|
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Exhibit
10.2
DEED OF LEASE AGREEMENT
by and between
FOUNDRY PARK I, LLC, a Virginia limited liability
company
("Landlord")
and
MEADWESTVACO CORPORATION, a Delaware
corporation
("Tenant")
dated
January 11, 2007
TABLE OF
CONTENTS
| |
|
|
|
|
|
|
|
|
|
Page
|
|
1.
|
|
Basic Terms and Definitions.
|
|
3
|
|
2.
|
|
Building and Demised Premises.
|
|
13
|
|
3.
|
|
Security Deposit.
|
|
15
|
|
4.
|
|
Term.
|
|
15
|
|
5.
|
|
Possession.
|
|
17
|
|
6.
|
|
Rental Payments.
|
|
21
|
|
7.
|
|
Base Rental.
|
|
23
|
|
8.
|
|
Additional Rental.
|
|
24
|
|
9.
|
|
Operating Expenses.
|
|
25
|
|
10.
|
|
Payments.
|
|
30
|
|
11.
|
|
Interest.
|
|
31
|
|
12.
|
|
Use Rules; Hazardous Substances.
|
|
31
|
|
13.
|
|
Repairs by Landlord and Alterations by
Tenant.
|
|
33
|
|
14.
|
|
Repairs by Tenant.
|
|
37
|
|
15.
|
|
Landlord’s Right of Entry.
|
|
37
|
|
16.
|
|
Insurance.
|
|
38
|
|
17.
|
|
Waiver of Subrogation.
|
|
40
|
|
18.
|
|
Tenant’s Default.
|
|
40
|
|
19.
|
|
Waiver of Breach.
|
|
43
|
|
20.
|
|
Assignment and Subletting.
|
|
43
|
|
21.
|
|
Destruction.
|
|
46
|
|
22.
|
|
Removal of Fixtures, Equipment and
Effects.
|
|
50
|
|
23.
|
|
Services by Landlord.
|
|
51
|
|
24.
|
|
Attorneys’ Fees.
|
|
52
|
|
25.
|
|
Time.
|
|
53
|
|
26.
|
|
Subordination and Attornment.
|
|
53
|
|
27.
|
|
Cumulative Rights.
|
|
55
|
|
28.
|
|
Holding Over.
|
|
56
|
|
29.
|
|
Surrender of Premises.
|
|
56
|
|
30.
|
|
Notices.
|
|
56
|
|
31.
|
|
Damage or Theft of Personal Property.
|
|
57
|
|
32.
|
|
Eminent Domain.
|
|
57
|
|
33.
|
|
Parties.
|
|
60
|
|
34.
|
|
Reciprocal Indemnification Provisions.
|
|
60
|
|
35.
|
|
Force Majeure.
|
|
60
|
|
36.
|
|
Landlord’s Liability.
|
|
61
|
|
37.
|
|
Landlord’s Covenant of Quiet
Enjoyment.
|
|
61
|
|
38.
|
|
Lease.
|
|
62
|
|
39.
|
|
Submission of Lease.
|
|
62
|
|
40.
|
|
Severability.
|
|
62
|
|
41.
|
|
Entire Agreement.
|
|
62
|
|
42.
|
|
Governing Law.
|
|
62
|
|
43.
|
|
Headings.
|
|
62
|
i
| |
|
|
|
|
|
44.
|
|
Exhibits and Recitals.
|
|
62
|
|
45.
|
|
Extension Options.
|
|
63
|
|
46.
|
|
Expansion Site.
|
|
65
|
|
47.
|
|
Tenant’s Purchase Rights.
|
|
66
|
|
48.
|
|
Rights of First Offer to Lease.
|
|
68
|
|
49.
|
|
Right of First Refusal to Lease.
|
|
70
|
|
50.
|
|
Parking.
|
|
71
|
|
51.
|
|
Building Signage and Directory
Listings.
|
|
72
|
|
52.
|
|
Furnishing of Financial Information.
|
|
73
|
|
53.
|
|
Landlord’s Default.
|
|
73
|
|
54.
|
|
Short Form.
|
|
74
|
|
55.
|
|
Building Security.
|
|
75
|
|
56.
|
|
Brokers and Advisors Fees.
|
|
75
|
|
57.
|
|
Development of Foundry Park .
|
|
75
|
|
58.
|
|
Building Name.
|
|
80
|
|
59.
|
|
Counterparts.
|
|
81
|
| |
|
|
|
|
|
EXHIBITS
|
|
|
|
|
|
Exhibit A
|
|
Real Property Description
|
|
|
|
Exhibit A-1
|
|
Plat of Foundry Park
|
|
|
|
Exhibit B
|
|
Conceptual Site Plan
|
|
|
|
Exhibit C
|
|
Supplemental Agreement
|
|
|
|
Exhibit D
|
|
Work Letter
|
| |
|
Schedule A: Concept Design
Drawings
|
| |
|
Schedule B: Scope of Work
|
| |
|
Schedule C: Approved Schedule
|
| |
|
Schedule D: Final Certification
Form
|
|
|
|
Exhibit E
|
|
Building Standard Services
|
|
|
|
Exhibit F
|
|
Rules and Regulations
|
|
|
|
Exhibit G
|
|
Form Subordination, Non-Disturbance and
Attornment Agreement
|
|
|
|
Exhibit H
|
|
Tenant’s List of
Competitors
|
ii
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
DEED OF LEASE
AGREEMENT
THIS DEED OF LEASE AGREEMENT (this " Lease "), is made
and entered into this 11 day of January 2007 (the " Effective
Date "), by and between Landlord and Tenant.
W I T N E S S E T H :
For and in consideration of Ten Dollars ($10.00) and other good
and valuable consideration, receipt of which is hereby recognized
by the parties, Landlord and Tenant hereby covenant and agree as
follows:
Landlord, in consideration of the covenants and agreements to be
performed by Tenant, and upon the terms and conditions of this
Lease, does hereby rent and lease to Tenant, and Tenant does hereby
rent and lease from Landlord, the Demised Premises, together with
any and all appurtenances thereto, including without limitation,
the non-exclusive right to use the Project Common Areas, the
Building Parking Facilities, the access road located within Foundry
Park running between South Fifth Street and South Seventh Street as
shown on the Conceptual Site Plan, all points of access located
within Foundry Park from the Building to any public right of way
and the common accessways, walkways, driveways and plazas within
Foundry Park, all in accordance with the terms and provisions of
this Lease.
The definitions of certain of the terms used hereinafter with
capital letters are set forth in Article 1 hereof.
RECITALS
A. Landlord, Foundry Park II and their Affiliates intend to
construct and develop an office park and mixed-use development
named " Foundry Park " in the City of Richmond, Virginia on
the Real Property and on the Foundry Park II Parcel. The boundaries
of the Real Property are set forth in the description attached
hereto as Exhibit A and the boundaries of Foundry Park
are set forth in the plat attached hereto as
Exhibit A-1 , the boundaries of the Foundry Park II
Parcel being identified as "Parcel B" thereon.
B. The Building, the Building Parking Facilities and the Site
Work will be designed and constructed in accordance with the Work
Letter and the Plans and Specifications.
1. Basic Terms and Definitions .
1.1 Basic Terms . For the convenience of the parties,
certain basic terms of this Lease are set forth in this Article
1.1 . The provisions of this Article 1.1 are subject to
and shall be interpreted in light of the remaining terms and
conditions of this
3
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Lease. To the extent that the terms of this
Article 1.1 differ from the other terms and conditions of
this Lease, the other terms and conditions of this Lease are to
govern.
| |
|
|
|
1.1.1
|
|
Landlord:
Foundry Park I, LLC,
a Virginia limited liability company
|
|
|
|
1.1.2
|
|
Landlord’s Address:
c/o New Market Corporation
300 South Fourth Street
2 nd Floor
Richmond, Virginia 23219
|
|
|
|
1.1.3
|
|
Tenant:
MeadWestvaco Corporation,
a Delaware corporation
|
|
|
|
1.1.4
|
|
Tenant’s Address:
|
|
|
| |
|
Pre-Occupancy
MeadWestvaco Corporation
11013 West Broad Street
Glen Allen, Virginia 23060
Attention: Corporate Secretary
|
|
|
| |
|
Post-Occupancy
The Building Address
Attention: Corporate Secretary
|
|
|
|
1.1.5
|
|
Building Address:
To be confirmed in the Supplemental Agreement
|
|
|
|
1.1.6
|
|
Net Rentable Area within the Demised
Premises:
Approximately 310,607 rentable square feet, subject to
final determination and adjustment as provided in this
Lease.
|
|
|
|
1.1.7
|
|
Net Rentable Area of the Building:
Approximately 310,607 rentable square feet, subject to
final determination and adjustment as provided in this
Lease.
|
4
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
| |
|
|
|
1.1.8
|
|
Lease Term:
Beginning on the Full Rent Commencement Date and ending on the
Lease Expiration Date as more particularly
set forth in Article 4.1 hereof and subject to extension
as provided in Article 45 hereof.
|
|
|
|
1.1.9
|
|
Base Rental:
Base Rental rates shall be structured on a [***]. Base Rental
shall be equal to the product of the Landlord’s Cost
multiplied by the Rent Constant, and shall be payable in equal
monthly installments, except as otherwise expressly provided in
this Lease; provided, however, that Base Rental shall be reduced if
Tenant exercises its contraction or early termination rights as
more particularly set forth herein. The Base Rental shall escalate
[***] percent ([***]%) each Lease Year on the anniversary of the
Full Rent Commencement Date over the previous Lease Year’s
Base Rental Rate.
|
1.2 Definitions . For the purpose of this
Lease, the following terms shall have the meanings ascribed to them
in this Lease and capitalized terms not otherwise expressly defined
herein shall have the meaning ascribed to them in the Work Letter
attached hereto as Exhibit D .
Affiliate : Any corporation, limited liability company or
partnership that is more than fifty percent (50%) owned by
Tenant, Landlord or Foundry Park II, as applicable, or that
directly or indirectly controls, is controlled by or is under
common control of Tenant, Landlord or Foundry Park II, as
applicable.
Amenity Uses : Is defined in Article 57.1.4
hereof.
Anchor Tenant : The tenant with the largest Net Rentable
Area in each building, other than the Building, located within
Foundry Park.
Approval, Approve, or Approved : Is defined in
Section 1.1(c) of the Work Letter.
Base Building Work : Is defined in
Section 1.1(i) of the Work Letter.
Base Rental : Is defined in Article 7 hereof.
Base Year : Is defined in Article 8.4 hereof.
Brokers : Is defined in Article 56 hereof.
5
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Building : That certain high-rise
office building that is currently planned for ten (10) stories
(subject to Tenant’s expansion or contraction rights set
forth herein) to be constructed on the Real Property, all as more
particularly described in the Work Letter and documents referenced
therein.
Building Common Areas : All hallways, lobbies, corridors,
elevators, entrances and exits, restrooms, stairways and other
similar areas within the Building and the Building Parking
Facilities, excluding the Demised Premises, that are for the common
use of all tenants of the Building, provided that for so long as
Tenant is the sole tenant of the Building, such areas are to be for
the exclusive use of Tenant; provided, however, that Landlord shall
have the right to access and use such areas in accordance with the
terms of this Lease.
Building Operating Hours : During the Lease Term, from
7:00 a.m. to 7:00 p.m. on Monday through Friday (excluding legal
holidays) and from 8:00 a.m. to 1:00 p.m. on Saturday
(excluding legal holidays). There will be no Building Operating
Hours on Sundays or legal holidays and Landlord shall not be
obligated to maintain or operate the Building at such times, except
as provided in this Lease, unless special arrangements are made by
Tenant. Notwithstanding anything in the foregoing to the contrary,
Tenant shall have access to and use of the Demised Premises,
including but not limited to, essential services such as
electricity, heating and air conditioning, on a twenty-four
(24) hours per day, seven (7) days per week basis,
provided that Tenant shall be subject to such actual and direct
costs incurred by Landlord in providing such services outside the
Building Operating Hours pursuant to Article 23 and
Exhibit E of this Lease.
Building Parking Facilities : Those certain eight
(8) levels of parking located on the Real Property initially
containing at least one thousand fifty (1,050) parking spaces
as shown on the Concept Design Drawings attached to the Work Letter
as Schedule A . Prior to January 31, 2007, Tenant may
reduce the number of planned parking spaces, subject to all
applicable laws, statutes, rules, ordinances, regulations,
covenants and restrictions, upon consultation with and approval
from Landlord, such approval not to be unreasonably withheld,
conditioned or delayed; provided, however, it shall be deemed
reasonable for Tenant to reduce the number of planned parking
spaces to as few as two and one-half (2 1 / 2 ) spaces per one thousand
(1,000) square feet of Net Rentable Area of the Building,
provided such reduction is in accordance with all applicable laws,
statutes, rules, ordinances, regulations, covenants and
restrictions.
Building Standard Services : Is defined in Exhibit
E attached hereto.
CADD : Is defined in Article 2.2 hereof.
Casualty : Is defined in Article 21 hereof.
Clerk’s Office : Is defined in Article 54
hereof.
Commencement Date : Is defined in Article 5.1
hereof.
6
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Conceptual Site Plan : The Site Plan
for Foundry Park attached hereto as Exhibit B .
Contraction Space : Is defined in Article 4.3
hereof.
Damage Date : Is defined in Article 21.1
hereof.
Delivery Date : Is defined in Article 5.1.1
hereof.
Demised Premises : All of the Net Rentable Area on the
ten (10) floors of the Building (subject to Tenant’s
expansion and contraction rights set forth herein).
Design Development Documents : Is defined in
Section 1.1(p) of the Work Letter.
Determination Rate : A variable rate of interest equal to
the Prime Rate plus [***] percent ([***]%), but in no event
exceeding the legal limits for interest enforceable under
applicable law.
Effective Date : Is defined in the Preamble of this
Lease.
Environmental Laws : Means any federal, state or local
statutes, laws, rules, regulations, ordinances, codes, policies or
rules of common law now or hereafter in effect and in each case as
amended, and any judicial or administrative interpretations
thereof, including any judicial or administrative order, consent
decree or judgment, relating to the environment, health, safety or
Hazardous Substances.
Environmental Report : Is defined in Article 12.2
hereof.
Estimated Base Rental : Is defined in Article 6.2
hereof.
Excusable Delays: Is defined in
Section 1.1(t) of the Work Letter.
Expansion Space : Is defined in Article 46
hereof.
Expansion Work : Is defined in Article 46
hereof.
First Extended Term : Is defined in Article 45.1
hereof.
First Contraction Right : Is defined in Article
4.3 hereof.
Floor Commencement Date : Is defined in Article
5.1.1 hereof.
Foundry Park : Is defined in the Recitals of this
Lease.
Foundry Park II : Is defined in Article 37 of this
Lease.
7
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Foundry Park II Common Areas : Means
and includes all driveways and roadways now or hereafter located
within the Foundry Park II Parcel, all plaza areas and walkways now
or hereafter located within the Foundry Park II Parcel, all utility
lines, pipes, wires, cables and other utility facilities now or
hereafter located within and serving the Foundry Park II Parcel or
otherwise exclusively serving the Foundry Park II Parcel (except
such utility facilities serving specific tenants), any retention or
detention facilities now or hereafter serving the Foundry Park II
Parcel, any storm and sanitary sewers, culverts, drains, headwalls,
manholes and related equipment now or hereafter located within the
Foundry Park II Parcel, all grounds and landscaping within the
Foundry Park II Parcel, the auto court and any other portions of
the Foundry Park II Parcel that Landlord shall from time to time
designate as part of the Foundry Park II Common Areas for the
general use of all of the occupants of the Foundry Park II
Parcel.
Foundry Park II Parcel : That certain parcel of real
property contiguous to the Real Property constituting approximately
three and eight hundred ninety-six one thousandths
(3.896) acres located in Foundry Park in the City of Richmond,
Virginia, as more particularly described as Parcel B in
Exhibit A-1 attached hereto.
Full Rent Commencement Date : Is defined in Article
6.2 hereof.
GAAP : United States generally accepted accounting
principles as in effect from time to time, consistently applied
throughout the specified period.
Hazardous Substances : Are (i) any hazardous, toxic
or dangerous substance, waste or material as defined by any
Environmental Law, (ii) any other pollutant, contaminant,
hazardous substance, solid waste, hazardous waste, particulate
matter, airborne or otherwise, chemical waste, crude oil or any
fraction thereof, radioactive waste, petroleum or petroleum-derived
substance or waste, asbestos, PCBs, radon gas, all forms of natural
gas, or any hazardous or toxic constituent of any of the foregoing,
whether such substance is in liquid, solid or gaseous form.
HVAC : Is defined in Article 6.2 hereof.
Improvement Allowance : Is defined in
Section 1.1(w) of the Work Letter.
Landlord : Foundry Park I, LLC, a Virginia limited
liability company.
Landlord Contractor Phased Delivery of the Building : Is
defined in Article 5.1.2 hereof.
| |
|
|
|
|
|
Is defined in Article 34
hereof.
|
|
|
|
|
|
c/o New Market Corporation
|
| |
|
300 South Fourth Street
|
| |
|
2 nd
Floor
|
| |
|
Richmond, Virginia 23219
|
8
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
or such other address as Landlord may designate
from time to time by written notice to Tenant in accordance with
Article 30 hereof.
Landlord’s Contractor : Whiting-Turner Contracting
Company.
Landlord’s Cost : Is defined in
Section 1.1(aa) of the Work Letter.
Lease : Is defined in the preamble to this Lease.
Lease Expiration Date : The Lease Term shall end at 11:59
p.m. (local Richmond, Virginia time) on the day prior to the day
that is six (6) months after the thirteenth (13
th ) anniversary of
the Full Rent Commencement Date, unless the Full Rent Commencement
Date shall not be the first day of a calendar month; and, in such
latter event the Lease Term shall end at 11:59 p.m. (local
Richmond, Virginia time) on the last day of the calendar month in
which the day that is prior to the day that is six (6) months
after of the thirteenth (13 th ) anniversary of the Full
Rent Commencement Date occurs, provided that the Lease Term shall
be subject to extension as provided in Article 45
hereof.
Lease Term : Is defined in Article 4.1 hereof.
Lease Year : Lease Year shall mean each successive twelve
(12) month period during the Lease Term beginning on the Full
Rent Commencement Date, or if the Full Rent Commencement Date is
not the first day of the calendar month, then the Lease Year shall
consist of the first twelve (12) consecutive full calendar
months of this Lease plus the remaining calendar days in the month
in which the Full Rent Commencement Date occurs.
Milestones : Is defined in Section 3.2(a) of
the Work Letter.
Mortgage : Is defined in Article 26.2 hereof.
Mortgagee : Is defined in Article 26.2 hereof.
Net Rentable Area : Is defined and shall be determined
based on the BOMA Z65.1 1996 standards for measuring office
space.
Notice Date : Is defined in Article 21.1.2
hereof.
Offer Notice : Is defined in Article 49.1
hereof.
Offered Property : Is defined in Article 47.1
hereof.
Offered Space : Is defined in Articles 48 and
49 hereof.
Open for Business Date : Is defined in Article
5.1.1 hereof.
9
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Operating Costs : Is defined in
Articles 9.2 and 9.3 hereof.
Operating Expenses : Is defined in Article 9.1
hereof.
Plans and Specifications : Is defined in
Section 1.1(ll) of the Work Letter.
Prime Rate : A variable rate of interest equal to the
"prime rate" as published from time to time by the Wall Street
Journal , or a similar industry standard publication or agency,
as its prime rate.
Project : The Building; the Real Property; the Building
Parking Facilities; any walkways or other means of access to the
Building and the Building Parking Facilities located on the Real
Property; all Project Common Areas, including any lobbies or
plazas; and any other improvements or landscaping on the Real
Property, as such Project may be changed or altered in accordance
with the terms of this Lease.
Project Architect : MSTSD, Inc., or such other architect
as Landlord may designate by notice to Tenant in accordance with
Article 30 hereof.
Project Common Areas : Means and includes all driveways
and roadways now or hereafter located within the Project, all plaza
areas and walkways now or hereafter located within the Project, all
utility lines, pipes, wires, cables and other utility facilities
now or hereafter located within and serving the Project or
otherwise exclusively serving the Demised Premises (except such
utility facilities serving specific tenants), any retention or
detention facilities now or hereafter serving the Project, any
storm and sanitary sewers, culverts, drains, headwalls, manholes
and related equipment now or hereafter located within the Project,
all grounds and landscaping within the Project, all covered
walkways or other means of access to the Building and the Building
Parking Facilities located within or directly serving the Project,
the Building Common Areas and any other portions of the Project
that Landlord shall from time to time designate as part of the
Project Common Areas for the general use of all of the occupants of
the Building; provided, however, that Landlord must obtain
Tenant’s Approval before any portion of the Project not
considered Project Common Areas as of the Effective Date becomes
part of the Project Common Areas, which Approval may not be
unreasonably withheld, conditioned or delayed.
Proposed Lease : Is defined in Article 49 hereof.
Proposed Tenant : Is defined in Articles 48 and
49 hereof.
Punch List Items : Is defined in
Section 3.3(h) of the Work Letter.
Real Property : That certain real property constituting
approximately three and one hundred fifty-five one thousandths
(3.155) acres located in Foundry Park in the City of Richmond,
Virginia, as more particularly described in Exhibit A
and Exhibit A-1 attached hereto. The location of the
as-built Building on the Real Property shall be
10
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
confirmed by a revision to the ALTA Survey that
was prepared on behalf of Landlord as of the Effective Date. Such
revision shall be prepared on behalf of Landlord, shall be
reasonably acceptable to Tenant and shall be delivered to Tenant on
or before the date the Supplemental Agreement is executed by both
parties.
Refurbishment Allowance . Is defined in
Section 1.1(pp) of the Work Letter.
Rent : Base Rental, Estimated Base Rental, Tenant’s
Forecast Additional Rental, Tenant’s Additional Rental, and
any other amounts that Tenant assumes or agrees to pay under the
provisions of this Lease that are owed to Landlord, including
without limitation any and all other sums that may become due by
reason of any default of Tenant or failure on Tenant’s part
to comply with the agreements, terms, covenants and conditions of
this Lease to be performed by Tenant.
Rent Commencement Date : Is defined in Article 6.2
hereof.
Rent Constant : [***] percent ([***]%), which is not
subject to change except for the Expansion Space as set forth in
Article 46 .
Response Period : Is defined in Article 47.1.1
hereof.
Restrictions : Is defined in Article 57
hereof.
Right of First Refusal : Is defined in Article 49
hereof.
Rules and Regulations : Those Rules and Regulations
attached hereto as Exhibit F as the same may be reasonably
modified or supplemented and noticed in writing to Tenant from time
to time by Landlord in accordance with Article 12.1
hereof.
Sales Offer Notice : Is defined in Article 47.1.1
hereof.
Schematic Base Building Plans : Is defined in
Section 1.1(rr) of the Work Letter.
Second Contraction Right : Is defined in Article
4.3 hereof.
Second Extended Term : Is defined in Article 45.3
hereof.
Site Work : Is defined in Section 1.1(tt) of
the Work Letter.
Special Secured Areas : Is defined in Article 15
hereof.
Substantial Completion and Substantially Complete : Are
defined in Section 1.1(uu) of the Work Letter.
Successor : Is defined in Article 20.2 hereof.
11
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Supplemental Agreement : A Supplemental
Agreement substantially in the form of Exhibit C attached
hereto specifying the Building Address, the Commencement Date, the
Rent Commencement Date, the Full Rent Commencement Date, the Lease
Expiration Date, Base Rental, the percentage difference between the
Ten Year Treasury Note Rate and the Rent Constant, the Net Rentable
Area of the Building and the Net Rentable Area within the Demised
Premises, and attached to the Supplemental Agreement shall be the
final floor plans of the Building. The Supplemental Agreement shall
be executed by Landlord and Tenant in accordance with Article
4 hereof.
Taxes : Is defined in Article 9.2.10 hereof.
Tenant : MeadWestvaco Corporation, a Delaware
corporation.
Tenant Alterations : Improvements, alterations or
additions to the Demised Premises performed by or on behalf of
Tenant; provided, however, Tenant Alterations shall specifically
exclude the Tenant Improvements.
Tenant Contractor Phased Delivery of the Building : Is
defined in Article 5.1.1 hereof.
Tenant Delay : Is defined in Section 1.1(vv)
of the Work Letter.
Tenant Improvement Cost : Is defined in
Section 1.1(ww) of the Work Letter.
Tenant Improvements : Is defined in
Section 1.1(yy) of the Work Letter.
Tenant Indemnities : Is defined in Article 34
hereof.
Tenant’s Additional Rental : Is defined in
Article 8.2 hereof.
Tenant’s Address : (See Article 1.1.4 ) or
to such other address as Tenant may designate from time to time by
written notice to Landlord in accordance with
Article 30 hereof.
Tenant’s Architect : The architect or interior
design consultant Tenant designates by written notice to Landlord
in accordance with Article 30 hereof.
Tenant’s Forecast Additional Rental : Is defined in
Article 8.1 hereof.
Tenant’s Notice : Is defined in Article 49.1
hereof.
Tenant’s Response : Is defined in Article
47.1.1 hereof.
Ten Year Treasury Note Rate : A variable rate of interest
equal to the Ten Year U.S. Treasury Constant Maturity Rate as
published from time to time by the U.S. Department of the
Treasury.
12
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Termination Date : Is defined in
Article 4.2 hereof.
Terminated Space : Is defined in Article 4.2
hereof.
Turnover Date : Is defined in Article 5.1.2
hereof.
Valuing Brokers : Is defined in Article 45.2
hereof.
Work Letter : That certain Work Letter attached hereto as
Exhibit D .
2. Building and Demised Premises .
2.1 Building . The Building in which the Demised Premises
shall be located shall be constructed by Landlord on the Real
Property at the location depicted on the Conceptual Site Plan
attached hereto as Exhibit B and in accordance with this
Lease and all exhibits hereto. Prior to January 31, 2007,
Tenant shall have the right to expand or contract the Building by
up to two (2) floors during the Building design phase as set
forth in the Work Letter. The floor area for the Building shall be
calculated based on the approved design by Tenant as set forth in
the Work Letter.
2.2 Demised Premises . The Net Rentable Area within the
Demised Premises and the Net Rentable Area of the Building shall be
measured by Landlord or its designated agent using the Computer
Aided Drafting and Design (" CADD ") system based on BOMA
Z65.1 1996 requirements (as opposed to field surveys) as soon as
practicable during or after the construction of the Building.
Landlord shall notify Tenant in writing of Landlord’s
determination of such measurements and the calculation of the Net
Rentable Area within the Demised Premises and the Net Rentable Area
of the Building promptly following such measurements, and such
measurements shall be confirmed by Landlord and Tenant pursuant to
the provisions of Article 2.3 hereof. The parties agree that
if there arises a dispute as to any rights, obligations or
abatements arising under Articles 2.1 , 2.2 or
2.3 , such dispute shall first be submitted to non-binding
mediation for resolution, the format for such mediation to be
reasonably acceptable to both parties. The costs of such
non-binding mediation shall be shared equally by Landlord and
Tenant.
2.3 Confirmation of Demised Premises . In accordance with
Article 4 and Article 6 , and in addition to those
items set forth in Article 4 , Landlord and Tenant agree to
execute the Supplemental Agreement and include the following:
2.3.1 Confirm the size, location and configuration of the
Demised Premises and attach "as-built" construction documents for
the Base Building Work and Tenant Improvements; and
2.3.2 Confirm the Net Rentable Area within the Demised Premises
and the Net Rentable Area of the Building. All measurements shall
be made in accordance with Article 2.2 ; provided, however,
that either party shall have the right,
13
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
within thirty (30) days following the
delivery of written notice of such measurement to Tenant, to
request field surveys by the Project Architect (the cost of which
shall be paid solely by the requesting party), and, if such field
surveys reveal that the total Net Rentable Area within the Demised
Premises or the Net Rentable Area of the Building, as determined
based upon Landlord’s CADD measurements and BOMA Z65.1 1996
requirements, was incorrect by more than one-half of one percent
(0.5%), then the Net Rentable Area within the Demised Premises or
the Net Rentable Area of the Building, as the case may be, shall be
corrected based upon the measurements determined by the Project
Architect; provided, however, that within thirty (30) days
following the delivery to Tenant of written notice of the Project
Architect’s measurements, Tenant, at its sole cost and
expense, may elect to have Tenant’s Architect determine such
measurements. If one of the parties elected to have the Project
Architect perform field surveys and the Net Rentable Area within
the Demised Premises or the Net Rentable Area of the Building, as
determined based upon Tenant’s Architect’s
measurements, differs at all from the total Net Rentable Area
within the Demised Premises or the Net Rentable Area of the
Building based upon the Project Architect’s measurements,
then the final determination of the Net Rentable Area within the
Demised Premises and the Net Rentable Area of the Building shall be
made based on the measurements chosen by an independent architect
jointly selected by Landlord and Tenant, provided that such
independent architect shall be limited to choosing either
(i) the Project Architect’s measurements or
Landlord’s CADD measurements, as the case may be, or
(ii) the measurements of Tenant’s Architect, whichever
measurements such independent architect shall believe to be more
nearly correct. The fees and expenses of the independent architect
shall be shared equally by Landlord and Tenant. Landlord and Tenant
do hereby agree that the architects referred to in this Article
2.3.2 shall make only measurements of the respective areas and
the parties will determine together the final Net Rentable Area
within the Demised Premises and the final Net Rentable Area of the
Building based upon the provisions of this Lease.
2.4 Landlord Reservations .
2.4.1 Tenant shall permit Landlord to install, use and maintain
pipes, ducts and conduits within or through the Demised Premises,
or through the walls, columns and ceilings therein, provided that
the installation work is performed at such times and by such
methods as will not reduce the Net Rentable Area within the Demised
Premises or unreasonably interfere with Tenant’s use and
occupancy of the Demised Premises or damage the appearance thereof.
Any plans and specifications showing such work and the contractor
performing such work, now or in the future, shall have
Tenant’s Approval, such Approval not to be unreasonably
withheld, conditioned or delayed, and such contractor shall carry
such insurance as would reasonably be expected for the work being
conducted with endorsements naming Tenant as an additional insured
thereunder as its interests may appear.
2.4.2 The exercise of any right reserved to Landlord under this
Article 2.4 shall not constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to
any abatement or diminution of Rent (except as specifically
provided herein), or relieve Tenant from any of its obligations
under this Lease, or impose any liability upon Landlord or
Landlord’s agents.
14
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
3. Security Deposit .
None required.
4. Term .
4.1 Lease Term . The term of this Lease (the " Lease
Term ") shall commence on the Full Rent Commencement Date and,
unless sooner terminated or extended as provided in this Lease,
shall end on the Lease Expiration Date; provided, however, that the
Lease Term shall be subject to extension as provided in Article
45 hereof. Promptly after obtaining all information required to
be included in the Supplemental Agreement, Landlord and Tenant
shall execute the Supplemental Agreement. Notwithstanding the
foregoing, upon the Delivery Date or Turnover Date, as the case may
be, for any floor of the Building or such earlier access date
provided for in Article 5.3 hereinafter, Tenant and
Landlord, where applicable, shall abide by the terms and conditions
of this Lease, as if the Lease Term had already commenced, except
that Tenant shall have no obligation to pay Rent or any portion
thereof until it becomes due in accordance with Article 6
hereof.
4.2 Early Termination . Provided Tenant is not then in
default beyond any applicable notice and cure periods under the
terms of this Lease, beginning on [***], Tenant shall have the
on-going right to terminate this Lease. Tenant shall deliver to
Landlord prior written notice of Tenant’s intent to terminate
the Lease, and termination shall become effective on the date that
is [***] ([***])[***] after Tenant’s delivery of such notice
(the " Termination Date "). Tenant shall have the right to
terminate this Lease with respect to all or any portion of the
Demised Premises (the " Terminated Space "), provided,
however, that if Tenant terminates this Lease with respect to only
a portion of the Demised Premises, the space being terminated must
be on a full floor basis. At the time Tenant delivers its notice of
early termination to Landlord and as a pre-condition to the
effectiveness of such notice, Tenant shall pay to Landlord an
amount equal to [***], both dates being inclusive for purposes of
calculating [***]. The cost of all unamortized Tenant Improvements
and brokerage commissions are embedded in [***] and therefore are
embedded into [***]. Tenant shall also be responsible for all [***]
incurred in connection with such termination.
4.3 Contraction Right .
4.3.1 Provided Tenant is not then in default beyond any
applicable notice and cure periods under the terms of this Lease,
beginning on [***], Tenant shall have a one-time right (the "
First Contraction Right ") to release back to Landlord
either (a) [***] percent ([***]%) of the Demised Premises, or
(b) [***] ([***]) [***] of the Demised Premises, provided,
however, that if Tenant elects to release [***] percent ([***]%) of
the Demised Premises, the Contraction Space (as hereinafter
defined)
15
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
shall be in a configuration that leaves Landlord
with space considered by Landlord to be reasonably leasable. Tenant
shall deliver to Landlord prior written notice of Tenant’s
intent to contract the Demised Premises, and such contraction shall
become effective on the date that is [***] ([***])[***] after
Tenant’s delivery of such notice.
4.3.2 Subject to the same terms and conditions as set forth in
Article 4.3.1 above and provided the Net Rentable Area
of the Building, as finally determined pursuant to Article
2.2 hereof, is at least [***] percent ([***]%) of [***]
beginning on the [***], Tenant shall again have a one-time right
(the " Second Contraction Right ") to release back to
Landlord either (a) [***] percent ([***]%) of the Demised
Premises, or (b) [***] ([***])[***] of the Demised
Premises, provided, however, that if Tenant elects to release [***]
percent ([***]%) of the Demised Premises, the Contraction Space
shall be in a configuration that leaves Landlord with space
considered by Landlord to be reasonably leasable. Notwithstanding
the foregoing, in the event that Tenant does not exercise its First
Contraction Right and the Net Rentable Area of the Building, as
finally determined pursuant to Article 2.2 hereof, is at
least [***] percent ([***]%) of [***], as a part of its Second
Contraction Right, Tenant shall have the right to release back to
Landlord either (a) [***] percent ([***]%) of the Demised
Premises, or (b) [***] ([***]) [***] of the Demised Premises;
provided, however, that if Tenant elects to release [***] percent
([***]%) of the Demised Premises, the Contraction Space shall be in
a configuration that leaves Landlord with space considered by
Landlord to be reasonably leasable.
4.3.3 Any such released space shall be deemed " Contraction
Space " for purposes hereof. Promptly after receipt of
Tenant’s notice of exercise of either the First Contraction
Right or the Second Contraction Right, Landlord shall prepare, or
cause to be prepared, and submit to Tenant preliminary plans for
the construction of the demising walls and other necessary
improvements consistent herewith, which preliminary plans shall
include a proposed schedule for such construction. Within
ten (10) business days after receipt of such preliminary
plans, Tenant will either approve the same in writing or notify
Landlord in writing of Tenant’s commercially reasonable
objections. Upon receipt of Tenant’s notice of objections,
Landlord will prepare or cause to be prepared revised preliminary
plans to address such objections as Landlord deems commercially
reasonable, and Landlord shall submit the revised preliminary plans
to Tenant. Upon submittal to Tenant of the revised preliminary
plans, and upon submittal of any further revisions, the procedures
described above will be repeated until the preliminary plans are
approved by Tenant. If the parties do not resolve such objections
within thirty (30) business days from the date of
Tenant’s initial receipt of the preliminary plans, the
parties hereto agree to submit their dispute to non-binding
mediation. If Tenant does not respond to Landlord in writing within
any such ten (10) business day period, the preliminary plans
for the proposed construction shall be deemed approved by Tenant.
All costs and expenses for the preparation of such plans and for
the construction in accordance therewith shall be included in
Operating Expenses (solely chargeable to Tenant). In addition, such
construction referenced in this Article 4.3.3 shall not
avail Tenant of any abatement of Rent as provided in Article
15 hereof, provided such
16
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
plans are adhered to, subject to Excusable Delays
and Tenant Delays. The Contraction Space shall be measured and
calculated by Landlord using BOMA Z65.1 1996 standards (such
reasonable fee to be included in Operating Expenses) for measuring
office space and shall be subject to verification by Tenant’s
Architect.
4.3.4 Upon the effective date of the release of such Contraction
Space, Tenant shall pay Landlord an amount equal to [***]
(including [***] and any [***]) attributable to the Contraction
Space and brokerage commissions paid by Landlord on account of this
Lease proportionate to such Contraction Space ([***] percent
[***]%). Tenant shall also be responsible for all [***] in
connection with such contraction.
4.3.5 In the event that Tenant elects to exercise either the
First Contraction Right or the Second Contraction Right, Landlord
and Tenant shall promptly execute an amendment to this Lease
confirming same. Such amendment shall confirm the total square feet
of the Net Rentable Area within the Demised Premises, the Base
Rental and Tenant’s Forecast Additional Rental as adjusted to
reflect the contraction of the Demised Premises.
4.3.6 In the event Tenant exercises either the First Contraction
Right or Second Contraction Right, the selection by Landlord of
office tenants to occupy the Contraction Space shall be subject to
the requirements of Articles 57.1.2 and 57.3 , but
shall not be subject to Tenant’s Approval so long as each
such office tenant is reasonably considered to be of a quality
consistent with other first-class tenants in Class "A" office
buildings in downtown Richmond, Virginia.
4.3.7 Any reduction in the Demised Premises shall be deemed to
be reduced pursuant to either the First Contraction Right or the
Second Contraction Right, as applicable, and not pursuant to
Tenant’s early termination right provided in Article
4.2 hereof, unless otherwise explicitly set forth by Tenant in
writing.
5. Possession .
5.1 Delivery Date and Commencement Date .
5.1.1 If Tenant elects to use a contractor other than
Landlord’s contractor (for purposes herein "Tenant’s
contractor") to construct the Tenant Improvements, then this
Article 5.1.1 shall set forth the Commencement Date for this
Lease and each Floor Commencement Date. The Building shall be
turned over to Tenant in phases (in accordance with the phasing
schedule set forth below) upon the Substantial Completion of the
Base Building Work for each floor within such phase of the Building
(the " Tenant Contractor Phased Delivery of the Building ").
The actual date Tenant’s contractor is granted access to a
floor to complete the Tenant Improvements in accordance with the
terms of this Lease shall be known as such floor’s "
Delivery Date ". The " Commencement Date " of this
Lease shall occur upon the earlier to occur of either (a) the
date that is six (6) months after the Delivery Date of Phase I
(which anticipated date is set forth below and as provided in the
immediately preceding sentence), i.e. , the
17
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
date that is six (6) months after the date
the initial phase (as set forth below) is turned over by Landlord
to Tenant in accordance with the terms of this Lease, or
(b) the date Tenant occupies and begins its beneficial
interest in any floor of the Building (the " Open for Business
Date "), i.e. , the date Tenant opens for business on
any floor of the Building. Thereafter, and notwithstanding the
foregoing, the commencement date for each floor of the Building (a
" Floor Commencement Date ") shall continue to occur on a
floor by floor basis in accordance with the phasing schedule set
forth below and the terms of this Lease until such time as this
Lease has commenced with respect to one hundred percent
(100%) of the Demised Premises. The Tenant Contractor Phased
Delivery of the Building shall occur as follows such that access
shall be granted to Tenant’s contractor for purposes of
construction of the Tenant Improvements within such
Phase:
| |
|
|
|
Phase
|
|
Anticipated
Delivery Date
|
|
Phase I — Floors B1 &
B2
|
|
March 1, 2009
|
|
Phase II — Floors 1, 2 & 3
|
|
April 1, 2009
|
|
Phase III — Floors 4, 5 & 6
|
|
May 15, 2009
|
|
Phase IV — Floors 7 & 8
|
|
June 15, 2009
|
|
Phase V — Floors 9 & 10
|
|
July 1, 2009
|
5.1.2 If Tenant elects to use Landlord’s
Contractor to construct the Tenant Improvements, then this
Article 5.1.2 shall set forth the Commencement Date for this
Lease and each Floor Commencement Date. The Building shall be
turned over to Tenant in phases (in accordance with the phasing
schedule set forth below) upon the Substantial Completion of the
Base Building Work and the Tenant Improvements for each floor
within such phase of the Building (the " Landlord Contractor
Phased Delivery of the Building "). The actual date Tenant is
granted access to a floor with the Base Building Work and the
Tenant Improvements Substantially Completed in accordance with the
terms of this Lease shall be known as such floor’s "
Turnover Date ". The " Commencement Date " of this
Lease shall occur upon the earlier to occur of either (a) the
date that is sixty (60) days after the Turnover Date of
Phase I (which anticipated date is set forth below and as
provided in the immediately preceding sentence), i.e. , the
date that is sixty (60) days after the initial phase (as set
forth below) is turned over by Landlord to Tenant in accordance
with the terms of this Lease, or (b) the Open for Business
Date for any floor in the Building. Thereafter, and notwithstanding
the foregoing, each Floor Commencement Date shall continue to occur
on a floor by floor basis in accordance with the phasing schedule
set forth below and the terms of this Lease until such time as this
Lease has commenced with respect to one hundred percent
(100%) of the Demised Premises. The Landlord Contractor Phased
Delivery of the Building shall occur as follows:
| |
|
|
|
Phase
|
|
Anticipated
Turnover Date
|
|
Phase I — Floors B1 &
B2
|
|
July 1, 2009
|
18
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
| |
|
|
|
Phase II — Floors 1, 2 & 3
|
|
August 1, 2009
|
|
Phase III — Floors 4, 5 & 6
|
|
September 1, 2009
|
|
Phase IV — Floors 7 & 8
|
|
October 1, 2009
|
|
Phase V — Floors 9 & 10
|
|
November 1, 2009
|
5.1.3 Tenant shall have the right to reduce the
number of phases in either the Landlord Contractor Phased Delivery
of the Building or the Tenant Contractor Phased Delivery of the
Building, as applicable, so long as (i) the Delivery Date or
Turnover Date, as applicable, of such floors remain in sequential
order as set forth in the tables above, (ii) no floor is
required to be delivered prior to its referenced date set forth in
the tables above, and (iii) Tenant provides written
notification of such re-phasing to Landlord on or before
December 31, 2007.
5.1.4 Whether Tenant elects to use Landlord’s Contractor
or Tenant’s contractor, the failure of Tenant to take
possession of or to occupy a floor of the Building upon its timely
delivery in accordance with the above shall not serve to relieve
Tenant of its obligations arising for each floor or delay the
payment of Rent by Tenant for each floor, nor shall such failure
serve to extend the Lease Term.
5.1.5 If Tenant elects to use Tenant’s contractor to
complete the Tenant Improvements, upon delivery to Tenant by
Landlord of Phase I (as set forth in Article 5.1.1 ),
Tenant shall execute an agreement in a form mutually agreeable to
Tenant and Landlord whereby Tenant agrees, on its behalf and on
behalf of any of its agents, employees or contractors, to waive any
claim for damage to any Tenant Improvements or to any equipment of
Tenant and its authorized agents, employees and contractors that
may be caused by rain, water or other weather related causes prior
to the date the Building is water tight, as such date is provided
on the Approved Schedule, attached as Schedule C to the Work
Letter.
5.2 Acceptance . Upon each Floor Commencement Date,
Tenant shall be deemed to have agreed that Landlord, up to the time
of such occupancy, had performed all of its obligations hereunder
with respect to such floor, and that such floor, except for Punch
List Items, was in satisfactory condition as of the Floor
Commencement Date for such floor; provided, however, that Landlord
shall remain responsible for any damage caused to a floor
Substantially Completed and delivered to Tenant resulting from
Landlord’s Base Building Work or Tenant Improvement work, as
the case may be, being conducted in the Building. Subject to the
foregoing and except as may otherwise be expressly provided in the
Work Letter, Tenant shall accept each floor of the Building on its
respective Floor Commencement Date in its "AS-IS" condition,
subject to all applicable laws, ordinances, regulations, covenants
and restrictions from any governmental authorities, and Landlord
shall have no obligation to perform or pay for any repair or other
work therein other than for the correction of latent defects,
warranty items or completion of Punch List Items.
19
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
5.3 Early Access .
5.3.1 If Tenant elects to use Landlord’s Contractor to
construct the Tenant Improvements, Tenant and its authorized
agents, employees and contractors shall, at all reasonable times
during the thirty (30) day period prior to the Turnover Date
for each floor as set forth in Article 5.1.2 , have the
right, at Tenant’s and Tenant’s agents’,
employees’ and contractors’ own risk, expense and
responsibility, to have access to such floor or space solely for
the purpose of preparing such floor for Tenant’s Open for
Business Date, subject to all applicable laws, ordinances,
regulations, covenants and restrictions from any governmental
authorities, and provided that in so doing Tenant shall not
unreasonably interfere with or delay the Base Building Work or
Tenant Improvements to be performed by Landlord’s Contractor
within such phase or floor or within any other floors within the
Building. In connection with Tenant’s early access rights,
Landlord covenants and agrees to provide Tenant and its authorized
agents, employees and contractors with access (i) within the
Building through such Building Commons Areas, including, without
limitation, hallways, loading docks and elevators within the
Building as are reasonably necessary to gain access to and from any
floor delivered to Tenant pursuant to this Article 5
and (ii) to and from the Building over and across the Project
Common Areas to any and all public rights of way sufficient for
Tenant to construct the Demised Premises, such access rights being
granted for the purposes of allowing Tenant to (A) complete
construction of the Tenant Improvements, if applicable,
(B) prepare to begin its beneficial interest in the Demised
Premises, i.e. , to open for business, and (C) obtain
necessary temporary or permanent certificates of occupancy. Subject
to the waivers of subrogation set forth in Article 17 , if,
upon Tenant’s use of any such Building Common Areas or
Project Common Areas, such Building Common Areas or Project Common
Areas are damaged in any way by Tenant or its authorized agents,
employees or contractors, Tenant shall be responsible for and
diligently repair any such damage as soon as practical.
5.3.2 If Tenant or its authorized agents, employees and
contractors is granted access to any portion of the Building prior
to the Turnover Date in accordance with this Article 5.3 ,
Tenant and its authorized agents, employees and contractors shall
each abide by the terms and conditions of this Lease, provided that
upon any such access by the Tenant or its agents, employees or
contractors, then (a) Tenant shall have no obligation to pay
the Rent or any portion thereof until it becomes due in accordance
with Article 6 and (b) this Lease shall not be deemed
to have commenced as a result of such access for purposes of
calculating the Lease Term.
5.4 Access .
5.4.1 Beginning on the Turnover Date or the Delivery Date for
any floor, as applicable, Landlord covenants and agrees to provide
Tenant and its authorized agents, employees and contractors with
access (i) within the Building through such Building Commons
Areas, including, without limitation, hallways, loading docks and
elevators within the Building as are reasonably necessary to gain
access to and from
20
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
any floor delivered to Tenant pursuant to this
Article 5 for the purposes intended, and (ii) to and
from the Building over and across the Project Common Areas to any
and all public rights of way sufficient for Tenant to construct,
occupy and use the Demised Premises and to obtain necessary
temporary or permanent certificates of occupancy, as applicable.
Subject to the waivers of subrogation set forth in Article
17 , if, upon Tenant’s use of any such Building Common
Areas or Project Common Areas, such Building Common Areas or
Project Common Areas are damaged in any way by Tenant or its
authorized agents, employees or contractors, Tenant shall be
responsible for and diligently repair any such damage as soon as
practical.
5.4.2 Landlord covenants and agrees to provide Tenant, its
officers, directors, agents (including without limitation
Tenant’s contractors), employees and invitees with safe
access to and from the Building to any and all public rights of way
sufficient for Tenant to occupy and use the Demised Premises.
6. Rental Payments .
6.1 Payment of Rent . Commencing on the Rent Commencement
Date and subject to apportionment and abatement as provided herein,
and continuing thereafter throughout the Lease Term, Tenant hereby
agrees to pay all Rent due and payable under this Lease. Base
Rental together with Tenant’s Forecast Additional Rental
shall be due and payable in twelve (12) equal monthly
installments in advance, on the first day of each calendar month
(subject to the phasing requirements for the payment of Base Rental
as set forth below), commencing on the Rent Commencement Date and
continuing thereafter throughout the Lease Term and any extensions
or renewals thereof. Tenant shall pay all Rent and other sums of
money as shall become due from and payable by Tenant to Landlord
under this Lease at the times and in the manner provided in this
Lease, without demand, notice, abatement, deduction, or set-off,
except as expressly set forth in this Lease.
6.2 Rent Commencement . The payment of Base Rental shall
commence and be phased in accordance with the following until the
Full Rent Commencement Date and thereafter shall continue for the
remainder of the Lease Term in accordance with the terms of this
Lease:
6.2.1 If Tenant elects to use Tenant’s contractor to
construct the Tenant Improvements, then this Article 6.2.1
shall set forth the Rent Commencement Date and the Base Rental
payable until the date that this Lease has commenced with respect
to one hundred percent (100%) of the Demised Premises (the "
Full Rent Commencement Date "). Tenant shall pay a pro rata
portion of the Base Rental on the Commencement Date (the " Rent
Commencement Date "), such pro rata portion being equal to the
product of the Base Rental multiplied by a fraction, the numerator
being the Net Rentable Area of those floors of the Building for
which this Lease has commenced as of the Commencement Date pursuant
to Article 5.1.1 and as set forth below and the divisor
being the Net Rentable Area of the Building. Thereafter, on the
first day of each
21
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
month and continuing until the Full Rent
Commencement Date, Tenant shall pay a pro rata portion of the Base
Rental, such pro rata portion being equal to the product of the
Base Rental multiplied by a fraction, the numerator being the Net
Rentable Area of those floors of the Building for which this Lease
has commenced pursuant to Article 5.1.1 and as set forth
below as of the date the Base Rental is due and payable and the
divisor being the Net Rentable Area of the Building.
Notwithstanding anything herein to the contrary, solely for
purposes of this Article 6.2.1 this Lease shall not have
commenced with respect to the Net Rentable Area for any floor until
the date that all of the following events shall have occurred:
(i) with respect to such floor, the Building systems
(including without limitation the HVAC, elevators and life safety
systems) are Substantially Complete and fully operational for
Tenant’s intended use; (ii) with respect to such floor,
all finishes for the Base Building Work are Substantially Complete,
(iii) the lobby, a pro-rata portion of the Building Parking
Facilities and all Building Common Areas and Project Common Areas
reasonably necessary to access such floor or phase are
Substantially Complete; and (iv) the Site Work is
Substantially Complete on or before the Site Work Complete date set
forth on Schedule C of the Work Letter. For purposes of this
Article 6.2.1 , the Approved Budget shall be the amount
used to determine Base Rental until the Full Rent Commencement Date
(the " Estimated Base Rental "). Within one hundred
twenty (120) days of the Full Rent Commencement Date, Landlord
shall provide Tenant with the actual determination of Base Rental,
pursuant to Article 7 hereof, and if such Base Rental amount
is different than the Estimated Base Rental, the parties shall
adjust the Rent for the next month to account for such difference
and the amount that would then have otherwise been due and payable
by Tenant under this Article 6.2.1 . All charges that could
be characterized as Tenant’s Additional Rental for purposes
hereof incurred by Landlord’s Contractor prior to the Full
Rent Commencement Date shall be deemed a part of Landlord’s
Costs.
6.2.2 If Tenant elects to use Landlord’s Contractor to
construct the Tenant Improvements, then this Article 6.2.2
shall set forth the Rent Commencement Date and the Base Rental
payable until the Full Rent Commencement Date. Tenant shall pay a
pro rata portion of the Base Rental on the Commencement Date (the "
Rent Commencement Date "), such pro rata portion being equal
to the product of the Base Rental multiplied by a fraction, the
numerator being the Net Rentable Area of those floors of the
Building for which this Lease has commenced as of the Commencement
Date pursuant to Article 5.1.2 and as set forth below and
the divisor being the Net Rentable Area of the Building.
Thereafter, on the first day of each month and continuing until the
Full Rent Commencement Date, Tenant shall pay a pro rata portion of
the Base Rental, such pro rata portion being equal to the product
of the Base Rental multiplied by a fraction, the numerator being
the Net Rentable Area of those floors of the Building for which
this Lease has commenced pursuant to Article 5.1.2 and
as set forth below, as of the date the Base Rental is due and
payable, and the divisor being the Net Rentable Area of the
Building. Notwithstanding anything herein to the contrary, solely
for purposes of this Article 6.2.2 this Lease shall not have
commenced with respect to the Net Rentable Area for any floor until
the date that all of the following events shall have occurred:
(i) with respect to such floor, the Building systems
(including without limitation the
22
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
heating, ventilating and air conditioning ("
HVAC "), elevator, and life safety systems) are
Substantially Complete and fully operational for Tenant’s
intended use; (ii) with respect to such floor, the finishes
for each floor of the Building are Substantially Complete and the
protective materials have been removed; (iii) the lobby, a
pro-rata portion of the Building Parking Facilities and all
Building Common Areas and Project Common Areas necessary to access
such floor or phase are Substantially Complete ; (iv) the Site
Work is Substantially Complete (subject to seasonal plantings and
Punch List Items); and (iv) with respect to such floor, a
Certificate of Occupancy (whether temporary or permanent, as the
case may be) has been issued. For purposes of this Article
6.2.2 , the Approved Budget shall be the amount used to
determine Base Rental until the Full Rent Commencement Date (the "
Estimated Base Rental "). Within one hundred
twenty (120) days of the Full Rent Commencement Date, Landlord
shall provide Tenant with the actual determination of Base Rental,
pursuant to Article 7 hereof, and if such Base Rental
amount is different than the Estimated Base Rental, the parties
shall adjust the Rent for the next month to account for such
difference and the amount that would then have otherwise been due
and payable by Tenant under this Article 6.2.2 . All charges
that could be characterized as Tenant’s Additional Rental for
purposes hereof incurred by Landlord’s Contractor prior to
the Full Rent Commencement Date shall be deemed a part of
Landlord’s Cost.
6.3 Proration of Rent . If the Rent Commencement Date is
other than the first day of a calendar month or if this Lease
terminates on other than the last day of a calendar month, then the
installments of Base Rental and Tenant’s Forecast Additional
Rental for such month or months shall be prorated on a daily basis
and the installment or installments so prorated shall be paid in
advance. Also, if the Rent Commencement Date occurs on other than
the first day of a calendar year, or if this Lease is terminated on
other than the last day of a calendar year, Tenant’s
Additional Rental shall be prorated for such commencement or
termination year, as the case may be, by multiplying such
Tenant’s Additional Rental by a fraction, the numerator of
which shall be the number of days during the commencement year from
and after the Rent Commencement Date, or the number of days during
the termination year from and after January 1 of the
termination year to the termination date, as the case may be, and
the denominator of which shall be three hundred sixty-five (365),
and the calculation described in Article 8 hereof shall
be made as soon as possible after the termination of this Lease,
Landlord and Tenant hereby agreeing that the provisions relating to
said calculation shall survive the termination of this Lease.
7. Base Rental .
7.1 Computation of Base Rental . " Base Rental "
shall be structured on a [***], shall be equal to the product of
the Landlord’s Cost (on an open book basis) and the Rent
Constant, and shall be payable in accordance with the terms of
Articles 6 and 10 . Beginning on the first
anniversary of the Full Rent Commencement Date and continuing on
every anniversary of the Full Rent Commencement Date thereafter
during the primary Lease Term, Base Rental shall escalate [***]
percent ([***]%) each Lease Year over the previous Lease Year.
23
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
7.2 Reductions in Base Rental .
Notwithstanding anything else contained herein to the contrary, in
the event Tenant exercises its early termination right set forth in
Article 4.2 , First Contraction Right or Second Contraction
Right, Base Rental shall be reduced pro rata by that portion of the
Base Rental attributable to the Contraction Space or the Terminated
Space.
8. Additional Rental .
8.1 Tenant’s Forecast Additional Rental . For
purposes of this Lease, " Tenant’s Forecast Additional
Rental " shall mean Landlord’s budgeted estimate of
Operating Expenses and Tenant’s Additional Rental (both as
hereinafter defined) for the coming calendar year or portion
thereof, such forecast to be provided to Tenant annually for its
prior review and approval and in detail acceptable to Tenant acting
reasonably. If at any time it appears to Landlord, in
Landlord’s reasonable judgment, that Tenant’s
Additional Rental for the current calendar year will increase from
Landlord’s estimate of the coming calendar year by more than
[***] percent ([***]%), Landlord shall have the right to revise,
but not more than once per year (but Landlord shall have the right
to reduce such estimate as many times within any year as Landlord
chooses), by written notice to Tenant, its estimate for such year,
and subsequent payments by Tenant for such year shall be based upon
such revised estimate of Tenant’s Forecast Additional Rental;
provided, however, that the details of such revised estimate have
been made available to Tenant for its prior review and approval in
detail acceptable to Tenant acting reasonably. Failure to make a
revision contemplated by the immediately preceding sentence shall
not prejudice Landlord’s right to collect the full amount of
Tenant’s Additional Rental. Prior to the Full Rent
Commencement Date and thereafter prior to the beginning of each
calendar year during the Lease Term, including any extensions
thereof, Landlord shall present to Tenant a written statement of
Tenant’s Forecast Additional Rental for such calendar
year.
8.2 Tenant’s Additional Rental . For purposes of
this Lease, " Tenant’s Additional Rental " shall,
subject to Article 6 , mean for each calendar year, the
Operating Expenses multiplied by a fraction, the numerator of which
is the Net Rentable Area within the Demised Premises and the
denominator of which is the Net Rentable Area of the Building.
8.3 Annual Reconciliation . Within one hundred twenty
(120) days after the end of each calendar year in which
Tenant’s Additional Rental is payable hereunder or as soon
thereafter as administratively possible if such delay is caused by
events reasonably considered beyond Landlord’s control,
Landlord shall provide Tenant a statement showing all major cost
categories of the actual Operating Expenses for said calendar year,
and a statement prepared by Landlord comparing Tenant’s
Forecast Additional Rental with Tenant’s Additional Rental.
In the event Tenant’s Forecast
24
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
Additional Rental exceeds Tenant’s
Additional Rental for said calendar year, Landlord shall, at
Tenant’s option, either refund the amount of such excess to
Tenant or credit such amount against Rent next due hereunder. In
the event that Tenant’s Additional Rental exceeds
Tenant’s Forecast Additional Rental for said calendar year,
Tenant shall pay Landlord, within thirty (30) days of receipt
of the written statement, an amount equal to such
difference.
8.4 Books and Records . At any time within one hundred
eighty (180) days of Tenant’s receipt of
Landlord’s statement showing the annual reconciliation of
Operating Expenses for each calendar year during the Lease Term,
Tenant shall have the right to cause an audit of Landlord’s
books and records pertaining to the calculation of Operating
Expenses and Rent for such calendar and/or for the previous
calendar year; provided that Tenant shall give Landlord not less
than ten (10) business days prior written notice of any such
audit. Landlord shall keep and maintain its books and records for
any calendar year during the Lease Term for a minimum period of two
(2) years. Tenant’s audit of Landlord’s books and
records relating to either or both of the prior two
(2) year’s Operating Expenses and Rent shall occur at a
mutually convenient time during reasonable business hours at
Landlord’s office where Landlord’s books and records
are maintained. Tenant agrees to provide Landlord copies of any and
all reports, summaries, conclusions, and other results of such
audit within thirty (30) days following Tenant’s receipt
thereof. If Landlord’s calculation of Tenant’s
Additional Rental for the audited calendar year was incorrect, then
Tenant shall be entitled (i) to a prompt refund of such
overpayment (together with interest on the amount of such
overpayment from the date of Landlord’s annual reconciliation
of Operating Expenses until payment of such refund, at the Prime
Rate) and (ii) the reasonable cost of Tenant’s audit
fees or consultant fees if the corrected Tenant’s Additional
Rental is less than ninety-seven percent (97%) of
Landlord’s calculation of Tenant’s Additional Rental;
or Tenant shall promptly pay to Landlord the amount of any
underpayment, as the case may be. If Tenant is not the only tenant
in the Building, Tenant and Tenant’s consultant shall keep
the results of any such audit confidential as to all parties other
than Landlord, and shall enter into a written confidentiality
agreement prior to conducting such audit at Landlord’s
request. For purposes of calculating Tenant’s Proportionate
Share of Operating Expenses, a year shall mean a calendar year
except the first year, which shall begin on the Commencement Date
and end on December 31 st
of the year in which the Commencement Date occurred
(the " Base Year "), and the last year, which shall end on
the Lease Expiration Date.
9. Operating Expenses .
9.1 Description of Operating Expenses . " Operating
Expenses " shall mean all Operating Costs (as hereinafter
defined) incurred by Landlord for the Project. With respect to
Operating Costs that Landlord allocates to the entire Project (
i.e. , expenses related to the Project Common Areas), the
portion allocated to the Building shall be based upon GAAP.
Landlord may reasonably adjust Landlord’s allocation of such
expenses to the Building in the future for changes in the physical
size of the Building or the Project. Landlord’s good faith
projection of Operating Expenses (which
25
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
shall not limit Landlord’s rights pursuant
to Article 8 hereof or this Article 9 ) for the
Base Year is estimated to be [***] Dollars ($[***]) per square foot
of Net Rentable Area. This estimate of Operating Expenses is only
an estimate, and Landlord makes no guaranty or warranty that such
estimate will be accurate.
9.2 Operating Costs . For the purposes of this Lease, "
Operating Costs " shall mean all actual expenses, costs and
disbursements (but not specific costs billed to specific tenants of
the Building) of every kind and nature, computed on an accrual
basis, relating to or incurred or paid by Landlord or its
designated agent after the Full Rent Commencement Date in
connection with the management, operation, repair and maintenance
of the Project only, and as hereinafter noted, appropriately
allocated to the Building according to GAAP, including, but not
limited to, the following:
9.2.1 appropriately allocated wages, salaries and other costs of
all on-site employees engaged in the operation, management, or
access control of the Building, including taxes, insurance and
benefits relating to such employees, but excluding employees above
the grade of Building or Property Manager (or whatever title
represents the on-site management representative primarily
responsible for management of the Building) and also only to the
extent such wages and salaries are directly attributable to the
personnel contributing to the maintenance, operation, repair and
services of the Building;
9.2.2 appropriately allocated costs of all supplies, tools,
equipment and materials (whether purchased or leased) used directly
in the operation, management, maintenance and access control of the
Building;
9.2.3 the cost of all utilities for the Building, including but
not limited to the cost of electricity, gas, water, sewer services
and power for heating, lighting, air conditioning and
ventilating;
9.2.4 the cost of all maintenance and service agreements for the
Building and the equipment therein, including but not limited to
security service, garage operators, window cleaning, elevator
maintenance, janitorial service, landscaping maintenance and
reasonable and customary landscaping replacement;
9.2.5 the cost of repairs and general maintenance of the
Building (except as excluded in Article 9.3 hereof);
9.2.6 amortization charges (including reasonable financing
charges actually incurred) of the cost of acquisition and/or
installation of capital improvements to the Building, the Building
Parking Facilities and the Project Common Areas (including security
and energy management equipment), amortized over their respective
useful lives, but only to the extent of documented reductions in
Operating Costs. Landlord shall provide Tenant with reasonable
evidence of actual Operating Costs saved by such capital
improvements prior to including the amortized costs thereof in the
Operating Costs and notwithstanding the foregoing, the annual
amortization amount of such capital improvements shall not exceed
the documented Operating Costs saved;
26
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
9.2.7 the cost of casualty, rental abatement
(provided such insurance does not exceed a period of two
(2) years) and liability insurance, subject to
Article 13.2.8 , applicable only to the Building, the
Project Common Areas and Landlord’s personal property used in
connection therewith and provided that if there are ever
substantial rate increases for such insurance policies, Landlord
and Tenant shall consult with one another and use commercially
reasonable efforts to control the cost of such
insurance;
9.2.8 appropriately allocated cost of trash and garbage removal,
recycling service in the Building, vermin extermination, and snow,
ice and debris removal;
9.2.9 reasonable accounting and legal fees, but only to the
extent incurred in connection with reducing or attempting to reduce
(subject to Tenant’s reasonable approval) Operating
Costs;
9.2.10 all taxes, assessments and governmental charges, whether
or not directly paid by Landlord, whether federal, state, county or
municipal and whether they be by taxing districts or authorities
presently taxing the Project or by others subsequently created or
otherwise, and any other taxes and assessments attributable to the
Project or its operation (and the reasonable costs of contesting
any of the same), including business license taxes and fees payable
by Landlord in respect of the operation of the Building, the
Building Parking Facilities and the Project Common Areas
(collectively, " Taxes "), excluding, however,
(i) taxes and assessments imposed on the personal property of
the tenants of the Building; (ii) taxes imposed on the
leasehold improvements of tenants of the Building (but only if and
to the extent the applicable taxing authority separately assesses
such leasehold improvements); (iii) federal and state taxes on
income; (iv) death taxes; (v) franchise taxes;
(vi) any taxes (other than business licenses taxes and fees)
imposed or measured on or by the income of Landlord from the
operation of the Building or imposed in connection with any sale of
the Building to a third party, and; (vii) all real estate
taxes credited to Landlord under any local real estate tax
abatement program. At the request of Tenant, Landlord will provide
Tenant with copies of all assessments, tax statements, etc.
, received by Landlord and Tenant shall have the right to contest
or direct Landlord to contest, any such assessments or taxes and
each party will cooperate with the other in such contests;
9.2.11 the cost of operating the on-site management office for
the Project, including the cost of office supplies, telephone
expenses and non-capital investment equipment; and
9.2.12 a market-based management fee for a Class "A", corporate
office environment in downtown Richmond, Virginia.
27
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
9.3 Exclusions From Operating Costs . For
purposes of this Lease, and notwithstanding anything in any other
provision of this Lease to the contrary, " Operating Costs "
shall not include the following:
9.3.1 the cost of any special work or service performed for any
tenant (including Tenant) at such tenant’s cost or in excess
of the Building Standard Services including, but not limited to,
overtime HVAC costs, to the extent such excess costs are charged
separately to other Building tenants;
9.3.2 costs incurred to remedy structural and other latent
defects in original construction materials or installations, to pay
fines associated with or remedy conditions or improvements not in
compliance with applicable laws, statutes, rules, regulations or
ordinances of governmental authorities not caused by or through
Tenant, or to remove or remediate Hazardous Substances from the
Project not present as a result of the acts or omissions of Tenant
or Tenant’s employees, agents or contractors (excluding
Landlord, Landlord’s Contractor or its or their
subcontractors or agents when acting on behalf of Tenant in such
capacity);
9.3.3 compensation paid to officers and executives of
Landlord;
9.3.4 the cost of any items for which Landlord is reimbursed by
insurance, condemnation or otherwise, less any reasonable
deductible amount, if any;
9.3.5 the cost of any additions, changes, replacements and other
items which are made in order to prepare for a new tenant’s
occupancy;
9.3.6 the cost of repairs incurred by reason of fire or other
casualty or condemnation to the extent that (a) Landlord is
compensated therefor through the proceeds of insurance or
condemnation awards, less any reasonable deductible;
(b) Landlord failed to obtain insurance against such fire or
casualty, if such insurance was required to be carried by Landlord
under the terms of this Lease, against a risk of such nature at the
time of same; or (c) Landlord is not fully compensated
therefor due to the co-insurance provisions of its insurance
policies on account of Landlord’s failure to obtain a
sufficient amount of coverage against such risk;
9.3.7 insurance premiums to the extent Landlord may be directly
reimbursed therefor;
9.3.8 interest on debt or amortization payments on any mortgage
or deed of trust and rental under any ground lease or other
underlying lease;
9.3.9 any real estate brokerage commissions or other costs
incurred in procuring tenants or extending the terms of
tenants’ leases or any fee or other form of compensation in
lieu of such commission;
28
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
9.3.10 any media advertising or any other
advertising expenses incurred in connection with the marketing of
the Building or any rentable space therein;
9.3.11 rental payments for base building equipment such as HVAC
equipment and elevators ordinarily considered to be of a capital
nature;
9.3.12 any expenses for repairs or maintenance that are covered
by warranties and service contracts, to the extent such maintenance
and repairs are made at no cost to Landlord;
9.3.13 Landlord’s general overhead expenses and any legal,
accounting, or other professional or consulting fees and expenses,
except as otherwise provided by this Lease;
9.3.14 management fees other than as set forth in Article
9.2.12 ;
9.3.15 subject to Article 9.2.6 above, the cost of
alterations, capital improvements, equipment replacements, and
other items which under GAAP are properly classified as capital
expenditures;
9.3.16 any tenant work performed for, or alteration of space
leased to, Tenant or other tenants or occupants of the Building,
whether such work or alteration is performed for the initial
occupancy by such tenant or occupant or thereafter;
9.3.17 any cash or other consideration paid by Landlord on
account of, with respect to or in lieu of the work or alterations
described in Article 9.3.16 above;
9.3.18 depreciation or amortization, except as expressly
permitted in Article 9.2.6 above;
9.3.19 costs of enforcement of leases;
9.3.20 subject to Article 9.2.6 above, the cost of future
renovations to, or construction or demolition of, the Project or
any part thereof;
9.3.21 overtime HVAC costs or electricity costs if charged
separately to other Building tenants;
9.3.22 "takeover expenses" ( i.e. , expenses incurred by
Landlord with respect to space located in another building of any
kind or nature in connection with the leasing of space in the
Building);
9.3.23 any cost representing any amount paid for services or
materials to a related person, firm, or entity to the extent such
amount exceeds the amount that would be paid for such services or
materials at the then existing market rates to an unrelated person,
firm, or corporation;
29
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
9.3.24 if any taxes paid by Landlord and
previously included in Operating Costs are refunded, Landlord shall
promptly pay Tenant an amount equal to the amount of such refund
(less the reasonable expenses incurred by Landlord in obtaining
such refund) multiplied by Tenant’s proportionate share in
effect for the period to which such refund relates;
9.3.25 any improvement installed or work performed or any other
cost or expense incurred by Landlord, except as permitted in
Article 9.2.6 , in order to comply with the requirements for
the obtaining or renewal of a certificate of occupancy for the
Building or any space therein;
9.3.26 costs or expenses resulting from the negligence or
willful misconduct of Landlord or its agents, contractors or
employees;
9.3.27 painting or decorating other than in the Project Common
Areas;
9.3.28 repairs, alterations and general maintenance paid by
proceeds of insurance, and repairs necessitated by violations of
law in effect as of the date of this Lease;
9.3.29 any amounts payable by Landlord by way of indemnity or
for damages or which constitute a fine or penalty, including
interest or penalties for any late payment; or
9.3.30 repairs, alterations and general maintenance necessitated
by the negligence or willful misconduct of Landlord or its agents,
employees or contractors or repairs, alterations and general
maintenance necessitated by the negligence or willful misconduct of
any other tenant or occupant of the Project or of any of their
respective agents, employees, contractors, invitees or licensees
(excluding Tenant and its agents, employees, contractors, invitees
or licensees, except where Landlord, Landlord’s Contractor or
its or their subcontractors or agents when acting on behalf of
Tenant in such capacity).
10. Payments .
All payments of Rent under this Lease, including all payments of
Base Rental, Tenant’s Forecast Additional Rental and
Tenant’s Additional Rental, and other payments to be made to
Landlord, shall be made on a timely basis and shall be payable to
Landlord or as Landlord may otherwise designate in writing to
Tenant. All such payments shall at Tenant’s election be
either (a) mailed or delivered to Landlord’s Address or
at such other place as Landlord may designate from time to time in
writing or (b) made by wire transfer to Landlord in accordance
with Landlord’s wiring instructions, which shall be
30
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
supplied by Landlord to Tenant in writing. If
mailed, all payments shall be mailed in sufficient time and with
adequate postage thereon to be received by Landlord by no later
than the due date for such payment.
11. Interest .
Any Base Rental, Tenant’s Forecast Additional Rental, or
Additional Rent not paid by the [***] ([***]) day of the month for
which such amount is due, or any other payment if not made by the
[***] ([***]) day after the due date specified on any invoices from
Landlord (provided that in no event shall invoices from Landlord,
to the extent invoices are required hereunder and expressly
excluding Base Rental and Tenant’s Forecast Additional
Rental, include due dates less than thirty (30) days from
delivery of invoice unless otherwise specifically permitted herein)
shall bear interest at [***].
12. Use Rules; Hazardous Substances .
12.1 The Demised Premises shall be used for general office and
administrative business purposes, and other uses ancillary thereto,
including without limitation, data centers, laboratories, kitchens,
cafeterias, dining areas, break rooms, and other uses typical for a
Class "A", corporate headquarters environment intended primarily
for use of Tenant’s officers, employees, clients, guests and
its other invitees, in accordance with all applicable laws,
statutes, ordinances, rules and regulations of governmental
authorities and the Rules and Regulations. Tenant covenants and
agrees to abide by the Rules and Regulations in all respects as now
set forth and attached hereto and such reasonable rules and
regulations as may be hereafter promulgated in writing by Landlord
and noticed to Tenant. Landlord shall have the right at all times
during the Lease Term to publish and promulgate and thereafter
enforce such additional reasonable rules and regulations or changes
in the existing Rules and Regulations as Landlord may deem
necessary in its reasonable discretion to protect the
tenantability, safety, operation, and welfare of the Project.
Notwithstanding the foregoing, Landlord agrees that (i) all
such Rules and Regulations and any changes therein or additions
thereto shall be uniformly imposed on, and Landlord shall use all
reasonable efforts to enforce such Rules and Regulations against,
all tenants and occupants of the Project, (ii) Landlord shall
not waive enforcement of any of the same for the benefit of any
other tenant or occupant if such waiver would materially adversely
affect Tenant’s use and occupancy of, or access to or parking
associated with the Demised Premises or would materially adversely
affect the first-class nature of the Project (and, if any such
waiver would have any such material adverse affect, Tenant shall
have the right to require Landlord to enforce all such Rules and
Regulations against all other tenants and occupants of the
Project), (iii) such Rules and Regulations shall not
materially reduce, restrict or impair Tenant’s rights under
this Lease or increase Tenant’s monetary obligations, and
(iv) Landlord shall give Tenant reasonable prior written
notice before enforcement against Tenant of any changes in the
existing Rules and Regulations or any additions thereto properly
promulgated hereunder.
31
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
12.2 Hazardous Substances . Except for
Hazardous Substances (i) contained in products used by
Landlord or Tenant during construction of the Project,
(ii) used by Landlord or Tenant in de minimis
quantities for ordinary cleaning and office purposes and petroleum
products used as fuel in vehicles, heating systems and back up
generators or (iii) produced by Tenant or an affiliate of
Tenant and kept on the Demised Premises in de minimis
quantities for purposes of displaying such products in a display
case or for purposes of sending samples to Tenant’s customers
and potential customers (and, in the case of (i), (ii) and
(iii), then only in compliance with all applicable Environmental
Laws), Landlord and Tenant shall not permit or cause any party to
bring any Hazardous Substances upon the Project or the Demised
Premises or transport, store, use, generate, manufacture, dispose,
or release any Hazardous Substances on or from the Project or the
Demised Premises without the other’s prior written consent.
Landlord and Tenant, at their respective sole cost and expense,
shall operate their respective businesses in the Project in strict
compliance with all Environmental Laws and all requirements of this
Lease. Landlord agrees that all other tenants of the Project, at
such tenants’ sole cost and expense, shall be obligated to
operate their respective businesses in the Project in strict
compliance with all Environmental Laws. Landlord and Tenant shall
and hereby do agree to pay, protect, defend, indemnify and hold the
other harmless from and against any and all loss, damages, expenses
(including, without limitation, remediation, removal, repair,
corrective action, or cleanup expenses), and costs (including,
without limitation, actual attorneys’ fees, consultant fees
or expert fees and costs of litigation), fees, claims, costs and
liabilities arising out of or in any manner related to the
generation, storage, use, treatment or disposal of Hazardous
Substances at the Project by Landlord or Tenant or their respective
agents, employees or contractors. Notwithstanding the foregoing
sentence, Landlord and Tenant or their respective agents, employees
or contractors may use de minimis quantities or products
containing Hazardous Substances for ordinary cleaning and office
purposes, and then only in compliance with all applicable
Environmental Laws. Other than as disclosed in that certain
environmental assessment prepared by Draper Aden Associates,
Project No. R00507.13E, and dated October 2006 (the "
Environmental Report "), a copy of which has been provided
to Tenant, to Landlord’s current actual knowledge, neither
Landlord nor any third party has generated, disposed of, released,
nor found any Hazardous Substances on or about the Demised Premises
or the Project in violation of Environmental Laws. It is understood
by Tenant, however, that Landlord has not made any independent
investigations to confirm the accuracy of the Environmental Report
or the foregoing representation, and Landlord makes no
representation or warranty as to the accuracy or completeness of
the Environmental Report. Tenant agrees to keep the Environmental
Report confidential and not to disclose the contents thereof to any
other party (with the exception of its agents and consultants who
shall also be subject to such confidentiality requirement) without
the prior written consent of Landlord. Landlord has received no
notice that any municipality or any governmental or
quasi-governmental authority has determined that there are any
violations of the Environmental Laws with respect to the Demised
Premises or the Project. Landlord covenants that it will undertake
all commercially reasonable efforts to obtain and assist Tenant in
obtaining comfort letters, certifications, authorizations and other
approvals requested by Tenant in connection with any and all
relevant brownfields
32
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
and historic preservation laws and regulations.
In addition to the foregoing indemnity, Landlord agrees to pay,
protect, defend, indemnify and hold harmless Tenant from and
against any and all loss, damages, expenses (including, without
limitation, remediation, removal, repair, corrective action, or
cleanup expenses), costs (including, without limitation, reasonable
attorneys’ fees, consultant fees or expert fees and costs of
litigation), fees, claims and liabilities arising out of any
Hazardous Substances present on the Project prior to the
Commencement Date and thereafter released upon the Project, except
for those releases caused by Tenant, its agents, employees or
contractors, (excluding Landlord, Landlord’s Contractor or
its or their subcontractors or agents when acting on behalf of
Tenant in such capacity). Such liability of Landlord shall be
without regard to negligence or fault (except the negligence or
fault of Tenant, its agents, employees or contractors (excluding
Landlord, Landlord’s Contractor or its or their
subcontractors or agents when acting on behalf of Tenant in such
capacity)). Landlord acknowledges and agrees that any liabilities
for historic preservation, environmental remediation and removal of
Hazardous Materials, arising from site conditions prior to the
Commencement Date, including, but not limited to, those liabilities
arising under Environmental Laws shall be the sole responsibility
of Landlord (except to the extent caused by the negligence or fault
of Tenant, its agents, employees or contractors (excluding
Landlord, Landlord’s Contractor or its or their
subcontractors or agents when acting on behalf of Tenant in such
capacity)). The provisions of this Article 12.2 shall
survive the expiration or earlier termination of this
Lease.
12.3 Insurance Requirements . Landlord and Tenant shall
not do or permit to be done anything that either knows will
invalidate or increase the cost of any fire, extended coverage or
any other insurance policy covering the Project, or any portion
thereof, including the Building, and shall comply with all
reasonable rules, orders, regulations and requirements of the
insurers of the Project, or any portion thereof, provided that such
rules, orders, regulations and requirements do not materially
reduce, restrict or impair Tenant’s rights’ under this
Lease or increase Tenant’s monetary obligations under this
Lease. Subject to the terms of Article 13.2.8 , Tenant shall
also, within ten (10) days following notice from Landlord,
discontinue any activity specified by such notice that has caused
or will cause the rate of fire or other insurance on the Building
to increase (unless Tenant, within thirty (30) days of notice
from Landlord of such increase, pays the cost of any such increase
to Landlord and, thereafter, pays all said increases attributable
to such activity within thirty (30) days of Landlord’s
demand).
13. Repairs by Landlord and Alterations by Tenant .
13.1 Repairs by Landlord . Subject to Article 21
hereof, Landlord shall maintain or cause to be maintained in good
condition and repair the roof, windows, doors, structural portions
of the exterior and interior of the Building, the mechanical,
electrical, plumbing, lighting, heating, air conditioning, curtain
wall, vertical transportation, security, fire protection and life
safety systems and materials, the Tenant Improvements (excluding
any trade fixtures, equipment, furniture and other personal
property of Tenant), the Project Common Areas, the Foundry Park II
Common Areas (in
33
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
addition to the requirements set forth in
Article 57.1.6 ), and the Building Parking Facilities all in
accordance with the Building Standard Services attached hereto as
Exhibit E and first class standards of professional
property management at least equivalent to the standards maintained
in similar first class office buildings in Richmond, Virginia.
Subject to the waivers of subrogation set forth in Article
17 , the cost of such maintenance and repairs shall be
(i) at Tenant’s sole cost and expense as to repairs
caused by the negligence of Tenant or its agents, contractors,
employees or invitees; (ii) included in Operating Expenses to
the extent permissible under Article 9.2 hereof, except as
provided in Article 9.3 hereof; or (iii) in all other
cases payable by Landlord. Landlord covenants that upon the Full
Rent Commencement Date, the Building and all systems therein shall
be in compliance with all applicable local, state and federal laws,
statutes, codes, rules, regulations and ordinances of governmental
authorities, including, but not limited to, Environmental Laws and
the Americans with Disabilities Act, but subject to Punch List
Items. Landlord agrees as part of its repair obligations hereunder,
and at no additional cost to Tenant, to promptly correct any and
all conditions in violation of the foregoing and to remediate any
mold or other harmful substance or material that may be found in
the Building at any time during the Term; provided, however, that
to the extent Tenant or Tenant’s employees, agents,
contractors, invitees, guests, assignees or subsidiaries (for
purposes of this Article 13.1 , excluding Landlord,
Landlord’s Contractor or its or their subcontractors,
employees, agents, invitees or guests when acting on behalf of
Tenant in such capacity) are found to be the cause of such mold, or
other harmful substance or material due to such party’s
negligent act or omission or improper use of the Building systems
contrary to their design, then the cost of such remediation shall
be born by Tenant. Landlord shall use good faith and commercially
reasonable efforts to refrain from performing maintenance, repair,
replacement or renewal activities that generate substantial odors
or noxious chemicals or fumes in the Building or within
twenty-five (25) feet of the outdoor air intakes of the HVAC
system, during Building Operating Hours.
13.2 Alterations by Tenant . Throughout the Lease Term
and any extensions thereof, Tenant shall have the following rights
and obligations with respect to the Tenant Alterations:
13.2.1 Tenant shall have the right to make Tenant Alterations in
keeping with a Class "A", corporate headquarters environment
provided Tenant receives Landlord’s prior written consent,
such consent not to be unreasonably withheld, conditioned or
delayed. Notwithstanding the foregoing, Tenant shall have the right
to make Tenant Alterations without Landlord’s prior consent,
provided, however, such Tenant Alterations are in keeping with a
Class "A", corporate headquarters environment, are non-structural
in nature, and are compatible with the Building systems, and
provided further that Tenant delivers as-built drawings of such
Tenant Alterations to Landlord. For those Tenant Alterations
requiring Landlord’s prior written consent, Landlord shall
give its written approval to contractors hired by Tenant to perform
the Tenant Alterations prior to the commencement of the Tenant
Alterations, such approval not to be unreasonably withheld,
conditioned or delayed.
34
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
13.2.2 Provided the Tenant Alterations are
reasonably in keeping with a Class "A", corporate headquarters
environment, Tenant will have no obligation to remove the Tenant
Alterations and restore the Demised Premises upon the surrender of
the Demised Premises at the Lease Expiration Date or earlier
termination of the Lease Term.
13.2.3 Tenant shall not use the Demised Premises or make any
Tenant Alterations in violation of any of the Rules and Regulations
complying with Article 12.1 or in violation of any law,
statute, ordinance, rule, or regulation of any entity having legal
jurisdiction over such subjects.
13.2.4 All Tenant Alterations shall be at the sole cost and
expense of Tenant and, if affixed to the Building, shall become a
part of the Demised Premises and shall become the property of
Landlord at the Lease Expiration Date or earlier termination of the
Lease Term, unless such alterations and additions are
Tenant’s trade fixtures, equipment, furniture and other
personal property of Tenant, which are freely removable by Tenant.
Notwithstanding the foregoing, if Tenant elects to remove any of
the Tenant Alterations, then such alterations or additions shall
become the property of Tenant upon removal and Tenant may remove
such alterations or additions or any portion thereof at
Tenant’s expense upon the Lease Expiration Date or earlier
termination of the Lease Term, provided Tenant repairs, at
Tenant’s expense, any damage caused by such removal.
13.2.5 All Tenant Alterations shall be made: (i) in a good
and workmanlike manner and otherwise in accordance with the Rules
and Regulations; (ii) using first-class new or recycled
materials only; (iii) on days, at times and under the
supervision of an architect approved in writing by Landlord, such
approval not to be unreasonably withheld, conditioned or delayed;
(iv) if Tenant is not the sole Tenant of the Building, after
coordinating the work schedule and scope with the Building’s
property manager to avoid undue interference with the normal
operations and use of the Building; (v) in accordance with
plans and specifications prepared by an engineer or architect
reasonably acceptable to Landlord, which plans and specifications
shall be approved in writing by Landlord to the extent
Landlord’s consent is required pursuant to
Article 13.2.1 ; (vi) in accordance with all
applicable, statutes, ordinances, rules, and regulations of
governmental authorities, and insurance requirements;
(vii) after obtaining public liability, Builder’s Risk
and workers’ compensation insurance policies approved in
writing by Landlord, which policies shall cover every person who
will perform any work with respect to such alteration; and
(viii) after Tenant has obtained any permits necessary for the
alterations. Upon completion of the Tenant Alterations, Tenant
shall provide Landlord final lien waivers from the contractor and
subcontractors performing such work and as-built plans or drawings
with respect to such Tenant Alterations whether Landlord’s
consent to such Tenant Alterations was required hereunder.
13.2.6 Subject to the waivers of subrogation set forth in
Article 17 , Tenant shall indemnify and hold Landlord
harmless from and against any and
35
Subject to a request for confidential
treatment, certain portions of this agreement have been
intentionally omitted. The omitted portions subject to the
confidential treatment request are designated by three asterisks
[***]. A complete version of this agreement has been separately
filed with the Securities and Exchange Commission.
all expenses, liens, claims, liabilities and
damages based on or arising by reason of the Tenant Alterations
caused by Tenant, or its contractors, agents (excluding Landlord or
its contractors, agents or employees) or employees. If any Tenant
Alterations are made without the prior written consent of Landlord
where consent is required by this Lease or are otherwise not made
in accordance with this Article 13 , Landlord shall have the
right, upon prior written notice to Tenant to remove and correct
such work and restore the Demised Premises to their condition
immediately prior thereto, and Tenant shall be liable for all
reasonable expenses incurred by Landlord in connection therewith.
The failure of Landlord to object in writing to Tenant to such
Tenant Alterations within th
|