<PAGE>
Exhibit 10.56
LEASE
SEARS TOWER
233 SOUTH WACKER DRIVE
CHICAGO, ILLINOIS
SPSS, INC.
<PAGE>
LEASE
SEARS TOWER
233 SOUTH WACKER DRIVE
CHICAGO, ILLINOIS
SPSS, INC.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S>
<C>
SCHEDULE.................................................................
1
TERMS AND
CONDITIONS.....................................................
5
1.
TERM...............................................................
5
2. BASE
RENT..........................................................
5
3. ADDITIONAL
RENT....................................................
5
4. USE OF THE
PREMISES................................................
10
5.
POSSESSION.........................................................
10
6.
SERVICES...........................................................
10
7.
REPAIRS............................................................
15
8. ADDITIONS AND
ALTERATIONS.......................................... 16
9. COVENANT AGAINST
LIENS............................................. 17
10.
INSURANCE..........................................................
17
11. FIRE OR
CASUALTY...................................................
19
12. WAIVER OF CLAIMS -
INDEMNIFICATION................................. 20
13.
NONWAIVER..........................................................
21
14.
CONDEMNATION.......................................................
21
15. ASSIGNMENT AND
SUBLETTING.......................................... 22
16. SURRENDER OF
POSSESSION............................................ 25
17. HOLDING
OVER.......................................................
26
18. ESTOPPEL
CERTIFICATE...............................................
27
19. OBLIGATIONS TO
MORTGAGEES.......................................... 27
20. CERTAIN RIGHTS RESERVED BY
LANDLORD................................ 28
21. RULES AND
REGULATIONS..............................................
30
22. DEFAULT AND LANDLORD'S
REMEDIES.................................... 30
23. EXPENSES OF
ENFORCEMENT............................................
32
24. COVENANT OF QUIET
ENJOYMENT........................................ 33
25. REAL ESTATE
BROKER.................................................
33
26.
MISCELLANEOUS......................................................
33
27.
NOTICES............................................................
36
28. LIMITATION OF
LIABILITY............................................ 36
29. RIGHT OF FIRST
OFFER............................................... 36
30. TENANT'S OPTION TO
RENEW........................................... 37
31. SPECIAL
IMPROVEMENTS...............................................
37
</TABLE>
i
<PAGE>
EXHIBITS
EXHIBIT A FLOOR PLAN OF PREMISES
EXHIBIT B TENANT/CONTRACTOR AND VENDOR
GUIDELINES
EXHIBIT C RULES AND REGULATIONS
EXHIBIT D ESTOPPEL CERTIFICATE
EXHIBIT E CONDENSER WATER ADDENDUM
ii
<PAGE>
LEASE
SEARS TOWER
233 SOUTH WACKER DRIVE
CHICAGO, ILLINOIS
THIS AGREEMENT
OF LEASE made as of this 22nd day of November, 2005
(hereinafter referred to as the "Lease")
between 233 S WACKER LLC, a Delaware
limited liability company (hereinafter
referred to as "Landlord"), and SPSS,
INC., a Delaware corporation (hereinafter
referred to as "Tenant");
SCHEDULE
1. DESCRIPTION OF PREMISES: The
premises designated on the plan attached
hereto as
Exhibit A and containing approximately a total of 41,577 square
feet of
"Rentable Area" on the 9th and 10th floors (being approximately
25,098 square
feet of Rentable Area on the 9th floor and 16,479 square feet
of Rentable Area
on the 10th floor; collectively, the "Premises") in the
building
commonly known as the Sears Tower (the "Building") located at
233
South Wacker
Drive in the City of Chicago, Cook County, Illinois
(hereinafter
referred to together with all present and future easements,
additions,
improvements and other rights appurtenant thereto, as the
"Land").
2. USE OF PREMISES: Tenant
shall use the Premises solely as general offices
and customer
training and for no other purpose whatsoever.
3. BASE RENT: The per annum
rate of Base Rent and the monthly installments
thereof are set
forth on Schedule 1 attached hereto.
4. TENANT'S PROPORTIONATE
SHARE: shall mean (a) 1.18% for the purposes of
determining
Taxes (as hereinafter defined) payable by Tenant hereunder,
such percentage
being the percentage calculated by dividing the Rentable
Area contained
in the Premises, as determined by Landlord and shown in Item
1 of this
Schedule by 3,530,477 rentable square feet (being ninety-five
percent (95%) of
the aggregate amount of all office and retail space in the
Building), and (b)
1.27% for purposes of determining Operating Expenses (as
hereafter
defined) payable by Tenant hereunder, such percentage being the
percentage
calculated by dividing the Rentable Area of the Premises, by
3,284,958
rentable square feet (being ninety-five percent (95%) of the
aggregate amount
of all office space in the Building). Tenant's
Proportionate
Share shall be adjusted proportionately if the number of
square feet of
Rentable Area in the Premises is increased pursuant to
Section 29
hereof.
5. COMMENCEMENT DATE: July 1,
2006.
6. TERMINATION DATE: May 31,
2012.
<PAGE>
7. ADDRESSES FOR NOTICES:
IF TO
LANDLORD:
233 S Wacker LLC
c/o The Chetrit Group
404 Fifth Avenue, 4th Floor
New York, New York 10018
and:
233 S Wacker LLC
c/o American Landmark Properties, Ltd.
8114 Lawndale Avenue
Skokie, Illinois 60076
with copies to:
233 S Wacker LLC
c/o CB Richard Ellis
233 South Wacker Drive, Suite 3530
Chicago, Illinois 60606
Attention: General Manager
IF TO
TENANT:
SPSS, Inc.
233 South Wacker Drive, Suite 950
Chicago, Illinois 60606
Attention: Terry Schohn
8. BROKER: CB Richard
Ellis.
2
<PAGE>
This Lease is
subject to the Terms and Conditions and the provisions of any
exhibits attached hereto, which Terms and
Conditions and exhibits are hereby
made a part of this Lease.
LANDLORD:
TENANT:
233 S WACKER LLC,
SPSS, INC.,
A DELAWARE LIMITED LIABILITY COMPANY
A DELAWARE
CORPORATION
By: /s/ John M. Houston
By: /s/ Raymond H. Panza
---------------------------------
------------------------------------
Its: Authorized Member
Its: Executive Vice President, Corporate
Operations and Chief Financial Officer
3
<PAGE>
SCHEDULE 1
Base Rent
<TABLE>
<CAPTION>
Annual
Per Square Foot Monthly
Annual
Period
Base Rental Rate Base Rent Base Rent
------
----------------
----------
-----------
<S>
<C>
<C>
<C>
July 1, 2006 - June 30, 2007 .....
$19.00*
$65,830.25
$789,963.00
July 1, 2007 - June 30, 2008 .....
$19.50
$67,562.63
$810,751.50
July 1, 2008 - June 30, 2009 .....
$20.00
$69,295.00
$831,540.00
July 1, 2009 - June 30, 2010 .....
$20.50
$71,027.38
$852,328.50
July 1, 2010 - June 30, 2011 .....
$21.00
$72,759.75
$873,117.00
July 1, 2011 - May 31, 2012 ......
$21.50
$74,492.13
$893,905.50
</TABLE>
* If Tenant is not in
Default under the Lease on the date any such
installment is
due, each of the first four (4) monthly installments of Base
Rent due under
the Lease shall be abated in full and shall not be payable
by Tenant,
subject to the terms of Section 22 of the Lease.
4
<PAGE>
TERMS AND CONDITIONS
Landlord hereby
leases to Tenant, and Tenant hereby leases from Landlord,
the premises (hereinafter referred to as
the "Premises") described in the
Schedule appearing at the beginning of this
Lease (hereinafter referred to as
the "Schedule") and designated on the plan
attached hereto as Exhibit A, subject
to the covenants, terms, provisions and
conditions of this Lease.
1. TERM
The term of this
Lease (hereinafter referred to as the "Term") shall
commence on the
Commencement Date and shall end on the Termination Date
each as provided
in the Schedule, unless sooner terminated as provided
herein.
2. BASE RENT
Tenant shall pay
to Landlord at P.O. Box 8000, Department 794, Buffalo, New
York 14267, or
at such other place as Landlord or Landlord's agent may from
time to time
designate in writing, in currency which, at the time of
payment, is
legal tender for private or public debts in the United States
of America, the
applicable annual Base Rent set forth in Schedule 1 payable
in equal monthly
installments in the applicable amounts set forth in
Schedule 1 in
advance on or before the first day of each and every month
during the Term
without demand and without any abatement, setoff or
deduction
whatsoever, except as specifically set forth in this Lease.
Such
Base Rent shall
be escalated on each anniversary of the Commencement Date
as set forth in
Schedule 1. Each period of twelve (12) months beginning on
the Commencement
Date or on any anniversary thereof and ending on the day
before the
following anniversary of the Commencement Date or on the
Termination
Date, as the case may be, is hereinafter referred to as a
"Lease Year."
Any Base Rent payable for a partial month at the beginning of
the Term shall
be paid on the first day of the first full calendar month of
the Term. Any
Base Rent payable for a partial month at the end of the Term
shall be paid on
the first day of such month.
3. ADDITIONAL RENT
In addition to
paying the Base Rent specified in Section 2 hereof, Tenant
shall pay as
"Additional Rent" the amounts described in this Section 3.
Such Additional
Rent paid by Tenant and other tenants in the Building shall
reimburse
Landlord for all expenses of owning, operating and maintaining
the Land and the
Building, except as expressly excluded below, and shall
permit Landlord
to receive the Base Rent as "net" rent. The Base Rent and
the Additional
Rent and all other amounts due under this Lease are herein
collectively
referred to as the "Rent." All Additional Rent shall be
payable for the
same periods and in the same manner, time and place as the
Base Rent is to
be paid. Without limitation on other obligations of Tenant
which shall
survive the expiration of the Term, the obligations of Tenant
to pay
Additional Rent shall survive the expiration of the Term. For
any
Calendar Year
which is not wholly included in the Term, Tenant shall be
obligated to pay
only a pro rata share of the Additional Rent for such
Calendar Year, based
on the number of days of the Term falling within such
Calendar Year.
Except as specifically provided in this Lease, Rent shall be
paid without
abatement, deduction or set off of any kind, it being the
intention of the
parties that, to the full extent permitted by
5
<PAGE>
law, Tenant's
covenant to pay Rent shall be independent of all other
covenants
contained in this Lease.
(a) CERTAIN DEFINITIONS. As used in
this Lease, the terms:
(i) "Base Year" shall
mean Calendar Year 2006.
(ii) "Calendar Year" shall mean each calendar year in which any
part
of the Term falls, through and including the year in which the
Term expires.
(iii) "Operating Expenses" shall mean all expenses, costs and
disbursements of every kind and nature (determined for the
applicable Calendar Year on an accrual basis) paid or incurred
by
Landlord or its managing agent in connection with the
ownership,
management, operation, maintenance and repair of the Land and
Building (including, without limitation, the cost of providing
electricity for lighting the Premises as provided in Subsection
6(a)(ii) below and other office space), except the following:
A. Taxes (as
hereinafter defined);
B. Costs of
capital improvements to any tenant's premises;
C. Principal or
interest payments on loans secured by mortgages
or trust deeds on the Building or Land or rent payable on
any ground lease of the Land;
D. Costs of
capital improvements to the Building, except that
Operating Expenses shall include (1) the costs of any
capital improvement completed during the Term which is
intended to reduce any component of Operating Expenses and
(2) the costs of any capital improvement which is made by
Landlord to keep the Land or Building in compliance with all
governmental rules and regulations applicable from time to
time thereto, in
each case as evenly amortized over the
useful life of each such capital improvement with interest
on the unamortized amount at the greater of (A) ten percent
(10%) per annum or (B) two percent (2%) per annum above the
"prime rate" or "corporate base rate" announced from time to
time by a major Chicago bank selected by Landlord (the
"Prime Rate") (but in no event at a rate which is more than
the highest lawful rate allowable in the State of Illinois);
E. Costs of
utilities and other services provided to and used
in the operation of the retail stores in the Building,
including tourist retail stores, provided that the costs of
operating and maintaining the common areas adjoining such
retail stores shall be included in Operating Expenses; and
6
<PAGE>
F. Costs and
expenses incurred in connection with leasing space
in the Building, such as leasing commissions and advertising
and promotional expenses;
G. Costs incurred in connection
with the parking garage;
H. Any costs
paid to Landlord's management agent which are in
excess of customary market amounts for other Class A office
buildings in downtown Chicago;
I. Costs of
repairs, alterations or replacements caused by
casualty losses or other events to the extent Landlord
receives insurance reimbursement;
J. All material
costs, interests and fines arising by reason of
the violation by Landlord of any legal requirement
applicable to the Building.
(iv) "Taxes" shall mean taxes levied, assessed, imposed or
accruing
during the
Term (or which Landlord is obligated to pay on behalf
of any other person or entity having any interest in the Land
or
the Building) in connection with the Land, the Building, the
operation thereof or any rights or responsibilities related
thereto. "Taxes" shall include without limitation: (a) real
estate taxes and assessments, special or otherwise, levied,
assessed, imposed or accruing during the Term upon the Land or
Building; (b) any tax, assessment, charge or fee which is
imposed
in substitution for, or in lieu of an increase in, such real
estate taxes; (c) a tax on gross rents or leases or any income
or
franchise tax based on Landlord's income from the Land and
Building which taxes such income in a different manner than
income from sources other than the ownership and operation of
income-producing real estate, which is substantively the
functional equivalent of a tax on gross rents or leases, but is
called by another name; or (d) a tax on the development of real
estate or the construction or improvement of buildings or
premises therein. Taxes shall also include, in the year paid,
all
fees for consultants and attorneys and all other costs incurred
by Landlord in seeking to obtain a reduction of, or a limit on
the increase in, any Taxes, regardless of whether any reduction
or limitation is obtained. Taxes shall not include any
inheritance, estate, succession, transfer, gift, franchise, or
capital stock tax or any current state or federal income taxes
or
any income taxes other than those described above. With respect
to any Taxes which include assessments against income or
property
not related to the Land or Building, Taxes shall include only
that portion of such Taxes which would be payable if the Land
and
Building and all rights related thereto were the only assets of
Landlord. Taxes shall not include interest or penalties arising
as a result of a late payment, except to the extent such late
payment is due to the default of Tenant hereunder.
7
<PAGE>
(b) EXPENSE ADJUSTMENT. Tenant shall
pay to Landlord or Landlord's agent
as Additional Rent, an amount ("Expense Adjustment Amount") equal
to
Tenant's Proportionate Share of the amount of Operating Expenses
plus
Tenant's pro rata share of the special allocation of Variable
Operating Expenses (as defined in Section 3(c)) in excess of
Operating
Expenses and Variable Operating Expenses for the Base Year
incurred
with respect to each Calendar Year or any portion thereof. The
Expense
Adjustment Amount with
respect to each Calendar Year shall be paid in
monthly installments during that Calendar Year in an amount
reasonably
estimated from time to time by Landlord and communicated by
written
notice to Tenant. Landlord shall cause to be kept books and
records
showing Operating Expenses in accordance with an appropriate system
of
accounts and accounting practices consistently maintained.
Following
the close of each Calendar Year, Landlord shall compute the
Expense
Adjustment Amount for that Calendar Year based on the Operating
Expenses (and any special allocation of Variable Operating
Expenses)
for that Calendar Year and shall deliver to Tenant a statement of
the
Expense Adjustment Amount plus a statement of all estimated
installments paid by Tenant with respect to that Calendar Year.
Tenant
shall pay to Landlord any deficiency shown by such statement
within
thirty (30) days after Tenant receives the statement. If the
installments paid exceed the amounts due, Landlord shall either
credit
the excess against payments next due to Landlord from Tenant
hereunder
or at Landlord's option, and if Tenant is not then in default
hereunder, refund the excess to Tenant no later than thirty (30)
days
thereafter. The foregoing obligations of Landlord and Tenant
shall
survive the expiration of the Term. Delay in computation of the
Expense Adjustment Amount shall not be deemed a default hereunder
or a
waiver of Landlord's right to collect the Expense Adjustment
Amount;
provided, however, that Landlord shall compute such Expense
Adjustment
Amount not
later than twelve (12) months following the close of such
Calendar Year. Each annual statement of Operating Expenses
shall
itemize Operating Expenses in a reasonably detailed manner and
shall
separately state, and show the basis for calculation of, the amount
of
any amortization of capital expenditures included in Operating
Expenses as provided above and any allocation of Variable
Operating
Expense as provided below. Tenant shall have the right to cause to
be
audited, by a firm of independent public accountants (not paid on
a
contingency basis) designated by Tenant and satisfactory to
Landlord,
Landlord's records in respect of Operating Expenses, the cost of
which
shall be borne by Tenant unless it is demonstrated that Landlord
has
overstated Tenant's Expense Adjustment Amount by more than 3%,
in
which case Landlord shall bear the cost of such audit. The results
of
such audit shall be deemed final and conclusive as to Landlord
and
Tenant and any amounts due from Landlord or Tenant to the other
as
indicated by the written report of such audit shall be paid
within
thirty (30) days after the receipt by Landlord and Tenant of
such
report. Unless such an audit is commenced within 90 days after
Tenant's receipt of the statement for a Calendar Year, such
statement
shall be deemed final and conclusive as to Tenant. Tenant's right
to
audit shall not reduce or defer Tenant's obligation to pay the
amounts
shown on any such statement when due, subject to readjustment
as
described above. All information obtained by Tenant in connection
with
such
audit shall be utilized by Tenant on a confidential basis and
shall not be shared with other tenants in the Building.
8
<PAGE>
(c) ALLOCATION OF VARIABLE OPERATING
EXPENSES. If at any time during the
Term less than ninety-five percent (95%) of the then current
office
space in the Building is occupied, at Landlord's option those
components of Operating Expenses which vary with occupancy
("Variable
Operating Expenses") shall be removed from general Operating
Expenses
and allocated to the portion of the office space in the Building
which
is actually occupied and generating such components of
Operating
Expenses. This special allocation shall be made on a pro rata
basis
over the occupied office space in the Building, based on both
the
comparative Rentable Areas of the Building which are occupied and
the
portion of the Calendar Year during which the portions of the
Building
were occupied. For purposes of this Section, Variable Operating
Expenses shall mean janitorial services, electricity for
overhead
lighting, HVAC costs and elevator maintenance costs. Operating
Expenses which do not vary with occupancy, such as public
liability
insurance and lobby maintenance will continue to be allocated on a
pro
rata basis over the office space in the Building whether or not
occupied and Tenant shall only be responsible for Tenant's
Proportionate Share of those Operating Expenses.
(d) TAX ADJUSTMENT. Tenant shall pay
to Landlord or Landlord's agent as
Additional Rent, an amount ("Tax Adjustment Amount") equal to
Tenant's
Proportionate Share of the amount of Taxes in excess of Taxes for
the
Base Year incurred with respect to each Calendar Year or any
portion
thereof. The Tax Adjustment Amount with respect to each Calendar
Year
shall be paid in monthly installments during that Calendar Year in
an
amount reasonably estimated from time to time by Landlord and
communicated by written notice to Tenant. If Taxes for any
Calendar
Year are payable in whole or in part before the end of that
Calendar
Year, Tenant shall, within thirty (30) days after the written
request
of Landlord, promptly pay Tenant's Proportionate Share of the
payment
as a special installment, after deducting installments previously
paid
by Tenant under this Section 3(d) for such Calendar Year.
Following
the final payment of Taxes for each Calendar Year, Landlord
shall
compute the Tax Adjustment Amount for that Calendar Year and
deliver
to Tenant a statement of the Tax Adjustment Amount plus a statement
of
all estimated installments paid by Tenant for that Calendar
Year.
Tenant shall pay to Landlord any deficiency shown by the
statement
within thirty (30) days after Tenant receives the statement. If
the
installments paid exceed the actual amount due, Landlord shall
either
credit the excess against payments next due to Landlord from
Tenant
hereunder or at Landlord's option, and if Tenant is not then in
default hereunder, refund the excess to Tenant no later than
thirty
(30) days thereafter. The amount of any refund of Taxes received
by
Landlord shall be credited against Taxes for the year in which
such
refund is received. The foregoing obligations of Landlord and
Tenant
shall survive the expiration of the Term. In determining the amount
of
Taxes for any Calendar Year, the amount of special assessments to
be
included shall be limited to the amount of the installment (plus
any
interest payable thereon) of the special assessment required to
be
paid during that year as if Landlord had elected to have the
special
assessment paid over the maximum period of time permitted by law.
All
references to Taxes "for" a particular year shall be deemed to
refer
to Taxes levied or assessed for the year without regard to when
such
Taxes are paid or
9
<PAGE>
payable. Delay in computing the Tax Adjustment Amount shall not
be
deemed a Default hereunder or a waiver of Landlord's right to
collect
the Tax Adjustment Amount; provided that Landlord shall provide
a
final statement of Taxes for a Calendar Year no later than twelve
(12)
months after the due date of the final installment of Taxes for
such
Calendar Year.
4. USE OF THE PREMISES
(a) RESERVED AREAS. This Lease does
not give Tenant any right to use, and
Landlord hereby excludes and reserves for its sole and exclusive
use,
subject to Tenant's express rights hereunder, the following areas
in
and about the Premises: janitor closets, stairways and
stairwells,
fan, mechanical, electrical, telephone and similar rooms (other
than
those installed for Tenant's exclusive use); elevator, pipe and
other
vertical shafts, flues and ducts; all areas above the
acoustical
ceiling (except that Tenant may use the areas above the
acoustical
ceiling for conduit, provided such conduit is encased, meets all
codes
and is otherwise reasonably approved by Landlord and Landlord's
architect) and below the finished floor covering installed in
the
Premises; all other structural or mechanical elements serving
other
areas of the Building; and all subterranean, mineral, air, light
and
view rights.
(b) PERMITTED USE. Tenant shall use
and occupy the Premises solely for the
purposes set forth in the Schedule and for no other purpose.
(c) COMPLIANCE WITH LAWS. Tenant shall
not use or permit the use of any
part of the Premises for any purpose prohibited by law. Tenant
shall,
at its sole expense, comply with and conform to all of the
requirements of all governmental authorities having jurisdiction
over
the Building which relate in any way to the condition, use and
occupancy of the Premises throughout the entire Term of this
Lease.
Nothing in this Section 4(c) shall be construed to require Tenant
to
modify the Building structure or systems except if the need for
such
modifications is caused by Tenant's use of the Premises other than
for
general office use.
5. POSSESSION
(a) POSSESSION OF THE PREMISES. Tenant
is in occupancy of the Premises.
Tenant acknowledges and agrees that the Premises are in good order
and
satisfactory condition.
6. SERVICES
(a) LIST OF SERVICES. So long as
Tenant is not in Default under any
covenant or condition of this Lease, Landlord shall provide the
following services on all days during the Term, except
Saturdays,
Sundays and Holidays (herein defined to be New Year's Day,
Memorial
Day, Fourth of July, Labor Day, Thanksgiving Day. and Christmas
Day),
unless otherwise stated:
(i) Heating and air
conditioning in the Premises from Monday through
Friday, from 8 a.m. to 6 p.m. and on any Saturday which is not
a
Holiday from 8 a.m. to 1 p.m. Landlord will operate the system
of
distribution
10
<PAGE>
ducts, supply registers and diffusers, return grilles and
associated fixtures to provide in the Premises as currently
partitioned, heating and air conditioning with capacity to
provide the following results during the business hours set
forth
above; which heating and air conditioning shall, within
tolerances normal in first class office buildings in downtown
Chicago, be capable of providing the following: (a) air
conditioning which shall be capable of maintaining inside space
conditions of seventy-eight degrees (78 Degrees) Fahrenheit dry
bulb and fifty percent (50%) relative humidity when outside
conditions are ninety-two degrees (92 Degrees) Fahrenheit dry
bulb and seventy-five degrees (75 Degrees) Fahrenheit wet bulb
and (b) heating which shall be capable of maintaining inside
space conditions of not less than seventy-two degrees
(72 Degrees) Fahrenheit when outside air temperatures are not
less than minus ten degrees (-10 Degrees) Fahrenheit and not
more
than sixty-five degrees (65 Degrees) Fahrenheit. The foregoing
is
based upon occupancy density of not more than one (1) person
per
hundred (100) square feet of floor area, and a maximum electric
lighting and office machine load of five (5) watts per square
foot of floor area.
Tenant will pay for all heating and air conditioning requested
and furnished prior to or following such hours at rates to be
established from time to time by Landlord. Landlord's
obligations
with respect to heating and air conditioning are subject to all
governmental rules, regulations and guidelines applicable
thereto. The current rate for after hours HVAC is $109 per hour
per floor. Such rate is subject to change from time to time.
Wherever heat generating machines or equipment are used by
Tenant
in the Premises, which affect the temperature otherwise
maintained by the air-cooling system, or where the
configuration
and placement of such equipment creates a per square foot heat
load above what would be considered normal for office use,
Landlord reserves the right to install supplementary
air-conditioning units in the Premises and the expense of
installation, operation and maintenance of any such
supplementary
units shall be paid by Tenant to Landlord as Additional Rent.
(ii) Electricity solely for the lighting fixtures in the Premises
of
up to three (3) watts per square foot of rentable area within
the
Premises, together with adequate electrical wiring and
facilities
to the Premises for standard building lighting fixtures and for
Tenant's incidental uses. Distribution within the Premises is
at
Tenant's expense, although Tenant may use any existing conduit
system within the Premises. All electricity used in the
Premises
other than for lighting fixtures shall be separately metered by
a
meter or meters to be installed at Landlord's expense. Tenant
agrees to pay for such electricity directly to the utility
providing such electricity. Tenant shall bear the cost of
providing all light fixtures and replacement of all lamps,
tubes,
ballasts and starters for lighting fixtures. With respect to
such
incidental uses, adequate electrical wiring and facilities will
be furnished up to the meter in the Premises by Landlord,
provided that: (a) the connected electrical load of the
incidental use equipment does not
11
<PAGE>
exceed an average of two (2) watts per square foot of rentable
area within the Premises; (b) the electricity for incidental
uses
will be at
a nominal one hundred twenty (120) volts and no
electrical circuit for the supply of such incidental use will
have a current capacity exceeding twenty (20) amperes with a
load
not exceeding sixteen (16) amperes; and (c) such electricity
will
be used only for equipment and accessories normal to office
usage. If Tenant's requirements for electricity for incidental
uses exceed those set forth in the preceding sentence, Landlord
reserves the right to require Tenant to install the conduit,
wiring and other equipment necessary to supply electricity for
such excess incidental use requirements at Tenant's expense by
arrangement with Commonwealth Edison Company or another
approved
local utility. If Tenant's actual usage of electricity for
lighting exceeds two (2) watts per square foot, then Landlord
may
charge and collect from Tenant a fee for such excess usage, the
amount of such fee to be determined by Landlord. With respect
to
electricity for lighting, electricity for two hundred sixty
(260)
hours of lighting per month will be provided by Landlord as
part
of Operating Expenses. Tenant shall be billed monthly for all
overtime hours of lighting in excess of two hundred sixty (260)
hours per month.
(iii) City water from the regular Building outlets for
drinking,
lavatory and toilet purposes. Upon execution by Landlord and
Tenant of the "Condenser Water Addendum" attached hereto as
Exhibit E, Landlord agrees to make available to Tenant
supplemental condenser water as therein provided. If Landlord
and
Tenant have not executed the Condenser Water Addendum, then
Landlord shall not have any obligation to provide Tenant with
supplemental condenser water.
(iv) Janitorial services as generally provided in first-class
office
buildings in downtown Chicago.
(v) Window washing of
the inside and outside of those windows in the
Building's perimeter
walls which are situated in the Premises,
weather permitting, at intervals to be determined by Landlord,
but in no event less than two (2) times per Calendar Year with
respect to the inside of said windows and no less than three
(3)
times per calendar year with respect to the outside of said
windows.
(vi) Adequate automatic passenger elevator service. Tenant shall
have
access to the Building 24 hours a day, 7 days a week, 365 days
a
year, subject to the other terms and conditions of this Lease.
(vii) Freight elevator services, Monday through Friday only, from
7
a.m. to 5 p.m. from the first lower level of the Building to
the
level on which the Premises are located, subject to reasonable
scheduling by Landlord. The use of freight elevators shall be
subject to reasonable regulations promulgated by Landlord from
time to time.
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(viii) Receiving room and loading dock services, on any Monday
through
Friday which is not a Holiday, from 8 a.m. to 4 p.m., subject
to
reasonable scheduling by Landlord. The use of the receiving
room
and loading dock shall be subject to reasonable regulations
promulgated by Landlord from time to time.
(ix) Tenant shall be provided with one (1) line on the Building
directory for each 1,000 square feet of rentable area in the
Premises.
(b) INTERRUPTION OF SERVICES. Except
for the limited abatement of Rent
upon a fire or casualty described in Section 11 and except as
expressly provided in this Section 6(b), Tenant agrees that
Landlord
shall not be liable in damages, by abatement of Rent or otherwise,
for
failure to furnish or delay in furnishing any service, or for
any
diminution in the quality or quantity thereof, when such failure
or
delay or diminution is occasioned, in whole or in part, by
repairs,
replacements, or improvements, by any strike, lockout or other
labor
trouble, by inability to secure electricity, gas or other fuel,
or
water, at the Building after reasonable effort so to do, by any
accident or casualty whatsoever, by act or default of Tenant or
other
parties, or by any cause beyond Landlord's reasonable control.
Except
in cases of emergency, Landlord shall give Tenant reasonable
prior
notice of any delay or diminution in any service and shall use
reasonable efforts to minimize any inconvenience to Tenant where
such
delay or diminution is the result of Landlord's voluntary
actions.
Such failures or delays or diminution shall never be deemed to
constitute an eviction or disturbance of Tenant's use and
possession
of the Premises or relieve Tenant from paying Rent or performing
any
of its obligations under this Lease. If Landlord ceases to furnish
any
of the services referred to in this Section 6 or such ---------
services are interrupted, and if (i) such cessation does not arise
as
a result of an act or omission of Tenant, (ii) such cessation does
not
arise as a result of a matter or condition affecting two or more
city
blocks, such as a city-wide power outage, (iii) as a result of
such
cessation, the Premises or any material portion thereof is
rendered
untenantable (meaning for the purposes of this Section 6(b) a lack
of
elevator access or Tenant's inability to use the -------------
Premises or such material portion thereof in the normal course of
its
business) and Tenant in fact so ceases to use the Premises or
such
material portion thereof for the normal conduct of its business,
and
(iv) such cessation continues for a period of five (5) business
days,
then, the Rent payable hereunder shall be equitably abated based
upon
the percentage of the space in the Premises so rendered
untenantable
and not being used by Tenant. The foregoing abatement of Rent
shall
become effective as of the first business day following the day
the
Premises or such material portion thereof becomes untenantable
and
Tenant ceases to use such space for the normal conduct of its
business.
(c) CHARGES FOR SERVICES. Charges for
any service for which Tenant is
required to pay, from time to time hereunder, including but not
limited to hoisting services or after hours heating or air
conditioning shall be due and payable at the same time as the
installment of Rent with which they are billed, or if billed
separately, shall be due and payable within thirty (30) days
after
such billing. If Tenant shall fail to make payment for any such
services within five (5) days following Landlord's
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written demand therefor (which demand shall be in addition to
the
original billing therefor), Landlord may, without further notice
to
Tenant, discontinue any or all of such additional services
until
Tenant pays all amounts due, and such discontinuance shall not
be
deemed to constitute an eviction or disturbance of Tenant's use
and
possession of the Premises or relieve Tenant from paying Rent
or
performing any of its other obligations under this Lease.
(d) ENERGY/NATURAL RESOURCES
CONSERVATION. Notwithstanding anything to the
contrary in this Section 6 or elsewhere in this Lease, Landlord
shall
have the right to institute such policies, programs and measures
as
may be reasonably necessary for the conservation, recycling
and/or
preservation of energy and natural resources or energy or
natural
resource related services, or as may be required to comply with
any
applicable codes, rules and regulations, whether mandatory or
voluntary. Any such voluntary policies, programs and measures taken
by
Landlord shall not materially adversely affect the level of
services
provided to Landlord pursuant to this Section 6.
(e) BILLING FOR ELECTRICITY. Tenant
shall pay for the use of the
electrical service to the Premises for incidental uses as
described
above directly to the utility company supplying electricity to
the
Premises based upon the existing separate metering and billing.
Tenant
shall be billed directly by such utility company and Tenant agrees
to
pay each bill promptly in accordance with its terms. In the event
that
Tenant cannot be billed directly, Landlord shall forward to
Tenant
each bill received by it with respect to such electrical usage in
the
Premises and Tenant shall pay it promptly in accordance with
its
terms.
(f) SECURITY. Landlord and Tenant
recognize the existence of certain
societal problems which, depending on the circumstances at the
time,
may necessitate the employment of certain security measures in
the
day-to-day operation of the Premises and Building. Tenant
hereby
agrees to the exercise by Landlord and its agents of such
security
measures, including but not limited to, the search of all
persons
entering or leaving the Building, the evacuation of the Building
for
cause, suspected cause, or for drill purposes, the denial of
any
access to the Building, and other similarly related actions
that
Landlord deems necessary to prevent any threat of property damage
or
bodily injury. Notwithstanding anything herein to the contrary,
the
exercise of such security measures by Landlord and the
resulting
interruption of service and/or cessation of Tenant's business, if
any,
shall never be deemed an eviction or disturbance of Tenant's use
and
possession of the Premises, or any part thereof, or render
Landlord
liable to Tenant for any resulting damages, or relieve Tenant
from
paying Rent or performing any of its obligations under this Lease.
In
the event the Building is closed and Tenant is unable to (and
ceases
to) conduct its business therein, and if (i) such cessation does
not
arise as a result of an act or omission of Tenant, (ii) such
cessation
does not arise as a result of a matter or condition affecting two
(2)
or more city blocks, (iii) such cessation continues for a period
of
five (5) business days, and (iv) Landlord's rent interruption
insurance covers the event causing the closing of the Building,
then
Rent payable hereunder shall be equitably abated based upon the
percentage
of space in the Premises rendered untenantable and not
being used by Tenant. The
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foregoing abatement of Rent shall become effective as of the
first
business day following the day the Premises becomes untenantable
and
Tenant ceases to use such space for the normal conduct of its
business.
Tenant agrees to cooperate with Landlord in complying with the
obligations set forth in the City of Chicago High Rise Building
Emergency Procedures Ordinance (the "Ordinance") and any and
all
similar laws and ordinances and the rules and regulations
promulgated
pursuant thereto and Tenant agrees to make the necessary personnel
of
Tenant available to fulfill the "tenant" obligations under the
aforesaid Ordinance, including, without limitation, those of the
Fire
Wardens and Emergency Evacuation Teams (as such terms are defined
in
the Ordinance).
7. REPAIRS
(a) Landlord shall, as part of
Operating Expenses, keep the common areas
of the Building (including, without limitation, all concourses,
pedestrian passageways, elevator lobbies and restrooms on
multi-tenant
floors), the roof, foundation, structural elements of the Building
and
those portions of the mechanical, electrical, plumbing, HVAC,
life
safety, and other systems serving both the Premises and other areas
of
the Building in good order, repair and condition, including
replacement or repair of all damaged or broken fixtures and
appurtenances, at all times during the Term.
(b) Except as provided in Paragraph
7(a) above, Tenant will, at Tenant's
own expense, keep the Premises in good order, repair and condition
at
all times during the Term, subject to reasonable wear and tear,
and
Tenant shall promptly and adequately repair all damage to the
Premises
and replace or repair all damaged or broken fixtures and
appurtenances
included in the Premises, under the supervision and subject to
the
approval of the Landlord, and within any reasonable period of
time
specified by the Landlord. If Tenant does not do so, Landlord may,
but
need not, after written notice to Tenant make such repairs and
replacements, and Tenant shall pay Landlord the reasonable cost
thereof plus a coordination fee payable to Landlord in connection
with
each such repair and/or replacement equal to: (i) fifteen
percent
(15%) of the actual total cost of any such repair or
replacement
costing $10,000 or less; (ii) ten percent (10%) of the actual
total
cost of any such repair or replacement costing more than $10,000
but
less than or equal to $20,000; and (iii) five percent (5%) of
the
actual total cost of any such repair or replacement costing in
excess
of $20,000. Tenant shall pay such costs and fee within twenty
(20)
days after being billed therefor. Landlord may, but shall not
be
required to, enter the Premises at all reasonable times to make
such
repairs, alterations, improvements, installations and additions to
the
Premises or to the Building or to any equipment located in the
Building as Landlord shall desire or deem necessary or as Landlord
may
be required to do by governmental authority or court order or
decree.
Landlord shall, except in the event of emergency, give
reasonable
advance written notice of any such entry, which notice shall
describe
the nature, extent and duration of the proposed work. Landlord
shall
use reasonable efforts to minimize any interference with
Tenant's
business.
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8. ADDITIONS AND
ALTERATIONS
(a) Tenant shall not, without the
prior written consent of Landlord, make
any alterations, improvements, installations or additions to
the
Premises, which involve or affect the mechanical, electrical,
structural, life safety or other common systems of the Building.
If
Tenant desires to perform decorating, painting or other work in
the
Premises which does not involve or affect such systems, Tenant
shall
provide Landlord with prior written notice thereof generally
describing the work to be done. Landlord shall notify Tenant of
its
consent to any alterations, improvements, installations or
additions
which require Landlord's consent as soon as reasonably possible
after
Tenant's notice to Landlord of Tenant's intention to perform such
work
on the Premises. Landlord's consent shall not be withheld,
conditioned
or delayed (in each case, except as otherwise provided in this
Lease)
so long as such alterations, improvements, installations and
additions
(i) are
consistent with the permitted uses of the Premises set forth
in the Schedule to the Lease, (ii) do not adversely affect the
mechanical, electrical, structural, life safety or other common
systems of the Building, (iii) are in compliance with all
applicable
laws and other governmental or insurance company rules and
regulations, and (iv) are not in conflict in any respect with
Landlord's own contracts, contractor or union agreements. If
Landlord
consents to said alterations, improvements, installations or
additions, it may impose such conditions with respect thereto
as
Landlord deems appropriate, including, without limitation,
requiring
Tenant to furnish Landlord with security for the payment of all
costs
to be incurred in connection with such work if such amount
exceeds
$500,000, insurance against liabilities which may arise out of
such
work, plans and specifications plus permits necessary for such
work
and, following completion, "as-built" drawings showing the
actual
location of said alterations, improvements, installations and
additions. All work performed by Tenant shall be done in
accordance
with the Tenant/Contractor and Vendor Guidelines attached hereto
as
Exhibit B. That portion of any alterations, improvements,
installations or additions to the Premises which involves or
affects
the mechanical, electrical, structural, life safety or other
common
systems of the Building shall be done at Tenant's expense by
contractors hired by Landlord and selected by Tenant from
Landlord's
list of approved contractors which list shall include at least
three
(3) contractors for each trade who shall competitively price
such
work. Any other portions of such work may be performed at
Tenant's
expense by contractors hired and selected by Tenant, provided
such
contractors are approved in advance by Landlord, such approval not
to
be unreasonably withheld or delayed. Landlord shall not
unreasonably
delay or interfere with the performance of such work. Tenant
shall
promptly pay to Landlord or the Tenant's contractors, as the case
may
be, when due, the cost of all such work plus, in all cases
requiring
Landlord's consent, reimbursement to Landlord for all actual
out-of-pocket expenses incurred by Landlord (including
reasonable
charges for time spent by employees of Landlord or its agents)
in
connection with such improvement, installation, alteration
and/or
addition. Tenant shall pay such costs within thirty (30) days
after
being billed therefor.
(b) All alterations, improvements,
installations and additions to the
Premises, whether temporary or permanent in character, made or
paid
for by Landlord or Tenant, shall without compensation to Tenant
become
Landlord's property at the
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termination of this Lease by lapse of time or otherwise and
shall,
unless Landlord is entitled to and does request their removal
(in
which case Tenant shall remove the same as provided in Section 16),
be
relinquished to Landlord in good condition, ordinary wear and
damage
resulting from fire or other casualty excepted. Landlord shall not
be
entitled to request that Tenant remove any alterations,
improvements,
installations and additions to the Premises, unless Landlord
has
notified Tenant in writing, pursuant to Tenant's prior written
request
given in connection with the approval of plans for such items,
that
Landlord will reserve the right to require Tenant to remove
such
alterations, improvements, installations and additions to the
Premises.
9. COVENANT AGAINST LIENS
Tenant has no
authority or power to cause or permit any lien or encumbrance
of any kind
whatsoever, whether created by act of Tenant, operation of law
or otherwise, to
attach to or be placed upon Landlord's ti