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Exhibit
10.1
INDUSTRIAL BUILDING
LEASE
(BUILD-TO-SUIT/TRIPLE
NET)
1. BASIC TERMS
. This Section 1 contains the Basic Terms of this Lease
between Landlord and Tenant, named below. Other Sections of the
Lease referred to in this Section 1 explain and define
the Basic Terms and are to be read in conjunction with the Basic
Terms.
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1.1. |
Effective Date of Lease: August 22, 2006 |
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1.2. |
Landlord: First Industrial Development Services,
Inc. |
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1.3. |
Tenant: Cybex International, Inc. |
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1.4. |
Premises: Approximately 340,478 rentable square feet included
in the Improvements (as defined on Exhibit B attached
hereto) to be constructed pursuant to the terms of this Lease on
land legally described on Exhibit A attached
hereto. |
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1.5. |
Lease Term: fifteen (15) years (the “ Initial
Term ”), commencing on the Commencement Date (as defined
in Exhibit B attached hereto) and ending fifteen
(15) Lease Years (as hereinafter defined) thereafter unless
sooner terminated as provided in this Lease (the “
Expiration Date ”). The Initial Term, as the same may
be extended pursuant to Addendum No. 1 for any Renewal
Term provided therein, is hereinafter referred to as the “
Term .” The term, “ Lease Year ,”
refers to a period of twelve (12) consecutive calendar months,
the first of which twelve (12) month periods is referred to as
the “ Initial Lease Year ;” such Initial Lease
Year is the period from the Commencement Date to the last day of
the calendar month in which the first annual anniversary of the
Commencement Date occurs. |
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1.6. |
Permitted Uses: (See Section 4.1 ) Warehousing,
assembly manufacturing distribution and ancillary
office |
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1.7. |
Tenant’s Guarantor: NONE |
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1.8. |
Brokers: (See Section 23 ; if none, so state):
(A) Tenant’s Broker: NONE; and (B) Landlord’s
Broker: NONE |
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1.9. |
Security/Damage Deposit: (See Section 4.3 )
$300,000.00 |
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1.10. |
Exhibits to Lease: The following exhibits are attached to and
made a part of this Lease: A (legal description); B (Construction
of Improvements, inclusive of B-1 (Landlord Improvements), B-2
(Tenant Improvements), B-3 (Acceptance Agreement) and B-4
(Allowances); C (Tenant Operations Inquiry Form); D (Broom Clean
Condition and Repair Requirements); Addendum No. 1 (Renewal
Option); and E (Agreement of Purchase and Sale) |
2. LEASE OF PREMISES;
RENT .
2.1. Lease of Premises
for Term . Landlord hereby leases the Premises to Tenant,
and Tenant hereby rents the Premises from Landlord, for the Term
and subject to the conditions of this Lease.
2.2. Types of Rental
Payments . Tenant shall pay net base rent to Landlord in
monthly installments, in advance, on the first day of each and
every calendar month during the Term of this Lease (the “
Base Rent ”) in the amounts and for the periods as set
forth below:
Rental
Payments
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Lease
Period
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Annual Base Rent |
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Monthly Base Rent |
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Year 1
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$ |
1,298,460 |
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$ |
108,205 |
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Year 2
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$ |
1,298,460 |
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$ |
108,205 |
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Year 3
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$ |
1,298,460 |
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$ |
108,205 |
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Year 4
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$ |
1,377,936 |
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$ |
114,828 |
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Year 5
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$ |
1,405,500 |
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$ |
117,125 |
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Year 6
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$ |
1,433,616 |
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$ |
119,468 |
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Year 7
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$ |
1,462,284 |
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$ |
121,857 |
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Year 8
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$ |
1,491,528 |
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$ |
124,294 |
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Year 9
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$ |
1,521,360 |
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$ |
126,780 |
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Year 10
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$ |
1,551,792 |
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$ |
129,316 |
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Year 11
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$ |
1,582,824 |
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$ |
131,902 |
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Year 12
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$ |
1,614,480 |
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$ |
134,540 |
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Year 13
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$ |
1,646,772 |
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$ |
137,231 |
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Year 14
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$ |
1,679,712 |
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$ |
139,976 |
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Year 15
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$ |
1,711,104 |
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$ |
142,592 |
Tenant shall also pay all Operating
Expenses (defined below) and any other amounts owed by Tenant
hereunder, including amounts owed by Tenant pursuant to the
Tri-Party Agreement (defined in Section 4.4 below)
(collectively, “Additional Rent” ). In the event
any monthly installment of Base Rent or Additional Rent, or both,
is not paid within 10 days of the date when due, a late charge in
an amount equal to 5% of the then delinquent installment of Base
Rent and/or Additional Rent (the “ Late Charge
”; the Late Charge, Default Interest, as defined in
Section 22.3 below, Base Rent and Additional Rent are
collectively be referred to as “ Rent ”), shall
be paid by Tenant to Landlord, c/o First Industrial, L.P., 75
Remittance Drive, Suite 1066, Chicago, IL 60675-1066 or if sent by
overnight courier, The Northern Trust Company, 350 North Orleans
Street, 8 th Floor Receipt and Dispatch, Chicago, IL 60654
Attn: First Industrial Development Services, Inc., Suite 1066 (or
such other entity designated as Landlord’s management agent,
if any, and if Landlord so appoints such a management agent, the
“ Agent ”), or pursuant to such other directions
as Landlord shall designate in this Lease or otherwise in
writing.
2.3. Covenants
Concerning Rental Payments; Initial and Final Rent Payments
. Tenant shall pay the Rent promptly when due, without notice or
demand, and without any abatement, deduction or setoff, except as
specifically provided herein. No payment by Tenant, or receipt or
acceptance by Agent or Landlord, of a lesser amount than the
correct Rent shall be deemed to be other than a payment on account,
nor shall any endorsement or statement on any check or letter
accompanying any payment be deemed an accord or satisfaction, and
Agent or Landlord may accept such payment without prejudice to its
right to recover the balance due or to pursue any other remedy
available to Landlord. If the Commencement Date occurs on a day
other than the first day of a calendar month, the Rent due for the
first partial calendar month of the Term shall be prorated on a per
diem basis (based on a 360 day, 12 month year) and paid to Landlord
on the Commencement Date.
2.4. Net Lease
. This is an absolutely net lease to Landlord. It is the intent of
the parties hereto that the Base Rent payable under this Lease
shall be an absolutely net return to Landlord and that Tenant shall
pay all costs and expenses relating to the ownership and operation
of the Premises and the business carried on therein, unless
otherwise expressly provided to the contrary in this Lease. Any
amount or obligation relating to the Premises that is not expressly
declared (under this Lease) to be that of Landlord shall be deemed
to be an obligation of Tenant, to be performed by Tenant, at
Tenant’s expense. It is the intention of the parties hereto
that the obligations of Tenant hereunder shall be separate and
independent covenants and agreements, that the Base Rent and the
Additional Rent shall continue to be payable in all events, and
that the obligations of Tenant hereunder shall continue unaffected
in all events, unless the requirement to pay or perform the same
shall have been specifically terminated pursuant to an express
provision of this Lease.
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3. OPERATING
EXPENSES .
3.1. Definitional Terms
Relating to Additional Rent . For purposes of this Section
and other relevant provisions of the Lease:
3.1.1. Operating
Expenses . The term “ Operating Expenses
” shall mean all of the following: (i) all market-based
premiums for commercial property, casualty, general liability,
boiler, flood, earthquake, terrorism and all other types of
insurance provided by Landlord and relating to the Premises, all
reasonable administrative costs incurred in connection with the
procurement and implementation of such insurance policies, and all
deductibles paid by Landlord pursuant to insurance policies
required to be maintained by Landlord under this Lease ,
provided at any time during the Term, upon forty-five
(45) days prior written notice to Landlord, Tenant may obtain
directly property insurance required by the terms of this Lease
pursuant to the terms of Section 10.2.2 below, in which
event, after such notice period has lapsed and Tenant has provided
to Landlord evidence of such insurance, no future administrative
costs or premiums shall be payable to Landlord, subject to the
terms of Section 10 below; (ii) Taxes, as
hereinafter defined in Section 3.1.2 (subject, however,
to the last sentence of Section 3.1.2 );
(iii) dues, fees or other costs and expenses, of any nature,
due and payable to any association or comparable entity to which
Landlord, as owner of the Premises, is a member or otherwise
belongs and that governs or controls any aspect of the ownership
and operation of the Premises; and (iv) any real estate taxes
and common area maintenance expenses levied against, or
attributable to, the Premises under any declaration of covenants,
conditions and restrictions, reciprocal easement agreement or
comparable arrangement that encumbers and benefits the Premises and
other real property (e.g. a business park).
3.1.2. Taxes .
The term “ Taxes ,” as referred to in
Section 3.1.1(iii) above shall mean (i) all
governmental taxes, assessments, fees and charges of every kind or
nature (other than Landlord’s income taxes and any taxes in
substitution therefor), whether general, special, ordinary or
extraordinary, due at any time or from time to time, during the
Term and any extensions thereof, in connection with the ownership,
leasing, or operation of the Premises, or of the personal property
and equipment located therein or used in connection therewith; and
(ii) any reasonable expenses incurred by Landlord in
contesting such taxes or assessments and/or the assessed value of
the Premises. For purposes hereof, Tenant shall be responsible for
any Taxes that are due and payable at any time or from time to time
during the Term and for any Taxes that are assessed, become a lien,
or accrue during any Operating Year, which obligation shall survive
the termination or expiration of this Lease. If Landlord so elects,
by delivery of written notice to Tenant at any time during the
Term, Tenant shall pay the Taxes directly to the taxing
authority(ies), rather than to Landlord for payment to the taxing
authority(ies), whereupon Tenant shall be required to pay all Taxes
prior to the date on which they become delinquent and Tenant shall
deliver to Landlord, promptly after Tenant’s payment of same,
reasonable evidence of such payments. So long as Tenant is not in
default under the Lease, Landlord shall not contest Taxes due
during the Term without the prior consent of Tenant, not to be
unreasonably withheld, conditioned or delayed. Landlord shall
cooperate with Tenant (at no cost or expense to Landlord) in
connection with any such contest which Tenant may choose to bring,
provided, however, that as to any period for which the Development
Agreement (defined below) prohibits or restricts any contest of
Taxes, Tenant shall not contest any Taxes. Notwithstanding the
foregoing, Tenant shall take no action, and Landlord shall not be
required to take any action, which would cause or allow the taxing
authority to take any enforcement action with respect to the
Property or subject Landlord to any liability and Tenant shall be
responsible for any interest or penalty arising in connection with
Tenant’s failure to pay such Taxes in a timely manner in
connection with Tenant’s contest of Taxes. Notwithstanding
the foregoing or anything else herein to the contrary, the defined
term “Taxes” shall be deemed to include (i) for so
long as the Development Agreement by and between the Landlord and
the City of Owatonna (the “ City ”), Minnesota
(as amended, modified, or supplemented, the “ Development
Agreement ”) is in effect, all ad valorum real estate
taxes paid by Landlord, whether on not Landlord could have
contested such Taxes or otherwise obtained relief in relation to
such Taxes, and (ii) any and all amounts that are required to
be paid by the Landlord pursuant to the Development Agreement in
order to fund the tax increment required to be funded by the City
of Owatonna therein. The Tenant agrees that prior to the
termination date of the Development Agreement: (1) it will not
seek administrative review or judicial review of the applicability
of any tax statute relating to the taxation of real property
contained on the Premises determined by any tax official to be
applicable to the Premises or the Landlord or Tenant or raise the
inapplicability of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; provided,
however, “tax statute” does not include any local
ordinance or resolution levying a tax; (2) it will not seek
administrative review or judicial review of the constitutionality
of any tax statute relating to the taxation of real property
contained on the Premises determined by any tax official to be
applicable to the Premises or the Landlord or Tenant or raise the
unconstitutionality of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; provided,
however, “tax statute” does not include any local
ordinance or resolution levying a tax; (3) it will not seek
any tax deferral or abatement, either presently or prospectively
authorized under any other State or federal law, of the taxation of
real property contained in the Premises between the date of the
Development Agreement and the termination date of the Development
Agreement.
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3.1.3. Operating
Year . The term “ Operating Year ” shall
mean the calendar year commencing January 1st of each year
(including the calendar year within which the Commencement Date
occurs) during the Term.
3.2. Payment of
Operating Expenses . Tenant shall pay, as Additional Rent
and in accordance with the requirements of Section 3.3
, all of the Operating Expenses, as set forth in
Section 3.3 . Additional Rent commences to accrue upon
the Commencement Date. The Operating Expenses payable hereunder for
the Operating Years in which the Term begins and ends shall be
prorated to correspond to that portion of said Operating Years
occurring within the Term. The Operating Expenses and any other
sums due and payable under this Lease shall be adjusted upon
receipt of the actual bills therefor, and the obligations of this
Section 3 shall survive the termination or expiration
of the Lease.
3.3. Payment of
Additional Rent . Landlord shall have the right to
reasonably estimate the Operating Expenses for each Operating Year.
Upon Landlord’s or Agent’s notice to Tenant of such
estimated amount, Tenant shall pay, on the first day of each month
during that Operating Year, an amount (the “ Estimated
Additional Rent ”) equal to the estimate of the Operating
Expenses divided by 12 (or the fractional portion of the Operating
Year remaining at the time Landlord delivers its notice of the
estimated amounts due from Tenant for that Operating Year). If the
aggregate amount of Estimated Additional Rent actually paid by
Tenant during any Operating Year is less than Tenant’s actual
ultimate liability for Operating Expenses for that particular
Operating Year, Tenant shall pay the deficiency within 30 days of
Landlord’s written demand therefor. If the aggregate amount
of Estimated Additional Rent actually paid by Tenant during a given
Operating Year exceeds Tenant’s actual liability for such
Operating Year, the excess shall be credited against the Estimated
Additional Rent next due from Tenant during the immediately
subsequent Operating Year, except that in the event that such
excess is paid by Tenant during the final Lease Year, then upon the
expiration of the Term, Landlord or Agent shall pay Tenant the
then-applicable excess promptly after determination
thereof.
3.4. Audit .
Tenant shall have the right, at Tenant’s sole cost and
expense, to review and audit Landlord’s records with respect
to any Operating Expenses. If such audit discloses discrepancies in
the amounts paid, the appropriate adjustments shall be
made.
4. USE OF PREMISES;
SIGNAGE; SECURITY DEPOSIT .
4.1. Use of
Premises . The Premises shall be used by the Tenant for the
purpose(s) set forth in Section 1.6 above and for no
other purpose whatsoever. Tenant shall not, at any time, use or
occupy, or suffer or permit anyone to use or occupy, the Premises,
or do or permit anything to be done in the Premises, in any manner
that may (a) violate any Certificate of Occupancy for the
Premises; (b) cause, or be liable to cause, injury to, or in
any way impair the value or proper utilization of, all or any
portion of the Premises (including, but not limited to, the
structural elements of the Premises) or any equipment, facilities
or systems therein; (c) constitute a violation of the laws and
requirements of any public authority or the requirements of
insurance bodies or the rules and regulations of the Premises,
including any covenant, condition or restriction affecting the
Premises; and (d) exceed the load bearing capacity of the
floor of the Premises. On or prior to the date hereof, Tenant has
completed and delivered for the benefit of Landlord a “Tenant
Operations Inquiry Form” in the form attached hereto as
Exhibit C describing the nature of Tenant’s proposed
business operations at the Premises, which form is intended to, and
shall be, relied upon by Landlord. From time to time during the
Term (but no more often than once in any twelve month period unless
Tenant is in default hereunder or unless Tenant assigns this Lease
or subleases all or any portion of the Premises, whether or not in
accordance with Section 8) , Tenant shall provide an
updated and current Tenant Operations Inquiry Form upon
Landlord’s request.
4.2. Signage .
Tenant may affix any sign of any size or character to any portion
of the Premises, without prior written approval of Landlord,
subject to and as permitted by the requirements of any governmental
code or authority and/or park association rules. Tenant shall
remove all signs of Tenant upon the expiration or earlier
termination of this Lease and immediately repair any damage to the
Premises caused by, or resulting from, such removal.
4.3. Security/Damage
Deposit . Simultaneously with the execution and delivery of
this Lease, Tenant shall deposit with Landlord or Agent the sum set
forth in Section 1.9 above, in cash (the “
Security ”), representing security for the performance
by Tenant of the covenants and obligations hereunder. The Security
shall be held by Landlord or Agent, without interest, in favor of
Tenant; provided, however, that no trust relationship shall be
deemed created thereby; the Security may be commingled with other
assets of Landlord; and Landlord shall not be required to pay any
interest on the Security. If Tenant defaults in the performance of
any of its covenants hereunder, Landlord or Agent may, without
notice to Tenant, apply all or any part of the Security to the cure
of such default or the payment of any sums then due from Tenant
under this Lease (including, but not limited to, amounts due under
Section 22.2 of this Lease as a consequence of
termination of this Lease or Tenant’s right to possession),
in addition to any other remedies available to Landlord. In the
event the Security is so applied, Tenant shall, upon demand,
immediately deposit with
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Landlord or Agent a sum equal to the
amount so used. If Tenant fully and faithfully complies with all
the covenants and obligations hereunder, the Security (or any
balance thereof) shall be returned to Tenant within 30 days after
the last to occur of (i) the date the Term expires or
terminates or (ii) delivery to Landlord of possession of the
Premises. Landlord may deliver the Security to any lender with a
mortgage lien encumbering the Premises or to any Successor Landlord
(defined below), and thereupon Landlord and Agent shall be
discharged from any further liability with respect to the
Security.
4.4. TIF
Obligations . Tenant shall timely and duly perform all of
its obligations pursuant to the Tri-Party Agreement (the “
Tri-Party Agreement ”), as amended, by and among the
City, the Landlord and the Tenant, and the Business Subsidy
Agreement, as amended, by and between Tenant and the City. Tenant
shall not have caused, through any action or any failure to act by
Tenant when and as required hereunder, Landlord to be in
non-compliance with the Development Agreement by and between the
Landlord and the City.
5. CONDITION AND
DELIVERY OF PREMISES .
5.1. Condition of
Premises . Landlord shall deliver the Premises in
accordance with the requirements in Exhibit B hereto. Except
as otherwise expressly provided in Exhibit B , Landlord
shall not be obligated to make any repairs, replacements or
improvements (whether structural or otherwise) of any kind or
nature to the Premises in connection with, or in consideration of,
this Lease.
5.2. Commencement
Date . The Commencement Date shall be determined pursuant
to Exhibit B .
6. SUBORDINATION;
ESTOPPEL CERTIFICATES; ATTORNMENT .
6.1. Subordination and
Attornment . Provided that Tenant is provided with a
reasonable and customary subordination, nondisturbance and
attornment agreement from the holder of any mortgage or deed of
trust, this Lease is and shall be subject and subordinate at all
times to (a) all ground leases or underlying leases that may
now exist or hereafter be executed affecting the Premises and
(b) any mortgage or deed of trust that may now exist or
hereafter be placed upon, and encumber, any or all of (x) the
Premises; (y) any ground leases or underlying leases for the
benefit of the Premises; and (z) all or any portion of
Landlord’s interest or estate in any of said items. Tenant
shall execute and deliver, within ten (10) days of
Landlord’s request, and in the form reasonably requested by
Landlord (or its lender), any documents evidencing the
subordination of this Lease. Tenant hereby covenants and agrees
that Tenant shall attorn to any successor to Landlord.
6.2. Estoppel
Certificate . Tenant agrees, from time to time and within
10 days after request by Landlord, to deliver to Landlord, or
Landlord’s designee, an estoppel certificate stating such
matters pertaining to this Lease as may be reasonably requested by
Landlord. Failure by Tenant to timely execute and deliver such
certificate shall constitute a Default, as defined below (without
any obligation to provide any notice thereof or any opportunity to
cure such failure to timely perform).
6.3. Transfer by
Landlord . In the event of a sale or conveyance by Landlord
of the Premises, the same shall operate to release Landlord from
any liability for any of the covenants or conditions, express or
implied, herein contained in favor of Tenant and first arising or
accruing after the effective date of Landlord’s transfer of
its interest in the Premises, provided such successor assumes in
writing the obligations of Landlord arising after such assignment
or conveyance and in such event Tenant agrees to look solely to
Landlord’s successor in interest (“ Successor
Landlord ”) with respect thereto and agrees to attorn to
such successor; provided further that in the event of an assignment
by Landlord of its interest in this Lease prior to the Commencement
Date, Landlord shall nonetheless remain responsible for causing the
Substantial Completion Date to occur and to provide the warranty
pursuant to Section 7 of Exhibit B .
7. QUIET
ENJOYMENT . Subject to the provisions of this Lease, so
long as Tenant pays all of the Rent and performs all of its other
obligations hereunder, Tenant shall not be disturbed in its
possession of the Premises by Landlord, Agent or any other person
lawfully claiming through or under Landlord.
8. ASSIGNMENT AND
SUBLETTING . Tenant shall not (a) assign (whether
directly or indirectly), in whole or in part, this Lease, or
(b) allow this Lease to be assigned, in whole or in part, by
operation of law or otherwise, including, without limitation, by
transfer of a controlling interest ( i.e. greater than a 25%
interest) of stock, membership interests or partnership interests,
or by merger or dissolution, which transfer of a controlling
interest, merger or dissolution shall be deemed an assignment for
purposes of this Lease, or (c) mortgage or pledge the Lease,
or (d) sublet the Premises, in whole or in part, without (in
the case of any or all of (a) through (d) above) the
prior written consent of Landlord, which consent shall not be
unreasonably withheld or delayed. Upon ten
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(10) days prior written notice to
Landlord, Tenant may, without Landlord’s prior written
consent, assign this Lease or sublease a portion of the Premises
(i) to an entity in which Tenant is merged or consolidated or
to an entity to which all or substantially all of Tenant’s
assets are transferred, provided such merger, consolidation or
transfer of assets is for a bona fide business purpose and not
principally for the purpose of transferring Tenant’s
leasehold estate or (ii) to any entity controlling Tenant,
controlled by Tenant or under common control of Tenant. In no event
shall any assignment or sublease ever release Tenant or any
guarantor from any obligation or liability hereunder; and in the
case of any assignment, Landlord shall retain all rights with
respect to the Security. Any purported assignment, mortgage,
transfer, pledge or sublease made without the prior written consent
of Landlord shall be absolutely null and void. No assignment of
this Lease shall be effective and valid unless and until the
assignee executes and delivers to Landlord any and all
documentation reasonably required by Landlord in order to evidence
assignee’s assumption of all obligations of Tenant hereunder.
Regardless of whether or not an assignee or sublessee executes and
delivers any documentation to Landlord pursuant to the preceding
sentence, any assignee or sublessee shall be deemed to have
automatically attorned to Landlord in the event of any termination
of this Lease. If this Lease is assigned, or if the Premises (or
any part thereof) are sublet or used or occupied by anyone other
than Tenant, whether or not in violation of this Lease, Landlord or
Agent may (without prejudice to, or waiver of its rights), collect
Rent from the assignee, subtenant or occupant.
9. COMPLIANCE WITH
LAWS .
9.1. Compliance with
Laws . Landlord shall deliver the Premises to Tenant in
accordance with the terms of Exhibit B hereto. After the
Premises are delivered to Tenant, Tenant shall, at its sole expense
(regardless of the cost thereof), comply with all local, state and
federal laws, rules, regulations and requirements now or hereafter
in force and all judicial and administrative decisions in
connection with the enforcement thereof (collectively, “
Laws ”), whether such Laws (a) pertain to either
or both of the Premises and Tenant’s use and occupancy
thereof; (b) concern or address matters of an environmental
nature; (c) require the making of any structural, unforeseen
or extraordinary changes; and (d) involve a change of policy
on the part of the body enacting the same, including, in all
instances described in (a) through (d), but not limited to,
the Americans With Disabilities Act of 1990 (42 U.S.C.
Section 12101 et seq .). If any license or permit is
required for the conduct of Tenant’s business in the
Premises, Tenant, at its expense, shall procure such license prior
to the Commencement Date, and shall maintain such license or permit
in good standing throughout the Term. Tenant shall give prompt
notice to Landlord of any written notice it receives of the alleged
violation of any Law or requirement of any governmental or
administrative authority with respect to either or both of the
Premises and the use or occupation thereof.
9.2. Hazardous
Materials . If, at any time or from time to time during the
Term (or any extension thereof), any Hazardous Material (defined
below) is generated, transported, stored, used, treated or disposed
of at, to, from, on or in the Premises by, or as a result of any
act or omission of, any or all of Tenant and any or all of Tenant
Parties (defined below): (i) Tenant shall, at its own cost, at
all times comply (and cause all others to comply) with all Laws
relating to Hazardous Materials, and Tenant shall further, at its
own cost, obtain and maintain in full force and effect at all times
all permits and other approvals required in connection therewith;
(ii) Tenant shall promptly provide Landlord or Agent with
complete copies of all communications, permits or agreements with,
from or issued by any governmental authority or agency (federal,
state or local) or any private entity relating in any way to the
presence, release, threat of release, or placement of Hazardous
Materials on or in the Premises or any portion of the Premises, or
the generation, transportation, storage, use, treatment, or
disposal at, on, in or from the Premises, of any Hazardous
Materials; (iii) at any time after Landlord has a reasonable
basis to believe that Tenant is not in compliance with this
Section 9 or if any claim is made or threatened by any
governmental authority or agency, Landlord, Agent and their
respective agents and employees shall have the right to either or
both (x) enter the Premises and (y) conduct appropriate
tests, at Tenant’s expense, for the purposes of ascertaining
Tenant’s compliance with all applicable Laws or permits
relating in any way to the generation, transport, storage, use,
treatment, disposal or presence of Hazardous Materials on, at, in
or from all or any portion of the Premises; and (iv) upon
written request by Landlord or Agent, Tenant shall cause to be
performed, and shall provide Landlord with the results of
reasonably appropriate tests of air, water or soil to demonstrate
that Tenant complies with all applicable Laws or permits relating
in any way to the generation, transport, storage, use, treatment,
disposal or presence of Hazardous Materials on, at, in or from all
or any portion of the Premises. This Section 9.2 does
not authorize the generation, transportation, storage, use,
treatment or disposal of any Hazardous Materials at, to, from, on
or in the Premises in contravention of this Section 9 .
Tenant covenants to investigate, clean up and otherwise remediate,
at Tenant’s sole expense, any release of Hazardous Materials
caused, contributed to, or created by any or all of (A) Tenant
and (B) any or all of Tenant’s officers, directors,
members, managers, partners, invitees, agents, employees,
contractors or representatives (“ Tenant Parties
”) during the Term. Such investigation and remediation shall
be performed only after Tenant has obtained Landlord’s prior
written consent; provided, however, that Tenant shall be entitled
to respond (in a reasonably appropriate manner) immediately to an
emergency without first obtaining such consent. All remediation
shall be performed in strict compliance with Laws and to the
reasonable satisfaction of Landlord. Tenant shall not enter into
any settlement agreement, consent decree or other compromise with
respect to any claims relating to any Hazardous Materials in any
way connected to the Premises without first
6
obtaining Landlord’s written
consent (which consent may be given or withheld in Landlord’s
sole, but reasonable, discretion) and affording Landlord the
reasonable opportunity to participate in any such proceedings. As
used herein, the term, “ Hazardous Materials ,”
shall mean any waste, material or substance (whether in the form of
liquids, solids or gases, and whether or not airborne) that is or
may be deemed to be or include a pesticide, petroleum, asbestos,
polychlorinated biphenyl, radioactive material, urea formaldehyde
or any other pollutant or contaminant that is or may be deemed to
be hazardous, toxic, ignitable, reactive, corrosive, dangerous,
harmful or injurious, or that presents a risk to public health or
to the environment, and that is or becomes regulated by any Law.
The undertakings, covenants and obligations imposed on Tenant under
this Section 9.2 shall survive the termination or
expiration of this Lease.
10. INSURANCE
.
10.1. Insurance to be
Maintained by Landlord . Landlord shall maintain:
(a) a commercial property insurance policy covering the
Premises (at its full replacement cost), but excluding
Tenant’s personal property; (b) commercial general
public liability insurance covering Landlord for claims arising out
of liability for bodily injury, death, personal injury, advertising
injury and property damage occurring in and about the Premises and
otherwise resulting from any acts and operations of Landlord, its
agents and employees; (c) rent loss insurance; (d) any
other insurance coverage required by Landlord’s lender; and
(e) or cause the General Contractor to maintain during the
course of construction through Substantial Completion of the
Improvements, Builder’s Risk insurance. All of the coverages
described in (a) through (e) shall be reasonably
determined from time to time by Landlord, as would be made by a
prudent owner of similar property as the Premises. All insurance
maintained by Landlord shall be in addition to and not in lieu of
the insurance required to be maintained by the Tenant.
10.2. Insurance to be
Maintained by Tenant . Tenant shall purchase, at its own
expense, and keep in force at all times from and after the date of
this Lease, the policies of insurance set forth below
(collectively, “ Tenant’s Policies ”). All
Tenant’s Policies shall (a) be issued by an insurance
company with a Best’s rating of A or better and otherwise
reasonably acceptable to Landlord and shall be licensed to do
business in the state in which the Premises is located;
(b) provide that said insurance shall not be canceled or
materially modified unless 30 days’ prior written notice
shall have been given to Landlord; (c) provide for deductible
amounts that are reasonably acceptable to Landlord (and its lender,
if applicable) and (d) otherwise be in such form, and include
such coverages, as Landlord may reasonably require. The
Tenant’s Policies described in (i) and (ii) below
shall (1) provide coverage on an occurrence basis;
(2) name Landlord (and its lender, if applicable) as an
additional insured; (3) provide coverage, to the extent
insurable, for the indemnity obligations of Tenant under this
Lease; (4) contain a separation of insured parties provision;
(5) be primary, not contributing with, and not in excess of,
coverage that Landlord may carry; and (6) provide coverage
with no exclusion for a pollution incident arising from a hostile
fire. All Tenant’s Policies or Certificates of Insurance
shall be delivered to Landlord prior to the Commencement Date and
renewals thereof shall be delivered to Landlord’s notice
addresses at least 30 days prior to the applicable expiration date
of each Tenant’s Policy. In the event that Tenant fails, at
any time or from time to time, to comply with the requirements of
the preceding sentence, Landlord may following notice to Tenant
order such insurance and charge the cost thereof to Tenant, which
amount shall be payable by Tenant to Landlord upon demand, as
Additional Rent. Tenant shall give prompt notice to Landlord and
Agent of any known bodily injury, death, personal injury,
advertising injury or property damage occurring in and about the
Premises.
10.2.1. Tenant shall
purchase and maintain, throughout the Term, a Tenant’s
Policy(ies) of (i) commercial general or excess liability
insurance, including personal injury and property damage, in the
amount of not less than $1,000,000.00 per occurrence, $2,000,000.00
annual general aggregate, and $4,000,000 umbrella per location;
(ii) comprehensive automobile liability insurance covering
Tenant against any personal injuries or deaths of persons and
property damage based upon or arising out of the ownership, use,
occupancy or maintenance of a motor vehicle at the Premises and all
areas appurtenant thereto in the amount of not less than
$1,000,000, combined single limit; (iii) commercial property
insurance covering Tenant’s personal property (at its full
replacement cost); and (iv) workers’ compensation
insurance per the applicable state statutes covering all employees
of Tenant.
10.2.2. Provided
Tenant is not in default under this Lease and has not assigned its
interest in this Lease to Landlord, to procure and pay directly for
the commercial property insurance covering the Property.
Tenant’s property insurance policy shall name Landlord (and
its lender, if applicable) as mortgagee loss payee as its interest
may appear, and cover all improvements at any time situated upon
the Premises, including, without limitation, the Improvements, the
parking areas, against loss or damage by fire, lighting, wind
storm, hail storm, aircraft, vehicles, smoke, explosion, riot or
civil commotion as provided by the Standard Fire and Extended
Coverage Policy and all other risks of direct physical loss as
insured against under Special Form (“all risk”
coverage). The insurance coverage shall be for not less than 100%
of the full replacement cost of such improvements with agreed
amount endorsement and building ordinance coverage and shall
include rental interruption insurance for twelve (12) months
of rent and operating expenses reimbursement.
7
10.3. Waiver of
Subrogation . Notwithstanding anything to the contrary in
this Lease, Landlord and Tenant mutually waive their respective
rights of recovery against each other and each other’s
officers, directors, constituent partners, members, agents and
employees, and Tenant further waives such rights against
(a) each lessor under any ground or underlying lease
encumbering the Premises and (b) each lender under any
mortgage or deed of trust or other lien encumbering the Premises
(or any portion thereof or interest therein), to the extent any
loss is insured against or required to be insured against under
this Lease, including, but not limited to, losses, deductibles or
self-insured retentions covered by Landlord’s or
Tenant’s commercial property policies described above. This
provision is intended to waive, fully and for the benefit of each
party to this Lease, any and all rights and claims that might give
rise to a right of subrogation by any insurance carrier. Each party
shall cause its respective insurance policy(ies) to be endorsed to
evidence compliance with such waiver.
11. ALTERATIONS
. From and after the Commencement Date, Tenant may, from time to
time, at its expense, make alterations or improvements in and to
the Premises (hereinafter collectively referred to as “
Alterations ”), provided that Tenant first obtains the
written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed; provided, however,
that Tenant may make any interior, non-structural Alterations
costing less than $50,000 per Alteration and less than $150,000 in
the aggregate for all Alterations occurring during a particular
calendar year without obtaining Landlord’s consent, provided
that Tenant shall provide Landlord with 5 days written notice prior
to the commencement of any such Alterations for which
Landlord’s consent is not required and Tenant complies with
the requirements set forth below in this Section 11 .
All of the following shall apply with respect to all Alterations:
(a) the Alterations are non-structural and the structural
integrity of the Premises shall not be affected; (b) the
Alterations are to the interior of the Premises; (c) the
proper functioning of the mechanical, electrical, heating,
ventilating, air-conditioning (“ HVAC ”),
sanitary and other service systems of the Premises shall not be
affected and the usage of such systems by Tenant shall not be
increased; and (d) Tenant shall have appropriate insurance
coverage, reasonably satisfactory to Landlord, regarding the
performance and installation of the Alterations. Additionally,
before proceeding with any Alterations, Tenant shall (i) at
Tenant’s expense, obtain all necessary governmental permits
and certificates for the commencement and prosecution of
Alterations; (ii) if Landlord’s consent is required for
the planned Alteration, submit to Landlord, for its written
approval, working drawings, plans and specifications and all
permits for the work to be done and Tenant shall not proceed with
such Alterations until it has received Landlord’s approval
(if required); and (iii) cause those contractors, materialmen
and suppliers engaged to perform the Alterations to deliver to
Landlord certificates of insurance (in a form reasonably acceptable
to Landlord) evidencing policies of commercial general liability
insurance (providing the same coverages as required in
Section 10.2 above) and workers’ compensation
insurance. Such insurance policies shall satisfy the obligations
imposed under Section 10.2 . Tenant shall cause the
Alterations to be performed in compliance with all applicable
permits, Laws and requirements of public authorities, and with
Landlord’s reasonable rules and regulations or any other
restrictions that Landlord may impose on the Alterations. Tenant
shall cause the Alterations to be diligently performed in a good
and workmanlike manner, using new materials and equipment at least
equal in quality and class to the standards for the Premises
established by Landlord. With respect to any and all Alterations
for which Landlord’s consent is required, Tenant shall
provide Landlord with “as built” plans, copies of all
construction contracts, governmental permits and certificates and
proof of payment for all labor and materials, including, without
limitation, copies of paid invoices and final lien waivers. If
Landlord’s consent to any Alterations is required, and
Landlord provides that consent, then at the time Landlord so
consents, Landlord shall also advise Tenant whether or not Landlord
shall require that Tenant remove such Alterations at the expiration
or termination of this Lease. If Landlord requires Tenant to remove
the Alterations, then, during the remainder of the Term, Tenant
shall be responsible for the maintenance of appropriate commercial
property insurance (pursuant to Section 10.2 )
therefor; however, if Landlord shall not require that Tenant remove
the Alterations, such Alterations shall constitute Landlord’s
Property and Landlord shall be responsible for the insurance
thereof, pursuant to Section 10.1 .
12. LANDLORD’S
AND TENANT’S PROPERTY . All fixtures, machinery,
equipment, improvements and appurtenances attached to, or built
into, the Premises at the commencement of, or during the Term,
whether or not placed there by or at the expense of Tenant, but
excluding all machinery, equipment and such fixtures purchased by
Tenant not pertaining to the operating systems of the Building and
pertaining to Tenant’s business, shall become and remain a
part of the Premises; shall be deemed the property of Landlord (the
“ Landlord’s Property ”), without
compensation or credit to Tenant; and shall not be removed by
Tenant at the Expiration Date unless Landlord requires their
removal (including, but not limited to, Alterations pursuant to
Section 11 ). Further, any personal property in the
Premises on the Commencement Date, movable or otherwise, unless
installed and paid for by Tenant, shall also constitute
Landlord’s Property and shall not be removed by Tenant. In no
event shall Tenant remove any of the following materials or
equipment without Landlord’s prior written consent (which
consent may be given or withheld in Landlord’s sole
discretion): any power wiring or power panels, lighting or lighting
fixtures, wall or window coverings, carpets or other floor
coverings, heaters, air conditioners or any other HVAC equipment,
fencing or security gates, or other similar building operating
equipment and decorations. At or before the Expiration Date, or the
date of any earlier termination, Tenant, at its expense, shall
remove from the Premises all of Tenant’s personal property
and any Alterations that Landlord requires be removed pursuant to
Section 11, and Tenant shall repair (to
Landlord’s reasonable satisfaction) any damage to the
Premises resulting from either or both
8
such installation and removal. Without
respect to the portion of Tenant’s Property that is described
as collateral pursuant to any third party financing for
Tenant’s Property, Landlord agrees to waive any lien,
statutory or otherwise, that Landlord may have with respect to such
Tenant’s Property for the duration of such third party
financing, provided, however, that such waiver shall not relieve
Tenant of the obligation to remove Tenant’s Property from the
Premises on a timely basis and provided further that
Landlord’s waiver of lien shall not apply to any of
Tenant’s Property that is not subject to or that is released
from the lien created by the third party financing obtained by
Tenant. Landlord agrees to execute a Landlord’s waiver in a
form reasonably acceptable to Landlord, provided that
Tenant’s Property is specifically described thereon and does
not include any of Landlord’s Property and subject to the
other terms and conditions of this Lease. Any other items of
Tenant’s personal property that remain in the Premises after
the Expiration Date, or following an earlier termination date, may,
at the option of Landlord, be deemed to have been abandoned, and in
such case, such items may be retained by Landlord as its property
or be disposed of by Landlord, in Landlord’s sole and
absolute discretion and without accountability, at Tenant’s
expense.
13. REPAIRS AND
MAINTENANCE .
13.1. Tenant
Responsibilities . Tenant acknowledges that, with full
awareness of its obligations under this Lease, Tenant has accepted
the condition, state of repair and appearance of the Premises,
subject to the obligations of Landlord pursuant to Exhibit B
. Except for (a) Landlord’s obligations under Exhibit
B and (b) events of damage, destruction or casualty to the
Premises (as addressed in Section 18 below), Tenant
agrees that, at its sole expense, it shall put, keep and maintain
the Premises, including any Alterations and any altered, rebuilt,
additional or substituted buildings, structures and other
improvements thereto or thereon, in the same condition that exists
on the Commencement Date (reasonable wear and tear excepted), and
in a safe condition, repair and appearance (collectively, the
“ Required Condition ”) and shall make all
repairs and replacements necessary therefor. Without limiting the
foregoing, Tenant shall promptly make all structural and
nonstructural, foreseen and unforeseen, ordinary and extraordinary
changes, replacements and repairs of every kind and nature, and
correct any patent or latent defects in the Premises, which may be
required to put, keep and maintain the Premises in the Required
Condition. Tenant will keep the Premises orderly and free and clear
of rubbish. Tenant covenants to perform or observe all terms,
covenants and conditions of any easement, restriction, covenant,
declaration or maintenance agreement (collectively, “
Easements ”) to which the Premises are currently
subject or become subject pursuant to this Lease, whether or not
such performance is required of Landlord under such Easements,
including, without limitation, payment of all amounts due from
Landlord or Tenant (whether as assessments, service fees or other
charges) under such Easements. Tenant shall deliver to Landlord
promptly, but in no event later than five (5) business days
after receipt thereof, copies of all written notices received from
any party thereto regarding the non-compliance of the Premises or
Landlord’s or Tenant’s performance of obligations under
any Easements. Tenant shall, at its expenses, use reasonable
efforts to enforce compliance with any Easements benefiting the
Premises by any other person or entity or property subject to such
Easement. Except with respect to Landlord’s obligations under
Exhibit B , Landlord shall not be required to maintain,
repair or rebuild, or to make any alterations, replacements or
renewals of any nature to the Premises, or any part thereof,
whether ordinary or extraordinary, structural or nonstructural,
foreseen or not foreseen, or to maintain the Premises or any part
thereof in any way or to correct any patent or latent defect
therein. Tenant hereby expressly waives any right to make repairs
at the expense of Landlord which may be provided for in any Law in
effect at the Commencement Date or that may thereafter be enacted.
If Tenant shall vacate or abandon the Premises, it shall give
Landlord immediate written notice thereof.
13.2. HVAC Maintenance
Contract . Tenant shall also maintain, in full force and
effect, a preventative maintenance and service contract with a
reputable service provider for maintenance of the HVAC systems of
the Premises (the “ HVAC Maintenance Contract
”). Such HVAC Maintenance Contract may commence immediately
following the expiration of the one-year warranty relating to the
HVAC system, as described in Exhibit B hereto. The terms and
provisions of any such HVAC Maintenance Contract shall require that
the service provider maintain the Premises’ HVAC system in
accordance with the manufacturer’s recommendations and
otherwise in accordance with normal, customary and reasonable
practices in the geographic area in which the Premises is located
and for HVAC systems comparable to the Premises’ HVAC system.
Within 30 days following the Commencement Date, Tenant shall
procure and deliver to Landlord the HVAC Maintenance Contract.
Thereafter, upon written request, Tenant shall provide to Landlord
a copy of renewals or replacements of such HVAC Maintenance
Contract no later than 30 days prior to the then-applicable expiry
date of the existing HVAC Maintenance Contract. If Tenant fails to
timely deliver to Landlord the HVAC Maintenance Contract (or any
applicable renewal or replacement thereof), then Landlord shall
have the right to contract directly for the periodic maintenance of
the HVAC systems in the Premises and to charge the cost thereof
back to Tenant as Additional Rent.
14. UTILITIES .
Tenant shall purchase all utility services and shall provide for
scavenger, cleaning and extermination services. Tenant shall pay
the utility charges for the Premises directly to the utility or
municipality providing such service, all charges shall be paid by
Tenant before they become delinquent. Tenant shall be solely
responsible for the repair and maintenance of any
9
meters necessary in connection with such
services. Tenant’s use of electrical energy in the Premises
shall not, at any time, exceed the capacity of either or both of
(x) any of the electrical conductors and equipment in or
otherwise servicing the Premises; and (y) the HVAC systems of
the Premises.
15. INVOLUNTARY
CESSATION OF SERVICES . Landlord reserves the right,
without any liability to Tenant and without affecting
Tenant’s covenants and obligations hereunder, to stop service
of any or all of the HVAC, electric, sanitary, elevator (if any),
and other systems serving the Premises, or to stop any other
services required by Landlord under this Lease, whenever and for so
long as may be necessary by reason of (i) accidents,
emergencies, strikes, or (ii) any other cause beyond
Landlord’s reasonable control. Further, it is also understood
and agreed that Landlord or Agent shall have no liability or
responsibility for a cessation of services to the Premises that
occurs as a result of causes beyond Landlord’s or
Agent’s reasonable control. No such interruption of service
shall be deemed an eviction or disturbance of Tenant’s use
and possession of the Premises or any part thereof, or render
Landlord or Agent liable to Tenant for damages, or relieve Tenant
from performance of Tenant’s obligations under this Lease,
including, but not limited to, the obligation to pay Rent;
provided, however, that if any interruption of services persists
for a period in excess of five (5) consecutive business days
Tenant shall, as Tenant’s sole remedy, be entitled to a
proportionate abatement of Rent to the extent, if any, of any
actual loss of use of the Premises by Tenant.
16. LANDLORD’S
RIGHTS . Landlord, Agent and their respective agents,
employees and representatives shall have the right to enter and/or
pass through the Premises at any time or times upon reasonable
prior notice and with the accompaniment of a representative of
Tenant (except in the event of emergency) to examine and inspect
the Premises and to show them to actual and prospective lenders,
prospective purchasers or mortgagees of the Premises or providers
of capital to Landlord and its affiliates; and in connection with
the foregoing, to install a sign at or on the Premises to advertise
the Premises for lease or sale; during the period of six months
prior to the Expiration Date (or at any time, if Tenant has
abandoned the Premises), Landlord and its agents may exhibit the
Premises to prospective tenants. Additionally, Landlord and Agent
shall have the following right with respect to the Premises,
exercisable without notice to Tenant, without liability to Tenant,
and without being deemed an eviction or disturbance of
Tenant’s use or possession of the Premises or giving rise to
any claim for setoff or abatement of Rent: to have pass keys,
access cards, or both, to the Premises.
17. NON-LIABILITY AND
INDEMNIFICATION .
17.1.
Non-Liability . Except as otherwise expressly set forth
in this Lease, none of Landlord, Agent, any other managing agent,
or their respective affiliates, owners, partners, directors,
officers, agents and employees shall be liable under this Lease to
Tenant for any loss, injury, or damage, to Tenant or to any other
person, or to its or their property. Further, except as otherwise
expressly set forth in this Lease, none of Landlord, Agent, any
other managing agent, or their respective affiliates, owners,
partners, directors, officers, agents and employees shall be liable
to Tenant under this Lease (a) for any damage caused by other
persons in, upon or about the Premises, or caused by operations in
construction of any public or quasi-public work; (b) for
consequential or indirect damages, including those purportedly
arising out of any loss of use of the Premises or any equipment or
facilities therein by Tenant or any person claiming through or
under Tenant; (c) for any defect in the Premises; (d) for
injury or damage to person or property caused by fire, or theft, or
resulting from the operation of heating or air conditioning or
lighting apparatus, or from falling plaster, or from steam, gas,
electricity, water, rain, snow, ice, or dampness, that may leak or
flow from any part of the Premises, or from the pipes, appliances
or plumbing work of the same.
17.2. Tenant
Indemnification . Except in the event of, and to the extent
of, Landlord’s gross negligence or willful misconduct, Tenant
hereby indemnifies, defends, and holds Landlord, Agent,
Landlord’s members and their respective affiliates, owners,
partners, members, directors, officers, agents and employees
(collectively, “ Landlord Indemnified Parties ”)
harmless from and against any and all Losses (defined below)
arising from or in connection with any or all of: (a) the
conduct or management of the Premises or any business therein, or
any work or Alterations done, or any condition created by any or
all of Tenant and Tenant Parties in or about the Premises during
the Term or during the period of time, if any, prior to the
Commencement Date that Tenant has possession of, or is given access
to the Premises; (b) any act, omission or negligence of any or
all of Tenant and Tenant Parties; (c) any accident, injury or
damage whatsoever occurring in, at or upon the Premises and caused
by any or all of Tenant and Tenant Parties; (d) any breach by
Tenant of any or all of its warranties, representations and
covenants under this Lease; (e) any actions necessary to
protect Landlord’s interest under this Lease in a bankruptcy
proceeding or other proceeding under the Bankruptcy Code;
(f) the creation or existence of any Hazardous Materials in,
at, on or under the Premises, if and to the extent brought to the
Premises or caused by Tenant or any party within Tenant’s
control; and (g) any violation or alleged violation by any or
all of Tenant and Tenant Parties of any Law (collectively, “
Tenant’s Indemnified Matters ”). In case any
action or proceeding is brought against any or all of Landlord and
the Landlord Indemnified Parties by reason of any of Tenant’s
Indemnified Matters, Tenant, upon notice from any or all of
Landlord, Agent or any Superior Party (defined below), shall resist
and defend such action or proceeding by counsel
reasonably
10
satisfactory to, or selected by,
Landlord. The term “ Losses ” shall mean all
claims, demands, expenses, actions, judgments, damages (actual, but
not consequential), penalties, fines, liabilities, losses of every
kind and nature, suits, administrative proceedings, costs and fees,
including, without limitation, attorneys’ and
consultants’ reasonable fees and expenses, and the costs of
cleanup, remediation, removal and restoration, that are in any way
related to any matter covered by the foregoing indemnity. The
provisions of this Section 17.2 shall survive the
expiration or termination of this Lease.
17.3. Landlord
Indemnification . Landlord hereby indemnifies, defends and
holds Tenant harmless from and against any and all Losses actually
suffered or incurred by Tenant as the result of any gross
negligence, willful or intentional acts or omissions of any or all
of Landlord, Agent and any parties within the control of either or
both of Landlord and Agent and from the existence of any Hazardous
Materials in violation of Environmental Laws to the extent brought
to the Premises or due to a violation caused by Landlord or Agent
or any parties within the control of either or both of Landlord and
Agent. Notwithstanding anything to the contrary set forth in this
Lease, however, in all events and under all circumstances, the
liability of Landlord to Tenant, whether under this
Section 17.3 or any other provision of this Lease,
shall be limited to the interest of Landlord in the Premises, and
Tenant agrees to look solely to Landlord’s interest in the
Premises for the recovery of any judgment or award against
Landlord, it being intended that Landlord shall not be personally
liable for any judgment or deficiency. The provisions of this
Section 17.3 shall survive the expiration or
termination of this Lease.
17.4. Force
Majeure . From and after the Commencement Date, neither the
obligations of Tenant (except the obligation to pay Rent and the
obligation to maintain insurance, and provide evidence thereof, in
accordance with Section 10.2 ) nor those of Landlord
(except as otherwise specifically provided in Exhibit B )
shall be affected, impaired or excused, and neither Landlord nor
Tenant shall have any liability whatsoever to the other, with
respect to any act, event or circumstance arising out of either or
both (a) Landlord’s or Tenant’s, as the case may
be, failure to fulfill, or delay in fulfilling any of its
obligations under this Lease (except, with respect to Tenant, the
obligation to pay Rent and the obligation to maintain insurance,
and provide evidence thereof, in accordance with
Section 10.2 ) by reason of labor dispute, governmental
preemption of property in connection with a public emergency or
shortages of fuel, supplies, or labor, or any other cause, whether
similar or dissimilar, beyond Landlord’s or Tenant’s,
as the case may be, reasonable control; or (b) any failure or
defect in the supply, quantity or character of utilities furnished
to the Premises, or by reason of any requirement, act or omission
of any public utility or others serving the Premises, beyond
Landlord’s or Tenant’s, as the case may be, reasonable
control.
18. DAMAGE OR
DESTRUCTION .
18.1. Notification and
Repair; Rent Abatement . Tenant shall give prompt notice to
Landlord and Agent of (a) any fire or other casualty to the
Premises, and (b) any damage to, or defect in, any part or
appurtenance of the Premises’ sanitary, electrical, HVAC,
elevator or other systems. In the event that, as a result of
Tenant’s failure to promptly notify Landlord pursuant to the
preceding sentence, Landlord’s insurance coverage is
compromised or adversely affected, then Tenant is and shall be
responsible for the payment to Landlord of any insurance proceeds
that Landlord’s insurer fails or refuses to pay to Landlord
as a result of the delayed notification. Subject to the provisions
of Section 18.2 below, if the Premises is damaged by
fire or other insured casualty, Landlord shall repair (or cause
Agent to repair) the damage and restore and rebuild the Premises
(except Tenant’s personal property) with reasonable dispatch
after the adjustment of the insurance proceeds attributable to such
damage. Landlord (or Agent, as the case may be) shall use its
diligent, good faith efforts to make such repair or restoration
promptly and in such manner as not to unreasonably interfere with
Tenant’s use and occupancy of the Premises, but Landlord or
Agent shall not be required to do such repair or restoration work
except during normal business hours of business days. If the
Premises are partially damaged by fire or other casualty, the Rent
shall be proportionally abated to the extent of any actual loss of
use of the Premises by Tenant.
18.2. Total
Destruction . If, after the Commencement Date, the Premises
shall be totally destroyed by fire or other casualty, or, after the
Commencement Date, if the Premises shall be so damaged by fire or
other casualty that (in the reasonable opinion of a reputable
contractor or architect designated by Landlord): (i) its
repair or restoration requires more than 180 days or (ii) such
repair or restoration requires the expenditure of more than 50% of
the full insurable value of the Premises immediately prior to the
casualty, Landlord and Tenant shall each have the option to
terminate this Lease (by so advising the other, in writing) within
10 days after said contractor or architect delivers written notice
of its opinion to Landlord and Tenant, but in all events prior to
the commencement of any restoration of the Premises by Landlord.
Additionally, if the damage (x) is less than the amount stated
in (ii) above, but more than 10% of the full insurable value
of the Premises; and (y) occurs during the last two years of
Lease Term, then Landlord, but not Tenant, shall have the option to
terminate this Lease pursuant to the notice and within the time
period established pursuant to the im
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