CORPORATE PLACE I STANDARD FORM OFFICE LEASE AGREEMENT
Exhibit
10.2
CORPORATE
PLACE I
STANDARD
FORM
THIS
OFFICE LEASE AGREEMENT, is made as of this sixteenth day of March, 2007, by
CORPORATE PLACE I BUSINESS TRUST ("Landlord"), and COSTAR GROUP, INC., a
Delaware corporation ("Tenant").
Lease
IN
CONSIDERATION of the Rent hereinafter reserved and the agreements set forth
in
the General Terms and Conditions, and any and all Exhibits and Riders hereto,
as
well as any other schedules or attachments hereto, Landlord hereby leases to
Tenant and Tenant rents from the Landlord the Premises, located in the Building
within the Center, for the Term. Landlord and Tenant agree as
follows.
1. Summary
of Lease Terms; Summary of Certain Defined Words and
Phrases.
The
following is a summary of certain of the terms, defined words and phrases of
this Lease. These shall have the following meanings, when used in the foregoing
grant and in the following Sections, Subsections, Exhibits and Rider, in the
attached General Terms and Conditions of Lease, and in all the other schedules
or attachments, and are in addition to the definitions contained in Section
23
of the General Terms and Conditions to Lease.
1.1. Advance
Rent: $63,334.46,
representing the Monthly Installment of Basic Rent for the first month of the
Term.
1.2. Base
Operating Costs:$5.60
per
square feet of the Premises ($181,109.60).
1.3. Base
Taxes:
The
Taxes assessed in the Tax Year which commenced or which commences July 1,
2007.
1.4. Basic
Rent: The
annual sum of $760,013.50 payable in equal consecutive monthly installments
of
$63,334.46
with
respect to the first Lease Year of the Term, thereafter subject to the Basic
Rent Adjustment as provided in Section 5.2 of the General Terms and Conditions
to Lease.
1.5. Basic
Rent Adjustment: For
the
second and each successive Lease Year, three percent (3.0%). Basic Rent shall
be
payable during the Term in accordance with the following schedule:
Lease
Year
|
Annual
Basic Rent
|
Monthly
Installment
|
1
|
$760,013.50
|
$63,334.46
|
2
|
$782,813.91
|
$65,234.49
|
3
|
$806,298.32
|
$67,191.53
|
4
|
$830,487.27
|
$69,207.27
|
5
|
$855,401.89
|
$71,283.49
|
1.6. Building: The
building situate within the Center and having the address of 0000 Xxxxxxxxx
Xxxxx, Xxxxx Xxxxx, Xxxxxxxx 00000, as shown on Exhibit
A-1,
and
containing 75,687 square feet as of the date hereof.
1.7. Center: That
certain office/industrial development consisting of a parcel of land containing
5.02667 acres, more or less, and shown and designated as Lot 105A on a plat
entitled “First Amended Plat Corporate Place”, which plat is recorded among the
Land Records of Baltimore County, Maryland as Plat SM No. 74, folio 38, and
including the Building and all other buildings or other improvements now
existing or hereafter to be constructed thereon, all generally as shown on
Exhibit
A-1.
1.8. Commencement
Date: The
date
upon which Landlord tenders possession of the Premises to Tenant following
Substantial Completion of the Leasehold Improvements, as further provided in
Section 3 of the General Terms and Conditions to Lease.
1.9. Common
Area Factor:
12% of
the area of the Premises measured as provided in Section 1 of the General Terms
and Conditions to Lease and in accordance with the BOMA Method, American
National Standard ANSI/BOMA Z65.1-1996.
1.10. Deposit: The
aggregate of (a) the Advance Rent, which shall be held until the Commencement
Date and then applied as provided in Section 1.1, plus
(b)
$71,283.49, which shall be held by Landlord and applied as provided in
Subsection 5.7 of the General Terms and Conditions.
1.11. Landlord's
Notice Address: Care
of
Corporate Office Properties Trust, 0000 Xxxxxxxx Xxxxxxx Xxxxx, Xxxxx 000,
Xxxxxxxx, Xxxxxxxx 00000.
1.12. Landlord's
Rental Payment Address: Care
of
Corporate Office Properties, L.P., X.X. Xxx 00000, Xxxxxxxxx, Xxxxxxxx
00000-0000.
1.13. Named
Broker: Lincoln
Property Company.
1.14. Permitted
Use: The
use
of the Premises as commercial office space.
1.15. Premises;
Rentable Area of the Premises: That
portion of the Building leased by Tenant from Landlord and shown outlined on
Exhibit
A-2,
containing a total of 32,341 square feet (26,534 square feet of which is located
on the third floor of the Building and 5,807 square feet of which is located
on
the first floor of the Building)(the “Rentable Area of the Premises”), including
any Common Area Factor indicated in Section 1.9 and known and designated as
Suites 100 & 300, subject to measurement and confirmation as further
described in Section 1 of the General Terms and Conditions to
Lease.
1.16. Tenant's
Notice Address: The
term
CoStar
Group, Inc., 0 Xxxxxxxx Xxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxxx, Xxxxxxxx 00000,
Attn.: Xxxxxx Xxxxxx, Director of Facilities and Administration.
1.17. Term: A
period
of sixty (60) calendar months plus the fractional part of a calendar month
(if
any) commencing on the Commencement Date.
2. Exhibits. The
following Exhibits are attached to this Lease, and such documents, as well
as
all drawings and documents prepared pursuant thereto, shall be deemed to be
a
part hereof:
2
Exhibit
A-1 - Site
Plan
of Center
Exhibit
A-2 - Floor
Plan or other Depiction of Location of Premises
Exhibit
A-3 - Restricted
Parking and Smoking Zones
Exhibit
B - Construction
Provisions for Leasehold Improvements
Exhibit
B-1 - Base
Building/Leasehold Improvements Delineation and Building Standard Specifications
for Leasehold Improvements
Exhibit
B-2 - Time
Schedule for Construction
Exhibit
C - Rules
and
Regulations
Exhibit
D - Form
of
Commencement Date Letter
3. General
Terms and Conditions. The
General Terms and Conditions to Lease, numbered as Sections 1 through 23,
attached hereto, are an integral part of this Lease and are incorporated herein
by reference.
4. Rider. Any
Rider
to Lease which is attached hereto and dated of even date is intended to be
an
integral part of this Lease and is incorporated herein by
reference.
IN
WITNESS WHEREOF, the parties hereto have executed this Office Lease Agreement,
or have caused the same to be executed on their respective behalves by their
duly authorized representatives, the date and year first above
written.
WITNESS:
|
LANDLORD:
CORPORATE
PLACE I BUSINESS TRUST, a Maryland business trust, by COMMERCIAL
PROPERTY
INVESTORS TRUST COMPANY, LLC, as trustee
|
/s/
(illegible)
|
By: /s/Xxxxx
X. Xxxxxxx, Xx. (seal)
Xxxxx Xxxxxxx,
Xx.,
Executive Vice President
|
TENANT:
COSTAR
GROUP, INC., a Delaware corporation
|
|
/s/
Xxxxxx X
Xxxxxx
|
By: /s/
Xxxxx
Xxxxxxxx
(seal)
Xxxxx
Xxxxxxxx
Name
|
C.F.O
|
|
Title
|
{acknowledgements
appear on following page}
3
Acknowledgements
State
of
Maryland
County
of
Xxxxxx, to wit:
On
this
16th day of March, 2007, before me, the undersigned officer, personally appeared
Xxxxx X. Xxxxxxx, Xx. who acknowledged himself to be the President of Commercial
Property Investors Trust, LLC, a Maryland corporation, which is Trustee of
Corporate Place I Business Trust, a Maryland business trust, and on behalf
of
said limited liability company and said trust, did acknowledge that he, as
such
officer, being authorized so to do, executed the foregoing instrument for the
purposes therein contained, by signing the name of such limited liability
company as such Trustee by himself as such officer.
IN
WITNESS WHEREOF, I hereby unto set my hand and official seal.
_/s/
Samantha Keeton_________________(seal)
Notary
Public
My
Commission expires:
____July 14,
2009_________________________
State
of
Maryland
County
of
Xxxxxxxxxx, to wit:
On
this
9th day of March, 2007, before me, the undersigned officer, personally appeared
Xxxxx Xxxxxxxx who acknowledged himself/herself to be the C.F.O. of Costar
Group, Inc., a Delaware corporation, and on behalf of said corporation did
acknowledge that he/she as such officer being authorized so to do executed
the
foregoing Lease for the purposes therein contained by signing the name of the
corporation by himself/herself as such officer.
IN
WITNESS WHEREOF, I hereby unto set my hand and official seal.
_/s/
Xxxx Springer___________________(seal)
Notary
Public
My
Commission expires:
___January
7, 2009__________________________
4
CORPORATE
PLACE I
STANDARD
FORM
EXHIBIT
A-1
SITE
PLAN OF CENTER
AND
EXHIBIT
A-2
FLOOR
PLAN OR OTHER DEPICTION OF LOCATION OF PREMISES
See
page or pages which follow
5
[SITE
PLAN OF CORPORATE PLACE INTENTIONALLY OMITTED]
6
[FLOOR
PLAN OF CORPORATE PLACE INTENTIONALLY OMITTED]
7
CORPORATE
PLACE I
STANDARD
FORM
EXHIBIT
A-3
RESTRICTED
PARKING AND SMOKING ZONES
8
[RESTRICTED
PARKING AND SMOKING ZONES FOR CORPORATE PLACE
INTENTIONALLY OMITTED]
9
CORPORATE
PLACE I
STANDARD
FORM
EXHIBIT
B
CONSTRUCTION
PROVISIONS FOR LEASEHOLD IMPROVEMENTS
1. Completion
of Final Plans and Specifications. On
or
before February 23, 2007, Tenant shall provide Landlord with the proposed Plans
and Specifications for Landlord’s review and approval. Within five (5) business
days following Landlord’s receipt of the proposed Preliminary Plans and
Specifications, Landlord shall review and approve the same or shall provide
comments to Tenant suggesting further revisions to the same. Thereafter the
parties shall cooperate and exercise commercially reasonable efforts and due
diligence to complete and finalize the Preliminary Plans and Specifications
(the
“Final Plans and Specifications”) by April 16, 2007. Notwithstanding anything to
the contrary set forth in this Lease, “Final Plans and Specifications” shall be
deemed to include all architectural drawings, construction drawings and
mechanical, engineering and plumbing drawings such that Landlord is able to
obtain any required permits in connection with the commencement of the
construction described herein. Attached hereto as Exhibit
B-2
is a
proposed time schedule (the “Proposed Time Schedule”) generally providing for
the parties’ expectations of completion of the construction of the Leasehold
Improvements. The parties acknowledge that the time periods set forth on
Exhibit
B-2
solely
reflect the anticipated times for completion of the stages of construction
of
the Leasehold Improvements and agree to use commercially reasonable efforts
to
follow the such time periods.
2. Compliance
with Base Building/Leasehold Improvements Delineation and Building Standard
Specifications for Leasehold Improvements. Attached
hereto as Exhibit
B-1
are the
Base Building/Leasehold Improvements Delineation and the Building Standard
Specifications for Leasehold Improvements (the “Base Building Standards”). The
construction of the Leasehold Improvements shall be performed in accordance
with
the Base Building Standards.
3. Compatibility
with Existing Improvements. Notwithstanding
anything to the contrary set forth herein, the Leasehold Improvements shall
be
compatible with existing Building systems. The cost of any supplementation,
expansion, replacement or reinforcement of the existing Building systems
necessitated by or in connection with the design of the Leasehold Improvements
shall be borne solely by Tenant, subject to the Allowance set forth below unless
such Allowance has been fully expended in which event, Tenant shall pay such
costs at its sole cost and expense.
4. Construction
of Premises. Promptly
following the completion of Final Plans and Specifications and determination
of
final pricing of completion of Leasehold Improvements based on the Final Plans
and Specifications, the Leasehold Improvements shall be constructed within
the
Premises for Tenant's use and occupancy in accordance with the Final Plans
and
Specifications and as further provided below.
5. Changes
to Preliminary Plans and Specifications, Final Plans and Specifications;
Adjustment to Basic Rent.
5.1. The
parties acknowledge and agree that the Basic Rent set forth in Lease Section 1
incorporates Landlord's allowance in the amount of One Million, One Hundred
Thirty-One Thousand, Nine Hundred Thirty-Five Dollars ($1,131,935.00) toward
the
cost of completion of the Leasehold
10
Improvements
(the "Allowance"). Tenant
shall pay any increase in the actual cost to complete the Leasehold Improvements
(as determined by Landlord) in excess of the Allowance (a "Proposed Adjustment")
as follows: (i) one-half (1/2) of such excess shall be payable by Tenant
upon
Tenant’s execution of a construction contract with respect to the completion of
the Leasehold Improvements described herein, and (ii) the remaining one-half
(1/2) balance shall be paid within thirty (30) days of the Commencement Date.
(The Allowance shall be proportionately adjusted based on any remeasurement
of
the Premises as provided in Section 1 of the General Terms and Conditions
to
Lease.)
5.2. Landlord
shall notify Tenant of any Proposed Adjustment when Landlord notifies Tenant
of
Landlord's approval of the Final Plans and Specifications or when Tenant
requests changes to the Final Plans and Specifications during the course of
Leasehold Improvement construction. In either case Tenant shall have five (5)
days (not counting any intervening Saturday, Sunday or holiday) following the
date of receipt of Landlord's notice of a Proposed Adjustment within which
to
accept or reject the same, and Tenant shall be deemed to have accepted and
approved the Proposed Adjustment unless Tenant shall have given Landlord Notice
to the contrary within such five (5) day period.
5.3. If
Tenant
rejects Landlord's Proposed Adjustment made during preparation of the Final
Plans and Specifications then Tenant shall be required to revise its proposed
Final Plans and Specifications in order to permit the Leasehold Improvements
to
be constructed for a sum not to exceed the Allowance. If Tenant fails or refuses
to make such revisions and to resubmit conforming Final Plans and Specifications
within ten (10) business days following the date of Tenant's original notice
rejecting Landlord's Proposed Adjustment, then Landlord may make the appropriate
revisions to the proposed Final Plans and Specifications so as to conform the
same to the Preliminary Plans and Specifications and so that the Leasehold
Improvements may be constructed for a cost not to exceed the Allowance (in
which
case Landlord's costs in making and/or reviewing such plans revisions shall
be
charged to Tenant as Additional Rent) or else, and at Landlord's sole option
and
discretion.
5.4. If
Tenant
rejects Landlord's Proposed Adjustment made in response to Tenant's request
during construction for changes to the Final Plans and Specifications then
Landlord shall not be obligated to accept such proposed change or to perform
or
allow to be performed any construction in accordance with any such proposed
change. If, however, Tenant accepts a Proposed Adjustment (either by failure
of
response or else by express notice of acceptance given within the required
five
(5) day period as above set forth) then Tenant agrees to execute and acknowledge
such instruments confirming such acceptance as Landlord may from time to time
require, in which case Landlord shall construct or allow to be constructed
all
of the Leasehold Improvements required by the Final Plans and Specifications,
including all agreed-upon changes thereto.
6. Construction
Contract; Subcontracts; Permits.
6.1. The
contract for construction of the Leasehold Improvements shall be competitively
bid to no less than three (3) general contractors approved in advance by
Landlord, one of which shall be Landlord’s contractor and one of which shall be
a contractor selected by Tenant. Such construction shall be performed by the
contractor offering the lowest bid (or in the alternative, by a contractor
not
offering the lowest bid provided such contractor is approved by Landlord in
its
reasonable discretion), in general accordance with the Proposed Time Schedule
attached hereto as Exhibit
B-2 and
pursuant to a contract generally providing for the completion of the Leasehold
Improvements in accordance with the Final Plans and Specifications for a price
equal to such contractor's cost of Leasehold Improvements (subcontractors'
prices plus fees, design costs and permits) plus a fixed percentage of
the
11
same.
One
(1) time during the bidding process and upon notice to Landlord, Tenant may
make
changes to the Plans and Specifications without the same being considered
a
Tenant delay, provided however, such changes are made within five (5)
consecutive business days of Tenant’s notice to Landlord. Any increase in the
cost of constructing the Leasehold Improvements pursuant to such changes
in
excess of the Allowance shall be deemed a Proposed Adjustment payable by
Tenant
in accordance with Section 5 of this Exhibit
B.
6.2. If
the
selected contractor is a contractor other than Landlord’s contractor, then
Landlord shall receive a supervisory fee in the amount of three percent (3%)
of
the cost of the Leasehold Improvements which supervisory fee shall, in any
event, not exceed Forty Thousand Dollars ($40,000.00) and shall be deducted
from
the Allowance, for which Landlord will oversee the construction performed by
the
general contractor to ensure (i) compliance with the rules and regulations
set
forth in the Lease and as established for the Building and the Center generally,
(ii) that the construction does not interfere with other tenants’ uses of their
respective premises or the Common Areas of the Building and (iii) that the
Leasehold Improvements are in compliance with building standard
qualities.
6.3. The
contractor performing the construction of the Leasehold Improvements shall
obtain all permits required in connection with such work, and the cost of all
fees in connection with the issuance of such permits shall be included within
the Allowance or otherwise reimbursed by Tenant unless the parties otherwise
agree in writing. Notwithstanding the foregoing, Landlord shall obtain the
certificate of occupancy.
6.4. At
all
times during construction, the general contractor and any subcontractors shall
adhere to Landlord’s rules and regulations regarding construction activities as
the same may be established by Landlord from time to time. Upon completion
of
the Leasehold Improvements, the general contractor shall provide Landlord with
as-built drawings, operating manuals and lien waivers with respect to the
same.
00
XXXXXXXXX
XXXXX I
STANDARD
FORM
EXHIBIT
B-1
BASE
BUILDING/LEASEHOLD IMPROVEMENTS DELINEATION and BUILDING STANDARD SPECIFICATIONS
FOR LEASEHOLD IMPROVEMENTS
The
following delineation is intended to clarify the definition of “Base Building”
and “Base Building Work” along with “Leasehold Improvement” and “Leasehold
Improvement Work”.
ARCHITECTURAL
|
Base
Building
Work
|
Leasehold
Improvement
Work
|
Sealed
Concrete Floors in Mech/Elec/Tel/Jan Rooms
|
X
|
|
Gypsum
Board (taped and spackled):
|
||
sPerimeter
Drywall
|
X
|
|
sColumn
Wrap
|
X
|
|
sCore
Wrap
|
X
|
|
sCorridor
and ½ of Demising Partitions
|
X
(multi-tenant
floors only)
|
X
(full
floor tenant)
|
sPartitions
in Tenant Areas
|
X
|
|
Toilet
rooms (all finishes)
|
X
|
|
MEP
rooms (all finishes)
|
X
|
|
Exit
Stairs (all finishes)
|
X
|
|
Janitor
Closets (all finishes)
|
X
|
|
Main
Lobby (all finishes)
|
X
|
|
Typical
Elevator Lobby (all finishes)
|
X
(multi-tenant
floors)
|
X
(full
floor tenant)
|
Painting/Wallcovering
in Tenant Area
|
X
|
|
Ceiling
Grid in Tenant Area
|
X
|
|
Ceiling
Tile Stocked on Floor
|
X
|
|
Install
Ceiling Tile in Tenant Area
|
X
|
|
Floor
Covering in Tenant Area
|
X
|
|
Horizontal
Mini-blinds at Perimeter Windows
|
X
|
|
Doors
and Hardware:
|
||
sCore
|
X
|
|
sTenant
Area
|
X
|
|
Millwork
|
X
|
|
Appliances
|
X
|
|
ADA
Code Requirements:
|
||
sSite,
Building Entries and Main Lobby
|
X
|
|
sTenant
Areas
|
X
|
13
ELECTRICAL/TELECOMMUNICATIONS
|
Base
Building
Work
|
Leasehold
Improvement
Work
|
Main
Electric Service to Building
|
X
|
|
Electrical
Service to Floor Closets
|
X
|
|
Distribution/Connections
to Tenant Improvements
|
X
|
|
Lighting:
|
||
sCore
Bathrooms and Closets
|
X
|
|
sFire
Stairways
|
X
|
|
sMain
Lobby
|
X
|
|
sTypical
Floor Lobbies
|
X
(multi-tenant
floors)
|
X
(full
floor tenant)
|
sTenant
Light Fixtures Stocked on Floor
|
X
|
|
sWiring
Light Fixtures in Tenant Area
|
X
|
|
Electrical
Power:
|
||
sCore
(as required by Code)
|
X
|
|
sTenant
Area
|
X
|
|
Fire
Alarm System (per Code):
|
||
sMain
Fire Alarm Control Panel
|
X
|
|
sAnnunciator
Panel
|
X
|
|
sStrobes/Horns
in Core Area
|
X
|
|
sStrobes/Horns
in Tenant Area
|
X
|
|
Exit
Lighting:
|
||
sCore
Areas
|
X
|
|
sTenant
Areas
|
X
|
|
Telephone/Data
Distribution:
|
||
sIncoming
Telephone/Data Service to Main Telephone Room
|
X
|
|
sTenant
Telephone/Data Service
|
X
|
|
sVertical
Riser (sleeves only)
|
X
|
|
sGrounding
System
|
X
|
|
sHorizontal
Distribution
|
X
|
MECHANICAL
|
||
Main
Air Handling Units
|
X
|
|
Perimeter
& Interior Zone VAV Boxes (provided at a density of 1/750
sf)
|
X
|
|
Electrical
Heat at Perimeter VAV Boxes
|
X
|
|
Control
Wiring & Thermostats for VAV Boxes
|
X
|
|
Ductwork/Distribution:
|
||
sSupply/Return
Trunk Ducts
|
X
|
|
sDuctwork
to Shell Building VAV Boxes
|
X
|
|
sDuct/Flex
Run-Outs
|
X
|
|
sDiffusers
|
X
|
|
Supplemental
A/C Units
|
X
|
14
MECHANICAL
(CONT’D)
|
Base
Building
Work
|
Leasehold
Improvement
Work
|
Exhaust/Ventilation:
|
||
sCore
Rooms
|
X
|
|
sToilet
Rooms
|
X
|
|
sElevator
Shafts
|
X
|
|
sStairs
|
X
|
|
sSpecial
Tenant Requirements
|
X
|
FIRE
PROTECTION/SPRINKLERS
|
||
Sprinkler
System:
|
||
sVertical
Standpipes
|
X
|
|
sHorizontal
Main Loop Per Floor
|
X
|
|
sMain
Flow and Tamper Switches
|
X
|
|
sBranches,
Drops and Heads:
|
||
Ø For
Shell Construction
|
X
|
|
Ø Per
Tenant Partition Layout
|
X
|
|
Fire
Extinguisher/Cabinets:
|
||
sCore
Area (as required by Code)
|
X
|
|
sTenant
Area
|
X
|
|
PLUMBING
|
||
Core
Bathrooms (complete with all Code required plumbing and fixtures
for the
Base Building work)
|
X
|
|
Wet
Stacks (2 per floor)
|
X
|
|
Electric
Water coolers (per Code)
|
X
|
|
Janitor’s
Sink
|
X
|
|
Plumbing
For All Tenant Work
|
X
|
SECURITY
ACCESS CONTROL
|
||
After
Hours Access Control:
|
||
sExterior
Entry Doors to Building
|
X
|
|
sTenant
Areas
|
X
|
15
BUILDING
STANDARD SPECIFICATIONS
FOR
LEASEHOLD IMPROVEMENTS
This
summary is intended to describe in general terms the Landlord’s Building
Standard Specifications for the construction of Leasehold Improvements. This
summary is not
intended to be used for bidding and construction. Refer to the companion
document ‘Building Standard Specifications Manual for Tenant Improvements’ dated
February 3, 2004 r.2 for procedures, design criteria and detailed construction
specifications.
Partitions
Drywall
on metal studs carried to the underside of ceiling grid. Demising partitions are
carried to the underside of the structural deck. Partitions around conference
rooms, kitchens, lunchrooms and copy rooms receive sound attenuating
insulation.
Doors
& Frames
Primary
entrance to the Premises from a multi-tenant corridor is Landlord’s standard
‘Typical Recessed Tenant Suite Entry’ design. Entrance Door standard is a 3’ x
8’ flush solid-core stained wood door set in a satin aluminum frame with an
integral sidelight. Hardware is a mortised, satin chrome finish lever lockset
and a satin chrome plated closer. Interior Door standard is a 3’ x 7’ flush
solid-core stained wood veneer door set in a painted hollow metal frame.
Hardware is a cylindrical, satin chrome finish lever latchset.
Wall
Finish
All
walls are painted with primer plus two coats of eggshell latex paint, one color
throughout. At Tenant’s option, other finishes such as accent paint, vinyl
wallcovering and fabric wallcovering may be used in the reception area,
conference rooms and private offices.
Ceilings
2’
x
4’
Celotex “Baroque Customline” acoustic ceiling tile for all areas within the
Premises. First floor ceiling height is 9’-0” above finished floor. Second Floor
ceiling height is 9’-0” AFF. At Tenant’s option, drywall bulkheads and soffits
may be incorporated in the design of the Premises.
Flooring
26
oz.
patterned level-loop nylon carpet, equal to “Bar None” by Designweave for all
areas within the Premises. At Tenant’s option, 30 oz. nylon solid color cut-pile
carpet, equal to “Windswept Esq.” by Designweave in conference rooms and private
offices. Tenant to select one color from standard binder options. In lieu of
carpet, kitchens, lunchrooms, storage rooms and utility areas are to receive
vinyl composition tile. 4” high charcoal xxxx vinyl cove base installed
throughout the Premises.
Kitchens
At
Tenant’s option, kitchen/coffee areas may be incorporated in the design of the
Premises. Standard is flush plastic laminate faced upper and lower cabinets
with
plastic laminate countertop, sink, plumbing and electrical connections for
Tenant supplied appliances.
Mechanical
A
complete
heating and cooling system including ductwork, VAV boxes, perimeter supply
diffusers, interior supply diffusers and return air grilles. Computerized DDC
temperature controls are linked to electronic thermostats located within the
Premises. Kitchens and lunchrooms have an exhaust fan ducted to the
roof.
16
Fire
Sprinklers
Sprinkler heads are chrome recessed pendant style.
General
Office Lighting
2’ x 4’
18-cell high-efficiency parabolic fluorescent light fixtures throughout the
Premises. At Tenant’s option other specialty light fixtures may be incorporated
in the design of the Premises, including fluorescent downlights and fluorescent
wallwashers.
Switches
and Receptacles Ivory
single pole toggle switch with stainless steel cover plate for all lighting
circuits. Ivory 120-volt duplex receptacle with stainless steel cover plate
for
all convenience circuits.
Communications
Ring
and
pull string from telephone/data xxxx locations to the ceiling plenum. Tenant
shall be responsible for all telephone and data wiring to the switch/router
within the Premises and to the telephone/data service provider interface in
the
Main Electric Room.
17
CORPORATE
PLACE I
STANDARD
FORM
EXHIBIT
B-2
TIME
SCHEDULE FOR CONSTRUCTION
18
[TIME
SCHEDULE FOR CONSTRUCTION INTENTIONALLY OMITTED]
19
CORPORATE
PLACE I
STANDARD
FORM
EXHIBIT
C
RULES
& REGULATIONS TO LEASE
1. The
Common Areas shall not be obstructed or encumbered by any tenant or used for
any
purpose other than ingress and egress to and from its premises, and no tenant
shall permit any of its employees, agents, licensees or invitees to congregate
or loiter in any of the Common Areas.
2. No
tenant
shall invite to, or permit to visit, its premises persons in such numbers or
under such conditions as may interfere with the use and enjoyment by others
of
the Common Areas.
3. Fire
exits and stairways are for emergency use only, and they shall not be used
for
any other purposes by any tenant, or the employees, agents, licensees or
invitees of any tenant.
4. Landlord
reserves the right to control and operate, and to restrict and regulate the
use
of, the Common Areas in such manner as it deems best for the benefit of the
tenants generally, including the right to allocate certain elevators (in
elevator-service buildings) for delivery service, and the right to designate
which Building entrances shall be used by persons making deliveries in the
Building.
5. No
doormat of any kind whatsoever shall be placed or left in any public hall or
outside any entry door of any premises.
6. No
awnings or other projections shall be attached to the outside walls of the
Building.
7. No
curtains, blinds, shades or screens shall be attached to or hung in, or used
in
connection with, any window or door of any tenant's premises, without the
consent of Landlord. Such curtains, blinds, shades or screens must be of a
quality, type, design and color, and attached in the manner, approved by
Landlord. In order that the Building can and will maintain a uniform appearance
to those persons outside of the Building, each tenant occupying the perimeter
areas of the Building shall (i) use only building standard lighting in areas
where lighting is visible from the outside of the Building and (ii) use only
building standard blinds in window areas which are visible from the outside
of
the Building. [SEE
RIDER]
8. No
sign,
insignia, advertisement, lettering, notice or other object shall be exhibited,
inscribed, painted or affixed by any tenant on any part of the exterior or
interior of any tenant's premises or the Building or on doors, corridor walls,
the Building directory or in the elevator cabs without the prior approval of
Landlord as to size, color, style, content and location and tenant shall obtain
all necessary approvals and permits from governmental or quasi-governmental
authorities in connection with such signs. Such signs shall, at the expense
of
each tenant, be inscribed, painted or affixed by sign-makers approved by
Landlord. In the event of the violation of the foregoing by any tenant, Landlord
may remove such signs without any liability, and may charge the expense incurred
in such removal and subsequent surface restoration to the tenant or tenants
violating this Rule. [SEE
RIDER]
9. No
bicycles, vehicles, animals (except seeing eye dogs) fish or birds of any kind
shall be brought into, or kept in or about any premises within the
Building.
20
10. No
noise,
including, but not limited to, music, the playing of musical instruments,
recordings, radio or television, which, in the judgment of Landlord, might
disturb other tenants in the Building, shall be made or permitted by any tenant.
Nothing shall be done or permitted by any tenant which would impair or interfere
with the use or enjoyment by any other tenant or any other space in the
Building. [SEE
RIDER]
11. Nothing
shall be done or permitted in the tenant's premises, and nothing shall be
brought into, or kept in or about the premises, which would impair or interfere
with any of the HVAC, plumbing, electrical, structural components of the
Building or the services of the Building or the proper and economic heating,
cleaning or other services of the Building or the premises, nor shall there
be
installed by any tenant any ventilating, air-conditioning, electrical or other
equipment of any kind which, in the judgment of Landlord, might cause any such
impairment or interference. No tenant, nor the employees, agents, licensees
or
invitees of any tenant, shall at any time bring or keep upon the premises any
flammable, combustible or explosive fluid, chemical or substance. [SEE
RIDER]
12. No
additional locks or bolts of any kind shall be placed upon any of the doors
or
windows by any tenant, nor shall any changes be made in locks or the mechanism
thereof. Duplicate keys for the premises and lavatories shall be procured only
from Landlord, and Landlord may make a reasonable charge for the same. Tenant
shall not permit any duplicate keys to be made. Each tenant shall, upon the
expiration or sooner termination of the Lease of which these Rules and
Regulations are a part, turn over to Landlord all keys to stores, offices and
lavatories, either furnished to, or otherwise procured by, such tenant, and
in
the event of the loss of any keys furnished by Landlord, such tenant shall
pay
to Landlord the cost of replacement locks.
13. All
removals, or the carrying in or out of any safes, freight, furniture, packages,
boxes, crates or any other object or matter of any description shall take place
only during such hours and in such elevators as Landlord may from time to time
determine, which may involve overtime work for Landlord's employees. Tenant
shall reimburse Landlord for extra costs incurred by Landlord including
reserving the right to inspect all objects and matter to be brought into the
Building and to exclude from the Building all objects and matter which violate
any of these Rules and Regulations or the Lease of which these Rules and
Regulations are a part. Landlord may require any person leaving the Building
with any package or other object or matter to submit a pass, listing such
package or object or matter, from the tenant from whose premises the package
or
object or matter is being removed, but the establishment and enforcement of
such
requirement shall not impose any responsibility on Landlord for the protection
of any tenant against the removal of property from the premises of such tenant.
Landlord shall in no way be liable to any tenant for damages or loss arising
from the admission, exclusion or ejection of any person to or from the premises
or the Building under the provisions of these Rules and Regulations.
[SEE
RIDER]
14. No
tenant
shall use or occupy, or permit any portion of its premises to be used or
occupied, as an office for a public stenographer or public typist, or for the
possession, storage, manufacture or sale of narcotics or similar dangerous
substances or as a xxxxxx, beauty or manicure shop, telephone or telegraph
agency, telephone or secretarial service, messenger service, wholesale or
discount shop for sale of merchandise, retail service shop, labor union,
classroom, company engaged in the business of renting office or desk space,
or
as a hiring or employment agency, or as a storage area for goods, wares or
merchandise, except for usual storage of supplies to be used by the tenant
in
the conduct of its business. No tenant shall engage or pay any employee on
its
premises, except those actually working for such tenant on the premises, nor
advertise for laborers giving an address at the Building. Except as specifically
approved by Landlord in writing, no tenant shall use its premises or any
part
21
thereof,
or permit its premises or any part thereof to be used, as a restaurant, shop,
booth or other stand, or for the conduct of any business or occupation which
predominantly involves direct patronage of the general public, or for
manufacturing, or for the sale at auction of merchandise, goods or property
of
any kind.
15. Landlord
shall have the right to prohibit any advertising or identifying sign for or
by
any tenant which, in the judgment of Landlord, tends to impair the appearance
or
reputation of the Building or the desirability of the Building as a building
for
offices, and upon written notice from Landlord such tenant shall refrain from
and discontinue such advertising or identifying sign. [SEE
RIDER]
16. Each
tenant, before closing and leaving its premises at any time, shall see that
all
lights, typewriters, copying machines and other electrical equipment are turned
off. All entrance doors in its premises shall be kept securely locked by each
tenant when its premises are not in use. Entrance doors shall not be left open
at any time.
17. No
tenant's premises shall be used for lodging or sleeping, for the preparation
of
foods or for any illegal purpose.
18. The
requirements of tenants will be attended to only upon application at the office
of the Building, if any, or otherwise at the offices of Landlord or of
Landlord’s managing agent of the Center. Employees of Landlord shall not perform
any work or do anything outside of their regular duties, unless under special
instructions from Landlord.
19. Canvassing,
soliciting, peddling and panhandling in the Building are prohibited and each
tenant shall cooperate to prevent the same.
20. There
shall not be used in any space, or in the Common Areas of the Building, either
by any tenant or by others, in the moving, delivery or receipt of safes,
freight, furniture, packages, boxes, crates, paper, office material or any
other
matter or thing, any hand trucks except those equipped with rubber tires, side
guards and such other safeguards as Landlord shall require.
21. No
tenant
shall cause or permit any odors of cooking or other processes, or any unusual
or
objectionable odors, to emanate from its premises which would annoy other
tenants or create a public or private nuisance. No cooking shall be done in
a
tenant's premises except as is expressly permitted in the Lease of which these
Rules and Regulations are a part, or otherwise consented to in writing by the
Landlord. [SEE
RIDER]
22. All
paneling, door, trim or other wood products not considered furniture shall
be
treated with fire-retardant materials. Before installation of any such
materials, certification of the materials' fire-retardant characteristics shall
be submitted to and approved by Landlord, and all such materials shall be
installed in a manner approved by Landlord.
23. Whenever
any tenant shall submit to Landlord any plan, agreement or other document for
the consent or approval of Landlord, such tenant shall pay to Landlord, on
demand, a processing fee in the amount of the reasonable fees for the review
thereof, including the services of any architect, engineer or attorney employed
by Landlord to review such plan, agreement or document. [SEE
RIDER]
24. Plumbing
facilities shall not be used for any purpose other than those for which they
were constructed; and no sweepings, rubbish, ashes, newspapers or other
substances of any kind shall be thrown into them. Waste and excessive or unusual
use of electricity or water is prohibited.
25. No
contract of any kind with any supplier of towels, water, ice, toilet articles,
waxing, rug shampooing, venetian blind washing, furniture polishing, lamp
servicing, cleaning of electrical fixtures, removal of waste papers, rubbish
or
garbage, or other like service shall be entered into by any tenant, nor shall
any vending machine of any kind be installed in the Building or on or about
the
Center without the prior written consent of the Landlord. [SEE
RIDER]
26. When
electric wiring or data or telecommunications cabling of any kind is introduced,
it must be connected as directed by Landlord, and no stringing or cutting of
wires will be allowed, except with the prior written consent of Landlord, and
shall be done only by contractors approved by Landlord. The number and locations
of telephones, telecommunication instruments, electric appliances, call boxes,
etc., shall be subject to Landlord's approval. No wires shall be run in any
part
of the Building except by or under the direction of the Landlord.
27. No
tenant
shall lay linoleum or other similar floor covering so that the same shall be
in
direct contact with the floor of the premises; and if linoleum or other similar
floor covering is desired to be used, an interlining of builder's deadening
felt
shall be first affixed to the floor by a paste or other material, the use of
cement or other similar adhesive material being expressly
prohibited.
28. To
the
extent that janitorial services are provided by Landlord, Tenant shall not
employ any person or persons other than Landlord's janitors for the purpose
of
cleaning its premises, without prior written consent of Landlord. Landlord
shall
not be responsible to any tenant for any loss of property from its premises
however occurring, or for any damage done to the effects of any tenant by such
janitors or any of its employees, or by any other person or any other cause.
Any
janitor's service furnished by Landlord does not include the beating or cleaning
of carpets or rugs. [SEE
RIDER]
29. Landlord
hereby reserves to itself any and all rights not granted to tenant hereunder,
including, but not limited to, the following rights which are reserved to
Landlord for its purposes in operating the Building: (i) the exclusive right
to
use of the name of the Building for all purposes, except that a tenant may
use
the name as its business address and for no other purposes; (ii) the right
to
change the name or address of the Building, without incurring any liability
to
any tenant for so doing; (iii) the right to install and maintain a sign or
signs
on the exterior of the Building; (iv) the exclusive right to use or dispose
of
the use of the roof of the Building; (v) the right to limit the space on the
directory of the Building to be allotted to a tenant; and (vi) the right to
grant anyone the right to conduct any particular business or undertaking in
the
Building. [SEE
RIDER]
30. Tenant
and its employees shall park their cars only in those paved portions of the
Common Areas as designated by Landlord. In no event shall Tenant, its officers,
employees or agents park in the spaces designated as “No Parking Zone” or
“Visitor and Handicap Parking Zone” on Exhibit A-3. Any vehicle parked in any
other location on the Center or within public road rights-of-way may be towed
without notice at the expense of the tenant responsible therefor.
31. Tenant
shall observe, and shall cause its employees and invitees to observe, all
applicable governmental ordinances regarding the use of tobacco products in
and
around the Building and within the Center; and Tenant shall observe, and shall
cause its employees and invitees to observe, all other restrictions or
limitations on the use of lighted tobacco products within the Center as may
be
prescribed
23
by
Landlord from time to time. No smoking shall be permitted at any time in
any
area designated as a “No Smoking Zone” on Exhibit A-3.
32. Landlord
shall have the right to close and securely lock the Building during generally
accepted holidays and during such other times as Landlord may deem advisable
for
the security of the Building and its tenants; except in the case of such
holidays, or an emergency, Landlord shall give Tenant twenty-four (24) hours
notice before so closing and securely locking the Building, and Landlord shall
make a reasonable effort to assure access to the Leased Premises by
Tenant.
33. All
chairs in carpeted areas shall have carpet xxxxxxx or other similar devices
to
protect the carpeting.
34. All
glass, locks and trimming, in or about the doors and windows of the premises
and
all electric fixtures on the premises which belong to the Building shall be
kept
whole, and whenever broken by tenant or such tenant's employees, agents, guests,
invitees or licensees, such tenant shall immediately notify Landlord of the
breakage. This breakage shall be repaired by Landlord at the tenant's expense
or
may be repaired by such tenant at tenant's expense at the option of the
Landlord.
35. Landlord
reserves the right to rescind, alter, waive or add, any rule or regulation
at
any time prescribed for the Building when, in the judgment of Landlord, Landlord
deems it necessary or desirable for the reputation, safety, character, security,
care, appearance or interests of the Building, or the preservation of good
order
therein, or the operation or maintenance of the Building, or the equipment
thereof, or the comfort of tenants or others in the Building. No rescission,
alteration, waiver or addition of any rule or regulation in respect of one
tenant shall operate as a rescission, alteration or waiver in respect of any
other tenant. [SEE
RIDER]
36. Any
breach by Tenant of any of the foregoing Rules and Regulations, or any other
rules or regulations contained in the Lease or hereafter promulgated by Landlord
pursuant to its reserved powers contained in the Lease, if not remediated by
Tenant within five (5) days following written notice by Landlord, will result
in
the imposition of a penalty for breach in the amount of Twenty-Five Dollars
($25.00) for each day of infraction, accounting from the date of Landlord's
notice until remediation of the breach. The penalties imposed by this section
shall be in addition to all other rights and remedies inuring to Landlord under
the Lease in case of Tenant's breach, specifically including the right of
self-help as therein set forth.
24
CORPORATE
PLACE I
STANDARD
FORM
EXHIBIT
D
COMMENCEMENT
DATE LETTER
Date:
{TENANT}
Tenant
Address
Re:
|
Commencement
Date Letter with respect to Lease dated as of {DATE} between CORPORATE
PLACE I BUSINESS TRUST, as Landlord, and {TENANT}, as Tenant, for
Premises
(defined in the Lease) in CORPORATE PLACE
I
|
Greetings:
This
Commencement Date Letter is issued in accordance with Section 3 of the General
Terms and Conditions to the above-referenced Lease.
Landlord
certifies the Substantial Completion of all Leasehold Improvements required
to
be installed in the Premises, and tenders possession of the Premises to
Tenant.
The
Commencement Date of the Lease is {COMMENCEMENT DATE}.
The
termination date of the Lease is {TERMINATION DATE}.
_____________________,
as Managing Agent for Landlord
By:
00
XXXXXXXXX
XXXXX I
STANDARD
FORM
OFFICE
LEASE AGREEMENT
GENERAL
TERMS AND CONDITIONS TO LEASE
These
are
the General Terms and Conditions to Agreement of Lease and are attached to
that
CORPORATE PLACE I STANDARD FORM OFFICE LEASE AGREEMENT between NOTTINGHAM
VILLAGE, INC., as Landlord, and the Tenant named therein.
1.
|
Lease
of Premises.
|
2
|
2.
|
Quiet
Possession.
|
2
|
3.
|
Term.
|
2
|
4.
|
Construction
and Delivery of the Premises.
|
2
|
5.
|
Rent.
|
3
|
6.
|
Permitted
Use; Compliance with Legal Requirements; Hazardous
Materials.
|
4
|
7.
|
Transfer
of Lease by Tenant.
|
6
|
8.
|
Abandonment
of Premises or Tenant’s Personal Property; Surrender of
Premises.
|
8
|
9.
|
Repairs
and Alterations.
|
9
|
10.
|
Common
Areas.
|
12
|
11.
|
Operating
Costs.
|
13
|
12.
|
Taxes.
|
14
|
13.
|
Services
and Utilities.
|
15
|
14.
|
Indemnifications
and Waiver of Claims.
|
17
|
15.
|
Insurance.
|
18
|
16.
|
Casualty
and Condemnation.
|
19
|
17.
|
Signs.
|
20
|
18.
|
Right
of Entry for Inspection, Exhibition, Repair.
|
21
|
19.
|
Subordination
and Attornment.
|
21
|
20.
|
Modifications
to Lease; Rights of Superior Mortgagee, Superior
Lessor.
|
22
|
21.
|
Defaults
by the Tenant.
|
22
|
22.
|
Miscellaneous
Provisions.
|
26
|
23.
|
Definitions.
|
29
|
1.
Lease of
Premises.
Landlord
agrees to lease the Premises, located in the Building within the Center, to
the
Tenant and Tenant agrees to rent and accept the same from the Landlord, subject
to these General Terms and Conditions and the provisions of the Exhibits and
any
Rider and Addenda to the Lease. Upon request by Tenant made following
Substantial Completion of the Leasehold Improvements and prior to the
Commencement Date, the exact rentable square footage of the Premises will be
determined by the measurement of the Premises by the space planner and/or
architect responsible for the preparation of the Final Plans and Specifications.
Such measurement shall be in accordance with the standards and definitions
established by the BOMA Method, American National Standard ANSI/BOMA Z65.1-1996,
as amended, and shall be binding upon the parties. If such measurement discloses
that the Rentable Area of the Premises is other than as specified in Lease
Section 1 then the Rent and Tenant’s Proportionate Share shall be adjusted
accordingly. [SEE
RIDER]
2. Quiet
Possession.
Following
the Commencement Date Tenant shall peaceably and quietly have, hold and enjoy
the Premises without hindrance, ejection or molestation by Landlord or any
person lawfully claiming through or under Landlord. This covenant is subject
to
the provisions of this Lease and to any Superior Lessor and any Superior
Mortgage and shall apply if and so long as Tenant pays all Rent due hereunder,
performs and observes the other terms and covenants to be performed and kept
by
it as provided in this Lease, and complies with Legal Requirements. This
covenant shall be construed as a covenant running with the land, and is not
a
personal covenant of Landlord, except to the extent of Landlord's interest
in
this Lease and only so long as such interest shall continue, and thereafter
this
covenant shall be binding only upon subsequent successors in interest of
Landlord's interest in this Lease, to the extent of their respective interests,
as and when they shall acquire the same, and so long as they shall retain such
interest. [SEE
RIDER]
3. Term.
The
Term
of this Lease shall commence upon the Commencement Date and shall end on the
last day of the last calendar month of the Term (unless sooner terminated
pursuant to the provisions of this Lease). The Commencement Date shall be
conclusively confirmed by Landlord to Tenant in writing by delivery of a
Commencement Date Letter in the form of Exhibit
D.
Beginning with the complete execution of this Lease, but prior to the
Commencement Date, Tenant shall be subject to all of the terms and provisions
of
this Lease excepting only those requiring the payment of Rent and respecting
possession, occupancy, care and maintenance of the Premises. If Tenant is
afforded possession, use or occupancy of the Premises prior to the Commencement
Date then Tenant shall be subject to all of the terms and provisions of this
Lease excepting only those requiring the payment of Rent. [SEE
RIDER]
4. Construction
and Delivery of the Premises.
4.1. Completion
of Leasehold Improvements; Delivery.Prior
to
the Commencement Date Landlord shall complete Leasehold Improvements to the
extent provided in Exhibit
B.
Otherwise, the
Premises are leased to Tenant in "As-Is" condition and without any obligation
of
Landlord to construct improvements or perform any other work in the Premises.
[SEE
RIDER]
2
4.2. Acceptance
of Xxxxxxxx.Xx
its
acceptance of keys to the Premises, or by opening for business or otherwise
occupying the Premises, Tenant shall be deemed to have accepted the Premises,
to
have acknowledged that they are in the condition called for hereunder and to
have agreed that the obligations of Landlord imposed for the delivery of the
Premises have been fully performed, subject to the completion of so-called
"punch-list" items agreed to in writing by the parties as of the Commencement
Date. [SEE
RIDER]
5. Rent.
Tenant
covenants and agrees to pay to Landlord during the Term, as Rent for the
Premises, the aggregate of all Basic Rent and Additional Rent due hereunder,
as
provided in this Section.
5.1. Basic
Rent.The
Basic
Rent shall be payable in equal Monthly Installments of Basic Rent in advance
on
the first day of each full calendar month during the Term, without any deduction
or setoff whatsoever, and without demand. Tenant
shall pay the Advance Rent to Landlord concurrently with the signing of this
Lease. The
first
monthly payment due following the Commencement Date shall include any prorated
Basic Rent for the period from the Commencement Date to the first day of the
first full calendar month. [SEE
RIDER]
5.2. Basic
Rent Adjustmentseq
level10.2.Basic
Rent Adjustment".Commencing
with the second Lease Year and continuing each Lease Year thereafter for the
remainder of the Term, the Basic Rent shall be increased by an amount equal
to
the product of the Basic Rent Adjustment multiplied by the Basic Rent paid
by
Tenant during the Lease Year preceding each annual increase. The Basic Rent
Adjustment shall apply during the original Term and any extended or renewal
term
of this Lease unless otherwise expressly provided in any Attachment, or
amendment to this Lease.
5.3. Additional
Rent.Tenant
shall pay all elements of Additional Rent due under this Lease at the times
and
in the manner prescribed below.
5.4. Late
Charge For Failure to Pay Rent and Additional Rent.All
sums
payable as Basic Rent or Additional Rent shall be paid by Tenant to Landlord's
Rental Payment Address, or at such other address as Landlord may from time
to
time designate by Notice given to Tenant care of Tenant's Notice Address. If
any
check tendered by Tenant in payment of Rent is dishonored upon presentment
for
payment, then Landlord, in addition to all other rights and remedies contained
in this Lease, may assess a dishonor charge of Fifty Dollars ($50.00); and
Landlord shall thereafter have the right to insist that all of Tenant's further
payments be made by certified check. If Tenant fails to pay any Basic Rent
or
any Additional Rent within ten (10) days of the time it is due and payable
(including deemed failure to pay due to dishonor of Tenant's check upon
presentation for payment), then Landlord, in addition to all other rights and
remedies contained in this Lease, may assess a late charge against Tenant in
the
amount of Five Hundred Dollars ($500.00). Additionally, if Tenant fails to
pay
any Basic Rent or any Additional Rent when due and payable, then such unpaid
amounts shall bear interest from the due date thereof to the date of payment
at
the Reimbursement Rate together with Landlord’s Fees and Costs incurred in
collecting any delinquent Rent due hereunder. [SEE
RIDER]
5.5. All
Charges Constitute Rent.Every
amount payable by Tenant to or on behalf of Landlord under this Lease, whether
or not expressly denominated as Basic Rent or Additional Rent, and including
all
Fees and Costs, shall constitute and shall be referred to as "Rent" for the
purposes of this Lease as well as Section 502(b)(6) of the Bankruptcy Code,
11
U.S.C. § 502(b)(6).
3
5.6. Adjustment
of Proportionate Share.If
Landlord elects to alter the Rentable Area of the Center (as, for example,
by
constructing one or more additional buildings within the Center, or
reconfiguring Common Areas into Rentable Area, or reconfiguring Rentable Area
into Common Area, or removing all or part of any building from the Center),
then
Landlord shall adjust Tenant's Proportionate Share. Appropriate proration shall
be made for any partial period of a Lease Year resulting from such adjustment.
[SEE
RIDER]
5.7. Deposit.The
Deposit shall be held by Landlord as security for the performance of Tenant’s
obligations under this Lease. It may not be considered a measure of liquidated
damages. Landlord may apply all or any part of the Deposit in total or partial
satisfaction of any default by Tenant. The application of all or any part of
the
Deposit to any obligation or default of Tenant under this Lease shall not
deprive Landlord of any other rights or remedies Landlord may have, nor shall
such application by Landlord constitute a waiver by Landlord. If all or any
part
of the Deposit is applied to an obligation of Tenant under this Agreement then
Landlord shall have the right to call upon Tenant to restore the Deposit to
its
original amount in cash by giving notice to Tenant, in which case Tenant shall
immediately restore the Deposit. The Deposit shall be held by Landlord without
liability for interest; Landlord shall be entitled to the full use of the
Deposit and shall not be required to keep it in a segregated account or escrow.
If Landlord conveys its interest under this Lease, the Deposit, to the extent
not previously applied to the cure of a Tenant Default, will be turned over
by
Landlord to Landlord's grantee or transferee, and upon any such delivery of
the
Deposit the Landlord herein named shall be released of any and all liability
with respect to the Deposit, its application and return, and Tenant agrees
to
look solely to such grantee or transferee. This provision shall also apply
to
subsequent grantees and transferees. Landlord will return the balance of the
Deposit not previously applied as provided herein, within thirty (30) days
after
expiration of the Term. [SEE
RIDER]
6. Permitted
Use; Compliance with Legal Requirements; Hazardous
Materials.
6.1. Permitted
Use.The
Premises shall be used and occupied for the Permitted Use, and otherwise
consistent with the use and occupancy of leasehold space in a first-class office
building, and for no other use or purpose. Tenant shall not commit or suffer
to
be committed any waste upon the Premises or any nuisance or other act or thing
which may disturb the quiet enjoyment of any other tenant in the Building,
or in
the Center, or which may disturb the quiet enjoyment of any person outside
the
Building or in the Center in contravention of such person's legal rights, or
which will subject Landlord to any liability for injury to persons or damages
to
property. Furthermore, except as specifically and expressly described within
the
definition of the Permitted Use, no use of the Premises shall be made or be
permitted to be made that shall result in any use of the Premises deemed by
Landlord to be improper, unlawful or objectionable, specifically including
the
sale, storage or preparation of food, alcoholic beverages or materials
generating an odor on the Premises, or any other use generating noises or
vibrations that may disturb the Landlord or other tenants of the Center. Tenant
will not do or suffer to be done, or keep or suffer to be kept, anything in,
upon or about the Premises which will violate Landlord's policies of hazard
or
liability insurance or which will prevent Landlord from procuring such policies
in companies acceptable to Landlord, or which will cause the rate of fire or
other insurance on the Premises or on other property of Landlord or others
within the Property to be increased beyond the rates otherwise in
effect.
4
6.2. Acceptability
of the Premises for Permitted Use.
By its
entry into this Lease, Tenant acknowledges to Landlord that Tenant has satisfied
itself that the Premises can be used by Tenant for the Permitted Use in
accordance with Legal Requirements and that the Premises will be acceptable
to
Tenant for the Permitted Use pursuant to this Lease. Tenant agrees that Landlord
has made no express or implied warranty, representation or covenant to or with
Tenant with respect to these matters. Landlord makes no representation that
any
license, permit or approval of any Appropriate Authority will be granted for
Tenant’s use at the Premises, or, if granted, will be continued in effect or
renewed, and any failure to obtain such license or licenses, permit or permits,
or any revocation thereof or failure to renew the same, shall not release the
Tenant from its obligations under this Lease Agreement.
6.3. Compliance
with Rules, Ordinances, Etc.Tenant
shall, throughout the Term, at Tenant's sole cost and expense, promptly comply
with the provisions of the Rules and Regulations and all Legal Requirements.
[SEE
RIDER]
6.4. Hazardous
Material. [SEE RIDER]
6.4.1 Tenant's
Agreements.Tenant
warrants and agrees that Tenant shall not cause or permit any Hazardous Material
to be brought upon, kept or used in or about the Premises by Tenant, its agents,
employees, contractors or invitees, without the prior written consent of
Landlord (which Landlord shall not unreasonably withhold as long as Tenant
demonstrates to Landlord's reasonable satisfaction that such Hazardous Material
is necessary or useful to Tenant's business and will be used, kept and stored
in
a manner that complies with all Environmental Laws regulating any such Hazardous
Material so brought upon or used or kept in or about the Premises). If Tenant
breaches the obligations stated in the preceding sentence then Tenant shall
indemnify, defend and hold Landlord harmless from any and all claims, judgments,
damages, penalties, fines, costs, liabilities or losses which arise during
or
after the Term as a result of such contamination. This indemnification of
Landlord by Tenant includes, without limitation, costs incurred in connection
with any investigation of site conditions or any cleanup, remedial, removal
or
restoration work required by any Appropriate Authority because of Hazardous
Material present in the soil or ground water on or under the Premises or the
Center generally. Without limiting the foregoing, if the presence of any
Hazardous Material on the Premises caused or permitted by Tenant results in
any
contamination of the Premises or the Center generally, Tenant shall promptly
take all actions at its sole expense as are necessary to return the Premises
to
the condition existing prior to the introduction of any such Hazardous Material
to the Premises; provided that Landlord's approval of such actions shall first
be obtained, which approval shall not be unreasonably withheld so long as such
actions would not potentially have any material adverse long-term or short-term
effect on the Premises or the Center generally. It shall not be unreasonable
for
Landlord to withhold its consent to any proposed Transfer otherwise permitted
pursuant to Section 7 of the Lease if (i) the proposed Transferee's anticipated
use of the Premises involves the generation, storage, use, treatment or disposal
of Hazardous Material; (ii) the proposed Transferee has been required by any
prior landlord, lender or governmental authority to take remedial action in
connection with Hazardous Material contaminating a property if the contamination
resulted from such Transferee's actions or use of the property in question;
or
(iii) the proposed Transferee is subject to an enforcement order issued by
any
Appropriate Authority in connection with the use, disposal or storage of a
Hazardous Material. [SEE
RIDER]
6.4.2 Annual
Xxxxxxxxxx.Xx
the
commencement of this Lease and thereafter, on request by Landlord, Tenant shall
disclose to Landlord the names and amounts of all Hazardous Materials, or any
combination thereof, which were stored, used, or disposed of on the Premises,
or
which Tenant intends to store, use, or dispose of on the Premises.
5
7. Transfer
of Lease by Tenant.
7.1. Xxxxxxxx.Xx
Transfer shall be permitted of this Lease without the prior written consent
of
Landlord in each instance first obtained. Any consent given to any one Transfer
shall not constitute a consent to any subsequent Transfer. Any attempted
Transfer without Landlord's consent shall be null and void and shall not confer
any rights upon any purported Transferee. No Transfer, regardless of whether
Landlord's consent has been granted or withheld, shall be deemed to release
Tenant from any of its obligations hereunder or to alter, impair or release
the
obligations of any person guaranteeing the obligations of Tenant hereunder.
Landlord agrees that its consent to a Transfer will not be unreasonably
withheld, conditioned or delayed. Landlord will give Tenant prompt Notice of
any
denial of a request for Transfer approval, stating the reason or reasons for
such denial. [SEE
RIDER[
7.2. Transfer
Approval Conditions.The
parties agree that Landlord may reasonably withhold its consent to a proposed
Transfer unless all of the following conditions are satisfied. The following
list of conditions is non-exclusive.
7.2.1 Tenant
shall submit to Landlord (i) in writing, the name and address of the proposed
Transferee, a reasonably detailed statement of the proposed Transferee's
business, and reasonably detailed information as to the character, reputation
and business experience of the proposed Transferee, as well as reasonably
detailed financial references and information concerning the financial condition
of the proposed Transferee (including, at Tenant's expense, a current Dun &
Bradstreet, TRW, Equifax or other similar report and a financial statement
certified as being true and correct by the chief financial executive of the
proposed Transferee); (ii) a fully executed copy of the proposed Transfer
document, in Landlord’s standard form or in form and content reasonably
acceptable to Landlord, the effective date of which shall be at least thirty
(30) days after the date on which Tenant shall have furnished Landlord with
all
of the information required pursuant to (i) above and which shall be conditioned
on Landlord's consent thereto; and (iii) an agreement in form and substance
satisfactory to Landlord by Tenant to indemnify Landlord against liability
resulting from any claim made against Landlord by the proposed Transferee or
by
any broker claiming a commission in connection with the proposed Transfer.
Tenant’s
written request for consent to Transfer will be accompanied by a nonrefundable
Transfer Review Fee of $1,000.00, which
is
imposed in order to reimburse Landlord for all of its internal costs and
expenses incurred with respect to Landlord's review of the request for the
Transfer (and not intended as consideration for the consent to Transfer, it
being understood that such payment won’t obligate the Landlord to consent to any
requested Transfer).
7.2.2 No
Default on Tenant's part can exist at the time of the consent request and at
the
effective Transfer date;
7.2.3 Any
Transfer will be upon and subject to all terms and conditions of this Lease,
including those regarding the Permitted Use of the Premises;
7.2.4 Any
assignment must specifically state (and, if it does not, it will be deemed
to
specifically state) that the assignee assumes and agrees to be bound by all
terms and conditions of this Lease, and any sublease must specifically state
(and, if it does not, it will be deemed to specifically state) that at
Landlord's election the subtenant will attorn to Landlord and recognize Landlord
as Tenant's successor under the sublease for the balance of the sublease term
if
this Lease is surrendered by Tenant or terminated by reason of Tenant's
default;
6
7.2.5 Tenant
will promptly reimburse Landlord for all Fees and Costs actually and reasonably
incurred by Landlord in connection with the review and approval of the proposed
Transfer and any Transfer instrument. [SEE
RIDER]
7.2.6 No
Transfer will be to a then-existing tenant or occupant of the Center.
[SEE
RIDER]
7.2.7 Upon
request the assignee (in the case of a proposed assignment) or Tenant (in the
case of a proposed subletting) will increase the original Deposit to such amount
as Landlord may reasonably require (or if no Deposit was initially made then
such party will post with Landlord such Deposit as Landlord may reasonably
require); [SEE
RIDER]
7.2.8 The
Transfer must first be approved in writing by any Superior Mortgagee of Landlord
having the right to approve it. [SEE
RIDER]
7.2.9 The
Transferee (i) is not a Federal, State or local governmental entity, or agency
or instrumentality thereof; (ii) will not perform governmental or
quasi-governmental functions or dispense medical, relief or social welfare
services; and (iii) will not operate an employment service, a messenger or
an
answering service, or any business that in Landlord's opinion is unsuitable
for
the then tenant mix and character of the Center.
7.2.10 The
Transfer will not result
in
the subletting, or subletting and assignment, of the Premises for occupancy
by
more than two (2) sublessees or assignees. [SEE
RIDER]
7.3. Corporate,
Partnership Transfers.
7.3.1 If
Tenant
is a corporation and if at any time during the Term of this Lease any part
or
all of the corporate shares of Tenant, or of a parent corporation of which
the
Tenant is a direct or indirect subsidiary, shall be transferred by sale,
assignment, bequest, inheritance, operation of law, or other disposition so
as
to result in a change in the present effective voting control of Tenant or
of
such parent corporation by the person or persons owning or controlling a
majority of the shares of Tenant or of such parent corporation on the date
of
this Lease then Tenant shall promptly notify Landlord in writing of such change,
and such change in voting control shall constitute a Transfer of this Lease
for
all purposes of this Section; provided, however, that this provision shall
not
apply if, as of the Commencement Date, over fifty percent (50%) of the voting
power of the Tenant corporation or of such parent corporation is held by fifty
(50) or more unrelated shareholders or distributed to such number of unrelated
shareholders in a public distribution of securities. [SEE
RIDER]
7.3.2 Tenant
may Transfer this Lease, at any time during the Term of this Lease, to any
parent, subsidiary or affiliate corporation of Tenant or to the surviving
corporation in connection with a merger, consolidation or acquisition between
Tenant and any of its subsidiaries or any other corporation, or in connection
with the sale of all or substantially all of the property and assets of the
Tenant, upon prior Notice to Landlord but without Landlord's prior written
consent, provided, in the case of any assignment, (i) the net worth of the
assignee corporation shall be reasonably satisfactory to Landlord; (ii) such
assignee continues to operate the business conducted in the Premises for the
Permitted Use and in the same manner as Tenant and pursuant to all of the
provisions of this Lease; (iii) such assignee corporation shall assume in
writing in a form reasonably satisfactory to Landlord all of Tenant's
obligations hereunder; (iv) Landlord shall be furnished with a copy of such
assignment within ten (10) days prior to the effective date of the proposed
assignment or other transfer thereof; and (v) Tenant to which the
7
Premises
were initially leased shall continue to remain liable on this Lease for the
performance of all terms including, but not limited to, payment of all rentals
and other sums due under this Lease. [SEE
RIDER]
7.3.3 If
Tenant
is a partnership, limited liability company or other legal entity and if at
any
time during the Term of this Lease any person or entity, which at the
Commencement Date, owns a general partner's, manager's or controlling member's
interest, ceases to own such general partner's, manager's or controlling
member's interest, then such cessation of ownership shall constitute a Transfer
of this Lease for all purposes of this Section, and Tenant shall promptly notify
Landlord in writing of such change.
7.4. Request
For Transfer.Tenant's
notice and request for Landlord's consent to Transfer shall also be deemed
to
constitute Tenant's offer to reconvey to Landlord, as of the proposed effective
date of the Transfer, that portion of the Premises which is the subject of
the
proposed Transfer, which offer shall contain an undertaking by Tenant to accept,
as full and adequate consideration for the reconveyance, Landlord's release
of
Tenant from all future Rent and other obligations under this Lease with respect
to the Premises or the portion thereof so reconveyed. Landlord, in the sole
and
unfettered exercise of its discretion, shall accept or reject the offered
reconveyance within thirty (30) days of the offer, and, if Landlord accepts,
the
reconveyance shall be evidenced by an agreement in form and substance acceptable
to Landlord. If Landlord fails to accept or reject the offer within the thirty
(30) day period then Landlord shall be deemed to have rejected the offer of
reconveyance, but no such rejection shall be deemed to be a consent to the
requested Transfer. This provision shall not apply in the case of a proposed
Transfer covered by Section 7.3.2. [SEE
RIDER]
7.5. Excess
Xxxx.Xx
the
case of any Transfer made without Landlord's prior written consent Landlord
may
nevertheless collect Rent from the Transferee and apply the net amount collected
to the Rent herein reserved. The acceptance by Landlord of the payment of Rent
following any Transfer not expressly consented to by Landlord pursuant to this
Section shall not be deemed to be a consent by Landlord to such Transfer nor
shall the same be deemed to be a waiver of any right or remedy of Landlord
hereunder, nor constitute a release of Tenant or any guarantor of Tenant's
obligations from the further performance by Tenant and such guarantor of the
terms and provisions of this Lease and any such guaranty. Furthermore, under
any
and all circumstances, in the case of any Transfer, Tenant shall pay to Landlord
monthly, as Additional Rent, the 50% of the excess of the consideration received
or to be received during such month for such Transfer (whether or not
denominated as rent) over the Rent reserved for such month in this Lease
applicable to such portion of the Premises so Transferred. [SEE
RIDER]
8. Abandonment
of Premises or Tenant’s Personal Property; Surrender of
Premises.
8.1. Abandonment.Tenant
shall not vacate or abandon the Premises at any time during the Term of this
Lease. If Tenant does vacate or abandon the Premises or is dispossessed by
process of law then any of Tenant’s Personal Property left on the Premises may,
at the option of the Landlord, be deemed to have been abandoned by Tenant,
in
which case the provisions of Subsection 8.4 shall apply. [SEE
RIDER]
8.2. Surrender.Unless
sooner terminated, this Lease shall expire absolutely upon the expiration of
the
Term without the necessity of any notice or other action from or by either
party. At the expiration or earlier termination of the Term of this Lease,
Tenant shall peaceably surrender the Premises in broom clean condition and
good
order and repair and otherwise in the same condition as the Premises
8
were
upon
the Commencement Date, except (i) ordinary wear and tear, (ii) to the extent
that the Premises is not required to be repaired or maintained by Tenant
and
(iii) damage by Casualty. Tenant shall surrender to Landlord all keys for
the
Premises to Landlord's Notice Address and shall notify Landlord in writing
of
all combinations or codes for any other locks, vaults or alarm systems, if
any,
installed in the Premises. Landlord shall inspect the Premises to determine
whether they are returned in the condition called for under this Section.
Tenant
shall be afforded a reasonable opportunity to be present at such inspection.
Tenant's obligations to observe and perform the covenants set forth in this
Subsection shall survive the expiration or earlier termination of this Lease.
[SEE
RIDER]
8.3. Removal
of Cabling, Alterations.
Unless
Landlord otherwise specifically agrees in writing at or prior to installation,
all data and communications cabling and equipment installed in Premises or
otherwise in the Building, and which was installed (either as Leasehold
Improvements or Alterations) specifically to serve the Tenant in its use of
the
Premises, shall be removed by Tenant upon the termination of the Lease, at
Tenant’s sole cost and expense. Tenant shall repair any damage to the Premises
or the Building caused by the removal of such cabling and equipment and shall
restore the Premises and Building to substantially the same condition as existed
prior to the installation of such cabling and equipment. If
Landlord intends to elect to require that any other Alterations proposed to
be
made by Tenant to the Premises be removed at the termination of this Lease,
then
Landlord shall so indicate to Tenant at the time Landlord gives its consent
to
the construction or installation of such Alterations; otherwise, such
Alterations shall be permitted to remain in the Premises and not be removed
as
of the termination of this Lease. If
Landlord elects to require that other Alterations made by Tenant to the Premises
be removed at the termination of this Lease, then Tenant hereby agrees to cause
the same to be removed at its sole cost and expense. If Tenant fails to remove
any of the same, then Landlord may cause them to be removed at Tenant's expense,
and Tenant hereby agrees to reimburse Landlord for all Fees and Costs which
Landlord incurs due to Tenant's failure to remove the same. Alternatively,
Landlord may elect that all or any of the cabling and equipment or other
Alterations shall remain at the termination of this Lease and not be removed.
[SEE
RIDER]
8.4. Removal
of Tenant’s Personal Property, Trade Xxxxxxxx.Xx
the
expiration or earlier termination of the Term of this Lease, Tenant shall
immediately remove all of Tenant’s Personal Property from the Premises and,
failing to do so, Landlord at its option may either: (i) cause Tenant’s Personal
Property to be removed at Tenant’s risk and expense (both as to loss and damage)
in which case Tenant hereby agrees to pay all Fees and Costs incurred by
Landlord, including sums paid to store the property elsewhere, together with
the
costs of any repairs to the Premises caused by the removal of Tenant’s Personal
Property; and (ii) upon five (5) days Notice to Tenant, which the parties agree
is commercially reasonable, sell at public or private sale any or all of such
Tenant’s Personal Property, whether exempt or not from sale under execution or
attachment (such property being deemed charged with a lien in favor of Landlord
for all sums due hereunder), or (iii) at Landlord's option, title shall pass
to
Landlord. [SEE
RIDER]
9. Repairs
and Alterations.
9.1. Repairs
to be made by Landlord.Landlord
shall keep the Center and the Building, and all machinery, equipment, fixtures
and systems of every kind attached to, or used in connection with the operation
of, the Building, including all electrical, heating, mechanical, sanitary,
sprinkler, utility, power, plumbing, cleaning, refrigeration, ventilating,
air-conditioning and elevator systems and equipment (excluding, however, lines,
improvements, systems and machinery for water, gas, steam, electricity and
data
and communications services owned and maintained by any public utility
company,
9
governmental
agency or body or other public or private service provider) in good order
and
repair consistent with the operation of the Center and the Building as a
first-class office building. Landlord, at its cost and expense, shall make
all
repairs and replacements necessary to comply with its obligations set forth
in
the immediately preceding sentence, except as otherwise provided in Subsections
9.2, 9.3, 9.5 and 14.5. There shall be no abatement in Rent due and payable
hereunder and no liability on the part of Landlord by reason of any
inconvenience, annoyance or injury arising from Landlord's making reasonable
repairs, additions or improvements to the Building in accordance with its
obligations hereunder. Landlord shall have no obligation hereunder to make
repairs to Tenant's Alterations or to Tenant's Personal Property. [SEE
RIDER]
9.2. Repairs
to be made by Tenant.
All
repairs to the Premises, or to any Alterations, installations, equipment or
facilities located therein, other than those repairs required to be made by
Landlord pursuant to Subsections 9.1 or 16.1, including Alterations required
by
Legal Requirements (but subject to the provisions of Subsection 9.5) shall
be
made by Tenant at its expense and in a professional manner.
9.3. Damage
to Premises, Building, Center.
Except
as, and to the extent, otherwise provided in Subsection 14.5, Tenant will be
liable for the cost and expense of the repair of any damage to the Premises,
however caused, and regardless of fault (unless caused or created by Landlord,
its agents, employees or contractors); Landlord shall make such repairs at
the
cost of Tenant, which Tenant shall pay promptly upon receipt of an invoice,
as
Additional Rent. Tenant shall also reimburse Landlord, upon demand (as
Additional Rent), for the cost of the repair of any damage to or dangerous
condition caused or created elsewhere in the Center, if caused or created by
Tenant, its employees, agents or contractors. If Tenant fails to commence such
repair or remediation within five (5) days after Landlord's notice to do so,
or
if Landlord elects to undertake such repair or remediation for the account
of
Tenant, then Tenant agrees to pay to Landlord promptly upon Landlord's demand,
as Additional Rent. Tenant's obligations for Additional Rent hereunder shall
accrue interest thereon at the Reimbursement Rate until paid; and its payment
and performance obligations hereunder shall survive the termination of this
Lease. Tenant’s obligations under this Section do not apply in the case of
remediation following a Casualty. [SEE
RIDER]
9.4. Alterations
by Tenant.
9.4.1 Tenant
may make Alterations to the Premises consisting solely of decorations, painting,
plastering or carpeting, without Landlord’s written consent, but Tenant shall be
required to give Landlord at least ten (10) days prior Notice thereof. Tenant
shall be required to obtain the prior written approval of Landlord for any
other
Alterations. Landlord will not unreasonably withhold, condition or delay its
consent to Tenant’s request if all of the following conditions are satisfied:
(i) the proposed Alterations are to be located wholly within the Premises and
are not visible from the exterior of the Premises or the Building; (ii) the
proposed Alterations will not decrease the value of the Building or Center;
(iii) the proposed Alterations will not affect the structural integrity of
the
Building; (iv) the proposed Alterations do not require modification to, or
affect the operation of any part of, the HVAC, plumbing, electricity, fire
suppression or water and sewer systems service of the Building or Center. In
all
other cases, Tenant shall be required to obtain the prior written approval
of
Landlord before making Alterations, which approval may be withheld in Landlord’s
sole discretion.
9.4.2 If
Landlord’s consent is required for the making of an Alteration then Tenant’s
request for consent will be accompanied by reasonably complete plans and
specifications for the proposed Alterations. If such approval is granted, Tenant
shall cause the Alterations described in such plans and
10
specifications
to be performed, at its expense, promptly, efficiently, competently and in
a
good and workmanlike manner by duly qualified and licensed persons or entities,
without interference with or disruption to the operations of tenants or other
occupants of the Building or the Center. Alterations shall only be made after
Tenant has obtained any necessary permits from governmental authorities for
the
Alterations. Tenant shall notify Landlord of the date on which work on
Alterations is scheduled to begin and shall arrange for periodic inspections
by
Landlord of the job progress to insure compliance with the approved plans
and
specifications. All such work shall comply with all Legal Requirements and
shall
be performed by contractors who are approved by Landlord and who carry the
insurance coverage required in Section 15. Landlord shall have the right
to
require Tenant, or Tenant's contractor, to furnish bond in an amount equal
to
the estimated cost of construction, as well as further assurances against
mechanics' liens including, but not limited to, lien waivers and releases
from
all contractors, subcontractors, and suppliers. [SEE
RIDER]
9.4.3 Landlord
may elect that any Alterations be performed by Landlord or by contractors
engaged by and under the direction of Landlord, in which case such Alterations
shall nevertheless be made at Tenant's sole cost, payable by Tenant as
Additional Rent; and such cost shall include a supervisory fee of fifteen
percent (15%) of the total cost of the work. If Tenant makes any Alterations
without Landlord’s prior consent then, in addition to Landlord's other remedies,
Landlord may correct or remove such Alterations and Tenant shall, on demand,
pay
the cost thereof (plus fifteen percent (15%) of such cost as a supervisory
fee)
as Additional Rent. If any mechanic's lien is filed against the Premises or
the
Building or the Center for work or materials furnished to Tenant (other than
by
Landlord) the lien shall be discharged by Tenant within ten (10) days
thereafter, solely at Tenant's expense, by either paying off or bonding the
lien. Should Tenant fail to discharge any lien within ten (10) days of its
filing, then, in addition to Landlord's other remedies, Landlord shall have
the
right, but not the obligation, to discharge said lien at Tenant's expense,
in
which case Tenant shall reimburse Landlord for the same upon demand, as
Additional Rental, together with interest accounting from the date of demand
until payment is made. [SEE
RIDER]
9.5. Alterations
to Comply with Legal Requirements.
9.5.1 If
any
Alterations are required to be made to the Premises, the Building or the Center
due to Legal Requirements because the same were in actual violation of any
Legal
Requirements on the Commencement Date, or if, as a result of Landlord
undertaking any Alterations elsewhere in the Center, Alterations are required
to
be made to the Premises, the Building or the Center due to Legal Requirements,
then Landlord shall make such Alterations at its sole cost and expense (and
such
expenses shall not be included within Operating Costs or charged as Additional
Rent to Tenant); and Landlord shall take all reasonable steps to minimize
disruption to Tenant while making such Alterations.
9.5.2 Subject
to Landlord's obligations set forth in the previous Subsection and in the
following Subsection, if any Alterations are required to be made to the
Premises, the Building or the Center due to a change in, or change in the
interpretation of, or more stringent enforcement of, Legal Requirements
occurring on or after the Commencement Date (and not in connection with
Alterations elsewhere in the Center undertaken by Landlord), then Landlord
shall
make such Alterations as aforesaid, provided that the cost of such Alterations
shall be amortized over their useful life and a ratable portion of such cost
shall be included within the definition of Operating Costs in each Lease Year
until such cost is fully amortized. [SEE
RIDER]
9.5.3 If
(i)
any Alterations are required to be made to the Premises or to all or any part
of
the Center other than the Premises due to Legal Requirements and as a
consequence of any Alterations
11
made
by
Tenant within the Premises, or (ii) any Alterations are required to be made
to
all or any part of the Center, including the Premises, at any time during
the
Term pursuant to any Legal Requirements relating to accessibility by persons
with disabilities or otherwise pursuant to the ADA (collectively, the
"Accessibility Alterations"), because the Premises, as used by Tenant, is
deemed
to be a “place of public accommodation” under the ADA, then all such required
Alterations shall be made by Tenant at its sole cost and expense unless Landlord
otherwise agrees; and, if Landlord elects to make such Alterations, then
such
Alterations shall be at Tenant's sole cost and expense, and payable by Tenant
as
Additional Rent; and such cost shall include a supervisory fee of fifteen
percent (15%) of the total cost of the work. [SEE
RIDER]
9.5.4 Within
ten (10) days after receipt, Tenant shall advise Landlord in writing, and
provide Landlord with a copy of (as applicable), any notices alleging violation
of Legal Requirements relating to any portion of the Center or of the Premises;
any claims made or threatened in writing regarding noncompliance with Legal
Requirements and relating to any portion of the Center or of the Premises;
or
any governmental or regulatory actions or investigations instituted or
threatened regarding noncompliance with the ADA and relating to any portion
of
the Center or the Premises.
10. Common
Areas.
10.1. Use
of Common Areas.
Landlord
grants to Tenant and its agents, employees and invitees, a non-exclusive license
to use the Common Areas in the Center in common with others during the Term,
subject to the exclusive control and management thereof at all times by Landlord
or others and subject, further, to the rights of Landlord set forth elsewhere
in
this Section. [SEE
RIDER]
10.2. Management
and Operation of Common Areas.
The
Common Areas will be operated and maintained in a manner deemed by Landlord
to
be reasonable and appropriate and in the best interests of the Center generally.
Landlord will have the right (i) to establish, modify and enforce rules and
regulations with respect to the Common Areas; (ii) to enter into, modify and
terminate easements and other agreements pertaining to the use and maintenance
of the Common Areas; (iii) to implement a parking management plan; (iv) to
close
all or any portion of the Common Areas to such extent as may, in the opinion
of
Landlord, be necessary to prevent a dedication thereof or the accrual of any
rights to any person or to the public therein; (v) to close temporarily any
or
all portions of the Common Areas; and (vi) to do and perform such other acts
in
and to said areas and improvements as, in the exercise of good business
judgment, Landlord shall determine to be advisable. [SEE
RIDER]
10.3. Changes
and Additions to the Center.
Landlord
reserves the right at any time and from time to time to (i) make or permit
changes or revisions in the plan for the Center, including additions to,
subtractions from, rearrangements of, alterations, modifications of, or
supplements to, the building areas, walkways, driveways, parking areas, or
other
Common Areas; (ii) construct other buildings or improvements on the Center
(including any portion of the Common Areas) and make alterations thereof or
additions thereto and build additional stories on or in any such building(s)
and
build extensions adjoining same; and (iii) make or permit changes or revisions
to the Center, including additions thereto, and to convey portions of the Center
(including any portion of the Common Areas) to others for the purpose of
constructing thereon other buildings or improvements, including additions
thereto and alterations thereof; provided however that Landlord shall not
unreasonably
impair or impede access to the Premises by Tenant, its employees and invitees.
Any
diminution or shutting off of light, air or view by any structure which may
be
erected on lands adjacent to or near the Building shall in no way affect this
Lease or impose any liability on Landlord. [SEE
RIDER]
12
10.4. Roof
and Walls; Excavations.
Landlord
shall have the exclusive right to use all or any part of the roof of the
Premises for any purpose; to erect additional stories or other structures over
all or any part of the Premises; to erect in connection with the construction
thereof temporary scaffolds and other aids to construction on the exterior
of
the Premises, provided that access to the Premises shall not be denied or
materially impeded; and to install, maintain, use, repair and replace within
the
Premises pipes, ducts, conduits, wires and all other mechanical equipment
serving other parts of the Building, the same to be in locations within the
Premises as will not unreasonably deny or adversely affect Tenant's use thereof.
Landlord may make any use it desires of the side or rear walls of the Premises,
provided that such use shall not encroach upon the interior of the Premises.
If
an excavation shall be made upon land adjacent to the Premises, or shall be
authorized to be made, Tenant shall afford to the person causing or authorized
to cause such excavation, license to enter the Premises for the purpose of
doing
such work as Landlord shall deem necessary to preserve the wall or the
Landlord's Building of which the Premises form a part from injury or damage
and
to support the same by proper foundations, without any claim for damages or
indemnification against Landlord, for diminution or abatement of rent.
[SEE
RIDER]
11. Operating
Costs.
11.1. Tenant’s
Proportionate Share of Increased Operating Costs. If
Operating Costs during any whole or partial Operating Year exceed the Base
Operating Costs then Tenant shall pay to Landlord, as Additional Rent, Tenant’s
Proportionate Share of increased Operating Costs. Such Proportionate Share
shall
be paid by Tenant in monthly installments in such amounts as are estimated
and
billed by Landlord at the beginning of each Operating Year. Each installment
payment in respect of Operating Costs shall be due on the first day of each
calendar month or otherwise as indicated by Landlord’s statement. At any time
during an Operating Year Landlord may re-estimate Tenant's Proportionate Share
of Operating Costs and adjust Tenant's monthly installments payable during
such
Operating Year to reflect more accurately Tenant's Proportionate Share of
Operating Costs. [SEE
RIDER]
11.2. Expense
Statement; Accounting.Promptly
following the close of each Operating Year Landlord shall deliver to Tenant
a
statement of Operating Costs (the "Expense Statement") for such Operating Year
and the monthly installments paid or payable shall be adjusted between Landlord
and Tenant, and Tenant shall pay Landlord or Landlord shall credit Tenant's
account (or, if such adjustment is at the end of the Term, Landlord shall pay
Tenant), as the case may be, within fifteen (15) days of receipt of such
statement, the amount of any excess or deficiency in Tenant's Proportionate
Share of Operating Costs paid by Tenant to Landlord during such Operating Year.
[SEE
RIDER]
11.3. Tenant
Right to Audit.Following
receipt of an Expense Statement Tenant shall have the right to conduct a
reasonable review of Landlord's records relating to Operating Costs for the
Operating Year just ended, and to which the Expense Statement relates, provided
that Tenant strictly complies with the provisions of this Subsection. No review
shall be permitted at any time in which a Default exists under this Lease
(including a Default arising by virtue of Tenant’s failure to pay any sum deemed
Additional Rent, regardless of dispute as to the propriety Landlord’s claim for
payment). If a Default occurs at any time during the pendency of a review of
records then the review right shall immediately cease, and the matters set
forth
in the Expense Statement under review shall be conclusively deemed correct.
No
subtenant shall have the right to conduct any such review; and no assignee
of
Tenant shall have the right to conduct any review with respect to a period
antedating the assignment. Tenant shall exercise its right upon not less than
fifteen (15) days’ prior Notice, given at any time within sixty (60) days
following Tenant’s receipt of an Expense Statement (time being of the essence).
Any such review
13
shall
be
conducted by Tenant or by an independent certified public accountant of Tenant’s
choosing that is not being compensated by Tenant on a contingency fee basis.
If
Tenant employs such a third party reviewer then as a condition precedent
to such
review Tenant shall deliver to Landlord a copy of Tenant’s written agreement
with such accountant which shall include provisions which state that (i)
Landlord is an intended third-party beneficiary of the agreement, (ii) the
accountant will not in any manner solicit or agree to represent any other
tenant
of the Center with respect to a review of Landlord’s accounting records at the
Center, and (iii) the accountant will maintain in strict confidence any and
all
information obtained in connection with the review and will not disclose
the
fact of the review or any results of it to any person or entity other than
to
the Tenant. Any such review shall be conducted at Landlord’s office at the
Center or at Landlord’s principal offices, or at such other location as Landlord
may reasonably designate. Landlord will provide Tenant with reasonable
accommodation for the review and reasonable use of available office equipment,
but may make a reasonable charge for Tenant’s telephone calls and photocopies.
Tenant shall deliver to Landlord a copy of the results of any such review
within
fifteen (15) days following its completion or receipt by Tenant and will
maintain in strict confidence any and all information obtained in connection
with the review and will not disclose the fact of the review or any results
of
it to any person or entity. A dispute over the Expense Statement or any error
by
Landlord in interpreting or applying the provisions of this Lease respecting
Operating Costs or in calculating the amounts in the Expense Statement shall
not
be a breach of this Lease by Landlord, and even if any legal proceeding over
the
Expense Statement is resolved against Landlord this Lease shall remain in
full
force and effect and Landlord shall not be liable for any consequential damages.
Pending the determination of any such dispute Tenant shall pay amounts billed
with respect to such Expense Statement as Additional Rent, without prejudice
to
Tenant's position, and subject to rebate of any amounts subsequently found
to
have been charged to Tenant in error. If the dispute shall be determined
in
Tenant's favor then Landlord shall promptly pay to Tenant the amount of Tenant's
overpayment of Rent resulting from compliance with the Expense Statement
together with interest from the time of such overpayment at the Reimbursement
Rate, together with all of Tenant's attorney fees, costs and expenses incurred
in contesting the Expense Statement. [SEE
RIDER]
12. Taxes.
12.1. Tenant's
Proportionate Share of Increased Taxes.
Landlord
shall pay all Taxes levied upon or assessed against the land and improvements
comprising the Center and the appurtenances thereto during the Term of this
Lease, in the first instance. If Taxes during any whole or partial Tax Year
exceed the Base Taxes then Tenant shall pay to Landlord, as Additional Rent,
Tenant’s Proportionate Share of increased Taxes. [SEE
RIDER]
14
12.2. Payment
of Proportionate Share of Taxes.
Tenant's
Proportionate Share of Taxes shall be paid by Tenant, at Landlord's election
(i)
in advance, in equal monthly installments in such amounts as are estimated
and
billed for each Tax Year by Landlord at the commencement of the Term and at
the
beginning of each successive Tax Year during the Term, each such installment
being due on the first day of each calendar month or (ii) in lump sum, following
Landlord's receipt of the tax xxxx for the Tax Year in question, and calculation
of Tenant's Proportionate Share with respect thereto. If Landlord has elected
that Tenant pay its Proportionate Share of Taxes in installments, in advance,
then, at any time during a Tax Year, Landlord may re-estimate Tenant's
Proportionate Share of Taxes and thereafter adjust Tenant's monthly installments
payable during the Tax Year to reflect more accurately Tenant's Proportionate
Share of Taxes. Promptly following Landlord's receipt of tax bills for each
Tax
Year Landlord will notify Tenant of the amount of Taxes for the Tax Year in
question and the amount of Tenant's Proportionate Share thereof. Any overpayment
or deficiency in Tenant's payment of its Proportionate Share of Taxes for each
Tax Year shall be adjusted between Landlord and Tenant; Tenant shall pay
Landlord or Landlord shall credit to Tenant's account (or, if such adjustment
is
at the end of the Term, Landlord shall pay Tenant), as the case may be, within
fifteen (15) days of the aforesaid notice to Tenant, such amount necessary
to
effect such adjustment. Landlord's failure to provide such notice within the
time prescribed above shall not relieve Tenant of any of its obligations
hereunder. [SEE
RIDER]
12.3. Taxes
on Rent.
In
addition to Tenant's Proportionate Share of Taxes, Tenant shall pay to the
appropriate agency any sales, excise and other tax (not including, however,
Landlord's income taxes) levied, imposed or assessed by the State of Maryland
or
any political subdivision thereof or other taxing authority upon any Rent
payable hereunder. Tenant shall also pay, prior to the time the same shall
become delinquent or payable with penalty, all taxes imposed on its inventory,
furniture, trade fixtures, apparatus, equipment, Leasehold Improvements
installed by Tenant or by Landlord on behalf of Tenant (except to the extent
such Leasehold Improvements or Alterations shall be covered by Taxes referred
to
in Subsection 12.1 hereof), and any other property of Tenant. [SEE
RIDER]
13. Services
and Utilities. [SEE RIDER]
13.1. Provision
of Services and Utilities to Premises.
During
the Term Landlord
shall provide the following facilities and services to Tenant as part of
Operating Costs (except as otherwise provided herein): [SEE
RIDER]
13.1.1 Xxxxxxxx.Xx
least
one elevator subject to call at all times, including Sundays and holidays,
in
elevator-serviced buildings. The foregoing notwithstanding, if only one (1)
elevator serves the Building, Landlord shall have the right to remove it from
service for the performance of repairs, maintenance or testing or due to an
emergency. [SEE
RIDER]
13.1.2 Utilities.During
Building operating hours, as determined and published by Landlord from time
to
time, reasonable amounts of natural gas for gas-serviced buildings, electric
current for lighting, small items of office equipment, subject to the provisions
of Section 13.3 and central heating and air conditioning during the seasons
of
the year when these services are normally and usually furnished, and within
the
temperature ranges of six degrees Fahrenheit plus or minus the dialed or
regulated temperature on interior thermostats, and otherwise in such amounts
normally or usually furnished in comparable office buildings in the locale
of
the Center. Landlord shall provide the aforesaid services at other times and
on
Sundays and holidays (“after-hours service”) at Tenant's expense, provided
Tenant gives Landlord notice by 1:00 p.m. on weekdays for after-hours service
on
the next weekday, by 1:00 p.m. the day before a holiday for service on a
holiday, and by 1:00 p.m. on Friday for after-hours service on Saturday or
service on Sunday. Such after-hours service shall be charged to Tenant at rates
to
15
be
determined by Landlord, which rates shall be given to Tenant on request.
Landlord reserves the right to adjust from time to time, in its sole discretion,
the rate at which such services shall be provided; Tenant shall pay for such
service, as Additional Rent, promptly upon receipt of an invoice with respect
thereto. [SEE
RIDER]
13.1.3 Xxxxxxxx.Xxxxxxxx
in Landlord's standard manner Monday through Friday exclusive of legal holidays.
[SEE
RIDER]
13.1.4 Lighting.Replacement
of light tubes or bulbs for building standard light fixtures. All light tube
or
bulb replacements for special non-standard lighting fixtures shall be furnished
and installed by Landlord at Tenant's expense.
13.1.5 Xxxxxxxxxx.Xxxx
room
facilities and necessary lavatory supplies, including hot and cold running
water
at the points of supply, as provided for general use of all tenants in the
Building.
13.1.6 Common
Area Maintenance.Routine
maintenance, painting, and electric lighting service for all Common Areas of
the
Building in such manner as Landlord deems reasonable. [SEE
RIDER]
13.1.7 Signage.
Suite
entry and Building directory signage in accordance with Landlord’s Building
standard specifications.
13.2. Interruption
of Service.Any
failure by Landlord to furnish the foregoing services, resulting from
circumstances beyond Landlord's reasonable control or from interruption of
such
services due to repairs or maintenance, shall not render Landlord liable in
any
respect for damages to either person or property, nor be construed as an
eviction of Tenant, nor cause an abatement of Rent hereunder, nor relieve Tenant
from any of its obligations hereunder. If any public utility or governmental
body shall require Landlord or Tenant to restrict the consumption of any utility
or reduce any service for the Premises or the Center then Landlord and Tenant
shall comply with such requirements, whether or not the utilities and services
referred to in this Section are thereby reduced or otherwise affected, without
any liability on the part of Landlord to Tenant or any other person or any
reduction or adjustment in Rent payable hereunder. Landlord and its agents
shall
be permitted reasonable access to the Premises for the purpose of installing
and
servicing systems within the Premises deemed necessary by Landlord to provide
the services and utilities referred to in this Section to Tenant and other
tenants in the Building. [SEE
RIDER]
13.3. Tenant's
Consumption of Electricity.Tenant
covenants that, unless permitted pursuant to the terms of this Section, it
shall
not consume more electrical current than the amount considered by Landlord
to be
reasonable for standard office usage within the Premises (“Base Current”).
Landlord shall be under no obligation to furnish electrical energy other than
the Base Current, and Tenant shall not install or use on the Premises any
electrical equipment, appliance or machine requiring more electrical energy
than
the Base Current, unless the installation and use of such additional electrical
equipment, appliance or machine has been approved by Landlord pursuant to terms
and conditions set forth in a separate agreement, which approval may be
conditioned upon the payment by Tenant, as Additional Rent, of the cost of
the
additional electrical energy and modifications to the Building electrical system
required for the operation of such electrical equipment, appliance or machine.
16
14. Indemnifications
and Waiver of Claims.
14.1. Indemnity
by Xxxxxx.Xx
the
maximum extent permitted by law, but subject to the provisions of Subsection
14.5, Tenant indemnifies Landlord, any Superior Lessor and any Superior
Mortgagee, and agrees to save them harmless and, at the option of any of them,
defend them from and against any and all claims, actions, damages, liabilities
and expenses (including attorneys' and other professional fees) judgments,
settlement payments, and fines paid, incurred or suffered by any of them in
connection with loss of life or personal injury, or damage to property or to
the
environment, suffered by third parties, or in connection with any accident,
injury or damages whatever in the Premises, and arising from or out of the
conduct or management of the Premises or of any business therein, or any work
or
thing whatsoever done, or any condition created in or about the Premises during
the Term of this Lease or during the period of time, if any, prior to the
Commencement Date that Tenant may have been given access to the Premises.
[SEE
RIDER]
14.2. Indemnity
by Xxxxxxxx.Xx
the
maximum extent permitted by law, but subject to the provisions of Subsection
14.5, Landlord indemnifies Tenant and agrees to save it harmless from and
against any and all claims, actions, damages, liabilities and expenses
(including attorneys' and other professional fees) judgments, settlement
payments, and fines paid, incurred or suffered by any of them in connection
with
loss of life or personal injury, or damage to property suffered by third parties
arising from or out of the use of any portion of the Common Areas by Landlord,
occasioned wholly or in part by any act or omission of Landlord, its officers,
agents, contractors or employees. [SEE
RIDER]
14.3. Survival
of Indemnities.Landlord's
and Tenant's obligations pursuant to Subsections 14.1 and 14.2 shall survive
any
termination of this Lease with respect to any act, omission or occurrence which
took place prior to such termination.
14.4. Limitation
on Landlord's Liability for Loss, Damage and Xxxxxx.Xx
the
maximum extent permitted by law, Tenant shall occupy and use the Premises,
the
Building and the Common Areas at Tenant's own risk. All property of Tenant
shall
be and remain at the sole risk of Tenant. Tenant hereby expressly agrees that
Landlord and its agents, servants and employees shall not be liable or
responsible for any damage or injury to the person or property of Tenant
directly or indirectly caused by any source, circumstance or cause whatsoever.
The foregoing waiver and release is intended by Landlord and Tenant to be
absolute and unconditional, and without exception, and to supersede any specific
repair obligation imposed by Landlord hereunder; provided that such waiver
and
release shall not apply to the omission, fault, negligence, or other misconduct
of Landlord except to the extent such omission, fault, negligence or other
misconduct is waived by Tenant after the occurrence or is waived pursuant to
Tenant's policies of fire insurance with standard broad form coverage
indorsements, which waiver Tenant is obligated to obtain and shall be liable
for
failure to obtain. No representation, guaranty, assurance or warranty is made
or
given by Landlord that the communications or security systems, devices or
procedures used, if any, will be effective to prevent injury to Tenant or any
other person or damage to, or loss (by theft or otherwise) of any of Tenant's
Personal Property or of the property of any other person, and Landlord reserves
the right to discontinue or modify at any time such communications or security
systems, devices or procedures without liability to Tenant. [SEE
RIDER]
14.5. Waiver
of Right of Recovery.Except
as
provided in Subsection 6.4, neither party, nor its officers, directors,
employees, agents or invitees, nor, in case of Tenant, its subtenants, shall
be
liable to the other party or to any insurance company (by way of subrogation
or
otherwise) insuring the other party for any loss or damage to any building,
structure or other tangible property, when such loss is caused by any of the
perils which are or could be insured against under a standard policy of full
17
replacement
cost insurance for fire, theft and all risk coverage, or losses under workers'
compensation laws and benefits, even though such loss or damage might have
been
occasioned by the negligence of such party, its agents or employees (this
clause
shall not apply, however, to any damage caused by intentionally wrongful
actions
or omissions); provided, however, that if, by reason of the foregoing waiver,
either party shall be unable to obtain any such insurance, such waiver shall
be
deemed not to have been made by such party and, provided, further, that if
either party shall be unable to obtain any such insurance without the payment
of
an additional premium therefor, then, unless the party claiming the benefit
of
such waiver shall agree to pay such party for the cost of such additional
premium within thirty (30) days after notice setting forth such requirement
and
the amount of the additional premium, such waiver shall be of no force and
effect between such party and such claiming party. Each party shall use
reasonable efforts to obtain such insurance from a company that does not
charge
an additional premium or, if that is not possible, one that charges the lowest
additional premium. Each party shall give the other party notice at any time
when it is unable to obtain insurance with such a waiver of subrogation without
the payment of an additional premium and the foregoing waiver shall be effective
until thirty (30) days after notice is given. Each party represents that
its
current insurance policies allow such waiver. The provisions of this Section
shall not limit the indemnification for liability to third parties pursuant
to
Subsections 14.1 and 14.2.
15. Insurance.
15.1. Tenant's
Insurance.Tenant,
at its expense, shall obtain and maintain in effect as long as this Lease
remains in effect and during such other time as Tenant occupies the Premises
or
any part thereof, insurance policies providing at least the following
coverage:
15.1.1 commercial
general liability insurance written on an occurrence basis with respect to
the
Premises and the business operated by Tenant and any subtenants, concessionaires
or licensees of Tenant, to afford insurance against personal injury, death
and
property damage, and including insurance against assumed or contractual
liability under this Lease, specifically including the liability of Tenant
arising out of the indemnities provided in Subsection 14.1, with minimum
combined single limits of Two Million Dollars ($2,000,000) per occurrence and
in
the aggregate;
15.1.2 all-risk
property and casualty insurance, including theft coverage, written at full
replacement cost value and with full replacement cost endorsement, covering
all
of Tenant's Personal Property and Tenant's interest in all Alterations installed
in the Premises by or on behalf of Tenant (other than the Leasehold Improvements
constructed by Landlord as provided in Section 4 of this Lease); and
[SEE
RIDER]
15.1.3 comprehensive
boiler and machinery equipment insurance, including electrical apparatus, if
applicable; and,
15.1.4 if
and to
the extent required by law, workers’ compensation or similar insurance in form
and amounts required by law.
15.2. Tenant's
Contractor's Insurance.Tenant
shall require any contractor of Tenant performing work on or about the Premises
to carry and maintain, at no expense to Landlord:
15.2.1 commercial
general liability insurance written on an occurrence basis with respect to
the
Premises and the business operated by Tenant and any subtenants, concessionaires
or licensees of Tenant, to afford insurance against personal injury, death
and
property damage, and including
18
insurance
against assumed or contractual liability under this Lease, with minimum combined
single limits of Two Million Dollars ($2,000,000) per occurrence and in the
aggregate;
15.2.2 comprehensive
automobile liability insurance with limits for each occurrence of not less
than
One Million Dollars ($1,000,000) with respect to personal injury or death and
Five Hundred Thousand Dollars ($500,000) with respect to property damage;
and
15.2.3 workers’
compensation or similar insurance in form and amounts required by
law.
15.3. Policy
Requirements.The
company or companies writing any insurance which Tenant or Tenant's contractor
is required to carry and maintain or cause to be carried or maintained pursuant
to Subsections 15.1 and 15.2 shall be licensed to do business in the State
of
Maryland and have an A. M. Best rating of at least A/VIII. The form of such
insurance shall at all times be subject to Landlord's approval. Public liability
policies shall name Landlord and/or its designee(s) as additional insured,
shall
be primary and non-contributory, and shall also contain a provision by which
the
insurer agrees that such policy shall not be canceled, materially changed or
not
renewed without at least thirty (30) days advance notice to Landlord, at
Landlord's Notice Address, by certified mail, return receipt requested, or
to
its designee. Each such policy, or a certificate thereof, shall be deposited
with Landlord by Tenant promptly upon commencement of Tenant's obligation to
procure the same.
15.4. Tenant's
Failure to Insure.If
Tenant
fails to obtain insurance as required under this Section then Landlord may,
but
shall not be obligated to, obtain such insurance, and in such event, Tenant
agrees to pay, as Additional Rent, the premium for such insurance upon demand
by
Landlord.
15.5. Landlord's
Insurance Coverage.During
each Operating Year Landlord shall maintain in force, under one or more
policies, property insurance coverage with respect to the Building and the
Center generally, including, without limitation, commercial general liability
insurance, insurance against fire, all-risk coverage including earthquake and
flood, theft or other casualties and such other liability and property insurance
coverage deemed appropriate by Landlord with such coverage limits, deductible
amounts and companies as Landlord may determine.
16. Casualty
and Condemnation.
16.1. Landlord's
Obligation to Repair and Reconstruct.
If the
Premises shall be damaged by a Casualty but the Premises shall not be thereby
rendered wholly or partially untenantable, then Landlord shall promptly cause
such damage to be repaired and there shall be no abatement of Rent. If, as
the
result of such Casualty, the Premises shall be rendered wholly or partially
untenantable, then, subject to the provisions of Subsection 16.2, Landlord
shall
cause such damage to be repaired and all Rent shall be abated proportionately
as
to the portion of the Premises rendered untenantable during the period of such
untenantability. All such repairs shall be made at the expense of Landlord,
but
Landlord shall not be required to perform any work within the Premises beyond
that described and constructed by Landlord prior to the Commencement Date as
Leasehold Improvements. Landlord shall not be liable for interruption to
Tenant's business or for damage to or replacement or repair of Tenant's Personal
Property or to any Alterations, all of which damage, replacement or repair
shall
be undertaken and completed by Tenant promptly.
16.2. Landlord's,
Tenant’s Options to Terminate Lease.
19
16.2.1 If
the
Premises are (a) rendered wholly untenantable, or (b) damaged as a result of
any
cause which is not covered by Landlord's insurance, or if the Building is
damaged to the extent of fifty percent (50%) or more of the Rentable Area of
the
Premises, or if, for reasons beyond Landlord's control or by virtue of the
terms
of any financing of the Building, sufficient insurance proceeds are not
available for the reconstruction or restoration of the Building or Premises,
then, in any such events, Landlord may elect to terminate this Lease by giving
to Tenant notice of such election within ninety (90) days after the occurrence
of such event, or after the insufficiency of such proceeds becomes known to
Landlord, whichever is applicable. If such notice is given, the rights and
obligations of the parties shall cease as of the date set forth in such notice,
and the Basic Rent and Additional Rent (other than any Additional Rent due
Landlord either by reason of Tenant's failure to perform any of its obligations
hereunder or by reason of Landlord's having provided Tenant with additional
services hereunder) shall be adjusted as of the date of such termination.
[SEE
RIDER]
16.2.2 If,
within the 90 day period set forth above, Landlord shall not have made an
election to rebuild or to terminate this Lease as provided in the preceding
paragraph, then Tenant may elect to terminate this Lease by giving to Landlord
notice of such election within thirty (30) days following the expiration of
such
ninety (90) period. If the Premises have not been fully restored within 180
days
following the occurrence of a Casualty then Tenant may elect to terminate this
Lease by giving to Landlord notice of such election within thirty (30) days
following the expiration of such 180 day period. In either case, if such notice
is given, the rights and obligations of the parties shall cease as of the date
set forth in such notice, and the Basic Rent and Additional Rent (other than
any
Additional Rent due Landlord either by reason of Tenant's failure to perform
any
of its obligations hereunder or by reason of Landlord's having provided Tenant
with additional services hereunder) shall be adjusted as of the date of such
termination. [SEE
RIDER]
16.3. Insurance
Proceeds.
If
neither party elects to terminate this Lease pursuant to Subsection 16.2,
Landlord shall, subject to the prior rights of any Superior Mortgagee or
Superior Lessor, disburse and apply any insurance proceeds received by Landlord
to the restoration and rebuilding of the Building in accordance with Subsection
16.1 hereof. All insurance proceeds payable with respect to the Premises
(excluding proceeds payable to Tenant pursuant to Subsection 15.1), shall belong
to and shall be payable to Landlord.
16.4. Condemnation.
If the
whole or any part of the Premises is taken under the power of eminent domain
then this Lease shall terminate as to the part so taken on the date Tenant
is
required to yield possession thereof to the condemning authority. Landlord
shall
make necessary repairs and alterations to restore the part not taken to useful
condition and the Basic Rent shall be reduced proportionately as to the portion
of the Premises so taken. If the amount of the Premises so taken substantially
impairs the usefulness of the Premises for the Permitted Use, then either party
may terminate this Lease as of the date when Tenant is required to yield
possession. All compensation awarded for any taking of the fee and the leasehold
shall belong to and be the property of Landlord; provided, however, that Tenant,
and not Landlord, shall be entitled to any portion of the award which does
not
serve to reduce Landlord's award and is made directly to Tenant in reimbursement
for Tenant's cost of removal of its stock, trade fixtures, moving and relocation
costs.
17. Signs.
Tenant
shall neither erect, maintain or replace any sign within the Premises visible
from outside the Building, nor erect or maintain any sign upon the exterior
of
the Building or anywhere else upon the Center, without first obtaining
Landlord's written approval as to the size, design, location, type of
20
composition
or material and lighting thereof. Design shall be in accordance with the
guidelines established by Landlord from time to time and all applicable laws
and
regulations. Any such sign shall be inscribed, painted or affixed by Landlord,
or a company approved by Landlord, but the entire cost thereof shall be borne
by
Tenant. Tenant shall maintain any such sign or signs in good condition and
repair at all times, and pay any taxes imposed thereon. During the six (6)
month
period preceding the expiration date of the Term, Landlord may place upon
the
Premises a FOR RENT sign. [SEE
RIDER]
18. Right
of Entry for Inspection, Exhibition, Repair.
Landlord
and its representatives shall have the right at all reasonable times during
normal business hours with prior Notice to enter the Premises for the purposes
of inspecting them and exhibiting them for sale, lease or financing; and
Landlord shall not be liable in any manner for any entry into the Premises
for
such purposes. If Landlord’s inspection discloses a violation of the provisions
of this Lease then all Fees and Costs incurred by Landlord in connection with
the inspection shall be due and payable by Tenant to Landlord, as Additional
Rent, on demand by Landlord. Landlord reserves and shall at all times have
the
right to re-enter the Premises upon 24 hours prior notice to Tenant (except
in
an emergency) to maintain, repair and replace the Premises and any portion
of
the Building of which the Premises are a part, without abatement of Rent.
Landlord may for the purpose of such work erect, use and maintain scaffolding,
pipes, conduits and other necessary structures in and through the Premises
where
reasonably required by the character of the work to be performed, provided
that
entrance to the Premises shall not be blocked. Tenant waives any claim for
any
injury or inconvenience to or interference with Tenant's business, any loss
of
occupancy or quiet enjoyment of the Premises and any other loss occasioned
by
any such maintenance, repair or replacement work. [SEE
RIDER]
19. Subordination
and Attornment.This
Lease and all rights of Tenant hereunder are and shall be subject and
subordinate in all respects to all Superior Leases and Superior Mortgages,
including each advance made or to be made under any Superior Mortgage and all
renewals, modifications, replacements, supplements, substitutions and extensions
of the Superior Lease and the Superior Mortgage and all spreaders and
consolidations of the Superior Mortgage. The provisions of this Section shall
be
self-operative and no further instrument of subordination shall be required.
In
confirmation of such subordination, Tenant shall promptly execute and deliver,
at its own cost and expense, any instrument, in recordable form if requested,
that Landlord, the Superior Lessor or the Superior Mortgagee may reasonably
request to evidence such subordination. The Superior Mortgagee may elect that
this Lease shall have priority over its Superior Mortgage and, upon notification
by the Superior Mortgagee to Tenant, this Lease shall be deemed to have priority
over such Superior Mortgage, whether this Lease is dated prior to or subsequent
to the date of such Superior Mortgage. If, at any time prior to the termination
of this Lease, the Superior Lessor or the Superior Mortgagee or any person,
or
the Superior Lessor's or Superior Mortgagee's or such person's successors or
assigns (the Superior Lessor, Superior Mortgagee and any such person or
successor or assign being herein collectively referred to as "Successor
Landlord") shall succeed to the rights of Landlord under this Lease through
possession or foreclosure or delivery of a new lease or deed or otherwise,
Tenant agrees, at the election and upon request of any such Successor Landlord,
to fully and completely attorn to and recognize any such Successor Landlord,
as
Tenant's landlord under this Lease upon the then-executory terms of this Lease;
provided such Successor Landlord shall agree in writing to accept Tenant's
attornment. The foregoing provisions of this Section shall: (i) inure to the
benefit of any such Successor Landlord; (ii) apply notwithstanding that, as
a
matter of law, this Lease may terminate upon the termination of the Superior
Lease; (iii) be self-operative upon any such demand; and (iv) require no further
instrument to give effect to said provisions. Tenant, however, upon demand
of
any such Successor Landlord agrees to execute, from time to time, instruments
to
evidence and
21
confirm
the foregoing provisions of this Section, satisfactory to any such Successor
Landlord, acknowledging such attornment and setting forth the terms and
conditions, of its tenancy. Upon such attornment this Lease shall continue
in
full force and effect as a direct lease between such Successor Landlord and
Tenant upon all of the then-executory terms of this Lease except that such
Successor Landlord shall not be: (i) liable for any previous act or omission
or
negligence of Landlord under this Lease; (ii) subject to any counterclaim,
defense or offset, not expressly provided for in this Lease and asserted with
reasonable promptness, which theretofore shall have accrued to Tenant against
Landlord; (iii) obligated to perform any Leasehold Improvements or other work
with respect to the Premises; (iv) bound by any previous modification or
amendment of this Lease or by any previous prepayment of more than one month's
Rent, unless such modification or prepayment shall have been approved in writing
by the Superior Lessor or the Superior Mortgagee through or by reason of which
the Successor Landlord shall have succeeded to the rights of Landlord under
this
Lease; (v) obligated to repair the Premises or the Building or any part thereof,
in the event of total or substantial total damage beyond such repair as can
reasonably be accomplished from the net proceeds of insurance actually made
available to Successor Landlord; or (vi) obligated to repair the Premises or
the
Building or any part thereof, in the event of partial condemnation beyond such
repair as can reasonably be accomplished from the net proceeds of any award
actually made available to Successor Landlord, as consequential damages
allocable to the part of the Premises or the Building not taken. Nothing
contained in this Section shall be construed to impair any right otherwise
exercisable by any such owner, holder or lessee. [SEE
RIDER]
20. Modifications
to Lease; Rights of Superior Mortgagee, Superior Lessor.
If,
in
connection with the obtaining, continuing or renewing of financing for which
the
Building, the Center or the interest of the lessee under the Superior Lease
represents collateral, in whole or in part, a savings or commercial bank or
trust company, insurance company, savings and loan association, a welfare,
pension or retirement fund or system or any other lender shall be or be willing
to become the Superior Mortgagee and shall request reasonable modifications
of
this Lease as a condition of such financing, Tenant will not unreasonably
withhold its consent thereto, provided that such modifications do not materially
and adversely either increase the obligations of Tenant hereunder or affect
the
rights of Tenant under this Lease. If any act or omission by Landlord would
give
Tenant the right, immediately or after lapse of time, to cancel or terminate
this Lease or to claim a partial or total eviction, Tenant will not exercise
any
such right until: (i) it has given Notice of such act or omission to each
Superior Mortgagee and each Superior Lessor, whose name and address shall have
previously been furnished to Tenant; and (ii) a reasonable period for remedying
such act or omission shall have elapsed following such giving of Notice and
following the time when such Superior Mortgagee or Superior Lessor shall have
become entitled under such Superior Mortgage or Superior Lease, as the case
may
be, to remedy the same (which shall in no event be less than the period to
which
Landlord would be entitled under this Lease to effect such remedy) provided
such
Superior Mortgagee or Superior Lessor shall, with reasonable diligence, give
Tenant notice of intention to, and commence and continue to, remedy such act
or
omission or to cause the same to be remedied. [SEE
RIDER]
21. Defaults
by the Tenant.
21.1. Events
of Default Defined.
Each of
the following shall be deemed an "Event of Default" under this Lease:
21.1.1 The
failure by Tenant to pay Basic Rent, Additional Rent, or any other sum required
to be paid under the terms of this Lease, when and as due hereunder which
remains unpaid more than five (5) days following Notice;
22
21.1.2 The
failure by Tenant to perform or observe any other term, covenant, agreement
or
condition of this Lease on the part of Tenant to be performed, for a period
of
fifteen (15) days following Notice; [SEE
RIDER]
21.1.3 Tenant
or
any guarantor of any of Tenant's obligations hereunder shall make or deliver
to
Landlord any financial report or statement, certificate, representation or
warranty (including, without limitation, any representation or warranty made
by
Tenant herein) which proves to have been false or misleading in any material
respect as of the time at which the facts therein set forth were stated or
certified, or if any such financial report or statement has omitted any material
contingent or unliquidated liability or claim against Tenant or any such
guarantor of any of Tenant's obligations hereunder;
21.1.4 Tenant
or
any guarantor of any of Tenant's obligations hereunder shall cease doing
business as a going concern, make an assignment for the benefit of creditors,
generally not pay its debts as they become due or admit in writing its inability
to pay its debts when they become due, be adjudicated an insolvent, file a
petition seeking for itself any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar arrangement under any present
or future statute, law, rule or regulation, or file an answer admitting the
material allegations of a petition filed against it in any such proceeding,
or
consent to the filing of such a petition or acquiesce in the appointment of
a
trustee, receiver, custodian or other similar official for it of all or any
substantial part of its assets or properties, or take any action looking to
its
dissolution or liquidation; file a voluntary or involuntary petition proposing
the adjudication of Tenant or any guarantor of Tenant's obligations hereunder
as
a debtor under the Bankruptcy Code, or the reorganization of Tenant or any
such
guarantor under the Bankruptcy Code, unless such a petition is filed by a party
other than Tenant or any such guarantor and is withdrawn or dismissed within
sixty (60) days after the date of filing;
21.1.5 A
Transfer in violation of the prohibition contained in Section 7;
21.1.6 The
vacating or abandonment of the Premises by Tenant at any time during the term
of
this Lease, or the suspension of business by Tenant at the Premises for more
than fifteen (15) consecutive days; [SEE
RIDER]
21.1.7 The
failure of Tenant to vacate the Premises upon the expiration of the Term, or
earlier termination thereof pursuant to other provisions of this
Lease.
21.2. Landlord's
Remedies for Default.
Upon the
occurrence of an Event of Default, Landlord shall have the right, at its
election, immediately upon such Event of Default or at any time thereafter
and
while any such Event of Default shall continue, to exercise one or more of
the
following remedies. [SEE
RIDER]
21.2.1 Landlord
may terminate this Lease, as well as all right, title and interest of Tenant
hereunder, by giving Notice of Landlord's intention to terminate this Lease
on
the date of such given notice or on any later date specified therein, whereupon,
on the date specified in such notice, Tenant's right to possession of the
Premises shall cease and this Lease shall thereupon be terminated, except as
to
Tenant's liability for damages as hereafter set forth, as if the expiration
of
the term fixed in such notice were the end of the Term originally set forth
in
this Lease.
21.2.2 Landlord
may re-enter the Premises, with or without legal process and using such force
for such purposes as may be reasonably necessary, without being liable for
prosecution thereof, and without being deemed guilty of any manner of trespass,
and without prejudice to any remedies for arrears
23
of
Rent
or preceding breach of covenants or conditions and, upon such reentry, Landlord
may remove any and all of Tenant's property at the Premises; [SEE
RIDER]
21.2.3 Landlord
may exercise any other remedy available to it at law, in equity, by statute
or
otherwise; and, for such purposes, Landlord shall be entitled to the benefit
of
all provisions of applicable city or county ordinances and public local laws
and
of the public general laws of the State of Maryland dealing with the speedy
recovery of lands and tenements held over by tenants or proceedings in forcible
entry and detainer;
21.2.4 In
addition to any other rights it may have in law or equity, Landlord shall be
entitled (but shall not be obligated) to cure such Default, in which case Tenant
shall reimburse Landlord for any Fees and Costs incurred in curing such Default,
plus interest thereon at the Reimbursement Rate, all of which shall be payable
by Tenant upon demand by Landlord.
21.3. Landlord's
Right to Re-let Premises.
Upon any
entry or re-entry by Landlord, with or without legal process, Landlord shall
also have the right (but not the obligation) to re-let all or any part of the
Premises, from time to time, at the risk and expense of Tenant. No re-entry
by
Landlord with or without a declaration of termination shall be deemed to be
an
acceptance or a surrender of this Lease or as a release of Tenant's liability
for damages under the provisions of this Section. Landlord shall have the right
to let or re-let the Premises for a longer or shorter term than that remaining
after Tenant's default, to lease more or less area than that contained in the
Premises, to lease the Premises together with other premises or property owned
or controlled by Landlord, and to change the character or use of the Premises.
Landlord shall be entitled to deduct from any amounts received from any such
letting or re-letting all Fees and Costs incurred in connection with Tenant's
default. No entry or re-entry by Landlord, whether resulting from summary
proceedings or otherwise, nor any letting or re-letting shall absolve or
discharge Tenant from liability hereunder. Tenant's liability hereunder, even
if
there be no letting or re-letting, shall survive the issuance of any dispossess
warrant, order of court terminating this Lease or any other termination based
upon Tenant's default. The words "enter", "re-enter", and "re-entry" as used
in
this Section and elsewhere in this Lease are not restricted to their technical
legal meanings.
21.4. Damages.
Tenant
further agrees (i) notwithstanding re-entry by Landlord with or without
termination pursuant to the provisions of the previous Subsection, or (ii)
if
this Lease is otherwise terminated by reason of Tenant's Default, or (iii)
if
Landlord retakes possession with or without process of law, or re-enters with
or
without a declaration of termination or (iv) if Landlord following any of the
foregoing events, elects to let or re-let the Premises as provided in the
previous Subsection, then Tenant shall, nevertheless, in each instance, be
and
remain obligated to, and shall pay to Landlord as damages, upon demand, all
Fees
and Costs incurred in connection with Tenant's breach of this Lease, plus,
at
the election of the Landlord, either:
21.4.1 Liquidated
damages determined as of the date of termination of the Lease, in an amount
equal to the excess, if any, of the sum of the aggregate Basic Rent and the
aggregate Additional Rent which would have been paid over the remaining Term
had
this Lease not been terminated, discounted to present worth, over the
then-current rental value of the Premises, for such remaining Term, as
determined by Landlord, discounted to present worth, and in determining such
liquidated damages, the Additional Rent for each year of such remaining Term
shall be assumed to equal the Additional Rent payable for the Lease Year
immediately preceding the Lease Year in which the default occurs, annualized
in
the event that such preceding Lease Year is less than twelve (12) months, and
in
determining present worth, a discount rate equal to one percentage point above
the discount rate then in effect at the Federal Reserve Bank in Baltimore shall
be used; or
24
21.4.2 Damages
(payable in monthly installments, in advance, on the first day of each calendar
month following such termination and continuing until the date originally fixed
herein for the expiration of the Term of this Lease) in amounts equal to the
sum
of (i) an amount equal to the installment of Basic Rent which would have been
payable by Tenant for such calendar month had this Lease not been terminated
plus (ii) an amount equal to one-twelfth (1/12) of the total Additional Rent
payable for the Lease Year immediately preceding the Lease Year in which the
default occurred, annualized to the extent that such preceding Lease Year is
less than twelve (12) months, minus the Rent, if any, collected by Landlord
in
respect to such calendar month pursuant either to re-leasing the Premises or
portion thereof or from any existing subleases permitted under the terms of
this
Lease (after deduction from such Rent of the sum of Landlord's costs and
expenses as set forth in Subsection). Landlord shall be entitled immediately
to
bring a separate suit, action or proceeding to collect any amount due from
Tenant under this Subsection for any calendar month and any such suit, action,
or proceeding shall not prejudice in any way the right of Landlord to collect
such amount due on account of any subsequent calendar month by similar
proceeding.
21.5. Rent
During Holdover.
If
Tenant fails to vacate the Premises at any time after termination of this Lease,
then Landlord shall be entitled to the benefit of all summary proceedings to
recover possession of the Premises at the end of the Term, as if statutory
notice had been given. If Tenant remains in possession of the Premises after
the
expiration of the Term, such action shall not renew the Lease by operation
of
law and nothing herein shall be deemed as a consent by Landlord to Tenant's
remaining in the Premises. If Tenant fails to vacate the Premises as required,
Landlord may consider Tenant as either (i) a "Tenant-at-Will" liable for the
payment of double the Basic Rent payable at the end of the Term or (ii) as
a
"Tenant-Holding-Over" liable for an amount equal to the actual damages incurred
by Landlord as a result of Tenant's holding over, including, without limitation,
all incidental, prospective and consequential damages and Fees and Costs, but
in
no event shall such amount be less than the amounts of (a) double the Basic
Rent
payable at the end of the Term and (b) the Additional Rent reserved hereunder
applicable to the period of the holdover. In either event, all other covenants
of this Lease shall remain in full force and effect. [SEE
RIDER]
21.6. No
Implied Waiver of Landlord's Rights.
The
failure of Landlord to insist in any one or more instances upon the performance
of any of the covenants or conditions of this Lease, or to exercise any right
or
privilege herein conferred shall not be construed as thereafter waiving or
relinquishing Landlord's right to the performance of any such covenants,
conditions, rights or privileges, and the same shall continue and remain in
full
force and effect, and the waiver of one default or right shall not constitute
waiver of any other default, and the receipt of any Rent by Landlord from Tenant
or any assignee or subtenant of Tenant, whether the same be Rent that originally
was reserved or that which may become payable under any covenants herein
contained, or of any portion thereof, shall not operate as a waiver of
Landlord's right to enforce the payment of the Rent or of any of the other
obligations of this Lease by such remedies as may be appropriate, and shall
not
waive or avoid Landlord's right at any time thereafter to elect to terminate
this Lease, on account of such assignment, sub-letting, transferring of this
Lease or any other breach of any covenant or condition herein contained, unless
evidenced by Landlord's written waiver thereof. The acceptance of Rent or any
other consideration by Landlord at any time shall not be deemed an accord and
satisfaction, and Landlord shall have absolute discretion to apply same against
any sum for any period or reason due hereunder without the same constituting
a
release of any other sums remaining due and unpaid. [SEE
RIDER]
21.7. Waiver
of Jury Trial.LANDLORD
AND TENANT HEREBY JOINTLY AND SEVERALLY WAIVE TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY LANDLORD
25
OR
TENANT
ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS
LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY
OF THE
PREMISES AND/OR ANY CLAIM OF INJURY OR DAMAGE. THIS WAIVER CONSTITUTES A
WAIVER
OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR
PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES OTHER THAN LANDLORD OR TENANT.
Landlord
and Tenant make this waiver knowingly, willingly and voluntarily. Each party
represents that no representations of fact or opinion have been made by any
individual to induce this mutual waiver of trial by jury or to in any way
modify
or nullify its effect. If landlord commences any summary proceeding for
nonpayment of Rent or for possession of the Premises Tenant will not interpose
and hereby waives any counterclaim of whatever nature or description in any
such
proceeding. Tenant further waives the right to remove said summary proceeding
to
any other court or to consolidate said summary proceeding with any other
action,
whether brought prior or subsequent to such summary proceeding. This shall
not,
however, be construed as a waiver of Tenant's right to assert such claims
in any
separate action or actions brought by Tenant.
22. Miscellaneous
Provisions.
22.1. The
Xxxxxxxx.Xx
used
herein, the term "Landlord" means the Landlord originally so named as well
as
its successors and assigns, and any other subsequent owner of the leasehold
estate or reversion in the Center, as well as the heirs, personal
representatives, successors and assigns of any such subsequent owner, each
of
whom shall have the same rights, remedies, powers, authorities and privileges
as
he would have had if he had originally signed this Lease as Landlord, but any
such person, whether or not named herein, shall have no liability hereunder
after he shall cease to hold the title to or a leasehold interest in the said
real estate, except for obligations which may have theretofore accrued. Neither
Landlord nor any principal of Landlord, whether disclosed or undisclosed, shall
have any personal liability with respect to this Lease, the Premises and the
Center. After Tenant has accepted and taken occupancy of the Premises, Tenant
shall look only to Landlord's estate and property in the Center (or the proceeds
thereof) for the satisfaction of Tenant's remedies for the collection of a
judgment (or other judicial process) requiring the payment of money by Landlord
in the event of any default by Landlord hereunder, and no other property or
assets of Landlord or its partners or principals, disclosed or undisclosed
shall
be subject to levy, execution or other enforcement procedure for the
satisfaction of Tenant's remedies under or with respect to this Lease, the
relationship of Landlord and Tenant hereunder or Tenant's use or occupancy
of
the Premises. [SEE
RIDER]
22.2. The
Tenant.
22.2.1 As
used
herein, the term "Tenant" means the Tenant named in this Lease as well as its
heirs, personal representatives, successors and assigns, each of which shall
be
under the same obligations, liabilities, and disabilities and have only such
rights, privileges and powers as it would have possessed had it originally
signed this Lease as Tenant. However, no such rights, privileges or powers
shall
inure to the benefit of any assignee of Tenant, immediate or removed, unless
the
assignment to such assignee shall have been consented to in writing by the
Landlord, as aforesaid. Any person or entity to which this Lease is assigned
pursuant to the provisions of the Bankruptcy Code, shall be deemed without
further act or deed to have assumed all of the obligations arising under this
Lease on and after the date of such assignment. Any such Assignee shall upon
demand execute and deliver unto Landlord an instrument confirming such
assumption. [SEE
RIDER]
22.2.2 If
two or
more individuals, corporations, partnerships or other business associations
(or
any combination of two or more thereof) shall sign this Lease as Tenant, the
liability of each such individual corporation, partnership or other business
association to pay Rent and perform all
26
other
obligations hereunder shall be deemed to be joint and several. In like manner,
if the Tenant named in this Lease shall be a partnership or other business
association, the members of which are, by virtue of statute or general law,
subject to personal liability, the liability of each such member shall be
joint
and several.
22.2.3 If
Tenant
is a corporation, general partnership, limited partnership or limited liability
company, each person executing this Lease on behalf of Tenant, whether as
officer, partner, manager or the like, jointly and severally covenants and
warrants that Tenant has the requisite organizational approval to enter into
and
execute this Lease Agreement and that, on request such person shall be bound
to
provide to Landlord a copy of an appropriate organizational directive
authorizing the execution of this Lease Agreement and authorizing the individual
executing this Lease Agreement to execute said Agreement on behalf of and in
the
name of the Tenant.
22.3. Tenant's
Certificate.
Tenant
agrees at any time, and from time to time, within ten (10) days after Landlord's
written request, to execute, acknowledge and deliver to Landlord a written
instrument in recordable form certifying or stating: (i) that this Lease is
unmodified and in full force and effect (or if there shall then have been
modifications, that the same is in full force and effect as so modified, and
setting forth such modifications); (ii) that the Premises have been completed
by
Landlord in accordance with Section 4 hereof (or if not so completed, stating
the respects in which not completed); (iii) that Tenant has accepted possession
of the Premises, the date upon which the Term has commenced and the date of
the
expiration of the Term of this Lease; (iv) the dates to which Rent and other
charges have been paid in advance, if any; (v) whether or not, to the best
knowledge of the signer of such certificate, Landlord is then in default in
the
performance of any covenant, agreement or condition contained in this Lease
and,
if so, specifying in detail each such default of which the signer may have
knowledge; (vi) as to any other matters as may be reasonably so requested;
and
(vii) that it is understood that such instrument may be relied upon by any
prospective purchaser, mortgagee, assignee or lessee of Landlord's interest
in
this Lease, in the Center, or any portion or part thereof. [SEE
RIDER]
22.4. Consent
to Requests.If
Tenant
requests Landlord's consent on any matter as to which Landlord's consent is
required to be obtained under this Lease, and Landlord fails or refuses to
give
such consent, then Tenant shall not be entitled to any damages for Landlord's
withholding of its consent, it being intended that the sole and exclusive remedy
for a wrongful withholding of consent shall be an expedited arbitration of
the
dispute in the following manner. The Tenant may initiate the arbitration within
ten (10) days after receiving Landlord's notice of denial of consent, by sending
Landlord notice of Tenant's demand for arbitration of the matter, referencing
this Section. Tenant's notice shall also name Tenant's proposed arbitrator,
who
shall be an attorney licensed to practice law in the State of Maryland whose
practice is primarily real estate sales and leasing transactions. Within five
(5) days following receipt of Tenant's nomination Landlord shall send a
responsive notice accepting Tenant's nominee, or rejecting such nominee and
proposing an alternate arbitrator for Tenant's approval. If Landlord fails
to
respond within such time then Tenant's nominee shall be deemed approved. If
any
alternate nominee proposed by Landlord is in turn rejected by Tenant, so that
the parties cannot agree upon an arbitrator within five (5) days after
Landlord's response, then the arbitrator shall be appointed, at the request
of
either party, by the chief judge of the third judicial circuit of Maryland.
A
prerequisite for such appointment shall be the arbitrator's commitment to
consider the matter and render a determination within thirty (30) days of the
date of the selection of the arbitrator. The jurisdiction of the arbitrator
in
any such proceeding shall be limited to rendering a determination as to whether
the withholding was reasonable or unreasonable, and such determination shall
be
final and binding upon the parties. Each party shall submit its position to
the
arbitrator, and the losing party shall pay all of the costs of the arbitration
and the
27
22.5. Relocation.Landlord
reserves the right at its option and at Landlord's sole cost and expense
(including all moving expenses of Tenant) to relocate the Premises hereby leased
to another area within the Center, provided such new location shall be
comparable to the Premises hereby leased and provided Landlord gives Tenant
thirty (30) days' prior Notice of such relocation. [SEE
RIDER]
22.6. Unavoidable
Delays.
Other
than Tenant's obligation to pay Rent or any other payment to cure a Default
and
except as otherwise provided in this Lease, either party shall be excused for
the period of any delay in the performance of any obligation when the delay
is
due to Unavoidable Delays. Neither party shall be entitled to rely upon this
Section unless it shall give to the other party notice of the existence of
the
Unavoidable Delay within five (5) days after the commencement of the Unavoidable
Delay.
22.7. Brokerage.
Tenant
warrants that it has had no dealings with any broker or agent in connection
with
this Lease other than the Named Broker, whose commission Landlord covenants
and
agrees to pay in the amount agreed between Landlord and such broker or brokers.
Tenant covenants to pay, hold harmless and indemnify Landlord from and against
any and all costs, expense or liability for any compensation, commissions or
charges claimed by any broker other than those stated above or any other agent
with respect to this Lease or the negotiation thereof. [SEE
RIDER]
22.8. Entire
Agreement.
The
Lease, including these General Terms and Conditions to Agreement of Lease,
and
any and all Exhibits and Riders hereto, as well as any other schedules or
attachments hereto, set forth all the promises, agreements, conditions and
understandings between Landlord and Tenant with respect to the Premises, and
there are no promises, agreements, conditions or understandings, either oral
or
written, between them other than are herein set forth. No subsequent alteration,
amendment, change or addition to this Lease shall be binding upon Landlord
or
Tenant unless reduced to writing and signed and delivered by each of
them.
22.9. Effect
of Delivery.
Landlord
has delivered a copy of this Lease to Tenant for Tenant's review only, and
the
delivery does not constitute an irrevocable offer to Tenant or an option to
lease. Because the Premises are on the open market and are presently being
shown, this Lease should be treated as a revocable offer, with the Premises
being subject to prior lease, and such offer is subject to withdrawal or
non-acceptance by Landlord or to other use of the Premises at any time and
without notice. This Lease shall not be valid or binding unless and until signed
by Tenant, delivered to Landlord, and accepted and signed by
Landlord.
22.10. Delay
in Delivery of Premises; Rule Against Xxxxxxxxxxxx.Xx
avoid
application of the Rule Against Perpetuities, if the Commencement Date has
not
occurred within one (1) year following the date of this Lease for any reason
other than the default of either party hereto then, unless the parties otherwise
agree in writing, this Lease shall terminate, in which case Landlord shall
return any Deposit previously delivered by Tenant, and all rights and
obligations of the parties with respect to this Lease shall terminate. Tenant
shall have no rights or claims under this Lease at law except that Landlord
shall return to Tenant promptly after any termination any Deposit previously
tendered to Landlord.
22.11. Recording.
Neither
this Lease, nor any memorandum, affidavit, or other writing with respect
thereto, shall be recorded by Tenant or by anyone acting through, under or
on
behalf of Tenant,
28
and
the
recording thereof in violation of this provision, shall (i) be deemed an
Event
of Default and, (ii) at Landlord's election, make this Lease null and
void.
22.12. Time.
Time is
of the essence of this Lease.
23. Definitions.
In
addition to the terms defined in the Lease, the following definitions shall
apply in these General Terms and Conditions to Lease and in any Exhibits, Riders
or other addenda to the Lease:
Additional
Rent: All
sums
of money or charges required to be paid by Tenant under this Lease other than
Basic Rent, whether or not such sums or charges are so designated.
Alterations:
Any of
the following, made or proposed to be made to the Premises or any other part
of
the Building or Center following the Commencement Date: (i) any alteration,
modification, substitution or other change of any nature to the structural,
mechanical, electrical, plumbing, HVAC and fire suppression systems within
or
serving the Premises or the Building; (ii) any renovations, improvements or
other installations in, on or to any part of the Premises or Building or Center
generally (including, without limitation, any alterations of the exterior of
the
Premises, signs, structural alterations, or any cutting or drilling into any
part of the Premises or Building or Center or any securing of any fixture,
apparatus, or equipment of any kind to any part of the Premises); (iii) any
installation or modification of carpeting, walls, partitions, counters, doors,
shelves, lighting fixtures, hardware, locks, ceiling, window and wall coverings
within the Premises.
Appropriate
Authorities:
All
Federal, state or county governmental officer, agency or department, having
jurisdiction over the administration and enforcement of Legal Requirements,
and
also including any public or private authority which is required to issue any
permits, licenses, consents, waivers or other approvals needed in connection
with the construction, occupation or use of the Premises or the Center
generally.
Casualty:
Damage
to all or any part of the Center, including the Building and the Premises,
caused by fire, the elements, accident, act of God or the like.
Commencement
Date:
The date
specified in Section 1 of the Lease, but if no date is specified there, then
upon the date, following Substantial Completion of any Leasehold Improvements,
on which Landlord tenders to Tenant the keys to the Premises or other indicia
of
possession with respect thereto, indicating that Tenant may enter into
possession of the Premises for the Term, or otherwise tenders delivery of the
Premises to Tenant, in writing.
Common
Areas:
Those
areas and facilities which may be furnished by Landlord within the Center,
for
the general common use of tenants and other occupants of the Center, their
officers, agents, employees and invitees, including (without limitation) all
parking areas, access areas (other than public streets), employee parking areas,
truckways, driveways, loading docks and areas, sidewalks, ramps, roofs,
sprinkler systems, landscaped and planted areas, retaining walls, stairways,
lighting systems and facilities, common utility and telecommunications
facilities, drainage areas, roads, the common use elements of the Landlord's
Building (including,
without limitation, all stairs, landings, roofs, utility and mechanical rooms
and equipment, service closets, corridors, elevators, lobbies, lavatories and
other public areas of the Building and all other buildings located within the
Center),
and
other similar areas, facilities or improvements.
29
Environmental
Laws:
The
Clean Air Act, the Resource Conservation Recovery Act of 1976, the Hazardous
Material Transportation Act, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Resource Conservation and Recovery
Act, the Toxic Substances Control Act, the Occupational Safety and Health Act,
the Consumer Product Safety Act, the Clean Water Act, the Federal Water
Pollution Control Act, the National Environmental Policy Act, Md. Nat.
Res.
Code
Xxx., Title 8, and Md. Env.
Code
Xxx., Title 7, as each of the foregoing shall be amended from time to time,
and
any similar or successor laws, federal, state or local, or any rules or
regulations promulgated thereunder.
Fees
and Costs:
Any and
all advances, charges, costs or fees actually and reasonably incurred by
Landlord in collecting any sums due from Tenant hereunder, or otherwise in
preserving the rights of Landlord hereunder or in enforcing the rights and
obligations of Landlord and Tenant hereunder, (and specifically including actual
legal expenses and management fees reasonably incurred by Landlord
hereunder).
Final
Plans and Specifications:
The
Final Plans and Specifications prepared by a professional designer, interior
designer, or architect, approved by Landlord in advance, for the layout of
the
Premises, including Leasehold Improvements, identifying the dimensioned location
of all partitions, interior doors, lighting fixtures, lightpole switches,
electrical outlets, telephone receptacles or systems, together with the
specifications therefor and any other improvements Tenant desires to be made
to
the Premises prior to the Commencement Date.
Hazardous
Materials:
Asbestos; "oil, petroleum products and their by-products"; "hazardous
substances"; "hazardous wastes" or "toxic substances", as those terms are used
in Environmental Laws; or any substances or materials listed as hazardous or
toxic by any Appropriate Authority.
Insurance
Costs:
For any
Operating Year, Landlord’s costs for maintaining, under one or more policies,
property insurance coverage with respect to the Building and the Center
generally, including, without limitation, commercial general liability
insurance; insurance against fire and “all-risk” coverage, including earthquake
and flood, theft or other casualties; insurance against loss of Rent and other
income; workers’ compensation insurance or similar insurance covering personnel;
fidelity bonds for personnel; insurance against liability for defamation and
claims of false arrest occurring on and about the Center; and such other
insurance coverages deemed appropriate by Landlord with such coverage limits,
deductible amounts and companies as Landlord may reasonably
determine.
Lease
Year:
Generally a period of twelve (12) consecutive full calendar months except that
(i) the first Lease Year shall begin on the Commencement Date and shall end
on
the last day of the twelfth full calendar month thereafter; (ii) each successive
Lease Year shall commence upon the first day of the calendar month next
following the end of the first Lease Year and shall consist of twelve (12)
consecutive full calendar months and (iii) if the Term is not equally divisible
into twelve-month segments, then the last Lease Year shall consist of the number
of full calendar months, less than twelve, remaining in the Term after
accounting for the first Lease Year and all previous twelve-month Lease
Years.
Leasehold
Improvements:
Those
improvements, if any, constructed or to be constructed by Landlord within the
Premises for Tenant prior to the Commencement Date and as shown and described
on
Exhibits
B and B-1.
30
Legal
Requirements:
(i) all
laws, ordinances, notices, orders, rules, regulations and requirements of any
and all Federal, state or municipal governments, and of the appropriate
departments, commissions, boards and officers thereof which impose any duties
on
a party respecting the use, operation, care, repair, replacement or alteration
of the Premises generally, and including but not limited to The Americans with
Disabilities Act, 42 U.S.C. § 12101, et.
seq.,
and the
ADA Disability Guidelines promulgated with respect thereto; (ii) all
Environmental Laws; (iii) all zoning and other land use matters and utility
availability regulations or directives; (iv) any direction of any public officer
or officers, pursuant to law, which shall impose any duty upon Landlord or
Tenant respecting the use, operation, care, repair, replacement or alteration
of
the Premises; and (v) all notices, orders, rules and regulations of the National
Board of Fire Underwriters, or any other body now or hereafter constituted
and
exercising similar functions, relating to all or any part of the Premises,
regardless of when they became effective; (v) all covenants, conditions,
restrictions, reciprocal easement agreements and the like which are recorded
among the land records of the jurisdiction in which the Center is located and
which are applicable to the Center generally.
Notice:
Any
notice required or permitted to be given hereunder. All Notices shall be in
writing and shall be conclusively presumed to have been received one (1) day
after depositing into the United States mail, if delivery is by postage paid
registered or certified mail, or by telecopier, or by FEDEX or other nationally
recognized overnight courier service. Any notice in any other manner shall
be
deemed given when actually received. Any notice given by telecopier shall be
promptly sent by first class mail, postage prepaid, as well. All notices to
be
sent to the Tenant shall be sent care of the Tenant's Notice Address. Notices
to
Landlord shall be delivered or addressed to Landlord's Notice Address, with
a
copy to any other persons designated by Landlord. Either party may, at any
time,
in the manner set forth for giving notices to the other, set forth a different
address to which notices to it shall be delivered or sent. [SEE
RIDER]
Operating
Costs:
In each
Operating Year, all costs and expenses incurred by or on behalf of Landlord
in
operating, managing, insuring, securing and maintaining the Center (excepting
Taxes), including, without limitation, all costs and expenses of operating,
maintaining, repairing, lighting, signing, cleaning, painting, striping,
policing and security of the Center (including cost of uniforms, equipment
and
employment taxes); electricity, gas, water, sewer and other utility charges
of
every type and nature, including costs of providing energy to light, heat,
ventilate and air condition the Center and the maintenance and repair of
equipment used for such purposes; costs and expenses of repairing and
maintaining all mains and electrical conduits necessary to provide water,
electricity, telephone and sewer service to the Center; roads and storm drainage
facilities unless and until dedicated for public purposes; alarm and life safety
systems; Insurance Costs; cost of cleaning all exterior glass; removal of water,
snow, ice, litter and debris; regulation of traffic; costs and expenses of
inspecting and depreciation of machinery and equipment used in the operation
and
maintenance of the Center and personal property taxes and other charges
(including, but not limited to, leasing or rental costs) incurred in connection
with such equipment; costs and expenses incurred in making any alterations
to
the Center required to be made pursuant to Legal Requirements, consistent with
the provisions of Subsection 9.5; costs and expenses of maintenance and repair
or replacement of roofs, awnings, paving, curbs, walkways, landscaping,
drainage, pipes, ducts, conduits and similar items, signage for the Center,
and
lighting facilities; costs and expenses of planting, replanting and replacing
flowers, shrubbery and planters; Landlord's share of expenses under any
declaration, covenant, condition, restriction or other agreement recorded among
the land records of the county in which the Center is located and applicable
to
the Center; wages, salaries or other compensation or benefits paid to any
building manager or other non-executive employees below the grade of building
manager, to the extent allocable to services rendered in connection with the
operation or maintenance of
31
the
Building; and administrative costs or management fees relating to operating
and
maintaining the Center. Any of the foregoing expenses required to be capitalized
for federal income tax purposes shall be amortized on a straight-line basis
over
a period equal to the lesser of the useful life thereof for federal income
tax
purposes or ten years. The term "Operating Costs" shall not include costs
or
expenses or depreciation or amortization for capital repairs and capital
replacements required to be made by Landlord pursuant to Subsection 9.5;
debt
service under any Superior Mortgage, or ground rent payments under any Superior
Lease; leasing commissions; expenditures for which Landlord is reimbursed
by any
insurance carrier, or from any other source; or cost of repairs or replacements
incurred by reason of Casualty or condemnation. [SEE
RIDER]
Operating
Year:
Each
successive calendar year or part thereof during the Term of this Lease or any
renewal thereof, or, at Landlord’s option, each successive fiscal year of
Landlord or part thereof, during the Term.
Plans
and Specifications:
Any
Preliminary Plans and Specifications or Final Plans and Specifications for
the
completion of Leasehold Improvements, so identified and attached hereto as
or
referenced in Exhibit
B.
Ready
for Occupancy: See
Substantial Completion.
Reimbursement
Rate:
18% per
annum.
Rent:
All
Basic Rent and Additional Rent.
Rentable
Area of the Center:
The
total rentable square footage of the Building and all other buildings located
from time to time within the Center.
Substantial
Completion/Ready for Occupancy:
The
substantial completion of any Leasehold Improvements to be performed by Landlord
as required by this Lease (except for so-called punch list items), and the
issuance of all required certificates of use and occupancy by Appropriate
Authorities in accordance with Legal Requirements, so that the Premises are
ready for Tenant to commence the installation of its trade fixtures, equipment
and inventory, and so implicitly so certified to by the Landlord or its
representative by the delivery of the Commencement Date Letter to
Tenant.
Superior
Lease; Superior Lessor:“Superior
Lease” means all present and future ground leases, operating leases, superior
leases, overriding leases and underlying leases and grants of term of the Center
and the Building or any portion thereof; and “Superior Lessor” means the party
then exercising the rights of landlord thereunder.
Superior
Mortgage; Superior Mortgagee:“Superior
Mortgage” means all mortgages and building loan agreements, including leasehold
mortgages and spreader and consolidation agreements, which may now or hereafter
affect the Center, the Building or the Premises, except that a mortgage on
the
Center only shall not be a Superior Mortgage so long as there is in effect
a
Superior Lease which is not subordinate to such mortgage; and “Superior
Mortgagor” means the party then exercising the rights of mortgagee, beneficiary
or secured party thereunder.
Taxes:
(i) all
real estate and other ad
valorem
taxes,
including, without limitation, real estate rental, receipt or gross receipt
tax
or any other tax on Landlord (excluding Landlord's income
32
taxes),
now or hereafter imposed by any Appropriate Authority and whether as a
substitution for or in addition to the present method of real property taxation
currently in use; (ii) charges or assessments imposed under the authority
of any
applicable parks and recreation association or the like, which appear on
the Tax
xxxx furnished by the Appropriate Authority; and (iii) Fees and Costs, if
necessary, incurred in connection with any negotiation, contest or appeal
pursued by Landlord in an effort to reduce Taxes, and (iv) any metropolitan
district water and sewer charges and other governmental charges which
customarily are part of the real estate tax xxxx issued by Appropriate
Authorities charged with said responsibility.
Tax
Year:
The
twelve (12) month period beginning July 1 of each year or such other twelve
(12)
month period (deemed to have 365 days) established as a real estate tax year
by
the taxing authorities having lawful jurisdiction over the Center.
Tenant's
Personal Property:
All
equipment, machinery, furniture, furnishings and/or other property now or
hereafter installed or placed in or on the Premises by and at the sole expense
of Tenant with respect to which Tenant has not been granted any credit or
allowance by Landlord and which (a) is not used, or was not procured for use,
in
connection with the operation, maintenance or protection of the Premises or
the
Building; (b) is removable without damage to the Premises or the Building,
and
(c) is not a replacement of any property of Landlord, whether such replacement
is made at Tenant's expense or otherwise. Notwithstanding any other provision
of
this Lease, Tenant's Personal Property shall not include any Leasehold
Improvements or Alterations, whether or not any of the same were installed
at
Tenant's expense. [SEE
RIDER]
Tenant’s
Proportionate Share:
A
fraction, expressed as a percentage, the numerator of which is the Rentable
Area
of the Premises, and the denominator of which is the Rentable Area of the
Center. [SEE
RIDER]
Transfer;
Transferee:
(i) an
assignment or other transfer, mortgage or other encumbrance of Tenant’s interest
in this Lease or any of its rights under it; (ii) a sublease of all or part
of
the Premises or the occupancy or use of any part of the Premises by any person
other than Tenant; or (iii) an assignment or other transfer of Tenant’s interest
in this Lease by operation of law, including any levy or sale in execution
of a
judgment or any assignment or sale in bankruptcy, or insolvency, or the
appointment of a receiver or trustee by any state or federal court; and a
Transferee means any transferee, assignee, mortgagee, sublessee or occupant
with
respect to such a Transfer.
Unavoidable
Delay:
Any
delay caused by fire, earthquake, or other acts of God, acts of the public
enemy, riot, insurrection, governmental regulations, the sales of materials
and
supplies, or strikes directly affecting the work of construction or shortages
of
materials or labor resulting from governmental control or
diversions.
33
RIDER
ATTACHED TO AND MADE PART OF THE
STANDARD
FORM OFFICE LEASE AGREEMENT
Dated
March 16, 2007
By
and between
CORPORATE
PLACE I BUSINESS TRUST ("Landlord")
and
COSTAR
GROUP, INC. ("Tenant")
This
Rider to Lease is, or is intended to be, executed contemporaneously with the
above-referenced Lease, to be attached thereto and to form an integral part
thereof. The Landlord and the Tenant agree that the terms of the Lease shall
be
and are hereby amended, deleted or amended and restated as follows. In case
of
any conflict between the terms and conditions of the Lease and this Rider,
the
terms of this Rider shall control.
1. Lease
of Premises; Contingency; Delivery.Section
1
of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein, provided Tenant
delivers Preliminary Plans and Specifications to Landlord by February 23, 2007,
and further provided that Final Plans and Specifications are completed by April
16, 2007, if the Commencement Date of the Term of the Lease shall not have
occurred by September 1, 2007, for any reason other than Unavoidable Delay,
delays attributable to long lead times for receipt of non-standard construction
finishes or improvements selected by Tenant or items, or delays attributable
to
the action or inaction of Tenant, then Tenant shall be entitled to an abatement
of Basic Rent, calculated on a per diem basis, for each day accounting from
September 1, 2007, to and including the Commencement Date. Such abatement or
Basic Rent credit shall be applied against Tenant’s Basic Rent obligation as the
same otherwise becomes due and payable.
2. Tenant
Reimbursement for Leasehold Improvements at Xxxxx Xxxxx.Xxxxx
Xxxxx Limited Partnership (an affiliate of Landlord) and Tenant are parties
to a
Lease dated September 28, 2006 (the “Xxxxx Xxxxx Lease”), for the rental to
Tenant of a portion of the building located at 0000 Xxxxxxxxx Xxxxx, Xxxxxxxxx,
Xxxxxxxx 00000 and known as Xxxxx Xxxxx, such portion being designated as Suite
I and consisting of 24,213 square feet of space (the “Xxxxx Xxxxx Premises”). In
connection with the Xxxxx Xxxxx Lease, Xxxxx Xxxxx Limited Partnership performed
certain leasehold improvements to the Xxxxx Xxxxx Premises in the amount of
$56,861.00 at Tenant’s sole cost and expense. Provided this Lease is
fully-executed and no Tenant Default exists under this Lease or the Xxxxx Xxxxx
Lease, Landlord hereby agrees to cause such amount to be reimbursed to Tenant
within thirty (30) days following the full execution hereof.
3. Lease
of Premises; Parking.Section
1
of the General Terms and Conditions to Lease is further amended to provide
that
in addition to the lease of the Premises, Tenant shall also be entitled to
the
non-exclusive right, in common with other tenants and at no additional charge,
to the use of non-reserved parking at the Center’s parking lot at a ratio of
5.57 spaces/1,000 square feet of space leased by Tenant.
4. Quiet
Possession.Section
2
of the General Terms and Conditions to Lease is deleted in its entirety and
the
following provision is substituted:
Following
the Commencement Date Tenant shall peaceably and quietly have, hold and enjoy
the Premises without hindrance, ejection or molestation by Landlord or any
person lawfully claiming through or under Landlord. This covenant is subject
to
the provisions of this Lease, the provisions of any SNDA (as defined in Section
19 of the Lease) obtained pursuant to Section 19 of the Lease and shall apply
if
and so long as Tenant pays all Rent due hereunder, performs and observes the
other terms and covenants to be performed and kept by it as provided in this
Lease, and complies with Legal Requirements. This covenant shall be construed
as
a covenant running with the land, and is not a personal covenant of Landlord,
except to the extent of Landlord's interest in this Lease and only so long
as
such interest shall continue, and thereafter this covenant shall be binding
only
upon subsequent successors in interest of Landlord's interest in this Lease,
to
the extent of their respective interests, as and when they shall acquire the
same, and so long as they shall retain such interest.
5. Term.Section
3
of the General Terms and Conditions to Lease is deleted in its entirety and
the
following provision is substituted:
The
Term
of this Lease shall commence upon the Commencement Date and shall end on the
last day of the last calendar month of the Term (unless sooner terminated
pursuant to the provisions of this Lease). Provided the Leasehold Improvements
have been Substantially Completed, the Commencement Date shall be conclusively
confirmed by Landlord to Tenant in writing by delivery of a Commencement Date
Letter in the form of Exhibit
D.
Beginning with the complete execution of this Lease, but prior to the
Commencement Date, Landlord and Tenant shall be subject to all of the terms
and
provisions of this Lease excepting only those requiring the payment of Rent
and
respecting possession, occupancy, care and maintenance of the Premises. Tenant
shall be given access to the Premises thirty (30) days prior to the Commencement
Date or as soon as practicable thereafter for purposes of installation of
telephone systems, data information systems and other equipment. Such access
shall occur during normal business hours and upon prior notice to Landlord.
Upon
such entry by Tenant to the Premises prior to the Commencement Date, Tenant
shall be subject to all of the terms and provisions of this Lease excepting
only
those requiring the payment of Rent.
6. Completion
of Leasehold Improvements; Delivery.Section
4.1 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Prior
to
the Commencement Date Landlord shall complete Leasehold Improvements to the
extent provided in Exhibit
B.
Otherwise, the
Premises are leased to Tenant in "As-Is" condition and without any obligation
of
Landlord to construct improvements or perform any other work in the Premises,
except as expressly provided herein.
7. Acceptance
of Premises.Section
4.2 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
By
its
acceptance of keys to the Premises, or by opening for business or otherwise
occupying the Premises, Tenant shall be deemed to have accepted the Premises,
to
have acknowledged that they are in the condition called for hereunder and to
have agreed that the obligations of Landlord imposed for the delivery of the
Premises have been fully performed, subject to the completion of so-called
"punch-list" items agreed to in writing by the parties as of the Commencement
Date (which "punch-list" items shall have been agreed upon by the parties
pursuant to a walk-through of the Premises) as well as the correction of defects
in the Leasehold
2
Improvements
provided
such defects are discovered and brought to Landlord’s attention for correction
within twelve (12) months following the Commencement Date.
8. Basic
Rent.Section
5.1 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
The
Basic
Rent shall be payable in equal Monthly Installments of Basic Rent in advance
on
the first day of each full calendar month during the Term, without any deduction
or setoff whatsoever (except as otherwise expressly provided in this Lease),
and
without demand. Tenant shall pay the Advance Rent to Landlord concurrently
with
the signing of this Lease. The payment of Basic Rent shall commence on the
Commencement Date, provided however, if the Commencement Date has not occurred
by September 1, 2007 because (a) Tenant failed to deliver the Preliminary Plans
and Specifications to Landlord by February 23, 2007, (b) Final Plans and
Specifications were not completed by April 16, 2007 due to the action or
inaction of Tenant or (c) of any other delay in the planning or construction
process that is a direct consequence of any action or inaction of Tenant, then
Tenant’s obligation to pay Basic Rent shall commence on September 1, 2007,
notwithstanding that the Commencement Date shall not have occurred by such
date.
Notwithstanding anything to the contrary set forth herein or elsewhere in the
Lease, Tenant’s obligation to commence the payment of Rent shall be
delayed on a day-for-day basis in the event of any delay attributable
to Unavoidable Delay or unreasonable delay on the part of Landlord during the
planning and construction process. If Tenant’s obligation to pay Basic Rent
occurs on a day other than the first day of a month, then the first monthly
payment due shall include any prorated Basic Rent for the period from such
date
to the first day of the first full calendar month next following.
9. Late
Charge for Failure to Pay Rent and Additional Rent.Section
5.4 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
All
sums
payable as Basic Rent or Additional Rent shall be paid by Tenant to Landlord's
Rental Payment Address, or at such other address as Landlord may from time
to
time designate by Notice given to Tenant care of Tenant's Notice Address. If
any
check tendered by Tenant in payment of Rent is dishonored upon presentment
for
payment, then Landlord, in addition to all other rights and remedies contained
in this Lease, may assess a dishonor charge of Fifty Dollars ($50.00); and
Landlord shall thereafter have the right to insist that all of Tenant's further
payments be made by certified check. If Tenant fails to pay any Basic Rent
or
any Additional Rent within five (5) days of the time it is due and payable
(including deemed failure to pay due to dishonor of Tenant's check upon
presentation for payment), then Landlord, in addition to all other rights and
remedies contained in this Lease, may assess a late charge against Tenant in
the
amount of Five Hundred Dollars ($500.00).
10. Adjustment
of Proportionate Share.Section
5.6 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
If
Landlord elects to alter the Rentable Area of the Building (as, for example,
reconfiguring Common Areas into Rentable Area, or reconfiguring Rentable Area
into Common Area), then Landlord shall adjust Tenant's Proportionate Share.
Appropriate proration shall be made for any partial period of a Lease Year
resulting from such adjustment.
3
11. Deposit.Section
5.7 of the General Terms and Conditions to Lease is amended to provide that
Tenant shall have the option to tender to Landlord, as its Deposit, an
irrevocable clean letter of credit. If Tenant elects such option, then the
following provisions shall apply:
5.7.1 Upon
Tenant’s execution of this Lease, Tenant shall tender to Landlord, as its
Deposit, an irrevocable clean letter of credit in the form referred to in
Exhibit
A
to this
Rider and made a part hereof, issued by a national banking association and
of
Tenant's choosing, but in any event reasonably acceptable to Landlord, in the
face amount of $71,283.49 (the "Letter of Credit") which shall be held by the
Landlord as security for the Tenant's performance hereunder. If the Letter
of
Credit expires prior to the date scheduled for termination of this Lease, then,
not less than thirty (30) days prior to the expiration of the Letter of Credit,
Tenant shall deliver to Landlord a renewal or replacement of the Letter of
Credit having the effect of renewing the expiring Letter of Credit or replacing
it with a new Letter of Credit on terms materially identical to those of the
expiring Letter of Credit. If Tenant fails to deliver a renewal or replacement
of the expiring Letter of Credit on or before such thirty (30) day period then,
following fifteen (15) days notice to Tenant, tendered in accordance with this
Lease, and Tenant's failure or refusal to deliver such renewal or replacement
within such fifteen (15) day period, Landlord shall use commercially reasonable
efforts to draw under the Letter of Credit for the full amount thereof for
application as hereinafter provided. The proceeds of such draw shall, upon
receipt, be held by Landlord to be applied as hereinafter provided. If Tenant
fails to deliver a renewal or re-placement of the expiring Letter of Credit
in
the manner above set forth and if, as a result, Landlord draws under the Letter
of Credit as above set forth and receives the proceeds thereof, as aforesaid,
then Tenant's original failure to deliver a renewal or replacement of the
expiring Letter of Credit shall not be deemed to be an Event of Default pursuant
to Section 21 of this Lease. If (i) Landlord uses commercially reasonable
efforts to draw under the Letter of Credit as herein provided and in such event
the issuing bank refuses to honor the Letter of Credit, or (ii) Tenant fails
to
deliver a renewal or re-placement of the expiring Letter of Credit in the manner
above set forth and if, as a result of such refusal or failure, the Letter
of
Credit expires prior to Landlord's draw thereunder then in either event,
Tenant's original failure to deliver a renewal or replacement of the expiring
Letter of Credit shall be deemed to be an Event of Default pursuant to Section
21 of this Lease; in addition to Landlord's other remedies for such default
Landlord shall have the right, upon demand by Landlord, to require Tenant to
forthwith deliver to Landlord a substitute or replacement for the Letter of
Credit and, in addition, Tenant shall pay Landlord an amount equal to interest
at the Default Rate on the principal amount of the Letter of Credit, accounting
from the date of expiration thereof to and including the date on which a
replacement to the Letter of Credit is delivered to Landlord.
5.7.2 In
no
instance shall the amount of the Deposit be considered a measure of liquidated
damages. Landlord may apply all or any part of the Deposit in total or partial
satisfaction of any default by Tenant. The application of all or any part of
the
Deposit to any obligation or default of Tenant under this Lease shall not
deprive Landlord of any other rights or remedies Landlord may have, nor shall
such application by Landlord constitute a waiver by Landlord. If all or any
part
of the Deposit is applied to an obligation of Tenant under this Lease then
Landlord shall have the right to call upon Tenant to restore the Deposit to
its
original amount in cash or post a new Letter of Credit in the original amount
pursuant to the terms hereof by giving notice to Tenant, in which case Tenant
shall immediately restore the Deposit. The Deposit, if reduced to cash, shall
be
held by Landlord without liability for interest; Landlord shall be entitled
to
the full use of the Deposit as reduced to cash and shall not be required to
keep
it in a segregated account or escrow. It is understood and agreed that should
Landlord convey its interest under this Lease, the Deposit may be turned over
by
Landlord to
4
Landlord's
grantee or
transferee, and upon any such delivery of the Deposit and assumption by such
transferee of Landlord's obligations under this Lease with respect to the
Deposit, Tenant hereby releases Landlord herein named of any and all
liability with respect to the Deposit, its application and return, and Tenant
agrees to look solely to such grantee or transferee. This provision shall
also
apply to subsequent grantees and transferees. Landlord will return the balance
of the Deposit not previously applied as provided herein, within thirty (30)
days after expiration of the Term.
5.7.3 Tenant's
obligations to maintain the Letter of Credit as security for Tenant's
obligations under this Lease shall extend until the end of the Term of this
Lease so long as Tenant has not theretofore committed an Event of Default under
this Lease which results in a written notice of Default from Landlord. If no
such Notice of Default has issued prior to such time then, at any time following
the end of the Term of this Lease, and so long as no Event of Default then
exists, Landlord shall, upon request of Tenant, (a) return an unexpired Letter
of Credit or (b) refund the Deposit as previously reduced to cash by Landlord
following negotiation of the Letter of Credit.
12. Compliance
with Rules, Ordinances, Etc.Section
6.3 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Tenant
shall, throughout the Term, at Tenant's sole cost and expense, promptly comply
with the provisions of the Rules and Regulations and all Legal Requirements,
except as otherwise expressly provided herein, including Section 9.5
hereof.
13. Hazardous
Materials; Landlord’s Agreements.Section
6.4 of the General Terms and Conditions to Lease is amended to add the following
provision:
6.4.3.
(a) Landlord
hereby makes the following warranties to Tenant, each of which is made only
to
the best of Landlord's knowledge as of the date of this Lease: (i) Landlord
has
not placed or allowed to be placed on the Premises any Hazardous Materials
or
otherwise violated any Environmental Laws with respect to the Premises which
violation remains unremedied; (ii) Landlord has received no notice of, nor
does
Landlord have any knowledge of placement of Hazardous Materials on the Premises
by third parties; (iii) Landlord has made no environmental assessments, audits,
tests or sampling to ascertain if the Premises was previously contaminated
by
Hazardous Materials or the existence of violation of Environmental Laws, nor
does it have any knowledge of the existence of any such assessments, audits,
tests or samplings; (iv) Landlord has neither filed or been required to file
any
reports respecting Hazardous Materials with any Appropriate Authority; (v)
Landlord has received no notice from any Appropriate Authority respecting
Hazardous Materials on the Premises.
(b) The
provisions of this Paragraph (b) shall only apply if (i) it is determined at
any
time by a court of competent jurisdiction that the representations of Landlord
contained in Paragraph (a) are not correct and that Landlord had actual
knowledge of such incorrectness as of the date of this Lease; or (ii) Landlord,
its agents, employees or contractors (but not tenants of Landlord or their
agents, employees or contractors) violate any Environmental Laws with respect
to
the Premises. If this Paragraph (b) applies because of an occurrence described
in the immediately preceding sentence, then the following shall apply: (1)
Landlord shall be responsible for all costs incurred in complying with all
Environmental Laws which relate to the occurrence in question and (2) Landlord
shall indemnify, defend and hold Tenant harmless from
5
and
against any and all claims, judgements, damages, penalties, fines, costs,
liabilities or losses (including, without limitation, sums paid in settlement
of
claims, attorneys' fees, consultant fees and expert fees) which arise during
or
after the Term from or in connection with the Hazardous Materials and the
occurrence in question except for Tenant's lost profits or damages or loss
to
Tenant's business.
14. Hazardous
Material; Tenant’s Agreements.Section
6.4.1 of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein, Tenant
may be permitted to allow ordinary amounts of everyday cleaning and office
supplies as are sold over the counter and are deemed to be necessary or useful
to Tenant’s business or for the care and upkeep of the Premises to be brought
upon, kept or used in or about the Premises provided they are used, kept and
stored in a manner that complies with all Environmental Laws.
15. Transfer.Section
7.1 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Except
as
expressly provided in Subsection 7.3, no Transfer shall be permitted of this
Lease without the prior written consent of Landlord in each instance first
obtained. Any consent given to any one Transfer shall not constitute a consent
to any subsequent Transfer. Any attempted Transfer without Landlord's consent
shall be null and void and shall not confer any rights upon any purported
Transferee. No Transfer, regardless of whether Landlord's consent has been
granted or withheld, shall be deemed to release Tenant from any of its
obligations hereunder or to alter, impair or release the obligations of any
person guaranteeing the obligations of Tenant hereunder. Landlord agrees that
its consent to a Transfer will not be unreasonably withheld, conditioned or
delayed. Landlord will give Tenant prompt Notice of any denial of a request
for
Transfer approval, stating the reason or reasons for such denial.
16. Transfer
Approval Conditions.Section
7.2.5 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
Tenant
will promptly reimburse Landlord for all Fees and Costs actually and reasonably
incurred by Landlord in connection with the review and approval of the proposed
Transfer and any Transfer instrument, in any event not to exceed the Transfer
Review Fee per proposed Transfer.
17. Transfer
Approval Conditions.Section
7.2.6 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
No
Transfer will be to a then-existing tenant or occupant of the Building if and
so
long as other space is then available for leasing by Landlord in the Building,
which is of sufficient size to accommodate the proposed Transferee’s need for
space.
18. Transfer
Approval Conditions.Section
7.2.7 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
In
the
event that Landlord releases Tenant from its obligations under the Lease upon
a
Transfer, then upon request, the assignee (in the case of a proposed assignment)
or Tenant (in the case of a proposed subletting) will increase the original
Deposit to such amount as Landlord may reasonably require (or if no Deposit
was
initially made then such party will post with Landlord such Deposit as Landlord
may reasonably require);
6
19. Transfer
Approval Conditions.Without
in any way limiting the provisions of Section 7.1, Section 7.2.8 of the General
Terms and Conditions to Lease is deleted in its entirety.
20. Transfer
Approval Conditions.Section
7.2.10 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
The
Transfer will not result
in
the subletting, or subletting and assignment, of the Premises for occupancy
by
more than three (3) sublessees or assignees at any one (1) time during the
Term.
21. Corporate,
Partnership Transfers.Section
7.3.1 of the General Terms and Conditions to Lease is clarified to provide
that
notwithstanding anything to the contrary set forth therein, Landlord’s consent
shall not be required for transfers of stock of Tenant which are traded through
a national or regional exchange or over-the-counter, direct or indirect
transfers of stock or equity interests to any entities that control Tenant
or
are controlled by or under common control with Tenant, direct or indirect
transfers of stock or equity interests in connection with the sale of all or
substantially all of the stock or equity interests of Tenant or the merger
of
Tenant into another entity, or sale of all or substantially all of the assets
of
Tenant, provided however, that Tenant shall give Notice to Landlord of any
such
Transfer.
22. Corporate,
Partnership Transfers.Section
7.3.2 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
Tenant
may Transfer this Lease, at any time during the Term of this Lease, to any
parent, subsidiary or affiliate corporation of Tenant or to the surviving
corporation in connection with a merger, consolidation or acquisition between
Tenant and any of its subsidiaries or any other corporation, or in connection
with the sale of all or substantially all of the property and assets of the
Tenant, upon prior Notice to Landlord but without Landlord's prior written
consent, provided, in the case of any assignment, (i) in the event that Tenant
is fully released from its obligations under the Lease, the net worth of the
assignee corporation shall be reasonably satisfactory to Landlord; (ii) such
assignee continues to operate the business conducted in the Premises for the
Permitted Use and in the same manner as Tenant and pursuant to all of the
provisions of this Lease; (iii) such assignee corporation shall assume in
writing in a form reasonably satisfactory to Landlord all of Tenant's
obligations hereunder; (iv) Landlord shall be furnished with a copy of such
assignment within ten (10) days prior to the effective date of the proposed
assignment or other transfer thereof; and (v) Tenant to which the Premises
were
initially leased shall continue to remain liable on this Lease for the
performance of all terms including, but not limited to, payment of all rentals
and other sums due under this Lease.
23. Request
for Transfer.Section
7.4 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Tenant's
notice of its intent to Transfer shall (in the event such Transfer consists
of
an assignment of all of Tenant’s right, title and interest in and to this Lease)
also be deemed to constitute Tenant's offer to reconvey to Landlord, as of
the
proposed effective date of the Transfer, that portion of the Premises which
is
the subject of the proposed Transfer, which offer shall contain an undertaking
by Tenant to accept, as full and adequate consideration for the reconveyance,
Landlord's release of Tenant from all future Rent and other obligations under
this Lease with respect to the Premises or the portion thereof so reconveyed.
Landlord, in the sole and unfettered exercise of its discretion, shall accept
or
reject the offered reconveyance within thirty (30) days of the offer, and,
if
Landlord accepts, the reconveyance shall be evidenced by an agreement in form
and substance acceptable to Landlord. If Landlord fails to accept or reject
the
offer within the thirty (30) day period then Landlord shall be deemed to have
rejected the
7
offer
of
reconveyance, but no such rejection shall be deemed to be a consent to the
requested Transfer. This provision shall not apply in the case of a proposed
Transfer covered by Section 7.3.2.
24. Excess
Rent.Section
7.5 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
In
the
case of any Transfer made without Landlord's prior written consent Landlord
may
nevertheless collect Rent from the Transferee and apply the net amount collected
to the Rent herein reserved. The acceptance by Landlord of the payment of Rent
following any Transfer not expressly consented to by Landlord pursuant to this
Section shall not be deemed to be a consent by Landlord to such Transfer nor
shall the same be deemed to be a waiver of any right or remedy of Landlord
hereunder, nor constitute a release of Tenant or any guarantor of Tenant's
obligations from the further performance by Tenant and such guarantor of the
terms and provisions of this Lease and any such guaranty. Furthermore, under
any
and all circumstances, in the case of any Transfer, Tenant shall pay to Landlord
monthly, as Additional Rent, the 50% of the excess of the consideration received
or to be received less
Tenant’s actual and reasonable costs directly attributable to the
Transfer
during
such month for such Transfer including commissions, allowances and attorneys’
fees (whether or not denominated as rent) over the Rent reserved for such month
in this Lease applicable to such portion of the Premises so
Transferred.
25. Abandonment.Section
8.1 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Tenant
shall not abandon the Premises at any time during the Term of this Lease. If
Tenant does abandon the Premises or is dispossessed by process of law then
any
of Tenant’s Personal Property left on the Premises may, at the option of the
Landlord, be deemed to have been abandoned by Tenant, in which case the
provisions of Subsection 8.4 shall apply. For purposes hereof, Tenant shall
be
deemed to have abandoned the Premises if Tenant has ceased to operate its
business from the Premises, has removed or indicated the intent to remove
Tenant’s Personal Property from the Premises and fails or has failed to maintain
the Premises as otherwise provided in this Lease.
26. Surrender.Section
8.2 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Unless
sooner terminated, this Lease shall expire absolutely upon the expiration of
the
Term without the necessity of any notice or other action from or by either
party. At the expiration or earlier termination of the Term of this Lease,
Tenant shall peaceably surrender the Premises in broom clean condition and
good
order and repair and otherwise in the same condition as the Premises were upon
the Commencement Date, except (i) ordinary wear and tear, (ii) to the extent
that the Premises is not required to be repaired or maintained by Tenant, (iii)
damage by Casualty and (iv) Alterations for which, upon Tenant’s request for
approval by Landlord of the same, Landlord did not indicate that Tenant would
be
required to remove such Alterations upon the termination or expiration of the
Term. Tenant shall surrender to Landlord all keys for the Premises to Landlord's
Notice Address and shall notify Landlord in writing of all combinations or
codes
for any other locks, vaults or alarm systems, if any, installed in the Premises.
Landlord shall inspect the Premises to determine whether they are returned in
the condition called for under this Section. Tenant shall be afforded a
reasonable opportunity to be present at such
8
inspection.
Tenant's obligations to observe and perform the covenants set forth in this
Subsection shall survive the expiration or earlier termination of this
Lease.
27. Removal
of Cabling, Alterations.Section
8.3 of the General Terms and Conditions to Lease is amended to provide that
with
respect to Alterations other than data and communications cabling and equipment
installed in the Premises or otherwise in the Building specifically to serve
Tenant in its use of the Premises, notwithstanding anything to the contrary
set
forth therein, Tenant shall not be required to remove Alterations that are
of an
ordinary and customary nature with respect to commercial office
space.
The
determination of whether any Alteration is ordinary and customary shall be
made
by Landlord in its reasonable judgment.
28. Removal
of Tenant’s Personal Property, Trade Fixtures.The
reference to “five (5) days Notice to Tenant” in Section 8.4 of the General
Terms and Conditions to Lease is deleted and substituted in lieu thereof with
“ten (10) days Notice to Tenant.”
29. Repairs
to be Made by Landlord.Section
9.1 of the General Terms and Conditions to Lease is amended to provide that
in
performing such repairs, Landlord (i) shall not unreasonably impair or impede
access to the Premises by Tenant, its employees and invitees, and (ii) shall
use
commercially reasonable efforts to minimize interruption to or interference
with
Tenant’s business.
30. Damage
to Premises, Building, Center.Section
9.3 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Except
as, and to the extent, otherwise provided in Subsection 14.5, Tenant shall
reimburse Landlord, upon demand (as Additional Rent), for the cost of the repair
of any damage to or dangerous condition caused or created in the Center, if
caused or created by Tenant, its employees, agents or contractors. If Tenant
fails to commence such repair or remediation within ten (10) days after
Landlord's notice to do so, or if Landlord elects to undertake such repair
or
remediation for the account of Tenant, then Tenant agrees to pay to Landlord
promptly upon Landlord's demand, as Additional Rent. Tenant's obligations for
Additional Rent hereunder shall accrue interest thereon at the Reimbursement
Rate until paid; and its payment and performance obligations hereunder shall
survive the termination of this Lease. Tenant’s obligations under this Section
do not apply in the case of remediation following a Casualty.
31. Alterations
by Tenant.Section
9.4.2 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
If
Landlord’s consent is required for the making of an Alteration then Tenant’s
request for consent will be accompanied by reasonably complete plans and
specifications for the proposed Alterations. If such approval is granted, Tenant
shall cause the Alterations described in such plans and specifications to be
performed, at its expense, promptly, efficiently, competently and in a good
and
workmanlike manner by duly qualified and licensed persons or entities, without
interference with or disruption to the operations of tenants or other occupants
of the Building or the Center. Alterations shall only be made after Tenant
has
obtained any necessary permits from governmental authorities for the
Alterations. Tenant shall notify Landlord of the date on which work on
Alterations is scheduled to begin and shall arrange for periodic inspections
by
Landlord of the job progress to insure compliance with the approved plans and
specifications. All such work shall comply with all Legal Requirements and
shall
be performed by contractors who are approved by Landlord (whose approval will
not be unreasonably withheld) and who carry the insurance coverage required
in
Section 15. Landlord shall have the right to require
9
from
Tenant, or Tenant's contractor, further assurances against mechanics' liens
including, but not limited to, lien waivers and releases from all contractors,
subcontractors, and suppliers.
32. Alterations
by Tenant.Section
9.4.3 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
Any
Alterations shall be made at Tenant's sole cost, payable by Tenant as Additional
Rent; and such cost shall include a supervisory fee of three percent (3%) of
the
total cost of the work for which Landlord shall oversee the construction of
the
Alterations to ensure (i) compliance with the rules and regulations set forth
in
the Lease and as established for the Building generally, (ii) that the
construction does not interfere with other tenants’ uses of their respective
premises or the Common Areas of the Building and (iii) that the Alterations
are
in compliance with building standard qualities. Upon completion of the
Alterations, the contractor shall provide Landlord with as-built drawings,
operating manuals and lien waivers with respect to the same. If Tenant makes
any
Alterations in violation of Section 9, in addition to Landlord's other remedies,
Landlord may correct or remove such Alterations and Tenant shall, on demand,
pay
the cost thereof (plus three percent (3%) of such cost as a supervisory fee)
as
Additional Rent. If any mechanic's lien is filed against the Premises or the
Building or the Center for work or materials furnished to Tenant (other than
by
Landlord) the lien shall be discharged by Tenant within thirty (30) days
thereafter, solely at Tenant's expense, by either paying off or bonding the
lien. Should Tenant fail to discharge any lien within thirty (30) days of its
filing, then, in addition to Landlord's other remedies, Landlord shall have
the
right, but not the obligation, to discharge said lien at Tenant's expense,
in
which case Tenant shall reimburse Landlord for the same upon demand, as
Additional Rental, together with interest accounting from the date of demand
until payment is made.
33. Alterations
to Comply with Legal Requirements.Section
9.5.2 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
Subject
to Landlord's obligations set forth in the previous Subsection and in the
following Subsection, if any Alterations are required to be made to the
Premises, the Building or the Center due to a change in, or change in the
interpretation of, or more stringent enforcement of, Legal Requirements
occurring on or after the Commencement Date (and not in connection with
Alterations elsewhere in the Center undertaken by Landlord), then Landlord
shall
make such Alterations as aforesaid, provided that the cost of such Alterations
shall be amortized over their useful life (as determined in accordance with
the
Internal Revenue Code and generally accepted accounting principles) and a
ratable portion of such cost shall be included within the definition of
Operating Costs in each Lease Year until such cost is fully
amortized.
34. Alterations
to Comply with Legal Requirements. The
reference to “a supervisory fee of fifteen percent (15%)” in Section 9.5.3 of
the General Terms and Conditions to Lease is deleted and substituted in lieu
thereof with “a supervisory fee of three percent (3%).”
35. Electrical
Generator and Equipment.Section
10.1 of the General Terms and Conditions to Lease is amended to provide that
during
the Term of this Lease, and so long as Tenant is in possession of the Premises,
and no Event of Default exists, Tenant
shall have the right to install and maintain a back-up electrical power
generator in a portion of the Common Area of the Center, which portion shall
be
approved by Landlord, to provide emergency, back-up electrical service to the
Premises, including electrical conduits from Electrical Generator and Equipment
to provide power to the interior of the Premises, and including a fuel source
or
supply to power such equipment, and padding and screening for the installation
and location of such equipment (collectively, the “Electrical Generator
Equipment”). The following provisions shall govern the specification, location,
installation, use, maintenance, repair,
10
replacement
and removal of the Electrical Generator Equipment.
35.1. All
such
installations shall be for the exclusive use of Tenant, solely for the provision
of emergency back-up electrical current to support Tenant’s operations in the
Premises in the event of a temporary failure of utility-supplied electrical
power to the Premises. Under no circumstances whatsoever shall Tenant sell,
rent, assign, sublet, license or otherwise share the Electrical Generator
Equipment with or to any other person or entity, except any permitted Transferee
pursuant to Section 7.3 of the Lease.
35.2. Tenant
will not make any installation of Electrical Generator Equipment on or in the
Building or the Common Areas of the Center until Tenant shall have caused
complete and detailed plans and specifications therefor to have been prepared,
at Tenant's expense, by an architect, engineer, or other duly qualified person,
shall have submitted same to Landlord for review by Landlord and Landlord's
architects and engineers, and shall have obtained Landlord's written approval
thereof which approval shall not be unreasonably withheld.
35.3. Without
in any way limiting the exercise of Landlord's discretion in reviewing and
approving Tenant's request, no Electrical Generator Equipment shall be permitted
to be installed if the same: (i) exceeds an area of 10’W x 20’L x 10’H; (ii) in
the reasonable opinion of Landlord or Landlord's architect or engineer, impairs
the structural integrity of, or requires the installation of structural
reinforcements to, the Building or any Common Areas, (iii) in the reasonable
opinion of Landlord or Landlord's architect or engineer, is likely to interfere
with existing Building systems; or (iv) is otherwise architecturally or
aesthetically incompatible with the Building, or would violate applicable
restrictive covenants or architectural controls with respect to the Building
or
the Center, due to the proposed Electrical Generator Equipment's design, height,
bulk, shape, color scheme, finish, configuration, appearance, materials or
proposed location.
35.4. Prior
to
the commencement of installation of any Electrical Generator Equipment Tenant
shall obtain and exhibit to Landlord copies of all requisite approvals and
licenses with respect thereto, local zoning and regulatory approval, building
permits, and any architectural approvals required under restrictive covenants
applicable to the Building and the Center. Landlord's approval of Tenant's
plans
and specifications for the Electrical Generator Equipment, if granted, shall
not
under any circumstances be deemed to imply that the same comply with, or are
permitted to be installed under, any Federal, state or local laws or
regulations, or private covenants, conditions and restrictions.
35.5. Any
cabling to be installed from the Electrical Generator Equipment to the Premises
shall be shielded to prevent interference with other Building cabling or
communications systems, shall be properly identified and labeled at every access
point within the Building, shall be coated to comply with all applicable
electrical, fire and life safety codes, and shall be installed only through
approved channeling and conduits and otherwise as approved by
Landlord.
35.6. If
all
required approvals, licenses and permits are granted as provided above, then
Tenant shall cause the work described in such plans and specifications to be
performed, at its expense, promptly, efficiently, competently and in a good
and
workmanlike manner by duly qualified and licensed persons or entities, without
interference with or disruption to the operations of tenants or other occupants
of the Building or the Center or neighboring properties. All such work shall
comply with the terms of Landlord's approval, as well as with all applicable
codes, rules, regulations and ordinances and shall be performed by Landlord’s
contractor. Landlord shall receive a supervisory fee in the amount of three
percent (3%) of the cost of the work performed hereunder, for which Landlord
will oversee the construction performed by the contractor to ensure (i)
compliance with the rules and regulations set forth in the Lease and as
established for the Building and the Center generally, (ii) that the
construction does not interfere with other tenants’ uses of their respective
premises or the Common Areas of the Building and (iii) that the construction
of
the Electrical Generator Equipment is in compliance with the specifications
set
forth herein and as
11
established
by Landlord from time to time. Such supervisory fee shall be payable by Tenant
as Additional Rent.
35.7. If
Tenant
is permitted to install the Electrical Generator Equipment following Landlord's
approval, then Landlord shall notify Tenant of the date on which work is
scheduled to begin. Landlord shall arrange for periodic inspections of the
job
progress to insure compliance with the approved plans and specifications.
Landlord shall also have the right at any time before, during, or after the
construction to require Tenant to furnish further assurances against mechanics'
liens including, but not limited to, releases of liens signed by all
contractors, subcontractors, and suppliers, and affidavits executed by the
appropriate party, that all charges for labor and materials have been paid.
Tenant shall promptly pay or bond off any lien filed against the Premises,
the
Building or the Center for any construction performed on behalf of
Tenant.
35.8. From
time
to time during the Term, and only upon such reasonable prior notice and under
such supervision as Landlord shall deem necessary or desirable to protect its
interests, Tenant shall be permitted access to the Common Areas of the Center,
as well as to necessary interior Building systems areas, for the purpose of
performing necessary maintenance and repairs to the Electrical Generator
Equipment. Tenant shall be responsible for scheduling inspections of the
Electrical Generator Equipment, including without limitation, any fuel tank(s).
Tenant shall provide written notice to Landlord of the times of such inspections
which times shall, in any event, be agreeable to Landlord and Landlord shall
supervise such inspections, in Landlord’s discretion. Any substantial
modification, alteration, substitution or addition to the Electrical Generator
Equipment shall be subject to the approval provisions contained in the preceding
paragraphs of this Section.
35.9. All
Electrical Generation Equipment installed for Tenant shall be removed from
the
Building or Common Areas upon the termination of this Lease unless Landlord
and
Tenant otherwise agree. If Electrical Generation Equipment is to be removed
at
the termination of this Lease, then Tenant hereby agrees to cause the same
to be
removed and to restore such areas to the condition existing prior to
installation of the Electrical Generator Equipment at its sole cost and expense
unless Landlord determines to control the removal of some or all of the same,
in
which case such removal shall be at Tenant's cost and expense. If Tenant is
required to perform such removal and fails to remove the same, then Landlord
may
cause them to be removed at Tenant's expense, and Tenant hereby agrees to
reimburse Landlord for the cost of such removal, together with all and any
damages which Landlord may suffer and sustain by reason of Tenant's failure
to
remove the same. Tenant's obligations to observe and perform the covenants
set
forth in this Subsection shall survive the expiration or earlier termination
of
this Lease.
35.10. Tenant
agrees to pay Landlord, upon written demand, as Additional Rent, all costs
incurred by Landlord in connection with any actual or proposed installation
of
Electrical Generator Equipment, including, without limitation, the costs of
investigations by Landlord and Landlord's architects and engineers and other
design professionals as to the acceptability of a proposed installation of
Electrical Generator Equipment. Tenant acknowledges and agrees that the costs
and expenses imposed and agreed to be paid by Tenant under this Subsection
are
agreed to be paid in consideration of the Landlord's processing of the Tenant's
request, and that they are not intend-ed as consideration for the consent to
installation of Electrical Generator Equipment. Payment of such fees and costs
shall under no circumstances obligate the Landlord to consent to any requested
installation.
35.11. Tenant
shall maintain all records for Electrical Generator Equipment, including without
limitation, any fuel tank(s) and Tenant shall provide copies of such records
to
Landlord upon request therefor. Tenant shall (i) immediately report any fuel
spill to Landlord and the Appropriate Authorities (ii) promptly report any
notice of violation of Applicable Laws or Environmental Laws to Landlord
and
12
shall
remedy any of the foregoing at Tenant’s sole cost and expense. Without limiting
the foregoing, Tenant at all times comply with the provisions of Section
6.4 of
the Lease.
35.12. The
Electrical Generator Equipment shall have noise-abatement devices and shall
only
be run by Tenant in the event of a power failure or during scheduled maintenance
and repairs occurring other than during standard hours of
operation.
35.13. Additional
general specifications of the Electrical Generator Equipment shall further
be
determined by Landlord at such time as Tenant provides Landlord notice of
Tenant’s intention to exercise its rights under this Section and provides
Landlord with the initial plans and specifications for the construction of
the
Electrical Generator Equipment.
36. Management
of Common Areas.Section
10.2 of the General Terms and Conditions to Lease is amended to provide that,
without limiting any of Landlord’s rights contained therein, Landlord shall
operate and maintain the Common Areas of the Center in a manner consistent
with
a first class business park.
37. Changes
and Additions to the Center.Section
10.3 of the General Terms and Conditions to Lease is amended to provide that
in
the course of making such changes or additions, Landlord shall use commercially
reasonable efforts to minimize interruption to or interference with Tenant’s
business.
38. Roof
and Walls; Excavation; Satellite Antenna.Section
10.4 of the General Terms and Conditions to Lease is amended to adding thereto
the following provision:
38.1. During
the Term of this Lease, and so long as Tenant is in possession of the Premises,
and no Event of Default exists, Tenant shall be permitted to have access to
the
roof of Landlord's Building in order to install and maintain thereon one (1)
pole antenna, one (1) parabolic microwave antenna and one (1) satellite dish,
together with the right to install and maintain related cabling between such
device and Tenant's Premises (all, collectively, the "Communications
Equipment"), upon the following terms and conditions.
38.2. All
such
installations shall be for the exclusive use of Tenant, solely for the
transmission and reception of radio signals (including
audio, video, internet, data, telephone interactive communications, and similar
services, commonly referred to as “Broadband Service”) in
the
conduct of its business operations at the Premises for the Permitted Use. Under
no circumstances whatsoever shall Tenant sell, rent, assign, sublet, license
or
otherwise share the Communications Equipment with or to any other person or
entity, except to the extent actually and reasonably necessary to permit Tenant
to conduct its business at the Premises for the Permitted Use.
38.3. Tenant
will not make any installation of Communications Equipment on or in the Building
until Tenant shall have caused complete and detailed plans and specifications
therefor to have been prepared, at Tenant's expense, by an architect, engineer,
or other duly qualified person, shall have submitted same to Landlord for review
by Landlord and Landlord's architects and engineers, and shall have obtained
Landlord's written approval thereof.
38.4. Without
in any way limiting the exercise of Landlord's discretion in reviewing and
approving Tenant's request, no Communications Equipment shall be permitted
to be
installed if the same: (i) exceeds 6 feet in height above the surface of the
Building roof, (ii) weighs more than 300 pounds or otherwise overloads the
roof
structure, (iii) is not located within the roof screen (with respect to a
satellite dish) (iv) in the reasonable opinion of Landlord or Landlord's
architect or engineer, requires the installation of structural reinforcements
to
the Building, (v) in the reasonable opinion of Landlord or Landlord's architect
or engineer, is likely to interfere with existing Building systems or with
the
transmission or
13
reception
of radio signals by existing antennae on or in the Building or on or in adjacent
properties; or (vi) is otherwise architecturally or aesthetically incompatible
with the Building due to the proposed Communications Equipment's design,
height,
bulk, shape, color scheme, finish, configuration, appearance, materials or
proposed location.
38.5. Prior
to
the commencement of installation of any Communications Equipment Tenant shall
obtain and exhibit to Landlord copies of all requisite approvals and licenses
with respect thereto, including FCC approvals for transmitting equipment, local
zoning and regulatory approval, building permits, and any architectural
approvals required under restrictive covenants applicable to the Building and
the Center. Landlord's approval of Tenant's plans and specifications for the
Communications Equipment, if granted, shall not under any circumstances be
deemed to imply that the same comply with, or are permitted to be installed
under, any Federal, state or local laws or regulations, or private covenants,
conditions and restrictions.
38.6. Any
cabling to be installed from the roof-mounted Communications Equipment to the
Premises shall be shielded to prevent interference with other Building cabling
or communications systems, shall be properly identified and labeled at every
access point within the Building, shall be coated to comply with all applicable
fire and life safety codes, and shall be installed only through approved
channeling and communications closets or otherwise as approved by
Landlord.
38.7. If
all
required approvals, licenses and permits are granted as provided above, then
Tenant shall cause the work described in such plans and specifications to be
performed, at its expense, promptly, efficiently, competently and in a good
and
workmanlike manner by duly qualified and licensed persons or entities, without
interference with or disruption to the operations of tenants or other occupants
of the Building or the Center or neighboring properties. All such work shall
comply strictly with the terms of Landlord's approval, as well as with all
applicable codes, rules, regulations and ordinances and shall be performed
by
Landlord’s contractor or contractors who are approved by Landlord and who carry
the insurance coverage required to be carried by Tenant's contractors as
provided elsewhere in the Lease. Landlord shall receive a supervisory fee of
three percent (3%) of the total cost of the work, for
which
Landlord will oversee the construction performed by the contractor to ensure
(i)
compliance with the rules and regulations set forth in the Lease and as
established for the Building and the Center generally, (ii) that the
construction does not interfere with other tenants’ uses of their respective
premises or the Common Areas of the Building and (iii) that the construction
of
the Communications Equipment is in compliance with the specifications set forth
herein and as established by Landlord from time to time. Such supervisory fee
shall be payable by Tenant as Additional Rent.
38.8. If
Tenant
is permitted to install the Communications Equipment following Landlord's
approval, then Tenant shall notify Landlord of the date on which work is
scheduled to begin and shall arrange for periodic inspections by Landlord of
the
job progress to insure compliance with the approved plans and specifications.
Landlord shall also have the right at any time before, during, or after the
construction to require Tenant to furnish further assurances against mechanics'
liens including, but not limited to, releases of liens signed by all
contractors, subcontractors, and suppliers, and affidavits executed by Tenant,
Tenant's contractor, or architect, that all charges for labor and materials
have
been paid. Tenant shall promptly pay or bond off any lien filed against the
Premises, the Building or the Center for any construction performed by or on
behalf of Tenant.
38.9. From
time
to time during the Term, and only upon such reasonable prior notice and under
such supervision as Landlord shall deem necessary or desirable to protect its
interests, Tenant shall be permitted access to the roof and Common Areas of
the
Center, as well as to interior Building systems areas, for the purpose of
performing necessary maintenance and repairs to the Communications Equipment.
Any
14
substantial
modification, alteration, substitution or addition to the Communications
Equipment shall be subject to the approval provisions contained in the preceding
paragraphs of this Section.
38.10. All
Communications Equipment installed by or for Tenant shall be removed from the
Building or Common Areas upon the termination of this Lease unless Landlord
and
Tenant otherwise agree. If Communications Equipment is to be removed at the
termination of this Lease, then Tenant hereby agrees to cause the same to be
removed at its sole cost and expense unless Landlord determines to control
the
removal of some or all of the same, in which case such removal shall be at
Tenant's cost and expense. If Tenant is required to perform such removal and
fails to remove the same, then Landlord may cause them to be removed at Tenant's
expense, and Tenant hereby agrees to reimburse Landlord for the cost of such
removal, together with all and any damages which Landlord may suffer and sustain
by reason of Tenant's failure to remove the same. Tenant's obligations to
observe and perform the covenants set forth in this Subsection shall survive
the
expiration or earlier termination of this Lease.
38.11. Tenant's
agrees to pay Landlord, upon written demand, as Additional Rent, all costs
incurred by Landlord in connection with any actual or proposed installation
of
Communications Equipment, including, without limitation, the costs of
investigations by Landlord and Landlord's architects and engineers and other
design professionals as to the acceptability of a proposed installation of
Communications Equipment. Tenant acknowledges and agrees that the costs and
expenses imposed and agreed to be paid by Tenant under this Subsection are
agreed to be paid in consideration of the Landlord's processing of the Tenant's
request, and that they are not intend-ed as consideration for the consent to
installation of Communications Equipment. Payment of such fees and costs shall
under no circumstances obligate the Landlord to consent to any requested
installation.
39. Tenant’s
Proportionate Share of Increased Operating Costs.Section
11.1 of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein, Landlord shall
not
re-adjust Tenant’s monthly installments of Operating Costs more than two (2)
times per Operating Year.
40. Expense
Statement; Accounting.The
reference to “fifteen (15) days” in Section 11.2 of the General Terms and
Conditions to Lease is deleted and substituted in lieu thereof with “thirty (30)
days.”
41. Tenant
Right to Audit.Section
11.3 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Following
receipt of an Expense Statement Tenant shall have the right to conduct a
reasonable review of Landlord's records relating to Operating Costs for the
Operating Year just ended, and to which the Expense Statement relates, provided
that Tenant strictly complies with the provisions of this Subsection. No review
shall be permitted at any time in which an Event of Default exists under this
Lease (including an Event of Default arising by virtue of Tenant’s failure to
pay any sum deemed Additional Rent, regardless of dispute as to the propriety
Landlord’s claim for payment). If an Event of Default occurs at any time during
the pendency of a review of records then the review right shall immediately
cease, and the matters set forth in the Expense Statement under review shall
be
conclusively deemed correct, provided however, that if Tenant cures the Event
of
Default within ninety (90) days following Tenant’s receipt of the Expense
Statement, it may exercise the right contained in this Section upon five (5)
days’ prior Notice. No subtenant shall have the right to conduct any such
review; and no assignee of Tenant (other than an assignee permitted pursuant
to
Subsection 7.3) shall have the right to conduct any review with respect to
a
period antedating the assignment. Tenant shall exercise its right upon not
less
than fifteen (15) days’ prior Notice, given at any time within ninety (90) days
following Tenant’s receipt of an Expense Statement (time being of the essence).
Any such
15
review
shall be conducted by Tenant or by an independent certified public accountant
of
Tenant’s choosing that is not being compensated by Tenant on a contingency fee
basis. If Tenant employs such a third party reviewer then as a condition
precedent to such review Tenant shall deliver to Landlord a copy of Tenant’s
written agreement with such accountant which shall include provisions which
state that (i) Landlord is an intended third-party beneficiary of the agreement,
(ii) the accountant will not in any manner solicit or agree to represent any
other tenant of the Center with respect to a review of Landlord’s accounting
records at the Center, and (iii) the accountant will maintain in strict
confidence, subject to any subpoena pursuant to any legal proceeding, any and
all information obtained in connection with the review and will not disclose
the
fact of the review or any results of it to any person or entity other than
to
the Tenant. Any such review shall be conducted at Landlord’s office at the
Center or at Landlord’s principal offices, or at such other location as Landlord
may reasonably designate. Landlord will provide Tenant with reasonable
accommodation for the review and reasonable use of available office equipment
(including, without limitation, telephones and copy machines), but may make
a
reasonable charge for Tenant’s telephone calls and photocopies. Tenant shall
deliver to Landlord a copy of the results of any such review within thirty
(30)
days following its completion or receipt by Tenant and will maintain in strict
confidence any and all information obtained in connection with the review and
will not disclose the fact of the review or any results of it to any person
or
entity other than Tenant’s counsel and accountant, subject to any subpoena
pursuant to any legal proceeding. The cost of the audit, including any copies
made of any of Landlord’s records, shall be borne by Tenant, provided that if it
is determined as a result of such audit that Operating Costs as shown on such
Expense Statement exceeded the actual Operating Costs for such Operating Year
by
more than five percent (5%), (i) Landlord shall reimburse Tenant for Tenant’s
actual and reasonable costs of performing the audit and (ii) Tenant shall,
upon
fifteen (15) days’ written notice given at any time within ninety (90) days
following Tenant’s receipt of the audit results, be permitted to conduct an
audit with respect to the two (2) Operating Years immediately preceding the
Operating Year subject to the initial audit. A dispute over the Expense
Statement or any error by Landlord in interpreting or applying the provisions
of
this Lease respecting Operating Costs or in calculating the amounts in the
Expense Statement shall not be a breach of this Lease by Landlord, and even
if
any legal proceeding over the Expense Statement is resolved against Landlord
this Lease shall remain in full force and effect and Landlord shall not be
liable for any consequential damages. Pending the determination of any such
dispute Tenant shall pay amounts billed with respect to such Expense Statement
as Additional Rent, without prejudice to Tenant's position, and subject to
rebate of any amounts subsequently found to have been charged to Tenant in
error. If the dispute shall be determined in Tenant's favor then Landlord shall
promptly pay to Tenant the amount of Tenant's overpayment of Rent resulting
from
compliance with the Expense Statement together with interest from the time
of
such overpayment at the Reimbursement Rate, together with all of Tenant's
attorney fees, costs and expenses incurred in contesting the Expense
Statement.
42. Tenant’s
Proportionate Share of Increased Taxes. Section
12.1 of the General Terms and Conditions to Lease is (i) clarified to provide
that the Building is separately assessed and Tenant’s Proportionate Share of
Increased Taxes shall be based on such assessment and (ii) amended to provide
that notwithstanding anything to the contrary set forth therein, Landlord shall
not re-adjust Tenant’s monthly installments of Taxes more than two (2) times in
any Tax Year.
16
43. Payment
of Proportionate Share of Taxes. Section
12.2 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Tenant's
Proportionate Share of Taxes shall be paid by Tenant, at Landlord's election
(i)
in advance, in equal monthly installments in such amounts as are estimated
and
billed for each Tax Year by Landlord commencing July 1, 2008 and at the
beginning of each successive Tax Year during the Term, each such installment
being due on the first day of each calendar month or (ii) in lump sum, following
Landlord's receipt of the tax xxxx for the Tax Year in question, and calculation
of Tenant's Proportionate Share with respect thereto. If Landlord has elected
that Tenant pay its Proportionate Share of Taxes in installments, in advance,
then, at any time during a Tax Year, Landlord may re-estimate Tenant's
Proportionate Share of Taxes and thereafter adjust Tenant's monthly installments
payable during the Tax Year to reflect more accurately Tenant's Proportionate
Share of Taxes. Promptly following Landlord's receipt of tax bills for each
Tax
Year Landlord will notify Tenant of the amount of Taxes for the Tax Year in
question and the amount of Tenant's Proportionate Share thereof. Any overpayment
or deficiency in Tenant's payment of its Proportionate Share of Taxes for each
Tax Year shall be adjusted between Landlord and Tenant; Tenant shall pay
Landlord or Landlord shall credit to Tenant's account (or, if such adjustment
is
at the end of the Term, Landlord shall pay Tenant), as the case may be, within
thirty (30) days of the aforesaid notice to Tenant, such amount necessary to
effect such adjustment. Landlord's failure to provide such notice within the
time prescribed above shall not relieve Tenant of any of its obligations
hereunder.
44. Taxes
on Rent.Section
12.3 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
In
addition to Tenant's Proportionate Share of Taxes, Tenant shall pay to the
appropriate agency any sales, excise and other tax (not including, however,
Landlord's income taxes) levied, imposed or assessed by the State of Maryland
or
any political subdivision thereof or other taxing authority upon any Rent
payable hereunder. Tenant shall also pay, prior to the time the same shall
become delinquent or payable with penalty, all taxes imposed on its inventory,
furniture, trade fixtures, apparatus, equipment, and any other property of
Tenant.
45. Elevator.Section
13.1.1 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
At
least
one elevator subject to call at all times, including Sundays and holidays,
in
elevator-serviced buildings.
46. Utilities.Section
13.1.2 of the General Terms and Conditions to Lease is amended to provide that
as of the date hereof, (i) Landlord’s standard hours of operation are 8:00 a.m.
until 6:00 p.m. on Monday through Friday and 8:00 a.m. through 1:00 p.m. on
Saturday, exclusive of holidays and (ii) after-hours service is available at
the
rate of $75.00 per hour. Notwithstanding anything to the contrary set forth
therein, (i) the utilities described in Section 13.1.2 shall be furnished in
such amounts as are normally or usually furnished in comparable first class
office buildings in the locale of the Center and (ii) any adjustment of
after-hours service rates pursuant to this Section shall reflect Landlord’s
actual additional cost in providing such service.
17
47. Cleaning.With
regard to Section 13.1.3 of the General Terms and Conditions to Lease, cleaning
specifications are attached hereto as Exhibit
B.
48. Common
Area Maintenance.Section
13.1.6 is deleted in its entirety and the following provision is
substituted:
Routine
maintenance, painting, and electric lighting service for all Common Areas of
the
Building in such manner as Landlord deems reasonable and in any event is
consistent with maintenance of a first class office building.
49. Services
and Utilities.Section
13.1 of the General Terms and Conditions to Lease is amended to add the
following section thereto:
13.1.8
Access. Tenant
shall have 24-hour/day, 7 days/week, 365 days/year access to the
Premises.
50. Interruption
of Service.Section
13.2 of the General Terms and Conditions to Lease is amended to provide that
if
electricity, sewerage service, or water shall be unavailable to the Premises
for
a period of more than five (5) consecutive business days, due to Landlord's
negligence, such that Tenant shall be unable to continue operations at the
Premises, then Tenant shall be entitled, upon a judicial determination of
Landlord's negligence, to an abatement of all rental attributable to the entire
period of unavailability.
51. Services
and Utilities. Section
13 of the General Terms and Conditions to Lease is amended to add the following
section thereto:
13.4
Option to Submeter Electricity
13.4.1
Either
in connection with the construction of the Leasehold Improvements described
in
Exhibit B, or at anytime thereafter during the Term, Tenant may elect to install
a submeter exclusively for the Premises to measure Tenant’s consumption of
electricity (the “Electric Submeter”). Subject to Section 5 of Exhibit B and
Section 9.4.1 of the General Terms and Conditions to Lease, the Electric
Submeter shall be installed at Tenant’s cost.
13.4.2
If
the
Electric Submeter is installed, then Tenant shall thereafter pay to Landlord
the
cost of electricity Tenant consumes as recorded by the Electric Submeter, and
Basic Rent and Additional Rent shall be adjusted in accordance with subsections
13.4.3 and 13.4.4 below; provided, however, that in no event will Tenant be
liable for any charges for electricity used in the Premises before the
Commencement Date. Landlord shall xxxx Tenant periodically (but no more often
than monthly) based upon such electric consumption. Tenant shall pay each
invoice it receives from Landlord under this subsection within thirty (30)
days
after receipt.
13.4.3
Effective
as of the date the Electric Submeter is installed and operating (the “Submeter
Commencement Date”), Basic Rent shall be adjusted as follows. If the Submeter
Commencement Date occurs before the Commencement Date or during the first Lease
Year, then Sections 1.4 and 1.5 shall be amended and restated in their entirety
as follows:
1.4
Basic Rent: The
annual sum of $695,331.50 payable in equal consecutive monthly installments
of
$57,944.29 with respect to the first Lease Year of the Term, thereafter subject
to the Basic Rent Adjustment as provided in Section 5.2 of the General Terms
and
Conditions to Lease.
18
1.5 Basic
Rent Adjustment: For
the
second and each successive Lease Year, three percent (3.0%). Basic Rent shall
be
payable during the Term in accordance with the following schedule:
Lease
Year
|
Annual
Basic Rent
|
Monthly
Installment
|
1
|
$695,331.50
|
$57,944.29
|
2
|
$716,191.45
|
$59,682.62
|
3
|
$737,677.19
|
$61,473.10
|
4
|
$759,807.50
|
$63,317.29
|
5
|
$782,601.73
|
$65,216.81
|
If
the
Submeter Commencement Date occurs after the first Lease Year, then (i) the
Annual Basic Rent then in effect shall be adjusted to equal the Annual Basic
Rent then in effect minus
$2.00
per
square feet of the Premises (the “Reduced Basic Rent”), and monthly installments
thereof shall be adjusted to equal 1/12th of the Reduced Basic Rent, and (ii)
at
the commencement of the next and each successive Lease Year following the
Submeter Commencement Date, Reduced Basic Rent shall be increased by an amount
equal to the product of the Basic Rent Adjustment multiplied by the Reduced
Basic Rent payable by Tenant during the Lease Year preceding each annual
increase, the intent being to give effect to the Basic Rent Adjustment provided
in Section 1.5, but using the Reduced Basic Rent as the starting point. The
Basic Rent Adjustment shall apply during the original Term and any extended or
renewal term of this Lease unless otherwise expressly provided in any amendment
to this Lease.
13.4.4
Effective
as of the Submeter Commencement Date, Additional Rent shall be adjusted as
follows: Base Operating Costs shall be reduced from $5.60 per square feet of
the
Premises ($181,109.60) to $3.60 per square feet of the Premises ($116,427.60).
In addition, the definition of Operating Costs shall be amended to provided
that
Operating Costs shall not include any electric charges for any premises in
the
Building either leased or available for lease to tenants.
13.4.5
Promptly
following the Submeter Commencement Date, the parties shall enter into an
amendment to this Lease confirming the Submeter Commencement Date, and
reflecting the changes in Basic Rent and Additional Rent provided
herein.
52. Indemnity
by Tenant.Section
14.1 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
To
the
maximum extent permitted by law, but subject to the provisions of Subsection
14.5, Tenant indemnifies Landlord, any Superior Lessor and any Superior
Mortgagee, and agrees to save them harmless and, at the option of any of them,
defend them from and against any and all claims, actions, damages, liabilities
and expenses (including attorneys' and other professional fees) judgments,
settlement payments, and fines paid, incurred or suffered by any of them in
connection with loss of life or personal injury, or damage to property or to
the
environment, suffered by third parties, or in connection with any accident,
injury or damages whatever in the Premises, and arising from or out of the
conduct or management of the Premises or of any business therein, or any work
or
thing whatsoever done, or any condition created in or about the Premises during
the Term of this Lease or during the period of time, if any, prior to the
19
Commencement
Date that Tenant may have been given access to the Premises, excepting, however,
any such loss or damage occasioned by the negligence or willful misconduct
of
Landlord, Landlord’s agents or contractors, or any Superior Lessor or Superior
Mortgagee.
53. Indemnity
by Landlord.Section
14.2 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
To
the
maximum extent permitted by law, but subject to the provisions of Subsection
14.5, Landlord indemnifies Tenant and agrees to save it harmless from and
against any and all claims, actions, damages, liabilities and expenses
(including attorneys' and other professional fees) judgments, settlement
payments, and fines paid, incurred or suffered by any of them in connection
with
loss of life or personal injury, or damage to property suffered by third parties
arising from or out of the use of any portion of the Common Areas by Landlord,
excepting, however, any such loss or damage occasioned by Tenant’s negligence or
willful misconduct.
54. Limitation
on Landlord’s Liability for Loss, Damage and Injury.Section
14.4 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Subject
to the provisions of this Lease and to the maximum extent permitted by law,
Tenant shall occupy and use the Premises, the Building and the Common Areas
at
Tenant's own risk. All property of Tenant shall be and remain at the sole risk
of Tenant. Tenant hereby expressly agrees that Landlord and its agents, servants
and employees shall not be liable or responsible for any damage or injury to
the
property of Tenant directly or indirectly caused by any source, circumstance
or
cause whatsoever. The foregoing waiver and release is intended by Landlord
and
Tenant to be absolute and unconditional, and without exception, and to supersede
any specific repair obligation imposed by Landlord hereunder; provided that
such
waiver and release shall not apply to the omission, fault, negligence, or other
misconduct of Landlord except to the extent such omission, fault, negligence
or
other misconduct is waived by Tenant after the occurrence or is waived pursuant
to Tenant's policies of fire insurance with standard broad form coverage
indorsements, which waiver Tenant is obligated to obtain and shall be liable
for
failure to obtain. No representation, guaranty, assurance or warranty is made
or
given by Landlord that the communications or security systems, devices or
procedures used, if any, will be effective to prevent injury to Tenant or damage
to, or loss (by theft or otherwise) of any of Tenant's Personal Property or
of
the property of any other person, and Landlord reserves the right to discontinue
or modify at any time such communications or security systems, devices or
procedures without liability to Tenant.
55. Tenant’s
Insurance.Section
15.1.2 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
all-risk
property and casualty insurance, including theft coverage, written at full
replacement cost value and with full replacement cost endorsement covering
Tenant’s Personal Property, including Alterations and improvements made to the
Premises at Tenant’s sole cost and expense for which Tenant has not been granted
any credit or allowance by Landlord (other than the Leasehold Improvements
constructed by Landlord as provided in Section 4 of this Lease);
and
20
56. Landlord’s,
Tenant’s Options to Terminate Lease.Sections
16.2.1 and 16.2.2 are deleted in their entireties and the following provisions
are substituted:
16.2.1 If
the
Premises are (a) rendered wholly untenantable, or (b) damaged as a result of
any
cause which is not covered by Landlord's insurance, or if the Building is
damaged to the extent of fifty percent (50%) or more of the Rentable Area of
the
Premises, or if, for reasons beyond Landlord's control or by virtue of the
terms
of any financing of the Building, sufficient insurance proceeds are not
available for the reconstruction or restoration of the Building or Premises,
then, in any such events, Landlord may elect to terminate this Lease by giving
to Tenant notice of such election within ninety (90) days after the occurrence
of such event, or after the insufficiency of such proceeds becomes known to
Landlord, whichever is applicable. If such notice is given, the rights and
obligations of the parties shall cease as of the date set forth in such notice,
and the Basic Rent and Additional Rent (other than any Additional Rent due
Landlord either by reason of Tenant's failure to perform any of its obligations
hereunder or by reason of Landlord's having provided Tenant with additional
services hereunder, to the extent such costs have been incurred prior to the
date of termination set forth in the notice) shall be adjusted as of the date
of
such termination.
16.2.2 If,
within the 90 day period set forth above, Landlord shall not have made an
election to rebuild or to terminate this Lease as provided in the preceding
paragraph, then Tenant may elect to terminate this Lease by giving to Landlord
notice of such election within thirty (30) days following the expiration of
such
ninety (90) period. If the Premises have not been fully restored within 180
days
following the occurrence of a Casualty then Tenant may elect to terminate this
Lease by giving to Landlord notice of such election within thirty (30) days
following the expiration of such 180 day period. In either case, if such notice
is given, the rights and obligations of the parties shall cease as of the date
set forth in such notice, and the Basic Rent and Additional Rent (other than
any
Additional Rent due Landlord either by reason of Tenant's failure to perform
any
of its obligations hereunder or by reason of Landlord's having provided Tenant
with additional services hereunder, to the extent such costs have been incurred
prior to the date of termination set forth in the notice) shall be adjusted
as
of the date of such termination.
57. Signs.Section
17 of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein, so long as Tenant
is
in actual occupancy of at least eighty percent (80%) of the Premises under
this
Lease, Tenant shall be permitted to have and maintain, at Tenant’s sole expense,
one (1) lighted sign on the exterior of the side of the Building facing Red
Lobster/White Xxxxx Mall which signage shall be similar in style, location
and
size to the Comcast sign located on the adjacent building. Such signage shall
be
subject to Landlord’s approval and signage criteria and, in addition, subject to
approval under applicable covenants respecting architectural control within
the
White Xxxxx Business Community generally, and all applicable architectural
control covenants to which the Center is subject, and further subject to the
provisions of applicable zoning and sign ordinances. Except as provided in
the
preceding sentence, Tenant shall neither erect, maintain or replace any sign
within the Premises visible from outside the Building, nor erect or maintain
any
sign upon the exterior of the Building or anywhere else upon the Center, without
first obtaining Landlord's written approval as to the size, design, location,
type of composition or material and lighting thereof. Design shall be in
accordance with the guidelines established by Landlord from time to time and
all
applicable laws and regulations. Any such sign shall be inscribed, painted
or
affixed by Tenant or Tenant’s vendor and the entire cost thereof shall be borne
by Tenant. Tenant shall maintain such sign or signs in good condition and repair
at all times, and pay any taxes imposed thereon. Further notwithstanding
anything to the contrary set forth in such Section, provided Tenant has not
exercised any renewal right inuring to Tenant under the terms of this Lease,
then Landlord may place upon the Building a FOR RENT sign with
21
respect
to the Premises during the six (6) month period preceding the expiration date
of
the Term.
58. Right
of Entry for Inspection, Exhibition, Repair.Section
18 of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein, Landlord shall
provide Tenant with twenty-four (24) hours notice prior to entry by Landlord
into the Premises, except in the event of emergency.
59. Subordination
and Attornment.Section
19 of the General Terms and Conditions to Lease is amended to provide that
this
Lease shall be superior to the lien of any Superior Mortgage which may now
or
hereafter encumber or otherwise affect the Center or the Building; provided,
however, that Tenant shall subordinate this Lease with respect to mortgages
of
deeds of trust encumbering the Building and created subsequent to the date
of
this Lease conditioned upon obtaining, from the mortgagees or beneficiaries
with
respect thereto, an agreement of subordination, attornment and nondisturbance
in
the Superior Mortgagee’s usual and customary form (an “SNDA”), subject to the
reasonable discussions between the affected parties, in favor of the Tenant
such
that, if any proceedings are brought for the foreclosure of any portion of
the
Building of which the Premises are a part, or if the power of sale under a
mortgage or deed of trust is exercised or in the event of any other transfer
in
lieu thereof, then Tenant’s occupancy of the Premises and its rights under this
Lease shall not be disturbed and shall remain in full force and effect for
the
Term so long as Tenant performs and observes all of the terms, covenants and
conditions of this Lease to be performed or observed by it and provided that
Tenant agrees to attorn to the Superior Mortgagee or purchaser upon any such
foreclosure, sale or transfer in lieu thereof (the Superior Mortgagee, any
purchaser upon foreclosure, sale or transfer in lieu thereof and any such person
or successor or assign being herein collectively referred to as "Successor
Landlord") and recognize such Successor Landlord as the Landlord under this
Lease and make all payments required hereunder to such Successor Landlord
without deduction or set-off except as expressly permitted under this Lease.
Landlord shall have no obligation to negotiate the form of any such SNDA if
Tenant and any Successor Landlord disagree with respect to the form or content
of a proposed agreement of nondisturbance but shall use best efforts to act
as a
liaison between Tenant and such Successor Landlord in the negotiation of such
SNDA, provided, however, that Landlord shall not assume any further
responsibilities or incur any liabilities in connection therewith. Any such
SNDA
procured shall provide that upon Tenant’s attornment to any Successor Landlord,
this Lease shall continue in full force and effect as a direct lease between
such Successor Landlord upon all of the then executory terms of this Lease
and
Tenant’s rights hereunder shall not be materially affected except that such
Successor Landlord shall not be: (i)
liable for any previous act or omission or negligence of Landlord under this
Lease; (ii) subject to any counterclaim, defense or offset, not expressly
provided for in this Lease and asserted with reasonable promptness, which
theretofore shall have accrued to Tenant against Landlord; (iii) obligated
to
perform any Leasehold Improvements other than those described on Exhibit B
or
other work with respect to the Premises; (iv) bound by any previous modification
or amendment of this Lease or by any previous prepayment of more than one
month's Rent, unless such modification or prepayment shall have been approved
in
writing by the Successor Landlord through or by reason of which the Successor
Landlord shall have succeeded to the rights of Landlord under this Lease; (v)
obligated to repair the Premises or the Building or any part thereof, in the
event of total or substantial total damage beyond such repair as can reasonably
be accomplished from the net proceeds of insurance actually made available
to
Successor Landlord; or (vi) obligated to repair the Premises or the Building
or
any part thereof, in the event of partial condemnation beyond such repair as
can
reasonably be accomplished from the net proceeds of any award actually made
available to Successor Landlord, as consequential damages allocable to the
part
of the Premises or the Building not taken. Nothing contained in this Section
shall be construed to impair any right otherwise exercisable by any such owner,
holder or lessee.
60. No
Current Mortgages Affecting Building.Landlord
represents that as of the date of this Lease, there are no mortgages or deeds
of
trust encumbering the Building.
22
61. Modifications
to Lease; Rights of Superior Mortgagee, Superior Lessor.Section
20 of the General Terms and Conditions to Lease is deleted in its
entirety.
62. Events
of Default Defined.Section
21.1.2 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
The
failure by Tenant to perform or observe any other term, covenant, agreement
or
condition of this Lease on the part of Tenant to be performed, for a period
of
fifteen (15) days following Notice; unless
the nature of the failure is such that (a) it cannot be cured within the fifteen
(15) day period, (b) Tenant insti-tutes corrective action within the fifteen
(15) day period, and (c) Tenant diligently pursues such action until the failure
is remedied, and, in any event, completes the cure within a period of an
additional thirty (30) days;
63. Events
of Default Defined.Section
21.1.6 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
The
abandonment of the Premises by Tenant at any time during the term of this Lease,
or the suspension of business by Tenant at the Premises for more than fifteen
(15) consecutive days (for purposes hereof, Tenant shall be deemed to have
abandoned the Premises if Tenant has ceased to operate its business from the
Premises, has removed or indicated the intent to remove Tenant’s Personal
Property from the Premises and fails or has failed to maintain the Premises
as
otherwise provided in this Lease);
64. Landlord’s
Remedies for Default.Section
21.2 of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein, Landlord waives
any
right of distraint and any statutory lien it may have on any of Tenant’s
Personal Property located at the Premises.
65. Landlord’s
Remedies for Default.Section
21.2.2 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
Landlord
may re-enter the Premises, with legal process and using such force for such
purposes as may be reasonably necessary, without being liable for prosecution
thereof, and without being deemed guilty of any manner of trespass, and without
prejudice to any remedies for arrears of Rent or preceding breach of covenants
or conditions and, upon such reentry, Landlord may remove any and all of
Tenant's property at the Premises;
66. Damages.Section
21.4 of the General Terms and Conditions to Lease is amended to provide that
notwithstanding anything to the contrary set forth therein or elsewhere in
the
Lease, neither Landlord nor Tenant shall be liable to the other for any punitive
damages.
67. Rent
During Holdover.The
references to “double the Basic Rent” set forth in Section 21.5 of the General
Terms and Conditions to Lease are deleted and in lieu thereof substituted with
“one hundred fifty percent (150%) of the Basic Rent.”
68. No
Implied Waiver of Landlord's Rights.
Section
21.6 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
The
failure of Landlord or Tenant to insist in any one or more instances upon the
performance of any of the covenants or conditions of this Lease, or to exercise
any right or privilege herein conferred shall not be construed as thereafter
waiving or relinquishing such party’s right to the
23
performance
of any such covenants, conditions, rights or privileges, and the same shall
continue and remain in full force and effect, and the waiver of one default
or
right shall not constitute waiver of any other default. The receipt of any
Rent
by Landlord from Tenant or any assignee or subtenant of Tenant, whether the
same
be Rent that originally was reserved or that which may become payable under
any
covenants herein contained, or of any portion thereof, shall not operate as
a
waiver of Landlord's right to enforce the payment of the Rent or of any of
the
other obligations of this Lease by such remedies as may be appropriate, and
shall not waive or avoid Landlord's right at any time thereafter to elect to
terminate this Lease, on account of such assignment, sub-letting, transferring
of this Lease or any other breach of any covenant or condition herein contained,
unless evidenced by Landlord's written waiver thereof. The acceptance of Rent
or
any other consideration by Landlord at any time shall not be deemed an accord
and satisfaction, and Landlord shall have absolute discretion to apply same
against any sum for any period or reason due hereunder without the same
constituting a release of any other sums remaining due and unpaid.
69. The
Landlord.Section
22.1 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
As
used
herein, the term "Landlord" means the Landlord originally so named as well
as
its successors and assigns, and any other subsequent owner of the leasehold
estate or reversion in the Center, as well as the heirs, personal
representatives, successors and assigns of any such subsequent owner, each
of
whom shall have the same rights, remedies, powers, authorities and privileges
as
he would have had if he had originally signed this Lease as Landlord, but any
such person, whether or not named herein, shall have no liability hereunder
after he shall cease to hold the title to or a leasehold interest in the said
real estate, except for obligations which may have theretofore accrued. Neither
Landlord nor any principal of Landlord, whether disclosed or undisclosed, shall
have any personal liability with respect to this Lease, the Premises and the
Center. After Tenant has accepted and taken occupancy of the Premises, Tenant
shall look only to Landlord's estate and property in the Center (the proceeds
thereof, or any insurance or condemnation proceeds to which Tenant otherwise
is
entitled under the terms of this Lease, subject to, however, the rights of
any
Superior Mortgagee or Superior Lessor) for the satisfaction of Tenant's remedies
for the collection of a judgment (or other judicial process) requiring the
payment of money by Landlord in the event of any default by Landlord hereunder,
and no other property or assets of Landlord or its partners or principals,
disclosed or undisclosed shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant's remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder or
Tenant's use or occupancy of the Premises.
70. The
Tenant.Section
22.2.1 of the General Terms and Conditions to Lease is deleted in its entirety
and the following provision is substituted:
As
used
herein, the term "Tenant" means the Tenant named in this Lease as well as its
heirs, personal representatives, successors and assigns, each of which shall
be
under the same obligations, liabilities, and disabilities and have only such
rights, privileges and powers as it would have possessed had it originally
signed this Lease as Tenant. However, no such rights, privileges or powers
shall
inure to the benefit of any assignee of Tenant, immediate or removed, unless
the
assignment to such assignee shall have been consented to in writing by the
Landlord, as aforesaid, or such assignee is otherwise permitted pursuant to
Section 7.3 hereof. Any person or entity to which this Lease is assigned
pursuant to the provisions of the Bankruptcy Code, shall be deemed without
further act or deed to have assumed all of the obligations arising
24
under
this Lease on and after the date of such assignment. Any such Assignee shall
upon demand execute and deliver unto Landlord an instrument confirming such
assumption.
71. Tenant’s
Certificate.Section
22.3 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Tenant
agrees at any time, and from time to time, within ten (10) business days after
Landlord's written request, to execute, acknowledge and deliver to Landlord
a
written instrument in recordable form certifying or stating: (i) that this
Lease
is unmodified and in full force and effect (or if there shall then have been
modifications, that the same is in full force and effect as so modified, and
setting forth such modifications); (ii) that the Premises have been completed
by
Landlord in accordance with Section 4 hereof (or if not so completed, stating
the respects in which not completed); (iii) that Tenant has accepted possession
of the Premises, the date upon which the Term has commenced and the date of
the
expiration of the Term of this Lease; (iv) the dates to which Rent and other
charges have been paid in advance, if any; (v) whether or not, to the best
knowledge of Tenant, Landlord is then in default in the performance of any
covenant, agreement or condition contained in this Lease and, if so, specifying
in detail each such default of which Tenant may have knowledge; (vi) as to
any
other matters regarding the status of the Lease as may be reasonably so
requested; and (vii) that it is understood that such instrument may be relied
upon by any prospective purchaser, mortgagee, assignee or lessee of Landlord's
interest in this Lease, in the Center, or any portion or part
thereof.
72. Consent
to Requests. Section
22.4 of the General Terms and Conditions to Lease is deleted in its
entirety.
73. Relocation.Section
22.5 of the General Terms and Conditions to Lease is deleted in its
entirety.
74. Brokerage.Section
22.7 of the General Terms and Conditions to Lease is deleted in its entirety
and
the following provision is substituted:
Landlord
and Tenant warrant each to the other that it has had no dealings with any broker
or agent in connection with this Lease other than the Named Broker and
Nottingham Management Company, whose commissions Landlord covenants and agrees
to pay in the amount agreed between Landlord and such broker or brokers. Each
of
the parties hereto covenants to pay, hold harmless and indemnify the other
from
and against any and all costs, expense or liability for any compensation,
commissions or charges claimed by any broker other than those stated above
or
any other agent with respect to this Lease or the negotiation
thereof.
75. Definitions;
Notice.The
definitional term for Notice in Section 23 of the General Terms and Conditions
to Lease is deleted in its entirety and the following provision is
substituted:
Any
notice required or permitted to be given hereunder. All Notices shall be in
writing and shall be conclusively presumed to have been received (a) if sent
by
United States mail, if delivery is by postage paid registered or certified
mail,
then when delivered (or when delivery is refused, as indicated on the receipt),
or (b) if sent by FEDEX or other nationally recognized overnight courier
service, receipt requested, then the next business day after being sent provided
verification of actual delivery on such next business day is made by such
courier service. Any notice in any other manner shall be deemed given when
actually received or refused. Any notice given by telecopier shall be promptly
sent by first class mail, postage prepaid, as well. All notices to be sent
to
the Tenant shall be sent care of the Tenant's Notice Address with a copy to
any
other person designated in writing by Tenant to Landlord. Notices to Landlord
shall be delivered or addressed to Landlord's Notice Address, with a copy to
any
other persons
25
designated
by Landlord. Either party may, at any time, in the manner set forth for giving
notices to the other, set forth a different address to which notices to it
shall
be delivered or sent.
76. Definitions;
Operating Costs.The
definitional term for Operating Costs in Section 23 of the General Terms and
Conditions to Lease is amended as follows:
Notwithstanding
anything to the contrary set forth herein, the term "Operating Costs" shall
not
include costs or expenses or depreciation or amortization for capital repairs
and capital replacements required to be made by Landlord pursuant to Subsection
9.5.1; debt service under any Superior Mortgage, or ground rent payments under
any Superior Lease; leasing commissions; expenditures for which Landlord is
reimbursed by any insurance carrier, or from any other source; or cost of
repairs or replacements incurred by reason of Casualty or
condemnation.
The
following shall also be excluded from Operating Costs: (a) salaries or benefits
for Landlord's executives and employees above the grade of property manager,
and, for any employee who does not devote all of his time to the Building,
the
proportion of such employee's salary or benefits related to work not performed
at the Building; (b) to the extent such costs constitute capital costs under
generally accepted accounting principles, the cost of replacement of HVAC,
mechanical, security, electrical, plumbing systems, or of any substantial
component or part of such systems beyond the scope of routine maintenance and
repair; resurfacing of the parking area or of the Building driveways or any
other cost which is capital in nature, provided if Landlord shall purchase
any
item of capital equipment or make any capital expenditure which has the effect
of reducing the expenses which would otherwise be included in Operating Costs,
then the costs of such capital equipment or capital expenditure may be included
in Operating Costs if amortized over the useful life of the item on
straight-line basis, but only to the extent of the reduction in each escalation
year or expenses which would otherwise be included in Operating Costs, until
the
savings or reductions in Operating Costs equal Landlord's costs for such capital
expenditure. If Landlord shall lease any items of capital equipment which
results in savings or reductions in Operating Costs for the escalation year
in
which they were incurred, but only to the extent of the reduction in each
escalation year of expenses which would otherwise be included in Operating
Costs; (c) expenditures for which Landlord is reimbursed by any insurance
carrier, or from any other source; (d) cost of repairs or replacements incurred
by reason of fire or other Casualty or condemnation; (e) advertising and
promotional expenditures; (f) costs incurred in performing work or furnishing
services for any tenant (including Tenant), whether at such Tenant's or
Landlord's expense, to the extent that such work or service is in excess of
any
work or service that Landlord is obligated to furnish to Tenant at Landlord's
expense; (g) depreciation, except as provided above; (h) bad debt loss, rent
loss or reserves for either of them; (i) the cost of electricity furnished
to
any particular tenant and paid for by such tenant; (j) debt
service under any Superior Mortgage, or ground rent payments under any Superior
Lease, including
points, commitment fees, broker's fees, legal fees and mortgage interest and
amortization payments; (k) costs incurred in connection with the construction
and initial development of the Building; (l) costs, expenses or expenditures
relating to the duties, liabilities or obligations of other tenants in the
Building; (m) any costs incurred by Landlord arising out of its failure to
perform or breach of any of its covenants, agreements, representations,
warranties, guarantees or indemnities made for the benefit of Tenant under
this
Lease; (n) Fees and Costs, space planner's fees, broker's commissions and other
costs incurred by Landlord in connection with leasing space and negotiating
leases with tenants of the Building, or legal fees in connection with disputes
between Landlord and any tenant of the Building or between Landlord and any
mortgagee; (o) lease payments for rented equipment, the cost of which equipment
would constitute a capital
26
expenditure
if the equipment were purchased; and any late fees, penalties, interest charges
or similar fees incurred by Landlord; (p) costs of improving, altering,
constructing or redecorating any space leased to tenants of the Building; (q)
any cost representing an amount paid to a person, firm, corporation or other
entity related to Landlord which is in excess of the amount which would have
been paid in the absence of such relationship; (r) costs incurred by Landlord
to
remedy any defects in the design of or materials used in, or the defective
installation of the structural steel framing, roof, foundation and underground
utility lines forming a part of or servicing the Building; (s) costs associated
with the operation of the business of the entity which constitutes Landlord
as
the same are distinguished from the costs of operation of the Building,
including, without limitation, accounting and legal expenses, costs of selling,
syndicating, financing, mortgaging or hypothecating Landlord's interest in
the
Building, costs of any disputes between Landlord and its employees, building
managers or other tenants; or (t) Hazardous Materials remediation costs for
which Landlord is responsible under this Lease.
77. Definitions;
Tenant’s Personal Property.The
definitional term for Tenant’s Personal Property in Section 23 of the General
Terms and Conditions to Lease is deleted in its entirety and the following
definition is substituted:
All
equipment, machinery, furniture, furnishings and/or other property now or
hereafter installed or placed in or on the Premises by and at the sole expense
of Tenant and is removable without damage to the Premises or the Building.
Notwithstanding any other provision of this Lease, Tenant's Personal Property
shall not include any Leasehold Improvements or Alterations, whether or not
any
of the same were installed at Tenant's expense.
78. Tenant’s
Proportionate Share.The
definitional term for Tenant’s Proportionate Share in Section 23 of the General
Terms and Conditions to Lease is deleted in its entirety and the following
definition is substituted:
A
fraction, expressed as a percentage, the numerator of which is the Rentable
Area
of the Premises, and the denominator of which is the Rentable Area of the
Building. As of the date hereof, Tenant’s Proportionate Share is 50.03%, subject
to final measurement in accordance with Section 1 of the General Terms and
Conditions to Lease.
79. Exhibit
C; Rules & Regulations to Lease.Paragraph
7 of Exhibit C, Rules & Regulations to Lease is amended to provide that any
approval of Landlord required therein shall not be unreasonably
withheld.
80. Exhibit
C; Rules & Regulations to Lease.Paragraph
8 of Exhibit C, Rules & Regulations to Lease is amended to provide that such
rules and regulations shall be subject to Tenant’s signage rights pursuant to
Section 17 of the General Terms and Conditions to Lease, as amended
herein.
81. Exhibit
C; Rules & Regulations to Lease.Paragraph
10 of Exhibit C, Rules & Regulations to Lease is deleted in its entirety and
the following paragraph is substituted:
No
noise,
including, but not limited to, music, the playing of musical instruments,
recordings, radio or television, which, in the reasonable judgment of Landlord,
might disturb other tenants in the Building, shall be made or permitted by
any
tenant. Without limiting any rights specifically granted to Tenant in the Lease,
nothing shall be done or permitted by any tenant which would impair or interfere
with the use or enjoyment by any other tenant or any other space in the
Building.
27
82. Exhibit
C; Rules & Regulations to Lease.Paragraph
11 of Exhibit C, Rules and Regulations to Lease is deleted in its entirety
and
the following paragraph is substituted:
Nothing
shall be done or permitted in the tenant's premises, and nothing shall be
brought into, or kept in or about the premises, which would impair or interfere
with any of the HVAC, plumbing, electrical, structural components of the
Building or the services of the Building or the proper and economic heating,
cleaning or other services of the Building or the premises, nor shall there
be
installed by any tenant any ventilating, air-conditioning, electrical or other
equipment of any kind which, in the judgment of Landlord, might cause any such
impairment or interference. No tenant, nor the employees, agents, licensees
or
invitees of any tenant, shall at any time bring or keep upon the premises any
flammable, combustible or explosive fluid, chemical or substance, except in
compliance with Applicable Law and as otherwise provided in Section 6.4 of
the
Lease. Notwithstanding the foregoing, with Landlord’s prior written consent,
Tenant shall be permitted to install a supplemental HVAC unit in the Premises
provided such installation is otherwise in accordance with Section 9.4 of the
Lease.
83. Exhibit
C; Rules & Regulations to Lease.Paragraph
13 of Exhibit C, Rules and Regulations to Lease, is deleted in its entirety
and
the following paragraph is substituted:
All
removals, or the carrying in or out of any safes, freight, furniture, packages,
boxes, crates or any other object or matter of any description shall take place
only during such hours and in such elevators as Landlord may from time to time
determine, which may involve overtime work for Landlord's employees. Tenant
shall reimburse Landlord for extra costs incurred by Landlord including
reserving the right to inspect all objects and matter to be brought into the
Building and to exclude from the Building all objects and matter which violate
any of these Rules and Regulations or the Lease of which these Rules and
Regulations are a part. Landlord may require any person leaving the Building
with any package or other object or matter to submit a pass, listing such
package or object or matter, from the tenant from whose premises the package
or
object or matter is being removed, but the establishment and enforcement of
such
requirement shall not impose any responsibility on Landlord for the protection
of any tenant against the removal of property from the premises of such tenant.
Subject to Section 14 of the General Terms and Conditions to Lease, Landlord
shall in no way be liable to any tenant for damages or loss arising from the
admission, exclusion or ejection of any person to or from the Premises or the
Building under the provisions of these Rules and Regulations.
84. Exhibit
C; Rules & Regulations to Lease.Paragraph
15 of Exhibit C, Rules and Regulations to Lease, is deleted in its entirety
and
the following paragraph is substituted:
Subject
to Tenant’s signage rights pursuant to Section 17 of the General Terms and
Conditions to Lease, as amended herein, Landlord shall have the right to
prohibit any advertising on or in the Building or identifying sign for or by
any
tenant which, in the judgment of Landlord, tends to impair the appearance or
reputation of the Building or the desirability of the Building as a building
for
offices, and upon written notice from Landlord such tenant shall refrain from
and discontinue such advertising or identifying sign.
85. Exhibit
C; Rules & Regulations to Lease.Paragraph
21 of Exhibit C, Rules & Regulations to Lease is deleted in its entirety and
the following paragraph is substituted:
No
tenant
shall cause or permit any odors of cooking or other processes, or any unusual
or
objectionable odors, to emanate from its premises which would annoy other
tenants or create a public or private nuisance. No cooking shall be done in
a
tenant's premises except for the
28
personal
consumption of tenant’s employees and as is expressly permitted in the Lease of
which these Rules and Regulations are a part, or otherwise consented to in
writing by the Landlord.
86. Exhibit
C; Rules & Regulations to Lease.Paragraph
23 of Exhibit C, Rules & Regulations to Lease is deleted in its
entirety.
87. Exhibit
C; Rules & Regulations to Lease.Paragraph
25 of Exhibit C, Rules & Regulations to Lease is amended to provide that (i)
Landlord’s consent shall not be unreasonably withheld, conditioned or delayed
and (ii) Landlord’s prior written consent shall not be required in connection
with the installation of a vending machine provided that such installation
solely involves hook-up to an existing wall socket and such vending machine
will
be located within the Premises.
88. Exhibit
C; Rules & Regulations to Lease.Paragraph
28 of Exhibit C, Rules & Regulations to Lease is deleted in its entirety and
the following provision is substituted:
To
the
extent that janitorial services are provided by Landlord, Tenant shall not
employ any person or persons other than Landlord's janitors for the purpose
of
cleaning its premises, without prior written consent of Landlord, which consent
shall not be unreasonably withheld. Subject to Section 14 of the General Terms
and Conditions to Lease, Landlord shall not be responsible to any tenant for
any
loss of property from its premises however occurring, or for any damage done
to
the effects of any tenant by such janitors or any of its employees, or by any
other person or any other cause. Any janitor's service furnished by Landlord
does not include the beating or cleaning of carpets or rugs.
89. Exhibit
C; Rules & Regulations to Lease.Paragraph
29 of Exhibit C, Rules & Regulations to Lease is deleted in its entirety and
the following provision is substituted:
Landlord
hereby reserves to itself any and all rights not granted to tenant hereunder,
including, but not limited to, the following rights which are reserved to
Landlord for its purposes in operating the Building: (i) the exclusive right
to
use of the name of the Building for all purposes, except that a tenant may
use
the name as its business address and for no other purposes; (ii) the right
to
change the name or address of the Building, without incurring any liability
to
any tenant for so doing (provided however that Landlord shall replace Tenant’s
existing stocks of pre-printed stationery; (iii) the right to install and
maintain a sign or signs on the exterior of the Building, subject to any signage
rights of Tenant pursuant to Section 17 of the General Terms and Conditions
to
Lease; (iv) the exclusive right to use or dispose of the use of the roof of
the
Building; (v) the right to limit the space on the directory of the Building
to
be allotted to a tenant; and (vi) the right to grant anyone the right to conduct
any particular business or undertaking in the Building provided such business
or
undertaking is consistent with a first class office building..
90. Exhibit
C; Rules & Regulations to Lease.Paragraph
35 of Exhibit C, Rules & Regulations to Lease is amended to provide that
Landlord shall enforce the rules and regulations in a uniform, fair and
non-discriminatory manner.
91. Right
of First Offer with Respect to Additional Leasehold Space.
91.1. During
the Term of this Lease (the "Offer Period"), Tenant shall have a right of first
offer (the "Right of First Offer") to lease additional space in the Building
that becomes available (the "Offer Space"), such that if, during the Offer
Period, the Offer Space has or will "become available" for leasing by the
Landlord, then Landlord shall not lease the Offer Space to any other party
unless the Offer Space has first been offered to and rejected (or deemed
rejected) by Tenant. For purposes of this Section, Offer
29
Space
shall be deemed to "become available", or to be "Available Offer Space",
when
(i) the lease or leases respecting the Offer Space, and in effect as of the
Commencement Date of this Lease, expires or is otherwise terminated or (ii)
when, following the Commencement Date of this Lease, Landlord otherwise
determines to actively market such Offer Space for lease. Offer Space shall
not
be deemed to "become available", or to be deemed "Available Offer Space"
if,
during the Offer Term, such space is (i) assigned or subleased by the
then-current tenant of the space; or (ii) re-let by the then-current tenant
of
the space by renewal, extension, or renegotiation. Such
Right of First Offer shall be subordinate to any similar prior right held
by
other tenants of the Building under any leases pre-dating this
Lease.
91.2. Consistent
with the preceding Section, Landlord shall not lease any Available Offer Space
to another party unless and until Landlord has first offered the Available
Offer
Space to Tenant by written notice (the "First Offer Leasing Notice"). The First
Offer Leasing Notice shall contain the following: (i) a description of the
square footage and location of the Available Offer Space; (ii) the date on
which
the Landlord expects and proposes that the Available Offer Space be delivered
to
Tenant for incorporation into the Lease (the "Offer Space Commencement Date");
(iii) the proposed increase in Rent and Tenant's Proportionate Share. Tenant
shall have fifteen (15) business days following the date of Landlord's First
Offer Leasing Notice within which to accept or reject the terms contained
therein; and Tenant shall be deemed to have rejected the same unless within
such
fifteen (15) day period Tenant shall have delivered to Landlord Tenant's
unconditional written acceptance of the terms thereof, which notice shall be
accompanied by the financial information referred to below.
91.3. All
of
the following conditions must apply both at the time Tenant exercises the Right
of First Offer as well as at the Offer Space Commencement Date: (i) the Lease
must be in full force and effect and Tenant must be in possession of the
Premises and paying Rent hereunder; (ii) no Event of Default shall exist; and
(iii) Tenant's then-current financial condition, as revealed by its most recent
financial statements (which shall include quarterly and annual financial
statements, including income statements, balance sheets, and cash flow
statements), must demonstrate that (A) Tenant's net worth is at least equal
to
its net worth at the time this Lease was signed or (B) that Tenant otherwise
satisfies Landlord's then-current standards for tenant creditworthiness. In
addition, if any guaranty is then in effect with respect to the Tenant's Lease
obligations then, at the Offer Space Commencement Date, Tenant shall deliver
to
Landlord an original, signed and notarized reaffirmation of each guarantor's
personal guaranty, in form and substance generally acceptable to
Landlord.
91.4. If
Tenant
rejects or is deemed to have rejected the terms of Landlord's First Offer
Leasing Notice then Tenant's Right of First Offer shall thereafter irrevocably
lapse and terminate as to the Offer Space described in such notice, and Landlord
shall thereafter be free to lease the Offer Space therein described to any
third-party at any time without regard to the restrictions in this Section
and
on whatever terms and conditions Landlord may decide in its sole discretion,
provided however, that if such Offer Space is leased to a third-party and
thereafter following the expiration or termination of such lease, such Offer
Space, or portion thereof, becomes “available” (as defined herein), then Tenant
may thereafter exercise the Right of First Offer with respect to such space
or
portion thereof in accordance with this Section 84.
91.5. If
Tenant
delivers to Landlord a timely notice of acceptance of the terms contained in
Landlord's First Offer Notice, together with Tenant's financial statements
as
provided above, and Landlord determines that all of the other conditions
described above are satisfied, then, as of the Offer Space Commencement Date,
the Available Offer Space described in Landlord's First Offer Notice shall
be
deemed added to the Premises and subject to the terms and conditions in the
Lease, with the exception of those Lease modifications hereinafter set forth
or
otherwise as mutually agreed to by Landlord and Tenant in good faith. Within
fifteen (15) business days following Landlord's receipt of Tenant's notice
of
acceptance Landlord shall present to Tenant, and Tenant shall execute and
re-deliver to Landlord, an
30
amendment
to Lease defining the Available Offer Space to be added to the leased Premises,
the Offer Space Commencement Date, the changes in Rent and Tenant's
Proportionate Share, and other relevant matters.
91.6. The
Available Offer Space subject to such amendment shall be leased to Tenant for
a
rental rate equal to the then-current per-square foot shell rental rate for
comparable space in the Building as determined by Landlord, in its reasonable
discretion, including relevant tenant concessions.
91.7. Any
improvement costs shall be separately negotiated by the parties after Landlord's
receipt of Tenant's notice of acceptance of the terms of Landlord's First Offer
Leasing Notice. The Available Offer Space as accepted by Tenant shall be
delivered to Tenant on the Offer Space Commencement Date in clean condition,
free of tenants or other occupants, and in its then "as is" condition, except
as
otherwise agreed by Landlord and Tenant.
91.8. The
failure of Tenant to take action in any manner or time periods set forth above
or the commission by Tenant of an Event of Default beyond any applicable cure
period under the Lease at any time during which Tenant has elected to exercise
this Right of First Offer shall render this Right null and void and of no
further force or effect with respect to the Available Offer Space subject to
this Right at such time, provided however, the commission by Tenant of more
than
two (2) Events of Default during any consecutive twelve (12) month period during
the Term shall render this Right null and void and of no further force and
effect. This Right of First Offer is personal to the Tenant and, unless Landlord
shall otherwise specifically agree in writing, shall automatically lapse and
terminate upon the occurrence of an assignment of the Tenant's interest in
the
Lease or a sublet of all or part of Premises, except in the event of (i) a
Transfer pursuant to Section 7 of the Lease for which Landlord has granted
consent and which Transfer consists of an assignment of the entirety of the
Premises for the remainder of the Term or (ii) a Transfer pursuant to Section
7.3 of the Lease.
92. Renewal
Option.Provided
Tenant is not in default of any of its obligations under the Lease and is in
possession of the Premises, Tenant shall be entitled to renew the Lease for
one
(1) additional term of five (5) years, commencing immediately following the
expiration of the Term, on the same terms and conditions of the Lease, with
the
following conditions:
92.1. Tenant
will give written notification to Landlord not later than nine (9) full calendar
months prior to the scheduled termination date of the Term of its intention
to
elect to renew the Lease.
92.2. For
the
first Lease Year of the renewal Term, the Basic Rent shall be increased, and
the
amount of such increase shall equal five percent (5%) of the amount of Basic
Rent paid on an annual basis during the immediately preceding Lease Year.
Thereafter, for each successive Lease Year of the renewal term, the Basic Rent
shall be increased, and the amount of the increase in each Lease Year shall
equal three percent (3.00%) of the amount of Basic Rent paid on an annual basis
during the immediately preceding Lease Year. Consecutive monthly installments
of
Basic Rent shall be increased accordingly.
92.3. If
Tenant
elects to lease the Premises for the renewal term above set forth pursuant
to
the renewal right granted in this Section then Tenant shall execute a Lease
Amendment extending the Term and confirming the new Basic Rent within ten (10)
days of receipt of an instrument of amendment from Landlord.
92.4. Time
shall be of the essence with respect to each of the provisions of this Section;
if Tenant fails or refuses to provide notices or to take action as provided
in
this Section within the times herein set forth then the renewal right and option
herein granted shall lapse and terminate.
92.5. No
additional rights or options to renew shall be deemed to be
granted.
31
92.6. The
right
and option set forth in this Section is personal to the party originally named
as Tenant under the Lease and shall lapse and terminate upon any assignment
or
sublease of the Premises, except
in
the event of (i) a Transfer pursuant to Section 7 of the Lease for which
Landlord has granted consent and which Transfer consists of an assignment of
the
entirety of the Premises for the remainder of the Term or (ii) a Transfer
pursuant to Section 7.3 of the Lease.
IN
WITNESS WHEREOF, the parties hereto have executed this Rider to Office Lease
Agreement, or have caused the same to be executed on their respective behalves
by their duly authorized representatives, the date and year first above
written.
WITNESS:
|
LANDLORD:
CORPORATE
PLACE I BUSINESS TRUST, a Maryland business trust, by COMMERCIAL
PROPERTY
INVESTORS TRUST COMPANY, LLC, a Maryland limited liability
company
|
/s/
(illegible)
|
By: /s/Xxxxx
X. Xxxxxxx, Xx. (seal)
Xxxxx
X. Xxxxxxx, Xx.,
Executive Vice President
|
TENANT:
COSTAR
GROUP, INC., a Delaware corporation
|
|
/s/
Xxxxxx X
Xxxxxx
|
By: /s/
Xxxxx
Xxxxxxxx
(seal)
Xxxxx
Xxxxxxxx
Name
|
C.F.O
|
|
Title
|
{acknowledgements
appear on following page}
32
Acknowledgements
State
of
Maryland
County
of
Xxxxxx, to wit:
On
this
16th day of March, 2007, before me, the undersigned officer, personally appeared
Xxxxx X. Xxxxxxx, Xx. who acknowledged himself to be the President of Commercial
Property Investors Trust, LLC, a Maryland corporation, which is Trustee of
Corporate Place I Business Trust, a Maryland business trust, and on behalf
of
said limited liability company and said trust, did acknowledge that he, as
such
officer, being authorized so to do, executed the foregoing instrument for the
purposes therein contained, by signing the name of such limited liability
company as such Trustee by himself as such officer.
IN
WITNESS WHEREOF, I hereby unto set my hand and official seal.
_/s/
Samantha Keeton_ ____________(seal)
Notary
Public
My
Commission expires:
___July
14,
2009_________________
State
of
Maryland
County
of
Xxxxxxxxxx, to wit:
On
this
__9th_____
day
of __March_____,
2007, before me, the undersigned officer, personally appeared __Frank
Carchedi_ ___who
acknowledged himself/herself to be the ___C.F.O_____
of
Costar Group, Inc., a Delaware corporation, and on behalf of said corporation
did acknowledge that he/she as such officer being authorized so to do executed
the foregoing Lease for the purposes therein contained by signing the name
of
the corporation by himself/herself as such officer.
IN
WITNESS WHEREOF, I hereby unto set my hand and official seal.
_Lisa
Springer ____________________(seal)
Notary
Public
My
Commission expires:
____January
7,
2009__________________
33
Exhibit
A
Terms
of Letter of Credit
The
following terms are to be set forth in the Letter of Credit, as items to be
complied with by the Beneficiary:
1. |
A
written statement, signed by an officer of the Beneficiary, duly
notarized, as to either or both of two alternatives, as
follows:
|
a. |
This
Letter of Credit expires prior to [scheduled
end of Term];
under the Lease between Applicant, as Tenant, and Beneficiary, as
Landlord, dated as of ______________, 2006, Applicant has failed
to
provide a renewal or replacement of this letter of credit, upon the
terms
set forth in Section 5.7 of the Lease, as amended, within 60 days
prior to
the expiration of this letter of credit; Beneficiary has given Applicant
15 days Notice, which the Beneficiary certifies was delivered in
accordance with the notice provisions of the Lease, to cure such
failure
and Applicant has failed to do so within such time;
or
|
b. |
Applicant
has committed an Event of Default under the Lease; Beneficiary has
given
Applicant any applicable notice and opportunity to cure such Event
of
Default required to be given pursuant to Section 21 of the Lease;
and such
Default or Defaults have remained uncured after such Notice; and
accordingly an Event of Default exists under the
Lease.
|
2. |
The
original of this Letter of Credit.
|
3. |
This
Letter of Credit sets forth in full the terms of our undertaking
to you.
Such undertaking shall not in any way be modified, amended or amplified
by
reference to any document or instrument referred or related to herein
and
any such reference shall not be deemed to incorporate herein by reference
any such document or instrument.
|
4. |
The
original of this Letter of Credit must be presented to us with any
drawings hereunder for our endorsement of any payments affected by
us.
|
5. |
If
cancellation of this Letter of Credit is required before the expiration
date stated herein, the original of this Letter of Credit must be
returned
to us with the Beneficiary's letter requesting
cancellation.
|
34
Exhibit
B
Cleaning
Specifications
35
[CLEANING
SPECIFICATIONS INTENTIONALLY OMITTED]
36