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Lease Agreement

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SPSS INC | 233 S WACKER LLC

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Title: LEASE
Governing Law: Illinois     Date: 11/23/2005
Industry: Software and Programming     Law Firm: 233 S Wacker LLC     Sector: Technology

LEASE, Parties: spss inc , 233 s wacker llc
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<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.

 

 

                                       12

 

<PAGE>

 

          (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

 

 

                                       13

 

<PAGE>

 

          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

 

 

                                       14

 

<PAGE>

 

          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.

 

 

                                       15

 

<PAGE>

 

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

 

 

                                       16

 

<PAGE>

 

          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


 
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