AGREEMENT OF
LEASE
(Southcenter South Industrial
Park)
THIS AGREEMENT OF LEASE IS MADE as of September
__, 2005, between THE TRUSTEES UNDER THE WILL AND OF THE
ESTATE OF JAMES CAMPBELL, DECEASED , acting in their
fiduciary and not their individual capacities ("
Landlord "), and ZONES, INC. , a
Washington corporation (" Tenant ").
Landlord hereby leases to Tenant and Tenant
hereby leases from Landlord, the Premises, for the Term, commencing
on the Commencement Date, subject to the terms, covenants,
conditions and provisions of this Lease.
1.
DEFINITIONS . Whenever used in this Lease, the following
terms shall have the meanings indicated below:
1.1
Additional Rent
. The Common Area Rent, Tax Rent,
and all other amounts, except Fixed Rent, payable by Tenant under
this Lease.
1.2
Brokers . Wilma Warshak of Colliers International
represented the Landlord (" Landlord's Broker "),
and Michael A. Hemphill of The Andover Company, Inc. represented
Tenant (" Tenant's Broker ").
1.3
Building . The improvements known as Southcenter South
Industrial Park, Glacier Building (the " Building
") located at 6540 Glacier Street, in Tukwila, Washington, and with
an agreed area of 82,172 square feet as shown on Exhibit A ,
plus the Building Parcel.
1.4
Building Parcel
. The land described on Exhibit
B attached and any other parcels of land at any time designated
by Landlord to be added thereto (but only so long as such
designation remains unrevoked) which are, or are to be, used for or
in conjunction with the Building, including, but not limited to,
parking areas, landscaping and all improvements to any such
parcels.
1.5
Commencement Date
. October 15, 2005 or the date
determined as provided in Section 2.2.
1.6
Common Areas
. As defined in Section
4.1.
1.7
Fixed Rent
. The Fixed Rent will be as set
forth below and will be payable in monthly installments (see
Section 3).
|
MONTHS
|
MONTHLY
INSTALLMENT
|
|
1-3
|
$12,300 per month
|
|
4-7
|
$0.00 per month
|
|
8-36
|
$12,300 per month
|
|
37-64
|
$13,776 per month
|
1.8
Floor Loading Limit
. An average load on the slab of
250 pounds per square foot.
1.9
Governmental Authority
. The United States, the State of
Washington, and any political subdivision thereof or any local
public or quasi-public authority, agency, department, commission,
board, bureau or instrumentality of any of them including, with
respect to matters pertaining to insurance, rating bureaus or
insurance carriers to the extent they have power to impose
conditions on the issuance of policies or the coverage
thereof.
1.10
Governmental
Requirements . Any law,
ordinance, code, order, rule or regulation of any Governmental
Authority.
1.11
Landlord . The party named as Landlord herein until a
sale, transfer or lease, and thereafter the Person or Persons,
collectively, who shall, for the time being, be liable for the
obligations of Landlord under the provisions of Section 6.3 of this
Lease.
1.12
Necessary Approvals
. Any permit, license, certificate
or approval or other evidence of compliance with any Governmental
Requirements necessary to the lawful occupancy of the Premises and
the issuance of the insurance required to be carried hereunder for
the Permitted Uses.
|
|
The Estate of
James Campbell
|
|
|
Attn:
President, Real Estate
|
|
|
|
|
|
425 California
Street, Suite 1000
|
|
|
San Francisco,
California 94104
|
|
|
|
With copy to
Managing Agent:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1102 15th
Street SW, Suite 102
|
|
|
|
|
|
Attn: Ronald
McFadden, CFO
|
1.14
Office Park
. Southcenter South Industrial Park
as legally described in the Protective Covenants.
1.15 Permitted Uses .
Office and warehouse but specifically excluding public warehousing,
truck terminals, custom houses and container terminals.
1.16 Person . A
natural person, firm, partnership, association, corporation or
limited liability company, as the case may be.
1.17 Premises . Suite
160 in the Building with an agreed area of approximately 26,943
square feet as shown on Exhibit A .
1.18 Prepaid Rent .
$15,260.00, payable upon the full execution of this Lease, to be
applied to the Fixed Rent and Additional Rent payable for the first
full month of the Lease Term that such sums are due payable by
Tenant pursuant to this Lease.
1.19 Protective
Covenants . Declaration of Protective Covenants recorded in the
official records of King County, Washington under Recording
No. 7704210775, as now or hereafter amended.
1.20 Rent . The Fixed
Rent and the Additional Rent.
1.21 Security Deposit
. Not applicable.
1.22 Tenant's Pro Rata
Share . 32.79%.
1.23 Term . Sixty-four
(64) full calendar months unless earlier terminated pursuant to
this Lease.
|
|
-
|
Legal
Description of Building Parcel
|
2.
CONSTRUCTION--COMMENCEMENT DATE.
2.1.1 Landlord shall perform
certain work in preparing the Premises for occupancy by Tenant all
as set forth in Exhibit C and in this section (" Tenant
Improvements ").
2.1.2 If Tenant desires
improvements beyond the Tenant Improvements set forth in Exhibit C,
and Landlord and Tenant agree as to further additional work, Tenant
shall, within five (5) days after written demand, pay to Landlord
as Additional Rent, the agreed upon cost and expense to Landlord of
supplying and installing such additional work, materials and
installations (including sales tax and design fees), plus ten
percent (10% of such cost and expense for Landlord's overhead, less
a credit equal to the cost to Landlord of materials specified in
Exhibit C (if any) for which substitutes were installed at Tenant's
request.
2.1.3 Landlord shall perform
the Tenant Improvements, provided, however, that Landlord shall
have the right on an on-going basis to make any changes required by
any Governmental Authority. Landlord shall perform work only once,
it being understood that Landlord's obligation to perform the work
with respect to Tenant Improvements is a single, non-recurring
obligation.
2.1.4 Tenant will be permitted
entry into the Premises on September 19, 2005 for the purpose of
installing data and telephone cabling and wires, installation of
warehouse racking, installation of office work stations and any
other needed preparation of the Premises for occupancy by Tenant or
for any other purpose permitted by Landlord; provided, however,
that such early entry will be at Tenant's sole risk and subject to
all the terms and provisions of this Lease as though the
Commencement Date had occurred, except for the payment of Fixed
Rent and Additional Rent, which will commence on the Commencement
Date. Tenant will not interfere with or delay Landlord's
performance of the Tenant Improvements. All rights of Tenant under
this Section 2.1.4 will be subject to the requirements of all
applicable building codes and zoning requirements. Tenant may use
its own contractors for the installation of warehouse racking and
office data and telephone cabling.
2.2.1 The Commencement Date
listed in Section 1 of this Lease represents an estimate of the
actual Commencement Date. The actual Commencement Date shall be the
first to occur of the following events: (i) three (3) days after
Landlord notifies Tenant the Premises are available for Tenant's
occupancy in the condition required pursuant to Section 2.1 of this
Lease, or (ii) the date on which Tenant takes possession of the
Premises for purposes other than completing tenant improvements. If
the Commencement Date is later than the estimated Commencement Date
specified in Section 1 above, this Lease shall not be void or
voidable. If the Commencement Date is a day other than the first
day of the calendar month, unless otherwise agreed in writing by
Landlord and Tenant, the Term shall not commence until the first
day of the first calendar month staring after the Commencement
Date, however all of the other terms and conditions of this Lease
(including those regarding the payment of rent) shall be applicable
on the Commencement Date.
2.2.2 Tenant waives any
damages which may result from any delay in the substantial
completion of the work described in Section 2.1 or delivery of
possession of the Premises. If Tenant takes possession of the
Premises prior to the Commencement Date for the purpose of doing
business in the Premises, Tenant's obligation to pay Rent hereunder
and to observe and perform all other conditions and agreements
hereunder with respect to the Premises shall commence on such
earlier date of taking possession of the Premises. Notwithstanding
the foregoing, Tenant shall not take possession of the Premises
prior to the Commencement Date for such purposes without Landlord's
written permission.
2.2.3 In the event that
substantial completion of the Tenant Improvements is delayed by
reason of delays caused or occasioned by Tenant, this Lease shall
commence on the date that this Lease would have commenced had not
the completion of Tenant Improvements been so delayed by the
Tenant, as reasonably determined by Landlord.
2.2.4 The taking of possession
of the Premises by Tenant shall be deemed an acceptance of the
Premises and substantial completion by Landlord of the Tenant
Improvements.
2.2.5 Promptly after the
Commencement Date, Landlord shall complete and send to Tenant the
Verification Letter attached to this Lease as Exhibit D .
Tenant shall execute and return the Verification Letter to Landlord
within fifteen (15) days of receipt.
2.3 Ownership of
Improvements . All installations, alterations, additions,
improvements, fixtures and other property which are now or at any
time hereafter attached to, or located upon the Premises, made or
installed by either party, including all pipes, ducts, conduits,
wiring, paneling, decorations, partitions, railings, mezzanine
floors, galleries and the like, shall be and remain the property of
Landlord and shall remain upon and be surrendered with the Premises
as a part thereof at the expiration or sooner termination of the
Term in accordance with Exhibit C attached to this Lease.
None of the foregoing shall be deemed to include any of Tenant's
furniture, trade fixtures and personal property which are removable
without damage to the Premises. To the extent Tenant is required to
remove any improvements made by Tenant to the Premises upon the
expiration or sooner termination of the Term, Landlord will notify
Tenant of such removal requirement at the time Landlord approves
the installation of any such improvements.
2.4 Option to Extend
Term .
2.4.1 Landlord grants to
Tenant one (1) Option (the " Option ") to extend
the Term for an additional term of five (5) years (the "
Extension "), on the same terms, conditions, and
covenants set forth in the Lease, except as provided below. The
Option shall be exercised only by written notice delivered to
Landlord at least one hundred eighty (180) days prior to the
expiration of the Term. If Tenant fails to deliver to Landlord
written notice of the exercise of an Option within the prescribed
time period, such Option shall lapse, and there shall be no further
right of Tenant to extend the Term. The Option shall be exercisable
by Tenant only upon the express conditions precedent that, at all
times prior to the commencement of such Extension, (a) Tenant has
not been and shall not be in default under any of the provisions of
the Lease, and (b) the Lease shall be in full force and effect. The
foregoing Option is personal to Tenant and may not be exercised by
any assignee or subtenant of Tenant.
2.4.2 The Fixed Rent shall be
increased on the first day of the Extension to the " Fair
Rental Value of the Premises " (as defined below),
determined in the following manner:
(a) Landlord and Tenant
shall endeavor in good faith upon Tenant's exercise of the Option
to agree upon the Fair Rental Value of the Premises. If Landlord
and Tenant have not been able to agree on the Fair Rental Value of
the Premises within thirty (30) days after Tenant's exercise of the
Option, the Fixed Rent for the Extension shall be determined as
follows: within forty five (45) days following the exercise of the
Option, Landlord and Tenant shall endeavor in good faith to agree
upon a single appraiser. If Landlord and Tenant are unable to agree
upon a single appraiser within the 45 day period, each shall then,
by written notice to the other, within ten days after the 45 day
period, appoint one appraiser. Within ten (10) days after the two
appraisers are appointed, the two appointed appraisers shall
appoint a third appraiser. If either Landlord or Tenant fails to
appoint its respective appraiser within the prescribed time period,
the single appraiser appointed shall determine the Fair Rental
Value of the Premises. If the two appointed appraisers fail to
agree on the third appraiser, the third appraiser shall be
appointed by the then-president of the Seattle, Washington Chapter
of the Appraisal Institute. Each party shall bear the cost of the
appraiser appointed by it, and the parties shall share equally the
cost of the third appraiser.
(b) The term " Fair
Rental Value of the Premises " shall mean the rent that a
ready and willing tenant would pay, at the time of the commencement
of the Extension, as monthly Fixed Rent to a ready and willing
lessor of property comparable to the Premises, if such property
were exposed for lease on the open market for a reasonable period
of time, and taking into account all of the purposes for which such
property may be used, and not just the use proposed to be made of
the property by Tenant. Currently, 6,000 square feet of the
Premises is built out as office space. If, at the time of the
Extension, Tenant is using only 4,000 square feet of the office
space within the Premises as office space, then the Fair Rental
Value of the Premises will be calculated based on the use of 2,000
square feet of the office space within the Premises as warehouse
space. If, however, Tenant is using more than 4,000 square feet of
office space as office space, the Fair Rental Value of the Premises
will be calculated using office rental rates for the full 6,000
square feet. The Fair Rental Value of the Premises shall be the
average of the two of the three appraisals which are closest in
amount, and the third appraisal shall be disregarded. In no event
shall the Fixed Rent be reduced by reason of such computation. If
the Fair Rental Value of the Premises is not determined prior to
the commencement of the Extension, then Tenant shall continue to
pay to Landlord the Fixed Rent applicable to the Premises
immediately prior to the Extension, until the Fair Rental Value of
the Premises is determined, and when it is determined, Tenant shall
pay to Landlord within ten (10) days after receipt of written
notice the difference between the Fixed Rent actually paid by
Tenant to Landlord and the new Fixed Rent determined under this
Section 2.4.
3.1
Payment . All Rent shall be paid in lawful money of the
United States which shall be legal tender in payment of all debts
and dues, public and private, at the time of payment, at the
address of Landlord set forth in this Lease or at such other place
as Landlord in writing may designate, without any set-off or
deduction whatsoever and without any prior demand
therefor.
3.2
Fixed Rent . Tenant shall pay the annual Fixed Rent in equal
monthly installments in advance on the first day of each calendar
month included in the Term.
3.3.1
Definitions . In addition to the Fixed Rent, Tenant shall
pay to Landlord, Tenant's Pro Rata share of Real Property Taxes ("
Tax Rent "), utilizing the following
definitions:
(a) " Real Property
Taxes " shall mean real and personal property taxes,
LID's, assessments, and other governmental impositions and charges
of every kind and nature, now or hereafter imposed, including
surcharges with respect thereto, which may during the Term of this
Lease be levied, assessed, imposed, or otherwise become due and
payable with respect to the Building, including Tenant
Improvements, and including the Building Parcel and all
improvements, fixtures, and equipment thereon, or the use,
occupancy or possession thereof; taxes on Property of Tenant (as
described in subsection 3.3.4) which have not been paid by Tenant
directly to the taxing authority; costs and expenses, including
costs of appraisers, attorneys and consultants incurred in
negotiating, reviewing or appealing any taxes; and any taxes levied
or assessed in addition to, in lieu of, or as a substitute for, in
whole or part, taxes now levied or assessed or any other tax upon
owning, leasing or rents receivable by Landlord from the Building,
but not including any federal or state income tax imposed on
Landlord. Real Property Taxes will not include business and
occupation taxes paid by Landlord unless such taxes are substituted
for or otherwise replace real property taxes to be paid by Landlord
with respect to the Building, the Tenant Improvements or the
Building Parcel.
(b) " Tenant's Share
of Real Property Taxe s" shall mean the amount of Real
Property Taxes payable during any calendar year by Landlord
multiplied by Tenant's Pro Rata Share.
3.3.2 Additional Rent for
Estimated Tenant's Share of Real Property Taxes . Each year
Landlord shall furnish Tenant with a written statement setting
forth the estimate of Tenant's Share of Real Property Taxes for
such calendar year. One-twelfth (1/12) of such amount shall be
Additional Rent payable by Tenant with installments of Fixed Rent.
Until Landlord provides Tenant with the written statement provided
for above in this paragraph, Tenant shall continue to pay Tenant's
Share of Real Property Taxes in the monthly amount specified in the
last such written statement given to Tenant by Landlord. If during
a calendar year Landlord obtains information regarding Real
Property Taxes which alters Landlord's prior estimates of Tenant's
Share thereof, by written notice to Tenant, Landlord may adjust the
amount due from Tenant under this Section 3.3.2 during the balance
of that calendar year to reflect such new information.
3.3.3 Actual Real Property
Taxes . After the close of each calendar year or portion
thereof, Landlord shall deliver to Tenant a written statement
setting forth the Tenant's Share of Real Property Taxes during the
preceding calendar year. If Tenant's Share of Real Property Taxes
for any calendar year exceeds the estimated Tenant's Share of Real
Property Taxes determined as provided in the preceding subsection
3.3.2, Tenant shall pay the amount of such excess to Landlord as
added Additional Rent within thirty (30) days after receipt of such
statement by Tenant. If such statement shows such amount to be less
than the amount paid by Tenant to Landlord pursuant to the
preceding subsection 3.3.2, then the amount of such overpayment
shall be credited by Landlord to the next due Rent payable by
Tenant; however, upon the expiration or sooner termination of the
Term, if Tenant has otherwise complied with all other terms and
conditions of this Lease, Landlord shall refund any unpaid excess
to Tenant.
3.3.4 Personal Property
Taxes . Tenant shall pay, prior to delinquency, all Personal
Property Taxes payable with respect to all Property of Tenant
located on the Premises or the Building and promptly upon request
of Landlord shall provide written proof of such payment. As used
herein, " Property of Tenant " shall include all
improvements, fixtures and equipment which are paid for or owned by
Tenant. " Personal Property Taxes " shall include
all property taxes assessed against the Property of Tenant, whether
assessed as real or personal property.
3.3.5 Real Property Tax
Proceedings . In the event Landlord shall obtain a tax refund
as a result of Real Property Taxes reduction proceedings or other
proceedings of similar nature, then Tenant shall, provided Tenant
is not then in default, and after the final conclusion of all
appeals or other remedies, be entitled to the net refund of Real
Property Taxes obtained based upon Real Property Taxes paid by
Tenant which is the subject of the refund. As used herein, the term
" net refund " means the refund plus interest, if
any, thereon, paid by the Governmental Authority less appraisal,
engineering, expert testimony, attorney, printing and filing fees
and all other costs and expenses of the proceeding. Tenant shall
not have the right to institute or participate in any such
proceedings without the consent of Landlord, it being understood
that the commencement, conduct, and settlement thereof shall be
determined by Landlord. To the extent Tenant is entitled to any net
refund, Landlord shall pay Tenant such net refund within ninety
(90) days after Landlord's receipt of such net refund.
3.4.1 Definitions . In
addition to the Fixed Rent, Tenant shall pay to Landlord as
Additional Rent, Tenant's Pro Rata Share of Common Area Operating
Costs (" Common Area Rent "), using the following
definitions:
(a) " Common Area
Operating Costs " shall mean (1) the pro rata portion,
allocated on the basis of the ratio which the area of the Building
Parcel bears to the then area of the Office Park, of the expenses
of the operation, maintenance and repair of the Common Areas of the
Office Park in accordance with the Protective Covenants, (2)
insurance premiums for insurance carried by Landlord on the
Building or the Building Parcel, (3) the cost of landscape
maintenance on the Building Parcel and periodic painting and repair
of the exterior of the surface of the Building, (4) repair and
maintenance of the roof of the Building (including the roof
membrane and exterior of the Building), and (5) all expenses paid
or incurred by Landlord for maintaining, operating and repairing
the Common Areas (as defined in (b) through (e) of Section 4.1),
the Building and the Building Parcel and the equipment and personal
property used in conjunction therewith, including, without
limitation, the costs of compliance with Governmental Requirements,
the costs of refuse collection, water, sewer, electricity, and
other utilities services, supplies and cleaning services, services
of independent contractors, compensation (including employment
taxes and fringe benefits) of all persons who perform duties in
connection with the operation, maintenance and repair of the Common
Areas and its equipment, the maintenance and repair of parking
areas, curbs, landscaping, lighting and outdoor facilities,
licenses, permits and inspection fees, taxes, liability insurance
for the Office Park including the Building, property management
fees, legal and accounting expenses and any other expense or charge
whether or not hereinabove described which in accordance with
generally accepted accounting and/or property management practices
would be considered an expense of maintaining, operating or
repairing the Common Areas, the Building or the Building Parcel,
excluding:
(1) Costs of any special
services rendered to individual tenants (including Tenant) for
which a special charge is made; and
(2) Real Property Taxes (as
defined in Section 3.3 of this Lease).
(3) Repairs required to be
made by Landlord at Landlord's expense pursuant to Section
6.1.
(b)
" Actual Costs " shall mean the actual expenses
paid or incurred by Landlord for Common Area Operating Costs during
any calendar year of the term hereof.
(c) "
Actual Costs Allocable to the Premises " shall
mean Actual Costs multiplied by Tenant's Pro Rata Share.
(d)
" Estimated Costs Allocable to the Premises "
shall mean Landlord's estimate of Actual Costs Allocable to the
Premises to be given by Landlord to Tenant pursuant to subsection
3.4.2 below.
(e)
If during any year, the Building is less than fully occupied, then,
for purposes of calculating Tenant's Pro Rata Share of Common Area
Operating Costs for that year, the amount of expenses that
fluctuate with Building occupancy shall be imputed to be the amount
which, in Landlord's reasonable estimation, they would have been
had the Building been fully occupied for that entire
year.
3.4.2 Additional Rent for
Estimated Costs . Each year Landlord shall furnish Tenant a
written statement of the Estimated Costs Allocable to the Premises
for such calendar year: One-twelfth (1/12) of such amount shall be
Additional Rent payable by Tenant with installments of Fixed Rent.
Until Landlord provides Tenant with the written statement provided
for above in this paragraph, Tenant shall continue to pay the
amount of the Estimated Costs Allocable to the Premises specified
in the last such written statement given to Tenant by Landlord. If
during a calendar year Landlord obtains information regarding
Common Area Operating Costs which alters Landlord's prior estimate
of the Estimated Costs Allocable to the Premises, by written notice
to Tenant, Landlord may adjust the amount due from Tenant under
this Section 3.4.2 during the balance of that calendar year to
reflect such new information. Estimated Costs Allocable to the
Premises will not include business and occupation taxes unless such
taxes are substituted for or replace real property taxes to be paid
by Landlord.
3.4.3 Actual Costs .
After the close of each calendar year or portion thereof, Land-lord
shall deliver to Tenant a written statement setting forth the
Actual Costs Allocable to the Premises during the preceding
calendar year. If such costs for any calendar year exceed Estimated
Costs Allocable to the Premises paid by Tenant to Landlord pursuant
to the preceding subsection 3.4.2, Tenant shall pay the amount of
such excess to Landlord as Additional Rent within thirty (30) days
after receipt of such statement by Tenant. If such statement shows
such costs to be less than the amount paid by Tenant to Landlord
pursuant to the preceding subsection 3.4.2, then the amount of such
overpayment by Tenant shall be credited by Landlord to the next
succeeding installment of Rent payable by Tenant; however, upon the
expiration or sooner termination of the Term, if Tenant has
otherwise complied with all of the terms and conditions of this
Lease, Landlord shall refund the excess to Tenant within ninety
(90) days.
3.5 End of Term . If
this Lease shall terminate on a day other than the last day of a
calendar year, the amount of any adjustment between Estimated and
Actual Costs Allocable to the Premises and Tenant's Share of Real
Property Taxes with respect to the calendar year in which such
termination occurs shall be prorated on the basis which the number
of days from commencement of such calendar year to and including
such termination date bears to 365; and any amount payable by
Landlord to Tenant or Tenant to Landlord with respect to such
adjustment shall be payable within thirty (30) days after delivery
by Landlord to Tenant of the statement of such adjustment with
respect to such Lease Year.
3.6 Additional Rent .
Unless another time shall be herein expressly provided, Additional
Rent shall be due and payable on demand or together with the next
succeeding installment of Fixed Rent, whichever shall first occur;
and Landlord shall have the same remedies for failure to pay the
Additional Rent as for a non-payment of Fixed Rent.
3.7 Rent for a Partial
Month . For any portion of a calendar month included at the
beginning or end of the Term, Tenant shall pay 1/30th of each
monthly installment of Rent for each day of such portion, payable
in advance at the beginning of such portion.
3.8 Interest; Late
Charges . If Tenant fails to pay Rent within five (5) days of
the due date, a late charge equal to the greater of $50.00, or five
percent (5%) of the unpaid amount, shall be assessed and be
immediately due and payable by Tenant. In addition, from and after
ten (10) days after the due date of any payment of Rent, interest
shall accrue thereon at the rate of the lesser of 1-1/2% per month
or the maximum rate permitted by law.
3.9 Sales Tax .
Tenant shall pay any sales, use, occupancy, value added (if the
value added is not in lieu of Real Property Taxes as described in
Section 3.3) or similar tax now or hereafter levied or imposed in
connection with the Rent payable by Tenant, but not including any
federal, state or local income tax or business and occupation tax
imposed upon Landlord.
4.1 Common Areas .
Landlord hereby grants to Tenant a nonexclusive license in common
with Landlord and with others to use for the purposes permitted
under this Lease: (a) the common areas of the Office Park as
defined in the Protective Covenants for ingress and egress to the
Premises, (b) the hallways, lobby, if any, and such public
conveniences of the Building as may from time to time be designated
by Landlord, (c) the parking lot and parking area serving the
Building, (d) private streets and roads serving the Premises, and
(e) any other areas or improvements in or around the Building or
Building Parcel, including all exterior lighting, now or hereafter
to be used in common by or for the common benefit of Landlord and
the tenants of the Building or other buildings. The items set forth
in (a) through (e) above are collectively referred to as "
Common Areas ". Notwithstanding any of the
provisions herein contained, Landlord shall retain a nonexclusive
right to the use of the Common Areas and all other parts of the
Office Park. No schedule, exhibit, sketch, plan, drawing,
rendering, brochure, flyer, or the like shall be deemed to create a
warranty, representation or agreement on the part of Landlord that
the Office Park or the Building will be or will continue to be
exactly as indicated thereon, and Landlord reserves the right to
(i) increase, reduce or change the number, type, size, location,
elevation, nature and use of any of the Common Areas in the Office
Park, and (ii) make changes, additions, alterations, or
improvements in or to the Common Areas or the Office Park
(including additional buildings), and (iii) dedicate all or any
part of the Common Areas or the Office Park to any Governmental
Authority having jurisdiction. Subject to occasional temporary
closures necessary for any work within the Common Areas, Landlord
shall not make changes to the Common Areas which materially and
adversely affect Tenant's ability to conduct business within the
Premises. Tenant shall have no rights with respect to the land or
improvements below the exterior floor slab level or above the
interior surface of the ceiling of the Premises or air rights or
any easements, in, on, about, below or above the
Premises.
4.2
Parking . Tenant and its visitors, agents and employees
shall be permitted to park in the parking lot serving the Building
and located on the Building Parcel, and Tenant understands that
parking spaces shall not be reserved but on a first-in basis.
Tenant and Tenant's visitors, agents and employees shall park their
passenger vehicles, trucks or delivery vehicles only in the paved
parking area serving the Building and located on the Building
Parcel and not in any other parts of the Office Park, including any
unpaved areas, railroad rights of way or easements or any fire
lanes or corridors. In addition, Tenant shall not, at any time,
park or permit the parking of any vehicles or visitor parking in
any part of the parking areas which are restricted or designated as
driveways, loading area, access areas, crosswalks, entrance areas,
exit areas or in any other manner which would in any way restrict
and/or hamper the flow of traffic. In utilizing parking areas and
spaces, all Persons shall park at their own risk and it is
specifically understood and agreed that the Landlord shall not be
liable in any way for any injury to person or property or loss by
theft or damage or otherwise of said vehicle(s) or the contents
thereof or from any other cause whatsoever. Vehicles may be moved
in order to permit Landlord to examine the parking areas and spaces
and to make such repairs, replacements and improvements as Landlord
may deem necessary and reasonably desirable in accordance with and
subject to the terms, conditions and covenants of this
Lease.
4.2.1 Tenant agrees to enforce
all parking requirements or rules and regulations imposed by any
Governmental Authority or Landlord. Landlord reserves the right to
tow away any vehicle in violation of such requirements, rules or
regulations.
4.2.2 Use of the Common Areas
and all parts of the Office Park shall be subject to such rules and
regulations including the right to allocate the number of spaces
available to each tenant or occupant of the Building as Landlord
may from time to time adopt on a uniform or nondiscriminatory
basis, including the establishment of validation systems, barriers
or gates, permits and stickers for parking and other systems as
Landlord may, from time to time, adopt. In the event of an
allocation of parking spaces, Tenant shall be allocated Tenant's
Pro Rata Share of the parking spaces serving the
Building.
5.1 Utilities .
Tenant shall be solely responsible and shall pay separately for all
charges for fuel, heat, water, sewer service, refuse collection,
gas, electricity, telephone and for all other utilities used or
consumed in the Premises. It is understood that Landlord shall not
be required to provide any services or utilities to Tenant, and
Tenant shall make any necessary arrangements to have all of such
services or utilities billed directly to and paid directly by
Tenant.
5.2 Directory . If
Landlord constructs a Building directory, Tenant shall be allotted
Tenant's Pro Rata Share of the available space on such
directory.
6.
LANDLORD'S ADDITIONAL COVENANTS
.
6.1 Repairs by
Landlord . Landlord shall repair, maintain and replace the roof
structure, floor structure, exterior walls and foundations of the
Building, and the plumbing, electrical and other utility systems
serving but which are located outside of the Premises (excluding,
however, repairs to windows, doors, saddles and plate glass), and
the load-bearing walls and load-bearing columns, if any, within the
Premises, provided that Landlord shall not be obligated hereby to
do any work required to be done because of any damage caused by any
act, omission or negligence of Tenant and its invitees, licensees,
their respective officers, agents and employees or their customers.
Routine maintenance or repair costs incurred in connection with the
maintenance and repairs described in the preceding sentence shall
be considered Common Area Operating Costs but replacements or
repairs of a capital nature (as determined in accordance with
generally accepted accounting principles) shall be at Landlord's
cost and expense and shall not be a Common Area Operating Cost.
Landlord shall not be required to commence any such repair until
after notice from Tenant that the same is necessary, which notice,
except in the case of an emergency, shall be in writing and shall
allow Landlord ten (10) days in which to commence such repair. When
necessary by reason of accident or other cause occurring in the
Building or in the Premises or in order to make any repairs or
alterations or improvements in or relating to the Building or the
Premises, Landlord reserves the right to interrupt the supply of
electricity, water and gas or any other utility and also to suspend
the operation of the heating and air conditioning system, where
there shall be one installed in the Building, until said repairs,
alterations or improvements shall have been completed. There shall
be no abatement in Rent because of any such interruption or
suspension, however, Landlord shall pursue such work with
reasonable continuity, diligence and dispatch and in such a manner
as to cause a minimum of interference with Tenant's use of the
Premises. Landlord shall maintain the landscaping on the Building
Parcel and periodically paint and repair the exterior surfaces of
the Building and the cost thereof shall be a Common Area Operating
Cost as set forth in Section 3.4; provided, however, if Landlord
paints the entire Building during the Term of this Lease, such
costs will be amortized and will not be a one-time charge. In
addition, Landlord, at Landlord's discretion, may clean and
maintain parking areas and entryways if the Tenant fails to keep
such areas clean and in good condition, and the cost thereof shall
be a Common Area Operating Cost as set forth in
Section 3.4.
6.2
Quiet Enjoyment . Landlord covenants that Tenant, on paying
the Rent and performing Tenant's obligations in this Lease, shall
peacefully and quietly have, hold and enjoy the Premises throughout
the Term without hindrance, ejection or molestation by any Person
lawfully claiming under Landlord, subject to the other terms and
provisions of this Lease, the Protective Covenants and to all
mortgages and underlying leases of record to which this Lease is or
may become subject and subordinate.
6.3
Landlord's Liability .
6.3.1 In the event of a sale
or transfer of all or any portion of the Building or Building
Parcel or an undivided interest therein, or in the event of the
making of a lease of all or substantially all of the Building or
Building Parcel (an " Overlease "), or in the
event of a sale or transfer of the Landlord's fee or leasehold
estate in any such Overlease, the grantor or transferor, as the
case may be, shall thereafter be entirely relieved of all terms,
covenants and obligations thereafter to be performed by Landlord
under this Lease to the extent of the interest or portion so sold
or transferred, provided that (a) any amount then due and payable
to Tenant or for which Landlord or the then grantor or transferor
would otherwise then be liable to pay to Tenant (it being
understood that the owner of an undivided interest in the fee or
any such Overlease shall be liable only for his or its
proportionate share of such amount) shall be paid to Tenant, (b)
the interest of the grantor or transferor, as Landlord, in any
funds then in the hands of Landlord or the then grantor or
transferor, in which Tenant has an interest, shall be transferred
to the then grantee or transferee, and (c) notice of such sale,
transfer or Overlease, shall be delivered to Tenant. Upon the
termination of any such Overlease, the lessor thereunder shall
become and remain liable as Landlord hereunder only so long as
there shall not be made another such Overlease.
6.3.2 Tenant agrees that it
shall look solely to the estate and property of Landlord in the
land and buildings comprising the Building and Building Parcel
(subject to prior rights, if any, of holders of superior interests)
for the collection of any judgment (or other judicial process)
requiring the payment of money by Landlord in the event of any
default or breach by Landlord with respect to any of the terms,
covenants and conditions of this Lease to be observed or performed
by Landlord; and no other assets of Landlord or any Person having
any interest in Landlord shall be subject to levy, execution or
other procedures for the satisfaction of Tenant's
remedies.
6.3.3 So long as the Trustees
Under the Will and of the Estate of James Campbell, Deceased,
constitute Landlord, subject to Section 6.3.2 above, any liability
which may arise as a consequence of the execution of this Lease by
or on behalf of the Landlord shall be a liability of the assets of
the Estate of James Campbell and not the personal liability of any
trustee, corporate officer of a corporate trustee or employee of
the Estate of James Campbell.
7.
TENANT'S ADDITIONAL COVENANTS .
7.1
Affirmative Covenants
. Tenant covenants, at its expense,
at all times during the Term:
7.1.1 To use the Premises only
for the Permitted Use and for no other purpose and in no event
shall Tenant permit the use of the Premises in violation of any
Governmental Requirements, in violation of any covenants and
restrictions affecting the Building and Building Parcel, including
those set forth in the Protective Covenants, or for any unlawful,
or noxious or offensive purpose or in such a manner as to
constitute a nuisance.
7.1.2 To (a) store all trash
and refuse in appropriate sealed and covered containers either
within the Building or in a concealed location designated by
Landlord and shall attend to the regular disposal and removal
thereof, (b) receive all deliveries, load and unload goods,
merchandise, supplies, fixtures, equipment, furniture and rubbish
only through proper service doors, and loading docks serving the
Building, but in no event through the main front entrance thereof,
and (c) not change the exterior colors or architectural treatment
of the Premises or make any alterations or changes to the exterior
of the Building, or the grading, planting or landscaping of the
exterior of the Premises without Landlord's prior written approval.
In addition, there shall be no outside storage of any kind
permitted without Landlord's written consent.
7.1.3 Except for repairs
required to be made by Landlord, Tenant shall take good care of the
Premises and, at Tenant's sole cost and expense, shall make all
improvements, repairs and replacements of the interior and exterior
nonstructural portions of the Premises, foreseen or unforeseen as
and when needed to preserve the Premises in good working order and
condition. Without affecting or limiting Tenant's obligations set
forth in this preceding sentence, Tenant, at Tenant's sole cost and
expense, shall provide (a) maintenance and repair of the
electrical, heating, plumbing and air conditioning systems in the
Premises; (b) generally keep and maintain the Premises, both
interior and exterior, in good repair and condition; and (c) repair
and maintain all exterior and interior doors, windows, partitions,
lighting, glass, floor surfaces and entry ways. Tenant specifically
acknowledges that the floor loading limit within the Premises is as
set forth in Section 1, and Tenant agrees not to load the floor in
excess of such limit. Before installing any heavy equipment or
fixtures in the Premises, Tenant shall submit the plans and
specifications therefor to Landlord for approval. Tenant shall at
all times during the term of this Lease, keep and maintain in full
force and effect maintenance and repair contracts for the benefit
of Landlord and Tenant, providing for the service, maintenance, and
repair of the heating, ventilating and air conditioning systems of
the Premises.
7.1.4 To make all repairs,
alterations, additions or replacements to the Premises, including
appurtenances, equipment, interior and exterior facilities and
fixtures related thereto, including any protective bollards located
on the Building Parcel, arising out of Tenant's use or occupancy of
the Premises or necessary to satisfy any Governmental Requirement;
to keep the Premises equipped with all safety appliances so
required because of such use or occupancy; and otherwise to comply
with the orders and regulations of any Governmental Authority.
Tenant acknowledges that Landlord may be required or may desire to
subdivide or plat the Building Parcel and grant easements thereon,
and Tenant agrees to consent to or join in such documents to the
extent reasonably required by Landlord.
7.1.5 To pay promptly when due
the entire cost of any work to the Premises, including equipment,
facilities and fixtures therein, undertaken by Tenant, so that the
Premises and the Building shall, at all times, be fr
|