Exhibit 4(26)
AGREEMENT OF LEASE
between
RBM CHERRY ROAD PARTNERS
Landlord
and
XXXXXX'X OPERATING COMPANY, INC.
Tenant
Dated: October 25, 1999
Premises:
Office Building #2
0000 Xxxxxx Xxxx
Xxxxxxx, Xxxxxxxxx 00000
TABLE OF CONTENTS
Page
REFERENCE PAGE............................................................... 6
ARTICLE I
GLOSSARY..................................................................... 7
ARTICLE II
DEMISE, PREMISES, TERM, RENT................................................. 14
ARTICLE III
ESCALATION................................................................... 17
ARTICLE IV
USE AND OCCUPANCY............................................................ 26
ARTICLE V
ALTERATIONS.................................................................. 28
ARTICLE VI
REPAIRS...................................................................... 32
ARTICLE VII
CONNECTING CORRIDORS......................................................... 34
ARTICLE VIII
REQUIREMENTS OF LAW.......................................................... 35
ARTICLE IX
SUBORDINATION................................................................ 37
ARTICLE X
RULES AND REGULATIONS........................................................ 40
ARTICLE XI
INSURANCE, PROPERTY LOSS OR DAMAGE, REIMBURSEMENT............................ 41
ARTICLE XII
DESTRUCTION BY FIRE OR OTHER CAUSE........................................... 44
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ARTICLE XIII
EMINENT DOMAIN............................................................... 46
ARTICLE XIV
ASSIGNMENT, SUBLETTING, MORTGAGE, ETC........................................ 48
ARTICLE XV
ACCESS TO PREMISES........................................................... 52
ARTICLE XVI
CERTIFICATE OF OCCUPANCY..................................................... 53
ARTICLE XVII
DEFAULT...................................................................... 53
ARTICLE XVIII
REMEDIES AND DAMAGES......................................................... 57
ARTICLE XIX
FEES AND EXPENSES............................................................ 60
ARTICLE XX
NO REPRESENTATIONS BY LANDLORD............................................... 60
ARTICLE XXI
END OF TERM.................................................................. 61
ARTICLE XXII
POSSESSION................................................................... 62
ARTICLE XXIII
NO WAIVER.................................................................... 62
ARTICLE XXIV
WAIVER OF TRIAL BY JURY...................................................... 63
ARTICLE XXV
INABILITY TO PERFORM......................................................... 63
ARTICLE XXVI
BILLS AND NOTICES............................................................ 64
ARTICLE XXVII
SERVICES AND EQUIPMENT....................................................... 65
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ARTICLE XXVIII
[RESERVED]................................................................... 67
ARTICLE XXIX
[RESERVED]................................................................... 68
ARTICLE XXX
SIGNS........................................................................ 68
ARTICLE XXXI
BROKER....................................................................... 68
ARTICLE XXXII
INDEMNITY.................................................................... 69
ARTICLE XXXIII
[RESERVED]................................................................... 71
ARTICLE XXXIV
[RESERVED]................................................................... 71
ARTICLE XXXV
[RESERVED]................................................................... 71
ARTICLE XXXVI
COVENANT OF QUIET ENJOYMENT.................................................. 71
ARTICLE XXXVII
MISCELLANEOUS................................................................ 71
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EXHIBITS:
Exhibit A Legal Description.................................................A-1
Exhibit B Building and Building No. 1.......................................B-1
Exhibit C Rules and Regulations.............................................C-1
Exhibit D Cleaning Specifications...........................................D-1
Exhibit E Rating Level Multiplier...........................................E-1
Exhibit F [RESERVED]........................................................F-1
Exhibit G Tenant Design and Construction Standards..........................G-1
Exhibit H First American Subordination, Non-Disturbance and
Attornment Agreement........................................H-1
Exhibit I Memphis and Shelby County Land Use
Control Board - Staff Report #16
Correspondence Item, Case No.: P.D.
93-322, L.U.C.B. Meeting October 14, 1999...................I-1
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AGREEMENT OF LEASE
AGREEMENT OF LEASE, made as of the 25th day of October, 1999, between
RBM CHERRY ROAD PARTNERS, a Tennessee general partnership, or its assigns,
having an address at 0000 Xxxxxx Xxxx Xxxxx, Xxxxxxx, Xxxxxxxxx 00000, as
Landlord, and XXXXXX'X OPERATING COMPANY, INC., a Delaware corporation, having
an address at 0000 Xxxxxx Xxxx, Xxxxxxx, Xxxxxxxxx 00000, as Tenant.
REFERENCE PAGE
In addition to other terms elsewhere defined in this Lease, the
following terms whenever used in this Lease shall have the meanings set forth in
this Reference Page.
(1) Premises: Floors one (1) through two (2)
of the Building, shown hatched
on the site plan attached hereto
as Exhibit "B," excluding,
however, any portions thereof
which are defined as Common
Area(s).
(2) Commencement Date: October 25, 1999
(3) Fixed Expiration Date: April 30, 2012
(4) Fixed Rent: (a) $1,087,940.00 per annum
($90,661.66 per month) from the
Commencement Date through
October 31, 2004;
(b) $1,202,173.70 per annum
($100,181.14 per month) from
November 1, 2004 through the
Fixed Expiration Date, in each
case, as adjusted pursuant to
Section 2.6 of this Lease.
(5) Fixed Rent Adjustment Factor: $18,321.52
(6) Tenant's Share: Forty-seven and nine-tenths
percent (47.9%).
(7) Base Tax Factor: The Taxes applicable to the
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Real Property equal to
$221,848.00.
(8) Base Operating Factor: The Operating Expenses
applicable to the Real Property
equal to $583,835.00.
(9) Permitted Use: Executive and administrative
offices and operational
activities related to data
processing and information
technology, and for no other use
or purpose.
(10) Broker(s): CB Xxxxxxx Xxxxx Memphis, LLC
(11) Security Deposit: NONE
(12) Landlord's Contribution: NONE
W I T N E S S E T H:
The parties hereto, for themselves, their legal representatives,
successors and assigns, hereby agree as follows:
ARTICLE I
GLOSSARY
The following terms shall have the meanings indicated below:
"Additional Rent" shall have the meaning set forth in Section 2.2.
"Adjacent Property" shall mean the real property south of and adjacent
to the Land, consisting of approximately nineteen and ninety-two-thousandths
(19.092) acres, being purchased by Landlord at or about the date of this Lease,
together with the improvements thereon. The Adjacent Property is described as
Parcel I in the legal description attached hereto as Exhibit "A," and
incorporated herein by reference.
"Alterations" shall mean alterations, decorations, installations,
repairs, improvements, additions, replacements or other physical changes in or
about the Premises; provided, however, that the term "Alterations" shall exclude
those made by
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Landlord, if any, in accordance with any provisions of this Lease in order to
prepare the Premises for Tenant's initial occupancy.
"Applicable Rate" shall mean the lesser of (x) three percentage points
above the then current Base Rate, and (y) the maximum rate permitted by
applicable law.
"ASHRAE" shall mean the American Society of Heating, Refrigeration and
Air-Conditioning Engineers.
"Bankruptcy Code" shall mean 11 U.S.C. Section 101 ET SEQ., or any
statute, federal or state, of similar nature and purpose.
"Base Rate" shall mean the rate of interest publicly announced from
time to time by Citibank, N.A., or its successor, as its "base rate" (or such
other term as may be used by Citibank, N.A., from time to time, for the rate
presently referred to as its "base rate").
"Building" shall mean that certain two (2) story office building
located on the Land and having an address of 0000 Xxxxxx Xxxx, Xxxxxxx,
Xxxxxxxxx 00000, and all of the equipment and other improvements and
appurtenances related thereto of every kind and description now located or
hereafter erected, constructed or placed upon the Land and any and all
alterations, renewals, and replacements thereof, additions thereto and
substitutions therefor. The Building is located as shown on Exhibit "B" attached
hereto.
"Building No. 1" shall mean that certain three (3) story office
building located on the Land and having an address of 0000 Xxxxxx Xxxx, Xxxxxxx,
Xxxxxxxxx 00000, and all of the equipment and other improvements and
appurtenances related thereto of every kind and description now located or
hereafter erected, constructed or placed upon the Land and any and all
alterations, renewals, and replacements thereof, additions thereto and
substitutions therefor. Building No. 1 is located as shown on Exhibit "B"
attached hereto.
"Building Standard Condition" shall mean the condition of the Building
as of the date of this Lease (reasonable wear and tear excepted), plus any
Alterations approved by Landlord, except to the extent Landlord's approval is
conditioned upon Tenant's removal of the approved Alteration prior to the
Expiration Date.
"Building Systems" shall mean the base building mechanical, electrical,
sanitary, heating, air conditioning, ventilating,
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elevator, plumbing, life-safety and other service systems of the Building but
shall not include the Security System or installations made by Tenant after the
date of this Lease. For purposes of calculating Operating Expenses, the term
"Building Systems" shall include the base building mechanical, electrical,
sanitary, heating, air conditioning, ventilating, elevator, plumbing,
life-safety and other service systems of Building No. 1, but shall not include
the Security System or installations made by Tenant after the date of this
Lease.
"Business Days" shall mean all days, excluding Saturdays, Sundays and
all days observed as holidays by the State of Tennessee or the federal
government.
"Common Area" shall mean any and all portions of the Land and the
improvements thereon not part of the Building or Building No. 1. Common Area
includes all landscaping, fountains and related water works, walkways,
sidewalks, parking lots, parking garages, parking decks, loading platforms,
driveways, trash removal facilities, mechanical, electrical and utility rooms
and service areas on the Land, regardless of whether they are part of the
Building or Building No. 1.
"Control" shall have the meaning set forth in Section 14.2.
"Deficiency" shall have the meaning set forth in Section 18.2.
"Escalation Rent" shall mean payments required to be made by Tenant
pursuant to Article 3.
"Event of Default" shall have the meaning set forth in Section 17.1.
"Expiration Date" shall mean the Fixed Expiration Date or such earlier
or later date on which the Term sooner or later ends pursuant to any of the
terms, conditions or covenants of this Lease (including, but not limited to, the
terms and provisions of Section 2.7 hereof) or pursuant to law.
"Fixed Rent Adjustment Factor" shall have the meaning set out on the
Reference Page.
"Government Authority (Authorities)" shall mean the United States of
America, the State of Tennessee, the County of Shelby, the City of Memphis, any
political subdivision thereof and any agency, department, commission, board,
bureau or instrumentality
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of any of the foregoing, now existing or hereafter created, having jurisdiction
over the Real Property or any portion thereof.
"HVAC" shall mean heat, ventilation and air conditioning.
"HVAC System" shall mean the Building Systems providing HVAC.
"Hazardous Materials" shall have the meaning set forth in Section 8.2.
"HET" shall mean Xxxxxx'x Entertainment, Inc., a Delaware corporation,
and any affiliated or related company or subsidiary whose financial information
is required by GAAP to be reported on Xxxxxx'x Entertainment Company, Inc.'s
consolidated financial statements.
"Land" shall mean the land containing approximately six and four
hundred five-thousandths (6.405) acres of real estate located in Shelby County,
Tennessee, and more particularly described as Parcel II in Exhibit "A."
"Landlord" on the date as of which this Lease is made, shall mean RBM
Venture Company, but thereafter, "Landlord" shall mean only the fee owner of the
Real Property.
"Landlord Indemnitees" shall mean Landlord, its trustees, partners,
shareholders, officers, directors, employees, agents and contractors and the
Manager (and the partners, shareholders, officers, directors and employees of
Landlord's agents and contractors and of the Manager).
"Landlord's Operating Statement" shall mean a statement containing a
computation of Escalation Rent due pursuant to the provisions of Section 3.3
furnished by Landlord to Tenant.
"Landlord's Statement" shall mean either a Landlord's Operating
Statement or a Landlord's Tax Statement.
"Landlord's Tax Statement" shall mean a statement containing a
computation of Escalation Rent due pursuant to the provisions of Section 3.2
furnished by Landlord to Tenant.
"Leveraged Transaction" shall mean any transaction entered into by HET
whereby HET (a) uses debt or a financing source having characteristics of debt
to complete the transaction, or
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(b) as a result of the transaction, HET assumes or becomes liable for debt or
other obligations characteristic of debt which were originally the obligations
of the other party(ies) to the transaction.
"Manager" shall mean any person or entity with which Landlord from time
to time contracts for the management of the Building and/or Building No. 1.
"Mortgage(s)" shall mean any trust deed, trust indenture or mortgage
which may now or hereafter affect the Real Property, the Building, and all
renewals, extensions, supplements, amendments, modifications, consolidations and
replacements thereof or thereto, substitutions therefor, and advances made
thereunder.
"Mortgagee(s)" shall mean any trustee under or mortgagee or holder of a
Mortgage.
"Notice(s)" shall have the meaning set forth in Section 26.1.
"Office Use" shall mean those uses which are included in the
computation of Office Square Footage as such term is used in the Restrictive
Covenants.
"Operating Expenses" shall have the meaning set forth in Section 3.1.
"Operating Hours" shall mean 7:00 a.m. to 7:00 p.m. on Business Days.
"Operating Year" shall mean each calendar year that includes any part
of the Term.
"Parties" shall have the meaning set forth in Section 37.2.
"Person or Person(s)" shall mean any natural person or persons, a
partnership, a corporation, a limited liability company, a limited liability
partnership and any other form of business or legal association or entity.
"Persons Within Landlord's Control" shall mean and include Landlord,
all of Landlord's respective principals, officers, agents, contractors,
servants, employees, licensees and invitees.
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"Persons Within Tenant's Control" shall mean and include Tenant, all of
Tenant's respective principals, officers, agents, contractors, servants,
employees, licensees and invitees.
"Rating Level Multiplier" shall have the meaning set out in Exhibit "E"
hereto.
"Real Property" shall mean the Building, Building No. 1 and the Land.
"Rental" shall mean and be deemed to include Fixed Rent, Additional
Rent and any other sums payable by Tenant hereunder.
"Requirements" shall mean (i) all present and future laws, rules,
ordinances, regulations, statutes, requirements, codes and executive orders,
extraordinary as well as ordinary, retroactive and prospective, of all
Governmental Authorities now existing or hereafter created, and of any
applicable fire rating bureau, or other body exercising similar functions,
affecting the Real Property, or any street, avenue or sidewalk comprising a part
or in front thereof or any vault in or under the same, or requiring removal of
any encroachment, or affecting the maintenance, use or occupation of the Real
Property, (ii) all requirements, obligations and conditions of all instruments
of record on the date of this Lease including, without limitation, the
Restrictive Covenants, and (iii) all requirements, obligations and conditions
imposed by the carrier of Landlord's hazard insurance policy for the Building.
"Restrictive Covenants" shall mean Final Plat P.D. 93-322, Phase I
Xxxxxx'x Corporate Headquarters P.D., recorded at Plat Book 155, Page 8, in the
Register's Office of Shelby County, Tennessee, as amended in accordance with the
decision of the Memphis and Shelby County Land Use Control Board on October 14,
1999, pursuant to Staff Report #16 Correspondence Item, a copy of which is
attached hereto as Exhibit "I"; and Agreement dated January 26, 1984 between
Audubon Park Community Association and Holiday Inns, Inc. recorded at Instrument
No. U9-9849, as amended at Instrument Nos. V8-8105 and BE 1706, in said
Register's Office, for so long as said Agreement remains in effect.
"Rules and Regulations" shall mean the rules and regulations annexed
hereto as Exhibit "C," and such other and further reasonable rules and
regulations as Landlord and Landlord's agents may from time to time adopt, on
notice to Tenant to be given in accordance with the terms of this Lease.
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"Security System" shall mean the keypad security system in use in the
Building and Building No. 1 and located at various locations on the Real
Property at the date of this Lease as modified from time to time.
"Sublease Additional Rent" shall have the meaning set forth in Section
14.4.
"Taxes" shall have the meaning set forth in Section 3.1.
"Tax Year" shall mean each period of twelve (12) months, commencing on
the first day of January of each year, that includes any part of the Term, or
such other period of twelve (12) months as may be duly adopted as the fiscal
year for real estate tax purposes by the City of Memphis, and Shelby County.
"Tenant," on the date as of which this Lease is made, shall mean the
Tenant named in this Lease, but thereafter "Tenant" shall mean only the tenant
under this Lease at the time in question; provided, however, that the Tenant
named in this Lease and any successor tenant hereunder shall not be released
from liability hereunder in the event of any assignment of this Lease.
"Tenant Indemnitees" shall mean Tenant, its trustees, partners,
shareholders, officers, directors, employees, agents and contractors.
"Tenant's Operating Payment" shall have the meaning set forth in
Section 3.3.
"Tenant's Projected Operating Share" shall have the meaning set forth
in Section 3.3.
"Tenant's Property" shall mean Tenant's movable fixtures and movable
partitions, and other equipment, furniture, furnishings and other movable items
of personal property, but excluding all FF&E acquired by Landlord under that
certain Purchase and Sale Agreement by and between Tenant, as seller, and
Landlord, as purchaser, dated September 15, 1999 (the term "FF&E" as used in
this Lease shall have the meaning ascribed thereto in the aforedescribed
Purchase Agreement).
"Tenant's Tax Payment" shall have the meaning set forth in Section 3.2.
"Term" shall mean the period from the Commencement Date through the
Expiration Date.
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"Unavoidable Delays" shall have the meaning set forth in Article 25.
ARTICLE II
DEMISE, PREMISES, TERM, RENT
Section 2.1. Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord the Premises for the Term to commence on the Commencement Date and
to end on the Fixed Expiration Date, unless earlier terminated or extended as
provided herein.
Section 2.2. Commencing upon the Commencement Date, Tenant shall pay to
Landlord, in lawful money of the United States of America, without notice or
demand, by good and sufficient check drawn to Landlord's order on a bank or
trust company with an office in the United States of America, at the office of
Landlord or at such other place as Landlord may designate from time to time, the
following:
(a) the Fixed Rent, at the annual fixed rental rate set forth
in the Reference Page, which shall be payable in equal monthly
installments of Fixed Rent in advance on the first day of each and
every calendar month during the Term, except that the first monthly
installment of Fixed Rent shall be payable by Tenant upon execution and
delivery of this Lease; and
(b) additional rent ("Additional Rent") consisting of all
other sums of money (including, without limitation, Escalation Rent) as
shall become due from and be payable by Tenant hereunder (for default
in the payment of which Landlord shall have the same remedies as for a
default in the payment of Fixed Rent).
Section 2.3. If the Commencement Date is other than the first day of a
calendar month, or the Expiration Date is other than the last day of a calendar
month, Rental for such month shall be prorated on a per diem basis.
Section 2.4. [RESERVED]
Section 2.5. Tenant shall pay the Fixed Rent and Additional Rent when
due without abatement, deduction, counterclaim, setoff or defense for any reason
whatsoever, except said abatement as may be occasioned by the occurrence of any
14
event permitting an abatement of Fixed Rent and Escalation Rent as specifically
set forth in this Lease.
Section 2.6 Notwithstanding anything to the contrary set forth in this
Lease, in the event that HET's corporate credit rating issued by Standard &
Poor's falls below "BBB" [ignoring for purposes hereof pluses (+) and minuses
(-) included in such ratings] as a result of one or more Leveraged Transactions,
then for such period of time as such rating remains below "BBB," Fixed Rent per
annum shall be increased by an amount equal to the product of the Fixed Rent
Adjustment Factor multiplied by the Rating Level Multiplier (and Fixed Rent per
month shall be adjusted commensurately). Changes in the Fixed Rent resulting
from increases or decreases in HET's Corporate Credit Rating shall become
effective as of the official change date of the Standard & Poor's rating, and
the adjustments in Fixed Rent shall be prorated to take into account the number
of days in the month during which such rating was at each level. In no event
shall the Fixed Rent be adjusted to an amount less than that set out in the
Reference Page of this Lease.
Section 2.7. Provided Tenant is not in default under this Lease at the
time the option may be exercised, Landlord grants Tenant the option to renew
this Lease with respect to all of the Premises for three (3) additional terms of
five (5) years each. Each option shall be exercised by Tenant delivering written
notice to Landlord at least six (6) months prior to the Fixed Expiration Date,
as extended by any previously exercised option.
(a) The renewal rental rates for each option period shall be the Market
Rental Rate (as hereinafter defined)(such rate being hereinafter referred to as
the "Renewal Rental Rate"). The Market Rental Rate is the rental rate then being
charged by landlords (including Landlord) in the Memphis area on new leases to
tenants of a similar credit quality to Tenant for space of similar quality and
size as the Premises, taking into account, all relevant factors, including
without limitation, age, extent and quality of tenant improvements, leasing
commissions, length of term, amenities of the Building and the Real Property and
the location and/or floor height and definition of usable area, reasonable
projections of Fixed Rent, Additional Rent, Escalation Rent and allowances or
concessions that have been granted such as abatements, lease assumptions and
leasehold improvement and moving allowances.
(b) Within ten (10) days after Tenant's exercise of each of the options
to renew, Landlord shall notify Tenant in writing of
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the Renewal Rental Rate for that renewal period as determined by the above
formula. Tenant shall have ten (10) days from the receipt of Landlord's notice
to either accept or dispute Landlord's determination of the Renewal Rental Rate.
In the event that Tenant disputes Landlord's determination, Tenant shall so
notify Landlord and advise Landlord of Tenant's determination of the Renewal
Rental Rate for the option period as determined by the above formula. If
Landlord and Tenant cannot agree upon the Renewal Rental Rate within thirty (30)
days of Tenant's original notice of its intent to exercise its renewal option,
the following "Dispute Resolution Mechanisms" shall be utilized:
(c) The parties, within ten (10) days thereafter, shall each select an
MAI-certified commercial real estate appraiser with a minimum of ten (10) years
experience in the Memphis market (each party to pay the cost of the appraiser
selected by it). Each appraiser, within thirty (30) days after selection, shall
present to the other their determination of the Market Rental Rate. If the
Market Rental Rates determined by each appraiser are within ten percent (10%) of
each other, then the Renewal Rental Rate for the option period shall be the
average of the two (2) Market Rental Rates as determined by the parties'
appraisers. If the appraisers' determinations are greater than ten percent (10%)
apart, then the appraisers shall jointly select, within ten (10) days
thereafter, a third MAI-certified commercial real estate appraiser with a
minimum of ten (10) years experience in the Memphis market, with the cost of the
third appraiser to be divided equally between Landlord and Tenant. Within thirty
(30) days after appointment, the third appraiser shall announce his/her
determination of the Market Rental Rate. The Renewal Rental Rate shall be equal
to the average of the Market Rental Rate determined by the two appraisers whose
determinations are numerically closest to each other (disregarding the
determination of the appraiser whose determination is further apart from either
of the others). Notwithstanding the foregoing, in the event that the third
appraiser's determination is exactly in the middle of the first two appraisers'
determinations, then the third appraiser's determination shall be the Renewal
Rental Rate.
(d) Landlord and Tenant shall execute an amendment to this Lease within
sixty (60) days after the determination of the Renewal Rental Rate, which
amendment shall set forth the extended Term and all other terms and conditions
applicable to the renewal period, and shall establish the Renewal Rental Rate as
the annual Fixed Rent for the renewal period.
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(e) Except for the Renewal Rental Rate as set forth above, this Lease,
and all of the terms and conditions hereof, shall remain in full force and
effect throughout the entire renewal term.
ARTICLE III
ESCALATION
Section 3.1. For the purposes of this Article 3, the following terms
shall have the meanings set forth below:
(a) "Operating Expenses" shall mean the aggregate of all
costs, expenses and disbursements (and taxes thereon, if any), of every
kind and nature, paid or incurred by Landlord or on behalf of Landlord
with respect to the ownership, operation, cleaning, repair, safety,
replacement, management, security and maintenance of the Real Property,
including the Building Systems and Common Areas, and with respect to
the services provided to tenants, including, without limitation: (i)
salaries, wages and bonuses paid to, and the cost of any
hospitalization, medical, surgical, union and general welfare benefits
(including group life insurance), any pension, retirement or life
insurance plans and other benefits or similar expenses relating to
employees of Landlord and/or of Manager (on- and off-site) engaged in
the operation, cleaning, repair, safety, replacement, management,
security or maintenance of the Real Property and the Building Systems
or in providing services to tenants; (ii) social security, unemployment
and other payroll taxes, the cost of providing disability and worker's
compensation coverage imposed by any Requirement, union contract or
otherwise with respect to said employees; (iii) the cost of gas, oil,
steam, water, sewer rental, HVAC, water treatment, and other utilities
furnished to the Building and Building No. 1 and utility taxes; (iv)
the expenses incurred for casualty, rent, liability, fidelity, plate
glass and any other insurance; (v) the cost of repairs, maintenance and
painting, including the cost of acquiring or renting all supplies,
tools, materials and equipment used in operating or repairing the
Building and Building No. 1 including, without limitation, their roofs;
(vi) expenditures, whether by purchase or lease, for capital
improvements and capital equipment (except for roof replacement and
repairs to structural components of the Building or Building No. 1
which were not necessitated by the acts or omissions of Tenant) to the
extent (but only to the extent) that such
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capital expenditures reduce or result in savings in Operating Expenses,
the amortized cost of such capital expenditures (or portion thereof
resulting in reduction or savings in Operating Expenses) to be included
in Operating Expenses for the Operating Year in which such costs are
incurred and every subsequent Operating Year, amortized on a
straight-line basis over the accounting life of the capital
improvement, with interest calculated at a per annum rate equal to
eight percent (8%); (vii) operation, repair and replacement of building
management systems; (viii) the cost or rental of all supplies, tools,
materials and equipment; (ix) the cost of uniforms, work clothes and
dry cleaning; (x) the cost of window cleaning, repair, resealing and
replacement, janitorial, pest control, concierge, guard, watchman or
other security personnel, service or system, fire extinguishers and
sprinklers, power generators, fences and electronic/motorized gates, if
any; (xi) management fees and expenses; (xii) charges of independent
contractors performing work included within this definition of
Operating Expenses; (xiii) telephone and stationery costs; (xiv) legal,
accounting and other professional fees and disbursements incurred in
connection with the operation and management of the Real Property; (xv)
association fees and dues; (xvi) the cost of seasonal decorations;
(xvii) depreciation of hand tools and other movable equipment used in
the operation, cleaning, repair, safety, management, security or
maintenance of the Building and Building No. 1; (xviii) exterior and
interior landscaping, irrigation and tree care; (xix) all electrical
costs incurred in the operation of the Real Property; (xx) striping,
re-striping, sweeping and repairing parking areas and garages; and
(xxi) waste removal.
Provided, however, that the foregoing costs and expenses shall exclude
or have deducted from them, as the case may be:
(1) amounts received by Landlord through proceeds of
insurance to the extent they are compensation for sums
previously included in Operating Expenses;
(2) cost of repairs or replacements incurred by
reason of fire or other casualty or condemnation to the extent
Landlord is compensated therefor;
(3) Taxes; and
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(4) leasing commissions, rental concessions and lease
buy-outs.
If Landlord leases any item of capital equipment that would otherwise
be included in Operating Expenses, then the rentals and other costs paid with
respect to such leasing shall be included in Operating Expenses for the
Operating Years in which such rentals and costs are incurred.
Notwithstanding anything to the contrary set forth herein, if the
Building and Building No. 1 are not fully occupied during any calendar year of
the Term, Operating Expenses shall be determined as if the Building and Building
No. 1 had been fully occupied during such year, by adding to actual Operating
Expenses an amount equal to those costs which would have been incurred if the
Building and Building No. 1 had been fully occupied. For the purposes of this
Lease, "fully occupied" shall mean occupancy of ninety-five percent (95%) of the
usable square feet in the Building and Building No. 1 with Landlord providing
all services.
Notwithstanding anything to the contrary set forth herein, in the event
that (a) utilities serving the Real Property are not separately metered or (b)
any maintenance of the Real Property is covered by a contract which also covers
the Adjacent Property or any portion thereof, then the Landlord shall make a
fair and equitable allocation of the costs between the Real Property and the
Adjacent Property receiving utility service and/or being covered by the
maintenance contracts, and such fair and equitable amount shall be included in
Operating Expenses under this Lease.
(b) "Taxes" shall mean the aggregate amount of real estate
taxes and any general or special assessments (exclusive of penalties
and interest thereon) imposed upon the Real Property (including,
without limitation, (i) assessments made upon or with respect to any
"air" and "development" rights now or hereafter appurtenant to or
affecting the Real Property, (ii) any fee, tax or charge imposed by any
Government Authority for any vaults, vault space or other space within
or outside the boundaries of the Real Property, (iii) any assessments
levied after the date of this Lease for public benefits to the Real
Property or the Building or Building No. 1); and (iv) franchise taxes;
provided that if, because of any change in the taxation of real estate,
any other tax or assessment, however denominated (including, without
limitation, any profit, sales, use, occupancy, gross receipts or rental
tax) is imposed upon Landlord or the owner of the Real Property or
19
the Building or Building No. 1, or the occupancy, rents or income
therefrom, in substitution for any of the foregoing Taxes or for an
increase in any of the foregoing Taxes, such other tax or assessment
shall be deemed part of Taxes computed as if Landlord's sole asset were
the Real Property. With respect to any Tax Year, all expenses,
including attorneys' fees and disbursements and experts' and other
witnesses' fees, incurred in contesting the validity or amount of any
Taxes or in obtaining a refund of Taxes shall be considered as part of
the Taxes for such Tax Year. Anything contained herein to the contrary
notwithstanding, Taxes shall not be deemed to include (a) any federal
taxes on Landlord's income, (b) estate or inheritance taxes, or (c) any
similar taxes imposed on Landlord, unless such taxes are levied,
assessed or imposed as a substitute for the whole or any part of, or as
a substitute for an increase in, the taxes, assessments, levies, fees,
charges and impositions that now constitute Taxes. In the event that
the Real Property and the Adjacent Property are assessed together for
ad valorem taxes, then for so long as there are no additions or
expansions which result in increase in size of the exterior walls of
the buildings on the Real Property or Adjacent Property, no additional
buildings constructed on the Real Property or Adjacent Property, and no
additional parking facilities or structures constructed on the Real
Property or Adjacent Property (collectively, the "Additional Taxable
Improvements"), the parties stipulate and agree that eighty-nine
percent (89%) of the ad valorem real estate taxes imposed on the Real
Property and Adjacent Property shall be "Taxes" within the meaning of
this Lease, attributable to the Real Property. Upon the construction of
Additional Taxable Improvements on the Real Property or Adjacent
Property (provided that they are assessed together), the parties shall
make an equitable adjustment to the foregoing stipulated percentage to
account for any increase in assessment resulting from such Additional
Taxable Improvements.
Section 3.2. (a) Tenant shall pay as Escalation Rent for each Tax Year,
an amount ("Tenant's Tax Payment") equal to Tenant's Share of the amount by
which the Taxes for such Tax Year are greater than the Base Tax Factor. Tenant's
Tax Payment shall be payable by Tenant to Landlord in twelve (12) equal monthly
installments (subject to the further provisions of this Section 3.2), the first
of which shall be due within ten (10) days after receipt of a Landlord's Tax
Statement, regardless of whether such Landlord's Tax Statement is received prior
to, on or after the
20
first day of such Tax Year and the remaining installments shall be due on the
first day of each month thereafter. If there is any increase in Taxes for any
Tax Year, whether during or after such Tax Year, or if there is any decrease in
the Taxes for any Tax Year during such Tax Year, Landlord shall furnish a
revised Landlord's Tax Statement for any Tax Year affected, and Tenant's Tax
Payment for such Tax Year shall be adjusted and, (a) within ten (10) days after
Tenant's receipt of such revised Landlord's Tax Statement, Tenant shall (with
respect to any increase in Taxes for such Tax Year) pay the appropriate increase
in Tenant's Tax Payment to Landlord, or (b) (with respect to any decrease in
Taxes for such Tax Year) Landlord shall promptly, at its election, either credit
such decrease in Tenant's Tax Payment against the next installment of Rental
payable by Tenant or refund the amount of such decrease by check to the order of
Tenant or, if at the end of the Term, there shall not be any further
installments of Rental remaining against which Landlord can credit any decrease
in Taxes due Tenant, Landlord shall deliver to Tenant Landlord's check in the
amount of the refund due Tenant within thirty (30) days after Landlord's receipt
of any refund. If, during the Term, Taxes are required to be paid (either to the
appropriate taxing authorities or as tax escrow payments to the Lessor or the
Mortgagee), in full or in quarterly or other installments on any other date or
dates than as presently required, then Tenant's Tax Payments shall be
correspondingly accelerated or revised so that Tenant's Tax Payments are due at
least thirty (30) days prior to the date payments are due to the taxing
authorities, the Lessor or the Mortgagee. The benefit of any discount for any
early payment or prepayment of Taxes shall accrue solely to the benefit of
Landlord and Taxes shall be computed without subtracting such discount.
(b) (i) Except as provided in Section 3.2(b)(ii) below, only Landlord
shall be eligible to institute tax reduction or other proceedings to
reduce Taxes. If, after a Landlord's Tax Statement has been sent to
Tenant, a refund of Taxes is actually received by or on behalf of
Landlord, then, promptly after receipt of such refund, Landlord shall
send Tenant a Landlord's Tax Statement adjusting the Taxes for such Tax
Year (taking into account Landlord's expenses therefor) and setting
forth Tenant's Share of such refund, and Tenant shall be entitled to
receive such amount by way of a credit against the Escalation Rent;
provided, however, that Tenant's Share of such refund shall be limited
to the amount of Tenant's Tax Payment, if any, which Tenant had
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theretofore paid to Landlord attributable to increases in Taxes for the
Tax Year to which the refund is applicable.
(ii) In the event Landlord does not contest any increase in ad
valorem Taxes applicable to the Real Property, Tenant, at its sole cost
and expense, shall have the right to contest any such increase and
shall keep Landlord informed of the steps being taken. Landlord agrees
to fully cooperate with Tenant in prosecuting any appeal taken by
Tenant as a result of such increase, at no cost or expense to Landlord.
During the pendency of any such contest, Tenant shall take all actions
required to prevent the execution/enforcement by the taxing authorities
of any rights against Landlord and/or the Real Property. All Escalation
Rent charged by Landlord shall be paid by Tenant during the pendency of
any such action. If, after a Landlord's Tax Statement has been sent to
Tenant, a refund of Taxes is actually received as a result of a contest
made by Tenant, then, promptly after receipt of such refund, Landlord
shall send Tenant a Landlord's Tax Statement adjusting the Taxes for
such Tax Year and setting forth Tenant's Share of such refund, and
Tenant shall be entitled to receive such amount by way of a credit
against the Escalation Rent; provided, however, that Tenant's Share of
such refund shall be limited to the amount of Tenant's Tax Payment, if
any, which Tenant had theretofore paid to Landlord attributable to
increases in Taxes for the Tax Year to which the refund is applicable.
(c) Tenant's Tax Payment and any credits with respect thereto as
provided in this Section 3.2 shall be made as provided in this Section 3.2
regardless of the fact that Tenant may be exempt, in whole or in part, from the
payment of any taxes by reason of Tenant's tax exempt status or for any other
reason whatsoever.
(d) Tenant shall pay to Landlord within thirty (30) days after demand
as Additional Rent any occupancy tax or rent tax now in effect or hereafter
enacted, if payable by Landlord in the first instance or hereafter required to
be paid by Landlord.
(e) Each Landlord's Tax Statement furnished by Landlord with respect to
Tenant's Tax Payment shall be accompanied by a copy of the real estate tax xxxx
or bills for the Tax Year referred to therein, but Landlord shall have no
obligation to deliver more than one such copy of the real estate tax xxxx or
bills in respect of any Tax Year, and Landlord's failure to
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deliver such copy shall not affect Tenant's obligations as to amount or due
date(s) thereof.
(f) If the Base Tax Factor subsequently shall be adjusted, corrected or
reduced whether as the result of protest, by means of agreement or as the result
of legal proceedings, the Base Tax Factor for the purpose of computing any
Additional Rent Payable pursuant to this Article shall be the Base Tax Factor as
so adjusted, corrected or reduced. Until the Base Tax is so adjusted, corrected
or reduced, if ever, Tenant shall pay Additional Rent hereunder based upon the
unadjusted, uncorrected or unreduced Base Tax Factor and upon such adjustment,
correction or reduction occurring, any Additional Rent payable by Tenant prior
to the date of such occurrence shall be recomputed and Tenant shall pay to
Landlord any Escalation Rent found due by such recomputation within thirty (30)
days after being billed therefor (which xxxx shall set forth in reasonable
detail the pertinent data causing and comprising such recomputation).
(g) If the Commencement Date or the Expiration Date occurs on a date
other than January 1 or December 31, respectively, any Tenant's Tax Payment
under this Article 3 for the Tax Year in which such Commencement Date or
Expiration Date occurs shall be apportioned in that percentage which the number
of days in the period from the Commencement Date to December 31 or from January
1 to the Expiration Date, as the case may be, both inclusive, bears to the total
number of days in such Tax Year. If the Commencement Date or the Expiration Date
occurs on a date other than January 1 or December 31, respectively, any Tenant's
Operating Payment under this Article 3 for the Operating Year in which such
Commencement Date or Expiration Date occurs shall be apportioned in that
percentage which the number of days in the period from the Commencement Date to
December 31 or from January 1 to the Expiration Date, as the case may be, both
inclusive, bears to the total number of days in such Operating Year. In the
event of a termination of this Lease, any Escalation Rent under this Article 3
shall be paid or adjusted within thirty (30) days after submission of a
Landlord's Statement. The rights and obligations of Landlord and Tenant under
the provisions of Article 3 with respect to any Escalation Rent shall survive
for a period of six (6) months after the end of the calendar year in which the
Expiration Date falls.
Section 3.3. (a) Tenant shall pay as Escalation Rent for each Operating
Year an amount ("Tenant's Operating Payment") equal to Tenant's Share of the
amount by which Operating Expenses
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for such Operating Year are greater than the Base Operating Factor.
(b) Landlord shall furnish to Tenant, with respect to each Operating
Year, a Landlord's Operating Statement setting forth Landlord's estimate of
Tenant's Operating Payment for such Operating Year ("Tenant's Projected
Operating Share"). Tenant shall pay to Landlord on the first day of each month
during such Operating Year, as Escalation Rent, an amount equal to one-twelfth
(1/12) of Tenant's Projected Operating Share for such Operating Year. If,
however, Landlord furnishes any such Landlord's Operating Statement for an
Operating Year subsequent to the commencement of such Operating Year, then (a)
until the first day of the month following the month in which such Landlord's
Operating Statement is furnished to Tenant, Tenant shall pay to Landlord on the
first day of each month an amount equal to the monthly sum payable by Tenant to
Landlord under this Section 3.3 in respect of the last month of the preceding
Operating Year; (b) after such Landlord's Operating Statement is furnished to
Tenant or together therewith, Landlord shall give notice to Tenant stating
whether the installments of Tenant's Projected Operating Share previously made
for such Operating Year were greater or less than the installments of Tenant's
Projected Operating Share to be made for such Operating Year in accordance with
such estimate, and (i) if there is a deficiency, Tenant shall pay the amount
thereof within thirty (30) days after demand therefor, or (ii) if there was an
overpayment, Landlord shall credit the amount thereof against subsequent
payments of Rental or, if at the end of the Term there shall not be any further
installments of Rental remaining against which Landlord can credit any such
overpayment due Tenant, Landlord shall deliver to Tenant Landlord's check in the
amount of the refund due Tenant within thirty (30) days after Tenant shall first
be entitled to a credit for the overpayment of Operating Expenses; and (c) on
the first day of the month following the month in which such Landlord's
Operating Statement is furnished to Tenant, and monthly thereafter throughout
the remainder of such Operating Year, Tenant shall pay to Landlord an amount
equal to one-twelfth (1/12) of Tenant's Projected Operating Share shown in such
Landlord's Operating Statement. Landlord shall furnish to Tenant a revised
Landlord's Operating Statement with a new estimate of Tenant's Projected
Operating Share for such Operating Year and, in such case, Tenant's Projected
Operating Share for such Operating Year shall be adjusted and paid or credited,
as the case may be, substantially in the same manner as provided in the
preceding sentence.
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(c) After the end of each Operating Year, Landlord shall furnish to
Tenant a Landlord's Operating Statement for such Operating Year. Each such
year-end Landlord's Operating Statement shall be accompanied by a computation of
Operating Expenses prepared by the Manager or a certified public accountant
designated by Landlord from which Landlord shall make the computation of
Escalation Rent due in respect of Operating Expenses hereunder. In making
computations of Operating Expenses, the certified public accountant or the
Manager may rely on Landlord's reasonable estimates and allocations whenever
said estimates and allocations are needed for this Article 3. If the Landlord's
Operating Statement shows that the sums paid by Tenant under Section 3.3(B)
exceeded Tenant's Operating Payments required to be paid by Tenant for such
Operating Year, Landlord shall credit the amount of such excess against
subsequent payments of Rental or, if at the end of the Term there shall not be
any further installments of Rental remaining against which Landlord can credit
any such overpayments due Tenant, Landlord shall promptly deliver to Tenant
Landlord's check in the amount of the refund due Tenant within thirty (30) days
after Tenant shall first be entitled to a credit for the overpayment of
Operating Expenses; and if the Landlord's Operating Statement for such Operating
Year shows that the sums so paid by Tenant were less than Tenant's Operating
Payment due for such Operating Year, Tenant shall pay the amount of such
deficiency within thirty (30) days after demand therefor.
(d) In addition, Tenant shall pay to the appropriate taxing authority,
as and when due, any and all taxes due with respect to Tenant's personal
property and/or leasehold interest in the Premises.
Section 3.4. Landlord's failure to render any Landlord's Statement with
respect to any Tax Year or Operating Year shall not prejudice Landlord's right
thereafter to render a Landlord's Statement with respect thereto or with respect
to any subsequent Tax Year or Operating Year, as the case may be, nor shall the
rendering of a Landlord's Statement prejudice Landlord's right thereafter to
render a corrected Landlord's Statement for that Tax Year or Operating Year.
Section 3.5. Any Landlord's Statement sent to Tenant shall be
conclusively binding upon Tenant unless, within thirty (30) days after such
Landlord's Statement is sent, Tenant shall send a written notice to Landlord
objecting to such Landlord's Statement and specifying, to the extent reasonably
practicable, the respects in which such Landlord's Statement is disputed. If
25
Tenant shall send such notice with respect to a Landlord's Statement, Tenant may
select and pay an independent certified public accountant or a member of an
independent firm which is engaged in the business of auditing lease escalation
clauses (an "Approved Examiner") provided that such Approved Examiner is not and
has not during the Term been affiliated with, a shareholder in, an officer,
director, partner, or employee of, any Manager during the Term or the Manager
named in this Lease, and such Approved Examiner may examine Landlord's books and
records relating solely to disputed aspects of the Operating Expenses to
determine the accuracy of Landlord's Operating Statement. Tenant recognizes the
confidential nature of Landlord's books and records, and agrees that any
information obtained by an Approved Examiner during any examination shall be
maintained in strict confidence by such Approved Examiner, without revealing
same to any Person except Tenant. If, after such examination, such Approved
Examiner shall dispute such Landlord's Operating Statement, either party may
refer the decision of the issues raised to a reputable independent firm of
certified public accountants, selected by Landlord and approved by Tenant, which
approval shall not be unreasonably withheld or delayed, and the decision of such
accountants shall be conclusively binding upon the parties. The fees and
expenses involved in resolving such dispute shall be borne by Tenant, unless the
final determination is that Landlord's Statement overstated Operating Expenses
by more than five percent (5%), in which case Landlord shall pay the reasonable
fees and expenses involved in resolving the dispute. Notwithstanding the giving
of such notice by Tenant, and pending the resolution of any such dispute, Tenant
shall pay to Landlord when due the amount shown on any such Landlord's
Statement, as provided in this Article 3. Tenant shall pay the amount of any
underpayment to Landlord and Landlord shall refund the amount of any overpayment
to Tenant, within thirty (30) days after resolution of such dispute (and if
Landlord fails to refund such overpayment to Tenant, Tenant shall be entitled to
offset the same against future payments of Additional Rent).
ARTICLE IV
USE AND OCCUPANCY
Section 4.1. Tenant shall use and occupy the Premises for the Permitted
Use and for no other purpose. Tenant and Tenant's use of the Premises shall
comply in all respects with the Restrictive Covenants; and Tenant shall
indemnify Landlord against any loss, cost or damage (including costs of defense
and reasonable attorney fees) arising as a result of the failure of
26
the Tenant or Tenant's use of the Premises to so comply. Tenant covenants and
agrees that in no event and under no circumstances shall the Office Use within
the Building exceed fifty-three thousand one hundred forty-nine (53,149) square
feet unless Landlord and Tenant otherwise agree in a writing signed by them; and
if the Office Use within the Building shall ever exceed said square footage,
Tenant shall diligently take steps to remove area within the Building from
Office Use in order that Tenant shall be in compliance with the foregoing
provisions.
Section 4.2. Tenant shall not use the Premises or any part thereof, or
permit the Premises or any part thereof to be used, (1) for the business of
photographic, multilith or multigraph reproductions or offset printing (other
than those which are ancillary to an otherwise Permitted Use), (2) for an
offthe-street retail commercial banking, thrift institution, loan company, trust
company, depository or safe deposit business accepting deposits from the general
public, (3) for the offthe-street retail sale of travelers checks, money orders,
drafts, foreign exchange or letters of credit or for the receipt of money for
transmission, (4) by the United States government, the state or local
government, or any agency or department of any of the foregoing having or
asserting sovereign immunity, (5) for the preparation, dispensing or consumption
of food or beverages in any manner whatsoever, except for the preparation,
dispensing and consumption of food by Tenant's employees who work in the
Premises and not for the sale of food to any Persons other than such employees,
(6) as an employment agency, day-care facility (other than as a self-operated
facility for use only by Tenant's employees), labor union, school, or vocational
training center (except for the training of employees of Tenant intended to be
employed at the Premises), (7) as a xxxxxx shop, beauty salon or manicure shop,
(8) for product display activities (such as those of a manufacturer's
representative), (9) as offices of any public utility company, (10) for health
care activities, (11) for clerical support services or offices of public
stenographers or typists (other than those which are ancillary to an otherwise
Permitted Use), (12) as reservation or call centers, (13) for retail or
manufacturing use, (14) as studios for radio, television or other media, or (15)
any use which extends the hours of use or operations in the Premises (other than
infrequently or sporadically) beyond the Operating Hours. Furthermore, the
Premises shall not be used for any purpose that would, in Landlord's reasonable
judgment, tend to lower the first-class character of the Building, create
unreasonable or excessive elevator or floor loads, violate the certificate of
occupancy of the Building, materially impair or interfere with
27
any of the Building operations or the proper and economic heating,
air-conditioning, cleaning or any other services of the Building, materially
interfere with the use of the other areas of the Building by any other tenants,
or materially impair the appearance of the Building.
ARTICLE V
ALTERATIONS
Section 5.1. (a) Except as otherwise set out in Section 5.1(f), Tenant
shall not make or permit to be made any Alterations without Landlord's prior
written consent. Reference is made to Exhibit "G" hereto, which contains the
Tenant Design and Construction Standards applicable to the Building, which is
incorporated by reference in this Lease. Landlord reserves the right to make
reasonable changes and additions thereto.
(b) (1) Prior to making any such Alterations, Tenant shall (i) submit
to Landlord two (2) sets of detailed plans and specifications
(including layout, architectural, electrical, mechanical and structural
drawings) that comply with all Requirements for each proposed
Alteration, and Tenant shall not commence any such Alteration without
first obtaining Landlord's approval of such plans and specifications,
which approval shall not be unreasonably withheld or delayed, (ii) at
Tenant's expense, obtain all permits, approvals and certificates
required by any Governmental Authorities, and (iii) furnish to Landlord
duplicate original policies or certificates thereof of worker's
compensation insurance (covering all persons to be employed by Tenant,
and Tenant's contractors and subcontractors, in connection with such
Alteration) and commercial general liability insurance (including
premises operation, bodily injury, personal injury, death, independent
contractors, products and completed operations, broad form contractual
liability and broad form property damage coverages) in such form, with
such companies, for such periods and in such amounts as Landlord may
reasonably approve, naming Landlord and its agents, any Lessor and any
Mortgagee, as additional insureds. Upon completion of such Alteration,
Tenant, at Tenant's expense, shall obtain certificates of final
approval of such Alterations required by any Governmental Authority and
shall furnish Landlord with copies thereof, together with the "as
built" plans and specifications for such Alterations. All Alterations
shall be made and performed in accordance with the plans and
specifications
28
therefor as approved by Landlord, all Requirements, Restrictive
Covenants, and the Rules and Regulations. All materials and equipment
to be incorporated in the Premises as a result of any Alterations shall
be first quality and no such materials or equipment shall be subject to
any lien, encumbrance, chattel mortgage, title retention or security
agreement. In addition, any such Alteration for which the cost of labor
and materials (as estimated by Landlord's architect, engineer or
contractor) is in excess of Seventy-Five Thousand Dollars ($75,000.00),
either individually or in the aggregate with any other Alteration
constructed in any twelve (12) month period, shall be performed only
under the supervision of a licensed architect satisfactory to Landlord.
(2) Landlord reserves the right to disapprove any plans and
specifications in whole or in part, to reserve approval of items shown
thereon pending its review and approval of other plans and
specifications, and to condition its approval upon Tenant making
revisions to the plans and specifications or supplying additional
information; provided, however, that Landlord shall be reasonable in
its exercise of these rights. Additionally, Landlord shall be deemed to
have approved Tenant's plans and specifications if Landlord fails to
respond to Tenant's plans and specifications within fifteen (15) days
of Landlord's receipt thereof. Tenant agrees that any review or
approval by Landlord of any plans and/or specifications with respect to
any Alteration is solely for Landlord's benefit, and without any
representation or warranty whatsoever to Tenant or any other Person
with respect to the adequacy, correctness or sufficiency thereof or
with respect to Requirements, Restrictive Covenants or otherwise.
(c) Alterations shall be performed at Tenant's expense and at such
times and in such manner as Landlord may from time to time reasonably designate,
unless, at the time of the Alterations, Tenant is the only occupant of the
Building and Building No. 1, in which event, Tenant may control the times and
manner (but always in accordance with all Requirements) to perform the
Alterations. All Alterations shall become a part of the Building and shall be
Landlord's property from and after the installation thereof and may not be
removed or changed without Landlord's consent. Notwithstanding the foregoing,
however, Landlord, upon notice given at least sixty (60) days prior to the
Expiration Date or upon such shorter notice as is reasonable under the
circumstances upon the earlier expiration of the Term,
29
may require Tenant to remove any specified Alterations (other than those
comprising part of Building Standard Condition) and to repair and restore in a
good and workmanlike manner to Building Standard Condition (reasonable wear and
tear excepted) any damage to the Premises or the Building caused by such
removal. All Tenant's Property shall remain the property of Tenant and, unless
Landlord and Tenant shall agree otherwise, on or before the Expiration Date
shall, at Tenant's cost, be removed from the Premises by Tenant, and Tenant
shall repair and restore in a good and workmanlike manner to Building Standard
Condition (reasonable wear and tear excepted) any damage to the Premises or the
Building caused by such removal. The provisions of this Section 5.1(c) shall
survive the expiration or earlier termination of this Lease.
(d) (1) All Alterations shall be performed, at Tenant's sole cost and
expense, by contractors, subcontractors or mechanics approved by
Landlord in Landlord's reasonable discretion.
(2) Notwithstanding the foregoing, with respect to any
Alteration affecting any Building Systems, (i) Tenant, if required by
Landlord, shall employ Landlord's or the Manager's designated
contractor, and (ii) the Alteration shall, if required by Landlord, at
Tenant's expense, be designed by either Landlord's or the Manager's
engineer.
(e) (1) Any mechanic's lien filed against the Premises or the Real
Property for work claimed to have been done for, or materials claimed
to have been furnished to, Tenant shall be canceled or discharged by
Tenant, at Tenant's expense, within twenty (20) days after such lien
shall be filed, by payment or filing of the bond required by law, and
Tenant shall indemnify and hold Landlord harmless from and against any
and all costs, expenses, claims, losses or damages resulting therefrom
by reason thereof.
(2) If Tenant shall fail to discharge such mechanic's lien
within the aforesaid period, then, in addition to any other right or
remedy of Landlord, Landlord may, but shall not be obligated to,
discharge the same either by paying the amount claimed to be due or by
procuring the discharge of such lien by deposit in court or bonding,
and in any such event, Landlord shall be entitled, if Landlord so
elects, to compel the prosecution of an action for the foreclosure of
such mechanic's lien by the lienor and to pay the amount of
30
the judgment, if any, in favor of the lienor, with interest, costs and
allowances.
(3) Any amount paid by Landlord for any of the aforesaid
charges and for all expenses of Landlord (including, but not limited
to, attorneys' fees and disbursements) incurred in defending any such
action, discharging said lien or in procuring the discharge of said
lien, with interest on all such amounts at the maximum legal rate of
interest then chargeable to Tenant from the date of payment, shall be
repaid by Tenant within ten (10) days after written demand therefor,
and all amounts so repayable, together with such interest, shall be
considered Additional Rent.
(f) Notwithstanding anything to the contrary set forth in this Article
V, Tenant, without Landlord's consent, is permitted to make Alterations
to the Premises which relate only to the cosmetic appearance,
nonstructural components, and/or non-load-bearing portions of the
Premises (and which do not affect the structural and/or load-bearing
elements of the Building or the Building Systems), provided such
Alterations do not cost, in the aggregate, more than Seventy-Five
Thousand Dollars ($75,000.00) during any twelve (12) month period
during the Term.
Section 5.2. Tenant shall reimburse Landlord, within five (5) Business
Days after demand therefor, for any reasonable out-of-pocket expense incurred by
Landlord for reviewing the plans and specifications for any Alterations or
inspecting the progress of completion of the same.
Section 5.3. Landlord, at Tenant's expense, and upon the request of
Tenant, shall join in any applications for any permits, approvals or
certificates required to be obtained by Tenant in connection with any permitted
Alteration (provided that the provisions of the applicable Requirements shall
require that Landlord join in such application) and shall otherwise cooperate
with Tenant in connection therewith, provided that Landlord shall not be
obligated to incur any cost or expense or liability in connection therewith.
Section 5.4. Tenant shall furnish to Landlord copies of records of all
Alterations and of the cost thereof within fifteen (15) days after the
completion of such Alterations.
31
Section 5.5. TENANT HEREBY ACCEPTS THE PREMISES "AS IS, WHERE IS," AND
WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, EXCEPT AS OTHERWISE SET FORTH IN THIS
LEASE.
Section 5.6. Tenant shall not, at any time prior to or during the Term,
directly or indirectly employ, or permit the employment of, any contractor,
mechanic or laborer in the Premises, whether in connection with any Alteration
or otherwise, if such employment would unreasonably interfere or cause any
unreasonable conflict with other contractors, mechanics or laborers engaged in
the construction, maintenance or operation of the Building by Landlord, Tenant
or others, or of any other property owned by Landlord. In the event of any such
unreasonable interference or conflict, Tenant, upon demand of Landlord, shall
cause all contractors, mechanics or laborers causing such interference or
conflict to leave the Building immediately.
Section 5.7. During the course of any Alteration and any construction
by Landlord, whether on the Land or on any real property adjacent to the Land,
Landlord and Tenant shall cooperate with each other, and shall cause their
contractors and subcontractors to cooperate, so as to minimize interruption and
interference with each other's construction activities.
ARTICLE VI
REPAIRS
Section 6.1. Tenant covenants to use due care in its use and occupancy
of the Premises and not to commit waste. Except as otherwise provided in this
Section 6.1, Tenant shall not be obligated to repair any Building Systems.
Tenant shall, however, at its own cost and expense, maintain and repair and, to
the extent deemed appropriate by Tenant, monitor the Security System.
Notwithstanding any provision contained in this Lease to the contrary, all
damage or injury to the Premises, and all damage or injury to any other part of
the Building, or to its fixtures, equipment and appurtenances (including
Building Systems), whether requiring structural or nonstructural repairs, caused
by the moving of Tenant's Property or caused by or resulting from any act or
omission of, or Alterations made by, Tenant or Persons Within Tenant's Control,
shall be repaired by Tenant, at Tenant's sole cost and expense, to the
reasonable satisfaction of Landlord (if the required repairs are non-structural
in nature and do not affect any Building Systems), or by Landlord at Tenant's
sole cost and expense (if the required repairs are structural in
32
nature or affect any Building Systems). All of the aforesaid repairs shall be
performed in a manner and with materials and design of first class and quality
consistent with first-class office buildings in Memphis and shall be made in
accordance with the provisions of Article 5. If Tenant shall fail, after five
(5) days notice (or such shorter period as may be required because of an
emergency), to proceed with due diligence to make repairs required to be made by
Tenant, the same may be made by Landlord, at the expense of Tenant, and the
expenses thereof incurred by Landlord, with interest thereon at the Applicable
Rate, shall be paid to Landlord, as Additional Rent, within ten (10) days after
rendition of a xxxx or statement therefor. Tenant shall give Landlord prompt
notice of any defective condition in any Building Systems located in, servicing
or passing through the Premises.
Section 6.2. Tenant shall not place a load upon any floor of the
Premises which exceeds seventy-five (75) pounds per square foot "live load."
Tenant shall not locate or move any safe, heavy machinery, heavy equipment,
business machines, freight, bulky matter or fixtures into or out of the Building
without Landlord's prior consent, which consent shall not be unreasonably
withheld, and Tenant shall make payment to Landlord of Landlord's costs in
connection therewith (if such move is not part of an Alteration). If such safe,
machinery, equipment, freight, bulky matter or fixture requires special handling
(as determined by Landlord), Tenant shall employ only persons holding a Master
Rigger's license to do said work. All work in connection therewith shall comply
with the Requirements, and shall be done during such hours as Landlord may
designate. Business machines and mechanical equipment shall be placed and
maintained by Tenant, at Tenant's expense, in settings sufficient, in Landlord's
reasonable judgment, to absorb and prevent vibration, noise and annoyance.
Section 6.3. Landlord shall operate, maintain and make all necessary
repairs (both structural and non-structural) to the Building Systems and the
public portions of the Building, both exterior and interior, in conformance with
standards applicable to first-class office buildings in Memphis, except for
those repairs for which Tenant is responsible pursuant to any other provision of
this Lease. Landlord shall use reasonable efforts to minimize interference with
Tenant's use and occupancy of the Premises in making any repairs, alterations,
additions or improvements; provided, however, that Landlord shall have no
obligation to employ contractors or labor at so-called overtime or other premium
pay rates or to incur any other overtime costs
33
in connection with such repairs, alterations, additions or improvements.
Notwithstanding the foregoing, if Tenant shall so request, Landlord shall employ
contractors or labor at so-called overtime or other premium pay rates or incur
other overtime costs in making such repairs, alterations, additions or
improvements, provided Tenant shall pay to Landlord, as Additional Rent, within
ten (10) days after demand therefor, an amount equal to the excess costs
incurred by Landlord by reason of compliance with Tenant's request. Except as
expressly provided in this Lease, there shall be no allowance to Tenant for a
diminution of rental value and no liability on the part of Landlord by reason of
inconvenience, annoyance or injury to business arising from Landlord, Tenant or
others making, or failing to make, any repairs, alterations, additions or
improvements in or to any portion of the Building or the Premises, or its
fixtures, appurtenances or equipment.
Section 6.4. Without abatement or diminution in rent, Landlord reserves
and shall have the following additional rights:
1. To erect, use and maintain pipes and conduits in and through
the Premises; provided that all such conduits and pipes shall
be located behind then-existing walls, under floors or above
suspended ceilings and shall not interfere with the use and
operation of the Premises, or any equipment or facilities
located therein.
2. To take any and all measures, including inspections, repairs,
alterations, additions and improvements to the Premises or to
the Building, as may be necessary or desirable for the safety,
protection or preservation of the Premises or the Building or
Landlord's interests, or as may be necessary or desirable in
the operation of the Building.
ARTICLE VII
CONNECTING CORRIDORS
Section 7.1 [Reserved]
Section 7.2 In the event that the Expiration Date of this Lease shall
be earlier or later than the expiration date of Tenant's lease of Building No.
1, then at such time as Tenant no longer occupies both of such buildings, Tenant
shall, at its own expense, construct a door or doors in the corridor which
connects
34
the Building and Building No. 1, in such manner as Landlord and Tenant shall
mutually agree, to prevent access between the Building and Building No. 1.
ARTICLE VIII
REQUIREMENTS OF LAW
Section 8.1. Tenant shall not do, and shall not permit Persons Within
Tenant's Control to do, any act or thing in or upon the Premises or the Building
which will invalidate or be in conflict with the certificate of occupancy for
the Premises or the Building or violate any Requirements or Restrictive
Covenants. Tenant shall, at Tenant's sole cost and expense, take all action,
including making any required Alterations necessary to comply with all
Requirements (including, but not limited to, applicable terms of the Americans
With Disabilities Act of 1990 (the "ADA"), as modified and supplemented from
time to time) which shall impose any violation, order or duty upon Landlord or
Tenant arising from, or in connection with, the Premises, Tenant's occupancy,
use or manner of use of the Premises (including, without limitation, any
occupancy, use or manner of use that constitutes a "place of public
accommodation" under the ADA), or any installations by Tenant in the Premises,
or required by reason of a breach of any of Tenant's covenants or agreements
under this Lease, whether or not such Requirements shall now be in effect or
hereafter enacted or issued, and whether or not any work required shall be
ordinary or extraordinary or foreseen or unforeseen at the date hereof;
provided, however, that Landlord shall be responsible for complying with such
Requirement or Restrictive Covenant and for the cost of such compliance if and
to the extent that non-compliance arose because of the acts of Landlord.
Section 8.2. Tenant covenants and agrees that Tenant shall, at Tenant's
sole cost and expense, comply at all times with all Requirements governing the
use, generation, storage, treatment and/or disposal of any Hazardous Materials
(as defined below), the presence of which results from or in connection with the
act or omission of Tenant or Persons Within Tenant's Control or the breach of
this Lease by Tenant or Persons Within Tenant's Control. The term "Hazardous
Materials" shall mean any biologically or chemically active or other toxic or
hazardous wastes, pollutants or substances, including, without limitation,
asbestos, PCBs, petroleum products and by-products, substances defined or listed
as "hazardous substances" or "toxic substances"
35
or similarly identified in or pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. 9601 ET SEQ., and as
hazardous wastes under the Resource Conservation and Recovery Act, 42 U.S.C.
6010, ET SEQ., any chemical substance or mixture regulated under the Toxic
Substance Control Act of 1976, as amended 15 U.S.C. 2601, ET SEQ., any "toxic
pollutant" under the Clean Water Act, 33 U.S.C. 466 ET SEQ., as amended, any
hazardous air pollutant under the Clean Air Act, 42 U.S.C. 7401 ET SEQ.,
hazardous materials identified in or pursuant to the Hazardous Materials
Transportation Act, 49 U.S.C. 1802, ET SEQ., and any hazardous or toxic
substances or pollutant regulated under any other Requirements. Tenant shall
agree to execute, from time to time, at Landlord's request, affidavits,
representations and the like concerning Tenant's best knowledge and belief
regarding the presence of Hazardous Materials in, on, under or about the
Premises, the Building or the Land. Tenant shall indemnify and hold harmless all
Indemnitees from and against any loss, cost, damage, liability or expense
(including attorneys' fees and disbursements) arising by reason of any clean up,
removal, remediation, detoxification action or any other activity required or
recommended of any Indemnitees by any Governmental Authority by reason of the
presence in or about the Building or the Premises of any Hazardous Materials, as
a result of or in connection with the act or omission of Tenant or Persons
Within Tenant's Control or the breach of this Lease by Tenant or Persons Within
Tenant's Control. The foregoing covenants and indemnity shall survive the
expiration or any termination of this Lease.
Section 8.3. If Tenant shall receive notice of any violation of, or
defaults under, any Requirements, liens or other encumbrances applicable to the
Premises, Tenant shall give prompt notice thereof to Landlord.
Section 8.4. If any governmental license or permit shall be required
for the proper and lawful conduct of Tenant's business and if the failure to
secure such license or permit would, in any way, affect Landlord or the
Building, then Tenant, at Tenant's expense, shall promptly procure and
thereafter maintain, submit for inspection by Landlord, and at all times comply
with the terms and conditions of, each such license or permit.
Section 8.5. Tenant, at Tenant's sole cost and expense and after notice
to Landlord, may contest, by appropriate proceedings prosecuted diligently and
in good faith, the legality or applicability of any Requirement affecting the
Premises provided that: (a) neither Landlord nor any Indemnitees shall be
subject
36
to criminal penalties, nor shall the Real Property or any part thereof be
subject to being condemned or vacated, nor shall the certificate of occupancy
for the Premises or the Building be suspended or threatened to be suspended, by
reason of non-compliance or by reason of such contest; (b) before the
commencement of such contest, if Landlord or any Indemnitees may be subject to
any civil fines or penalties or if Landlord may be liable to any independent
third party as a result of such non-compliance, then Tenant shall furnish to
Landlord either (i) a bond of a surety company satisfactory to Landlord, in form
and substance reasonably satisfactory to Landlord, and in an amount at least
equal to Landlord's estimate of the sum of (A) the cost of such compliance, (B)
the penalties or fines that may accrue by reason of such non-compliance (as
reasonably estimated by Landlord) and (C) the amount of such liability to
independent third parties, and shall indemnify Landlord (and any Indemnitees)
against the cost of such compliance and liability resulting from or incurred in
connection with such contest or non-compliance; or (ii) other security
satisfactory in all respects to Landlord; (c) such non-compliance or contest
shall not constitute or result in a violation (either with the giving of notice
or the passage of time or both) of the terms of any Mortgage, or if such
Mortgage conditions such non-compliance or contest upon the taking of action or
furnishing of security by Landlord, such action shall be taken or such security
shall be furnished at the expense of Tenant; and (d) Tenant shall keep Landlord
regularly advised as to the status of such proceedings.
ARTICLE IX
SUBORDINATION
Section 9.1. This Lease shall be subject and subordinate to each
Mortgage, whether made prior to or after the execution of this Lease, and to all
renewals, extensions, supplements, amendments, modifications, consolidations and
replacements thereof or thereto, substitutions therefor, and advances made
thereunder. This clause shall be selfoperative and no further agreement of
subordination shall be required to make the interest of any Lessor or Mortgagee
superior to the interest of Tenant hereunder. In confirmation of such
subordination, however, Tenant shall promptly execute and deliver, at its own
cost and expense, any document, in recordable form if requested, that Landlord,
any Lessor or any Mortgagee may request to evidence such subordination. Tenant
shall not do anything that would constitute a default under any Mortgage, or
omit to do anything that Tenant is obligated to do under the terms of this Lease
so
37
as to cause Landlord to be in default thereunder. If, in connection with the
financing of the Real Property or the Building, any lending institution or
Lessor, as the case may be, requests reasonable modifications of this Lease that
do not increase rent or change the Term of this Lease, or materially and
adversely affect the rights or obligations of Tenant under this Lease, Tenant
shall make such modifications.
Section 9.2. If, at any time prior to the expiration of the Term, any
Mortgagee comes into possession of the Real Property or the Building by receiver
or otherwise, Tenant agrees, at the election and upon demand of any owner of the
Real Property or the Building, or of any Mortgagee in possession of the Real
Property or the Building, to attorn, from time to time, to any such owner or
Mortgagee or any person acquiring the interest of Landlord as a result of any
such termination, or as a result of a foreclosure of the Mortgage or the
granting of a deed in lieu of foreclosure, upon the then executory terms and
conditions of this Lease (except as provided below), for the remainder of the
Term, provided that such owner or Mortgagee, as the case may be, or receiver
caused to be appointed by any of the foregoing, is then entitled to possession
of the Premises. Any such attornment shall be made upon the condition that no
such owner or Mortgagee shall be:
1. liable for any act or omission of any prior
landlord (including, without limitation, the then defaulting landlord);
or
2. subject to any defense or offsets (except as
expressly set forth in this Lease) which Tenant may have against any
prior landlord (including, without limitation, the then defaulting
landlord); or
3. bound by any payment of Rental which Tenant might
have paid for more than the current month to any prior landlord
(including, without limitation, the then defaulting landlord); or
4. bound by any obligation to make any payment to
Tenant which was required to be made prior to the time such owner or
Mortgagee succeeded to any prior landlord's interest; or
5. bound by any obligation to perform any work or to
make improvements to the Premises except for (i) repairs and
maintenance pursuant to the provisions of
38
Article 6, (ii) repairs to the Premises or any part thereof as a result
of damage by fire or other casualty pursuant to Article 12, but only to
the extent that such repairs can be reasonably made from the net
proceeds of any insurance actually made available to such owner or
Mortgagee and (iii) repairs to the Premises as a result of a partial
condemnation pursuant to Article 13, but only to the extent that such
repairs can be reasonably made from the net proceeds of any award made
available to such owner or Mortgagee. The provisions of this Section
9.2 shall inure to the benefit of any such owner or Mortgagee, shall
apply notwithstanding that, as a matter of law, this Lease may
terminate, and shall be self-operative upon any such demand, and no
further agreement shall be required to give effect to said provisions.
Tenant, however, upon demand of any such owner or Mortgagee, shall
execute, from time to time, agreements in confirmation of the foregoing
provisions of this Section 9.2, satisfactory to any such owner, Lessor
or Mortgagee, and acknowledging such attornment and setting forth the
terms and conditions of its tenancy. Nothing contained in this Section
9.2 shall be construed to impair any right otherwise exercisable by any
such owner or Mortgagee.
Section 9.3. If requested by any Mortgagee or Landlord, Tenant shall
promptly execute and deliver, at Tenant's own cost and expense, any document in
accordance with the terms of this Article 9, in recordable form, to evidence
such subordination.
Section 9.4. At any time and from time to time upon not less than
twenty (20) days' prior notice to Tenant or Landlord given by the other, or to
Tenant given by a Mortgagee, Tenant or Landlord, as the case may be, shall,
without charge, execute, acknowledge and deliver a statement in writing
addressed to such party as Tenant, Landlord or Mortgagee, as the case may be,
may designate, in form satisfactory to Tenant, Landlord or Mortgagee, as the
case may be, certifying all or any of the following: (i) that this Lease is
unmodified and in full force and effect (or if there have been modifications,
that this Lease is in full force and effect as modified and stating the
modifications); (ii) whether the Term has commenced and Fixed Rent and
Additional Rent have become payable hereunder and, if so, the dates to which
they have been paid; (iii) whether or not, to the best knowledge of the signer
of such certificate, Landlord is in default in performance of any of the terms
of this Lease and, if so, specifying each such event of default of which the
signer may have knowledge; (iv) whether Tenant has accepted possession of
39
the Premises; (v) whether Tenant has made any claim against Landlord under this
Lease and, if so, the nature thereof and the dollar amount, if any, of such
claim; (vi) either that Tenant does not know of any default in the performance
of any provision of this Lease or specifying the details of any default of which
Tenant may have knowledge and stating what action Tenant is taking or proposes
to take with respect thereto; (vii) that, to the knowledge of Tenant, there are
no proceedings pending or threatened against Tenant before or by any court or
administrative agency which, if adversely decided, would materially and
adversely affect the financial condition or operations of Tenant or, if any such
proceedings are pending or threatened to the knowledge of Tenant, specifying and
describing the same; and (viii) such further information with respect to the
Lease or the Premises as Landlord may reasonably request or Mortgagee may
require; it being intended that any such statement delivered pursuant hereto may
be relied upon by any prospective purchaser of the Real Property or any part
thereof or of the interest of Landlord in any part thereof, by any Mortgagee or
prospective Mortgagee, by any tenant or prospective tenant of the Real Property
or any part thereof, or by any prospective assignee of any Mortgage or by any
assignee of Tenant.
The failure of either Tenant or Landlord to execute, acknowledge and
deliver to the other a statement in accordance with the provisions of this
Section 9.4 within said twenty (20) day period shall constitute an
acknowledgment by Tenant or Landlord, as the case may be, which may be relied on
by any person who would be entitled to rely upon any such statement, that such
statement as submitted by Landlord or Tenant, as the case may be, is true and
correct.
Section 9.5. As long as any Mortgage exists, Tenant shall not seek to
terminate this Lease by reason of any act or omission of Landlord until Tenant
has given written notice of such act or omission to all Mortgagees at such
addresses as may have been furnished to Tenant by such Mortgagees and, if any
such Mortgagee notifies Tenant within thirty (30) days following receipt of such
notice that it intends to remedy such act or omission, Mortgagee shall have a
reasonable period of time to remedy such act or omission.
ARTICLE X
RULES AND REGULATIONS
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Section 10.1. Tenant and Persons Within Tenant's Control shall comply
with Exhibit "C," "Rules and Regulations." Nothing contained in this Lease shall
be construed to impose upon Landlord any duty or obligation to enforce the Rules
and Regulations or the terms, covenants or conditions in any other lease against
any other tenant, and Landlord shall not be liable to Tenant for violation of
the same by any other tenant, its employees, agents, visitors or licensees.
Landlord shall not discriminate against Tenant in enforcing the Rules and
Regulations. In case of any conflict or inconsistency between the provisions of
this Lease and of any of the Rules and Regulations as originally or as
hereinafter adopted, the provisions of this Lease shall control.
ARTICLE XI
INSURANCE, PROPERTY LOSS OR DAMAGE, REIMBURSEMENT
Section 11.1. (a) Tenant shall not entrust any property to any Building
employee. Any Building employee to whom any property is entrusted by or on
behalf of Tenant in violation of the foregoing prohibition shall be deemed to be
acting as Tenant's agent with respect to such property and neither Landlord nor
its agents shall be liable for any damage to property of Tenant or of others
entrusted to employees of the Building, nor for the loss of or damage to any
property of Tenant by theft or otherwise. Landlord and Landlord's agents shall
not be liable for any damage to any of Tenant's Property or for interruption of
Tenant's business, however caused, including but not limited to damage caused by
other tenants or persons in the Building. Landlord shall not be liable for any
latent defect in the Premises or in the Building.
(b) Tenant shall give notice to Landlord promptly after Tenant learns
of any accident, emergency or occurrence for which Landlord might be liable,
fire or other casualty and all damages to or defects in the Premises or the
Building for the repair of which Landlord might be responsible or which
constitutes Landlord's property. Such notice shall be given by telecopy or
personal delivery to the address(es) of Landlord in effect for notice.
Section 11.2. Tenant shall not do or permit to be done any act or thing
in or upon the Premises which will invalidate or be in conflict with the terms
of the State of Tennessee standard policies of fire insurance and liability
(hereinafter referred to as "Building Insurance"); and Tenant, at Tenant's own
expense,
41
shall comply with all rules, orders, regulations and requirements of all
insurance boards, and shall not do or permit anything to be done in or upon the
Premises or bring or keep anything therein or use the Premises in a manner which
increases the rate of premium for any of the Building Insurance over the rate in
effect at the commencement of the Term of this Lease.
Section 11.3. If by reason of any failure of Tenant to comply with the
provisions of this Lease, the rate of premium for Building Insurance or other
insurance on the property and equipment of Landlord shall increase, Tenant shall
reimburse Landlord for that part of the insurance premiums thereafter paid by
Landlord which shall have been charged because of such failure by Tenant. Tenant
shall make said reimbursement on the first day of the month following such
payment by Landlord.
Section 11.4. (a) At Tenant's own cost and expense, Tenant shall
obtain, maintain and keep in full force and effect during the Term commercial
general liability insurance (without deductible) in a form approved in the State
of Tennessee (including broad form property damage coverages). The limits of
liability shall be not less than Five Million Dollars ($5,000,000.00) per
occurrence, which amount may be satisfied with a primary commercial general
liability policy of not less than Two Million Dollars ($2,000,000.00) and an
excess (or "Umbrella") liability policy affording coverage, at least as broad as
that afforded by the primary commercial general liability policy, in an amount
not less than Three Million Dollars ($3,000,000.00). Landlord, the Manager, any
Lessors and any Mortgagees shall be included as additional insureds in said
policies and shall be protected against all liability arising in connection with
this Lease. All said policies of insurance shall be written as "occurrence"
policies. Whenever, in Landlord's reasonable judgment, good business practice
and changing conditions indicate a need for additional amounts or different
types of insurance coverage, Tenant shall, within ten (10) days after Landlord's
request, obtain such insurance coverage, at Tenant's expense.
(b) Tenant, at Tenant's sole cost and expense, shall maintain all-risk
insurance, with deductibles in an amount reasonably satisfactory to Landlord,
protecting and indemnifying Tenant against any and all damage to or loss of any
Alterations and leasehold improvements, including any made by Landlord to
prepare the Premises for Tenant's occupancy, and Tenant's Property. All said
policies shall cover the full replacement
42
value of all Alterations, leasehold improvements and Tenant's Property.
(c) All policies of insurance shall be: (i) written as primary policy
coverage and not contributing with or in excess of any coverage which Landlord
or any Lessor may carry; and (ii) issued by reputable and independent insurance
companies rated in Best's Insurance Guide or any successor thereto (or, if there
is none, an organization having a national reputation), as having a general
policyholder rating of "A" and a financial rating of at least "VII," and which
are licensed to do business in the State of Tennessee. Tenant shall, not later
than ten (10) Business Days prior to the Commencement Date, deliver to Landlord
either (a) the policies of insurance or (b) certificates thereof with a copy of
the declaration page, and shall thereafter furnish to Landlord, at least thirty
(30) days prior to the expiration of any such policies and any renewal thereof,
a new policy or certificate (with copy of the declaration page) in lieu thereof.
Each of said policies shall also contain a provision whereby the insurer agrees
not to cancel, fail to renew, diminish or materially modify said insurance
policy(ies) without having given Landlord, the Manager and any Lessors and
Mortgagees at least thirty (30) days prior written notice thereof. Tenant shall
promptly send to Landlord a copy of all notices sent to Tenant by Tenant's
insurer.
(d) Tenant shall pay all premiums and charges for all of said policies,
and, if Tenant shall fail to make any payment when due or carry any such policy,
then after notice to Tenant, Landlord may, but shall not be obligated to, make
such payment or carry such policy, and the amount paid by Landlord, with
interest thereon (at the Applicable Rate), shall be repaid to Landlord by Tenant
on demand, and all such amounts so repayable, together with such interest, shall
be deemed to constitute Additional Rent hereunder. Payment by Landlord of any
such premium, or the carrying by Landlord of any such policy, shall not be
deemed to waive or release the default of Tenant with respect thereto.
Section 11.5. (a) Landlord shall cause each policy carried by Landlord
insuring the Building against loss, damage or destruction by fire or other
casualty, and Tenant shall cause each insurance policy carried by Tenant and
insuring the Premises and Tenant's Alterations, leasehold improvements and
Tenant's Property against loss, damage or destruction by fire or other casualty,
to be written in a manner so as to provide that the insurance company waives all
rights of recovery by way of subrogation against Landlord, Tenant and any tenant
of space in
43
the Building in connection with any loss or damage covered by any such policy.
Neither party shall be liable to the other for the amount of such loss or damage
which is in excess of the applicable deductible, if any, caused by fire or any
of the risks enumerated in its policies.
(b) The waiver of subrogation referred to in Section 11.5(a) above
shall extend to the agents and employees of each party (including, as to
Landlord, the Manager). Nothing contained in this Section 11.5 shall be deemed
to relieve either party from any duty imposed elsewhere in this Lease to repair,
restore and rebuild.
(c) During the Term, Landlord agrees to maintain:
(i) "all risk" full replacement cost property insurance on the
Building in an amount sufficient to prevent Landlord from being deemed
a co-insurer of the risks insured under the policy, which shall include
customary rent loss insurance covering loss of rents from Tenant under
this Lease and other tenants under other leases and which shall
include, as and to the extent customarily included by prudent owners of
comparable first class office buildings in Memphis, Tennessee, boiler
and machinery and electrical apparatus coverage;
(ii) commercial general liability insurance (which may be a
combination of primary and umbrella coverages) in an amount which
Landlord deems appropriate; and
(iii) Landlord shall furnish to Tenant certificates or other
evidence of insurance from the insurer, or, if not available from the
insurer, then from the insurance agent, evidencing such coverage at the
time this Lease is executed and, at Tenant's request, within thirty
(30) days after any policy is renewed, replaced or changed.
ARTICLE XII
DESTRUCTION BY FIRE OR OTHER CAUSE
Section 12.1. If the Premises or any part thereof shall be damaged by
fire or other casualty, Tenant shall give prompt written notice thereof to
Landlord. Landlord shall, subject to the provisions of Sections 12.2 and 12.3
below, proceed with reasonable diligence within 120 days of the casualty to
repair or cause to be repaired such damage at its expense; and, if the
44
Premises, or any part thereof, shall be rendered untenantable by reason of such
damage and such damage shall not be due to the fault of Tenant or Persons Within
Tenant's Control, then the Fixed Rent and the Escalation Rent hereunder, or an
amount thereof apportioned on a pro rata basis according to the area of the
Premises so rendered untenantable (if less than the entire Premises shall be so
rendered untenantable), shall be abated for the period from the date of such
damage to the date when the repair of such damage shall have been substantially
completed. Tenant covenants and agrees to cooperate with Landlord and any Lessor
or any Mortgagee in their efforts to collect insurance proceeds (including rent
insurance proceeds) payable to such parties. Landlord shall not be liable for
any delay which may arise by reason of adjustment of insurance on the part of
Landlord and/or Tenant, or any cause beyond the control of Landlord or
contractors employed by Landlord.
Section 12.2. Landlord shall not be liable for any inconvenience or
annoyance to Tenant or injury to the business of Tenant resulting in any way
from damage from fire or other casualty or the repair thereof. Tenant
understands that Landlord, in reliance upon Section 12.4, will not carry
insurance of any kind on Tenant's Property, Tenant's Alterations and on
leasehold improvements, and that Landlord shall not be obligated to repair any
damage thereto or replace the same.
(a) Notwithstanding anything to the contrary contained in
Sections 12.1 and 12.2 above, in the event that:
(i) at least twenty thousand (20,000) rentable square
feet of the Building shall be damaged by a fire or other
casualty so that substantial alteration or reconstruction of
the Building shall, in Landlord's sole opinion, be required
(whether or not the Premises shall have been damaged by such
fire or other casualty and without regard to the structural
integrity of the Building); or
(ii) the Premises shall be totally or substantially
damaged or shall be rendered wholly or substantially
untenantable; or
(iii) there shall be any damage to the Premises
within the last two (2) years of the Term wherein the cost of
repair exceeds an amount equal to three (3) monthly
installments of Fixed Rent, then either Landlord or Tenant may
terminate this Lease and
45
the term and estate hereby granted, by notifying the other
party in writing of such termination prior to commencement of
work to repair the damage to the Premises or within one
hundred twenty (120) days after the date of such damage,
whichever first occurs. In the event that such a notice of
termination shall be given, then this Lease and the Term and
estate hereby granted shall expire as of the date of
termination stated in said notice with the same effect as if
that were the Fixed Expiration Date, and the Fixed Rent and
Escalation Rent hereunder shall be apportioned as of such
date.
(b) Notwithstanding anything to the contrary contained in this Section
12.2, upon written request which is made by Tenant prior to commencement of work
to repair the damage to the Premises, Landlord shall deliver to Tenant an
estimate prepared by a reputable contractor selected by Landlord setting forth
such contractor's estimate as to the time reasonably required to repair such
damage. If the period to repair set forth in any such estimate exceeds nine (9)
months, Tenant may elect to terminate this Lease by notice to Landlord given not
later than thirty (30) days following Tenant's receipt of such estimate. If
Tenant exercises such election, this Lease and the term and estate hereby
granted shall expire as of the sixtieth (60th) day after notice of such election
given by Tenant with the same effect as if that were the Fixed Expiration Date,
and the Fixed Rent and Escalation Rent hereunder shall be apportioned as of such
date.
Section 12.3. Except as may be provided in Section 11.5, nothing herein
contained shall relieve Tenant from any liability to Landlord or to Landlord's
insurers in connection with any damage to the Premises or the Building by fire
or other casualty if Tenant shall be legally liable in such respect.
Section 12.4. This Lease shall be considered an express agreement
governing any case of damage to or destruction of the Building or any part
thereof by fire or other casualty.
ARTICLE XIII
EMINENT DOMAIN
Section 13.1. If the whole of the Real Property, the Building or the
Premises is acquired or condemned for any public or quasi-public use or purpose,
this Lease and the Term shall end
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as of the date of the vesting of title with the same effect as if said date were
the Fixed Expiration Date. If only a part of the Real Property and not the
entire Premises is so acquired or condemned then, (a) except as hereinafter
provided in this Section 13.1, this Lease and the Term shall continue in effect
but, if a part of the Premises is included in the part of the Real Property so
acquired or condemned, from and after the date of the vesting of title, the
Fixed Rent and Tenant's Share shall be reduced in the proportion which the area
of the part of the Premises so acquired or condemned bears to the total area of
the Premises immediately prior to such acquisition or condemnation; (b) whether
or not the Premises are affected thereby, Landlord, at Landlord's option, may
give to Tenant, within sixty (60) days next following the date upon which
Landlord receives notice of vesting of title, a thirty (30) day notice of
termination of this Lease; and (c) if the part of the Real Property so acquired
or condemned contains more than thirty percent (30%) of the total area of the
Premises immediately prior to such acquisition or condemnation, or if, by reason
of such acquisition or condemnation, Tenant no longer has access to the
Premises, Tenant, at Tenant's option, may give to Landlord, within sixty (60)
days next following the date upon which Tenant receives notice of vesting of
title, a thirty (30) day notice of termination of this Lease. If any such thirty
(30) day notice of termination is given, by Landlord or Tenant, this Lease and
the Term shall come to an end and expire upon the expiration of said thirty (30)
days with the same effect as if the date of expiration of said thirty (30) days
were the Fixed Expiration Date. If a part of the Premises is so acquired or
condemned and this Lease and the Term are not terminated pursuant to the
foregoing provisions of this Section 13.1, Landlord, at Landlord's cost and
expense, shall restore that part of the Premises not so acquired or condemned to
a self-contained rental unit, exclusive of Tenant's Alterations and Tenant's
Property. In the event of any termination of this Lease and the Term pursuant to
the provisions of this Section 13.1, the Fixed Rent shall be apportioned as of
the date of the termination and any prepaid portion of the Fixed Rent or
Escalation Rent for any period after such date shall be refunded by Landlord to
Tenant.
Section 13.2. In the event of any such acquisition or condemnation of
all or any part of the Real Property, Landlord shall be entitled to receive the
entire award for any such acquisition or condemnation. Tenant shall have no
claim against Landlord or the condemning authority for the value of any
unexpired portion of the Term and Tenant hereby expressly assigns to Landlord
all of its right in and to any such award. Nothing
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contained in this Section 13.2 shall be deemed to prevent Tenant from making a
separate claim in any condemnation proceedings for the value of any Tenant's
Property included in such taking, and for any moving expenses, so long as
Landlord's award is not reduced thereby.
ARTICLE XIV
ASSIGNMENT, SUBLETTING, MORTGAGE, ETC
Section 14.1 Except as otherwise provided in this Article 14, Tenant
shall not (a) assign this Lease (whether by operation of law, transfers of
interests in Tenant or otherwise); or (b) mortgage or encumber Tenant's interest
in this Lease, in whole or in part; or (c) sublet, or permit the subletting of,
the Premises or any part thereof. Tenant shall not advertise or authorize a
broker to advertise for a subtenant or assignee, without in each instance,
obtaining the prior written consent of Landlord, which shall not be unreasonably
withheld or delayed.
Section 14.2 If Tenant's interest in this Lease shall be assigned in
violation of the provisions of this Article 14, such assignment shall be invalid
and of no force and effect against Landlord; provided, however, that Landlord
may collect an amount equal to the then Fixed Rent plus any other item of Rental
from the assignee as a fee for its use and occupancy. If the Premises or any
part thereof are sublet to, or occupied by, or used by, any person other than
Tenant, whether or not in violation of this Article 14, Landlord, after default
by Tenant under this Lease, may collect any item of Rental or other sums paid by
the subtenant, user or occupant as a fee for its use and occupancy, and shall
apply the net amount collected to the Fixed Rent and the items of Rental
reserved in this Lease. No such assignment, subletting, occupancy, or use,
whether with or without Landlord's prior consent, nor any such collection or
application of Rental or fee for use and occupancy, shall be deemed a waiver by
Landlord of any term, covenant or condition of this Lease or the acceptance by
Landlord of such assignee, subtenant, occupant or user as Tenant hereunder, nor
shall the same, in any circumstances, relieve Tenant of any of its obligations
under this Lease. The consent by Landlord to any assignment, subletting,
occupancy or use shall not relieve Tenant from its obligation to obtain the
express prior consent of Landlord to any further assignment, subletting,
occupancy or use. Any person to which this Lease is assigned with Landlord's
consent shall be deemed without more to have assumed all of the obligations
arising under this Lease from and after the date of such
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assignment and shall execute and deliver to Landlord, upon demand, an instrument
confirming such assumption. Notwithstanding and subsequent to any assignment,
Tenant's primary liability hereunder shall continue notwithstanding (a) any
subsequent amendment hereof, or (b) Landlord's forbearance in enforcing against
Tenant any obligation or liability, without notice to Tenant, to each of which
Tenant hereby consents in advance. If any such amendment operates to increase
the obligations of Tenant under this Lease, the liability under this Section
14.2 of the assigning Tenant shall continue to be no greater than if such
amendment had not been made (unless such party shall have expressly consented in
writing to such amendment).
(a) For purposes of this Article 14, (i) the transfer of a majority of
the issued and outstanding capital stock of any corporate tenant, or of a
corporate subtenant, or the transfer of a majority of the total interest in any
partnership tenant or subtenant, or the transfer of control in any limited
partnership tenant or subtenant, or the transfer of control in any limited
liability company tenant or subtenant or the transfer of control in any limited
liability partnership tenant or subtenant, however accomplished, whether in a
single transaction or in a series of related or unrelated transactions, shall be
deemed an assignment of this Lease, or of such sublease, as the case may be,
except that the transfer of the outstanding capital stock of any corporate
tenant, or subtenant, shall be deemed not to include the sale of such stock by
persons or parties, other than those deemed "affiliates" of Tenant within the
meaning of Rule 144 promulgated under the Securities Act of 1933, as amended,
through the "over-the-counter market" or through any recognized stock exchange,
(ii) any increase in the amount of issued and/or outstanding capital stock of
any corporate tenant, or of a corporate subtenant, and/or the creation of one or
more additional classes of capital stock of any corporate tenant or any
corporate subtenant, in a single transaction or a series of related or unrelated
transactions, resulting in a change in the legal or beneficial ownership of such
tenant or subtenant so that the shareholders of such tenant or subtenant
existing immediately prior to such transaction or series of transactions shall
no longer own a majority of the issued and outstanding capital stock of such
tenant or subtenant, shall be deemed an assignments of this Lease, (iii) an
agreement by any other person or entity, directly or indirectly, to assume
Tenant's obligations under this Lease shall be deemed an assignment, (iv) any
person or legal representative of Tenant, to whom Tenant's interest under this
lease passes by operation of law, or otherwise, shall be bound by
49
the provisions of this Article 14, and (v) a modification, amendment or
extension of a sublease shall be deemed a sublease. Tenant agrees to furnish to
Landlord on request at any time such information and assurances as Landlord may
reasonably request that neither Tenant, nor any previously permitted subtenant,
has violated the provisions of this Article 14.
(b) The provisions of clauses (a), (c) and (d) of Section 14.1 shall
not apply to transactions with a corporation into or with which Tenant is merged
or consolidated or with a Person to which substantially all of Tenant's assets
are transferred (provided such merger or transfer of assets is for a good
business purpose and not principally for the purpose of transferring the
leasehold estate created by this Lease, and provided further, that the assignee
has a net worth at least equal to or in excess of the net worth of Tenant as of
the date of this Lease and as of the date immediately prior to such merger or
transfer, whichever is greater) or, if Tenant is a partnership, with a successor
partnership, nor shall the provisions of clause (a), (c) and (d) of Section 14.1
apply to transactions with an entity that controls or is controlled by Tenant or
is under common control with Tenant. Tenant shall notify Landlord before any
such transaction is consummated.
(c) The term "control" as used in this Lease (i) in the case of a
corporation shall mean ownership of more than fifty percent (50%) of the
outstanding capital stock of that corporation, (ii) in the case of a general
partnership, shall mean more than fifty percent (50%) of the general partnership
interest of the partnership, (iii) in the case of a limited partnership, shall
mean more than fifty percent (50%) of the general and limited partnership
interests of such limited partnership; (iv) in the case of a limited liability
company, shall mean more than fifty percent (50%) of the membership interests of
such limited liability company, and (v) in the case of a limited liability
partnership, shall mean more than fifty percent (50%) of the partnership
interest of such limited liability partnership.
Section 14.3. [RESERVED]
Section 14.4. (a) If Tenant sublets any portion of the Premises to a
Person in a transaction for which Landlord's consent is required, Landlord shall
be entitled to and Tenant shall pay to Landlord, as Additional Rent (the
"Sublease Additional Rent"), a sum equal to fifty percent (50%) of any rents,
additional charges and other consideration payable under
50
the sublease to Tenant by the subtenant in excess of the Fixed Rent and
Escalation Rent accruing during the term of the sublease in respect of the
subleased space (at the rate per square foot payable by Tenant under this Lease)
pursuant to the terms of this Lease (including, but not limited to, sums paid
for the sale or rental of Tenant's Property and Alterations less the then net
unamortized or undepreciated cost thereof determined on the basis of Tenant's
federal income tax or federal information returns), net of any reasonable
brokerage commissions incurred in connection therewith; provided, however, that
no reduction shall be allowed if brokerage commissions are paid to any Person
under Tenant's control. Such Sublease Additional Rent shall be payable as and
when received by Tenant.
(b) Landlord may, by notice to Tenant, elect to waive the benefits of
this Section 14.4, for any month or months, prospectively or retroactively. Any
retroactive waiver shall be accompanied by a return to Tenant of all Sublease
Additional Rent theretofore paid to and retroactively waived by Landlord for the
months in question.
Section 14.5. (a) If Tenant shall assign this Lease to a Person in a
transaction for which Landlord's consent is required, Landlord shall be entitled
to and Tenant shall pay to Landlord, as Additional Rent, an amount equal to all
sums and other consideration paid to Tenant by the assignee for or by reason of
such assignment (including, but not limited to, sums paid for the sale or rental
of Tenant's Property and Alterations less the then net unamortized or
undepreciated cost thereof determined on the basis of Tenant's federal income
tax or federal information returns). Such Additional Rent shall be payable as
and when received by Tenant from the assignee.
(b) Landlord may, by notice to Tenant, elect to waive the benefits of
this Section 14.5, prospectively or retrospectively. Any retroactive waiver
shall be accompanied by a return to Tenant of all amounts theretofore paid to
and retroactively waived by Landlord.
Section 14.6. Landlord shall have no liability for brokerage
commissions incurred with respect to any assignment of this Lease or any
subletting of all or any part of the Premises by or on behalf of Tenant. Tenant
shall pay, and shall indemnify and hold Landlord harmless from and against, any
and all cost, expense (including reasonable attorneys' fees and disbursements)
and liability in connection with any compensation, commissions or
51
charges claimed by any broker or agent with respect to any such assignment or
subletting.
ARTICLE XV
ACCESS TO PREMISES
Section 15.1. (a) Tenant shall permit Landlord, Landlord's agents and
independent contractors and public utilities servicing the Building to have
reasonable access for the purpose of maintaining existing concealed ducts, pipes
and conduits in and through and to access all Common Areas within the Building
and all Common Areas comprising a portion of the Land. Landlord or Landlord's
agents shall have the right to enter the Premises at all reasonable times upon
(except in case of emergency) reasonable prior notice, which notice may be oral,
to examine the same, to show the same to prospective purchasers, Mortgagees or
lessees of the Building or space therein, and to make such repairs, alterations,
improvements or additions (i) as Landlord may deem necessary or desirable to the
Premises or to any other portion of the Building, or (ii) which Landlord may
elect to perform at least ten (10) days after notice (except in an emergency
when no notice shall be required) following Tenant's failure to make repairs or
perform any work which Tenant is obligated to make or perform under this Lease,
or (iii) for the purpose of complying with Requirements, and Landlord shall be
allowed to take all material into and upon the Premises that may be required
therefor without the same constituting an eviction or constructive eviction of
Tenant in whole or in part and the Fixed Rent (and any other item of Rental)
shall in no respect xxxxx or be reduced by reason of said repairs, alterations,
improvements or additions, wherever located, or while the same are being made,
by reason of loss or interruption of business of Tenant, or otherwise. Landlord
shall promptly repair any damage caused to the Premises by such work,
alterations, improvements or additions. Tenant shall, at Tenant's cost, take
such action as may be reasonably necessary to grant to Landlord, its agents and
independent contractors clearance and access by means of the Security System for
the purposes herein set out.
(b) Any work performed or installations made pursuant to this Article
15 shall be made with reasonable diligence and otherwise pursuant to Section
6.3.
(c) Any pipes, ducts, or conduits installed in or through the Premises
pursuant to this Article 15 shall, if reasonably practicable, either be
concealed behind, beneath or within
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partitioning, columns, ceilings or floors located or to be located in the
Premises, or completely furred at points immediately adjacent to partitioning,
columns or ceilings located or to be located in the Premises.
Section 15.2. If Tenant is not present when for any reason entry into
the Premises may be necessary or permissible, Landlord or Landlord's agents may
enter the same without rendering Landlord or such agents liable therefor (if
during such entry Landlord or Landlord's agents accord reasonable care to
Tenant's Property), and without in any manner affecting this Lease.
Section 15.3. All parts (except surfaces facing the interior of the
Premises) of all walls, windows and doors bounding the Premises (including
exterior Building walls, exterior core corridor walls, exterior doors and
entrances), all balconies, terraces and roofs adjacent to the Premises, all
space in or adjacent to the Premises used for shafts, stacks, stairways, chutes,
pipes, conduits, ducts, fan rooms, heating, air cooling, plumbing and other
mechanical facilities, service closets and other Building facilities are not
part of the Premises, and Landlord shall have the use thereof, as well as access
thereto through the Premises for the purposes of operation, maintenance,
alteration and repair.
ARTICLE XVI
CERTIFICATE OF OCCUPANCY
Section 16.1. Tenant shall not at any time use or occupy the Premises
in violation of the certificate of occupancy at such time issued for the
Premises or for the Building and in the event that any Governmental Authority
hereafter contends or declares by notice, violation, order or in any other
manner whatsoever that the Premises are used by Tenant for a purpose that is a
violation of such certificate of occupancy, Tenant shall, upon three (3)
Business Days' written notice from Landlord or any Government Authority,
immediately discontinue such use of the Premises; provided, however, that
nothing herein shall prevent Tenant from contesting such violation pursuant to
and in accordance with the provisions of Section 8.5.
ARTICLE XVII
DEFAULT
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Section 17.1. Each of the following events shall be an "Event of
Default" under this Lease:
(a) if Tenant shall on any occasion default in the payment
when due of any installment of Fixed Rent or in the payment when due of
any other item of Rental and the same shall not be cured within five
(5) days after written notice of default by Landlord to Tenant; or
(b) if Tenant shall fail on three (3) or more occasions in any
period of eighteen (18) consecutive months to make a payment when due
of any Rental, and Landlord shall have given Tenant written notice of
such default after two (2) such occurrences; or
(c) if Tenant shall default in the observance or performance
of any term, covenant or condition on Tenant's part to be observed or
performed under that certain Agreement of Lease of even date herewith
between Landlord and Tenant with respect to Building No. 1, or any
renewal, modification or extension thereof, and such default shall
continue beyond any grace period set forth in such other lease for the
remedying of such default; or
(d) if the Premises shall become vacant or abandoned; or
(e) if Tenant's interest in this Lease shall devolve upon or
pass to any person, whether by operation of law or otherwise, except as
expressly permitted under Article 14 hereof; or
(f) (1) if Tenant shall not, or shall be unable to, or shall
admit in writing Tenant's inability to, as to any obligation,
pay Tenant's debts as they become due; or
(2) if Tenant shall commence or institute any case,
proceeding or other action (a) seeking relief on Tenant's
behalf as debtor, or to adjudicate it a bankrupt or insolvent,
or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other
relief with respect to Tenant or Tenant's debts under any
existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors, or (b) seeking appointment of a
54
receiver, trustee, custodian or other similar official for it
or for all or any substantial part of its property; or
(3) if Tenant shall make a general assignment for the
benefit of creditors; or
(4) if any case, proceeding or other action shall be
commenced or instituted against Tenant (a) seeking to have an
order for relief entered against Tenant as debtor or to
adjudicate Tenant a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with
respect to Tenant or Tenant's debts under any existing or
future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of
debtors, or (b) seeking appointment of a receiver, trustee,
custodian or other similar official for Tenant or for all or
any substantial part of Tenant's property, which either (i)
results in any such entry of an order for relief, adjudication
of bankruptcy or insolvency or such an appointment or the
issuance or entry of any other order having a similar effect
or (ii) remains undismissed for a period of sixty (60) days;
or
(5) if a trustee, receiver or other custodian shall
be appointed for any substantial part of the assets of Tenant
which appointment is not vacated or effectively stayed within
sixty (60) days; or
(g) if Tenant shall default in the observance or performance
of any other term, covenant or condition of this Lease on Tenant's part
to be observed or performed and Tenant shall fail to remedy such
default within fifteen (15) days after notice by Landlord to Tenant of
such default, or if such default is of such a nature that it cannot
with due diligence be completely remedied within said period of fifteen
(15) days and the continuation of which for the period required for
cure will not subject Landlord to the risk of criminal liability or
foreclosure of any Mortgage, if Tenant shall not, (i) within said
fifteen (15) day period advise Landlord of Tenant's intention duly to
institute all steps necessary to remedy such situation, (ii) duly
institute within said fifteen (15) day period, and thereafter
diligently and continuously prosecute to
55
completion all steps necessary to remedy the same and (iii) complete
such remedy within such time after the date of the giving of said
notice by Landlord as shall reasonably be necessary.
Section 17.2. If an Event of Default shall occur, Landlord may, at any
time thereafter, at Landlord's option, give written notice to Tenant stating
that this Lease and the Term shall expire and terminate on the date specified in
such notice, which date shall not be less than three (3) days after Tenant's
receipt of such notice, or such longer term as specified in the notice,
whereupon this Lease and the Term and all rights of Tenant under this Lease
shall automatically expire and terminate as if the date specified in the notice
given pursuant to this Section 17.2 were the Fixed Expiration Date and Tenant
immediately shall quit and surrender the Premises, but Tenant shall remain
liable for damages as provided herein or pursuant to law. Anything contained
herein to the contrary notwithstanding, if such termination shall be stayed by
order of any court having jurisdiction over any proceeding described in Section
17.1(f), or by federal or state statute, then, following the expiration of any
such stay, or if the trustee appointed in any such proceeding, Tenant or Tenant
as debtor-in-possession fails to assume Tenant's obligations under this Lease
within the period prescribed therefor by law or within one hundred twenty (120)
days after entry of the order for relief or as may be allowed by the court, or
if said trustee, Tenant or Tenant as debtor-in-possession shall fail to provide
adequate protection of Landlord's right, title and interest in and to the
Premises or adequate assurance of the complete and continuous future performance
of Tenant's obligations under this Lease, Landlord, to the extent permitted by
law or by leave of the court having jurisdiction over such proceeding, shall
have the right, at its election, to terminate this Lease on three (3) days'
prior written notice to Tenant, Tenant as debtor-in possession or said trustee
and upon the expiration of said three (3) day period this Lease shall cease and
expire as aforesaid and Tenant, Tenant as debtor-in-possession or said trustee
shall immediately quit and surrender the Premises as aforesaid.
Section 17.3. If, at any time, (i) Tenant shall consist of two (2) or
more persons, or (ii) Tenant's obligations under this Lease shall have been
guaranteed by any person other than Tenant, or (iii) Tenant's interest in this
Lease has been assigned, the word "Tenant" as used in Section 17.1(f), shall be
deemed to mean any one or more of the persons primarily or secondarily liable
for Tenant's obligations under this Lease. Any monies received
56
by Landlord from or on behalf of Tenant during the pendency of any proceeding of
the types referred to in Section 17.1(f) shall be deemed paid as compensation
for the use and occupancy of the Premises and the acceptance of any such
compensation by Landlord shall not be deemed an acceptance of Rental or a waiver
on the part of Landlord of any rights under Section 17.2.
ARTICLE XVIII
REMEDIES AND DAMAGES
Section 18.1. (a) If any Event of Default shall occur, or this Lease
and the Term shall expire and come to an end as provided in Article 17:
6. Tenant shall quit and peacefully surrender the Premises to
Landlord, and Landlord and its agents may immediately, or at any time
after such Event of Default or after the date upon which this Lease and
the Term shall expire and come to an end, re-enter the Premises or any
part thereof, without notice, either by summary proceedings, or by any
other applicable action or proceeding or otherwise (without being
liable to indictment, prosecution or damages therefor), but excluding
by force, and may repossess the Premises and dispossess Tenant and any
other persons from the Premises by summary proceedings or otherwise
(excluding by force) and remove any and all of their property and
effects from the Premises (and Tenant shall remain liable for damages
as provided herein or pursuant to law); and
7. Landlord, at Landlord's option, may relet the whole or any
part or parts of the Premises from time to time, either in the name of
Landlord or otherwise, to such tenant or tenants, for such term or
terms ending before, on or after the Fixed Expiration Date, at such
rent or rentals and upon such other conditions, which may include
concessions and free rent periods, as Landlord, in Landlord's sole
discretion, may determine; provided, however, that Landlord shall have
no obligation to relet the Premises or any part thereof and shall in no
event be liable for refusal or failure to relet the Premises or any
part thereof, or, in the event of any such reletting, for refusal or
failure to collect any rent due upon any such reletting, and no such
refusal or failure shall operate to relieve Tenant of any liability
under this Lease or otherwise affect any such liability, and Landlord,
at Landlord's option, may make such Alterations, in and to the Premises
as Landlord,
57
in Landlord's sole discretion, shall consider advisable or necessary in
connection with any such reletting or proposed reletting, without
relieving Tenant of any liability under this Lease or otherwise
affecting any such liability.
(b) Tenant hereby waives the service of any notice of intention to
re-enter that may otherwise be required to be given under any present or future
law. Tenant, on its own behalf and on behalf of all persons claiming through or
under Tenant, including all creditors, does further hereby waive any and all
rights that Tenant and all such persons might otherwise have under any present
or future law to redeem the Premises, or to re-enter or repossess the Premises,
or to restore the operation of this Lease, after (1) Tenant shall have been
dispossessed by a judgment or by warrant of any court or judge, or (2) any
reentry by Landlord, or (3) any expiration or termination of this Lease and the
Term, whether such dispossess, re-entry, expiration or termination is by
operation of law or pursuant to the provisions of this Lease.
The words "re-entry," "re-enter" and "re-entered" as used in this Lease
shall not be deemed to be restricted to their technical legal meanings.
In the event of a breach or threatened breach by Tenant, or any persons
claiming through or under Tenant, of any term, covenant or condition of
this Lease, Landlord shall have the right to enjoin such breach and the
right to invoke any other remedy allowed by law or in equity as if
reentry, summary proceedings and other special remedies were not
provided in this Lease for such breach. The right to invoke the
remedies hereinbefore set forth are cumulative and shall not preclude
Landlord from invoking any other remedy allowed at law or in equity.
Section 18.2. (a) If this Lease and the Term shall expire and come to
an end as provided in Article 18, or by or under any summary proceeding or any
other action or proceeding, or if Landlord shall re-enter the Premises as
provided in Section 18.1, or by or under any summary proceeding or any other
action or proceeding, then, in any of said events:
1. Tenant shall pay to Landlord all Fixed Rent, Escalation
Rent, other Additional Rent and other items of Rental payable under
this Lease by Tenant to Landlord to the date upon which this Lease and
the Term shall have expired and come to an end or to the date of
re-entry upon the Premises by Landlord, as the case may be;
58
2. Tenant also shall be liable for and shall pay to Landlord,
as damages, any deficiency ("Deficiency") between the Rental for the
period which otherwise would have constituted the unexpired portion of
the Term and the net amount, if any, of rents collected under any
reletting effected pursuant to the provisions of Section 18.1(a)(2) for
any part of such period (after first deducting from the rents collected
under any such reletting all of Landlord's expenses in connection with
the termination of this Lease, Landlord's reentry upon the Premises and
such reletting including, but not limited to, all repossession costs,
brokerage commissions, attorneys' fees and disbursements, alteration
costs and other expenses of preparing the Premises for such reletting);
any such Deficiency shall be paid in monthly installments by Tenant on
the days specified in this Lease for payment of installments of Fixed
Rent; Landlord shall be entitled to recover from Tenant each monthly
Deficiency as the same shall arise, and no suit to collect the amount
of the Deficiency for any month shall prejudice Landlord's right to
collect the Deficiency for any subsequent month by a similar
proceeding; and
3. whether or not Landlord shall have collected any monthly
Deficiency as aforesaid, Landlord shall be entitled to recover from
Tenant, and Tenant shall pay to Landlord, on demand, in lieu of any
further Deficiency as and for liquidated and agreed final damages, a
sum equal to the amount by which the unpaid Rental for the period which
otherwise would have constituted the unexpired portion of the Term
exceeds the then fair and reasonable rental value of the Premises for
the same period, both discounted to present worth at the Base Rate; if,
before presentation of proof of such liquidated damages to any court,
commission or tribunal, the Premises, or any part thereof, are relet by
Landlord for the period which otherwise would have constituted the
unexpired portion of the Term, or any part thereof, the amount of rent
reserved upon such reletting shall be deemed, prima facie, to be the
fair and reasonable rental value for the part or the whole of the
Premises so relet during the term of the reletting.
(b) Tenant shall in no event be entitled to any rents collected or
payable under any reletting, whether or not such rents exceed the Fixed Rent
reserved in this Lease. Solely for the purposes of this Article 18, the term
"Escalation Rent" as used in Section 18.2(a) shall mean the Escalation Rent in
effect immediately prior to the Expiration Date, or the date of re-entry
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upon the Premises by Landlord, as the case may be, adjusted to reflect any
increase pursuant to the provisions of Article 3 hereof for the Operating Year
immediately preceding such event. Nothing contained in Article 17 or this
Article 18 shall be deemed to limit or preclude the recovery by Landlord from
Tenant of the maximum amount allowed to be obtained as damages by any statute or
rule of law, or of any sums or damages to which Landlord may be entitled in
addition to the damages set forth in this Section 18.2.
ARTICLE XIX
FEES AND EXPENSES
Section 19.1. If an Event of Default shall have occurred, Landlord may
(a) perform the obligations of Tenant for the account of Tenant, or (b) make any
expenditure or incur any obligation for the payment of money in connection with
any obligation owed by Tenant to Landlord, including, but not limited to,
reasonable attorneys' fees and disbursements in instituting, prosecuting or
defending any action or proceeding arising out of such Event of Default, and in
either case the cost thereof, with interest thereon at the Applicable Rate,
shall be deemed to be Additional Rent hereunder and shall be paid by Tenant to
Landlord within ten (10) days after rendition of any xxxx or statement to Tenant
therefor.
Section 19.2. If Tenant shall fail to pay any installment of Fixed
Rent, Additional Rent or any other item of Rental for a period longer than five
(5) days after the same shall have become due, Tenant shall pay to Landlord, in
addition to such installment of Fixed Rent, Additional Rent or other item of
Rental, as the case may be, as a late charge and as Additional Rent, a sum equal
to interest at the Applicable Rate on the amount unpaid, computed from the date
such payment was due, without regard to any such grace period, to and including
the date of payment.
ARTICLE XX
NO REPRESENTATIONS BY LANDLORD
Section 20.1. Landlord and Landlord's agents have made no
representations or promises with respect to the Building, the Real Property or
the Premises except as herein expressly set forth, and no rights, easements or
licenses are acquired by Tenant by implication or otherwise except as expressly
set forth
60
herein. Tenant shall accept possession of the Premises in its "AS IS" condition
on the Commencement Date, and Landlord shall have no obligation to perform any
work or make any installations in order to prepare the Premises for Tenant's
occupancy. The taking of occupancy of the whole or any part of the Premises by
Tenant shall be conclusive evidence, as against Tenant, that Tenant accepts
possession of the same and that the Premises and the Building were in good and
satisfactory condition at the time such occupancy was so taken. All references
in this Lease to the consent or approval of Landlord shall be deemed to mean the
written consent or approval executed by Landlord and no other consent or
approval of Landlord shall be effective for any purpose whatsoever.
ARTICLE XXI
END OF TERM
Section 21.1. Upon the expiration or other termination of this Lease,
Tenant shall quit and surrender to Landlord the Premises, vacant, broom clean,
in good order and condition, ordinary wear and tear excepted, and Tenant shall
remove all of Tenant's Alterations as may be required pursuant to Article 5.
Tenant shall also remove all of Tenant's Property and all other personal
property and personal effects of all persons claiming through or under Tenant,
and shall pay the cost of repairing all damage to the Premises and the Real
Property occasioned by such removal. Any Tenant's Property or other personal
property that remains in the Premises after the termination of this Lease shall
be deemed to have been abandoned and either may be retained by Landlord as its
property or may be disposed of in such manner as Landlord may see fit. If such
Tenant's Property or other personal property or any part thereof is sold,
Landlord may receive and retain the proceeds of such sale as the property of
Landlord. Any expense incurred by Landlord in removing or disposing of such
Tenant's Property or other personal property or Alterations required to be
removed as provided in Article 5, as well as the cost of repairing all damage to
the Building or the Premises caused by such removal, shall be reimbursed to
Landlord by Tenant, as Additional Rent, on demand.
Section 21.2. If the Expiration Date falls on a day which is not a
Business Day, then Tenant's obligations under Section 21.1 shall be performed on
or prior to the immediately preceding Business Day.
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Section 21.3. If the Premises are not surrendered upon the expiration
or other termination of this Lease, Tenant hereby indemnifies Landlord against
liability resulting from delay by Tenant in so surrendering the Premises,
including any claims made by any succeeding tenant or prospective tenant founded
upon such delay and agrees to be liable to Landlord for (i) any payment or rent
concession which Landlord may be required to make to any tenant obtained by
Landlord for all or any part of the Premises in order to induce such tenant not
to terminate its lease by reason of the holding-over by Tenant and (ii) the loss
of the benefit of the bargain if any such tenant shall terminate its lease by
reason of the holding-over by Tenant.
Section 21.4. Tenant's obligation under this Article shall survive the
expiration or termination of this Lease for a period ending six (6) months after
the end of the calendar year in which the Expiration Date falls.
ARTICLE XXII
POSSESSION
Section 22.1. Tenant acknowledges that it is in possession of the
Premises as of the Commencement Date (Tenant being the prior owner of the Real
Property and Building) and that no further act on Landlord's part is required as
a condition to commencement of the Term of this Lease.
ARTICLE XXIII
NO WAIVER
Section 23.1 No act or thing done by Landlord or Landlord's agents
during the Term shall be deemed an acceptance of a surrender of the Premises,
and no agreement to accept such surrender shall be valid unless in writing
signed by Landlord. Only an executive officer of Landlord shall have the power
to accept surrender of the Premises prior to the termination of this Lease.
Section 23.2. The failure of Landlord to seek redress for violation of,
or to insist upon the strict performance of, any covenant or condition of this
Lease, or any of the Rules and Regulations, shall not prevent a subsequent act,
which would have originally constituted a violation, from having all of the
force and effect of an original violation. The receipt by Landlord of Fixed
Rent, Additional Rent or any other item of Rental with
62
knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach. The failure of Landlord to enforce any of the Rules and
Regulations against Tenant or any other tenant of the Real Property or the
Adjacent Property shall not be deemed a waiver of any such Rules and
Regulations. No provision of this Lease shall be deemed to have been waived by
Landlord, unless such waiver shall be in writing and shall be signed by
Landlord. No payment by Tenant or receipt by Landlord of a lesser amount than
the Rental then due and payable shall be deemed to be other than on account of
the earliest item(s) of Rental, or as Landlord may elect to apply the same, nor
shall any endorsement or statement on any check or any letter accompanying any
check or payment be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord's right to recover the
balance due of the Rental or pursue any other remedy in this Lease provided.
This Lease contains the entire agreement between the parties and all prior
negotiations and agreements are merged herein. Any executory agreement hereafter
made shall be ineffective to change, discharge or effect an abandonment of this
Lease in whole or in part unless such executory agreement is in writing and
signed by the party against whom enforcement of the change, discharge or
abandonment is sought.
ARTICLE XXIV
WAIVER OF TRIAL BY JURY
Section 24.1. LANDLORD AND TENANT SHALL AND THEY HEREBY DO WAIVE TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM
AGAINST THE OTHER 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, WHETHER DURING OR AFTER THE TERM, OR FOR THE
ENFORCEMENT OF ANY REMEDY UNDER ANY STATUTE, EMERGENCY OR OTHERWISE.
ARTICLE XXV
INABILITY TO PERFORM
Section 25.1. This Lease and the obligation of Tenant to pay Rental
hereunder and to perform all of the other covenants and agreements hereunder on
the part of Tenant to be performed shall in no way be affected, impaired or
excused because Landlord is unable to fulfill any of Landlord's obligations
under this Lease, expressly or implicitly to be performed by Landlord, or
63
because Landlord is unable to make or is delayed in making any repairs,
additions, alterations, improvements or decorations, or is unable to supply or
is delayed in supplying any services, equipment or fixtures, if Landlord is
prevented from or delayed in so doing by reason of acts of God, casualty,
strikes or labor troubles, accident, governmental preemption in connection with
an emergency, Requirements, Restrictive Covenants, conditions of supply and
demand which have been or are affected by war or other emergency, or any other
cause whatsoever, whether similar or dissimilar to the foregoing, beyond
Landlord's reasonable control ("Unavoidable Delays").
Section 25.2 Notwithstanding anything to the contrary set forth in this
Lease, Landlord shall not be liable for any cessation and/or interruption of
services to the Premises caused by failure of any Building Systems or other
computerized functions affecting use or occupancy of the Premises to be able to
perform properly date-sensitive functions for dates leading up to or following
January 1, 2000 (that is, to be Year 2000 compliant), nor shall any such failure
constitute an eviction or constructive eviction or give rise to abatement of
Rental.
ARTICLE XXVI
BILLS AND NOTICES
Section 26.1. (a) Except as otherwise expressly provided in this Lease,
any bills, statements, consents, notices, demands, requests or other
communications given or required to be given under this Lease ("Notice(s)")
shall be in writing and shall be deemed sufficiently given or rendered if
delivered by hand, or if sent by a nationally-recognized overnight courier
service, delivery cost prepaid, marked for next-day delivery, or if deposited in
a postage prepaid envelope in a depository that is regularly maintained by the
U.S. Postal Service, sent by registered or certified mail (return receipt
requested) and in either case addressed:
(i) if to Tenant, to Harrah's Operating Company, Inc., 0000
Xxxx Xxxxxx Xxxxxxxxx, Xxxxx 000, Xxx Xxxxx, Xxxxxx 00000, Attention:
Office of the President and with a copy to Harrah's Operating Company,
Inc., 0000 Xxxx Xxxxxx Xxxxxxxxx, Xxxxx 000, Xxx Xxxxx, Xxxxxx 00000,
Attention: General Counsel, or
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(ii) if to Landlord, at Landlord's address set forth in the
first paragraph of this Lease, with a copy to Baker, Donelson, Bearman
& Xxxxxxxx, 2000 First Tennessee Building, 000 Xxxxxxx Xxxxxx, Xxxxxxx,
Xxxxxxxxx 00000, Attn: Xxxxx X. Xxxxxx, Xx., and with a copy to any
Mortgagee who may have requested the same, by Notice given in
accordance with the provisions of this Article 26, at the address
designated by such Mortgagee, or
to such other address(es) as either Landlord or Tenant may designate as its new
address(es) for such purpose by notice given to the other in accordance with the
provisions of this Article 26.
(b) Notices shall be deemed to have been rendered or given (i) on the
date delivered, if delivered by hand, or (ii) the day after shipment, if sent by
overnight courier service, or (iii) three (3) days after mailing, if mailed as
provided in Section 26.1(a). Notice given by counsel for either party on behalf
of such party or by the Manager on behalf of Landlord shall be deemed valid
notices if addressed and sent in accordance with the provisions of this Article.
Section 26.2. Notwithstanding the provisions of Section 26.1, Notices
requesting services for Overtime Periods pursuant to Article 27 may be given by
delivery to the Building Manager or any other person in the Building designated
by Landlord to receive such Notices, and bills may be rendered by delivering
them to the Premises.
ARTICLE XXVII
SERVICES AND EQUIPMENT
Section 27.1. Landlord shall, at Landlord's expense:
(a) Provide passenger elevator service to the Premises on Business Days
during Operating Hours and, subject to Section 27.3, have one passenger elevator
on call at all other times.
(b) Furnish and distribute to the Premises, through the HVAC System,
during Operating Hours, air-conditioning, and heat or ventilation, as needed;
provided that Tenant shall, at all times, cooperate fully with Landlord and
abide by all of the Rules and Regulations which Landlord may prescribe for the
proper functioning of the HVAC System. Tenant hereby expressly waives any claims
against Landlord arising out of the cessation of
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operation of the HVAC System, or the suitability of the Premises when the same
is not in operation, whether due to normal scheduling or the reasons set forth
in Section 27.3. Landlord will not be responsible for the failure of the HVAC
System if such failure results from the occupancy of the Premises by more
persons than the number of persons for which HVAC System is designed. If Tenant
occupies the Premises at an occupancy rate of greater than that for which the
HVAC System was designed, or if Tenant's partitions are arranged in such a way
as to interfere with the normal operation of the HVAC System, Landlord may elect
to make changes to the HVAC System or the ducts through which it operates
required by reason thereof, and the cost thereof shall be reimbursed by Tenant
to Landlord as Additional Rent within ten (10) days after presentation of a xxxx
therefor. Landlord, throughout the Term, shall have free access to all
mechanical installations of Landlord, including but not limited to air cooling,
fan, ventilating and machine rooms and electrical closets, and Tenant shall not
construct partitions or other obstructions that may interfere with Landlord's
free access thereto, or interfere with the moving of Landlord's equipment to and
from the enclosures containing said installations. Neither Tenant nor its
agents, employees or contractors shall at any time enter the said enclosures or
tamper with, adjust, touch or otherwise in any manner affect said mechanical
installations. Landlord's obligations under this Section 27.1 and under Section
27.2 are subject to applicable Requirements that may limit the hours or the
extent to which Landlord is permitted to supply HVAC.
(c) Furnish hot and cold water for ordinary drinking, cleaning and
lavatory purposes.
(d) Provided Tenant shall keep the Premises in order, Landlord, at
Landlord's expense, shall cause the Premises, excluding any portions thereof
used as secured areas, to be cleaned on Business Days in accordance with the
cleaning specifications annexed to this Lease as Exhibit "D." If, however, any
additional cleaning of the Premises is to be done by Tenant, it shall be done at
Tenant's sole expense, in a manner reasonably satisfactory to Landlord and no
one other than persons approved by Landlord shall be permitted to enter the
Premises or the Building for such purpose. Tenant shall pay to Landlord the cost
of removal of any of Tenant's refuse and rubbish from the Premises and the
Building (i) to the extent that the same, in any one day, exceeds the average
daily amount of refuse and rubbish usually attendant upon the use of such
Premises as offices, as described and included in Landlord's cleaning contract
for the
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Building or recommended by Landlord's cleaning contractor, and (ii) related to
or deriving from the preparation or consumption of food or drink. Bills for the
same shall be rendered by Landlord to Tenant at such time as Landlord may elect
and shall be due and payable as Additional Rent within ten (10) days after the
time rendered.
Section 27.2. Landlord reserves the right to stop the furnishing of the
Building services and to stop service of the Building Systems, when necessary,
by reason of accident, or emergency, or for Alterations in the judgment of
Landlord desirable or necessary to be made, until said Alterations shall have
been completed; and Landlord shall have no responsibility or liability for
failure to supply air-conditioning, ventilation, heat, elevator, plumbing,
electric, or other services during said period or when prevented from so doing
by strikes, lockouts, difficulty of obtaining materials, accidents or by any
cause beyond Landlord's reasonable control, or by Requirements or failure of
electricity, water, steam, coal, oil or other suitable fuel or power supply, or
inability by exercise of reasonable diligence to obtain electricity, water,
steam, coal, oil or other suitable fuel or power. No diminution or abatement of
rent or other compensation shall or will be claimed by Tenant as a result
therefrom, nor shall this Lease or any of the obligations of Tenant be affected
or reduced by reason of such interruption, curtailment or suspension, nor shall
the same constitute an actual or constructive eviction; provided, however, that
if the cessation is caused by Landlord and continues for more than three (3)
days, then Fixed Rent shall xxxxx on a per diem basis from the fourth (4th) day
until Landlord restores the Building services.
Section 27.3. Tenant agrees to abide by all requirements which Landlord
may prescribe for the proper protection and functioning of its Building Systems
and the furnishing of the Building services. Tenant further agrees to cooperate
with Landlord in any conservation effort pursuant to a program or procedure
promulgated or recommended by ASHRAE or any Requirements.
ARTICLE XXVIII
[RESERVED]
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ARTICLE XXIX
[RESERVED]
ARTICLE XXX
SIGNS
Section 30.1. Landlord may replace the signs at the main entrance which
serves the Real Property and Adjacent Property with signs which identify the
businesses on both such properties, and may install signage at the driveway
intersections on the Real Property and Adjacent Property which direct traffic to
the appropriate businesses and parking area, all at Tenant's reasonable cost and
expense, except that Landlord shall pay for signs with respect to the Adjacent
Property. The location, size, materials, quality, design, color and lettering of
any signs desired by Tenant shall be subject to the prior approval of Landlord
and shall be in compliance with the standards set forth in Tenant Design and
Construction Standards.
ARTICLE XXXI
BROKER
Section 31.1. Landlord represents and warrants to Tenant that Landlord
has not dealt with any broker or other Person who might claim a leasing
commission in connection with this Lease other than the Broker(s). Landlord
acknowledges that it is solely responsible to pay the leasing commissions due to
the Broker in connection with the execution of this Lease. Tenant represents and
warrants to Landlord that Tenant has not dealt with any broker or other Person
who might claim a leasing commission in connection with this Lease. The
execution and delivery of this Lease by Tenant shall be conclusive evidence that
Tenant acknowledges that Landlord has relied upon the foregoing representation
and warranty. Tenant shall indemnify and hold harmless Landlord from and against
any and all claims for commission, fee or other compensation by any Person
(other than Broker) who claims to have dealt with Tenant in connection with this
Lease and for any and all costs incurred by Landlord in connection with such
claims, including, without limitation, attorneys' fees and disbursements. The
execution and delivery of this Lease by Landlord shall be conclusive evidence
that Landlord acknowledges that Tenant has relied upon the foregoing
representation and warranty. Landlord shall indemnify and hold harmless Tenant
from and against any and all claims for
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commission, fee or other compensation by any Person (including Broker) who
claims to have dealt with Landlord in connection with this Lease and for any and
all costs incurred by Tenant in connection with such claims, including, without
limitation, attorneys' fees and disbursements. This provision shall survive the
expiration or earlier termination of this Lease.
ARTICLE XXXII
INDEMNITY
Section 32.1. Tenant shall indemnify and save harmless the Landlord
Indemnitees from and against (a) all claims of third parties of whatever nature
against the Landlord Indemnitees arising from any act, omission or negligence of
Tenant or Persons Within Tenant's Control, (b) all claims of third parties
against the Landlord Indemnitees arising from any accident, injury or damage
whatsoever caused to any such third party or such party's property and occurring
in or about the Premises during the Term or during Tenant's occupancy of the
Premises, unless and to the extent caused by the negligence or willful
misconduct of Landlord or its principals, officers or employees, (c) all claims
of third parties against the Landlord Indemnitees arising from any accident,
injury or damage occurring outside of the Premises but anywhere within or about
the Real Property, where such accident, injury or damage results or is claimed
to have resulted from an act, omission or negligence of Tenant or Persons Within
Tenant's Control, and (d) any breach, violation or non-performance of any
covenant, condition or agreement contained in this Lease to be fulfilled, kept,
observed and performed by Tenant except as otherwise provided in this Lease;
provided, however, that the indemnity and save harmless provision set out in
this Section 32.1 and 32.2 shall have no effect to the extent that the Landlord
Indemnitees are protected by insurance maintained under the provisions of
Article XI hereof. This indemnity and hold harmless agreement shall include
indemnity from and against any and all liability, fines, suits, demands, costs
and expenses of any kind or nature (including, without limitation, attorneys'
fees and disbursements) incurred in or in connection with any such claim or
proceeding brought thereon, and the defense thereof.
Section 32.2. If any claim, action or proceeding is made or brought
against any Landlord Indemnitee, against which claim, action or proceeding
Tenant is obligated to indemnify such Landlord Indemnitee pursuant to the terms
of this Lease, then, upon demand by the Landlord Indemnitee, Tenant, at its sole
cost
69
and expense, shall resist or defend such claim, action or proceeding in the
Landlord Indemnitee's name, if necessary, by such attorneys as the Landlord
Indemnitee may select. The provisions of this Article 32 shall survive the
expiration or earlier termination of this Lease.
Section 32.3 Landlord shall indemnify and save harmless the Tenant
Indemnitees from and against (a) all claims of third parties of whatever nature
against the Tenant Indemnitees arising from any act, omission or negligence of
Landlord or Persons Within Landlord's Control, (b) all claims of third parties
against the Tenant Indemnitees arising from any accident, injury or damage
whatsoever caused to any such third party or such party's property and occurring
in or about the Premises during the Term or during Tenant's occupancy of the
Premises where such accident, injury or damage results or is claimed to have
resulted from an act or omission or negligence of Landlord or Persons Within
Landlord's Control, (c) all claims of third parties against the Tenant
Indemnitees arising from any accident, injury or damage occurring outside of the
Premises but anywhere within or about the Real Property, unless and to the
extent caused by the negligence or willful misconduct of Tenant or its
principals, officers or employees, and (d) any breach, violation or
non-performance of any covenant, condition or agreement in this Lease to be
fulfilled, kept, observed and performed by Tenant, except as otherwise provided
in this Lease; provided, however, that the indemnity and save harmless provision
set out in this Section 32.3 and 32.4 shall have no effect to the extent that
Tenant Indemnitees are protected by insurance maintained under the provisions of
Article XI hereof. This indemnity and hold harmless agreement shall include
indemnity from and against any and all liability, fines, suits, demands, costs
and expenses of any kind or nature (including, without limitation, attorneys'
fees and disbursements) incurred in or in connection with any such claim or
proceeding brought thereon, and the defense thereof.
Section 32.4 If any claim, action or proceeding is made or brought
against any Tenant Indemnitee, against which claim, action or proceeding
Landlord is obligated to indemnify such Tenant Indemnitee pursuant to the terms
of this Lease, then, upon demand by the Tenant Indemnitee, Landlord, at its sole
cost and expense, shall resist or defend such claim, action or proceeding in the
Tenant Indemnitee's name, if necessary, by such attorneys as the Tenant
Indemnitee may select. The provisions of this Article 32 shall survive the
expiration or earlier termination of this Lease.
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ARTICLE XXXIII
[RESERVED]
ARTICLE XXXIV
[RESERVED]
ARTICLE XXXV
[RESERVED]
ARTICLE XXXVI
COVENANT OF QUIET ENJOYMENT
Section 36.1. Landlord covenants that, upon Tenant paying the Fixed
Rent and Additional Rent and observing and performing all the terms, agreements,
covenants, provisions and conditions of this Lease on Tenant's part to be
observed and performed, Tenant may peaceably and quietly enjoy the Premises,
subject nevertheless to the terms and conditions of this Lease; provided,
however, that no impairment or deprivation of Tenant's use of the Premises which
results from a violation of Restrictive Covenants shall be construed as a breach
of this covenant nor permit abatement of Rental due hereunder unless such
violation results from acts or neglect of Landlord in which Tenant played no
part; provided further that no eviction of Tenant by reason of the foreclosure
of any Mortgage now or hereafter affecting the Premises, shall be construed as a
breach of this covenant nor shall any action by reason thereof be brought
against Landlord; and provided further that this covenant shall bind and be
enforceable against Landlord or any successor to Landlord's interest, subject to
the terms hereof, only so long as Landlord or any successor to Landlord's
interest, is in possession and is collecting rent from Tenant but not
thereafter.
ARTICLE XXXVII
MISCELLANEOUS
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Section 37.1. Landlord retains all air rights over the Premises. Tenant
may not place anything on or attach anything to the roof of the Premises without
first obtaining Landlord's written consent, which consent may be granted or
withheld in Landlord's reasonable discretion.
Section 37.2. The obligations of Landlord under this Lease shall not be
binding upon Landlord named herein after the sale, conveyance, assignment or
transfer by such Landlord (or upon any subsequent landlord after the sale,
conveyance, assignment or transfer by such subsequent landlord) of its interest
in the Building or the Real Property, as the case may be, and in the event of
any such sale, conveyance, assignment or transfer, Landlord shall be and hereby
is entirely freed and relieved of all covenants and obligations of Landlord
under this Lease thereafter arising, and the transferee shall be deemed to have
assumed, subject to the remaining provisions of this Section 37.2, all
obligations of the Landlord under this Lease arising after the effective date of
the transfer. No trustee, partner, shareholder, director or officer of Landlord,
or of any partner or shareholder of Landlord (collectively, the "Parties") shall
have any direct or personal liability for the performance of Landlord's
obligations under this Lease, and Tenant shall look solely to Landlord's
interest in the Building to enforce Landlord's obligations hereunder and shall
not otherwise seek any damages against Landlord personally or any of the Parties
whatsoever.
Section 37.3. [RESERVED]
Section 37.4. The parties shall prepare and sign a suitable memorandum
of this Lease for recordation. This Lease shall not be recorded.
Section 37.5. Except as otherwise expressly stated in this Lease, any
consent or approval required to be obtained from Landlord may be granted by
Landlord in its sole discretion.
Section 37.6. [RESERVED]
Section 37.7. If Tenant shall remain in possession of the Premises
after the Expiration Date, without the execution by both Tenant and Landlord of
a new lease, Tenant, at the election of Landlord, shall be deemed to be
occupying the Premises as a Tenant from month-to-month, at a monthly rental
equal to one and one-half (1.5) times the Rental payable during the last month
of the Term, subject to all the other conditions, provisions and
72
obligations of this Lease insofar as the same are applicable to a month-to-month
tenancy.
Section 37.8. This Lease shall be construed without regard to any
presumption or other rule requiring construction against the party causing this
Lease to be drafted. If any words or phrases in this Lease are stricken out or
otherwise eliminated, whether or not any other words or phrases have been added,
this Lease shall be construed as if the words or phrases stricken out or
otherwise eliminated were never included in this Lease and no implication or
inference shall be drawn from the fact that such words or phrases were stricken
out or otherwise eliminated.
Section 37.9. [RESERVED]
Section 37.10. [RESERVED]
Section 37.11. If any of the provisions of this Lease, or the
application thereof to any person or circumstance, shall, to any extent, be
invalid or unenforceable, the remainder of this Lease, or the application of
such provisions to persons or circumstances other than those as to whom or which
it is held invalid or unenforceable, shall not be affected thereby and shall
remain valid and enforceable, and every provision of this Lease shall be valid
and enforceable to the fullest extent permitted by law.
Section 37.12. Landlord shall have the right to erect any gate, chain
or other obstruction or to close off any portion of the Real Property to the
public at any time to the extent necessary to prevent a dedication thereof for
public use.
Section 37.13. Tenant agrees that in all disputes arising directly or
indirectly out of this Lease Tenant shall be subject to service of process in,
and the jurisdiction of the courts of, the State of Tennessee. The provisions of
this Section 37.13 shall survive the expiration of this Lease.
Section 37.14. This Lease contains the entire agreement between the
parties and all prior negotiations and agreements are merged into this Lease.
Except as provided in Section 37.6, this Lease may not be changed, abandoned or
discharged, in whole or in part, nor may any of its provisions be waived except
by a written agreement that (a) expressly refers to this Lease, (b) is executed
by the party against whom enforcement of the change, abandonment, discharge or
waiver is sought, and (c) is permissible under the Mortgage(s).
73
Section 37.15. Any apportionment or prorations of Rental to be made
under this Lease shall be computed on the basis of a three hundred sixty (360)
day year, with twelve (12) months of thirty (30) days each.
Section 37.16. The laws of the State of Tennessee applicable to
contracts made and to be performed wholly within the State of Tennessee shall
govern and control the validity, interpretation, performance and enforcement of
this Lease.
Section 37.17. Tenant warrants and represents that it is duly
incorporated under the laws of the State of Delaware and is duly qualified to do
business in the State of Tennessee (a copy of evidence thereof to be supplied to
Landlord upon request); and that each person executing this Lease on behalf of
Tenant is an officer of Tenant and that he or she is duly authorized to execute,
acknowledge and deliver this Lease to Landlord (a copy of a resolution to that
effect to be supplied to Landlord upon request).
Section 37.18. The captions are inserted only as a matter of
convenience and for reference and in no way define, limit or describe the scope
of this Lease nor the intent of any provision thereof.
Section 37.19. The covenants, conditions and agreements contained in
this Lease shall bind and inure to the benefit of Landlord and Tenant and their
respective legal representatives, successors, and, except as otherwise provided
in this Lease, their assigns.
Section 37.20. For the purposes of this Lease and all agreements
supplemental to this Lease, unless the context otherwise requires:
(a) The words "herein", "hereof", "hereunder" and "hereby" and
words of similar import shall be construed to refer to this Lease as a
whole and not to any particular Article or Section unless expressly so
stated.
(b) Reference to "termination of this Lease" or "expiration of
this Lease" and words of like import includes expiration or sooner
termination of this Lease and the Term and the estate hereby granted or
cancellation of this Lease pursuant to any of the provisions of this
Lease or to law. Upon the termination of this Lease, the Term and
estate
74
granted by this Lease shall end at noon on the date of termination as
if such date were the Fixed Expiration Date, and neither party shall
have any further obligation or liability to the other after such
termination except (i) as shall be expressly provided for in this
Lease, and (ii) for such obligations as by their nature under the
circumstances can only be, or by the provisions of this Lease, may be,
performed after such termination, and, in any event, unless expressly
otherwise provided in this Lease, any liability for a payment (which
shall be apportioned as of such termination) which shall have accrued
to or with respect to any period ending at the time of termination
shall survive the termination of this Lease.
(c) Words and phrases used in the singular shall be deemed to
include the plural and vice versa, and nouns and pronouns used in any
particular gender shall be deemed to include any other gender.
75
Section 37.21. All exhibits attached to this Lease are incorporated
herein and Tenant agrees to execute Exhibit "H" upon Landlord's request without
unreasonable delay.
IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease
as of the day and year first above written.
RBM CHERRY ROAD PARTNERS, a
Tennessee general partnership
BY: RBM Venture Company, a
Delaware corporation, its
managing general partner
By: /s/ XXXXX XXXXXX
---------------------------------------------
Its: Vice President
---------------------------------------------
LANDLORD
XXXXXX'X OPERATING COMPANY, INC.
By: /s/ XXXXX X. XXXX
---------------------------------------------
Its: Chief Financial Officer
---------------------------------------------
TENANT
76
Exhibit "A"
Legal Description
PROPERTY LOCATED IN SHELBY COUNTY, TENNESSEE:
PARCEL I
BEING A PART OF THE XXXXXX'X ENTERTAINMENT, INC. CORPORATE HEADQUARTERS
P.D. AS RECORDED IN PLAT BOOK 155, PAGE 8, ALSO BEING A PART OF THE
HOLIDAY INNS, INC. PROPERTY AS RECORDED IN INSTRUMENT U7-2133 AT THE
SHELBY COUNTY REGISTER'S OFFICE, LOCATED IN MEMPHIS, TENNESSEE AND
BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT ON THE NORTH LINE OF HAVERHILL ROAD (50' R.O.W.),
25.15 FEET XXXX XX XXX XXXX XXXX XX XXXXXX XXXX (R.O.W. VARIES); THENCE
XXXXX XXXX XXXXX XXXX X00 00'00"X A DISTANCE OF 986.49 FEET TO A POINT
OF CURVATURE; THENCE ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF
257.02 FEET, AN ARC LENGTH OF 120.30 FEET, (CHORD X00 00'00"X - 119.20
FEET) TO A FOUND XXXX'X XXXX AT THE SOUTHEAST CORNER OF THE XXXX X. XXX
PROPERTY (INST. S9-0045); THENCE X00 00'00"X ALONG THE EAST LINE OF
SAID XXX PROPERTY A DISTANCE OF 163.78 FEET TO A POINT, SAID POINT
BEING THE NORTHEAST CORNER OF SAID XXXX X. XXX PROPERTY, ALSO BEING THE
XXXXXXXXX XXXXXX XX XXX 00, XXXXXXX XXXX SUBDIVISION (PB. 14, PG. 30);
THENCE ALONG THE EAST LINE OF SAID XXXXXXX XXXX XXXXXXXXXXX X0 00'00"X
A DISTANCE OF 579.13 FEET TO A POINT, SAID POINT BEING ON THE XXXX XXXX
XX XXX 00 XX XXXXXXX XXXX SUBDIVISION (PB. 14, PG. 30) AND 15.11 FEET
SOUTH OF THE NORTH LINE OF SAID LOT 26; THENCE ALONG THE FOLLOWING
COURSES AND DISTANCES: S59 52'06"E A DISTANCE OF 225.85 FEET TO A
POINT; THENCE X00 00'00"X A DISTANCE OF 48.67 FEET TO A POINT; THENCE
S86 44'15"E A DISTANCE OF 75.95 FEET TO A POINT; THENCE S3 15'45"W A
DISTANCE OF 27.58 FEET TO A POINT; THENCE S86 44'15"E A DISTANCE OF
173.28 FEET TO A POINT; THENCE X00 00'00"X A DISTANCE OF 188.13 FEET TO
A POINT; THENCE S89 37'17"E A DISTANCE OF 222.36 FEET TO A POINT;
THENCE N0 00'14"W A DISTANCE OF 267.93 FEET TO A POINT ON THE SOUTH
LINE OF THE XXXXX GALLERY AND GARDENS PROPERTY (K8-7671); THENCE XXXXX
XXXX XXXXX XXXX X00 00'00"X A DISTANCE OF 264.26 FEET TO A FOUND AXLE
ON THE WEST LINE OF SAID CHERRY ROAD, SAID POINT
77
ALSO BEING THE SOUTHEAST CORNER OF SAID XXXXX GALLERY AND GARDENS
PROPERTY; THENCE XXXXX XXXX XXXX XXXX X0 00'00"X A DISTANCE OF 905.25
FEET TO A POINT; THENCE X00 00'00"X A DISTANCE OF 10.00 FEET TO A
POINT; THENCE S0 00'14E A DISTANCE OF 131.85 FEET TO A POINT OF
CURVATURE; THENCE ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 25.00
FEET, XX XXX XXXXXX XX 00.00 XXXX (XXXXX X00 00'00"X - 35.46 FEET) TO
THE POINT OF BEGINNING.
PARCEL II
The property on which exists a two (2) story office building is situated in
Memphis, Shelby County, Tennessee, and is described as follows:
BEING A PART OF THE XXXXXX'X ENTERTAINMENT, INC. CORPORATE HEADQUARTERS
P.D. AS RECORDED IN PLAT BOOK 155, PAGE 8, ALSO BEING THE HOLIDAY INN'S
INC. PROPERTY AS RECORDED IN INSTRUMENT U7-2133 AT THE SHELBY COUNTY
REGISTER'S OFFICE, LOCATED IN MEMPHIS, TENNESSEE AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT A POINT ON THE CENTERLINE OF CHERRY ROAD (R.O.W. VARIES),
1087.24 FEET NORTH OF THE INTERSECTION OF HAVERHILL ROAD (50' R.O.W.)
AND SAID CHERRY ROAD; THENCE NO89 37'17"W A DISTANCE OF 30.00 FEET TO
A FOUND AXLE ON THE WEST LINE OF SAID CHERRY ROAD; SAID POINT ALSO
BEING THE SOUTHEAST CORNER OF THE XXXXX GALLERY AND GARDENS PROPERTY
(INST. K8-7671); THENCE X00 00'00"X A DISTANCE OF 264.26 FEET TO THE
POINT OF BEGINNING, SAID POINT BEING ON THE SOUTH LINE OF SAID XXXXX
GALLERY AND GARDENS PROPERTY; THENCE ALONG THE FOLLOWING COURSES AND
DISTANCES: S0 00'14"E A DISTANCE OF 267.93 FEET TO A POINT; THENCE
X00 00'00"X A DISTANCE OF 222.36 FEET TO A POINT; THENCE S27 16'38"W A
DISTANCE OF 188.13 FEET TO A POINT; THENCE X00 00'00"X A DISTANCE OF
173.28 FEET TO A POINT; THENCE N3 15'45"E A DISTANCE OF 27.58 FEET TO A
POINT; THENCE X00 00'00"X A DISTANCE OF 75.95 FEET TO A POINT; THENCE
S30 15'47"W A DISTANCE OF 48.67 FEET TO A POINT; THENCE X00 00'00"X A
DISTANCE OF 225.85 FEET TO A POINT ON THE XXXX XXXX XX XXX 00 XX
XXXXXXX XXXX SUBDIVISION (PB. 00, XX. 00), XXXX XXXXX BEING 15.11 FEET
SOUTH OF THE NORTH LINE OF SAID LOT 26; THENCE ALONG SAID EAST LINE AND
THE EAST LINE OF THE RESUBDIVISION OF LOTS 21-25, AUDUBON PARK
SUBDIVISION (PB. 15, PG. 4)
78
N0 13'10"W A DISTANCE OF 325.74 FEET TO A FOUND AXLE, SAID AXLE ALSO
BEING THE SOUTHWEST CORNER OF SAID XXXXX GALLERY AND GARDENS PROPERTY;
THENCE ALONG THE SOUTH LINE OF SAID XXXXX XXXXXXX XXX XXXXXXX XXXXXXXX
X00 00'00"X A DISTANCE OF 776.93 FEET TO THE POINT OF BEGINNING.
79
Exhibit "B"
Plat Showing Building and Building No. 1
80
Exhibit "C"
Rules and Regulations
Definitions 1. Wherever in these Rules and
Regulations the word "Tenant" is
used, it shall be taken to apply to
and include the Tenant and his
agents, employees, invitees,
licensees, visitors, subtenants and
contractors, and shall be deemed of
such number and gender as the
circumstances require. The word
"Landlord" shall be taken to
include the employees and agents of
Landlord.
Obstructions 2. The streets, sidewalks, entrances,
driveways, halls, passages,
elevators, stairways and Common
Areas provided by Landlord shall
not be obstructed by Tenant.
Washrooms 3. Toilet rooms, water-closets and
other water apparatus shall not be
used for any purposes other than
those for which constructed.
Fire Prevention 4. Tenant shall not do anything in the
Premises or bring or keep anything
therein, which shall in any way
increase or tend to increase the
risk of fire or the rate of fire
insurance, or which shall conflict
with the regulations of the Fire
Department or the fire laws, or
with the rules and regulations of
the City of Memphis, or equivalent
bodies, or with any insurance
policy on the Building or any part
thereof, or with any law,
ordinance, rule or regulation
affecting the occupancy and use the
Premises, now existing or hereafter
enacted or promulgated by any
public authority or by the City of
Memphis or any equivalent body.
Tenant's Equipment 5. It is Tenant's responsibility to
properly operate all business
equipment and coffee machines and
to service such equipment and
machines.
81
General 6. In order to insure proper use and
Prohibitions care of the Premises, Tenant shall
not, without the consent of
Landlord or unless otherwise
permitted in the Lease:
a. Keep or permit animals or birds in
the Building except as required for
handicapped persons.
b. Use the Premises as sleeping
apartments.
c. Allow any sign, advertisement or
notice to be fixed to the Building,
inside or outside, without
Landlord's written consent.
d. Make improper noise or disturbances
of any kind, or otherwise do
anything to disturb other tenants
or tend to injure the reputation of
the Building.
e. Xxxx or defile elevators, water
closets, toilet rooms, walls,
windows, doors or any other parts
of the Building.
f. Place anything on the outside of
the Building, including roof
setbacks, window ledges and other
projections; or drop anything from
the windows, stairways or parapets;
or place trash or other matter in
the halls, stairways, elevators or
light xxxxx of the Building.
g. Cover, block or obstruct any
window, skylight, door or transom
or any other surface that admits
light, except building standard
blinds.
h. Interfere with the heating or
cooling apparatus.
i. Allow anyone but Landlord's
employees to clean Premises.
j. Leave open doors to the Premises at
any time except as otherwise
approved by Landlord, and same
shall be locked at all times when
Premises are not occupied.
k. Install any shades, blinds or
awnings without consent of the
Landlord, except building standard
blinds.
l. Use any electric heating device,
such as
82
a space heater, without consent of
the Landlord.
m. Install call boxes, or any kind of
wire in or on the Building without
Landlord's permission and
direction.
n. Manufacture any commodity, or
prepare or dispense any foods,
beverages, or alcoholic beverages,
tobacco, drugs, flowers, or other
commodities or articles without the
written consent of Landlord. All
food and beverage vending machines
will be provided by the Landlord
Approved Contractor.
o. Secure duplicate keys for Premises
or toilets, except from Landlord,
or change the locks of any doors to
or in the Premises.
p. Give employees or other persons
permission to go upon or erect or
place any antennae, tower or other
structure or equipment on the roof
of the Building without the written
consent of the Landlord.
q. Place door mats in public corridors
(i.e., within the Common Area)
without consent of Landlord.
r. Schedule, receive or accept freight
other than Monday through Friday,
excluding holidays, between the
hours of 7:00 a.m. to 7:00 p.m.
s. Leave the Land and enter the
Adjacent Property, except via the
designated entrance driveway
between the Land and Cherry Road,
but then only during the course of
arriving and leaving for work
during Operating Hours.
Business 7. Business machines and mechanical
Machines equipment which cause vibration,
noise, cold or heat that may be
transmitted to Building structure
or to any leased space outside
Premises shall be placed and
maintained by Tenant, at its sole
cost and expense, in settings of
cork, rubber, or spring type
vibration eliminators
83
sufficient to absorb and prevent
such vibration, noise, cold
or heat. No business machines
or mechanical equipment which
require above normal business
machine level or high amounts of
electricity shall be used or
installed in the Premises without
Landlord's written consent and if
installed, all electricity used
shall be metered and paid by Tenant
as Additional Rent.
Movement of 8. Landlord reserves the right to
Equipment designate the time when and the
method whereby freight, small
office equipment, furniture, safes
and other like articles may be
brought into, moved, or removed
from the Building or Premises, and
to designate the location for
temporary disposition of such
items.
Tenant Moves 9. Landlord's tenant move in/move out
policy is as follows:
a. All moves will be done at such
times as shall not unduly interfere
with other tenants or occupants of
the Real Property or Adjacent
Property.
b. Landlord shall approve the moving
contractor and such contractor
shall coordinate all aspects of the
move with Landlord.
c. Tenant's contractor shall provide a
certificate of insurance evidencing
liability, property damage and
workmen's compensation insurance of
not less than $1,000,000, naming
Landlord as additional insured.
d. Tenant's contractor shall use
appropriate padding and masonite
floor covering to protect all
surfaces including door jambs,
subject to Landlord's inspection
and approval.
e. Tenant will reimburse Landlord for
all security provided.
f. Tenant will be responsible for any
damages during the move.
84
Rights Reserved 10. Without abatement or diminution in
to Landlord rent, Landlord reserves and shall
have the following additional
rights:
a. To install and maintain a sign or
signs on the exterior of the
Building.
b. To designate all sources furnishing
sign painting and lettering, ice,
drinking water, towels and toilet
supplies and other like services
used on the Premises.
c. At any time or times Landlord
either voluntarily or pursuant to
governmental requirement, may, at
Landlord's own expense, make
repairs, alterations or
improvements in or to the Building
or any part thereof and during
alterations, any close entrances,
doors, windows, corridors,
elevators or other facilities,
provided that such acts shall not
unreasonably interfere with
Tenant's use and occupancy of the
Premises as a whole.
d. During the last six (6) months of
the term or any part thereof, if
during or prior to that time the
Tenant vacates the Premises, to
decorate, remodel, repair, alter or
otherwise prepare the Premises for
re-occupancy.
e. To constantly have pass keys and
Security System clearance to the
Premises.
f. Landlord may reasonably enter upon
the Premises and may exercise any
or all of the foregoing rights
hereby reserved without being
deemed guilty of an eviction or
disturbance of Tenant's use or
possession and without being liable
in any manner to the Tenant.
g. To access the Xxxxx Gallery and
Gardens via the Common Area.
Regulation 11. Landlord shall have the right to
Change make such other and further
reasonable rules and regulations as
in the judgment of Landlord, may
from time to time be needful for
the safety, appearance, care and
cleanliness of the Building and
Building No. 2 and for the
preservation
85
of order therein, Landlord shall
not be responsible to Tenant for
any violation of rules and
regulations by other tenants or
occupants of the Real Property or
Adjacent Property.
Smoking Areas 12. Landlord shall have the right, from
time to time, to designate and
thereafter to change, alter or
redesignate, smoking and
non-smoking area(s) outside the
Building and shall further be
permitted to prohibit or limit such
activity in order to fully comply
with any applicable governmental
ordinance, law or regulation.
Tenant shall not permit any of its
employees, agents or invitees to
smoke except in the designated
smoking area(s) and, in any event,
never inside the Building.
Plumbing 13. Plumbing fixtures and appliances
shall be used only for purposes for
which constructed, and no
sweepings, rubbish, rags or other
unsuitable material shall be thrown
or placed therein. Damage resulting
to any such fixtures or appliances
from misuse by Tenant shall be
repaired and replaced at Tenant's
sole cost and expense, and Landlord
shall not in any case be
responsible therefor.
Parking 14. Tenant shall use best efforts to
cause Tenant's employees to park
their motor vehicles in those
portions of the parking area
designated by Landlord ("Tenant's
Parking Area").
Access 15. Tenant shall access Tenant's
Parking Area and/or the Building
via the driveway designated on
Exhibit "C-1" which is attached
hereto and supplements these Rules
and Regulations.
86
Exhibit "D"
Cleaning Specifications
Landlord agrees that, at its expense, it will do the following standard
janitorial work for the Premises.
I. General Space Cleaning - five (5) nights per week Monday thru Friday
A. Nightly
1. Empty and dust wipe all receptacles.
2. Replace plastic liners in waste receptacles as
required.
3. Remove waste to a compactor, hamper, or place waste
in bags and leave in a designated area.
4. Empty and damp-wipe ashtrays.
5. Clean entrance glass.
6. Clean glass in directories.
7. Spot clean all interior glass, including the glass
railing on the plaza and third floor.
8. Damp-wipe all glass top desks and tables.
9. Spot clean walls, doors, door frames and around light
switches.
10. Clean the elevators including walls, floors, doors,
lights, tracks and indicator panels.
11. Clean and polish stainless steel in the main lobby,
elevator lobbies, elevators, etc.
12. Damp-wipe spillages on furniture in lounge and
lunchroom areas. (Tenant shall be responsible for
cleaning of dishes, refrigerators and other kitchen
appliances.)
87
13. Sanitize and polish all drinking fountains.
14. Vacuum all carpeted areas with particular attention
being paid to under desks, moveable furniture,
corners and edges, etc.
15. Spot clean carpet as needed.
16. Sweep all granite pavers and composition tile
flooring with a specially treated mop and buff.
17. Damp mop trackage and spillage as required.
18. Sweep cement stairways. Damp-mop as required.
19. Dust or damp-wipe handrails and metalwork as
required.
20. Sweep with specially treated mop, and wash floors in
service areas.
21. Upon the completion of cleaning, the cleaning
equipment will be stored neatly in a designated
location.
B. Monthly
1. Clean and polish desk tops.
2. Perform high dusting not reached in normal cleaning.
3. Dust Venetian blinds.
4. Spray buff vinyl tile flooring in tenant and service
areas.
C. Quarterly
1. Strip and wax all vinyl tile flooring in tenant and
service areas.
2. Vacuum upholstered chairs.
II. Lavatories
88
A. Nightly
1. Empty waste and sanitary napkin disposal receptacles.
2. Replace plastic liners as required.
3. Clean commodes and urinals with a disinfectant.
4. Clean washbowls with a scouring powder.
5. Polish mirrors.
6. Polish all brightwork.
7. Spot clean ceramic tile walls and metal
partitions.
8. Floors to be swept, wet mopped and rinsed, using a
disinfectant detergent.
9. Fill all towel, toilet issue, sanitary napkin and
hand soap dispensers.
B. Monthly
1. Wash and disinfect ceramic tile walls and metal
partitions.
2. Wash interior of waste and sanitary napkin disposal
containers.
89
Exhibit "E"
Rating Level Multiplier
For purposes of Section 2.6 of the Lease:
If HET's Corporate . . . then the
Credit Rating is . . . Rating Level Multiplier is:
BBB 0
BB 1.0
B 2.0
CCC 3.0
CC or lower 4.0
90
Exhibit "F"
[RESERVED]
91
Exhibit "G"
Tenant Design and Construction Standards
Tenant agrees to furnish Landlord the following information in
drawings, in accordance with the below-listed schedules.
1. PRELIMINARY DRAWINGS
No later than four (4) weeks prior to the projected construction
commencement date, Tenant shall furnish Landlord one (1) sepia and six
(6) complete sets of prints of -" scale preliminary drawings showing at
least the following information:
a. Floor plan including furniture layout, partition layout, door
layout, power and telephone outlet locations, items above
standard finish, floor loading information beyond 70 psf, etc.
b. Reflected ceiling plan including lighting layout, exit signs,
registers, grilles, diffusers, exhaust fans, ceiling breaks,
etc.
c. Written scope sheet of special Tenant mechanical and
electrical requirements and/or custom construction and finish
requirements.
d. Take-off sheet of building standard items shall be used.
2. ARCHITECTURAL WORKING DRAWINGS FOR CONSTRUCTION
No later than two (2) weeks prior to the projected construction
commencement date, Tenant shall furnish Landlord two (2) background
mylars of the partition and ceiling plans and one (1) sepia and two (2)
sets of prints of complete -" scale working drawings on or before
showing at least the following information and marked "issued for
engineering and Landlord review":
a. Location and type of all partitions and doors (specify
hardware and provide keying schedule), glass
partitions, windows and glass doors (indicate framing sections
if not building standard).
92
b. Indication of all critical dimensions necessary for
construction.
c. Location of telephone equipment room accompanied by an
approval of the telephone company.
d. Location of all building standard and above building standard
electrical items including outlets, switches, telephone
outlets and lighting.
e. Location and type of equipment that require special
electrical; requirements including manufacturer's
specifications for use and operations.
f. Location, weight per square foot and description of any
exceptionally heavy equipment or filing system exceeding 75
psf live load including 20 psf for partitions.
g. Requirements for special air conditioning or ventilation
including occupancy information for each room and space.
h. Type and color of floor covering, wall covering, and building
standard and above-building standard paint or finishes.
i. Requirements for special plumbing including all line sizes,
fixtures and specifications.
j. Location and type of kitchen equipment including
specifications.
k. Details showing:
(1) Construction of all partition types;
(2) Head, jamb and sill sections with elevations for all
door types;
(3) Shelving, cabinet work and architectural millwork
with dimensions and dimensions of all equipment to be
built in;
(4) Special corridor entrance with framing and support
requirements; and
93
(5) Bracing or support of special walls, glass
partitions, drapery track, etc.
3. MECHANICAL/ELECTRICAL WORKING DRAWINGS FOR CONSTRUCTION
No later than two (2) weeks prior to the projected construction
commencement date, Tenant shall furnish two (2) sets of prints of -"
scale mechanical/electrical working drawings which, among other things,
shall identify requirements beyond the building standard scope.
4. Within ten (10) days after the furnishing of any such drawings by
Tenant, Landlord shall approve, disapprove, or request further
information concerning the drawings submitted, indicating the reason
for any disapproval and specifying clearly the nature and scope of any
request for further information. In all events, Landlord shall use good
faith efforts to respond to such submissions by Tenant expeditiously so
as to not delay unnecessarily Tenant's construction of Alterations.
5. Tenant shall be responsible for obtaining city review and approval of
preliminary drawings (as referred to in paragraph 1 above). Tenant
shall make application and obtain a city building permit.
94
Exhibit "H"
First American SNDA
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT
Building No. 2
THIS AGREEMENT, made as of the ----- day of October, 1999, by FIRST
AMERICAN NATIONAL BANK, with a place of business at 0000 Xxxxxx Xxxxxx, Xxxxx
000, Xxxxxxx, Xxxxxxxxx 00000 ("Mortgagee") and Xxxxxx'x Operating Company,
Inc., a Delaware corporation, having an office address at 0000 Xxxx Xxxxxx
Xxxxxx, Xxxxx 000, Xxx Xxxxx, XX 00000 ("Tenant").
WITNESSETH:
WHEREAS, Mortgagee has entered into, or is about to enter into, a
mortgage loan transaction with RBM Cherry Road Partners, a Tennessee general
partnership, having an office address of 0000 Xxxxxx Xxxx Xxxxx, Xxxxxxx, XX
00000 ("Landlord"); and
WHEREAS, Mortgagee is, or is to become, the beneficiary of a Deed of
Trust, Assignment of Rents and Security Agreement (said Deed of Trust,
Assignment of Rents and Security Agreement being hereinafter referred to as the
"Mortgage") covering that certain parcel of land owned by Landlord and described
on Exhibit "A" annexed hereto and made a part hereof, together with the
improvements erected thereon (said parcel of land and improvements thereon being
commonly known as 0000 Xxxxxx Xxxx, Xxxxxxx, XX 00000, hereinafter called the
"Improvements"); and
WHEREAS, by a certain Lease entered into between Landlord and Tenant
dated as of October 25, 1999 ("Lease"), Landlord leased to Tenant a portion of
the Improvements, to wit, the premises designated as floors one (1) through two
(2) of the three-story office building located at 0000 Xxxxxx Xxxx, Xxxxxxx, XX
00000, generally depicted on Exhibit "B" annexed hereto and made a part hereof
(said premises being hereinafter called the "Demised Premises"); and
WHEREAS, a copy of the Lease has been delivered to Mortgagee, the
receipt of which is hereby acknowledged; and
WHEREAS, the parties hereto desire to effect the subordination of the
Lease to the Mortgage and to provide for the non-disturbance of Tenant by the
holder of the Mortgage.
95
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties hereto intending to be
legally bound hereby agree as follows:
1. Mortgagee hereby consents to and approves the Lease and the term
thereof, including any options to extend the term as set forth in the Lease, and
covenants and agrees that the exercise by Tenant of any of the rights, remedies,
and options therein contained shall not constitute a default under the Mortgage.
2. Tenant covenants and agrees with Mortgagee that the Lease is hereby
made, and shall continue hereafter to be, subject and subordinate to the lien of
the Mortgage, and to all modifications and extensions thereof, with the same
force and effect as if the Mortgage had been executed and delivered prior to the
execution and delivery of the Lease and without regard to the order of priority
of recording the Mortgage, subject, however, to the provisions of this
Agreement. Tenant shall take such steps and execute such documents from time to
time hereafter as Mortgagee may reasonably request in order to carry into effect
the provisions and intent of this Agreement and to confirm the subordination of
the Lease to the lien of the Mortgage subject to the terms hereof.
3. Tenant certifies that the Lease is presently in full force and
effect and unmodified and Tenant as of this date has no knowledge of any
default, charge, lien or claim of offset under the Lease.
4. The Tenant shall deliver to Mortgagee, within thirty (30) days after
receipt of a written request for same, further certifications that (i) the Lease
is then in full force and effect; (ii) there have been no modifications to the
Lease (except those specified therein); (iii) there is then no default, charge,
lien or claim of offset under the Lease (or stating any of the same which may be
claimed or known); (iv) not more than one month's installment of rent has been
paid in advance of the due date (or stating any such other payments, if made);
and (v) such other information as Mortgagee may reasonably request. For so long
as Tenant is not in default under the terms of the Lease and the Lease shall be
in full force and effect, Mortgagee agrees that:
(a) Except as may be procedurally required by law, Tenant
shall not be named or joined as a party or otherwise in any suit, action or
proceeding for the foreclosure of the Mortgage or to enforce any rights under
the Mortgage or note or
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other obligation secured thereby. Nothing hereinabove shall prohibit or prevent
the Mortgagee from suing the Tenant for any default (as defined in the Lease) by
Tenant under the Lease.
(b) The possession by Tenant of the Demised Premises and
Tenant's rights thereto shall not be disturbed, affected or impaired by, nor
will the Lease, Tenant's rights thereunder, or the term thereof be terminated or
otherwise affected (i) by any suit, action or proceeding upon the Mortgage or
note or other obligation secured thereby, or for the foreclosure of the Mortgage
or the enforcement of any rights under the Mortgage or any other documents held
by the holder of the Mortgage, or (ii) by any judicial sale or execution or
other sale of the Demised Premises in connection with the Mortgage, or any deed
given in lieu of foreclosure, or (iii) by any default under the Mortgage or note
or other obligation secured thereby.
(c) Neither the Mortgage nor any other security instrument
executed in connection therewith shall cover or be construed as subjecting in
any manner to the lien thereof, any trade fixtures, equipment, inventory or
other personal property at any time furnished or installed by or for Tenant in
the Demised Premises unless the same are permanently affixed to the real estate
thereof. Tenant agrees that upon removal of any of its trade fixtures,
equipment, inventory or other personal property at any time furnished or
installed by or for Tenant in the Demised Premises, Tenant shall, at its
expense, repair all damage to the Demised Premises caused by any such removal.
5. If Mortgagee or any future holder of the Mortgage shall become the
owner of the Improvements by reason of foreclosure of the Mortgage or otherwise,
or if the Improvements shall be sold as a result of any action or proceeding to
foreclose the Mortgage, or transfer of ownership by deed given in lieu of
foreclosure, the Lease shall continue in full force and effect, without
necessity for executing any new lease, as a direct lease between Tenant and the
then owner of the Improvements, as "Landlord," upon all of the same terms,
covenants, and provisions contained in the Lease, and in such event:
(a) Tenant shall be bound to such new owner under all of the
terms, covenants, and provisions of the Lease for the remainder of the term
thereof (including also any extension periods, if Tenant elects or has elected
to exercise its option to extend the term) and Tenant hereby agrees to attorn to
such new owner and to recognize such new owner as "Landlord" under the Lease;
and
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(b) Such new owner shall be bound to Tenant under all of the
terms, covenants, and provisions of the Lease for the remainder of the term
thereof (including also any extension periods, if Tenant elects or has elected
to exercise its options to extend the term) which such new owner hereby agrees
to assume and perform; and Tenant shall, from and after the date such new owner
succeeds to the interest of "Landlord" under the Lease, have the same remedies
against such new owner for any subsequently occurring breach of any covenant
contained in the Lease as Tenant might have had under the Lease against Landlord
if such new owner had not succeeded to the interest of Landlord, provided,
however, that such new owner shall not (i) be bound by any rent or additional
rent which Tenant might have paid for more than one month in advance to any
prior landlord (including Landlord); or (ii) be bound by any amendment or
modification of the Lease made without its consent.
6. Any notices or communications given under this Agreement shall be in
writing and shall be given by certified mail, return receipt requested, postage
prepaid, (a) if to Mortgagee, at the address for Mortgagee hereinabove set forth
or at such other address as Mortgagee may designate by notice to Tenant, or (b)
if to Tenant, at the address of Tenant as hereinabove set forth or at such
address as Tenant may designate by notice to Mortgagee.
7. Tenant agrees, by notice given in the manner provided in the Lease,
to give to Mortgagee at the address provided above a copy of any notice of
default served upon the Landlord by Tenant. Tenant shall give such notice to
Mortgagee simultaneously with the giving of any such notice of default to
Landlord. Tenant further agrees that if Landlord shall have failed to cure any
such default within such time as may be provided for in the Lease, then Tenant
shall give Mortgagee written notice of such failure and Mortgagee shall have an
additional forty-five (45) days from receipt of such notice within which to cure
such default, or if such default cannot be cured within that time, then within
such additional time as may be necessary if within such forty-five (45) days
Mortgagee has commenced and is diligently pursuing the remedies necessary to
cure such default (including but not limited to commencement of foreclosure
proceedings, if necessary to effect such cure); and in such event the Lease
shall not be terminated and Tenant shall not be excused or released from the
timely performance and payment of all of Tenant's obligations under the Lease,
without setoff or deduction, while such remedies are being so diligently pursued
by
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Mortgagee. Mortgagee shall not be deemed, as a result of any such curing or
attempted curing, to have assumed or become personally liable for Landlord's
obligations under the Lease.
8. Upon notification by Mortgagee to the Tenant of the exercise of
Mortgagee's rights under the Mortgage to receive direct payment of rents or
other charges, Tenant shall pay rent and any other sums payable under the terms
of the Lease directly to Mortgagee. Notwithstanding the Tenant's payment to
Mortgagee of the rent and other sums payable under the terms of the Lease,
Tenant hereby acknowledges and agrees that Mortgagee shall have no duties or
obligations with respect to the Lease until Mortgagee has notified Tenant of
Mortgagee's assumption of the Landlord's obligations under the Lease.
9. This Agreement shall bind and inure to the benefit of and be binding
upon and enforceable by the parties hereto and their respective successors and
assigns.
10. This Agreement contains the entire agreement between the parties and
cannot be changed, modified, waived, or cancelled except by an agreement in
writing executed by the parties against whom enforcement of such modification,
change, waiver or cancellation is sought.
11. This Agreement and the covenants herein contained are intended to
run with and bind all lands affected thereby.
12. Any notices sent to Mortgagee herein shall include a copy to: J.
Xxxxxx Xxxxx, Esq., Martin, Tate, Xxxxxx & Xxxxxxx, P.C., 0000 Xxxxxx Xxxxxx,
Xxxxx 000, Xxxxxxx, XX 00000-0000.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the day and year first above written.
MORTGAGEE:
FIRST AMERICAN NATIONAL BANK
By:-----------------------------
Title:--------------------------
TENANT:
XXXXXX'X OPERATING COMPANY, INC.
By:-----------------------------
Title:--------------------------
000
XXXXX XX XXXXXXXXX
XXXXXX XX XXXXXX
Before me, a Notary Public, of the State and County aforesaid,
personally appeared --------------------, with whom I am personally acquainted
(or proved to me on the basis of satisfactory evidence), and who, upon oath,
acknowledged himself/herself to be the ---------------------- of First American
National Bank, the within named bargainor, a national banking association, and
that he/she as such officer, being authorized so to do, executed the foregoing
instrument for the purpose therein contained, by signing the name of the
association by himself/herself as such officer.
WITNESS my hand and official seal this -----day of --------, 199--.
----------------------------
NOTARY PUBLIC
My commission expires:
----------------------
STATE OF ----------------------
COUNTY OF ---------------------
Before me, a Notary Public, of the State and County aforesaid,
personally appeared --------------------, with whom I am personally acquainted
(or proved to me on the basis of satisfactory evidence) and who, upon oath,
acknowledged himself/herself to be the ------------------- of XXXXXX'X OPERATING
COMPANY, INC., the within named bargainor, a Delaware corporation, and that
he/she as such officer, being authorized so to do, executed the foregoing
instrument for the purpose therein contained by signing the name of the
corporation by himself/herself as such officer.
WITNESS my hand and seal at office this ---- day of --------, 199--.
----------------------------
NOTARY PUBLIC
My commission expires:
---------------------
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Exhibit "I"
Memphis and Shelby County Land Use Control Board
- Staff Report #16 Correspondence Item,
Case No.: P.D. 00-000
X.X.X.X. Meeting October 14, 1999
102
