COMSCORE NETWORKS. INC. as
“Tenant”
COMSTOCK PARTNERS. L.C. as
“Landlord”
SECTION 1.
Definitions
SECTION 2. Completion of Leased Premises; Term
SECTION 3. Rent and Additional Charges
SECTION 4. Common Areas
SECTION 5. Services and Utilities
SECTION 6. Use of Leased Premises
SECTION 7. Care of Leased Premises
SECTION 8. Rules and Regulations
SECTION 9. Tenant’s Alterations and Installations
SECTION 10. Name of Building; Tenant’s Signs
SECTION 11. Liability Insurance
SECTION 12. Fire Insurance
SECTION 13. Damage by Fire or Other Casualty
SECTION 14. Condemnation
SECTION 15. Assignment and Subletting
SECTION 16. Default Provisions
SECTION 17. Bankruptcy Termination Provisions
SECTION 18. Landlord May Perform Tenant’s Obligations
SECTION 19. Security Deposit
SECTION 20. Subordination
SECTION 21. Attornment
SECTION 22. Quiet Enjoyment
SECTION 23. Landlords Right of Access to Leased Premises
SECTION 24. Limitation on Landlord’s Liability
SECTION 25. Estoppel Certificates
SECTION 26. Surrender of Leased Premises
SECTION 27. Holding Over
SECTION 28. Parking
SECTION 29. Leasing Commission
SECTION 30. General Provisions
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A.
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Floor Plan of
Leased Premises
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B.
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Base Building
Definition
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C.
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Owner Approved
Architects
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D-1.
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Space Design of
Leased Premises
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D-2.
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Tenant
Improvement Plans
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E.
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Building
Interior Finish Specifications
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F.
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Rules and
Regulations
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G.
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Security
Deposit Promissory Note
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H.
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List of
Landlord Affiliates
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I.
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Acknowledgement
of Sublease form
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J.
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Financial
Statement Certification Form
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THIS LEASE
AGREEMENT (this “Lease”) is made and entered into this
23rd day of June, 2003 , by and between (i) COMSTOCK
PARTNERS, L.C., a Virginia limited liability company (hereinafter
referred to as “Landlord”), and (ii) COMSCORE
NETWORKS, INC., a Delaware corporation_(hereinafter referred to as
“Tenant”), and referred to by singular pronouns of the
neuter gender, regardless of the number and gender of the parties
involved.
WITNESSETH: Upon
and subject to the terms of this Lease, Landlord hereby leases to
Tenant, and Tenant hereby leases from Landlord, the Leased Premises
(as defined below), for the Term (as defined below), except that
Landlord reserves and Tenant shall have no right in and to
(a) the use of the exterior faces of all perimeter walls and
windows of the Building, (b) the use of the roof of the
Building, or (c) the use of the air space above the Building,
except as specifically set forth herein.
(a)
General Interpretive Principles . For purposes of this
Lease, except as otherwise expressly provided or unless the context
otherwise requires, (i) the terms defined in this Section have
the meanings assigned to them in this Section and include the
plural as well as the singular, and the use of any gender shall be
deemed to include all other genders; (ii) accounting terms not
otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles;
(iii) references herein to “Sections,”
“subsections,” “paragraphs,” and other
subdivisions without reference to a document are to designated
Sections, subsections, paragraphs, and other subdivisions of this
Lease; (iv) a reference to a subsection without further
reference to a Section is a reference to such subsection as
contained in the same Section in which the reference appears, and
this rule shall also apply to paragraphs and other subdivisions;
(v) the words “herein,” “hereof,”
“hereunder,” and other words” of similar import
refer to this Lease as a whole and not to any particular
provisions; (vi) the word “including” means
“including, but not limited to”; (vii) daily rent
is calculated on a thirty (30) day month applied to the number
of days being charged, (viii) all amounts due Landlord
hereunder are in Unites States dollars; and (ix) the words
“months” and “years” mean calendar months
and calendar years..
(b) S
pecial Lease Definitions . As used in this Lease the
following words and phrases shall have the meanings
indicated:
Advance Rent : Forty Eight Thousand Three Hundred and Thirty
Two and 53/00 ($48,332.53) representing the Basic Rent for the
first full month of the Term after the Lease Commencement Date,
which Tenant shall pay to Landlord, on or before, July 1,
2003 by wire transfer, pursuant to the terms of this
Lease.
Basic Rent : For each Lease Year, an amount equal to the
product obtained by multiplying the Rentable Area of the Leased
Premises leased by Landlord to Tenant during such Lease Year by the
Rent per Square Foot for such Lease Year. The Basic Rent shall
increase each year by 3% over the immediately prior year’s
Basic Rent. Therefore the Basic Rent for the second year is
determined by multiplying the Basic Rent for the first year by 103%
and for each subsequent year by multiplying the Basic Rent for the
immediately prior year’s Basic Rent by 103%.
Accordingly,
the Basic Rent during the Initial Term hereunder will be as
follows:
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Annual Rent
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Monthly Rent
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Rent/S.F.
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$
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579,990.40
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$
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48,332.53
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$
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22.00
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597,390.11
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49,782.51
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$
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22.66
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615,311.82
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51,275.98
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$
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23.34
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633,771.17
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52,814.26
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$
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24.04
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652,784.30
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54,398.69
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$
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24.76
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Basic Rent Escalation : See definition of Basic Rent
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Building : The existing office building located at 11465
Sunset Hills Road, Reston, Virginia, including the parking lots and
parking garage and Landlord’s right, title and interest in
and to the underlying land.
Building Rentable Area : The total net rentable area in the
Building, which (although greater than the actual usable area) is
agreed to be 89,221 square feet, including core factor, except
as
1
otherwise
provided in Section 3(b).
Brokers : There are no brokers involved in this transaction
and the parties hereby indemnify each other in connection
therewith.
Landlord’s Contractor : Any and all professionals or
trades people engaged by or on behalf of Landlord, or by Tenant at
Landlords direction and/or expense, in connection with alterations
and construction in the Leased Premises, either before or during
the Term of this Lease, including but not limited to general
contractors, sub-contractors, architects, engineers, and any other
professionals or trades people typically associated with
construction and/or alterations.
Landlord’s Notice Address : COMSTOCK PARTNERS, L.C.
11465 Sunset Hills Road, Suite 510, Reston, Virginia 20190,
Attention: Mr. Christopher Clemente, Manager, with copy to
Mr. Marc Bettius, Cohen, Gettings, & Caulkins, 2200 Wilson
Blvd., Arlington, Virginia 22201 and a copy to the property
management company, as selected by Landlord. Currently the property
management company is; The Rockcrest Group, 14800 Conference Center
Drive, Suite 201, Chantilly Virginia 22151-3180. Landlord may
change the property management company at its option and will
notify Tenant in such event.
Lease Commencement Date : July 1, 2003.
Leased Premises : The area located on the first, and second
floors of the Building which is outlined in black on the floor
plan, attached hereto as Exhibit A and incorporated herein,
and containing 26,363.2 square feet of Rentable Area:
Operating Expense Base : For each calendar year ending
during the Term, the sum of the 2001 actual operating expenses for
each square foot of Building Rentable Area. Notwithstanding the
fact that the Lease Commencement Date hereunder is July 1,
2003, the parties have agreed that the Operating Expense Base will
be based on 2001 expenses.
Operating Expense Increases : For calendar year 2002 and
each calendar year thereafter during the Term, an amount equal to
the excess of Landlord’s Operating Expenses for such calendar
year over the Operating Expense Base.
Original Lease : One certain lease dated September 20,
2000 by and between Comstock Partners, LC (as Landlord) and
Comscore Networks, Inc. (as Tenant) covering a portion of the
Building containing 57,792.10 square feet (including the Leased
Premises as defined herein), as amended July 3, 2002 (the
“Original Lease”), terminated by Landlord pursuant to
the terms thereof.
Pre-ordered Rent Payments : As defined in section 3(a)
hereof.
Rent Payment Account : As defined in section 3(a)
hereof.
Rent Payment Account Minimum Balance : As defined in section
3(a) hereof.
Rent Per Square Foot : The Basic Rent shall be Twenty Two
and no/00 Dollars ($22.00) per square foot of the Leased Premises
during the First Lease Year. For each Lease Year thereafter during
the Term, the Rent per Square Foot of the Leased Premises shall be
increased by three percent (3%) as provided for in this
Lease.
Rentable Area : The total rentable area of the Leased
Premises, which (although greater than the actual usable area) is
agreed to be 26,363.2 square feet.
Security Deposit : Upon execution of this Lease, in addition
to paying Landlord the Advance Rent set forth herein, Tenant shall
deliver and pay to Landlord a Security Deposit as set forth in
Paragraph 19 hereof.
Tenant’s Financial Reports : Throughout the Lease term
Tenant agrees to provide Landlord with regular financial reports
regarding Tenant (“Tenant’s Financial Reports”)
and any affiliates of Tenant within forty five (45) days after
the close of each calendar month (and the end of each fiscal year),
as follows; (i) a Balance Sheet, (ii) a Statement of
Profit and Loss for such period, and (iii) a Cash Flow
Statement prepared and certified (the certification form to be in
form and content attached hereto as Exhibit J, incorporated
herein by reference, and signed by an officer of the Tenant) by
Tenant or by an independent certified public accounting firm using
generally accepted
2
accounting
practices. In the event Tenant fails to deliver the Tenant’s
Financial Reports in a timely fashion Landlord shall provide
written notice of such Default and Tenant shall have fifteen
(15) days to cure such Default prior to Landlord exercising
its remedies as a result of such Default
Tenant’s Board Reports : Throughout the Lease term
Tenant agrees to provide Landlord with regular written reports
containing such information and details as are provided to the
investors holding a seat on the Board of Directors of Tenant
(“Tenants Board Reports”) within five (5) business
days of each meeting of the Board of Directors of Tenant. In the
event Tenant fails to deliver the Tenant’s Board Reports in a
timely fashion Landlord shall provide written notice of such
Default and Tenant shall have fifteen (15) days to core such
Default prior to Landlord exercising its remedies as a result of
such Default.
Tenant’s Notice Address : The Tenant’s notice
address is: COMSCORE NETWORKS, INC. 11465 Sunset Hills Road,
Suite 200 Reston, Virginia 20190, Attention: Corporate
Counsel.
Tenant’s Proportionate Share : The percentage, which
the Rentable Area of the Leased Premises is of the Building
Rentable Area. The Tenant’s Proportionate Share is agreed to
be thirty-one and 10/00 percent (31.10%).
Term : The period commencing on the Lease Commencement Date
and ending on the last day of the calendar month which completes
FIVE (5) YEARS after the Lease Commencement Date, but in any
event the Term shall end on any date when this Lease is sooner
terminated by Landlord as provided for herein.
(c)
General Definitions . As used in this Lease the following
words and phrases shall have the meanings indicated:
Additional Charges : All amounts payable by Tenant to
Landlord under this Lease other than Basic Rent (including but not
limited to Tenant’s Additional Costs). All Additional Charges
shall, unless otherwise provided herein, be due and payable within
thirty (30) days of invoice and shall be deemed to be
additional rent and all remedies applicable to the non-payment of
Basic Rent shall be applicable thereto. Additional Charges shall
include, but not be limited to, electrical override
usage.
Additional Compensation : Within fifteen (15) days of
the execution of this Lease, as additional compensation and as an
inducement to Landlord to enter into this Lease with Tenant, the
Tenant agrees to provide Landlord, or its assigns, with warrants
for the purchase of 100,000 shares of the common stock of Tenant at
a price not to exceed $0.60 per share. The form and content of the
warrant agreement shall be identical to the form and content of the
previous warrant agreements provided by Tenant to Landlord, except
for the price. Additionally, Tenant hereby reaffirms the validity
of all previous Warrants granted to Landlord by Tenant.
Alterations : As defined in Section 9(a).
Business Days : All days except Saturdays, Sundays, and the
following legal holidays: New Year’s Day, Martin Luther
King’s Birthday, President’s Day, Memorial Day, Fourth
of July, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day,
Christmas Day, and those holidays designated by an Executive Order
of the President of the United States or by Act of
Congress.
Default Interest Rate : A rate per annum equal to a) the
greater of (i) the sum of the prime rate of interest from time
to time established and publicly announced by The Chase Manhattan
Bank. N.A., New York, in its sole discretion, as its then
applicable prime rate of interest to be used in determining actual
interest rates to be charged to certain of its borrowers, said
prime rate to change from time to time as and when the change is
announced as being effective, plus four percent (4%), or fifteen
percent (15%).
Event of Default : Any of the events set forth in Section
16(a) as an event of default.
Landlord : The Landlord named herein, its successors or
assigns and any subsequent owner, lessees, or transferees, from
time to time, of the Landlord’s interest in the Building and
their respective successors and assigns.
Lease : This Lease Agreement, as amended from time to time,
and all Exhibits
3
incorporated
herein and/or attached hereto.
Lease Year : The period of twelve (12) months
commencing on the Lease Commencement Date and ending on the last
day of the month which completes twelve (12) full calendar
months after the Lease Commencement Date, and each 12-month period
thereafter commencing on the first day after the end of the
immediately preceding Lease Year, except that the last Lease Year
shall end on the last day of the Term.
Legal Requirements : All laws, statutes, ordinances, orders,
rules, regulations, and requirements of all federal, state, and
municipal governments, and the appropriate agencies, officers,
departments, boards, and commissions thereof, and the board of fire
underwriters and/or the fire insurance rating organization or
similar organization performing the same or similar functions,
whether now or hereafter in force, applicable to the Building or
any part thereof and/or the Leased Premises, as to the manner of
use or occupancy or the maintenance, repair, or condition of the
Leased Premises and/or the Building, and the usual and customary
requirements of the carriers of all fire insurance policies
maintained by Landlord on the Building.
Mortgage : Any mortgage, deed of trust, or other security
instrument of record creating an interest in or affecting title to
the Building or the land on which it is constructed, or both, or
any part thereof, including a leasehold mortgage or sub-leasehold
mortgage, and any and all renewals, modifications, consolidations,
or extensions of any such instrument; Mortgagee shall mean the
holder or beneficiary of any Mortgage. Tenant shall comply with all
reasonable notices from Landlord’s Mortgagee as to the manner
of use or occupancy or the maintenance, repair or condition of the
Leased Premises and/or the Building.
Non-disturbance : Landlord will provide Tenant a suitable
non-disturbance agreement from any current or future mortgagees. In
connection therewith Tenant shall execute documents reasonably
requested by such lender.
Operating Expenses : Tenant shall pay Tenant’s
Proportionate Share of annual increases in Real Estate Taxes and
Operating Expenses above the Calendar 2001 Base Year. An itemized
breakdown of 2001 estimated Operating Expenses will be delivered to
Tenant upon completion of Landlord’s year-end consolidation.
Detailed breakdowns of all charges to Tenant will be provided. The
aggregate of all costs and expenses reasonably and customarily paid
or incurred on a cash basis by Landlord in connection with the
ownership, operation, servicing, and maintenance of the Leased
Premises, the Building, the land on which the Building is
constructed and any ancillary improvements constructed on the land,
the surface and garage parking areas, and ingress/egress easements
and private roadways servicing the Building, including, but not
limited to, employees’ wages, salaries, welfare and pension
benefits and other customary and usual employee fringe benefits;
payroll taxes; Real Estate Taxes ; property owner’s
association dues, fees and contributions of any kind, electricity
and other utility charges; telephone service; painting of public or
other common areas of the Building; exterminating service; security
services; trash removal; sewer and water charges; premiums for fire
and casualty, liability, rent loss, workmen’s compensations,
sprinkler, water damage and other insurance; repairs, maintenance,
additions and improvements made by Landlord to the Building
(properly depreciating any capital improvements); building,
janitorial and cleaning services and supplies; uniforms and dry
cleaning; snow removal; landscaping maintenance; window cleaning;
service contracts for the maintenance of elevators, boilers, HVAC,
and other mechanical, plumbing, and electrical equipment; legal
fees (other than legal fees relating to the enforcement of
Landlord’s rights under leases with tenants for space in the
Building); accounting fees; advertising (except for advertising
expenses and leasing fees relating to leasing space in the
building); management fees at reasonable and customarily incurred
rates and all other expenses now or hereafter reasonably and
customarily incurred in connection with the ownership, operation
and maintenance of comparable office buildings in Northern
Virginia. Refunds of Real Estate Taxes (reduced by Landlord’s
actual expenses in obtaining such refunds), receipts from tenants
of the Building for after-hours heating or air-conditioning and for
excess electrical usage in an amount equal to the actual costs of
providing such service, recoveries of expenses and other separate
charges made to tenants of the Building for special services (but
excluding any mark-up or profit realized by Landlord in connection
with providing such special services) and, to the extent that
Operating Expenses include the cost of any repair or reconstruction
work, the amount of any insurance recoveries, shall be credited
against Operating Expenses in computing the amount thereof.
Operating Expenses shall also be reduced as provided in
Section 3(b).
Notwithstanding
anything in this Lease to the contrary, for purposes of the
calculations to be made pursuant to this paragraph, Operating
Expenses shall exclude (i) capital improvements except as
provided under this definition of Operating Expenses,
(ii) repairs and replacements, which under
4
sound
accounting principles and practices should be classified as capital
expenditures as determined by Landlord’s independent
accounting firm, depreciated as provided for above, (iii) painting,
redecorating, or other work which Landlord performs for any other
tenant or prospective tenant of the building other than painting,
redecorating, or other work which is standard for the building and
performed for tenants subsequent to their initial occupancy,
(iv) repairs or other work (including rebuilding) occasioned
by fire, windstorms, or other casualty, to the extent covered by
insurance, or condemnation, (v) any cost (such as repairs,
improvements, electricity, special cleaning or overtime services)
to the extent such costs are included in tenants’ rent or are
expressly reimbursable to Landlord by tenants (as opposed to
partial reimbursement in the nature of rent escalation provisions)
or are separately charged to and payable by tenants or to the
extent Landlord is entitled to compensation by insurance proceeds,
(vi) leasing commissions and expenses of procuring tenants,
including lease concessions and lease take-over obligations, (vii)
depreciation, (viii) interest on and amortization of debt,
(ix) taxes of any nature, excluding real estate taxes, but
including interest and penalties for late payment of taxes, except
as provided herein, (x) rent payable under any lease to which
this lease is subject, (xi) wages or salaries of employees
other than on-site employees for the building or employees
specifically employed, in whole or in part, in connection with the
ownership and maintenance of the Building, (xii) costs and
expenses of enforcing leases against tenants, including legal fees,
(xiii) managing agents’ commissions in excess of rates
then customarily charged by managing agents for comparable office
buildings and, (xiv) expenses resulting from any violation by
Landlord of the terms of any lease of space in the building or of
any ground or underlying lease or mortgage to which this lease is
subordinate.
In the event
that pursuant to the terms of this Lease, Tenant is obligated to
pay its proportionate share of Operating Expenses, Tenant shall
have the right to audit Landlord’s books and records as
follows:
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A.
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Tenant shall be entitled at any
reasonable time during business hours, after giving at least five
(5) days prior written notice, to inspect Landlord’s
books and records relating to Tenant’s proportionate share of
Operating Expenses at the site of the location of such books and
Records and to obtain an audit thereof by an independent auditor
selected by Tenant (and reasonably acceptable to Landlord) to
determine the accuracy of such amounts billed to Tenant by Landlord
for the last two (2) calendar years immediately preceding the
calendar year in which such notice is given.
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B.
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If
such audit discloses a liability for Tenant’s proportionate
share of Operating Expenses which is less then the amount billed
to, and paid by, Tenant, then Landlord shall within thirty
(30) days refund to Tenant all amounts paid by Tenant in
excess of the amount Tenant is actually required to pay as provided
for herein (“Refund Amount”).
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C.
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All
costs of such audit shall be paid by Tenant However, in the event
the Refund Amount is greater then five (5) percent (5%) of the
amount for which Tenant is actually liable (as disclosed by the
audit), all reasonable actual costs of such audit shall be paid by
Landlord.
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Option to Renew/Expansion : Tenant shall not have an option
to renew this Lease and shall have no right to expansion space in
the Building.
Option to Terminate : Landlord shall have the sole and
exclusive option of terminating this Lease upon five
(5) months written notice to Tenant, such termination being
effective at any time after the third anniversary of this
Lease.
Person : A natural person, a partnership, a limited
liability company, a corporation, and any other form of business or
legal association or entity.
Real Estate Taxes : All taxes, assessments, vault rentals,
water and sewer rents, if any, and other charges, if any, general,
special, or otherwise, including all assessments for schools,
public betterment, and general or local improvements, which are
mandatory or legally compelled, levied or assessed upon or with
respect to the ownership of and/or all other taxable interests in
the Building and the land on which it is built imposed by any
public or quasi-public authority (including The Reston Association
and any related or similar organization having jurisdiction over
the Building and the ability to assess fees to the owner of the
Building whether now existing or created after the date hereof)
having jurisdiction and personal property taxes levied or assessed
on Landlord’s personal property used in connection with the
operation, maintenance, and repair of the Building. Except for
taxes, fees, charges, and impositions described in the next
succeeding sentence, Real Estate Taxes shall not include any
inheritance, estate, succession, transfer, gift, franchise,
corporation, income, or profit tax or capital levy. If at any time
during the Term the methods of taxation shall be altered
so
5
that in
addition to or in lieu of or as a substitute for the whole or any
part of any Real Estate Taxes levied, assessed or imposed there
shall be levied, assessed or imposed (i) a tax, license fee,
excise or other charge on the rents received by Landlord, or
(ii) any other type of tax or other imposition in lieu of, or
as a substitute for, or in addition to, the whole or any portion of
any Real Estate Taxes, then the same shall be included as Real
Estate Taxes. A tax bill or true copy thereof, together with any
explanatory or detailed statement of the area or property covered
thereby, submitted by Landlord to Tenant shall be conclusive
evidence of the amount of taxes assessed or levied, as well as of
the items taxed. If any real property tax or assessment levied
against the land, buildings or improvements covered thereby or the
rents reserved therefrom, shall be evidenced by improvement or
other bonds, or in other form, which may be paid in annual
installments, only the amount paid or payable in any Lease Year
shall be included as Real Estate Taxes for that Lease
Year.
Substantially Completed : The completion of the construction
or installation, or both, of the Landlord’s improvements in
question, except for any special order or long-lead items, to the
extent that (i) only minor items remain unfinished, and
(ii) such minor items do not prevent Tenant from occupying the
Leased Premises for the use specified herein. It is understood
and agreed by the parties that all construction and other
improvements that are the responsibility of landlord are complete
and satisfactory.
Taking : A taking of property or any interest therein or
right appurtenant or accruing thereto, by condemnation or eminent
domain or by action, proceedings, or agreement in lieu thereof,
pursuant to governmental authority.
Tenant : The tenant named herein and any permitted assignee
under Section 15.
Tenant’s Additional Costs : In additional to any other
provision hereof that provides for the Tenant to be responsible for
certain costs incurred by Landlord, it is agreed and understood
that Tenant shall be responsible for all costs of any kind
(“Tenant’s Additional Costs”) incurred by
Landlord in connection with (i) any repairs deemed necessary
by Landlord (not to include any reasonably determined to be repairs
of normal wear and tear) in any of the leased premises under the
Original Lease based on an inspection made by Landlord and Tenant
within ten (10) days of the Lease Commencement resulting from
Tenant’s occupancy or sub-letting of the leased premises
under the Original Lease, (ii), any repairs to the Building
reasonably deemed necessary by Landlord, including modifications or
repairs required as a direct or indirect result of Tenant
relocating its equipment and personnel within the Building,
(iii) any repairs reasonably deemed necessary by Landlord or
as a direct or indirect result of Tenant’s failure to abide
by the Rules and Regulations and other applicable lease provisions,
regarding the use, upkeep and care of the Building or the leased
premises under the Original Lease or to strictly enforce same upon
its Subtenants under the Original Lease, (iv) any electrical
override usage charges or electrical submeter charges and after
hours HVAC charges for services provided Tenant hereunder and under
the Original Lease, (v) any charges due for services provided
to Tenant by Landlord hereunder or under the Original Lease,
whether previously invoiced or not, (unless previously paid by
Tenant), such as, but not limited to, key replacement charges and
operating expense increase charges, as applicable hereunder or
under the Original Lease, (vi) legal costs incurred by
Landlord in connection with enforcement of this Lease, and
(vii) legal costs incurred by Landlord in connection with
enforcement of the Original Lease. The Tenant’s Additional
Charges shall be payable within fifteen (15) days of invoice
by Landlord regardless of when the cost is incurred by Landlord,
including such costs incurred by Landlord prior to the Lease
Commencement Date as defined herein. The total of all of
Tenant’s Additional Costs set forth in (iv), (v), and
(vii) of this paragraph that accrued or otherwise arose from
circumstances prior to the date of execution hereof shall not
exceed $75,000.00. There shall not be a limit regarding Additional
Costs that arise from (i), (ii), (iii), or (vi) of this
paragraph.
Tenant’s Special Installations : As defined in
Section 9(d).
Unavoidable Delays : Delays caused by strikes, acts of God,
lockouts, labor difficulties, riots, explosions, sabotage,
accidents, inability to obtain labor or materials, governmental
restrictions or delays in obtaining required building permits or
occupancy permits, enemy action, civil commotion, fire, unavoidable
casualty, or similar causes not caused by and beyond the reasonable
control of the Landlord.
2.
COMPLETION OF LEASED PREMISES, SCHEDULE AND
INSPECTIONS
Notwithstanding anything to the contrary
contained in this Lease, the Original Lease, or elsewhere provided,
it is understood and agreed that the Leased Premises are currently
occupied by Tenant and are hereby unconditionally accepted by
Tenant, in all respects, in their
6
“AS
IS, WHERE IS” condition, and further that Landlord has fully
satisfied all of its obligations regarding the completion of
construction of the Leased premises under this Lease or the
Original Lease, completion of any repairs that are the
responsibility of the Landlord under this Lease or the Original
Lease, completion of the Building as required by this Lease or the
Original Lease, providing the Tenant with the Tenant Improvement
Allowance as required by the Original Lease, providing Tenant the
services as required under the Original Lease, and that Landlord
has fully complied with all requirements under this Lease (except
those requirements which by their nature are not required to be
complied with at this time) and the Original Lease.
(a)
Base Building Definition : To the best knowledge and belief
of Landlord the building shell was completed in accordance with the
project specifications set forth in the Base Building Definition
attached hereto as, Exhibit B and incorporated herein, (the
“Base Building Definition”).
(b)
Tenant Improvement Allowance : It is agreed and understood
that pursuant to the Original Lease Landlord previously provided
Tenant a Tenant Improvement Allowance in connection with the
construction of Tenant Improvements within the Building, including
within the Leased Premises, in the amount of One Million Five
Hundred and Fifteen Thousand Seven Hundred and Forty and 72/00
Dollars (the “Tenant Improvement Allowance”), receipt
and sufficiency of which is hereby acknowledged by Tenant, used by
Tenant for space planning, preparation of the Tenant Improvement
Plans (as described below), architectural and engineering services
related to the Tenant Improvement Plans, permitting required in
connection with the Tenant Improvement Plans, leasehold
improvements (including modifications to the existing building
specifications required as a result of the Tenant Improvement
Plans), Tenant’s building signage, and other costs incurred
by Landlord in connection with the Tenant Improvement Plans or
construction of the Tenant’s Improvements. Accordingly,
Landlord shall not provide any additional allowance for
improvements or alterations to the Leased Premises in connection
with this Lease. In the event of Tenant’s full and faithful
compliance with each and every term and condition of this Lease the
Landlord shall not be entitled to any return of the Tenant
Improvement Allowance, however in the event of Tenant’s
abandonment of the Leased Premises or Tenant’s Default
hereunder resulting in Tenant being evicted from the Leased
Premises (as evidenced by court order or Landlord’s Notice of
Default and Termination as provided for herein) within five
(5) years of the Lease Commencement Date Landlord shall, among
other remedies provided for in this Lease, be entitled to the full
and immediate repayment of the Tenant Improvement Allowance which
Tenant shall repay to Landlord upon demand therefore. However, it
is agreed and understood that the amount of the Tenant Improvement
Allowance that Tenant shall be required to repay to Landlord, as
required by this provision, shall be reduced by one hundred and
fifty thousand dollars ($150,000.00) on each anniversary of the
Lease Commencement Date hereunder.
(c)
Tenant’s Improvements : In accordance with the
Original Lease, Landlord and Tenant jointly developed a mutually
acceptable space plan and finishing schedule for the Leased
Premises that met Tenant’s requirements (the “Space
Design”). Upon completion of the Space Design, an
architectural firm was selected from those listed on
Exhibit C, attached hereto and incorporated herein, to prepare
the complete construction documents (the “Tenant Improvement
Plans”). The Tenant Improvement Plans fully describe all
leasehold improvements in connection with the Leased Premises (the
“Tenant’s Improvements”) and include all required
construction drawings, construction documents and specifications,
finishing schedules, structural designs and plans, mechanical
designs and plans, electrical designs and plans, plumbing designs
and plans, and other documents or items connection with obtaining
building permits for the Tenant Improvement Plans and occupancy
certificates or use permits for the Leased Premises. The Space
Design and the Tenant Improvement Plans created in connection with
the Original Lease are attached hereto as Exhibit D-1 and D-2
respectively, each hereby being incorporated herein.
Landlord’s specifications for interior building finishes,
(the Building Interior Finish Specifications), are attached hereto
as Exhibit E, and incorporated herein.
(d)
Tenant’s Costs : All costs of any modifications of any
kind to the Leased Premises that the Tenant desires shall be the
sole responsibility of Tenant and shall be payable as provided
below. In the event the Tenant desires to make any alterations
(“Tenant Alterations”) to the Leased Premises all
subject work shall be strictly in accordance with this paragraph
2(d) and Paragraph 9 below, and in such event Tenant shall
provide Landlord a written request describing, in adequate detail,
the nature of any proposed Tenant Alterations and Landlord shall
secure a bid for the proposed Tenant Alterations from
Landlord’s General Contractor and provide same to Tenant in
writing, provided that the amount payable to Landlord’s
General Contractor, is commercially reasonable. In the event Tenant
desires to proceed with the proposed Tenant Alterations, Tenant
shall deposit cash
7
in the amount
of one hundred percent (100%) of the cost identified in the bid for
the proposed tenant Alterations with Landlord prior to commencement
of the Tenant Alterations (the “Tenant Alterations
Deposit”). Landlord’s General Contractor, Signet
Construction, Inc. shall be used for all Tenant Improvements, or
such other contractor as selected by Landlord.
(e)
Plan Approvals : All Tenant Alteration Plans, and any
related modifications to the Building shall be subject to
Landlord’s sole but reasonable approval. Prior to any work
commencing, Landlord shall approve all plans and specifications.
Prior to any work commencing all required permits shall be obtained
by Landlord.
(h)
Subcontractors and Suppliers : All sub-contractors and
material suppliers performing work or supplying materials to the
Building shall be selected by the Landlord’s general
contractor and shall be subject to the Landlord’s approval in
its sole but reasonable discretion. In order to protect the
integrity and efficiency of the mechanical, electrical and plumbing
systems, all mechanical, electrical and plumbing within the
Tenant’s space shall be designed by the design build team
responsible for the mechanical, electrical and plumbing systems in
the building.
(i)
Inspections : At the time Tenant surrenders the Leased
Premises or at the end of the Term, or within ten
(10) business days thereafter, Landlord and Tenant, or their
respective agents, shall make a similar inspection of the Leased
Premises to note the condition of the Leased Premises at the time
of surrender and shall prepare a punch list of any items of repair
that Tenant shall be responsible for completing, reasonable wear
and tear excepted (the “Tenant’s Punchlist”).
Landlord shall not be obligated to refund to Tenant all or any part
of the Security Deposit then being held by Landlord until all
repairs that are the responsibility of Tenant are completed to
Landlord’s reasonable satisfaction. In the event Tenant fails
to attend the inspection, as reasonably scheduled by Landlord, the
Tenant shall be bound by the Tenant Punchlist, as prepared by
Landlord.
(j)
Acceptance of Space : Tenant is currently in possession of
the Leased premises and hereby acknowledges that the condition of
the Leased Premises is acceptable in its present “as
is” condition. Accordingly no repairs are needed and Tenant
accepts the Leased Premises in its “as is” condition on
the date hereof.
3. RENT
AND ADDITIONAL CHARGES
(a)
Payment of Rent and Additional Charges . Tenant shall pay
the Basic Rent for each Lease Year in equal monthly installments in
advance on the first day of each month during the Term, commencing
on the Lease Commencement Date. The Basic Rent and all Additional
Charges shall be paid promptly when due, in lawful money of the
United States, without notice or demand and without deduction,
diminution, abatement, counterclaim, or setoff of any amount or for
any reason whatsoever, except as otherwise expressly provided in
subsection (b), to Landlord at Landlord’s Notice Address or
at such other address or to such other person as Landlord may from
time to time designate in writing. If Tenant makes any payment to
Landlord by check, such payment shall be by check of Tenant and
Landlord shall not be required to accept the check of any other
person, and any check received by Landlord shall be deemed received
subject to collection. If any check is mailed by Tenant, Tenant
shall post such check in sufficient time prior to the date when
payment is due so that such check will be received by Landlord on
or before the date when payment is due. Tenant shall assume the
risk of lateness or failure of delivery of the mails, and no
lateness or failure of the mails will excuse Tenant from its
obligation to have made the payment in question when required under
this Lease. If, during the Term, Landlord receives two or more
checks from Tenant which are returned by Tenant’s bank for
insufficient funds or are otherwise returned unpaid, Tenant agrees
that all checks thereafter shall be either bank certified,
cashiers’, or treasurers’ checks. Landlord shall be
reimbursed by Tenant an amount equal to one hundred and fifty
percent (150%) of all bank service charges resulting from any
returned checks plus a handling fee of five hundred dollars
($500.00). The rent reserved under this Lease shall be the total of
all Basic Rent and Additional Charges, increased and adjusted as
elsewhere herein provided, payable during the entire Term and,
accordingly, the methods of payment provided for herein, namely,
annual and monthly rental payments, are for convenience only and
are made on account of the total rent reserved hereunder.
Notwithstanding anything to the contrary contained herein, or
elsewhere provided, it is agreed and understood that throughout the
Lease Term Tenant agrees to establish and maintain with a
commercial bank or financial institution reasonably acceptable to
Landlord, a special account for the payment of Tenant’s Basic
Rent obligations from which the payments of Basic Rent shall be
wired
8
directly to
Landlord’s account no later then the first regular business
day of each calendar month (the “Rent Payment
Account”). It is further agreed that throughout the Lease
Term, no later then the 10 th calendar day of each month, the Landlord shall
receive written verification from the bank or financial institution
holding the Rent Payment Account that Tenant has irrevocably
pre-ordered automatic wire transfers from the Rent Payment Account
to Landlord’s account to occur on the first business day of
each of the next two (2) months for the full payment of Basic
Rent (“Pre-ordered Rent Payments”) for the subject
months and that the Rent Payment Account has sufficient balances to
provide for said payments (“Rent Payment Account Minimum
Balance”).
(b)
Payment of Operating Expense Increases . Tenant shall pay as
Additional Charges its Proportionate Share of any Operating Expense
Increases in accordance with Section 1(b) for each calendar year,
commencing with the calendar year 2002, it being understood and
agreed that Tenant shall pay such Additional Charges for 2002 in
spite of the fact that the Lease Commences July 1, 2003.
Landlord shall make a reasonable estimate of Tenant’s
Operating Expense Increase for each calendar year, and Tenant shall
pay to Landlord 1/12th of the amount so estimated on the first day
of each month in advance. If Landlord’s estimate of
Tenant’s Operating Expense Increases for any calendar year is
received by Tenant after January 1 of the calendar year, Tenant
shall pay to Landlord in a lump sum, within thirty (30) days
after receipt of the estimate, the arrearage in the monthly
estimates for each month in the calendar year before receipt of the
estimate and shall pay the remaining monthly installments on the
first day of each month in advance during the balance of the
calendar year. After the end of each calendar year, Landlord shall
submit to Tenant a statement setting forth in reasonable detail the
Operating Expenses for such calendar year and the amount (if any)
of Tenant’s Operating Expense Increases for such calendar
year. If Tenant’s Operating Expense Increases so stated are
more than the amount (if any) theretofore paid by Tenant for
Operating Increases based on Landlord’s estimate, Tenant
shall pay to Landlord the deficiency within thirty (30) days
after the submission of such statement. If Tenant’s Operating
Expense Increases so stated are less than the amount (if any)
theretofore paid by Tenant for Operating Expense Increases based on
Landlord’s estimate, Landlord shall refund to Tenant the
excess within thirty (30) days after submission of such
statement. If either the Lease Commencement Date shall not coincide
with the beginning of a calendar year or the last day of the Term
shall not coincide with the end of a calendar year, then the amount
of Operating Expense Increases payable for the calendar year in
which the Lease Commencement Date or the last day of the Term
occurs, as the case may be, shall be pro-rated on a daily basis
between Landlord and Tenant based on the number of days in such
calendar year in which this Lease is in effect. Tenant’s
obligations under this subsection to pay Operating Expense
Increases and Landlord’s obligation to reimburse Tenant for
an overpayment of Operating Expenses shall survive the expiration
of the Term. If any part of the Building is leased to tenants
(hereinafter referred to as “Special Tenants”) which,
in accordance with the terms of their leases, provide their own
cleaning and janitorial services, electrical services, or are not
required to pay Operating Expense Increases on the basis of
operating expenses for the Building which include substantially the
same components as the Operating Expenses (as defined in this
Lease), the following provisions shall apply: (i) the Building
Rentable Area shall be reduced by the rentable area of the space
leased to Special Tenants; (ii) Tenant’s Proportionate
Share shall be the percentage which the Rentable Area is of the
Building Rentable Area (determined after the reduction specified in
clause (i); and (iii) Operating Expenses shall be reduced by
the sum of the amounts payable to Landlord by Special Tenants, in
accordance with the terms of their leases, as reimbursements for
Real Estate Taxes and expenses of owning, operating, managing and
maintaining the Building and the amount of the applicable operating
expense base under such Special Tenants’ leases.
(c)
Interest . If Tenant fails to make any payment of Basic Rent
or Additional Charges on the due date thereof, interest shall, at
Landlord’s option, accrue on the unpaid portion thereof from
the due date at the Default Interest Rate, but in no event at a
rate higher than the maximum rate allowed by law, and shall be
payable on demand.
(d)
Accord and Satisfaction . No payment by Tenant, receipt or
acceptance by Landlord of any lesser amount than the amount
stipulated to be paid hereunder shall be deemed other than on
account of the earliest stipulated Basic Rent or Additional
Charges; nor shall any endorsement or statement on any check or
letter be deemed an accord and satisfaction, and Landlord may
accept any check or payment without prejudice to Landlord’s
right to recover the balance due or to pursue any other remedy
available to Landlord.
(e)
Late Payment Charge . If Tenant fails to pay any Basic Rent
or Additional Charges within five (5) days after the same
become due and payable, Tenant shall also pay to Landlord a late
payment service charge within thirty (30) days of
Landlord’s notice that a late payment service charge is due
(to cover Landlord’s administrative and overhead expenses of
processing late payments) equal to the greater of $100.00 or five
percent (5%) of such unpaid sum
9
for each and
every calendar month or part thereof after the due date that such
sum has not been paid to Landlord. Such payment shall be deemed
liquidated damages and not a penalty, but shall not excuse the
untimely payment of rent.
Throughout
the Term, Tenant and its agents, employees and business invitees
shall have the nonexclusive right, in common with others, to use
the public lobbies, parking lots, elevator, corridors, stairways,
and other common areas in the Building and the toilet rooms in
public areas of multi-tenant floors in the Building. Landlord shall
have the right at any time, without the Tenant’s consent, to
make reasonable changes to the arrangement or location of
entrances, passageways, doors, doorways, corridors, stairs, toilet
rooms, or other public portions of the Building, provided any such
change does not unreasonably obstruct Tenant’s access to the
Leased Premises.
5.
SERVICES AND UTILITIES
(a)
Services Provided : Throughout the Term, Landlord agrees
that the Building will be maintained in a manner befitting
comparable Class A rental office buildings in Northern
Virginia, and that, subject to Legal Requirements, it will furnish
to Tenant the following services:
(1) Subject
to the provisions of subsections (b) and (c), normal and usual
electricity for lighting purposes and the operation of ordinary
office equipment;
(2) Adequate
supplies for toilet rooms located in public areas of the
Building;
(3) Normal
and usual cleaning and janitorial services after business hours on
Business Days;
(4) Hot
and cold running water in the toilet rooms;
(5) Subject
to the provisions of subsection (d), heating and air-conditioning
to the Leased Premises when required for the comfortable occupancy
of the Leased Premises, at reasonable temperatures, pressures, and
degrees of humidity, and in reasonable volumes and velocities,
between the hours of 8:00 a.m. and 6:00 p.m. on Business Days and
between the hours of 9:00 a.m. and 12:00 p.m. on Saturdays unless
Saturday is a legal holiday;
(6) Automatically
operated elevator service twenty-four (24) hours a day, seven
(7) days a week throughout the Term;
(7) All
electric bulbs and fluorescent tubes in building standard light
fixtures in the public areas of the Building and building standard
fixtures within the Leased Premises;
(8) A
reasonable number of keys to the Leased Premises have already been
provided to Tenant at no cost to Tenant. All additional keys
including replacements for lost keys shall be issued only upon the
payment of a reasonable actual cost for each additional key;
and
(9) A
security access system for the public areas of the Building and
card keys or other means of entry into the Building.
(b)
Electrical Supply : Landlord shall not be liable in any way
to Tenant for any failure or defect in the supply or character of
electrical energy furnished to the Leased Premises by reason of any
requirement, act or omission of the public utility serving the
Building with electricity. Tenant’s use of electrical energy
in the Leased Premises shall not at any time exceed the capacity of
any of the electrical conductors and equipment in or otherwise
serving the Leased Premises. Tenant shall not install or operate in
the Leased Premises any electrically operated equipment, including
lighting, which uses electric current in excess of the allocable
share of the Building system capacity without Landlord’s
written consent, which consent may be conditioned upon
Tenant’s agreement to pay an additional charge to compensate
Landlord for Tenant’s excessive consumption of electricity
and to pay the cost of any additional wiring which may be required
for the operation of such equipment. Tenant shall not connect any
equipment or other electrical device to the electrical system of
the Building that would require unusual or excessive electrical
service or that would interfere with the adequate supply of
electrical service to (i) other tenants within the Building,
or (ii) the Building common facilities. Any feeders or risers
to supply Tenants electrical requirements in addition to those
originally installed, and all other equipment proper and necessary
in connection with such feeders or risers, shall be installed by
Landlord upon Tenant’s request, at the sole cost and expense
of Tenant, provided that, in Landlord’s reasonable judgment,
such additional feeders or risers are permissible under applicable
laws and insurance regulations and the installation of such feeders
or risers will not cause permanent damage or injury to the Building
or cause or create a dangerous condition or unreasonably interfere
with other tenants of the Building.
10
Electrical Use Limits : If, at any time or from time to
time, the estimated connected electrical load (including lighting
and power) used by Tenant’s electrically operated equipment
exceeds an average of eight (8) watts (6 watts for low voltage
and 2 watts for high voltage) per square foot of the Leased
Premises on a 120/208 volt panel board. Landlord may either
(i) install a separate electric meter for the Leased Premises,
at Tenant’s sole cost and expense, and Tenant shall reimburse
Landlord for the cost of electricity it consumes, as recorded by
such meter, in excess of the amount of electricity that would be
consumed by a tenant whose consumption of electricity was equal to,
but did not exceed, the specified limits, or (ii) from time to
time have a survey made by an independent electrical engineer or
electrical consulting firm to be selected and paid for by Landlord
to determine the amount of electricity consumed by Tenant in excess
of the amount of electricity that would be consumed by a tenant
whose consumption of electricity was equal to, but did not exceed,
then specified limits, and Tenant shall pay to Landlord the cost of
excess electricity it consumes as determined by such electrical
engineer or consulting firm.
(d)
After Hours HVAC : Landlord shall provide heat and
air-conditioning at times in addition to those specified in
paragraph (5) of subsection (a) at Tenant’s
expense, provided Tenant gives Landlord notice prior to
10:00 a.m. on Fridays or the day preceding a holiday (in the
case of after-hours service on Saturdays, Sundays, or holidays).
Landlord shall initially charge Tenant for after-hours service at
the rate of $45.00 per hour (or, if the Leased Premises include
more than one HVAC zone on the same floor and such after hours
service is provided for portions of the Leased Premises containing
more than one HVAC zone, at the rate of $45.00 per hour per HVAC
zone). Landlord reserves the right from time to time, in its sole
discretion, to increase the hourly charge for said after-hours
service, but in no event will the rate per hour charged to Tenant
be more than an amount per hour which represents Landlord’s
reasonable estimate of its actual cost of providing such after
hours service, including labor, cost of electricity and wear and
tear on equipment, plus an allowance of ten percent (10%) thereof
to cover general overhead as an Additional Charge hereunder. Tenant
shall be permitted to include in the Tenant Improvements a Tenant
controlled after hours HVAC system provided it adequately provides
Landlord a means of accounting for the after hours use by Tenant,
as determined by Landlord and in such event any future increases in
the charge for after hour use of that portion of the HVAC system
that is under the Tenant’s control shall not include a markup
to cover general overhead.
(e)
Landlord’s Use Rights : Landlord reserves the right to
erect, use, maintain, and repair pipes, conduits, cables, plumbing,
vents, and wires in, to and through the Leased Premises as and to
the extent that Landlord may now or hereafter deem to be necessary
or appropriate for the proper operation and maintenance of the
Building, or other tenants’ installations in the Building,
and the right at all times to transmit water, heat,
air-conditioning, and electric current through such pipes,
conduits, cables, plumbing, vents, and wires, provided that
Landlord, in the exercise of such rights, shall not unreasonably
inconvenience Tenant or unreasonably interfere with Tenant’s
use of the Leased Premises.
(f)
Maintenance Access : Landlord shall have unrestricted access
to any and all air-conditioning facilities in the Leased Premises
for the purpose of repairs, maintenance, alterations, and
improvements, but in exercising its rights under this subsection
Landlord shall use its best efforts to minimize interference with
Tenant’s business in the Leased Premises.
(g)
Tenant’s Efforts : Tenant agrees to use reasonable
efforts to keep or cause to be kept closed all window draperies or
venetian blinds in the Leased Premises as and when necessary
because of the sun’s position whenever the air-conditioning
system is in operation, and Tenant agrees at all times to cooperate
fully with Landlord and to abide by all the reasonable regulations
and requirements which Landlord may prescribe for the proper
functioning and protection of the Building air-conditioning
system.
(h)
Service Interruptions : Landlord reserves the right to stop
the service of heating, air-conditioning, ventilating, elevator,
plumbing, electricity, or other mechanical systems or facilities in
the Leased Premises or the Building, if necessary by reason of
accident or emergency, or for repairs, alterations, replacements,
additions, or improvements which, in the reasonable judgment of
Landlord, are desirable or necessary, until said repairs,
alterations, replacements, additions, or improvements shall have
been completed. The exercise of such right by Landlord shall not
constitute an actual or constructive eviction, in whole or in part,
or relieve Tenant from any of its obligations under this Lease, or
impose any liability upon Landlord or its agents by reason of
inconvenience or annoyance to Tenant, or injury to, or interruption
of, Tenant’s business, or otherwise, or entitle Tenant to any
abatement or diminution of rent. Except in cases of emergency
repairs, Landlord will give Tenant reasonable advance notice of any
contemplated stoppage of any such repairs, alterations,
replacements, additions, or improvements promptly. Landlord shall
also perform any such work in a
11
manner
designated to minimize interference with Tenant’s normal
business operations.
(i)
Service Delays : If Landlord shall fail to supply, or be
delayed in supplying, any service expressly or implied to be
supplied under this Lease, or shall be unable to make, or be
delayed in making, any repairs, alterations, additions,
improvements, or decorations, or shall be unable to supply, or be
delayed in supplying, any equipment or fixtures, and if such
failure, delay or inability shall result from Unavoidable Delays,
such failure, delay or inability shall not constitute an actual or
constructive eviction, in whole or in part, or relieve Tenant form
any of its obligations under this Lease, or impose any liability
upon Landlord or its agents by reason of inconvenience to Tenant,
or injury to, or interruption of, Tenant’s business, or
otherwise, or entitle Tenant to any abatement or diminution of rent
unless directly resulting from the gross negligence or willful
misconduct of Landlord as determined by a court of competent
jurisdiction..
(j)
Voice, Data and other Communications Services : Landlord
shall make reasonable efforts to accommodate Tenant’s need
for additional riser space between floors one and two during the
Lease Term and any extensions thereof for the installation of
voice/data and other communications devices. All voice/data and/or
other communications services shall only be provided to tenants
within the Building by reputable providers of such services, as
reasonably determined by the Landlord. Tenant shall have the right
to include in the Tenant Improvement Plans a reasonable number of
risers to be used solely for Tenant’s internal (only within
the Leased Premises) voice and data communications purposes.
Landlord shall not open the secure risers without the consent of
Tenant, not to be unreasonably withheld, conditioned or delayed. At
Tenant’s option such opening of the secure risers shall be
supervised by Tenant or its representative.
6. USE OF
LEASED PREMISES
(a)
Permitted Uses : Tenant shall use and occupy the Leased
Premises solely for general office purposes strictly in accordance
with the applicable zoning regulations and consistent with the
character and dignity of the Building, and shall not use or permit
or suffer the use of the Leased Premises for any other purpose
whatsoever without the prior written consent of the Landlord which
shall not be unreasonably conditioned, delayed or withheld. Tenant
shall not permit or suffer the Leased Premises to be occupied by
anyone other than Tenant except as provided by Section 15.
Tenant shall at all times have access to the Leased Premises
twenty-four (24) hours a day, seven (7) days a week,
subject, however, in all respects to all the terms, covenants and
conditions contained in this Lease. However, Landlord may regulate
and restrict access to the Building at times other than normal
business hours on Business Days for security purposes so long as
Tenant’s employees and agents have reasonable access to the
Leased Premises without unreasonable inconvenience. Throughout the
Term, Tenant shall not use, or permit the Leased Premises to be
used, for the business of selling food, beverages, or tobacco
products, except that Tenant may operate on the Leased Premises
vending machines for the sale of food, beverages, and tobacco
products exclusively to its employees, agents, assignees or their
respective visitors..
(b)
Use Restrictions : Throughout the Term, Tenant covenants and
agrees: (i) to pay before delinquency any and all taxes,
assessments and public charges levied, assessed or imposed upon
Tenant’s business conducted in the Leased Premises, upon the
leasehold estate created by this Lease or upon Tenant’s
fixtures, furnishings or equipment in the Leased Premises;
(ii) not to use or permit or suffer the use of any portion of
the Leased Premises for any unlawful purpose; (iii) not to use the
plumbing facilities for any purpose other than that for which they
were constructed, or dispose of any foreign substances therein;
(iv) not to place a load on any floor exceeding the floor load
per square foot which such floor was designed to carry in
accordance with the plans and specifications of the Building, and
not to install, operate or maintain in the Leased Premises any
heavy item of equipment except in such manner as to achieve a
proper distribution of weight; (v) not to strip, over-load, damage,
or deface the Leased Premises, or the hallways, stairways,
elevators parking facilities, or other public areas of the
Building, or the fixtures therein or used therewith; (vi) not
to move any furniture or equipment into or out of the Leased
Premises except at such times and in such locations as Landlord may
from time to time designate; (vii) not to install any other
equipment of any kind or nature which will or may necessitate any
changes, replacements or additions to or in the use of, the water
system, heating system, plumbing system, air-conditioning system,
or electrical system of the Leased Premises or the Building,
without first obtaining the written consent of Landlord; and
(ix) at all times to comply with all Legal
Requirements.
(c)
Legal Requirements : Tenant will not use or occupy the
Leased Premises in violation of any Legal Requirements. If any
governmental authority, after the commencement of the Term, shall
contend or declare that the Leased Premises are being used for a
purpose which is in violation of any Legal Requirements, then
Tenant shall, upon thirty (30) days’ notice from
Landlord,
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immediately
discontinue such use of the Leased Premises. If thereafter the
governmental authority asserting such violation threatens,
commences, or continues criminal or civil proceedings against
Landlord for Tenant’s failure to discontinue such use in
addition to any and all rights, privileges and remedies given to
Landlord under this Lease for default therein, Landlord shall have
the right to terminate this Lease forthwith. Tenant shall indemnify
and hold Landlord harmless from and against any and all liability
for any such violation or violations.
(d)
Fire Insurance Limitations : Tenant shall not do, permit or
suffer to be done any act, matter, thing, or failure to act in
respect of the Leased Premises and/or the Building that will
invalidate or be in conflict with fire insurance policies covering
the Building or any part thereof, and shall not do, or permit
anything to be done, in or upon the Leased Premises and/or the
Building, or bring or keep anything therein, which shall increase
the rate of fire insurance on the Building or on any property
located therein. If, by reason of the failure of Tenant to comply
with the provisions of this subsection, the fire insurance rate
shall at any time be higher than it otherwise would be, then Tenant
shall reimburse Landlord and any other tenant of the Building, on
demand, for that part of all premiums for any insurance coverage
that shall have been charged because of such violations by Tenant
and which Landlord or such other tenant, or both, shall have paid
on account of an increase in the rate or rates in its own policies
of insurance. Tenant shall not be responsible for any increase in
fire insurance rates generally applicable to office space in
Fairfax County, Virginia, and not resulting from the particular
manner in which Tenant uses the Leased Premises.
(e)
Restricted Materials : Tenant shall not bring or permit to
be brought or kept in or on the Leased Premises any flammable,
combustible, or explosive fluid, material, chemical or substance
except standard cleaning fluid, standard equipment and materials
(including magnetic tape) customarily used in conjunction with
business machines and equipment of the type used from time to time
by Tenant in reasonable quantities.
7. CARE
OF LEASED PREMISES
(a)
Tenant Care and Maintenance : Tenant shall act with care in
its use and occupancy of the Leased Premises and the Building and
the fixtures therein and, at Tenant’s sole cost and expense,
shall furnish its own electric bulbs and fluorescent tubes for all
non-building standard light fixtures in the Leased Premises and
shall make all repairs and replacements to the Leased Premises,
structural or otherwise, necessitated or caused by the acts,
omissions, or negligence of Tenant or any Person claiming through
or under Tenant or by the use or occupancy or manner of use or
occupancy of the Leased Premises by Tenant or any such Person;
however, the foregoing provisions of this subsection shall be
subject to the provisions of Section 13. Without affecting
Tenant’s obligations set forth in the preceding sentence,
Tenant, at Tenant’s sole cost and expense, shall also
(i) make all repairs and replacements, as and when necessary,
to Tenant’s Special Installations and to any Alterations made
or performed by or on behalf of Tenant or any Person claiming
through or under Tenant, and (ii) perform all maintenance and
make all repairs and replacements, as and when necessary, to any
air conditioning equipment, private elevators, escalators,
conveyors, or mechanical systems (other than the Building’s
standard equipment and systems and other then as specifically
approved in writing by Landlord) which may be installed in the
Leased Premises, or elsewhere in the Building and serving the
Leased Premises, by Landlord, Tenant, or others. However, except as
otherwise provided in this Lease, Tenant shall not have any right
to install air-conditioning equipment, elevators, escalators,
conveyors, or mechanical systems. In addition to the foregoing, all
damage or injury to the Leased Premises and to its fixtures,
appurtenances and equipment or to the Building or to its fixtures,
appurtenances and equipment caused by Tenant moving property in or
out of the Building or by installation or removal of furniture,
fixtures, or other property by Tenant shall be repaired, restored,
or replaced promptly by Tenant, at its sole cost and expense, to
the reasonable satisfaction of Landlord. All such aforesaid
repairs, restoration, and replacements shall be in quality and
class equal to the original work or installation but in no event
need exceed Building standards.
(b)
Landlord Repairs : Except as otherwise provided in
subsection (a), Landlord shall make the following repairs as and
when necessary: (i) structural repairs to the Leased Premises
and Building; (ii) repairs required in order to provide the
elevator, plumbing, electrical, heating, and air-conditioning
services to be furnished by Landlord pursuant to this Lease;
(iii) repairs to exterior portions of the Building, including
the windows, balconies, parking areas and roof thereof; and
(iv) other repairs to the Building necessary for
Tenant’s permitted use and enjoyment of the Leased Premises.
Landlord’s obligations under the preceding sentence shall not
accrue until after notice by Tenant to Landlord of the necessity
for any specific repair.
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Tenant
shall comply with, and shall cause its agents, employees and
invitees to, comply with and observe all reasonable rules and
regulations concerning the use, management, operation, safety, and
good order of the Leased Premises, the Building and the Building
parking areas which may from time to time be promulgated by
Landlord, provided that such rules and regulations are not
inconsistent with the provisions of this Lease and do not
materially interfere with Tenant’s permitted use of the
Leased Premises. Initial rules and regulations, which shall be
effective until amended by Landlord (provided such amendments do
not unreasonably interfere with Tenant’s business), are
attached to this Lease as Exhibit F hereto and incorporated
herein. Tenant shall be deemed to have received notice of any
amendment to the rules and regulations when a copy of such
amendment has been delivered to Tenant at the Leased Premises or
has been mailed to Tenant in the manner prescribed for the giving
of notices. Landlord shall not be responsible to Tenant for any
violation of the rules and regulations, or the covenants or
agreements contained in any other lease, by any other tenant of the
Building, or such tenant’s agents, employees or invitees, and
Landlord may waive in writing, or otherwise, any or all of the
rules or regulations in respect of any one or more
tenants.
9.
TENANT’S ALTERATIONS AND INSTALLATIONS
Notwithstanding anything to the contrary contained in this
Lease, the Original Lease, or elsewhere provided, it is understood
and agreed that the Leased Premises are currently occupied by
Tenant and are hereby unconditionally accepted by Tenant, in all
respects, in their “AS IS, WHERE IS” condition, and
further that Landlord has fully satisfied all of its obligations
regarding the completion of construction of the Leased premises
under this Lease or the Original Lease, completion of any repairs
that are the responsibility of the Landlord under this Lease or the
Original Lease, completion of the Building as required by this
Lease or the Original Lease, providing the Tenant with the Tenant
Improvement Allowance as required by the Original Lease, providing
Tenant the services as required under the Original Lease, and that
Landlord has fully complied with all requirements under this Lease
(except those requirements which by their nature are not required
to be complied with at this time) and the Original
Lease.
(a)
Alterations : Tenant shall not make or perform, or permit
the making or performance of, any alterations, installations,
improvements, additions or other physical changes in or about the
Leased Premises (referred to collectively as “
Alterations ”) without Landlord’s prior written
consent.,. All plans, specifications and details for such
Alterations, and all contractors performing the Alterations are
subject to the prior written approval of Landlord. In the event
Landlord grants such consent and permits Tenant to contract out
such work, such Alterations shall be made and performed in
conformity with and subject to the following provisions:
(i) all Alterations shall be made and performed at
Tenant’s sole cost and expense and at such time and in such
manner as Landlord may reasonably from time to time designate;
(ii) all Alterations shall be performed by adequately insured
contractors approved by Landlord and in a good and workmanlike
manner in accordance with all applicable Legal Requirements, and
Tenant shall indemnify and hold harmless Landlord from and against
any and all costs, expenses, claims, liens and damages to person or
property resulting from the making of any such alterations,
decorations, additions or improvements in or to the Leased Premises
or the Building; (iii) no Alteration shall affect any part of
the Building other than the Leased Premises or adversely affect any
service required to be furnished by Landlord to Tenant or to any
other tenant or occupant of the Building; (iv) all business
machines and mechanical equipment shall be placed and maintained by
Tenant in settings sufficient in Landlord’s reasonable
judgment to absorb and prevent vibration, noise and annoyance to
other tenants or occupants of the Building; (v) Tenant shall
submit to Landlord reasonably detailed written plans and
specifications for each proposed alteration and shall not commence
any such Alteration without first obtaining Landlord’s
written approval of such plans and specifications; (vi) all
Alterations in or to the electrical facilities in or serving the
Leased Premises shall be subject to the provisions of
Section 5 relating to exceeding electrical capacity;
(vii) notwithstanding Landlord’s approval of plans and
specifications for any Alteration, all Alterations shall be made
and performed in full compliance with all Legal Requirements and in
accordance with the Rules and Regulations; and (viii) all
materials and equipment to be incorporated in the Leased Premises
as a result of all Alterations shall be of good quality. If
building or other permits from governmental authorities are
required for any Alterations, Tenant shall obtain such permits and
deliver copies thereof t
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