locate furnishings or cabinets adjacent to mechanical or
electrical access panels or over air conditioning outlets so as to
prevent
operating personnel from servicing such units as routine or emergency
access may require. Cost of moving such furnishings for
Landlord's access will be for Tenant's account. The lighting
and air conditioning equipment of the Building will remain the exclusive
charge of the Building designated
personnel.
|
-71-
|
19.
|
Tenant
shall comply with such parking rules and regulations as may be posted
and
distributed from time to time.
|
|
20.
|
No
portion of the Building shall be used for the purpose of lodging
rooms.
|
|
21.
|
Vending
machines or dispensing machines of any kind will not be placed in
the
leased premises by a Tenant, without permission from
Landlord.
|
|
22.
|
Prior
written approval, which shall be at Landlord's sole discretion, must
be
obtained for installation of window shades, blinds, drapes, or any
other
window treatment of any kind whatsoever. Landlord will control
all internal lighting that may be visible from the exterior of the
Building and shall have the right to change any unapproved lighting,
without notice to Tenant, at Tenant's expense. In the event
that Landlord finds it necessary to close or open blinds or other
window
treatments during certain hours of the day for temperature control
purposes. Tenant shall cooperate by closing or opening its
blinds or other window treatments during such
hours.
|
|
23.
|
No
Tenant shall make any changes or alterations to any portion of the
Building without Landlord's prior written approval, which may be
given on
such conditions as Landlord may elect. All such work shall be
done by Landlord or by contractors and/or workmen approved by Landlord,
working under Landlord's
supervision.
|
|
24.
|
Landlord
reserves the right to rescind any of these rules and make such other
and
further rules and regulations as in its judgment shall from time
to time
be needful for the operation of the Building, which rules shall be
binding
upon each Tenant upon delivery to such Tenant of notice thereof in
writing.
|
-72-
EXHIBIT
"E"
BASE
RENTAL SCHEDULE
The
initial Base Rental for the Premises shall be $ 3,901.63 per month (based on
$19.50 per square foot of Rentable Area contained in the Premises). August,
September, October and November 2007 Base Rental shall be
abated.
-73-
EXHIBIT
“F”
RENEWAL
OPTIONS
Provided
no event of default exists and Tenant is occupying the entire Premises at the
time of such election, Tenant may renew this Lease
for one additional period
of 5 years each on the same
terms provided in this Lease (except as set forth below), by delivering written
notice of the exercise thereof to Landlord not later
than 180 days before the
expiration of the Lease Term. On or before the commencement date of
the extended Lease Term in question, Landlord and Tenant shall execute an
amendment to this Lease extending the Lease Term on the same terms provided
in
this Lease, except as follows:
(1) The
Base Rental payable for each month during each such extended Lease Term shall
be
the prevailing rental rate, at the commencement of such extended Lease Term,
for
space of equivalent quality, size, utility and location, with the length of
the
extended Lease Term and the credit standing of Tenant to be taken into
account;
(2) Tenant
shall have no further renewal options unless expressly granted by Landlord
in
writing; and
(3) Landlord
shall lease to Tenant the Premises in their then-current condition.
Tenant's
rights under this Exhibit shall terminate if (i) this Lease or Tenant's right
to
possession of the Premises is terminated, (ii) Tenant assigns any of its
interest in this Lease or sublets any portion of the Premises, or (iii) Tenant
fails to timely exercise its option under this Exhibit, time being of the
essence with respect to Tenant's exercise thereof.
-74-