TOWNSEND SUMMIT, LLC,
LANDLORD
DIODES FABTECH, INC.
(formerly known as FabTech, Inc.)
TENANT
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PREMISES
DEMISED
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1
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TERM
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4
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RENTAL
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4
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DELIVERY OF THE
PREMISES
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6
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ACCEPTANCE OF
THE PREMISES
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6
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USE
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6
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TENANT’S
IMPROVEMENTS AND CARE OF THE PREMISES
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8
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LANDLORD’S SERVICES AND
OBLIGATIONS
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12
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HAZARDOUS
WASTES/ENVIRONMENTAL COMPLIANCE
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16
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ASSIGNMENT AND
SUBLEASE
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20
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DAMAGE OR
DESTRUCTION
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21
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CONDEMNATION
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23
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INSURANCE
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23
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SUBROGATION AND
WAIVER
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25
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INDEMNIFICATION
AND HOLD HARMLESS
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26
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SUBORDINATION
AND NON-DISTURBANCE
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27
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LANDLORD’S RIGHT OF ENTRY
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29
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DEFAULT;
REMEDIES
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29
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SURRENDER;
HOLDING OVER
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33
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QUIET
ENJOYMENT
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33
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MUTUAL
REPRESENTATION OF AUTHORITY
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33
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LANDLORD’S LIABILITY AND TENANT’S
LIABILITY
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34
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REAL ESTATE
BROKERS
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34
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ATTORNEYS’ FEES
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34
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ESTOPPEL
CERTIFICATE
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35
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NO
RECORDING
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35
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WAIVERS;
CONSENT TO JURISDICTION
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35
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GOVERNING
LAW
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36
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NOTICES
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36
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COUNTERPARTS
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36
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ENTIRE
AGREEMENT
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36
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SEVERABILITY
AND INTERPRETATION
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37
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HEIRS,
SUCCESSORS, AND ASSIGNS; PARTIES
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37
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SURVIVAL
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38
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FORCE
MAJEURE
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38
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TIME OF THE
ESSENCE
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38
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HEADINGS
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38
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RULES AND
REGULATIONS
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38
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LEASE BINDING
UPON DELIVERY; NO OPTION
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39
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NATURAL GAS
LICENSE AGREEMENT
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39
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BASE RENT AND
CAM REIMBURSEMENT TO TENANT
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39
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Drawing of the
Primary Premises
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Drawing of the
Basement Area
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Drawing of the
Parking Area, Etc.
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The
Land
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Intentionally
Deleted
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Requirements
for Tenant Improvements
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Environmental
Health and Safety Agreement
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Rules and
Regulations for Use of the Roof
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Rules and
Regulations
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Permanent Items
to be Removed from Premises by Tenant
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Intentionally
Deleted
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Natural Gas
License Agreement
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Tenant’s
Office and Support Space
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AMENDED AND RESTATED LEASE
AGREEMENT
THIS AMENDED AND RESTATED LEASE AGREEMENT (this “
Lease ”) is made as of this 1st day of September, 2006
(the “ Effective Date ”), between TOWNSEND
SUMMIT, LLC, a Delaware limited liability company (the “
Landlord ”) having an office at c/o Townsend Capital,
LLC, 210 West Pennsylvania Avenue, Suite 700, Towson, Maryland
21204 and DIODES FABTECH, INC., a Delaware corporation (the “
Tenant ”) formerly know as FabTech, Inc., and having
an office at 777 N.W. Blue Parkway, Lee’s Summit, Missouri
64086-5709.
WHEREAS, the
Landlord and FabTech, Inc. are parties to that certain Summit
Technology Center Lease dated October 29, 1999, as amended by
that certain First Lease Amendment dated September 30, 2004
(but effective as of August 1, 2004) (collectively, the
“ Initial Lease ”).
WHEREAS, the
parties hereto desire to extend the lease term, and to amend and
clarify certain provisions of the Initial Lease to more accurately
reflect the agreement of the parties and to more accurately
reflect, among other things, the facts and circumstances concerning
(a) the area and layout of the Premises (as defined below),
and (b) the services provided to the Building (as defined
below) and/or Premises and the responsibility of the parties with
respect thereto, as the same now exist.
WHEREAS, the
parties hereto agree, by this Lease, to amend and restate the
Initial Lease in its entirety and to replace the same with the
following:
(a) Landlord
leases and demises to Tenant and Tenant rents and leases from
Landlord
(i)
that portion of the Project (the “ Primary Premises
”) which is shown on Exhibit A-1 attached
hereto and made a part hereof (and is depicted thereon as
“FabTech 73,785 RSF”) containing 73,785 rentable square
feet (“ RSF ”) which is located in the north
building (the “ Building ”) of that certain
group of buildings known as the Summit Technology Campus,
Lee’s Summit, Missouri (collectively, the “
Project ”),
(ii)
portions of the basement in the Building, which are shown on
Exhibit A-2 attached hereto and made a part
hereof (which are depicted thereon as (A) “FABTECH 31,693
SF”, (B) “FABTECH 29,267 SF”, and (C)
“FABTECH 7,534 SF”, and referred to herein,
collectively, as “ FabTech — Basement Area
”),
(iii)
an enclosed space adjacent to the Primary Premises and outside of
the Building for the installation and operation of a deionized
water generation system and reserve air compressor tank which is
shown on Exhibit A-3 attached hereto
and made a part
hereof (and is depicted thereon as “FabTech DI Water
Enclosure 6,509 Sq. Ft.”, and referred to herein, as the
“ DI Space ”),
(iv)
an enclosed area outside of the Building for Tenant to collect and
store, among other things, hazardous waste generated at the Primary
Premises which is shown on Exhibit A-3 (and is depicted
thereon as “FabTech Haz Storage & Silane Bunker 1,121 Sq.
Ft.”, and referred to herein, as the “ Storage
Area ”),
(v)
the area outside of the Building for the operation of (x) a
hydrogen system, and/or (y) an oxygen system, which area is
shown on Exhibit A-3 (and is depicted thereon as
“FabTech Hydrogen System 21,554 Sq. Ft.”, and referred
to herein, as the “ Hydrogen Area ”),
(vi)
the area outside of the Building for the operation of a nitrogen
system which is shown on Exhibit A-3 (and is depicted
thereon as “FabTech Nitrogen System 6,500 Sq. Ft.”, and
referred to herein, as the “ Nitrogen Area
”),
(vii)
through and including December 31, 2006, the area outside of
the Building shown on Exhibit A-3 as “FabTech
Oxygen System to be relocated to the DI Space by 12/31/06”,
and thereafter the DI Space for the operation of an oxygen system
(such area, the “ Oxygen Area ”),
(viii)
the area identified on Exhibit A-3 as “FabTech
New Caustic Area 870 Sq. Ft.” for the operation of a caustic
system (such area, the “ Caustic Area ”),
and
(ix)
through and including December 31, 2006, the truck turn-around
area at the northeast corner of the Building for use of
Tenant’s recycling dumpster, and thereafter the area
identified on Exhibit A-3 as “Fabtech Dumpster
Compactor Location 920 Sq. Ft.” (such area, the “
Dumpster Location ”).
The
(1) Primary Premises, (2) FabTech-Basement Area,
(3) DI Space, (4) Storage Area, (5) Hydrogen Area,
(6) Nitrogen Area, (7) Oxygen Area, (8) Caustic
Area, and (9) the Dumpster Location, shall hereinafter
collectively be referred to as the “ Premises
”.
(b) The
parties agree that for purposes of this Lease, the total RSF of the
Project is 1,037,985 RSF, the total RSF of the Building is 553,960
RSF, and the total RSF of the Primary Premises is 73,785
RSF.
(c) The
Project and the land upon which the Project is located, more
particularly described on Exhibit B attached
hereto and by this reference incorporated herein (the “
Land ”), are referred to herein collectively as the
“ Property ”.
(d) The
Premises shall include the appurtenant right to use, in common with
others, (i) the cafeteria, public restrooms, public lobbies,
entrances, stairs, corridors and elevators at the Building,
(ii) subject to compliance with Legal Requirements and the
provisions of Exhibit F attached hereto and made a
part hereof, a portion of the roof for the installation,
maintenance, operation and repair of the Specialized Cooling System
(as hereinafter defined),
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and
(iii) the parking areas (subject to the provisions of
Paragraph 1(e) below), driveways, sidewalks, open space and other
public portions of the Project, subject in all instances and under
all circumstances to Landlord’s right to alter, modify and,
to the extent necessary, to temporarily block off access to
portions of such public areas if Landlord deems it desirable or
appropriate to do so provided Tenant, its employees and invitees
shall always have reasonable access to the Premises and
Tenant’s parking area. Notwithstanding the foregoing,
Landlord may charge a fee (to be retained by Landlord as its sole
property), which fee shall be charged on a consistent basis with
all other tenants in the Building, for use of conference room(s),
auditorium(s) and other similar facilities in the Building and may
determine in its sole discretion the scheduling for usage thereof
by tenants; PROVIDED, HOWEVER, Landlord shall have no obligation to
provide any conference rooms, auditoriums or similar facilities in
the Project. All the windows and outside walls of the Premises, and
any space in the Premises used for shafts, pipes, conduits, ducts,
telephone ducts and equipment, electric or other utilities, sinks
or other Project or Building facilities, and the use thereof and
access thereto through the Premises for the purposes of operation,
maintenance, inspection, display and repairs are hereby reserved
for use in common by Landlord and Tenant. No easement for light,
air or view is granted or implied hereunder, and the reduction or
elimination of Tenant’s light, air or view will not affect
Tenant’s liability or obligations under this
Lease.
(e)
Parking Areas . Tenant shall have the right to use, without
additional charge, a minimum of three hundred twenty-eight
(328) parking spaces, such parking spaces to be located in
that portion of the parking area in the Property designated on
Exhibit A-3 as “FabTech Parking Area” for
use by Tenant and its employees and visitors, subject, however, to
the other terms and provisions of this Lease. Such parking spaces
shall be available for use by Tenant and its employees on a
non-exclusive basis in common with others entitled thereto. Tenant
agrees to furnish Landlord upon request with the license numbers of
all automobiles of Tenant and its employees, and agrees to update
such list annually or upon the reasonable request of Landlord. If
Tenant or its employees shall park their automobiles in areas other
than appropriate areas designated on Exhibit A-3 ,
Landlord shall have the right with respect to each such automobile
(i) to affix a notice of violation of this rule on such
automobiles, (ii) to have such automobiles removed at
Tenant’s expense (and Landlord shall have no liability in
connection with any damage to such automobile resulting therefrom),
and/or (iii) to fine Tenant $20 per day for each day or
portion thereof such automobile(s) are parked in violation of this
provision. Landlord shall have the right to enlarge, reduce and
re-arrange the layout or location of the parking areas and Property
lawns and other green space and to designate specific parking
spaces for use by Tenant from time to time. If Landlord re-arranges
the layout or location of the parking areas, Landlord shall
undertake reasonable efforts to locate the parking area within
reasonable proximity to the Premises. Tenant and its employees
shall not park their automobiles within any fire lanes or driveways
on the Property or within any areas in which parking is prohibited
by applicable governing ordinance. Notwithstanding the foregoing,
unless in connection with a permitted sublease or assignment
pursuant to Section 10 hereof, Tenant shall not be permitted
to sublet or assign the right to use any of the parking spaces or
parking areas described in this Paragraph 1(e).
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(a)
Term . The term of this Lease (the “ Term
”) shall commence on the Effective Date and shall expire at
11:59 p.m. on December 31, 2013 (the “
Expiration Date ”), unless sooner terminated as herein
provided.
(b)
Early Termination Right . Effective any time after
June 30, 2011, upon at least twelve (12) months prior
written notice to Landlord, Tenant shall have the right to
terminate this Lease upon the date specified in such notice (such
date, hereinafter, the “ Early Termination Date
”). For any such notice to be effective, Landlord must
receive a termination fee, on or before the Early Termination Date,
equal to fifty percent (50%) of the amount of Base Rental that
otherwise would have been owed for the remainder of the Term from
the Early Termination Date (not to exceed $718,665.90).
(a)
Base Rental . Tenant shall pay to Landlord at the address of
Landlord indicated herein, or at such other place as Landlord may
designate in writing, without demand, deduction or setoff, base
rental (said rent, as the same may be adjusted from time to time,
is herein referred to as the “ Base Rental ”),
due and payable in monthly installments (the “ Monthly
Base Rental ”) in advance commencing on the Effective
Date and continuing thereafter on the first (1st) day of each
calendar month during the Term (hereinafter, a “ Payment
Date ”). The Monthly Base Rental due and payable during
the Term shall be in amounts as set forth below:
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Base Rental per RSF
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Monthly
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Dates
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of the Primary Premises
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Base Rental
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September 1, 2006
through
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$19.00
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$116,826.25
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$19.48
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$119,777.65
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$19.97
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$122,790.54
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4
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Base Rental per RSF
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Monthly
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Dates
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of the Primary Premises
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Base Rental
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$20.47
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$125,864.91
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Should this
Lease terminate on any date other than the last day of a calendar
month, the amount of Base Rental (and consequently the amount of
the Monthly Base Rental) due from Tenant shall be proportionately
adjusted based on that portion of the month that this Lease is in
effect. Tenant shall also pay all other sums of money that shall
become due from Tenant under this Lease other than Base Rental
(“ Additional Rent ”) without deduction, offset
or counterclaim within the time periods set forth herein, and if no
such period is established, then within fifteen (15) days of
receipt of Landlord’s written demand therefor containing the
amount due and a reasonably detailed statement as to the nature of
such Additional Rent. As used in this Lease, “ Rent
” shall mean Base Rental and Additional Rent.
(b)
No Setoff Deduction, Counterclaim or Abatement . Tenant
shall pay any and all Base Rental, Additional Rent and costs,
expenses and obligations of every kind and nature whatsoever
relating to the Premises without setoff, deduction, counterclaim or
abatement, except as specifically and expressly (and not impliedly)
provided in this Lease.
(c)
Use and Occupancy Tax . Tenant shall also pay before any
penalties or fines are assessed to the appropriate governmental
authority any use and occupancy tax in connection with the
Premises. In the event Landlord is required by law to collect such
tax, Tenant shall pay such use and occupancy tax to Landlord as
Additional Rent within fifteen (15) days of demand and
Landlord shall remit any amounts so paid to Landlord to the
appropriate governmental authority in a timely fashion.
(d)
Utility Charges . Tenant shall pay to Landlord, as
Additional Rent, the cost of all utility services used by Tenant at
or in connection with the Premises as determined by sub-meter.
Tenant shall be invoiced, on a monthly basis, at Landlord’s
actual average cost per kilowatt-hour, or (if it is able to be
determined) based on the actual tariff rate for electricity
supplied to the Project, as determined by the monthly utility
company invoice. If some or all of the sub-meters are not operable
for any period of time during the Term hereof, Tenant shall pay to
Landlord an amount (for such utility services used during such time
period that the sub-meter(s) are inoperable) as determined in
Landlord’s reasonable judgment of Tenant’s usage based
upon past meter readings at the Premises, and all other available
relevant data.
(e)
Additional Rent not Base Rental . Tenant’s payments of
Additional Rent shall not be deemed payments of Base Rental as that
term is construed relative to governmental wage and price controls
or analogous governmental actions affecting the amount of Rent
which Landlord may charge Tenant for the Premises.
(f)
Late Charge . Tenant acknowledges that Tenant’s
failure to pay Base Rental and Additional Rent promptly may cause
Landlord to incur unanticipated costs
5
which are
impractical or extremely difficult to ascertain and may include,
without limitation, processing and accounting charges and late
charges imposed on Landlord by any ground lease, mortgage or deed
of trust. As a result, if Landlord does not receive any payment
within ten (10) days of the due date, Tenant shall pay Landlord, a
late charge equal to five percent (5%) of the overdue amount,
compounded monthly, which charge Landlord and Tenant agree
represents a fair and reasonable estimate of the costs Landlord
will incur by reason of late payment. Landlord’s acceptance
of the late charge shall in no event constitute a waiver of
Tenant’s default with respect to any overdue amount nor
prevent Landlord from exercising any other rights or remedies
granted under this Lease and/or applicable law.
4. DELIVERY OF THE PREMISES.
On
the Effective Date, Landlord shall deliver the Premises to Tenant,
in “AS IS, WHERE IS,” condition, subject to all
defects, if any.
5. ACCEPTANCE OF THE PREMISES.
Tenant
hereby accepts possession of the Premises effective as of the
Effective Date and hereby acknowledges and agrees that the Premises
are in good and satisfactory order, condition and repair for the
use intended under this Lease. Tenant shall, at Tenant’s sole
cost and expense, keep the Premises and every part thereof, other
than exterior portions (exterior walls, roof, etc.) and structural
components, in good condition and repair, excluding, however, any
damage thereto from (a) fire or other casualty,
(b) ordinary wear and tear, (c) condemnation,
(d) the negligent acts or willful misconduct of Landlord, its
agents, employees, invitees, contractors, subcontractors and others
for whom Landlord is legally responsible, and (e) any breach
of any of Landlord’s obligations under this Lease alone
excepted. Landlord shall have no obligation whatsoever to alter,
remodel, improve, repair, decorate or paint the Premises or any
part thereof except as otherwise expressly provided herein or
agreed upon in writing by Landlord, and the parties hereto affirm
that Landlord has made no representations to Tenant respecting the
condition of the Premises, the Building or the Property except as
specifically herein set forth in writing.
(a) The
Primary Premises hereby leased may be used only for general office
use and the manufacture of semi-conductors and uses accessory and
incidental thereto and no other uses.
(b) The
FabTech – Basement Area may be used only for
(i) mechanical, electrical and/or plumbing service to the
Premises, (ii) waste treatment, (iii) use as a machine
shop, (iv) the storage of materials in compliance with all
Legal Requirements, and for no other purpose.
6
(c) The
DI Space shall be used for the installation and operation by
Tenant, subject to compliance with all of the other terms and
conditions of this Lease, of the DI Water System for the provision
of deionized water to the Premises.
(d) The
Storage Area shall be used for (i) storage, including,
specifically, the collection and storage of Hazardous Materials (as
defined below) generated by Tenant at the Premises, subject to
compliance with all of the other terms and conditions of this Lease
(including, without limitation, Paragraph 9), and
(ii) the operation by Tenant, subject to all of the other
terms and conditions of this Lease, of a system for the delivery of
silane gas to the Premises.
(e) The
Hydrogen Area shall be used for the operation by Tenant, subject to
all of the other terms and conditions of this Lease, of systems for
the generation of hydrogen and/or oxygen and for the provision of
the same to the Premises, and for no other purpose.
(f) The
Nitrogen Area shall be used for the operation by Tenant, subject to
all of the other terms and conditions of this Lease, of a nitrogen
system for the provision of nitrogen to the Premises, and for no
other purpose.
(g) The
Oxygen Area shall be used for the operation by Tenant, subject to
all of the other terms and conditions of this Lease, of an oxygen
system for the provision of oxygen to the Premises.
(h) The
Caustic Area shall be used, subject to all of the other terms and
conditions of this Lease, for the provision of caustic to the
Premises.
Tenant agrees
to conduct its business in the manner and according to the
generally accepted business principles of the business or
profession in which Tenant is engaged. Tenant shall conduct its
operations and activities so as not to disrupt or interfere with
any tenants of Landlord. Tenant expressly acknowledges and agrees
that any and all of the foregoing permitted uses must be conducted
in accordance with all other terms and provisions of this Lease,
including all Legal Requirements.
(i) Notwithstanding
anything to the contrary provided in Paragraph 6(a), Tenant
shall not use or occupy the Premises or any portion thereof, permit
or suffer the same to be used or occupied and/or do, or permit or
suffer anything to be done, in or on the Premises or any part
thereof, that would, in any manner or respect:
(i)
violate any certificate of occupancy or Legal Requirement (as
defined below) in force relating to the Premises or the Rules (as
hereinafter defined);
(ii)
make void or voidable any insurance then in force with respect to
the Premises, or render it impossible to obtain fire or other
insurance thereon required to be furnished by Landlord or Tenant
under this Lease;
(iii)
cause structural or other injury to the Premises, or constitute a
private or public nuisance or waste;
7
(iv)
render the Premises incapable of being used or occupied after the
expiration or sooner termination of the term of this Lease for the
purposes for which the same were permitted to be used and occupied
on the day upon which Tenant first opened for business at the
Premises, except for ordinary wear and tear and damage by fire or
other casualty and repairs for which Tenant is not responsible
under this Lease; and/or
(v)
violate the provisions of Paragraph 9 hereof .
7. TENANT’S IMPROVEMENTS AND CARE OF THE
PREMISES.
(a) (i) Upon
the written consent of Landlord, not to be unreasonably withheld,
conditioned, or delayed, and upon Landlord’s cooperation in
providing appropriate space, locations, and access, Tenant may
complete tenant improvements within the Premises as described in
this article and in accordance with Exhibit D
(the “ Tenant Improvements ”) substantially in
accordance with Tenant’s Plans and Specifications (as defined
in Exhibit D ) and in a commercially reasonable and
workmanlike manner, in compliance with all certificates, permits,
and required approvals, applicable laws, statutes, ordinances,
orders, codes, rules and regulators of all federal, state, county,
city and local departments and agencies, including, without
limitation, the Americans with Disabilities Act of 1990 (as
amended), unless relating to the entrances to the Building or the
common areas of the Building (collectively, the “ Legal
Requirements ”), and free of all construction liens and
claims. All materials used by Tenant shall be of commercially
reasonable quality, or otherwise approved by Landlord in its sole,
reasonable discretion. Tenant shall be responsible for obtaining
all certificates of occupancy for the Premises and Landlord shall
reasonably cooperate with Tenant in obtaining any such certificate
at no out-of-pocket expense to Landlord, unless relating to common
areas of the Building (including parking areas and sidewalks),
which shall be Landlord’s responsibility.
(ii) Tenant
has installed a dedicated cooling system (consisting of two 500 ton
air-cooled rotary chillers, two new air-handling units, heat
exchanger, two process water centrifugal pumps and associate
chilled water piping) to provide cooling and humidity control for
Tenant’s clean room, epi, and process cooling requirements
(the “ Specialized Cooling System ”) which shall
be and remain the property of Tenant.
(b) Subject
to the terms and conditions set forth at Paragraph 7(a) above,
Tenant
(i) shall,
at Tenant’s sole cost and expense,
(A) Relocate or
remove Tenant’s oxygen system from its present location at
the Property (as depicted on Exhibit A-3 ) to the DI
Space, on or before December 31, 2006.
(B) Install
screening for the Hydrogen Area. The screening shall consist of a
permanent building to house the hydrogen generating system and a
screening system of not less
8
than ten feet
high around the balance of the hydrogen storage and distribution
system. The location and type of the permanent building and the
screening system shall be subject to the prior approval of
Landlord, which shall not be unreasonably withheld, conditioned or
delayed. Such screening of the Hydrogen Area shall be completed no
later than December 31, 2006; and
(C) Relocate
Tenant’s recycling dumpster from its present location in the
truck turn-around area at the northeast corner of the Building to
the Dumpster Location, on or before December 31,
2006.
(D) Provide a
method for the dip tanks located in its production areas to be
automatically dumped in the event of electrical power failure, on
or before June 30, 2007. Within 30 days of execution of
the Lease, Landlord shall pay to Tenant One Hundred Twenty-Eight
Thousand Dollars ($128,000.00) toward the cost and installation of
such system. Tenant shall be responsible for all other costs and
expenses associated with the purchase, installation and operation
of the system. Landlord shall not unreasonably withhold, condition,
or delay approval for installation.
(ii) may,
at Tenant’s sole cost and expense:
Install a security
card access system for Tenant’s Premises doors or other
reasonable security measures; provided, however, the location of
any such system and its components shall be subject to the
Landlord’s consent, not to be unreasonably withheld,
conditioned or delayed.
In addition to
the foregoing, Tenant hereby covenants and agrees that it will not
extend or renew any existing agreement (nor enter into any new
agreement) with Air Products and Chemicals, Inc. (or any other
entity or individual) with respect to hydrogen and/or nitrogen
services and/or systems at the Property, without the prior written
consent of Landlord, which consent may not be unreasonably
withheld, but may be conditioned upon acceptable resolution of
issues and discussion between Landlord and any such system
provider, as determined by Landlord in its sole
judgment.
(c) Except
for the obligations of Landlord contained in Paragraph 8 below
or elsewhere in this Lease, Tenant will take good care of the
Premises and shall be responsible, at Tenant’s sole cost and
expense, for the operation, maintenance, repair and replacement of
all of the Tenant Improvements and all other improvements
constructed by Tenant or Landlord, as well as the mechanical
equipment, fixtures and appurtenances therein (including, without
limitation, any production lines or facilities, clean rooms,
deionized water generation systems, hydrogen systems, nitrogen
systems, oxygen systems, caustic systems, process water systems,
water chiller systems, hot water systems, electric boiler
systems,
9
compressed air
systems, vacuum systems, air handling units, re-circulation units,
the Base Cooling System (as defined at Paragraph 8(e)(i)
below), the Tenant’s Specialized Cooling System, and any
other specialized equipment used by Tenant), and will neither
commit nor suffer any active or permissive waste or injury thereof.
In addition to the foregoing, except as set forth at
Paragraph 8(e)(v) below, Tenant shall be responsible for the
operation, maintenance, repair and replacement of the Hydrogen and
Nitrogen Lines (as defined at Paragraph 8(e)(v) below).
Furthermore, Tenant’s responsibilities also include, but
shall not be limited to, janitorial service, the cleaning of
draperies, the shampooing and/or re-stretching of the carpeting
located in the Premises, and the regular painting and decorating of
the Premises so as to maintain the Premises in a good condition and
state of repair. All such repair work and maintenance and any
alterations permitted by Landlord shall be done at Tenant’s
sole cost and expense by contractors selected by Tenant and
approved by Landlord, which approval Landlord agrees not to
unreasonably withhold, condition or delay. Subject to the
provisions of Paragraph 14 below, Tenant shall, at
Tenant’s expense, promptly repair any injury or damage to the
Premises or Building caused by the misuse or neglect thereof by
Tenant, by Tenant’s contractors, subcontractors, customers,
employees, licensees, agents, or invitees permitted or invited
(whether by express or implied invitation) on the Premises by
Tenant, or by Tenant moving in or out of the Premises.
(d) Unless
required to be performed pursuant to Paragraphs 7(a) or 7(b) above,
or 7(h) below, Tenant will not, without Landlord’s prior
written consent (not to be unreasonably withheld, conditioned, or
delayed), make alterations, additions or improvements in or about
Premises (other than mere decorations) and will not do anything to
or on the Premises which will increase the rate of fire or other
insurance on the Building or the Property. Except as set forth on
Exhibit H attached hereto and made a part hereof, all
existing alterations, additions and improvements of a permanent
nature made or installed by or on behalf of Tenant in the Premises
shall become the property of Landlord at the expiration or earlier
termination of this Lease. Prior to the installation of any future
alterations, additions or improvements of a permanent nature at the
Premises, the parties shall agree in writing (such writing,
hereinafter, a “ Written Decision ”) whether
such items (i) shall remain at the Premises and become the
property of the Landlord at the expiration or earlier termination
of this Lease, or (ii) shall be removed by Tenant at the
expiration or earlier termination of this Lease. If Tenant is
required to remove any such alterations, additions or improvements,
such removal shall be made at Tenant’s sole cost and expense,
and Tenant shall repair and restore the Premises to their condition
prior to such alteration, addition or improvement, reasonable wear
and tear, unrepaired casualty, and condemnation excepted. To the
extent, in violation of this Lease, the Tenant installs any
permanent alterations, additions or improvements without obtaining
a Written Decision, in addition to any other right or remedies
Landlord may have under this Lease, Landlord reserves the right to
remove any and all of such items and Tenant’s cost and
expense. Any sum expended by Landlord in connection with the
removal of any permanent alterations, additions and/or improvements
in accordance with this Section 7(d) shall constitute Additional
Rent.
(e) No
later than the last day of the Term or earlier termination as
provided herein, Tenant will remove all Tenant’s personal
property and repair all injury done by or in connection with
installation or removal of said property and surrender the Premises
(together with all keys, access cards or entrance passes to the
Premises and/or Building) in as good a condition as they were at
the beginning of the Term, reasonable wear and tear, unrepaired
casualty, and damage caused by condemnation, the negligent acts or
willful misconduct of
10
Landlord, its
agents, employees, invitees, contractors, subcontractors and others
for whom Landlord is legally responsible, or any breach of any of
Landlord’s obligations under this Lease, excepted. Except as
may be agreed by Landlord and Tenant in writing, all property of
Tenant remaining in the Premises after expiration or earlier
termination of the Term shall be deemed conclusively abandoned and
may be removed by Landlord, and Tenant shall reimburse Landlord for
the cost of removing the same, other than any property required
hereunder or by Landlord to remain on the Premises, subject
however, to Landlord’s right to require Tenant to remove any
improvements or additions made to the Premises by Tenant pursuant
to Paragraph 7(d) above.
(f)
(i) In doing any work in the Premises, Tenant will use only
contractors or subcontractors consented to by Landlord in writing
(which consent Landlord agrees not to unreasonably withhold,
condition or delay) prior to the time such work is commenced.
Further, in connection with any work in the Premises that is
expected to (or Landlord reasonably believes will) cost in excess
of $50,000.00, at Tenant’s option, either (A) Tenant, at its
expense, shall obtain prior to commencement of any work in the
Premises a performance and payment bond from its contractor, on the
latest edition of the A.I.A. form, covering such contractor’s
obligations, in which Landlord shall be named as a dual obligee, in
the total amount of the cost of the work to be performed, or
(B) ALL SUCH CONTRACTORS APPROVED IN WRITING BY LANDLORD AND
THEIR SUBCONTRACTORS AND MATERIALMEN WILL BE REQUIRED TO EXECUTE
AND DELIVER TO LANDLORD A FULL AND FINAL LIEN WAIVER WITH RESPECT
TO THE WORK TO BE PERFORMED OR MATERIALS TO BE PROVIDED BY SUCH
CONTRACTOR, SUBCONTRACTOR OR MATERIALMAN IN ADVANCE OF PERFORMING
ANY WORK IN OR PROVIDING ANY MATERIALS TO THE PREMISES.
(ii)
Tenant shall promptly bond off in a manner reasonably acceptable to
Landlord or otherwise release of record any lien or claim of lien
for material or labor claimed against the Premises or Building, or
both, by such contractors, subcontractors or materialmen if such
claim should arise by virtue of work contracted for by Tenant, and
hereby indemnifies and holds Landlord harmless from and against any
and all losses, costs, damages, expenses or liabilities including,
but not limited to, reasonable attorney’s fees, incurred by
Landlord, as a result of or in any way related to such claims or
such liens. All work shall be performed in accordance with the
Legal Requirements. If Tenant fails to bond off in a manner
reasonably acceptable to Landlord or otherwise release of record
any such lien within fifteen (15) days after Tenant receives
notice thereof, Landlord may remove such lien by paying the full
amount thereof or by bonding or in any other manner Landlord
reasonably deems appropriate, without investigating the validity
thereof and irrespective of the fact that Tenant may contest the
propriety or the amount thereof, and Tenant, upon demand, shall pay
Landlord the amount so paid out by Landlord in connection with the
discharge of such lien, together with expenses incurred in
connection therewith, including attorneys’ fees. Nothing
contained herein shall be construed as a consent on the part of
Landlord to subject Landlord’s estate in the Premises to any
lien or liability under the laws of the State of
Missouri.
11
(g) All
personal property brought into the Premises by Tenant, its
employees, licensees and invitees shall be at the sole risk of
Tenant, and Landlord shall not be liable for theft thereof or of
money deposited therein or for any damages thereto, such theft or
damage being the sole responsibility of Tenant.
(h)
(i) Tenant, at its expense, shall comply with all present or
future Legal Requirements affecting the Premises and with any
reasonable requirements of the insurance companies insuring
Landlord against damage, loss or liability for accidents in or
connected with the Premises to the extent that the same shall be
applicable to (i) Tenant’s particular manner of use of
the Premises (as opposed to its mere use thereof),
(ii) alterations and improvements made by Tenant, or
(iii) a breach by Tenant of its obligations under this Lease,
it being understood that Tenant shall not be, and Landlord shall
be, responsible for complying with Legal Requirements or insurance
requirements imposed on the Building generally and which would have
to be complied with whether or not Tenant was then in occupancy of
the Premises. Nothing herein contained, however, shall be deemed to
impose any obligation upon Tenant to make any structural changes or
repairs unless necessitated by Tenant’s acts or omissions or
by reason of a particular use by Tenant of the Premises. Landlord
shall be responsible for complying with all Legal Requirements
affecting the design, construction and operation of the Building,
including structural portions of the Premises, entrances and common
areas, or relating to the performance by Landlord of any duties or
obligations to be performed by it hereunder.
(ii)
The parties acknowledge that Title III of the Americans With
Disabilities Act of 1990 and the regulations and rules promulgated
thereunder, as all of the same may be amended and supplemented from
time to time (collectively referred to herein as the “
ADA ”) establish requirements for accessibility and
barrier removal, and that such requirements may or may not apply to
the Premises and the Property depending on, among other things:
(1) whether Tenant’s business is deemed a “public
accommodation” or “commercial facility”,
(2) whether such requirements are “readily
achievable”, and (3) whether a given alteration affects
a “primary function area” or triggers “path of
travel” requirements. The parties hereby agree that:
(a) Landlord shall be responsible for ADA Title III compliance
in the common areas, (b) Tenant shall be responsible for ADA
Title III compliance within the Premises, and (c) Landlord may
perform, or require that Tenant perform, and Tenant shall be
responsible for the cost of, ADA Title III “path of
travel” requirements within the Premises.
8. LANDLORD’S SERVICES AND OBLIGATIONS.
(a) Provided
no Event of Default (as hereinafter defined) exists, Landlord shall
furnish the following services to the Building:
(i)
Air conditioning and heating for interior common areas of the
Property being actively used (during heating and cooling seasons
determined by Landlord) during Ordinary Business Hours (“
Building Standard HVAC Services ”). Building Standard
HVAC Services shall not include Tenant Specialized HVAC
Systems.
12
“
Tenant’s Specialized HVAC Systems ” shall mean
(A) any special space conditioning systems or equipment
required to accommodate Tenant’s operation, or to accommodate
environmental criteria such as temperature, humidity, and odor or
particulate contamination control (including, without limitation,
Tenant’s Specialized Cooling System), and (B) the Base
Cooling System.
(ii)
Such security services that Landlord shall elect to provide in its
sole and absolute discretion (it being agreed that Landlord shall
have no obligation to provide any security services).
(iii)
Domestic potable water for drinking, lavatory or toilet purposes
(but this shall not be construed as requiring Landlord to install
plumbing facilities in the Premises).
(iv)
Janitorial service for the common areas of the Building, including,
but not limited to, (a) regular sweeping and cleaning of
floors, carpets and sidewalks, (b) trash removal, cleaning and
supply provision to restrooms, furniture, walls, ceilings and all
other components of the common areas, and (c) window cleaning,
painting or decorating to maintain such areas in good and
commercially reasonable condition and appearance.
(v)
Electricity to operate the Building.
(vi)
Grounds care, including (a) snow removal, (b) the
sweeping of walks and parking areas, (c) repairs, replacement
and re-striping of parking lots, sidewalks and firelanes, and
(d) the maintenance of landscaping in a commercially
reasonable manner.
(vii) General
management, including supervision, inspections and management
functions.
(b) Provided
no Event of Default exists, Landlord shall furnish the following
services to the Premises:
(i) Electricity
by providing electric current in reasonable amounts necessary for
the uses set forth at Paragraph 6 (the cost of which shall be
paid by Tenant consistent with the provisions of
Paragraph 3(d)).
(ii) Periodic
changing of Building standard light bulbs in the ceilings (the cost
of which shall be paid by Landlord). Tenant shall be responsible
for all other light bulbs at the Premises, and the changing
thereof.
(c) Tenant
shall have the right to install equipment at the Premises, subject
to Landlord’s prior approval (which shall not be unreasonably
withheld, conditioned or delayed), provided such equipment does not
exceed the rated electric design of the feeders and substations
that serve the Premises. Landlord shall have the right to designate
the bus ducts, panels, and/or substations that may be used by
Tenant. Additionally, Tenant agrees that if any
13
new load is
added to a source not dedicated to the Tenant’s sole use and
tracked by an existing submeter, Tenant at its sole cost and
expense shall install a submeter as directed by the
Landlord.
(d) Landlord
shall not be liable for any damages directly or indirectly, and,
except as set forth below, Tenant shall have no right of set-off or
reduction in Rent, resulting from any interruption in connection
with the furnishing of services or utility services referred to
herein, including, but not limited to, any interruption in services
or utility services due to breakage, shortage of labor, shortage of
fuel or for any other cause; provided , however , in
the event of interruption or discontinuance of water or electrical
service provided by or through Landlord pursuant to this Lease and
such interruption or discontinuance, in the reasonable judgment of
the Tenant, materially interferes with and adversely affects
Tenant’s ability to conduct business in the Premises, then
Tenant may deliver notice of such interruption or discontinuance
(which notice for purposes hereof may be made by telephone to
(i) Landlord’s project manager or management agent, and
(ii) Landlord; and promptly thereafter confirmed in writing
(which written notice may be delivered by facsimile) to
(x) Landlord’s project manager or management agent, and
(y) Landlord, notwithstanding any other notice provision of
this Lease to the contrary; such notice, hereinafter the “
Initial Contact ”) in which event Landlord shall
immediately commence efforts to remedy the situation. The parties
hereby acknowledge and agree that such remedy efforts (hereinafter,
“ Repair Efforts ”) may include, particularly in
the initial stages after receipt of the Initial Contact, conducting
appropriate analysis, investigation and diagnostic due diligence to
determine the extent of any problem and an appropriate solution,
and that such efforts may include contacting service providers and
other third party vendors for advice and guidance. After twelve
(12) hours from delivery of the telephonic Initial Contact,
Tenant may request Landlord to provide a status of the Repair
Efforts and a summary of the proposed corrective action. In the
event of a service interruption or discontinuance of service that
requires Repair Efforts (as described above) that continues beyond
two (2) consecutive days following Landlord’s receipt of
Tenant’s telephonic Initial Contact, Base Rental shall be
abated proportionately in an amount equal to the portion of the
Primary Premises rendered unusable commencing on the third (3rd)
consecutive day following the date of Landlord’s receipt of
Tenant’s telephonic Initial Contact. Landlord and Tenant
agree that if such interruption or discontinuance of water or
electrical service materially interferes with and adversely affects
Tenant’s ability to conduct business in the Primary Premises,
but Tenant does not totally discontinue operations, then a partial
Base Rental reduction shall be provided in proportion to the amount
of the Primary Premises affected by such discontinuance or
disruption which Tenant does not continue to use. Without
limitation on the foregoing, under no circumstances shall Landlord
incur liability for damages caused directly or indirectly by any
malfunction of any of Tenant’s computer systems, production
lines or facilities, or any clean rooms, or any deionized water
generation systems, hydrogen systems, nitrogen systems, oxygen
systems, caustic systems, process water systems, water chiller
systems, hot water systems, electric boiler systems, compressed air
systems, vacuum systems, air handling units, re-circulation units,
the Base Cooling System, the Tenant’s Specialized Cooling
System, any other specialized equipment used by Tenant, or the
Hydrogen and Nitrogen Lines, resulting from or arising out of the
failure or malfunction of any electrical, air conditioning, chilled
water or other system serving the Building, and Tenant hereby
expressly waives the right to make any such claim against Landlord.
In no event shall Landlord be liable for special, exemplary or
consequential damages. Notwithstanding the foregoing, in the event
of an interruption or discontinuance of services
14
which
materially and adversely affects Tenant’s ability to conduct
its business in the Premises, Landlord agrees to exercise
commercially reasonable efforts to promptly restore such
services.
(e)
(i) Landlord shall provide a dedicated cooling system (the
“ Base Cooling System ”) consisting of two 500
ton air-cooled chillers and all associated plumbing, electric and
controls to provide cooling capacity for Tenant’s office and
support space only, as depicted on Exhibit K
attached hereto and made a part hereof. Tenant hereby acknowledges
and agrees that (i) as of the date hereof, Landlord has
installed the Base Cooling System, and (ii) Landlord has no
responsibilities or obligations with respect to the operation,
maintenance, or replacement of the same. As set forth at Paragraph
7(c) above, Tenant shall be responsible for any and all costs, fees
and expenses for the operation, maintenance, repair and replacement
of the Base Cooling System.
(ii)
To the extent Landlord determines that a screening system is
required at the Nitrogen Area, Landlord shall be responsible, at
Landlord’s sole cost and expense, for any such screening
system.
(iii)
Landlord reserves the right, at its sole cost and expense, to
relocate the nitrogen system (which is currently located in the
Nitrogen Area) and/or the hydrogen system (which is currently
located in the Hydrogen Area). In connection with any such
relocation of the nitrogen and/or hydrogen systems, Landlord shall
undertake commercially reasonable efforts to minimize any
interference with Tenant’s operations at the Premises.
Additionally, to the extent that any screening systems (including
any permanent structure or building) installed by Tenant existed
prior to such relocation, Landlord shall be responsible, at its
sole cost and expense, for installing a comparable screening system
at the relocated site.
(iv)
To the extent Landlord determines that landscaping is required
around the Hydrogen Area, Nitrogen Area and/or the Storage Area,
Landlord shall be responsible, at Landlord’s sole cost and
expense, for such landscaping.
(v)
Landlord shall be responsible for any damage to those portions of
the service/system lines with respect to the hydrogen and nitrogen
systems serving the Premises that are located under space leased to
other tenants (which is not accessible by Tenant) or located
underground, unless such damage is caused by or results from the
negligent acts or omissions of Tenant, or its agents, employees,
licensees or contractors. The entirety of such service/system lines
shall hereinafter be referred to as the “ Hydrogen and
Nitrogen Lines ”, and the portions for which Landlord
shall be responsible for damage (as described above) shall
hereinafter be referred to as the “ Obstructed
Segments ”.
(f) During
the Term, Landlord shall comply with all Legal Requirements, except
to the extent such compliance is the obligation of Tenant, and
shall
15
perform in a
good and workmanlike manner in compliance with all applicable Legal
Requirements, all maintenance, repairs and replacements to:
(i) the structural components of the Primary Premises and the
FabTech – Basement Area, including without limitation the
roof, roofing system, exterior walls, bearing walls, support beams,
foundations, columns, exterior doors and windows and lateral
support to the Primary Premises and the FabTech – Basement
Area; (ii) assure water tightness of the Primary Premises and
the FabTech – Basement Area (including caulking of the
flashings) and repairs to the roof, roofing system, curtain walls,
windows, and skylights if required to assure water tightness;
(iii) the plumbing, fire sprinkler, electrical and mechanical
lines and equipment associated therewith, including without
limitation elevators; (iv) the exterior improvements to the
Property, including walkways, driveways, parking areas, parking
area lighting, if any, shrubbery and landscaping; (v) the
glass including cleaning and replacements; (vi) the Premises
caused by the breach of this Lease by the Landlord or the negligent
acts (but not negligent omissions) or willful misconduct of
Landlord, its agents, independent contractors, representatives or
employees; and (vii) the fire suppression system for the
Building. Notwithstanding the foregoing, all electrical wiring and
equipment (including, without limitation, all bus ducts, electric
panels and any and all other similar equipment) within the Premises
shall be the responsibility of Tenant. Landlord shall use
reasonable efforts to minimize any interference with Tenant’s
use of the Premises while making repairs to the Building or the
Premises.
(g) Landlord
shall have no obligation or liability with respect to or in any way
connected with the Premises, or service to the Premises, except as
set forth in the Lease. Landlord shall not be deemed to have
committed a breach of any repair or maintenance obligations unless
it makes repairs negligently or fails to satisfy its repair or
maintenance obligations under this Lease within a reasonable period
of time, taking into consideration the nature of the repair or
maintenance to be undertaken and the impact on Tenant of any delay
in the performance of such repair or maintenance.
9. HAZARDOUS WASTES/ENVIRONMENTAL COMPLIANCE.
(a)
Definitions . As used in this Paragraph, the following terms
have the indicated meanings:
(i)
“ Hazardous Material ” means any chemical,
compound, material, mixture, living organism or substance that is
now or hereafter defined or listed in, or otherwise classified
pursuant to, any Environmental Laws as a “hazardous
substance”, “hazardous material”,
“hazardous waste”, “extremely hazardous
waste”, “infectious waste”, “toxic
substance”, “toxic pollutant” or any other
formulation intended to define, list or classify substances by
reason of deleterious properties such as ignitability, corrosivity,
reactivity, carcinogenicity or toxicity, including any petroleum,
polychlorinated biphenyls (“ PCBs ”), asbestos,
radon, natural gas, natural gas liquids, liquefied natural gas or
synthetic gas usable for fuel (or mixtures of natural gas and such
synthetic gas).
(ii)
“ Environmental Laws ” means any and all present
and future federal, state and local laws (whether under common law,
statute, rule, regulation
16
or otherwise),
requirements under permits issued with respect thereto, and other
requirements of any “Governmental Authority” relating
to any Hazardous Material or to any activity involving a Hazardous
Material, including without limitation the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C.
9601 et seq., the Resource Conservation and Recovery Act, 42 U.S.C.
6901 et seq., the Clean Water Act, 33 U.S.C. 1251 et seq. ,
the Clean Air Act, 42 U.S.C. 7401 et seq. , the Toxic
Substance Control Act, 15 U.S.C. 2601 et seq., and the Safe
Drinking Water Act, 42 U.S.C. 300f through 300j, as all of the
foregoing may be amended from time to time.
(iii)
“ Governmental Authority ” means all federal,
state, and local governmental agencies, authorities, and
courts.
(iv)
“ Remedial Work ” means any loss, cost, expense,
claim, or liability arising out of any investigation, monitoring,
cleanup, containment, removal, storage, or restoration
work.
(b)
Covenants . Subject to the provisions of Paragraph 9(h)
below, throughout the term of this Lease, Tenant shall:
(i) prevent the presence, use, generation, release, discharge,
storage, disposal, or transportation of any Hazardous Materials on,
under, in, above, to, or from the Premises, other than in strict
compliance with all applicable Environmental Laws and the terms of
this Lease; (ii) not cause the presence, use, generation,
release, discharge, storage, disposal or transportation of any
Hazardous Materials on, under, in, above, to, or from the Building
or the Property, other than in strict compliance with all
applicable Environmental Laws and the terms of this Lease;
(iii) conduct all activities on the Premises in accordance
with applicable Environmental Laws; (iv) not conduct any
activities on the Premises, the Building or the Property which is
regulated as an activity subject to pre-treatment standards
pursuant to 40 C.F.R. § 403 et. seq. other than in
strict compliance with all applicable Environmental Laws and the
terms of this Lease; (v) obtain all permits required for its
operations under any Environmental Law (and, if requested by
Landlord, provide copies of permits, amendments and variances
thereto to Landlord); (vi) not conduct its operations as to
constitute hazardous waste treatment storage or disposal facilities
pursuant to 42 U.S.C. § 6924 or other similar Environmental
Law; (vii) not install or operate, any underground storage
tank; and (viii) not install or operate any underground
injection well.
(c)
Indemnification by Tenant . If due to the activities of
Tenant, its employees, agents, guests, invitees or contractors,
Tenant shall indemnify, defend, and hold Landlord harmless from and
against: (i) any Remedial Work required under any
Environmental Law or by any Governmental Agency in the Premises,
the Building or the Property, (ii) any breach of this
Paragraph 9 of this Lease; and (iii) any claims of third
parties for loss, injury, expense, or damage arising out of the
presence, release, or discharge of any Hazardous Materials on,
under, in, above, to, or from the Premises, the Building or the
Property. In the event any Remedial Work is so required under any
applicable federal, state, or local law, rule, regulation or order
with respect to any activities by Tenant in the Property, Tenant
shall promptly perform or cause to be performed such Remedial Work
in compliance with such law, rule, regulation, or order. In the
event Tenant shall fail to commence the Remedial Work in a timely
fashion, or shall fail to prosecute diligently the Remedial Work to
completion, such failure shall constitute an Event of Default on
the part of Tenant under the terms of this Lease, and Landlord, in
addition
17
to any other
rights or remedies afforded it hereunder, may, but shall not be
obligated to, cause the Remedial Work to be performed, and Tenant
shall promptly reimburse Landlord for any and all costs and
expenses, including reasonable attorneys’ fees, related
thereto upon demand. This provision shall expressly survive the
expiration or earlier termination of this Lease. Landlord and
Landlord’s representatives are authorized to enter the
Premises at any time to inspect the Remedial Work. Tenant shall
keep Landlord apprised of all efforts to perform the Remedial Work
and shall provide Landlord with copies of all correspondence,
reports, or other documents pertaining to the Remedial Work within
48 hours of Tenant’s receipt of such documentation. Landlord
acknowledges and agrees that notwithstanding anything herein to the
contrary, Tenant shall have no responsibility for or with respect
to any Hazardous Material existing in or on the Premises or
Property on the date Landlord delivers possession of the Premises
to Tenant or for or with respect to any Hazardous Material which
Tenant did not store, release or discharge on or into the Premises
or dispose of.
(d)
Indemnification by Landlord / Tenant Termination Right . If
due to the activities of the Landlord, its employees, agents,
guests, invitees or contractors, Landlord shall indemnify, defend,
and hold Tenant harmless from and against: (i) any Remedial
Work required under any Environmental Law or by any Governmental
Agency in the Premises, the Building or the Property; and
(ii) any claims of third parties for loss, injury, expense, or
damage arising out of the presence, release, or discharge of any
Hazardous Materials on, under, in, above, to, or from the Premises,
the Building or the Property. In the event any Remedial Work is so
required under any applicable federal, state, or local law, rule,
regulation or order with respect to any activities by Landlord,
Landlord shall promptly perform or cause to be performed such
Remedial Work in compliance with such law, rule, regulation, or
order. In the event Landlord shall fail to commence such Remedial
Work in a timely fashion, or shall fail to prosecute diligently
such Remedial Work to completion, such failure shall constitute an
Event of Default on the part of Landlord under the terms of this
Lease, and Tenant shall be entitled to terminate this Lease without
penalty upon ten (10) days prior written notice thereof to
Landlord; provided , however , at any time a Mortgage
(as hereinafter defined) affecting all or any portion of the
Premises is outstanding, subject to the terms and conditions set
forth in any subordination non-disturbance and attornment agreement
(or such other similar instrument) between the Tenant and Mortgagee
(as hereinafter defined), Tenant shall provide Mortgagee with
(i) written notice of Landlord’s failure to timely
commence or diligently prosecute the completion of such Remedial
Work, and (ii) thirty (30) days to undertake the
commencement or diligent prosecution of completion, as the case may
be, of the same. Should Mortgagee fail to undertake the
commencement or diligent prosecution of completion of such Remedial
Work as aforesaid, Tenant shall be entitled to terminate this Lease
without penalty upon ten (10) days prior written notice thereof to
Landlord and Mortgagee.
(e)
Notice . Landlord and Tenant shall:
(i)
within two (2) business days after receipt of any notice,
demands, lawsuits, or other correspondence (collectively, “
Notices ”) from any Government Agency or private party
with respect to Hazardous Materials or knowledge of any Notice or
any of the circumstances described below affecting the Premises,
the Building or the Property, notify the other and provide the
other with all copies of any such Notices and any other information
pertaining to the Premises, the Building or the
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Property of
which such party has actual knowledge, including, but not limited
to, the following:
(A)
The violation of any Environmental Law;
(B)
The loss of any permit issued in accordance with any Environmental
Law;
(C)
Any action undertaken by any Government Agency or private party
under or in accordance with any Environmental Law;
(D)
The institution of any lawsuit under or in accordance with any
Environmental Law by any Governmental Authority or any private
party; or
(E)
The service of a potentially responsible party demand letter from
any private or Governmental party or Governmental
Authority.
(ii)
Notify the other party immediately of any release, threatened
release or discharge of Hazardous Materials on, under, to or from
the Premises, the Building or the Property.
(f)
Right of Entry, Inspection, and Testing . Except in the
event of any emergency (when Landlord may enter without notice of
any kind), Landlord and its agents shall have the right to enter
the Premises upon 24 hours notice to Tenant (or, if Tenant provides
written notice to Landlord of the name, address, telephone number
and e-mail address of Tenant’s administrative manager or
designee (as the case may be), then such administrative manager or
designee) and inspect the Premises and Tenant’s business
operations. Landlord’s entry and inspection shall not
interfere with Tenant’s normal business operations, and,
except in the event of any emergency, Landlord shall provide the
opportunity for a representative of Tenant to accompany Landlord or
its agents. Landlord shall be permitted to conduct tests and take
samples at the Premises.
(g)
Existing Environmental Building Materials . Tenant
acknowledges that the Project may contain building materials which
include asbestos containing materials and wall coverings which may
include lead-based paints (“ Existing Environmental
Building Materials ”). As of the date of this Lease, the
Existing Environmental Building Materials do not violate applicable
laws. Tenant accepts that fact that the Project may contain the
Existing Environmental Building Materials. Landlord agrees to
indemnify and hold Tenant harmless from any costs, expenses, or
liabilities, including reasonable attorneys’ fees, which may
arise during the Term in connection with the Existing Environmental
Building Materials.
(h)
Environmental Health and Safety Agreement . The Landlord and
Tenant have executed that certain Environmental Health and Safety
Agreement dated October 29, 1999 (the “ EHSA
”), a copy of which is attached hereto as
Exhibit E and made a part hereof.
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The parties
hereby agree that any and all references in the EHSA to a
“lease” or any other similar “agreement”
shall mean this Lease. Section D.1.b. of the EHSA requires
Tenant to collect and store hazardous waste generated at the
Primary Premises (hereinafter, “ Tenant Waste ”)
in “tenant’s hazardous waste storage area”.
Subject to all of the terms, conditions and provisions of this
Lease (including, without limitation, compliance with the EHSA and
all Legal Requirements), Tenant shall be permitted to collect and
store such Tenant Waste in the Storage Area. In the event of a
discrepancy between the terms and provisions of this Lease and the
EHSA, the terms and provisions of the EHSA shall
control.
10. ASSIGNMENT AND SUBLEASE.
(a) Except
as hereafter provided, Tenant shall not sublet any part of the
Premises, nor assign, pledge or encumber this Lease or any interest
herein, without the prior written consent of Landlord, which
consent may not be unreasonably withheld, conditioned or delayed by
Landlord. Landlord shall be entitled to deny consent to an
assignment of this Lease if, by way of illustration but not
limitation, the financial statements of the proposed assignee do
not demonstrate such assignee’s ability to comply with
Tenant’s obligations hereunder. Consent by Landlord to one
assignment or sublease shall not destroy or waive Landlord’s
required consent as to any subsequent assignment or subletting, and
all later assignments and subleases shall likewise be made only
upon prior written consent of Landlord. In the event an assignment
is consented to by Landlord, any assignees shall become liable
directly to Landlord for all obligations of Tenant hereunder
without relieving or in any way modifying Tenant’s liability
hereunder, but rather Tenant and its transferee shall be jointly
and severally liable therefor; provided, however, Tenant shall be
relieved of liability hereunder if such transferee assumes all of
Tenant’s responsibilities and obligations hereunder and such
transferee, as of the date of such assignment, has a credit rating
equal to or exceeding the credit rating of Tenant as ascribed by
either (i) Standard and Poor’s, or
(ii) Moody’s Investors Service. In the event Landlord
gives its consent to any such assignment or sublease (excluding an
Affiliate Transfer, as defined below), one hundred percent (100%)
of any rent or other cost to the assignee or subtenant for all or
any portion of the Premises over and above the Rent payable by
Tenant for such space shall be retained by Tenant. In the event a
sublease or assignment is made as herein provided, Tenant shall pay
Landlord a charge equal to the actual costs incurred by Landlord,
in Landlord’s reasonable judgment (including, but not limited
to, the use and time of Landlord’s personnel), for all of the
necessary legal and accounting services required to accomplish such
assignment or subletting, as the case may be. Any transfer,
assignment or sublease of all or any portion of the Premises or
Tenant’s interest under this Lease made without
Landlord’s consent shall be void and of no force or
effect.
(b) Notwithstanding
the foregoing, Tenant named herein, FabTech, Inc. (“
FabTech ”) may assign this Lease or sublet any portion
of the Premises to (i) any wholly owned subsidiary of FabTech,
so long as it remains as such, (ii) Diodes, Inc. a Delaware
corporation (hereinafter, the “ Parent ”), so
long as such Parent owns all of the classes of stock of FabTech, or
(iii) LITE-ON Semiconductor Corporation, a Taiwanese
corporation (“ LITE-ON Semiconductor ”), or any
wholly owned subsidiary thereof. The assignments and sublettings
permitted by clauses (i), (ii) and (iii) are hereinafter
called “ Affiliate Transfers ”. An
Affiliate
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Transfer may
only be made upon prior written notice to Landlord, but shall not
require Landlord’s consent.
(c) Except
as set forth at Section 10(a) above, in the event of any assignment
of this Lease or sublease of all or a part of the Premises, Tenant
shall not be released from any of its obligations under this Lease.
In the event this Lease has been assigned by Tenant, either with
the approval and consent of Landlord or to a permitted assignee,
and the original Tenant named herein has not been released by
Landlord from liability with respect to such assignment, Landlord
agrees to give Tenant a copy of any notice of default given by
Landlord to such assignee and the same opportunity to cure the
default of such assignee as is given to such assignee under this
Lease, including the right to regain possession if such assignee is
in default under its obligations of this Lease. In the event of an
Event of Default by such assignee, at Tenant’s request and at
Tenant’s sole cost and expense (including, without
limitation, the payment by Tenant of Landlord’s reasonable
attorneys’ fees), Landlord agrees to terminate this Lease as
to such assignee and to enter into a replacement lease with Tenant
for the balance of the remaining Term hereof under the same terms
and conditions herein set forth as applicable to the Premises,
provided that Tenant cures all such defaults by such
assignee.
11. DAMAGE OR DESTRUCTION.
(a) Tenant
shall promptly notify Landlord of any damage to the Premises or the
Building of which Tenant has actual knowledge occasioned by storm,
earthquake, fire, the elements, casualty or any other cause (a
“ Casualty ”). If the Premises are totally
destroyed (or so substantially damaged as to be untenantable in the
reasonable determination of an architect selected by Landlord
(“ Architect ”) by a Casualty, then within sixty
(60) days from the date of such Casualty (the “
Evaluation Period ”):
(i)
Landlord shall determine, based upon information from
Landlord’s insurance company, whether Landlord will receive
(in a timely manner) adequate insurance proceeds to complete the
required repairs to or restoration of the Premises;
(ii)
Landlord shall determine from the holder of any mortgage, deed of
trust, indenture, deed to secure debt or other similar instrument
encumbering the Property whether Landlord will be allowed to apply
such insurance proceeds to the required repair or restoration
instead of applying such proceeds toward the reduction of any
indebtedness secured by the Property;
(iii)
Landlord shall determine if the zoning laws or building codes then
in existence will permit the reconstruction of the Building as of
right (without variance); and
21
(iv)
Landlord shall engage a reputable contractor to determine the
length of time expected to repair or restore the
Premises.
If during the
Evaluation Period (A) Landlord determines either that it will
not receive sufficient insurance proceeds to complete the required
repair or restoration or will not be allowed by the holder of any
mortgage or deed to secure debt encumbering any portion of the
Property to apply such proceeds to the required repair or
restoration, (B) Landlord determines that the zoning laws or
building codes then in existence will not permit the reconstruction
of the Building as of right (without variance), (C) in the
determination of Landlord’s contractor, the Premises cannot
reasonably be repaired, replaced or restored within one hundred
eighty (180) days after commencement of repairs or
restoration, or (D) this Lease is in the last eighteen
(18) months of its Term, Landlord shall have the option to
terminate this Lease as of the date of the occurrence of the
Casualty by giving written notice to Tenant within fifteen
(15) days after the end of the Evaluation Period. If
(X) in the determination of Landlord’s contractor the
Premises cannot reasonably be repaired, replaced or restored within
one hundred eighty (180) days after commencement of repairs or
restoration, or (Y) this Lease is in the last eighteen
(18) months of its Term, and in either case the Casualty was
not the result of any willful misconduct of Tenant, its agents,
servants, employees or subtenants, Tenant also shall have the
option to terminate this Lease as of the date of the occurrence of
the Casualty by giving written notice to Landlord within fifteen
(15) days after the later of (i) the end of the
Evaluation Period and (ii) the date Tenant receives the
determination of Landlord’s contractor regarding how long it
will take to repair, replace or restore the Premises.
(b) Unless
this Lease is terminated pursuant to Paragraph 11(a) above, in the
event of damage to the Premises or the Building occasioned by a
Casualty, Landlord shall, subject to the provisions of Paragraph
11(d) below, promptly commence and thereafter pursue diligently and
as expeditiously as practicable, the repair and restoration of
damage to the Premises, using standard working methods and
procedures:
(c) Unless
the damage to the Premises, the Building or services to the
Premises is caused by the intentional acts of Tenant, its permitted
assignees or subtenants, employees or agents, the Rent shall abate
in proportion to that part of the Premises rendered unfit for use
by Tenant for Tenant’s permitted use described in Paragraph
6(a) above as a result of such damage (which for such purposes
shall include damage to the Building or to services to the Premises
if the Premises are thereby rendered unfit for Tenant’s
permitted use). The nature and extent of interference to
Tenant’s ability to use the Premises for Tenant’s
permitted use shall be considered in determining the amount of said
abatement, and the abatement shall commence and continue from the
date the Casualty occurred until ten (10) days after the date
Landlord substantially completes the repair and restoration of the
Premises and gives notice to Tenant that said repairs and
restoration are substantially completed, or until Tenant again uses
the Premises or the portions thereof rendered unusable, whichever
occurs first. Anything in the foregoing to the contrary
notwithstanding, if twenty-five percent (25%) or more of the
Premises has been so damaged or destroyed as to render such damaged
or destroyed portion unfit for Tenant’s permitted use, such
damage or destruction was not caused by the intentional acts of
Tenant, its permitted assignees or subtenants, employees or agents,
and if Tenant vacates the entire Premises
22
during the
period of repair or restoration, then Rent shall abate in its
entirety during the period of repair or restoration.
(d) Notwithstanding
anything to the contrary contained or implied elsewhere in this
Lease, Landlord is not and shall not be obligated to repair or
restore damage to Tenant’s trade fixtures, furniture,
furnishings, equipment or other personal property, or any Tenant
Improvements or other improvements made to the Premises by
Tenant.
(e) If
either party terminates this Lease consistent with the provisions
of Paragraph 11 (a) above, the Rent (including any Additional
Rent, and other charges due hereunder) shall be payable up to the
termination date, after taking into account any applicable
abatement. Landlord shall promptly refund to Tenant any prepaid,
unaccrued Rent and Additional Rent (after taking into account any
applicable abatement), less any sums then owing by Tenant to
Landlord.
If
all of the Premises, (or a part of the Premises such that the
remainder of the Premises in the reasonable judgment of the
Architect is not reasonably usable for Tenant’s permitted use
described in Paragraph 6(a) above), are taken by exercise of the
power of eminent domain or other similar proceeding (or are
conveyed by Landlord in lieu of such taking), this Lease will
terminate on a date which is the earlier of the date upon which the
condemning authority takes possession of the Premises or the date
on which title to the Premises is vested in the condemning
authority. In the event of a partial taking where this Lease is not
terminated, the Base Rental and Additional Rent will be abated in
the proportion of the rentable area of the Premises so taken to the
rentable area of the Premises immediately before such taking. In
the event of any such taking, the entire award relating to the
Building or the Property will be paid to Landlord, and Tenant will
have no right or claim to any part of such award; however, Tenant
will have the right to assert a claim against the condemning
authority, so long as Landlord’s award is not reduced or
otherwise impacted as a consequence of such claim, for
Tenant’s moving expenses, the Tenant Improvements and trade
fixtures owned by Tenant and interruption to Tenant’s
business.
(a) Tenant
shall carry (at its sole expense from and after the date hereof and
during the Term) the following insurance:
(i)
Commercial property insurance with special causes of loss coverage
(including earthquake and flood insurance as appropriate), or its
equivalent, insuring the Tenant Improvements and Tenant’s
interest in any other improvements to the Premises together with
any and all furniture, equipment, supplies, contents and other
property owned, leased, held or possessed by it and contained
therein (including, without limitation, any of Tenant’s
computer systems, production lines or facilities, or any clean
rooms, or any deionized water generation systems, hydrogen systems,
nitrogen systems,
23
oxygen systems,
caustic systems, process water systems, water chiller systems, hot
water systems, electric boiler systems, compressed air systems,
vacuum systems, air handling units, re-circulation units, the Base
Cooling System, the Tenant’s Specialized Cooling System, any
other specialized equipment used by Tenant, and the Hydrogen and
Nitrogen Lines, such insurance coverage to be in an amount equal to
the full insurable value of such improvements and property, subject
to reasonable deductibles, as such may increase from time to time.
Tenant shall have the right to include the Premises within a
blanket policy of insurance which includes the Premises and other
locations;
(ii)
boiler and machinery insurance and boiler broad form insurance with
respect to the any deionized water system, hot water system,
electric boiler system, hydrogen system, nitrogen system, oxygen
system, compressed air system, vacuum system, silane gas bunker,
steam boiler system and any other boilers and machinery that may
exist at the Premises, and boiler comprehensive form insurance
covering fired pressure vessels and machinery of 10 or greater
horsepower (and air conditioner/air compressor unit coverage as
applicable), if any, located in or exclusively servicing the
Premises, in an amount reasonably designated by Landlord, for and
in the name of Tenant and Landlord as their respective interests
may appear.
(iii)
workers’ compensation insurance as required by applicable law
and employer’s liability coverage of $100,000 for each
accident, $500,000 disease policy limit, and $100,000 disease, each
employee limit; and
(iv)
commercial general liability insurance containing coverages
reasonably acceptable to Landlord, insuring Tenant, Landlord,
Landlord’s Mortgagee and any other person reasonably
designated by Landlord against any and all liability for injury to
or death of a person or persons and for damage to property
occasioned by or arising out of any construction work being done on
the Premises by or on behalf of Tenant (excluding work being
performed by Landlord), or arising out of the use or occupancy of
the Premises by Tenant, its employees, agents, representatives or
contractors, which policy shall have a per occurrence limit of
$1,000,000, aggregate $2,000,000, an umbrella of $5,000,000 for any
bodily injury or property damage occurring as a result of or in
conjunction with the above, a deductible no higher than $100,000,
and which liability insurance shall (A) be primary insurance
as to all claims thereunder and provide that any insurance carried
by Landlord is not excess and is non-contributing with any
insurance requirement of Tenant; (B) contain a severability of
interest clause acceptable to Landlord; and (C) specifically
cover contractual liability.
The
insurance required in subparagraph (iv) above shall name
Landlord, Townsend Capital, LLC, Landlord’s Mortgagee (if
identified by Landlord to Tenant; for purposes of satisfying the
foregoing (and Paragraph 13(b) below), the parties hereby
acknowledge and agree that, as of the date hereof, Landlord’s
Mortgagee is IXIS Real Estate Capital with a notice address of 9
West 57 th
Street, 36 th Floor, New York, New York 10019, Attention: Real
Estate Administration (Gary DiGiuseppe), Facsimile Number:
212-891-6263, and any other person reasonably designated by
Landlord and approved by Tenant’s insurance carrier as
additional insureds. All said insurance policies shall be carried
with companies licensed to do business in the State of Missouri
reasonably satisfactory to Landlord, shall be
24
written on an
occurrence basis, and shall be noncancellable except after thirty
(30) days’ written notice to Landlord. Duly executed
certificates of such insurance on the ACORD Form 27 format and
otherwise, in form reasonably acceptable to Landlord, shall be
delivered to Landlord prior to the Commencement Date and at least
thirty (30) days prior to the expiration of each respective
policy term. Each insurance policy will contain a provision
requiring thirty (30) days prior written notice to Landlord
and any other additional insured of any material change to such
policy, or if the policy is cancelled or not renewed (other than
for non-payment of the applicable premium, in which event only ten
(10) days prior notice of cancellation or non-renewal shall be
required).
(b) Throughout
the making of any alterations or improvements (other than mere
decorations) by Tenant, its agents, contractors or employees,
Tenant or Tenant’s contractor(s), at its expense, shall carry
or cause to be carried (i) workmen’s compensation
insurance in statutory limits, covering all persons employed in
connection with such alteration or improvements,
(ii) builder’s risk insurance covering all physical loss
(including any loss of or damage to supplies, machinery and
equipment) in connection with the making of such alterations or
improvements, and (iii) commercial general liability insurance,
with completed operations endorsement, covering any occurrence in
or about the Premises in connection with such improvements, which
commercial general liability insurance policy shall have a per
occurrence limit of $1,000,000, aggregate $2,000,000, an umbrella
of $5,000,000, and a deductible no higher than $100,000. Tenant
shall furnish Landlord with satisfactory evidence that such
insurance is in effect before the commencement of its improvements
and, on request, at reasonable intervals thereafter. Evidence of
such insurance in ACORD Form 27 format and signed by a
reputable insurance agent shall be delivered to Landlord prior to
the commencement of any such alterations or improvements. Each
policy shall name Landlord, Townsend Capital, LLC, and
Landlord’s Mortgagee (if identified by Landlord to Tenant) as
an additional insured and shall contain a provision requiring
thirty (30) days prior written notice to Landlord and any
other additional insured of any material change to such policy, or
if the policy is cancelled or not renewed.
(c) Landlord
shall maintain, at a minimum, the following:
(i)
commercial property insurance, with special causes of loss coverage
for the Building in an amount equal to 100% of the full replacement
value of the Building and providing loss of rents coverage equal to
eighteen (18) months rent for the gross rent roll of the
Project. Landlord shall have the right to include the Building
within a blanket policy of insurance including the Building and
other locations.
(ii)
commercial general liability insurance insuring Landlord against
any and all liability for injury to or death of a person or persons
and for property damage occasioned by or arising out of the acts or
omissions of Landlord, its employees, agents representatives or
contractors, such policy to have a $1,000,000 per occurrence,
$2,000,000 aggregate, and $5,000,000 umbrella for any bodily injury
or property damage occurring as a result of or in conjunction with
the above.
14. SUBROGATION AND WAIVER.
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Anything
in this Lease to the contrary notwithstanding, to the full extent
permitted by law, Landlord and Tenant each hereby waives any and
all rights of recovery, claim, action or cause of action, against
the other, its agents, servants, partners, shareholders, officers,
or employees, for any loss or damage that may occur to the Premises
or the Property, or any improvements thereto, or any personal
property of such party therein, by reason of fire, the elements, or
any other cause to the extent such loss or damage is covered by the
terms of a valid and collectible commercial property insurance
policy with special causes of loss coverage in effect at the time
of such loss (or would have been covered under any such insurance
required by this Lease to be maintained by a pa
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