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Search Big Box Store Lease Agreement by:
Exhibit 10.1
OFFICE LEASE
BETWEEN
CHESAPEAKE PLAZA, L.L.C.
(“LANDLORD”)
AND
PIER 1 SERVICES COMPANY
(“TENANT”)
TABLE OF CONTENTS
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1.
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Basic Lease Information | 1 | ||||
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2.
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Lease Grant | 2 | ||||
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3.
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Term; Adjustment of Commencement Date; Early Access | 3 | ||||
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4.
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Rent | 4 | ||||
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5.
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Tenant’s Use of Premises | 10 | ||||
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6.
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Security Deposit | 11 | ||||
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7.
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Services to be Furnished by Landlord | 11 | ||||
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8.
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Use of Electrical Services by Tenant | 14 | ||||
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9.
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Repairs and Alterations | 16 | ||||
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10.
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Entry by Landlord | 17 | ||||
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11.
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Assignment and Subletting | 17 | ||||
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12.
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Liens | 19 | ||||
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13.
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Indemnity | 19 | ||||
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14.
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Insurance | 14 | ||||
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15.
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Mutual Waiver of Subrogation | 20 | ||||
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16.
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Casualty Damage | 21 | ||||
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17.
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Condemnation | 22 | ||||
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18.
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Events of Default | 22 | ||||
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19.
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Remedies | 23 | ||||
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20.
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Limitation of Liability | 25 | ||||
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21.
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No Waiver | 25 | ||||
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22.
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Tenant’s Right to Possession | 25 | ||||
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23.
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Relocation | 25 | ||||
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24.
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Holding Over | 25 | ||||
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25.
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Subordination to Mortgages; Estoppel Certificate | 26 | ||||
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26.
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Attorneys’ Fees | 26 | ||||
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27.
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Notice | 26 | ||||
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28.
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Reserved Rights | 26 | ||||
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29.
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Surrender of Premises | 27 | ||||
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30.
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Hazardous Materials | 28 | ||||
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31.
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Miscellaneous | 28 | ||||
EXHIBITS AND RIDERS :
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EXHIBIT A-1
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CHART OF RENTABLE SQUARE FOOTAGE ON EACH FLOOR AND COMMON AREAS | |
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EXHIBIT A-2
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LEGAL DESCRIPTION OF PROPERTY | |
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EXHIBIT B
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RULES AND REGULATIONS | |
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EXHIBIT C
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PARKING AGREEMENT | |
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EXHIBIT C-1
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LOCATION OF LANDLORD’S PARKING SPACES FOR FLEET | |
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EXHIBIT D
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BILL OF SALE | |
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EXHIBIT E
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SPECIAL EVENT AREA IN LOBBY | |
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EXHIBIT F
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INSURANCE WAIVER | |
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RIDER NO. 1
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OPTION TO EXTEND |
-i-
OFFICE LEASE
This Office Lease (this “
Lease ”) is entered into by and between
CHESAPEAKE PLAZA, L.L.C., a Oklahoma limited liability company
(“ Landlord ”), and PIER 1 SERVICES
COMPANY , a Delaware statutory trust (“
Tenant ”), and shall be effective as of the
date set forth below Landlord’s signature (the “
Effective Date ”).
1.
Basic Lease Information . The key business terms used
in this Lease are defined as follows:
A. “
Building ”: The building commonly known as Pier
1 Place and located at 100 Pier 1 Place, Fort Worth, Tarrant
County, Texas 76102.
B. “
Rentable Square Footage of the Building ” is
agreed and stipulated to be 409,977 square feet.
C. “
Premises ”: The Premises are located on the
mezzanine and on the 5 th , 6 th , 7 th , 8 th , 9 th , 10
th , 11
th , 12
th , 14
th , 15
th , 16
th , 17
th and
20 th
floors of the Building. The “ Rentable Square Footage
of the Premises ” is deemed to be 344,798 square
feet. If the Premises include, now or hereafter, one or more floors
in their entirety, all corridors and restroom facilities located on
such full floor(s) shall be considered part of the Premises.
Landlord and Tenant stipulate and agree that the Rentable Square
Footage of the Building and the Rentable Square Footage of the
Premises are correct and shall not be remeasured. The Rentable
Square Footage of each floor of the Building and the Common Areas
(as hereinafter defined) is listed on
Exhibit A-1 . In the event any portion of the
lobby or other Common Areas is leased or otherwise utilized by
Landlord in a fashion that materially restricts or prohibits
Tenant’s use thereof, the Common Area Allocation factor added
to the Rentable Square Footage of the Premises (as set out in
Exhibit A-1 ), and therefore the Rentable Square
Footage of the Premises, shall be reduced accordingly. However,
Landlord’s use of any portion of the lobby or any other
Common Areas for events not more than five (5) days in
duration and not more than four (4) separate such events
during each calendar year (unless a longer time period is mutually
agreed upon by Landlord and Tenant) shall not constitute a material
restriction or prohibition of Tenant’s use thereof and shall
not result in a reduction of the Rentable Square Footage of the
Premises.
D. “
Base Rent ”:
| Annual Rate | Monthly | |||||||||||||||
| Period | Per Square Foot | Base Rent | ||||||||||||||
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CD
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through | Lease Month 36 | $ | 24.00 | $ | 689,596.00 | * | |||||||||
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Lease Month
37
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through | ED | $ | 26.00 | $ | 747,062.33 | * | |||||||||
CD =
Commencement Date
ED
= Expiration Date
Lease Month = A full calendar month, for example, if
the Commencement Date occurs on June 15, Lease Month 1
will be July 1 through July 31, Lease Month 2 will be August 1 through August 31, and so on.
will be July 1 through July 31, Lease Month 2 will be August 1 through August 31, and so on.
| * | Tenant’s monthly Base Rent obligations will be reduced as the Rentable Square Footage of the Premises is reduced including, without limitation, reductions pursuant to the provisions of Article 3 of this Lease and reductions as a result of the leasing of the lobby or other Common Areas; provided the annual Base Rent rate for the Premises shall remain as reflected in the table above. Further, such reductions in the Rentable Square Footage of the Premises and Tenant’s monthly Base Rent obligations shall be memorialized in an amendment to this Lease. |
E. “
Tenant’s Pro Rata Share ”: The percentage
equal to the Rentable Square Footage of the Premises divided by the
Rentable Square Footage of the Building, subject to reduction as
aforesaid.
F. “ Base
Year ” for Operating Expenses: Lease Months
1-12.
G. “
Term ”: The period of approximately
84 months starting on the Commencement Date, subject to the
provisions of Article 3 . Tenant shall have the right
to renew and extend the Term as set forth in Rider
No. 1 attached hereto and made a part hereof for all
purposes.
H. “
Commencement Date ”: June 9, 2008.
-1-
I.
“Business Day(s) ”: Monday through Friday
of each week, exclusive of New Year’s Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, the day after
Thanksgiving Day, Christmas Day and, at Landlord’s election,
either the day before or the day after Christmas Day (“
Holidays ”).
J. “
Law(s) ”: All applicable statutes, codes,
ordinances, orders, rules and regulations of any municipal or
governmental entity, now or hereafter adopted, including the
Americans with Disabilities Act and any other law pertaining to
disabilities and architectural barriers (collectively, “
ADA ”), and all laws pertaining to the
environment, including the Comprehensive Environmental Response,
Compensation and Liability Act, as amended, 42 U.S.C. §9601 et
seq. (“ CERCLA ”), and all restrictive
covenants currently existing of record and all rules and
requirements of any currently existing association or improvement
district affecting the Property.
L. “ Normal
Business Hours ”: 7 A.M. to 6 P.M. on Business Days
and 8 A.M. to 1 P.M. on Saturdays, exclusive of Holidays.
M. “ Notice
Addresses ”:
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Tenant
:
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With a copy to : | |||
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Pier 1 Services
Company
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Pier 1 Services Company | |||
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100 Pier 1
Place
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100 Pier 1 Place | |||
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Fort Worth, Texas
76102
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Fort Worth, Texas 76102 | |||
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Attn: Director of
Real Estate
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Attn: Legal Department | |||
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Phone #:
(817) 252-8488
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Phone #: (817) 252-7630 | |||
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Fax #:
(817) 252-7888
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Fax #: (817) 334-0191 | |||
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Landlord:
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With a copy to: | With a copy to: | ||
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Chesapeake Plaza,
L.L.C.
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Chesapeake Plaza, L.L.C. | Jackson Walker L.L.P. | ||
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6100 N.
Western
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6100 N. Western | 301 Commerce Street, | ||
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Oklahoma City, OK
73118
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Oklahoma City, OK 73118 | Suite 2400 | ||
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Attn: Director of
Real Estate
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Attn: General Counsel | Fort Worth, Texas 76102 | ||
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Phone#:
(405) 848-8000
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Phone#: (405) 848-8000 | Attn: Susan A. Halsey | ||
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Fax #:
(405) 767-4903
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Fax #: (405) 879-9561 | Phone #: (817) 334-7203 | ||
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Fax #: (817) 870-5103 |
Rent (defined in
Section 4.A ) is payable to the order of Chesapeake
Plaza, L.L.C. by electronic transfer to Bank of Oklahoma, ABA #
103900036 for further credit to Chesapeake Energy Corporation,
Account # 814109493, Reference: Pier 1 Services Company /Pier 1
Place.
N. “ Other
Defined Terms ”: In addition to the terms defined
above, an index of some of the other defined terms used in the text
of this Lease is set forth below, with a cross-reference to the
paragraph in this Lease in which the definition of such term can be
found:
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Affiliate
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11.E | |||
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Alterations
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9.C(1) | |||
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Audit Election
Period
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4.G | |||
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Cable
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9.A | |||
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Claims
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13 | |||
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Collateral
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19.E | |||
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Commencement
Date
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3.A | |||
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Common Areas
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2 | |||
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Comparable
Buildings
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7.A | |||
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Completion
Estimate
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16.B | |||
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Contamination
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30.C | |||
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Costs of
Reletting
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19.B | |||
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Excess Operating
Expenses
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4.B | |||
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Expiration
Date
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3.A | |||
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Force Majeure
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31.C | |||
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Hazardous
Material
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30.C | |||
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Landlord
Parties
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13 | |||
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Landlord’s
Rental Damages
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19.B | |||
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Leasehold
Improvements
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29 | |||
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Minor
Alteration
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9.C(1) | |||
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Monetary
Default
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18.A | |||
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Mortgage
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25 | |||
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Operating
Expenses
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4.D | |||
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Permitted
Transfer
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11.E | |||
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Permitted Use
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5.A | |||
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Prime Rate
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19.B | |||
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Property
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2 | |||
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Provider
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7.C | |||
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Rent
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4.A | |||
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Service
Failure
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7.B | |||
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Special
Installations
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29 | |||
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Taking
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17 | |||
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Tenant Parties
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13 | |||
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Tenant’s
Insurance
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14.A | |||
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Tenant’s
Property
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14.A | |||
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Tenant’s
Removable Property
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29 | |||
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Time Sensitive
Default
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18.B | |||
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Transfer
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11.A |
-2-
2.
Lease Grant . Landlord leases the Premises to Tenant
and Tenant leases the Premises from Landlord, together with the
right in common with others to use any portions of the Property
(defined below) that are designated by Landlord for the common use
of tenants and others, such as sidewalks, common corridors, loading
areas, Building stairs, elevators, cafeteria, workout room, vending
areas (excluding vending areas within the Premises), lobby areas
and, with respect to multi-tenant floors, restrooms and elevator
foyers (the “ Common Areas ”). Landlord
and Tenant agree that no portion of the mezzanine is included in
the Common Areas. Tenant is hereby granted a non-exclusive license
to use the Common Areas and the two (2) NetPop rooms located
on the terrace during the Term for their intended purposes, in
common with others, subject to the terms and conditions of this
Lease. “ Property ” means the Building
and the parcel(s) of land on which it is located as more fully
described on Exhibit A-2 , together with all
other buildings and improvements located thereon (specifically
excluding any improvements related to the actual exploration,
recovery or transport of minerals); and the Building garage(s) and
other improvements serving the Building, if any, and the parcel(s)
of land on which they are located; specifically excluding any and
all mineral rights associated with the Property.
3.
Term; Adjustment of Commencement Date; Early Access
.
A. Term .
This Lease shall govern the relationship between Landlord and
Tenant with respect to the Premises from the Commencement Date
through the last day of the Term specified in
Section 1.G (the “ Expiration Date
”), unless terminated early in accordance with this Lease.
The Term of this Lease (as specified in Section 1.G )
shall commence on the “ Commencement Date
”, which shall be the date referenced in
Section 1.H . Notwithstanding any other provision of
this Lease to the contrary, if the Expiration Date would otherwise
occur on a date other than the last day of a calendar month, then
the Term shall be automatically extended to include the last day of
such calendar month, which shall become the Expiration Date.
B. Acceptance of
Premises . The Premises are accepted by Tenant in “as
is” condition and configuration. Tenant hereby agrees that the
Premises are in good order and satisfactory condition and that
there are no representations or warranties of any kind, express or
implied, by Landlord regarding the Premises, the Building or the
Property.
C. Early
Reduction . Landlord and Tenant acknowledge and agree that
Tenant shall surrender to Landlord certain space comprising a
portion of the Premises pursuant to the terms of this
Section 3.C :
(1)
Floors 20 and 17 . On or before the later of July 8,
2008, or five (5) days after the Commencement Date (the
“ 20th and 17th Floor Release Date ”),
Tenant shall surrender the entire twentieth (20th) and seventeenth
(17th) floors of the Building (the “ 20th and 17th
Floor Space ”) to Landlord in the condition required
pursuant to Article 29 of this Lease. In the event
Tenant fails to timely surrender the 20th and 17th Floor Space,
effective as of the date immediately following the 20th and 17th
Floor Release Date and for so long as Tenant thereafter remains in
occupancy of the 20th and 17th Floor Space, Tenant shall pay
holdover rent for the 20th and 17th Floor Space in accordance with
Article 24 of this Lease. On the 20th and 17th Floor
Release Date, Tenant will execute and deliver to Landlord, for no
additional consideration, a Bill of Sale in the form attached
hereto as Exhibit D conveying to Landlord the
furniture located in the 20th and 17th Floor Space and listed on
the Furniture Inventory List [as such term is defined in that
certain Real Estate Purchase Agreement dated March 25, 2008,
by and between Landlord and Tenant (hereinafter, the “
Contract ”)].
(2)
Floors 15 and 16 . On or before November 30, 2009 (the
“ 15 th and 16
th Floor Release
Date ”), Tenant shall surrender both the entire
fifteenth (15 th ) and sixteenth
(16 th
) floors of the Building (the “ 15
th and 16
th Floor
Space ”) to Landlord in the condition required
pursuant to Article 29 of this Lease. In the event
Tenant fails to timely surrender the 15 th and 16
th
Floor Space, effective as of the date immediately following the 15
th and
16th Floor Release Date and for so long as Tenant thereafter
remains in occupancy of the 15 th and 16
th
Floor Space, Tenant shall pay holdover rent for the 15 th and 16
th
Floor Space in accordance with Article 24 of this
Lease. On the 15 th and 16
th
Floor Release Date, Tenant will execute and deliver to Landlord,
for no additional consideration, a Bill of Sale in the form
attached hereto as Exhibit D conveying to
Landlord the furniture located in the 15 th and 16
th
Floor Space and listed on the Furniture Inventory List (as such
term is defined in the Contract).
-3-
D.
Landlord’s Right to Recapture . Landlord shall
have the right to recapture all, but not a portion of, the entire
fourteenth (14 th ) floor of the
Building pursuant to the terms of this Section 3.D .
Landlord shall have the option to recapture and thereby terminate
Tenant’s lease of the entire fourteenth (14 th ) floor of the
Building (the “ 14 th
Floor Space ”) at any time on or after
June 30, 2013 (the “ Earliest Reduction
Date ”), provided Landlord gives written notice
thereof to Tenant not later than June 30, 2012. Such notice
must specify the date (which cannot be prior to the Earliest
Reduction Date) on which Landlord desires the reduction to become
effective (the “ Actual Reduction Date
”). On the Actual Reduction Date, Tenant shall surrender the
14 th
Floor Space to Landlord in the condition required pursuant to
Article 29 of this Lease. In the event Tenant fails to
timely surrender the 14 th Floor Space,
effective as of the date immediately following the Actual Reduction
Date and for so long as Tenant thereafter remains in occupancy of
the 14 th Floor Space,
Tenant shall pay holdover rent for the 14 th Floor Space in
accordance with Article 24 of this Lease. Once Tenant
has surrendered the 14 th Floor Space to
Landlord as required hereunder (unless Tenant has exercised its
right to terminate this Lease under Section 3.E below),
Landlord will credit against the next sums due and owing by Tenant
a relocation allowance in the amount of $129,135.00 (the “
Relocation Allowance ”). In the event Landlord
elects to recapture the 14 th Floor Space,
then on the Actual Reduction Date, Tenant will execute and deliver
to Landlord a Bill of Sale in the form attached hereto as
Exhibit D conveying to Landlord, for no
additional consideration, the furniture then located in the 14
th
Floor Space which shall be substantially the same in quantity and
quality (subject to reasonable wear and tear) to the furniture
listed on the Furniture Inventory List (as such term is defined in
the Contract).
E. Early
Termination . Tenant, in its sole and absolute discretion,
shall have the option to terminate this Lease on June 30, 2013
(the “ Termination Date ”), provided
Tenant gives written notice thereof to Landlord not later than
December 31, 2012 and provided Tenant is not in default beyond
any applicable cure period under the Lease at the time of the
giving of such notice nor on the Termination Date. Additionally,
Tenant’s right to terminate hereunder is conditioned upon the
payment in full by Tenant, on or before the Termination Date, of
(1) all Rent through and including the Termination Date, and
(2) a cash sum equal to $2,133,586.00 (which has been
calculated based on four (4) times the Base Rent payable for
the month immediately preceding the Termination Date assuming that
on the Termination Date the Rentable Square Footage of the Premises
is 246,183 and which shall be recalculated if the Rentable Square
Footage of the Premises is different on the Termination Date)
(collectively, the “ Termination Payment
”). After Landlord’s receipt of the full Termination
Payment, and so long as Tenant has (i) surrendered the
Premises in the condition required under this Lease, and
(ii) executed and delivered to Landlord a Bill of Sale in the
form attached hereto as Exhibit D conveying to
Landlord, for no additional consideration, the furniture then
located in the 14 th Floor Space and
which is substantially the same in quantity and quality (subject to
reasonable wear and tear) to the furniture listed on the Furniture
Inventory List (as such term is defined in the Contract), neither
party shall have any rights, liabilities or obligations under this
Lease for the period accruing after the Termination Date, except
those which, by the provisions of this Lease, expressly survive the
termination of this Lease. Further, if Tenant terminates this Lease
pursuant to this Section 3.E , Landlord shall have no
obligation to pay the Relocation Allowance to Tenant even if
Landlord had previously elected to recapture the 14 th Floor Space
pursuant to Section 3.D above.
4.
Rent .
A.
Payments . As consideration for this Lease,
commencing on the Commencement Date, Tenant shall pay Landlord,
without any demand, setoff or deduction (except as otherwise set
forth herein), the total amount of Base Rent, Tenant’s Pro
Rata Share of Excess Operating Expenses (defined in
Section 4.B ) and any and all other sums payable by
Tenant under this Lease (all of which are sometimes collectively
referred to as “ Rent ”). The monthly
Base Rent and Tenant’s Pro Rata Share of Excess Operating
Expenses shall be due and payable in advance on the first day of
each calendar month without notice or demand, provided that the
installment of Base Rent for the first full calendar month of the
Term shall be payable upon the execution of this Lease by Tenant.
All other items of Rent shall be due and payable by Tenant on or
before thirty (30) days after billing by Landlord. All
payments of Rent shall be by good and sufficient check or by other
means (such as automatic debit or electronic transfer) acceptable
to Landlord. If the Term commences on a day other than the first
day of a calendar month, the monthly Base Rent for the partial
month shall be prorated on a daily basis and shall be payable (in
addition to the installment of Base Rent for the first full
calendar month of the Term) upon the execution of this Lease by
Tenant. Landlord’s acceptance of less than the correct amount
of Rent shall be considered a payment on account of the earliest
Rent due. No endorsement or statement on a check or letter
accompanying a check or payment shall be
-4-
considered an accord and satisfaction, and either party may accept
such check or payment without such acceptance being considered a
waiver of any rights such party may have under this Lease or
applicable Law. Furthermore, Landlord shall have the right to
return or refuse acceptance of any payments made to
Landlord’s lockbox address after an event of default has
occurred which has not been cured during any applicable cure
period. Tenant’s covenant to pay Rent is independent of every
other covenant in this Lease, except as otherwise herein
provided.
B. Excess
Operating Expenses . Tenant shall pay Tenant’s Pro
Rata Share of the amount, if any, by which Operating Expenses
(defined in Section 4.D ) for each Lease Year
(hereinafter defined) during the Term exceed Operating Expenses for
the Base Year (the “ Excess Operating Expenses
”). Notwithstanding the foregoing, Tenant’s Pro Rata
Share of Controllable Expenses (defined below) shall not increase
by more than three percent ( 3%) over Tenant’s Pro
Rata Share of Controllable Expenses in the immediately preceding
Lease Year, including the Base Year, on a cumulative, compounded
basis. However, any increases in Controllable Expenses not
recovered by Landlord due to the foregoing limitation shall be
carried forward into succeeding Lease Years during the Term
(subject to the foregoing limitation) until fully recouped by
Landlord. For example, if Controllable Expenses were $100.00 in the
Base Year, then the total Controllable Expenses that could be
included in Operating Expenses in the second Lease Year (Lease
Months 13 through 24) would be $103.00, for the third Lease Year
(Lease Months 25 through 36) the amount would be $106.09, for the
fourth Lease Year (Lease Months 37 through 48) the amount would be
$109.27, and so on. In the preceding example, if Controllable
Expenses in the third and fourth Lease Years were $107.50, then
Landlord could include only $106.09 in Operating Expenses in the
third Lease Year, but $108.91 (the Controllable Expenses plus the
carry-forward from the third Lease Year) in the fourth Lease Year.
The term “ Controllable Expenses ” means
all Operating Expenses excluding the cost of utilities (and related
expenses which are reasonably intended to reduce such costs),
insurance premiums, and other expenses not within Landlord’s
control directly arising from increases to minimum wage laws or
other similar governmental requirements applicable to or imposed
against owners of Comparable Buildings. Landlord will use
reasonable efforts to minimize the impact of increases resulting
from such governmental requirements. If Operating Expenses in any
Lease Year decrease below the amount of Operating Expenses for the
Base Year, Tenant’s Pro Rata Share of Operating Expenses for
that Lease Year shall be $0. In no event shall Base Rent be reduced
if Operating Expenses for any Lease Year are less than Operating
Expenses for the Base Year. Within ninety (90) days of the
beginning of each Lease Year after the Base Year, Landlord shall
provide Tenant with a good faith estimate (itemized by category) of
the Excess Operating Expenses for such Lease Year during the Term.
On or before the first day of each month, Tenant shall, subject to
the cap set forth above, pay to Landlord a monthly installment
equal to one-twelfth of Tenant’s Pro Rata Share of
Landlord’s estimate of the Excess Operating Expenses. If
Landlord determines that its good faith estimate of the Excess
Operating Expenses was incorrect, Landlord may provide Tenant with
a revised good faith estimate (itemized by category). After its
receipt of the revised estimate, Tenant’s monthly payments
shall be based upon the revised estimate, provided such new
estimate is received within one hundred eighty (180) days of
the beginning of such Lease Year. If Landlord does not provide
Tenant with an estimate of the Excess Operating Expenses by
September 1 of each Lease Year, Tenant shall continue to pay
monthly installments based on the most recent estimate(s) until
Landlord provides Tenant with the new estimate, provided such new
estimate is received within one hundred eighty (180) days of
the beginning of such Lease Year. Upon delivery of the new
estimate, an adjustment shall be made for any month for which
Tenant paid monthly installments based on the same Lease
Year’s prior incorrect estimate(s). Tenant shall pay Landlord
the amount of any underpayment within 30 days after receipt of
the new estimate. Any overpayment shall be credited against the
next sums due and owing by Tenant or, if no further Rent is due,
refunded directly to Tenant within 30 days of determination.
The obligation of Tenant to pay for Excess Operating Expenses and
the obligations of Landlord to refund overpayments made by Tenant
as provided herein shall survive the expiration or earlier
termination of this Lease. The term “ Lease
Year ” shall mean each successive period of twelve
(12) Lease Months.
C. Reconciliation
of Operating Expenses . Within ninety (90) days after
the end of the Base Year, Landlord shall furnish to Tenant a
written statement of the actual Operating Expenses for the Base
Year. Within ninety (90) days after the end of each subsequent
Lease Year, Landlord shall furnish Tenant with a statement of the
actual Operating Expenses and Excess Operating Expenses for such
Lease Year. Such statements shall be itemized by category and shall
set forth the amount paid by Tenant toward Excess Operating
Expenses and the amounts remaining due from or overpaid by Tenant.
If the most recent estimated Excess Operating Expenses paid by
Tenant for such Lease Year are more than the actual Excess
Operating Expenses for such Lease Year, Landlord shall apply
-5-
any
overpayment by Tenant against Rent due or next becoming due;
provided, if the Term expires before the determination of the
overpayment, Landlord shall, within thirty (30) days of
determination, refund any overpayment to Tenant after first
deducting the amount of Rent due. If the most recent estimated
Excess Operating Expenses paid by Tenant for the prior Lease Year
are less than the actual Excess Operating Expenses for such Lease
Year, Tenant shall pay Landlord, within thirty (30) days after
its receipt of the statement of Operating Expenses, any
underpayment for the prior Lease Year. Landlord agrees that, in the
event Landlord increases the level of security services provided in
the Building after the Base Year (other than in connection with
requirements for compliance with Payment Card Industry Data
Security Standards, the expense of which shall be borne by Tenant),
then an amount equal to ninety-five percent (95%) of the expenses
relating to such increased level of security shall be added to the
calculation of Base Year Operating Expenses accordingly.
D. Operating
Expenses Defined . Except as excluded in
Section 4.E below, “ Operating
Expenses ” means all costs and expenses incurred or
accrued in each Lease Year in connection with the ownership,
operation, maintenance, management, repair and protection of the
Property which are directly attributable or reasonably allocable to
the Building, including Landlord’s personal property used in
connection with the Common Areas and including all costs and
expenditures relating to the following:
(1) Operation,
maintenance, repair and replacements of any part of the Property,
including the mechanical, electrical, plumbing, HVAC, vertical
transportation, fire prevention and warning and access control
systems; materials and supplies (such as light bulbs and ballasts);
equipment and tools; floor, wall and window coverings; personal
property used in the Common Areas; required or beneficial
easements; and related service agreements and rental expenses;
except that if replacements of any part of the Property are
properly classified as capital in nature under generally accepted
accounting principles, the cost of such replacements shall not be
included in Operating Expenses except as provided in
Section 4.D(8 ) below).
(2) Administrative
and management costs and fees, including accounting, information
and professional services (except for negotiations and disputes
with specific tenants not affecting other parties), provided that
the management fee shall not exceed 3.5% of gross revenues for the
Property; management office(s); and wages, salaries, benefits,
reimbursable expenses and taxes (or allocations thereof) for full
and part time personnel involved in operation, maintenance and
management.
(3) Janitorial
service; window cleaning; waste disposal; gas, water and sewer and
other utility charges (including add-ons); and landscaping,
including all applicable tools and supplies.
(4) Property,
liability and other insurance coverages carried by Landlord,
including deductibles and risk retention programs and a reasonable
proportionate allocation of the cost of blanket insurance policies
maintained by Landlord and/or its Affiliates (defined below);
however, to the extent the deductibles, coverages not required by
this Lease, or self-insured retention exceed the deductibles,
coverages or self-insured retention maintained by Comparable
Landlords (hereinafter defined), such excess amounts will not be
included in Operating Expenses. A “ Comparable
Landlord ” shall mean a reasonably prudent commercial
office building landlord owning a Comparable Building.
(5) [Intentionally
Deleted]
(6) Compliance
with Laws, including license, permit and inspection fees (but not
in duplication of capital expenditures amortized as provided in
Section 4.D(8) ); and all expenses and fees, including
reasonable attorneys’ fees and court or other venue of
dispute resolution costs, incurred in negotiating or contesting Tax
Expenses or the validity and/or applicability of any governmental
enactments which may affect Operating Expenses; provided Landlord
shall credit against Operating Expenses any refunds received from
such negotiations or contests to the extent originally included in
Operating Expenses (less Landlord’s reasonable costs).
(7)
Building safety services, to the extent provided or contracted for
by Landlord, including, without limitation, the issuance of
Building access cards.
-6-
(8) Amortization
of capital expenditures incurred: (a) to conform with Laws;
(b) to provide or maintain building standards (other than
building standard tenant improvements); or (c) with the
intention of promoting safety (provided such measures are being
implemented in Comparable Buildings) or reducing or controlling
increases in Operating Expenses, such as lighting retrofit and
installation of energy management systems. Such expenditures shall
be amortized on a straight line basis over the useful life of the
improvement or a fifteen (15) year period, whichever is
shorter.
Goods
and services purchased from Landlord’s subsidiaries and
Affiliates to provide the goods or perform the services listed
above shall be included as Operating Expenses to the extent the
cost of same is generally consistent with rates charged by
unaffiliated third parties for similar goods and services.
E. Exclusions
from Operating Expenses . Operating Expenses exclude the
following expenditures:
(1) Leasing
commissions, attorneys’ fees, advertising, and other expenses
related to leasing tenant space and constructing improvements for
the sole benefit of an individual tenant or of Landlord or its
subsidiaries or Affiliates.
(2) Goods
and services furnished to an individual tenant or occupant of the
Building which are above building standard.
(3) Repairs,
replacements and general maintenance paid by insurance proceeds,
third parties or condemnation proceeds.
(4) Except
as provided in Section 4.D(8) , depreciation,
amortization, interest payments on any encumbrances on the Property
and the cost of capital improvements or additions.
(5) Costs
of installing any specialty service, such as an observatory,
broadcasting facility, luncheon club, or athletic or recreational
club.
(6) Expenses
for repairs or maintenance related to the Property which have been
reimbursed to Landlord pursuant to warranties, or service
contracts, or by third parties.
(7) Costs
(other than reasonable maintenance costs) of any art work (such as
sculptures or paintings) used to decorate the Building.
(8) Principal
payments on indebtedness secured by liens against the Property, or
costs of financing, refinancing or mortgaging the Property.
(9) Rental,
gross receipts, sales and use, or other taxes, if any, imposed upon
or measured by rents, receipts or income attributable to ownership,
use, occupancy, rental, leasing, operation or possession of the
Property.
(10) Tax
Expenses (defined below) paid separately pursuant to
Section 4.I .
(11) Electrical
service costs paid separately pursuant to Section 4.H
.
(12) Costs,
fines, interest, penalties, legal fees or costs of litigation
incurred due to the late payment of Tax Expenses, utility bills and
other costs incurred due to Landlord’s failure to make
payments when due, except such as may be incurred as a result of
Tenant’s failure to timely pay its portion of such amounts or
as a result of Landlord’s contesting such amounts in good
faith.
F. Intentionally
Deleted .
G. Audit
Rights . Within sixty (60) days after Landlord
furnishes its statement of actual Operating Expenses for any Lease
Year (including the Base Year) (the “ Audit Election
Period ”), Tenant may, at its expense, elect to audit
Landlord’s Operating Expenses for such Lease Year only,
subject to the following conditions: (1) there is no uncured
event of default under this Lease after the expiration of any
applicable cure period; (2) if a third party conducts the
audit, such audit shall be prepared by an independent certified
public accounting firm of recognized regional standing; (3) in
no event shall any audit be performed by a firm retained on a
“contingency fee” basis; (4) the
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audit
shall commence within thirty (30) days after Landlord makes
Landlord’s books and records available to Tenant’s
auditor and shall conclude within sixty (60) days after
commencement; (5) the audit shall be conducted during
Landlord’s normal business hours at the location where
Landlord maintains its books and records; (6) Tenant and its
accounting firm shall treat any audit in a confidential manner
(except as required by law or to the extent necessary to enforce
Tenant’s rights hereunder) and shall each execute
Landlord’s reasonable confidentiality agreement for
Landlord’s benefit prior to commencing the audit; and
(7) the accounting firm’s audit report shall, at no
charge to Landlord, be submitted in draft form for Landlord’s
review and comment before the final approved audit report is
delivered to Landlord, and Landlord shall have the right to point
out errors or make suggestions with respect to such audit report,
and any appropriate comments or clarifications by Landlord which
are accepted by Tenant’s auditor shall be incorporated into
the final audit report, it being the intention of the parties that
Landlord’s right to review is intended to prevent errors and
not to unduly influence Tenant’s auditor in the preparation
of the final audit report. This paragraph shall not be construed to
limit, suspend, or abate Tenant’s obligation to pay Rent when
due, including estimated Excess Operating Expenses in accordance
with Section 4.B above. Landlord shall credit any
overpayment determined by the final approved audit report against
the next Rent due and owing by Tenant or, if no further Rent is
due, refund such overpayment directly to Tenant within thirty
(30) days of determination. Likewise, Tenant shall pay
Landlord any underpayment determined by the final approved audit
report within thirty (30) days of determination. If the audit
reveals that Landlord’s calculation of Operating Expenses for
the Lease Year under inspection was overstated by more than five
percent (5%), then Landlord shall pay Tenant’s actual
reasonable out-of-pocket audit and inspection fees (specifically
including any reasonable travel and lodging expenses) applicable to
the review of said Lease Year statement within thirty
(30) days after receipt of Tenant’s invoice therefor.
The foregoing obligations shall survive the expiration or
termination of this Lease. If Tenant does not give written notice
of its election to audit Landlord’s Operating Expenses during
the Audit Election Period, Landlord’s Operating Expenses for
the applicable Lease Year shall be deemed approved for all
purposes, and Tenant shall have no further right to review or
contest the same. The right to audit granted hereunder is personal
to the initial Tenant named in this Lease and to any assignee under
a Permitted Transfer (defined below) and shall not be available to
any subtenant under a sublease of the Premises.
H. Electrical
Costs . In addition to the Excess Operating Expenses, and
as a separate obligation, Tenant shall pay Landlord Tenant’s
Pro Rata Share of the following costs incurred by Landlord
(provided that such costs shall be the actual costs incurred by
Landlord with no mark-up for profit by Landlord):
(1) electrical services used in the operation, maintenance and
use of the Property (but not including costs which are payable by
tenants or occupants in the Building as Hourly HVAC Charges
(defined below) or applicable to separately metered portions of
their premises); (2) sales, use, excise and other taxes
assessed by governmental authorities on electrical services
supplied to the Property; and (3) other directly related
expenses which are reasonably intended to reduce such costs and
which are not otherwise included in Operating Expenses. Tenant
shall, with each monthly payment of Base Rent, pay Landlord’s
estimate of Tenant’s Pro Rata Share of such electrical
service costs in the same manner as provided for Operating Expenses
in Sections 4.B and C . Tenant shall have the
same rights to be provided reasonable substantiating evidence of
and to audit Landlord’s determination of Tenant’s Pro
Rata Share of such electrical service costs as are given Tenant
with respect to Operating Expenses. Tenant shall be entitled to
Tenant’s Pro Rata Share of any refunds and rebates Landlord
receives from the electricity provider which are applicable to the
Property, and Tenant shall not bear any expense for any costs or
penalties incurred by Landlord for late payments of same to the
provider so long as such late payment is not the result of
Tenant’s failure to timely pay its portion of such
amounts.
I. Tax
Expenses . In addition to the Excess Operating Expenses,
and as a separate obligation, Tenant shall pay Tenant’s Pro
Rata Share of the amount, if any, by which Tax Expenses
(hereinafter defined) for each calendar year during the Term exceed
Tax Expenses for the Tax Base Year (the “ Excess Tax
Expenses ”). “ Tax Expenses
” are defined as the following costs incurred by Landlord:
real estate taxes, assessments, excises, fees, levies, charges and
other taxes of every kind and nature whatsoever, general and
special, extraordinary and ordinary, foreseen and unforeseen,
including interest on installment payments for other than ad
valorem real property taxes, which may be levied or assessed
against or arise in connection with ownership, use, occupancy,
rental, leasing, operation or possession of the Property. Tax
Expenses shall include, without limitation: (i) any tax on the
rent or other revenue from the Property, or any portion thereof, or
as against the business of owning or leasing the Property, or any
portion thereof, including any business, franchise, gross margins,
or similar tax payable by Landlord which is attributable to rent or
other revenue derived
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from the
Property, (ii) any assessment, tax, fee, levy, or charge
allocable to or measured by the area of the Premises or the Rent
payable hereunder, (iii) personal property taxes for property
that is owned by Landlord and used in connection with the
operation, maintenance and repair of the Property, and
(iv) any assessment, tax, fee, levy or charge substituted, in
whole or in part, for a tax previously in existence, or assessed in
lieu of a tax increase. Tax Expenses shall not include
(a) Landlord’s estate, excise or income taxes (except
for the rent, gross margins and similar taxes attributable to rent
or other revenue derived from the Property described above), or
(b) penalties and interest on Tax Expenses except such as may
be incurred as a result of Tenant’s failure to timely pay its
portion of such Tax Expenses or as a result of Landlord’s
contesting such amounts in good faith. Tenant shall pay
Tenant’s Pro Rata Share of such Excess Tax Expenses on or
before the later of December 1 of each year or thirty
(30) days after notice from Landlord specifying the amount
due. Landlord shall, within five (5) days after receipt of
written request from Tenant, deliver to Tenant a copy of the
relevant tax statements upon which the calculation of
Tenant’s Pro Rata Share of Excess Tax Expenses is based. The
term “ Tax Base Year ” shall mean actual
Tax Expenses for calendar year 2008 determined as if Landlord had
owned the Property for the entire calendar year. For purposes of
this Lease, Tax Expenses shall not be reduced by any program grants
paid under the EDA (hereinafter defined). Tenant agrees that, as
between Tenant and Landlord, Landlord has the sole right to contest
taxes levied against the Building and the Property (other than
taxes levied directly against Tenant’s personal property
within the Premises). Landlord shall use commercially reasonable
efforts to control increases in property taxes by protesting tax
appraisals of the Property; provided, however, that if Landlord
determines in its commercially reasonable opinion, that such
protest would have adverse consequences, Landlord may elect not to
pursue to protest. Notwithstanding the foregoing, Landlord agrees
to protest the 2009 tax appraisal if it exceeds the 2008 appraisal
by more than ten percent (10%). Landlord shall, within five
(5) days after receipt of written request from Tenant, supply
Tenant with a copy of the tax assessment and/or tax appraisal on
the Property and other relevant non-proprietary written information
obtained in connection with an assessment and/or appraisal.
Landlord will inform Tenant of Landlord’s plan and process
with respect to contesting or protesting taxes, levies or the
appraised value of the Property. In addition, upon written request
by Tenant, Landlord will invite a representative of Tenant to
attend a strategic planning meeting at Tenant’s sole cost and
expense with Landlord’s property tax personnel regarding the
taxes, levies and appraised value of the Property. Such meeting
will be held at least five (5) days prior to the deadline for
contesting or protesting taxes, in a location to be selected by
Landlord.
J. Program
Grants . Notwithstanding anything to the contrary
contained in Section 4.I above, the parties
(i) acknowledge that Tenant is a party to an Economic
Development Program Agreement with the City of Fort Worth, Texas
(“ City ”) dated October 14, 2002
(as amended on April 26, 2005, collectively, the “
EDA ”), and (ii) agree that the following
terms shall govern the benefits received by Tenant
thereunder:
(1) Throughout
the Term and any extensions thereof, Tenant shall be the sole
administrator of the rights and obligations under the EDA. On the
Commencement Date, Landlord and Tenant shall execute an agreement
whereby Tenant assigns, and Landlord assumes, an undivided interest
in the obligations under the EDA, including the obligations to
comply with the commitments set forth in Sections 5.2 and 5.3
of the EDA (the “ Partial Assignment ”).
Immediately upon expiration or earlier termination of this Lease,
Tenant shall assign to Landlord all of Tenant’s rights and
obligations under the EDA to the extent such rights are assignable
and without any representation, covenant or warranty with respect
to the enforceability of such assignment or the rights and
obligations under the EDA.
(2) Landlord
agrees to pay prior to delinquency all real property taxes
described in the EDA.
(3) During
the Term and any extensions thereof, Tenant shall make application
to the City each year for all of the program grants allowed under
the EDA. Landlord agrees to deliver to Tenant prior to
January 15 of each calendar year all information Tenant
reasonably requests in order to prepare such application for the
preceding calendar year. Landlord, at no cost to Tenant, shall have
the right to approve the application prior to submission to the
City, but such approval shall not be unreasonably withheld,
conditioned or delayed. After the expiration or earlier termination
of this Lease, Landlord shall make application to the City for all
of the program grants allowed under the EDA. Tenant agrees to
deliver to Landlord prior to January 15 of the following
calendar year all information Landlord reasonably requests in order
to prepare such application for the calendar year immediately
preceding the expiration or termination of this Lease. Tenant, at
no cost to Landlord,
-9-
shall
have the right to approve the application prior to submission to
the City, but such approval shall not be unreasonably withheld,
conditioned or delayed. Each application shall contain specific
allocations of the portions of the program grant payments
attributable to (i) taxes paid on Tenant’s personal property,
(ii) taxes paid on Landlord’s personal property, and
(iii) real property taxes paid on the Property.
(4) Landlord
shall retain any and all of the program grants it receives from the
City attributable to taxes paid on Landlord’s personal
property. Landlord agrees to pay the program grant payments which
are attributable to taxes paid on Tenant’s personal property
to Tenant within ten (10) Business Days after receipt from the
City. If Landlord fails to reimburse Tenant for such amounts within
such ten (10) Business Day period, Tenant shall thereafter be
entitled to deduct such amounts from the next sum(s) due by Tenant
under this Lease.
(5) Pursuant
to the terms of the Partial Assignment, Tenant agrees to instruct
the City to deliver the program grants payable under the EDA to an
account designated by Landlord. Landlord agrees to deliver to
Tenant within ten (10) Business Days after receipt from the
City (if ever) a sum equal to Tenant’s Pro Rata Share (as
same may fluctuate from time to time) multiplied by the total
amount of the program grants Landlord receives from the City
attributable to real property taxes paid by Landlord on the
Property during the preceding calendar year. If Landlord fails to
reimburse Tenant for such amounts within such ten
(10) Business Day period, Tenant shall thereafter be entitled
to deduct such amounts from the next sum(s) due by Tenant under
this Lease. The program grant payments applicable to real property
taxes for calendar year 2008 shall be prorated on a per diem basis,
with Tenant being entitled to the portion of such payments relating
to the period from January 1, 2008 through the day before the
Commencement Date and Landlord being entitled to the portion of
such payments relating to the period from the Commencement Date
through December 31, 2008, less Tenant’s Pro Rata Share
as set forth above.
5.
Tenant’s Use of Premises .
A. Permitted
Uses . The Premises shall be used only for general office
use (the “ Permitted Use ”) and for no
other use whatsoever. Tenant shall not use or permit the use of the
Premises for any purpose which is illegal, creates obnoxious odors
(including tobacco smoke), noises or vibrations, is dangerous to
persons or property, or which, in Landlord’s reasonable
opinion, unreasonably disturbs any other tenants of the Building or
interferes with the operation or maintenance of the Property or any
work by Landlord or its contractors in the Premises. Except as
provided below, the following uses are expressly prohibited in the
Premises: schools, government offices or agencies; personnel
agencies; collection agencies; credit unions; data processing,
telemarketing or reservation centers; medical treatment and health
care; radio, television or other telecommunications broadcasting;
restaurants and other retail; customer service offices of a public
utility company; or any other purpose which would, in
Landlord’s reasonable opinion, impair the reputation or
quality of the Building, overburden any of the Building systems,
Common Areas or parking facilities (including any use which would
create a population density in the Premises which is in excess of
the density which is standard for the Building), impair
Landlord’s efforts to lease space or otherwise interfere with
the operation of the Property. Notwithstanding the foregoing, the
following ancillary uses are permitted in the Premises only so long
as they do not, in the aggregate, occupy more than 20% of the
Rentable Square Footage of the Premises: (1) the following
services provided by Tenant exclusively to its employees: schools,
training and other educational services; credit unions; flu shots;
sample sales; and similar employee services; (2) the following
services directly and exclusively supporting Tenant’s
business: telemarketing; reservations; storage; data processing;
debt collection; and similar support services. The rights set forth
in the preceding sentence allowing certain ancillary uses are
personal to the specific party originally identified as the
“Tenant” under this Lease and under any Permitted
Transfer and may not be transferred, shared or assigned in whole or
in part to any assignee, subtenant or other tenant in the Building.
Except with respect to any space located on the first floor, the
terrace floor or the 20 th floor of the
Building, Landlord shall require that the Building be used only for
the Permitted Use and the ancillary uses permitted above. Landlord
shall not use or permit the use of the Building for any purpose
which is illegal, creates noises or vibrations, is dangerous to
persons or property, or which, in Landlord’s reasonable
opinion, unreasonably disturbs any other tenants of the Building or
interferes with the operation or maintenance of the Property. No
tobacco smoke shall be permitted in any portion of the terrace or
first floor lobby of the Building. Landlord also agrees, provided
Tenant is not in default beyond any applicable cure period, not to
lease any portion of the Building to a retailer whose primary
business is the sale of home furnishings.
-10-
B. Compliance
with Laws . Tenant shall comply with all Laws regarding the
use, condition, configuration and occupancy of the Premises and the
use of the Common Areas. Tenant, within ten (10) days after
receipt, shall provide Landlord with copies of any notices Tenant
receives regarding a violation or alleged or potential violation of
any Laws affecting the Premises. Tenant shall comply with the rules
and regulations of the Building attached as
Exhibit B and such other reasonable rules and
regulations (or modifications thereto) adopted by Landlord from
time to time; provided that in the event there is a conflict
between the rules and regulations and this Lease, the terms of this
Lease shall govern. Landlord shall enforce the rules and
regulations for the Building in a reasonably nondiscriminatory
manner. Tenant shall also cause its agents, contractors,
subcontractors, employees, customers, and subtenants to comply with
all such rules and regulations.
C. Tenant’s
Security Responsibilities . Tenant shall (1) lock the
doors to the Premises and take other reasonable steps to secure the
Premises and the personal property of all Tenant Parties (defined
in Article 13 ) and any of Tenant’s transferees,
contractors or licensees in the Common Areas and parking facilities
of the Building and Property, from unlawful intrusion, theft, fire
and other hazards; (2) keep and maintain in good working order
all security and safety devices installed in the Premises by or for
the exclusive benefit of Tenant (such as locks, smoke detectors and
burglar alarms); and (3) cooperate with Landlord and other
tenants in the Building on Building safety matters. Tenant
acknowledges that any security or safety measures employed by
Landlord are for the protection of Landlord’s own interests;
that Landlord is not a guarantor of the security or safety of the
Tenant Parties or their property; and that such security and safety
matters are the responsibility of Tenant and the local law
enforcement authorities. Landlord acknowledges that the data center
located on the 8 th floor of the
Building and the telecom closets on each floor of the Premises are
“ Secured Areas ” . Landlord shall
not have access to such Secured Areas except (i) in the event
of an emergency, in which case, Landlord may use whatever means
necessary to access such Secured Areas, at no expense to Landlord,
and (ii) in the event of a Landlord or Mortgagee inspection,
in which case Landlord shall provide 24 hours prior written notice
to Tenant of the date and time of such inspection. Landlord agrees
that (a) such inspections shall not take place more than four
(4) times in any calendar year and (b) an agent or
employee of Tenant will accompany Landlord and or its Mortgagee
during any such inspections of the Secured Areas. Landlord shall
not be required to provide janitorial or other services to the
Secured Areas which services require Landlord’s employees or
agents to have access to such Secured Areas.
6.
Security Deposit . Intentionally Deleted.
7.
Services Furnished by Landlord .
A. Standard
Services . Subject to the provisions of this Lease,
Landlord agrees to furnish (or cause a third party provider to
furnish) the following services to Tenant during the Term:
(1) Water
(at the normal temperature of the water supply to the Building) for
use in the lavatories, toilets and kitchens on each floor on which
the Premises are located.
(2) Heat
and air conditioning in season during Normal Business Hours, at
such temperatures and in such amounts as required by governmental
authority or as supplied in Comparable Buildings. Tenant, upon such
notice as is reasonably required by Landlord (but not more than
twenty-four (24) hours notice), and subject to the capacity of the
Building systems, may request HVAC service during hours other than
Normal Business Hours. Tenant shall pay Landlord for such
additional service at a rate equal to $50.00 per operating hour per
floor (the “ Hourly HVAC Charge ”).
Beginning on the first anniversary of the Commencement Date,
Landlord shall have the right, upon thirty (30) days prior
written notice to Tenant, to adjust the Hourly HVAC Charge from
time to time, but not more than once per calendar year, based
proportionately upon increases in HVAC costs, which costs include
utilities, taxes, surcharges, labor, equipment, maintenance and
repair to the extent (and only to the extent) Landlord’s
actual, out-of-pocket expenses in providing such services increase
following the Commencement Date, and any notice of increase in cost
shall contain a detailed summary of the basis for the cost increase
and a comparison to 2008 costs. No adjustments to the Hourly HVAC
Charge shall cause same to exceed the rates charged for such
services in Comparable Buildings. Notwithstanding the foregoing,
Tenant shall, at its sole cost and expense, install and maintain a
submeter for the portion of the Premises located on the 7
th and
8 th
floors of the Building and pay to Landlord the actual cost of the
HVAC service on such floors pursuant to Section 8.C .
Tenant may require HVAC Service during hours other than Normal
Business Hours for such submetered floors and shall not be charged
an Hourly HVAC Charge for such additional service provided to such
submetered floors.
-11-
(3) Maintenance
and repair of the Property as described in Section 9.B
.
(4) Janitorial
service five days per week (excluding Holidays), similar to the
service provided in Comparable Buildings (hereinafter defined). If
Tenant’s use of the Premises, floor covering or other
improvements requires special services in excess of the standard
services for the Building, Tenant shall pay the additional cost
attributable to the special services. Notwithstanding the
foregoing, Tenant will contract separately for janitorial services
in the Secured Areas using contractors approved by Landlord, which
approval shall not be unreasonably withheld. Sealco, the contractor
employed by Tenant on the Commencement Date to provide janitorial
services to the Secured Areas, has been approved by Landlord.
(5) Passenger
elevator service to the floors on which the Premises are located
for ingress to and egress from the Premises and freight elevator
service in common with other Building occupants, subject to
periodic elevator repair and maintenance, events of Force Majeure,
casualty, governmental regulation and Landlord’s reasonable
policies and procedures for use of the elevator(s) in the
Building.
(6) Exterior
window washing at such intervals as determined by Landlord, but not
less frequently than twice each calendar year.
(7) Maintain
and manage the current level of security for the Building and the
Parking Facilities (as such term is defined in
Exhibit C attached hereto) as an Operating
Expense including without limitation, a multi-function card-key
building access system to the Premises and Parking Facilities and
throughout the Building (including the stairwells). Landlord shall
provide such security requirements in the Building as necessary for
Tenant to comply with Payment Card Industry Data Security
Standards; provided however, to the extent the costs related to
compliance with such standards exceeds the security costs paid for
such compliance in the Base Year, all of such excess costs shall be
paid by Tenant to Landlord within thirty (30) days after
notice from Landlord. Landlord agrees to maintain restricted access
to the NetPop rooms and all telecom rooms that are not located in
the Premises. Landlord also agrees to provide
“add/change/delete” services with respect to
Tenant’s employee’s card-keys within one
(1) Business Day after receipt of the necessary instructions
from Tenant.
(8) Electricity
to the Premises for general office use, in accordance with and
subject to the terms and conditions in Article 8
.
(9) Access
to the Premises and the Parking Facilities 24 hours a day,
365 days a year (subject to the provisions of this Lease with
respect to casualty and condemnation); provided, however, during
periods after Normal Business Hours, Landlord may establish
reasonable rules and regulations in connection with such
access.
(10) Extermination
service at such intervals as reasonably determined by
Landlord.
(11) A
cafeteria or other similar food service provider offering food for
purchase on the terrace level of the Building, substantially
similar or better in Landlord’s reasonable judgment to the
food services currently being provided in the Building by Sodexho;
provided, however, Landlord shall not be required to continue such
cafeteria or food service unless there are at least 640 occupants
in the Building.
(12) Maintain
the current loading dock and related service areas.
(13) Although
Landlord will not provide wireless network services for the
Building, Landlord agrees not to remove the existing WiFi
infrastructure in the Premises or modify such infrastructure in any
way which would adversely impact Tenant’s ability to use such
wireless services.
(14) Landlord
acknowledges that the following specialized equipment and systems
are critical to Tenant’s data center operations and the
operation of the NetPop rooms located on the terrace level of the
Building (collectively, “ Tenant’s Critical
Operations ”): water-cooled electric water chillers,
roof mounted cooling tower, the emergency generator, chilled water
pumps, condenser water pumps, automatic transfer switch, manual
transfer switch and the Building automation system and the related
electrical and water supply systems (collectively, “
Critical Systems and Equipment ”). Tenant
represents and warrants to Landlord that the Critical Systems and
Equipment were initially installed in the Building by Tenant and
are being transferred to
-12-
Landlord
on the Commencement Date in good working order and condition. From
and after the date of installation, Tenant has performed all
scheduled maintenance and testing of the Critical Systems and
Equipment at the manufacturers’ recommended levels and
intervals and has provided Landlord with copies of such maintenance
and testing records and logs. Landlord shall not make any
alterations, modifications or improvements to the Critical Systems
and Equipment if such alterations, modifications or improvements
would adversely affect Tenant’s Critical Operations. Landlord
shall perform all scheduled maintenance and testing of the Critical
Systems and Equipment at the manufacturers’ recommended
levels and intervals and shall provide Tenant with copies of such
maintenance and testing records and logs. Notwithstanding
Landlord’s obligation to perform such maintenance, testing
and repairs to Critical Systems and Equipment and notwithstanding
anything to the contrary in Section 7.B , Landlord
shall not intentionally interrupt or reduce any electrical or water
services at the Building or perform any maintenance, testing or
repairs to the Critical Systems and Equipment without first
obtaining Tenant’s approval as to the time, duration and
scope of any such activity, such approval not to be unreasonably
withheld.
The services described in subsections
(1) through (13) above shall be subject to reasonable
changes by Landlord so long as such services are comparable to
those provided in Comparable Buildings during the Term (and any
renewals or extensions thereof). “Comparable
Buildings” shall mean other comparable first-class
office buildings in the downtown Fort Worth, Texas area, taking
into account age, size, location and other relevant operating
factors.
B. Service
Interruptions . For purposes of this Lease, a “
Service Failure ” shall mean any interruption,
suspension or termination of services being provided to Tenant by
Landlord or by third-party providers, whether engaged by Tenant or
pursuant to arrangements by such providers with Landlord, which are
due to (1) the application of Laws; (2) the failure,
interruption or malfunctioning of any electrical or mechanical
equipment, utility or other service to the Building or Property;
(3) the performance of repairs, maintenance, improvements or
alterations; or (4) the occurrence of any other event or cause
whether or not within the reasonable control of Landlord. Landlord
shall provide Tenant no less than three (3) Business
Days’ prior written notice of any upcoming Service Failure of
which Landlord has control or actual advance knowledge or notice,
except in the event of a real or apparent emergency; and Landlord
shall use commercially reasonably efforts to minimize any
disruption to Tenant’s use and occupancy of the Premises due
thereto. Except as otherwise provided in this Lease, no Service
Failure shall render Landlord liable to Tenant, constitute a
constructive eviction of Tenant, give rise to an abatement of Rent,
or relieve Tenant from the obligation to fulfill any covenant or
agreement. Any provision herein to the contrary notwithstanding, if
a Service Failure relating to an interruption or termination of an
Essential Building Service (“ Essential Service
Failure ”) continues for a period of three (3)
consecutive Business Days after Landlord’s receipt of
Tenant’s written notice of the Service Failure, Tenant shall
have the following rights and remedies:
(i) Effective on the fourth (4
th )
consecutive Business Day after such Essential Service Failure,
Tenant shall be entitled to an equitable abatement of Rent
commensurate to that portion of the Premises not being reasonably
usable by Tenant for the Permitted Use (unless the Essential
Service Failure is caused by a fire or other casualty, in which
event Section 16 controls) calculated on a per square
foot basis and ending at the time the Premises or such applicable
portion are again suitable for use by Tenant for its Permitted
Use.
(ii) If such Essential Service
Failure results in the Premises or any material portion thereof not






