CENTERPOINT PROPERTIES
TRUST
ELGIN SWEEPER COMPANY, a Delaware
corporation
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PAGE
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GRANT AND
TERM
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1
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RENT
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2
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IMPOSITIONS
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6
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USE
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9
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UTILITIES
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10
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INSURANCE
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10
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RETURN OF
PREMISES
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15
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HOLDING
OVER
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16
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CONDITION AND
CARE OF PREMISES
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16
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RIGHTS RESERVED
TO LANDLORD
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17
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ALTERATIONS
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18
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ASSIGNMENT AND
SUBLETTING
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19
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WAIVER OF
CERTAIN CLAIMS; INDEMNITY BY TENANT
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20
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USE OF CASUALTY
INSURANCE PROCEEDS
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22
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EMINENT
DOMAIN
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25
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DEFAULT
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25
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SUBORDINATION
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29
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MORTGAGEE
PROTECTION
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30
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ESTOPPEL
CERTIFICATE
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30
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EXTENSION
OPTIONS
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31
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NONWAIVER
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32
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CORPORATION OR
PARTNERSHIP OR LIMITED LIABILITY COMPANY
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32
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REAL ESTATE
BROKERS
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32
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NOTICES
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32
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HAZARDOUS
MATERIALS
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33
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TITLE AND
COVENANT AGAINST LIENS
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39
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MISCELLANEOUS
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39
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EXCULPATORY
PROVISIONS
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42
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QUIET USE AND
ENJOYMENT
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42
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-i-
TABLE OF CONTENTS
(continued)
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Page
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FINANCIAL
STATEMENTS/CONFIDENTIALITY
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43
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RIGHT OF FIRST
OFFER
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43
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CROSS
DEFAULT
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44
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SECURITY
DEPOSIT
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45
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-ii-
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Legal
Description of Land
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Memorandum of
Lease
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List of Other
Leases
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Form of
Estoppel Letter
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Form of Letter
of Credit
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Base
Rent
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Trade Fixtures
and Personal Property
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THIS LEASE
(hereinafter the “ Lease ”) is made and entered
into as of the 2nd day of July, 2008, by and between CENTERPOINT
PROPERTIES TRUST, a Maryland real estate investment trust
(hereinafter, “ Landlord ”), and ELGIN SWEEPER
COMPANY, a Delaware corporation (hereinafter “ Tenant
”).
ARTICLE 1.
GRANT AND TERM
1.01 Grant of
Lease . Landlord, for and in consideration of the rents
reserved herein and of the covenants and agreements contained
herein on the part of Tenant to be performed, hereby leases to
Tenant, and Tenant hereby leases from Landlord, that certain
property legally described on Exhibit A attached hereto
and made a part hereof (the “ Land ”),
consisting of an approximately 217,011 square foot building located
on the Land and all improvements located thereon that exclusively
serve the Premises (as hereinafter defined), and commonly known as
1300 W. Bartlett Road, Elgin, Illinois (the “ Building
”), subject to any covenants, conditions, agreements,
easements, encumbrances and restrictions affecting the Land or the
Building, including without limitation any such matters of record,
as would be disclosed on a current survey, and/or as imposed by
applicable law, as the same may be amended or waived (“
Restrictions ”).
The
Land, the Building and the improvements thereon and any and all
replacements, additions and substitutions thereto from time to time
are collectively referred to as the “ Premises
.”
1.02 Term of
Lease . The term hereof shall commence on July 2, 2008
(the “ Commencement Date ”) and shall expire on
June 30, 2023 (the “ Expiration Date ”),
unless earlier terminated or extended as provided in this Lease
(the “ Term ”). If the Commencement Date occurs
on a day other than the first (1st) day of a calendar month, Tenant
shall pay a proportionate Base Rent in advance at the monthly rate
set forth herein for such partial month.
1.03 Lease Year
Defined . As used in this Lease, the term “ Lease
Year ” shall mean if the Commencement Date is
July 2, 2008, the first Lease Year shall be the period
commencing on the Commencement Date and ending on June 30,
2009 and each succeeding twelve (12) month period thereafter,
and in the final Lease Year that period which falls in whole or in
part during the Term.
1.04 Compliance
with Restrictions .
(a) Notwithstanding
anything to the contrary contained herein, it is expressly
understood and agreed by and between Landlord and Tenant
that:
(i) This Lease is
subject and subordinate to the Restrictions;
(ii) Tenant shall
comply with the Restrictions at all times and shall pay all amounts
owing by, and perform all obligations thereunder which are
the
responsibility
of the owner, lessee, or occupant of, the Premises (including,
without limitation, the obligations of any “Party”
under the Restrictions);
(iii) As between
Tenant and Landlord, Tenant shall be solely responsible for the
obligations under the Restrictions as the same relate to the
Premises;
(iv) Tenant shall
responsible for the consequences of any violation of the
Restrictions without regard to its obligations hereunder and the
indemnification agreement under Section 13.02 hereunder
shall apply, without limitation, to any Losses (as defined in
Section 13.02 ) arising from or relating to any such
violation; and
(v) Without regard
to the obligations hereunder, which are distinct and separate
obligations from those under the Restrictions, no right, power or
privilege granted to Tenant hereunder may be exercised or enjoyed
by Tenant and no term, covenant or conditions of this Lease
benefiting Tenant or binding Landlord shall be operative if and to
the extent that such exercise, enjoyment or operation would not be
permitted by or would violate or be in conflict with any term,
covenant or condition of the Restrictions.
(b) Subject
to the limitations in this Lease, Tenant shall be entitled to enjoy
the benefits of services, easements and privileges available to the
owner or occupant of the Premises under the
Restrictions.
(c) Landlord,
in its capacity as landlord under this Lease, agrees, during the
Term, not to amend, modify or grant any approval or concession
under the Restrictions or to enter into any new Restrictions or
other covenant, condition, agreement, easement, encumbrance or
restrictions affecting the Land, the Building or the Premises,
without Tenant’s written consent, if such amendment,
modification, or grant of approval or consent would adversely
affect the Tenant’s operations at the Premises or result in
increased monetary obligations for Tenant under the
Restrictions.
(d) Tenant
agrees, during the Term, it has no legal right or authority to, and
it shall not, amend, modify or grant any approval or concession
under the Restrictions or to enter into any new Restrictions or
other covenant, condition, agreement, easement, encumbrance or
restrictions affecting the Land, the Building, or the Premises,
without Landlord’s written consent.
(e) Notwithstanding
anything the contrary herein, it is agreed that Landlord may
exercise extension options, rights of first refusal, rights of
first offer, rights to purchase and other similar rights under the
Restrictions and may deliver estoppels, and undertake other
customary activities in its capacity as contemplated under the
Restrictions.
2.01 Base
Rent . Tenant shall pay an annual base rent (hereinafter
referred to as “ Base Rent ”) for the Premises
to Landlord, without notice or demand in equal monthly
installments.
2
Annual Base
Rent for the first Lease Year shall equal One Million Two Hundred
Sixty-Nine Thousand Five Hundred Fourteen and No/100 Dollars
($1,269,514.00) per Lease Year. The Base Rent for each subsequent
Lease Year period during the Term, shall increase two percent (2%)
from the Base Rent payable in the prior Lease Year period (See
Schedule 2.01 attached hereto and made a part hereof).
Base Rent shall be payable in equal monthly installments
(hereinafter referred to as “ Monthly Base Rent
”), in advance, on the first (1st) day of the Term and on the
first (1st) day of each calendar month thereafter of the Term, and
at the same rate for fractions of a month if the Term begins on any
day except the first day of a calendar month or ends on any day
except the last day of a calendar month. The first installment of
Monthly Base Rent or the appropriate portion thereof if the
Commencement Date is not the first day of a month, shall be due and
payable on the Commencement Date.
2.02 Manner of
Payment . Base Rent, Rent Adjustments (as defined below), and
all other amounts becoming due from Tenant to Landlord hereunder
(hereinafter collectively referred to as “ Rent
”) shall be paid in lawful money of the United States to
Landlord at 2023 Paysphere Circle, Chicago, Illinois 60674, or as
otherwise designated from time to time by written notice from
Landlord to Tenant.
2.03 Net
Lease . It is the intention of the parties hereto that the
obligations of Tenant hereunder shall be separate and independent
covenants and agreements, and that any Base Rent, Rent Adjustments,
and other items of Rent and all other sums payable by Tenant
hereunder shall continue to be payable in all events, and that the
obligations of Tenant hereunder shall continue unaffected, unless
the requirement to pay or perform the same shall have been
terminated pursuant to an express provision of this Lease or by
operation of law. This is a net lease and Base Rent, Rent
Adjustments, Impositions, and all other items of Rent and all other
sums payable hereunder by Tenant shall be paid without notice or
demand, and without setoff, counterclaim, recoupment, abatement,
suspension, deferment, diminution, deduction, reduction or defense,
except as otherwise specifically set forth herein. Tenant shall
enforce any rights against Landlord in an independent action. This
Lease shall not terminate, and Tenant shall not have any right to
terminate this Lease, during the Term (except as otherwise
expressly provided herein). Except as provided under bankruptcy,
insolvency, reorganization, composition, readjustment, liquidation,
dissolution, winding-up or other proceeding affecting Landlord,
Tenant agrees that, except as otherwise expressly provided herein,
it shall not take any action to terminate, rescind or avoid this
Lease notwithstanding (i) the exercise of any remedy,
including foreclosure, under any mortgage (subject to
Tenant’s non-disturbance rights), (ii) any action with
respect to this Lease which may be taken by Landlord under the
Federal Bankruptcy Code or otherwise, (iii) the taking of the
Premises or any portion thereof (except as specifically provided in
Article 15 hereof), (iv) the prohibition or
restriction of Tenant’s use of the Premises under any laws or
otherwise unless attributable to the intentional misconduct of
Landlord, or (v) the destruction of the Premises or any
portion thereof. Landlord and Tenant agree that this Lease is a
true lease and does not represent a financing agreement. Each party
shall reflect the transaction represented hereby in all applicable
books, records and reports (including income tax filings) in a
manner consistent with “true lease” treatment rather
than “financing” treatment to the extent permitted by
law and applicable accounting principles.
2.04 Definition of
CPI Adjustment. The “CPI Adjustment” means the increase
in the applicable amount by multiplying the applicable amount by a
fraction, the numerator of which is
3
the CPI
published for the last calendar month, 3 months immediately
prior to the last month of such applicable Lease Year Period and
the denominator of which is the CPI published for the calendar
month, 3 months immediately preceding the start of the
Commencement Date. As used in this Lease, “CPI” means
the Consumer Price Index for All Urban Consumers, U.S. All Items
(1982-84 = 100) as published by the U.S. Department of Labor,
Bureau of Labor Statistics, or if the publication of that index is
discontinued, such other reliable governmental or other reputable
publication reasonably selected by Landlord which reflects the then
broad range of economic factors represented in the Consumer Price
Index as to such location.
2.05 Fair Value.
For purposes of this Lease, “Fair Value” shall mean
(subject to further determination below) Landlord’s
determination, utilizing its reasonable judgment, of an annual
amount per rentable square foot for a term equivalent to the period
for which Fair Value is being determined beginning with the first
(1st) day of the subject period that a willing tenant leasing
comparable space to the Premises would pay and a willing landlord
in the metropolitan area where the Premises are located (the
“Market”) would accept at arm’s length, giving
appropriate consideration to annual rental rate per rentable square
foot, rental escalations, concessions, abatements, tenant
improvement allowances, length of lease term, size and location of
the premises being leased, and other generally applicable terms and
conditions prevailing for comparable space in comparable properties
located in the Market. Landlord’s determination of the Base
Rent amount shall be provided to Tenant within sixty (60) days
of Landlord’s receipt of Tenant’s exercise of its
Extension Option notice (“Base Rent Notice”). In the
event Tenant disagrees with Landlord’s Fair Value
determination as set forth in the Base Rent Notice, Tenant shall,
within thirty (30) days after receipt of the Base Rent Notice,
furnish Landlord with a written notice of its objection
(“Tenant’s Objection Notice”). If Tenant’s
Objection Notice is not delivered to Landlord within said 30-day
period, the Base Rent shall be the Base Rent set forth in the Base
Rent Notice to Tenant. If Tenant delivers Tenant’s Objection
Notice, Landlord and Tenant shall then have thirty (30) days
(the “Negotiation Period”), to use good faith efforts
to reach an agreed upon Base Rent amount for the applicable
Extension Period. If Tenant’s Objection Notice is delivered
to Landlord and Landlord and Tenant are unable to reach agreement,
the Base Rent for the Extension Period shall be established as
follows:
(a) No
later than twenty (20) days following expiration of the
Negotiation Period, Tenant and Landlord shall each select an
appraiser of their choice and give the other written notice of such
appraiser’s name, address and telephone number. The two
appraisers shall then have thirty (30) days to agree upon the Fair
Value.
(b) If
the two appraisers can not agree upon Fair Value within said thirty
(30) day period, then the two appraisers so selected by
Landlord and Tenant shall select a third appraiser within fifteen
(15) days after expiration of said thirty (30) day
period, and shall furnish Landlord and Tenant written notice of
such third appraiser’s name, address and telephone number.
The three appraisers shall each then have thirty (30) days to
make their determination as to Fair Value and to notify Landlord
and Tenant.
(c) All
appraisers selected pursuant to this provision shall be M.A.I.
appraisers, unless Landlord and Tenant shall otherwise agree in
writing, each having at least ten (10) years experience with
commercial property in the Market. Each of the three
(3) selected appraisers shall then determine the Fair Value of
the Premises for the applicable Extension
4
Period and the
Base Rent hereunder, as applicable, shall be determined to be the
average of two (2) closest appraisals for each such Extension
Period.
If
the procedure set forth above is implemented, and if for any reason
whatsoever including, without limitation, the institution of any
judicial or other legal proceedings, the Base Rent for the
Extension Period has not been finally determined prior to the first
day of said Extension Period, then the amount of the Base Rent
previously payable under the Lease for the prior period shall be
the Base Rent previously payable under this Lease until such time
as the Base Rent is finally determined as set forth above, and
Landlord and Tenant shall, by appropriate payments to the other,
correct any overpayment or underpayment which may have been made
prior to such final determination.
If
the appraisers selected by Landlord and Tenant fail to appoint the
third appraiser within the time and in the manner prescribed above,
then Landlord and/or Tenant shall promptly apply to the nearest
office to where the Premises are located of the American
Arbitration Association for the appointment of the third
appraiser.
All
fees, costs and expenses incurred in connection with obtaining the
appraisals and the arbitration procedure set forth in this section
shall be shared equally by Landlord and Tenant; however, Landlord
and Tenant shall each bear their own attorneys’ fees incurred
with respect to this procedure and the cost of the appraiser
selected directly by such party.
2.06 Additional
Rent . All amounts and charges payable by Tenant under this
Lease in addition to the Base Rent described in
Section 2.01 above (including, without limitation, Rent
Adjustments and payments for Impositions) shall be considered
additional rent for the purposes of this Lease, and the word
“ rent ” in this Lease shall include such
additional rent unless the context specifically or clearly implies
otherwise.
2.07 Late
Charge/Interest . Tenant acknowledges that its late payment of
Base Rent will cause Landlord to incur certain costs and expenses
not contemplated under this Lease, the exact amount of which is
extremely difficult or impractical to fix. Therefore, if any future
payment of Base Rent, or any portion thereof, is not received by
Landlord within five (5) days of the date when due, then upon
the second occurrence of any late payment of Base Rent in any
twelve (12) month period and thereafter during such twelve
(12) month period, Tenant shall promptly pay to Landlord a
late charge equal to three percent (3%) of the unpaid amount
(“ Late Charge ”). Such Late Charge is in
addition to any interest due pursuant to the Delinquency Rate
pursuant to the last sentence of this Section 2.05. Landlord
and Tenant agree that the Late Charge (plus interest) represents a
reasonable estimate of costs and expenses incurred by Landlord
from, and is fair compensation to Landlord for, its loss suffered
by such non payment by Tenant. If any installment of Base Rent is
not paid prior to a Default occurring, Landlord shall be entitled
to receive the payment of interest at the Default Rate on such
unpaid installment of rent from the date such installment became
due and payable through the date payment was made by
Tenant.
2.08 Late Fees,
Default Interest and other Penalties under the Restrictions .
If Tenant fails to pay any amount owing under the Restrictions, and
a late fee or default interest, or other penalty is imposed on or
becomes due and payable by Landlord, Tenant shall pay to
Landlord
5
upon demand any
such amount so charged. Landlord may elect to pay such amount to
the party entitled thereto prior to any payment by Tenant
hereunder, and Tenant shall reimburse Landlord for any such amount
within twenty (20) business days after Landlord’s demand
therefor.
3.01 Tenant to
Pay Taxes . In addition to the Base Rent payable by Tenant
hereunder, Tenant shall pay Landlord, to be held in a tax escrow
account (the “Tax Escrow”), the Tax Adjustment Deposit
described in this Section 3.01. The Tax Escrow will be a
separate account held at a financial institution and not be
commingled with Landlord’s other assets or accounts. Interest
will be paid on all sums held in the Tax Escrow at prevailing
market rates. Until such time as Tenant receives the first
Adjustment Statement provided for in clause (c) of this
Section 3.01, Tenant shall, commencing on July 1, 2008 and on
the first day of each and every month thereafter, make the Initial
Monthly Tax Deposit specified herein.
(a) For
the purposes of this Lease:
(i) The term
“ Lease Year ” shall mean the one year period
beginning July 1, 2008 and ending June 30, 2009 and each
subsequent one year period thereafter during the Term.
(ii) The term
“ Initial Monthly Tax Deposit ” shall mean
Thirty Nine Thousand Seven Hundred Twenty-Five and No/100 Dollars
($39,725.00) for Taxes, as may be adjusted from Lease Year to Lease
Year.
(iii) The term
“ Tax Adjustments ” shall mean all amounts owed
by Tenant as on account of Taxes.
(iv) The term
“ Tax Adjustment Deposit ” shall mean an amount
equal to Landlord’s reasonable estimate of Tax Adjustments
due for any Lease Year made from time to time during the
Term.
(v) The term
“ Taxes ” shall mean real estate taxes,
assessments, sewer rents, rates and charges, transit taxes, taxes
based upon the receipt of rent, and any other federal, state or
local governmental charge, general, special, ordinary or
extraordinary, which accrue during the Term and are levied or
assessed or become a lien against the Project or any portion
thereof in any Lease Year during the Term and any tax in
substitution of any of the foregoing. If for any special assessment
imposed on the Project the assessing authority permits Tenant to
pay the special assessment in installments, then only the amount of
each installment, as and when so permitted to be paid, shall be
included in Taxes for the period during which such installment
would become payable by Tenant, whether or not Tenant actually
elects to pay such special assessments in such permitted
installments.
(b) The
amount of Taxes attributable to a Lease Year shall be the amount
assessed for any such Lease Year, even though the assessment for
such Taxes may be payable in
6
a different
Lease Year. Tenant shall pay directly all Taxes payable in calendar
year 2008 and the first installment of 2008 Taxes payable in 2009.
The funds held in the Tax Escrow shall first be used to pay the
second Installment of Taxes for the 2008 tax year due and payable
in 2009 and Landlord thereafter will make available or pay when
presented the Taxes for all subsequent Lease Years. Each Lease Year
thereafter, the Initial Monthly Tax Deposit shall be reduced or
increased as appropriate to fund or credit Tenant for interest,
overages or deficiencies in the Tax Escrow and such that sufficient
funds are available to pay all Taxes when due.
(c) As
soon as reasonably feasible after the expiration of each Lease
Year, Landlord will furnish Tenant a statement (“
Adjustment Statement ”) showing the
following:
(i) Taxes for the
Lease Year last ended and the amount of Taxes due and payable by
Tenant for such Lease Year;
(ii) The amount of
Tax Adjustments due Landlord for the Lease Year last ended, less
credits for Tax Adjustment Deposits paid, if any;
(iii) The Tax
Adjustment Deposit due for the current Lease Year as reasonably
determined; and
(iv) Interest
earned on funds held in the Tax Escrow.
Upon request
from Tenant, Landlord shall provide supporting documentation for
the Taxes and interest payments included in the Lease Year covered
by the Adjustment Statement.
(d) Within
thirty (30) days after Tenant’s receipt of each
Adjustment Statement, Tenant shall pay to Landlord:
(i) The amount of
Tax Adjustment shown on said statement to be due Landlord for the
Lease Year last ended; plus
(ii) The amount,
which when added to the Tax Adjustment Deposit theretofore paid in
the current Lease Year, would provide that Landlord has then
received such portion of the Tax Adjustment Deposit as would have
theretofore been paid to Landlord had Tenant paid one-twelfth
(1/12) of the Tax Adjustment Deposit, for the current Lease Year,
to Landlord monthly on the first day of each month of such Lease
Year.
Commencing on the
first day of the first month after Tenant’s receipt of each
Adjustment Statement, and on the first day of each month thereafter
until Tenant receives a revised or updated Adjustment Statement,
Tenant shall pay to Landlord one-twelfth (1/12) of the Tax
Adjustment Deposit shown on said statement. During the last
complete Lease Year, Landlord may include in the Tax Adjustment
Deposit its reasonable estimate of the Tax Adjustment which may not
be finally determined until after the expiration of the Term. The
Tenant’s obligation to pay the Tax Adjustment accruing during
the Term shall survive the Term. Landlord shall promptly repay to
Tenant at the expiration of the Term and promptly after
determination thereof,
7
any overpayment
made by Tenant with respect to Taxes, which obligation shall
survive the expiration or termination of the Lease.
(e) Tenant’s
payment of the Tax Adjustment Deposit for each Lease Year shall be
credited against the Tax Adjustments for such Lease Year. All Tax
Adjustment Deposits may not be commingled and shall be held in a
separate interest bearing account for the benefit of
Tenant.
(f) Tenant
or its representative shall have the right to examine
Landlord’s books and records with respect to the items in the
Adjustment Statement during normal business hours at any time
following the furnishing by Landlord to Tenant of such Adjustment
Statement. Any amount due to Landlord as shown on any such
Adjustment Statement, whether or not written exception is taken
thereto, shall be paid by Tenant within thirty (30) days after
Landlord shall have submitted the Adjustment Statement, without
prejudice to, any such written exception.
3.02 In addition
to the Tax Adjustments, provided Landlord makes the funds in the
Tax Escrow available, Tenant shall pay or cause the Taxes to be
paid, in a timely manner and as hereinafter provided. Each such
installment of Taxes, shall be paid before the last day the same
may be paid without fine, penalty, interest or additional cost;
provided, however, that if, by law, any Taxes may at the option of
the taxpayer be paid in installments (whether or not interest shall
accrue on the unpaid balance of such Imposition), Tenant may
exercise the option to pay the same in such installments and shall
be responsible for the payment of such installments only, provided
that all such installment payments relating to periods prior to the
date definitely fixed for the expiration of the Term or earlier
termination of the Lease are required to be made prior to the
Expiration Date or such termination. Notwithstanding anything
contained in this Section 3.01 to the contrary, “
Taxes ” shall include all charges which are assessed,
levied or imposed, which actually become due and payable during the
Term, or which otherwise arise during the Term but which are not
due and payable until after the expiration of the Term, and Tenant
shall promptly pay such items as and when they become due and
payable.
3.03 Receipt of
Payment . If requested by Landlord, Tenant shall furnish to
Landlord, within thirty (30) business days after such request
(or such shorter period of time as may be necessary to avoid a
default under any relevant agreement or penalty under law),
evidence reasonably satisfactory to Landlord evidencing the payment
of the Imposition.
3.04 Fiscal
Periods . Any Taxes accruing with respect to the Premises,
relating to a fiscal period of the imposing authority, a part of
which period is included within the Term and a part of which is
included in a period of time after the expiration of the Term
hereof shall be apportioned between Landlord and Tenant. The
foregoing obligations shall survive expiration or termination of
the Term.
3.05
Contest . Tenant shall have the right to contest the amount
or validity, in whole or in part by appropriate proceedings
diligently conducted in good faith, after payment of such Taxes,
unless such payment would operate as a bar to such contest, in
which event, notwithstanding the provisions of
Section 3.01 hereof, payment of such Taxes shall be
postponed if and only as long as:
8
(a) neither
the Premises nor any part thereof would, by reason of such
postponement or deferment, be, in the reasonable judgment of
Landlord, in danger of being forfeited, lost or adversely
affected;
(b) such
contest shall not subject Landlord or any Mortgagee (as hereinafter
defined) to the risk of any criminal or civil liability;
and
(c) such
contest shall not constitute a default under the
Restrictions.
Upon
the termination of such proceedings, it shall be the obligation of
Tenant to pay the amount of such Taxes or part thereof as finally
determined in such proceedings, the payment of which may have been
deferred during the prosecution of such proceedings, together with
any costs, fees (including attorneys’ fees and
disbursements), interest, penalties or other liabilities in
connection therewith, and upon such payment, Landlord or
Depositary, as the case may be, shall pay to Tenant, with any
interest accrued thereon, any amount deposited with it in respect
of such Taxes as aforesaid, provided, however, that Landlord or
Depositary, as the case may be, if requested by Tenant, shall
disburse said moneys on deposit with it directly to the imposing
authority to whom such Taxes is payable.
3.06 Reduction
of Assessed Valuation . Subject to the provisions of
Section 3.05, Tenant shall have the right to seek a reduction
in the assessed valuation of the Premises for real property tax
purposes and to prosecute any action or proceeding in connection
therewith.
3.07 Joinder of
Landlord . Landlord shall not be required to join in any
proceedings referred to in Section 3.05 or 3.06 hereof
unless the provisions of any law, rule or regulation at the time in
effect shall require that such proceedings be brought by and/or in
the name of Landlord, in which event, Landlord shall join and
reasonably cooperate in such proceedings but shall not be liable
for the payment of any costs or expenses in connection with any
such proceedings, and Tenant shall reimburse and indemnify Landlord
for any and all costs or expenses which Landlord may sustain or
incur in connection with any such proceedings.
3.08 Evidence
of Imposition . Any certificate, advice or bill of the
appropriate official designated by law to make or issue the same or
to receive payment of any Imposition asserting nonpayment of such
Imposition shall be prima facie evidence that such Imposition is
due and unpaid at the time of the making or issuance of such
certificate, advice or bill.
4.01 Use .
Tenant may use and occupy the Premises for any lawful purpose.
Tenant shall have no obligation to operate within the Premises.
Tenant shall not permit the Premises, or any portion thereof, to be
used in such manner which impairs Landlord’s right, title or
interest in the Premises or any portion thereof, or in such manner
which gives rise to a claim or claims of adverse possession or of a
dedication of the Premises, or any portion thereof, for public use.
Tenant shall not use or occupy the Premises or permit the Premises
to be used or occupied (i) contrary to any Restriction or any
statute, rule, order, ordinance, requirement, regulation or
restrictive covenant applicable thereto, and shall at all times
comply with same, (ii) in any manner which would violate any
certificate of occupancy, (iii) in any manner which
would
9
render the
insurance void, (iv) in any manner which would cause
structural injury to the Building, (v) in any manner which
would cause the value or usefulness of the Premises or any part
thereof to permanently diminish or (vi) in a manner which
would constitute a public or private nuisance or waste. Tenant
agrees that it will, promptly upon discovery of any such use,
promptly notify Landlord and take all necessary steps to compel the
discontinuance of such use.
5.01 Payment
for Utilities . During the Term, Tenant will pay, when due, all
charges of every nature, kind or description for utilities
furnished to the Premises or chargeable against the Premises,
including all charges for water, sewage, heat, gas, light, garbage,
electricity, telephone, steam, power, or other public or private
utility services. Prior to commencement of the Term, Tenant shall
pay for all utilities or services at the Premises used by it or its
agents, employees or contractors.
5.02
Utilities . Tenant shall be responsible for contracting
directly with all suppliers of utility services. In the event that
any charge or fee is required by the State in which the Premises
are located or by any agency, subdivision or instrumentality
thereof, or by any utility company or other entity furnishing
services or utilities to the Premises, as a condition precedent to
furnishing or continuing to furnish utilities or services to the
Premises, such charge or fee shall be deemed to be a utility charge
payable by Tenant. The provisions of this paragraph shall include,
but shall not be limited to, any charges or fees for present or
future water or sewer capacity to serve the Premises, any charges
for the underground installation of gas or other utilities or
services, and other charges relating to the extension of or change
in the facilities necessary to provide the Premises with adequate
utility services. Tenant may elect to cause the separate metering
of utilities to various portions of the Building. If Tenant makes
such an election, the costs of such separate metering shall be at
the sole and exclusive cost of Tenant. In the event Tenant fails to
pay any such charge or fee contemplated by this
Section 5.02 , Landlord shall have the right, but not
the obligation, to pay such charges or fees on Tenant’s
behalf and Tenant shall reimburse Landlord for such utility charge
at the default rate of interest on all amounts owed until paid upon
Landlord’s demand therefor. The inability of Tenant to
obtain, or any stoppage of, the utility services referred to in
this Article 5 resulting from any cause (other than
Landlord’s wrongful acts) shall not make Landlord liable in
any respect for damages to any person, property or business, or
entitle Tenant to any abatement of Rent or other relief from any of
Tenant’s obligations under this Lease.
6.01
Tenant’s Insurance .
(i) keep the
Building and the improvements on the Premises insured against loss
or damage by fire, windstorm, tornado and hail and all other
hazards covered by the usual extended coverage and “all
risk” endorsements of
10
whatsoever kind
(“ Property Insurance ”), including, without
limitation, coverage for loss or damage by water, flood (if
required by Landlord), sprinkler leakage, subsidence, building
ordinance for legal non-conforming use, if applicable. Such
Property Insurance shall be (x) sufficient to prevent Landlord
and Tenant from becoming co-insurers under provisions of applicable
policies of insurance, and (y) in the amount not less than one
hundred percent (100%) of the “Replacement Cost” of the
Building.
(ii) provide and
keep in force general commercial liability insurance (“
Liability Insurance ”) against liability for bodily
injury and death and property damage, such Liability Insurance to
be not less than Two Million Dollars and No/100 ($2,000,000.00)
combined single limit per occurrence and Two Million Dollars and
No/100 ($2,000,000.00) annual general aggregate for liability for
bodily injury, death and property damage, and not less than Two
Million Dollars and No/100 ($2,000,000.00) excess liability
coverage, and shall include the Premises and all sidewalks
adjoining or appurtenant to the Premises, shall contain blanket
contractual coverage and shall also provide the following
protection:
(1) completed
operations;
(2) personal
injury protection;
(3) employees as
additional insured coverage;
(4) Blanket
Contractual Liability coverage; which includes Landlord as
additional insured as Landlord’s interest may appear as
respects the Premises as defined in this Lease;
(iii) provide and
keep in force workers’ compensation and occupational disease
providing statutory benefits for all persons employed by Tenant at
or in connection with the Premises;
(iv) provide and
keep in force business interruption insurance that provides
coverage for lease payments as a continuing expense during the
period of interruption, but not to exceed
12 months;
(v) if a sprinkler
system shall be located in any portion of the Building, provide and
keep in force sprinkler leakage insurance in amounts reasonably
required by Landlord;
(vi) provide and
keep in force boiler, machinery and pressure vessel insurance in an
amount not less than Five Hundred Thousand and No/100 Dollars
($500,000.00) per occurrence on a combined basis covering direct
property loss and loss of income and providing for all steam,
mechanical and electrical equipment, including, without limitation,
all boilers, unfired pressure vessels, piping and wiring;
and
11
(vii) provide and
keep in force such other insurance and coverages and in such
amounts as may from time to time be reasonably required by Landlord
or any Mortgagee against such other insurable hazards as at the
time are commonly insured against in the case of prudent owners of
like buildings and improvements.
(b) Whenever,
under the terms of this Lease, Tenant is required to maintain
insurance, Landlord shall be an additional named insured for
Liability Insurance and loss payee for Property Insurance. If the
Premises shall be subject to any Mortgage, the Liability Insurance
shall, if required by such Mortgage, name the Mortgagee as an
additional named insured, under a standard “noncontributory
mortgagee” endorsement or its equivalent and the Property
Insurance shall, if required by such Mortgage, name the Mortgagee
as a loss payee, and permitting the Mortgagee to collect all
proceeds pertaining to the damaged mortgage property thereunder,
subject to the terms of this Lease.
(c) Coverage
amounts with respect to any insurance required hereby shall be
increased or decreased every fifth (5th) Lease Year during the Term
(subject to CPI adjustment), other than with respect to
Section 6.01(a)(i) which will always be maintained at
one hundred percent (100%)of the Replacement Cost of the Building.
For purposes of calculating fluctuations in the CPI, the calendar
year 2008 shall be considered the base year (the “ Base
Year ”). With respect to the coverage amounts, the
initial requirements hereinabove stated shall constitute the
“ Base Amount ”, and the Base Amount, as
adjusted by the CPI pursuant hereto, shall be the “
Adjusted Amount ”. The Adjusted Amount shall be
determined as follows: The Base Amount shall be increased or
decreased to equal the product obtained by multiplying (i) the
Base Amount by (ii) a fraction, the numerator of which is the
CPI for the then expiring Lease Year, and the denominator of which
is the CPI for the Base Year. For each such adjustment, the Base
Amount used for the initial calculation shall continue to be used
for each subsequent application of this provision. Notwithstanding
anything to the contrary herein, coverage amounts shall never be
less than the amounts stated in Section 6.01(a)
above.
(a) Subject
to Article 14 , the loss under all policies required by
any provision of this Lease insuring against damage to the Building
by fire or other casualty shall be payable:
(i) to Tenant, as
trustee, if the amount thereof is less than Five Hundred Thousand
and No/100 Dollars ($500,000.00), otherwise to the
Depositary.
If a loss shall
be payable to Tenant, as trustee, Tenant, provided that there is no
Default by Tenant hereunder, (1) shall hold the insurance
proceeds with respect to such loss in trust for the sole purpose of
paying the cost of the Restoration, and (2) shall apply such
proceeds first to the payment in full of the cost of the
Restoration before using any part of the same for any other
purpose. Tenant shall give Landlord notice of completion of the
Restoration within thirty (30) days thereafter. Within thirty
(30) days after the date of such notice, Tenant shall pay over
to Landlord the unapplied proceeds and the trust obligations
hereunder with respect to such proceeds shall terminate.
Notwithstanding the foregoing, if there is a Default by
Tenant
12
hereunder,
Tenant shall pay (or assign) all insurance proceeds with respect to
such loss to Landlord.
(b) All
Insurance Policies shall be in such form and shall be issued by
such responsible companies licensed and authorized to do business
in the State where the Premises are located as are reasonably
acceptable to Landlord. All such companies shall have a
policyholder rating of not less than A-VII, as rated in the most
recent edition of Best’s Key Rating Guide for insurance
companies or, if Best’s ceases to be published, in a similar
rating guide reasonably acceptable to Landlord. All policies
referred to in this Lease shall be procured, or caused to be
procured, by Tenant, at no expense to Landlord, and for periods of
not less than one (1) year. Evidence of Insurance (ACORD 27 or
in such other form acceptable to Landlord) shall be delivered to
Landlord on or before each anniversary of the effective date of the
policy, together with paid receipts therefor. Premiums on policies
shall not be financed in any manner whereby the lender, on default
or otherwise, shall have the right or privilege of surrendering or
canceling or requesting the surrender or cancellation of the
policies, provided, however, that premiums may be paid in such
installments as are permitted pursuant to the provisions of the
applicable policy so long as payment by installments will not allow
the insurer thereunder to cancel said policy. If Tenant fails to
submit such policies or certificates to Landlord within the
specified time, or otherwise fails to obtain and maintain insurance
coverages in accordance with this Article 6 , then,
Landlord, upon fifteen (15) days’ prior written notice
to Tenant and Tenant’s failure to cure within said period,
may, but shall not be obligated to, procure such insurance on
behalf of, and at the expense of, Tenant, and if Landlord exercises
such right and expends any funds to obtain such insurance, Tenant
shall reimburse Landlord for such amounts upon demand, it being
understood that any such sums for which Tenant is required to
reimburse Landlord shall constitute additional rent under this
Lease. Such a failure shall constitute a Default hereunder and the
reimbursement obligations herein shall survive the Expiration Date
or earlier termination hereof.
(c) Tenant
and Landlord shall cooperate in connection with the collection of
any insurance moneys that may be due in the event of loss, and
Tenant and Landlord shall execute and deliver such proofs of loss
and other instruments which may be required for the purpose of
obtaining the recovery of any such insurance moneys.
(d) Tenant
shall not carry separate insurance concurrent in form or
contributing in the event of loss with that required by this Lease
to be furnished by Tenant, unless Landlord and each Mortgagee is
included therein as additional named insureds with any loss payable
as provided in this Lease. Tenant shall immediately notify Landlord
of the carrying of any such separate insurance and shall cause the
same to be delivered as required in this Lease.
(e) Tenant
shall not violate or permit to be violated any of the conditions or
provisions of any of the Insurance Policies, or take or fail to
take any action that could impair coverage under the Insurance
Policies, and Tenant shall so perform and satisfy or cause to be
performed and satisfied the requirements of the companies writing
such policies so that at all times companies of good standing,
satisfactory to Landlord (as provided in
Section 6.02(a) hereof), shall be willing to write and
continue such insurance and all such Insurance Policies shall
continue in full force and effect without interruption and with all
premiums paid.
13
(f) Each
Insurance Policy and each certificate therefor issued by the
insurer shall contain (i) an agreement by the insurer that
such policy shall not be cancelled or modified without at least
thirty (30) days’ (ten (10) days in the case of
cancellation for non-payment of premiums) prior written notice to
Landlord and each Mortgagee, and (ii) a waiver of subrogation
by the insurer of any right to recover the amount of any loss
resulting from the negligence of Landlord or its agents, employees
or licensees.
(g) Landlord
shall not be limited in the proof of any damages which Landlord may
claim against Tenant arising out of or by reason of Tenant’s
failure to provide and keep in force insurance, as aforesaid, to
the amount of the insurance premium or premiums not paid or
incurred by Tenant and which would have been payable under such
insurance, but Landlord shall also be entitled to recover as
damages for such breach the uninsured amount of any loss, to the
extent of any deficiency in the insurance required by the
provisions of this Lease, and damages, costs and expenses of suit
suffered or incurred by reason of damage to, or destruction of, the
Premises occurring during any period when Tenant shall have failed
or neglected to provide insurance as aforesaid.
(h) Tenant
hereby waives any and every claim for recovery from the Landlord
for any and all loss or damage to the Land, Improvements or the
Building or to the contents thereof, whether such loss or damage is
due to the negligence of Landlord or its agents or employees, which
loss or damage is required to be insured pursuant to this Lease, or
the Restrictions; provided, however, that the foregoing waiver
shall not be operative in any case where the effect thereof is to
invalidate insurance coverage of the waiving party; provided
further, that Tenant agrees to give written notice of the terms of
this waiver to each insurance company which has issued, or in the
future may issue, policies of physical damage to it, and to have
said insurance policies properly endorsed to prevent the
invalidation of said insurance coverage by reason of said waiver
and provided further that such insurance company waives all rights
of subrogation which it might have against Landlord.
6.03 Blanket or
Umbrella Policy . The insurance required by this Lease, at the
option of Tenant, may be effected by blanket and/or umbrella
policies issued to Tenant covering the Premises and other
properties owned or leased by Tenant, provided that the policies
otherwise comply with the provisions of this Lease and allocate to
the Premises the specified coverage, without possibility of
reduction or coinsurance by reason of, or damage to, any other
premises covered therein.
6.04 Loss
Deductibles . All insurance provided for under
Section 6.01 , excepting workers compensation insurance
and liability insurance (which will be for such amount of not more
than $1,000,000.00 each and for workers compensation insurance
contain such deductions as permitted by applicable statutes), may
contain loss deductible (or similar) clauses of no more than Two
Hundred Thousand and No/100 Dollars ($200,000.00) (subject to CPI
Adjustment), except for “catastrophe perils,” such as
flood where market standard deductibles are acceptable.
6.05 Definition
of Depositary . As used in this Lease, “
Depositary ” shall mean a savings bank, a savings and
loan association, a commercial bank or trust company (whether
acting individually or in a fiduciary capacity), a pension or
retirement fund, an insurance company organized and existing under
the laws of the United States or any state thereof, a
real
14
estate
investment trust existing in compliance with Sections 856
through 860 of the Internal Revenue Code of 1986, as amended;
provided, that each of the above entities shall qualify as
Depositary within the provisions of this definition only if it
shall be qualified to do business in the State in which the
Premises are located and has assets of not less than One Hundred
Million and No/100 Dollars ($100,000,000.00). If the Premises shall
be subject to any Mortgage, “ Depositary ” shall
also mean the Mortgagee under such Mortgage. The account maintained
by any Depositary shall be in the name of Landlord.
ARTICLE 7.
RETURN OF PREMISES
7.01 Surrender
of Possession . At the expiration or earlier termination of
this Lease by lapse of time or otherwise, or upon termination of
Tenant’s right of possession without termination of this
Lease, Tenant shall surrender possession of the Premises to
Landlord and deliver all keys to the Premises to Landlord and make
known to Landlord the combination of all locks of vaults then
remaining in the Premises, and, subject to the following
paragraphs, shall return the Premises and all equipment and
fixtures of Landlord therein to Landlord broom clean, in good
operating condition, reasonable wear and tear, and damage from
casualty and condemnation excepted. At the expiration or earlier
termination of this Lease by lapse of time or otherwise, or upon
termination of Tenant’s right of possession without
termination of this Lease, Tenant and Landlord shall jointly
perform a walk-through of the Premises and establish a final punch
list of items requiring repair or restoration. Nothing in this
Section 7.01 is intended to increase or modify the
obligations of the Tenant under Articles 14 or 15
herein.
7.02
Installations and Additions . Tenant shall remove its Trade
Fixtures and Personal Property (as defined in Section 7.03)
from the Premises during the Term, provided that Tenant restores
any damage to the Premises caused thereby. The Building and all
other improvements located on the Land, including, but not limited
to, all structural components of the Building and all plumbing,
heating, lighting, electrical and air conditioning fixtures and
equipment, and other articles of personal property used exclusively
in the operation of the Premises (but excluding Trade Fixtures and
Personal property), whether or not attached or affixed to the
Premises, together with all Alterations which by the terms of this
Lease become the property of Landlord, shall be and remain a part
of the Premises and shall constitute the property of
Landlord
7.03 Trade
Fixtures and Personal Property . Tenant shall remove
Tenant’s furniture, machinery, manufacturing equipment,
safes, signs, trade fixtures, inventory and other items of movable
personal property of every kind and description from the Premises,
as set forth on Schedule 7.03, attached hereto (“ Trade
Fixtures and Personal Property ”) and restore any damage
to the Premises caused thereby, such removal and restoration to be
performed prior to the end of the Term or within ten (10) days
following termination of this Lease or Tenant’s right of
possession, whichever is earlier. If Tenant does not remove such
items, such items shall become Landlord’s property and shall,
at Landlord’s election, remain upon the Premises, all without
compensation, allowance or credit to Tenant. If Tenant fails to
remove such items, Landlord may do so and thereupon the provisions
of Section 16.06 shall apply and Tenant shall pay to
Landlord upon demand the cost of removal and of restoring the
Premises.
15
7.04
Survival . All obligations of Tenant under this Article
shall survive the expiration of the Term or earlier termination of
this Lease.
Unless Landlord
expressly agrees otherwise in writing, Tenant shall pay Landlord
one hundred fifty percent (150%) of the amount of the Base Rent and
Rent Adjustments then applicable to the final Lease Year of the
Term prorated on a per diem basis for each day Tenant shall retain
possession of the Premises or any part thereof after expiration or
earlier termination of this Lease. The foregoing provisions shall
not serve as permission for Tenant to hold-over, nor serve to
extend the Term (although Tenant shall remain bound to comply with
all provisions of this Lease until Tenant vacates the Premises, and
shall be subject to the provisions of Article 7 ). In
addition thereto, in the event that Tenant’s retention of
possession of the Premises (or any portion thereof) continues for
more than sixty (60) days after expiration of the Term or
earlier termination of the Lease, Tenant shall pay Landlord all
damages, consequential as well as direct, sustained by reason of
Tenant’s retention of possession. The provisions of this
paragraph do not limit the Landlord’s rights of re entry or
any other right hereunder. In the event of a holdover by Tenant,
upon demand by Landlord, Tenant shall so vacate the Premises within
sixty (60) days.
ARTICLE 9.
CONDITION AND CARE OF PREMISES
9.01 As-Is
Condition . Tenant acknowledges and agrees that Tenant accepts
the Premises and the Building in “as-is” condition and
agrees that Landlord makes no representation or warranty as to the
condition thereof. Tenant further acknowledges and agrees that
prior to the Commencement Date, Tenant has been in sole and
exclusive possession and control of the Premises and the
Building.
9.02
Tenant’s Obligations . Tenant shall take good care of
the Premises, Building, equipment serving the Building, and the
other improvements, including, without limiting the generality of
the foregoing, roofs, foundations and appurtenances thereto, all
mechanical, electrical, plumbing, and heating, air-conditioning and
ventilation systems located in or otherwise serving the Building,
all sidewalks, vaults, sidewalk hoists and curbs in front of or
adjacent to the Premises, all other common areas of the Premises
maintained or required to be maintained by Tenant as of the date
hereof and all water, sewer and gas connections, pipes and mains
which service the Premises and which neither any public authority
nor a utility company is obligated to repair and maintain, and
shall put, keep and maintain the Building and the other
improvements in good and safe order and working condition, and make
all repairs therein and thereon, interior and exterior, structural
and nonstructural, ordinary and extraordinary, foreseen and
unforeseen, necessary to keep the same in good and safe order and
working condition and to comply with all applicable laws, and the
Restrictions, howsoever the necessity or desirability therefor may
occur, and whether or not necessitated by wear and tear,
obsolescence or defects, latent or otherwise, and including,
complying with and correcting any deficiencies identified by the
City of Elgin with respect to any violations or open permits for
the Premises. The necessity and adequacy of repairs made shall be
measured by standards which are appropriate for buildings of
similar age and construction, as applicable, provided, however, the
decision whether an item
16
needs to be
replaced or repaired shall be made at Landlord’s reasonable
discretion. Tenant shall not commit or suffer, and shall use all
reasonable precaution to prevent, waste, damage or injury to the
Premises. When used in this Lease, the term “ repairs
” shall include all alterations, additions, installations,
replacements, removals, renewals and restorations. All repairs made
by Tenant shall be at least equal in quality and class to the
original work and shall be made in compliance with all
Restrictions, as then in force.
9.03 Landlord
Not Obligated . Landlord shall not be required to furnish any
services, utilities or facilities whatsoever to the Premises, nor
shall Landlord have any duty or obligation to make any alteration,
change, improvement, replacement, restoration or repair to, or to
demolish, the Building or any other Improvement presently or
hereafter located on the Land. Tenant assumes the full and sole
responsibility for the condition, operation, repair, alteration,
improvement, replacement, maintenance and management of the
Premises, including any Building or any other
Improvement.
9.04
Landlord’s Right to Perform Tenant’s Obligations
. In the event Tenant shall fail to perform any of its obligations
hereunder, Landlord may (but shall not be obligated to do so), and
without waiving or releasing Tenant from any obligation of Tenant
hereunder, make any payment or perform any other act which Tenant
is obligated to make or perform under this Lease. All sums so paid
and all liabilities so incurred by Landlord, together with interest
thereon at the default rate of interest set forth in
Section 27.07 herein, shall be payable to Landlord upon demand
as Additional Rent. Except in the case of an Emergency Situation,
Landlord shall provide no less than 48 hours advance written notice
of its performance, if reasonably feasible under the circumstances
and shall be subject to escort and supervision by Tenant. Nothing
contained herein shall be construed to require Landlord to advance
monies for any purpose. In exercising its rights hereunder,
Landlord shall use reasonable efforts not to interfere with the
normal operation of the Premises. The term “ Emergency
Situation ” shall mean a situation which has caused or is
likely to cause bodily injury to persons, environmental
contamination of or material physical damage to the Premises (or
any portion thereof) or adjoining property or economic liability or
criminal jeopardy to Landlord.
ARTICLE 10.
RIGHTS RESERVED TO LANDLORD
10.01 Rights
Reserved to Landlord . Landlord reserves the following rights,
exercisable without notice and without liability to Tenant for
damage or injury to property, person or business and without
effecting an eviction or disturbance of Tenant’s use or
possession or giving rise to any claim for setoff or abatement of
Rent or affecting any of Tenant’s obligations under this
Lease:
(a) To
exhibit the Premises upon at least one (1) business
day’s prior written notice, at reasonable hours, to potential
purchasers or lenders at any time during the Term, and for
reoccupancy during the last eighteen (18) months of the Term
or at any time after Tenant permanently vacates or abandons the
Premises; and
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(b) To
enter the Premises at reasonable hours for reasonable purposes and
upon at least one (1) business day’s prior written
notice (except in the event of an emergency and/or during a Default
in which events no prior notice is required), including
inspection.
11.01
Alterations . Tenant shall not demolish, replace or alter
the structural portions of the Building, or make any addition
thereto or expansion thereof, or materially alter the roof or
exterior of the Building, without the Landlord’s prior
written consent (such consent not to be unreasonably withheld,
conditioned or delayed (a “ Material Alteration
”). In the event of any Material Alteration or Work (as
defined below) costing more than One Hundred Thousand and No/100
Dollars ($100,000.00) in a calendar year period, Tenant shall
provide Landlord with advance written notice thereof and Landlord
shall have twenty (20) days from receipt of such notice to
deliver notice to Tenant (a “ Removal Notice ”)
of its election to require Tenant to, at the expiration of the
Lease Term, restore the Premises to the condition existing prior to
such Work or Material Alteration. If Tenant desires to undertake
any such alterations which require Landlord’s consent, it
shall notify Landlord in writing of the proposed alterations, which
notice shall include copies of the plans and specifications
relating thereto and Landlord agrees to exercise commercially
reasonable efforts to respond thereto within thirty (30) days
after the date of the request. Landlord agrees to state with
specificity any objections it has to the proposed plans and
specifications. In all cases, Tenant shall comply with the
following requirements with respect any alterations, modifications
or similar activities undertaken with respect to the Premises
(“ Work ”), whether subject to the foregoing
consent requirement or not:
(a) All
Work, when completed, shall be of such a character as not to
materially reduce the value of the Premises below its value
immediately before construction of such Work was
commenced;
(b) All
Work shall be undertaken with reasonable diligence (subject to
Force Majeure, as hereinafter defined) and in a good and
workmanlike manner and in compliance with all applicable permits
and authorizations and the Restrictions;
(c) No
Work shall impair the safety or structural integrity of the
Building;
(d) All
Work shall be completed free of liens for work, services, labor and
materials supplied or claimed to have been supplied to the Premises
(except as otherwise provided by law);
(e) No
Work shall be undertaken without obtaining the insurance required
by Section 6.01 hereof; and
(f) No
Work shall be undertaken until Tenant shall have procured and paid
for, insofar as the same may be required from time to time, all
permits and authorizations of all governmental authorities for such
Work. Landlord shall join in the application for such permit or
authorization and cooperate with Tenant and execute any additional
documents as may be
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necessary to
allow Tenant to complete the alterations and changes, provided it
is made without cost, liability, obligation or expense to
Landlord.
At
termination of this Lease, all Work that is a Material Alteration
(other than Trade Fixtures and Personal Property) shall become the
property of Landlord and shall remain upon and be surrendered with
the Premises as a part thereof at the termination of this Lease.
All of the Work may at Tenant’s option be removed by Tenant
(unless a Removal Notice was delivered to Tenant as provided
above).
ARTICLE 12.
ASSIGNMENT AND SUBLETTING
12.01
Assignment and Subletting .
(a) Subject
to the terms of ARTICLE 12, Tenant shall not have the right to
assign or transfer this Lease or sublet all or without
Landlord’s prior written consent (such consent not to be
unreasonably withheld, conditioned or delayed).
(b) Tenant
may sublet the Premises, or any part thereof, without the consent
of Landlord.
(c) A
permitted assignee or subtenant is referred to herein as the
“ Assignee ”. With respect to any Assignee, the
following conditions shall be met: (i) the use of the Premises
by the Assignee will not violate any laws, regulations, and/or
covenants, including, any Restrictions, and (ii) all other
terms and conditions of this Lease shall remain in full force and
effect.
(d) At
the time of the assignment, if an Assignee has an investment grade
rating equal to or better than the greater of (i) BBB- or
(ii) Tenant’s then investment rating as determined by
Standard’s and Poor (or its equivalent from another rating
agency) and a tangible net worth of at least Fifty Million and
No/100 Dollars ($50,000,000.00) (A) Tenant’s obligations
first arising after such assignment under this Lease shall
terminate; and (B) this Lease shall become a direct lease
between Landlord and Assignee for the entire Premises.
Notwithstanding the foregoing, in the event that the Restrictions
do not allow this Lease to become a direct lease with the Assignee
in connection with such assignment, Landlord and Tenant shall
cooperate with each other and execute, or cause to be executed, all
documents necessary to accomplish the intent of this Section
without being in violation of the Restrictions and satisfying the
reasonable requests of Assignee, including, without limitation,
consents, recognition agreements, and subordination,
non-disturbance and attornment agreements.
(e) Except
as provided in (d) above, no assignment or subletting shall
relieve Tenant of its obligations hereunder, and Tenant shall
continue to be liable as a principal and not as a guarantor or
surety, to the same extent as though no assignment or sublease had
been made.
12.02 Future
Consents; Costs . Any consent or deemed consent by Landlord
hereunder shall not be deemed to be a consent to or relieve Tenant
from obtaining Landlord’s consent, if required, to any
subsequent assignment or subletting. Landlord shall be reimbursed
by Tenant for any costs or expenses incurred pursuant to any
request by Tenant for consent to any such
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assignment or
subletting, provided, however, in no event shall Tenant’s
reimbursement for such costs and expenses exceed $2,500.00 for any
such request for consent.
12.03
Profits . Landlord shall not be entitled to receive any of
the rent or other rental consideration due from the Assignee under
such assignment or sublease and, if Landlord receives any such rent
or other rental consideration above the rent required to be paid by
to Landlord hereunder, Landlord shall immediately deliver such rent
and other rental consideration to Tenant. Tenant shall be entitled
to retain all fees and other payments received by Tenant in
connection with an assignment of the Lease.
12.04 Permitted
Transfer . Notwithstanding the provisions of
Article 12 above to the contrary, Tenant may assign
this Lease (herein, a “ Permitted Transfer ”),
without Landlord’s consent, to any: (a) person or entity
which controls, is controlled by or is under common control with
Tenant or its parent or affiliated entities, (b) any person or
entity resulting from a merger or consolidation with Tenant or its
parent, (c) any person or entity acquiring all or
substantially all of the assets of Tenant’s business or its
parent’s business, or (d) to any person or entity
acquiring all or substantially all of the equity ownership of
Tenant or its parent, provided that: (a) at least fifteen
(15) business days prior to such assignment, Tenant delivers
to Landlord notice of such assignment; (b) if an assignment,
the Assignee assumes, in full, the obligations of Tenant under this
Lease; and (c) the Assignee continue to comply with the
applicable terms and conditions of this Lease.
12.05 Publicly
Traded Company . For purposes of this Article 12 ,
if Tenant is a publicly-held corporation, the transfer of
Tenant’s stock publicly over a recognized security exchange
or over-the-counter market shall not be deemed an assignment of
this Lease and shall not be subject to any of the restrictions and
provisions contained in this Article 12 .
ARTICLE 13.
WAIVER OF CERTAIN CLAIMS; INDEMNITY BY TENANT
13.01 Waiver of
Certain Claims; Indemnity by Tenant .
(a) Except
as otherwise required under applicable government law (“
Law ”) or to the extent of Landlord’s willful
misconduct or negligence, but in all events, subject to the waiver
of claims and subrogation set forth in this Lease, Landlord and
other Indemnified Parties (as hereinafter defined) shall not in any
event whatsoever be liable for any injury or damage to Tenant or to
any other Person happening in, on or about the Premises and its
appurtenances, nor for any injury or damage to the Premises or to
any property belonging to Tenant or any other Person which may be
caused by any fire or breakage or by any other cause whatsoever or
by the use, misuse or abuse of the Building (including, but not
limited to, any of the common areas within the Building, and the
other improvements, equipment serving the Building, elevators,
hatches, openings, installations, stairways, hallways or other
common facilities) or the streets or sidewalk area within the
Premises or which may arise from any other cause
whatsoever.
(b) Landlord
shall in no way be liable or responsible for any loss, damage, or
expense that Tenant may sustain or incur by reason of any change,
failure, interference, disruption, defect, unavailability or
unsuitability in the supply or character of the energy
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furnished to
the Premises, and no such change, failure, interference disruption,
defect, unavailability, or unsuitability shall relieve Tenant from
any of its obligations under the Lease.
(c)
Tenant Responsible for Personal Property . All personal
property belonging to Tenant or any occupant of the Premises,
including but not limited to Trade Fixtures and Personal Property,
that is in the Building or the Premises shall be there at the risk
of Tenant or other person only and Landlord shall not be liable for
damage thereto or theft or misappropriation thereof except to the
extent caused by Landlord’s intentional wrongful acts or
negligence.
(a) Except
as otherwise prohibited under Law or to the extent of
Landlord’s or Landlord’s Indemnified Parties’
(defined below) willful misconduct or negligence, Tenant shall
indemnify, defend and save
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