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Lease Agreement

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CROWN GREEN ASSOCIATES, LLC | Crown Indiana Corp | FIRST INDIANA BANK, NA

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Title: LEASE
Governing Law: Indiana     Date: 4/23/2007

LEASE, Parties: crown green associates  llc , crown indiana corp , first indiana bank  na
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Exhibit 99.1

LEASE

between

CROWN GREEN ASSOCIATES, LLC ,

as Landlord,

and

FIRST INDIANA BANK, N.A.

as Tenant

Dated: April 17, 2007

 

FIRST INDIANA PLAZA, 9 TH AND 10 TH FLOORS
INDIANAPOLIS, INDIANA



TABLE OF CONTENTS

 

Article

Page

 

 

ARTICLE 1 LEASE OF PREMISES

    Section 1.1 Lease of Premises

 

 

    Section 1.2 Basic Lease Provisions

 

 

 

 

 

 

ARTICLE 2 TERM AND POSSESSION

 

 

    Section 2.1 Term

 

 

    Section 2.2 Construction of Tenant Finish
Improvements and Possession

 

 

    Section 2.3 Tenant’s Acceptance of the Premises

 

 

    Section 2.4 Surrender of the Premises

 

 

    Section 2.5 Holding Over

 

 

 

 

 

 

ARTICLE 3 RENT

 

 

    Section 3.1 Base Rent

 

 

    Section 3.2 Annual Rental Adjustment

 

 

    Section 3.3 Late Charges

 

 

    Section 3.4 Additional Rent

 

 

 

 

 

 

ARTICLE 4 SECURITY DEPOSIT

 

 

 

 

 

 

ARTICLE 5 OCCUPANCY AND USE

 

 

    Section 5.1 Occupancy

 

 

    Section 5.2 Covenants of Tenant Regarding Use

 

 

    Section 5.3 Landlord’s Rights Regarding Use

10 

 

 

    Section 5.4 Access to and Inspection of the Premises

11 

 

 

 

 

 

 

ARTICLE 6 UTILITIES AND OTHER BUILDING
SERVICES

11 

 

 

    Section 6.1 Services to be Provided

11 

 

 

    Section 6.2 Additional Services

12 

 

 

    Section 6.3 Interruption of Services

13 

 

 

 

 

 

 

ARTICLE 7 REPAIRS, MAINTENANCE,
ALTERATIONS, IMPROVEMENTS AND FIXTURES

14 

 

 

    Section 7.1 Repair and Maintenance of Building

14 

 

 

    Section 7.2 Repair and Maintenance of Premises

14 

 

 

    Section 7.3 Alterations or Improvements

14 

 

 

    Section 7.4 Trade Fixtures

15 

 

 

 

 

 

 

ARTICLE 8 FIRE OR OTHER CASUALTY;
CASUALTY INSURANCE

16 

 

 

    Section 8.1 Fire and Other Casualty

16 

 

 

    Section 8.2 Casualty Insurance

16 

 

 

    Section 8.3 Waiver of Subrogation

17 

 

 


 

 

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ARTICLE 9 GENERAL PUBLIC LIABILITY,
INDEMNIFICATION AND INSURANCE

17 

    Section 9.1 Indemnity

17 

    Section 9.2 Tenant’s Insurance

17 

    Section 9.3 Landlord’s Responsibility

18 

 

 

ARTICLE 10 EMINENT DOMAIN

18 

 

 

ARTICLE 11 LIENS

19 

 

 

ARTICLE 12 RENTAL, PERSONAL PROPERTY
AND OTHER TAXES

19 

 

 

ARTICLE 13 ASSIGNMENT AND SUBLETTING

20 

    Section 13.1 Assignment and Subletting

20 

    Section 13.2 Restriction on Assignment and Subletting

21 

    Section 13.3 Intentionally Omitted

21 

 

 

ARTICLE 14 TRANSFERS BY LANDLORD

21 

    Section 14.1 Sale and Conveyance of the Building

21 

    Section 14.2 Subordination

21 

 

 

ARTICLE 15 DEFAULTS AND REMEDIES

22 

    Section 15.1 Defaults by Tenant

22 

    Section 15.2 Remedies of Landlord

23 

    Section 15.3 Default by Landlord and Remedies of Tenant

24 

    Section 15.4 Limitation of Landlord’s Liability

24 

    Section 15.5 Non-Waiver of Default s

24 

    Section 15.6 Attorneys’ Fees

25 

 

 

ARTICLE 16 LANDLORD’S RIGHT TO RELOCATE TENANT

25 

 

 

ARTICLE 17 NOTICE AND PLACE OF PAYMENT

25 

    Section 17.1 Notices

25 

    Section 17.2 Place of Payment

25 

 

 

ARTICLE 18 TENANT’S RESPONSIBILITY REGARDING
ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES

26 

    Section 18.1 Definitions

26 

    Section 18.2 Compliance

26 

    Section 18.3 Restrictions on Tenant

26 

    Section 18.4 Notices, Affidavits, Etc

27 

    Section 18.5 Landlord’s Rights

27 

    Section 18.6 Tenant’s Indemnification

27 


 

 

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ARTICLE 19 MISCELLANEOUS GENERAL PROVISIONS

27 

 

 

    Section 19.1 Condition of Premises

27 

    Section 19.2 Insolvency or Bankruptcy

28 

    Section 19.3 Common Areas

28 

    Section 19.4 Choice of Law

28 

    Section 19.5 Successors and Assigns

28 

    Section 19.6 Examination of Lease

28 

    Section 19.7 Time

28 

    Section 19.8 Defined Terms and Marginal Headings

28 

    Section 19.9 Prior Agreements

28 

    Section 19.10 Payment of and Indemnification for
                              Leasing Commissions

29 

    Section 19.11 Severability of Invalid Provisions

29 

    Section 19.12 Definition of the Relationship Between the Parties

29 

    Section 19.13 Disclosure

29 

    Section 19.14 Americans With Disabilities Act (“ADA”)

29 

    Section 19.15 Estoppel Certificate

29 

    Section 19.16 Memorandum of Lease

30 

    Section 19.17 Force Majeure

30 

    Section 19.18 Financial Statements

30 

    Section 19.19 Representations and Indemnifications

30 

    Section 19.20 Tenant’s Representations and Warranties

30 

    Section 19.21 Parking

30 

    Section 19.22 Existing Lease

31 

    Section 19.23 Renewal Option

31 

    Section 19.24 Right of First Refusal

32 

    Section 19.25 Expansion Option

32 

    Section 19.26 Signage

33 

    Section 19.27 Exclusive Use

33 

    Section 19.28 Retail Lease

33 

    Section 19.29 Antenna

34 

    Section 19.30 Quiet Enjoyment

34 

    Section 19.31 Consents and Approvals

34 

 

 

Exhibits:

 

    A-1    -          Legal Description  

 

    A-2    -          Premises

  

    B        -          Work Letter

  

    C        -          Rules and Regulations

  

    D        -          Estoppel Certificate

  


 

 

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LEASE

 

THIS LEASE (this “Lease” ) is made this ______ day of February, 2007, by and between CROWN GREEN ASSOCIATES, LLC , a Delaware limited liability company ( “Landlord” ), and FIRST INDIANA BANK, N.A. , a national banking association ( “Tenant” ).

ARTICLE 1

LEASE OF PREMISES

Section 1.1                   Lease of Premises . Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, subject to all of the terms and conditions hereinafter set forth, office space in that certain twenty-eight (28) floor office building (including six floors of parking) which is commonly known as First Indiana Plaza located at 135 North Pennsylvania Street in Indianapolis, Indiana, and which is situated on the tract of land described in Exhibit A-1 attached hereto (the “Building” ) for the term hereinafter specified. The space in the Building hereby leased to Tenant is set forth in Item A of the Basic Lease Provisions and is designated on Exhibit A-2 attached hereto (the “Premises” ). Tenant shall also have the non-exclusive use of the freight dock accessible from Wabash Street with access to the freight elevator, with availability to all floors of the Building.

Section 1.2                  Basic Lease Provisions .

A. Premises: The entire office space located on the ninth (9 th ) floor and tenth (10 th ) floor of the Building.

B. Rentable Area of Premises: 37,382 square feet in the aggregate allocated as 18,691 square feet on the ninth (9 th ) floor and 18,691 square feet on the tenth (10 th ) floor.

C. Building Expense Percentage: 8.84%, based on dividing the Rentable Area of the Premises set forth above (37,382) by 422,717, being the rentable area of the Building.

D. Base Rent:

Period

Base Rent Per Square Foot of Rentable Area

Annual Base Rent

Monthly Base Rent

Years 1 – 12

$19.00

$710,258.00

$59,188.17

 

E. Term: Twelve (12) years.

F. Target Commencement Date: July 15, 2007, subject to the substantial completion of Tenant Improvements. Substantial completion shall mean the completion of the Tenant Improvements (including all movable walls and partitions) in a condition ready for Tenant to operate its business in the Premises.


 

 

 

 


G. Security Deposit: Zero.

H. Broker(s): Mansur Real Estate Services, Inc. representing Landlord and Newmark Southern Region, LLC representing Tenant.

I. Permitted Use: General office use and other purposes related to banking activities.

J. Address for notices and payments as follows:

Landlord

 

c/o Crown Properties, Inc.
First Indiana Plaza
135 North Pennsylvania Street
Indianapolis, Indiana 46204
Attn: Ms. Julie Clements

 

With copies to:

 

Crown Properties, Inc.
400 Garden City Plaza, Suite 111
Garden City, New York 11530

 

And to:

 

Platte, Klarsfeld, Levine & Lachtman, LLP
10 East 40 th Street, 46 th Floor
New York, New York 10016
Attn: David R. Lachtman, Esq.

 

With Rental Payments to:

 

Crown Properties, Inc.
400 Garden City Plaza, Suite 111
Garden City, New York 11530

 

Tenant:

 

First Indiana Bank, N.A.
900 First Indiana Plaza
135 North Pennsylvania Street
Indianapolis, IN 46204
Attn: Mr. William Brunner

 

With copies to:

 

First Indiana Bank, N.A.
1300 Windhorst Way
Greenwood, IN 46143
Attn: Mr. Jack Thompson

 

K. Storage Space: During the Lease Term and subject to availability, Landlord shall provide storage space in the Building at the rate of $11.00 per square foot.

 

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ARTICLE 2

TERM AND POSSESSION

Section 2.1                  Term . The term of this Lease shall be the period of time specified in Item E of the Basic Lease Provisions ( “Original Term” ) and shall commence on (i) the Target Commencement Date as provided in Item F of the Basic Lease Provisions (and as further described in the Work Letter attached hereto as Exhibit B ); or (ii) upon such earlier date as Tenant commences operations in the Premises. Tenant’s possession or use of the Premises under Section 2.2 shall not cause the commencement of the Lease. The date of commencement as defined above, hereinafter called the “Commencement Date,” and the “ Expiration Date ” shall be confirmed by Tenant as provided in Section 2.3. As used in this Lease, “ Lease Term ” shall include the Original Term and any renewal thereof.

Section 2.2                  Construction of Tenant Finish Improvements and Possession . Except to the extent otherwise specifically provided in this Lease, Landlord is leasing the Premises “as is” without representation or warranty. Notwithstanding the foregoing, Landlord shall, at its sole cost and expense, refurbish the restrooms servicing the Premises (collectively “Landlord’s Work” ), and shall cause Landlord’s Work to be completed in a good and workmanlike manner, using Building-standard materials and finishes. Tenant acknowledges that as of the date hereof, Landlord has substantially completed a portion of Landlord’s Work associated with the improvements to the restrooms on the ninth (9 th ) floor, and that the improvements to the restrooms on the tenth (10 th ) floor shall be substantially similar to the ninth (9 th ) floor with regard to materials and finishes.

Landlord shall provide Tenant with a “Space Planning Allowance” in an amount equal to Seventeen Cents ($0.17) multiplied by the square footage leased to Tenant hereunder. Landlord shall pay such Space Planning Allowance to Tenant within thirty (30) days of receipt of Tenant’s invoice for such space planning. Landlord shall also provide Tenant with a “Tenant Improvement Allowance” equal to Twenty-Five Dollars ($25.00) multiplied by the square footage leased to Tenant hereunder. The Tenant Improvement Allowance may be used by Tenant to pay for the Tenant Improvements (as hereinafter defined). Landlord shall pay the Tenant Improvement Allowance to Tenant upon receipt from Tenant of an invoice from Tenant showing that such expenses have been incurred and paid along with a waiver of lien for the funds to be disbursed under each respective invoice from each contractor participating in the Tenant Improvements. If the cost of completing Tenant’s Improvements is less than the Tenant Improvement Allowance and the Space Planning Allowance, Landlord shall at its option pay the difference in a lump sum to Tenant within thirty (30) days after Landlord receives Tenant’s first rent payment under the Lease, or provide Tenant with a credit toward the next installment(s) of Monthly Base Rent.

Tenant shall undertake completion of Tenant’s work (the “Tenant Improvements” ) in accordance with the Work Letter at Tenant’s cost and expense by a contractor reasonably acceptable to Landlord, in accordance with the plans and specifications described therein. Tenant’s architect shall prepare all architectural plans and construction documents required for the construction of the Tenant Improvements. Landlord shall assume the responsibility for the

 

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preparation of all site, structural, mechanical, electrical and plumbing drawings for the base building and common areas, and Landlord shall pay for test fit studies. The cost of all design and engineering fees specific to the Tenant Improvements shall be paid by Tenant but the Tenant Improvement Allowance and Space Planning Allowance may be used for such costs. Landlord, at Landlord’s expense, shall renovate the restrooms in the Premises in accordance with the renovation plan described in the Work Letter. Landlord shall coordinate Landlord’s Work with Tenant construction of the Tenants Improvements pursuant to the schedule set forth in the Work Letter. Tenant shall have access to the Premises commencing on the execution of this Lease for purposes of constructing the Tenant’s Improvements.

Section 2.3                  Tenant’s Acceptance of the Premises . Upon completion of Landlord’s Work and the Tenant Improvements, (a) Landlord and Tenant shall execute a “punch list” identifying such portions of the Landlord’s Work required under the Work Letter which remain uncompleted, and (b) Tenant shall execute a letter of understanding acknowledging (i) the Commencement Date and Expiration Date of this Lease, and (ii) that Tenant has accepted the Premises for occupancy and the condition of the Premises, including the tenant finish improvements constructed therein (other than the items identified for the punch list), was at that time satisfactory and in conformity with the provisions of this Lease in all respects. Landlord shall within thirty (30) day thereafter correct all such punch list items. If Tenant takes possession of and occupies the Premises and begins conducting its business operations therein, Tenant shall be deemed to have accepted the Premises in the manner described in this Section 2.3, even though the punch list and the letter of understanding provided for herein may not have been executed by Tenant.

Section 2.4                  Surrender of the Premises . Upon the expiration or earlier termination of this Lease, or upon the exercise by Landlord of its right to re-enter the Premises without terminating this Lease, Tenant shall immediately surrender the Premises to Landlord, together with all alterations, improvements and other property as provided elsewhere herein, in broom-clean condition and in good order, condition and repair, except for ordinary wear and tear and damage which Tenant is not obligated to repair, failing which Landlord may restore the Premises to such condition at Tenant’s expense. Upon such expiration or termination, Tenant shall have the right to remove its personal property (as described in Article 7). Any property remaining in the Premises after the expiration or termination of this Lease shall be deemed abandoned and Landlord shall have the right to remove and dispose of such property at Tenant’s sole cost and expense. Tenant shall, at its expense, promptly repair any damage caused by any such removal, and shall restore the Premises to the condition existing prior to the installation of the items so removed.

Section 2.5                  Holding Over . If Tenant, without the prior written consent of the Landlord, holds over and remains in possession of the Premises or any part thereof after the expiration or earlier termination of this Lease or Tenant’s right to possession hereunder, Tenant shall be deemed to hold the Premises as a month to month tenant, subject to all of the terms, conditions and covenants of this Lease (which shall be applicable during the holdover period), except that the monthly Base Rent payable during such holdover period shall be an amount equal to 150% of the monthly installments of Base Rent payable at the time of such expiration or

 

4

 


earlier termination. Notwithstanding the foregoing provision, no holding over by Tenant shall operate to extend this Lease, and in the event Tenant holds over in the Premises for a period in excess of sixty (60) days following the Expiration Date, Tenant shall be liable for all damages to Landlord, both direct and consequential, attributable to such holding over. The provisions of this paragraph do not waive Landlord’s right of re-entry or right to regain possession by actions at law or in equity or by any other rights hereunder.

ARTICLE 3

RENT

Section 3.1                   Base Rent . Tenant shall pay to Landlord as Base Rent for the Premises the amounts specified in Item D of the Basic Lease Provisions, which Base Rent shall be payable in monthly installments as specified, in advance, without deduction or offset, on or before the first day of each and every calendar month during the Lease Term; provided, however, that if the Commencement Date shall be a day other than the first day of a calendar month or the Expiration Date shall be a day other than the last day of a calendar month, the Base Rent for such first or last fractional month shall be prorated on the basis of the number of days during the month this Lease was in effect in relation to the total number of days in such month.

Section 3.2                   Annual Rental Adjustment .

A.                  Definitions . For purposes of this Section 3.2, the following definitions shall apply:

1.                   Annual Rental Adjustment shall mean an amount for each calendar year subsequent to the Base Year equal to Tenant’s Building Expense Percentage multiplied by the difference between (a) the amount of Operating Expenses for such calendar year and (b) the amount of Operating Expenses for the Base Year. In no event shall the Annual Rental Adjustment for any year during the term hereof be less than zero.

2.                    Operating Expenses shall mean the amount of all of Landlord’s direct costs and expenses paid or incurred in owning, managing, operating and maintaining the Building (including without limitation the Common Areas as defined in Section 19.3, and the land described in Exhibit A-1 , but excluding the expenses associated with the operation of the parking garage) for a particular calendar year as determined by Landlord in accordance with generally accepted accounting principles, consistently applied, including all additional direct costs and expenses of ownership, management, operation and maintenance of the Building which Landlord reasonably determines that it would have paid or incurred during such year if the Building had been fully occupied, including by way of illustration and not limitation: all general real estate taxes and all special assessments levied against the Building (hereinafter called “real estate taxes” ), other than penalties for late payment; costs and expenses of contesting the validity or amount of real estate taxes, including, without limitation, reasonable attorneys’

 

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fees; insurance premiums, water, sewer, electrical and other utility charges other than the separately billed electrical and other charges paid by Tenant as provided in this Lease or similarly paid by any other tenant or any other party; service and other charges incurred in the operation and maintenance of the elevators and the heating, ventilation and air-conditioning system; cleaning and other janitorial services; tools and supplies; repair costs; landscape maintenance costs; security services; license, permit and inspection fees; management fees (excluding leasing fees or commissions); wages and related employee benefits payable for the maintenance and operation of the Building; amortization over such period as Landlord shall reasonably determine of capital improvements made to the Building that reduce operating costs together with interest at the rate of twelve percent (12%) per annum on the unamortized balance thereof; and in general all other costs and expenses which would, under generally accepted accounting principles, be regarded as operating and maintenance costs and expenses, including those which would normally be amortized over a period not to exceed five (5) years, but excluding any allowances for depreciation or credits or payments for interest or amortization of any debt. If Landlord is required by the first mortgagee of the Building to establish a reserve fund for replacement of any portion or element of the Building or the maintenance thereof the cost of which maintenance or replacement would have been treated as an Operating Expense under the foregoing portion of this definition, reasonable deposits made to such reserve account shall be treated as an Operating Expense but expenditures from the reserve account may be made only for the purpose of which it was established and such expenditures shall not be treated as an Operating Expense when made. There shall also be included in Operating Expenses the cost or portion thereof reasonably allocable to the Building, amortized over such period as Landlord shall reasonably determine, together with interest at the rate of twelve percent (12%) per annum on the unamortized balance, of any capital improvements made to the Building by Landlord after the date of this Lease which are required under any governmental law or regulation that was not applicable to the Building at the time it was constructed. In the event that any service or supply, the cost of which is to be treated as an Operating Expense, is procured from any party or entity that is in any manner related to the Landlord, such portion or the cost thereof as is reasonable and ordinary for such service or supply in the Indianapolis market in transaction between unrelated parties shall be included in Operating Expenses.

3.                   Building Expense Percentage shall mean the percentage specified in Item C of the Basic Lease Provisions.

4.                   Base Year shall mean calendar year 2007.

B.                  Payment Obligation . In addition to the Base Rent specified in this Lease, Tenant shall pay to Landlord as additional rent for the Premises, in each calendar year or partial calendar year, during the term of this Lease, an amount equal to the Annual Rental Adjustment for such calendar year.

 

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1.                   Payment of Estimated Annual Rental Adjustment . The Annual Rental Adjustment shall be estimated annually by Landlord, and written notice thereof shall be given to Tenant at least thirty (30) days prior to the beginning of each calendar year. Tenant shall pay to Landlord each month, at the same time the Base Rent is due, an amount equal to one-twelfth (1/12) of the estimated Annual Rental Adjustment.

2.                   Increases in Estimated Annual Rental Adjustment . If Landlord’s estimate of Operating Expenses increases during a calendar year, Landlord may increase the estimated Annual Rental Adjustment during such year by giving Tenant written notice to that effect, and thereafter Tenant shall pay to Landlord, in each of the remaining months of such year, an amount equal to the amount of such increase in the estimated Annual Rental Adjustment divided by the number of months remaining in such year.

3.                   Adjustment to Actual Annual Rental Adjustment . Within one hundred twenty (120) days of the end of each calendar year, Landlord shall prepare and deliver to Tenant a statement showing the actual Annual Rental Adjustment for such calendar year. Within thirty (30) days after receipt of the aforementioned statement, Tenant shall pay to Landlord, or Landlord shall credit against the next rent payment or payments due from Tenant, as the case may be, the difference between the actual Annual Rental Adjustment for such calendar year and the estimated amount paid by Tenant during such year. If this Lease shall commence, expire or be terminated on any date other than the last day of a calendar year, then the Annual Rental Adjustment for such partial calendar year shall be prorated on the basis of the number of days during the year this Lease was in effect in relation to the total number of days in such year. The obligations of Landlord and Tenant under this Section 3.2B.3 shall survive the expiration or sooner termination of this Lease.

4.                   Tenant Verification . Tenant or its accountants shall have the right to inspect, at reasonable times and in a reasonable manner at Landlord’s management office located at the Building, during the ninety (90) day period following the delivery of Landlord’s statement of the actual amount of the Annual Rental Adjustment, such of Landlord’s books of account and records as pertain to and contain information concerning such costs and expenses in order to verify the amounts thereof. Tenant agrees that any information obtained during its inspection of Landlord’s books of account and records and any audit of such records delivered by Landlord to Tenant shall be kept in strict confidence by Tenant and its agents and employees and shall not be disclosed to any other parties except as required by law. Unless Tenant shall take written exception of any item and any such statement within such ninety (90) day period, such statement shall considered final and accepted by Tenant.

 

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5.                   Cap On Expenses . Commencing with the calendar year 2009, Landlord agrees that in calculating Tenant’s Proportionate Share of Operating Expenses pursuant to this Section 3.02, Operating Expenses shall not include Controllable Operating Expenses (as hereinafter defined) applicable to the Leased Premises which exceed four percent (4%) per calendar year over the Controllable Operating Expenses calculated on a cumulative basis per calendar year over the term of this Lease ( “Controllable Expense Cap” ).  For example, assuming Controllable Operating Expenses of $100 for the calendar year 2009, the total of such expenses would be capped at $104 for the calendar year 2010 and $108.16 for the calendar year 2011, and so on.  “Controllable Operating Expenses” mean all Operating Expenses within Landlord’s reasonable and direct control, either due to contracts with the providers of services or items for the Building which permit such control by Landlord, or due to such contracts which are cancelable by Landlord without cause on not more than thirty (30) days’ notice and replaceable with contracts from other equally capable providers of substantially the same services or items for the Building, but specifically excluding real estate taxes, utility expenses and insurance premiums.  If the term of this Lease expires on a date other than December 31 of a calendar year, the last calendar year will be prorated on a per diem basis and the calculation of the Controllable Expense Cap adjusted appropriately.  This Section shall survive the expiration or termination of the Lease.

 

Section 3.3                    Late Charges . In the event Tenant fails to pay within ten (10) days after the same is due and payable any installment of Base Rent or any other sum or charge required to be paid by Tenant to Landlord under this Lease, such unpaid amount shall bear interest from the due date thereof to the date of payment at the annual rate of three (3) percentage points above the rate then most recently announced by Citibank, N.A., or its successor, as its corporate base lending rate, as such corporate base lending rate may change from time to time during the term of this Lease, or the highest rate permitted under applicable law, whichever is less, until paid. The payment of such interest shall not excuse or cure any default of Tenant under this Lease.

 

Section 3.4                  Additional Rent . All sums due from Tenant to Landlord hereunder, whether denominated as Base Rent, Annual Adjustment Rental, or otherwise, shall be deemed “rent” under this Lease. The payment of rent hereunder is independent of each and every covenant and agreement contained in this Lease, and rent shall be paid without set-off, abatement, counterclaim or deduction whatsoever.

 

ARTICLE 4

SECURITY DEPOSIT

The parties acknowledge that Landlord is not requiring Tenant to deliver a security deposit upon execution of this Lease. Notwithstanding the foregoing, if Tenant fails to pay Base Rent and/or Additional Rent within the time frames prescribed above on more than two (2) occasions in any twelve (12) month period, Landlord hereby reserves its rights to require Tenant

 

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to deliver a security deposit to Landlord in an amount not to exceed one (1) month of Base Rent.

Such sum shall be held by Landlord as a security deposit during the term of this Lease. If Tenant performs and observes all of the terms, conditions and covenants of this Lease which are required to be performed and observed by it, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within sixty (60) days after the expiration of this Lease or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant in the payment of rent or the performance or observance of any of the other terms, conditions, or covenants of this Lease, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, within five (5) days after Landlord’s demand therefor, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the term of this Lease the full amount of the security deposit. Landlord shall not be required to hold the security deposit as a separate account, but may commingle it with Landlord’s other funds.

In the event of a sale of the Building, Landlord shall have the right to transfer the security deposit to its purchaser, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser for the return of such deposit. In the event of an assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility for the return of such deposit to the assignor.

 

ARTICLE 5

OCCUPANCY AND USE

Section 5.1                   Occupancy . Tenant shall use and occupy the Premises for the purposes set forth in Item I of the Basic Lease Provisions and shall not use the Premises for any other purpose whatsoever without the written consent of Landlord.

Section 5.2                  Covenants of Tenant Regarding Use . In connection with its use of the Premises, Tenant agrees to do the following:

A.                  Tenant shall (i) use and maintain the Premises and conduct its business thereon in a safe, careful, reputable and lawful manner, (ii) comply with all laws, rules, regulations, orders, ordinances, directions and requirements of any governmental authority or agency, now in force or which may hereafter be in force, including without limitation those which shall impose upon Landlord or Tenant any duty with respect to or triggered by a change in the use or occupation of, or any improvement or alteration to, the Premises, (iii) comply with and obey all reasonable directions of the Landlord, including the Building’s Rules and Regulations attached hereto as Exhibit C and as may be modified from time to time by Landlord on reasonable notice to Tenant, and (iv) shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure or

 

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annoy them. Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Building of any of the Building Rules and Regulations but agrees to take reasonable measures to ensure all other tenant’s compliance. Any modification of the Building Rules and Regulations shall be equally applicable to all tenants in the Building and shall not impose any additional obligations on Tenant or materially restrict Tenant’s use of the Premises. If any Building Rule or Regulation is inconsistent with any express provision of this Lease, the express provision of this Lease shall control.

B.                  Tenant shall not overload the floors of the Premises beyond their designed weight-bearing capacity, which Landlord has determined to be eighty (80) pounds per square foot live load, including an allowance for partition load, except for a portion of the floor space which will require greater load capacity, as specifically provided in Tenant’s Plans. Landlord reserves the right to direct the positioning of all heavy equipment, furniture and fixtures which Tenant desires to place in the Premises so as to distribute properly the weight thereof, and to require the removal of any equipment or furniture which exceeds the weight limit specified herein.

C.                  Tenant shall not use the Premises, or allow the Premises to be used, for any purpose or in any manner which would, in Landlord’s reasonable opinion, invalidate any policy of insurance now or hereafter carried on the Building or increase the rate of premiums payable on any such insurance policy. Should Tenant fail to comply with this covenant, Landlord may, at its option, require Tenant to stop engaging in such activity or to reimburse Landlord as additional rent for any increase in premiums charged on the insurance carried by Landlord on the Premises and attributable to the use being made of the Premises by Tenant.

D.                  Except as provided in Section 19.26, Tenant shall not inscribe, paint, affix or display any signs, advertisements or notices on the Building, except for such tenant identification information as Landlord permits to be included or shown on the directory board in the main lobby and on or adjacent to the access door or doors to the Premises. The parties acknowledge that Tenant has and shall continue to have signage rights on the top of the Building as provided in Section 19.26.

Section 5.3                   Landlord’s Rights Regarding Use . In addition to the rights specified elsewhere in this Lease, Landlord shall have the following rights regarding the use of the Premises or the Common Areas by Tenant, its employees, agents, customers and invitees, each of which may be exercised without notice or liability to Tenant:

A.                  Landlord may install such tenant identification information on the directory board as it shall deem necessary or proper.

B.                  Landlord shall approve or disapprove, prior to installation, all types of drapes, shades and other window coverings used in the Premises, and may control all internal lighting that may be visible from outside the Premises.

 

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C.                  Except as provided in Section 19.26, Landlord shall approve or disapprove all sign painting and lettering used in the Premises and the Building.

D.                  Landlord may grant to any person the exclusive right to conduct any business or render any service in the Building, provided that such exclusive right shall not operate to limit Tenant from using the Premises for the use permitted in Item I of the Basic Lease Provisions; and provided further that, so long as this Lease is in effect, Landlord shall not allow anyone other than Tenant to operate a retail bank or place an automatic teller machine in the Building as provided in Sections 19.27 and 19.28.

E.                   Landlord may control the Common Areas in such manner as it deems necessary or proper, including without limitation, requiring all persons entering or leaving the Building to identify themselves and their business in the Building to a security guard; excluding or expelling any peddler, solicitor or loud or unruly person from the Building; and closing or limiting access to the Building or any part thereof, including entrances, corridors, doors and elevators, during times of emergency, repairs or after regular business hours. Notwithstanding the foregoing, except in the event of an emergency, the Premises shall be available to Tenant, its employees and normal bank messenger services at all times.

 

Section 5.4                   Access to and Inspection of the Premises . Landlord, its employees and agents and any mortgagee of the Building shall have the right to enter any part of the Premises at reasonable times for the purposes of examining or inspecting the same, showing the same to prospective purchasers, mortgagees or tenants and making such repairs, alterations or improvements to the Premises or the Building as Landlord may deem necessary or desirable. If representatives of Tenant shall not be present to open and permit such entry into the Premises at any time when such entry is necessary or permitted hereunder, Landlord and its employees and agents may enter the Premises by means of a master or pass key or otherwise. Notwithstanding the foregoing, access to Tenant’s computer and permanent record rooms shall be available only on advance notice to Tenant and at such times and under such conditions as Tenant reasonably may establish. Landlord shall not be given a master or pass key to such areas. Landlord shall incur no liability to Tenant for such entry, nor shall such entry constitute an eviction of Tenant or a termination of this Lease, or entitle Tenant to any abatement of rent therefore. The rights of access provided in this Section 5.4 shall be exercised in a manner that will make the minimum interference with Tenant’s use and occupancy of the Premises consistent with the need for the exercise of such rights. All rights under this Section 5.4 are subject to the security regulations necessitated by Tenant’s business and by applicable federal and/or state regulations.

ARTICLE 6

UTILITIES AND OTHER BUILDING SERVICES

Section 6.1                   Services to be Provided . Landlord shall furnish to Tenant, except as noted below, the following utilities and other building services to the extent reasonably necessary for Tenant’s comfortable use and occupancy of the Premises for general office use or

 

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as may be required by law or directed by governmental authority and in a manner consistent with other similar Class A office buildings in the downtown Indianapolis area:

A.                  Heating, ventilation and air-conditioning between the hours of 8:00 a.m. and 6:00 p.m. Monday through Friday and 9:00 a.m. to 1:00 p.m. on Saturday of each week except on legal holidays. Landlord shall also furnish heat and air conditioning at such other times as are not provided for above on not less than twenty-four (24) hours notice of Tenant’s need for such additional heating or air conditioning, provided Tenant pays to Landlord its regular charges for such additional heating and air conditioning. Such charges shall be deemed additional rent under this Lease.

B.                  Subject to interruptions beyond Landlord’s control, electrical current not to exceed four (4) watts per square foot. At all times Tenant’s use of electric current shall never exceed the capacity of the feeders to the Building or the risers or wiring installation;

C.                  Water in the Common Areas for lavatory and drinking purposes and water for lavatories, restrooms and shower facilities shown on Tenant’s Plans;

D.                  Automatic elevator service;

E.                   Cleaning and janitorial service for the Premises and Common Areas, including the supplying and installing of paper towels, toilet tissue and soap in the Common Areas on Monday through Friday of each week except legal holidays; provided, however, Tenant shall be responsible for carpet cleaning other than routine vacuuming;

F.                   Washing of windows at intervals reasonably established by Landlord, not less frequently than one (1) time each year for the interior windows and two (2) times each year for exterior windows;

G.                  Replacement of all lamps, bulbs, starters and ballasts in Building standard lighting as required from time to time as a result of normal usage;

H.                  Cleaning and maintenance of the Common Areas, including the removal of rubbish and snow; and

I.                     Repair and maintenance to the extent specified elsewhere in this Lease.

 

Section 6.2                   Additional Services . If Tenant requests any other utilities or building services in addition to those identified above or any of the above utilities or building services in frequency, scope, quality or quantity substantially greater than those which Landlord reasonably determines are normally required by other tenants in the Building for general office use (i.e. electrical service and condenser water unless same are separately submetered for Tenant as set forth herein), then Landlord shall use reasonable efforts to attempt to furnish Tenant with such additional utilities or building services. In the event Landlord is able to and does furnish

 

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such additional utilities or building services, the costs thereof shall be borne by Tenant, who shall reimburse Landlord monthly for the same as additional rent at the same time monthly installments of Base Rent and other additional rent is due.

If any lights, machines or equipment (including but not limited to computers) used by Tenant in the Premises materially affect the temperature otherwise maintained by the Building’s air-conditioning system or generate substantially more heat in the Premises than that which would normally be generated by the lights and business machines typically used by other tenants in the Building or by tenants in comparable office buildings, then Landlord shall have the right to install any machinery or equipment which Landlord considers reasonably necessary in order to restore the temperature balance between the Premises and the rest of the Building, including equipment which modifies the Building’s air-conditioning system. All costs expended by Landlord to install any such machinery and equipment and any additional costs of operation and maintenance occasioned thereby shall be borne by Tenant, who shall reimburse Landlord for the same as provided in this Section 6.2.

Tenant shall not install or connect any electrical equipment other than the business machines, computers and other equipment typically used for general office purposes by tenants in office buildings comparable to the Building without Landlord’s prior written consent. If Landlord reasonably determines that the electricity used by the equipment to be so installed or connected exceeds the designed load capacity of the Building’s electrical system or is in any way incompatible therewith, then Landlord shall have the right, as a condition to granting its consent, to make such modifications to the electrical system or other parts of the Building or Premises, or to require Tenant to make such modifications to the equipment to be installed or connected, as Landlord considers to be reasonably necessary before such equipment may be so installed or connected. The cost of any such modifications shall be borne by Tenant, who shall reimburse Landlord for the same (or any portion thereof paid by Landlord) as provided in this Section 6.2. Tenant’s computer area will be separately sub-metered as further described in the previous paragraph.

Section 6.3                  Interruption of Services . Tenant understands, acknowledges and agrees that any one or more of the utilities or other building services identified in Section 6.1 may be interrupted by reason of accident, emergency or other causes beyond Landlord’s control, or may be discontinued or diminished temporarily by Landlord or other persons until certain repairs, alterations or improvements can be made; that Landlord does not represent or warrant the uninterrupted availability of such utilities or building services, and that any such temporary interruption that is beyond Landlord’s control shall not be deemed an eviction or disturbance of Tenant’s right to possession, occupancy and use of the Premises or any part thereof, or render Landlord liable to Tenant for damages by abatement of rent or otherwise, or relieve Tenant from the obligation to perform its covenants under this Lease. Landlord shall give Tenant reasonable notice of Landlord’s intention of performing any repairs, alterations or improvements that will or might result in an interruption or diminishment of services and shall exert all reasonable efforts to limit the length of any such interruption. Landlord shall use special care to avoid interruption of electrical service to Tenant’s computers and other data processing equipment unless absolutely necessary.

 

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ARTICLE 7

REPAIRS, MAINTENANCE, ALTERATIONS, IMPROVEMENTS AND FIXTURES

Section 7.1                  Repair and Maintenance of Building . Subject to Section 7.2 and except for any repairs made necessary by the negligence, misuse, or default of Tenant, its employees, agents, customers and invitees, Landlord shall make all necessary repairs to the exterior walls, exterior doors, windows, corridors and other Common Areas, and Landlord shall keep the Building in a safe, clean and neat condition and shall keep all equipment used in common with other tenants, such as elevators, plumbing, heating, air conditioning and similar equipment, in good condition and repair consistent with Class A office space in the downtown Indianapolis market. Except as provided in Article 8 and Article 10 hereof, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or in or to any fixtures, appurtenances and equipment therein or thereon.

Section 7.2                  Repair and Maintenance of Premises . Tenant shall, at its sole cost and expense, keep and maintain the Premises, exclusive of the restrooms and the heating and air-conditioning equipment servicing the Premises and any other repair or maintenance which is the obligation of Landlord under this Lease, in good order, condition and repair, subject to ordinary wear and tear and damage which Tenant is not obligated to repair as provided elsewhere in this Lease. Tenant shall, at its sole cost and expense, keep and maintain, to the extent installed, any supplemental air-conditioning unit for the server room located in the Premises in good order, condition and repair.

Section 7.3                   Alterations or Improvements . Except as shown on Tenant’s Plans, Tenant shall not make or permit alterations of or upon any part of the Premises or additions to the Premises (collectively, “Alterations” ) without first obtaining the written consent of Landlord. Tenant shall at its sole expense and cost, ensure that all Alterations shall be made in accordance with all applicable laws, rules, codes, ordinances and regulations in a good and workmanlike manner and in quality equal to or better than the original construction of the Premises or Building, and Tenant shall comply with such requirements as Landlord considers necessary or desirable. Before commencement of any Alterations or delivery of any materials unto the Premises or the Building, Tenant shall furnish to Landlord, for its prior written approval, plans and specifications certified by a licensed architect or engineer approved by Landlord, which approval shall not be unreasonably withheld, and such other documentation as Landlord shall reasonably request in connection with the Alterations. Landlord’s consent to any such Alterations shall create no responsibility or liability on the part of Landlord for the completeness, design, sufficiency, or compliance with laws, rules, codes, ordinances, or regulations of such Alterations or the plans, specifications or working drawings therefore. Tenant shall promptly pay all costs attributable to such Alterations (including, without limitation, Landlord’s reasonable costs of reviewing plans and materials submitted to Landlord for approval, which shall not exceed $750.00) and shall promptly repair any damage to the Premises, Building or Common Areas caused by or resulting from such Alterations. Any such Alterations shall remain for the benefit of Landlord, provided, however, that Landlord may elect upon thirty (30) days’

 

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prior written notice to Tenant to require that Tenant, at its expense, remove at the expiration or earlier termination of this Lease all or a portion of the Alterations made by Tenant and repair any damage caused by such removal. Tenant’s obligations under this Section shall survive the expiration or earlier termination of this Lease.

If Landlord permits Tenant to perform any Alterations, then in addition to the requirements set forth above in this Section 7.3, the following shall apply: (i) prior to the commencement of the Alterations or the delivery of any materials to the Building, Tenant shall submit to Landlord, for Landlord’s approval, copies of the contracts, names, and addresses of all contractors, necessary permits and licenses, certificates of insurance (including, without limitation, Workmen’s Compensation and comprehensive general liability) and instruments of indemnification and waivers of lien against any and all claims, costs, expenses, damages and liabilities which may arise in connection with the Alterations, all in such form and amount as shall be reasonably satisfactory to Landlord; (ii) all such Alterations shall be done only by contractors or mechanics approved by Landlord (which approval shall not be unreasonably withheld) and at such time and in such manner as Landlord may from time to time reasonably designate; (iii) upon completion of any Alterations, Tenant shall furnish Landlord with contractors’ affidavits, full and final waivers of lien, receipted bills covering all labor and materials expended and used in connection with such Alterations; and (iv) all such Alterations shall comply with all insurance requirements and all laws, ordinances, rules and regulations of all governmental authorities, and shall be done in a good and workmanlike manner and with the use of good grades of materials.

Tenant shall indemnify and save harmless Landlord from all costs, loss or expense in connection with Alterations. No person shall be entitled to any lien directly or indirectly derived through or under Tenant or through or by virtue of any act or omission of Tenant upon the Premises for any improvements or fixtures made thereon or installed therein or for or on account of any labor or material furnished to the Premises or for or on account of any matter or thing whatsoever; and nothing in this Lease contained shall be construed to constit


 
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