FOURTH AMENDMENT TO LEASE
Exhibit
10.1
FOURTH
AMENDMENT TO LEASE
THIS FOURTH AMENDMENT TO LEASE
(“Amendment”) is made
and entered into as of the 30 day of January, 2008 by and between FSP 000 XXXX XXXXXX XXXXX LLC,
a Delaware limited liability company (herein referred to as “Landlord”), and KPMG LLP, a Delaware limited
liability partnership (herein referred to as “Tenant”).
R E C I T
A L S:
WHEREAS, Landlord (as
successor in interest to the original named landlord) and Tenant (as successor
in interest to the original named tenant) are parties to that certain Office
Lease dated August, 1997 (“Original Lease”), as amended
by First Amendment dated December 4, 1997 (“First Amendment”) and by
Second Amendment to Lease dated as of December 4, 1997 (“Second Amendment”) and by
Third Amendment to Lease dated March 4, 2004 (“Third Amendment”) (said
Original Lease, as amended by the First Amendment, the Second Amendment and the
Third Amendment, as amended hereby, and as further amended from time to time,
the “Lease”), which
Lease covers space containing 228,688 square feet of Rentable Area located on
the 13th, 14th, 15th, 16th, 17th, 18th, 19th and 22nd floors of the Building
known as 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx for an initial stated term
scheduled to expire on August 31, 2012;
WHEREAS, Landlord and Tenant
desire to amend the Lease to add additional space on the 20th floor of the
Building to the leased premises demised thereunder, and for other matters, all
upon the terms and conditions hereinafter set forth;
NOW THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements
contained herein, Landlord and Tenant hereby agree as follows:
1. Incorporation
of Recitals and Exhibits. The foregoing recitals and all exhibits
attached hereto are, by this reference, hereby incorporated as part of this
Amendment.
2. Defined
Terms. All capitalized terms used herein and defined in the Lease shall
have the same meanings as in the Lease unless otherwise defined herein. For
purposes of the Lease, the term “Rent” shall specifically
include the rental payments due with respect to the Original Premises and the
Additional Premises as described in this Amendment. As used herein, the
following terms shall have the respective meanings indicated below:
(a) “Additional Premises” shall
mean space on the 20th floor in the Building, containing 30,402 square feet of
Rentable Area, comprising the entire such 20th floor, shown and identified on
Exhibit A attached
hereto and made a part hereof.
(b) “Additional Premises Commencement
Date” shall mean May 1, 2008.
(c) “Original Premises” shall mean
the Premises on the 13th, 14th, 15th, 16th, 17th, 18th, 19th and 22nd floors at
the Building being leased under the Lease immediately prior to the date hereof,
as described in the opening Recital paragraph above, containing 228,688 square
feet of Rentable Area.
3. Condition;
Turnover Date; Tenant's Work.
(a) Condition.
Subject to Paragraphs 7 and 8 below regarding Landlord's obligation to fund the
“Allowance” and the “Space Plan Allowance”, as therein described, and subject to
Landlord's obligation to perform, or cause to be performed, within a reasonable
time frame, the remediation or other compliance work (including, without
limitation, any ADA compliance within the restrooms on the 20th floor and
installation of any legally required strobes or speakers in the common elevator
lobbies, washrooms and stairwells on the 20th floor), required on account of the
Additional Premises not complying, in all material respects, as of the Turnover
Date (as defined in Paragraph 3(b) below), with any applicable Laws (as defined
in the Original Lease) in effect as of the Turnover Date, Tenant agrees to
accept the Additional Premises in their “as is” condition effective as
of the “Turnover Date” specified in Paragraph 3(b) below. Landlord agrees to (i)
coordinate any such remediation or other compliance work, as described in the
preceding sentence, with Tenant so that such remediation or other compliance
work does not materially interfere with the performance of Tenant's Work (as
hereinafter defined), and (ii) complete all such remediation or other compliance
work, if any, prior to the Additional Premises Commencement Date (or thereafter,
within a reasonable time frame, if Landlord was not otherwise given reasonably
sufficient prior notification of such necessary work so as to be able to
reasonably complete such work on or before the Additional Premises Commencement
Date hereunder). No agreement of Landlord to alter, remodel, decorate, clean or
improve the Additional Premises (or to provide Tenant with any credit or
allowance for the same), and no representations regarding the condition of the
Additional Premises, have been made by or on behalf of Landlord or relied upon
by Tenant, except as expressly set forth in this Amendment or in the Lease, as
modified hereby. Nothing in this Paragraph 3 shall be deemed to waive or
otherwise negate any of Landlord's maintenance, repair or other covenants
expressly set forth in the Lease.
(b) Turnover
Date. Landlord shall tender possession of the Additional Premises to
Tenant within two (2) business days following the date of mutual execution and
delivery of this Amendment by Landlord and Tenant. The date Landlord so tenders
possession of the Additional Premises to Tenant is herein referred to as the
“Turnover Date”. During
the period from and after the Turnover Date and continuing through the day
immediately preceding the Additional Premises Commencement Date, all of the
terms and provisions of the Lease shall govern and control with respect to the
Additional Premises, except that Tenant shall have no obligation to pay Monthly
Base Rent or Rent Adjustments pertaining to the Additional Premises during any
such period prior to the Additional Premises Commencement Date; and provided
further, that Landlord shall not be obligated to perform any cleaning or other
base-building services to the Additional Premises prior to the first to occur of
(i) Tenant's completion of the Tenant's Work (as described below) therein and
Tenant's request (herein, a “Service Request”) for Landlord
to begin furnishing such services to the Additional Premises, and (ii) the
Additional Premises Commencement Date. From and after the Additional Premises
Commencement Date, all terms and provisions of the Lease shall be applicable to
and shall control with respect to the Additional Premises and Tenant's occupancy
thereof,
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including,
without limitation, Tenant's obligation to pay all Monthly Base Rent and Rent
Adjustments due and owing under the Lease with respect to the Additional
Premises, and Landlord's obligation to furnish all cleaning and other
base-building services to the Additional Premises, all as hereinafter provided
and as expressly set forth in the Lease, as modified hereby. Notwithstanding
anything contained in the Lease or this Amendment to the contrary (but without
limitation of Tenant's obligation to pay all Monthly Base Rent and Rent
Adjustments due and owing under the Lease with respect to the Additional
Premises from and after the Additional Premises Commencement Date, subject to
certain abatements thereof as expressly provided in this Amendment), Tenant
shall not be required to pay any usage charges for HVAC to the Additional
Premises or for freight elevator usage relative to the Tenant's Work during
standard Building office hours; Tenant shall, however, be responsible for the
cost of electrical usage at the Additional Premises, and for any trash removal
and after-hours' freight elevator attendant and/or security fees incurred by
Landlord relative to Tenant's performance of the Tenant's Work, Tenant's move-in
to the Additional Premises and/or Tenant's occupancy of the Additional Premises
at any time after the Turnover Date.
(c) Tenant's
Work.
(i) Subject
to the provisions of this Paragraph 3 and subject to the terms of Paragraphs 7
and 8 below regarding Landlord's disbursement of the “Allowance” and the “Space
Plan Allowance” as therein provided, Tenant shall, at its sole cost and expense,
perform such other work to or at the Additional Premises as may be necessary or
desired by Tenant to improve the Additional Premises for occupancy, all subject
to and in accordance with the provisions of the Lease, including, without
limitation, the provisions of Article Nine of the Original Lease. All work
referred to in this subparagraph which is constructed within a period of two (2)
years after the Turnover Date is hereinafter referred to as “Tenant's Work” (it being
understood that Tenant shall continue to have the right to perform work to or at
the Additional Premises following such two year period, provided that such work
shall not constitute “Tenant's Work” for purposes hereof, and shall instead be
performed in accordance with all terms and requirements of the Lease governing
Tenant alteration work, including the provisions of Article Nine of the Original
Lease). Tenant, at Tenant's option, may retain Landlord as construction manager
for all or any portion of such Tenant's Work, if Landlord agrees to perform such
construction management services. In the event that Tenant elects to retain
Landlord as construction manager and Landlord agrees to perform such
construction management services, Tenant and Landlord shall enter into a
mutually acceptable construction management agreement (with construction
management fees payable to Landlord in the amount of 3% of the “hard”
construction costs of the Tenant's Work). In the event Tenant does not elect to
engage Landlord as construction manager, then Tenant shall have the right to
retain its own general contractor and/or other contractors for construction of
Tenant's Work, which general contractor and/or other contractors shall be
subject to Landlord's approval (not to be unreasonably withheld), as provided in
Article Nine of the Original Lease. Tenant shall, in any event, pay or reimburse
Landlord for any out-of-pocket costs actually incurred by Landlord
in
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connection
with third-party consultant review of the structural and mechanical, electrical
and plumbing aspects of the Tenant's Work and/or the plans and specifications
therefor (i.e., structural or MEP engineering review), provided that Tenant does
not employ Landlord's designated engineer in connection therewith. Tenant hereby
acknowledges and agrees that, in connection with the Tenant's Work, Tenant and
any and all contractors performing Tenant's Work shall comply, in all material
respects, with Landlord's “Tenant Design and Construction Manual”, a copy of the
current version of which having heretofore been made available to Tenant for
review (it being understood that Landlord may hereafter revise and/or update
said “Tenant Design and Construction Manual” from time to time [herein, in each
instance, the “Revised and
Finalized Construction Manual”] and Tenant shall comply with each such
Revised and Finalized Construction Manual so long as any material changes from
the version thereof heretofore made available to Tenant are reasonable and are
uniformly imposed, in general, upon other tenants performing construction work
at the Building). Tenant's Work shall be performed, in any event, only in
accordance with the terms and conditions of the Lease, including the provisions
of Article Nine of the Original Lease.
(ii) Without
limitation of the requirement of Article Nine of the Original Lease that plans
and specifications shall be subject to Landlord's approval, prior to the
commencement of Tenant's Work, Tenant shall submit to Landlord for Landlord's
approval full and detailed architectural and engineering plans and
specifications for any Tenant's Work. In the event Tenant elects to employ an
engineer designated by Landlord in the preparation of any portion of the plans,
or for the performance of any portion of any Tenant's Work, Tenant shall employ
and be responsible for all fees of said engineer in preparing the plans or
portion thereof and for any portion of Tenant's Work performed by said engineer.
In the event Tenant has elected not to employ Landlord's designated engineer in
the preparation of the plans, Landlord reserves the right to have the structural
and mechanical, electrical and plumbing portions of the plans reviewed by
Landlord's designated engineer, and Tenant shall pay or reimburse Landlord for
any out-of-pocket expenses actually incurred by Landlord for such review.
Landlord's approval shall be required of engineering plans and specifications,
whether prepared by Landlord's designated engineer or another engineer. Tenant
shall not permit noise from construction of any Tenant's Work to unreasonably or
materially disturb other tenants in the Building. Tenant's Work which does so
disturb other tenants shall be performed after regular working
hours.
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4.
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Additional
Premises.
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(a) Effective
as of the Additional Premises Commencement Date and for a lease term expiring
concurrently with the end of the Term for the Original Premises:
(i) the
“Premises” under the Lease shall include the Additional Premises;
and
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(ii) the
Rentable Area of the Premises shall be increased by the Rentable Area of the
Additional Premises, thereby resulting in a total of 259,090 square feet of
Rentable Area of the Premises (and “Tenant's Share” under the Lease shall be
increased in accordance with the terms of Paragraph 6 hereof).
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5.
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Monthly
Base Rent.
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(a) Monthly
Base Rent for the Original Premises shall continue to be payable in such amounts
and in accordance with such provisions as are set forth in the Lease from and
after the date hereof and through August 31, 2012 (i.e., being the expiration of
the current stated Term of the Lease). The foregoing Monthly Base Rent shall be
payable at such times and at such place and in accordance with such provisions
as otherwise set forth in the Lease relative to the payment of “Monthly Base
Rent” thereunder.
(b) From
and after the Additional Premises Commencement Date and through the expiration
of the initial stated Term of the Lease, and subject to the rental abatement
rights expressly provided in Paragraph 5(c) below, Monthly Base Rent for the
Additional Premises shall be payable by Tenant in the following amounts and at
the following annual rates per square foot of Rentable Area of the Additional
Premises for the respective periods hereinafter described (and Section 1.1(8) of
the Original Lease is hereby supplemented accordingly):
Annual
Base
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Rent
for the
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Additional
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Premises
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Monthly
Base
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(Per
Square
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Annual
Base Rent
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Rent
for the
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Foot
of
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for
the Additional
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Additional
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Period
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Rentable
Area)
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Premises
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Premises
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May
1, 2008 through August 31,
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$13.74
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$417,723.48
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$34,810.29*
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2008
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September
1, 2008 through
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$14.05
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$427,148.10
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$35,595.68
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August
31, 2009
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September
1, 2009 through
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$14.37
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$436,876.74
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$36,406.40
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August
31, 2010
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September
1, 2010 through
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$14.69
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$446,605.38
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$37,217.12
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August
31, 2011
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September
1, 2011 through
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$15.02
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$456,638.04
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$38,053.17
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August
31,2012
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*Subject
to certain abatements as described in Paragraph 5(c) below.
The
foregoing Monthly Base Rent attributable to the Additional Premises shall be
payable at such times and at such place and in accordance with such provisions
as otherwise set forth in the Lease relative to the payment of Monthly Base Rent
attributable to the Original Premises thereunder.
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(c) Notwithstanding
the terms of Paragraphs 5(a) and 5(b) above, it is agreed that Tenant shall be
entitled to an abatement of Monthly Base Rent attributable to the Additional
Premises for each of two (2) calendar months (each such month, an “Additional Premises Abatement
Month”) commencing with May 1, 2008 and continuing through June 30, 2008.
The foregoing abatement of Monthly Base Rent attributable to the Additional
Premises shall not otherwise affect Tenant's obligation to pay all other amounts
due and owing under the Lease during each such respective Additional Premises
Abatement Month (including, without limitation, all Monthly Base Rent payable
with respect to the Original Premises), nor shall it affect any other
obligations of Tenant under the Lease, and provided further, that such abatement
of Monthly Base Rent attributable to the Additional Premises shall not apply for
any Additional Premises Abatement Month during which a monetary default occurs
under the Lease, which monetary default is not thereafter cured within
applicable notice and cure periods under the Lease.
(d) The
term “Monthly Base
Rent”, as used in the Lease, shall mean all Monthly Base Rent payable
thereunder from time to time, including without limitation the amounts payable
from time to time relative to the Original Premises as described in Paragraph
5(a) above, and the amounts payable from time to time relative to the Additional
Premises as described in Paragraph 5(b) above, subject, in any event, to the
rental abatements expressly set forth in Paragraph 5(c) above.
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6.
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Rent
Adjustments.
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(a) It
is acknowledged that, based on certain re-measurements at the Building which
have been applied to the measurement of the Additional Premises hereunder (but
which has not been applied to the measurement of the Original Premises), the
“Rentable Area of the Building” shall be different as it relates to determining
Rent Adjustments under the Lease relative to the Additional Premises as opposed
to determining Rent Adjustments under the Lease relative to the Original
Premises. Accordingly, for the calendar year in which the Additional Premises
Commencement Date falls (the “Commencement Date Calendar
Year”), and for all subsequent years falling in whole or in part during
the term, Tenant's Share of Operating Expenses and Taxes (i.e., Rent Adjustments
under the Lease) provided for in Article Four of the Original Lease shall be
calculated separately for the Additional Premises, apart from the remainder of
the Premises. Tenant's obligation to pay Rent Adjustments relative to the
Additional Premises hereunder shall commence with the Additional Premises
Commencement Date and shall thereafter continue for the balance of the Term of
the Lease, subject, however, to certain abatements thereof as and to the extent
described in Paragraph 6(c) below.
(b) For
purposes of calculating Rent Adjustments payable on account of the Additional
Premises for the Commencement Date Calendar Year and for subsequent years, as
provided in Paragraph 6(a) above, “Tenant's Share” shall be determined in
accordance with the definition thereof set forth in Section 1.3(37) of the
Original Lease, except that the numerator of the ratio described therein shall
be 30,402 square feet of Rentable Area (i.e., being the Rentable Area of the
Additional Premises as set forth in Paragraph 2 hereinabove), and the
denominator of the ratio described therein shall be
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814,118
square feet of Rentable Area (i.e., being the stipulated Rentable Area of the
Building that shall be used for purposes of determining Rent Adjustments
relative to the Additional Premises under the Lease), resulting in a Tenant's
Share attributable to the Additional Premises equal to 3.734%. For purposes of
calculating Rent Adjustments payable on account of the Original Premises for the
Commencement Date Calendar Year and for all subsequent calendar years (or
portions thereof) within the Term of the Lease, as provided in Paragraph 6(a)
above, “Tenant's Share” shall be determined in accordance with the definition
thereof set forth in Section 1.3(37) of the Original Lease, except that the
numerator of the ratio described therein shall be 228,688 square feet of
Rentable Area (i.e., being the Rentable Area of the Original Premises as set
forth in Paragraph 2 hereinabove), and the denominator of the ratio described
therein shall be 770,130 square feet of Rentable Area (i.e., being the
stipulated Rentable Area of the Building set forth in the Original Lease that
shall continue to be used for purposes of determining Rent Adjustments relative
to the Original Premises under the Lease), resulting in a Tenant's Share
attributable to the Original Premises equal to 29.6947%.
(c) Notwithstanding
the terms of Paragraphs 6(a) and 6(b) above, it is agreed that Tenant shall be
entitled to an abatement of Rent Adjustments attributable to the Additional
Premises for each of the Additional Premises Abatement Months (as defined in
Paragraph 5 above). The foregoing abatement of Rent Adjustments attributable to
the Additional Premises shall not otherwise affect Tenant's obligation to pay
all other amounts due and owing under the Lease during each such respective
Additional Premises Abatement Month (including, without limitation, all Rent
Adjustments due and payable with respect to the Original Premises), nor shall it
affect any other obligations of Tenant under the Lease, and provided further,
that such abatement of Rent Adjustments attributable to the Additional Premises
shall not apply for any Additional Premises Abatement Month during which a
monetary default occurs under the Lease, which monetary default is not
thereafter cured within applicable notice and cure periods under the
Lease.
(d) All
Rent Adjustments described in this Paragraph 6 shall be payable at such times,
in such manner, and in accordance with such procedures (i.e., including payment
of monthly estimates and annual reconciliations) as set forth in Article Four of
the Original Lease relative to payment of Rent Adjustments
thereunder.
7. Allowance.
Landlord shall make a contribution toward the cost of Tenant's Work (including,
without limitation, the costs of construction, labor, materials, permits and
inspections, design drawings, architectural drawings, mechanical, electrical and
plumbing drawings and other miscellaneous items including, without limitation,
cabling, telephone and signage and construction management fees) and toward any
other architectural and engineering fees in connection with such Tenant's Work
(collectively, the “Allowance
Permitted Costs”) in the amount of $1,130,042.34 (i.e., being $37.17 per
square foot of Rentable Area of the Additional Premises) (the “Allowance”). The Allowance
shall be disbursed pursuant to the terms and conditions hereinafter set
forth:
(a) If
any portion of Tenant's Work is to be performed by or otherwise coordinated with
Landlord, as construction manager, then Landlord shall disburse
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the
Allowance for payment of amounts due from time to time in connection with the
work. As to any of the Tenant's Work or other items not performed by or
otherwise coordinated with Landlord, as construction manager, Landlord shall
disburse the Allowance from time to time, within thirty (30) days following
Tenant's request for payment therefor and certification that the Tenant's Work
for which payment is requested has been performed and that the amounts for which
payment is requested are due and owing, which disbursement shall be made (A) to
Tenant (or, at Tenant's option, by check payable directly to Tenant's
materialmen and contractors) within thirty (30) days after presentation by
Tenant to Landlord of request for payment and appropriate and complete
contractor's affidavits, owner's sworn statements, architect certifications and
waivers of lien (which waivers of lien may be conditioned on payment of the
amount to be disbursed, if such disbursement is being paid directly to the
respective contractor) showing that the work covered thereby has been performed
in the Additional Premises and (B) to Tenant (or, at Tenant's option, by check
payable directly to Tenant's designated suppliers or other recipients) for such
other items which are the basis of such request within thirty (30) days after
Landlord receiving bills of such suppliers or other recipients and, to the
extent their work is lienable, upon presentation of affidavits, sworn statements
and waivers as described in (A) above. In no event shall Tenant be permitted to
make more than one such request for disbursement of the Allowance per calendar
month.
(b) In
the event that the cost of the Tenant's Work and such other items for which the
Allowance may be applied should for any reason be greater than said Allowance
provided by Landlord hereunder, Tenant shall be responsible for the payment of
such excess cost. Tenant shall be solely responsible for timely payment of any
costs associated with the Tenant's Work incurred by Tenant and not otherwise
consisting of Allowance Permitted Costs. Further, in the event that the cost of
the Tenant's Work and such other items for which the Allowance may be applied
should for any reason be less than the full amount of the Allowance, Tenant
shall not be entitled to any unused portion of the Allowance.
(c) Landlord
has no obligation to disburse any portion of the Allowance so long as Tenant is
in monetary default under the Lease (provided that if said monetary default is
thereafter cured within applicable notice and cure periods under the Lease, then
Landlord shall thereafter promptly pay said Allowance in accordance with this
Paragraph 7). Disbursement of any portion of the Allowance shall not be deemed a
waiver of Tenant's obligation to comply with such provisions. As to any work not
performed by or coordinated with Landlord, Tenant shall be responsible for the
appropriateness and completeness of the contractors' affidavits and waivers of
lien and approval of any of such work; Landlord shall have no responsibility for
any of the foregoing.
8. Space
Plan Allowance. Landlord hereby agrees to make the following contribution
(the “Space Plan
Allowance”) pursuant to the following terms and conditions:
(a) A
contribution toward the fees and costs due and owing from Tenant to its space
planner in connection with the preparation of the initial space plans for
Tenant's Work in the amount not to exceed $3,040.20 (i.e., being $.10 per square
foot of Rentable
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Area of
the Additional Premises) and a contribution toward the fees and costs due and
owing from Tenant to its space planer in connection with the preparation of up
to two (2) revisions to such initial space plans in the amount not to exceed
$1,520.00 (i.e., being $.05 per square foot of Rentable Area of the Additional
Premises) for each such revision (i.e., for a maximum of $3,040.00 relative to
such initial space plan revisions).
Within
fifteen (15) days following submission by Tenant to Landlord of a payment
request with respect to the Space Plan Allowance, which request shall include a
copy of the invoice(s) showing amounts due and owing to Tenant's space planner
in connection with said space plans, and, if requested by Landlord, a lien
waiver from said space planner showing that all amounts so due and owing in
connection with the preparation of the space plans have been fully paid,
Landlord shall disburse the Space Plan Allowance to Tenant or, at Tenant's
direction, directly to the aforedescribed space planner. Landlord has no
obligation to disburse any portion of the Space Plan Allowance during any period
when Tenant is in monetary default under the Lease (provided that if Tenant
cures any such default within applicable notice or cure periods, then Tenant
shall again be entitled to disbursement of the Space Plan Allowance in
accordance with the other terms and conditions set forth herein). Disbursement
of any portion of the Space Plan Allowance shall not be deemed a waiver of
Tenant's obligation to comply with such provisions. In the event that the fees
and costs payable by Tenant to its space planner in connection with preparation
of the foregoing space plans is, for any reason, less than the full amount of
the Space Plan Allowance, then Tenant shall not be entitled to receive any such
difference. In the event that the foregoing fees and costs are greater than the
Space Plan Allowance, Tenant shall be fully responsible for the payment of all
such excess costs and fees.
9. Brokers.
Landlord and Tenant each represents and warrants to the other that such party
making the representation and warranty has not dealt with any broker or brokers
or finders in connection with the transactions contemplated hereby other than CB
Xxxxxxx Xxxxx, Inc. and Xxxxx Interests Limited Partnership (the “Brokers”)
(whose commissions shall be payable by Landlord pursuant to its separate written
commissions agreements with said Brokers). Landlord and Tenant each agrees to
indemnify, defend and hold harmless the other from and against any and all loss,
damages, liabilities, claims, costs and expenses (including reasonable
attorneys' fees) arising from any claims or demands of any other broker or
brokers or finders (i.e.,other than Brokers) with whom the indemnifying party
dealt for any commission alleged to be due such other broker, brokers or finders
in connection with this Amendment.
10. Inapplicable
Provisions. It is hereby agreed that Landlord has heretofore
satisfactorily completed the “Landlord Work” and fully disbursed the
“Improvement Allowance” under the Original Lease, and it is hereby agreed that
Landlord has no further obligations and Tenant has no further claims with
respect thereto. Further, it is hereby agreed that (a) Section 7 of the Rider to
the Original Lease (entitled “Expansion Options”), as heretofore amended by
Paragraph 6 of the First Amendment and by Paragraph 2 of the Third Amendment,
and (b) Sections 9 and 10 of the Rider to the Original Lease (entitled Reduction
Options” and Termination Option”, respectively) each no longer applies, and each
such Section is hereby deleted in its entirety, and shall hereafter be deemed
null and void, except, however, with respect to “Option 2” for one-third (1/3)
of the 12th floor as set forth in the Third Amendment, which Option 2 shall
continue in full force and effect in accordance with the terms of the Lease with
respect thereto.
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11. Notices.
Landlord's notice address as described in Article Twenty-Four of the Original
Lease (as modified by Paragraph 5 of the Third Amendment) is hereby deleted and
the following is substituted therefor:
Notices
to Landlord
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shall
be addressed:
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FSP
000 Xxxx Xxxxxx Xxxxx LLC
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c/x
Xxxxx
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000
Xxxx Xxxxxx Xxxxx
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Xxxxxxx,
Xxxxxxxx 00000
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Attention:
Property Manager
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with
an additional copy to:
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FSP
Property Management LLC
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000
Xxxxxxxxx Xxxxx-Xxxxx 000
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Xxxxxxxxx,
Xxxxxxxxxxxxx 00000
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Attention:
Xxxx X. Xxxxxxx
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12. Tenant
Certification. Tenant hereby certifies to Landlord as of the date of this
Amendment that, to the best of Tenant's knowledge, Tenant (i) 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) is not engaged in the transaction evidenced by the
Lease, directly or indirectly on behalf of, or instigating or facilitating the
transaction evidenced by the Lease, directly or indirectly on behalf of, any
such person, group, entity, or nation. TENANT HEREBY AGREES TO DEFEND,
INDEMNIFY, AND HOLD HARMLESS LANDLORD, LANDLORD'S MEMBERS, OFFICERS, EMPLOYEES
AND AGENTS, LANDLORD'S MANAGING AGENT, ANY OFFICER, DIRECTOR, STOCKHOLDER,
PARTNER, MEMBER, TRUSTEE, BENEFICIARY, EMPLOYEE, AGENT OR CONTRACTOR OF
LANDLORD'S MANAGING AGENT, AND ANY MORTGAGEE OF THE BUILDING, 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
CERTIFICATION MADE BY TENANT AS SET FORTH ABOVE IN THIS PARAGRAPH 12. THE TERMS
AND CONDITIONS CONTAINED IN THIS PARAGRAPH 12 SHALL BE EXPRESSLY BINDING UPON
AND SHALL EXPRESSLY INURE TO THE BENEFIT OF THE SUCCESSORS AND ASSIGNS OF THE
PARTIES HERETO. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH 12 TO THE CONTRARY,
LANDLORD ACKNOWLEDGES AND AGREES THAT (I) TENANT MAKES NO REPRESENTATION OR
WARRANTY UNDER THIS PARAGRAPH 12 WITH RESPECT TO ANY INDIVIDUAL SHAREHOLDERS OR
OTHER INDIVIDUAL OWNERS WHO OWN ANY DIRECT OR INDIRECT INTERESTS IN TENANT, AND
(II) TENANT MAKES NO INDEMNIFICATION UNDER THIS PARAGRAPH 12 WITH RESPECT TO ANY
SUCH INDIVIDUAL SHAREHOLDERS OR OWNERS WHO OWN ANY DIRECT OR INDIRECT INTERESTS
IN TENANT.
13. Landlord
Certification. Landlord hereby certifies to Tenant as of the date of this
Amendment that, to the best of Landlord's knowledge, Landlord (i) is not acting,
directly or
10
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) is not engaged in the transaction evidenced by the Lease, directly or
indirectly on behalf of, or instigating or facilitating the transaction
evidenced by the Lease, directly or indirectly on behalf of, any such person,
group, entity, or nation. LANDLORD HEREBY AGREES TO DEFEND, INDEMNIFY, AND HOLD
HARMLESS TENANT AND TENANT'S PARTNERS, OFFICERS, EMPLOYEES AND AGENTS, 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 CERTIFICATION MADE BY LANDLORD AS SET FORTH ABOVE IN THIS PARAGRAPH 13. THE
TERMS AND CONDITIONS CONTAINED IN THIS PARAGRAPH 13 SHALL BE EXPRESSLY BINDING
UPON AND SHALL EXPRESSLY INURE TO THE BENEFIT OF THE SUCCESSORS AND ASSIGNS OF
THE PARTIES HERETO. NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH 13 TO THE
CONTRARY, TENANT ACKNOWLEDGES AND AGREES THAT (I) LANDLORD MAKES NO
REPRESENTATION OR WARRANTY UNDER THIS PARAGRAPH 13 WITH RESPECT TO ANY
INDIVIDUAL SHAREHOLDERS OR OTHER INDIVIDUAL OWNERS WHO OWN ANY DIRECT OR
INDIRECT INTERESTS IN LANDLORD, AND (II) LANDLORD MAKES NO INDEMNIFICATION UNDER
THIS PARAGRAPH 13 WITH RESPECT TO ANY SUCH INDIVIDUAL SHAREHOLDERS OR OWNERS WHO
OWN ANY DIRECT OR INDIRECT INTERESTS IN LANDLORD.
14. Use of
20th Floor Core Space. Tenant shall have the right to use, for storage
purposes only, a certain area located in the core area on the 20th floor as
outlined on Exhibit B
hereto (the “20th Floor Core
Space”), all upon the terms and conditions of this Paragraph 14. It is
acknowledged that the 20th Floor Core Space is located in an area external to
the Additional Premises, and that Tenant's rights to use such space shall be as
a license only, and shall be subject to termination by Landlord as provided
below in this Paragraph 14. Except as provided in this Paragraph 14, Tenant's
rights and obligations pertaining to the 20th Floor Core Space (including,
without limitation, all maintenance, repair, insurance, indemnification and
other obligations under the Lease) shall be the same as applicable to the
Additional Premises, except that Tenant shall have no obligation to pay any Rent
relative to such 20th Floor Core Space, nor shall Landlord have any obligation
to furnish any cleaning or other base building services thereto. Tenant shall
have the right to utilize the 20th Floor Core Space solely for storage of
materials and other items, provided that such right to use the 20th Floor Core
Space for storage shall be solely at Tenant's risk as to any materials or other
items stored therein, and shall not impose any obligation upon Landlord to
provide any finishes or other installations or improvements therein, or to give
any allowance or concessions to Tenant relative thereto, and Landlord's sole
obligation with respect to such 20th Floor Core Space shall consist of delivery
of such space to Tenant in its as-is condition on the
Turnover Date hereunder. Tenant shall have the right to install walls or other
installations or alterations (the “20th Floor Core Space
Alterations”) at the 20th Floor Core Space in order to allow the 20th
Floor Core Space to be better separated from other surrounding space, and
thereby more secure for storage of items therein, all so long as such 20th Floor
Core Space Alterations will not, in Landlord's reasonably exercised judgment,
adversely affect, in any manner, Landlord's mechanical
design/installations
11
in the
surrounding areas or elsewhere at the Building nor otherwise adversely affect,
in any manner, usage of, or access to, the surrounding areas for Landlord's
installation, maintenance, repair or operation of the Building's core or any
other mechanical systems or equipment, nor otherwise adversely affect, in any
manner, any other Building systems or operations. All such 20th Floor Core Space
Alterations shall be subject to Landlord's prior approval thereof, including
Landlord's prior approval of plans and specifications therefor. Any 20th Floor
Core Space Alterations shall be performed at Tenant's sole cost and expense in
accordance with the provisions of Paragraph 3(c) above (if part of the Tenant
Work) and Article Nine of the Original Lease (provided, however, that Tenant
shall not be entitled to any Allowance or Space Plan Allowance proceeds relative
to the 20th Floor Core Space). It is expressly understood and agreed that
Landlord shall not use the 20th floor as an elevator transfer floor without
Tenant's prior written approval (which approval may be given or withheld in
Tenant's sole and absolute discretion). Landlord shall have the right, at any
time, to terminate all of Tenant's license rights to use the 20th Floor Core
Space under this Paragraph 14, if Tenant so approves, in writing, the use of the
20th floor as a transfer floor (which approval may be given or withheld in
Tenant's sole and absolute discretion), and that Landlord thereby needs all or
any portion of such 20th Floor Core Space for installation of additional
elevator lobby/openings or other base building installations in connection
therewith. Landlord's right to terminate Tenant's license rights relative to the
20th Floor Core Space, as provided in the preceding sentence, shall be exercised
by Landlord giving written notice thereof to Tenant at any time during the term
of the Lease, whereupon Tenant's rights to such 20th Floor Core Space (and
Tenant's ongoing obligations under this Paragraph 14 relative to such 20th Floor
Core Space) shall terminate effective on the 45th day following Landlord's
delivery to Tenant of such termination notice. On or before the expiration or
earlier termination of the term of the Lease (or on or before any earlier
termination of Tenant's license rights relative to the 20th Floor Core Space as
set forth in the preceding sentence), Tenant shall remove any and all 20th Floor
Core Space Alterations and all items otherwise being stored by Tenant at the
20th Floor Core Space, and Tenant shall repair any damage caused to the Building
as a result thereof, and shall restore the 20th Floor Core Space to its
condition existing as of the Turnover Date (ordinary wear and tear excepted),
all at Tenant's cost and expense (and with all such restoration and repair work
otherwise being performed in accordance with the term of Article Nine of the
Original Lease).
15. Entire
Agreement. The entire agreement of the parties with respect to the
subject matter hereof is set forth in this Amendment, and in the Lease as
amended hereby. No prior agreement or understanding with respect to the Lease or
this Amendment shall be valid or of any force or effect.
16. Offer to
Lease. Submission of this Amendment for examination shall not constitute
a reservation or option for the Additional Premises, or in any manner bind
Landlord or Tenant, unless and until this Amendment is signed and delivered by
both Landlord and Tenant; provided, however, that the execution and delivery of
this Amendment by Tenant shall be deemed an offer to lease the Additional
Premises and to enter into the other transactions contemplated hereby, which
offer may not be revoked by Tenant for a period of ten (10) business days after
delivery of such executed Amendment to Landlord (and then, only if Landlord has
not theretofore executed and delivered a fully executed Amendment to
Tenant).
12
17. Counterparts.
This Amendment may be executed in multiple counterparts which, when taken
together, shall constitute one and the same instrument.
18. Representation
Re: Mortgages. Landlord hereby represents and warrants to Tenant, as of
the date hereof, that no mortgage, deed of trust or similar encumbrance securing
any outstanding indebtedness exists which in any such case encumbers Landlord's
fee interest in the Building as of the date of this Amendment.
19. Parking.
It is hereby acknowledged and agreed that, as a result of Tenant's leasing of
the Additional Premises hereunder, Tenant shall be entitled to fifteen (15)
additional Parking Privileges under Section 8 of the Rider attached to the
Original Lease (i.e., being one such Parking Privilege per each 2,000 rentable
square foot increment of the Additional Premises), upon occupancy of the
Additional Premises, for the use of Tenant's employees and/or business invitees,
all subject to the terms of said Section 8 relative to Tenant's Parking
Privileges at the Building. Without limitation of the foregoing, it is
understood and agreed that if Tenant fails to initially contract for or
thereafter voluntarily reduces the number of its additional Parking Privileges
being made available under this Paragraph 19, Tenant shall retain the right to
contract for the maximum number of such additional spaces to which Tenant is
entitled under this Paragraph 19 from time to time, on a first-come,
first-served basis, all as otherwise provided in said Section 8 of the Rider to
the Original Lease.
20. Lease in
Full Force and Effect. Except as amended hereby, all the terms and
provisions of the Lease shall remain in full force and effect and are hereby
ratified and confirmed. Without limitation of the foregoing, the terms of
Section 26.8 of the Original Lease and of Section 17 of the Rider to the
Original Lease shall apply to this Amendment and to the Lease, as modified
hereby.
[Signature
Page Follows]
13
IN WITNESS WHEREOF, this
Amendment is executed by the parties as of the day and year first set forth
above.
LANDLORD:
|
TENANT:
|
|
FSP 000 XXXX XXXXXX XXXXX
LLC, a
|
KPMG LLP, a Delaware
limited
|
|
Delaware
limited liability company
|
liability
partnership
|
|
By:
|
FSP Property Management
LLC., a
|
By:
/s/ Xxxxxxxxxxx
X. Xxxxx
|
Massachusetts
limited liability company, its asset manager
|
Name: XXXXXXXXXXX X.
XXXXX
Its: PRINCIPAL IN
CHARGE
REAL ESTATE
SERVICES
|
|
By:
/s/ Xxxx X.
Xxxxxxx
|
||
Name:
Xxxx X.
Xxxxxxx
|
||
Its:
Vice
President
|
14
EXHIBIT
A
ADDITIONAL
PREMISES
A-1
EXHIBIT B
20TH FLOOR CORE SPACE
A-2
THIRD AMENDMENT TO
LEASE
THIS THIRD AMENDMENT TO LEASE
("Amendment") is made and entered into
this 4th day of March, 2004, by and between 303 XXXXXX REALTY L.L.C., a
Delaware limited liability company (hereinafter referred to as "Landlord"), and
KPMG LLP, a Delaware
limited liability partnership (hereinafter referred to as
"Tenant").
R E C I T A L
S:
A. Landlord
(as successor in interest to Metropolitan Life Insurance Company) and Tenant (as
successor in interest to KPMG Peat Marwick LLP) are parties to that certain
Office Lease dated August, 1997 ("Original Lease"), as amended
by First Amendment dated as of December 4, 1997 (the "First Amendment") and by
Second Amendment to Lease dated as of December 4, 1997 (the "Second Amendment") (such
Original Lease, as so amended by the First Amendment and Second Amendment, as
amended hereby and as amended from time to time, being collectively referred to
herein as the "Lease"),
demising premises (the "Premises") in the Building
commonly known as 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx; and
B. Landlord
and Tenant desire to amend the Lease to, among other things, modify certain
fixed expansion rights thereunder, upon the terms and conditions hereinafter set
forth.
NOW, THEREFORE. in
consideration of the mutual covenants and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Landlord and Tenant hereby amend the Lease in the following
respects only and hereby agree as follows:
1. Defined
Terms. All capitalized terms used but not otherwise defined herein shall
have the same meanings as set forth in the Lease.
2. Expansion
Options. Section 7 of the Rider (said Rider, as amended from time to
time, being referred to herein as the "Rider") to the Original Lease
(entitled "Expansion Options"), as heretofore amended by Paragraph 6 of the
First Amendment, is hereby further amended as follows:
(a) Option
No. 1C and Option No. 2, as set forth in Section 7(a) of said Rider, is hereby
deleted, and the following is hereby substituted therefor:
Option
No.
|
Location
|
Size of Option
Space
|
Exercise
Date
|
Delivery
Date
|
Lease
Exhibit
|
1C
|
12th
floor
|
1.
One-third (1/3) of floor
|
1/1/2005
|
1/1/2006-
|
F,
G
|
or
|
6/30/2007
|
||||
20th
floor
|
|||||
2.
One-third (1/3) of floor
|
4/1/2006
|
4/1/2007-
|
F,
G
|
||
12/31/2008
|
|||||
3. One-third (1/3) of
floor
|
1/1/2008
|
1/1/2009-
|
F,
G
|
||
6/30/2010
|
|||||
2
|
12th
floor
|
One-third
(1/3) of floor
|
1/1/2011
|
1/1/2012-
|
F,
G
|
or
|
6/30/2013
|
||||
20th
floor
|
(provided
that Tenant has exercised the First Renewal Option)
|
(b) It
is acknowledged that the exact size, location and timing of delivery of each
Expansion Space shall be determined by Landlord in its sole discretion so long
as the Expansion Space meets the parameters described in Section 7(a) of the
Rider, all as otherwise provided in said Section 7 of the Rider. It is further
agreed that, as used in said Section 7 of the Rider, the requisite
size of the Expansion Space under Options Nos. 1C and 2 (i.e., being stated
above as "One-third (1/3) of floor") may vary by plus or minus 10%, at
Landlord's option, to accommodate configuration flexibility.
(c) As
additional clarification to the terms of subparagraph (h) of Section 11 of the
Rider, the parties agree that if Tenant, pursuant to Section 11 of the Rider,
exercises its right to lease any Refusal Space on the 12th or 20th floors of the
Building (herein, the "Expansion Refusal Space") at any time after the Effective
Date hereof and prior to the latest required Exercise Date for any fixed
expansion option under Section 7 of the Rider (as such latest required dates are
set forth in Paragraph 2(a) above under the column heading "Exercise Date"),
then, at Landlord's election, Landlord may deduct up to the entire such Rentable
Area of any such Expansion Refusal Space so leased by Tenant under Section 11 of
the Rider from the required size of the Expansion Space for the next succeeding
fixed expansion option(s) under Section 7 of the Rider. To illustrate the
foregoing, if Tenant exercises its "ROFR" under Section 11 of the Rider with
respect to one-sixth (1/6th) of floor 12 following the Effective Date hereof and
prior to January 1, 2005 (i.e., being the latest required Exercise Date for the
first expansion option under Option No. 1C), then Landlord shall have the right
to deduct an amount up to the Rentable Area of 1/6th of the 12th floor from the
requisite size of the Expansion Space required under the first expansion option
under Option No. 1C. As further illustration of the foregoing, if Tenant
exercises its "ROFR" under Section 11 of the Rider with respect to one-half
(1/2) of floor 20 at any time following January 1, 2005 and prior to April 1,
2006 (i.e., being the latest required Exercise Date for the second expansion
option under
2
Option
No. 1C), then Landlord shall have the right to deduct an amount up to the
Rentable Area of 1/3rd of the 20th floor from the requisite size of the
Expansion Space under the second expansion option under Option No. 1C, and up to
an amount equal to the Rentable Area of 1/6th of the Rentable Area of the 20th
floor from the requisite size of the Expansion Space under the third expansion
option under Option No. 1C.
3. Real
Estate Brokers. Landlord and Tenant each represent and warrant to the
other that such party making the representation has not dealt with any broker in
connection with this Amendment. Landlord and Tenant each agree to
indemnify and hold the other harmless from all loss, damages, liabilities,
claims, costs and expenses (including reasonable attorneys' fees) arising from
any other claims or demands of any broker or brokers or finders with whom the
indemnifying party dealt for any commission alleged to be due such broker,
brokers or finders in connection with this Amendment.
4. Present
Status. Tenant certifies to Landlord that as of the execution and
delivery of this Amendment by both Tenant and Landlord, Landlord is not in
default under the Lease by reason of failure to perform any obligations
thereunder. Such certificate is given to the actual knowledge of
Tenant.
5. Notice.
Landlord's notice address as described in Article Twenty-Four of the Original
Lease is hereby deleted and the following is substituted therefor:
Notices
to Landlord shall be addressed to:
303
Xxxxxx Realty L.L.C.
c/x
Xxxxx
000 Xxxx
Xxxxxx Xxxxx
Xxxxxxx,
Xxxxxxxx 00000
Attention:
Property Manager
with an
additional copy to:
Xxxxx
Interests Limited Partnership
|
00
Xxxx Xxxxxxx Xxxxxx
|
|
Xxxxx
000
|
|
Xxxxxxx,
Xxxxxxxx 00000
|
|
Attention:
Xxxxxx X. Xxxxxxx
|
3
and
to:
303
Xxxxxx Realty L.L.C.
c/o X.X.
Xxxxxx Xxxxxxx Asset Management Inc.
000 Xxxxx
Xxxxxx
Xxx Xxxx,
Xxx Xxxx 00000
Attention: Xxxx
Xxxxxxxx
6. Entire
Agreement. The entire
agreement of the parties with respect to the subject matter hereof is set forth
in this Amendment and in the Lease as amended hereby. No prior agreement or
understanding with respect to the Lease and this Amendment shall be valid or of
any force or effect.
7. Offer. This Amendment
shall not become effective until executed and delivered by both Landlord and
Tenant.
8. Counterparts. This Amendment
may be executed in multiple counterparts which, when taken together, shall
constitute one and the same instrument.
9. Lease in
Full Force and Effect. Except as amended
hereby, all the terms and provisions of the Lease shall remain in full force and
effect, and are hereby ratified and confirmed. Without limitation of the
foregoing, Section 26.8 of the Original Lease shall apply to this Amendment and
to the Lease, as amended hereby.
[Signature
Page to Follow]
4
IN WITNESS WHEREOF, the
parties have entered into this Amendment as of the day and year first above
written.
TENANT:
|
LANDLORD:
|
||||
KPMG LLP, a Delaware
limited liability
|
303 XXXXXX REALTY L.L.C.,
a Delaware limited
|
||||
partnership
|
liability
company
|
||||
By:
|
Xxxxx
Three Illinois Center Associates Limited
|
||||
By: /s/ Xxxxxxx X.
Xxxxxx
|
Partnership,
|
||||
Name: Xxxxxxx
X. Xxxxxx
|
its
managing member
|
||||
Title:
Partner
|
|||||
National Director
Real Estate
Services
|
By:
|
Hines Three Illinois Center
L.L.C., a general partner
|
|||
By:
|
Xxxxx Interests Limited
Partnership, a member
|
||||
By:
|
Xxxxx Holdings, Inc.,
its general partner
|
||||
By:
/s/ Xxxxxx X.
Xxxxxxx
|
|||||
Name:
Xxxxxx X. Xxxxxxx
|
|||||
Title:
Senior Vice President
|
|||||
5
SECOND AMENDMENT TO
LEASE
THIS
SECOND AMENDMENT TO LEASE (the "Amendment") is made as of the 4th day of
December, 1997 by and between METROPOLICTAN LIFE INSURANCE
COMPANY, a New York corporation ("Landlord") and KPMG PEAT MARWICK, LLP, a
Deleware limited liability partnership ("Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant
entered into that certain lease dated as of August ____, 1997; as amended by
that certain First Amendment dated as of November 21, 1997 (collectively, the
"Lease"); and
WHEREAS, Landlord and Tenant
desire to amend the Lease as hereinafter set forth.
NOW, THEREFORE, in
consideration of the mutual benefits to be derived, the parties hereby agree to
amend the Lease and the Lease is hereby amended as follows:
1. Additional Premises.
The Additional Premises shall consist of 2,320 rentable square feet located on
the 3rd floor of the building as further set forth on Exhibit A attached hereto
and made a part hereof.
2. Term. The Term for
the Lease with respect to the Additional Premises shall commence as of December
15, 1997 (the "Commencement Date") and shall terminate six (6) months, fifteen
(15) days thereafter on June 30, 1998 unless sooner terminated as provided for
in the terms of the Lease (such period of time between December 15, 1997 and
June 30, 1998 being hereinafter known as the "Additional Premises
Term")
3. Rent. As Rent under
the Lease for the Additional Premises, Tenant shall pay Landlord the sum of
$3,673.33 per month which amount includes a charge of $1.00 per square foot per
year for electrical usage.
4. Tenant Improvements.
The Premises shall be delivered in an AS IS condition, free from any and all
Hazardous material, and Landlord has no obligation to make any improvement to
the Premises. Notwithstanding anything to the contrary contained in the Lease,
Tenant shall be responsible for the work and the costs necessary to construct a
demising partition wall on the south side of the Additional Premises and Tenant
shall, at its sole cost and expense, remove said demising partition wall within
thirty (30) days after vacating the Additional Premises. Tenant shall be
required to enter the Additional Premises through vacant space, not through the
Expansion Space.
5. Leasing Commission.
Tenant represents that, except for Xxxxxxx & Wakefield State Street, Inc.,
Tenant has no dealt with any real estate broker, sales person, or finder in
connection with this Amendment, and no such person initiated or participated in
the negotiation of this Amendment, or showed the Additional Premises to Tenant.
Tenant hereby agrees to indemnify, protect, defend and hold Landlord and the
Indemnitees, harmless from and against any and all liabilities and claims for
commissions and fees arising out of a breach of the foregoing representation.
Landlord shall be responsible for the payment of all commissions to the
broker(s), if any, specified in this Section 5.
6. Exculpation. Tenant
agrees, on its behalf and on behalf of its successors and assigns, that any
liability of Landlord with respect to this Amendment shall never exceed the
amount of $3,000,000 and Tenant shall not be entitled to any judgment in excess
of such amount.
7. Survival of Lease
Terms. All terms and conditions of the Lease, which do not in any way
conflict with the terms and conditions of this Amendment, shall remain in full
force and effect during the term of the Lease. Further, all defined terms shall
have the same meaning as the Lease, except as changed or modified
herein.
2
IN WITNESS WHEREOF, the
Landlord and Tenant have executed this Amendment to Lease by their duly
authorized representatives as of the date and year first above
written.
Landlord:
METROPOLITAN
LIFE INSURANCE COMPANY
a New
York corporation
By: /s/ [Signature
Illegible]
Its: Vice President
Date: 12/15/97
Tenant:
KPMG Peat Marwick
LLP,
a
Delaware limited liability partnership
By: /s/ Xxxxxx X. Xxxxxx
Its: XXXXXX X. XXXXXX
Date: CHIEF FINANCIAL
OFFICER
3
FIRST
AMENDMENT
THIS
FIRST AMENDMENT is made as of the 4th day of December, 1997, between
METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation ("Landlord"), and
KPMG Peat Marwick LLP, a Delaware limited liability partnership
("Tenant").
W
I T N E S S E T H :
WHEREAS,
Landlord and Tenant entered into a Lease dated as of August __, 1997 ("Lease"),
pursuant to which Tenant leased 200,502 square feet on the 13th, 14th, 15th,
16th, 17th, 18th and 19th floors of the building located at 000 Xxxx Xxxxxx
Xxxxx, Xxxxxxx, Xxxxxxxx ("Building"); and
WHEREAS,
Landlord and Tenant desire to enter into this First Amendment (hereinafter
referred to as "Amendment") for the purpose of expanding the
Premises.
NOW,
THEREFORE, for a good and valuable consideration, the receipt and sufficiency
being hereby acknowledged, Landlord and Tenant agree as follows:
1. Addition of Space. Commencing
four (4) months after Landlord's delivery of possession of the Expansion Space
(as hereinafter defined) to Tenant (the "Expansion Date"):
(a) The
space consisting of approximately 28,186 rentable square feet on the 22nd floor
as shown on Exhibit J which is attached to the Lease ("Expansion Space") shall
be added to and become part of the Initial Premises, subject to all of the terms
and conditions of the Lease currently in effect, except as expressly modified
herein.
(b) The
number "200,502" in Section 1.1(10) of the Lease is hereby deleted and the
number "228,688" is substituted therefor.
(c) The
percentage "26.0348%" in Section 1.1(13) of the Lease is hereby deleted and the
percentage "29.6947%" is substituted therefor.
2. Term. The Expiration Date of
the Lease with respect to the Expansion Space shall be August 31, 2012 (i.e.,
coterminous with the remainder of the Premises).
3. Base Rent; Rent Adjustments.
Commencing on the Expansion Date, Monthly Base Rent shall be due and
owing from Tenant for the Expansion Space at the applicable rates per square
foot set forth in Section 1.1(8) and shall be payable as set forth in Article 3
of the Lease. In addition, on the Expansion Date, Tenant shall commence paying
all
Rent
Adjustments in accordance with the increase in the size of the Premises and
Tenant's Share as set forth in Section l(c) above.
|
4.
|
Possession of Expansion
Space.
|
(a) Tenant
is currently in possession of the Expansion Space pursuant to the Existing Lease
and agrees ( subject to Landlord's completion of its obligations with respect to
floor leveling and the installing of sprinklers in the Expansion Space as
hereinafter set forth) to accept the same "as is" without any agreements,
representations, understandings or obligations on the part of Landlord to
perform any alterations, repairs or improvements. Tenant shall complete its
demolition work in the Expansion Space within thirty (30) days after Tenant
moves all or substantially all of its operations from the Existing Premises to
the Initial Premises under this Lease, which move shall occur no later than
January 31, 1999. After completion of the demolition Tenant shall surrender
possession of the Expansion Space to Landlord for the purpose of performing the
floor leveling work. Prior to re-delivery of possession of the Expansion Space
to Tenant for purpose of determining the Expansion Date as set forth in Section
1, Landlord shall complete, as Landlord's Work, all floor leveling in the
Expansion Space in accordance with the standards for such floor leveling set
forth in Section 8 of Attachment 1 to Exhibit B of the Lease. No other
Landlord's Work shall be done by Landlord except for the installation of
sprinklers in accordance with the standards for sprinklers set forth in Section
9 of Attachment 1 to Exhibit B of the Lease; such sprinkler work shall be
performed by Landlord concurrently with any Tenant Alterations being performed
by Tenant in the Expansion Space. Both parties agree that they and their
contractors shall cooperate reasonably and in good faith with one another so
that the performance by either party of its work does not materially impair or
delay the performance by the other party of its work. Landlord shall re-deliver
possession of the Expansion Space to Tenant for the purpose of determining the
Expansion Date no later than sixty (60) days after Tenant completes its
demolition work within the Expansion Space (the "Delivery Date") such that
Landlord can perform the floor leveling work.
(b) If
Landlord does not complete its floor leveling until after the Delivery Date,
then such Landlord delay shall, on a day-for-day basis for each day after the
Delivery Date that Landlord has not completed the floor leveling, be applied to
reduce the period of any Tenant Delay; and if there are no Tenant Delays or if
such Landlord delay exceeds the total of all Tenant Delays, then such Landlord
delay (if there are no Tenant Delays) or the number of days by which the
Landlord delay exceeds the total of all Tenant Delays shall, on a day-for-day
basis, delay the January 31, 1999 date set forth in Section 15 of the Rider to
the Lease. Any such delay by Landlord shall not subject Landlord to
-2-
|
any
liability for any loss or damage resulting therefrom, and Tenant's sole
remedy with respect thereto shall as set forth in the preceding
sentence.
|
(c) Tenant
shall be subject, with respect to the Expansion Space, to all of the terms,
covenants and conditions of the Lease (except for the payment of Monthly Base
Rent and Tenant's Share of Operating Expenses and Taxes) during all periods
prior to the Expansion Date that Tenant is in possession of the Expansion
Space.
5. Tenant Alterations; 22nd Floor
Allowance.
(a) Tenant
shall, at its expense (subject to the 22nd Floor Allowance set forth in
Subsection 5(b) below), cause the Expansion Space to be improved for Tenant's
use (the "Tenant Alterations"). In addition to such improvements as Tenant shall
wish to perform, the Tenant Alterations shall include the closing of the
stairwell between the 22nd and 23rd floors.
(b) Landlord,
provided no Default under the Lease has occurred which remains uncured, hereby
grants Tenant an allowance (the "22nd Floor Allowance") in an amount equal to
$35.00 multiplied by a fraction, the numerator of which is the number of months
that Tenant leases such Expansion Space during the Initial Term (e.g., the
number of months starting with the month in which the Expansion Date occurs) and
the denominator of which is 180. In the event of any Landlord delay in
completion of the floor leveling as set forth in Section 4 above, the numerator
of the preceding fraction shall be the number of months that Tenant would have
leased the Expansion Space if there had been no Landlord delay (i.e., the number
of months starting with the month in which the Expansion Date would have
occurred if there had been no Landlord delay).
(c) Except
to the extent inconsistent with the terms of this Amendment, the Landlord's Work
and Tenant Alterations shall be performed in accordance with the provisions of
Exhibit B, including, without limitation, those provisions relating to
Landlord's right to approve Tenant's plans and specifications and the
disbursement of the 22nd Floor Allowance.
6. Other Options. Option 3 as set forth in Section
7 ("Expansion Options") of the Rider to the Lease is hereby deemed to be deleted
from the Lease and shall be of no further force and effect. Section 11 ("Right
of First Refusal") of the Rider to the Lease is hereby amended to provide that
Tenant shall have rights of first offer/refusal as set forth therein on any or
all space in the mid-rise elevator bank and on floors 21 and 23, but not on
floors 22 or 24.
-3-
7. Brokers. Landlord and Tenant
each represent that no brokers, agents or other persons other than Xxxxxxx &
Xxxxxxxxx State Street, Inc. an Illinois corporation, as representative for
Landlord, and LaSalle Partners, as representative for Tenant, were involved in
the negotiation of this Amendment. Tenant indemnifies and holds Landlord and its
agents and employees harmless from all claims of any brokers in connection with
this Amendment claiming through or under Tenant and Landlord indemnifies and
holds Tenant and its agents and employees harmless from all claims of any broker
in connection with this Amendment claiming through or under
Landlord.
8. Entire Agreement; Amendment.
This Amendment sets forth the entire agreement of the parties with
respect to this subject matter hereof and no representations, promises or
inducements have been made by the parties hereto other than as appear in this
Amendment. This Amendment may not be amended except in writing signed by the
parties hereto.
9. No Offer. This Amendment shall
not be binding until executed and delivered by both parties hereto.
10. Terms of Lease. Except as
herein modified or amended, the provisions, conditions and terms of the Lease
shall remain unchanged and in full force and effect. The capitalized terms used
in this Amendment shall have the same definitions as set forth in the applicable
Lease, to the extent that such capitalized terms are defined therein and not
redefined in this Amendment.
11. Successors and Assigns. This
Amendment shall be binding upon and shall inure to the benefit of the parties
hereto and their successors and assigns.
-4-
IN
WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the
date first above written.
LANDLORD
|
|||
303
XXXXXX REALTY L.L.C.
|
|||
BY:
|
Hines
Three Illinois Center Associates
|
||
Limited
Partnership, its managing member
|
|||
ATTEST:
|
BY:
|
Hines
Three Illinois Center L.L.C.,
|
|
its
general partner
|
|||
BY:
|
Xxxxx
Interests Limited Partnership,
|
||
a
member
|
|||
By
/s/ Xxxxxx X.
Xxxxxxx
|
BY:
|
Xxxxx
Holdings, Inc., its general
partner
|
|
Its
Vice
President
|
|||
BY:
/s/ C. Xxxxx Xxxxxxxxx
|
|||
Name:
C. Xxxxx Xxxxxxxxx
|
|||
Title:
Executive Vice President
|
|||
TENANT
|
|||
KPMG
Peat Marwick LLP, a Delaware
|
|||
limited
liability partnership
|
|||
ATTEST:
|
|||
By
/s/ Xxxxxxx X.
Xxxxxx
|
By
|
/s/ Xxxxxx X.
Xxxxxx
|
|
Its
|
Its
|
CHIEF FINANCIAL
OFFICER
|
-5-
OFFICE
LEASE
BETWEEN
METROPOLITAN
LIFE INSURANCE COMPANY,
A
NEW YORK CORPORATION (LANDLORD)
AND
KPMG
PEAT MARWICK LLP, A DELAWARE
LIMITED
LIABILITY PARTNERSHIP (TENANT)
200,502
SQUARE FEET ON THE 13TH, 14TH, 15TH,
16TH,
17TH, 18TH, 19TH AND 21ST OR 22ND (IF APPLICABLE) FLOORS (PREMISES)
DATED: AUGUST __, 1997
TABLE OF
CONTENTS
PAGE
|
|
ARTICLE
ONE -- BASIC LEASE PROVISIONS
|
1
|
1.1
BASIC LEASE PROVISIONS
|
1
|
1.2
ENUMERATION OF EXHIBITS
|
3
|
1.3
DEFINITIONS
|
3
|
ARTICLE
TWO -- PREMISES, TERM AND FAILURE TO GIVE POSSESSION
|
12
|
2.1
LEASE OF PREMISES
|
13
|
2.2
TERM
|
13
|
2.3
FAILURE TO GIVE POSSESSION
|
13
|
2.4
AREA OF PREMISES
|
13
|
2.5
CONDITION OF PREMISES
|
14
|
ARTICLE
THREE -- RENT
|
14
|
ARTICLE
FOUR -- RENT ADJUSTMENTS AND PAYMENTS
|
15
|
4.1
RENT ADJUSTMENTS
|
15
|
4.2
STATEMENT OF LANDLORD
|
15
|
4.3
BOOKS AND RECORDS
|
16
|
4.4
PARTIAL OCCUPANCY
|
17
|
ARTICLE
FIVE -- INTENTIONALLY OMITTED
|
18
|
ARTICLE
SIX -- SERVICES
|
18
|
6.1
LANDLORD'S GENERAL SERVICES
|
18
|
6.2
ELECTRICAL SERVICES
|
20
|
6.3
ADDITIONAL AND AFTER-HOUR SERVICES
|
21
|
6.4
PHONE SERVICES
|
21
|
6.5
DELAYS IN FURNISHING SERVICES
|
22
|
ARTICLE
SEVEN -- POSSESSION, USE AND CONDITION OF PREMISES
|
23
|
7.1
POSSESSION AND USE OF PREMISES
|
23
|
7.2
LANDLORD ACCESS TO PREMISES
|
24
|
7.3
QUIET ENJOYMENT
|
26
|
ARTICLE
EIGHT -- MAINTENANCE
|
26
|
8.1
LANDLORD'S MAINTENANCE
|
26
|
8.2
TENANT'S MAINTENANCE
|
26
|
ARTICLE
NINE -- ALTERATIONS AND IMPROVEMENTS
|
27
|
9.1
TENANT’S ALTERATIONS AND ADDITIONS
|
27
|
9.2
LIENS
|
29
|
-i-
ARTICLE
TEN -- ASSIGNMENT AND SUBLETTING
|
30
|
10.1
ASSIGNMENT AND SUBLETTING
|
30
|
10.2
RECAPTURE
|
33
|
10.3
EXCESS RENT
|
33
|
10.4
TENANT LIABILITY
|
35
|
10.5
ASSUMPTION AND ATTORNMENT
|
35
|
10.6
TRANSFERABILITY OF RIGHTS
|
35
|
ARTICLE
ELEVEN -- DEFAULT AND REMEDIES
|
35
|
11.1
EVENTS OF DEFAULT
|
36
|
11.2
LANDLORD'S REMEDIES
|
36
|
11.3
ATTORNEY'S FEES
|
38
|
11.4
BANKRUPTCY
|
38
|
11.5
DEFAULT BY LANDLORD; TENANT’S REMEDIES
|
39
|
ARTICLE
TWELVE -- SURRENDER OF PREMISES
|
40
|
12.1
IN GENERAL
|
40
|
12.2
LANDLORD’S RIGHTS
|
41
|
ARTICLE
THIRTEEN -- HOLDING OVER
|
41
|
ARTICLE
FOURTEEN -- DAMAGE BY FIRE OR OTHER CASUALTY
|
41
|
14.1
UNTENANTABILITY
|
41
|
14.2
DAMAGE WITHOUT UNTENANTABILITY
|
43
|
14.3
RENT ABATEMENT
|
44
|
ARTICLE
FIFTEEN -- EMINENT DOMAIN
|
44
|
15.1
TAKING OF WHOLE OR SUBSTANTIAL PART
|
44
|
15.2
TAKING OF PART
|
44
|
15.3
COMPENSATION
|
45
|
ARTICLE
SIXTEEN -- INSURANCE
|
45
|
16.1
TENANT’S INSURANCE
|
45
|
16.2
FORM OF POLICIES
|
46
|
16.3
LANDLORD’S INSURANCE
|
46
|
16.4
WAIVER OF SUBROGATION
|
47
|
16.5
NOTICE OF CASUALTY
|
48
|
ARTICLE
SEVENTEEN -- WAIVER OF CLAIMS AND INDEMNITY
|
48
|
17.1
WAIVER OF CLAIMS
|
48
|
17.2
INDEMNITY BY TENANT
|
48
|
ARTICLE
EIGHTEEN -- RULES AND REGULATIONS
|
49
|
18.1
RULES
|
49
|
-ii-
18.2
ENFORCEMENT
|
49
|
ARTICLE
NINETEEN -- LANDLORD'S RESERVED RIGHTS
|
49
|
ARTICLE
TWENTY -- ESTOPPEL CERTIFICATE
|
50
|
20.1
IN GENERAL
|
50
|
20.2
ENFORCEMENT
|
51
|
ARTICLE
TWENTY-ONE -- INTENTIONALLY OMITTED
|
51
|
ARTICLE
TWENTY-TWO -- REAL ESTATE BROKERS
|
51
|
ARTICLE
TWENTY-THREE -- MORTGAGEE PROTECTION
|
52
|
23.1
SUBORDINATION AND ATTORNMENT
|
52
|
23.2
MORTGAGEE PROTECTION
|
53
|
ARTICLE
TWENTY-FOUR -- NOTICES
|
53
|
ARTICLE
TWENTY-FIVE -- INTENTIONALLY OMITTED
|
55
|
ARTICLE
TWENTY-SIX -- MISCELLANEOUS
|
55
|
26.1
LATE CHARGES
|
55
|
26.2
WAIVER OF JURY TRIAL
|
55
|
26.3
INTENTIONALLY OMITTED
|
55
|
26.4
OPTION
|
55
|
26.5
AUTHORITY
|
55
|
26.6
ENTIRE AGREEMENT
|
56
|
26.7
INTENTIONALLY OMITTED
|
56
|
26.8
EXCULPATION
|
56
|
26.9
ACCORD AND SATISFACTION
|
56
|
26.10
LANDLORD'S OBLIGATIONS ON SALE OF BUILDING
|
56
|
26.11 BINDING
EFFECT
|
57
|
26.12
CAPTIONS
|
57
|
26.13
APPLICABLE LAW
|
57
|
26.14
ABANDONMENT
|
57
|
26.15
LANDLORD'S RIGHT TO PERFORM TENANT’S DUTIES
|
57
|
26.16
COUNTERPARTS
|
58
|
26.17
RIDERS
|
58
|
EXHIBIT
A
|
PLAN
OF PREMISES
|
EXHIBIT
B
|
WORKLETTER
AGREEMENT
|
EXHIBIT
C
|
SYSTEMS
SPECIFICATIONS
|
EXHIBIT
D
|
RULES
AND REGULATIONS
|
EXHIBIT
E
|
CLEANING
SPECIFICATIONS
|
-iii-
EXHIBIT
F
|
12TH FLOOR EXPANSION SPACE
|
EXHIBIT G
|
20TH FLOOR EXPANSION SPACE
|
EXHIBIT H
|
21ST FLOOR EXPANSION SPACE
|
EXHIBIT
I
|
FORM
OF NON-DISTURBANCE AGREEMENT
|
EXHIBIT
J
|
22ND
FLOOR EXPANSION SPACE
|
EXHIBIT
K
|
DISCHARGE
OF MEMORANDUM OF LEASE
|
RIDER
|
OTHER
PROVISIONS
|
-iv-
INDEX
OF DEFINED TERMS
ADA
|
23
|
Adjustment
Year
|
3
|
Advice
(Rider)
|
15
|
Affiliate
|
3
|
Base
Building Work (Exhibit B)
|
1
|
Building
|
3
|
C&W
|
50
|
Change
Order (Exhibit B)
|
5
|
Commencement
Date
|
3
|
Common
Areas
|
3
|
Control
|
31
|
Costs
of the Tenant Work (Exhibit B)
|
1
|
CPI
(Rider)
|
10
|
CPI
Escalation Amount (Rider)
|
10
|
Decoration
|
4
|
Default
|
35
|
Default
Rate
|
4
|
Delivery
Date
|
12
|
Demising
Work
|
4
|
Early
Termination Date (Rider)
|
13
|
Electing
Party
|
37
|
Engineering
Drawings (Exhibit B)
|
3
|
Environmental
Laws
|
4
|
Excess
Rent
|
33
|
Excess
Rent Sharing Space
|
33
|
Existing
Improvements
|
39
|
Existing
Lease (Rider)
|
1
|
Existing
Premises (Rider)
|
1
|
Expansion
Notice (Rider)
|
7
|
Expansion
Option (Rider)
|
6
|
Expansion
Space (Rider)
|
6
|
Expiration
Date
|
4
|
First
Extension (Rider)
|
4
|
First
Party
|
37
|
First
Reduction Notice (Rider)
|
11
|
First
Reduction Option (Rider)
|
11
|
First
Renewal Notice (Rider)
|
4
|
First
Renewal Option (Rider)
|
4
|
Force
Majeure
|
4
|
Hazardous
Material
|
4
|
-i-
Improvement
Allowance (Exhibit B)
|
2
|
Indemnities
|
5
|
Initial
Premises
|
13
|
Initial
Term
|
1
|
Land
|
5
|
Landlord
|
1
|
Landlord
Delay
|
5
|
Landlord
Work
|
5
|
Landlord
Work (Exhibit B)
|
1
|
Landlord’s
Notice
|
40
|
Landlord’s
Statement
|
15
|
LaSalle
|
50
|
Laws
|
5
|
Lease
|
5
|
Lease
Year
|
5
|
Low-rise
Refusal Space (Rider)
|
14
|
Marketable
Unit
|
30
|
Mid/High-rise
Refusal Space (Rider)
|
14
|
Monthly
Base Rent
|
5
|
Mortgagee
|
5
|
National
Holidays
|
5
|
Xxxxxxx
(Rider)
|
1
|
Xxxxxxx
Lease (Rider)
|
1
|
Xxxxxxx
Space (Rider)
|
1
|
New
Storage Space (Rider)
|
3
|
Notice
of Exercise (Rider)
|
15
|
Operating
Expenses
|
5
|
Operator
(Rider)
|
9
|
Option
Amendment (Rider)
|
18
|
Parking
Privileges (Rider)
|
9
|
Plans
(Rider)
|
21
|
Premises
|
9
|
Prevailing
Market (Rider)
|
4
|
Property
|
10
|
Prospect
(Rider)
|
15
|
Prospect
Terms (Rider)
|
15
|
Real
Property
|
10
|
Recapture
|
32
|
Recapture
Notice
|
32
|
Recapture
Space
|
32
|
Refusal
Space (Rider)
|
14
|
Reletting
Expenses
|
36
|
Rent
|
10
|
-ii-
Rent
Adjustment
|
10
|
Rent
Adjustment Deposit
|
10
|
Rentable
Area of the Xxxxxxxx
|
00
|
Xxxxxxxx
Xxxx of the Premises
|
00
|
XXXX
(Xxxxx)
|
14
|
Second
Expiration Date (Rider)
|
4
|
Second
Extension (Rider)
|
4
|
Second
Party
|
37
|
Second
Reduction Notice (Rider)
|
12
|
Second
Reduction Option (Rider)
|
11
|
Second
Renewal Notice (Rider)
|
4
|
Second
Renewal Option (Rider)
|
4
|
Security
Deposit
|
10
|
Space
Plan (Exhibit B)
|
10
|
Statement
|
15
|
Storage
Space (Rider)
|
2
|
Substantially
Complete
|
10
|
Substantially
Untenantable
|
43
|
System
(Rider)
|
21
|
Taxes
|
10
|
Tenant
|
1
|
Tenant
Additions
|
11
|
Tenant
Alterations
|
11
|
Tenant
Delay
|
11
|
Tenant
Electric (Attachment 1)
|
1
|
Tenant
Work
|
12
|
Tenant
Work (Exhibit B)
|
1
|
Tenant’s
Notice
|
29
|
Tenant’s
Share
|
12
|
Term
|
12
|
Termination
Date
|
12
|
Termination
Notice (Rider)
|
13
|
Termination
Option (Rider)
|
13
|
Untenantable
|
41
|
Use
|
3
|
Work
(Exhibit B)
|
1
|
Working
Drawings (Exhibit B)
|
10
|
Workletter
|
12
|
-iii-
OFFICE
LEASE
ARTICLE
ONE
BASIC LEASE PROVISIONS
BASIC LEASE PROVISIONS
1.1 BASIC
LEASE PROVISIONS
In the
event of any conflict between these Basic Lease Provisions and any other Lease
provision, such other Lease provision shall control.
|
(1)
|
BUILDING
AND ADDRESS:
|
000 Xxxx Xxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
|
(2)
|
LANDLORD
AND ADDRESS:
|
METROPOLITAN LIFE INSURANCE COMPANY,
a
New York corporation
x/x Xxxxxxx & Xxxxxxxxx Xxxxx
Xxxxxx, Xxx.
000 Xxxx Xxxxxx Xxxxx - Xxxxx
0000
Xxxxxxx, Xxxxxxxx 00000
|
(3)
|
TENANT
AND CURRENT ADDRESS:
|
KPMG Peat
Marwick LLP, a Delaware limited liability partnership
000 Xxxx
Xxxxxx Xxxxx
Xxxxxxx,
Xxxxxxxx 00000
The term
"Tenant" as used in this Lease shall mean the above-named entity and its
successors by merger, consolidation or otherwise, excluding
assignees.
(4) DATE
OF LEASE: August __, 1997
(5) INITIAL
TERM: Fifteen (15) years
(6) COMMENCEMENT
DATE: September 1, 1997
(7) EXPIRATION
DATE: August 31, 2012
(8) MONTHLY
BASE RENT (subject to Section 2.4 and Section 2 of Rider):
Period
|
Monthly
|
Annually
|
Rate/SF
|
First
Lease Year
|
$183,793.50
|
$2,205,522.00
|
$11.00
|
Second
Lease Year
|
$187,928.85
|
$2,255,146.25
|
$11.25
|
Third
Lease Year
|
$192,157.25
|
$2,305,887.04
|
$11.50
|
Fourth
Lease Year
|
$196,480.79
|
$2,357,769.49
|
$11.76
|
Fifth
Lease Year
|
$200,901.61
|
$2,410,819.31
|
$12.02
|
Sixth
Lease Year
|
$205,421.90
|
$2,465,062.74
|
$12.29
|
Seventh
Lease Year
|
$210,043.89
|
$2,520,526.65
|
$12.57
|
Eighth
Lease Year
|
$214,769.88
|
$2,577,238.50
|
$12.85
|
Ninth
Lease Year
|
$219,602.20
|
$2,635,226.37
|
$13.14
|
Tenth
Lease Year
|
$224,543.25
|
$2,694,518.96
|
$13.44
|
Eleventh
Lease Year
|
$229,595.47
|
$2,755,145.64
|
$13.74
|
Twelfth
Lease Year
|
$234,761.37
|
$2,817,136.42
|
$14.05
|
Thirteenth
Lease Year
|
$240,043.50
|
$2,880,521.99
|
$14.37
|
Fourteenth
Lease Year
|
$245,444.48
|
$2,945,333.73
|
$14.69
|
Fifteenth
Lease Year
|
$250,966.98
|
$3,011,603.74
|
$15.02
|
(9) RENTABLE
AREA OF THE BUILDING: 770,130 square feet
(10)
RENTABLE AREA OF THE PREMISES: 200,502 square feet, subject to Section
2.4
(11) SECURITY
DEPOSIT: None
(12) SUITE
NUMBER OF PREMISES: Suites 1300, 1400, 1500, 1600, 1700, 1800, 1900 and (if
applicable pursuant to Section 2.4) 2100 or 2200
(13) TENANT’S
SHARE: 26.0348%, subject to Section 2.4
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(14) USE
OF PREMISES: General office and/or professional business use and any uses
incidental thereto, including, but not limited to, a cafeteria, training rooms
for employees' and clients' use, computer room, vending areas and other such
incidental uses.
1.2 ENUMERATION
OF EXHIBITS
The
exhibits set forth below and attached to this Lease are incorporated in this
Lease by this reference:
EXHIBIT
A
|
Plan
of Premises
|
EXHIBIT
B
|
Workletter
Agreement
|
EXHIBIT
C
|
Systems
Specifications
|
EXHIBIT
D
|
Rules
and Regulations
|
EXHIBIT
E
|
Cleaning
Specifications
|
EXHIBIT
F
|
12th
Floor Expansion Space
|
EXHIBIT
G
|
20th
Floor Expansion Space
|
EXHIBIT
H
|
21st
Floor Expansion Space
|
EXHIBIT
I
|
Form
of Non-Disturbance Agreement
|
EXHIBIT
J
|
22nd
Floor Expansion Space
|
EXHIBIT
K
|
Discharge
of Memorandum of Lease
|
RIDER
|
Other
Provisions
|
1.3 DEFINITIONS
For
purposes hereof, the following terms shall have the following
meanings:
(1) AFFILIATE:
Any corporation or other business entity which is owned or controlled by, owns
or controls, or is under common ownership or control with Tenant, or into which
Tenant is merged, consolidated or reorganized or to which all or substantially
all of Tenant's assets are sold.
(2) ADJUSTMENT
YEAR: Each calendar year any portion of which falls within the Term of this
Lease.
(3) BUILDING:
The office building located at 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx. The
Building's low-rise floors are floors 1 through 11, the mid-rise floors are
floors 12 through 20 and the high-rise floors are floors 21 and
higher.
(4) COMMENCEMENT
DATE: The date specified in Section 1.1(6) as the Commencement
Date.
(5) COMMON
AREAS: All areas of the Real Property made available by Landlord for the general
common use or benefit of the tenants of the Building, and their employees and
invitees, or the public, as such areas currently exist and as they may be
changed from time to
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time,
provided that any such changes to the Common Areas made by Landlord during the
Term shall be of a nature that the Common Areas remain comparable to the common
areas of other comparable highrise office buildings in downtown
Chicago.
(6) DECORATION:
Tenant Alterations which do not require a building permit and which do not
involve any of the structural elements of the Building, or any of the Building's
systems, including, without limitation, its electrical, mechanical, plumbing and
security and life/safety systems.
(7) DEFAULT
RATE: Two percent (2%) above the rate announced by American National Bank and
Trust Company of Chicago as its corporate base lending rate, from time to time,
but in no event higher than the maximum rate permitted by law.
(7A) DEMISING
WORK: Work required to separate a portion of the Premises from adjacent space,
including the following: (i) installation of new building standard entry door;
(ii) construction of new demising walls and reworking of acoustical ceiling at
the demising wall; (iii) proper demising and distributing of all HVAC (including
base board heat ), security and sprinkler systems as required because of the new
demising wall, and preparation of test and balance report; (iv) proper demising
of all electrical/computer/telephone components, including installation of a new
electrical meter and panel, installation of new telephone (homerun) conduit to
telephone closet and installation of necessary light fixtures along new demising
wall; (v) proper demising, or removal, as applicable, of all security equipment
and specialized HVAC equipment installed by Tenant and proper demising (but not
removal) of all telephone/computer and cabling equipment installed by Tenant;
and (vi) installation of any required multi-tenant corridors.
(8) ENVIRONMENTAL
LAWS: Any Law governing the use, storage, disposal or generation of any
Hazardous Material, including without limitation, the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended and
the Resource Conservation and Recovery Act of 1976, as amended.
(9) EXPIRATION
DATE: The date specified in Section 1.1(7) unless changed by operation of
Sections 6 or 10 of the Rider.
(10) FORCE
MAJEURE: Any accident, casualty, act of God, war or civil commotion, strike or
labor troubles, or any cause whatsoever beyond the reasonable control of
Landlord or Tenant, including, but not limited to, energy shortages or
governmental preemption in connection with a national emergency, or by reason of
government laws or any rule, order or regulation of any department or
subdivision thereof or any governmental agency, or by reason of the conditions
of supply and demand which have been or are affected by war or other
emergency.
(11) HAZARDOUS
MATERIAL: Such substances, material and wastes which are or become regulated
under any Environmental Law; or which are classified as hazardous or toxic under
any Environmental Law; and explosives and firearms, radioactive material,
asbestos, and polychlorinated biphenyls.
-4-
(12) INDEMNITEES:
Collectively, Landlord, any Mortgagee or ground lessor of the Property, the
property manager and the leasing manager for the Property and their respective
partners, directors, officers, agents and employees.
(13) LAND:
The parcels of real estate on which the Building is located.
(14) LANDLORD
WORK: The construction or installation of improvements to the Premises, to be
furnished by Landlord, specifically described in the Workletter attached hereto
as Exhibit B.
(14A) LANDLORD
DELAY: Any event or occurrence which delays the completion of the Tenant Work
which is caused by or is described as follows:
(a) Landlord's
delay beyond the applicable deadlines set forth in Exhibit B in submitting
plans, supplying information, approving plans, specifications or estimates,
giving authorizations or otherwise; or
(b) the
performance or completion by Landlord or any person engaged by Landlord of any
work in or about the Premises.
(15) LAWS:
All laws, ordinances, rules, regulations and other requirements adopted by any
governmental body, or agency or department having jurisdiction over the
Property, the Premises or Tenant's activities at the Premises. The term "Laws"
shall include Environmental Laws.
(16) LEASE:
This instrument and all exhibits and riders attached hereto, as may be amended
from time to time.
(17) LEASE
YEAR: The twelve month period beginning on the Commencement Date, and each
subsequent twelve month, or shorter, period until the Expiration
Date.
(18) MONTHLY
BASE RENT: The monthly rent specified in Section 1.1(8)
(19) MORTGAGEE:
Any holder of a mortgage, deed of trust or other security instrument encumbering
the Property.
(20) NATIONAL
HOLIDAYS: New Year's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day and other national holidays from time to time
recognized by a majority of first-class office buildings in downtown Chicago. As
of the date of this Lease, the Building recognizes no holidays other than the
ones specifically named above.
(21) OPERATING
EXPENSES: All costs, expenses and disbursements of every kind and nature which
Landlord shall pay or become obligated to pay (provided that
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Landlord
does, in fact, pay the same, although such payment need not be made in the year
accrued so long as it is made in either the year prior to or the year after the
year in which the cost of such payment is accrued and so long the allocation of
such payments is done on a reasonable and consistent basis) in connection with
the ownership, management, operation, maintenance, replacement and repair of the
Property (including the amortized portion of any capital expenditure or
improvement permitted hereunder, together with interest thereon), determined in
accordance with reasonable accounting practices, consistently applied. Without
limiting the generality of the foregoing, Operating Expenses shall include all
installation, hook-up or maintenance costs incurred by Landlord in connection
with telephone cables and related wiring in the Building which are not allocable
to any individual users of such service but are allocable to the Building
generally, and costs of compliance with Environmental Laws (subject to the
limitations hereinafter set forth in subsection (ee) below). Operating Expenses
shall not
include:
(a) costs
of or work allowances given for alterations of the premises of tenants of the
Building, and the costs of preparing, improving or altering space or performing
work or other tenant concessions for any existing, new or renewal tenant
including but not limited to any fees for construction, architecture or
design;
(b) costs
of capital improvements to the Building or costs related to the installation
(but not maintenance or repair) of sprinklers and the removal of asbestos.
However, except for sprinkler installation or asbestos removal, there may be
included in the Operating Expenses: (i) the amortized portions of capital
improvements installed for the purpose of reducing or controlling Operating
Expenses (but then only to the extent of any annual cost savings resulting
therefrom); (ii) the cost of compliance with applicable Laws enacted subsequent
to the date of this Lease or resulting from changes in or different
interpretations of Laws (if such different interpretations result from the
issuance of new regulations or court decisions), including the ADA (as defined
in Section 7.1(3)) which changes or different interpretations arise after the
date of this Lease; and (iii) the cost of compliance with Environmental Laws for
other than asbestos removal (amortization of same to be subject to the
limitation set forth in subsection (ee) below). Without limiting the generality
of the foregoing, upgrades or modifications to the Building's chillers to
replace existing refrigerants will be deemed to be capital improvements and the
cost thereof may be passed through to Tenant up to the amount of the reduction
in Operating Expenses resulting from such improvements;
(c) depreciation
charges;
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(d) interest
and principal payments on loans (except for loans for capital improvements which
Landlord is allowed to include in Operating Expenses as provided
above);
(e) ground
rental payments;
(f) real
estate brokerage and leasing commissions;
(g) advertising
and marketing expenses;
(h) costs
of Landlord reimbursed by insurance proceeds;
(i) expenses
(including legal fees) incurred in negotiating leases of other tenants in the
Building or enforcing lease obligations of other tenants in the Building or
costs of defense or other expenses and costs arising from the negligent acts or
omissions or wilful misconduct of Landlord, its agents, employees or contractors
or from defending claims alleging Landlord's breach of any lease;
(j) Landlord's
or Landlord's property manager's corporate general overhead or corporate general
administrative expenses;
(k) costs
of curing violations of Laws if such violations are in existence as of the date
of this Lease;
(l) compensation
paid to officers or executives of Landlord above the level of Building
Manager;
(m) the
cost of repairs incurred by reason of fire or other casualty or condemnation to
the extent that (i) Landlord is compensated therefor through proceeds of
insurance (provided, however, that Landlord's reasonable cost of adjustment
shall not be excluded from Operating Expenses) or condemnation awards; (ii)
Landlord failed to obtain insurance against such fire or casualty, if insurance
was required under the provisions of this Lease; or (iii) Landlord is not fully
compensated therefor due to the coinsurance provisions of its insurance policies
on account of Landlord's failure to obtain a sufficient amount of coverage
against such risk or such costs are in excess of any commercially reasonable
deductible; or (iv) Landlord is not fully compensated by any condemnation
award;
(n) overtime
HVAC costs or electricity costs;
(o) the
cost of performing additional services for tenants to the extent that such
service exceeds that provided by Landlord to Tenant without charge
hereunder,
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(p) "takeover
expenses" (i.e., expenses incurred by Landlord with respect to space located in
another building of any kind or nature in connection with the leasing of space
in the Building);
(q) any
amounts payable which constitute a fine, interest, or penalty for any late
payments of Operating Expenses;
(r) any
cost representing an amount paid for services or materials to a related person,
firm, or entity (i.e., a person, firm or entity affiliated with Landlord or
Landlord's managing agent) to the extent such amount exceeds the amount that
would be paid for such services or materials at the then existing market rates
to an unrelated person, firm or entity;
(s) expenses
attributable to the parking garage (except for costs of repairs such as
re-surfacing) or to storage space;
(t) the
operating costs incurred by Landlord relative to any specialty service (such as
a health club or any portion of the Building being used as a hotel) in the
Building; or any other non-office space in the Building, excluding Common Areas,
telephone rooms, mechanical and equipment rooms, HVAC equipment, the roof and
any other portions of the Building which are not public areas but which are
related to the operation of the entire Building;
(u) that
portion (if any) of management fees paid by Landlord to its managing agent which
exceeds commercially reasonable and competitive management fees for comparable
commercial office buildings in downtown Chicago;
(v) Taxes;
(w) costs
of correcting construction or design defects in the Premises or Building, except
to the extent caused by any Tenant Additions (as hereinafter
defined);
(x) that
portion of any costs or expenses relating to both the Building and to other
buildings or properties owned by Landlord, which is properly allocable or
attributable to such other buildings or properties;
(y) costs
incurred due to the violation by Landlord or any tenant of the terms and
conditions of any lease pertaining to the Building;
(z) rentals
and other related expenses, if any, incurred in leasing air-conditioning
systems, elevators or other equipment ordinarily considered to be
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of
capital nature, except to the extent that the costs of such items would have
been includible in Operating Expenses if such items had been
purchased,
(aa) space
planning costs for tenant spaces;
(bb) costs
with respect to a sale, financing or refinancing of the Building;
(cc) bad
debts loss, rent loss or reserves for bad debt or rent loss (excluding rent loss
insurance premiums);
(dd) lamp,
bulbs, ballasts and starters in tenant areas;
(ee) cost
of compliance with Environmental Laws: (i) to the extent that such Hazardous
Materials exist as of the date hereof (and, under the Environmental Laws in
effect as of the date hereof, are included in the definition of Hazardous
Materials) or (ii) in excess of $50,000 per year, provided that costs not
included in any Adjustment Year because of this limitation may be included in
subsequent Adjustment Years, subject to this limitation; and
(ff) cost
of compliance with Laws applicable to or resulting from the specific manner of
use of a particular tenant;
(gg) costs
of structural repairs with respect to any of the following: soil conditions,
footings, columns, foundations, any portion of the steel structure of the
Building, load-bearing walls and vertical and horizontal supports;
(hh) costs
not directly attributable to the ownership, management, operation, maintenance,
replacement and repair of the Property; and
(ii) expenses
which under reasonable accounting practices, consistently applied, would not be
includible in Operating Expenses as defined herein.
If any
Operating Expense, though paid in one year, relates to more than one calendar
year, such expense shall be appropriately allocated among such related calendar
years. Landlord shall manage, operate and maintain the Premises in a manner
consistent with other first-class office buildings of comparable age in downtown
Chicago in accordance with all applicable Laws and as is otherwise commercially
reasonable. Amortization of capital improvements includible within Operating
Expenses shall be determined by the item's useful life as reasonably determined
by Landlord.
(22) PREMISES:
The space located in the Building described in Section 1.1(10) and depicted on
Exhibit A attached hereto, subject to expansion or reduction pursuant to the
provisions of this Lease.
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(23) PROPERTY:
The Building, the Land, any other improvements located on the Land, including,
without limitation, any parking structures and the personal property, fixtures,
machinery, equipment, systems and apparatus located in or used in conjunction
with and of the foregoing, excluding any property owned by Tenant.
(24) REAL
PROPERTY: The Property excluding any personal property.
(25) RENT:
Collectively, Monthly Base Rent, Rent Adjustments and Rent Adjustment Deposits,
and all other charges, payments, late fees or other amounts required to be paid
by Tenant under this Lease.
(26) RENTABLE
AREA OF THE BUILDING: 770,130 square feet, which represents the sum of the
rentable area of all office space in Building.
(27) RENTABLE
AREA OF THE PREMISES: The amount of square footage set forth in Section 1.1(10),
subject to adjustment pursuant to the provisions of this Lease.
(28) RENT
ADJUSTMENT: Any amounts owed by Tenant for payment of Operating Expenses or
Taxes. The Rent Adjustments shall be determined and paid as provided in Article
Four.
(29) RENT
ADJUSTMENT DEPOSIT: An amount equal to the Rent Adjustments attributable to each
month within the latest Adjustment Year as reasonably estimated by Landlord from
time to time.
(30) SECURITY
DEPOSIT: Intentionally omitted.
(31) SUBSTANTIALLY
COMPLETE: The completion of the Landlord Work or Tenant Work, as the case may
be, except for minor insubstantial details of construction, decoration or
mechanical adjustments which remain to be done and which do not materially
interfere with Tenant's ability to conduct its business in the
Premises.
(32) TAXES:
Subject to the following sentence, all federal, state and local governmental
taxes, assessments and charges of every kind or nature, whether general,
special, ordinary or extraordinary, which are paid with respect to the Property
during any Adjustment Year because of or in connection with the ownership,
leasing, management, control or operation of the Property or any of its
components, or any personal property used in connection therewith. For purposes
hereof, Taxes for any Adjustment Year shall be Taxes which come due and payable
during such Adjustment Year, whether or not such taxes were assessed with
respect to a prior calendar year. There shall be included in Taxes for any
Adjustment Year the amount of all fees, costs and expenses (including reasonable
attorneys' fees) paid by Landlord during such Adjustment Year in seeking or
obtaining any refund or reduction of Taxes. Landlord shall, upon Tenant's
written request, and if the timing of Tenant's request so permits, in sufficient
time to permit Tenant to have at least thirty (30) days prior to the filing
deadline, advise Tenant in writing as
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to
whether or not Landlord intends to contest Taxes required to be paid during any
Adjustment Year. If Landlord advises Tenant that Landlord does not intend to
contest such Taxes, Tenant shall have the right, by written notice to Landlord
delivered within sixty (60) days after Landlord's receipt of the xxxx for the
first installment of Taxes in any Adjustment Year, to require Landlord to
contest such Taxes. If the costs of such contest (including, without limitation,
reasonable attorneys' fees) exceed the reduction in Taxes obtained, then Tenant
shall pay such excess costs to Landlord within thirty (30) days after Landlord's
written request therefor. Taxes for any Adjustment Year shall be reduced by the
net amount of any tax refund received by Landlord during such Adjustment Year.
If a special assessment payable in installments is levied against any part of
the Property, Taxes for any Adjustment Year shall include only the installment
of such assessment and any interest paid with respect thereto during such
Adjustment Year. Taxes shall not include any federal or state inheritance,
general income, gift or estate taxes, except that if a change occurs in the
method of taxation resulting in whole or in part in the substitution of any such
taxes, or any other assessment, for any Taxes as above defined, such substituted
taxes or assessments shall be included in the Taxes, provided they are so
included as a tax by a majority of the owners of first-class office buildings
within downtown Chicago which pass through taxes to their tenants.
(33) TENANT
ADDITIONS: Collectively, Tenant Work, Landlord Work and Tenant
Alterations.
(34) TENANT
ALTERATIONS: Any alterations, improvements, additions, installations or
construction in or to the Premises or any Building systems serving the Premises
(other than those done as part of Tenant Work or Landlord Work pursuant to the
Workletter); and any supplementary air-conditioning systems installed by
Landlord or by Tenant at Landlord's request pursuant to Section
6.1(2).
(35) TENANT
DELAY: Any event or occurrence, other than Force Majeure, which delays the
Tenant's surrender of possession of the Existing Premises beyond January 31,
1999 (as set forth in Section 2 of the Rider) or delays the timely completion of
the Landlord Work and which is caused by or is described as
follows:
(a) special
work, changes, alterations or additions requested or made by Tenant in the
design or finish in any part of the Premises after approval of the plans and
specifications (as described in the Workletter);
(b) Tenant's
delay beyond the applicable deadlines set forth in Exhibit B in submitting
plans, supplying information, approving plans, specifications or estimates,
giving authorizations or otherwise,
(c) failure
to approve and pay for such Tenant Work as Landlord undertakes to complete at
Tenant's expense; or
-11-
(d) the
performance or completion by Tenant or any person engaged by Tenant of any work
in or about the Premises.
(36) TENANT
WORK: All work installed or furnished to the Premises by Tenant pursuant to the
Workletter.
(37) TENANT’S
SHARE: The percentage specified in Section 1.1(13) which represents the ratio of
the Rentable Area of the Premises to the Rentable Area of the Building, subject
to modification in the event of the expansion or reduction of the size of the
Premises pursuant to the provisions of this Lease.
(38) TERM:
The term of this Lease commencing on the Commencement Date and expiring on the
Expiration Date, but including any extensions or renewals of the Initial Term as
defined in Section 1.1(5) above, unless sooner terminated as provided in this
Lease.
(39) TERMINATION
DATE: The Expiration Date or such earlier date as this Lease
terminates.
(40) WORKLETTER:
The Agreement regarding the manner of completion of Landlord Work and Tenant
Work attached hereto as Exhibit B.
ARTICLE
TWO
PREMISES,
TERM AND FAILURE TO GIVE POSSESSION
2.1 LEASE
OF PREMISES
Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord the Premises for
the Term and upon the conditions provided in this Lease. Landlord shall deliver
possession of the Premises to Tenant on the Delivery Date (as defined in Section
2.3) in order for Tenant and its contractors to perform the Tenant Work as set
forth in Exhibit B, and Tenant shall be subject to all of the terms, covenants
and conditions of this Lease as of the date of such possession.
2.2 TERM
The
Commencement and Expiration Dates shall be the dates set forth in Section 1.1(6)
and Section 1.1(7), respectively.
2.3 FAILURE
TO GIVE POSSESSION
Landlord
shall deliver possession of the Premises to Tenant upon the vacating of the
Xxxxxxx Space by Xxxxxxx after termination of the Xxxxxxx Lease (the terms
"Xxxxxxx Lease," "Xxxxxxx Space" and "Xxxxxxx" having the meanings set forth in
Section 1 of the Rider); provided, however, that Landlord shall use reasonable
efforts to deliver possession of the Premises to Tenant no later than January
15, 1998 (the "Delivery Date"). If the Landlord shall be
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unable to
give possession of the Premises on the Delivery Date for any reason, Landlord
shall not be subject to any liability for such failure; nor shall the
Commencement or Expiration Dates of this Lease be delayed. No such failure to
give possession on the Delivery Date shall affect the validity of this Lease or
the obligations of the Tenant hereunder. It is understood and agreed that the
Landlord Work need not be Substantially Complete on the Delivery
Date.
2.4 AREA
OF PREMISES
It is
understood and agreed that the rentable square footage set forth in Section
1.1(10) of this Lease is an approximate number and may be adjusted by Tenant
prior to the start of the Tenant Work and Landlord Work as follows: downward by
up to 10,000 rentable square feet on the 13th or 19th floors, or upward by up to
one (1) full floor, such floor to be the 21st floor, unless Christie's
International Catering Co., Ltd. has made a commitment by November 1, 1997 to
lease the 21st floor from Landlord, in which case such upward adjustment shall
be the 22nd floor; subject, in any case, to Landlord's reasonable approval of
the proposed shape of the Premises and provided that any remaining space not
part of the Premises on any floor where Tenant does not occupy the entire floor
shall be a Marketable Unit as defined in Section 10.1. Tenant shall give
Landlord a preliminary Space Plan (as defined in Section 3 of Exhibit B) containing
a preliminary estimate of its space requirement no later than October 15, 1997.
In all events Tenant shall establish its final requirement for the size and
shape of the Premises in accordance with the preceding parameters and take all
steps necessary so that a final Space Plan, reflected ceiling plan and partition
plan have been approved by both Landlord and Tenant no later than December 5,
1997, and any delay in doing so shall constitute a Tenant Delay. All terms and
provisions of the Lease dependent on or related to the size of the Premises
(including, without limitation, Base Rent, Rent Adjustments and Rent Adjustment
Deposits, Tenant's Share and the Improvement Allowance) shall be adjusted as of
January 1, 1998 to reflect the final size of the Premises and demising plans for
Tenant's Premises on the 13th and 19th floors shall be substituted for the
current pages for such floors in Exhibit A. Such adjustments to Rent and
Tenant's Share shall be retroactive to September 1, 1997. The Premises as
established pursuant to this Section 2.4 (i.e., not including any additional
space leased pursuant to Sections 7 (except for Option 4) or 11 of the Rider or
otherwise) constitute the "Initial Premises" under this Lease.
2.5 CONDITION
OF PREMISES
Tenant
shall notify Landlord in writing within thirty (30) days after the later of
Substantial Completion of the Landlord Work or when Tenant takes possession of
the Premises of any defects in the Premises claimed by Tenant or in the
materials or workmanship furnished by Landlord in completing the Landlord Work.
Except for defects stated in such notice and except as otherwise provided
elsewhere in this Lease, including the second paragraph of this Section 2.5,
Tenant shall be conclusively deemed to have accepted the Premises "as is" in the
condition existing on the date Tenant first takes possession, and to have waived
all claims relating to the condition of the Premises. Landlord shall proceed
promptly and diligently to correct the defects stated in such notice unless
Landlord disputes the existence of any such defects. In the event of any dispute
as to
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the
existence of any such defects, the decision of a third party mutually and
reasonably agreeable to both Landlord and Tenant shall be final and binding on
the parties. No agreement of Landlord to alter, remodel, decorate, clean or
improve the Premises or the Building and no representation regarding the
condition of the Premises or the Building has been made by or on behalf of
Landlord to Tenant, except as may be specifically stated in this Lease or in the
Workletter.
Landlord
shall, at its sole cost and expense and not as part of Operating Expenses,
repair all latent and/or structural defects in the Landlord's Work and the
structural portions of the Premises and Building during the Term of the Lease,
except for those structural defects caused by Tenant's particular use of the
Premises (by way of example and not limitation, excessive floor loads) or the
negligence or misconduct of Tenant or its contractors.
ARTICLE
THREE
RENT
Tenant
agrees to pay to Landlord at the office specified in Section 1.1(2), or to such
other persons or at such other places designated by Landlord, without any prior
demand therefor in immediately available funds and without any deduction
whatsoever, Rent, including, without limitation, Monthly Base Rent and Rent
Adjustments in accordance with Article Four, during the Term. Monthly Base Rent
shall be paid monthly in advance on the first day of each month of the Term,
except that the first installment of Monthly Base Rent shall be paid by Tenant
to Landlord on the Commencement Date, notwithstanding the fact that Tenant may
not be in possession of the Premises on the Commencement Date; see Section 1 of
the Rider. Monthly Base Rent shall be prorated for partial months within the
Term. Unpaid Rent shall bear interest at the Default Rate from the date due
until paid as provided in Section 26.1. Tenant's covenant to pay Rent shall be
independent of every other covenant in this Lease.
If any
governmental entity or authority has imposed or hereafter imposes upon Landlord
or Tenant a tax or assessment upon or against any of the gross Rent or other
charges payable by Tenant to Landlord under the Lease (whether such tax takes
the form of a lease tax, sales tax or other tax), Tenant shall be responsible
for the timely payment thereof.Unless Landlord and Tenant otherwise agree in
writing with respect to the payment thereof, Tenant shall pay the applicable tax
to Landlord together with each payment by Tenant to Landlord of Monthly Base
Rent due under the Lease. Notwithstanding the foregoing, Tenant shall have no
obligation to pay any income tax levied against Landlord, except to the extent
the same is levied specifically with respect to gross rent or other charges
payable by Tenant to Landlord under this Lease.
ARTICLE
FOUR
RENT
ADJUSTMENTS AND PAYMENTS
4.1 RENT
ADJUSTMENTS
Tenant
shall pay Rent Adjustments during the Term as follows:
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(1) The
Rent Adjustment Deposit representing Tenant's Share of Operating Expenses and
Taxes attributable to any calendar year monthly during the Term (prorated for
any partial calendar year and partial month) with the payment of Monthly Base
Rent except the first installment which shall be paid by Tenant to Landlord on
the Commencement Date; and
(2) Any
Rent Adjustments due in excess of the Rent Adjustment Deposits in accordance
with Section 4.2.
4.2 STATEMENT
OF LANDLORD
As soon
as feasible after the expiration of each Adjustment Year (but in no event later
than one hundred and eighty (180) days after the end of each such Adjustment
Year), Landlord will furnish Tenant a statement ("Landlord's Statement" or
"Statement") showing the following:
(1) Operating
Expenses and Taxes for the Adjustment Year then ended;
(2) The
amount of Rent Adjustments due Landlord for the Adjustment Year then ended, less
credit for Rent Adjustment Deposits paid, if any; and
(3) The
Rent Adjustment Deposit due monthly in the calendar year next following the
Adjustment Year then ended including the amount or revised amount due for months
prior to the rendition of the Statement. If the Rent Adjustments Deposits for
the calendar year following the Adjustment Year are estimated to be more than
the actual Rent Adjustments for the Adjustment Year then ended, then Landlord
shall, at Tenant's request, advise Tenant how Landlord's determination of such
Rent Adjustment Deposits was made and the reasons for the increase over the
actual Rent Adjustments for the Adjustment Year then ended.
Tenant
shall pay to Landlord within thirty (30) days after receipt of such Statement
any amounts for Rent Adjustments and Rent Adjustment Deposits then due in
accordance with Landlord's Statement. Any amounts due from Landlord to Tenant
pursuant to this Section shall be credited to the Rent next coming due, or
refunded to Tenant if the Term has already expired provided Tenant is not in
Default hereunder. No interest or penalties shall accrue on any amounts which
Landlord is obligated to credit to Tenant by reason of this Section 4.2 unless
the amount of the Rent Adjustment Deposits for the Adjustment Year in question
were 110% or more of the actual Rent Adjustments for such Adjustment Year, in
which event Landlord shall give Tenant an additional credit (or refund, as
applicable) equal to interest (at the Default Rate) on all such overpayments.
Notwithstanding the preceding sentence, Tenant shall not be entitled to interest
on any such overpayment of Rent Adjustments (even if the Rent Adjustment
Deposits were 110% or more of the actual Rent Adjustments) if the Rent
Adjustments Deposits for the Adjustment Year in question were less than 110% of
the actual Rent Adjustments for the preceding Adjustment Year. Landlord's error
in computing the amount of the Rent Adjustments shall not constitute a waiver by
Landlord of its right to deliver a corrected Landlord's Statement nor constitute
a release of Tenant's obligations to pay any amounts pursuant to such Statement
unless such failure to deliver a
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corrected
Statement continues for more than twenty-four (24) months after the end of the
calendar year to which such Landlord's Statement pertains. Payments of Rent
Adjustment Deposits shall be credited first against the Rent Adjustments due for
the applicable Adjustment Year. During the calendar year in which the Lease
terminates, Landlord may include in the Rent Adjustment Deposit its reasonable
estimate of the Rent Adjustments which may not be finally determined until after
the termination of this Lease. Tenant's obligation to pay the Rent Adjustments
and Landlord's obligation to refund any overpayment of the Rent Adjustments, as
the case may be, shall survive the expiration or termination of this Lease.
Without limiting the generality of the preceding sentence, Landlord's obligation
to refund any overpayment of Rent Adjustments to Tenant shall include paying to
Tenant its share of any net refund of Taxes for any Adjustment Year with respect
to which Tenant paid Taxes, even if such refund is received by Landlord after
expiration or termination of the Term of this Lease.
4.3 BOOKS
AND RECORDS
Landlord
shall maintain books and records showing Operating Expenses and Taxes in
accordance with sound accounting and management practices, consistently applied.
Tenant or its representative (which representative shall be a certified public
accountant licensed to do business in the state in which the Property is
located) shall have the right, for a period of two (2) years following the date
upon which Landlord's Statement (or corrected Statement pursuant to Section 4.2
above) is delivered to Tenant, to examine (which shall include the right to
conduct, at Tenant's expense, an audit) the Landlord's books and records with
respect to Operating Expenses and Taxes in order to audit such Statement during
normal business hours, upon written notice, delivered at least three (3)
business days in advance. If Tenant does not object in writing to such Statement
within such two (2)-year period, specifying the nature of the item in dispute
and the reasons therefor, then such Statement shall be considered final and
accepted by Tenant. Any amount due to Landlord as shown on such Statement,
whether or not disputed by Tenant as provided herein, shall be paid by Tenant
when due as provided above, without prejudice to any such written exception,
provided that any portion of the amount paid by Tenant under written protest
which is later determined to be an overpayment shall be repaid to Tenant with
interest at the Default Rate from the date of payment under
protest.
Tenant
shall cause any information obtained by Tenant or its representative pursuant to
the aforesaid process to be kept confidential and shall not disclose,
disseminate or distribute any such information without obtaining the express
written approval of Landlord; provided, however, Tenant may disclose or
disseminate such information to: (a) its partners and its and their employees,
attorneys, agents and accountants who would ordinarily have access to such
information in the normal course of the performance of their duties; (b) such
third parties as Tenant may, in Tenant's discretion, deem reasonably necessary
or desirable in connection with or in response to compliance with any Law or
other governmental requirement; (c) any prospective purchaser, assignee or
transferee of any equity interest in Tenant; or (d) any mortgagee of or any
lender to Tenant or Tenant's partners. If within thirty (30) days after Tenant's
timely objection to Landlord's Statement, Landlord and Tenant are not able to
agree upon the amount of the Operating
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Expenses
and Taxes in question, then the dispute shall be submitted for resolution to an
Illinois licensed certified public accounting firm mutually and reasonably
agreeable to both Landlord and Tenant. The decision of said firm shall be final
and binding on both Landlord and Tenant, and shall take into account any
adjustments referred to in Section 4.4 below. The fees and expenses of said firm
shall be paid by Tenant; provided, however, if the decision of said firm is that
the Landlord overstated the aggregate amount of the Operating Expenses and Taxes
for an Adjustment Year by more than three percent (3%), then the fees and
expenses of said firm, together with the reasonable fees and expenses of
Tenant's certified public accounting firm in connection therewith and its audit,
shall be borne by Landlord. If as finally determined (whether through agreement
between Landlord and Tenant or through the decision of said firm), the amount of
Operating Expenses and Taxes was either overstated or understated, there shall
within thirty (30) days thereafter be an adjustment made between Landlord and
Tenant so that in all events the Tenant has paid the correct Tenant's Share of
Operating Expenses and Taxes.
4.4 PARTIAL
OCCUPANCY
For
purposes of determining the Rent Adjustments for any Adjustment Year if the
Building is less than fully rented during all or a portion of such year,
Landlord may make appropriate adjustments to the variable Operating Expenses
(i.e., Operating Expenses which vary with the level of occupancy of the
Building) for such Adjustment Year employing sound accounting and management
principles consistently applied, to determine the amount of Operating Expenses
that would have been paid or incurred by Landlord had the Building been fully
occupied, and the amount so determined shall be deemed to have been the amount
of Operating Expenses for such Adjustment Year; provided, however, in no event
shall Landlord be entitled to receive in the aggregate from all Building tenants
pass-throughs of Operating Expenses and Taxes that exceed the actual Operating
Expenses and Taxes for an Adjustment Year or generate a profit to Landlord with
respect thereto in excess of any permitted management fees. In the event any
other tenant in the Building provides itself with a service which Landlord would
supply under the Lease without an additional or separate charge to Tenant, then
Operating Expenses shall be deemed to include the cost Landlord would have
incurred had Landlord provided such service to such other tenant; provided,
however, that Tenant shall not be required to pay more than it otherwise would
if such other tenant were not providing its own service and Landlord were
providing it.
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ARTICLE
FIVE
INTENTIONALLY
OMITTED
ARTICLE
SIX
SERVICES
6.1 LANDLORD'S
GENERAL SERVICES
(1) So
long as the Lease is in full force and effect, Landlord shall furnish the
following services:
(a) heat
and air-conditioning in the Premises, Monday through Friday from 8:00 A.M. to
6:00 P.M., Saturday, from 8:00 A.M. to 1:00 P.M., excluding National Holidays,
in accordance with the specifications set forth in Exhibit C, subject to
compliance with all Laws; see Section 13 of the Rider for additional provisions
concerning after-hours HVAC services;
(b) hot
and cold water for use in lavatories and cold water for water fountains (such
lavatories and water fountains to be used by Tenant in common with other tenants
on floors not fully occupied by Tenant) from the regular supply of the Building
and cold water for use in any food preparation area;
(c) cleaning
and janitorial services in the Premises Monday through Friday, excluding
National Holidays and any other holiday observed by the Building's cleaning
contractors union, substantially in accordance with the cleaning specifications
attached hereto as Exhibit E;
(d) washing
of the outside windows in the Premises four (4) times per year at intervals
determined by Landlord;
(e) automatic
passenger elevator service in common with other tenants of the Building (without
separate charge other than through costs included within Operating Expenses) and
freight elevator service subject to reasonable scheduling by Landlord and, for
after hours usage, payment of Landlord's standard charges consisting of
Landlord's labor costs; Landlord further agrees that Landlord shall not reduce
the number of automatic passenger elevators serving the Premises and that during
non-business hours there shall not be less than two elevators serving the
Premises; and
(f) one
(1) security guard stationed primarily in the lobby of the Building, one (1)
roving security guard during non-business hours and a magnetic card reader
located at said lobby station. Building tenants will be required to use their
magnetic card (or suitable identification in absence thereof) in order to obtain
access to the Building after business hours. Notwithstanding the
foregoing,
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Landlord
reserves the right to change the Building's security system so long as the
system remains as good as that described herein and consistent with other first
class office buildings in downtown Chicago. If Tenant wishes to coordinate its
access system for the Premises with the Building magnetic access system,
Landlord shall reasonably cooperate with Tenant in order accomplish such
coordination, provided that all costs with respect thereto shall be paid by
Tenant and Landlord shall not be required to incur any costs with respect to
such coordination.
(2) Wherever
heat generating machines or equipment are used by Tenant in the Premises, the
following additional provisions shall apply:
(a) If
the use of such machinery exceeds the limits established in Exhibit C thereby
affecting the temperature otherwise maintained by the air-cooling system or
whenever the occupancy or electrical load exceeds the standards set forth in
Exhibit C, Landlord reserves the right to install or to require Tenant to
install supplementary air-conditioning units in the Premises. Prior to requiring
the installation of such supplementary units, Landlord shall notify Tenant of
the problem and give Tenant a reasonable period to cure same. If supplementary
air-conditioning units are installed, Tenant shall bear all reasonable costs and
expenses related to the installation, maintenance and operation of such units;
and
(b) Intentionally
omitted
(3) Landlord
agrees that the kinds and amount of services to be provided as part of Operating
Expenses shall be commercially reasonable throughout the Term. Landlord agrees,
annually at Tenant's request, to review with Tenant the then-current level of
services for the Building in order to determine whether the aforesaid standard
is being met.
(4) The
expenses included in Operating Expenses throughout the Term shall be
commercially reasonable in type and amount. When it is commercially reasonable
to do so, Landlord shall competitively bid items to be included within Operating
Expenses. Upon Tenant's request, Landlord shall provide Tenant with reasonable
evidence supporting the commercial reasonableness and competitiveness of any
item included within Operating Expenses.
(5) Subject
to Landlord's approval, which shall not be unreasonably withheld, delayed or
conditioned, Tenant may elect to provide the following building services to its
Premises which would otherwise be provided by Landlord as set forth
above:
(a) cleaning
and janitorial services, to be provided by union cleaning and janitorial
workers, provided that Tenant's providing of such services does not disturb
Landlord's labor relations with its own union labor providing cleaning and
janitorial services, and
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(x) xxxxxxxx
xx xxxxx, xxxxx, ballasts and starters, provided that the same shall be
installed by Landlord and further provided that the cost of such installation
charged to and paid by Tenant (or other tenants in the Building) shall be
applied as a credit against Operating Expenses.
If Tenant
so elects to provide such services, the costs of such services shall be excluded
from Operating Expenses for the purposes of calculating Tenant's Share of
Operating Expenses.
(6) Tenant
to be entitled to one hundred (100) tons of condenser water ("Tenant's Condenser
Water") at Landlord's standard charges therefore from time to time; provided,
however, that such standard charges (which are currently $98.65/ton/year) shall
not increase over the prior year's charges by more than the actual increase in
Landlord's direct costs (e.g., utilities, labor, chemicals and water not
including depreciation) in supplying such condenser water and shall not include
any profit to Landlord.
6.2 ELECTRICAL
SERVICES
(1) The
electricity used during the performance of janitorial service within the
Premises or the making of alterations or repairs in the Premises by Landlord
shall be paid by Tenant. Subject to Section 6.1, Tenant also agrees to purchase
from Landlord or its agents at competitive prices fixed by Landlord (provided
that same are competitive with prices charged in other comparable highrise
office buildings in downtown Chicago) for all tenants in the Building all lamps,
bulbs, ballasts and starters used in the Premises. Landlord reserves the right,
commencing on some future date, to provide electricity to Tenant and in such
event Tenant agrees to purchase electricity from Landlord; provided that the
cost of such electricity charged by Landlord is not greater than the cost of
electricity charged by the lowest cost provider of electricity from which Tenant
could otherwise purchase electricity and further provided that any additional
costs (including, without limitation, breakaway fees, extra capital costs or
other initial costs charged by such provider and not charged by Landlord or
charged by Landlord and not by such provider) shall be taken into account in any
such comparison of costs. Tenant shall make no alterations or additions to the
electric equipment or systems without the prior written consent of the Landlord
in each instance, which consent shall not be unreasonably withheld, delayed or
conditioned.
(2) The
Premises are separately metered and, subject to Landlord's reservation of its
right to provide electricity as set forth in Section 6.2(1) above, Tenant shall
make all necessary arrangements with the local utility company for furnishing,
metering and paying for electricity furnished by it to Tenant and consumed on
the Premises. Any changes to the existing metering (including without
limitation, any changes required in connection with Tenant's occupancy of a
partial floor) shall be at Tenant's expense.
6.3 ADDITIONAL
AND AFTER-HOUR SERVICES
At
Tenant's request, Landlord shall furnish additional quantities of any of the
services or utilities specified in Section 6.1, if Landlord can reasonably do
so, on the terms set forth
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herein.
Tenant shall deliver to Landlord a written request for such additional services
or utilities prior to 4:00 P.M. on Monday through Friday (except National
Holidays) for service on those days, and prior to 4:00 P.M. on the last business
day prior to Saturday, Sunday or a National Holiday. For services or utilities
requested by Tenant and furnished by Landlord, Tenant shall pay to Landlord as a
charge therefor Landlord's prevailing published rates for such services and
utilities (subject to Section 13 of the Rider with respect to after-hours HVAC).
If Tenant shall fail to make any such payment, Landlord may, upon notice to
Tenant and in addition to Landlord's other remedies under this Lease,
discontinue any or all of the additional services. See Section 13 of the Rider
for additional provisions pertaining to after-hours HVAC.
6.4 PHONE
SERVICES
All
telegraph, telephone, and electric connections which Tenant may desire shall be
first approved by Landlord in writing, before the same are installed, and the
location of all wires and the work in connection therewith shall be performed by
contractors approved by Landlord and shall be subject to the direction of
Landlord, all such approvals to not be unreasonably withheld, delayed or
conditioned. Tenant shall be responsible for and shall pay all costs incurred in
connection with the installation of telephone cables and related wiring in the
Premises, including, without limitation, any hook-up, access and maintenance
fees related to the installation of such wires and cables in the Premises and
the commencement of service therein, and the maintenance thereafter of such wire
and cables, and all costs incurred in connection with installation, hook-up and
maintenance of telephone cables and related wiring outside of the Premises if
such items exclusively serve the Premises. Except as provided in Section 6.5
below, Tenant agrees that neither Landlord nor any of its agents or employees
shall be liable to Tenant, or any of Tenant's employees, agents, customers or
invitees or anyone claiming through, by or under Tenant, for any damages,
injuries, losses, expenses, claims or causes of action because of any
interruption, diminution, delay or discontinuance at any time for any reason in
the furnishing of any telephone service to the Premises and the
Building.
6.5 DELAYS
IN FURNISHING SERVICES
Tenant
agrees that Landlord shall not be liable to Tenant for damages or otherwise, for
any failure to furnish, or a delay in furnishing, any service when such failure
or delay is occasioned, in whole or in part, by repairs, improvements or
mechanical breakdowns, by the act or default of Tenant or other parties (except
the negligence or wilful misconduct of Landlord or its agents, employees or
contractors) or by an event of Force Majeure, provided Landlord acts diligently
and reasonably under the circumstances to restore said service to the extent
within Landlord's reasonable control. No such failure or delay shall be deemed
to be an eviction or disturbance of Tenant's use and possession of the Premises,
or relieve Tenant from paying Rent or from performing any other obligations of
Tenant under this Lease.
Notwithstanding
anything to the contrary in the Lease other than Articles 14 and 15, if: (a) any
services required to be provided by Landlord hereunder are interrupted, and
Tenant is unable to and does not use the Premises as a result of such
interruption, and (b) Tenant shall
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have
given written notice respecting such interruption to Landlord, and Landlord
shall have failed to cure such interruption within five (5) consecutive days
after receiving such notice, Monthly Base Rent and Rent Adjustment Deposits
shall thereafter be abated until such services are restored or Tenant begins
using the Premises again, whichever shall first occur. In addition,
notwithstanding anything to the contrary in the Lease other than Articles 14 and
15, if any such interruption is not within Landlord's reasonable control (but
Landlord shall promptly seek to cure such interruption to the extent reasonably
practicable) and Landlord shall have failed to cure such interruption within 180
consecutive days after receiving such notice (or, if cure of such interruption
is not reasonably possible within one hundred eighty (180) days, so long as
Landlord has commenced to cure within such one hundred eighty (180) day period
and is diligently proceeding to complete such cure), or if any such interruption
is within Landlord's reasonable control (and Landlord shall promptly seek to
cure such interruption to the extent reasonably practicable) and Landlord shall
have failed to cure same within ninety (90) consecutive days after receiving
such notice (or, if cure of such interruption is not reasonably possible within
ninety (90) days, so long as Landlord has commenced to cure within such ninety
(90)-day period and is diligently proceeding to complete such cure), then Tenant
shall have the right to terminate this Lease by ten (10) days prior written
notice to Landlord provided that such notice is given after expiration of the
aforesaid 180-day or 90-day period (as applicable and as may be extended) and
while such interruption is still continuing; provided, however, if such services
are restored within said ten (10)-day period, Tenant's notice of termination
shall be of no force and effect and this Lease shall continue. If any such
interruption of services occurs, Landlord shall use reasonable efforts to
reinstate or cause the reinstatement of such services as soon as practicable.
Provided Landlord is not in breach of its obligations hereunder, such abatement
and termination rights shall be Tenant's sole recourse in the event of an
interruption of services required to be provided by Landlord hereunder.
Notwithstanding anything contained herein to the contrary, if Landlord shall not
have restored said service within 270 consecutive days of its termination
without regard to Force Majeure and Tenant has been unable to and has not used
the Premises during such 270-day period, Tenant may on five (5) days notice
terminate this Lease unless said service is restored within said five (5)-day
period.
ARTICLE
SEVEN
POSSESSION,
USE AND CONDITION OF PREMISES
7.1 POSSESSION
AND USE OF PREMISES
(1) Tenant
shall be entitled to possession of the Premises when the Landlord Work is
Substantially Complete. Tenant shall occupy and use the Premises only for the
uses specified in Section 1.1(14). Tenant shall not occupy or use the Premises
(or permit the use or occupancy of the Premises) for any purpose or in any
manner which: (a) is unlawful or in violation of any Law; (b) may be dangerous
to persons or property or which may increase the cost of (unless Tenant pays
said increased costs), or invalidate, any policy of insurance carried on the
Building or covering its operations; (c) is contrary to or prohibited by the
terms and conditions of this Lease or the rules of the Building set forth in
Article Eighteen; or (d) would tend to create or continue a
nuisance.
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(2) Tenant
and Landlord shall each comply with all Environmental Laws concerning the proper
storage, handling and disposal of any Hazardous Material with respect to the
Property. Landlord shall have the right to treat the cost of compliance with
Environmental Laws as a cost includible in Operating Expenses to the extent
permitted in Section 1.3(21)(ee). Tenant shall not generate, store, handle or
dispose of any Hazardous Material in, on, or about the Property without the
prior written consent of Landlord, except that nothing herein shall prohibit
Tenant from storing and using ordinary and customary office supplies and
substances ordinarily and customarily used by public accounting, consulting or
financial service firms in their business operations, provided that all of the
foregoing shall be stored, used and disposed of in accordance with all
applicable Laws. In the event that Tenant is notified of any investigation or
violation of any Environmental Law arising from Tenant's activities at the
Premises, Tenant shall immediately deliver to Landlord a copy of such notice. In
such event or in the event Landlord reasonably believes that a violation of
Environmental Law exists, Landlord may conduct such tests and studies relating
to compliance by Tenant with Environmental Laws or the alleged presence of
Hazardous Materials upon the Premises as Landlord deems desirable, all of which
shall be completed at Tenant's expense if a violation of Tenant's environmental
obligations hereunder is found. Landlord's inspection and testing rights are for
Landlord's own protection only, and Landlord has not, and shall not be deemed to
have assumed any responsibility to Tenant or any other party for compliance with
Environmental Laws, as a result of the exercise, or non-exercise of such rights.
Tenant shall indemnify, defend, protect and hold harmless the Indemnitees from
any and all loss, claim, expense, liability and cost (including attorneys' fees)
arising out of or in any way related to the presence of any Hazardous Material
introduced to the Premises during the Term by Tenant, its agents, employees,
contractors, invitees or any other parties acting by, through or on behalf of
Tenant. If any Hazardous Material is released, discharged or disposed of on or
about the Property and such release, discharge or disposal is not caused by
Tenant or other occupants of the Premises, or their employees, agents or
contractors, such release, discharge or disposal shall be deemed casualty damage
under Article Fourteen to the extent that the Premises are affected thereby; in
such case, Landlord and Tenant shall have the obligations and rights respecting
such casualty damage provided under such Article.
(3) Landlord
and Tenant acknowledge that the Americans With Disabilities Act of 1990 (42
U.S.C. §12101 et seq.) and regulations and guidelines promulgated thereunder, as
all of the same may be amended and supplemented from time to time (collectively
referred to herein as the "ADA") establish requirements for business operations,
accessibility and barrier removal, and that such requirements may or may not
apply to the Premises and the Building depending on, among other things: (a)
whether such requirements are "readily achievable"; and (b) whether a given
alteration affects a "primary function area" or triggers "path of travel"
requirements. Except as otherwise provided in Attachment 1 of Exhibit B, the
parties hereby agree that: (a) Landlord shall be responsible for ADA Title III
compliance in the Common Areas, except as provided below; (b) Tenant shall be
responsible for ADA Title III compliance in the Premises, including any
leasehold improvements or other work to be performed in the Premises under or in
connection with this Lease, and (c) Landlord may perform, or require that Tenant
perform, and Tenant shall be responsible for the cost of, ADA Title III "path of
travel"
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requirements
triggered by alterations in the Premises. Tenant shall be solely responsible for
requirements under Title I of the ADA relating to Tenant's employees within the
Premises.
7.2 LANDLORD
ACCESS TO PREMISES
(1) Tenant
shall permit Landlord to erect, use and maintain pipes, ducts, wiring and
conduits in and through the Premises, so long as Tenant's use, layout or design
of the Premises is not materially affected or altered and so long as such
installations are behind the walls and above the drop ceiling. Landlord or
Landlord's agents shall have the right to enter upon the Premises in the event
of an emergency, or to inspect the Premises, to perform janitorial and other
services, to conduct safety and other testing in the Premises (including without
limitation such inspections, tests and studies as Landlord may deem desirable or
necessary to confirm Tenant's compliance with all Laws or for other purposes
necessary in Landlord's reasonable judgment to ensure the sound and safe
condition of the Building and the systems serving the Building) and to make such
repairs, alterations, improvements or additions to the Premises or the Building
as Landlord may deem necessary or desirable. Janitorial and cleaning services
shall be performed after normal business hours. In connection therewith,
Landlord shall, if permitted by Tenant (such permission not to be unreasonably
withheld, delayed or conditioned), be allowed to store on the Premises in
locations designated by Tenant all necessary supplies and materials at
Landlord's risk. Any entry or work by Landlord may be during normal business
hours provided that Landlord shall use reasonable efforts to ensure that any
entry or work shall not materially interfere with Tenant's occupancy of the
Premises. All entries by Landlord, its agents, employees or contractors shall be
after two (2) business days' prior written notice from Landlord to Tenant,
except in emergency situations as reasonably determined by Landlord, and except
for janitorial services. Notwithstanding any other provision of this Lease to
the contrary, the parties agree and acknowledge that, except in case of an
emergency, no access by Landlord, its agents, employees or contractors shall
occur within any secured area of the Premises outside the company of an
authorized Tenant representative, and Landlord shall have no obligations with
respect to such secured areas unless and until Tenant provides Landlord with
access to such areas.
(2) If
Tenant shall not be personally present to permit an entry into the Premises when
for any reason an entry therein shall be necessary or permissible, then subject
to clause (1) above, Landlord (or Landlord's agents), after attempting to notify
Tenant (unless Landlord believes an emergency situation exists, and except for
janitorial services), may enter the Premises without rendering Landlord or its
agents liable therefor (if during such entry Landlord or Landlord's agent shall
accord reasonable care to Tenant's property), and without relieving Tenant of
any obligations under this Lease.
(3) Landlord's
rights under this Section 7.2(3) are for Landlord's own protection only, and
Landlord has not and shall not be deemed to have assumed any responsibility to
Tenant or any other party for compliance with Laws as a result of the exercise
or non-exercise of such rights.
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(4) Landlord
may do any of the foregoing, or undertake any of the inspection or work
described in the preceding paragraphs without such action constituting an actual
or constructive eviction of Tenant, in whole or in part, or giving rise to an
abatement of Rent by reason of loss or interruption of business of Tenant, or
otherwise, except as follows: If any actions by Landlord pursuant to this
Section 7.2 substantially interfere with the operation of Tenant's business such
that Tenant is unable to and does not use all or any part of the Premises as a
result of Landlord's actions, such actions are not the result of any default by
Tenant under this Lease and Tenant shall have given written notice of such
interference to Landlord and Landlord shall have failed to cure such
interference within three (3) consecutive days after receiving such notice from
Tenant, then Monthly Base Rent and Rent Adjustment Deposits shall thereafter be
abated (prorated on a per square foot basis if Tenant is not using only a part
of the Premises) until Tenant is again able to use the entire Premises. Landlord
acknowledges and agrees that the aforesaid abatement is not Tenant's sole and
exclusive remedy and that Tenant reserves any and all other legal or equitable
remedies available to it with respect to actions by Landlord pursuant to this
Section which are also a default by Landlord under this Lease; provided,
however, that in no event shall Tenant be entitled to recover any damages from
Landlord for matters for which Tenant carries insurance or is required to carry
insurance under this Lease.
7.3 QUIET
ENJOYMENT
Landlord
covenants that so long as Tenant is in compliance with the covenants and
conditions set forth in this Lease, Tenant shall have the right to quiet
enjoyment of the Premises without hindrance or interference from Landlord or
those claiming through Landlord, subject to the rights of any Mortgagee or
ground lessor to which this Lease is subordinated pursuant to Section
23.1
ARTICLE
EIGHT
MAINTENANCE
8.1 LANDLORD'S
MAINTENANCE
Subject
to the provisions of Articles Fourteen, Fifteen, Sixteen and Seventeen, Landlord
shall maintain and make necessary repairs to the foundations, roofs, elevators,
exterior walls, exterior glass and the structural elements of the Building, the
electrical, plumbing, heating, ventilation and air-conditioning systems of the
Building and the public corridors, washrooms and lobby of the Building, and all
other Common Areas of the Property, except that: (a) Landlord shall not be
responsible for the maintenance or repair of any floor coverings or wall
coverings in the Premises, or any of such systems which are located within the
Premises and are supplemental or special to the Building's standard systems and
were either installed by Tenant due to its requirements or were existing in the
Premises as of the date Tenant took possession thereof and which continue to be
used by Tenant; and (b) the cost of performing any of said maintenance or
repairs whether to the Premises or to the Building caused by the negligence of
Tenant, its
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employees,
agents, servants, licensees, subtenants, contractors or invitees (provided that
such invitees are within the Premises), shall be paid by Tenant. Landlord shall
not be liable to Tenant for any expense, injury, loss or damage resulting from
work done in or upon, or the use of, any adjacent or nearby building, land,
street, or alley. Subject to Section 8.2, Landlord shall keep and maintain the
Building and the Property in good order, condition and repair, in accordance
with all Laws and in a manner consistent with first class office buildings in
downtown Chicago of similar age. Landlord shall comply with all laws of general
application affecting the Common Areas of the Property or the Premises to the
extent that such compliance is not Tenant's responsibility under this
Lease.
8.2 TENANT'S
MAINTENANCE
Subject
to the provisions of Articles Fourteen, Fifteen, Sixteen and Seventeen, Tenant,
at its expense, shall keep and maintain the Premises and all Tenant Additions in
good order, condition and repair and in accordance with all Laws, except that
Tenant shall not be required to make any structural repairs, structural
improvements or structural alterations to the Premises unless such are required
as a result of any Tenant Additions or Tenant's specific manner of use of the
Premises. Tenant shall not permit waste and shall promptly and adequately repair
all damages to the Premises and replace or repair all damaged or broken glass in
the interior of the Premises, fixtures or appurtenances, unless caused by
Landlord or its agents, employees or contractors. Any repairs or maintenance
shall be completed with materials of similar quality to the original materials,
all such work to be completed under the supervision of Landlord, but without
charge to Tenant for such supervision. Any such repairs or maintenance shall be
performed only by contractors or mechanics approved by Landlord, which approval
shall not be unreasonably withheld, conditioned or delayed and whose work will
not cause or threaten to cause disharmony or interference with Landlord or other
tenants in the Building and their respective agents and contractors performing
work in or about the Building. If Tenant fails to perform any of its obligations
set forth in this Section 8.2, and such failure is not due to Force Majeure,
then after notice as provided in Section 11.2(2), Landlord may, in its sole
discretion, unless Tenant commences performance within said notice period,
perform the same, and Tenant shall pay to Landlord any costs or expenses
incurred by Landlord upon demand. Notwithstanding the preceding sentence, in
cases of emergency, Landlord may, in its sole discretion (regardless of Force
Majeure and without notice to Tenant) perform any obligation which Tenant has
failed to perform, and Tenant shall pay to Landlord any costs or expenses
incurred by Landlord upon demand.
ARTICLE
NINE
ALTERATIONS AND IMPROVEMENTS
ALTERATIONS AND IMPROVEMENTS
9.1 TENANT'S
ALTERATIONS AND ADDITIONS
(1) The
following provisions shall apply to the completion of any Tenant
Alterations:
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(a) Tenant
shall not, except as provided herein, without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, conditioned or
delayed make or cause to be made any Tenant Alterations in or to the Premises or
any Building systems serving the Premises. Landlord shall, at the time it gives
any such consent, indicate whether or not it shall require the removal of any
such Tenant Alterations consisting of computer floors, new stairwells and
staircases, specialty plumbing, supplemental cooling units, bracing of floors,
any structural alterations, vaults, safes, or any other non-standard office
Tenant Alterations (but specifically excluding white noise systems, voice/date
risers, cabling (except as otherwise provided in Section 19 of the Rider with
respect to cabling), wall coverings, floor coverings and lights) upon surrender
of the Premises by Tenant. Landlord shall be deemed to have required the removal
of any Tenant Alteration containing materials which, as of the Termination Date,
are Hazardous Materials requiring remediation under applicable Laws, as provided
in Section 12.1. Prior to making any Tenant Alterations, Tenant shall give
Landlord ten (10) days prior written notice (or such earlier notice as would be
necessary pursuant to applicable Law) to permit Landlord sufficient time to post
appropriate notices of non-responsibility. Subject to all other requirements of
this Article Nine, Tenant may undertake Decoration work without Landlord's prior
written consent. Tenant shall furnish Landlord with the name and address of its
general contractor. All Tenant Alterations shall be performed in accordance with
such reasonable construction rules and regulations as Landlord may from time to
time make and such building standard requirements as Landlord may from time to
time establish (such rules and regulations and building standard requirements
not to be applied in a discriminatory manner against Tenant; the current
construction rules and regulations and building standard requirements being
attached to Exhibit B as Attachments 3 and 2, respectively) and only by
contractors or mechanics approved by Landlord, which approval shall not be
unreasonably withheld, conditioned or delayed and whose work will not cause or
threaten to cause disharmony or interference with Landlord or other tenants in
the Building and their respective agents and contractors performing work in or
about the Building. Tenant shall be deemed to be in compliance with any building
standard requirements established by Landlord if the materials and procedures
used by Tenant equal or exceed (in Landlord's sole judgment) the quality levels
set forth in such building standards. Landlord may further condition its consent
where consent is required upon Tenant furnishing to Landlord and Landlord
approving prior to the commencement of any work or delivery of materials to the
Premises related to the Tenant Alterations such of the following as specified by
Landlord: architectural plans and specifications, opinions from engineers
reasonably acceptable to Landlord (if such plans, specifications or opinions are
necessary in Landlord's reasonable opinion) stating that the Tenant Alterations
will not in any way adversely affect the Building's systems, including, without
limitation, the mechanical, heating, plumbing, security, ventilating,
air-conditioning, electrical, and the fire and life safety systems in
the
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Building,
necessary permits and licenses, certificates of insurance, and such other
documents reasonably required in connection with the Tenant Alterations in such
form reasonably requested by Landlord. Landlord may, in the exercise of
reasonable judgment, where the total cost of such Tenant Alterations is
reasonably estimated to be more than one-twentieth (1/20th) of Tenant's net
worth at the time of such Tenant Alterations, request that Tenant provide
Landlord with appropriate evidence of Tenant's ability to complete and pay for
the completion of the Tenant Alterations such as a letter of credit or funded
construction escrow with an escrow agent reasonably satisfactory to both
parties. Upon completion of the Tenant Alterations, Tenant shall deliver to
Landlord an as-built mylar and digitized (if available) set of plans and
specifications for the Tenant Alterations.
(b) Tenant
shall pay the cost of all Tenant Alterations and the cost of decorating the
Premises and any work to the Building occasioned thereby. In connection with
completion of any Tenant Alterations, Tenant shall pay Landlord the actual
reasonable out-of-pocket expenses (i.e., payments to third parties unaffiliated
with Landlord or Landlord's managing agent) incurred by Landlord in connection
with all Tenant Alterations, including without limitation Landlord's expenses
incurred in examination and approval of architectural and mechanical plans and
specifications and Landlord's inspection, supervision, coordination and
administration of the Tenant Alterations (provided, however, that such payment
to Landlord for the foregoing expenses shall not exceed one percent (1%) of the
hard construction costs of the Tenant Alterations being performed), and Tenant
shall pay all elevator and hoisting charges at Landlord's then standard rate. In
no event shall Landlord's supervision or right to supervise by Landlord nor
shall any examinations or approvals made or given by Landlord under this Lease
constitute any warranty by Landlord to Tenant of the adequacy of the design,
workmanship or quality of such plans, work or materials for Tenant's intended
use or of compliance with the requirements of Section 9.1(l)(c) below or impose
any liability upon Landlord in connection with the performance of such work.
Upon completion of Tenant Alterations, Tenant shall furnish Landlord with
contractors' affidavits and full and final waivers of lien covering all labor
and materials expended and used in connection therewith and such other
reasonable documentation that a major title company would require in order to
provide title insurance against liens arising out of such Tenant
Alterations.
(c) Tenant
agrees to complete all Tenant Alterations (i) in accordance with all Laws, all
requirements of applicable insurance companies and in accordance with Landlord's
standard construction rules and regulations, and (ii) in a good and workmanlike
manner with the use of good grades of materials. Tenant shall notify Landlord
immediately if Tenant receives any notice of violation of any Law in connection
with completion of any Tenant Alterations and shall immediately take such steps
as are necessary to remedy such violation.
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(2) Except
for furniture, trade fixtures and personal property, all Tenant Additions paid
for by Landlord or with the Improvement Allowance, whether installed by Landlord
or Tenant, shall, to the extent so paid, without compensation or credit to
Tenant, become part of the Premises and the property of Landlord at the time of
their installation and shall remain in the Premises, unless pursuant to Article
Twelve or elsewhere in this Lease, Tenant may remove them or is required to
remove them at Landlord's request. Landlord shall be entitled to depreciate such
Tenant Additions during the Term of this Lease. Any Tenant Addition paid for by
Tenant shall become Landlord's at the expiration or earlier termination of the
Term and shall be depreciated by Tenant.
9.2 LIENS
Tenant
shall not permit any lien or claim for lien of any mechanic, laborer or supplier
or any other lien to be filed against the Building, the Land, the Premises, or
any part thereof arising out of work or services performed, or alleged to have
been performed by, or at the direction of, or on behalf of Tenant. If any such
lien or claim for lien is filed, Tenant shall within ten (10) business days of
receiving notice of such lien or claim (a) have such lien or claim for lien
released of record or (b) deliver to Landlord a bond in form, content, amount,
and issued by surety or title company, satisfactory to Landlord, indemnifying,
protecting, defending and holding harmless the Indemnitees against all costs and
liabilities resulting from such lien or claim for lien and the foreclosure or
attempted foreclosure thereof. If Tenant fails to take any of the above actions,
Landlord, without investigating the validity of such lien or claim for lien, may
pay or discharge the same and Tenant shall, as payment of additional Rent
hereunder, reimburse Landlord upon demand for the amount so paid by Landlord,
including Landlord's expenses and reasonable attorneys' fees.
ARTICLE
TEN
ASSIGNMENT AND SUBLETTING
ASSIGNMENT AND SUBLETTING
10.1 ASSIGNMENT
AND SUBLETTING
(1) Without
the prior written consent of Landlord, which consent shall not be unreasonably
withheld, conditioned or delayed, as to a proposed sublease of all or a part of
the Premises or the assignment of this Lease, Tenant shall not sublease any
portion or all of the Premises or assign, mortgage, pledge, hypothecate or
otherwise transfer or permit the transfer of this Lease or the encumbering of
Tenant's interest therein, in whole or in part, by operation of law or otherwise
or permit the use or occupancy of the Premises, or any part thereof, by anyone
other than Tenant or an Affiliate. If Tenant desires to enter into any sublease
of the Premises or any part thereof or assignment of this Lease, Tenant shall
deliver written notice thereof to Landlord ("Tenant's Notice"), together with
the identity (if known) of the proposed subtenant or assignee and the proposed
principal terms thereof and financial and other information sufficient for
Landlord to make an informed judgment with respect to such proposed subtenant or
assignee. If Tenant proposes to sublease less than all of the Rentable Area of
the Premises, the space proposed to be
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sublet
and the space retained by Tenant must each be a Marketable Unit (as hereinafter
defined) as reasonably determined by Landlord and otherwise in compliance with
all Laws. The term "Marketable Unit" shall mean one which is regular in shape
with adequate window-line (i.e., adequate frontage on exterior wall of
Building), access to a Common Area corridor and containing at least 1,200
rentable square feet. Landlord shall notify Tenant in writing of its approval or
disapproval of the proposed sublease or assignment within twenty (20) days or
its decision to exercise its rights under Section 10.2 within ten (10) business
days after receipt of Tenant's Notice (and all required information). In no
event may Tenant assign this Lease to any other tenant or occupant of the
Building unless Landlord has no expansion space in the Building of the necessary
size available for such tenant or occupant. Tenant shall have the right, subject
to the other terms and conditions of this Section 10, to sublease up to one (1)
full floor of the Premises to a tenant or tenants or an occupant or occupants of
the Building, provided that any such subleased space shall be in not less than
one-half (1/2) floor increments. In no event may Tenant sublease any other
portion of the Premises to any other tenant or occupant of the Building unless
Landlord has no expansion space in the Building of the necessary size available
for such tenant or occupant. Tenant shall submit for Landlord's approval (which
approval shall not be unreasonably withheld) any advertising which Tenant or its
agents intend to use with respect to the space proposed to be
sublet.
(2) In
making its determination of whether to consent to any proposed sublease or
assignment, Tenant agrees that it shall be reasonable for Landlord to take into
consideration,without limitation as to other possible reasons for reasonably
granting or withholding consent, the business reputation and credit-worthiness
of the proposed subtenant or assignee; the intended use of the Premises by the
proposed subtenant or assignee; whether the nature of the business conducted by
such subtenant or assignee would be deleterious to the reputation of the
Building or Landlord; the estimated pedestrian traffic in the Premises and the
Building which would be generated by the proposed subtenant or assignee, whether
the proposed assignee or subtenant is a department, representative or agency of
any governmental body, foreign or domestic; and, with respect only to
assignments, any other reasonable factors which Landlord deems relevant.
Notwithstanding the foregoing: (a) Landlord agrees not to unreasonably withhold
its consent to an assignment or sublease to a school or U.S. government agency
if such school or government agency is a high-end, professional organization;
and (b) Landlord agrees not to withhold its consent to any sublease solely on
the basis of the subtenant's financial condition. Tenant further agrees that it
shall be reasonable for Landlord not to consent to any proposed (a) sublease of
the Premises or assignment of the Lease if a Default then exists under the
Lease, or (b) assignment of the Lease which would assign less than Tenant's
entire interest in this Lease and the Premises. In the event Landlord wrongfully
withholds its consent to any proposed sublease of the Premises or assignment of
the Lease, then, unless Tenant can prove that Landlord acted in bad faith,
Tenant's sole and exclusive remedy therefor shall be to seek specific
performance of Landlord's obligations to consent to such sublease or assignment.
Any dispute between Landlord and Tenant concerning whether or not Landlord has
wrongfully withheld its consent to any proposed assignment or sublease shall, if
Tenant elects to contest Landlord's decision, be resolved by arbitration as
follows:
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Within
two (2) business days after Landlord notifies Tenant that Landlord is refusing
its consent to a proposed assignment or sublease, Tenant shall have the right to
notify Landlord that Tenant is exercising its right to submit Landlord's
decision to arbitration on the terms and conditions set forth herein. Within
three (3) business days after Tenant notifies Landlord that Tenant is exercising
its right to arbitration, Landlord and Tenant, at their respective expense,
shall each cause an independent real estate broker with not less than ten years
of office leasing experience in the downtown Chicago market and then actively
engaged in the real estate brokerage business in such area to make a
determination as to whether or not Landlord acted wrongfully and in bad faith,
said determination to be made within five (5) business days of their appointment
by Landlord and Tenant, respectively. In the event that the brokers disagree,
then the two brokers shall select a third broker with the aforesaid
qualifications within two (2) business days, the fees and expenses of which
third broker shall be paid fifty percent (50%) by Landlord and fifty percent
(50%) by Tenant. If the two brokers cannot agree upon a third broker within said
two (2)-day period, then either Landlord or Tenant may request that one be
appointed by the local office of the American Arbitration Association. Said
third broker shall, within two (2) business days of his selection (or
appointment, as applicable), make a determination as to whether or not Landlord
acted wrongfully and in bad faith. The determination of the majority of the
three (3) brokers made in accordance with the foregoing shall be final and
binding on Landlord and Tenant.
(3) If
Landlord chooses not to recapture the space proposed to be subleased or assigned
as provided in Section 10.2, Landlord shall not unreasonably withhold, condition
or delay its consent to a subletting or assignment under this Section 10.1.
Tenant shall deliver to Landlord a copy of all agreements executed by Tenant and
the proposed subtenant and assignee with respect to the Premises. In addition,
any such subtenant or assignee shall execute such document as Landlord may
reasonably require to evidence such assignee's acceptance and assumption of such
obligations and liabilities or such subtenant's agreement that its sublease is
subject to the terms and conditions of this Lease. Landlord's approval of a
sublease or assignment shall not constitute a waiver of Landlord's right to
consent to further assignments or subleases.
(4) For
purposes of this Article Ten, an assignment shall be deemed to include a change
in the majority control of Tenant, resulting from any transfer, sale or
assignment of shares of stock or membership interests of Tenant occurring by
operation of law or otherwise if Tenant is a corporation or limited liability
company whose shares of stock or membership interests are not traded publicly;
provided, however, that the foregoing shall not apply to KPMG Peat Marwick LLP
or any Affiliate thereof. If Tenant is a partnership, any change in the partners
of Tenant resulting in a change in control of Tenant shall be deemed to be an
assignment. "Control," as used in this Section 10.1(4), shall mean the
ownership, direct or indirect, of the power to direct or cause the direction of
the management and policies of Tenant, whether through the ownership of voting
securities, membership interests or partnership interests, by contract or
otherwise.
(5) Notwithstanding
anything to the contrary contained in this Article Ten, Tenant shall have the
right, without the prior written consent of Landlord (but upon prior written
notice to Landlord), to sublease the Premises or to assign this Lease to an
Affiliate.
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(6) Tenant
shall pay all of Landlord's reasonable out-of-pocket costs (including, without
limitation, attorneys' fees), not to exceed $500, in connection with any
proposed assignment or sublease requiring Landlord's consent.
(7) Any
approved sublease or assignment and any sublease or assignment not requiring
Landlord's approval as provided herein shall be expressly subject to the terms
and conditions of this Lease, including the right to further assign the Lease or
sublease all or part of the Premises subject to Landlord's consent, which shall
not be unreasonably withheld, conditioned or delayed.
10.2 RECAPTURE
Except as
provided in Section 10.1(5), Landlord shall have the option, exercisable by
written notice to Tenant (the "Recapture Notice") within ten (10) business days
after Landlord's receipt of each Tenant's Notice, to exclude from the Premises
covered by this Lease ("Recapture"), all or part of the space proposed to be
sublet or subject to the assignment, effective as of the proposed commencement
date of such sublease or assignment; provided, however, that if Tenant withdraws
its Tenant's Notice within ten (10) days after Tenant's receipt of the Recapture
Notice, then the Recapture Notice shall be null and void. If Landlord elects to
recapture and Tenant has not withdrawn its Tenant's Notice, Tenant shall
surrender possession of the space proposed to be recaptured (the "Recapture
Space") to Landlord on the effective date of recapture of such space from the
Premises such date being the Termination Date for such space. In the event that
Landlord exercises its recapture right as set forth herein with respect to a
portion of the Premises proposed to be assigned or subleased, such Recapture
Space must be contiguous and in quarter-floor increments, the number of such
increments to be specified by Landlord, but the location of such increments and
the Recapture Space shall be specified by Tenant. For example, if Tenant
notifies Landlord that four (4) floors will be subleased and Landlord exercised
its recapture right as to two (2) contiguous floors, then Tenant shall decide
which two (2) contiguous floors will constitute the Recapture Space. In the
event that Landlord recaptures a partial floor, Landlord shall perform or cause
to be performed all Demising Work, at Landlord's expense. Effective as of the
date of recapture of any portion of the Premises pursuant to this section, the
Monthly Base Rent, Rentable Area of the Premises and Tenant's Share shall be
adjusted accordingly.
Notwithstanding
the preceding paragraph to the contrary, Landlord shall not have the recapture
rights set forth in this Section 10.2 in the event of a sublease if: (1) the
sublease is for five (5) years or less, unless the term of the sublease is for
the then balance of the Term (including any renewal terms, the rights to which
have then been exercised by Tenant), regardless of the size of the proposed
sublease premises, or (2) the proposed sublease premises, together with all
other portions of the Premises then being subleased by Tenant and all Excess
Rent Sharing Space, is less than the lesser of 50,000 square feet or 25% of the
Premises, regardless of the duration of the proposed sublease. If Landlord
Recaptures any space as a result of a proposed sublease, such Recapture shall
only be for a period of time equal to the term of the proposed sublease
(regardless of whether or not Landlord actually leases the Recapture Space to
the proposed subtenant) and
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such
space shall again become part of the Premises (and Excess Rent Sharing Space)
upon expiration of such time period.
10.3 EXCESS
RENT
Tenant
shall pay Landlord on the first day of each month during the term of any
sublease or assignment, forty percent (40%) of the amount ("Excess Rent") by
which the sum of all rent and other consideration (direct or indirect) received
from the subtenant or assignee for such month exceeds: (a) that portion of the
Monthly Base Rent and Rent Adjustments due under this Lease for said month which
is allocable to the space sublet or assigned; and (b) the following costs and
expenses for the subletting or assignment of such space allocable to said month:
(i) brokerage commissions and attorneys' fees and expenses; (ii) advertising for
subtenants or assignees; (iii) the actual costs paid in making any improvements
or substitutions in the Premises required by any sublease or assignment; (iv)
costs of any inducements or concessions given to subtenant or assignee, such as
moving costs; (v) costs of unamortized Tenant Alterations paid for by Tenant as
of the date that the assignment or sublease commences; and (vi) any other
reasonable out-of-pocket costs of Tenant in obtaining a subtenant or assignee.
All such costs will be amortized (inclusive of interest at a rate no higher than
10% per annum) on a monthly basis over the term of the sublease or assignment
pursuant to sound accounting principles. Tenant shall have the right to sell any
of its trade fixtures, furniture and equipment to a subtenant or assignee
pursuant to a separate agreement and Landlord shall not be entitled to any of
the proceeds of such sale.
With
respect to Recapture Space which is also Excess Rent Sharing Space, Landlord
shall pay Tenant on the first day of each month during that portion of the term
of any lease or leases of such space (excluding any options to extend the term
of such lease(s)) which fall(s) within the Term of this Lease, sixty percent
(60%) of the Excess Rent received by Landlord from the tenant under any such
lease. If at the time Landlord Recaptures any space pursuant to Section 10.2,
the remainder obtained by subtracting (i) the sum of the aggregate rentable
square footage of the Premises which is subject to a sublease or has been
assigned (without Recapture), plus the aggregate rentable square footage of the
then existing Excess Rent Sharing Space (excluding the Recapture Space in
question), from (ii) the lesser of 25% of the Premises (including assigned
portions) or 50,000 rentable square feet, is a positive number, then that
positive number of rentable square feet of such Recapture Space (up to such
entire Recapture Space) will be deemed to be "Excess Rent Sharing Space." For
example, if Tenant has previously sublet a total of 40,000 rentable square feet
to various subtenants, and now wants to sublease an additional 25,000 rentable
square feet, but Landlord exercises its right to Recapture the entire 25,000
rentable square feet, then 10,000 of the 25,000 rentable square feet of such
Recapture Space would be Excess Rent Sharing Space. However, for purposes
hereof, Excess Rent will be calculated for such a space on a proportionate basis
taking into account all rentals and expenses, etc. described above for the
entire 25,000 rentable square feet. So Tenant would receive sixty percent (60%)
of forty percent (40%), or twenty-four percent (24%), of the aggregate Excess
Rent for the entire 25,000 rentable square feet.
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The
Recapture by Landlord of any Excess Rent Sharing Space which Tenant had proposed
to sublease shall only be for a period of time equal to the term of the proposed
sublease (regardless of whether or not Landlord actually leases the Recapture
Space to the proposed subtenant) and such space shall again become part of the
Premises (and Excess Rent Sharing Space) upon expiration of such time
period.
10.4 TENANT
LIABILITY
In the
event of any sublease or assignment, Tenant shall not be released or discharged
from any liability, whether past, present or future, under this Lease, including
any liability arising from the exercise of any renewal or expansion option;
provided, however, if Landlord exercises its recapture right, then Tenant shall
be released from those liabilities arising during or attributable to the
recapture period. Subject to Section 10.1(6), if Tenant requests Landlord's
consent to any such sublease or assignment, Tenant shall pay all reasonable
attorneys' fees and expenses incurred by Landlord with respect to such
assignment or sublease, not to exceed $500. In addition, if Tenant has any
options to extend the term of this Lease or to add other space to the Premises,
such options shall not be available to any subtenant or assignee, directly or
indirectly without Landlord's express written consent, except as otherwise
provided in Section 10.6 below.
10.5 ASSUMPTION
AND ATTORNMENT
If Tenant
shall assign this Lease as permitted herein, the assignee shall expressly assume
all of the obligations of Tenant hereunder in a written instrument reasonably
satisfactory to Landlord and furnished to Landlord not later than fifteen (15)
days prior to the effective date of the assignment. If Tenant shall sublease the
Premises as permitted herein, Tenant shall, at Landlord's option, either at the
time that Tenant and any subtenant enter into such sublease or within fifteen
(15) days following any request by Landlord made during the term of the
sublease, obtain and furnish to Landlord the written agreement of such subtenant
to the effect that the subtenant will attorn to Landlord and will pay all
subrent directly to Landlord, provided Landlord agrees, at its sole option, to
recognize said subtenant as a direct tenant of Landlord.
10.6 TRANSFERABILITY
OF RIGHTS
The
options set forth in the Rider and the rights set forth in Sections 3, 4, 16 and
17 of the Rider are personal to Tenant and any single assignee of Tenant's
entire interest in this Lease which is an Affiliate of Tenant, and may not be
transferred to and exercised by any other assignee or sublessee. However, no
assignment or subleases made by Tenant shall affect or impair the exercise by
KPMG Peat Marwick LLP of any termination right set forth in Section 10 of the
Rider or any reduction right set forth in Section 9 of the Rider.
Notwithstanding the foregoing to the contrary, Tenant's renewal rights as set
forth in Section 6 of the Rider shall be transferable by Tenant to any assignee
of Tenant's entire interest in this Lease or to a subtenant of more than 150,000
rentable square feet of the Premises.
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ARTICLE
ELEVEN
DEFAULT
AND REMEDIES
11.1 EVENTS
OF DEFAULT
The
occurrence or existence of any one or more of the following shall constitute a
"Default" by Tenant under this Lease:
(1) Tenant
fails to pay any installment or other payment of Rent when due including without
limitation Monthly Base Rent, Rent Adjustment Deposits or Rent Adjustments and
such failure continues for five (5) days after written notice thereof to
Tenant;
(2) Tenant
fails to observe or perform any of the other covenants, conditions or provisions
of this Lease or the Workletter and fails to cure such default within thirty
(30) days after written notice thereof to Tenant or, if such cure is not
reasonably possible within thirty (30) days, if Tenant fails to commence such
cure within such 30-day period and thereafter to diligently prosecute such cure
to completion (unless the default involves a hazardous condition, which shall be
cured forthwith);
(3) the
interest of Tenant in this Lease is levied upon under execution or other legal
process;
(4) a
petition is filed by or against Tenant to declare Tenant bankrupt or seeking a
plan of reorganization or arrangement under any Chapter of the Bankruptcy Code,
or any amendment, replacement or substitution therefor, or to delay payment of,
reduce or modify Tenant's debts, which in the case of an involuntary action is
not discharged or stayed within sixty (60) days;
(5) Tenant
is declared insolvent by law or any assignment of Tenant's property is made for
the benefit of creditors;
(6) a
receiver is appointed for Tenant or Tenant's property, which appointment is not
discharged or stayed within sixty (60) days;
(7) Intentionally
omitted;
(8) upon
the dissolution of Tenant, if Tenant is a corporation or other entity other than
a partnership or limited liability partnership, unless in either case Tenant is
immediately reconstituted, or upon the winding-up or liquidation of Tenant, if
Tenant is a partnership or limited liability partnership.
11.2 LANDLORD'S
REMEDIES
(1) If
a Default occurs, Landlord shall have the rights and remedies hereinafter set
forth, which shall be distinct and cumulative: (a) Landlord may terminate this
Lease by giving
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Tenant no
less than a five (5) day notice of Landlord's election to do so, in which event,
the Term of this Lease shall end and all of Tenant's rights and interests shall
expire on the date stated in such notice; (b) Landlord may terminate Tenant's
right of possession of the Premises without terminating this Lease by giving
notice to Tenant that Tenant's right of possession shall end on the date
specified in such notice; or (c) Landlord may enforce the provisions of this
Lease and may enforce and protect the rights of the Landlord hereunder by a suit
or suits in equity or at law for the specific performance of any covenant or
agreement contained herein, or for the enforcement of any other appropriate
legal or equitable remedy, including recovery of all monies due or to become due
for the balance of the Term from Tenant under any of the provisions of this
Lease. Landlord agrees that any right of distraint which it has with respect to
Tenant's property within the Premises shall be exercised in accordance with
Illinois law, shall be exercised only with respect to property located within
the Premises and any Storage Space subject to this Lease and not to property at
any other location and shall not, in any event, apply to Tenant's client files,
client records or other client work product.
(2) In
the event that Landlord terminates the Lease, Landlord shall be entitled to
recover as damages for loss of the bargain and not as a penalty, the present
value (utilizing a discount rate equal to four percent (4%) less than the
Default Rate) of Rent for the balance of the Term, plus all Landlord's
reasonable and necessary expenses of reletting, including without limitation,
repairs, alterations, improvements, additions, decorations, legal fees and
brokerage commissions (collectively, the "Reletting Expenses"), less the present
value (utilizing a discount rate equal to four percent (4%) less than the
Default Rate) of Monthly Base Rent and Rent Adjustments at the then Prevailing
Market as defined in Section 6(c)(ii) of the Rider reasonably projected to be
received from a new tenant for the Premises for the balance of the Term
commencing twelve (12) months after such termination (such twelve (12)-month
period being the agreed upon presumed "down time" during which it is deemed that
Landlord will prepare the Premises and market it and will not be receiving
rent). Notwithstanding the foregoing, Tenant shall never be entitled to a
payment from Landlord pursuant to the preceding sentence.
(3) In
the event Landlord proceeds pursuant to subparagraph (l)(b) above, Landlord
shall use reasonable efforts to relet the Premises, or any part thereof for the
account of Tenant, for such rent and term and upon such terms and conditions as
are reasonably acceptable to Landlord in accordance with Illinois law regarding
a landlord's duty to mitigate its damages. For purposes of such reletting,
Landlord is authorized to decorate, repair, alter and improve the Premises to
the extent reasonably necessary. If the Premises are relet and the consideration
realized therefrom after payment of all Landlord's Reletting Expenses, is
insufficient to satisfy the payment when due of Rent reserved under this Lease
for any monthly period, then Tenant shall pay Landlord upon demand any such
deficiency monthly. If such consideration is greater than the amount necessary
to pay the full amount of the Rent, the full amount of such excess shall be
retained by Landlord and shall in no event be payable to Tenant, but shall apply
to future Rent obligations of Tenant until such obligations are paid in full;
any excess thereafter shall be retained by Landlord for its own account. Tenant
agrees that Landlord may file suit to recover any sums due to Landlord hereunder
from time to time and that such suit or recovery of any amount due
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Landlord
hereunder shall not be any defense to any subsequent action brought for any
amount not theretofore reduced to judgment in favor of Landlord.
(4) In
the event a Default occurs, Landlord may, at Landlord's option and in accordance
with applicable Law, enter into the Premises, remove Tenant's property,
fixtures, furnishings, signs and other evidences of tenancy, and take and hold
such property; provided, however, that such entry and possession shall not
terminate this Lease or release Tenant, in whole or in part, from Tenant's
obligation to pay the Rent reserved hereunder for the full Term or from any
other obligation of Tenant under this Lease. Any and all property which may be
removed from the Premises by Landlord pursuant to the authority of the Lease or
Law, to which Tenant is or may be entitled, may be handled, removed or stored by
Landlord at the risk, cost and expense of Tenant, and Landlord shall in no event
be responsible for the value, preservation or safekeeping thereof. Tenant shall
pay Landlord, upon demand, any and all reasonable expenses incurred in such
removal and all storage charges against such property so long as the same shall
be in the Landlord's possession or under the Landlord's control. Any such
property of Tenant not retaken from storage by Tenant within thirty (30) days
after the Termination Date, shall be conclusively presumed to have been conveyed
by Tenant to Landlord under this Lease as a xxxx of sale without further payment
or credit by Landlord to Tenant but the aforesaid shall not apply to Tenant's
client files, client records or client work product which shall remain Tenant's
property.
11.3 ATTORNEY'S
FEES
Each
unsuccessful party ("First Party") shall pay, upon demand, all costs and
expenses, including reasonable attorneys' fees, incurred by the successful party
("Second Party") in enforcing First Party's performance of its obligations under
this Lease, or resulting from First Party's default which continues uncured past
applicable notice and cure periods, or incurred by Second Party in any
litigation, negotiation or transaction in which First Party causes Second Party,
without Second Party's fault, to become involved or concerned.
11.4 BANKRUPTCY
The
following provisions shall apply in the event of the bankruptcy or insolvency of
Tenant:
(1) In
connection with any case under Chapter 7 of the Bankruptcy Code where the
trustee of Tenant elects to assume this Lease for the purposes of assigning it,
such election or assignment, may only be made upon compliance with the
provisions of (2) and (3) below, which conditions Landlord and Tenant
acknowledge to be commercially reasonable. In the event the trustee elects to
reject this Lease then Landlord shall immediately be entitled to possession of
the Premises and this Lease shall terminate.
(2) Any
election to assume this Lease in a case under Chapter 11 of the Bankruptcy Code
by Tenant as debtor-in-possession or by Tenant's trustee (the "Electing Party")
must provide for:
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The
Electing Party to cure or provide to Landlord adequate assurance that it will
cure all monetary defaults under this Lease within fifteen (15) days from the
date of assumption and it will cure all nonmonetary defaults under this Lease
within thirty (30) days from the date of assumption, except those non-monetary
defaults listed in Section 365(b)(2) of the Bankruptcy Code. Landlord and Tenant
acknowledge such condition to be commercially reasonable.
(3) If
the Electing Party has assumed this Lease or elects to assign Tenant's interest
under this Lease to any other person, such interest may be assigned only if the
intended assignee has provided adequate assurance of future performance (as
herein defined), of all of the obligations imposed on Tenant under this
Lease.
For the
purposes hereof, "adequate assurance of future performance" means
that:
(a) The
assignee has submitted to Landlord a current financial statement and cash flow
analysis, certified by its chief financial officer, which shows a net worth,
working capital and cash flow in amounts sufficient to assure the future
performance by the assignee of Tenant's obligations under this
Lease;
(b) All
other requirements as to adequate assurance of future performance set forth in
the Bankruptcy Code and applicable case law; and
(c) Landlord
has obtained consents or waivers from any third parties which may be required
under a lease, mortgage, financing arrangement, or other agreement by which
Landlord is bound, to enable Landlord to permit such assignment.
(4) Landlord's
acceptance of Rent or any other payment from any trustee, receiver, assignee,
person, or other entity will not be deemed to have waived, or waive, the
requirement of Landlord's consent, Landlord's right to terminate this Lease for
any transfer of Tenant's interest under this Lease without such consent, or
Landlord's claim for any amount of Rent due from Tenant.
11.5 DEFAULT
BY LANDLORD; TENANT'S REMEDIES
Landlord
shall be in default under the terms of this Lease only if Landlord shall fail to
perform any of the terms, provisions, covenants, or conditions to be performed
or complied with by Landlord pursuant to this Lease and such failure continues
for more than thirty (30) days after Landlord receives written notice thereof
from Tenant; provided, however, that if the nature of Landlord's obligation is
such that more than thirty (30) days are required for its performance, then
Landlord shall not be deemed to be in default if it shall commence such
performance within such thirty (30) day period and thereafter shall diligently
prosecute the same to completion. In the event that Landlord fails to cure any
default as provided herein, Tenant shall have all rights and remedies available
to it at law or in equity, subject to the terms and conditions of this Lease.
All rights to
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cure
provided to Landlord under this Section 11.5 shall also be accorded to any
mortgagee, ground lessor or beneficiary under a deed of trust encumbering the
Property.
ARTICLE
TWELVE
SURRENDER
OF PREMISES
12.1 IN
GENERAL
Upon the
Termination Date, Tenant shall surrender and vacate the Premises immediately and
deliver possession thereof to Landlord in a clean, good and tenantable
condition, ordinary wear and tear, damage by fire or other casualty and damage
caused by Landlord excepted. Tenant shall deliver to Landlord all keys to the
Premises. Tenant shall be entitled to remove from the Premises all movable
personal property of Tenant, Tenant's trade fixtures and such Tenant Additions
which at the time of their installation Landlord and Tenant agreed in writing
may be removed by Tenant. Tenant shall also remove such other Tenant Additions
as required by Landlord consisting of computer floors, new stairwells and
staircases, specialty plumbing, supplemental cooling units, bracing of floors,
any structural alterations, vaults, safes or any other non-standard office
Tenant Additions (but specifically excluding white noise systems, voice/data
risers cabling (except as otherwise provided in Section 19 of the Rider), wall
coverings, floor coverings and lights), as well as any Tenant Additions
containing materials which, as of the Termination Date, are Hazardous Materials
requiring remediation under applicable Laws. Except as set forth in the
preceding sentence, Tenant shall not be required to remove any Tenant Additions.
Tenant shall not be required to remove any improvements (or to reconfigure the
space, including the removal of any Existing Improvements (as hereinafter
defined) or other openings between floors) that existed within the Premises on
the date that possession of the Premises was first delivered to Tenant. Without
limitation of the generality of the preceding sentence, the parties acknowledge
and agree that as of the date of this Lease, staircases and a studio exist in
the Premises (such existing staircases and studio being referred to herein as
the "Existing Improvements"), and that Tenant shall have no obligation to remove
the Existing Improvements upon expiration or earlier termination of this Lease.
Tenant immediately shall repair all damage resulting from removal of any of
Tenant's property, furnishings or Tenant Additions, shall close all floor,
ceiling and roof openings (except as provided above) and shall restore the
Premises to a tenantable condition as reasonably determined by Landlord, subject
to the preceding requirements as to which Tenant Additions must be removed by
Tenant. If any of the Tenant Additions which were installed by Tenant involved
the lowering of ceilings or raising of floors, then Tenant shall also be
obligated to return such surfaces to their condition prior to the commencement
of this Lease, reasonable wear and tear excepted. Tenant shall also be required
to close any staircases or other openings between floors which did not exist on
the date possession of the Premises was delivered to Tenant or which were
installed as part of Tenant's Work, except if in the place previously occupied
by a staircase. In the event possession of the Premises is not delivered to
Landlord when required hereunder, or if Tenant shall fail to remove those items
described above, Landlord may, at Tenant's reasonable expense, remove any of
such property therefrom without any liability to Landlord and undertake, at
Tenant's reasonable expense, such restoration work as
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Landlord
deems necessary or advisable. Tenant obligations under this Section 12.1 shall
survive expiration or earlier termination of this Lease.
12.2 LANDLORD'S
RIGHTS
All
property which may be removed from the Premises by Landlord shall be
conclusively presumed to have been abandoned by Tenant and Landlord shall deal
with such property as provided in Section 11.2(4). Tenant shall also reimburse
Landlord for all reasonable costs and expenses incurred by Landlord in removing
the Tenant Additions required to be removed by Tenant as provided above in
Section 12.1 and in restoring the Premises to the condition required by this
Lease at the Termination Date.
ARTICLE
THIRTEEN
HOLDING
OVER
Tenant
shall pay Landlord the greater of (a) 125% of the monthly Rent payable for the
month immediately preceding the holding over (including increases for Rent
Adjustments which Landlord may reasonably estimate), or (b) the fair market
rental value of the Premises as reasonably determined by Landlord, for each
month or portion thereof that Tenant retains possession of the Premises, or any
portion thereof, after the Termination Date (without reduction for any partial
month that Tenant retains possession); provided that, for every thirty (30) days
such holdover continues past the Termination Date, the total rent in clause (a)
above shall be increased by twenty-five percent (25%) until the total rent reach
200% after ninety (90) days of holdover. Tenant shall also pay all damages
sustained by Landlord by reason of such retention of possession; provided,
Tenant shall not be responsible for Landlord's consequential damages. The
provisions of this Article shall not constitute a waiver by Landlord of any
re-entry rights of Landlord and Tenant's continued occupancy of the Premises
shall be as a tenancy at sufferance.
ARTICLE
FOURTEEN
DAMAGE BY FIRE OR OTHER CASUALTY
DAMAGE BY FIRE OR OTHER CASUALTY
14.1 UNTENANTABILITY
(1) If
any fire or other casualty (whether insured or uninsured) renders all or a
substantial portion of the Premises or the Building Untenantable (and the term
"Untenantable" as used in this Article 14 shall include inaccessibility of the
Premises such that Tenant is unable to and does not use the Premises), Landlord
shall, with reasonable promptness after the occurrence of such damage,
reasonably estimate the length of time that will be required to Substantially
Complete the repair and restoration and shall by notice advise Tenant of such
estimate ("Landlord's Notice"). If Landlord reasonably estimates that the amount
of time required to Substantially Complete such repair and restoration will
exceed one hundred eighty (180) days (or sixty (60) days during the last two (2)
Lease Years of the then applicable Term provided, if Tenant then properly elects
to extend the Term of this Lease, then the 180-day test shall apply, in place of
the 60-day test) from the date such damage
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occurred,
then: (a) if the Premises is rendered completely Untenantable, Tenant shall have
the right to terminate this Lease as of the date of such damage upon giving
written notice to the other at any time within twenty (20) days after delivery
of Landlord's Notice, and (b) Landlord shall have the right to terminate this
Lease if Landlord terminates the leases of all similarly situated tenants (i.e.,
Landlord does not discriminate against Tenant in terminating this Lease) or if
Landlord does not intend to rebuild the Building in its current form, and
Landlord's Notice may also constitute such notice of termination. The term
"Untenantable" as used in this Article Fourteen shall mean: (i) with respect to
all or part of the Premises (as applicable), that as a result of the casualty,
Tenant is unable to conduct its business in the affected portion of the Premises
in substantially the manner that it was conducting its business prior to the
casualty and does not use the portion of the Premises so affected, and (ii) with
respect to the Building other than the Premises, that as a result of the
casualty, Landlord and other occupants of the Building are unable to conduct
their respective businesses in substantially the manner that they were
conducting such businesses prior to the casualty and do not use the
Building.
In the
event that this Lease is not terminated and Tenant continues to operate its
business at the Premises during the reconstruction of the Building, Landlord
shall, in its performance of such construction, use reasonable efforts to
minimize disruption and/or inconvenience to Tenant's business; provided,
however, that the parties acknowledge that some disruption and/or inconvenience
will inevitably occur due to the performance of such reconstruction
work.
(2) Unless
this Lease is terminated as provided in the preceding subsection, Landlord shall
proceed with reasonable promptness to repair and restore the Premises to its
condition as existed prior to such casualty, subject to reasonable delays for
insurance adjustments and Force Majeure delays, and also subject to zoning laws
and building codes then in effect. Landlord shall have no liability to Tenant,
and Tenant shall not be entitled to terminate this Lease if such repairs and
restoration are not in fact completed within the time period estimated by
Landlord so long as Landlord shall proceed with reasonable diligence to complete
such repairs and restoration. However, if said repairs and restoration are not
completed within the time period estimated by Landlord, plus additional time (up
to one (1) year after the date of the casualty) for Force Majeure delays and
insurance adjustments, Tenant shall any time thereafter be entitled to terminate
this Lease by five (5) days notice to Landlord.
(3) Tenant
acknowledges that, in the event that the Premises are to be repaired and
restored by Landlord, Landlord shall be entitled to the full proceeds of any
casualty insurance coverage, whether carried by Landlord or Tenant, for damages
to the Premises, and Landlord covenants to insure the Tenant Additions as
required pursuant to Article 16. In the event that this Lease is terminated
under this Section 14, then such insurance proceeds attributable to the Tenant
Work shall be payable to Landlord and Tenant, respectively, in the same
proportions that the Improvement Allowance paid by Landlord to Tenant pursuant
to Exhibit B and Tenant's direct costs paid to third parties for the Tenant
Work, respectively, bear to the total cost of the Tenant
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Work
completed pursuant to Exhibit B. These proportions shall govern the disposition
of casualty insurance proceeds attributable to Tenant Work in the Initial
Premises in the event this Lease is terminated pursuant to this Section 14
regardless of whether or not alterations or improvements are made to the Initial
Premises after completion of the Tenant Work and regardless of whether such
alterations or improvements are paid for by Landlord or Tenant. These
proportions shall also govern the disposition of casualty insurance proceeds in
the event this Lease is terminated pursuant to this Section 14, which proceeds
are payable with respect to any tenant work in space added to the Initial
Premises during the Term (whether such space is added pursuant to options
contained in this Lease or otherwise) regardless of whether or not alterations
or improvements are made to such space and regardless of whether such
alterations or improvements are paid for by Landlord or Tenant. The parties
shall cooperate reasonably and in good faith to establish the proportions
referred to above within a reasonable time after final completion of the Tenant
Work. In any case, Tenant shall be entitled to receive all proceeds of Tenant's
insurance of its own personal property and equipment which would be removable by
Tenant at the Termination Date.
(4) Notwithstanding
anything to the contrary herein set forth, provided that Landlord complies with
its obligation to maintain the insurance it is required to carry pursuant to
Article 16, except for deductibles and costs of adjustment, Landlord shall have
no duty pursuant to this Section to expend for any repair or restoration of the
Premises (including, without limitation, the Tenant Additions) or Building
amounts in excess of insurance proceeds paid to Landlord and available for
repair or restoration, unless Tenant makes available to Landlord any shortfall
required to complete any such repair or restoration.
(5) Any
repair or restoration of the Premises performed by Tenant shall be in accordance
with the provisions of Article Nine hereof.
14.2 DAMAGE
WITHOUT UNTENANTABILITY
If the
Premises or the Building is damaged by a casualty but neither is rendered
Untenantable, then Landlord shall proceed to repair and restore the Building or
the Premises inclusive of Tenant Alterations (as applicable) with reasonable
promptness, unless such damage is to the Premises and occurs during the last six
(6) months of the Term, in which event either Tenant or Landlord shall have the
right to terminate this Lease as of the date of such casualty by giving written
notice thereof to the other within twenty (20) days after the date of such
casualty.
14.3 RENT
ABATEMENT
If all or
any part of the Premises are rendered Untenantable by fire or other casualty and
this Lease is not terminated, Monthly Base Rent and Rent Adjustments shall xxxxx
for that part of the Premises (or the entire Premises, as the case may be) which
is Untenantable on a per diem basis from the date of the casualty until Landlord
has Substantially Completed the repair and restoration work in the Premises (to
include Tenant Alterations) which it is required to perform, provided, that as a
result of such casualty, Tenant does not occupy the portion of the Premises (or
the entire Premises, as the case may be) which is Untenantable during such
period.
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ARTICLE
FIFTEEN
EMINENT DOMAIN
EMINENT DOMAIN
15.1 TAKING
OF WHOLE OR SUBSTANTIAL PART
In the
event the whole or any substantial part of the Building or of the Premises is
taken or condemned by any competent authority for any public use or purpose
(including a deed given in lieu of condemnation) and is thereby rendered
completely or Substantially Untenantable (as hereinafter defined), this Lease
shall terminate as of the date title vests in such authority, and Monthly Base
Rent and Rent Adjustments shall be apportioned as of the Termination Date. The
term "Substantially Untenantable" as used in this Article Fifteen shall mean:
(i) with respect to the Premises, that as a result of the taking, Tenant, in its
reasonable opinion, is unable to conduct its business in substantially the
manner that it was conducting its business prior to the taking and does not use
the Premises, and (ii) with respect to the Building other than the Premises,
that as a result of the taking, Landlord and other occupants of the Building are
unable to conduct their respective businesses in substantially the manner that
they were conducting such businesses prior to the taking and do not use the
Building. Notwithstanding anything to the contrary herein set forth, in the
event the taking is temporary, Landlord and Tenant shall have the termination
and Rent abatement rights set forth in Article 14 as if such taking were a
casualty. Except as provided in this Section 15.1 and Section 15.2 below, Tenant
shall continue to pay Rent and this Lease shall not terminate as the result of a
taking.
15.2 TAKING
OF PART
In the
event a part of the Building or the Premises is taken or condemned by any
competent authority (or a deed is delivered in lieu of condemnation) and this
Lease is not terminated, the Lease shall be amended to reduce or increase, as
the case may be, the Monthly Base Rent and Tenant's Proportionate Share to
reflect the Rentable Area of the Premises or Building, as the case may be,
remaining after any such taking or condemnation. Landlord, upon receipt and to
the extent of the award in condemnation (or proceeds of sale) shall make
necessary repairs and restorations to the Premises (inclusive of Tenant
Alterations) and to the Building to the extent necessary to constitute the
portion of the Building not so taken or condemned as a complete architectural
and economically efficient unit. Notwithstanding the foregoing, if as a result
of any taking, or a governmental order that the grade of any street or alley
adjacent to the Building is to be changed and such taking or change of grade
makes it necessary or desirable to substantially remodel or restore the Building
or prevents the economical operation of the Building, Landlord shall have the
right to terminate this Lease upon ninety (90) days prior written notice to
Tenant, provided Landlord terminates all leases in the Building of tenants
similarly situated (i.e., Landlord does not discriminate against Tenant in
terminating this Lease). In addition, Tenant shall have the right to terminate
this Lease if a portion of the Premises is taken and the remaining Premises are
Substantially Untenantable as a result thereof, and Landlord is unable to
provide Tenant with other space in the Building reasonably acceptable to Tenant
to replace the taken space.
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15.3 COMPENSATION
Landlord
shall be entitled to receive the entire award (or sale proceeds) from any such
taking, condemnation or sale without any payment to Tenant, and Tenant hereby
assigns to Landlord Tenant's interest, if any, in such award; provided, however,
Tenant shall have the right separately to pursue against the condemning
authority a separate award for its personal property and moving costs, and in
respect of the loss, if any, to Tenant Additions paid for by Tenant without any
credit or allowance from Landlord (provided, however, that the Improvement
Allowance (as defined in Section 2 of Exhibit B) shall be deemed to be a credit
or allowance received from Landlord), so long as there is no diminution of
Landlord's award as a result.
ARTICLE
SIXTEEN
INSURANCE
INSURANCE
16.1 TENANT'S
INSURANCE
Tenant,
at Tenant's expense, agrees to maintain in force, with a company or companies
acceptable to Landlord, during the Tern: (a) Commercial General Liability
Insurance ("All Risk") on a primary basis and without any right of contribution
from any insurance carried by Landlord covering the Premises on an occurrence
basis against all claims for personal injury, bodily injury, death and property
damage, including contractual liability covering the indemnification provisions
in this Lease. Such insurance shall be for such limits that are reasonably
required by Landlord from time to time but not less than a combined single limit
of Five Million and No/100 Dollars ($5,000,000.00); (b) Workers' Compensation
and Employers' Liability Insurance for an amount of not less than One Million
and No/100 Dollars ($1,000,000.00), both in accordance with the Laws of the
State of Illinois; (c) "All Risks" property insurance in an amount adequate to
cover the full replacement cost of all equipment, installations, fixtures and
contents of the Premises (excluding Tenant Additions, which shall be covered by
Landlord's insurance) in the event of loss and any such policy shall contain a
provision requiring the insurance carriers to waive their rights of subrogation
against Landlord; (d) in the event a motor vehicle is to be used by Tenant in
connection with its business operation from the Premises, Comprehensive
Automobile Liability Insurance coverage with limits of not less than Three
Million and No/100 Dollars ($3,000,000.00) combined single limit coverage
against bodily injury liability and property damage liability arising out of the
use by or on behalf of Tenant, its agents and employees of any owned, non-owned
or hired motor vehicles; and (e) such other insurance or coverages as Landlord
reasonably requires and is customarily then being required by landlords to be
carried by tenants in similar first-class office buildings with similar uses in
Chicago, Illinois.
16.2 FORM
OF POLICIES
Each
policy referred to in Section 16.1 shall satisfy the following requirements. The
policies shall (a) name, on the liability policy, Landlord and the Indemnitees
as additional insureds, (b) be issued by one or more responsible insurance
companies licensed to do business in Illinois reasonably satisfactory to
Landlord, (c) where applicable, provide for reasonable deductible
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amounts
reasonably satisfactory to Landlord and not permit co-insurance, (d) shall
provide that such insurance may not be canceled or amended without thirty (30)
days' prior written notice to the Landlord, and (e) shall provide that the
policy shall not be invalidated should the insured waive in writing prior to a
loss, any or all rights of recovery against any other party for losses covered
by such policies. Tenant shall deliver to Landlord, certificates of insurance,
not less than ten (10) days prior to the Commencement Date and not less than ten
(10) days prior to the
expiration date of each policy. Tenant may effect the foregoing coverages by
means of a blanket policy. Tenant may self-insure for the property insurance
required under Section 16.l(c) and the liability insurance required under
Section 16.l(a) up to a total self-insurance amount of $2,000,000 for both
categories of insurance taken together. For purposes of Section 16.4, Tenant
will be deemed to have carried all insurance coverages (and to have received the
proceeds thereof) which are self insured by Tenant.
16.3 LANDLORD'S
INSURANCE
Landlord
agrees to purchase and keep in full force and effect during the Term hereof,
including any extensions or renewals thereof, insurance on the Building
(inclusive of Tenant Additions but not including Tenant's own personal property
and equipment) under policies issued by insurers of recognized responsibility,
qualified to do business in Illinois, on the Building in an amount not less than
eighty percent (80%) of the then full replacement cost (without depreciation) of
the Building (above foundations), against fire and such other risks as may be
included in standard forms of all risk coverage insurance reasonably available
from time to time. Landlord agrees to maintain in force during the Term,
Commercial General Liability All Risk Insurance covering the Building on an
occurrence basis against all claims for personal injury, bodily injury, death
and property damage. Such insurance shall be for not less than a combined single
limit of Five Million and No/100 Dollars ($5,000,000.00). Neither Landlord's
obligation to carry such insurance nor the carrying of such insurance shall be
deemed to be an indemnity by Landlord with respect to any claim, liability,
loss, cost or expense due, in whole or in part, to Tenant's negligent acts or
omissions or willful misconduct. Landlord shall deliver to Tenant, upon Tenant's
request, certificates of insurance for all policies required to be maintained by
Landlord hereunder.
16.4 WAIVER
OF SUBROGATION
(1) Landlord
agrees that, if obtainable, it will include in its "All Risks" policies
appropriate clauses pursuant to which the insurance companies (a) waive all
right of subrogation against Tenant with respect to losses payable under such
policies, and (b) agree that such policies shall not be invalidated should the
insured waive in writing prior to a loss any or all right of recovery against
any party for losses covered by such policies. Tenant agrees to include, if
obtainable, its "All Risks" insurance policy or policies on its furniture,
furnishings, fixtures and other property removable by Tenant under the
provisions of this Lease appropriate clauses pursuant to which the insurance
company or companies (a) waive the right of subrogation against Landlord and/or
any tenant of space in the Building with respect to losses payable under
such
-45-
policy or
policies, and (b) agree that such policy or policies shall not be invalidated
should the insured waive in writing prior to a loss any or all right of recovery
against any party for losses covered by such policy or policies.
(2) Intentionally
omitted.
(3) Provided
that Landlord's right of full recovery under its policy or policies aforesaid is
not adversely affected or prejudiced thereby, Landlord hereby waives any and all
right of recovery which it might otherwise have against Tenant, its servants,
agents and employees, for loss or damage occurring to the Building and the
fixtures, appurtenances and equipment therein, to the extent the same is covered
by Landlord's insurance, notwithstanding that such loss or damage may result
from the negligence or fault of Tenant, its servants, agents or employees.
Provided that Tenant's right of full recovery under its aforesaid policy or
policies is not adversely affected or prejudiced thereby, Tenant hereby waives
any and all right of recovery which it might otherwise have against Landlord,
its servants, agents and employees and against every other tenant in the
Building who shall have executed a similar waiver as set forth in this Section
16.4 (3) for loss or damage to Tenant's furniture, furnishings, fixtures and
other property removable by Tenant under the provisions hereof to the extent
that same is covered by Tenant's insurance, notwithstanding that such loss or
damage may result from the negligence or fault of Landlord, its servants, agents
or employees, or such other tenant and the servants, agents or employees
thereof.
(4) Landlord
and Tenant hereby agree to advise the other promptly if the clauses to be
included in their respective insurance policies pursuant to subparagraph (1)
above cannot be obtained on the terns hereinbefore provided and thereafter to
furnish the other with a certificate of insurance or copy of such policies
showing the naming of the other as an additional insured, as aforesaid. Landlord
and Tenant hereby also agree to notify the other promptly of any cancellation or
change of the terms of any such policy which would affect such clauses or
naming. All such policies which name both Landlord and Tenant as additional
insureds shall, to the extent obtainable, contain agreements by the insurers to
the effect that no act or omission of any insured will invalidate the policy as
to the other insureds.
16.5 NOTICE
OF CASUALTY
Tenant
shall give Landlord notice in case of a fire or accident in the Premises
promptly after Tenant is aware of such event.
ARTICLE
SEVENTEEN
WAIVER
OF CLAIMS AND INDEMNITY
17.1 WAIVER
OF CLAIMS
To the
extent permitted by law, Tenant releases the Indemnitees from, and waives all
claims for, damage to person or property sustained by the Tenant or any occupant
of the Building or Premises resulting directly or indirectly from any existing
or future condition, defect,
-46-
matter or
thing in and about the Property or the Premises or any part of either or any
equipment or appurtenance therein, or resulting from any accident in or about
the Property, or resulting directly or indirectly from any act or neglect of any
tenant or occupant of the Building or of any other person, including Landlord's
agents, employees and servants, except where resulting from the willful and
wrongful act of any of the Indemnitees. Tenant hereby waives any consequential
damages, compensation or claims for inconvenience or loss of business, rents, or
profits as a result of such injury or damage. If any such damage, whether to the
Premises or to any part of the Property or any part thereof, or whether to
Landlord or to other tenants in the Building, results from any act or neglect of
Tenant, its employees, servants, agents, contractors, invitees (provided that
such invitees are within the Premises), Tenant shall be liable therefor and
Landlord may, at Landlord's option, repair such damage and Tenant shall, upon
demand by Landlord, as payment of additional Rent hereunder, reimburse Landlord
within thirty (30) days of demand for the reasonable cost of such repairs, in
excess of amounts, if any, paid to Landlord under insurance covering such
damages or which would have been paid to Landlord if Landlord had carried all
insurance required under this Lease. Tenant shall not be liable for any damage
caused by its acts or neglect to the extent Landlord or a tenant has recovered
the amount of the damage from proceeds of insurance policies and a waiver of
subrogation against Tenant was obtainable by Landlord or to the extent insurance
was required to be maintained by Landlord against the damage or to the extent of
any deductible maintained by Landlord. Nothing in this Section shall be deemed
to be a release by Tenant of any claims it may have against other tenants or
occupants of the Building which are not Indemnitees.
17.2 INDEMNITY
BY TENANT
To the
extent permitted by law, Tenant agrees to indemnify, protect, defend and hold
the Indemnitees harmless against any and all actions, claims, demands, costs and
expenses, including reasonable attorney's fees and expenses for the defense
thereof, arising from Tenant's occupancy of the Premises, from the undertaking
of any Tenant Additions or repairs to the Premises, from the conduct of Tenant's
business on the Premises, or from any breach or default on the part of Tenant in
the performance of any covenant or agreement on the part of Tenant to be
performed pursuant to the terms of this Lease, or from any willful or negligent
act of Tenant, its agents, contractors, servants, employees, customers or
invitees, in or about the Premises, except to the extent due to Landlord's
negligence or that of the Indemnitees. In case of any action or proceeding
brought against the Indemnitees by reason of any such claim, upon notice from
Landlord, Tenant covenants to defend such action or proceeding by counsel
reasonably satisfactory to Landlord. Tenant's obligations under this Section
17.2 (which shall be deemed to include Tenant's indemnity obligations under
Section 7.1(2)) shall survive expiration or earlier termination of this
Lease.
-47-
ARTICLE
EIGHTEEN
RULES AND REGULATIONS
RULES AND REGULATIONS
18.1 RULES
Tenant
agrees for itself and for its subtenants, employees, agents, and invitees to
comply with the rules and regulations listed on Exhibit D attached hereto and
with all reasonable modifications and additions thereto which Landlord may make
from time to time.
18.2 ENFORCEMENT
Nothing
in this Lease shall be construed to impose upon Landlord any duty or obligation
to enforce the rules and regulations as set forth on Exhibit D or as hereafter
adopted, or the terms, covenants or conditions of any other lease as against any
other tenant, and Landlord shall not be liable to Tenant for violation of the
same by any other tenant, its servants, employees, agents, visitors or
licensees. Landlord shall not enforce the rules and regulations against Tenant
in a discriminatory manner.
ARTICLE
NINETEEN
LANDLORD'S RESERVED RIGHTS
LANDLORD'S RESERVED RIGHTS
Landlord
shall have the following rights exercisable without notice to Tenant and without
liability to Tenant for damage or injury to persons, property or business and
without being deemed an eviction or disturbance of Tenant's use or possession of
the Premises or giving rise to any claim for setoff or abatement of Rent: (a)
Subject to the provisions of Section 16 of the Rider, to change the Building's
name or street address upon thirty (30) days' prior written notice to Tenant,
(b) Subject to the provisions of Section 3 of the Rider, to install, affix and
maintain all signs on the exterior and/or interior of the Building; (c) To
approve prior to installation, all types of signs, window shades, blinds,
drapes, awnings or other similar items, and all internal lighting that may be
visible from the exterior of the Premises; (d) Upon reasonable notice to Tenant,
to display the Premises to prospective tenants at reasonable hours during the
last twelve (12) months of the Term; (e) Subject to the provisions of Section 4
of the Rider and to Tenant's rights under this Lease, to grant to any party the
exclusive right to conduct any business or render any service in or to the
Building, provided such exclusive right shall not operate to prohibit Tenant
from using the Premises for the purpose permitted hereunder; (f) To change the
arrangement and/or location of entrances or passageways, doors and doorways,
corridors, elevators, stairs, washrooms or public portions of the Building
except on full floors occupied by Tenant (unless such changes are required by
applicable Law), and to close entrances, doors, corridors, elevators or other
facilities except on full floors occupied by Tenant (unless such changes are
required by applicable Law), provided that such action shall not materially and
adversely interfere with Tenant's access to the Premises or the Building, and
further provided that no changes shall occur to the number of elevators serving
the Premises and no material changes made shall be to the lobby entrance to the
Building without Tenant's consent, which shall not be unreasonably withheld,
conditioned or
-48-
delayed;
(g) To have access for Landlord and other tenants of the Building to any mail
chutes and boxes located in or on the Premises as required by any applicable
rules of the United States Post Office; and (h) To close the Building after
normal business hours, except that Tenant and its employees and invitees shall
be entitled to admission at all times (i.e., 24 hours per day, seven (7) days
per week, 365 days per year), under such regulations as Landlord prescribes for
security purposes.
ARTICLE
TWENTY
ESTOPPEL CERTIFICATE
ESTOPPEL CERTIFICATE
20.1 IN
GENERAL
Within
twenty (20) business days after request therefor by Landlord, Mortgagee or any
prospective mortgagee or owner, Tenant agrees as directed in such request to
execute an Estoppel Certificate in recordable form, binding upon Tenant,
certifying (a) that this Lease is unmodified and in full force and effect (or if
there have been modifications, a description of such modifications and that this
Lease as modified is in full force and effect; (b) the dates to which Rent has
been paid; (c) that Tenant is in the possession of the Premises if that is the
case; (d) that Landlord is not in default under this Lease, or, if Tenant
believes Landlord is in default, the nature thereof in detail; (e) that Tenant
has no off-sets or defenses to the performance of its obligations under this
Lease (or if Tenant believes there are any off-sets or defenses, a full and
complete explanation thereof); (f) that, to Tenant's knowledge, the Premises
have been completed in accordance with the terms and provisions hereof and the
Workletter, that Tenant has accepted the Premises and the condition thereof and
of all improvements thereto and has no claims against Landlord or any other
party with respect thereto (or if Tenant believes there are such claims, a full
and complete explanation thereof); (g) that if an assignment of rents or leases
has been served upon the Tenant by a Mortgagee, Tenant will acknowledge receipt
thereof and agree to be bound by the provisions thereof, (h) that Tenant will
give to the Mortgagee copies of all notices required or permitted to be given by
Tenant to Landlord; and (i) to any other information reasonably
requested.
Within
twenty (20) business days after request therefor by Tenant, Landlord agrees as
directed in such request to execute an Estoppel Certificate in recordable form,
binding upon Landlord, certifying (a) that this Lease is unmodified and in full
force and effect (or if there have been modifications, a description of such
modifications and that this Lease as modified is in full force and effect); (b)
the dates to which Rent has been paid; (c) that to Landlord's knowledge, Tenant
is in possession of the Premises if that is the case; (d) that to Landlord's
knowledge, Tenant is not in default under this Lease, or, if Landlord believes
Tenant is in default, the nature thereof in detail; (e) that to Landlord's
knowledge, Landlord has no off-sets or defenses to the performance of its
obligations under this Lease (or if Landlord believes there are any off-sets or
defenses, a full and complete explanation thereof); (f) that to Landlord's
knowledge, the Premises have been completed in accordance with the terms and
provisions hereof and the Workletter, that Tenant has accepted the Premises and
the condition thereof and of all improvements thereto and Landlord
has
-49-
no claims
against Tenant or any other party with respect thereto (or if Landlord believes
there are such claims, a full and complete explanation thereof); (g) whether or
not an assignment of rents or leases has been served upon the Tenant by a
Mortgagee; and (h) to any other information reasonably requested.
20.2 ENFORCEMENT
In the
event that either party fails to deliver an Estoppel Certificate and such
failure continues after five (5) days notice from the other party, then such
failure shall be a Default by said other party.
ARTICLE
TWENTY-ONE
INTENTIONALLY OMITTED
INTENTIONALLY OMITTED
ARTICLE
TWENTY-TWO
REAL ESTATE BROKERS
REAL ESTATE BROKERS
Each
party hereto represents and warrants that, except for Xxxxxxx & Xxxxxxxxx
State Street, Inc. (“C&W”) and LaSalle Partners ("LaSalle"), it has not
dealt with any other real estate broker, sales person, or finder in connection
with this Lease, and no such other person initiated or participated in the
negotiation of this Lease, or showed the Premises to Tenant. Tenant hereby
agrees to indemnify, protect, defend and hold Landlord and the Indemnitees,
harmless from and against any and all liabilities and claims for commissions and
fees arising out of a breach of the foregoing representation. Landlord hereby
agrees to indemnify, protect, defend and hold Tenant harmless from and against
any and all liabilities and claims for commissions and fees arising from a
breach of Landlord's representation. Landlord shall be responsible for the
payment of all commissions to C&W and LaSalle pursuant to a separate
agreement.
ARTICLE
TWENTY-THREE
MORTGAGEE PROTECTION
MORTGAGEE PROTECTION
23.1 SUBORDINATION
AND ATTORNMENT
This
Lease is and shall be expressly subject and subordinate at all times to (a) any
ground or underlying lease of the Real Property, now or hereafter existing, and
all amendments, renewals and modifications to any such lease, and (b) the lien
of any first mortgage or trust deed now or hereafter encumbering fee title to
the Real Property and/or the leasehold estate under any such lease, unless such
ground lease or ground lessor, or mortgage or Mortgagee expressly provides or
elects that the Lease shall be superior to such lease or mortgage. If any such
mortgage or trust deed is foreclosed, or if any such lease is terminated, upon
request of the Mortgagee or ground lessor, as the case may be, Tenant will
attorn to the purchaser at the foreclosure sale or to the ground lessor under
such lease, as the case may be, provided, however, that such purchaser or ground
lessor shall not be (a) bound by any payment of Rent for more than one month in
advance except payments in the nature of security for the performance by Tenant
of its obligations under
-50-
this
Lease, (b) subject to any offset, defense or damages arising out of a default of
any obligations of any preceding Landlord, except to the extent said default is
ongoing, relates to the physical condition of the Property and is not diligently
cured by such purchaser or ground lessor after such purchaser or ground lessor
takes possession of the Real Property, in which case such purchaser or ground
lessor shall, subject to the terms of this Lease, be liable for damages arising
on and after the date it succeeded to Landlord's title hereunder, or (c) bound
by any amendment or modification of this Lease made without the written consent
of the Mortgagee or ground lessor, or (d) liable for any security deposits not
actually received in cash by such purchaser or ground lessor. This subordination
shall be self-operative and no further certificate or instrument of
subordination need be required by any such Mortgagee or ground lessor. In
confirmation of such subordination, however, Tenant shall execute promptly any
reasonable certificate or instrument that Landlord, Mortgagee or ground lessor
may request. Upon request by such successor in interest, Tenant shall execute
and deliver reasonable instruments confirming the attornment provided for
herein.
Landlord
hereby represents to Tenant that there is no Mortgage or ground lease on the
Property as of the date of this Lease. This Lease shall only be subordinate to
Mortgages and ground leases entered after the date of this Lease if the holders
thereof agree in writing substantially in the form attached as Exhibit I to (i)
recognize this Lease and not disturb Tenant's occupancy hereunder, except in the
exercise of its (or its designee's) rights as Landlord hereunder, and (ii) make
proceeds of casualty and condemnation available to Landlord for restoration as
provided by this Lease.
23.2 MORTGAGEE
PROTECTION
Tenant
agrees to give any Mortgagee or ground lessor, by registered or certified mail,
a copy of any notice of default served upon Landlord by Tenant, provided that
prior to such notice Tenant has received notice (by way of service on Tenant of
a copy of an assignment of rents and leases, or otherwise) of the address of
such Mortgagee or ground lessor. Tenant further agrees that if Landlord shall
have failed to cure such default within the time provided for in this Lease,
then the Mortgagee or ground lessor shall have an additional thirty (30) days
after receipt of notice thereof within which to cure such default or if such
default cannot be cured within that time, then such additional time as may be
necessary, if, within such thirty (30) days, any Mortgagee or ground lessor has
commenced and is diligently pursuing the remedies necessary to cure such default
(including but not limited to commencement of foreclosure proceedings or other
proceedings to acquire possession of the Real Property and/or appoint a receiver
for the Real Property, if necessary to effect or cause the receiver to offset
such cure). Such period of time shall be extended by any period within which
such Mortgagee or ground lessor is prevented from commencing or pursuing such
foreclosure proceedings or other proceedings to acquire possession of the Real
Property by reason of Landlord's bankruptcy. Until the time allowed as aforesaid
for Mortgagee or ground lessor to cure such defaults has expired without cure,
Tenant shall have no right to, and shall not, terminate this Lease on account of
default. If such cure by any Mortgagee or ground lessor takes more than thirty
(30) days or it is reasonably estimated by such Mortgagee or ground lessor that
such cure shall take more than thirty (30) days, then such Mortgagee or ground
lessor
-51-
shall
promptly advise Tenant in writing that such Mortgagee or ground lessor is using
good faith efforts to effect such cure as quickly as reasonable possible. This
Lease may not be modified or amended so as to reduce the rent or shorten the
Term, or so as to adversely affect in any other respect to any material extent
the rights of Landlord, nor shall this Lease be canceled or surrendered, without
the prior written consent, in each instance, of the ground lessor or the
Mortgagee.
ARTICLE
TWENTY-FOUR
NOTICES
(1) All
notices, demands or requests provided for or permitted to be given pursuant to
this Lease must be in writing and shall be personally delivered, sent by Federal
Express or other overnight courier service, or mailed by first class, registered
or certified mail, return receipt requested, postage prepaid.
(2) All
notices, demands or requests to be sent pursuant to this Lease shall be deemed
to have been properly given or served by delivering or sending the same in
accordance with this Section, addressed to the parties hereto at their
respective addresses listed below:
(a) Notices
to Landlord shall be addressed:
XXXXXXX
& WAKEFIELD STATE STREET, INC.
000 Xxxx
Xxxxxx Xxxxx - Xxxxx 0000
Xxxxxxx,
Xxxxxxxx 00000-0000
with a
copy to the following:
METROPOLITAN
LIFE INSURANCE COMPANY
0000
Xxxxxx Xxxx - Xxxxx 000
Xxx
Xxxxx, Xxxxxxxx 00000
(b) Notices
to Tenant shall be addressed:
KPMG PEAT
MARWICK LLP
000 X.
Xxxxxx Xxxxx
Xxxxx
______
Xxxxxxx,
Xxxxxxxx 00000
and
-52-
KPMG PEAT
MARWICK LLP
Three
Chestnut Xxxxx Xxxx
Xxxxxxxx,
Xxx Xxxxxx 00000-0000
Attn:
Director of Real Estate
with a
copy to the following:
XXXXXXXXX
& XXXXXXXXX
000 Xxxx
Xxxxxxx Xxxxxx
Xxxxxxxx
Xxxx, Xxx Xxxxxx 00000
Attn:
Xxxxxx X. Xxxxxxxxx, Esq.
(3) Notices,
demands or requests shall be sent by national air courier service and shall be
effective upon receipt (which shall include signature by a receptionist or
mailroom employee or an officer, director or partner of any party hereto).
Rejection or other refusal to accept or the inability to deliver because of
changed address of which no notice was given shall be deemed to be receipt of
notice, demand or request sent.
(4) By
giving to the other party at least thirty (30) days written notice thereof,
either party shall have the right from time to time during the Term of this
Lease to change their respective addresses for notices, statements, demands and
requests, provided such new address shall be within the United States of
America.
ARTICLE
TWENTY-FIVE
INTENTIONALLY
OMITTED
ARTICLE
TWENTY-SIX
MISCELLANEOUS
26.1 LATE
CHARGES
All
payments required hereunder (other than the Monthly Base Rent, Rent Adjustments,
and Rent Adjustment Deposits, which shall be due as hereinbefore provided) to
Landlord shall be paid within thirty (30) days after Landlord's written demand
therefor. All such amounts (including, without limitation Monthly Base Rent,
Rent Adjustments, and Rent Adjustment Deposits) not paid when due shall bear
interest from the date due until the date paid at the Default Rate in effect on
the date such payment was due.
26.2 WAIVER
OF JURY TRIAL
Landlord
and Tenant each hereby waives its right to a trial by jury of any issues
relating to or arising out of its or the other party's obligations under this
Lease or Tenant's
-53-
occupancy
of the Premises. Tenant and Landlord acknowledges that they have read and
understood the foregoing provision.
26.3 INTENTIONALLY
OMITTED
26.4 OPTION
This
Lease shall not become effective as a lease or otherwise until executed and
delivered by both Landlord and Tenant. The submission of the Lease to Tenant
does not constitute a reservation of or option for the Premises, except that it
shall constitute an irrevocable offer on the part of Tenant in effect for ten
(10) days to lease the Premises on the terms and conditions herein
contained.
26.5 AUTHORITY
Each
party represents and warrants to the other party that it has full authority and
power to enter into and perform its obligations under this Lease, that the
person executing this Lease is fully empowered to do so, and that no consent or
authorization is necessary from any third party. Each party may request that the
other party provide requesting party evidence of such other party's
authority.
26.6 ENTIRE
AGREEMENT
This
Lease, the Exhibits attached hereto and the Workletter contain the entire
agreement between Landlord and Tenant concerning the Premises and there are no
other agreements, either oral or written. This Lease shall not be modified
except by a writing executed by Landlord and Tenant.
26.7 INTENTIONALLY
OMITTED
26.8 EXCULPATION
Tenant
agrees, on its behalf and on behalf of its successors and assigns, that, except
as provided in the last sentence of this Section 26.8, any liability of
Metropolitan Life Insurance Company with respect to this Lease shall never
exceed the lesser of $10,000,000 or Metropolitan Life Insurance Company's equity
in the Building, and Tenant shall not be entitled to any judgment in excess of
such amount. Tenant agrees, on its behalf and on behalf of its successors and
assigns, that, except as provided in the last sentence of this Section 26.8, any
liability of any successor owner of the Building with respect to this Lease
shall never exceed such successor owner's equity in the Building, and Tenant
shall not be entitled to any judgment in excess of such amount. Subject to the
terms of this Lease, Landlord (whether Metropolitan Life Insurance Company or a
successor owner) shall be responsible for payment to Tenant of the Improvement
Allowance and said obligation shall not be subject to this Section
26.8.
-54-
26.9 ACCORD
AND SATISFACTION
No
payment by Tenant or receipt by Landlord of a lesser amount than any installment
or payment of Rent due shall be deemed to be other than on account of the amount
due, and no endorsement or statement on any check or any letter accompanying any
check or payment of Rent shall be deemed an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord's right
to recover the balance of such installment or payment of Rent or pursue any
other remedies available to Landlord. No receipt of money by Landlord from
Tenant after the termination of this Lease or Tenant's right of possession of
the Premises shall reinstate, continue or extend the Term or Tenant's right of
possession of the Premises.
26.10 LANDLORD'S
OBLIGATIONS ON SALE OF BUILDING
In the
event of any sale or other transfer of the Building, Landlord shall be entirely
freed and relieved of all agreements and obligations of Landlord hereunder
accruing or to be performed after the date of such sale or transfer, provided
that all of such Landlord's obligations hereunder are specifically assumed by
the buyer or transferee.
26.11 BINDING
EFFECT
This
Lease shall be binding upon and inure to the benefit of Landlord and Tenant and
their respective heirs, legal representatives, successors and permitted
assigns.
26.12 CAPTIONS
The
Article and Section captions in this Lease are inserted only as a matter of
convenience and in no way define, limit, construe, or describe the scope or
intent of such Articles and Sections.
26.13 APPLICABLE
LAW
This
Lease shall be construed in accordance with the laws of the State of Illinois.
If any term, covenant or condition of this Lease or the application thereof to
any person or circumstance shall, to any extent, be invalid or unenforceable,
the remainder of this Lease, or the application of such term, covenant or
condition to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and each item, covenant
or condition of this Lease shall be valid and be enforced to the fullest extent
permitted by Law.
26.14 ABANDONMENT
In the
event Tenant abandons the Premises even though it is otherwise in compliance
with all the terms, covenants and conditions of this Lease, Landlord shall: (a)
have the right to enter into the Premises in order to show the space to
prospective tenants; and (b) have the
-55-
right to
reduce the service provided to Tenant pursuant to the terms of this Lease to
such levels as Landlord reasonably determines to be adequate services for an
unoccupied premises.
26.15 LANDLORD'S
RIGHT TO PERFORM TENANT'S DUTIES
If Tenant
fails timely to perform any of its duties under this Lease or the Workletter,
Landlord shall have the right (but not the obligation), to perform such duty on
behalf and at the reasonable expense of Tenant upon notice to Tenant as provided
in the following sentence, and all reasonable sums expended or expenses incurred
by Landlord in performing such duty shall be deemed to be additional Rent under
this Lease and shall be due and payable upon thirty (30) days demand by
Landlord. Except as otherwise expressly set forth in this Lease and except in
emergency situations, prior to performing any such duty on Tenant's behalf,
Landlord shall give Tenant thirty (30) days prior written notice that Landlord
intends to so act, and Landlord shall then have the right to so act unless
Tenant performs such duty within the aforesaid 30-day period, or if the duty is
such that it cannot reasonably be performed within thirty (30) days, unless
Tenant commences to perform such duty within thirty (30) days and thereafter
diligently performs such duty to completion.
26.16 COUNTERPARTS
This
Agreement may be executed in any number of identical counterparts, any or all of
which may contain the signatures of less than all of the parties and all of
which shall be construed together as but a single instrument.
26.17 RIDERS
All
Riders attached hereto and executed both by Landlord and Tenant shall be deemed
to be a part hereof and hereby incorporated herein.
-56-
IN WITNESS WHEREOF, this Lease
has been executed as of the date set forth in Section 1.1(4)
hereof.
LANDLORD
|
|
METROPOLITAN
LIFE INSURANCE
|
|
ATTEST:
|
COMPANY,
a New York corporation
|
By
[Signature
Illegible]
|
By
[Signature
Illegible]
|
Its
Asset
Mgr
|
Its
Vice-President
|
TENANT
|
|
KPMG
PEAT MARWICK LLP, a Delaware
|
|
ATTEST:
|
limited
liability partnership
|
By
/s/ Xxxxxxx X.
Xxxxxx
|
By
/s/ Xxxxxx X.
Xxxxxx
|
Its DIRECTOR
|
Its
CHIEF FINANCIAL
OFFICER
|
REAL
ESTATE AND
|
|
FACILITIES
PLANNING
|
-57-
EXHIBIT
A
(Consisting
of 7 Pages)
PLAN
OF PREMISES
[13th
floor demising plan to be provided by Landlord when Tenant has established its
final
requirement for the size of the Premises pursuant to Section 2.4]
[19th
floor demising plan to be provided by Landlord when Tenant has established its
final requirement for the size of the Premises pursuant to Section
2.4]
-7-
EXHIBIT
B
WORKLETTER
AGREEMENT
1. Landlord and Tenant Work.
Under the Lease, Tenant has agreed to accept the Premises "as is," without any
obligations for the performance of improvements or other work by Landlord,
except for the work ("Landlord Work" or "Base Building Work") set forth on
Attachment 1 which is attached to this Workletter Agreement and made a part
hereof. All of the Base Building Work (except for the leveling of floors) shall
be substantially completed by Landlord after the Delivery Date and while Tenant
is performing the Tenant Work. If Landlord does not complete its floor levelling
(other than the 13th floor) until after January 15, 1998 (i.e., the Delivery
Date, provided that Tenant has completed its demolition of the Premises (except
for the 13th floor) no later than October 31, 1997; otherwise, such January 15,
1998 date shall be delayed on a day-for-day basis for each day after October 31,
1997 that Tenant fails to complete its demolition (except for the 13th floor))
then such Landlord delay shall, on a day-for-day basis for each day after the
Delivery Date that Landlord has not completed the floor levelling (other than
the 13th floor), be applied to reduce the period of any Tenant Delay; and if
there are no Tenant Delays, then such Landlord delay shall, on a day-for-day
basis, delay the January 31, 1999 date set forth in Section 15 of the Rider.
Both parties agree that they and their contractors shall cooperate reasonably
and in good faith with one another so that the performance by either party of
its work does not materially impair or delay the performance by the other party
of its work.
Tenant
desires to perform certain improvements to the Premises at the commencement of
this Lease (the "Tenant Work"). Such Tenant Work shall be in accordance with the
provisions of this Workletter Agreement, including without limitation the
building standards ("Building Standards") attached hereto as Attachment 2, and
to the extent not expressly inconsistent herewith, in accordance with the
provisions of the Lease, including Article 9 thereof. Tenant shall be deemed to
be in compliance with Attachment 2 if the materials and procedures used by
Tenant equal or exceed ( in Landlord's sole judgment) the quality levels set
forth in Attachment 2. Performance of the Tenant Work shall not serve to xxxxx
or extend the time for the commencement of Base Rent and Rent Adjustment
Deposits under the Lease, except to the extent Landlord delays approvals beyond
the times permitted below. The Landlord Work and Tenant Work are sometimes
referred to collectively herein as "Work".
2. Cost of the Work. Except as
hereinafter provided, Tenant shall pay all costs (the "Costs of the Tenant
Work") associated with the Tenant Work whatsoever, including without limitation,
all permits, inspection fees, fees of space planners, architects, engineers, and
contractors, utility connections, the cost of all labor and materials, bonds,
insurance, and any structural or mechanical work, additional HVAC equipment or
distribution of HVAC or sprinkler distribution or heads, or modifications to any
Building mechanical, electrical, plumbing or other systems and equipment or
relocation of any existing sprinkler heads, either within or outside the
Premises required as a result of the layout, design, or construction of the
Tenant Work. Tenant shall also pay the then-applicable Building charges for
truck dock time and freight elevator
usage.
These charges currently consist of $18.39/hr for security guard at truck dock
(with 4-hour minimum) and $30.40/hr for starter at elevator (with 4-hour
minimum); the foregoing charges apply from 4:00 p.m. until 8:00 a.m. There are
no charges for use of the dock and freight elevator between 8:00 a.m. and 4:00
p.m., but use of the freight elevator for bulk deliveries of construction
materials, furniture or other construction related items is not permitted during
these hours. Subject to applicable weight limitations, Tenant shall have the
right to use two (2) passenger elevators (which shall be padded and protected by
Tenant) for the delivery of furniture and for Tenant's physical move to the
Premises; such use shall be at no charge to Tenant except that Tenant shall
reimburse Landlord for any union labor costs incurred by Landlord for such use
by Tenant. If the nature of the Tenant Work requires that Tenant or its
contractors enter space leased to other tenants in order to perform any part of
the Tenant Work, then (i) Tenant shall pay for the cost of a security guard to
be present during such entry into other tenant spaces; and (ii) all such work
shall be done in a way that minimizes the disruption caused to any other
tenant.
Of the
Costs of the Tenant Work, Landlord shall reimburse Tenant a maximum of $45.00
per rentable square foot of the Initial Premises (the "Improvement Allowance").
In addition to application to the Costs of the Tenant Work, Tenant may use the
Improvement Allowance for moving costs, furniture, telecommunications cabling or
other fixed equipment or fixtures for the Premises provided that Tenant provides
Landlord with such documentation of such costs as Landlord shall reasonably
request. Landlord shall fund the Improvement Allowance in installments, not more
frequently than monthly, based on applications for payment submitted by Tenant
for contractors requesting progress payments, together with such architects'
certificates, current lien releases and affidavits of payments by Tenant's
general contractor and subcontractors contemplated therein, and such other
documentation as Landlord may reasonably require; each such installment shall be
subject to a retainage of 10% of the total amount of such installment. Subject
to the condition that Landlord not be required to issue payments more frequently
than monthly, Landlord shall make all required payments within thirty (30) days
after Tenant's submittals containing all of the documentation required herein.
The final payment (including the payment of all of the retainage) shall be
conditioned upon Tenant's having submitted all invoices, lien waivers,
affidavits of payment, as-built drawings and care and maintenance manuals,
architects' completion certificate that the Tenant Work has been completed in
accordance with this Exhibit B and all applicable Laws, a certificate of
occupancy issued by the City of Chicago and such other evidence as Landlord may reasonably
require that the cost of the Tenant Work has been paid for and that no
mechanic's, materialmen's or other such liens have been or may be filed against
the Property or the Premises arising out of the design or performance of the
Tenant Work. Landlord shall issue checks to fund the Improvement Allowance
directly to Tenant's general contractor or, at Tenant's option, Tenant's
construction manager.
Up to ten
percent (10%) of the Improvement Allowance may be applied by Tenant as a credit against Monthly
Base Rent.
-2-
In
addition to the Improvement Allowance, Landlord shall reimburse Tenant for
one-half (1/2) of the cost of the demolition of the following items: the ceiling
grid, ceiling tiles and light fixtures. Tenant shall competitively bid the
demolition work described in the preceding sentence and shall submit no fewer
than three (3) detailed bids to Landlord. Tenant shall accept one of the three
bids so submitted to Landlord, subject to Landlord's approval, which approval
shall not be unreasonably withheld, conditioned or delayed.
Tenant
shall not be required to pay any fee to Landlord in connection with review by
Landlord or its consultants of Tenant's plans or for review and/or supervision
of the construction of Tenant's Work.
3. Space Plan and
Specifications.
(a) Tenant
shall submit, no later than September 5, 1997, a demolition plan for Landlord's
approval and, subject to Landlord's approval of said plan, expects to begin
demolition of the Premises on September 20, 1997 and to complete such demolition
by October 31, 1997 (except in space on the 13th floor then occupied by existing
tenants, which space may not be available until the Delivery Date). Leveling of
the floors within the Premises by Landlord shall take approximately thirty (30)
days after completion of demolition by Tenant. No later than October 15, 1997,
Tenant shall submit four (4) sets of a "Space Plan" (as described in Section 15)
to Landlord for approval.
(b) Landlord
shall, within fifteen (15) days after receipt thereof, either approve said Space
Plan, or disapprove the same advising Tenant of the reasons for such
disapproval. In the event Landlord disapproves said Space Plan, Tenant shall
modify the same, taking into account the reasons given by Landlord for said
disapproval, and shall submit four (4) sets of the revised Space Plan to
Landlord for approval.
(c) Tenant
shall take all steps necessary to provide that a final Space Plan, a reflected
ceiling plan and partition plan in Autocad Release 14, shall have been approved
by both Landlord and Tenant no later than December 5, 1997.
4. Working Drawings and Engineering
Drawings.
(a) Promptly
after receipt of Landlord's approval of the Space Plan and in no
event later than December 5, 1997, Tenant shall submit to Landlord for approval
four (4) sets of "Working Drawings" (as defined in Section 15), and any required
engineering drawings (the "Engineering Drawings") from Tenant's mechanical,
structural, plumbing, air-conditioning, ventilation and heating and electrical
engineers indicating any special heating, cooling, ventilation, electrical, load
or other special or unusual requirements of Tenant, including, without
limitation, the following: (1) any structural load exceeding 100 pounds per
square
-3-
foot; (2)
any electrical load in excess of five (5) xxxxx per square foot; and (3)
Tenant's anticipated condenser water usage. It is specifically understood and
agreed that the Tenant Work shall not include the mechanical attachment to the
curtain wall of partitions or any other item.
(b) Landlord
shall, within fifteen (15) days after receipt thereof, either approve the
Working Drawings and Engineering Drawings, or disapprove the same advising
Tenant of the reasons for disapproval. If Landlord disapproves of the Working
Drawings or Engineering Drawings, Tenant shall modify and submit revised Working
Drawings, and a revised Engineering Drawings, taking into account the reasons
given by Landlord for disapproval. In the event that the final Working Drawings
and Engineering Drawings as approved by both parties require changes to be made
in the previously approved reflected ceiling plan and/or partition plan, then
such changes shall be deemed to be Change Orders under Section 7 of this Exhibit
B and shall be a Tenant Delay if such changes delay Tenant's timely surrender of
possession of the Existing Premises or delay timely completion of the Landlord
Work.
(c) Landlord
reserves the right, to be exercised at the time that Landlord gives its final
approval of the Working Drawings, to designate certain portions of Tenant's Work
which must be removed (and the Premises repaired or, at Landlord's option,
restored to their condition on the Delivery Date) upon expiration or earlier
termination of the Lease. This designation shall include items such as computers
floors, new stairwells and staircases, specialty plumbing, supplemental cooling
units, bracing of floors, any structural alterations, vaults, safes or any other
non-standard office improvements, but shall not include white noise systems,
voice/data risers, cabling (except as otherwise provided in Section 19 of the
Rider), wall coverings, floor coverings and lights. Landlord shall be deemed to
have required the removal of any portion of Tenant's Work containing materials
which, as of the Termination Date, are Hazardous Materials requiring remediation
under applicable Laws, as provided in Section 12.1.
5. Landlord's Approval. Landlord
shall not unreasonably withhold or delay approval of any Space Plans, Working
Drawings, or Engineering Drawings submitted hereunder if they are compatible
with the Property's shell and core construction, and if no significant
modifications will be required for the Property electrical, heating,
air-conditioning, ventilation, plumbing, fire protection, life safety, or other
systems or equipment (provided that any such modifications, whether significant
or not, shall be at Tenant's expense), and will not require any structural
modifications to the Property, whether required by heavy loads or
otherwise.
6. Space Planners, Architects,
Engineers, and Contractors. The Space Plan, Working Drawings, Engineering
Drawings and the Tenant Work shall be prepared and performed by such space
planners, architects, engineers and contractors as shall be selected
by
-4-
Tenant
and approved by Landlord (which approval shall not be unreasonably withheld or
delayed), who will work in harmony with each other and Landlord and its
contractors so as to ensure proper maintenance of good labor relationships, and
in compliance with all applicable labor agreements existing between trade unions
and the relevant chapter of the Association of General Contractors of America.
Tenant shall have the right to replace any or all of the foregoing selections,
subject to Landlord's right to approve any replacement as set forth
above.
7. Change Orders. No changes,
modifications, alterations or additions to the approved Space Plan or Working
Drawings ("Change Order") may be made without the prior written consent of the
Landlord after written request therefor by Tenant; provided, however, that with
respect to Change Orders for purely cosmetic changes (i.e., changes which do not
affect the mechanical, plumbing, structural, electrical, HVAC, life safety or
any other systems of the Building), Landlord shall receive reasonable prior
notice and copies of such Change Orders but Landlord's consent to same shall not
be required. Landlord shall not unreasonably withhold its consent to any Change
Order if such Change Order is reasonable, practicable and generally consistent
with the Plans theretofore approved by Landlord. In the event that the Premises
are not constructed in accordance with said approved Space Plan and Working
Drawings, then Landlord shall have the right, after thirty (30) days prior
written notice to Tenant, to take such steps (at Tenant's expense) as are
necessary to modify the Tenant Work so that the Premises reasonably comply in
all respects with said approved Space Plan and Working Drawings; in such case,
Base Rent and Rent Adjustment Deposits shall nevertheless commence to accrue and
be payable as otherwise provided in the Lease.
8. Compliance. The Tenant Work
shall comply in all respects with the following: (a) all Laws including, without
limitation, the Building Code of the City of Chicago and all other Federal,
State, County, City or other laws, codes, ordinances and regulations, as each
may apply according to the rulings of the controlling public official, agent or
other such person; (b) applicable standards of the National Board of Fire
Underwriters and National Electrical Code, and (c) building material
manufacturer's specifications. Tenant shall notify Landlord immediately if
Tenant receives any notice of violation of any Law in connection with completion
of any Tenant Work and shall immediately take such steps as are necessary to
remedy such violation.
9. Guarantees. Each contractor,
subcontractor and supplier participating in the Tenant Work shall guarantee that
the portion thereof for which he is responsible shall be free from any defects
in workmanship and materials for a period of not less than one (1) year from the
date of completion thereof. Every such contractor, subcontractor, and supplier
shall be responsible for the replacement or repair, without additional charge,
of all work done or furnished in accordance with its contract which shall become
defective within one (1) year after completion thereof. The correction of such
work shall include, without additional charge, all additional expenses and
damages in connection with such removal or replacement of all or any part of the
Tenant Work, and/or the Property and/or Common Areas, or work which may be
damaged or disturbed thereby. All such warranties or guarantees as to materials
or workmanship of or with respect to the Tenant Work shall be contained in the
contract or subcontract which shall be written
-5-
such that
said warranties or guarantees shall inure to the benefit of both Landlord and
Tenant, as their respective interests may appear, and can be directly enforced
by either. Tenant covenants to give Landlord any assignment or other assurances
necessary to effect such right of direct enforcement. Copies of all contracts
and subcontracts shall be furnished to Landlord promptly after the same are
entered.
Landlord's
approval of Tenant's Space Plan and Working or Engineering Drawings, its
inspections of the Tenant Work or its recommendations or approvals concerning
contractors, subcontractors, space planners, engineers or architects shall not
be deemed to be a warranty as to the quality or adequacy of the Tenant Work, or
the design thereof, or of its compliance with Laws.
10. Performance.
(a) The
Tenant Work shall be commenced after Landlord approves the Working Drawings, and
shall thereafter be diligently prosecuted to completion, subject to delays for
reasons beyond Tenant's control (except financial matters). All Tenant Work
shall conform with the Working Drawings approved by Landlord in writing.
Landlord shall have the right to inspect the Premises from time to time during
the conduct of the Tenant Work for compliance with the Working Drawings and to
monitor the quality of the Tenant Work. The Tenant Work shall be coordinated
with the Landlord's Work being done or to be performed for or by other tenants
in the Property so that the Tenant Work will not interfere with or delay the
completion of any other construction work in the Property.
(b) The
Tenant Work shall be performed in compliance with all applicable Laws and
otherwise in a safe, first class and workmanlike manner in conformity with the
approved Space Plan and Working Drawings, and shall be in good and usable
condition at the date of completion.
(c) All
required permits shall be submitted to Landlord prior to commencement of the
Tenant Work.
(d) Each
contractor and subcontractor shall be required to obtain prior written approval
from Landlord (which approval shall not be unreasonably withheld, conditioned or
delayed) for any space outside the Premises within the Property, which such
contractor or subcontractor desires to use for storage, handling, and moving of
his materials and equipment, as well as for the location of any facilities for
his personnel.
(e) The
contractors and subcontractors shall be required to remove from the Premises and
dispose of, at least once a week and more frequently as Landlord may reasonably
direct, all debris and rubbish caused by or resulting from the construction.
During performance of the Tenant Work Tenant shall be
-6-
provided,
at no expense to Tenant, with space reasonable close to the Building's service
elevator for placement of the Tenant's contractor's dumpsters for waste
disposal. Upon completion of the Tenant Work, the contractors and subcontractors
shall remove all surplus materials, debris, rubbish and job boxes of whatever
kind remaining within the Property which has been brought in or created by the
contractors and subcontractors in the performance of the Tenant Work. If any
contractor or subcontractor shall neglect, refuse or fail to remove any such
debris, rubbish, surplus material or temporary structures within two (2)
business days after notice to Tenant from Landlord with respect thereto,
Landlord may cause the same to be removed by contract or otherwise as Landlord
may determine expedient, and charge the cost thereof to Tenant as additional
rent under the Lease.
(f) Tenant
shall obtain and furnish Landlord all approvals with respect to electrical,
water and telephone work as may be required by the respective company supplying
the service. Tenant shall obtain utility service, including meter (if not
already existing), from the utility company supplying service, unless Landlord
elects to supply service and/or meters. The costs of all such utilities shall be
paid by Tenant.
(g) Intentionally
omitted.
(h) Landlord's
acceptance of the Tenant Work as being complete in accordance with the approved
Space Plan and Working Drawings shall be subject to Landlord's inspection and
written approval. Tenant shall give Landlord five (5) days prior written
notification of the anticipated completion date of the Tenant Work.
(i) If
contemplated or permitted under the statutes of the State of Illinois, within
ten (10) days after completion of construction of the Tenant Work, Tenant shall
execute and file a Notice of Completion with respect thereto and furnish a copy
thereof to Landlord upon recordation, failing which, Landlord may itself execute
and file the same on behalf of Tenant as Tenant's agent for such
purpose.
(j) Tenant
shall, at its cost and expense construct, purchase, install and perform any and
all items of the Tenant Work and employ its personnel so as to obtain any
governmentally required certificate of occupancy, including, without limitation,
a certificate of occupancy issued by the City of Chicago.
(k) If
an expansion joint occurs within the Premises, Tenant shall install finish floor
covering to or covering such joint in a workmanlike manner, and Landlord shall
not accept responsibility for any finish floor covering applied to or installed
over the expansion joint.
-7-
(l) Copies
of architectural, mechanical, electrical and plumbing "as built" drawings shall
be provided to Landlord no later than thirty (30) days after completion of the
Tenant Work.
(m) Intentionally
omitted
(n) Tenant
shall conduct its labor relations and relations with employees so as to avoid
strikes, picketing, and boycotts of, on or about the Premises or Property. If
any employees strike, or if picket lines or boycotts or other visible activities
objectionable to Landlord are established, conducted or carried out against
Tenant, its employees, agents, contractors, subcontractors or suppliers, in or
about the Premises or Property, Tenant shall immediately close the Premises and
remove or cause to be removed all such employees, agents, contractors,
subcontractors and suppliers until the dispute has been settled. Landlord shall,
during the performance of Tenant's Work, use reasonable efforts to conduct its
labor relations such that there is no interference with the conduct of Tenant's
Work.
(o) Landlord
shall not be responsible for any disturbance or deficiency created in the air
conditioning or other mechanical, electrical or structural facilities within the
Property or Premises as a result of the Tenant Work. If such disturbances or
deficiencies result, Tenant shall correct the same and restore the services to
Landlord's reasonable satisfaction, within a reasonable time.
(p) If
performance of the Tenant Work shall require that additional services or
facilities (including without limitation, extra or after-hours elevator usage or
cleaning services) be provided, Tenant shall pay Landlord's reasonable charges
therefor.
(q) Tenant's
contractors shall comply with the rules of the Property and Landlord's
requirements respecting the hours of availability of elevators and manner of
handling materials, equipment and debris as set forth in Attachment 3 which is attached
hereto. Tenant must coordinate its after-hours use of the freight elevator and
truck dock with usage of the same by the cleaning crew of the Building.
Demolition, trash-hauling and major materials deliveries must be performed
before 7:00 a.m. or after 6:00 p.m. on weekdays or on weekends. Delivery of
materials, equipment and removal of debris must be arranged to avoid any
inconvenience or annoyance to other occupants. The Tenant Work and all cleaning
in the Premises must be controlled to prevent dirt, dust or other matter from
infiltrating into adjacent tenant or mechanical areas.
(r) Any
Tenant Work in Common Areas on occupied floors or the premises of other tenants
shall be performed before 7:00 a.m. or after 6:00 on weekdays or on weekends,
but not between 8:00 a.m. and 1.00 p.m. on Saturdays.
-8-
(s) Landlord
may impose reasonable additional requirements from time to time in order to
ensure that the Tenant Work, and the construction thereof does not disturb or
interfere with any other tenants of the Property, or their visitors, contractors
or agents, nor interfere with the efficient, safe and secure operation of the
Property, nor damage the Building, including, without limitation, the Common
Areas, freight elevators or loading docks.
11. Insurance. All contractors and
sub-contractors shall carry Worker's Compensation Insurance covering all of
their respective employees in the statutory amounts, Employer's Liability
Insurance in the amount of at least $500,000 per occurrence, comprehensive
general liability insurance of at least $5,000,000 combined single limit for
bodily injury, death, or property damage (except that for any contract or
subcontract in the amount of $1,000,000 or more; such comprehensive public
liability policy shall be at least $10,000,000 combined single limit) and any
comprehensive automobile liability insurance covering the use of their
respective owned, non-owned or hired automobiles and other vehicles with limits
of not less than $1,000,000 combined single limit; and the policies therefor
shall cover Landlord and its designees and Tenant, as additional insureds, as
well as the contractor or subcontractor. Tenant shall carry builder's risk
insurance coverage respecting the construction and improvements to be made by
Tenant, in the amount of the anticipated cost of construction of the Tenant Work
(or any guaranteed maximum price). All insurance carriers hereunder shall be
rated at least A and X in Best's Insurance Guide. Certificates for all such
insurance shall be delivered to Landlord before the construction is commenced or
the contractor's equipment is moved onto the Property. All insurance provided by
Tenant's contractors and subcontractors shall be primary and any insurance
maintained by Landlord shall be excess and non-contributory. All policies of
insurance must require that the carrier give Landlord thirty (30) days' advance
written notice of any cancellation or reduction in the amounts of insurance. In
the event that during the course of the Tenant Work any damage shall occur to
the construction and improvements being made by Tenant, then Tenant shall repair
the same at Tenant's cost.
12. Signage. See Section 3 of the
Rider.
13. Intentionally
omitted.
14. Indemnity. Tenant shall
indemnify, defend and hold harmless each of the Indemnitees from and against any
claims, demands, losses, damages, injuries, liabilities, expenses, judgments,
liens, encumbrances, orders, and awards, together with attorneys' fees and
litigation expenses arising out of or in connection with the Tenant Work, or
Tenant's failure to comply with the provisions hereof, or any failure by
Tenant's contractors, subcontractors or their respective employees to comply
with the provisions hereof, except to the extent caused by the intentional or
negligent acts of Landlord or its agents, employees or contractors.
15. Certain
Definitions.
-9-
(a) "Space
Plan" herein means a floor plan, drawn to scale, showing: (i) demising walls,
corridor doors, interior partition walls and interior doors, including any
special walls, glass partitions or special corridor doors, (ii) any restrooms,
kitchens, computer rooms, file rooms and other special purpose rooms, and any
sinks or other plumbing facilities, or other special facilities or equipment,
and (iii) any other details or features required to reasonably delineate the
Tenant Work to be performed.
(b) "Working
Drawings" herein means fully dimensioned architectural construction drawings and
specifications, and any required Engineering Drawings, and shall include any
applicable items described above for the Space Plan, and if applicable: (i)
electrical outlet locations, circuits and anticipated usage therefor; (ii)
reflected ceiling plan, including lighting, switching, and any special ceiling
specifications; (iii) mechanical drawings for all heating, ventilating and
air-conditioning equipment; (iv) details of all millwork; (v) dimensions of all
equipment and cabinets to be built in; (vi) furniture plan showing details of
space occupancy; (vii) hardware (including keying) schedule; (viii) lighting
arrangement; (ix) location of print machines, equipment in lunch rooms,
concentrated file and library loadings and any other equipment or systems (with
brand names wherever possible) which require special consideration relative to
air-conditioning, ventilation, electrical, plumbing, structural, fire
protection, life-fire-safety system, or mechanical systems; (x) special heating,
ventilating and air conditioning equipment and requirements; (xi) weight and
location of heavy equipment, and anticipated loads for special usage rooms;
(xii) demolition plan; (xiii) partition construction plan; (xiv) type and color
of floor and wall-coverings, wall paint and any other finishes; (xv) plumbing drawings; (xvi)
door schedules; (xvii) structural plans (if applicable); (xviii) riser diagrams;
(ix) voice/data communication plans; and (xx) any other details or
features required to completely delineate the Tenant Work to be
performed.
16. Taxes. Tenant shall pay prior
to delinquency all taxes, charges or other governmental impositions (including
without limitation, personal property taxes, sales tax or value added tax)
assessed against or levied upon Tenant's fixtures, furnishings, equipment and
personal property located in the Premises and the Work to the Premises under
this Agreement, but excluding any taxes of which Tenant pays its Tenant's Share
under Article 4 of the Lease. Whenever possible, Tenant shall cause all such
items to be assessed and billed separately from the property of Landlord. In the
event any such items shall be assessed and billed with the property of Landlord,
Tenant shall pay its share of such taxes, charges or other governmental
impositions to Landlord within thirty (30) days after Landlord delivers a
statement and a copy of the assessment or other documentation showing the amount
of such impositions applicable to Tenant.
17. INCORPORATED INTO LEASE; DEFAULT. THE
PARTIES AGREE THAT THE PROVISIONS OF THIS WORKLETTER AGREEMENT
ARE
-10-
HEREBY INCORPORATED BY THIS REFERENCE
INTO THE LEASE FULLY AS THOUGH SET FORTH THEREIN. In the event of any
express inconsistencies between the Lease and this Workletter Agreement, the
latter shall govern and control. If Tenant shall default under this Workletter
Agreement and such default creates or threatens to create a safety or health
risk to persons within the Building (including the Premises) or a risk of damage
to Landlord's property (including the Building) or the property of other
tenants, then Landlord may order that all Work being performed in the Premises
be stopped immediately, and that no further deliveries to the Premises be made,
until such default is cured, without limitation as to Landlord's other remedies,
including, without limitation, Landlord's right to cure such default and be
reimbursed for the reasonable cost of such cure by Tenant. Any amounts payable
by Tenant to Landlord hereunder shall be paid as additional rent under
the Lease. Any default by the other party hereunder shall constitute a default
under the Lease and shall be subject to the remedies and other provisions
applicable thereto under the Lease. If Tenant shall default under the Lease or
this Workletter Agreement and fail to cure the same within the time permitted
for cure under the Lease, and the Lease is terminated as a result of such
Default, then all amounts paid or incurred by Landlord towards the Improvement
Allowance shall become immediately due and payable as additional Rent under
the Lease.
-11-
ATTACHMENT
1
TO
WORKLETTER AGREEMENT
1. Landlord
will provide electrical capacity of five (5) xxxxx per rentable
square foot for lights and outlets ("Tenant Electric"). The risers that supply
the electrical power and the meters to determine consumption for each floor or
partial floor will be provided as part of the Base Building Work. In the event
Tenant requires additional electrical capacity in the future, Landlord will
provide riser capacity, if then available, to provide for up to a total of three
(3) additional
xxxxx per rentable square foot (for a total of eight (8) xxxxx per rentable
square foot; 2 xxxxx per rentable square foot for lighting and 6 xxxxx
per rentable square foot for convenience outlets and business equipment). This
additional capacity may require an additional transformer. Tenant shall be
responsible for costs, if any, associated with the transformer, conduit and
conductors and other related expenses to add capacity with or without a new
transformer. Furthermore, if additional wattage is added, any requirement for
additional cooling shall be at Tenant's expense.
2. Landlord
shall be responsible for modifications to meet ADA requirements as mandated
outside of Tenant's Premises, as well as the existing Building core washrooms
within the Premises. Except as provided in the prior sentence, Tenant shall be
responsible for ADA compliance within the
Premises including the elevator lobbies and corridors on each full floor and any
and all private washrooms within the Premises (other than the existing Building
core washrooms). Landlord shall provide at its cost the Building infrastructure
necessary to support Tenant's ADA life-safety systems
including the fire annunciators panels for audio-visual strobe
systems.
3. The
Base Building Work shall include building standard blinds (in good repair) for
all exterior windows.
4. Wall-mounted
fire extinguishers will be provided as required by fire codes in the mechanical
and electrical rooms located in the core areas of the Premises.
5. Completed
standpipe connections and fire alarm communication speakers will be provided in
the elevator lobbies and Building stairwells.
6. The
Building core doors shall be as currently exists in the Premises.
7
.. The
base Building currently provides for telephone service cables from the network
point of presence distribution system to the telephone communications closet on
each floor of the Premises. Telephone riser capacity to each of Tenant's floors
shall be delivered "as is" as part of Base Building Work. The Landlord shall
provide, in a location to be designated by Landlord, the equivalent of two (2)
four (4) inch sleeves for Tenant's telecommunication needs for current and
future requirements. For inter-floor wiring, Tenant should use satellite closets
within the Premises, which is required for access and security purposes, not the
Building riser closet.
-1-
8. The
floor leveling standard shall be 1/2" over 10' non-cumulative. The Landlord
shall provide a survey or comparable documentation of compliance prior to
December 31, 1997, subject to Tenant's completion of demolition (except for the
13th floor) no later than October 31, 1997.
9. Landlord
shall provide for the installation of sprinklers in all Tenant's Initial
Premises and such installation shall include fully recessed sprinkler heads
within Tenant's Initial Premises distributed at the ratio of 1 per 200 rentable
square feet. This work shall be coordinated with Tenant's interior improvements.
Any costs incurred by Landlord for sprinklers (including installation) in excess
of the preceding ratio shall be paid by Tenant.
10. Any
HVAC "rebalancing" that Landlord elects to complete in connection with this
Lease shall be completed and coordinated with the other Base Building and Tenant
Work. However, such HVAC "rebalancing" will not result in there being less VAV
boxes on Tenant's floors than currently exist. Landlord shall provide an average
of one (1) cubic foot per minute ("CFM") of air per square foot of the
Premises.
Tenant
may reserve the right to have the Landlord demolish the existing stair within
the Premises with the Landlord's Work, including the restoration and
reconstruction of the floor slab. Such right must be exercised, if at all, by
written notice to Landlord no later than December 31, 1997.
-2-
Revised
July 25, 1997
ATTACHMENT
2
Building
Standard Items
000 Xxxx
Xxxxxx Xxxxx
1.
|
Schlage
latchset - D10S, Athens style, 612
finish.
|
2.
|
Schlage
lockset - D53PD, Athens style, 612 finish with cylinder keyed to building
master key system.
|
3.
|
Xxxxxxx
hinges -F179 4-1/2" x 4-1/2" primed painted. (Used on Building Standard
interior doors.)
|
4.
|
Xxxxxxx
hinges -FBBI79 4-1/2" x 4-1/2". (Used on 3'-6" x 8'-6 1/2"
doors.)
|
5.
|
LCN
closer - 4010 x AL paint. (Used on secondary doors. Optional on interior
doors.)
|
6.
|
Quality
floor stop - 431ES x US10.
|
7.
|
Building
standard hollow metal door - 3'-0" x 8'-6
1/2".
|
8.
|
Building
standard hollow metal frame - 3'-0" x 8'-7
1/2".
|
9.
|
Building
standard secondary hollow metal door - 3'-6" x 8'-6
1/2".
|
10.
|
Building
standard secondary hollow metal frame - 3'-6" x 8'-7
1/2".
|
11.
|
24"
x 48" lay-in recessed fixture flush with ceiling tile 120V in-line fused,
3 tube with GE F32 T8/SP35 or equal with electronic ballast, 18 cell
parabolic diffuser. Fixture must be City of Chicago air plenum approved
and equipped with return air slots.
|
12.
|
24"
x 48" lay-in emergency fixture, same as Item #11, with two (2) 6" long
lead wires from ballast compartment EM fixture appropriately "tagged,"
fused once.
|
13.
|
Acoustical
Ceiling - Xxxxxxxxx Second Look - 2 x 4 exposed grid ceiling system using
Chicago Metallic Corp. #750 Series lo-gloss grid and Xxxxxxxxx 2 x 4 x
3/4" Class A Second Look lay-in board, item
#2765-C.
|
14.
|
Vinyl
tile - 12" x 12" x 1/8" thick composition. Vinyl tile, Xxxxxxxxx Imperial
Excelon.
|
15.
|
Vinyl
base - 2-1/2" or 4" high straight or cove. Xxxxx/VPI rubber base #93
black, brown, or black/xxxxx.
|
16.
|
Drywall
-
|
Demising
Partition: 2-1/2" metal studs (25 ga.) at 24" on center erected to
underside of slab with 2 layers of UL approved 5/8" gypsum board on both
sides. Bottom layer is to extend within 12" of slab and second layer is to
extend 6" above acoustical ceiling. 2" fiberglass batt insulation between
studs.
|
|
Corridor
Partition: 2-1/2" metal studs (25 ga.) at 24" on center erected to
underside of slab with 2 layers of UL approved 5/8" gypsum board on both
sides. Bottom layer extends to underside of slab and second layer extends
to 3" above ceiling. 2" fiberglass batt insulation between
studs.
|
|
Interior
Partition: 2-1/2" metal studs (25 ga.) at 24" on center erected to
underside of slab. One layer of UL approved 5/8" gypsum board on both
sides erected approximately 3" above
ceiling.
|
17.
|
Building
standard paint: Any light tone pastel color from Xxxxxxx'x Color Chart is
considered "Building Standard."
|
|
·
|
One
prime coat and two coats of flat latex paint on all
partitions.
|
|
·
|
From
the second floor up (multi-tenant floors) the corridor doors are enamel
and the elevator doors are electrostatic enamel paint both are Xxxxxxxx
Xxxxx #979.
|
|
·
|
The
plaza elevator doors are bronze.
|
|
·
|
The
revolving doors are painted PPG Duranar UC
50900.
|
|
·
|
The
concourse sign band, retail entrances and the Swissôtel and Columbus doors
are XXX Xxxxx 000 Xxxxxxxx XX
00000.
|
|
·
|
The
freight elevator vestibules are Xxxxxxxx Xxxxx #856, upper portion and
Xxxxxxxx Xxxxx #979, lower portion.
|
|
·
|
The
janitor closets are Xxxxxxxx Xxxxx #856, upper portion and Xxxxxxxx Xxxxx
#979, lower portion.
|
18.
|
Window
Coverings - Levelor dark bronze horizontal venetian blinds on all building
perimeter windows.
|
19.
|
Carpeting
- Designweave Eastfair/Haddon Hall loop pile or Windswept cut
pile.
|
20.
|
VAV
boxes - E.T.I. (Environmental Technology, Inc.) model SDR with Xxxxxxx
Controls Metasys operator and Metastat thermostat. (Note: Floor
has to be wired for this system.)
|
21.
|
Exit
signs - Alcko Edge Glow RPL - 110E - GLR-AP,
120v.
|
22.
|
Sprinklers
should be installed per local/state/federal code and be fully recessed.
Tenant shall provide reflected ceiling and partition plans in autocad
format.
|
"CONTRACTOR
REGULATIONS AND GUIDELINES
FOR
TENANT IMPROVEMENT"
ATTACHMENT
3
|
|
(consisting
of 10
|
|
pages)
|
1.
|
Xxxxxxx & Wakefield State
Street, Inc., (C&W) will be involved in the Tenant Improvement
("T.I.") process from "kick off" to "move in", including plan review,
pre-testing, testing, pre-qualification of contractors and the
coordination of building systems tie-in. C&W will coordinate
the use of the loading dock and freight
elevators.
|
The
Contractor's superintendent is encouraged to make use of C&W experience with the
building systems. C&W will make itself
available for consultation during the entire process. They will attend all
meetings with the contractors, subcontractors or space planners that involve
building systems or major changes of scope and as such, expect to be informed of
all meetings.
Plans and
specifications must be approved by C&W prior to commencement
of any work. Contractor is responsible for checking with C&W on the approval of
the plans and specifications.
A "kick
off" meeting will be scheduled by C&W prior to start of
construction with tenant representative(s), designer representatives(s),
contractor(s) and C&W, both Management and
Construction Offices, to discuss guidelines. procedure, schedule, quality
control and other items that will make the job run smoother for all
parties.
All
coordination of C&W
services (i.e., use of loading deck, freight elevator, deliveries, after hours
access. etc.) will be done by
the General Contractor only, not individual subcontractors.
2.
|
After
hours access will be provided based upon the subcontractor list provided
to the building management. Any deviation will require written
explanation. After hours
Access Request Forms (Attachment 1) may be obtained from C&W during normal
business hours and submitted to C&W office no later
than 3:00 p.m., Monday through
Friday.
|
3.
|
The
Building is equipped with one freight elevator to serve all floors. All
T.I. Contractors and Contractor personnel must use only the freight
elevator for transportation of men, materials, and equipment. No
Contractor/Subcontractor personnel or equipment are permitted within the
finished passenger cabs. These are reserved for occupants of the Building
and their guests. If any Contractor or Subcontractor personnel are found
in the passenger cabs, the elevators will be immediately inspected for
damage and all damages, whether a result of said use or not, shall be
corrected by C&W at Contractor's
expense.
|
4.
|
Loading
dock hours are Monday through Friday 8:00 a.m. to 4:00 p.m. unless
otherwise specified by lease, anything before or after that is considered
overtime and will be billable as such. Billable rates based upon local
union contracts, in-place at this time and are available from the Office
of the Building upon request. A Freight Elevator Request Form
(Attachment 2) must be submitted to C&W. During the
business day, reservations may be made in two hour increments on a first
come first served basis. Reservations made for Saturday and Sunday or
"after hours" that result in a "no show", will be billed
a
|
|
four
hour minimum unless canceled in writing 24 hours previous to the
commencement time.
|
5.
|
All
Contractors and all personnel shall enter and exit through the loading
dock at all times. Building Security personnel have the right to inspect
all tool boxes of Contractors or Subcontractors upon departure from the
building.
|
6.
|
When
working on a tenant occupied floor, all deliveries are to be accepted,
moved and delivered to the contracted suite by 8:00 a.m. When accepting
deliveries, masonite must be installed to protect wall and floor finishes.
It is the Contractors' responsibility to keep public areas clean at all
times.
|
7.
|
All material
deliveries shall be made at the loading/service dock. All deliveries
consisting of bulk material must be made between the hours of 5:00 p.m.
and 8:00 a.m., and must be scheduled with C&W. If deliveries
are to be made at other times, approval must be obtained from C&W office. At no
time will material be transported through the building lobby or public
areas unless specifically authorized in
writing.
|
|
Should
the use of the freight elevator by the Contractor/Subcontractor delay the
removal of rubbish from tenant occupied spaces at night, the
Contractor/Tenant will bear the extra cost incurred for
overtime.
|
8.
|
All
construction waste and debris shall be removed via the freight elevator to
the loading dock. No construction waste or debris may be placed in the
building Dumpster/compactor. The Contractor will provide for removal of
waste and debris from the building at its own expense. If a Dumpster is
required (space allowing), the location shall be authorized by C&W. A Dumpster Identification Card
Form (Attachment 3) should list the company which will be handling
the Contractor's Dumpster/hauling. This form must be completed and
submitted to C&W prior to
placement of a Dumpster.
|
9.
|
Should
the Contractor require access to another tenant's occupied space within
the building, please notify C&W in writing at
least 48 hours in advance with the After Hours Access Request
Form (Attachment 1). The request should include the list of
subcontractors who will be accessing the space, whether or not they will
require ceiling access, the areas that will be worked on and the length of
time needed to complete or perform work in the space. No drilling,
hammering, loud noises or use of materials causing offensive odors will be
allowed during the business day, from 8:30 a.m. to 6:00
p.m.
|
10.
|
All
corrective work or work performed in occupied spaces at any time must be
immediately cleaned up by the workmen prior to leaving the job or at the
end of the business day if the project is on-going. The Contractor shall
be responsible for all costs incurred by C&W if this
clean-up work is not performed
satisfactorily.
|
11.
|
Air
conditioning to the space will not be provided until branch ducting and
VAV boxes have been installed.
|
12.
|
Contractors
are required to erect and maintain dust barriers and proper dust covers on
the floors at exit areas of construction. These are required on floors
which are occupied by other tenants. Contractor is responsible for taking
extra precaution to safeguard
the
|
|
floors,
walls and/or elevators from damage which may be caused by the movement of
materials or debris.
|
13.
|
Below
is the procedure of draining and filling fire sprinkler systems on floors
under construction. All draining is to be complete by 7:00 a.m. and filled
by 2:30 p.m.
|
|
a)
|
Prior
to start of any work, Subcontractor personnel should contact the
Building Engineer through C&W
office.
|
|
b)
|
The
sub-contractor must provide to the Office of the Building the name,
company name, date, time of drain and area(s) to be worked
on.
|
|
c)
|
Building
engineers will drain the system for the sub-contractor to complete the
necessary work. It should be noted that no more than two (2) floors
stacked are to be drained at one
time.
|
|
d)
|
Upon
completion of work, Subcontractor shall check system for leaks and verify
with Building Engineering that no leaks are
visible.
|
|
e)
|
Building
engineers will then open the standpipe. Reassemble tamper switches in
proper sequence.
|
|
f)
|
Subcontractor
personnel will notify Engineering of job completion. At this time,
Engineering will acknowledge, restore and reset the fire alarm
system.
|
At no
time shall a floor be permitted to be dry after working hours. All work
performed on fire sprinklers and/or fire standpipes should be scheduled with the
Building Chief Engineer at least 24 hours in advance. Contractor must comply
with the conditions of the Building Engineer's approval of shutting down,
filling and/or opening up of a fire sprinkler and/or fire standpipe
system.
14.
|
Contractor
shall keep the space clean at all times. All construction debris shall be
removed through the service elevator or stairs on a daily basis and shall
not be allowed to accumulate. In the event that the Contractor fails or
refuses to keep the demised premises free of accumulated waste, C&W reserves the
right to enter said premises and remove the debris at the Contractor's
expense. In addition, all public areas, i.e., corridors, restrooms,
janitor's closets, etc. shall be maintained and kept free of construction
debris, dust, etc.
|
15.
|
Removal
of combustible objects such as cardboard, empty paint cans, paint rags and
other combustible materials should occur on a daily basis; such objects
should be disposed of in an approved receptacle and in a legal
manner.
|
16.
|
The
storage of all flammable liquids (paint, lacquer thinners, paint thinners,
etc.) shall be in UL approved fire rated (for flammable liquids) storage
cabinets or the liquids are to be removed from the property daily. If such
materials will be stored in the proper storage cabinets, C&W should be
notified of their existence, location and quantity. At the end of the
project, all remaining paint is to be removed from the property and
disposed of legally.
|
17.
|
No
gasoline operated devices, i.e., concrete saws, coring machines, welding
machines, etc. shall be permitted within the building premises. All work
requiring such devices shall be performed by means of electrically
operated substitutes.
|
18.
|
All
approved gas and oxygen canisters shall be properly chained and supported
to eliminate all potential hazards. At the completion of use, said
containers shall be promptly removed from the
building.
|
19.
|
All
electrical rooms on construction floors are to be kept clean and orderly
at all times and must be locked at the end of each work day. These rooms
cannot be used as storage for tools or supplies. At the end of each day
all garbage and wire remnants are to be removed and a clear pathway
maintained to all panels. Initial access to electrical & telephone
equipment rooms can be arranged through C&W. Tenant
equipment may not be installed in electrical or telephone rooms. All panel
covers are to be replaced and properly labeled upon completion. All
penetrations through floors, walls and ceilings should be properly fire
safed, upon completion.
|
20.
|
Upon
completion and termination of all
electrical circuits and before energizing, notify Building Chief Engineer
so that a neutral to ground bonding test can be
performed.
|
21.
|
Specific
restrooms will be designated for Contractor use. Anyone found using
restrooms other than specified, or anyone using the janitorial closets
will be subject to dismissal. No one is permitted to use the janitorial
closets without C&W permission.
Janitors' slop sinks cannot be used for disposal of flammable, hazardous
waste or drywall taping compound. Contractor is responsible for
maintenance while using designated restrooms. Upon completion of
each tenant improvement, the Contractor will be responsible for restoring
the facility to its original
state.
|
22.
|
Any
use of telephone room chase way must have prior approval from the General
Manager.
|
23.
|
During
the construction, stairwells or fire doors leading to stairwells may not be blocked with
trash. Fire doors may not be propped or blocked open in any fashion or in
any way. Stairwells may not be used for the storage of any materials and
they are to be kept clear at all times. During construction, air
conditioning smoke dampers may not be propped
open.
|
24.
|
All
smoke detectors on the base building system are to be protected during
construction, demolition, sweeping or other clean up operations that may
cause considerable dust or smoke. At the end of each work day, after the
dust has settled, each smoke detector that had been protected during the
day are to be uncovered to ensure proper
operation.
|
25.
|
All
contractors are to take adequate precautions to prevent the accidental
tripping of the fire alarm system. All management costs connected with
resetting false alarms initiated by the Contractor or its Subcontractors
will be charged to the Contractor's
account.
|
At
completion of every work day, fire, life, safety system shall be left trouble
and alarm free. Contractor to notify Building Engineering of said status before
leaving job site.
26.
|
Contractors
are required to keep at least four currently certified 10 pound ABC fire
extinguishers on each floor during construction. They are to be placed
inside the controlled area and all workers are to be informed as to their
location and proper use. Construction workers should be informed by their
supervisors on means of egress from the floor in case of an emergency,
location of fire pull stations and locations of wet stand
pipes.
|
27.
|
All
"J" boxes and fire/life safety conduit that are installed during tenant
build-out, must be marked with red spray paint. All fire/life safety
wiring must be kept strictly within the color code. There is a color code
and chart for every floor located inside the panel in the electrical room
on each floor. This chart should not be removed. Failure to adhere to the
color code may result in costly time consuming rewiring. Only building
authorized life safety contractors will be allowed to pull wire, install
and connect life safety devices (i.e., speakers, pull stations and smoke
detectors).
|
28.
|
Prior
to core drilling, the Contractor will submit a "scaled drawing" for
approval by the Building's structural engineer, upon approval of such
drawing the Contractor will inform C&W of the
locations of the core drill for the review and approval of the Chief
Engineer. All core drills are to be located from the underside to prevent
damage to any of the exposed fire/life safety conduit on the underside of
the decking. If cores are to be wet-drilled, slurry run-off shall be
contained and must not be allowed to reach tenant areas below the
construction. Any slurry that does migrate to the floor below shall be
cleaned by the construction company in charge of the build-out above.
Coring hours will be 6:00 p.m. to 2:00
a.m.
|
29.
|
If
applicable, upon completion of all
tie-ins to heating hot water and/or condenser water loops,
Contractor is to back flush with clean domestic water for two hours prior
to introducing the system into the base building
riser.
|
30.
|
Any
damage sustained during T.I. to electrical rooms, telephone rooms, storage
closets, janitor closets, restrooms, or freight lobbies is the
responsibility of the Contractor or tenant. A list of exceptions (punch
list) to these areas should be submitted to the Management Office and the
T.I. department prior to commencement and should be acknowledged by those
offices.
|
31.
|
All
keying schedules and/or lock cylinders must be provided to Engineering
three weeks prior to move-in. The Contractor, the Engineering Department
and Management Office will have keys to the construction cylinders for
access.
|
32.
|
On
partially occupied floors, painting and varnishing are to be done after
hours when air conditioning is non-operational and dampers are closed.
Please notify C&W at least 24
hours prior to commencing painting. Any spray painting with solvent based
paints must be pre- approved by the City Code and C&W. Painting of
elevator doors is to be supervised by the Elevator Maintenance Company
(appropriate to the building). Please notify C&W at least 24
hours in advance.
|
33.
|
No
Contractor shall be allowed to start any work in the building without a
current Certificate of Insurance on file with C&W. Contractor
must keep current insurance certificates on all subcontractors. Any
Contractor/Subcontractor performing work found to be without current
insurance will be immediately ordered off the premises.
Contractor,
|
|
in
subcontractors' certificates of insurance, shall list the additional
insureds as stated in the Client Information
Package.
|
34.
|
The
Contractor/Subcontractor shall obtain at its expense, all permits and
licenses necessary to perform the work and shall comply with all laws,
ordinances, State and Federal government regulations, and with any Board
or Commission or other duly qualified body
regulations.
|
35.
|
C&W reserves the
right to inspect work, stop work and/or have a worker removed from the job
at any time during the project.
|
36.
|
The
Contractor will be required to furnish the C&W with a list of
subcontractors prior to commencement of the job. This list will include
phone numbers and contacts for each Contractor/Subcontractor, including
home and emergency telephone
numbers.
|
37.
|
No
graffiti or vandalism will be tolerated. Any individual caught in the act
shall be immediately removed from the premises and will not be allowed to
return. In addition, all repairs will be at the Contractor's
expense.
|
38.
|
No
tobacco smoking or chewing will be permitted in occupied or public areas.
Smoking is allowed only in designated areas approved by C&W.
|
39.
|
No
radios or other non functional sound producing equipment will be permitted
on any floor (unless required by Code or C&W).
|
40.
|
Respect
must be shown to the building tenants at all times. Rude and obscene
behavior, including foul and abusive language, will not be tolerated.
Offenders will be asked to remove themselves from the premises and shall
not be permitted to return.
|
41.
|
Wet
paint sign must be posted in all public areas when
appropriate.
|
42.
|
The
building shall provide electrical service consisting of 110V/220V outlets
with 15A/20A capacity. Any power requirements in excess of that listed per
the Lease Agreement shall be the responsibility of the
Contractor/Subcontractor.
|
43.
|
Contractor
shall provide temporary electrical devices within the demised premises for
its subcontractors use. Contractor will not be permitted to run extension
cords through public space on occupied floors or through occupied tenant
spaces.
|
44.
|
The
Contractor shall use reasonable measures to minimize energy consumption in
the construction area when possible. The building shall pay for normal
electrical consumption during the construction process. All lights and
equipment must be extinguished at the end of the Contractor's business
day. In the event that the Contractor continues to leave lights and
equipment on during off hours, C&W reserves the
right to receive just compensation for excessive electrical
consumption.
|
45.
|
Contractor/Subcontractor
shall inaugurate and maintain an accident prevention program and an
employee safety training program. All employees on the job, regardless of
whose direct payroll they are on, are required to respond to safety
instructions from the Contractor's supervisor. Persons who do not respond
shall be removed from the job.
|
46.
|
The
Contractor should cover air transfers when working next to an occupied
space to control the transmission of dust and dirt. Covering must be
removed at the completion of daily construction. Keep all tenant entrance
and exit doors closed to restrict the movement of dust or dirt. Close off
temporary openings with polyurethane. Due to local fire codes, no openings
may be made on a tenanted floor to the corridor unless the door remains
closed except when materials are being delivered. Pre-filters should be
installed over all return air openings until finished floors are
installed. Verify with Building Engineer prior to installation of
pre-filters.
|
"ATTACHMENT
1"
XXXXXXX
& XXXXXXXXX STATE STREET, INC.
THREE
ILLINOIS CENTER
AFTER
HOURS ACCESS REQUEST
DATE OF
REQUEST FOR ACCESS: _________
APPROXIMATE
TIME OF ARRIVAL:
________ AM/PM
(CIRCLE ONE)
CLIENT:
_______________________________________________
FLOOR(S):
_____________________________________ SUITE NO:
________
NAME OF
GUEST (LIST ALL):
FREIGHT
ELEVATOR: YES / NO / ACCESS
ONLY (CIRCLE ONE)
IF YES,
PROVIDE SEPARATE FRT. ELEV. REQUEST
SPECIAL
INSTRUCTIONS:
REQUESTED
BY: ___________________________________________________
NAME
& TITLE, and PLEASE PRINT
SIGNATURE:
_______________________________________________________
PLEASE
BRING THIS COMPLETED FORM TO THE OFFICE OF THE BUILDING PRIOR TO 3
PM
__________________________________________________________________________________
THIS
SECTION TO BE COMPLETED BY THE OFFICE OF THE BUILDING:
CONFIRMED
BY: _________________________________
ACCESS: YES
/
NO COPY
TO ENGINEERING: YES / NO
Distribution:
Security Console - Dock - File - Client
"ATTACHMENT
2"
Xxxxxxx
& Wakefield State Street, Inc.
THREE
ILLINOIS CENTER
FREIGHT
ELEVATOR REQUEST
Today's
Date: ____________
Name of
Client: ______________________________________
Scheduled
Day/Date: __________________________________
Schedule
Time: _______________________ To: _______________________
Floor for
delivery/pickup: _____________________
Delivery/Moving
Vendor: _____________________
Insurance
Certificate of Vendor received by Management: Yes / No (circle one)
Name of
Authorized Person making the Request: ________________________
Telephone
Number: _______________________
Comments
or Special Instructions:
________________________________________________________________________
(For
Management use only)
Time
Received:
__________
Approved By: ______________________________
Freight
Elevator Operator/Starter:
________________ Car
No: _________________
Job
Completed: Yes /
No FEO
_______________ VENDOR
_______________
(signature of
Operator)
(signature of Xxxxxxx)
Comments:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Distribution:
Security Console - Dock - Client - Operator - File
"ATTACHMENT
3"
Xxxxxxx
& Wakefield State Street, Inc.
THREE
ILLINOIS CENTER
DUMPSTER
I.D.
To be
used by Client or Contractor wishes to have a Dumpster delivered at the
Dock.
Name of
Client/Contractor: ___________________________
Job/Floor:
_________________________________________ Client
Alterations:
Contact
Name:
_______________________ Contact
Phone No: _________________
Number of
Days Project is expected to last: _________________________________
Date
container will arrive at Loading Dock:
_________________________________
Size of
Container: _____________________
Special
Instructions:
*All
Dumpster are to be delivered after 5:00 P.M. and removed before 6:00 a.m.,
unless other arrangements have been made with the Management:
______________________________________________________________________________
(For use
by Management only)
Date
received:
_________________
Approved By: _______________________
Special
arrangements if
any: ______________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Distribution:
Security Console - Dock - Client - Operator - Engineer - File
EXHIBIT C
SYSTEMS
SPECIFICATIONS
Air-conditioning
which shall, within tolerances normal in first-class buildings, be capable of
maintaining inside space conditions of 78°F dry bulb and 50% relative humidity
when outside conditions are 95°F dry bulb and 75°F wet bulb. Heating shall,
within tolerances normal in first-class office buildings, be capable of
maintaining inside space conditions of 72°F dry bulb when outside conditions are
-5°F dry bulb. The foregoing is based upon occupancy density of not more than
one (1) person for each one hundred fifty (150) square feet of floor area within
the Premises and a maximum electric lighting and office machine load of 5.0
xxxxx per useable square foot connected load. Landlord shall provide an average
of one (1) cubic foot per minute ("CFM") of air per square foot of the
Premises.
EXHIBIT
D
RULES
AND REGULATIONS
1. No
sign, lettering, picture, notice or advertisement shall be placed on any outside
window or in a position to be visible from outside the Premises and if visible
from the outside or public corridors within the Building shall be installed in
such manner and be of such character and style as Landlord shall approve in
writing, which approval Landlord shall not unreasonably withhold, condition or
delay.
2. Tenant
shall not use the name of the Building for any purpose other than Tenant's
business address; Tenant shall not use the name of the Building for Tenant's
business address after Tenant vacates the Premises; nor shall Tenant use any
picture or likeness of the Building in any circulars, notices, advertisements or
correspondence. The preceding sentences shall not apply for so long as the
Building is named after Tenant, as set forth in Section 16 of the Rider to the
Lease.
3. No
article which is explosive or inherently dangerous is allowed in the Building,
except for substances (including, without limitation, cleaning fluids and copy
machine toners) customarily used in offices.
4. Tenant
shall not represent itself as being associated with any company or corporation
by which the Building may be known or named. The preceding sentence shall not
apply for so long as the Building is named after Tenant, as set forth in Section
16 of the Rider to the Lease.
5. Sidewalks,
entrances, passages, courts, corridors, halls, elevators and stairways in and
about the Premises shall not be obstructed.
6. No
animals (except for dogs in the company of a blind person), pets, bicycles or
other vehicles shall be brought or permitted to be in the Building or the
Premises.
7. Room-to-room
canvasses to solicit business from other tenants of the Building are not
permitted; Tenant shall not advertise the business, profession or activities of
Tenant conducted in the Building in any manner which violates any code of ethics
by any recognized association or organization pertaining to such business,
profession or activities.
8. Tenant
shall not waste electricity, water or air-conditioning and shall cooperate fully
with Landlord to assure the most effective and efficient operation of the
Building's heating and air-conditioning systems.
9. No
locks or similar devices shall be attached to any door except by Landlord and
Landlord shall have the right to retain a key to all such locks. Tenant may not
install any locks without Landlord's prior approval except for any areas
designated by Tenant as secure areas ("Secure Areas"). In the event that Tenant
does not provide Landlord with copies of keys to
any
Secure Area, Tenant waives all claims, against Landlord arising out of or
resulting from Tenant's choice not to provide Landlord with a key to such Secure
Area.
10. Tenant
assumes full responsibility of protecting the Premises from theft, robbery and
pilferage; the Indemnitees shall not be liable for damage thereto or theft or
misappropriation thereof. Except during Tenant's normal business hours, Tenant
shall keep all doors to the Premises locked and other means of entry to the
Premises closed and secured. All corridor doors shall remain closed at all
times. If Tenant desires telegraphic, telephones, burglar alarms or other
electronic mechanical devices, the Landlord will, upon request direct where and
how connections and all wiring for such services shall be installed and no
boring, cutting or installing of wires or cables is permitted without Landlord's
approval, which approval shall not be unreasonably withheld, conditioned or
delayed.
11. Except
with the prior approval of Landlord (which approval shall not be unreasonably
withheld, conditioned or delayed), all cleaning, repairing, janitorial,
decorating, painting or other services and work in and about the Premises shall
be done only by authorized Building personnel.
12. The
weight, size and location of safes, furniture, equipment, machines and other
large or bulky articles shall be subject to Landlord's approval and shall be
brought to the Building and into and out of the Premises at such times and in
such manner as the Landlord shall direct and at Tenant's sole risk and cost.
Prior to Tenant's removal of any of such articles from the Building, Tenant
shall obtain written authorization of the Office of the Building and shall
present such authorization to a designated employee of Landlord.
13. Tenant
shall not overload the safe capacity of the electrical wiring of the Building
and the Premises or exceed the capacity of the feeders to the Building or
risers.
14. To
the extent permitted by law, Tenant shall not cause or permit picketing or other
activity which would interfere with the business of Landlord or any other tenant
or occupant of the Building, or distribution of written materials involving its
employees in or about the Building, except in those locations and subject to
time and other limitations as to which Landlord may give prior written
consent.
15. Tenant
shall not xxxx, otherwise prepare or sell any food or beverages in or from the
Premises or use the Premises for housing accommodations or lodging or sleeping
purposes except that Tenant may install and maintain vending machines,
coffee/beverage stations and food warming equipment and eating and cooking
facilities for the benefit of its employees or guests, provided the same are
maintained in compliance with applicable laws and regulations and do not disturb
other tenants in the Building with odor, refuse or pests.
16. Tenant
shall not permit the use of any apparatus for sound production or transmission
in such manner that the sound so transmitted or produced shall be audible
or
-2-
vibrations
therefrom shall be detectable beyond the Premises; nor permit objectionable
odors or vapors to emanate from the Premises.
17. No
floor covering shall be affixed to any floor in the Premises by means of glue or
other adhesive without Landlord's prior written consent, which consent shall not
be unreasonably withheld, conditioned or delayed.
18. Tenant
shall at all time maintain the window blinds in the lowered position, though
Tenant may keep the louvers open.
19. Tenant
shall only use the freight elevator for mail carts, dollies and other similar
devices for delivering material between floors that Tenant may
occupy.
20. No
smoking, eating, drinking, loitering or laying is permitted in the Common Area
except in designated areas.
21. Landlord
may require that all persons who enter or leave the Building identify themselves
to security guards, by registration or otherwise. Landlord, however, shall have
no responsibility or liability for any theft, robbery or other crime in the
Building. Tenant shall assume full responsibility for protecting the Premises,
including keeping all doors to the Premises locked after the close of
business.
22. Tenant
shall conform to all safety, fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency and shall
cooperate and participate in all reasonable security and safety programs
affecting the Building.
-3-
EXHIBIT
E
THREE
ILLINOIS CLEANING SPECIFICATIONS
I. CLEANING SPECIFICATIONS -
NIGHT
A. CLIENT
SUITES
GENERAL
NOTE: The Contractor is
responsible for damage to client space including any broken desks, plants,
venetian blinds, etc.
1. NIGHTLY
a. Carpeted
floors: All
carpeted floors will be vacuumed nightly using a high quality vacuum, moving all
light furniture such as chairs and stands. All furniture will be replaced to its
original position. Vacuum under all desks and large furniture where possible.
Spot clean, as required. Beater bar vacuum should be used when
necessary
b. Uncarpeted
floors: All
hard-surfaced floors will be dust-mopped nightly, using a treated dust mop,
moving all light furniture. All furniture will be replaced to its original
position. Dust-mop under all desks and large furniture where possible.
Spot-clean where necessary to remove spills and smudges and buff as
necessary.
c. Dusting
and cleaning: Wipe all furniture tops,
legs, rungs and sides; wipe and disinfect telephones; move lamps, ashtrays, and
other accessories (i.e. paper clips holder, rolodex, etc.) as necessary. Wipe
all horizontal surfaces with reach, including window ledges, baseboards, ledges,
molding an xxxxx on glass and partitions. No feather dusters will be allowed.
Papers or other personal items (i.e. pictures, keys, wallets, etc.) left on desk
tops should not be removed.
d. Furniture
and Accessories: Dust, wipe clean and
remove finger marks if necessary, from all furniture, file cabinets, mapboards,
and telephones using treated cloth.
e. Doors and
Walls: All
doors, jambs, walls and window mullions will be spot-cleaned to remove streaks,
smudges, finger marks, spills and stains, paying particular attention to walls
around switch plates and door jambs and doors around knobs and opening
edges.
f. Trash
Removal: Collect and remove
wastepaper, waste material and cardboard boxes (which Contractor will flatten) to
designated area in or adjacent to the premises. Separate all wastepaper from
other waste material and bag separately. Waste and/or rubbish bags shall be
furnished by Contractor,
if requested by Manager,
and shall be adequate to hold contents without breaking. Manager shall have the right
to approve trash removal containers and janitorial carts. Cardboard boxes should
be placed in compactor, wood and metal should be placed in open dumpster. Contractor will participate in
building recycling program, where applicable.
g. Miscellaneous: Sweep private stairways,
wash as necessary, vacuum carpeted stairways, dust handrails, balustrades and
stringers and necessary.
Dust and
clean all chair rails, paneling, trim, door and other architectural louvers,
lattices and ornamental work, grilles, pictures, vinyl or fabric of chairs and,
settees, ventilating louvers, charts and baseboards. Clean all directory board
glass and display glass. Wash as needed and directed by Manager.
Remove
all finger marks, smudges, gum or foreign matter from glass desk tops, glass
table tops, glass entrances, private entrances to offices and elevator doors.
Additionally, remove all marks and smudges from metal partitions and mail chutes
(if any).
Clean
glass entrance doors nightly.
Scour,
wash clean all water fountains and coolers, emptying waste water as
needed.
Mop up,
wash or spot remove all coffee stain spills, foot tracks and smears throughout.
Remove all ink stains as necessary.
Dust and
wash all closet and coatroom shelving, coat racks and flooring.
Wipe
clean and polish all brass, stainless steel, metal and other bright work, using
a non-acid polish.
Upon
completion of all nightly chores, all lights shall be turned off, windows
closed, doors locked and offices left in a neat and orderly
condition.
-2-
Once
entering a suite, the door is to be locked. Propping the doors open is not
allowed.
|
2.
|
WEEKLY
|
a. Carpeted
Floors: All carpeted floors will be edged with an edging tool, paying
particular attention to comers, behind doors, and around furniture legs and
bases. Baseboards will be washed with a mild soap, rinsed with clean water and
wiped dry.
|
3.
|
MONTHLY
|
a. Uncarpeted
Floors: All hard surfaced floors will be buffed with an electric rotary
buffing machine as necessary, per manufacturer's specifications, but no less
than once a month. All finish marks and/or residual cleaning fluids will be
removed from baseboards, doors and frames.
b. High
Dusting: Perform all high dusting throughout on a monthly basis unless
otherwise specified, including the following:
Vacuum
and dust all pictures, frames, charts, graphs and similar wall hangings not
reached in nightly cleaning. Damp dust as required.
Dust all
overhead pipes, sprinklers, ventilating and air conditioning louvers and
adjacent ceiling areas, ducts and other equipment items not reached in nightly
cleaning.
Vacuum
and dust all vertical surfaces such as walls partitions, doors, bucks and
ventilating louvers, grills, high moldings and other surfaces not reached in
nightly cleaning.
Dust all
venetian blinds and window frames.
Dust
exterior of lighting fixtures.
Wash all
furniture glass
Upholstered
furniture will be vacuumed to remove crumbs and dust.
Vacuum
and dust ceiling tiles as required.
-3-
Wipe
clean and polish all aluminum, chrome, stainless steel, brass and other metal
work, including trim and hardware, using a non-acid polish or other solution as
directed by Manager.
|
4.
|
BI-MONTHLY
|
a. Hard-surfaced
Floors: All
hard-surfaced floors will be completely stripped, removing all finish. After the
floors have been mopped, rinsed and dried, they will be refinished and machine
polished to a uniformly bright, clean appearance, using manufacturer's
recommended specifications. All wax spills and splashes will be removed from
baseboards, doors, jambs, molding and walls.
b. Wastebaskets: As requested by Manager or Client, thoroughly wash
waste-baskets inside and out, dry, and return to their original
location.
GENERAL NOTES: A non-staining
floor finish that provides a high-degree of slip prevention shall be used on all
floor maintenance work.
Contractor shall provide all
required carpet maintenance for such installations throughout all areas of the
building.
Complete
floor maintenance shall be provided prior to the move-in of all new clients and
a unit price shall be submitted for this work.
Provide
Manager and keep on
file, on site, all safety data sheets on all materials used.
|
5.
|
ANNUALLY
|
a. All
building standard light fixtures will be removed, cleaned and
replaced.
b. All
window blinds will be removed, cleaned and replaced
B. RESTROOMS
|
1.
|
General
|
-4-
It is the
intention of this specification to keep lavatories thoroughly clean and not to
mask odors. If disinfectants are necessary, an odorless disinfectant shall be
used. Remove all wastepaper and refuse, including sanitary napkins, to a
designated area in the building and dispose of same. All wastepaper and sanitary
napkins receptacles are to be thoroughly cleaned and washed, and new liners
installed; liners to be installed so as to ensure maximum usage of receptacles.
Fill toilet tissue holders, seat cover containers, soap dispensers, towel
dispensers, and sanitary napkin dispensers. All supplies (i.e. toilet paper,
hand towels, toilet seat covers and plastic trash receptacle liners) to be
furnished by Manager.
The filling of such dispensers to be in such quantity s to last the
entire business day. Whenever possible, do not overfill and do not stock supplies
on shelves, vanity tops or other visible areas. Immediately report all necessary
repairs/replacements to the Manager including lights nor
functioning properly. The sanitary dispenser machines will be maintained by
Contractor. The products for the sanitary dispensers shall be purchased by the
Contractor. Revenues
collected by the Contractor
on a regular basis shall be deemed the revenue of the Contractor.
All tasks
detailed above are to be done on a nightly basis.
|
2.
|
Nightly
Cleaning
|
a. Walls and
Metal Partitions: Damp wipe all metal
toilet partitions and tiled walls, removing graffiti with care
taken not to damage surfaces. All surfaces are to be wiped dry so that all wipe
marks are removed and surface has a uniformly bright appearance. Dust the top
edges of all partitions, ledges and mirror tops.
b. Floors
and Tile: Floors will be swept
clean and wet-mopped with a germicidal detergent approved by Manager using spray tank
method. The floors will then be mopped dry and all watermarks and stains wiped
from wall and metal partition bases, paying particular attention to comers.
Scuff marks and footmarks are to be removed throughout.
c. Metal
Fixtures: Wash and polish all
mirrors, powder shelves, bright work (including flushometers and exposed piping
below wash basins and behind toilet fixtures), towel dispensers, receptacles and
any other metal accessories. Contractor shall use only
non-abrasive, non-acidic material to avoid damage to metal
fixtures.
d. Ceramic
Fixtures: Scour, wash and
disinfect all basins, including faucet handles, bowls, urinals and tile walls
near urinals with
-5-
approved
germicidal detergent solution. Special care must be taken to inspect and clean
areas of difficult access, such as the underside of the lip/rim of toilet bowls
and urinals, to prevent buildup of calcium and iron oxide deposits. Wash both
sides of all toilet seats with approved germicidal solution and wipe dry. Toilet
seats are to be left in an upright position.
e. Powder
Rooms: If
applicable, should be thoroughly cleaned and floors should be washed and waxed
or vacuumed with spot removal, if applicable.
|
3.
|
Weekly
|
a. Floors: All
floors will be machine scrubbed, using a germicidal solution, detergent and
water. After scrubbing, floors will be rinsed with clean water and dried. All
water marks will be removed from walls, partitions, and fixtures. An approved
floor finish will be applied and buffed as needed.
b. Floor Drains: Clean, disinfect, and
fill with water
to avoid the escape of sewer gasses. No acids are permitted.
|
4.
|
Monthly
|
a. Walls and
Metal Partitions and Washable Ceiling: Wash with water and
germicidal solution. Wipe dry and polish to a uniformly bright, clean
condition.
b. High
Dusting and Cleaning: Perform all high
dusting, inclusive of grilles and diffusers, vacuum and wash all ceilings and
louvers, including washable acoustical tile.
The above
shall be performed more frequently, if directed by Manager.
|
5.
|
Quarterly
|
a. Light
Fixtures and Ceiling Grills: Specially trained
employees will remove light lenses and ceiling grills. Wash thoroughly, dry and
replace. This will be done as often as necessary, but not less often than
quarterly. A proposed cleaning schedule providing for the cleaning in 25% of the
building will be submitted with contractor's proposal for the proper care and
maintenance of these fixtures. Such schedule will be subject to approval by
Manager.
-6-
C. ELEVATORS/ESCALATORS (Below and Above Grades,
including Freights)
|
1.
|
Nightly
|
a. Floors: All elevator carpets
will be vacuumed and spot-cleaned nightly, using particular care to clean in
comers and along edges. Soluble spots will be removed using a procedure without
risk or injury to color or fabric. Uncarpeted floors will be swept and
damp-mopped.
b. Saddles: All saddles and door
tracks will be wiped clean, removing all dirt and stains. All dirt and debris is
to be removed from door tracks using brush, vacuum and/or edging tool. Saddles
and tracks will be left in a uniformly bright, clean condition.
x. Xxxxx and
Metalwork: All marks, streaks,
smudges, gum and other sticky substances will be removed from walls, doors
(interior and exterior), panels, granite, facing, grout, (removal of marks from
grout must be accomplished without compromising the integrity of the grout),
handrails and jambs and will be wiped down and polished to a uniformly clean and
bright appearance. In a like manner, ceiling panels and above ceiling areas will
be maintained in a uniformly clear and bright appearance. Any damage (such as
scratches, graffiti or broker floor-call buttons) is to be reported to Manager. In addition, any lights
not functioning properly are to be reported to Manager, noting elevator
numbers.
d. Escalators: All metal work on
escalators will be wiped cleaned and polished and left in a uniformly clean and
bright condition.
|
2.
|
WEEKLY
|
a. Floors: Shampoo carpets in
elevator cabs, including spare carpets if made available, following
manufacturer's specifications. Uncarpeted floors are to be machine scrubbed and
sealed, as necessary.
D. MAIN LOBBY AND
CONCOURSE
|
1.
|
Nightly
|
a. Carpeted
Areas: Any
carpeted areas, including carpet behind consoles, will be vacuumed nightly.
Vacuuming shall include nightly edging along baseboards, movement of cigarette
urns and small furniture. All
-7-
furniture
and fixtures are to be replaced to their original position when vacuuming is
finished. Carpet will be spot-cleaned where necessary each night.
b. Uncarpeted
Areas: Hard-surfaced floors are
to be dust- mopped, using a treated mop to remove all loose dirt and grit, and
then wet-mopped with clean water and dried. All mop marks and water splashes
will be removed from walls, baseboards, carpeting and furniture, and all
furniture and fixtures replaced to their original position when mopping is
completed. Lobby planters are to be moved to allow for cleaning of floor, then
put back in the same location, where possible.
x. Xxxxx and
Doors: All
walls (including granite), doors, and jambs will be cleaned to remove all dust,
finger marks, smudges and spills (inclusive of stairway and utility doors).
Special attention to all areas around call buttons.
NOTE: Care must be taken
around and/or near all artwork and displays.
d. Lobby
Glass: All
glass windows, doors, and jambs will be cleaned to remove all finger marks,
smudges and spills, and will be left in a uniformly bright, clean
condition.
e. Miscellaneous
Metalwork: All metalwork, such as
mail chutes and boxes, door hardware and frames, metal lettering, mullions and
xxxxx, door knobs and kick plates, etc. will be wiped clean and polished and
left in a bright condition, free of all dust and streaks.
f. Elevator
Doors, Panels, Granite and Saddles (Tracks): Elevator doors (interior
and exterior) will be wiped down and polished (top to bottom) and lift in a
bright condition, free of all dust and streaks. Elevator saddles will be wiped
clean and all dirt and debris removed from door tracks, using a vacuum service
tool. Spills and smudges will be removed so that the saddles and tracks are left
in a bright, clean condition. Any and all scratches or marks should be reported
to the supervisor for report to Manager. Special care should be
taken when cleaning elevator control panels. Do not use water on control
panels.
g Cigarette
Urns: Clean
all cigarette urns, removing all butts and debris nightly using a sifting or
screen tool. Refill with sand when necessary; sand to be no more than 1" from
top. All material to be furnished by Contractor.
-8-
h. Dusting:
All horizontal surfaces, including furniture tops and areas within reach which
includes the security station (console) and seating areas, are to be dusted
nightly using treated dust cloths. No feather dusters are to be
used.
i. Miscellaneous
Displays: Clean all miscellaneous
displays, except artwork (including sign holders, stanchions and newspaper trays
nightly) and other displays as directed.
j. Louvers: Dust all door louvers
and other ventilating louvers within reach.
k. Baseboards: Dust and clean all
baseboards, electric fixtures and any other fixtures or fittings within
reach.
l.
Escalators: All escalator rails and
glass are to be thoroughly cleaned. All escalator metal is to be cleansed and
polished.
m.
Mats:
Sweep, vacuum, spot clean and scrub as required all mats and
runners.
|
2.
|
Weekly
|
a. Carpeted
Areas: Carpeted floors are to
be vacuumed using a
pile lifter to remove all embedded dirt and grit. The operation will
include the same edging and detailing required for nightly
vacuuming.
b. Uncarpeted
Areas: All
hard-surfaced floors will be machine buffed following specified (Section D,
paragraph 1 b) nightly procedures, using an electric rotary buffing machine to
obtain maximum shine.
|
3.
|
Monthly
|
a. Carpeted
Areas: All
carpeted floors will be shampooed to remove any spots, stains or other spills,
and be left in a uniformly clean condition. Any spots not removable by normal
shampooing will be reported by the supervisor to Manager.
b. Uncarpeted
Areas: All
hard-surfaced floors are to be completely machine scrubbed. After scrubbing, the
floor will be re-sealed as needed. On completion of resealing, all water and
other marks will be removed
-9-
from
walls, baseboards, doors, furniture mullions and adjacent carpeted areas. Lobby
and concourse planters shall be moved in all possible cases and replaced.
Special care should be given to ensure that planters or column bases are not
damaged in the scrubbing process. Any repairs shall be made by Contractor at Contractor's sole cost and
expense.
c. Air
Diffusers: All diffusers shall be
cleaned using a treated dust cloth.
|
4.
|
Semi-Annual
|
a. Walls:
All walls, doors and frames will be thoroughly cleaned, using methods reviewed
and accepted by Manager, leaving no streaks,
smudges, dust, or stains. Walls, doors and frames shall have a uniformly bright
and clean appearance when completed. All nicks and scratches requiring more than
routine touch-up will be reported by the supervisor to the Manager for repair.
The Office of the Building shall be notified one week in advance of the
semi-annual cleaning in order to schedule the removal and safekeeping of lobby
art work and any other displays.
b. Lights:
Clean high lights, globes, fixtures and all other items not reached in nightly,
weekly or quarterly cleaning.
NOTE: It is the intent of this
Agreement and Contractor
agrees to keep lobbies, concourse areas and entrance ways properly
maintained and clean and presentable at all times, commensurate with first-class
office buildings.
|
E.
|
PUBLIC
AREAS (Hallways, All
Elevators Lobbies Which Include Passenger, Garage and
Freights).
|
|
1.
|
Nightly
|
a. Carpeted
Areas: All
carpeted floors are to be vacuumed and edged with a small broom or edging tool,
moving any and all furniture and accessories. Carpet will be spot-cleaned where
necessary, using a method without risk of injury to color or
fabric.
b. Uncarpeted
Areas: All
hard-surfaced floors are to be mopped with a treated dust mop and buffed, as
needed, to maintain a uniformly bright appearance, with particular attention to
edges, comers, and behind doors. All spills and stains will be removed with a
damp mop or cloth. Baseboards, frames (molding) and granite will be wiped down
with a treated dust cloth.
-10-
x. Xxxxx: All walls will be
spot-cleaned to remove all smudges, stains, and hand marks, using only clean
water or a mild cleansing agent, where necessary. When soap or cleaner is used,
the wall will be rinsed with clean water and dried. No abrasive materials or
solutions are to be used.
d. Door and
Jambs: All
doors and jambs will be spot-cleaned to remove any hand marks, stains, spills or
smudges. Use only clean water or a mild cleansing agent where necessary, and
rinse with clean water and dry. When completed, doors and jambs shall have
uniformly clean appearance.
e. Glass
Doors and Partitions: All glass doors and
partitions, including any directory glass, will be spot-cleaned to remove any
finger marks, smudges, or stains and will be left in a uniformly bright, clean
condition.
f. Miscellaneous
Metalwork: All metalwork, such as
mail chutes, door hardware and frames, metal lettering, and other metal
accessories will be wiped clean and polished using a non-acid polish and left in
a uniformly clean and bright condition, free of all dust and
streaks.
g. Elevator
Doors and Saddles: Elevator doors, panels
(granite or metal) and frames will be completely wiped down and polished,
removing all dust, marks and stains, and left in a uniformly clean and bright
condition.
h. Cigarette
Urns: Clean
all cigarette urns, removing all butts and debris utilizing a sifter screen and
fill to within 1" of top with clean sand as needed. Material to be provided by
Contractor.
i. Dusting: Dusting all accessories,
ledges and all other horizontal surfaces, using a treated dust cloth. No feather
dusters are to be used. All surfaces to be left in a clean, dust-free condition.
Spot-clean as necessary.
j. Furniture
and Miscellaneous: All furniture is to be
wiped, using treated dust cloth, paying particular attention to legs and
surfaces near the floor. Vinyl or leather surfaces are to be dusted and
spot-cleaned where necessary, fabric is to vacuumed as necessary.
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2.
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Weekly
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a. Carpeted
Areas: All
carpeted floors will be vacuumed, using a pile lifter to remove all embedded
dirt and grit and restore pile to a uniformly upright condition.
-11-
b. Uncarpeted
Areas: All
hard-surfaced floors will be wet-mopped. All residual wax and mop or scrubber
marks will be removed from baseboards. Floors, chrome frames, granite walls and
baseboards to be left in a uniformly bright, clean condition.
c. Baseboards will be cleaned with
mild soap and water, rinsed with clean water and wiped dry after vacuuming of
the carpets in complete.
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3.
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Monthly
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a. Carpeted
Areas: All
carpeted areas will be shampooed removing all stains. Any damage (i.e., xxxxx,
rips, etc.) will be reported to supervisor for report to Manager.
b. Uncarpeted
Areas: All
hard-surfaced floors are to be stripped of all wax or other coating, cleaned and
dried, removing any and all marks or stains. Floors will then be refinished and
polished and left in a uniformly bright, clean condition. All finish spills and
splashes will be completely removed from baseboards, walls doors, granite and
frames.
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4.
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Periodic
Cleaning and General Items
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a. Utility
Areas: All
telephone closets, utility closets and building storage areas shall be cleaned
as directed by Manager, but not less than
weekly.
b. Vacant
Spaces: Clean and sweep all
vacant areas as needed or directed by Manager, but not less than
weekly.
c. Overhead
Pipes: Dust
all visible overhead pipes, sprinklers and equipment items not reached in
nightly cleaning, as directed by Manager, but not less than
monthly.
d. High
Dusting: All
high dusting beyond the reach of the normal day-to-day dusting will be
accomplished monthly. This will include, but not be limited to, all ledges,
charts, picture frames, graphs, air diffusers, and other horizontal surfaces as
well as all vertical surfaces such as walls and partitions.
e. Doors and
Jambs: All
painted floors and jambs will be washed down with clean water, using a mild
cleansing agent where necessary, rinsed
-12-
with
clean water and dried, leaving no streaks, marks, or smudges. Chips or scratches
will be reported to supervisor for report to Manager.
f. Air
Diffusers: All air diffusers will
be thoroughly washed and dried and left in a clean condition as often as necessary,
but not less often
than once a month.
F. JANITORS'
STORAGE CLOSETS
All
janitors' storage closets, restrooms, lunchrooms, and work/break areas (service
areas) provided by the building for use of Contractor personnel will be
kept in a neat, clean, sanitary and orderly condition at all times. The
restrooms will be maintained in the same condition as the public restrooms as
specified in Section B. Before leaving the premises each night, all of the
service areas will be dust-mopped, and spot-cleaned, where necessary, and
dusted. Tile floors will be stripped and waxed, as necessary, but not less
often than every sixty days. Concrete floors will be sealed (where necessary),
dust- mopped nightly, and wet-mopped monthly. All doors and walls will be
spot-cleaned nightly.
G. STAIRWELLS
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1.
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Weekly
|
a. Cleaning: All doors, jambs and
xxxxx will be checked daily and, where needed, dusted (wiped down) and
spot-cleaned to remove all finger marks, smudges and stains. Stairs and landings
will be swept and spot-cleaned to remove all spills, stains and
letter.
b. Dusting: Handrails, baseboards,
light fixtures, and all horizontal ledges and surfaces will be wiped with a
treated dust cloth.
c. Fire
Equipment: All fire equipment,
inclusive of extinguishers, hose cabinets or covers and communication devices,
shall be dusted.
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2.
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Quarterly
|
a. High
Dusting: All
high dusting, including but not limited to door closures/smoke dampers and all
other surfaces not reached during normal dusting operations, will be dusted or
cleaned, as necessary, but not less
than every three months.
-13-
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3.
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Semi-Annually
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a. Stairs
and Landings: All stairs and landings
will be wet-mopped and dried. A schedule for this project shall be submitted in
advance for approval.
H. CONSTRUCTION/PRE-OCCUPANCY (To be considered an
extra to contract cost.)
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1.
|
Client
Areas
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Prior to
client occupancy of new or remodeled space, Contractor shall, if requested
by client, render a thorough initial cleaning of all newly-constructed and
rented space, including dusting, sweeping, vacuuming, polishing of metal and
bright work, windows, and mullions, removal of plaster, dust and construction
debris so that the premises are left in a clean, orderly condition ready for
occupancy by client. Contractor
shall also provide complete floor maintenance and initial waxing and
polishing throughout the premises prior to move-in of all new
clients.
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2.
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Restrooms
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Contractor shall perform a
thorough initial cleaning of all floors, walls partitions, fixtures, and bright
work as they are placed in operation, at no cost to the Building. No caustic
materials will be used.
I. RECYCLING
PROGRAM
The Manager has instituted a
recycling program which involves the client placing paper goods in centrally
located bins for nightly removal.
The Contractor shall instruct its
associates to use special care when removing this material from the building
into compactors or dumpsters.
Specially
colored liners shall be provided for recycled products by the Manager.
If client
elects to have recycled products sorted at individual work areas rather than
centrally located depots, Contractor agrees to provide
this service at no additional cost to Manager or
Client.
J. LOADING
DOCK (including
compactor area and freight elevator lobby)
-14-
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1.
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Nightly
|
The
loading dock shall be thoroughly cleaned using a mechanical scrubber and
appropriate grease-cutting and sanitizing cleansers.
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2.
|
Monthly
|
a. In
addition to the nightly tasks, the dock area will be detailed around edges and
comers once a month or as required by Manager.
NOTE:
Freight elevator lobbies and the loading dock office are to be cleaned in
accordance with the previously detailed NIGHT specifications.
II. DAY CLEANING AND GENERAL
MAINTENANCE EXPECTATIONS
The
following is an overview and more detailed duties are provided under "DUTIES".
The Day
Staff shall be trained and expected to perform the following duties as well as any additional
duties as may be directed by the Manager; in all activities,
damage or exceptions (lights out, loose panels, etc.) are to be reported to
supervisor for appropriate action.
A. INTERIOR
CLEANING
1. Lobby:
(including Concourse). Maintain entry lobby. Use of carpet sweeper and/or vacuum
shall be used during the day. Treated dust mops shall be used for removing
footprints from floors. Damp mop shall be used for spills. All glass and walls
shall be spot cleaned, removing handprints, smudges, etc. throughout the day.
Security Console and Client Directory shall be cleaned as needed using a treated
cloth but no less than twice a day. FEATHER DUSTERS ARE NOT TO BE USED.
No scrubbing or
buffing shall be done during the day in the Lobby or in Concourse
Areas.
2. Glass
Interior and Exterior: Spot clean glass entry
doors and windows throughout the day, as needed.
3. Elevators: Maintain all elevator
cabs. Carpeted elevators are to be vacuumed and spot-cleaned. Surface litter
should be removed, and fingerprints and smudges on wall panels wiped down. This
cleaning should be performed
-15-
at least
once in the morning and once in the afternoon. Metal damage and graffiti are to
be reported to Manager
immediately.
4. Restrooms:
Day Porters and Matrons shall be trained and assigned to perform the following
duties and any additional duties as may be directed by the Manager:
a. Metal
Fixtures: Wash and polish all mirrors, powder shelves, towel dispensers,
receptacles, and any other metal accessories.
b. Ceramic
Fixtures: Special care must be taken to inspect toilet seats, toilet
bowls, sinks and faucet handles. Make sure they are clean.
x. Xxxxx and
Metal Partitions: Damp wipe all metal toilet partitions and tiled walls,
using approved germicidal solution, if necessary. Note any damage and/or
graffiti and report immediately.
d. General:
Remove all wastepaper and refuse, including sanitary napkins, also fill toilet
tissue holders, seat cover containers, soap and lotion dispensers, towel
dispensers, and sanitary napkin dispensers.
Clean
drinking fountains twice daily.
Paper
product refill stock is not to be visibly stored in any area of the
restroom.
B.
EXTERIOR
CLEANING
1. Plazas:
First thing each morning, day Porters are to police the entire exterior of the
building, including walkways and lower/upper plazas, picking up cigarette butts,
papers, leaves, and any other debris, mopping/sweeping up standing water, noting
any damage or exceptions, and assuring that the area is in neat, orderly
condition. Any discrepancies or clean-up required beyond the morning walk will
be reported to Manager
for attention during the day.
All
plazas, courts, walkways, garden areas, seating areas, ponds, pools, handrails,
etc., are to be checked and cleaned throughout the day with special attention to
early morning 6:00 - 7:00 am, lunch time 11:30 am - 1:00 pm, and end of day 3:30
pm - 4:30 pm. All trash and cigarette receptacles to be emptied regularly.
Benches to be cleaned regularly.
-16-
2. Exterior
Granite: All
exterior walks (including public sidewalks), stairs and open/covered plazas will
be cleaned daily and scrubbed at least weekly with a mechanical scrubber/vacuum.
After cleaning and sweeping, all standing water will removed by squeegee and the
surfaces left in a clean, dirt-free condition. Caution signs and stanchions must
be used during the operation. Timing of this scrubbing should not interfere with
usage of the Plaza areas during lunch time or during morning and evening peak
traffic times. Special attention should be given to the cleaning of grout;
removal of efflorescence, accumulated dirt and stains.
3. Safety: Set out rain mats, as
necessary, and maintain them in a clean condition. Report damage or wear and
tear. Mats are to be flat and located so as to meet traffic demands.
(Back-rolling for storage.)
4. Entrances: Keep entrance door glass
and frames in a clean condition.
5. Brass: Clean and polish all brass including
but not limited to grates, railings, expansion joint covers, drain covers,
grills, standpipes and fire hose connections as necessary and at least once a
month.
6. Railings: Dust handrails, stair
stringers, risers and railings; wash as necessary.
7. Stairwells:
Clean, sweep, dust, mop, and pick up stairwells and landings.
8. Special
Events: Clean exterior walks and
patios and set up for special occasions and events.
9. Escalators: Escalator treads are to
be mechanically scrubbed and buffed weekly. Sidewalls and flashing are to be
cleaned daily, and handrails dusted throughout each day. Report damage or
exceptions (e.g. missing or loose screws, squeaking sounds, etc.) for immediate
action.
10. Changing
Rooms and Storage Area: All changing rooms and
storage areas are to be maintained in a clean, orderly condition.
C. LOADING
DOCK (See
also CLEANING; NIGHT)
1. Maintain
loading dock areas in a clean and sanitary condition. Report any problems with
compactors to the Office of the Building immediately. Compactors to be kept
locked, and all personnel with keys must be trained
and
-17-
certified in their
proper use. When compactor is removed for dumping, area underneath it shall be
swept, hosed and sanitized.
2. Compactor
Operation: Training of all persons
operating compactor should be arranged with owner's Manager. Inspect daily and report
to Manager if rubbish
removal contractor does not clean and/or sanitize.
D. DUTIES (Detailed list of
overall responsibilities for Day Matrons and Day Porters).
1. Duties of
Day Matrons: Contractor agrees to furnish
day matrons, as outlined in this specification, to perform the following duties
and any additional duties as may be directed by Manager.
Matrons
shall be properly attired in freshly laundered, starched uniforms and equipped
with an appropriate carry-all approved by Manager (shopping bags, travel
bags, etc. are not acceptable). Matrons shall use freight cars only when
traveling with supplies.
a. Police
all ladies' restrooms and lavatories, keeping them I clean condition as
previously specified, but not less than twice per day.
b. Matron
to fill toilet tissue, soap, sanitary napkin and towel dispensers in ladies'
restrooms on all floors.
c. Perform
such other duties as mat be directed by Manager.
2. Duties of
Day Porters:
Contractor agrees to furnish
day porters, as outlined in this specification, to perform the following duties
and any additional duties which may be directed by the Manager.
Contractor also agrees to
provide sufficient porters for client work, which in no way will delete from
building staff, unless approved by Manager.
The
number of porters added to the building staff for client work shall be charged
to Manager.
Sufficient
day porters shall be assigned to perform the following services and any
additional chores as directed by building management.
-18-
These services include but are not
limited to the following:
a. Police
entire lobby areas and exterior areas including concourse and
plaza.
b. Police
and maintain elevator cabs, including floors as required. If carpeted floors in
elevators, cabs to be vacuumed and spots to be removed, as required, if
resilient tile, clean buff and wax floors, as required.
c. Police
all floor men's lavatories, to be checked a minimum of twice a day, morning and
afternoon.
d. Check
and fill, as necessary, toilet tissue and soap dispensers and towel dispensers,
materials to be furnished by Contractor.
e. Clean
basement (including all levels below first floor), corridors, utility areas;
police employer's lockers rooms so they are kept in clean condition at all
times.
f. Sweep
and hose building entrance sidewalks and all exterior areas, as required, but
not less than once each week. All equipment, including steam and washing
equipment to clean plaza and sidewalks to be provided by Contractor and such equipment
to be of a type and manufacture as approved by Manager.
g. Set
out and remove weather mats on an as needed basis; keep in clean
condition.
h. Keep
entrance door glass and frames in clean condition
i. Clean
and polish standpipes and sprinkler Siamese connections as
necessary.
j. Properly
maintain exterior of all buildings at ground level, including canopy trim and
painted underside of canopies, store fronts, and other applicable areas; all
garden areas to be policed.
k. Clean
loading dock areas as needed,
1. Sweep
and dust stairways and fire tower. Dust handrails, spindles, newels and stair
stringers; wash stairs as necessary.
-19-
m. Remove
snow when necessary from building entrance ways, sidewalks and plaza. All
materials and equipment, including powered snow removal, steam and washing
equipment to clean plaza, to be furnished by Contractor, and such equipment to be
of a type of manufacture as set forth by Manager. This is to be considered
an extra to the base contract cost when required on overtime. Provide a list of
people to be called in for snow removal.
n. As
directed by Manager, equipment rooms, fan
rooms, and other utility rooms, shall be swept regularly.
o. Perform
such other duties as may be directed by Manager.
p. Clean
basement corridors and utility areas, including floors, walls, ceilings,
fixtures and other areas. All such areas shall be kept in clean condition to the
satisfaction of the Manager.
III. STANDARDS
AND SPECIAL CONDITIONS
A. CLEANING
STANDARDS
The
following cleaning standards shall be used in evaluating janitorial
services:
1. Dusting: A properly dusted
surface is free of all dirt, dust, dust streaks, lint and cobwebs.
2. Plumbing Fixture and Dispenser
Cleaning: Plumbing fixtures and
dispensers are clean when free of all deposits and stains so that an item is
left with dust streaks, film, odor or stains.
3. Sweeping: A properly swept floor is
free of all dirt, dust, grit, lint and debris except embedded dirt and
grit.
4. Spot-Cleaning: A surface adequately
spot-cleaned is free of all stains and deposits and is substantially free of
cleaning marks.
5. Damp-Mopping: A satisfactorily
damp-mopped floor is without dirt, dust, marks, film, streaks, debris, water
spots or standing water.
-20-
6. Metal Cleaning: All cleaned
metal surfaces are without deposits or tarnish, with a uniformly bright
appearance, and the cleaner is removed from adjacent surfaces.
7. Glass Cleaning: Glass is clean
when all glass surfaces are without streaks, film, deposits, and stains and has
a uniformly bright appearance and adjacent surfaces have been wiped
clean.
8. Wax Removal/Application: Wax
removal is accomplished when surfaces have all wax removed down to floor
material, floor is left free of all dirt, stains, deposits, debris, cleaning
solution and standing water, and the floor has a uniform appearance when dry.
Application of wax shall be complete when a thin, evenly applied layer of wax is
clear and dry and ready for buffing to a uniform, glossy
appearance.
9. Scrubbing
(Manual): Scrubbing is satisfactorily performed when all surfaces are
without embedded dirt, cleaning solution, film, debris, stains, marks and
standing water, and the floor has a uniformly clean appearance.
10. Light
Fixture Cleaning: Light fixtures are considered clean when all
components, including bulbs, tubes and adjacent surfaces, reflective and
otherwise, are without insects, dirt, lint, film and streaks. All lenses that
have been removed are to be reinstalled immediately, per specs.
11. Wall
Washing: Walls are considered clean when the walls, the ceiling, exposed
pipes and equipment will have a uniformly clean appearance, free from dirt,
stains, streaks, lint and cleaning marks. Painted surfaces must not be damaged.
Hard finish glazed ceramic tile surfaces must be bright, free of film, streaks,
and deposits.
12. Buffing
of Waxed Surfaces: All waxed surfaces will be considered buffed
sufficiently when the surface has maximum gloss and a uniform
appearance.
As used
in this cleaning specification, "Approved Product" or "Approved Cleaner" shall
mean a product or cleaner approved in writing by Manager prior to Contractor's use of product or
cleaner in the building.
13. Mechanical
Scrubber: The mechanical scrubber shall at all times be clean in
appearance and operation and shall be maintained free of hazards to persons or
property.
-21-
B. EQUIPMENT
STANDARDS
The Contractor shall provide all
equipment necessary for the effective and efficient cleaning of the Building in
accordance with the intent and the letter of specifications. All cleaning
equipment shall be state-of-the-art and consistent with good cleaning practices.
All equipment shall be
kept in first class working order and clean (spotless, like new) at all
times. Acceptably maintained equipment meets the following
standards:
1. Equipment
is replaced when obsolete or defective as determined by Manager.
2. Equipment
is kept clean and neat at all times reflecting a "like new" appearance and
operates like new equipment both mechanically and functionally.
3. Modifications
to equipment required to prevent damage to any of the architectural finishes of
the Building is made at the direction and with the written approval of the owner
at no additional cost to the Owner or Manager.
4. Electrical
machinery (vacuums, polishers, scrubbers, et al) must be kept free of sharp
edges and any other condition that presents a hazard to persons or
property.
5. Damaged
equipment is to be repaired to the standard defined in #2 above before
reuse.
6. Wheels
and rolling parts on carts are to be maintained so as to roll easily; carts have
wide (min. 1") wheels with a minimum 4" diameter in order to avoid getting
caught in ridges and cracks; carts have area large enough to accommodate all
equipment without having to strap on contents.
7. Dents/scratches
on equipment are repaired immediately. Any and all parts (squeegees, bumpers,
etc.) of the equipment damaged or worn shall be replaced at the expense of the
Contractor.
8. Mechanical
equipment (wet-vac, scrubbing machine, et al) is free of dirt and residue;
containers/nozzles for spray liquids are to be maintained in clean condition,
without buildup of dirt or liquid.
9. Brooms
have even bristles that do not scratch surfaces being swept.
-22-
10. Dustmops
(treated and untreated) are maintained in clean condition.
11. Wet
mops are washed with clear water and at least once a week with bleach or
disinfectant. Two (2) mops are located in each work area and are dried between
use (alternated every other day). When mops are not in use, they are to be
stored with the mop "end up".
12. Rags
and cleaning cloths are maintained in clean condition - rags used with water
only kept separate from rags used with solvent only.
13. All
buckets/receptacles are free of accumulated dirt, grease, grime,
etc.
14. All
signs are clean (like new) and neat at all times with lettering clear and
distinct.
C. SUPPLIES
All
supplies required for the effective cleaning and maintenance of the Building in
accordance with the specifications will be supplied by the Contractor, including but not
limited to cleansers, waxes, disinfectants, sand for ash urns, ammonia, etc. The
disposable supplies used in client suites and restrooms (plastic liners, hand
towels, seat covers, toilet tissue and hand soap) will be purchased by Manager or Contractor, if requested to do
so.
D. UNIFORMS
The Contractor shall provide
complete uniforms (winter and summer) for all Janitorial personnel, if
directed.
The Manager shall select and
approve all uniforms and direct, when necessary, the modification, repair or
replacement of all uniforms.
Night
personnel would be provided with a minimum of two (2) changes per week and day
personnel would be provided with a minimum of three (3) changes per
week.
Proper
identification tags shall be worn by the Contractor's personnel,
including Manager's
specialized name badge if $7.50 and will need to be replaced at the
associate's annual anniversary date, at cost of Contractor.
Contractor would clean and
maintain uniforms in a neat appearance to the satisfaction of the Manager.
-23-
All
personnel shall be equipped as required with appropriate and adequate outer
garments and protective gear for both inclement and cold weather.
-24-
EXHIBIT
F
(12TH
FLOOR EXPANSION SPACE)
EXHIBIT G
(20TH FLOOR EXPANSION SPACE)
EXHIBIT
H
(21ST FLOOR EXPANSION SPACE)
EXHIBIT
I
SUBORDINATION
NON-DISTURBANCE
AND ATTORNMENT AGREEMENT
NOTICE:
|
THIS
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT RESULTS IN YOUR
LEASEHOLD ESTATE IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY
THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
|
THIS
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (the “Agreement”) is entered into
between _________________________________, a (“Tenant”) and
___________________________ a(n) _________________ (“Lender”) and affects the red
property described in Exhibit A attached hereto, together with the improvements
thereon (the “Property”). This Agreement is
entered into with reference to the following facts:
A. _________________________,
a ______________________ (“Landlord”) and Tenant have
entered into a certain lease (the “Lease”) dated as of
_______________, covering certain space in the improvements located in and upon
the Property (the “Premises”);
B. Whereas,
Lender is the holder of a Mortgage and Security Agreement dated as of
_____________, encumbering the Property on which the Premises form a part,
executed by Landlord, as Mortgagor, in favor of Lender (the “Mortgage”) which Mortgage
secures repayment of the loan (the “Loan”) evidenced by the Note
secured by Mortgage in the original principal amount of $__________ (the “Note”) and which Mortgage was
recorded in the records of the County in which the Property is
located.
C
.. Whereas,
Tenant has requested that Lender agree not to disturb Tenant’s possessory rights
in the Premises in the event Lender should foreclose its Mortgage, provided that
Tenant is not in default under the Lease and, provided that Tenant attorns to
Lender or the purchaser in the event of any acquisition by the exercise of a
power of sale or at any such foreclosure sale; and
D. Whereas,
Lender is willing to so agree on the terms and conditions hereinafter
provided.
NOW,
THEREFORE, in consideration of the mutual covenants contained herein and of
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
1. Subordination.
Notwithstanding anything to the contrary set forth in the Lease, the Lease and
the leasehold estate created thereby and all of Tenant’s rights
thereunder
shall be
and shall at all times remain subject, subordinate and inferior to the Mortgage
and the lien thereof, and all rights of Lender thereunder and to any and all
renewals, modifications, consolidations, replacements and extensions
thereof.
2 Acknowledgment and Agreement
by Tenant. Tenant acknowledges and agrees that:
(a) Lender,
in making any disbursements to Landlord, is under no obligation or duty to
oversee or direct the application of the proceeds of such disbursements, and
such proceeds may be used by Landlord for purposes other than improvement of the
Property.
(b) From
and after the date hereof, in the event of any act or omission by Landlord which
would give Tenant the right, either immediately or after the lapse of time, to
terminate the Lease or to claim a partial or total eviction, Tenant will not
exercise any such right:
(i) until
it has given written notice of such act or omission to Lender; and
(ii) until
Lender has had an opportunity to cure such act or omission of Landlord as
provided in Section 23.2 of the Lease.
(c) It
has notice that the Lease and the rent and all other sums due thereunder have
been assigned or are to be assigned to Lender as security for the Loan secured
by the Mortgage. In the event that Lender notifies Tenant of a default under the
Mortgage and demands that Tenant pay its rent and all other sums due under the
Lease to Lender, Tenant shall honor such demand and pay its rent and all other
sums due under the Lease directly to Lender or as otherwise required pursuant to
such notice.
(d) It
shall send a copy of any notice or statement under the Lease to Lender at the
same time such notice or statement is sent to Landlord.
(e) It
has no right or option of any nature whatsoever, whether pursuant to the Lease
or otherwise, to purchase the Premises or the Property, or any portion thereof
or any interest therein, and to the extent that Tenant has had, or hereafter
acquires, any such right or option, the same is hereby acknowledged to be
subject and subordinate to the Mortgage and is hereby waived and released as
against Lender.
(f) That
the term of the Lease has commenced and is presently in full force and effect
and unmodified.
-2-
(g) That
Tenant has accepted possession of the Premises and that any improvements
required by the terms of the Lease have been completed to the satisfaction of
the Tenant.
(h) That
no rent under the Lease has been paid more than one (1) month in advance of its
due date.
(i) That
Tenant, as of this date, has no charge, lien or claim of offset under the Lease
or otherwise, against the rents or other charges due or to become due to
Landlord thereunder.
(j) This
Agreement satisfies any condition or requirement in the Lease relating to the
granting of a non-disturbance agreement.
3. Foreclosure and Sale.
In the event of foreclosure of the Mortgage, or upon a sale of the Property
pursuant to a power of sale contained therein, or upon a transfer of the
Property by conveyance in lieu of foreclosure, then:
(a) Non-Disturbance.
So long as Tenant complies with this Agreement and is not in default under any
of the terms, covenants, or conditions of the Lease, the Lease shall continue in
full force and effect as a direct lease between the succeeding owner of the
Property and Tenant, upon and subject to all of the terms, covenants and
conditions of the Lease, except as otherwise set forth herein, for the balance
of the term of the Lease. Tenant hereby agrees to adhere to and accept any such
successor owner as landlord under the Lease, and to be bound by and perform all
of the obligations imposed by the Lease, and Lender, or any such successor owner
of the Property, will not disturb the possession of Tenant, and will be bound by
all of the obligations imposed on the Landlord by the Lease, except as otherwise
set forth herein; provided however, that Lender, or any purchaser at a sheriff’s
sale or any successor owner of the Property shall not be:
(i) liable
for any act or omission of a prior landlord (including Landlord) or subject to
any offset, defense or damages arising out of a default of any obligations of
any preceding Landlord, except to the extent said default is ongoing, relates to
the physical condition of the Property and is not diligently cured by Lender
after Lender takes possession of the Property, in which case Lender shall,
subject to the terms of the Lease, be liable for damages arising on and after
the date it succeeded to Landlord’s title under the Lease; or
(ii) subject
to any offsets or defenses which Tenant might have against any prior landlord
(including Landlord), but Tenant shall not be obligated to pay to Lender or any
purchaser at a sheriff’s sale or any successor owner of the Property any credits
properly taken before Lender or any purchaser at a sheriff’s sale or any
successor owner of the Property succeeded to such interest; or
-3-
(iii) bound
by any rent or additional rent which Tenant might have paid in advance to any
prior landlord (including Landlord) for a period in excess of one month or by
any security deposit, cleaning deposit or other prepaid charge which Tenant
might have paid in advance to any prior landlord (including Landlord) unless and
until Lender or such other purchaser has actually received for its own account
as landlord the full amount of such deposit; or
(iv) bound
by any amendment or modification of the Lease made without the written consent
of Lender or such other purchaser.
(b) Intentionally
omitted.
(c) Intentionally
omitted
(d) Intentionally
omitted
(e) Lender
shall have no liability to Tenant or any other party for any conflict between
the provisions of the Lease and the provisions of any other lease affecting the
Property, including, but not limited to, any provisions relating to renewal
options and options to expand, and in the event of such a conflict, Tenant shall
have no right to cancel the Lease or take any other remedial action against
Lender or action against any other party for which Lender would be
liable.
4. Acknowledgment and Agreement
by Landlord. Landlord, as landlord under the Lease and mortgagor under
the Mortgage, acknowledges and agrees for itself and its heirs, successors and
assigns, that:
(a) This
Agreement does not:
(i) constitute
a waiver by Lender of any of its rights under the Mortgage; and/or
(ii) in
any way release Landlord from its obligations to comply with the terms,
provisions, conditions, covenants, agreements and clauses of the
Mortgage,
(b) The
provisions of the Mortgage remain in full force and effect and must be complied
with by Landlord; and
(c) In
the event of a default under the Mortgage, Tenant may pay all rent and all other
sums due under the Lease to Lender as provided in this Agreement.
5
.. No Obligation of
Lender. Lender shall have no obligation or incur any liability with
respect to the erection or completion of the improvements in which the
Premises
-4-
are
located or for completion of the Premises or any improvements for Tenant’s use
and occupancy, either at the commencement of the term of the Lease or upon any
renewal or extension thereof or upon the addition of additional space, pursuant
to any expansion rights contained in the Lease.
6
.. Notice. All notices
hereunder to Lender shall be deemed to have been duly given if mailed by United
States registered or certified mail, with return receipt requested, postage
prepaid to Lender at its address set forth below (or at such other address as
shall be given in writing by Lender to Tenant) and shall be deemed complete upon
any such mailing:
________________________
________________________
________________________
7. Casualty or
Condemnation. Lender agrees that in the event of a casualty or taking by
eminent domain which affects the Building, unless the Lease is terminated as a
result thereof, Lender shall make the insurance or condemnation proceeds
available to the Landlord for repair or restoration of the Building provided
that there remain leases in effect with tenants in occupancy of the Building
which together yield income sufficient to meet all Operating Expenses, Taxes and
debt service payments under the Note secured by the Mortgage.
8. Miscellaneous.
(a) This
Agreement supersedes any inconsistent provision of the Lease.
(b) Nothing
contained in this Agreement shall be construed to derogate from or in any way
impair or affect the lien and charge or provisions of the Mortgage.
(c) Neither
Lender nor any other successor owner of the Property shall have any obligation
or incur any liability with respect to any representations or warranties of any
nature whatsoever, whether pursuant to the Lease or otherwise, including without
limitation, any representations or warranties respecting use, compliance with
zoning, Landlord’s title, Landlord’s authority, habitability, fitness or purpose
of possession.
(d) In
the event that Lender shall acquire title to the Premises or the Property,
Lender shall have no obligation, nor incur any liability, beyond Lender’s then
equity interest, if any, in the Premises, and Tenant shall look
-5-
exclusively
to such equity interest of Lender, if any, in the Premises for the payment and
discharge of any obligations imposed upon Lender hereunder or under the Lease,
and Lender is hereby released and relieved of any other obligations hereunder
and under the Lease.
(e) This
Agreement shall inure to the benefit of the parties hereto, their respective
successors and permitted assigns; provided however, that in the event of the
assignment or transfer of interest of Lender, all obligations and liabilities of
Lender under this Agreement shall terminate, and thereupon all such obligations
and liabilities shall be the responsibility of the party to whom Lender’s
interest is assigned or transferred; and provided further that the interest of
Tenant under this Agreement may not be assigned or transferred without the prior
written consent of Lender.
(f) This
Agreement shall be governed by and construed in accordance with the laws of the
State of which the Property is located.
-6-
IN
WITNESS WHEREOF, the parties have executed this Subordination, Non-Disturbance,
and Attornment Agreement as of __________________, ___________.
NOTICE:
|
THIS
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT CONTAINS
PROVISIONS WHICH ALLOW THE PERSON OBLIGATED ON THE LEASE TO OBTAIN A LOAN,
A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF
THE PROPERTY.
|
TENANT:
|
__________________________________
|
a(n)
______________________________
|
By
_______________________________
|
Its
_______________________________
|
LENDER:
|
__________________________________,
|
a(n)
______________________________
|
By
_______________________________
|
Its
_______________________________
|
LANDLORD:
|
__________________________________,
|
a(n)
______________________________
|
By
_______________________________
|
Its
_______________________________
|
-7-
Exhibit
A
Legal
Description
-8-
STATE
OF _____________________
|
)
|
)
SS.
|
|
COUNTY
OF ___________________
|
)
|
On
_____________________, _________________, before me, the undersigned, a Notary
Public in and for said County and State, duly commissioned and sworn, personally
appeared __________________________, known to me to be the ___________________
of ____________________, a(n) ______________________, the corporation that
executed the foregoing instrument and known to me to be the person who executed
said instrument on behalf of said corporation, and acknowledged to me that such
corporation executed the same pursuant to its By-laws or a resolution of its
Board of Directors.
WITNESS
my hand and official seal
Notary
Public
|
-9-
STATE
OF _____________________
|
)
|
)
SS.
|
|
COUNTY
OF ___________________
|
)
|
On
_____________________, _________________, before me, the undersigned, a Notary
Public in and for said County and State, duly commissioned and sworn, personally
appeared __________________________, known to me to be the ___________________
of ____________________, a(n) ______________________, the corporation that
executed the foregoing instrument and known to me to be the person who executed
said instrument on behalf of said corporation, and acknowledged to me that such
corporation executed the same pursuant to its By-laws or a resolution of its
Board of Directors.
WITNESS
my hand and official seal
Notary
Public
|
-10-
STATE
OF _____________________
|
)
|
)
SS.
|
|
COUNTY
OF ___________________
|
)
|
On
_____________________, _________________, before me, the undersigned, a Notary
Public in and for said County and State, duly commissioned and sworn, personally
appeared __________________________, known to me to be the ___________________
of ____________________, a(n) ______________________, the corporation that
executed the foregoing instrument and known to me to be the person who executed
said instrument on behalf of said corporation, and acknowledged to me that such
corporation executed the same pursuant to its By-laws or a resolution of its
Board of Directors.
WITNESS
my hand and official seal
Notary
Public
|
-11-
EXHIBIT
J
(22ND
FLOOR EXPANSION SPACE)
EXHIBIT
K
DISCHARGE
OF MEMORANDUM OF LEASE
DISCHARGE
OF MEMORANDUM OF LEASE made this ____ day of ___________, _____, by and between
METROPOLITAN LIFE INSURANCE COMPANY, a New York corporation, having an office
x/x Xxxxxxx & Xxxxxxxxx Xxxxx Xxxxxx, Xxx., 000 Xxxx Xxxxxx Xxxxx, Xxxxx
0000, Xxxxxxx, Xxxxxxxx 00000 (“Landlord”); and KPMG PEAT MARWICK LLP, a
Delaware limited liability partnership, having an office at Three Xxxxxxxx Xxxxx
Xxxx, Xxxxxxxx, Xxx Xxxxxx 00000 (“Tenant”).
WHEREAS,
Landlord and Tenant entered into a certain written lease dated August __, 1997
(the “Lease”) wherein Landlord leased to Tenant and Tenant leased from Landlord
the premises consisting of approximately 200,502 square feet on the thirteenth
(13th), fourteenth (14th), fifteenth (15th), sixteenth (16th), seventeenth
(17th), eighteenth (18th), nineteenth (19th) and twenty-first (21st) [or 22nd Floor] (if applicable)
floors of the building located at 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx;
and
WHEREAS,
the parties executed a certain Memorandum of Lease, which Memorandum was
recorded on _____________, 1997 in the Office of the Recorder of Xxxx County in
Book __________ at Page __________ et seq;
and
WHEREAS,
all rights of the Tenant under the Lease have terminated, and the parties now
desire to cancel and discharge of record the said Memorandum of
Lease.
NOW,
THEREFORE, the Recorder of Xxxx County, Illinois is hereby authorized and
directed to cancel and discharge of record the said Memorandum of Lease, it
being understood and agreed by the parties hereto that the recordation of this
Discharge of Memorandum of Lease shall not affect any rights or obligation of
the parties which by their terms survive termination of the Lease.
IN
WITNESS WHEREOF, Landlord and Tenant have executed this instrument on the day
and year first above written.
LANDLORD:
|
|
METROPOLITAN
LIFE INSURANCE
|
|
COMPANY
|
|
ATTEST:
|
|
By
_______________________________
|
By
_______________________________
|
Its
_______________________________
|
Its
_______________________________
|
TENANT:
|
|
KPMG
PEAT MARWICK LLP
|
|
ATTEST:
|
|
By
_______________________________
|
By
_______________________________
|
Its
_______________________________
|
Its
_______________________________
|
-2-
ACKNOWLEDGMENT
STATE
OF
|
)
|
)
SS
|
|
COUNTY
OF
|
)
|
I,
___________________________, a Notary Public in and for and residing in said
County and State, DO HEREBY CERTIFY THAT ____________________________________ of
_________________________, a(n) ______________ corporation, personally known to
me to be the same person whose name is subscribed to the foregoing instrument
appeared before me this day in person and acknowledged that ____ he signed and
delivered said instrument as _______ own free and voluntary act and as the free
and voluntary act of said corporation for the uses and purposes therein set
forth.
GIVEN
under my hand and notarial seal this _______ day of _______________,
19__.
Notary
Public
|
My
Commission Expires:
|
-3-
ACKNOWLEDGMENT
STATE
OF
|
)
|
)
SS
|
|
COUNTY
OF
|
)
|
I,
___________________________, a Notary Public in and for and residing in said
County and State, DO HEREBY CERTIFY THAT ____________________________________ of
_________________________, a(n) ______________ corporation, personally known to
me to be the same person whose name is subscribed to the foregoing instrument
appeared before me this day in person and acknowledged that ____ he signed and
delivered said instrument as _______ own free and voluntary act and as the free
and voluntary act of said corporation for the uses and purposes therein set
forth.
GIVEN
under my hand and notarial seal this _______ day of _______________,
19__.
Notary
Public
|
My
Commission Expires:
|
-4-
RIDER
OTHER
PROVISIONS
1. Contingency. The parties
acknowledge that a portion of the Premises consisting of 186,945 square feet on
floors 13 through 19 (the “Xxxxxxx Space”) is currently leased to DDB Xxxxxxx,
Chicago, Inc. (“Xxxxxxx”) pursuant to a Lease dated September 28, 1978, as
amended (the “Xxxxxxx Lease”). This Lease is expressly subject to and contingent
upon execution and delivery of an agreement between Tenant and Xxxxxxx no later
than August 29, 1997 providing for Tenant to pay $1,150,000.00 to Xxxxxxx in
exchange for Xxxxxxx’x agreement to vacate the Xxxxxxx Space and terminate the
Xxxxxxx Lease with respect to the Xxxxxxx Space. Provided that the foregoing
agreement is executed and delivered by both parties, Landlord agrees to use
commercially reasonable efforts to terminate the Xxxxxxx Lease with respect to
the Xxxxxxx Space. This Lease is also contingent upon Landlord’s ability to
enter into a commercially reasonable termination agreement no later than August
29, 1997 with Xxxxxxx with respect to the Xxxxxxx Space.
2. Base Rent, Taxes and Operating
Expenses for Existing Premises. The parties acknowledge that Tenant is
currently leasing approximately 229,739 square feet (the “Existing Premises”) in
the Building from Landlord pursuant to a lease dated as of May 10, 1979 (the
“Existing Lease”), as amended to date. Notwithstanding the terms of the Existing
Lease and the fact that Tenant may not have taken possession of the Premises
under this Lease by September 1, 1997, Tenant shall pay the Monthly Base Rent
set forth in Section 1.1(8) of this Lease and Tenant’s Share of Taxes and
Operating Expenses from and after September 1, 1997 in lieu of payment of
monthly base rent, operating expenses and taxes, as provided in the Existing
Lease (notwithstanding that the Existing Premises is larger than the Premises).
When the final size of the Initial Premises is established pursuant to Section
2.4 of the Lease, all Rent obligations of Tenant under this Section shall be
adjusted retroactively to September 1, 1997. It is the intent of the parties
that while the Rent as set forth in this Lease shall apply from and after
September 1, 1997 (notwithstanding the fact that Landlord need not deliver
possession of the Premises until a later date), Tenant shall pay such Rent for
the Existing Premises until Tenant occupies the Premises hereunder and
thereafter shall pay such Rent for the Premises hereunder. There shall be no
double rent unless Tenant remains in the Existing Premises after January 31,
1999, as said date may be extended for reasons of Force Majeure but not for any
Tenant Delays.
3. Signage. Tenant shall be the
only occupant of the Building having the right to install signage on the
exterior of the Building or at Tenant’s elevator bank in the lobby of the
Building, except for Landlord’s installation of the address and/or other
identification of the Building or as otherwise required by Law.
Tenant
shall also have the right to install, at its expense, an exterior monument sign
in the plaza of the Building with Tenant’s name and logo. Such monument sign
shall be at
Tenant’s
sole cost and expense. Notwithstanding the foregoing, Landlord reserves its
rights to install other non-exclusive monument signs in the plaza with the names
of other tenants or occupants of the Building.
The
location, materials, size, design and other matters with respect to all Tenant’s
signs permitted hereunder shall be mutually and reasonable agreed upon by
Landlord (and its architect) and Tenant, and shall comply with all applicable
Laws. Tenant shall pay all costs with respect to such signage, including,
without limitation, all costs of design, fabrication, installation, illumination
(if sign is electrical), maintenance and removal (including repair of damage
caused by such removal) upon expiration or earlier termination of this Lease or
if such removal is desired by Tenant. Repairs of damage shall mean cleaning and
repair of wall or other surface where the sign in question was
mounted.
Tenant
shall be provided with sufficient space in the Building directory to list all of
its partners, managers and other key personnel who have their principal office
in the Building and to list permitted assignees and subtenants. Landlord shall
not charge Tenant any fee for the initial installation of such names in the
Building directory but reserves the right to charge Tenant a reasonable rate not
to exceed the lowest amount charged to other Building tenants for any changes or
additions to the names initially installed.
No other
signage may be installed or placed outside the Premises by Tenant, except as
provided in this Section 3 or as otherwise permitted by the Building standard
signage policy. All of the rights set forth in this Section 3 are personal to
KPMG Peat Marwick LLP and shall not be exercisable by any other person or
entity, regardless of whether or not such person or entity has succeeded to some
or all of Tenant’s other rights under this Lease.
4. Exclusive; Other Restrictions.
During the Term of this Lease: (1) Landlord shall not enter into a lease of any
space in the Building to any of the following: Xxxxxx Xxxxxxxx & Co.;
Xxxxxxxx Consulting; Deloitte & Touche; Ernst & Young; Price Waterhouse;
Coopers & Xxxxxxx and any of their respective Affiliates; and (2) Landlord
shall not enter into a lease of any space in the Building to schools or U.S.
Government agencies unless such school or agency is a high-end, professional
organization. Tenant acknowledges and agrees, however, that Landlord does not
have the right to interfere with the subleasing of space or the assignment of
any lease existing as of the date of this Lease by other tenants or occupants of
the Building to the entities named above or to schools or U.S. Government
agencies pursuant to the terms of the leases of such tenants or other
occupants.
5. Storage Space. Landlord shall
lease storage space (“Storage Space”) to Tenant on the following terms and
conditions:
(1) Commencing
on September 1, 1997, Tenant shall have the right to lease up to approximately
7,500 square feet of Storage Space in the Building to be used by Tenant for the
storage of books, papers and documents, only. Tenant shall make its final
determination as to the maximum amount of Storage Space which it wishes to lease
no later
-2-
than
December 31, 1997, and the terms set forth herein shall only apply to storage
space leased by Tenant prior to December 31, 1997. Any storage space which
Tenant is leasing as of September 1, 1997 pursuant to the Existing Lease shall
be deemed to be part of (i.e., shall count toward) the total square footage of
storage space which Tenant is leasing hereunder. Storage Rent for the Storage
Space shall be as follows:
(a) Storage
Space up to and including 3,916 square feet: $10.00 per square foot for the
period commencing on September 1, 1997 and ending on August 31, 1998.
Thereafter, on each September 1 during the Term, such Storage Rent shall be
increased by 2.25% over the Storage Rent for the preceding 12-month
period.
(b) Storage
Space over 3,916 square feet up to and including 7,500 square feet: $11.00 per
square foot for the period commencing on September 1, 1997 and ending on August
31, 1998. Thereafter, on each September 1 during the Term, such Storage Rent
shall be increased by 2.25% over the Storage Rent for the preceding 12-month
period.
The
Storage Space Rent shall be payable as and when Monthly Base Rent is payable,
commencing on the date that possession of the Storage Space is delivered to
Tenant. Notwithstanding the foregoing, for purposes of calculating Tenant’s
Share, the Storage Space shall not be included in the Rentable Area of the
Premises.
(2) Tenant
shall not be required to pay Taxes or Operating Expenses with respect to the
Storage Space but shall be responsible for all electricity charges with respect
to the Storage Space. Tenant agrees to keep the Storage Space in a neat and
orderly fashion and to keep all stored items in cartons, file cabinets or other
suitable containers.
(3) The
Storage Space shall be made available to Tenant in broom clean condition.
Landlord has no obligation to make any improvement to the Storage Space other
than to install a single light fixture, a door with a lock and demising walls;
provided, however, that Tenant shall pay the costs of any demising work.
Tenant’s use of the Storage Space shall at all times be in compliance with the
provisions of this Lease.
(4) Landlord
may from time to time upon thirty (30) days prior notice to Tenant relocate, at
Landlord’s expense, any or all of the Storage Space to other storage areas in
the Building (“New Storage Space”) in which event the New Storage Space shall be
deemed to be the Storage Space hereunder. Landlord shall pay the actual and
reasonable expenses of physically moving Tenant’s property to the New Storage
Space.
6. Renewal Options.
(a) Tenant
shall have two (2) consecutive options to extend the Expiration Date for this
Lease of the Premises for five (5) years each as follows:
-3-
(i) from
the day after the Expiration Date of the Initial Term to the fifth anniversary
of such Expiration Date, hereinafter referred to as the “Second Expiration
Date,” (“First Renewal Option”) and
(ii) from
the day after the Second Expiration Date to the fifth anniversary of such Second
Expiration Date (“Second Renewal Option”).
Tenant’s
exercise of each option is subject to the following notice requirements: No
later than the date which is twelve (12) months prior to the Expiration Date of
the Initial Term for the First Renewal Option or the date which is twelve (12)
months prior to the Second Expiration Date for the Second Renewal Option,
Tenant, if it wishes to exercise the First or Second Renewal Option, as
applicable, shall give written notice (which notice shall be irrevocable on
Tenant’s part, but Tenant’s rights shall be subject to the provisions of this
Section 6) of the same to Landlord (the “First Renewal Notice” or “Second
Renewal Notice,” as applicable).
(b) The
Monthly Base Rent rate for the Premises during the First or Second Extension
shall equal the then-current Prevailing Market as agreed to by the parties
during the thirty (30) day period following Landlord’s receipt of the First
Renewal Notice or Second Renewal Notice, as applicable, or, if the parties are
unable to agree, then as determined pursuant to Subsection (c)(ii)
below.
(c) For
purposes hereof, the following terms shall have the following
meanings:
(i) “First
Extension” means the period commencing on the fifteenth (15th) anniversary of
the Commencement Date and ending on the fifth anniversary of the Expiration
Date; i.e., the Second Expiration Date. “Second Extension” means the period
commencing on the twentieth (20th) anniversary of the Commencement Date and
ending on the fifth anniversary of the Second Expiration Date.
(ii) “Prevailing
Market” means the Monthly Base Rent and provisions for Operating Expenses, Taxes
and electricity charges which are being offered or which would be offered by
Landlord and other landlords of comparable downtown Chicago highrise office
buildings to bona fide prospective tenants at that time, for leases with a
comparable term for comparable office space fully improved with then-building
standard office space improvements for general office purposes, taking into
account concessions which are or would be offered in renewals or expansions, as
the case may be, and all other relevant factors, including but not limited to
location of the space in question, the creditworthiness of Tenant and the age of
the Building. If Landlord and Tenant are unable to agree as to the
-4-
Prevailing
Market during the 30-day period following Landlord’s receipt of the First or
Second Renewal Notice, Prevailing Market shall be determined as
follows:
Within
ten (10) days after Landlord and Tenant determine that they cannot reach an
agreement as to Prevailing Market as provided above, Landlord and Tenant, at
their respective expense, shall each cause an Illinois licensed MAI real estate
appraiser not affiliated with either party with not less than ten years of
experience in the downtown Chicago market and then actively engaged in the real
estate appraisal business in such area to determine the Prevailing Market on a
basis consistent with the terms of this Lease, said determination to be made
within thirty (30) days of their appointment by Landlord and Tenant,
respectively. In the event that the determination differs by less than ten
percent (10%), the Prevailing Market shall be the average of the two. In the
event that the determination differs by more than ten percent (10%), then the
two appraisers shall select a third real estate appraiser with the aforesaid
qualifications within fifteen (15) days, the fees and expenses of which third
appraiser shall be paid fifty percent (50%) by Landlord and fifty percent (50%)
by Tenant. If the two appraisers cannot agree upon a third appraiser within said
fifteen (15)-day period, then either Landlord or Tenant may request (such
request to be made within ten (10) days after the end of such 15-day period)
that one be appointed by the local office of the American Arbitration
Association, such appointment to be made within ten (10) days after the request
therefor. Said third appraiser shall, within fifteen (15) days of his selection
(or appointment, as applicable), determine Prevailing Market, which
determination shall be made only by designating which of the two determinations
made by said appraisers selected by Landlord and Tenant most accurately reflects
Prevailing Market. The determination made in accordance with the foregoing shall
be final and binding on Landlord and Tenant.
(d) Tenant’s
right to exercise the Second Renewal Option is subject to and conditioned upon
Tenant’s valid exercise of the First Renewal Option.
(e) All
of the Premises as to which Tenant seeks to exercise the First or Second Renewal
Option must be contiguous, must include at least one entire floor (which must be
at the top or bottom of an elevator bank), and may include only one (1) partial
floor.
(f) See
Section 12 of this Rider for additional provisions.
-5-
7. Expansion
Options.
(a) Subject
to the provisions of this Section 7, Tenant shall have the following options
(each, an “Expansion Option”) to lease additional space in the Building (each,
an “Expansion Space”) on the terms and conditions set forth herein:
Option
|
Exercise
|
Lease
|
|||
No.
|
Location
|
Size of Option
Space
|
Date
|
Delivery
Date
|
Exhibit
|
1A
|
12th
Floor
|
Any
portion which
|
12/31/97
|
No
later than
|
F
|
becomes
available for
|
12/31/98
|
||||
lease
directly from
|
|||||
Landlord
prior to 12/31/98
|
|||||
1B
|
12th
Floor
|
The
remainder of the floor
|
12/31/1998
|
December
31, 1999
|
F
|
in
quarter-floor increments
|
|||||
so
long as the space not
|
|||||
being
leased by Tenant is
|
|||||
a
Marketable Xxxx
|
|||||
0X
|
00xx
Xxxxx
|
0.
One-third (1/3) of floor
|
1/1/2004
|
January
1, 2005
|
F
|
through
June 30,
|
|||||
2006
|
|||||
2.
One-third (1/3) of floor
|
1/1/2008
|
January
1, 2009
|
F
|
||
through
June 30,
|
|||||
2010
|
|||||
3.
One-third (1/3) of floor
|
1/1/2011
|
January
1, 2012
|
F
|
||
through
June 30,
|
|||||
2013
(provided that
|
|||||
Tenant
has
|
|||||
exercised
the First
|
|||||
Renewal
Option)
|
-6-
Option
|
Exercise
|
Lease
|
|||
No.
|
Location
|
Size of Option
Space
|
Date
|
Delivery
Date
|
Exhibit
|
2
|
20th
Floor
|
Up
to one (1) full floor in
|
4/1/2006
|
April
1, 2007
|
G
|
quarter-floor
increments
|
through
December
|
||||
so
long as the space not
|
31,
2008
|
||||
being
leased by Tenant is
|
|||||
a
Marketable Unit
|
|||||
3
|
21st
Floor
|
Up
to one (1) full floor in
|
1/1/2011
|
January
1, 2012
|
H
|
quarter-floor
increments
|
through
January 30,
|
||||
so
long as the space not
|
2013
(provided that
|
||||
being
leased by Tenant is
|
Tenant
has
|
||||
a
Marketable Unit
|
exercised
the First
|
||||
Renewal
Option)
|
|||||
4
|
21st
floor
|
28,631
rsf
|
11/1/97
|
30-60
days after
|
H,J
|
or
22nd
|
28,186
rsf
|
Tenant
completes
|
|||
floor
|
demolition
of the
|
||||
floor
and surrenders
|
|||||
possession
of same
|
|||||
to
Landlord
|
(b) The
exact size, location and timing of delivery of possession of each Expansion
Space shall be determined by Landlord in its sole discretion so long as the
Expansion Space meets the parameters hereinbefore set forth. With respect to
Option 4, the Expansion Space shall be the 21st floor unless Christie’s
International Catering Co., Ltd. has made a commitment by November 1, 1997 to
lease the 21st floor from Landlord, in which case the Expansion Space for Option
4 shall be the 22nd floor. Tenant shall exercise any Expansion Option by sending
written notice to Landlord (which notice shall be irrevocable on Tenant’s part,
but Tenant’s rights shall be subject to the provisions of this Section 7) of its
exercise of any Expansion Option no later than the applicable Exercise Date
(“Expansion Notice”).
(c) Tenant
shall pay Base Rent during the Initial Term for Expansion Space taken pursuant
to the Options 1A or 1B or 4 at a rate equal to Tenant’s then-current Base Rent
per rentable square foot pursuant to the schedule set forth in Section 1.1(8).
Tenant shall pay Base Rent for Expansion Space taken pursuant to any other
Expansion Option at the Prevailing Market as defined in Section 6(c)(ii)of this
Rider, taking into account the actual term of the lease of the Expansion Space.
Prevailing Market for purposes of this Section shall take into account the fact
that Landlord will install sprinklers in the any mid-rise or high-rise Expansion
Space: Any Expansion Space in the low-rise will not be required to
be
-7-
delivered
with sprinklers in place except for the following: If Tenant leases one-half a
floor or more, Landlord shall install the primary loop with heads turned up
until such time as the system becomes wet. Tenant understands that the preceding
reference to “the system” means the system not just for any low-rise Expansion
Space but for the entire low-rise portion of the Building (i.e., floors 1
through 11), and that the system for the low-rise portion of the Building shall
become wet according to Landlord’s plan for installation of sprinklers in the
Building, which may occur after delivery of possession of any low-rise Expansion
Space to Tenant. At such time as the system for the low-rise portion of the
Building becomes wet, Landlord shall, at its expense, change the ceiling and as
necessary and turn down the sprinklers in any low-rise Expansion Space of
one-half floor or more.
(d) Effective
on the commencement date (as hereinafter defined) of any Expansion Option, the
applicable Expansion Space shall be deemed added to the Premises and the
Rentable Area of the Premises and Tenant’s Share shall be increased accordingly.
Monthly Base Rent, Rent Adjustment Deposits and Rent Adjustments for the
Expansion Space (except for Expansion Space pursuant to Option 4) shall commence
on the commencement date for such Expansion Space, which shall be the earlier to
occur of ninety (90) days after Landlord delivers possession of the Expansion
Space to Tenant or the date Tenant occupies the Expansion Space for the purpose
of doing business, but as to Expansion Space taken pursuant to Option 1A, the
commencement date shall be no later than December 31, 1998. Monthly Base Rent,
Rent Adjustment Deposits and Rent Adjustments and the commencement date for
Expansion Space pursuant to Option 4 shall be four (4) months after delivery of
possession of such Expansion Space to Tenant. Landlord shall complete floor
levelling of such Option 4 Expansion Space prior to delivery of possession to
Tenant; it being agreed that all other Landlord work shall be completed by
Landlord concurrently with any Tenant Alterations being done by Tenant. If
Landlord does not complete its floor levelling until after delivery of the
Option 4 Expansion Space to Tenant, then such Landlord delay shall, on a
day-for-day basis for each day after the delivery date that Landlord has not
completed the floor levelling, be applied to reduce the period of any Tenant
Delay; and if there are no Tenant Delays, then such Landlord delay shall, on a
day-for-day basis, delay the January 31, 1999 date set forth in Section 15 of
this Rider. However, Tenant shall be subject, with respect to any Expansion
Space, to all of the terms, covenants and conditions of the Lease (except for
the payment of Monthly Base Rent and Tenant’s Share of Operating Expenses and
Taxes) as of the date possession of such Expansion Space is delivered to Tenant
if such delivery of possession is prior to the commencement date for the
Expansion Space.
(e) All
of the Expansion Space shall be tendered to and accepted by Tenant in its
“as-is” condition (subject to Landlord’s obligations, if any, with respect to
sprinklers as set forth in Subsection (c) above) and “as-built”
-8-
configuration
existing on the date Landlord delivers possession of the Expansion Space to
Tenant. Landlord shall provide Tenant with an improvement allowance of (i)
$35.00 per rentable square foot for Expansion Space taken pursuant to Option 1A,
(ii) $25.00 per rentable square foot for Expansion Space taken pursuant to
Expansion Option 1B and (iii) for each rentable square foot of Expansion Space
taken pursuant to Option 4, an amount equal to $35.00 multiplied by a fraction,
the numerator of which is number of months that Tenant leases such Expansion
Space during the Initial Term (e.g., the number of months starting with the
month in which the commencement date for such Expansion Space occurs) and the
denominator of which is 180. (The parties shall execute a Workletter Agreement
substantially similar to Exhibit B for any work which Tenant elects to do in any
such Expansion Space at the commencement of the term thereof, except no
“Landlord’s Work” (except for floor levelling for Expansion Space pursuant to
Option 4) shall be required thereunder other than installation of
sprinklers).
(f) With
respect to Option 1A Landlord shall notify Tenant within thirty (30) days after
any Expansion Space under Option 1A becomes legally available to lease or, at
Landlord’s option, such earlier time as Landlord shall be in a position to
project when such Expansion Space will be legally available to lease, advising
Tenant of such projected date.
(g) If
Tenant exercises any Expansion Option as to less than one (1) full floor, then
Tenant shall be required to pay for all Demising Work with respect to such
expansion.
(h) The
term for any Expansion Space shall be coterminous with the Term for the Initial
Premises under this Lease.
(i) See
Section 12 of this Rider for additional provisions.
8. Parking. Landlord shall cause
the operator (“Operator”) of the Building automobile parking facility to make
one hundred (100) monthly parking privileges (“Parking Privileges”) available to
Tenant upon occupancy of the Premises for the use of Tenant’s employees and/or
business invitees. Tenant shall: (a) pay the monthly charge for the Parking
Privileges at the prevailing rate charged by the Operator from time to time; (b)
contract with Operator for the Parking Privileges within thirty (30) days after
its occupancy of the Premises; and (c) follow the rules, regulations, terms and
conditions for such Parking Privileges as Landlord or Operator may establish
from time to time. If Tenant fails to pay the aforesaid monthly charge, Landlord
need no longer cause the Parking Privileges not paid for to be made available;
provided, however, that no default in connection with Tenant’s use of its
Parking Privileges shall be a Default under the Lease. However, if Tenant fails
to initially contract for or thereafter voluntarily reduces the number of its
Parking Privileges, Tenant shall retain the
-9-
right to
contract for the maximum number of spaces to which Tenant is entitled from time
to time on a first-come, first-served basis.
The
maximum number of Parking Privileges to which Tenant shall be entitled during
the Term shall be 1 Parking Privilege per 2,000 square feet of the
Premises.
Tenant
shall be entitled to designate one of its parking spaces as reserved. Landlord
shall xxxx such space as reserved but shall thereafter have no responsibility to
prevent unauthorized persons from parking in such reserved parking
space.
In
addition to the foregoing rights with respect to parking, Tenant shall have the
right to use fifty (50) parking spaces after 5:00 p.m. on business days and at
any time on non-business days so long as the spaces are vacated prior to 7:00
a.m. of the following day at a flat rate of $5.00 per car. Landlord shall have
the right to increase this flat rate by the amount of any increases in parking
taxes and/or the CPI. Increases in the CPI shall be calculated as follows: If
the CPI on any Adjustment Date shall be greater than the CPI for the
Commencement Date, the monthly charge for each Parking Privilege commencing on
the Adjustment Date shall be adjusted by adding an amount (the “CPI Escalation
Amount”) equal to the product obtained by multiplying: (a) the initial monthly
charge for each Parking Privilege, by (b) the percentage increase in the CPI
from the Commencement Date through the Adjustment Date. “Adjustment Date” shall
mean each January 1 during the Term. “CPI” shall mean the Consumer Price Index
for All Urban Consumers, All Items (Base year 1982-1984 = 100) published by the
United States Department of Labor, Bureau of Labor Statistics (or if a separate
Index is published by the Bureau of Labor Statistics for a metropolitan area
within 100 miles of the Property, then such metropolitan index). If the Bureau
of Labor Statistics substantially revises the manner in which the CPI is
determined, an adjustment shall be made in the revised index which would produce
results equivalent, as nearly as possible to those which would be obtained
hereunder if the CPI were not so revised. If the 1982-1984 average shall no
longer be used as an index of 100, such change shall constitute a substantial
revision. If the CPI becomes unavailable to the public because publication is
discontinued, or otherwise, Landlord shall substitute therefor a comparable
index based upon changes in the cost of living or purchasing power of the
consumer dollar published by a governmental agency, major bank, other financial
institution, university or recognized financial publisher. If the CPI is
available on a monthly (or alternating monthly) basis, the CPI for the months in
which (or immediately preceding, as the case may be) the Commencement Date and
Adjustment Date respectively occur shall be used.
Tenant
and its employees and invitees shall have access to the parking garage at all
times (i.e., 24 hours per day, seven (7) days per week, 365 days per year),
under such regulations as Landlord or Operator prescribes for security purposes,
and subject to temporary closings for necessary repairs. Any such regulations
shall be enforced and applied on a non-discriminatory basis.
-10-
9. Reduction
Options.
(a) Tenant
shall have the right to reduce the size of the Premises by up to one (1) full
floor on the highest or lowest floor of the Premises then being leased by Tenant
and leaving no more than one (1) partial floor in the Premises, such reduction
to be effective as of the last day of the fifth (5th) Lease Year (“First
Reduction Option”). Tenant shall also have the right to reduce the size of the
Premises by up to one (1) full floor on the highest or lowest floor of the
Premises then being leased by Tenant and leaving no more than one (1) partial
floor in the Premises, such reduction to be effective as of the last day of the
tenth (10th) Lease Year (“Second Reduction Option”). Tenant’s right to exercise
the First and Second Reduction Options shall be subject to and conditioned upon
Tenant’s satisfaction of all of the following terms and conditions:
(i) Landlord
receives notice of reduction from Tenant (which notice shall be irrevocable on
Tenant’s part, but Tenant’s rights shall be subject to the provisions of this
Section 9) as to Tenant’s exercise of the First Reduction Option no later than
the last day of the fourth (4th) Lease Year (“First Reduction Notice”). Together
with the First Reduction Notice, there shall be a payment by Tenant to Landlord
of the First Reduction Amount (as defined below). For any portion of the Initial
Premises plus Expansion Space (if any) leased by Tenant pursuant to Options No.
1A or 4 as set forth in Section 7 of this Rider, the First Reduction Amount
shall be equal to $78.14 per rentable square foot multiplied by the number of
rentable square feet of Initial Premises as to which Tenant is exercising the
First Reduction Option, plus $60.24 per rentable square foot multiplied by the
number of rentable square feet of Expansion Space leased by Tenant pursuant to
Option No. 1A and $59.93 per rentable square foot multiplied by the number of
rentable square feet of Expansion Space leased by Tenant pursuant to Option No.
4. For Expansion Space and Refusal Space other than Expansion Space leased by
Tenant pursuant to Options No. 1A or 4, the First Reduction Amount shall be
equal to the number of rentable square feet of Expansion Space and Refusal Space
as to which the First Reduction Option is being exercised multiplied by
Landlord’s actual unamortized costs (all of which shall be amortized over the
remaining Initial Term of the Lease at the commencement of the term of such
space, taking into account an interest component at the rate of ten percent
(10%) per annum, compounded monthly, and which costs shall include, without
limitation, brokerage commissions, legal fees, tenant improvement allowance,
rent abatements and other financial concessions or commissions, if any, incurred
by Landlord in connection with this Lease) and revenue shortfall plus an amount
equal to Base Rent, Taxes and Operating Expenses for four (4) months allocable
on a per rentable square foot basis for the actual portion of the Expansion
Space and Refusal Space as to which the First Reduction Option is being
exercised.
-11-
(ii) Landlord
receives notice of reduction from Tenant (which notice shall be irrevocable on
Tenant’s part, but Tenant’s rights shall be subject to the provisions of this
Section 9) as to Tenant’s exercise of the Second Reduction Option no later than
the last day of the ninth (9th) Lease Year (“Second Reduction Notice”). Together
with the Second Reduction Notice, there shall be a payment of the Second
Reduction Amount as defined below. For any portion of the Initial Premises plus
Expansion Space (if any) leased by Tenant pursuant to Options No. 1A or 4, as
set forth in Section 7 of this Rider, the Second Reduction Amount shall be equal
to $57.07 per rentable square foot multiplied by the number of rentable square
feet of Initial Premises as to which Tenant is exercising the Second Reduction
Option, plus $45.93 per rentable square foot multiplied by the number of
rentable square feet of Expansion Space leased by Tenant pursuant to Option No.
1A and $45.67 per rentable square foot multiplied by the number of rentable
square feet of Expansion Space leased by Tenant pursuant to Option No. 4. For
Expansion Space and Refusal Space other than Expansion Space leased by Tenant
pursuant to Options No. 1A or 4, the Second Reduction Amount shall be equal to
the number of rentable square feet of Expansion Space and Refusal Space as to
which the Second Reduction Option is being exercised multiplied by Landlord’s
actual unamortized costs (all of which shall be amortized over the remaining
Initial Term of the Lease at the commencement of the term of such space taking
into account an interest component at the rate of ten percent (10%) per annum,
compounded monthly, and which costs shall include, without limitation, brokerage
commissions, legal fees, tenant improvement allowance, rent abatements and other
financial concessions or commissions, if any, incurred by Landlord in connection
with this Lease) and revenue shortfall plus an amount equal to Base Rent, Taxes
and Operating Expenses for four (4) months allocable on a per rentable square
foot basis for the actual portion of the Expansion Space and Refusal Space as to
which the Second Reduction Option is being exercised.
(iii) It
is understood and agreed that the First and/or Second Reduction Amount (as
applicable) is being paid as and for a termination fee resulting from the early
termination of this Lease for the Reduction Space and not as a penalty. The
First or Second Reduction Amount (as the case may be) shall be increased to
reflect the Landlord’s unamortized actual costs (including, without limitation,
brokerage commissions, legal fees, rent abatements, tenant improvement allowance
and other financial concessions or commissions, if any) and revenue shortfall
plus an amount equal to Base Rent, Taxes and Operating Expenses for four (4)
months for that part of any space which was added to the Initial Premises (other
than Expansion Space and Refusal Space which shall be governed by subsections
(i) and (ii) above) which is subject to the Reduction Option; such costs having
been amortized over the term of the Lease of such additional space taking into
account an interest component at the rate of ten percent (10%) per annum
compounded monthly.
-12-
(iv) The
Reduction Space shall be a Marketable Unit (as defined in Section 10.1 of the
Lease), shall be returned to Landlord in accordance with Article 12 of the
Lease, and shall be located on either the highest or lowest floor then being
leased by Tenant.
(b) Tenant
shall remain obligated and liable for all Rent and other obligations (including
without limitation requirements as to the condition of the Reduction Space upon
surrender of possession) accrued under this Lease with respect to the First or
Second Reduction Space (as applicable) up to and including the termination date
established pursuant to the First or Second Reduction Notice and the applicable
Reduction Amendment (even if xxxxxxxx for same occur subsequent to such
termination date). All Rent reductions shall be calculated on a uniform per
rentable square foot basis (excluding any Refusal Space, Expansion Space or
other space added to the Initial Premises).
(c) Tenant
shall, at its expense, perform all work required to demise the Reduction Space
from the remaining balance of the Premises, including without limitation, the
Demising Work. All of the Demising Work shall be performed prior to the
effective date of the subtraction of the First or Second Reduction Space (as
applicable) from the Premises. Landlord reserves the right to perform, at
Tenant’s reasonable expense, any of the preceding work which affects the
mechanical or utility systems or structure of the Building.
(d) See
Section 12 of this Rider for additional provisions.
10. Termination
Option.
(a) Tenant
shall have the right to terminate the Lease for the Premises prior to the
scheduled Expiration Date (“Termination Option”), such termination to be
effective as of the last day of the tenth (10th) Lease Year (“Early Termination
Date”) provided that Tenant satisfies all of the following terms and conditions
:
(i) Landlord
receives notice of termination (“Termination Notice”) from Tenant (which notice
shall be irrevocable on Tenant’s part, but Tenant’s rights shall be subject to
the provisions of this Section 10) no later than the last day of the ninth (9th)
Lease Year; and
(ii) Together
with the Termination Notice there shall be a payment by Tenant to Landlord of
that portion of the Termination Amount (as defined below) consisting of four (4)
months’ Base Rent, Taxes and Operating Expenses for the entire Premises,
including any Expansion Space and Refusal Space. The balance of the Termination
Amount shall be paid sixty (60) days prior to the Early Termination Date. The
Termination Amount shall be $57.07 per
-13-
rentable
square foot of the Initial Premises, $45.93 per rentable square foot of
Expansion Space (if any) leased by Tenant pursuant to Option No. 1A and $45.67
per rentable square foot of Expansion Space (if any) leased by Tenant pursuant
to Option No. 4, as set forth in Section 7 of this Rider, plus, with respect to
any Expansion Space and Refusal Space other than Expansion Space leased by
Tenant pursuant to Options No. 1 A or 4, an amount equal to Landlord’s actual
unamortized costs with respect to such space, including, without limitation,
brokerage commissions, legal fees, rent abatements, tenant improvement
allowances and other financial concessions or commissions, if any incurred by
Landlord (such costs being amortized over the term of the Lease of such
additional space taking into account an interest component at the rate of ten
percent (10%) per annum compounded monthly), and revenue shortfall plus an
amount equal to Base Rent, Taxes and Operating Expenses for four (4) months for
such space. It is understood and agreed that the Termination Amount is being
paid as and for a termination fee resulting from the early termination of this
Lease and not as a penalty.
(b) Tenant
shall remain obligated and liable for all Rent and all other obligations accrued
under this Lease up to and including the Early Termination Date (including
without limitation requirements as to the condition of the Premises upon
surrender of possession) even if xxxxxxxx occur subsequent to the Early
Termination Date.
(c) See
Section 12 of this Rider 12 for additional provisions.
11. Right of First
Refusal.
(a) Tenant
shall have the following continuing rights of first offer/refusal (each, a
“ROFR”) to lease the following space:
(i) During
the Initial Term of this Lease but ending two (2) years prior to the Termination
Date of the Term, any or all space in the mid-rise elevator bank and floors 21
(unless Christie’s International Catering Co., Ltd. has made a commitment by
November 1, 1997 to lease the 21st floor from Landlord, in which case floor 24
shall be substituted for floor 21 hereunder), 22 or 23 (the “Mid/High-rise
Refusal Space, and
(ii) During
the period commencing on the Commencement Date and ending on August 31, 2003,
any or all space on floors 2 through 11 (the “Low-rise Refusal
Space).
The term
“Refusal Space” is used herein for provisions which apply to both the
Mid/High-rise Refusal Space and the Low-rise Refusal Space.
-14-
Such
leasing shall be on the terms and conditions set forth in this Section 11;
provided, however, that Tenant’s rights under this ROFR with respect to the
Low-rise Refusal Space shall not apply to any space wherein an existing tenant
of such space wishes to extend or renew the term of its lease or expand its
premises, whether such renewal, extension or expansion is pursuant to an option
contained in such lease or otherwise. When Landlord has a prospective tenant
(“Prospect”) interested in leasing all or any part of any Refusal Space,
Landlord shall, prior to or simultaneously with transmission of the Prospect
Terms (as hereinafter defined) to the Prospect, so advise Tenant in writing (the
“Advice”) of the terms upon which Landlord is willing to lease the Refusal Space
to the Prospect (the “Prospect Terms”), and which Advice shall set forth the
date on which the Refusal Space shall be available for lease by Tenant. If the
term of the lease for the Refusal Space set forth in the Prospect Terms is
greater than the remaining Term of this Lease, including any exercised renewal
options, then Landlord and Tenant shall, during the five or ten business day
period (as applicable, pursuant to subsection (b) below) prior to the date when
Tenant must exercise its rights hereunder, negotiate in good faith as to the
rental terms to be applicable to the Refusal Space. If’ Tenant elects to lease
the Refusal Space by sending the Notice of Exercise, then such Notice of
Exercise shall specify whether Tenant is electing to lease the Refusal Space on
the Prospect Terms or on the rental terms agreed to by Landlord and Tenant, if
such an agreement was reached. If the term offered to the Prospect is less or
equal to the remaining Term of this Lease, including any exercised renewal
options, then the Prospect Terms shall not apply and the terms shall be
Prevailing Market as defined in Section 6(c)(ii) of this Rider. Subject to the
provisions of this Section 11, Tenant shall have the right to lease all but not
less than all of the Refusal Space.
(b) The
ROFR shall be exercised by Tenant by delivery to Landlord of written notice
(which notice shall be irrevocable on Tenant’s part, but Tenant’s rights shall
be subject to the provisions of this Section 11) of exercise (the “Notice of
Exercise”) within ten (10) business days after the date of the Advice for the
Mid/High-rise Refusal Space and within five (5) business days after the date of
the Advice for the Low-rise Refusal Space.
(c) The
term for the Refusal Space shall be coterminous with the Term of this Lease,
including any exercised renewal options. If Tenant is leasing the Refusal Space
on the Prospect Terms and the term offered to the Prospect is greater than the
then-remaining Term of this Lease, including any exercised renewal options, then
in order to make the term of the Refusal Space coterminous with this Lease,
Landlord shall prorate concessions (including, but not limited to, Landlord work
and rent abatement) to Tenant with respect to the Refusal Space in order to
achieve the same net effective rent to Landlord whether the Refusal Space is
leased to Tenant or to the Prospect. Rent for the Refusal Space
-15-
shall
commence on the date provided therefor in the Advice. Notwithstanding the
commencement date which is established for any Refusal Space, Tenant shall be
subject, with respect to such Refusal Space, to all of the terms, covenants and
conditions of the Lease (except for the payment of Monthly Base Rent and
Tenant’s Share of Operating Expenses and Taxes) as of the date possession of
such Refusal Space is delivered to Tenant if such delivery of possession is
prior to the commencement date for such Refusal Space.
(d) The
Refusal Space shall be accepted by Tenant in its as-is condition and as-built
configuration existing on the earlier of the date Tenant takes possession of the
Refusal Space or as of the date the term for such Refusal Space commences,
except as may be expressly provided in the Advice and except as follows:
Landlord shall deliver Mid/High-rise Refusal Space with sprinklers in place. Any
Low-rise Refusal Space will not be required to be delivered with sprinklers in
place except for the following: If Tenant leases one-half a floor or more,
Landlord shall install the primary loop with heads turned up until such time as
the system becomes wet. Tenant understands that the preceding reference to “the
system” means the system not just for any Low-rise Refusal Space, but for the
entire low-rise portion of the Building (i.e., floors 1 through 11), and that
the system for the low-rise portion of the Building shall become wet according
to Landlord’s plan for installation of sprinklers in the Building, which may
occur after delivery of possession of any Low-rise Refusal Space to Tenant. At
such time as the system for the low-rise portion of the Building becomes wet,
Landlord shall, at its expense, change the ceiling grid as necessary and turn
down the sprinklers in any Low-rise Refusal Space of one-half floor or
more.
(e) The
rights of Tenant under this Section 11 with respect to the Mid/High-rise Refusal
Space shall terminate on the date which is ten (10) business days after the date
of the Advice, if Landlord is obligated to send an Advice, and Tenant does not
deliver a Notice of Exercise to Landlord within said ten (10) business day
period. The rights of Tenant under this Section 11 with respect to the Low-rise
Refusal Space shall terminate on the date which is five (5) business days after
the date of the Advice, if Landlord is obligated to send an Advice, and Tenant
does not deliver a Notice of Exercise to Landlord within said five (5) business
day period. Notwithstanding the foregoing, Tenant’s ROFR shall remain in effect
as to future Refusal Space, provided that Landlord is then obligated to send an
Advice.
(f) If
Landlord has a Prospect for any Refusal Space and Landlord is not obligated to
send Tenant an Advice under subsections (g) or (h) below or Section 12 of this
Rider, Landlord may lease the Refusal Space to the Prospect or any other
prospective tenants on whatever terms Landlord deems appropriate and Tenant
shall have no further rights with respect to the Refusal
-16-
Space
under this Section 11. In addition, where Landlord sends an Advice and Tenant
does not exercise its rights hereunder, Landlord may lease the Refusal Space to
the Prospect or any other prospective tenants, provided that Landlord shall
re-offer the Refusal Space to Tenant following the Advice procedure hereinbefore
set forth prior to entering into a lease with the Prospect or any other prospect
where the bottom line rent to be paid by the Prospect or other prospective
tenant: (i) for the Mid/High-rise Refusal Space, is less than 90% of the bottom
line rent contained in the Prospect Terms or the bottom line rent is $1.00 per
square foot less than the bottom line rent contained in the Prospect Terms, and
(ii) for the Low-rise Refusal Space, is more than $5.00 per square foot and the
deviation is at least 10% less than the bottom line rent contained in the
Prospect Terms, or if the bottom line rent is equal to or less than $5.00 per
square foot and the deviation is at least 20% less than the bottom line rent
contained in the Prospect Terms. The term “bottom line rent” as used in the
preceding sentence shall mean the net base rent, using a 10% discount rate,
calculated as described below. So, for example, if the net base rent for the
Refusal Space set forth in the Advice for a ten year term is $10.00 per square
foot, with a $25.00 per square foot allowance for tenant improvements, six
months of base rent abatement at the start of the ten year term, an additional
$5.00 per square foot allowance for tenant’s moving expenses, etc. and leasing
commissions of $7.50 per square foot, the “bottom line rent” would be $3.28 per
square foot, computed as follows:
10
Year Term
|
|
10%
Discount Rate
|
|
Present
Value/S.F.
|
|
Net
Base Rent $10.00/S.F.
|
$10.00
|
Less:
Tenant Improvements ($25.00/S.F.)
|
(3.97)
|
Abatement
(6 months)
|
(.77)
|
Additional
allowance ($5.00/S.F.)
|
(.79)
|
Leasing
commissions ($7.50/S.F.)
|
(1.19)
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Bottom
Line Rent
|
$3.28
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(g) Notwithstanding
anything contained herein to the contrary, Tenant’s rights under this Section 11
shall end two (2) years prior to the Termination Date of the Term.
(h) Notwithstanding
anything contained herein to the contrary, if Tenant exercises a ROFR for any
space which is also covered by Tenant’s Expansion Options as set forth in
Section 7 of this Rider, then Tenant’s leasing of such space shall be governed
by the terms and conditions contained in Section 7 with respect to such space
rather than by the terms and conditions of this Section 11.
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(i) See
Section 12 of this Rider for additional provisions.
12. General Option Provisions.
Notwithstanding anything contained elsewhere in this Rider to the contrary, the
following additional provisions shall apply to and govern Tenant’s exercise of
any option or election contained in Sections 6, 7, 9, 10 or 11 of this
Rider:
(a) Tenant’s
purported exercise of any option is subject to the condition (which may be
waived by Landlord in its sole discretion) that at the time Landlord receives
any notice by which Tenant seeks to exercise an option or election (and
additionally, for the ROFR, at the time that Landlord would otherwise be
required to send Tenant an Advice), no monetary Default has occurred which
remains uncured and no non-monetary default has occurred which Tenant is not
then diligently and continuously attempting to cure.
(b) Except
as expressly modified by the terms of the specific option or election being
exercised, all of the provisions, terms and conditions of this Lease shall apply
to any additional space added to the Premises and to any extension of the Term,
except that no inducements, allowances or credits set forth in the Lease with
respect to the commencement of the Initial Term shall apply
thereto.
(c) If
Tenant is able to and properly exercises the applicable option or election,
Landlord shall prepare an amendment (the “Option Amendment”) to reflect the
changes in terms of the Lease resulting from such exercise, including without
limitation any increase or decrease in the size of the Premises, changes in Base
Rent, Rent Adjustment Deposits, Rent Adjustments, Rentable Area of the Premises,
Tenant’s Share and other appropriate terms. A copy of the Option Amendment shall
be:
(i) sent
to Tenant within a reasonable time after Landlord receives Tenant’s notice
exercising the option or election; and
(ii) executed
by Tenant and returned to Landlord within thirty (30) days after receipt thereof
by Tenant. Notwithstanding the foregoing, an otherwise valid exercise of the
option or election by Tenant shall, at Landlord’s option, be fully effective and
binding on Landlord and Tenant, whether or not the Option Amendment is executed
(including without limitation, any increase or decrease in the size of the
Premises, changes in Base Rent, Rent Adjustment Deposits, Rent Adjustments,
Rentable Area of the Premises, Tenant’s Share and other appropriate
terms).
(d) Notwithstanding
anything contained herein to the contrary, Tenant’s rights to exercise any
option or election shall terminate, at Landlord’s
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election,
if, after Tenant’s delivery of the notice exercising the option or election but
prior to the effective date of the option or election a Default occurs under the
Lease.
(e) Tenant
agrees that time is of the essence in connection with the valid exercise of its
rights under any option or election.
(f) The
rights of Tenant under each option are personal to the original Tenant named in
this Lease and are not assignable to any other person or entity, except as
otherwise provided in Section 10.6.
(g) Base
Building work consisting of the core loop for the sprinkler system is to exist
or be performed by Landlord, at Landlord’s expense, in any Expansion or Refusal
Space subject to this Section 12.
13. After-hours HVAC. The current
rates for after-hours HVAC usage for the Building as of the date of this Lease
are as follows (which rates are subject to increase or decrease by Landlord
provided that such increases or decreases shall be reasonable and correspond to
increases or decreases in Landlord’s actual out-of-pocket utility or energy
costs, labor expenses, water costs and costs of chemicals but not including any
profit to Landlord):
(a) Air
conditioning only: $139.03 per hour for floors 1 through 11 and $181.88 per hour
for floors 12 through 20;
(b) Heating
only: $116.31 per hour for floors 1 through 11 and $153.88 per hour for floors
12 through 20; and
(c) Ventilation
only: $89.93 per hour for floors 1 through 11 and $127.86 per hour for floors 12
through 20.
Such
after-hours charges shall be divided proportionately among all tenants in the
applicable zone (i.e., floors 1 through 11 or 12 through 20) requesting the
after-hours service.
14. Fire Stairwell. Tenant and its
agents and employees shall have access to, and the right to use (so long as such
use is permitted by applicable codes), on a non-exclusive basis, the fire
stairwell for movement between the floors of Tenant’s Premises. Tenant shall
have the right to paint and/or carpet the fire stairwell provided that such
alterations have been approved by Landlord and are permitted by all applicable
laws, regulations and codes, including, without limitation, the building and
fire safety codes of the City of Chicago. Further, in connection with Tenant’s
use of said stairwell, Tenant shall, at its sole option and expense, install a
card reader system approved by Landlord so as to prevent non-Building personnel
from accessing the Premises floors from such stairwell. Tenant shall maintain
all improvements made by Tenant in good, safe condition and repair throughout
the Term. Provided that Tenant has exercised its rights to improve the fire
stairwell, for purposes of Tenant’s obligations under Article 17 of the Lease,
the Premises shall be deemed to include
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the fire
stairwell with respect to any claims arising out of Tenant’s failure to maintain
the improvements in the fire stairwell made by Tenant in good, safe condition
and repair. Provided that Tenant has exercised its rights to use the fire
stairwell, for purposes of Tenant’s obligations under Article 17 of the Lease,
the Premises shall be deemed to include the fire stairwell with respect to any
claims arising out of the use of the fire stairwell by Tenant, its agents or
employees or invitees.
15. Termination of Existing Lease.
The Existing Lease shall be deemed to be terminated and Tenant agrees to
surrender possession of the Existing Premises in the condition required by the
Existing Lease upon the earlier to occur of the date Tenant occupies the
Premises under this Lease (other than for purposes of completing Tenant’s Work)
and January 31, 1999, said January 31, 1999 to be extended for Force Majeure and
Landlord delays (as provided in Section 1 of Exhibit B and Section 7(d)) but not
for Tenant Delays.
16. Name of Building. As of the
Commencement Date, the Building shall be known as KPMG Peat Marwick Plaza, Three
Illinois Center or 000 Xxxx Xxxxxx Xxxxx. Landlord agrees that it shall not
change the name of the Building without Tenant’s consent unless Tenant has
assigned the Lease other than to an Affiliate or occupies less than 50% of the
Premises, and the portion of the Premises not occupied by Tenant is sublet for
all or substantially all of the Term. Notwithstanding the foregoing, for so long
as Tenant is occupying more space in the Building than any other tenant, Tenant
shall retain its Building name and exterior sign rights (i.e., Tenant shall
retain such rights until another tenant leases more space in the Building than
Tenant is then leasing).
All of
the rights set forth in this Section 16 are personal to KPMG Peat Marwick LLP
and shall not be exercisable by any other person or entity, regardless of
whether or not such person or entity has succeeded to some or all of Tenant’s
other rights under this Lease.
17. Tenant’s Exculpation.
Notwithstanding anything to the contrary provided in this Lease, it is
specifically understood and agreed that neither the constituent members of
Tenant (including, without limitation, the officers, members, directors,
partners and trustees of Tenant), nor their respective successors shall be
personally liable for the performance of Tenant’s obligations under this Lease,
and that Landlord shall look solely to Tenant to enforce Tenant’s obligations
hereunder and shall not seek any damages (including consequential damages)
against any of the other parties hereinabove described in this sentence. The
foregoing limitation of liability shall be noted in any judgment secured against
Tenant. The foregoing provisions of this subsection shall be applicable with
respect to KPMG Peat Marwick LLP (and its successors by merger, consolidation or
otherwise) only and shall not apply to any other person or entity including,
without limitation, its assignees, other than an Affiliate to which this Lease
is assigned. In no event shall any officers, directors, trustees, partners or
constituent members of Tenant be liable for consequential damages arising from
this Lease.
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18. Publicity. Landlord and Tenant
shall mutually and reasonably agree upon any and all information to be conveyed
to the media and/or business community whether in the form of formal or informal
discussions, press releases, direct mail or broadly distributed announcements
regarding discussions, negotiations, lease signing, occupancy by Tenant or
subsequent discussions or agreements.
19. Satellite Dish. Strictly
subject to the terms and conditions hereof, Tenant is hereby granted a
non-exclusive license during the Term to install; repair, maintain and remove
telecommunication equipment to include but not be limited to parabolic antenna
(e.g., a satellite dish) with a maximum diameter of approximately eighteen
inches (18”) on the roof of the Building. Tenant shall install said equipment
and cables solely in a location designated by Landlord (not to exceed 500 square
feet on the roof and one (1) 1-inch cable in the riser space in a telephone
closet) and in a manner and pursuant to plans (the “Plans”) approved in writing
in advance by Landlord, which approval shall not be unreasonably withheld,
conditioned or delayed. In no event shall the telecommunication equipment or
related equipment or cables be visible from any of the streets or sidewalks
adjacent to the Building. Tenant shall use reasonable efforts to provide that
the equipment complies with the reasonable architectural standards established
by Landlord. All installation, repair, maintenance and removal work shall be
performed by contractors approved in advance by Landlord, which approval shall
not be unreasonably untitled, conditioned or delayed. All costs of installation
(including additional coring, power or conduit, if necessary) shall be at
Tenant’s expense. Tenant shall employ the roofer designated by Landlord in
connection therewith so that the warranty on the roof is not impaired or reduced
in any way as a result of such installation, repair, maintenance or removal
work. In no event shall Tenant install or replace any equipment which differs
from that described in the Plans without Landlord’s consent which consent shall
not be unreasonably withheld, conditioned or delayed. Tenant shall promptly
provide Landlord with such other information concerning the equipment and cables
(collectively, the “System”) and the installation thereof, as Landlord may
reasonably request from time to time. Tenant shall deliver to Landlord as soon
as practicable after completion of the installation of the System two sets of
“as built” plans for the System. All of the work shall be performed by Tenant
and its contractors in a safe, good and workmanlike manner, strictly in
conformance with all applicable Laws, including without limitation, the Chicago
Building Code and zoning ordinances, as well as the commercially reasonable
recommendations of Landlord’s casualty insurers. Tenant acknowledges and agrees
that Landlord has made no representation or warranty of any land as to (i) the
suitability of any location approved by Landlord for any portion of the System
for Tenant’s intended use thereof or (ii) the conformance of the Plans with
zoning or any other applicable Law; and no approval by Landlord of the Plans or
any other matter requested by Tenant shall be construed to create any such
representation or warranty. If Landlord determines that it is reasonably
necessary to have engineering, architectural or similar services performed on
its behalf in reviewing the Plans or otherwise in connection with the
installation, operation, repair, maintenance or removal of the System (or any
portion thereof), Tenant shall reimburse Landlord for the reasonable cost
thereof (limited to Landlord’s actual direct costs) upon receipt of each xxxx
therefor.
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Tenant
shall, at its sole cost and expense, obtain and maintain all governmental
permits, licenses and approvals necessary in order to install, operate, maintain
or remove the System. Tenant shall comply with all laws and regulations in
connection with the installation, operation, maintenance and removal of the
System.
Tenant
shall, at its sole cost and expense, maintain the System in a clean, safe and
good working order and repair and shall make replacements of any portion of the
System when necessary. However, in no event shall any replacement parts
(including any replacement antenna) be materially different (including as to
shape, size or color) from those originally installed pursuant to this Section
without Landlord’s prior written approval thereof in each instance, which
approval shall not be withheld, delayed or conditioned. Tenant shall routinely
inspect the System. All work and inspections performed by Tenant and its
contractors shall be done in a safe, good and workmanlike manner. At or before
the end of the Term (due to the lapse of time or otherwise), Tenant shall, at
its sole cost and expense, remove the entire System (except such portions of the
cables, any equipment and/or any electricity meters or submeters as Landlord may
specify in writing to Tenant, which items shall remain in the Building after the
Term and then become Landlord’s property without any payment therefor being due
Tenant) and repair any damage to the Building caused thereby.
Tenant
shall pay for all utilities consumed in the installation, operation, maintenance
and removal of the System. If required by Landlord, Tenant shall, at its sole
cost and expense, cause a separate electricity meter or submeter to be installed
to measure the electrical consumption of the System, which meter shall be part
of the System and installed in a location approved by Landlord.
Except in
the event of an emergency, Tenant shall give Landlord reasonable advance notice
each time access to the Building roof or telephone closet required by Tenant or
its contractors in connection with the installation, inspection, repair,
operation, maintenance or removal of the System. Landlord may require Tenant’s
employees or contractors to be accompanied by Building personnel while on the
roof or in other non-common areas of the Building outside of the
Premises.
Except to
the extent caused by the acts, omissions or wilful misconduct of Landlord or its
agents, employees or contractors, Tenant shall indemnify, defend (with counsel
reasonably satisfactory to Landlord) and hold harmless the Landlord and the
Indemnitees from and against any claim of liability, loss, cost, damage or
expense of any nature whatsoever (including without limitation, reasonable
attorneys’ fees and expenses), including without limitation, injury to persons,
damage to the Building, damage to any other property and consequential damages,
resulting from or arising out of (i) the installation, inspection, repair,
operation, maintenance, existence or removal of the System or any part thereof,
or (ii) any act or omission of Tenant, its employees, agents or contractors in
connection with the System or any part thereof.
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Without
limiting the generality of this Section, the insurance policies Tenant is
obligated to maintain pursuant to this Lease shall also cover the System, both
as to casualty and liability policies.
Tenant
and each of its contractors shall assume responsibility for the prevention of
accidents to its employees and agents and shall take all reasonable safety
precautions with respect to any work to be performed in or about the Building
and shall comply with all reasonable safety measures initiated by Landlord and
with all applicable Laws for the safety of persons or property. Tenant shall,
and shall advise its contractors to, report to Landlord any injury to any of its
employees or agents and shall furnish Landlord a copy of the accident report
filed with its insurance carrier promptly after its occurrence.
In no
event shall the System or its operation interfere with the use of any other
antennas or equipment or communications system on or at the Building, nor shall
Landlord permit any other system installed after Tenant’s System is installed to
interfere with the operation of Tenant’s System.
Commencing
on the date that Tenant begins installing the System and ending on the date that
Tenant removes the System (if removal is required by Landlord) and repairs any
damage to the Building caused by such removal, Tenant shall pay Landlord
additional rent hereunder as hereinafter provided. Commencing on the
above-described commencement date and ending twelve (12) full calendar months
thereafter, the monthly additional rent in connection with the System shall be
$500. For each subsequent 12-month period, the monthly rent shall increase to
104% of the monthly rent for the preceding 12-month period.
Landlord
shall have the right upon thirty (30) days prior written notice to relocate the
System so long as such relocation does not unreasonably interfere with Tenant’s
communication service. Since relocation shall be at Landlord’s expense, if the
reason for such relocation was reasonably within Landlord’s control; otherwise,
such relocation shall be at Tenant’s expense.
The
System is to be used for communication for Tenant’s business only and no part of
the System or services provided by the System shall be resold.
From and
after the date of this Lease, Landlord will not itself and will not allow any
other tenant or third party to install any systems or devices in or on the
Building that would unreasonably interfere with the operation of the
System.
20. Consents/Approvals. Wherever
the consent or approval of either party is required or requested to be given
under this Lease, the party whose consent or approval is required or requested
shall not unreasonably withhold, condition or delay such consent or approval,
provided, however, that any more specific provisions with respect to any
particular consent or approval which is required or requested shall control over
this Section.
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21. Memorandum of Lease. This
Lease shall not be recorded by either Landlord or Tenant. However, either party
may request that a memorandum of this Lease be recorded in a form reasonably
acceptable to both parties. The requesting party shall pay all costs of
recording. In the event of such recordation, Tenant shall deposit with Landlord
a Discharge of Lease substantially in the form attached hereto as Exhibit K
(revised to reflect any changes to the Initial Premises during the Term) to be
held by Landlord in escrow until the Lease has been terminated. Upon such
termination, Landlord shall have the right, at its expense, to record such
Discharge of Lease.
In
addition, in the event that a memorandum of leave has been recorded and the
Initial Premises are thereafter expanded or reduced pursuant to options
contained in this Lease or otherwise, either party may request that an amendment
to the memorandum of lease be recorded in a form reasonably acceptable to both
parties. The requesting party shall pay the costs of recording.
22. Self-Help by Tenant. If, in
Tenant’s reasonable opinion, “self-help” to cure a default by Landlord (such
self-help to be limited to repairs to or remedial action within the Premises) is
necessary in an emergency situation to prevent significant physical damage to
Premises or a significant interruption in the operation of the Tenant’s
business, Tenant may exercise such self-help after giving Landlord such notice
of Tenant’s intent to exercise the intended self-help as is reasonable under the
circumstances (including oral notice). Such self-help by Tenant shall be limited
to non-structural repairs or remedial action within the Premises which does not
affect other tenants, the Common Areas or the utility, mechanical, life-safety
or other systems of the Building outside of the Premises. Tenant shall have the
right to recover the reasonable cost of such self-help from Landlord upon
Tenant’s request for reimbursement, which request shall be accompanied by
receipted bills or other documentation evidencing the cost of such self-help. If
Landlord fails to reimburse Tenant within thirty (30) days of Tenant’s request
for reimbursement, Tenant shall have: (a) the right to offset the cost of such
self-help against the Monthly Base Rent next coming due, provided that the
amount of such offset shall not exceed one (1) month’s Monthly Base Rent at the
rate in effect at the time of such self-help, and (b) the right to seek a
judgment against Landlord for the amount of such reimbursement from any court of
competent jurisdiction.
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