OFFICE LEASE Between SMIII WOODBRIDGE PLAZA, LLC, Landlord, and CAREADVANTAGE, INC., Tenant
Between
SMIII
WOODBRIDGE PLAZA, LLC,
Landlord,
and
CAREADVANTAGE,
INC.,
Tenant
REFERENCE
DATA
The information contained on this
Reference Data page is for convenience of reference only and is subject to the
terms of the Lease.
LANDLORD:
|
SMIII
WOODBRIDGE PLAZA, LLC,
a
Delaware limited liability company
|
|
LANDLORD’S
ADDRESS:
|
c/o
KBS Realty Advisors, LLC
000
Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx, XX 00000
|
|
TENANT:
|
CAREADVANTAGE,
INC.,
a
Delaware corporation
|
|
TENANT’S
ADDRESS:
|
Prior
to the Commencement Date:
485(C)
Xxxxx 0 Xxxxx, 0xx Xxxxx
Xxxxxx,
Xxx Xxxxxx 00000
From
and after the Commencement Date:
485(A)
Xxxxx 0 Xxxxx, 0xx Xxxxx
Xxxxxx,
Xxx Xxxxxx 00000
|
|
PREMISES:
|
Building
(A)
Portion
of 0xx Xxxxx, Xxxxx Xx. 000
Xxxxxxxxxx
Xxxxxxxxx Xxxxx
485(A)
Xxxxx 0 Xxxxx
Xxxxxx,
Xxx Xxxxxx 00000
|
|
RENTABLE
AREA OF
PREMISES:
|
6,189
square feet
|
|
RENTABLE
AREA OF
BUILDING:
|
83,768
square feet
|
|
LEASE
TERM:
|
6 years,
4 months, and, if the Commencement Date is not the first day of a month,
the period between the Commencement Date and the day preceding the first
day of the month immediately following the Commencement
Date
|
i
SCHEDULED
COMMENCEMENT DATE:
|
April
1, 2010
|
BASE RENT:
|
Lease
Months
|
Base
Rental
Rate
|
Annual Base
Rent
|
Monthly Base
Rent
|
||||||||||||
1 -
12
|
$ | 43.65 | $ | 270,149.85 | $ | 22,512.49 | ||||||||||
13
- 76
|
$ | 28.00 | $ | 173,292.00 | $ | 14,441.00 |
BASE
YEAR:
|
2010
|
|
TENANT’S
PROPORTIONATE SHARE:
|
7.39%
|
|
TAX
ADJUSTMENT:
|
Tenant
shall pay Tenant’s Proportionate Share of the amount by which Taxes for
any Adjustment Year exceeds Taxes for the Base Year.
|
|
EXPENSE
ADJUSTMENT:
|
Tenant
shall pay Tenant’s Proportionate Share of the amount by which Expenses for
any Adjustment Year exceeds Expenses for the Base Year.
|
|
UTILITY
EXPENSE ADJUSTMENT:
|
Tenant
shall pay Tenant’s Proportionate Share of the amount by which Utility
Expenses for any Adjustment Year exceeds Utility Expenses for the Base
Year.
|
|
SECURITY
DEPOSIT:
|
$10,000.00,
such sum to be deposited by Tenant with Landlord by no later than January
15, 2011, with time being of the essence.
|
|
PERMITTED
USES:
|
General
Offices
|
|
GUARANTOR(S):
|
None
|
|
BROKER(S):
|
FirstService
Xxxxxxxx
|
|
PARKING:
|
Tenant
shall have access, on a non-exclusive basis, to four (4) parking spaces
per thousand (1,000) square feet of the total Rentable Area of the
Premises. Landlord acknowledges that three (3) of the aggregate of the
aforesaid parking spaces shall be exclusive to Tenant, and
shall be located as shown in the parking plan annexed hereto as Exhibit
I.
|
|
OPTION:
|
None
|
ii
Table
of Contents
GRANT
OF LEASE; PREMISES; BUILDING; PROJECT; AND COMMON AREAS
|
1
|
|
1.1
|
LEASE
OF PREMISES
|
1
|
1.2
|
THE
BUILDING AND THE OFFICE COMPLEX
|
1
|
1.3
|
COMMON
AREAS
|
1
|
1.4
|
LANDLORD’S
USE AND OPERATION OF THE BUILDING, PROJECT, AND COMMON
AREAS
|
2
|
ARTICLE 2
|
TERM;
POSSESSION
|
2
|
2.1
|
TERM
|
2
|
2.2
|
EARLY
POSSESSION
|
3
|
2.3
|
FAILURE
TO DELIVER POSSESSION
|
3
|
2.4
|
LEASE
YEAR DEFINED
|
3
|
ARTICLE 3
|
BASE
RENT
|
4
|
3.1
|
BASE
RENT
|
4
|
3.2
|
MANNER
OF PAYMENT
|
5
|
3.3
|
LATE
CHARGES
|
5
|
ARTICLE 4
|
RENT
ADJUSTMENTS
|
6
|
4.1
|
OBLIGATION
TO PAY RENT ADJUSTMENTS
|
6
|
4.2
|
DEFINITIONS
|
6
|
4.3
|
COMPUTATION
OF RENT ADJUSTMENTS
|
11
|
4.4
|
PAYMENTS
OF RENT ADJUSTMENTS; PROJECTIONS
|
12
|
4.5
|
READJUSTMENTS
|
13
|
4.6
|
BOOKS
AND RECORDS
|
15
|
4.7
|
AUDIT
PROCEDURES
|
15
|
4.8
|
PRORATION
AND SURVIVAL
|
16
|
4.9
|
NO
DECREASE IN BASE RENT
|
16
|
4.10
|
ADDITIONAL
RENT
|
16
|
ARTICLE 5
|
USE
OF PREMISES
|
16
|
ARTICLE 6
|
SERVICES
|
16
|
6.1
|
SERVICES
PROVIDED
|
16
|
6.2
|
FAILURE
TO PAY FOR SERVICES
|
19
|
6.3
|
FAILURE
TO FURNISH SERVICES
|
19
|
6.4
|
REGULATIONS
REGARDING UTILITIES SERVICES
|
19
|
6.5
|
LANDLORD’S
RIGHT TO DISCONTINUE FURNISHING ELECTRICITY
|
19
|
6.6
|
ELECTRICAL
CAPACITY
|
20
|
6.7
|
TAXES
|
20
|
ARTICLE 7
|
CONDITION
AND CARE OF PREMISES
|
21
|
i
Table
of Contents
ARTICLE 8
|
RETURN
OF PREMISES
|
21
|
8.1
|
SURRENDER
OF POSSESSION
|
21
|
8.2
|
INSTALLATIONS
AND ADDITIONS
|
21
|
8.3
|
TRADE
FIXTURES AND PERSONAL PROPERTY
|
22
|
8.4
|
SURVIVAL
|
22
|
ARTICLE 9
|
HOLDING
OVER
|
22
|
ARTICLE 10
|
RULES
AND REGULATIONS
|
22
|
ARTICLE 11
|
RIGHTS
RESERVED TO LANDLORD
|
23
|
11.1
|
RIGHTS
RESERVED TO LANDLORD
|
23
|
11.2
|
USE
OF ROOF AND LAND
|
25
|
ARTICLE 12
|
ALTERATIONS
|
25
|
12.1
|
CONSENT
|
25
|
12.2
|
REMOVAL
OF ALTERATIONS
|
26
|
12.3
|
LANDLORD
FUNDED IMPROVEMENTS
|
27
|
12.4
|
TENANT’S
WIRING
|
27
|
ARTICLE 13
|
ASSIGNMENT
AND SUBLETTING
|
27
|
13.1
|
ASSIGNMENT
AND SUBLETTING
|
27
|
13.2
|
RENTALS
BASED ON NET INCOME
|
28
|
13.3
|
TENANT
TO REMAIN OBLIGATED
|
28
|
13.4
|
TENANT’S
NOTICE; LANDLORD'S RIGHT TO TERMINATE
|
28
|
13.5
|
LANDLORD’S
CONSENT
|
29
|
13.6
|
PROFITS
|
29
|
13.7
|
ASSIGNEE
TO ASSUME OBLIGATIONS
|
30
|
13.8
|
CHANGE
OF CONTROL
|
30
|
13.9
|
COSTS
AND LEGAL FEES
|
31
|
13.10
|
TIME
LIMITATION
|
31
|
13.11
|
INDEMNIFICATION
|
31
|
ARTICLE 14
|
WAIVER
OF CERTAIN CLAIMS; INDEMNITY BY TENANT
|
31
|
14.1
|
WAIVER
OF CERTAIN CLAIMS
|
31
|
14.2
|
DAMAGE
CAUSED BY TENANT’S NEGLECT
|
32
|
14.3
|
TENANT
RESPONSIBLE FOR PERSONAL PROPERTY
|
32
|
14.4
|
INDEMNIFICATION
|
32
|
ARTICLE 15
|
DAMAGE
OR DESTRUCTION BY CASUALTY
|
33
|
15.1
|
DAMAGE
OR DESTRUCTION BY CASUALTY
|
33
|
15.2
|
ABATEMENT
OF RENT
|
33
|
ARTICLE 16
|
EMINENT
DOMAIN
|
33
|
ii
Table
of Contents
ARTICLE 17
|
DEFAULT
|
34
|
17.1
|
EVENTS
OF DEFAULT
|
34
|
17.2
|
RIGHTS
AND REMEDIES OF LANDLORD
|
35
|
17.3
|
RIGHT
TO RE-ENTER
|
35
|
17.4
|
CURRENT
DAMAGES
|
36
|
17.5
|
FINAL
DAMAGES
|
36
|
17.6
|
REMOVAL
OF PERSONAL PROPERTY
|
37
|
17.7
|
ATTORNEYS'
FEES
|
37
|
17.8
|
ASSUMPTION
OR REJECTION IN BANKRUPTCY
|
37
|
17.9
|
DEFAULT
UNDER OTHER LEASES
|
37
|
17.10
|
WAIVER
OF RIGHT OF REDEMPTION
|
37
|
ARTICLE 18
|
SUBORDINATION
|
38
|
18.1
|
SUBORDINATION
|
38
|
18.2
|
LIABILITY
OF HOLDER OF MORTGAGE; ATTORNMENT
|
38
|
18.3
|
MODIFICATION
REQUIRED BY HOLDER OF A MORTGAGE
|
39
|
18.4
|
SHORT
FORM LEASE
|
39
|
ARTICLE 19
|
MORTGAGEE
PROTECTION
|
39
|
ARTICLE 20
|
ESTOPPEL
CERTIFICATE
|
40
|
ARTICLE 21
|
SUBROGATION
AND INSURANCE
|
40
|
21.1
|
WAIVER
OF SUBROGATION
|
40
|
21.2
|
TENANT’S
INSURANCE
|
41
|
21.3
|
CERTIFICATES
OF INSURANCE
|
42
|
21.4
|
COMPLIANCE
WITH REQUIREMENTS
|
42
|
ARTICLE 22
|
NONWAIVER
|
43
|
ARTICLE 23
|
TENANT
- DUE AUTHORIZATION
|
43
|
ARTICLE 24
|
REAL
ESTATE BROKERS
|
44
|
ARTICLE 25
|
NOTICES
|
44
|
ARTICLE 26
|
ENVIRONMENTAL
MATTERS
|
45
|
26.1
|
TENANT’S
OBLIGATIONS WITH RESPECT TO ENVIRONMENTAL MATTERS
|
45
|
26.2
|
LANDLORD’S
RIGHT TO INSPECT
|
46
|
26.3
|
COPIES
OF NOTICES AND DOCUMENTATION
|
47
|
26.4
|
LANDLORD’S
RIGHT TO ACT
|
47
|
26.5
|
INDEMNIFICATION
|
47
|
ARTICLE 27
|
SECURITY
DEPOSIT
|
48
|
27.1
|
SECURITY
DEPOSIT
|
48
|
iii
Table
of Contents
27.2
|
TRANSFER
OF SECURITY DEPOSIT
|
49
|
|
ARTICLE 28
|
RELOCATION
OF TENANT
|
49
|
|
ARTICLE 29
|
TITLE
AND COVENANT AGAINST LIENS
|
50
|
|
ARTICLE 30
|
MISCELLANEOUS
|
51
|
|
30.1
|
SUCCESSORS
AND ASSIGNS
|
51
|
|
30.2
|
MODIFICATIONS
IN WRITING
|
51
|
|
30.3
|
NO
OPTION; IRREVOCABLE OFFER
|
51
|
|
30.4
|
DEFINITION
OF TENANT
|
51
|
|
30.5
|
DEFINITION
OF LANDLORD
|
51
|
|
30.6
|
HEADINGS
|
51
|
|
30.7
|
TIME
OF ESSENCE
|
51
|
|
30.8
|
DEFAULT
RATE OF INTEREST
|
52
|
|
30.9
|
SEVERABILITY
|
52
|
|
30.10
|
ENTIRE
AGREEMENT
|
52
|
|
30.11
|
FORCE
MAJEURE
|
52
|
|
30.12
|
SECURITY
INTEREST
|
52
|
|
30.13
|
CHOICE
OF LAW
|
53
|
|
30.14
|
RELATIONSHIP
|
53
|
|
30.15
|
NO
RECORDING
|
53
|
|
30.16
|
ATTORNEY’S
FEES
|
53
|
|
30.17
|
TENANT’S
REMEDIES
|
53
|
|
30.18
|
NO
COUNTERCLAIMS
|
53
|
|
30.19
|
NO
PRESUMPTION
|
54
|
|
30.20
|
AUTHORITY
OF AGENT
|
54
|
|
ARTICLE 31
|
AMERICANS
WITH DISABILITIES ACT
|
54
|
|
ARTICLE 32
|
EXCULPATORY
PROVISIONS
|
55
|
|
ARTICLE 33
|
[INTENTIONALLY
OMITTED.]
|
55
|
|
ARTICLE 34
|
ANTI-TERRORISM
REQUIREMENTS
|
55
|
|
ARTICLE 35
|
[INTENTIONALLY
OMITTED.]
|
56
|
|
EXHIBIT A
|
-
|
Floor
Plan for the Premises
|
|
EXHIBIT B
|
-
|
Legal
Description of Land
|
|
EXHIBIT C
|
-
|
Rules
and Regulations
|
|
EXHIBIT D
|
-
|
Workletter
|
|
EXHIBIT E
|
-
|
Intentionally
Omitted
|
|
EXHIBIT F
|
-
|
Janitorial
and Cleaning Schedule
|
|
EXHIBIT G
|
-
|
Confirmation
of Commencement Date
|
|
EXHIBIT H
|
-
|
Intentionally
Omitted
|
|
EXHIBIT I
|
-
|
Parking
Plan
|
iv
THIS OFFICE LEASE (this “Lease”) is made and entered
into as of the 28th day of December, 2009 by and between SMIII WOODBRIDGE PLAZA, LLC, a
Delaware limited liability company (hereinafter referred to as “Landlord”), and CAREADVANTAGE, INC., a
Delaware corporation (hereinafter referred to as “Tenant”).
For and
in consideration of the covenants herein contained, and upon the terms and
conditions herein set forth, Landlord and Tenant hereby agree as
follows:
ARTICLE
1
GRANT OF LEASE; PREMISES;
BUILDING; PROJECT; AND COMMON AREAS
1.1 LEASE OF
PREMISES. Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, the premises outlined in the floor plan attached hereto as
Exhibit A and hereby
made a part hereof (hereinafter referred to as the “Premises”) on the second
(2nd) floor
of the building located at Woodbridge Corporate Plaza, 485(A) Xxxxx 0 Xxxxx,
Xxxxxx, Xxx Xxxxxx 00000, and known as Building (A) (hereinafter
referred to as the “Building”).
1.2 THE
BUILDING AND THE OFFICE COMPLEX. The Building, which is
located on land (the “Land”) legally described in
Exhibit B attached
hereto and made a part hereof, is part of an office project known as “Woodbridge Corporate Plaza”,
which contains another five (5) office buildings (collectively, the “Adjacent
Buildings”). The term “Office Complex,” as used in
this Lease, shall mean (i) the Building and the Adjacent Buildings, comprised of
Buildings A, B, C, D, E and F, and the “Common Areas,” as that term is defined
in Section 1.3 below, (ii) the Land (which is improved with landscaping,
open-use parking lots and other improvements) upon which the Building, the
Adjacent Buildings, and the Common Areas are located, and (iii) at Landlord’s
discretion, any additional real property, areas, buildings or other improvements
added thereto pursuant to the terms of Section 1.4 of this Lease.
1.3 COMMON
AREAS. Tenant shall have the non-exclusive right to use in
common with other tenants in the Office Complex, and subject to the rules and
regulations referred to in Article 10 of this Lease, those portions of the
Office Complex which are provided, from time to time, for use in common by
Landlord, Tenant and any other tenants of the Office Complex, whether or not
those areas are open to the general public, or which contain facilities or
equipment used or usable in the operation of the Office Complex, even if access
to such areas may be restricted to Landlord’s personnel (such areas are
collectively referred to herein as the “Common
Areas”). Common Areas shall be deemed to include, without
limitation, the cafeteria presently located in Building C of the
Office Complex, to the extent such cafeteria is operational and open for
business, it being expressly understood and agreed that Landlord shall not be
obligated to provide any such cafeteria. The term “Exterior Common Areas,” as
used in this Lease, shall mean the portions of the Common Areas not located
within the Building or the Adjacent Buildings, and may include, without
limitation, any parking facilities, fixtures, systems, signs, facilities, lakes,
retention ponds, gardens, parks, or other landscaping used in connection with
the Office Complex, and may include any city sidewalks adjacent to the Office
Complex, pedestrian walkway system, whether above or below grade, park or other
facilities open to the general public and roadways, sidewalks, walkways,
parkways, driveways and landscape areas appurtenant to the Office
Complex. The term “Building Common Areas,” as
used in this Lease, shall mean the portions of the Common Areas located within
the Building and may include, without limitation, the common entrances, lobbies,
atrium areas, restrooms, elevators, elevator shafts, stairways and accessways,
loading docks, ramps, platforms, passageways, serviceways, common pipes, flues,
stacks, pipe shafts, conduits, wires, equipment, loading and unloading areas,
machine rooms, fan rooms, janitors’ closets, electrical closets, telephone
closets and trash areas servicing the Building. The manner in which
the Common Areas are maintained and operated shall be at the sole discretion of
Landlord.
1
1.4 LANDLORD’S USE AND
OPERATION OF THE BUILDING, PROJECT, AND COMMON AREAS. Landlord
reserves the right from time to time without notice to Tenant (i) to close
temporarily any of the Common Areas; (ii) to restrict Tenant’s access to any
Common Areas not open to all tenants; (iii) to make changes to the Common Areas,
including, without limitation, changes in the location, size, shape and number
of street entrances, driveways, ramps, entrances, exits, passages, stairways and
other ingress and egress, direction of traffic, landscaped areas, loading and
unloading areas, and walkways; (iv) to expand the Building or the Adjacent
Buildings; (v) to add additional buildings and improvements to the Common Areas;
(vi) to remove buildings and improvements from the Common Areas; (vii) to
designate land outside the Office Complex to be part of the Office Complex, and
in connection with the improvement of such Land to add additional buildings and
Common Areas to the Office Complex; (viii) to use the Common Areas while engaged
in making improvements, repairs or alterations to the Office Complex or to any
adjacent land, or any portion thereof; and (ix) to do and perform such other
acts and make such other changes in, to or with respect to the Office Complex,
Common Areas and Building or the expansion thereof as Landlord may, in the
exercise of sound business judgment, deem to be appropriate.
ARTICLE
2
TERM;
POSSESSION
2.1 TERM. The
term of this Lease (hereinafter referred to as the “Term”) shall commence on
April 1, 2010 (hereinafter, as the same may be adjusted as hereinafter provided,
referred to as the “Commencement Date”) and end
on July 31, 2016 (hereinafter, as the same may be adjusted as hereinafter
provided, referred to as the “Expiration Date”), unless
sooner terminated as provided herein. Within fifteen (15) days after
the Commencement Date, Landlord and Tenant shall execute a Confirmation of
Commencement Date in the form attached hereto as Exhibit G. The parties to this
Lease acknowledge and agree that, subject to the provisions of Article 2 herein,
the dates proposed by Landlord for the Commencement Date and Expiration Date of
this Lease shall be deemed to be conclusive, dispositive and binding on the
parties whether set forth in the form of the Confirmation of Commencement Date
annexed hereto or if not so set forth in any such form, other document or
writing if such dates have been so determined by Landlord, and any such dates
may not be disputed or challenged by Tenant. In no event shall
Landlord’s failure to request any such confirmation or Tenant’s failure or
refusal to execute same in any way affect this Lease, the Term hereof or any of
Tenant’s obligations hereunder, including, without limitation, Tenant’s
obligation to pay the Base Rent and additional rent herein reserved and to
perform all of the other covenants, obligations and agreements herein set
forth.
2
2.2 EARLY
POSSESSION. If Tenant desires to take possession of all or any
part of the Premises prior to the date set forth above as the Commencement Date
and if Landlord authorizes Tenant to do so, the Commencement Date shall be
advanced to the date upon which Tenant so takes possession. The
Expiration Date shall not be affected by such early occupancy.
2.3 FAILURE
TO DELIVER POSSESSION. If Landlord is unable to deliver
possession of the Premises to Tenant on or before the date set forth above as
the Commencement Date because work to be performed by Landlord under any
Workletter (as hereinafter defined) has not been substantially completed (as
that term is defined in the Workletter), or for any other reason, Landlord shall
not be subject to any liability on account thereof and such failure shall not
affect the validity of this Lease or the obligations of Tenant
hereunder. If Landlord is to perform work in the Premises pursuant to
a work letter attached hereto as Exhibit D and by this
reference made a part hereof (hereinafter referred to as the “Workletter”) and is unable to
deliver possession of the Premises to Tenant on or before the date set forth
above as the Commencement Date because such work has not been substantially
completed, the Commencement Date shall be deferred to the date on which such
work is substantially completed. In the event, however, that
substantial completion of such work has been delayed by reason of the occurrence
of one or more acts constituting Tenant Delay or Force Majeure Delay (as defined
in the Workletter), the date of substantial completion thereof shall be deemed
to be the date on which such work would have been substantially completed but
for such Tenant Delay or Force Majeure Delay. If the Commencement
Date is deferred pursuant to this paragraph, the Expiration Date shall be
deferred so that the Term will expire on the last day of the calendar month in
which the six (6) year, four (4) month anniversary of said deferred Commencement
Date occurs (or if the Commencement Date occurs on the first day of a month,
then the Expiration Date shall be deferred so that the Term will expire on the
day preceding the six (6) year, four (4) month anniversary of the Commencement
Date). Neither the Commencement Date nor the Expiration Date shall be
affected if the Premises are not ready for occupancy because Tenant is
performing work in the Premises, pursuant to the Workletter or
otherwise.
2.4 LEASE
YEAR DEFINED. As used in this Lease, the term “Lease Year” shall mean (i) if
the Commencement Date is the first day of a calendar month, the twelve (12)
month period commencing on the Commencement Date or (ii) if the Commencement
Date is not the first day of a calendar month, the period commencing on the
Commencement Date and ending on the last day of the twelfth (12th) full calendar
month of the Term, and, in either case, each succeeding twelve (12) month period
thereafter which falls in whole or in part during the Term.
LEASE
MONTH DEFINED. As used in this Lease, the first “Lease Month” shall commence on
(a) the Commencement Date, if said date falls on the first (1st) day of
the first (1st)
calendar month during which the Commencement Date occurs, or (b) if the
Commencement Date does not fall on the first (1st) day of
the first (1st)
calendar month during which the Commencement Date occurs, then the first (1st) Lease
Month shall begin on the first (1st) day of
the first (1st) full
calendar month beginning after the Commencement Date. If the Commencement Date
is not the first (1st) day of
a month, the rent for the fractional portion of the month preceding the first
Lease Month shall be calculated on a pro-rata basis, based on the Base Rent
payable during the first (1st) Lease
Month, beginning with and including the Commencement Date through the last day
of that month, using the actual number of days in that month and Base Rent for
said fractional period shall not be abated or free hereunder and shall in all
events be payable by Tenant upon the first (1st) day of
the first (1st) Lease
Month of the Lease.
3
ARTICLE
3
BASE
RENT
3.1 BASE
RENT. Tenant shall pay an annual base rent (annual base rent
is hereinafter referred to as "Base Rent" and monthly
installments of Base Rent are hereinafter referred to as "Monthly Base Rent") to
Landlord for the Premises in monthly installments as described in the Reference
Data page of this Lease, in advance on the first day of the Term and on the
first day of each calendar month thereafter of the Term, and at the same rate
for fractions of a month if the Term begins on any day except the first day of a
calendar month or ends on any day except the last day of a calendar
month.
Provided
that (i) Tenant is the original Tenant named herein; (ii) Tenant is not then in
default under any of the terms and conditions of this Lease and the Lease be and
remains in full force and effect, and (iii) Tenant is then in actual, physical
possession of the entire Premises, then Tenant shall be granted a credit towards
Base Rent as follows:
Lease Month
|
Amount of Credit
|
|||
1
|
$ | 10,057.13 | ||
2
|
$ | 10,057.13 | ||
7
|
$ | 10,057.13 | ||
14
|
$ | 10,057.13 |
(the
above four (4) Lease Months during which Tenant is being granted a credit
towards Base Rent as described above is hereinafter referred to as the “First
Rent Credit Term”, with Tenant herein acknowledging that this particular Base
Rent credit is only being given in the amounts described above and only for
Lease Months one (1), two (2), seven (7) and fourteen (14) as described
above).
In
addition, during the period commencing on the Commencement Date and ending and
expiring on March 31, 2011 (the “Second Rent Credit Term”), Tenant shall be
granted an additional credit towards Base Rent in the amount of $8,379.67 per
Lease Month during the Second Rent Credit Term, such credit sum to be applied on
a pro rata basis for any partial month occurring during such Second Rent Credit
Term based on the number of days in any such partial month.
The
aforementioned credits towards Base Rent to be granted to Tenant as described in
this Section 3.1 during the First Rent Credit Term and Second Rent Credit Term
are herein collectively referred to as the "Rent Credit".
4
In the
event the amount of any Rent Credit to be applied in any one Lease Month is
greater than the amount of the Monthly Base Rent otherwise payable during such
Lease Month, the difference between the amount of the Rent Credit to be applied
towards such Lease Month and the amount of the Monthly Base Rent otherwise
payable during such Lease Month, shall be applied as a credit against the
Monthly Base Rent payable for the next following Lease Month. In the event that
on the date any amount of Rent Credit is to be applied, or at any time
thereafter during the Term of this Lease Tenant is (x) not the original Tenant
named herein, (y) in default under any of the terms and conditions of this Lease
or the Lease is not in full force and effect or (z) not in actual, physical
possession of the entire Premises, then the Rent Credit theretofore applied
against Base Rent or thereafter to be applied against Base Rent shall be
entirely forfeited, and the equivalent amount of any such Rent Credit
theretofore applied to the Base Rent shall be immediately remitted by Tenant to
Landlord as additional rent.
3.2 MANNER OF
PAYMENT. Base Rent, Rent Adjustments (as hereinafter defined),
Rent Adjustment Deposits (as hereinafter defined) and all other amounts becoming
due from Tenant to Landlord hereunder (hereinafter collectively referred to as
“Rent”) shall be paid in
lawful money of the United States to Landlord and mailed as follows to the
following address: SMIII Woodbridge Plaza, LLC, c/o FirstService Xxxxxxxx, X.X.
Xxx 0000, Xxxxxxxxxx, Xxx Xxxx 00000-0000, or as otherwise designated from time
to time by written notice from Landlord to Tenant. The payment of
Rent hereunder is independent of each and every other covenant and agreement
contained in this Lease, and Rent shall be paid without any setoff, abatement,
notice, counterclaim or deduction whatsoever except as may be expressly provided
herein. Concurrently with the execution hereof, Tenant shall pay
Landlord the first full unabated Lease Month’s installment of Monthly Base Rent
payable by Tenant to Landlord hereunder. Landlord’s acceptance of
Rent after it shall have become due and payable hereunder shall not constitute a
waiver of any of Landlord’s rights hereunder with respect to such late payment
or excuse such late payment or any subsequent late payment of
Rent. If any sum payable by Tenant under this Lease is paid by check
and such check is returned due to insufficient funds, stop payment order, or
otherwise, then such event shall be treated as a failure to pay such sum when
due and, in addition to all other rights and remedies of Landlord hereunder,
Landlord shall be entitled to impose a returned check fee of Fifty Dollars
($50.00) to cover Landlord’s administrative expenses and overhead for processing
same, and further, Landlord may require that all future payments of Rent be
remitted by money order or cashier’s or certified check.
3.3 LATE
CHARGES. If any payment of Base Rent, Rent
Adjustments, additional rent (as such term is defined in Section 4.10
below) or any other sum is not received by Landlord within five (5) days after
the date such payment is due hereunder (without regard to any cure period which
may be specified in Section 17.1 below), then Tenant shall pay to Landlord, as
additional rent and as an agreed-upon amount of liquidated damages and not as a
penalty, a late charge equal to five (5%) of the amount of such
payment. In addition, such late payment shall bear interest at the
default interest rate described in Section 30.8 below from the date such payment
became due until the date on which Landlord receives full payment thereof
(inclusive of all accrued interest thereon).
5
ARTICLE
4
RENT
ADJUSTMENTS
4.1 OBLIGATION
TO PAY RENT ADJUSTMENTS. In addition to paying Base Rent,
Tenant shall also pay as additional rent the amounts determined in accordance
with this Article 4 (hereinafter referred to as “Rent
Adjustments”).
4.2 DEFINITIONS.
As used in this
Lease,
(a) “Adjustment Date” shall mean
the first day of the Term and each January 1 thereafter falling within the
Term.
(b) “Adjustment Year” shall mean
each calendar year during which an Adjustment Date falls.
(c) “Expenses” shall mean and
include those direct and indirect costs and expenses of any kind or nature
whatsoever paid or incurred by or on behalf of Landlord for owning, managing,
operating, maintaining and repairing the Building, the Building Common Areas,
the Exterior Common Areas, the Land, and the personal property used in
conjunction therewith (the Building and the Land are hereinafter collectively
referred to as the “Real
Property” and the Real Property and such personalty are hereinafter
collectively referred to as the “Project”), including, without
limitation, the following costs and expenses:
(i) wages
and salaries of all persons engaged in the operation, management, maintenance or
repair of the Project, and fringe benefits, including social security taxes,
unemployment insurance taxes, cost for providing coverage for disability
benefits, cost of any pensions, hospitalization, welfare or retirement plans,
and any other similar expenses incurred under the provisions of any collective
bargaining agreement, or any other cost or expense which Landlord pays or incurs
to provide benefits for employees so engaged in the operation, management,
maintenance or repair of the Project;
(ii) the
cost of security and security devices and systems;
(iii) the
cost of snow, ice and trash removal;
(iv) the
cost of cleaning and sweeping;
(v)
the cost of parking area repair, restoration and
maintenance, including but not limited to resurfacing, repainting, restriping,
relamping and cleaning;
(vi) the
cost of interior and exterior painting, decorating and landscaping, including
without limitation planting and replacing decorations, flowers, lawn care and
landscaping and the replacement of wall and floor coverings, ceiling tiles and
fixtures in the Common Areas;
6
(vii) the
cost of roof repair;
(viii) the
cost of maintenance, repair and replacement of utility systems, elevators,
escalators and other building systems and improvements not otherwise referred to
in this Section 4.2(c), but including replacement only to the extent of
replacement of parts and components incidental to the maintenance and repair
thereof or if the cost thereof would be includable in Expenses pursuant to
subsection (A) below of this Section 4.2(c), and not to the extent replacement
of any item would constitute a capital improvement or a capital expenditure
which is excluded from Expenses as hereinafter provided;
(ix) the
cost of window cleaning;
(x) the
cost of janitorial service and trash removal;
(xi) the
cost of insurance, including, but not limited to, fire, extended coverage, all
risk, liability, workmen’s compensation, elevator and any other insurance
carried by Landlord and applicable to the Project;
(xii) the
cost of uniforms, supplies and sundries;
(xiii) all
payments made pursuant to the property management agreement with respect to the
Project (including the cost of any management fee and the fair rental value of
any office space provided to the manager thereunder);
(xiv) the
cost of sales or use taxes on supplies and services;
(xv) the
charges of any independent contractor who, under contract with Landlord or its
representatives, does any of the work of operating, managing, maintaining or
repairing the Project;
(xvi) legal,
accounting and consulting expenses, including, but not limited to, such expenses
that relate to seeking or obtaining reductions in and refunds of real estate
taxes;
(xvii) the
cost of tools and equipment;
(xviii) the
cost of licenses, certificates, permits and inspections and the cost of
contesting the validity or applicability of any governmental enactments or
exactions which may constitute Expenses;
(xix) payments
under any equipment rental agreements;
7
(xx) costs,
fees, charges or assessments imposed by any federal, state or local government
for fire and police protection, trash removal, community services, or other
services not funded through taxes;
(xxi) sums
levied, assessed, imposed or required to be paid to any governmental authority
on account of the parking of motor vehicles, or reduction or control of motor
vehicle traffic, or motor vehicle pollution; and
(xxii) any
other expense or charge, whether or not hereinbefore mentioned, which, in
accordance with generally accepted accounting and management principles, would
be considered an expense of owning, managing, operating, maintaining or
repairing the Project, except as hereinafter provided.
Expenses
shall not include costs or other items included within the meaning of the terms
“Taxes” or “Utility Expenses” (as hereinafter defined); costs of alterations of
the premises of tenants of the Building; costs of capital improvements to the
Building (except as specifically provided in this Section 4.2(c)); depreciation
charges; interest and principal payments on mortgages; ground rental payments;
real estate brokerage and leasing commissions; other expenses incurred in
leasing or in procuring tenants; any expenditures for services which are
provided to one or more tenants but are not available generally to all office
tenants; and any expenditures for which Landlord has been reimbursed (other than
pursuant to this Article 4 or provisions in other leases requiring the tenants
thereunder to pay a share of expenses associated with the Building), except as
hereinafter provided.
Notwithstanding
anything contained in this clause (c) to the contrary:
(A) The
cost of any capital improvements to the Building made after the date of this
Lease which are intended to reduce Expenses or Utility Expenses or which are
required under any governmental laws, regulations or ordinances which were not
applicable to the Building at the time it was constructed, amortized over such
reasonable period as Landlord shall determine, together with interest on the
unamortized cost of any such improvements (at the prevailing construction loan
rate available to Landlord on the date the cost of such improvements was
incurred) shall be included in Expenses;
(B) If
the Building is less than ninety-five percent (95%) occupied by tenants during
all or a portion of any Adjustment Year, or the Base Year, as the case may be,
or if during all or a portion of any Adjustment Year, or the Base Year, as the
case may be, Landlord is not furnishing to any tenant or tenants any particular
service, the cost of which, if furnished by Landlord, would be included in
Expenses, then Landlord may elect to make an adjustment for such year of
components of Expenses and the amounts thereof which may vary depending upon the
occupancy level of the Building or the number of tenants using the
service. Any such adjustments shall be deemed costs and expenses paid
or incurred by Landlord and included in Expenses for such year, as if the
Building had been ninety five percent (95%) occupied during the entire
Adjustment Year, or the Base Year, as the case may be, Landlord had furnished
such service at its expense to all tenants for the entire Adjustment Year, or
the Base Year, as the case may be, and Landlord had paid or incurred such costs
and expenses for such year;
8
(C) If
any item of Expenses, although paid or incurred in one year, relates to more
than one calendar year, at the option of Landlord, such item may be allocated
proportionately among such related calendar years;
(D) In
the case of any item of Expense that is incurred by Landlord in the operation of
the Exterior Common Areas or otherwise in connection with the operation of the
Office Complex, and that is not specifically attributable to the operation of
the Building or the Adjacent Buildings alone, the Building shall be allocated
13.58% of said shared expenses, which percentage is based upon the relative
Rentable Areas of the Building and the Adjacent Buildings;
and
(E) If
any item or category of Expenses included or excluded in the
calculation of Expenses in any particular Adjustment Year or Years,
as the case may be, is to be excluded or included in such calculation during any
other particular Adjustment Year or Years, at the option of Landlord, then such
item or category may be excluded or included, as the case may be, at Landlord’s
option, from the calculation of Expenses for the Base Year and any Adjustment
Year or Years for purposes of calculating the Expense Adjustment for such
particular Adjustment Year or Years.
(d) “Taxes” shall mean real estate
taxes, property taxes, general or special assessments, sewer and water rents,
rates and charges, transit and transit district taxes, city, county, village and
school district taxes, taxes based upon the receipt of rent, and any other
federal, state or local governmental charge, whether general, special, ordinary
or extraordinary (but not including income or franchise taxes or any other taxes
imposed upon or measured by Landlord’s income or profits, except as provided
herein), which may now or hereafter be levied, assessed or imposed against the
Real Property.
Notwithstanding
anything contained in this clause (d) to the contrary:
(i) If
at any time the method of taxation then prevailing is altered so that any new or
additional tax, assessment, levy, imposition or charge or any part thereof is
imposed upon Landlord in place or partly in place of any such Taxes or
contemplated increase therein, or in addition to Taxes, and is measured by or is
based in whole or in part upon the Real Property or the rents or other income
therefrom, then all such new taxes, assessments, levies, impositions or charges
or part thereof, to the extent that they are so measured or based, shall be
included in Taxes levied, assessed or imposed against the Real Property to the
extent that such items would be payable if the Real Property were the only
property of Landlord subject thereto and the income received by Landlord from
the Real Property were the only income of Landlord.
9
(ii) Notwithstanding
the year for which any such taxes or assessments are levied, (A) in the case of
taxes or special assessments which may be paid in installments, the amount of
each installment, plus any interest payable thereon, paid during a calendar year
shall be included in Taxes for that year and (B) if any taxes or assessments
payable during any calendar year shall be computed with respect to a period in
excess of twelve (12) calendar months, then taxes or assessments applicable to
the excess period shall be included in Taxes for that year. Except as
provided in the preceding sentence, all references to Taxes “for” a particular
year shall be deemed to refer to Taxes levied, assessed or otherwise imposed for
such year without regard to when such Taxes are payable.
(iii) Taxes
shall also include any personal property taxes (attributable to the calendar
year in which paid) imposed upon the furniture, fixtures, machinery, equipment,
apparatus, systems and appurtenances which are components of the
Project.
(e) “Rentable Area of the
Building” shall mean the sum of the areas on all floors of the Building
computed by measuring to the center line of the exterior glass and excluding
only public stairs, elevator shafts, flues, stacks, pipe shafts and vertical
ducts (“vertical
penetrations”). No deduction shall be made for columns or
projections. The Rentable Area of the Building shall be deemed to be
83,768 square feet.
(f) “Rentable Area of the
Premises” shall mean (i) if this Lease is for an entire floor, the area
of the entire floor measured to the center line of the exterior glass, excluding
vertical penetrations, plus a proportionate share of mechanical space and lobby
and common service areas in the Building or (ii) if this Lease is for less than
an entire floor, the area measured from the center line of the exterior glass to
the center line of all demising partitions and to the outside face of corridor
partitions plus (A) a proportionate share of public areas (including corridors,
toilets, elevator lobby or lobbies, mechanical spaces and janitorial, electrical
and telephone closets) on the floor on which the Premises are located and (B) a
proportionate share of mechanical space and lobby and common service areas in
the Building. No deduction shall be made for columns or
projections. The Rentable Area of the Premises shall be deemed to be
6,189 square feet.
(g) “Tenant’s Proportionate Share”
shall mean 7.39%, which is the percentage obtained by dividing the Rentable Area
of the Premises by the Rentable Area of the Building.
(h) “Utility Expenses” shall mean
the cost and expenses paid or incurred by or on behalf of Landlord for all
electricity, steam, water, sewer, fuel, heating, lighting, air-conditioning and
utilities used at the Real Property, including without limitation, any fuel
surcharges and adjustments thereto and the allocable share of such costs and
expenses used at the Office Complex.
10
Notwithstanding
anything contained in this clause (h) to the contrary:
(A) If
the Building is less than ninety-five percent (95%) occupied by tenants during
all or a portion of any Adjustment Year, or the Base Year, as the case may be,
or if during all or a portion of any Adjustment Year, or the Base Year, as the
case may be, Landlord is not furnishing to any tenant or tenants any particular
service, the cost of which, if furnished by Landlord, would be included in
Utility Expenses, then Landlord may elect to make an adjustment for such year of
components of Utility Expenses and the amounts thereof which may vary depending
upon the occupancy level of the Building or the number of tenants using the
service. Any such adjustments shall be deemed costs and expenses paid
or incurred by Landlord and included in Utility Expenses for such year, as if
the Building had been ninety-five percent (95%) occupied during the entire
Adjustment Year, or the Base Year, as the case may be, Landlord had furnished
such service at its expense to all tenants for the entire Adjustment Year, or
the Base Year, as the case may be, and Landlord had paid or incurred such costs
and expenses for such year;
(B) If
any item of Utility Expenses, although paid or incurred in one year, relates to
more than one calendar year, at the option of Landlord, such item may be
allocated proportionately among such related calendar years;
(C) In
the case of any item of Utility Expense that is incurred by Landlord in the
operation of the Exterior Common Areas or otherwise in connection with the
operation of the Office Complex, and that is not specifically attributable to
the operation of the Building or the Adjacent Buildings alone, the Building
shall be allocated 13.58% of said shared expenses, which percentage is based
upon the relative Rentable Areas of the Building and the Adjacent Buildings;
and
(D) If
any item or category of Utility Expenses included or excluded in the
calculation of Utility Expenses in any particular Adjustment Year or
Years, as the case may be, is to be excluded or included in such calculation
during any other particular Adjustment Year or Years, at the option of Landlord,
then such item or category may be excluded or included, as the case may be, at
Landlord’s option, from the calculation of Utility Expenses for the Base Year
and any Adjustment Year or Years for purposes of calculated the Utility Expense
Adjustment for such particular Adjustment Year or Years.
(i) “Rent Adjustments” shall mean
all amounts determined pursuant to this Article 4, including all amounts payable
by Tenant to Landlord on account thereof.
4.3 COMPUTATION
OF RENT ADJUSTMENTS. Tenant shall pay Rent Adjustments for
each Adjustment Year determined as hereinafter set forth. Rent
Adjustments payable by Tenant with respect to each Adjustment Year during which
an Adjustment Date falls shall include the following amounts:
11
(a) the
product of Tenant’s Proportionate Share multiplied by the amount, if any, by
which Taxes for such Adjustment Year exceeds Taxes for calendar year 2010 (the
“Base Year”) (said
product being hereinafter referred to as the “Tax Adjustment”);
plus
(b) the
product of Tenant’s Proportionate Share multiplied by the amount, if any, by
which Expenses for such Adjustment Year exceed Expenses for the Base Year (said
product being hereinafter referred to as the “Expense Adjustment”);
plus
(c) the
product of Tenant’s Proportionate Share multiplied by the amount, if any, by
which Utility Expenses for such Adjustment Year exceed Utility Expenses for the
Base Year (said product being hereinafter referred to as the “Utility Expense
Adjustment”).
In
determining the Tax Adjustment, Expense Adjustment and Utility Expense
Adjustment for any given Adjustment Year, if less than the entire Adjustment
Year shall fall within the Term, then for purposes of comparison, the level of
Taxes, Expenses and Utility Expenses for the Base Year shall be reduced ratably
based upon the relative number of days in the two periods being
compared. Tenant agrees and acknowledges that Landlord has made no
representation, warranty or guaranty relating to the amount of Taxes, Expenses
and Utility Expenses. Tenant has had an opportunity to consult with
Landlord with respect to the Taxes, Expenses and Utility Expenses projected for
the operation of the Building but has not relied upon any statements or
representations of Landlord or of any agent or affiliate of Landlord in regard
thereto in executing this Lease and in agreeing to perform the terms and
covenants hereof and shall make no claim against Landlord based
thereon. Notwithstanding anything to the contrary herein contained,
in no event shall the Tax Adjustment, Expense Adjustment or Utility Expense
Adjustment for any Adjustment Year be negative.
4.4 PAYMENTS
OF RENT ADJUSTMENTS; PROJECTIONS. Tenant shall pay Rent
Adjustments to Landlord in the manner hereinafter provided.
(a) Tax
Adjustment, Expense Adjustment and Utility Expense Adjustment. Tenant
shall make payments on account of Tax Adjustment, Expense Adjustment and Utility
Expense Adjustment (the aggregate of such payments with respect to any
Adjustment Year being hereinafter referred to as the “Rent Adjustment Deposit”) as
follows:
(i)
Prior to each Adjustment Date and from time to time during the
Adjustment Year in which such Adjustment Date falls, Landlord may deliver to
Tenant a written notice or notices (each such notice being hereinafter referred
to as a “Projection
Notice”) setting forth (A) Landlord’s reasonable estimates, forecasts or
projections (collectively, the “Projections”) of any or all
of Taxes, Expenses and Utility Expenses for such Adjustment Year and (B)
Tenant’s Rent Adjustment Deposits with respect to the Tax Adjustment, Expense
Adjustment and Utility Expense Adjustment components of Rent Adjustments for
such Adjustment Year based upon the Projections. Landlord’s budgets
of Expenses and Utility Expenses and the Projections based thereon may assume
full occupancy of the Building and that Landlord will furnish all services
included in Expenses and Utility Expenses to all tenants of the
Building.
12
(ii) Tenant
shall commence payments of monthly installments of Rent Adjustment Deposits on
the first day of the first calendar month during the Term following Landlord’s
delivery of the first Projection Notice hereunder. On such date, and
on or before the first day of each calendar month thereafter of the Adjustment
Year covered by such Projection Notice, Tenant shall pay to Landlord one-twelfth
(1/12) of the Rent Adjustment Deposits shown in the Projection
Notice. Within fifteen (15) days following Landlord’s delivery of a
Projection Notice for an Adjustment Year in progress, Tenant also shall pay
Landlord a lump sum equal to the Rent Adjustment Deposits shown in the
Projection Notice less the sum of (A) any previous payments on account of Rent
Adjustment Deposits made with respect to such Adjustment Year and (B) monthly
installments on account of Rent Adjustment Deposits due for the remainder of
such Adjustment Year. Until such time as Landlord furnishes a
Projection Notice for an Adjustment Year, Tenant shall continue to pay monthly
installments of Rent Adjustment Deposits in the amount shown by the most recent
Projection Notice or, if the Tax, Expense and Utility Expense Adjustment for the
Adjustment Year covered by such Projection Notice has been determined,
one-twelfth (1/12) of such Tax, Expense and Utility Expense
Adjustment.
4.5 READJUSTMENTS. The
following readjustments shall be made by Landlord and Tenant for Expense
Adjustment, Utility Expense Adjustment and Tax Adjustment:
(a) Following
the end of each Adjustment Year and after Landlord has determined the actual
amount of Expenses to be used in calculating the Expense Adjustment for such
Adjustment Year, Landlord shall notify Tenant in writing (any such notice
hereinafter referred to as “Landlord’s Expense
Statement”) of such Expenses and Tenant’s Expense Adjustment for such
Adjustment Year. If the Expense Adjustment owed for such Adjustment
Year exceeds the Expense Adjustment component of the Rent Adjustment Deposits
paid by Tenant during such Adjustment Year, then Tenant, within thirty (30) days
after the date of Landlord’s Expense Statement, shall pay to Landlord an amount
equal to the excess of the Expense Adjustment over the Expense Adjustment
component of the Rent Adjustment Deposits paid by Tenant during such Adjustment
Year. If the Expense Adjustment component of the Rent Adjustment
Deposits paid by Tenant during such Adjustment Year exceeds the Expense
Adjustment owed for such Adjustment Year, then Landlord shall credit such excess
to Rent payable after the date of Landlord’s Expense Statement, or, at its
option, may credit such excess to any Rent theretofore due and owing, until such
excess has been exhausted. If this Lease expires or is terminated
prior to full application of such excess, Landlord shall pay to Tenant the
balance thereof not theretofore applied against Rent and not reasonably required
for payment of Rent for the Adjustment Year in which this Lease expires, subject
to Tenant’s obligations under Section 4.8 hereof, provided Tenant has vacated
the Premises and otherwise has surrendered the Premises to Landlord in
accordance with this Lease and Tenant is not then in default under this
Lease.
13
(b) Following
the end of each Adjustment Year and after Landlord has determined the actual
amount of Utility Expenses to be used in calculating the Utility Expense
Adjustment for such Adjustment Year, Landlord shall notify Tenant in writing
(any such notice hereinafter referred to as “Landlord’s Utility Expense
Statement”) of such Utility Expenses and Tenant’s Utility Expense
Adjustment for such Adjustment Year. If the Utility Expense
Adjustment owed for such Adjustment Year exceeds the Utility Expense Adjustment
component of the Rent Adjustment Deposits paid by Tenant during such Adjustment
Year, then Tenant, within thirty (30) days after the date of Landlord’s Utility
Expense Statement, shall pay to Landlord an amount equal to the excess of the
Utility Expense Adjustment over the Utility Expense Adjustment component of the
Rent Adjustment Deposits paid by Tenant during such Adjustment
Year. If the Utility Expense Adjustment component of the Rent
Adjustment Deposits paid by Tenant during such Adjustment Year exceeds the
Utility Expense Adjustment owed for such Adjustment Year, then Landlord shall
credit such excess to Rent payable after the date of Landlord’s Utility Expense
Statement, or, at its option, may credit such excess to any Rent theretofore due
and owing, until such excess has been exhausted. If this Lease
expires or is terminated prior to full application of such excess, Landlord
shall pay to Tenant the balance thereof not theretofore applied against Rent and
not reasonably required for payment of Rent for the Adjustment Year in which
this Lease expires, subject to Tenant’s obligations under Section 4.8 hereof,
provided Tenant has vacated the Premises and otherwise has surrendered the
Premises to Landlord in accordance with this Lease and Tenant is not then in
default under this Lease.
(c) Following
the end of each Adjustment Year and after Landlord has determined the actual
amount of Taxes to be used in calculating the Tax Adjustment for such Adjustment
Year, Landlord shall notify Tenant in writing (any such notice hereinafter
referred to as “Landlord’s Tax
Statement”) of such Taxes for such Adjustment Year. If the Tax
Adjustment owed for such Adjustment Year exceeds the Tax Adjustment component of
the Rent Adjustment Deposits paid by Tenant during such Adjustment Year, then
Tenant, within thirty (30) days after the date of Landlord’s Tax Statement,
shall pay to Landlord an amount equal to the excess of the Tax Adjustment over
the Tax Adjustment component of the Rent Adjustment Deposits paid by Tenant
during such Adjustment Year. If the Tax Adjustment component of the
Rent Adjustment Deposits paid by Tenant during such Adjustment Year exceeds the
Tax Adjustment owed for such Adjustment Year, then Landlord shall credit such
excess to Rent payable after the date of Landlord’s Tax Statement, or, at its
option, may credit such excess to any Rent theretofore due and owing, until such
excess has been exhausted. If this Lease expires or is terminated
prior to full application of such excess, Landlord shall pay to Tenant the
balance thereof not theretofore applied against Rent and not reasonably required
for payment of Rent for the Adjustment Year in which this Lease expires, subject
to Tenant’s obligations under Section 4.8 hereof, provided Tenant has vacated
the Premises and otherwise has surrendered the Premises to Landlord in
accordance with this Lease and Tenant is not then in default under this
Lease.
No
interest or penalties shall accrue on any amounts which Landlord is obligated to
credit or pay to Tenant pursuant to this Section.
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4.6 BOOKS AND
RECORDS. Landlord shall maintain books and records showing
Taxes, Expenses and Utility Expenses in accordance with sound accounting and
management practices. Provided Tenant is not in default of any of the
terms, conditions and covenants of this Lease (including, without limitation,
the timely payment of all Base Rent and Rent Adjustments), Tenant’s
representative (which representative must be an independent licensed certified
public accountant) shall have the right to examine Landlord’s books and records
showing Taxes, Expenses and Utility Expenses upon at least thirty (30) days’
advance written notice and during normal business hours at any time within
thirty (30) days following the furnishing by Landlord to Tenant of Landlord’s
Expense Statement, Landlord’s Utility Expense Statement or Landlord's Tax
Statement, as the case may be, provided for in Section 4.5. Such
examination shall take place at the Landlord’s property management
office. Unless Tenant takes written exception to any item within
thirty (30) days after the furnishing of Landlord’s Expense Statement,
Landlord’s Utility Expense Statement or Landlord’s Tax Statement, as the case
may be, containing such item, such Landlord’s Statement shall be considered
final and accepted by Tenant. Such examination may occur a maximum of
one (1) time in each Adjustment Year. Prior to, and as a condition of,
performing Tenant’s examination (i) Tenant shall provide Landlord with evidence
that the independent certified public accountant hired by Tenant to perform such
examination offers a full range of accounting services and has been
engaged on an hourly fee-based arrangement (i.e., not on a contingency basis or
other arrangement) and (ii) Tenant and the person conducting such examination
shall execute a confidentiality agreement prepared by Landlord, which provides
that any information obtained by Tenant and such person as a result of such
examination shall be treated as confidential. Tenant shall furnish to
Landlord a reasonably detailed report of the results of Tenant’s examination
within ten (10) days after such examination is completed.
4.7 AUDIT
PROCEDURES. If Tenant notifies Landlord within such thirty
(30) day period that Tenant disputes any specific item or items in any
Landlord's Expense Statement, Landlord’s Utility Expense Statement or Landlord’s
Tax Statement, as the case may be, and such dispute is not resolved between
Landlord and Tenant within thirty (30) days after the date such notice is given
by Tenant, either party, during the fifteen (15) day period following the
expiration of the thirty (30) day period commencing on the date such notice is
given, may refer such disputed item or items for determination to an independent
certified public accountant selected by such party and approved by the other
party, which approval shall not be withheld unreasonably, and the determination
of such accountant shall be final, conclusive and binding upon Landlord and
Tenant. If Tenant’s examination, as finally determined, shows that
any amount(s) paid by Tenant to Landlord on account of any specific item or
items in any Landlord’s Expense Statement, Landlord’s Utility Expense Statement
or Landlord’s Tax Statement, as the case may be, exceed the amount(s) to which
Landlord is entitled hereunder, then provided Tenant is not in default under any
provision of this Lease, Landlord shall, at Landlord’s option, either credit
such excess toward Tenant’s next monthly payment(s) of Tax Adjustments, Expense
Adjustments and Utility Expense Adjustments due hereunder, or promptly refund
such excess to Tenant. If Tenant’s examination reveals that Tenant’s
actual liability exceeds the amounts paid by Tenant to Landlord on account of
Taxes, Expenses and Utility Expenses then Tenant shall pay the deficiency as
additional rent, together with the delivery to Landlord of the detailed report
of Tenant’s examination, as aforesaid. If Tenant does not timely
notify Landlord in writing of any objection to any Landlord’s Expense Statement,
Landlord’s Utility Expense Statement or Landlord’s Tax Statement, as the case
may be, and thereafter completes Tenant’s examination within ninety (90) days
after receipt of the Landlord’s Expense Statement, Landlord’s Utility Expense
Statement or Landlord’s Tax Statement, as the case may be, TIME BEING OF THE
ESSENCE, then Tenant shall be deemed to have waived any and all objections it
may have with respect to Taxes, Expenses and Utility Expenses for the preceding
calendar year (and/or Adjustment Year) or the Landlord’s Expense Statement,
Landlord’s Utility Expense Statement or Landlord’s Tax Statement, as the case
may be, pertaining thereto. Tenant agrees to pay all costs involved
in such determination, except in the case of a Tax Adjustment, Expense
Adjustment and Utility Expense Adjustment for any Adjustment Year where it is
determined that Landlord has overcharged Tenant for a Tax Adjustment, Expense
Adjustment and Utility Expense Adjustment for such Adjustment Year by more than
ten percent (10%), in which case Landlord shall pay such reasonable
out-of-pocket costs.
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4.8 PRORATION
AND SURVIVAL. With respect to any Adjustment Year which does
not fall entirely within the Term, Tenant shall be obligated to pay as Expense
Adjustment, Utility Expense Adjustment and Tax Adjustment for such Adjustment
Year only a pro rata share of Expense Adjustment, Utility Expense Adjustment and
Tax Adjustment as hereinabove determined, based upon the number of days of the
Term falling within the Adjustment Year. Following expiration or
termination of this Lease, Tenant shall pay any Rent Adjustments due to Landlord
within fifteen (15) days after the date of each Landlord’s Statement sent to
Tenant. Without limitation of other obligations of Tenant which shall
survive the expiration of the Term, the obligation of Tenant to pay Rent
Adjustments provided for in this Article 4 accruing during the Term shall
survive the expiration or termination of this Lease.
4.9 NO
DECREASE IN BASE RENT. In no event shall any Rent Adjustments
result in a decrease of Base Rent payable hereunder.
4.10 ADDITIONAL
RENT. All amounts payable by Tenant as or on account of Rent
Adjustments or otherwise payable by Tenant under this Lease shall be deemed to
be additional rent becoming due under this Lease.
ARTICLE
5
USE OF
PREMISES
Tenant
shall use and occupy the Premises for general office purposes and for no other
use or purpose.
ARTICLE
6
SERVICES
6.1 SERVICES
PROVIDED. As long as Tenant is not in default under any of the
covenants of this Lease, Landlord shall furnish the following
services:
(a) Air
conditioning and heating when necessary to provide a temperature condition
required, in Landlord’s judgment, for comfortable occupancy of the Premises
under normal business operations, daily from 8:00 a.m. to 6:00 p.m., Saturdays
from 9:00 a.m. to 1:00 p.m., Sundays and public holidays
excepted. Without limitation of the foregoing, the term public
holidays, wherever employed in this Lease, shall include any or all of the
following, at Landlord’s sole discretion: New Year’s Day, Presidents’ Day,
Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day,
Thanksgiving Day and Christmas Day; any holidays celebrated by the State of New
Jersey or the Federal Government; any holidays set forth in any union
contract(s) affecting the Office Complex; and any days prior or subsequent to
such holidays which are commonly designated as non-business days by employers in
the geographic area where the Office Complex is located (for example, the Friday
after Thanksgiving; Friday, when Christmas falls on a Thursday;
etc.). Whenever Tenant’s use or occupation of the Premises exceeds
the design loads for the system providing heating and air conditioning, or
Tenant uses lighting or heat generating machines or equipment which cumulatively
exceed such design loads, or which affect the temperature otherwise maintained
by the heating, ventilating and air conditioning system in the Premises or
Building, Landlord may temper such excess loads by installing supplementary heat
or air conditioning units in the Premises or elsewhere where necessary, and the
cost of such units and the expense of installation, including, without
limitation, the cost of preparing working drawings and specifications, shall be
paid by Tenant as additional rent within ten (10) days after Landlord’s demand
therefor. The expense resulting from the operation and maintenance of
any such supplementary heat or air conditioning units shall be paid by Tenant to
Landlord as additional rent at rates fixed by Landlord. Landlord’s
agreements hereunder are subject to voluntary and mandatory presidential and
governmental restrictions on energy use. In the event Tenant requires
air conditioning or heating during hours other than as set forth hereinabove,
Tenant shall notify Landlord’s property management agent of such requirement as
early as practically possible (but in any event, by no later than 2:00 p.m. on
the prior day) and Landlord shall endeavor in good faith to provide or arrange
for such additional service.
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(b) Domestic
water in common with other tenants for drinking, lavatory and toilet purposes
drawn through fixtures installed by Landlord, or by Tenant in the Premises with
Landlord’s written consent, and hot water in common with other tenants for
lavatory purposes from regular Building supply. Tenant shall pay
Landlord as additional rent at Landlord’s scheduled rates for domestic water and
hot water furnished for any other purpose. Tenant shall not waste or
permit the waste of water.
(c) Janitorial
and cleaning service in accordance with the schedule attached hereto as Exhibit
F. Tenant shall not provide or use any other janitorial or cleaning
services without Landlord’s consent, and then only subject to supervision of
Landlord and at Tenant’s sole responsibility and by a janitor, cleaning
contractor or employees at all times satisfactory to Landlord.
(d) Passenger
elevator service in common with Landlord and other persons, daily from 8:00 a.m.
to 6:00 p.m., Saturdays from 9:00 a.m. to 1:00 p.m., Sundays and public holidays
excepted. Such normal elevator service, if furnished at other times,
shall be optional with Landlord and shall never be deemed a continuing
obligation. Landlord, however, shall provide limited passenger
elevator service daily at all times when such normal passenger service is not
furnished.
(e) On
site parking, at no cost to Tenant. The number of parking spaces at
the Building, which shall be available to Tenant on a non-exclusive basis, shall
be equal to four (4) parking spaces per thousand (1,000) square feet of the
total Rentable Area of the Premises. Landlord acknowledges that three (3) of the
aggregate of the aforesaid parking spaces shall be exclusive to Tenant and shall
be located as shown in the parking plan annexed hereto as Exhibit
I.
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(f) In
the event Tenant requires air conditioning or heating during hours other than as
set forth hereinabove, Tenant shall notify Landlord’s property management agent
of such requirement as early as practically possible (but in any event, by no
later than 2:00 p.m. on the prior day) and Landlord shall endeavor in good faith
to provide or arrange for such additional service. It is agreed that
Tenant shall pay to Landlord the cost of said overtime usage as contemplated
herein upon invoice from Landlord to Tenant at the rate of $100.00 per hour
during the first year of the Term hereof, and thereafter said hourly charge
shall be increased annually by the cost to Landlord of the increase in electric
and gas utility rates for the Building operation, if any.
(g) All
electrical distribution actually serving the Tenant’s electricity requirements
within the Premises shall be equipped with an electrical check meter which will
record the actual kilowatt hours of electric current used by the Tenant during
the billing period within the Premises. The check meter will be read
at the same time monthly as the main Building electrical meter is read or at
such other times as Landlord determines in its sole discretion. For each month
or portion thereof (or other period) falling within the Lease Term (including,
without limitation, the Base Year), the Tenant will be rendered a statement
noting its electrical usage as shown on the electrical check meter for the
equivalent period. The Tenant will then be billed based upon the
following formula:
The sum
which is the product of (a) the cost per kilowatt hour, which shall mean the
total cost per kilowatt hour of electricity at rates charged to Landlord during
the billing period including energy charges, demand charges, surcharges, time of
day charges, fuel adjustment charges, rate adjustment charges, taxes, rebates
and any other factors by the which the utility company or provider uses in
computing its charges, multiplied by (b) the actual number of kilowatt hours
used by the Tenant during such period.
Tenant
shall also be billed an administrative charge of five (5%) percent of the amount
calculated above, if and to the extent permitted by law, for overhead and
supervision.
All
charges due hereunder shall be paid by Tenant within ten (10) days after being
billed therefor by Landlord.
A default
in payment of such bills shall be a default in payment of
Rent. Landlord shall not in any way be liable or responsible to
Tenant for any loss, damage, expenses and causes beyond Landlord’s control,
which Tenant may sustain or incur if either the quantity or character of
electric service is changed.
(h) The
electricity used for the operation of any special air conditioning systems which
may be required for data processing equipment or for other special equipment or
machinery installed by Tenant, shall be paid by Tenant when due if billed
directly to Tenant, or within ten (10) days after being billed therefor by
Landlord. Tenant shall make no alterations or additions to the
electric equipment or appliances without the prior written consent of Landlord
in each instance. Tenant also agrees to purchase from Landlord or its
agents all lamps, bulbs, ballasts and starters used in the Premises during the
Term. Tenant covenants and agrees that at all times its use of
electric current shall never exceed the capacity of the feeders to the Building
or the risers or wiring installed thereon.
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(i) Landlord
may provide such extra or additional services as it is reasonably possible for
Landlord to provide, and as Tenant may request from time to time, within a
reasonable period after the time such extra or additional services are
requested. Tenant shall pay, for such extra or additional services,
an amount equal to one hundred fifteen percent (115%) of Landlord’s actual cost
reasonably incurred in providing such additional services, such amount to be
considered additional rent hereunder. All charges for such extra or
additional services shall be due and payable at the same time as the installment
of Base Rent with which they are billed, or if billed separately, shall be due
and payable within ten (10) days after such billing. Any such
xxxxxxxx for extra or additional services shall include an itemization of the
extra or additional services rendered, and the charge for each such
service.
6.2 FAILURE
TO PAY FOR SERVICES. Failure by Tenant to pay Landlord’s
proper charges for water or other services promptly shall give Landlord, upon
not less than ten (10) days’ notice, the right to discontinue furnishing the
services, and no such discontinuance shall be deemed an eviction or disturbance
of Tenant’s use of the Premises or render Landlord liable for damages or relieve
Tenant from performance of Tenant’s obligations under this Lease.
6.3 FAILURE
TO FURNISH SERVICES. Tenant agrees that Landlord and its
beneficiaries and their agents shall not be liable in damages, by abatement of
Rent or otherwise, for failure to furnish or for delay in furnishing any
service, or for any defect or change in the quantity or quality of electric
energy or other utility or service available for redistribution to the Premises,
nor for any interruption in the supply thereof, when such failure or delay is
occasioned, in whole or in part, by repairs, renewals or improvements, by any
strike, lockout or other labor trouble, by inability to secure electricity, gas,
water or other fuel at the Building after reasonable effort to do so, by any
accident or casualty whatsoever, by the act or default of Tenant or other
parties, or by any cause beyond the reasonable control of Landlord; and such
failures or delays shall never be deemed an eviction or disturbance of Tenant’s
use or possession of the Premises or relieve Tenant from paying Rent or
performing any of its obligations under this Lease.
6.4 REGULATIONS
REGARDING UTILITIES SERVICES. Tenant agrees to cooperate
fully, at all times, with Landlord in abiding by all reasonable regulations and
requirements which Landlord may prescribe for the proper functioning and
protection of all utilities and services reasonably necessary for the operation
of the Premises and the Building. throughout the term of this Lease,
Landlord shall have free access to any and all mechanical installations, and
Tenant agrees that there shall be no construction of partitions or other
obstructions which might interfere with access to or the moving of servicing
equipment to or from the enclosures containing said
installations. Tenant further agrees that neither Tenant nor its
employees, agents, licensees, invitees or contractors shall at any time tamper
with, adjust or otherwise in any manner affect Landlord’s mechanical
installations.
6.5 LANDLORD’S
RIGHT TO DISCONTINUE FURNISHING ELECTRICITY. If Landlord shall
then be providing electricity to Tenant pursuant to applicable provisions of
this Article, Landlord reserves the right to discontinue furnishing electric
energy to the Premises at any time upon not less than ninety (90) days notice to
Tenant provided that Landlord shall not exercise such right unless it
discontinues furnishing electricity to a majority of the office tenants of the
Building, except that if Tenant, despite its diligent efforts, shall be unable
to obtain electric service from the public utility within such ninety
(90) day period, Landlord shall continue to furnish electricity to Tenant until
such time as Tenant would have been able to obtain such electricity had Tenant
continued to exercise its diligent efforts to do so. If Landlord
exercises such right of termination, this Lease shall continue in full force and
effect and shall be unaffected thereby, except only that, from and after the
effective date of such discontinuance, Landlord shall not be obligated to
furnish electric energy to Tenant. If Landlord voluntarily
discontinues furnishing electric energy to Tenant, Landlord shall, prior to the
effective date of such discontinuance, at Tenant’s expense, make such changes in
panel boards, feeders, risers, wiring and other conductors and equipment to the
extent required to permit Tenant to obtain electric energy directly from the
public utility company. If Landlord is required by any legal
requirements to discontinue furnishing electric energy to Tenant, Landlord shall
make such changes in panel boards, feeders, risers, wiring and other conductors
and equipment in order to permit Tenant to obtain electric energy directly from
the public utility company.
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6.6 ELECTRICAL
CAPACITY. Any electric power will be furnished to Tenant by
means of existing Building panel boards, feeders, risers, wiring and other
equipment. No individual piece of equipment or any type of fixture
requiring special wiring or electric power exceeding Building capacity shall be
installed, maintained or operated by Tenant without Landlord’s
consent. In addition, the use of electricity in the Premises shall
not exceed the capacity of the existing feeders and risers to, or wiring in, the
Premises without Landlord’s consent. Any risers or wiring required to
meet Tenant’s excess electrical requirements shall, upon Tenant’s written
request, be installed by Landlord (along with any related alterations, repairs
or expenses), at Tenant’s expense, but only if Landlord determines, in its sole
judgment, that the same are necessary and that same would not cause permanent
damage to the Building or the Premises, cause or create a dangerous or hazardous
condition, entail excessive or unreasonable alterations, repairs or expenses, or
interfere with or disturb other tenants or occupants in the
Building. Tenant shall not install, maintain or operate in the
Premises electrical equipment or fixtures whose total electrical connected load
exceeds the maximum connected load for electricity for the Building without
making a written request for Landlord’s prior written consent
thereto. If Landlord consents to the installation of electrical
fixtures or equipment in excess of the maximum connected load for electricity
for the Building, Tenant’s use of such fixtures or equipment shall be deemed to
have commenced as of the date of Landlord’s consent thereto, and any additional
costs incurred by Landlord as a result of such excess usage (as determined by an
electrical survey to be performed by Landlord at Tenant’s sole cost and expense)
shall be paid by Tenant as additional rent, as billed. Such
additional rent shall be paid until the particular equipment or fixtures have
been removed, Tenant has advised Landlord of such removal, and such removal is
verified by Landlord or its independent utility rate auditor or engineer, at
Tenant’s expense. In no event, however, shall Landlord be obligated
to increase the existing electrical capacity of any portion of the Building’s
electrical system, nor to provide any additional wiring or capacity to meet
Tenant’s additional requirements.
6.7 TAXES. If
any tax is imposed upon Landlord subsequent to the date hereof with respect to
electrical energy furnished as a service to Tenant by any federal, state or
municipal authority then, unless prohibited by law or by any governmental
authority having jurisdiction thereof, Tenant shall pay to Landlord, on demand,
Tenant’s pro rata share of such taxes.
20
ARTICLE
7
CONDITION AND CARE OF
PREMISES
Tenant’s
taking possession of the Premises or any portion thereof shall be conclusive
evidence against Tenant that the portion of the Premises taken possession of was
then in good order and satisfactory condition. No promises of
Landlord to alter, remodel, improve, repair, decorate or clean the Premises or
any part thereof have been made, and no representation respecting the condition
of the Premises, the Building or the Land, has been made to Tenant by or on
behalf of Landlord except to the extent expressly set forth herein or in the
Workletter, if any. Subject to the provisions of Article 15 hereof,
Tenant, at its own expense, shall keep the Premises in good repair and
tenantable condition and shall promptly and adequately repair all damage to the
Premises caused by Tenant or any of its employees, contractors, agents, invitees
or licensees, including replacing or repairing all damaged or broken glass,
fixtures and appurtenances resulting from any such damage, under the supervision
and with the approval of Landlord and within any reasonable period of time
specified by Landlord. If Tenant does not do so promptly and
adequately, Landlord may, but need not, make such repairs and replacements and
Tenant shall pay Landlord the cost thereof on demand.
ARTICLE
8
RETURN OF
PREMISES
8.1 SURRENDER
OF POSSESSION. At the termination of this Lease by lapse of
time or otherwise or upon termination of Tenant’s right of possession without
termination of this Lease, Tenant shall surrender possession of the Premises to
Landlord and deliver all keys and other access devices to the Premises to
Landlord and make known to Landlord the combination of all locks of vaults then
remaining in the Premises, and, subject to the following paragraph, shall return
the Premises and all equipment and fixtures of Landlord therein to Landlord in
as good condition as when Tenant originally took possession or, if a Workletter
is attached to this Lease, when the work provided for in the Workletter is
completed, ordinary wear, loss or damage by fire or other insured casualty, and
damage resulting from the act of Landlord or its employees and agents excepted,
failing which Landlord may restore the Premises and such equipment and fixtures
to such condition and Tenant shall pay the cost thereof to Landlord on
demand.
8.2 INSTALLATIONS
AND ADDITIONS. All installations, additions, partitions,
hardware, light fixtures, non-trade fixtures and improvements, whether temporary
or permanent, except movable furniture and equipment belonging to Tenant, in or
upon the Premises, whether placed there by Tenant or Landlord, shall be
Landlord’s property and, upon termination of this Lease by lapse of time or
otherwise, or of Tenant’s right of possession without termination of this Lease,
shall remain upon the Premises, all without compensation, allowance or credit to
Tenant; provided, however, that if prior to such termination or within ten (10)
days thereafter Landlord so directs by notice, Tenant, at Tenant’s sole cost and
expense, shall promptly remove such of the installations, additions, partitions,
hardware, light fixtures, non-trade fixtures and improvements placed in the
Premises by Tenant as are designated in such notice and repair any damage to the
Premises caused by such removal, and shall restore the Premises to the condition
same was in prior to the Commencement Date of this Lease, failing which Landlord
may remove the same and repair and restore the Premises and Tenant shall pay the
cost thereof to Landlord on demand. At the sole option of Landlord,
Tenant shall leave in place any floor covering without compensation to Tenant,
or Tenant shall remove any floor covering and shall remove all fastenings,
paper, glue, bases or other vestiges and restore the floor surface to its
previous condition, or shall pay to Landlord upon demand the cost for restoring
the floor surface to such condition.
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8.3 TRADE
FIXTURES AND PERSONAL PROPERTY. Tenant shall also remove
Tenant’s furniture, machinery, safes, trade fixtures, Tenant’s Wiring (as
defined in Article 12 below) and other items of movable personal property of
every kind and description from the Premises and repair any damage to the
Premises caused thereby, such removal and restoration to be performed prior to
the end of the Term or within ten (10) days following termination of this Lease
or Tenant’s right of possession, whichever is earlier. If Tenant
fails to remove such items, Landlord may do so, and thereupon the provisions of
Section 17.6 shall apply and Tenant shall pay to Landlord upon demand the cost
of removal and of restoration of the Premises.
8.4 SURVIVAL. All
obligations of Tenant under this Article 8 shall survive the expiration of the
Term or earlier termination of this Lease.
ARTICLE
9
HOLDING
OVER
Tenant
shall pay Landlord for each day Tenant retains possession of the Premises or any
part thereof after termination of this Lease, by lapse of time or otherwise, or
of Tenant’s right to possession of the Premises, an amount which is double the
amount of Base Rent and Rent Adjustments for a day based upon the annual rate of
Base Rent set forth in Section 3.1 and on Rent Adjustments provided for in
Article 4 for the period in which such possession occurs, calculated as though
such period were within the Term (collectively, “Holdover Rent”), and Tenant
shall also pay all damages, consequential as well as direct, sustained by
Landlord by reason of such retention. In the alternative, if Landlord
gives written notice to Tenant of Landlord’s election thereof, such holding over
shall, at Landlord’s election, constitute a month-to-month tenancy under the
terms and conditions of this Lease except that Holdover Rent shall
apply. Acceptance by Landlord of rent after such termination shall
not of itself constitute either the creation of such a month-to-month tenancy or
a renewal. Nothing contained in this Article 9 shall be construed or
shall operate as a waiver of Landlord’s right of reentry or any other right or
remedy of Landlord.
ARTICLE
10
RULES AND
REGULATIONS
Tenant
agrees to observe and not to interfere with the rights reserved to Landlord in
Article 11 and agrees, for itself, its employees, agents, contractors, invitees
and licensees, to comply with the rules and regulations set forth in Exhibit C
attached to this Lease and made a part hereof and such other rules and
regulations as may be adopted by Landlord pursuant to Section 11.1(m) of this
Lease. Any violation by Tenant of any of the rules and regulations
contained in Exhibit C or in any Section of this Lease, or as may hereafter be
adopted by Landlord pursuant to Section 11.1(m) of this Lease, may be
restrained; but whether or not so restrained, Tenant acknowledges and agrees
that it shall be and shall remain liable for all damages, loss, costs and
expenses resulting from any violation by Tenant of any of said rules and
regulations. Nothing contained in this Lease shall be construed to
impose upon Landlord any duty or obligation to enforce said rules and
regulations or the terms, covenants and conditions of any other lease against
any other tenant or any other persons, and Landlord and its beneficiaries shall
not be liable to Tenant for violation of the same by any other tenant, its
employees, agents or invitees, or by any other person.
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ARTICLE
11
RIGHTS RESERVED TO
LANDLORD
11.1 RIGHTS
RESERVED TO LANDLORD. Landlord reserves the following rights,
exercisable without notice and without liability to Tenant for damage or injury
to property, person or business and without effecting an eviction or disturbance
of Tenant’s use or possession or giving rise to any claim for setoff or
abatement of Rent or affecting any of Tenant’s obligations under this
Lease:
(a) To
the exclusive use of the name of the Building and Office Complex for all
purposes, except that Tenant may use such name(s) as its business address and
for no other purpose;
(b)
To change the name or street address of the Building
and/or the Office Complex;
(c) To
install and maintain signs on the exterior and interior of the Building and/or
the Office Complex;
(d) To
prescribe the location and style of the suite number and identification sign or
lettering for the Premises and to designate and limit the space allotted to
Tenant on the directory of the Building;
(e) To
retain at all times, and to use in appropriate instances, pass keys or other
access devices to the Premises;
(f) To
grant to anyone the exclusive right to conduct any business or render any
service in the Building, or the nonexclusive right to use any premises in the
Building for a use which is the same as or similar to the use expressly
permitted to Tenant by Article 5;
(g) To
exhibit the Premises at reasonable hours and to decorate, remodel, repair, alter
or otherwise prepare the Premises for reoccupancy at any time after Tenant
vacates or abandons the Premises;
23
(h) To
enter the Premises at reasonable hours for reasonable purposes, including
inspection and supplying janitorial service or other service to be provided to
Tenant hereunder;
(i) To
require all persons entering or leaving the Building during such hours as
Landlord may reasonably determine from time to time to identify themselves to
security personnel by registration or otherwise in accordance with security
controls, and to establish their right to enter or to leave in accordance with
the provisions of Exhibit
C. Landlord shall not be liable in damages for any error with
respect to admission to or eviction or exclusion from the Building of any
person. In case of fire, invasion, insurrection, mob, riot, civil
disorder, public excitement or other commotion, or threat thereof, Landlord
reserves the right to limit or to prevent access to the Building during the
continuance of the same, to shut down elevator service, to activate elevator
emergency controls, or otherwise to take such action or preventive measures
deemed necessary by Landlord for the safety or security of the tenants or other
occupants of the Building or for the protection of the Building and the property
in the Building. Tenant agrees to cooperate with any reasonable
safety or security program developed by Landlord;
(j) To
regulate access to telephone, electrical and other utility closets in the
Building and to require use of designated contractors for any work involving
access to the same;
(k) To
control and prevent access to Common Areas and other non-general public areas of
the Building;
(l) Provided
that reasonable access to the Premises shall be maintained and the business of
Tenant shall not be interfered with unreasonably, to rearrange, relocate,
enlarge, reduce or change corridors, exits, entrances in or to the Building and
to decorate and, at its own expense, to make repairs, alterations, additions and
improvements, structural or otherwise, in or to the Building or any part
thereof, and any Adjacent Buildings, land, street or alley, including for the
purpose of connection with or entrance into or use of the Building in
conjunction with any adjoining or Adjacent Buildings or buildings, now existing
or hereafter constructed, and may for such purposes erect scaffolding and other
structures reasonably required by the character of the work to be performed, and
during such operations may enter upon the Premises and take into and upon or
through any part of the Building, including the Premises, all materials that may
be required to make such repairs, alterations, improvements or additions, and in
that connection, Landlord may temporarily close public entry ways, other public
spaces, stairways or corridors and interrupt or temporarily suspend any services
or facilities agreed to be furnished by Landlord, all without the same
constituting an eviction of Tenant in whole or in part and without abatement of
Rent by reason of loss or interruption of the business of Tenant or otherwise
and without in any manner rendering Landlord liable for damages or relieving
Tenant from performance of Tenant’s obligations under this
Lease. Landlord, at its option, may make any repairs, alterations,
improvements and additions in and about the Building and the Premises during
ordinary business hours and, if Tenant desires, at Tenant’s option, to have such
work done at times other than business hours, Tenant shall pay all overtime and
additional expenses resulting therefrom; and
(m) From
time to time to make and to adopt such reasonable rules and regulations, in
addition to or other than or by way of amendment or modification of the rules
and regulations contained in Exhibit C or other Sections of
this Lease, for the protection and welfare of the Building and its tenants and
occupants, as Landlord may determine, and Tenant agrees to abide by and comply
with all such rules and regulations.
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11.2 USE OF
ROOF AND LAND. Landlord
specifically excepts and reserves to itself the use of any roof decks, the
exterior portions of the Premises, all rights to the land and improvements below
the improved floor level of the Premises, to the improvements and air rights
above the ceiling of the Premises and to the improvements and air rights located
outside the demising walls of the Premises and to such areas within the Premises
required for installation of utility lines and other installations required to
serve other occupants of the Building and to maintain and repair same, and no
rights with respect thereto are conferred upon Tenant, unless otherwise
specifically provided herein. This Lease does not grant any rights to
light or air.
ARTICLE
12
ALTERATIONS
12.1 CONSENT. Tenant
shall not make, without the prior written consent of Landlord, any alterations,
additions or improvements to the Premises, which consent shall not be
unreasonably withheld, conditioned or delayed for alterations, additions or
improvements to the interior of the Premises which are non-structural in nature,
do not adversely affect any of the Building’s electrical, mechanical, plumbing
or structural systems, do not require a permit for said work from the
appropriate municipal authority and do not adversely affect the exterior facia
walls of the Premises and the Building, and further provided the provisions of
this Lease including, without limitation, this Article, are complied with by
Tenant. No consent shall be required for cosmetic or decorative alterations done
by Tenant in the Premises. If the estimated cost of any such alterations,
additions or improvements (as noted on the plans and specifications delivered to
Landlord), equals or exceeds $10,000, then, at Landlord’s option, no
alterations, additions or improvements can be made until after Tenant has
provided Landlord with a performance bond equal to 125% of the estimated cost of
such alterations, additions or improvements. Promptly after the completion of
any alterations, additions or improvements, Tenant, shall at its expense,
deliver to Landlord three (3) sets of accurate as-built drawings showing such
work as may have been performed by Tenant. Landlord’s decision to refuse such
consent shall be conclusive. If Landlord consents to such
alterations, additions or improvements, before commencement of the work or
delivery of any materials onto the Premises or into the Building, Tenant shall
furnish to Landlord for approval plans and specifications, names and addresses
of contractors, copies of contracts, necessary permits and licenses, and
instruments of indemnification against any and all claims, costs, expenses,
damages and liabilities which may arise in connection with such work, all in
such form, substance and amount as may be satisfactory to
Landlord. In addition, prior to commencement of any such work or
delivery of any materials into the Premises, Tenant shall provide Landlord with
appropriate evidence of Tenant’s ability to pay for such work and materials in
full, and if requested by Landlord, shall deposit with Landlord at such time
such security for the payment of said work and materials as Landlord may
require. All alterations, additions and improvements shall be installed in a
good, workmanlike manner and only new, high-grade materials shall be
used. All such work shall be done only by contractors or mechanics
approved by Landlord and shall be subject to Landlord’s scheduling requirements
and regulations. Tenant further agrees to hold Landlord harmless from
any and all liabilities of every kind and description which may arise out of or
be connected in any way with said alterations, additions or
improvements. Before commencing any work in connection with such
alterations, additions or improvements, Tenant shall furnish Landlord with
certificates of insurance from all contractors performing labor or furnishing
materials insuring Landlord against any and all liabilities which may arise out
of or be connected in any way with said alterations, additions or
improvements. Tenant shall permit Landlord to supervise construction
operations in connection with the foregoing work if Landlord requests to do
so. Tenant shall pay the cost of all such alterations, additions and
improvements, as well as the cost of decorating and repairing any damage to the
Building, including the Premises, occasioned by such alterations, additions and
improvements, including the cost of labor and materials, contractors’ profits,
overhead and general conditions, and a reasonable fee to Landlord. In
connection with Landlord’s or its agents or other professionals review,
modification, approval, supervision or coordination of plans and specifications
for any of Tenant’s work, Tenant shall promptly upon demand therefor reimburse
Landlord or its agents or other professionals for any reasonable out of pocket
fees, expenses and other charges actually incurred in connection with the
review, modification, approval, supervision or coordination of such plans and
specifications. Upon completing any alterations, additions or
improvements, Tenant shall furnish Landlord with contractors’ affidavits in form
required by law, and full and final waivers of lien and receipted bills covering
all labor and materials expended and used. All alterations, additions
and improvements shall comply with all insurance requirements and with all city
and county ordinances and regulations and with the requirements of all state and
federal statutes and regulations.
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12.2 REMOVAL
OF ALTERATIONS. If any alterations are made without the prior
written consent of Landlord, Landlord shall have the right, at its option and in
addition to Landlord’s other rights and remedies, to either require Tenant to
remove such alterations and restore the affected portion(s) of the Premises, the
Building or the Office Complex, as applicable, to their condition immediately
prior thereto, or to do so on Tenant’s behalf, in which case Tenant shall
reimburse Landlord as additional rent for the cost of such removal and
restoration, with interest at the default interest rate, from the date such cost
was incurred until repaid in full, within ten (10) days after receipt of an
invoice therefor. All alterations to the Premises, the Building
and/or the Office Complex made by either party shall become the property of
Landlord and shall remain upon and be surrendered with the Premises at the
expiration or earlier termination of the Term; provided, however, that (a) if
Tenant is not in default under this Lease, then Tenant shall remove, upon the
expiration or earlier termination of the Term, all movable furniture,
furnishings, trade fixtures and other personal property of Tenant and Tenant’s
agents located in the Premises, and (b) Tenant shall remove all alterations as
well as any extraordinary items of the Tenant’s work in the Premises or the
Building (including, without limitation, any wiring and cabling located in
risers outside the Premises) which Landlord designates in writing for removal
prior to the Expiration Date or any such earlier date of termination.
Notwithstanding the provisions of clause “(a)” above, at Landlord’s option,
movable furniture, furnishings and trade fixtures shall be deemed to exclude any
item the removal of which might cause damage to the Premises or the Building or
which would normally be removed from the Premises with the assistance of any
tool or machinery other than a dolly. Tenant shall, at its expense,
repair all damage and injury to the Premises or the Building caused by any
removal and restore same to the condition in which it existed prior to such
installation. Tenant’s obligations under this Section 12.2 shall
survive the Expiration Date or earlier termination of this Lease.
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12.3 LANDLORD
FUNDED IMPROVEMENTS. Anything contained in this Lease to the
contrary notwithstanding, to the extent Landlord has either (i) provided Tenant
with value (by way of a construction allowance or otherwise), or (ii) granted a
credit to Tenant (by way of a rent concession or otherwise) for the express or
implied purpose of funding, in whole or in part, Tenant’s fit-up costs (whether
in connection with the work performed by or on behalf of Tenant in fitting up
the Premises on or about the Commencement Date, or at any later time during the
Term), the fit-up work, fixtures, non-moveable equipment and machinery, and
appurtenances funded thereby (hereinafter collectively referred to as the
“Landlord Funded Improvements”) shall remain the property of Landlord and may
not be removed by Tenant at any time during the Term without Landlord’s prior
written consent, and shall remain in the Premises upon the expiration or earlier
termination of this Lease, unless Landlord directs otherwise pursuant to Section
12.2 above. Landlord alone shall be entitled to depreciate any
Landlord Funded Improvements as an asset for tax purposes.
12.4 TENANT’S
WIRING. Tenant's installation of
telephone lines, cables, wiring and other electronic telecommunications
services, wiring and equipment (collectively, the "Tenant Wiring"), shall be
subject to the terms and conditions of this Lease, including, without
limitation, this Article and Articles 6, 8 and 11 above. Without limiting the
generality of the foregoing, Landlord hereby requires, and Tenant herein agrees,
that upon the expiration or earlier termination of this Lease, Tenant shall
remove, at its sole cost and expense, all of the Tenant Wiring installed by
Tenant and/or its telecommunications services provider. Any costs and expenses
which may be incurred by Landlord as a result of the foregoing, including,
without limitation, any damage to the Premises or the Building caused by
Tenant's removal of Tenant Wiring, shall be reimbursed by Tenant to Landlord,
upon demand, as additional rent. In the event Landlord elects at its sole option
not to have Tenant remove the Tenant Wiring and in lieu thereof to retain any
Tenant Wiring in the Building, the Tenant Wiring shall be left in the Building
as installed and same shall be surrendered by Tenant to Landlord in good
condition and good working order, lien free and properly labeled at its place of
installation and/or demarcation point.
ARTICLE
13
ASSIGNMENT AND
SUBLETTING
13.1 ASSIGNMENT
AND SUBLETTING. Tenant, without the prior written consent of
Landlord in each instance, shall not (a) assign, transfer, mortgage, pledge,
hypothecate or encumber or subject to or permit to exist upon or be subjected to
any lien or charge, this Lease or any interest under it, (b) allow to exist or
occur any transfer of or lien upon this Lease or Tenant’s interest herein by
operation of law, (c) sublet the Premises or any part thereof, (d) permit the
use or occupancy of the Premises or any part thereof for any purpose not
provided for under Article 5 of this Lease or by anyone other than Tenant and
Tenant’s agents and employees, or (e) cause, suffer or permit to occur any
“Change of Control” (as such term is defined in Section 13.8
hereof). Landlord has the absolute right to withhold its consent
without giving any reason whatsoever, except as herein expressly provided to the
contrary. In no event shall this Lease be assigned or assignable by
voluntary or involuntary bankruptcy proceedings or otherwise, and in no event
shall this Lease or any rights or privileges hereunder be an asset of Tenant
under any bankruptcy, insolvency or reorganization proceedings. In
addition, a transfer of all or substantially all of the assets of Tenant or any
guarantor of this Lease (whether Tenant or guarantor is a partnership,
corporation or other type of entity) either by merger, consolidation, or
otherwise (however accomplished, whether in a single transaction or in a series
of related or unrelated transactions), or a so-called “lease takeover” agreement
(that is, an agreement pursuant to which another entity agrees to become
responsible for all or part of Tenant’s obligations under this Lease without
actually entering into this Lease), shall be deemed a voluntary assignment of
this Lease, subject to the provisions of this Article 13.
27
13.2 RENTALS
BASED ON NET INCOME. Without limiting the generality of the
foregoing provisions of this Article 13, Tenant expressly covenants and agrees
not to enter into any lease, sublease, license, concession or other agreement
for use, occupancy or utilization of the Premises which provides for rental or
other payment for such use, occupancy or utilization based in whole or in part
on the net income or profits derived by any person from the property leased,
used, occupied or utilized (other than an amount based upon a fixed percentage
or percentages of receipts or sales), and that any such purported lease,
sublease, license, concession or other agreement shall be absolutely void and
ineffective as a conveyance of any right or interest in the possession, use,
occupancy or utilization of any part of the Premises.
13.3 TENANT TO
REMAIN OBLIGATED. Consent by Landlord to any assignment,
subletting, use, occupancy or transfer shall not operate to relieve Tenant from
any covenant or obligation hereunder except to the extent, if any, expressly
provided for in such consent, or be deemed to be a consent to or relieve Tenant
from obtaining Landlord’s consent to any subsequent assignment, transfer, lien,
charge, subletting, use or occupancy. Tenant shall pay all of
Landlord’s costs, charges and expenses, including attorneys’ fees, incurred in
connection with any assignment, transfer, lien, charge, subletting, use or
occupancy made or requested by Tenant. Tenant agrees that all
advertising by Tenant or on Tenant’s behalf with respect to the assignment of
this Lease or subletting of space must be approved in writing by Landlord prior
to publication.
13.4 TENANT’S
NOTICE; LANDLORD'S RIGHT TO TERMINATE. Tenant, by notice in
writing, shall advise Landlord of its intention from, on and after a stated date
(which shall not be less than sixty (60) days after the date of Tenant’s notice)
to assign this Lease or sublet any part or all of the Premises for the balance
or any part of the Term, and, in such event, Landlord shall have the right, to
be exercised by giving written notice to Tenant within thirty (30) days after
receipt of Tenant’s notice, to recapture the space described in Tenant’s notice
and such recapture notice, if given, shall terminate this Lease with respect to
the space therein described as of the date stated in Tenant’s
notice. Tenant’s notice shall state the name and address of the
proposed subtenant or assignee, and a true and complete copy of the proposed
sublease or assignment and sufficient information to permit Landlord to
determine the financial responsibility and character of the proposed subtenant
or assignee shall be delivered to Landlord with said notice. Tenant
shall notify Landlord prior to engaging a real estate broker or other real
estate consultant in connection with any proposed assignment or sublease, and
Landlord shall have the right to approve, in the exercise of reasonable
judgment, such real estate broker or other consultant. Any
assignment, sublease or encumbrance shall be effected on forms either prepared
by Landlord or approved in advance by Landlord, as Landlord may
elect. If Tenant’s notice covers all of the space hereby demised, and
if Landlord gives its recapture notice with respect thereto, the Term of this
Lease shall expire on the date stated in Tenant’s notice as fully and completely
as if that date had been herein definitely fixed for the expiration of the
Term. If, however, this Lease is terminated pursuant to the foregoing
with respect to less than the entire Premises, Base Rent and Tenant’s
Proportionate Share as defined herein shall be adjusted on the basis of the
number of rentable square feet retained by Tenant, and this Lease as so amended
shall continue thereafter in full force and effect; provided that Tenant shall
pay all costs in connection with the physical subdivision of any portion of the
Premises.
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13.5 LANDLORD’S
CONSENT. If
Landlord, upon receiving Tenant’s notice with respect to any such space, does
not exercise its right to terminate as aforesaid, Landlord will not unreasonably
withhold its consent to Tenant’s assignment of this Lease or subletting the
space covered by its notice. Landlord shall not be deemed to have
unreasonably withheld its consent to a sublease of part or all of the Premises
or an assignment of this Lease if its consent is withheld
because: (a) Tenant is then in default hereunder; (b) any notice of
termination of this Lease or termination of Tenant’s possession was given under
Article 17; (c) the portion of the Premises which Tenant proposes to sublease,
including the means of ingress thereto and egress therefrom and the proposed use
thereof, or the remaining portion of the Premises, or both, will violate any
city, state or federal law, ordinance or regulation, including, without
limitation, any applicable building code or zoning ordinances; (d) the proposed
use of the Premises by the subtenant or assignee does not conform with the use
permitted by Article 5; (e) in the reasonable judgment of Landlord, the proposed
subtenant or assignee is of a character or is engaged in a business which would
be deleterious to the reputation of the Building, or the subtenant or assignee
is not sufficiently financially responsible to perform its obligations under the
proposed sublease or assignment; (f) the proposed subtenant or assignee is a
government or a government agency; (g) the proposed subtenant or assignee is an
occupant of the Office Complex or an entity to whom Landlord or Landlord's agent
have been marketing space in the Office Complex; (h) Tenant has failed to notify
Landlord prior to seeking the services of a real estate broker or other real
estate consultant, as set forth above; or (i) in the course of seeking an
assignee, subtenant or other occupant of its space, Tenant has publicly
advertised (or permitted the public advertisement of) a rental rate that is
lower than the rental rate then payable by Tenant pursuant to this Lease;
provided, however, that the foregoing are merely examples of reasons for which
Landlord may withhold its consent and shall not be deemed exclusive of any
permitted reasons for reasonably withholding consent, whether similar to or
dissimilar from the foregoing examples. In the event of any
assignment hereunder, any options contained in this Lease with respect to
additional term(s), additional space, or otherwise, shall automatically lapse
and be of no further force or effect, unless otherwise expressly set forth in
this Lease.
13.6 PROFITS. If
Tenant, having first obtained Landlord’s consent to any sublease or assignment,
or if Tenant or a trustee in bankruptcy for Tenant pursuant to the Bankruptcy
Code, assigns this Lease or sublets the Premises, or any part thereof, at a
rental or for other consideration in excess of the Rent or pro rata portion
thereof due and payable by Tenant under this Lease, then Tenant shall pay to
Landlord as additional rent fifty percent (50%) of any such excess rent or other
monetary consideration immediately upon receipt under any such
assignment after deducting therefrom Tenant’s Costs (as defined
below), or, in the case of a sublease, (a) on the first day of each month during
the term of any sublease, fifty percent (50%) of the excess of all rent and
other consideration due from the subtenant for such month over the Rent then
payable to Landlord pursuant to the provisions of this Lease for said month
after deducting therefrom Tenant’s Costs (or, if only a portion of the Premises
is being sublet, fifty percent (50%) of the excess of all rent and other
consideration due from the subtenant for such month over the portion of the Rent
then payable to Landlord pursuant to the provisions of this Lease for said month
which is allocable on a square footage basis to the space sublet) after
deducting therefrom Tenant’s Costs) and (b) immediately upon receipt thereof,
fifty percent (50%) of any other consideration realized by Tenant from such
subletting after deducting therefrom Tenant’s Costs; it being agreed, however,
that Landlord shall not be responsible for any deficiency if Tenant assigns this
Lease or sublets the Premises or any part thereof at a rental less than that
provided for herein. Acceptance by Landlord of any payments due under
this Section 13.5 shall not be deemed to constitute approval by Landlord of any
sublease or assignment, nor shall such acceptance waive any rights of Landlord
hereunder. Landlord shall have the right to inspect and audit
Tenant’s books and records relating to any assignment or
sublease.
29
For
purposes hereof, the term “Tenant’s Costs” shall mean,
(1) the amount of any customary and reasonable brokerage fees or commissions
actually paid to a broker as a result of any assignment or subletting by Tenant
hereunder and any customary and reasonable advertising fees actually expended by
any such broker; (2) reasonable attorneys’ fees directly related to the
assignment of this Lease or the subletting of the space; and (3) the actual out
of pocket cost to Tenant of any additional improvements made to prepare the
space in question for the occupancy of the subtenant or the assignee thereof,
and in the case of a subletting, any rent abatement and/or concession or work
allowance granted by Tenant to such subtenant in lieu of or in addition to
Tenant’s performance of any such improvements. Tenant’s Costs shall be deemed to
have been fully amortized over the term of the sublease, in the case of a
sublease, or the remaining term of the Lease, in the case of an
assignment.
13.7 ASSIGNEE
TO ASSUME OBLIGATIONS. If Tenant assigns this Lease as
permitted herein, the assignee shall expressly assume all of the obligations of
Tenant hereunder in a written instrument satisfactory to Landlord and furnished
to Landlord not later than fifteen (15) days prior to the effective date of the
assignment. If Tenant subleases the Premises as permitted herein,
Tenant shall obtain and furnish to Landlord, not later than fifteen (15) days
prior to the effective date of such sublease and in form satisfactory to
Landlord, the written agreement of such subtenant to the effect that the
subtenant, at Landlord’s option and written request, will attorn to Landlord in
the event this Lease terminates before the expiration of the
sublease.
13.8 CHANGE OF
CONTROL. Notwithstanding anything to the contrary in this
Article 13, if Tenant is a corporation (other than a corporation the stock of
which is publicly traded) the term “Change of Control” shall mean
any direct or indirect change in the legal or beneficial ownership or control of
the shares of stock which constitute control of Tenant other than by reason of
gift or death. The term “control” (or “Control”), as used herein,
means the power, directly or indirectly, to direct or cause the direction of the
management or policies of Tenant. If Tenant is a partnership, whether
general or limited, or a limited liability company, the term “Change of Control”
shall mean any direct or indirect change in the legal or beneficial ownership or
control of the partnership interests or, as the case may be, any change in the
membership or control of said limited liability company, which constitute
control of Tenant other than by reason of gift or death.
30
13.9 COSTS AND
LEGAL FEES. Tenant shall reimburse Landlord on demand as
additional rent for any reasonable costs that may be incurred by Landlord in
connection with said assignment or sublease, including the costs of making
investigations as to the acceptability of the proposed assignee or subtenant and
the reasonable legal costs incurred in connection with the granting of any
requested consent.
13.10 TIME
LIMITATION. If Landlord’s consent to an assignment or
subletting is given, and such transaction does not become fully binding upon the
parties thereto and effective within sixty (60) days after the date of Tenant’s
notice as set forth in Section 13.4 hereof for any reason, then Landlord’s
consent to such transaction shall be deemed null and void, and Tenant’s
compliance with the provisions of Section 13.4 and other applicable provisions
of this Article shall again be necessary in the event Tenant desires to assign
this Lease or sublease all or any portion of the Premises, even in connection
with the same transaction as that initially proposed by Tenant in the Tenant’s
notice.
13.11 INDEMNIFICATION. Tenant
hereby indemnifies, defends and holds Landlord and Landlord’s agents harmless
from and against any and all claims, demands, liabilities, causes of action,
suits, judgments, damages and expenses (including litigation costs and
attorneys’ fees) that may be made against Landlord and/or Landlord’s agents
based on, arising out of, or in any way relating to (directly or indirectly, in
whole or in part) any assignment or encumbrance (or attempted assignment or
encumbrance) of this Lease, or any subletting (or attempted subletting) of any
part of the Premises including, without limitation, claims by (i) any
assignee or subtenant or proposed assignee or subtenant, or (ii) any
brokers or other persons claiming a commission or similar compensation in
connection with the proposed assignment or sublease, or any termination of this
Lease by Landlord pursuant to Section 13.4 above.
ARTICLE
14
WAIVER OF CERTAIN CLAIMS;
INDEMNITY BY TENANT
14.1 WAIVER OF
CERTAIN CLAIMS. To the extent not prohibited expressly by law,
Tenant releases Landlord and its beneficiaries, if any, and their agents,
servants and employees, from and waives all claims for damages to person or
property sustained by Tenant or by any occupant of the Premises or the Office
Complex, or by any other person, resulting directly or indirectly from fire or
other casualty, cause or any existing or future condition, defect, matter or
thing in or about the Premises, the Office Complex or any part of it, or from
any equipment or appurtenance therein, or from any accident in or about the
Office Complex, or from any act or neglect of any tenant or other occupant of
the Office Complex or any part thereof or of any other person, including
Landlord, and its agents, employees and contractors. This Section
shall apply especially, but not exclusively, to damage caused by water, snow,
frost, steam, excessive heat or cold, sewerage, gas, odors or noise, or the
bursting or leaking of pipes or plumbing fixtures, broken glass, sprinkling or
air conditioning devices or equipment, or flooding of basements, and shall apply
without distinction as to the person whose act or neglect was responsible for
the damage and whether the damage was due to any of the acts specifically
enumerated above, or from any other thing or circumstance, whether of a like
nature or of a wholly different nature.
31
14.2 DAMAGE
CAUSED BY TENANT’S NEGLECT. If any damage to the Premises or
the Office Complex or any equipment or appurtenance therein, whether belonging
to Landlord or to other tenants or occupants of the Office Complex, results from
any act or neglect of Tenant, its employees, agents, contractors, licensees or
invitees, Tenant shall be liable therefor and Landlord, at its option, may
repair such damage and Tenant, upon demand by Landlord, shall reimburse Landlord
for all costs of such repairs and damages in excess of amounts, if any, paid to
Landlord under insurance covering such damage.
14.3 TENANT
RESPONSIBLE FOR PERSONAL PROPERTY. All personal property
belonging to Tenant or any occupant of the Premises that is in the Project or
the Premises shall be there at the risk of Tenant or other person only and
Landlord shall not be liable for damage thereto or theft or misappropriation
thereof.
14.4 INDEMNIFICATION. To
the extent not expressly prohibited by law, Tenant agrees to hold Landlord and
its agents, employees, and contractors harmless and to indemnify each of them
against claims and liabilities, including reasonable attorneys’ fees, for
injuries to all persons and damage to or theft, misappropriation or loss of
property occurring in or about the Premises or the Office Complex arising from
Tenant’s occupancy of the Premises or the conduct of its business or from any
activity, work or thing done, permitted or suffered by Tenant in or about the
Premises or the Office Complex or from any breach or default on the part of
Tenant in the performance of any covenant or agreement on the part of Tenant to
be performed pursuant to the terms of this Lease or due to any other act or
omission of Tenant, its agents, contractors, invitees, licensees or employees,
but only to the extent of Landlord’s liability, if any, in excess of amounts, if
any, paid to Landlord under insurance covering such claims or
liabilities.
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ARTICLE
15
DAMAGE OR DESTRUCTION BY
CASUALTY
15.1 DAMAGE OR
DESTRUCTION BY CASUALTY. If the Premises or the Building are
damaged by fire or other casualty and if such damage does not render all or a
substantial portion of the Premises or the Building untenantable, then Landlord
shall proceed to repair and restore the same with reasonable promptness, subject
to reasonable delays for insurance adjustments and delays caused by matters
beyond Landlord’s reasonable control. If any such damage renders all
or a substantial portion of the Premises or the Building untenantable, Landlord,
with reasonable promptness after the occurrence of such damage, shall estimate
the length of time that will be required to substantially complete the repair
and restoration of such damage and shall advise Tenant by notice of such
estimate. If it is estimated that the amount of time required to
substantially complete such repair and restoration will exceed four hundred
fifty (450) days from the date such damage occurred, then either Landlord or
Tenant (but as to Tenant, only if all or a substantial portion of the Premises
are rendered untenantable) shall have the right to terminate this Lease as of
the date of such damage upon giving notice to the other at any time within
twenty (20) days after Landlord gives Tenant the notice containing said estimate
(it being understood that, if it elects to do so, Landlord may also give such
notice of termination together with the notice containing said
estimate). Unless this Lease is so terminated, Landlord shall proceed
with reasonable promptness to repair and restore the Premises, subject to
reasonable delays for insurance adjustments and delays caused by matters beyond
Landlord’s reasonable control, and also subject to zoning laws and building
codes then in effect. Landlord shall have no liability to Tenant, and
Tenant shall not be entitled to terminate this Lease, except as hereinafter
provided, if such repairs and restoration in fact are not completed within the
time period estimated by Landlord or within four hundred fifty (450)
days. If the Premises are not repaired or restored within five
hundred forty (540) days after the date of such fire or other casualty, then
either party may terminate this Lease, effective as of the date of such fire or
other casualty, by written notice given to the other party not later than thirty
(30) days after the expiration of said five hundred forty (540) days period, but
prior to substantial completion of repair or
restoration. Notwithstanding anything to the contrary set forth
herein, (a) Landlord shall have no duty pursuant to this Section to repair or
restore any portion of the alterations, additions or improvements owned or made
by or on behalf of Tenant in the Premises or existing in the Premises as of the
date such space is leased to, or occupied by, Tenant, or to expend for any
repair or restoration amounts in excess of insurance proceeds paid to Landlord
and available for repair or restoration; (b) Tenant shall not have the right to
terminate this Lease pursuant to this Section if the damage or destruction was
caused by the act or neglect of Tenant, its agents or employees; and (c) if any
such damage rendering all or a substantial portion of the Premises or the
Building untenantable shall occur during the last two (2) years of the Term,
Landlord shall have the option to terminate this Lease by giving written notice
to Tenant within sixty (60) days after the date such damage occurred, and if
such option is so exercised, this Lease shall terminate as of the date of such
notice. It is the intention of Landlord and Tenant that the
provisions of this Article 15 shall override N.J.S.A. 46:8-6 and 7.
15.2 ABATEMENT
OF RENT. In the event any fire or casualty damage not caused
by the act or neglect of Tenant, its agents or employees, renders the Premises
untenantable and if this Lease is not terminated pursuant to Section 15.1 by
reason of such damage, then Rent shall xxxxx during the period beginning with
the date of such damage and ending with the date Landlord tenders the Premises
to Tenant as being ready for occupancy. Such abatement shall be in an
amount bearing the same ratio to the total amount of Rent for such period as the
portion of the Premises not ready for occupancy from time to time bears to the
entire Premises. In the event of termination of this Lease pursuant
to Section 15.1, Rent shall be apportioned on a per diem basis and shall be paid
to the date of the fire or casualty.
ARTICLE
16
EMINENT
DOMAIN
If the
entire Building or a substantial part thereof, or any part thereof which
includes all or a substantial part of the Premises, shall be taken or condemned
by any competent authority for any public or quasi-public use or purpose, the
Term of this Lease shall end upon and not before the earlier of the date when
the possession of the part so taken shall be required for such use or purpose or
the effective date of the taking, and without apportionment of the award to or
for the benefit of Tenant. If any condemnation proceeding shall be
instituted in which it is sought to take or damage any part of the Building, the
taking of which, in Landlord’s opinion, would prevent the economical operation
of the Building, or if the grade of any street or alley adjacent to the Building
is changed by any competent authority, and such taking, damage or change of
grade makes it necessary or desirable to remodel the Building to conform to the
taking, damage or changed grade, Landlord shall have the right to terminate this
Lease upon written notice given to Tenant not less than ninety (90) days prior
to the date of termination designated in said notice. In either of
these events, Rent at the then current rate shall be apportioned as of the date
of the termination. No money or other consideration shall be payable
by Landlord to Tenant for the right of termination, and Tenant shall have no
right to share in the condemnation award, whether for a total or partial taking,
for loss of Tenant’s leasehold or improvements or other loss or expenses or to
share in any judgment for damages caused by the change of
grade.
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ARTICLE
17
DEFAULT
17.1
EVENTS OF
DEFAULT. The occurrence of any one or more of the following
matters constitutes a Default by Tenant under this Lease:
(a) Failure by
Tenant to pay any Rent within five (5) days after notice from Landlord to Tenant
of said failure to pay the same on the due date;
(b) Failure by
Tenant to pay, within five (5) days after notice from Landlord to Tenant of said
failure to pay on the due date, any other monies required to be paid by Tenant
under this Lease;
(c) Failure by
Tenant to observe or perform any of the covenants with respect to assignment and
subletting set forth in Article 13;
(d) Failure by
Tenant to comply with Tenant’s warranties, representations or covenants set
forth in Article 26;
(e) Failure by
Tenant to cure, immediately after receipt of notice from Landlord, any hazardous
condition which Tenant has created in violation of law or of this
Lease;
(f) Failure by
Tenant to cure a default arising pursuant to Section 21.4 of this Lease within
the period of time provided in said Section; or any other failure by Tenant to
maintain the insurance required to be maintained by Tenant pursuant to Article
21, if such failure continues for forty-eight hours (48) following notice
thereof from Landlord;
(g) Failure by Tenant
to observe or perform any other covenant, agreement, condition or provision of
this Lease not otherwise referred to in this Section 17.1, if such failure
continues for thirty (30) days after notice thereof from Landlord to
Tenant;
(h) The levy upon,
under writ of execution or the attachment by legal process of, the leasehold
interest of Tenant, or the filing or creation of a lien with respect to such
leasehold interest, which lien shall not be released or discharged within ten
(10) days from the date of such filing;
(i) Tenant
vacates or abandons the Premises or fails to take possession of the Premises
when available for occupancy (the transfer of a substantial part of the
operations, business and personnel of Tenant to some other location being
deemed, without limiting the meaning of the term “vacates or abandons,” to be a
vacation or abandonment within the meaning of this clause (i)), whether or not
Tenant thereafter continues to pay Rent due under this Lease;
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(j) Tenant
becomes insolvent or bankrupt or admits in writing its inability to pay its
debts as they mature, or makes an assignment for the benefit of creditors, or
applies for or consents to the appointment of a trustee or receiver for Tenant
or for the major part of its property;
(k) A trustee
or receiver is appointed for Tenant or for the major part of its property and is
not discharged within sixty (60) days after such appointment; or
(l) Any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other
proceeding for relief under any bankruptcy law, or similar law for the relief of
debtors, is instituted (i) by or on behalf of Tenant or (ii) against Tenant and
is allowed against it or is consented to by it or is not dismissed within sixty
(60) days after such institution.
17.2 RIGHTS
AND REMEDIES OF LANDLORD. If a Default occurs, Landlord shall
have the rights and remedies set forth in this Article 17, which shall be
distinct, separate and cumulative and shall not operate to exclude or deprive
Landlord of any other right or remedy allowed it by law:
(a) Landlord may
terminate this Lease by giving to Tenant notice of Landlord’s election to do so,
in which event the Term of this Lease shall end, and all right, title and
interest of Tenant hereunder shall expire, on the date stated in such notice and
demanding that Tenant deliver possession of the Premises on such
date;
(b) Landlord may
terminate the right of Tenant to possession of the Premises without terminating
this Lease by giving notice to Tenant that Tenant’s right to possession shall
end on the date stated in such notice, whereupon the right of Tenant to
possession of the Premises or any part thereof shall cease on the date stated in
such notice and demanding that Tenant deliver possession of the Premises on such
date; and
(c) Landlord may
enforce the provisions of this Lease and may enforce and protect the rights of
Landlord hereunder by a suit or suits in equity or at law for the specific
performance of any covenant or agreement contained herein, or for the
enforcement of any other appropriate legal or equitable remedy, including
recovery of all moneys due or to become due from Tenant under any of the
provisions of this Lease.
17.3 RIGHT TO
RE-ENTER. If Landlord exercises either of the remedies
provided in Sections 17.2(a) or (b), Tenant shall surrender possession and
vacate the Premises and immediately deliver possession thereof to Landlord, and
Landlord may re-enter and take complete and peaceful possession of the Premises,
with or without process of law, full and complete license to do so being hereby
granted to Landlord, and Landlord may remove all occupants and property
therefrom, using such force as may be necessary, without being deemed guilty in
any manner of trespass, eviction or forcible entry and detainer and without
relinquishing Landlord’s right to Rent or any other right given to Landlord
hereunder or by operation of law.
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17.4 CURRENT
DAMAGES. If Landlord terminates the right of Tenant to
possession of the Premises without terminating this Lease, Landlord shall have
the right to immediate recovery of all amounts then due
hereunder. Such termination of possession shall not release Tenant,
in whole or in part, from Tenant’s obligation to pay Rent hereunder for the full
Term, and Landlord shall have the right, from time to time, to recover from
Tenant, and Tenant shall remain liable for, all Base Rent, Rent Adjustments and
any other sums accruing as they become due under this Lease during the period
from the date of such notice of termination of possession to the stated end of
the Term. In any such case, Landlord may relet the Premises or any
part thereof for the account of Tenant for such rent, for such time (which may
be for a term extending beyond the Term of this Lease) and upon such terms as
Landlord shall determine and may collect the rents from such
reletting. Landlord shall not be required to accept any tenant
offered by Tenant or to observe any instructions given by Tenant relative to
such reletting. Also, in any such case, Landlord may make repairs,
alterations and additions in or to the Premises and redecorate the same to the
extent deemed by Landlord necessary or desirable and in connection therewith
change the locks or other access devices to the Premises, and Tenant upon demand
shall pay the cost of all of the foregoing together with Landlord’s expenses of
reletting. The rents from any such reletting shall be applied first
to the payment of the expenses of reentry, redecoration, repair and alterations
and the expenses of reletting and second to the payment of Rent herein provided
to be paid by Tenant. Any excess or residue shall operate only as an
offsetting credit against the amount of Rent due and owing as the same
thereafter becomes due and payable hereunder, and the use of such offsetting
credit to reduce the amount of Rent due Landlord, if any, shall not be deemed to
give Tenant any right, title or interest in or to such excess or residue and any
such excess or residue shall belong to Landlord solely, and in no event shall
Tenant be entitled to a credit on its indebtedness to Landlord in excess of the
aggregate sum (including Base Rent and Rent Adjustments) which would have been
paid by Tenant for the period for which the credit to Tenant is being
determined, had no Default occurred. No such reentry or repossession,
repairs, alterations and additions, or reletting shall be construed as an
eviction or ouster of Tenant or as an election on Landlord’s part to terminate
this Lease, unless a written notice of such intention is given to Tenant, or
shall operate to release Tenant in whole or in part from any of Tenant’s
obligations hereunder, and Landlord, at any time and from time to time, may xxx
and recover judgment for any deficiencies remaining after the application of the
proceeds of any such reletting.
17.5 FINAL
DAMAGES. If this Lease is terminated by Landlord pursuant to
Section 17.2(a), Landlord shall be entitled to recover from Tenant all Rent
accrued and unpaid for the period up to and including such termination date, as
well as all other additional sums payable by Tenant, or for which Tenant is
liable or for which Tenant has agreed to indemnify Landlord under any of the
provisions of this Lease, which may be then owing and unpaid, and all costs and
expenses, including court costs and attorneys’ fees incurred by Landlord in the
enforcement of its rights and remedies hereunder, and, in addition, Landlord
shall be entitled to recover as damages for loss of the bargain and not as a
penalty (a) the unamortized portion of any concessions offered by Landlord to
Tenant in connection with this Lease, including without limitation Landlord’s
contribution to the cost of tenant improvements and alterations, if any,
installed by either Landlord or Tenant pursuant to this Lease or any Workletter,
(b) the aggregate sum which at the time of such termination represents the
excess, if any, of the present value of the aggregate rents which would have
been payable after the termination date had this Lease not been terminated,
including, without limitation, Base Rent at the annual rate or respective annual
rates for the remainder of the Term provided for in Article 3 of this Lease or
elsewhere herein and the amount projected by Landlord to represent Rent
Adjustments for the remainder of the Term pursuant to Article 4 of this Lease,
over the then present value of the then aggregate fair rental value of the
Premises for the balance of the Term, such present worth to be computed in each
case on the basis of a four percent (4%) per annum discount from the respective
dates upon which such rentals would have been payable hereunder had this Lease
not been terminated, and (c) any damages in addition thereto, including
reasonable attorneys’ fees and court costs, which Landlord sustains as a result
of the breach of any of the covenants of this Lease other than for the payment
of Rent.
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17.6 REMOVAL
OF PERSONAL PROPERTY. All property of Tenant removed from the
Premises by Landlord pursuant to any provision of this Lease or applicable law
may be handled, removed or stored by Landlord at the cost and expense of Tenant,
and Landlord shall not be responsible in any event for the value, preservation
or safekeeping thereof. Tenant shall pay Landlord for all expenses
incurred by Landlord with respect to such removal and storage so long as the
same is in Landlord’s possession or under Landlord’s control. All
such property not removed from the Premises or retaken from storage by Tenant
within thirty (30) days after the end of the Term, however terminated, at
Landlord’s option, shall be conclusively deemed to have been conveyed by Tenant
to Landlord as by xxxx of sale without further payment or credit by Landlord to
Tenant.
17.7 ATTORNEYS'
FEES. Tenant shall pay on demand all of Landlord’s costs,
charges and expenses, including, without limitation, court costs and attorneys’
fees, incurred in enforcing Tenant’s obligations under this Lease, incurred by
Landlord in any action brought by Tenant in which Landlord is the prevailing
party, or incurred by Landlord in any litigation, negotiation or transaction in
which Tenant causes Landlord, without Landlord’s fault, to become involved or
concerned.
17.8 ASSUMPTION
OR REJECTION IN BANKRUPTCY. If Tenant is adjudged bankrupt, or
a trustee in bankruptcy is appointed for Tenant, Landlord and Tenant, to the
extent permitted by law, agree to request that the trustee in bankruptcy
determine within sixty (60) days thereafter whether to assume or to reject this
Lease.
17.9 DEFAULT
UNDER OTHER LEASES. If the term of any lease, other than this
Lease, for any space in the Project under which Tenant or Tenant’s Subsidiary
(as such term is defined in Section 27.1(b) hereof) is now or hereafter the
tenant, shall be terminated or terminable after the making of this Lease because
of any monetary and/or material non-monetary default by Tenant or Tenant’s
Subsidiary under such other lease, or if Tenant and/or Tenant’s Subsidiary is
otherwise in monetary and/or material non-monetary default under such other
lease, then such fact shall empower Landlord, at Landlord’s sole option, to
terminate this Lease by notice to Tenant or to exercise any of the rights or
remedies set forth in Section 17.2.
17.10 WAIVER OF
RIGHT OF REDEMPTION. Tenant hereby waives all right of
redemption to which Tenant or any person under Tenant may be entitled by any law
now or hereafter in force. In addition, in the event of a Default
consequent to which Landlord recovers possession of the Premises, Landlord shall
be under no duty to mitigate Landlord’s damages.
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ARTICLE
18
SUBORDINATION
18.1 SUBORDINATION. Landlord
may have heretofore executed and delivered or may hereafter from time to time
execute and deliver a first mortgage or first trust deed in the nature of a
mortgage (both hereinafter referred to as a “First Mortgage”) or any other
mortgage (the First Mortgage and any other mortgages, whether heretofore or
hereafter effected, are sometimes herein referred to singly or collectively as
the “Mortgage”), against
the Land and Building or any interest therein. This Lease is subject and
subordinate to the lien, provisions, operation and effect of the First Mortgage,
any Mortgage, to all funds and indebtedness intended to be secured thereby, and
to all renewals, extensions, modifications, consolidations, replacements or
refinancings thereof. The holder of any Mortgage to which
this Lease is subordinate shall have the right (subject to any required approval
of the holders of any other Mortgage that is superior to such Mortgage) at any
time to unilaterally declare this Lease to be superior to such
Mortgage. Although no instrument or act on the part of Tenant shall
be necessary to effectuate such subordination, if requested by the mortgagee or
trustee under any First Mortgage, or by the holder of any other Mortgage, Tenant
will nevertheless, within five (5) days after request therefor, either (a)
subordinate its interest in this Lease to said First Mortgage and any other
Mortgage, and to any and all advances made thereunder and to the interest
thereon, and to all renewals, replacements, supplements, amendments,
modifications and extensions thereof, or (b) make certain of Tenant’s rights and
interests in this Lease superior thereto; and Tenant will promptly execute and
deliver such agreement or agreements as may be reasonably required by such
mortgagee or trustee under any First Mortgage or other Mortgage. If
Tenant does not execute any document submitted pursuant to this Section 18.1
within five (5) days after receipt thereof, Tenant hereby appoints Landlord as
Tenant’s attorney-in-fact to execute any such document on behalf of
Tenant. Tenant covenants that it will not subordinate this Lease to
any mortgage or trust deed other than a First Mortgage without the prior written
consent of the holder of the First Mortgage.
18.2 LIABILITY
OF HOLDER OF MORTGAGE; ATTORNMENT. It is further agreed that
(a) if any Mortgage is foreclosed, (i) the holder of the Mortgage or its
grantees, or purchaser at any foreclosure sale (or grantee in a deed in lieu of
foreclosure), as the case may be, shall not be (x) liable for any act or
omission of any prior landlord (including Landlord), (y) subject to any offsets
or counterclaims which Tenant may have against a prior landlord (including
Landlord), or (z) bound by any prepayment of Base Rent or Rent Adjustments which
Tenant may have made in excess of the amounts then due for the next succeeding
month, (ii) the liability of the mortgagee or trustee hereunder or purchaser at
such foreclosure sale or the liability of a subsequent owner designated as
Landlord under this Lease shall exist only so long as such trustee, mortgagee,
purchaser or owner is the owner of the Building or Land and such liability shall
not continue or survive after further transfer of ownership; and (iii) upon
request of the mortgagee or trustee, if the Mortgage is foreclosed, Tenant will
attorn, as Tenant under this Lease, to the purchaser at any foreclosure sale
under any Mortgage, and Tenant will execute such instruments as may be necessary
or appropriate to evidence such attornment; and (b) this Lease may not be
modified or amended so as to reduce the rent or shorten the term provided
hereunder, or so as to affect adversely in any other respect to any material
extent the rights of Landlord, nor shall this Lease be cancelled or surrendered,
without the prior written consent, in each instance, of the mortgagee or trustee
under any Mortgage.
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18.3 MODIFICATION
REQUIRED BY HOLDER OF A MORTGAGE. Should any holder of a
Mortgage or any prospective mortgagee require a modification or modifications of
this Lease, which modification or modifications will not cause any increased
cost or expense to Tenant or in any other way materially adversely affect the
rights and obligations of Tenant hereunder, Tenant agrees that this Lease may be
so modified and agrees to execute whatever documents are required therefor and
deliver the same to Landlord within ten (10) days following the request
therefor.
18.4 SHORT
FORM LEASE. Should the holder of a Mortgage or any prospective
mortgagee require execution of a short form of lease for recording (containing
the names of the parties, a description of the Premises, and the term of this
Lease) or a certification from Tenant concerning this Lease in such form as may
be required by said holder of a Mortgage or said prospective mortgagee, Tenant
agrees to execute promptly such short form of lease or certificate and deliver
the same to Landlord within ten (10) days following the request
therefor.
ARTICLE
19
MORTGAGEE
PROTECTION
Tenant
agrees to give any holder of any First Mortgage or any other Mortgage, as
defined in Section 18.1, against the Land or Building, or any interest therein,
by registered or certified mail, a copy of any notice or claim of default served
upon Landlord by Tenant, provided that prior to such notice Tenant has been
notified in writing (by way of service on Tenant of a copy of an assignment of
Landlord’s interests in leases, or otherwise) of the address of such Mortgage
holder. Tenant further agrees that if Landlord has failed to cure
such default within twenty (20) days after such notice to Landlord (or if such
default cannot be cured or corrected within that time, then such additional time
as may be necessary if Landlord has commenced cure or correction within such
twenty (20) days and is pursuing diligently the remedies or steps necessary to
cure or correct such default), then the holder of the Mortgage shall have an
additional thirty (30) days within which to cure or correct such default (or if
such default cannot be cured or corrected within that time, then such additional
time as may be necessary if such holder of the Mortgage has commenced cure or
correction within such thirty (30) days and is pursuing diligently the remedies
or steps necessary to cure or correct such default, including the time necessary
to obtain possession if possession is necessary to cure or correct such
default).
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ARTICLE
20
ESTOPPEL
CERTIFICATE
Tenant
agrees that from time to time within ten (10) days of written request received
from Landlord and/or any other party designated by Landlord, any prospective
mortgagee, or the holder of the First Mortgage or any Mortgage, Tenant (or any
permitted assignee, subtenant, licensee, concessionaire or other occupant of the
Premises claiming by, through or under Tenant) will deliver to Landlord, any
other party designated by Landlord or to the holder of any First Mortgage or any
Mortgage, a statement in writing signed by Tenant (and/or such other party)
certifying (a) that this Lease is unmodified and in full force and effect (or if
there have been modifications, that this Lease as modified is in full force and
effect and identifying the modifications); (b) the date upon which Tenant began
paying Rent and the dates to which Rent and other charges have been paid; (c)
that Landlord is not in default under any provision of this Lease, or, if in
default, the nature thereof in detail; (d) that the Premises have been completed
in accordance with the terms hereof and Tenant is in occupancy and paying Rent
on a current basis with no rental offsets or claims; (e) that there has been no
prepayment of Rent other than that provided for in this Lease; (f) that there
are no actions, whether voluntary or involuntary, pending against Tenant under
the bankruptcy laws of the United States or any State thereof; and (g) such
other matters as may be required by Landlord, any prospective mortgagee or the
holder of the First Mortgage or any other Mortgage. Any such statement may be
relied upon by any owner, the holder of any First Mortgage or other Mortgage,
any prospective mortgagee, or prospective purchaser of the Office Complex or any
portion thereof, or any other person or entity designated by Landlord. In the
event that Tenant fails to deliver the aforesaid certificate within
the time period described hereinabove, then Tenant herein unconditionally agrees
that it shall be liable on demand to pay Landlord the sum of
$1,000.00 for each day that Tenant is late in delivering the
aforesaid certificate to Landlord, such sum to be as and for
Landlord’s full and complete liquidated and agreed monetary damages suffered by
reason of Tenant’s failure to timely deliver an estoppel certificate to
Landlord. In addition to the foregoing, in the event that Tenant
fails to deliver to Landlord the aforesaid certificate within the time period
described hereinabove, then all matters contained in such statement as prepared
by Landlord and submitted to Tenant shall be deemed true and accurate, Tenant
shall be deemed to have unconditionally waived (and shall be estopped from
raising) any and all alleged defenses or alleged lease defaults allegedly
committed by Landlord which it may have otherwise claimed or maintained in such
estoppel certificate and Tenant shall also be deemed to have unconditionally
assented to and affirmed any and all provisions set forth in the estoppel
certificate as same may have been prepared by the Landlord. In
addition to the foregoing, Landlord reserves the right to exercise any further
rights or remedies available to it under the Lease, at law or equity by reason
of Tenant’s default hereunder.
ARTICLE
21
SUBROGATION AND
INSURANCE
21.1 WAIVER OF
SUBROGATION. Landlord and Tenant agree to have all fire and
extended coverage and other property damage insurance which may be carried by
either of them endorsed with a clause providing that any release from liability
of or waiver of claim for recovery from the other party entered into in writing
by the insured thereunder prior to any loss or damage shall not affect the
validity of such policy or the right of the insured to recover thereunder, and
providing further that the insurer waives all rights of subrogation which such
insurer might have against the other party. Without limiting any
release or waiver of liability or recovery set forth elsewhere in this Lease,
and notwithstanding anything in this Lease which may appear to be to the
contrary, each of the parties hereto waives all claims for recovery from the
other party for any loss or damage to any of its property insured under valid
and collectible insurance policies to the extent of any recovery collectible
under such insurance policies. Notwithstanding the foregoing or
anything contained in this Lease to the contrary, any release or any waiver of
claims shall not be operative, nor shall the foregoing endorsements be required,
in any case where the effect of such release or waiver is to invalidate
insurance coverage or to invalidate the right of the insured to recover
thereunder or to increase the cost thereof (provided that in the case of
increased cost, the other party shall have the right, within ten (10) days
following written notice thereof, to pay such increased cost and thereby keep
such release or waiver in full force and effect).
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21.2 TENANT’S
INSURANCE. Tenant shall carry insurance during the entire Term
hereof with terms, coverages and companies (which shall be licensed to do
business in the State of New Jersey and shall be rated no lower than A+XV by
A.M. Best Company) satisfactory to Landlord and with such increases in limits as
Landlord may request from time to time, but initially Tenant shall maintain the
following coverages in the following amounts:
(a) Comprehensive
or commercial general liability insurance, including contractual liability and
the broad or extended liability endorsement, insuring against claims for death,
bodily injury, personal injury and property damage occurring upon, in or about
the Premises or the Office Complex on an occurrence basis, in an amount not less
than Three Million Dollars ($3,000,000) combined single limit per occurrence,
with a Five Million Dollar ($5,000,000) annual aggregate, covering Tenant as a
named insured and Landlord, and its affiliates, the managing agent for the
Building and their respective officers, directors, shareholders, partners,
members, agents and employees, and the holder(s) of any Mortgage, as additional
insureds;
(b) Insurance
against fire, sprinkler leakage and vandalism, and the extended coverage perils
for the full replacement cost of all additions, improvements and alterations to
the Premises whether owned, made or installed by or on behalf of Tenant or
existing in the Premises as of the date such space is leased to, or occupied by,
Tenant, if any, and of all office furniture, trade fixtures, office equipment,
merchandise and all other items of Tenant’s property on the Premises, with loss
or damage payable to Landlord and Tenant as their interests may
appear;
(c) Business
interruption insurance or rent loss insurance (or a comparable policy of
insurance providing the same benefits) in such amounts as will reimburse Tenant
for direct or indirect loss of earnings attributable to all perils covered by
the insurance described in clause (b) above or attributable to prevention or
denial of access to the Premises, Building or Project as a result of such
perils, in minimum amounts of not less than twelve (12) times the Monthly Base
Rent and estimated additional rent then in effect during any Lease
Year;
(d) comprehensive
automobile liability insurance (covering all owned, non-owned and
hired vehicles), in an amount of not less than One Million Dollars ($1,000,000)
for each accident;
(e) worker’s
compensation insurance, in minimum limits as required by the State of New Jersey
(as the same may be amended from time to time), for all employees of Tenant
engaged in any work on or about the Premises;
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(f) employer’s
liability insurance, in an amount not less than One Million Dollars ($1,000,000)
for each accident, One Million Dollars ($1,000,000) disease-policy limit, and
One Million Dollars ($1,000,000) disease-each employee, (or such greater amount
as may be mandated by legal requirements), for all employees of Tenant engaged
in any work on or about the Premises;
(g) for any
period during which construction is being performed by or on behalf of Tenant in
or about the Premises, insurance as required by Article 12 above;
and
(h) if Tenant
shall use the Premises for entertaining or for any other social function
(including parties and/or receptions for clients, customers, employees and/or
others) at which any alcoholic beverages are served, Tenant shall obtain an
endorsement to its policy of commercial general liability insurance (if such
coverage is not already provided by such policy) providing host liquor liability
coverage of not less than One Million Dollars ($1,000,000) for bodily injury and
property damage liability in any one occurrence and, if Tenant shall have
contracted with a third party to serve such alcoholic beverages, Tenant shall
also cause such third party to obtain an endorsement to its policy of commercial
general liability insurance (if such coverage is not already provided by such
policy) providing liquor liability coverage of not less than One Million Dollars
($1,000,000) for bodily injury and property damage liability in any one
occurrence; provided, however, that nothing contained in this Section shall be
construed to permit Tenant to use the Premises for any use or purpose other than
the permitted use as described in Article 5 above.
21.3 CERTIFICATES
OF INSURANCE. Tenant shall furnish to Landlord, prior to the
commencement of the Term, policies or certificates evidencing such coverage,
which policies or certificates shall state that such insurance coverage may not
be reduced, cancelled, modified or not renewed without at least thirty (30)
days’ prior written notice to Landlord, Tenant, any holder of a First Mortgage
and/or any other Mortgage (unless such cancellation is due to nonpayment of
premium, and in that case, only ten (10) days’ prior written notice shall be
sufficient).
21.4 COMPLIANCE
WITH REQUIREMENTS. Tenant shall comply and cause the Premises
to comply with all applicable laws and ordinances, all court orders and decrees
and all requirements of other governmental authorities, and shall not make,
directly or indirectly, any use of the Premises which may be prohibited thereby,
which may be dangerous to person or property, which may jeopardize any insurance
coverage or which may increase the cost of insurance or require additional
insurance coverage. If any insurance policy carried by Landlord or
Tenant shall be cancelled or cancellation shall be threatened or the coverage
thereunder reduced or threatened to be reduced in any way by reason of the use
or occupation of the Premises, the Building or the Project or any part thereof
by Tenant, any party claiming by, through or under Tenant or anyone permitted by
Tenant to be upon the Premises, and if Tenant fails to remedy the conditions
giving rise to said cancellation or threatened cancellation or reduction in
coverage on or before the earlier of (i) forty-eight (48) hours after notice
thereof from Landlord, or (ii) prior to said cancellation or reduction becoming
effective, Tenant shall be in default hereunder and Landlord shall have all of
the remedies available to Landlord pursuant to this Lease.
42
ARTICLE
22
NONWAIVER
No waiver
of any condition expressed in this Lease shall be implied by any neglect of
Landlord to enforce any remedy on account of the violation of such condition
whether or not such violation is continued or repeated subsequently, and no
express waiver shall affect any condition other than the one specified in such
waiver and that one only for the time and in the manner specifically
stated. Without limiting Landlord’s rights under Article 9, it is
agreed that no receipt of moneys by Landlord from Tenant after the termination
in any way of the Term or of Tenant’s right to possession hereunder or after the
giving of any notice shall reinstate, continue or extend the Term or affect any
notice given to Tenant prior to the receipt of such moneys. It is
also agreed that after the service of notice or the commencement of a suit or
after final judgment for possession of the Premises, Landlord may receive and
collect any moneys due, and the payment of said moneys shall not waive or affect
said notice, suit or judgment.
ARTICLE
23
TENANT - DUE
AUTHORIZATION
In case
Tenant is a corporation, (a) Tenant represents and warrants that this Lease has
been duly authorized, executed and delivered by and on behalf of Tenant and
constitutes the valid and binding agreement of Tenant in accordance with the
terms hereof and (b) if Landlord so requests, Tenant shall deliver to Landlord
or its agent, concurrently with the delivery of this Lease executed by Tenant,
certified resolutions of the board of directors (and shareholders, if required)
authorizing Tenant’s execution and delivery of this Lease and the performance of
Tenant’s obligations hereunder. In case Tenant is a partnership,
Tenant represents and warrants that all of the persons who are general or
managing partners in the partnership have executed this Lease on behalf of
Tenant, or that this Lease has been executed and delivered pursuant to and in
conformance with a valid and effective authorization therefor by all of the
general or managing partners of such partnership, and constitutes the valid and
binding agreement of the partnership and each and every partner therein in
accordance with its terms. Also, it is agreed that each and every
present and future general partner in Tenant shall be and shall remain at all
times jointly and severally liable hereunder and that the death, resignation or
withdrawal of any general partner shall not release the liability of such
partner under the terms of this Lease unless and until Landlord consents in
writing to such release. In case Tenant is a limited liability
company, Tenant represents and warrants that all of the persons who are managing
members of the limited liability company have executed this Lease on behalf of
Tenant, or that this Lease has been executed and delivered pursuant to and in
conformance with a valid and effective authorization therefor by all of the
managing members of such limited liability company, and constitutes the valid
and binding agreement of the limited liability company in accordance with its
terms.
43
ARTICLE
24
REAL ESTATE
BROKERS
Tenant
represents that Tenant has dealt with and only with FirstService Xxxxxxxx (whose
commission, if any, shall be paid by Landlord pursuant to separate agreement) as
broker in connection with this Lease and agrees to indemnify and hold Landlord
harmless from all damages, liabilities, claims, losses, costs and expenses,
including reasonable attorneys’ fees, arising from any claims or demands of any
other broker or brokers or finders for any commission alleged to be due such
broker or brokers or finders in connection with its having introduced Tenant to
the Premises or having participated in the negotiation with Tenant of this
Lease.
ARTICLE
25
NOTICES
All
notices, demands and requests which may be given or which are required to be
given by either party to the other must be in writing. All notices,
demands and requests by Landlord or Tenant shall be (i) delivered personally,
(ii) sent by a recognized overnight courier, (iii) sent by telefacsimile
transmission (provided that an original is deposited on the same day for
delivery by a recognized overnight courier service) or (iv) sent by United
States certified mail, postage prepaid, and addressed as follows or at such
substitute addresses as may be specified by either party by written notice
furnished to the other in accordance herewith:
If
to Landlord:
|
SMIII
Woodbridge Plaza, LLC
c/o
KBS Realty Advisors, LLC
000
Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx
Xxxx, XX 00000
Attention: Asset
Manager
Telecopier
No.: (000) 000-0000
|
With
a copy to:
|
Xxxxx
X. Xxxx, Esq., PLLC
00
Xxxxxxxxx Xxxxxx, Xxxxx 000
Xxx
Xxxx, XX 00000
Telecopier
No.: (000) 000-0000
|
If
to Tenant:
|
Prior
to the Commencement Date:
485(C)
Xxxxx 0 Xxxxx, 0xx Xxxxx
Xxxxxx,
Xxx Xxxxxx 00000
From
and after the Commencement Date:
485(A)
Xxxxx 0 Xxxxx, 0xx Xxxxx
Xxxxxx,
Xxx Xxxxxx 00000
|
44
Notices,
demands and requests delivered in the manner provided hereinabove will be deemed
received: (i) upon receipt or refusal, if delivered personally, (ii)
if sent by recognized overnight courier, on the next business day following
deposit therewith, (iii) if sent by telefacsimile transmission as provided
above, on the day confirmation of transmission to the specified telecopier
number is received electronically (provided that said confirmation is received
on a business day prior to 5:00 p.m. local time; otherwise on the
next business day), and (iv) if sent by certified mail, three (3) business days
after the date of postmark thereof. Notices and demands from Landlord
to Tenant may be signed by Landlord, its beneficiaries, the managing agent for
the Real Property or the agent of any of them.
ARTICLE
26
ENVIRONMENTAL
MATTERS
26.1 TENANT’S
OBLIGATIONS WITH RESPECT TO ENVIRONMENTAL MATTERS. Tenant
hereby represents, warrants and covenants that, during the Term of this Lease,
(i) Tenant shall comply at its sole cost and expense with all federal, state and
local statutes, ordinances, regulations and rules in effect and as amended from
time to time relating to Hazardous Materials, environmental quality, health,
safety, contamination and cleanup, including, without limitation, the Clean Air
Act, 42 U.S.C. Section 7401 et seq.; the Clean Water Act, 33 U.S.C. Section 1251
et seq., and the Water Quality Act of 1987; the Occupational Safety and Health
Act, 29 U.S.C. Section 651 et seq.; the Resource Conservation and Recovery Act
(“RCRA”), 42 U.S.C.
Section 6901 et seq., as amended by the Hazardous and Solid Waste Amendments of
1984; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; the
Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. Section
9601 et seq., as amended by the Superfund Amendments and Reauthorization Act,
the Emergency Planning and Community Right-to-Know Act, and the Radon Gas and
Indoor Air Quality Research Act; the Toxic Substances Control Act, 15 U.S.C.
Section 2601 et seq.; the New Jersey Environmental Cleanup Responsibility Act,
as amended by the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq. (“ISRA”), the New Jersey Spill
Compensation and Control Act, as amended, N.J.S.A. 58:10-23.11b et
seq.; and all state, regional, county, municipal, and other local laws,
regulations, and ordinances insofar as they are equivalent or similar to the
federal laws recited above or purport to regulate Hazardous Materials (“Environmental
Laws”). “Hazardous Materials” shall
mean and include the following, including mixtures thereof: any
hazardous substance, pollutant, contaminant, waste, by-product or constituent
regulated under any Environmental Law, including but not limited to oil,
petroleum products, natural gas, natural gas liquids, liquefied natural gas and
synthetic gas usable for fuel, pesticides, asbestos, asbestos-containing
materials and PCBs; (ii) Tenant shall not install any underground storage tanks
without prior written disclosure to and prior written approval by Landlord;
(iii) Tenant shall not take any action that would subject the Premises to the
permit requirements under RCRA for storage, treatment or disposal of Hazardous
Materials; (iv) Tenant shall not dispose of Hazardous Materials in dumpsters
provided by Landlord for tenant use; (v) Tenant shall not discharge Hazardous
Materials into Project drains or sewers; (vi) Tenant shall not cause or allow
the Release of any Hazardous Materials on, to or from the Project or
land. For purposes of this Article 26, “Release” or “Released” shall mean any
actual or threatened spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping or disposing of Hazardous
Materials into the environment; and (vii) if Tenant’s use, including treatment,
storage and disposal of Hazardous Materials at the Premises (a) gives rise to
liability or to a claim under any Environmental Law, or any common law theory of
tort or otherwise, (b) causes a threat to, or endangers human health or the
environment, or (c) creates a nuisance or trespass, Tenant shall, at its sole
cost and expense, promptly take all actions as are necessary to return the
Premises or any adjacent property to the condition existing prior to the
introduction of any such Hazardous Material and to comply with all applicable
Environmental Laws and eliminate or avoid any liability claim with respect
thereto. Landlord’s written approval of such actions to be taken with
respect to the Premises or any adjacent property shall first be
obtained.
45
(a) Tenant
represents to Landlord that Tenant’s Standard Industrial Classification (SIC)
Number as designated in the Standard Industrial Classification Manual prepared
by the Office of Management and Budget in the Executive Office of the President
of the United States will not subject the Premises to ISRA
applicability. Any change by Tenant to an operation with an SIC
Number subject to ISRA shall require Landlord’s prior written
consent. Any such proposed change shall be sent in writing to
Landlord sixty (60) days prior to the proposed change. Landlord, at
its sole option, may withhold consent.
(b) Tenant
hereby agrees to execute such documents as Landlord reasonably deems necessary
and to make such applications as Landlord reasonably requires to assure
compliance with ISRA. Tenant shall bear all costs and expenses
incurred by Landlord associated with any required ISRA compliance resulting from
Tenant’s use of the Premises including but not limited to state agency fees,
engineering fees, cleanup costs, filing fees and suretyship
expenses. As used in this Lease, ISRA compliance shall include
applications for determinations of nonapplicability by the appropriate
governmental authority. The foregoing undertaking shall survive the
termination or sooner expiration of this Lease and surrender of the Premises and
shall also survive sale or lease or assignment of the Premises by
Landlord. Tenant shall immediately provide Landlord with copies of
all correspondence, reports, notices, orders, findings, declarations and other
materials pertinent to Tenant’s compliance and the requirements of the New
Jersey Department of Environmental Protection (“NJDEP”) under ISRA as they
are issued or received by Tenant.
(c) In
the event Tenant fails to comply with ISRA as stated in this Article 26 or any
other governmental law as of the termination or sooner expiration of this Lease,
and as a consequence thereof, Landlord is unable to rent the Premises, then
Landlord shall treat Tenant as one who has not removed at the end of its Term,
and thereupon be entitled to all remedies against Tenant provided by law in that
situation, including a monthly rental of two hundred percent (200%) of the
Monthly Base Rent for the last month of the Term of this Lease or any renewal
term, payable in advance on the first day of each month, until such time as
Tenant provides Landlord with a negative declaration or confirmation that any
required cleanup plan has been successfully completed.
26.2 LANDLORD’S RIGHT TO
INSPECT. Landlord and Landlord’s agents and employees shall
have the right to enter the Premises upon reasonable prior notice which may be
verbal or oral (except where such entry is necessary in order to comply with
applicable laws and requirements of public authorities or in the event of an
emergency) and conduct such inspections or tests, including soil and groundwater
sampling, as Landlord in its sole discretion deems appropriate or necessary, for
the purpose of determining Tenant’s compliance with Tenant’s environmental
obligations pursuant to this Lease and this Article 26. Tenant agrees
to cooperate with such investigations and to provide any relevant information
requested by Landlord.
46
26.3 COPIES OF
NOTICES AND DOCUMENTATION. Within ten (10) days of Tenant’s
receipt of a written request by Landlord, Tenant shall provide Landlord with (i)
copies of all environmental reports and tests obtained by Tenant; (ii) copies of
transportation and disposal contracts (and related manifests, schedules,
reports, and other information) entered into or obtained by Tenant with respect
to any Hazardous Materials; (iii) copies of any permits issued to Tenant under
Environmental Laws with respect to the Premises; (iv) copies of any and all
reports, notifications, and other filings made by Tenant to any federal, state,
or local environmental authorities or agencies; and (v) any other applicable
documents and information with respect to environmental matters relating to the
Premises. During the Term of this Lease, Tenant shall provide
Landlord promptly with copies of all summonses, citations, directives,
information inquiries or requests, notices of potential responsibility, notices
of violation or deficiency, orders or decrees, claims, complaints,
investigations, judgments, letters, notices of environmental liens or response
actions in progress, and other communications, written or oral, actual or
threatened, from any federal, state, or local agency or authority, or any other
entity or individual, concerning (i) any actual or alleged Release of a
Hazardous Material on, to or from the Premises; (ii) the imposition of any lien
on the Premises; (iii) any actual or alleged violation of, or responsibility
under, any Environmental Laws; or (iv) any actual or alleged liability under any
theory of common law tort or toxic tort, including without limitation,
negligence, trespass, nuisance, strict liability, or ultrahazardous
activity.
26.4 LANDLORD’S RIGHT TO
ACT. In the event that Tenant shall fail to comply with any of
its obligations under this Article 26 as and when required hereunder, Landlord
shall have the right (but not the obligation) to take such action as is required
to be taken by Tenant hereunder and in such event, Tenant shall be liable and
responsible to Landlord for all costs, expenses, liabilities, claims and other
obligations paid, suffered, or incurred by Landlord in connection with such
matters. Tenant shall reimburse Landlord immediately upon demand for
all such amounts for which Tenant is liable.
26.5 INDEMNIFICATION. Notwithstanding
anything contained in this Lease to the contrary, Tenant shall reimburse,
defend, indemnify and hold Landlord, and its beneficiaries, officers, directors,
shareholders, employees, and agents, free and harmless from and against any and
all claims, response costs, losses, liabilities, damages, costs, and expenses,
including, but not limited to, the costs and expenses of investigations,
studies, health or risk assessments and consulting fees, and including, without
limitation, loss of rental income, loss due to business interruption, and
attorneys’ fees and costs, arising out of or in any way connected with any or
all of the following:
(i) any
Hazardous Materials which, at any time during the Term, are or were actually or
allegedly generated, stored, treated, released, disposed of, used or otherwise
located on or at the Premises, including but not limited to, any and all (a)
liabilities under any common law theory of tort, nuisance, strict liability,
ultrahazardous activity, negligence or otherwise based upon, resulting from or
in connection with any Hazardous Material; and (b) obligations to take response,
cleanup or corrective action pursuant to any investigation or remediation in
connection with the decontamination, removal, transportation, incineration, or
disposal of any of the foregoing; and
47
(ii) any
actual or alleged illness, disability, injury, or death of any person in any
manner arising out of or allegedly arising out of exposure to Hazardous
Materials present at the Premises, regardless of when any such illness,
disability, injury, or death shall have occurred or been incurred or manifested
itself; and
(iii) any
actual or alleged failure of Tenant or the Premises at any time and from time to
time to comply with all applicable Environmental Laws, whether before or after
the effective date of this Lease; and
(iv) any
failure by Tenant to comply with its obligations under this Article
26.
In the
event any claims or other assertion of liability shall be made against Landlord
for which Landlord is entitled to indemnity hereunder, Landlord shall notify
Tenant of such claim or assertion of liability and thereupon Tenant shall, at
its sole cost and expense, assume the defense of such claim or assertion of
liability and continue such defense at all times thereafter until
completion. The obligations of Tenant under this Article 26 shall
survive any termination or expiration of this Lease.
ARTICLE
27
SECURITY
DEPOSIT
27.1 SECURITY
DEPOSIT. (a) By no later than January 15, 2011, with time
being of the essence, Tenant shall deposit with Landlord the sum of $10,000.00,
such sum to be held as security for the full and faithful
performance of every provision of this Lease, including, but not limited to, the
provisions relating to the payment of Rent. Tenant acknowledges that Tenant’s
failure to timely deposit such sum with Landlord as provided above shall be
deemed a material default by Tenant under this Lease, thereby entitling Landlord
to exercise any or all of the remedies provided in this Lease. Landlord may use,
apply or retain all or any part of the security deposit held by Landlord for the
payment of any Rent and any other sum with respect to which Tenant is in Default
or to compensate Landlord for any other loss or damage which Landlord may suffer
by reason of Tenant’s Default. If any portion of the security deposit
is to be used or applied, Tenant, within five (5) days after written demand
therefor, shall deposit with Landlord an amount sufficient to restore the
security deposit to its original amount and Tenant’s failure to do so shall be a
material breach of this Lease. Landlord shall not be required to keep
the security deposit from its general funds and Tenant shall not be entitled to
interest on any security deposit. If Tenant fully and
faithfully performs every provision of this Lease to be performed by it, the
security deposit or any balance thereto shall be returned to Tenant (or at
Landlord’s option to the last assignee of Tenant’s interest hereunder) within a
commercially reasonable period after the expiration of the Term and Tenant’s
vacating of the Premises.
48
(b) Tenant
acknowledges and agrees that Tenant’s subsidiary, CareAdvantage Health Systems,
Inc. (“Tenant’s Subsidiary”), is a tenant under a prior lease (the “Prior
Lease”) dated as of April 14, 1995, as amended, between Landlord, as landlord
and Tenant’s Subsidiary, as tenant, pursuant to which Tenant’s Subsidiary leases
certain space located in Building “C” of the Project, which Prior Lease ends and
expires on the day preceding the Commencement Date of this Lease pursuant to the
terms and conditions of a Surrender Agreement being entered into between
Landlord and Tenant’s Subsidiary simultaneously herewith. Tenant and
Tenant’s Subsidiary hereby acknowledge and agree that any portion of the
security deposit held by Landlord under the Prior Lease has been forfeited by
Tenant’s Subsidiary to Landlord as a “Surrender Fee” in consideration of
Tenant’s Subsidiary’s surrender of the Prior Lease and the premises leased
thereunder to Landlord prior to such Prior Lease’s expiration date, pursuant to
the terms and conditions of the aforementioned Surrender Agreement.
(c) If Tenant is
in Default with respect to any provision of this Lease, including, but not
limited to, the provisions relating to the payment of Rent, Landlord may draw,
at Landlord’s sole option, all or any part of the security deposit for the
payment of any Rent and any other sum with respect to which Tenant is in
Default, or for the payment of any other amount which Landlord may spend or
become obligated to spend by reason of Tenant’s Default or to compensate
Landlord for any other loss or damage which Landlord may suffer by reason of
Tenant’s Default. If any portion of the security deposit is used or
applied, Tenant, within five (5) days after written demand therefor, shall
deposit cash with Landlord in an amount sufficient to restore the security
deposit to its original amount and Tenant’s failure to do so shall be a material
breach of this Lease.
27.2 TRANSFER
OF SECURITY DEPOSIT. Tenant hereby agrees not to look to any
mortgagee as mortgagee, mortgagee in possession, or successor in title to the
Building for accountability for any security deposit required by Landlord
hereunder, unless said sums have actually been received by said mortgagee as
security for Tenant’s performance of this Lease. Landlord may deliver
the security deposit deposited hereunder by Tenant to the purchaser of
Landlord’s interest in the Building, in the event that such interest is sold,
and thereupon Landlord, and its beneficiaries, if any, shall be discharged from
any further liability with respect to such security deposit. The
security deposit delivered under this Lease shall not be assigned or encumbered
by Tenant without the prior consent of Landlord, and any such assignment or
encumbrance shall be void.
ARTICLE
28
RELOCATION OF
TENANT
At any
time hereafter, Landlord may substitute for the Premises other premises
(hereinafter referred to as the “New Premises”),
provided:
(a) the
New Premises shall be similar to the Premises in area and use for Tenant’s
purposes and shall be located in the Office Complex;
and if
Tenant is already in occupancy of the Premises, then in
addition:
49
(b) Landlord
shall pay the reasonable expense of Tenant for moving from the Premises to the
New Premises and for improving the New Premises so that they are substantially
similar to the Premises;
(c) such
move shall be made during evenings, weekends or otherwise so as to incur the
least inconvenience to Tenant; and
(d) if
the Commencement Date has already occurred, then Landlord shall first give
Tenant at least sixty (60) days’ notice before making such change. If
Landlord exercises its right hereunder, the New Premises shall thereafter be
deemed for the purposes of this Lease as the Premises. Within ten
(10) days after the date Landlord submits an amendment to this Lease to Tenant
indicating the location and configuration of the New Premises, Tenant shall
execute such amendment, but no such amendment shall be necessary to make the
terms of this Article effective.
Landlord
may at its sole option and at any time elect to revoke any relocation notice
sent to Tenant seeking to substitute for the Premises and relocate Tenant to
other space, whereupon the relocation notice shall be deemed withdrawn and a
nullity.
ARTICLE
29
TITLE AND COVENANT AGAINST
LIENS
Landlord’s
title is paramount and always shall be paramount to the title of Tenant and
nothing contained in this Lease shall empower Tenant to do any act which can,
shall or may encumber the title of Landlord. Tenant covenants and
agrees not to do any act, make any contract or suffer or permit anything to
occur which may create or be the foundation for any lien or other encumbrance
upon or against the Premises, the Building, the Land, the Project or against
Tenant’s leasehold interest in the Premises and, in case of any such lien
attaching, to pay and remove the same immediately. Tenant has no
authority or power to cause or permit any lien or encumbrance of any kind
whatsoever, whether created by act of Tenant, operation of law or otherwise, to
attach to or be placed upon the Premises, the Building, the Project or the Land,
and any and all liens and encumbrances created by Tenant shall attach only to
Tenant’s interest in the Premises. If any such liens so attach and
Tenant fails to pay and remove the same within ten (10) days, Landlord, at its
election, may pay and satisfy the same and in such event the sums so paid by
Landlord, with interest from the date of Landlord’s payment thereof at the rate
set forth in Section 30.8 for amounts owed to Landlord by Tenant, shall be
deemed to be additional rent due and payable by Tenant at once without notice or
demand. All materialmen, contractors, artisans, mechanics, laborers,
and any other persons now or hereafter contracting with Tenant or any contractor
or subcontractor of Tenant for the furnishing of any labor services, materials,
supplies, or equipment with respect to any portion of the Premises, at any time
from the date hereof until the end of the Term, are hereby charged with notice
that they look exclusively to Tenant to obtain payment for same.
50
ARTICLE
30
MISCELLANEOUS
30.1 SUCCESSORS
AND ASSIGNS. Each provision of this Lease shall extend to and
shall bind and inure to the benefit not only of Landlord and Tenant, but also of
their respective heirs, legal representatives, successors and assigns, but this
provision shall not operate to permit any transfer, assignment, mortgage,
encumbrance, lien, charge or subletting contrary to the provisions of this
Lease.
30.2 MODIFICATIONS
IN WRITING. No modification, waiver or amendment of this Lease
or of any of its conditions or provisions shall be binding upon Landlord unless
in writing signed by Landlord.
30.3 NO
OPTION; IRREVOCABLE OFFER. Submission of this instrument for
examination shall not constitute a reservation of or option for the Premises or
in any manner bind Landlord and no lease or obligation on Landlord shall arise
until this instrument is signed and delivered by Landlord and Tenant; provided,
however, the execution and delivery by Tenant of this Lease to Landlord or the
agent of Landlord’s beneficiary, if any, shall constitute an irrevocable offer
by Tenant to lease the Premises on the terms and conditions herein contained,
which offer may not be revoked for thirty (30) days after such
delivery.
30.4 DEFINITION
OF TENANT. The word “Tenant” whenever used herein
shall be construed to mean the party named above as Tenant or any one or more of
them in all cases where there is more than one party named above as Tenant; and
the necessary grammatical changes required to make the provisions hereof apply
either to corporations, partnerships or other entities or individuals shall in
all cases be assumed as though in each case fully expressed. In all
cases where there is more than one party named above as Tenant, the liability of
each shall be joint and several.
30.5 DEFINITION
OF LANDLORD. The term “Landlord” as used in this
Lease means only the owner or owners at the time being of the Building, so that
in the event of any assignment, conveyance or sale, once or successively, of the
Building, or any assignment of this Lease by Landlord, said Landlord making such
sale, conveyance or assignment shall be and hereby is entirely freed and
relieved of all covenants and obligations of Landlord hereunder accruing after
such sale, conveyance or assignment, and Tenant agrees to look solely to such
purchaser, grantee or assignee with respect thereto. This Lease shall
not be affected by any such assignment, conveyance or sale, and Tenant agrees to
attorn to the purchaser, grantee or assignee.
30.6 HEADINGS. The
headings of Articles and Sections are for convenience only and do not limit,
expand or construe the contents of the Articles and Sections.
30.7 TIME OF
ESSENCE. Time is of the essence of this Lease and of all
provisions hereof.
51
30.8 DEFAULT
RATE OF INTEREST. All amounts, including, without limitation,
Base Rent and Rent Adjustments, owed by Tenant to Landlord pursuant to any
provision of this Lease shall bear interest from the date due until paid at the
annual rate (the “default
interest rate”) of eighteen percent (18%), unless a lesser rate is then
the maximum rate permissible by law with respect thereto, in which event said
lesser rate shall be charged.
30.9 SEVERABILITY. The
invalidity of any provision of this Lease shall not impair or affect in any
manner the validity, enforceability or effect of the rest of this
Lease.
30.10 ENTIRE
AGREEMENT. All understandings and agreements, oral or written,
previously made between the parties hereto are merged in this Lease, which alone
fully and completely expresses the agreement between Landlord (and its
beneficiaries, if any, and their agents) and Tenant. This Lease
cannot be amended or modified except by a written instrument executed by
Landlord and Tenant.
30.11 FORCE
MAJEURE. If Landlord fails to perform timely any of the terms,
covenants or conditions of this Lease to be performed by Landlord and such
failure is due in whole or in part to any strike, lockout, labor trouble, civil
disorder, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrections, war, fuel shortages,
accidents, casualties, acts of God, acts caused directly or indirectly by
Tenant, or by Tenant’s agents, employees, contractors, licensees or invitees, or
any other cause beyond the reasonable control of Landlord, then Landlord shall
not be deemed in default under this Lease as a result of such failure and any
time for performance by Landlord provided for herein shall be extended by the
period of delay resulting from such cause.
30.12 SECURITY
INTEREST. Tenant grants and, from time to time during the term
upon request by Landlord, will grant to Landlord security interests in the
Collateral (hereinafter defined) for the purpose of securing payment of all
indebtedness, obligations and liabilities of Tenant to Landlord, under this
Lease or any document or instrument relating to this Lease and performance of
all agreements, covenants, terms and conditions contained in this Lease or any
document or instrument relating to this Lease, including without limitation,
payment of Rent. Tenant hereby consents to the filing of such
financing statements as Landlord may require in order to perfect such security
interests. “Collateral” means all
personal property, trade fixtures, equipment, furniture and furnishings which
are now or may hereafter be located in the Premises and all proceeds from the
sale, transfer or pledge of any of the foregoing. The inclusion in
Collateral of any property which may now be, or hereafter become, affixed or in
any manner attached to the Premises shall be without prejudice to any claim at
any time made by Landlord that such Collateral is, or has become, a part of the
Real Property, or an accession to the Real Property. Tenant
represents and warrants that as of the date of this Lease there are no security
interests in the Collateral and that the security interest granted to Landlord
will be prior to any other security interest in the
Collateral. Tenant agrees that it will: (a) keep the
Collateral insured and in good repair; (b) not grant any additional security
interests in the Collateral; (c) not sell, lease or transfer the Collateral or
move the Collateral to another location, except that Tenant may sell Collateral
at the end of its useful life; and (d) notify Landlord of any change of name or
form of business organization of Tenant. Tenant represents and
warrants that it is the owner of all of the Collateral or will be the owner when
the Collateral is in the Premises.
52
30.13 CHOICE OF
LAW. This Lease shall be governed by and all of its terms
construed according to the laws of the State of New Jersey. Landlord
and Tenant hereby irrevocably agree that any legal action or proceeding arising
out of or relating to this Lease shall only be brought in the Courts of the
State of New Jersey, or the Federal District Court for the District of New
Jersey. By execution and delivery of this Lease, Landlord and Tenant (and any
guarantor of this Lease) hereby irrevocably accept and submit generally and
unconditionally for itself and with respect to its properties, to the
jurisdiction of any such court in any such action or proceeding, and hereby
waive in the case of any such action or proceeding brought in the courts of the
State of New Jersey, or Federal District Court for the District of New Jersey,
any defenses based on jurisdiction, venue or forum non conveniens. In
furtherance of the foregoing, Tenant hereby agrees that its address for notices
given to Landlord and service of process for in personam jurisdiction under this
Lease shall be the Premises.
30.14 RELATIONSHIP. The
relationship of Landlord and Tenant hereunder is solely that of landlord and
tenant and the parties disclaim any intention to create a joint venture,
partnership or agency relationship.
30.15 NO
RECORDING. Except as provided in Section 18.4, Tenant shall
not record this Lease or any memorandum or short form of this Lease without the
prior written consent of Landlord, which may be withheld in Landlord’s sole and
absolute discretion.
30.16 ATTORNEY’S
FEES. Tenant shall pay upon demand, all reasonable costs and
expenses, including reasonable attorneys’ fees, incurred by Landlord in
enforcing the Tenant’s performance of its obligations under this Lease, or
resulting from Tenant’s Default, or incurred by Landlord in any litigation,
negotiation or transaction in which Tenant causes Landlord, without Landlord’s
fault, to become involved or concerned.
30.17 TENANT’S
REMEDIES. With respect to any provision of this Lease which
provides, in effect, that Landlord shall not unreasonably withhold or
unreasonably delay any consent or any approval, Tenant in no event, shall be
entitled to make, nor shall Tenant make, any claim, and Tenant hereby waives any
claim, for money damages; nor shall Tenant claim any money damages by way of
setoff, counterclaim or defense, based upon any claim or assertion by Tenant
that Landlord has unreasonably withheld or unreasonably delayed any consent or
approval; but Tenant’s sole remedy shall be an action or proceeding to enforce
any such provision, or for specific performance, injunction or declaratory
judgment.
30.18 NO
COUNTERCLAIMS. Tenant hereby waives any and all rights to
interpose any counterclaim in any proceeding brought by Landlord against Tenant
for the enforcement of any of the terms, agreements, covenants, conditions or
provisions of this Lease. In amplification of the foregoing and not
in limitation thereof, Tenant agrees not to interpose, by consolidation of
actions, removal to chancery or otherwise, any counterclaim or other claims for
set-off, recoupment or deduction of rent in a summary proceeding or other action
for non-payment of rent or based on termination, holdover or other default in
which Landlord seeks to repossess the Premises from Tenant. Tenant
shall not have the right to any offset, abatement, defense, claim, counterclaim
or deduction with regard to any amount allegedly owed to Tenant pursuant to any
claim against Landlord in connection with any rent or other sum payable to
Landlord. Tenant’s sole remedy for recovering upon such claim shall
be to institute an independent action against Landlord, which action shall not
be consolidated with any action of Landlord.
53
30.19 NO
PRESUMPTION. There shall be no presumption that this Lease be
construed more strictly against the party who itself or through an agent
prepared it, it being agreed that all parties hereto have participated in the
preparation of this Lease, and that each party had the opportunity to consult
with legal counsel before the execution of this Lease.
30.20 AUTHORITY
OF AGENT. “Agent” shall mean any of the following:
(a) the current managing agent for the Project, (b) any successor managing agent
for the Project, (c) the current agent for the Landlord, or (d) any successor
agent for the Landlord. As of the date hereof, the managing agent for
the Project is FirstService Xxxxxxxx, and the Landlord’s agent is KBS Realty
Advisors, LLC, but Tenant acknowledges that during the Term of the Lease there
may be a change in Agent. On behalf of Landlord, the Agent is
authorized to sign this Lease and any amendment thereto (a “Lease Document”) and
any and all statements, consents, notices, demands, requests and other
communications (each, a “communication”) given or required to be given under
this Lease or as required by law, and any such signature shall be of the same
force and effect as if signed by the Landlord. Signature by the Agent
shall constitute conclusive confirmation of Agent’s authority to sign a Lease
Document or any communication. However, nothing herein set forth
shall preclude the Landlord from signing a Lease Document or any communication
on its own behalf.
ARTICLE
31
AMERICANS WITH DISABILITIES
ACT
The
parties acknowledge that the Americans With Disabilities Act of 1990 (42 U.S.C.
§12101 et seq.) and regulations and guidelines promulgated thereunder, as all of
the same may be amended and supplemented from time to time (collectively
referred to herein as the “ADA”) establish requirements under Title III of the
ADA (“Title III”)
pertaining to business operations, accessibility and barrier removal, and that
such requirements may be unclear and may or may not apply to the Premises and
the Building depending on, among other things: (1) whether Tenant’s
business operations are deemed a “place of public accommodation” or a
“commercial facility,” (2) whether compliance with such requirements is “readily
achievable” or “technically infeasible,” and (3) whether a given alteration
affects a “primary function area” or triggers so- called “path of travel”
requirements. The parties acknowledge and agree that Tenant has been
provided an opportunity to inspect the Premises and the Building sufficient to
determine whether or not the Premises and the Building in their condition
current as of the date hereof deviate in any manner from the ADA Accessibility
Guidelines (“ADAAG”) or
any other requirements under the ADA pertaining to the accessibility of the
Premises or the Building. Tenant further acknowledges and agrees that
except as may otherwise be specifically provided herein, Tenant accepts the
Premises and the Building in “as-is” condition and agrees that Landlord makes no
representation or warranty as to whether the Premises or the Building conform to
the requirements of the ADAAG or any other requirements under the ADA pertaining
to the accessibility of the Premises or the Building. Tenant has
prepared or reviewed the plans and specifications for the Work (as such term is
defined in the Workletter) and has independently determined that such plans and
specifications are in conformance with the ADAAG and any other requirements of
the ADA. Tenant further acknowledges and agrees that to the extent
that Landlord prepared, reviewed or approved any of those plans and
specifications, such action shall in no event be deemed any representation or
warranty that the same comply with any requirements of the
ADA. Notwithstanding anything to the contrary in this Lease, the
parties hereby agree to allocate responsibility for Title III compliance as
follows: (a) Tenant shall be responsible for all Title III compliance
and costs in connection with the Premises, including structural work, if any,
and including any leasehold improvements or other work to be performed in the
Premises under or in connection with this Lease, and (b) Landlord shall perform,
and Tenant shall be responsible for the cost of, any so-called Title III “path
of travel” requirements triggered by any construction activities or alterations
in the Premises. Except as set forth above with respect to Landlord’s
Title III obligations, Tenant shall be solely responsible for all other
requirements under the ADA relating to Tenant or any affiliates or persons or
entities related to Tenant (collectively, “Affiliates”), operations of Tenant or
Affiliates, or the Premises, including, without limitation, requirements under
Title I of the ADA pertaining to Tenant’s employees.
54
ARTICLE
32
EXCULPATORY
PROVISIONS
It is
understood and agreed expressly by and between the parties hereto, anything
herein to the contrary notwithstanding, that each and all of the
representations, warranties, covenants, undertakings and agreements made herein
on the part of Landlord, while in form purporting to be the representations,
warranties, covenants, undertakings and agreements of Landlord, are nevertheless
each and every one of them made and intended, not as personal representations,
warranties, covenants, undertakings and agreements by Landlord or for the
purpose or with the intention of binding Landlord personally, but are made and
intended for the purpose only of subjecting Landlord’s interest in the Building,
the Land and the Premises to the terms of this Lease and for no other purpose
whatsoever, and in case of default hereunder by Landlord, Tenant shall look
solely to the interests of Landlord in the Building and Land; that Landlord
shall have no personal liability whatsoever to pay any indebtedness accruing
hereunder or to perform any covenant, either express or implied, contained
herein; and that no personal liability or personal responsibility of any sort is
assumed by, nor shall at any time be asserted or enforceable against, said
Landlord, individually or personally, on account of any representation,
warranty, covenant, undertaking or agreement of Landlord in this Lease
contained, either express or implied, all such personal liability, if any, being
expressly waived and released by Tenant and by all persons claiming by, through
or under Tenant.
ARTICLE
33
INTENTIONALLY
OMITTED
ARTICLE
34
ANTI-TERRORISM
REQUIREMENTS
Tenant
represents and warrants that (a) neither Tenant nor any person who owns any
direct or indirect beneficial interest in Tenant or any of them, is listed on
the list maintained by the United States Department of the Treasury, Office of
Foreign Assets Control (commonly known as the OFAC List) or otherwise qualifies
as a person with whom business by a United States citizen or resident is
prohibited and (b) neither Tenant nor any person who owns any direct or indirect
beneficial interest in Tenant or any of them is in violation of any anti-money
laundering or anti-terrorism statute, including, without limitation, the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001, U.S. Public Law 107-56 (commonly known as
the USA PATRIOT Act), and the related regulations issued thereunder, including
temporary regulations, all as amended from time to time.
55
ARTICLE
35
INTENTIONALLY
OMITTED
[EXECUTION
PAGE FOLLOWS]
56
IN WITNESS WHEREOF, the
parties hereto have caused this Lease to be executed as of the date first
written above.
WITNESS/ATTEST:
|
LANDLORD:
|
||
/s/
Illegible Signature
|
SMIII
WOODBRIDGE PLAZA,
LLC,
a
Delaware limited liability company
|
||
Name:
|
|||
|
By: KBS
Realty Advisors, LLC,
as
Agent
|
||
By:
|
/s/
Xxxxxxx X. Xxxxxxxxx
|
||
Name: | Xxxxxxx X. Xxxxxxxxx | ||
Its:
|
Senior Vice President | ||
WITNESS/ATTEST:
|
TENANT:
|
||
/s/
Xxxxx X. Xxxxxxx
|
CAREADVANTAGE,
INC.,
a
Delaware corporation
|
||
Name:
|
|||
By:
|
/s/
Xxxxxx X. Xxxxxx
|
||
Name:
|
Xxxxxx
X. Xxxxxx
|
||
Its:
|
CEO
|
57
EXHIBIT
A
FLOOR PLAN FOR THE
PREMISES
SEE
ATTACHED
A-1
EXHIBIT
B
LEGAL DESCRIPTION OF
LAND
B-1
B-2
B-3
B-4
B-5
B-6
B-7
EXHIBIT
C
RULES AND
REGULATIONS
1. Tenant
shall not obstruct or permit its agents, clerks or servants to obstruct, in any
way, the sidewalks, entry passages, corridors, halls, stairways or elevators of
the Building or use the same in any other way than as a means of passage to and
from the offices of Tenant; bring in, store, test or use any materials in the
Building which could cause a fire or an explosion or produce any fumes or vapor;
make or permit any improper noises in the Buildings; smoke in the elevators;
throw substances of any kind out of the windows or doors, or down the passages
of the Building, or in the hallways or passageways; sit on or place anything
upon the window xxxxx; or clean the windows.
2. Waterclosets
and urinals shall not be used for any purpose other than those for which they
were constructed; and no sweepings, rubbish, ashes, newspaper or any other
substances of any kind shall be thrown into them. Waste and excessive
or unusual use of electricity or water is prohibited.
3. The
windows, doors, partitions and lights that reflect or admit light into the halls
or other places of the Building shall not be obstructed. No signs,
advertisements or notices shall be inscribed, painted, affixed or displayed, in,
on, upon or behind any windows, except as may be required by law or agreed upon
by the parties; and no sign, advertisement or public notice shall be inscribed,
painted or affixed on any doors, partitions or other part of the Building,
without the prior written consent of Landlord. If such consent be
given by Landlord, any such sign, advertisement or notice shall be inscribed,
painted or affixed by Landlord, or a company approved by Landlord, but the cost
of the same shall be charged to and be paid by Tenant, and Tenant agrees to pay
the same promptly, on demand.
4. No
contract of any kind with any supplier of towels, water, etc., toilet articles,
waxing, rug shampooing, venetian blind washing, furniture polishing, lamp
servicing, cleaning of electrical fixtures, removal of waste paper, rubbish or
garbage, or other like service shall be entered into by Tenant, nor shall any
vending machine of any kind be installed in the Building, or on the Office
Complex, without the prior written consent of Landlord.
5. When
electric wiring of any kind is introduced, it must be connected as directed by
Landlord, and no stringing or cutting of wires will be allowed, except with the
prior written consent of Landlord, and shall be done only by contractors
approved by Landlord. The number and location of telephones,
telegraph instruments, electric appliances, call boxes, etc., shall be approved
by Landlord. Tenant shall not lay linoleum or other similar floor
covering so that the same shall be in direct contact with the floor of the
Premises, and if linoleum or other similar floor covering is desired to be used,
an interlining of builder’s deadening felt shall be first affixed to the floor
by a paste or other material, the use of cement or other similar adhesive
material being expressly prohibited.
C-1
6. Landlord
shall have the right to prescribe the weight, size and position of all safes and
other bulky or heavy equipment and all freight brought into the Building by
Tenant; and also the times of moving the same in and out of the Building; and
all such moving must be done under the supervision of
Landlord. Landlord will not be responsible for loss of or damage to
any such equipment or freight from any cause; but all damage done to the
Building by moving or maintaining any such equipment or freight shall be
repaired at the expense of Tenant. All safes shall stand on a base of
such size as shall be designated by Landlord. Landlord reserves the
right to inspect all freight to be brought into the Building and to exclude from
the Building all freight which violates any of these Rules and Regulations or
the Lease of which these Rules and Regulations are a part.
7. No
machinery of any kind or articles of unusual weight or size will be allowed in
the Building without the prior written consent of Landlord. Business
machines and mechanical equipment shall be placed and maintained by Tenant, at
Tenant’s expense, in settings sufficient, in Landlord’s judgment, to absorb and
prevent vibration, noise and annoyance.
8. No
additional lock or locks shall be placed by Tenant on any door in the Building,
without prior written consent of Landlord. Two keys will be furnished
Tenant by Landlord; any additional keys requested by Tenant shall be paid for by
Tenant at a charge of $2.00 per key. Tenant, its agents and
employees, shall not have any duplicate key made and shall not change any
locks. All keys to doors and washrooms shall be returned to Landlord
at the termination of the tenancy, and, in the event of loss of any keys
furnished, Tenant shall pay Landlord the cost thereof. Access cards
for after hours entrance will be issued by Landlord based on Tenant’s initial
employee list. Additional cards after occupancy will be paid for by
Tenant at a charge of $7.30 per card. Replacement cards for lost
cards will be charged to Tenant at $25.00 per card. All access cards
shall be returned to Landlord at the termination of the tenancy, and in the
event of loss of any access cards furnished, Tenant shall pay Landlord the cost
thereof.
9. Tenant
shall not employ any person or persons other than Landlord’s janitors for the
purpose of cleaning the Premises, without prior written consent of
Landlord. Landlord shall not be responsible to Tenant for any loss of
property from the Premises however occurring, or for any damage done to the
effects of Tenant by such janitors or any of its employees, or by any other
person or any other cause. The janitor’s service furnished by
Landlord does not include the beating or cleaning of carpets or
rugs.
10. No
bicycles, vehicles or animals of any kind shall be brought into or kept in or
about the Premises.
11. The
requirements of Tenant will be attended to only upon application at the office
of the Building. Employees of Landlord shall not perform any work for
Tenant or do anything outside of their regular duties, unless under special
instructions from the office of Landlord. Landlord agrees to keep
Tenant advised at all times of how to contact the Building Manager.
12. The
Premises shall not be used for lodging or sleeping purposes, and cooking therein
is prohibited. Vending machines for coffee and rolls are permitted,
as are microwaves, refrigerators and other kitchen appliances for use by
Tenant’s employees. If additional electric wiring is needed to
accommodate said equipment, the cost will be borne by Tenant.
C-2
13. Tenant
shall not conduct, or permit any other person to conduct any auction upon the
Premises, manufacture or store goods, wares or merchandise upon the Premises,
without the prior written approval of Landlord, except the storage of usual
supplies and inventory to be used by Tenant in the conduct of its business;
permit the Premises to be used for gambling; make any unusual noises in the
Building; permit to be played any musical instrument in the Premises; permit to
be played any radio, television, recorded or wired music in such a loud manner
as to disturb or annoy other tenants; or permit any unusual odors to be produced
upon the Premises. Tenant shall not occupy or permit any portion of
the Premises leased to Tenant to be occupied as an office for a public
stenographer or typist, or for the possession, storage, manufacture, or sale of
intoxicating beverages, narcotics, tobacco in any form, or as a xxxxxx or
manicure shop. Tenant shall use good faith efforts to comply with
Landlord’s policy of making the Building a smoke-free
environment. Smoking is prohibited except where designated on the
outside of the Building.
14. After
6:00 p.m. until 8:00 a.m. on weekdays, and at all hours on Saturdays, Sundays
and public holidays, the Building is closed, and Tenant shall be entitled to
access in accordance with the Lease. Landlord reserves the right to
exclude from the Building during such periods all persons who do not present an
access card to the Building issued by the Landlord to Building
tenants. Tenant shall be responsible for all persons to whom Tenant
issues such access cards and shall be liable to Landlord for all acts of such
persons.
15. No
awnings or other projections shall be attached to the outside walls of the
Building. No curtains, blinds, shades or screens shall be attached to
or hung in, or used in connection with, any window or door of the Premises,
without the prior written consent of Landlord. Such curtains, blinds
and shades must be of quality, type, design and color and attached in a manner
approved by Landlord.
16. Canvassing,
soliciting and peddling in the Building are prohibited, and Tenant shall
cooperate to prevent the same.
17. There
shall not be used in the Premises or in the Building, either by Tenant or by
others in the delivery or receipt of merchandise, any hand trucks, except those
equipped with rubber tires and side guards, and no hand trucks will be allowed
in passenger elevators.
18. Tenant,
before closing and leaving the Premises, shall ensure that all windows are
closed and all entrance doors locked.
19. Landlord
shall have the right to prohibit any advertising by Tenant which, in Landlord’s
opinion, tends to impair the reputation of the Building or its desirability as a
building for offices, and upon written notice from Landlord, Tenant shall
refrain from or discontinue such advertising.
20. Tenant,
its employees, agents, representatives, invitees and business visitors shall
comply promptly and courteously with the directions of any Building security
personnel hired by Landlord, including but not limited to the rights of such
security personnel to inspect articles to be taken from the Building (other than
those to be taken out in the usual course of business of Tenant).
21. Landlord
shall not be responsible to Tenant for the non-observance or violation of any of
these Rules and Regulations by any other tenants.
C-3
22. Tenant
and its employees shall park their cars only in those portions of the parking
area designated by Landlord and shall not park in visitor parking or in areas
reserved for use by other tenants. Landlord reserves the right to
have vehicles towed at expense of the vehicle owner if the vehicle is in
violation of parking rules.
C-4
EXHIBIT
D
WORKLETTER
Table of
Contents
Paragraph
|
Page
|
||||
1
|
Work
|
X-0
|
|||
0
|
Xxxxx
|
X-0
|
|||
0
|
Intentionally
Deleted
|
D-3
|
|||
4
|
Delays
in Work
|
D-3
|
|||
5
|
Completion
— Punch List
|
X-0
|
|||
0
|
Xxxxxx
by Tenant Prior to Commencement of Term
|
D-5
|
|||
7
|
Waiver
of Claims
|
D-6
|
|||
8
|
Changes
in the Work
|
X-0
|
|||
0
|
Xxxxxxxxxxxxx
|
X-0
|
|||
Attachment
A
|
X-0
|
||||
Xxxxxxxxxx
X-0
|
|
|
X-00
|
X-0
WORKLETTER
Capitalized
terms used herein, unless otherwise defined in this Workletter, shall have the
respective meanings assigned to them in the Lease.
For and
in consideration of the agreement to lease the Premises and the mutual covenants
contained herein and in the Lease, Landlord and Tenant hereby agree as
follows:
1. Work. Landlord
shall cause to be performed the work (the "Work") in the Premises
provided for in the Plans (as defined in Paragraph 2 hereof) approved by
Landlord. Landlord shall proceed diligently to cause the Work to be
substantially completed at or before the Commencement Date of the term of the
Lease, subject to "Tenant Delay" and "Force Majeure Delay" (as such terms are
defined in Paragraph 4 hereof).
2. Plans.
(a) Landlord
shall submit full and detailed architectural and engineering plans and
specifications covering the Work (including, without limitation, architectural,
mechanical and electrical working drawings for the Work) (collectively, the
"Plans") to Tenant for
Tenant's approval. The Plans shall include the minimum information
shown on Attachment
A attached hereto and
incorporated herein. The Plans shall be subject to
Tenant's approval and the approval of all local governmental authorities
requiring approval, if any. Tenant shall give its approval or
disapproval (giving general reasons in case of disapproval) of the Plans within
ten (10) days after their delivery to Tenant. Tenant agrees not to
unreasonably withhold its approval of said Plans. Failure of Tenant
to respond within said 10-day period shall be deemed approval of the Plans by
Tenant. Tenant shall cooperate with Landlord by discussion or
reviewing preliminary plans and specifications at Landlord's request prior to
completion of the full, final detailed Plans in order to expedite preparation of
the final Plans and the approval process. If Tenant notifies Landlord
that changes are required to the final Plans submitted by Landlord, Landlord
shall, within five (5) days thereafter, submit to Tenant for its approval the
Plans as amended in accordance with the changes so required. The
Plans shall also be revised, and the Work shall be changed, to incorporate any
work required in the Premises by any local governmental field
inspector. Preparation of the Plans by Landlord's architect shall in
no way be deemed to be a representation that any element therein contained
complies with applicable laws, ordinances, regulations or other governmental
requirements.
(b) Landlord,
at its sole option, may substitute for items, materials or finishes designated
in the Plans other items, materials or finishes of comparable kind and
quality. All Work to be done by Landlord and any installations in the
Premises as set forth in the Plans or otherwise shall be done using
Building-standard specifications, materials, finishes and
supplies. Landlord, at its sole option, may also change mechanical
plans and specifications where necessary for the installation of air
conditioning systems and ductwork, heating, electrical and plumbing and other
mechanical plans for the Work; provided that any such changes shall not
materially and adversely affect Tenant's use and occupancy of the Premises for
its intended purpose.
D-2
3. Intentionally
Deleted.
4. Delays in
Work. Notwithstanding the date provided in the Lease for the
commencement of the term thereof, Tenant's obligation to pay Rent thereunder
shall not commence until Landlord shall have substantially completed all Work to
be performed by Landlord as set forth in Paragraph l hereof; provided, however,
if Landlord shall be delayed in substantially completing said Work for any
reason set forth in the following subparagraphs (a) through (f) ("Tenant Delay") or for any
reason set forth in the following subparagraph (g) ("Force Majeure Delay"), then
neither the Commencement Date of the term of the Lease nor the payment of Rent
thereunder shall be affected or deferred on account of such delay:
(a) Tenant's
request for or use of unique materials, finishes or installations or
construction procedures which are substantially different from that which is
standard or customary for the Building or from that shown in any space plan
which Tenant has heretofore furnished Landlord, or resulting in the Work
required by the Plans (as same may be revised from time to time) taking longer
to complete under standard construction procedures (e.g., without use of
overtime or additional shifts and without necessitating other measures to
expedite long lead time items) than originally projected by Landlord at the
execution of this Lease (i.e., when Landlord developed its schedule for
construction of the Work without the benefit of the Plans);
(b) Tenant's
failure to pay for any portion of the Work as and when payable by Tenant
hereunder, or Tenant’s failure to respond to Landlord’s submission of Plans to
Tenant for its approval or disapproval within the time period described in
paragraph 2(a) above;
(c) Tenant's
changes in the Work or the Plans after the approval thereof or deemed approval
thereof as provided in paragraph 2(a) above
(notwithstanding Landlord's approval of any such
changes);
(d) Landlord's
determination that base building modifications are necessary in order to
accommodate the Work;
(e) The
entry by Tenant or Tenant's Contractors (as defined in Paragraph 6 below) in or
about the Premises or Building;
(f) any
other act, omission or delay by Tenant, its agents or contractors or persons
employed by any of such persons delaying substantial completion of the Work;
or
(g) any
other cause beyond the reasonable control of Landlord, including, without
limitation, strikes, lockouts, labor trouble, disorder, inability to procure
materials, failure of power, restrictive governmental laws and regulations,
riots, insurrections, war, fuel shortages, accidents, casualties and acts of
God.
D-3
5. Completion —
Punch List.
(a) When
Landlord's architect considers the Work to be substantially complete or about to
be substantially completed, Landlord shall notify Tenant as to the date or
anticipated date of substantial completion and of a reasonable time and date for
inspection of the Work. If such time and date for inspection are not
reasonably acceptable to Tenant, Landlord and Tenant shall mutually agree upon
another time and date, provided that Tenant shall not unreasonably delay such
inspection. Tenant agrees to inspect the Premises at such time and on
such date and to execute at the time of such inspection Landlord's form of
inspection report which shall be prepared by Landlord's architect and shall list
items designated by said architect as not yet completed and any additional items
which Landlord and Tenant, in good faith, agree are not yet completed (said list
is hereinafter referred to as a "Punch List"). If
Tenant does not appear for inspection on the date designated or agreed upon,
Tenant shall be deemed to have accepted the Premises as substantially completed
and Landlord or its representative may execute such Punch List on behalf of both
Landlord and Tenant. In the event of any dispute as to whether or not
Landlord has substantially completed the Work, the decision of
Landlord's architect shall be final and binding on the
parties. Tenant agrees that, at the request of Landlord from time to
time after the initial inspection, Tenant shall initial such Punch List or
execute revised Punch Lists to reflect completion or partial completion of prior
Punch List items.
(b) At
any time after substantial completion of the Work, Landlord may enter the
Premises to complete Punch List items, and such entry by Landlord or its agents,
employees or contractors for such purpose shall not constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to any abatement
or diminution of rent, or relieve Tenant from any of its obligations under the
Lease, or impose any other liability upon Landlord or its agents, employees or
contractors.
(c) Notwithstanding
any provisions to the contrary contained in this Workletter, if the Premises or
any part thereof are used or occupied for construction, installation of
equipment or personal property or for any other purpose by the Tenant or
Tenant's agents, contractors or employees prior to substantial completion, it is
agreed that the Work affecting said Premises shall then be deemed accepted by
Tenant "as is" and Landlord shall have no obligation to complete any incomplete
items; provided, however, that at the request of either party hereunder,
Landlord and Tenant, acting reasonably, shall prepare a Punch List prior to such
occupancy showing incomplete items to be completed by
Landlord. Notwithstanding the foregoing, no such use or occupancy
prior to substantial completion shall be permitted without Landlord's consent,
in Landlord's sole discretion.
(d) The
phrases “substantial completion” or “substantially complete” shall mean that the
Work has been completed (except for such incomplete items as would not
materially interfere with the use of the Premises for its intended uses as
described in the Lease) and final inspection approvals have been granted by the
local governing authority. The Work shall be deemed to be
substantially complete on the date on which the Work would have been
substantially complete but for Tenant Delay or Force Majeure Delay or on such
earlier date as the Work shall be deemed to be substantially complete pursuant
to Paragraph 5(c) above.
D-4
6. Access by
Tenant Prior to Commencement of Term.
(a) Landlord,
at Landlord's sole discretion, may permit Tenant and Tenant's agents, suppliers,
contractors, subcontractors and workmen (collectively, "Tenant's Contractors"), who
have been approved by Landlord as hereinafter provided, to enter the Premises
prior to the Commencement Date of the term of the Lease to enable Tenant to
install its telephone and computer cabling and carpeting or do such other things
as may be required by Tenant to make the Premises ready for Tenant's occupancy.
No entry or access by Tenant or Tenant’s Contractors shall be permitted any
earlier than thirty (30) days prior to the Commencement Date.
(b) Tenant
shall notify Landlord of the identity of Tenant's Contractors not less than five
(5) days prior to the initial entry into the Premises by any such Tenant's
Contractors, and Landlord shall have the right to approve or disapprove any of
Tenant's Contractors.
(c) Tenant
agrees that if permission is granted Tenant for early entry under this
Paragraph, then (i) Tenant and Tenant's Contractors and their activities in the
Premises and Building will not interfere with or delay the completion of the
Work to be done by Landlord and will not interfere with other construction by
Landlord, its contractors and subcontractors and their agents and employees or
occupants of the Building and their contractors in or about the Premises or
Building, and (ii) Landlord, its contractors and subcontractors and their agents
and employees shall have priority over Tenant and Tenant's Contractors in
performing work within the Premises or Building, including, without limitation,
the use of hoists and elevators.
(d) Landlord
shall have the right to withdraw its early occupancy permission given under this
Paragraph 6 upon written or oral notice to Tenant if Landlord determines that
any interference or delay has been or may be caused. Tenant agrees
that any such entry into the Premises shall be at Tenant's own risk and Landlord
shall not be liable in any way for any injury, loss or damage which may occur to
any of the Tenant's property or installations made in the Premises.
(e) Tenant
shall promptly pay to each of Tenant's Contractors when due the cost of all Work
done by such Tenant's Contractor and, if required by Landlord, shall deliver to
Landlord evidence of payment to each such party, together with contractors'
affidavits, partial and full and final waivers of all liens for labor, service
or materials and such other documents as Landlord may request.
(f) Any
work performed by Tenant or Tenant's Contractors shall be done in a first-class
workmanlike manner using only first-class grades of materials and shall comply
with all of Landlord's rules and requirements and all applicable laws,
ordinances, rules and regulations of governmental departments or
agencies.
D-5
(g) Any
work done by Tenant or Tenant's Contractors will be scheduled and coordinated
through Landlord and shall be performed under the supervision and control of
Landlord to the extent Landlord determines to be necessary.
(h) Tenant
agrees to protect, defend, indemnify and save harmless Landlord and its
officers, directors, partners, employees and agents from all liabilities, costs,
damages, fees and expenses arising out of or connected with the activities of
Tenant or Tenant's Contractors in or about the Premises or Building, including,
without limitation, the cost of any repairs to the Premises or Building
necessitated by activities of Tenant or Tenant's Contractors. In
addition, prior to the initial entry into the Building or the Premises by Tenant
or any of Tenant's Contractors, Tenant shall furnish Landlord, at Tenant's sole
cost, with policies of insurance required by the Lease and with any additional
insurance covering Landlord and its officers, directors, partners, employees and
agents as insured parties, with such coverages and in such amounts as Landlord
may then require, in order to insure Landlord and its officers, directors,
partners, employees or agents against loss or liability for injury or death or
damage to property arising out of or connected with any activities of Tenant or
Tenant's Contractors. Tenant acknowledges that the foregoing
indemnity shall be in addition to the insurance requirements set forth herein
and shall not be in discharge of or in substitution for same.
(i) Tenant
has no authority or power to cause or permit any lien or encumbrance of any kind
whatsoever, whether created by act of Tenant, operation of law or otherwise, to
be attached to or be placed upon Landlord's title or interest in the Premises,
Building or underlying land, and any and all liens and encumbrances created by
Tenant shall attach to Tenant's interest only. Tenant covenants and
agrees not to suffer or permit any lien of mechanics or materialmen or others to
be placed upon the Premises, Building or land with respect to work or service
claimed to have been performed for, or materials claimed to have been furnished
to, Tenant or the Premises by Tenant's Contractors, and in case of any such lien
attaching, Tenant covenants and agrees to cause it to be immediately released
and removed of record. In the event that such lien is not immediately
released and removed within ten (10) days after such lien, or notice thereof, is
filed, Landlord, at its sole option, may take all action necessary to release
and remove such lien (without any duty to investigate the validity thereof) and
Tenant shall promptly upon notice reimburse Landlord for all sums, costs and
expenses (including attorneys' fees) incurred by Landlord in connection with
such lien.
7. Waiver of
Claims. Tenant hereby waives all claims by the Tenant except
those arising from Landlord's failure to complete in due course the incomplete
items, if any, described on the Punch List. THE FOREGOING CONSTITUTES LANDLORD'S
ONLY WARRANTY. ALL IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO,
THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY
NEGATED AND WAIVED.
D-6
8. Changes
in the Work.
(a) Landlord
or any Contractor may make minor changes in the Work arising during the
construction process not inconsistent with the intent hereof. In
addition, after prior notice to Tenant (which notice need not be in writing),
the Work shall be changed (and the Plans will be revised by Tenant) to reflect
changes required by any local government inspectors.
(b) Tenant,
at its own expense, may make changes in the Work by submitting to Landlord the
required revised Plans for approval or disapproval in accordance with the
approval/disapproval standards described in Paragraph 2 hereof. In
the event Tenant submits revised Plans which are approved by Landlord, Landlord
will thereafter submit a proposal (the "Proposal") to Tenant for
approval showing (i) the increased cost of the Work resulting from the proposed
changes and (ii) the delay in completion of the Work anticipated as a result of
the proposed changes (it being understood that Tenant's request for a change may
constitute "Tenant Delay" pursuant to Paragraph 4 and the date of substantial
completion shall not be delayed or extended by reason thereof). The
increased cost of the Work shall reflect all anticipated changes relating to
said Tenant changes, and shall be paid for by Tenant to Landlord on demand at
any time as Additional Rent. The Proposal shall include a form of
Change Order which shall set forth the anticipated time to perform such
change(s) and the anticipated adjustment to the cost of the Work ("Change
Order"). Tenant may approve the Proposal by executing and
delivering the Change Order to Landlord within the time period specified in the
Proposal (or within forty-eight (48) hours, if no period is
required). If Tenant fails to approve the Proposal within the
specified time period, Tenant shall be deemed to have abandoned its request for
changes in the Work and Landlord may proceed with the Work without regard to
such requested changes. If at any time Tenant has requested changes,
or Landlord has delivered a Proposal to Tenant and Tenant has not yet approved
the Proposal, Landlord may at its election cease any portions of the Work
affected by such changes, and delays caused by such cessation of Work shall
constitute a "Tenant
Delay" as defined in Paragraph 4 hereof.
9. Miscellaneous.
(a) The
Work shall be done by Landlord, or its designees, contractors or subcontractors,
in accordance with the terms, conditions and provisions herein
contained.
(b) Except
as herein expressly set forth or in the Lease, Landlord has no agreement with
Tenant and has no obligation to do any other work with respect to the Premises
including, but not limited to, Tenant's telephone and data cabling and
installation, computer cabling and system furniture installation, which work
items shall be Tenant's sole responsibility at its sole cost and expense and
shall not be part of the Work or this Workletter. Any work in the
Premises which Tenant may be permitted by Landlord to perform prior to the
Commencement Date of the term of the Lease shall be done at Tenant's sole cost
and expense and in accordance with the terms and conditions of the Lease, and
the terms and provisions of Paragraph 6 of this Workletter and such other
requirements as Landlord deems necessary or desirable. Any additional
work or alterations to the Premises desired by Tenant after the Commencement
Date of the term shall be subject to the provisions of the Lease.
D-7
(c) If
the Plans for the Work require the construction and installation of more fire
hose cabinets or telephone/electrical closets than the number regularly provided
by Landlord in the core of the Building in which the Premises are located,
Tenant agrees to pay all costs and expenses arising from the construction and
installation of such additional fire hose cabinets or telephone/electrical
closets as Additional Rent on demand.
(d) Landlord
is entitled to all available investment tax credits, if any, for Work paid for
and property acquired by Landlord pursuant to the Lease and this
Workletter. Nothing in the Lease or this Workletter shall be
construed as an agreement by Landlord to pass any investment tax credits through
to Tenant.
(e) Time
is of the essence of this Workletter.
(f) This
Workletter shall not be deemed applicable to any additional space added to the
original Premises at any time or from time to time, whether by any options under
the Lease or otherwise, or to any portion of the original Premises or any
additions thereto in the event of a renewal or extension of the original term of
the Lease, whether by any options under the Lease or otherwise, unless expressly
so provided in the Lease or any amendment or supplement thereto.
(g) Tenant's
failure to pay any amounts owed by Tenant hereunder when due or Tenant's failure
to perform its obligations hereunder shall also constitute a Default under the
Lease, and Landlord shall have all the rights and remedies granted to Landlord
under the Lease for nonpayment of any amounts owed thereunder or failure by
Tenant to perform its obligations thereunder. Notices under this
Workletter shall be given in the same manner as under the Lease.
(h) The
liability of Landlord hereunder or under any amendment hereto or any instrument
or document executed in connection herewith (including, without limitation, the
Lease) shall be limited to and enforceable solely against Landlord's interest in
the Building.
D-8
ATTACHMENT
A
MINIMUM INFORMATION FOR
PLANS
Construction
Drawings to be prepared as per the space plan Attachment A-1 annexed hereto and
made a part hereof and must be approved by the Tenant before the application of
the building permit to the local governing authority.
All
construction and construction materials shall conform to all applicable building
codes.
All fire
alarm device installations shall conform to all applicable building
codes.
All HVAC,
including ceiling diffusers shall comply with all applicable building
codes.
All
electrical switches and outlets installed shall comply with applicable codes,
including quantity and location, unless otherwise specified by the Tenant.
Landlord to install 115 volt power for the six (6) server room racks as
specified.
Landlord
to install an electric sub-meter for all tenant power and lights.
Landlord
to install a dedicated 5-ton cooling unit in the server room with a roof mounted
condenser.
All
ceiling, floor, wall, millwork, door and hardware finishes to be Building
standard.
Wall
painted with flat finish, door frames to be painted with semi-gloss, doors with
natural finish. Color to be specified by Tenant.
All
existing office doors and locks to remain, any new to match existing. All locks
to be keyed to master key system. Lock to be installed on CEO’s office
door.
Existing
ceiling grid and tile to remain as is. Repair and/or replace as
needed.
Existing
lighting to remain as is. Any new to match existing.
All
window blinds to be repaired and/or replaced as needed.
Existing
pantry millwork, sink and faucet located in Attachment A-1 to remain
as is.
The
tenant shall specify, supply and install all voice and data communication wiring
and equipment. All electrical installations for this equipment to be
performed by the Landlord based on Tenant specifications.
Landlord
to install a card access control system with magnetic locks and a video intercom
system for the main entrance doors and electric strikes for the server room and
secondary entrance. Tenant to pay for all on site or off-site card access data
base administration.
X-0
XXXXXXXXXX
X-0
X-00
X-00
EXHIBIT
E
INTENTIONALLY
OMITTED
E-1
EXHIBIT
F
JANITORIAL AND CLEANING
SCHEDULE
A. OFFICE CLEANING - NIGHTLY
SERVICES FIVE (5) TIMES PER WEEK
1.
|
Vacuum
all carpeted and uncarpeted traffic areas throughout designated areas,
using a high filtration vacuum system. Remove any carpet stains
as needed.
|
2.
|
Hard
surface floors will be swept and damp
mopped.
|
3.
|
Partition
glass will be free of finger marks and
smudges.
|
4.
|
Smudge
marks, etc. will be removed from all walls, doors, doorframes, partitions
and light switch covers.
|
5.
|
Hand
dust all uncluttered desktops, file cabinets, counters, xxxxx, and ledges
up to 72” in height.
|
6.
|
Recycling
baskets will be emptied.
|
7.
|
Wastebaskets
will be emptied and trashcan liners will be replaced as
needed.
|
8.
|
Water
fountains will be cleaned and
disinfected.
|
9.
|
Keep
baseboards in clean condition.
|
10.
|
Keep
door kick plates and push plates in a clean
condition.
|
11.
|
Neatly
arrange furniture after cleaning.
|
12.
|
All
entrance door glass, frames and ledges to be cleaned - both
sides.
|
13.
|
All
lights to be turned off upon
exiting.
|
14.
|
Verify
that all entrance doors to Tenants’ suites are
locked
|
15.
|
Spot
clean noticeable spills and stains on resilient tiled
areas.
|
16.
|
Collect
all trash and remove to designated
area.
|
17.
|
Equipment
and cleaning materials will be return to storage
areas.
|
18.
|
Equipment
failure such as lighting irregularities and plumbing will be noted in
written communication to the management
office.
|
B. KITCHEN & LUNCH AREAS
AND COFFEE STATIONS - NIGHTLY SERVICES FIVE (5) TIMES PER
WEEK
1.
|
Empty
all waste receptacles and emptied with trash transport to designated
area.
|
2.
|
Clean
all trashcans.
|
3.
|
Spot
clean walls, doors, furniture, etc.
|
4.
|
Vacuum
all carpeted areas.
|
5.
|
Spot
clean all carpeted areas.
|
6.
|
Vacuum,
sweep and damp mop all hard flooring using industry-approved disinfectant
detergent.
|
7.
|
Clean
sinks and damp wipe all cleared tabletops, cleared countertops, counter
and cabinet faces, refrigerators and
appliances.
|
8.
|
Arrange
furniture neatly.
|
F-1
C. LAVATORIES - NIGHTLY
SERVICES
1.
|
Sweep
and wet mop all hard surface floor areas with industry approve
disinfectant cleaner.
|
2.
|
Clean
and disinfect all water closets, urinals, and toilet bowls, inside and
out. Particular attention will be given to the interior ledges,
channels and traps.
|
3.
|
Clean
and disinfect all toilet seats and leave in the upright position and free
of watermarks.
|
4.
|
Clean
and polish all mirrors, flushometers, piping, seat hinges, towel
dispensers and metal trim.
|
5.
|
Spot
clean all walls and wall fixtures, moldings, stalls and other
surfaces. Partitions to be free of water, splashings, finger
marks and dust.
|
6.
|
Replenish
all dispensers for paper hand towels, hand soap, toilet paper, seat
covers, sanitary napkins, and tampons, proper expendable rest room
supplies.
|
7.
|
Empty
all waste and sanitary disposal containers and replace
liners.
|
8.
|
Clean
and disinfect all disposal
containers.
|
9.
|
Wash
and polish all mirrors, powder shelves, bright work and enameled
surfaces.
|
10.
|
Clean
and disinfect all sinks, countertops and locker room
areas.
|
11.
|
Wash
all floors using proper industry-approved
disinfectants.
|
12.
|
Pour
water down floor drains.
|
13.
|
Dust
all xxxxx and ledges.
|
14.
|
Dust
the exhaust fan grills in the
ceiling.
|
D.
|
COMMON AREAS - NIGHTLY
SERVICES
|
1.
|
Check
and clean stairwells for trash, debris, and
dust.
|
2.
|
Vacuum
all entrance mats and runners.
|
3.
|
Vacuum
all Common Area carpets.
|
4.
|
Sweep
and Wet mop any Common Area hard surface
flooring.
|
5.
|
Empty
and clean all exterior cigarette urns and trash
receptacles.
|
6.
|
Police
exterior picnic areas for trash and
debris.
|
7.
|
All
entrance door glass, frames and ledges to be cleaned - both
sides.
|
8.
|
Clean
all drinking fountains.
|
9.
|
Remove
prints from elevator doors and walls. Vacuum, sweep or damp mop
elevator floors as necessary. Vacuum or polish elevator door
tracks and elevator control panels as needed to maintain a clean
appearance.
|
10.
|
Dust
all surfaces up to 72” in height (for example, artwork, fire extinguisher
cabinets, plant containers, signage,
etc.).
|
E. THE FOLLOWING TASKS ARE TO
BE PERFORMED WEEKLY:
1.
|
Detail
vacuum all offices, cubicles, conference rooms and traffic areas in Tenant
suites. Vacuum under
desks.
|
2.
|
Detail
vacuum all common area hallways, lobbies, and cafeteria seating
areas.
|
3.
|
Sweep
and wet mop stairwells to remove stains. Dust handrails and other
horizontal surfaces.
|
4.
|
Machine
scrub tile, ceramic/stone/vinyl, flooring in cafeteria serving area
only.
|
5.
|
Dust
all uncluttered desktops, file cabinets, counters, xxxxx and ledges up to
72”.
|
6.
|
Wash
and disinfect all partitions in the
lavatories.
|
F-2
7.
|
Inventory
and order all paper & plastic supplies through Management approved
vendor.
|
F. THE FOLLOWING TASKS ARE TO
BE PERFORMED MONTHLY:
1.
|
High
dust all horizontal and vertical surfaces above
72”.
|
2.
|
Dust
baseboards.
|
3.
|
Detail
vacuum any upholstered chairs.
|
4.
|
Machine
scrub cafeteria or building food service area stone/ceramic
flooring.
|
5.
|
Site
inspections with the property manager or
assistant.
|
G. THE FOLLOWING TASKS ARE TO
BE PERFORMED QUARTERLY:
1.
|
Clean
all ceiling diffusers, vents, and radiant
heaters.
|
2.
|
Spray-buff
all resilient tile floors if needed throughout the
building.
|
3.
|
Wipe
all venetian blinds with a treated cloth to remove
dust.
|
4.
|
Clean
all interior partition glass.
|
5.
|
Wash
and disinfect all ceramic tile walls in the
lavatories.
|
H. THE FOLLOWING TASKS ARE TO
BE PERFORMED ANNUALLY:
1.
|
Strip
and refinish the hard surface VCT or ceramic tile flooring if
needed.
|
2.
|
Machine
scrub ceramic tile flooring in lavatories and cafeteria and refinish with
three coats of a low slip, high traffic sealer or other process as
recommended by the flooring
manufacturer.
|
3.
|
Carpet
shampooing of all common areas using Rotary/Extraction
Method
|
I.
PERIODIC CLEANING SERVICES
(WEEKLY):
1.
|
Sanitize
all telephones as requested.
|
2.
|
Remove
finger marks and smudges on exterior surfaces of refrigerated units (no
defrosting or interior cleaning).
|
3.
|
Spot
wipe interior doors and light
switches.
|
4.
|
Low
dust furniture.
|
5.
|
Complete
vacuuming of all floor surfaces
|
J. STRIPPING &
RE-COATING
Strip and
re-coat resilient tiled areas per the following schedule. Move all
light furniture such as chairs, waste receptacles, etc., and replace them at
conclusion of service. Remove excess floor finish
build-up. The designated floor area as listed below shall then be
re-coated using two (2) coats of a U.L. approved floor seal and three (3) coats
of floor finish.
K. CARPET SHAMPOOING
SERVICES
One or
more of the following methods, using commercial and Underwriters
Laboratory
approved
material will be utilized.
F-3
|
1.
|
Rotary Method: This
method employs a floor machine and a shower fed brush. A
detergent solution is driven is driven into the pile by the
brush. This action emulsifies the oil film on the fibers and
releases the trapped dirt
particles.
|
|
2.
|
Extraction Method: This
method employs pressure pumps to apply the cleaners and high-power vacuums
to remove the soil in one pass. The overall appearance of the
carpet is improved because there is less soil and residue left in the
carpet when the process is
completed.
|
|
3.
|
Bonnet: This method
utilizes a solvent-saturated cotton pad in conjunction with a rotary floor
machine and is designed for the removal of light or surface
soiling.
|
|
4.
|
Rotary and Extraction
Method: this is the ultimate in carpet cleaning because the carpet
is first deep cleaned by the rotary method then soil and residue is picked
up and removed by the extraction
method.
|
F-4
EXHIBIT
G
CONFIRMATION OF COMMENCEMENT
DATE
THIS CONFIRMATION AGREEMENT is
made and agreed upon as of this _____ day of _____________, 2010, by and between
SMIII WOODBRIDGE PLAZA,
LLC, a Delaware limited liability company (the “Landlord”), and CAREADVANTAGE, INC., a
Delaware corporation (the “Tenant”).
WITNESSETH:
WHEREAS, Landlord and Tenant
have previously entered into that certain lease agreement dated December 28,
2009 (the “Lease”),
covering certain premises located in Woodbridge Xxxxxxxxx Xxxxx, 000 Xxxxx 0
Xxxxx, Xxxxxxxx X, a portion of the second
(2nd) floor,
Iselin, New Jersey 08830, as more particularly described in the Lease;
and
WHEREAS, Landlord and Tenant
wish to set forth their agreements as to the commencement of the term of the
Lease;
NOW, THEREFORE, in
consideration of the foregoing, the parties hereto mutually agree as
follows:
1. For
the purpose of confirming the establishment of the Commencement Date, as
required by the provisions of the Lease, Landlord and Tenant hereby agree
that:
a. The
date of __________________, ____, is hereby established as the “Commencement Date” referred
to in the Lease; and
b. The
date of ___________________, ____, is hereby established as the “Expiration Date” referred to
in the Lease.
2. The
Rentable Area of the Premises is 6,189 square feet and the Rentable Area of the
Building is 83,768 square feet.
3. Tenant’s
Proportionate Share, as defined in the Lease, as of the Commencement Date, is
7.39%.
4. This
Confirmation Agreement and each and all provisions hereof shall inure to the
benefit of, or bind, as the case may require, the parties hereto and their
respective heirs, successors and assigns.
G-1
IN
WITNESS WHEREOF, the parties hereto have executed this instrument as of the date
and year first written above.
TENANT:
CAREADVANTAGE,
INC.,
|
|
a
Delaware corporation
|
|
By:
|
|
Name:
|
|
Its:
|
|
LANDLORD:
SMIII WOODBRIDGE PLAZA,
LLC,
|
|
a
Delaware limited liability company
|
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By: KBS
Realty Advisors, LLC,
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as
Agent
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By:
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|
Name: Xxxxxxx
X. Xxxxxxxxx
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Its: Senior
Vice President
|
G-2
EXHIBIT
H
INTENTIONALLY
OMITTED
H-1
EXHIBIT I
PARKING
PLAN
I-1
I-2