LEASE AGREEMENT
BY
AND BETWEEN
CITYGATE CENTRE I LLC
a Delaware limited liability company
(Landlord)
AND
CALAMOS HOLDINGS LLC,
a
Delaware limited liability company
(Tenant)
2135 CityGate Lane
Naperville, Illinois
Dated: November 16, 2007
TABLE OF CONTENTS
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ARTICLE 1 - BASIC
LEASE INFORMATION AND CERTAIN DEFINITIONS
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ARTICLE 2 -
PREMISES AND QUIET ENJOYMENT
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ARTICLE 3 - TERM;
COMMENCEMENT DATE; ACCEPTANCE OF PREMISES
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ARTICLE 4 -
RENT
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ARTICLE 5 -
OPERATING COSTS
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ARTICLE 6 -
INTENTIONALLY DELETED
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ARTICLE 7 -
SERVICES OF LANDLORD
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ARTICLE 8 -
ASSIGNMENT AND SUBLETTING
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ARTICLE 9 -
REPAIRS
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ARTICLE 10 -
ALTERATIONS
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ARTICLE 11 -
LIENS
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ARTICLE 12 - USE
AND COMPLIANCE WITH LAWS
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ARTICLE 13 -
DEFAULT AND REMEDIES
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ARTICLE 14 -
INSURANCE
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ARTICLE 15 -
DAMAGE BY FIRE OR OTHER CAUSE
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ARTICLE 16 -
CONDEMNATION
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ARTICLE 17 -
INDEMNIFICATION
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ARTICLE 18 -
SUBORDINATION AND ESTOPPEL CERTIFICATES
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ARTICLE 19 -
SURRENDER OF THE PREMISES
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ARTICLE 20 -
LANDLORD’S RIGHT TO INSPECT
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ARTICLE 21 -
SECURITY DEPOSIT
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ARTICLE 22 -
BROKERAGE
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ARTICLE 23 -
OBSERVANCE OF RULES AND REGULATIONS
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ARTICLE 24 -
NOTICES
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ARTICLE 25 -
MISCELLANEOUS
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ARTICLE 26 -
SUBSTITUTION SPACE
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ARTICLE 27 - OTHER
DEFINITIONS
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ARTICLE 28 -
WAIVER OF TRIAL BY JURY
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ARTICLE 29 - RIGHT
OF FIRST OFFER
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ARTICLE 30 -
PARKING
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ARTICLE 31 -
SIGNANGE
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ARTICLE 32 -
RESERVATION OF RIGHTS
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ARTICLE 33 -
EXCLUSIVITY
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ARTICLE 34 - LEASE
MODIFICATIONS
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i
EXHIBITS AND RIDERS
The following Exhibits and Riders are
attached hereto and by this reference made a part of this
Lease:
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EXHIBIT A
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FLOOR PLAN OF THE PREMISES |
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EXHIBIT A-2
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EXPANSION PREMISES |
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EXHIBIT B
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THE LAND |
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EXHIBIT C
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RENT SCHEDULE |
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EXHIBIT D
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WORK LETTER |
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EXHIBIT E
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FORM OF COMMENCEMENT NOTICE |
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EXHIBIT F
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JANITORIAL SPECIFICATIONS |
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EXHIBIT G
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FIRST OFFER SPACE |
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EXHIBIT H
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IAC AGREMENT NOTIFICATION |
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RIDER NO. 1
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RULES AND REGULATIONS |
ii
LEASE AGREEMENT
THIS LEASE AGREEMENT dated as
of November 16, 2007 (“this Lease ”) is
made and entered into by and between CityGate Centre I LLC, a
Delaware limited liability company (the “ Landlord
”) and Calamos Holdings LLC, a Delaware limited liability
company (the “ Tenant ”), upon all the terms set
forth in this Lease and in all Exhibits and Riders hereto, to each
and all of which terms Landlord and Tenant hereby mutually agree,
and in consideration of Ten Dollars ($10.00) and other valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, and of the rents, agreements and benefits flowing
between the parties hereto, as follows:
ARTICLE 1 — BASIC LEASE INFORMATION AND CERTAIN
DEFINITIONS
Section 1.1
Definitions : Each reference in this Lease to
information and definitions contained in the Basic Lease
Information and Certain Definitions and each use of the terms
capitalized and defined in this Section 1.1 shall be
deemed to refer to, and shall have the respective meaning set forth
in, this Section 1.1 .
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A.
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Premises: |
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The entire second (2 nd ) floor of the
Building, as said space is identified by diagonal lines or shaded
area on the floor plans attached hereto as Exhibit A . |
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B.
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Expansion Premises: |
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A portion of the third (3rd) floor of
the Building, as said space is described on Exhibit A-2
attached hereto. |
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C.
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Building: |
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The building commonly known as 2135
CityGate Lane, Naperville, Illinois. |
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D.
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Land: |
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That certain parcel of real estate
described in Exhibit B attached hereto. |
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E.
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Project: |
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The Land and all improvements
thereon, including the Building and all Common Areas. |
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F.
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Commencement Date: |
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November 16, 2007. |
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G.
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Rent Commencement Date: |
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May 1, 2008. |
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H.
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Expiration Date: |
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April 30, 2015. |
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I.
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Term: |
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Approximately seven (7) years and six
(6) months beginning on the Commencement Date |
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and Ending at 11:59 pm Chicago time
on the Expiration Date (the “ Initial Term ”)
together with any extensions thereof pursuant to Article 3
herein. |
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J.
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Rentable Area of the
Premises: |
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Landlord and Tenant agree that for
all purposes of this Lease the Rentable Area of the Premises shall
be deemed to be 30,833 square feet. |
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K.
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Rentable Area of the
Building: |
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Landlord and Tenant agree that for
all purposes of this Lease the Rentable Area of the Building shall
be deemed to be 213,163 square feet. |
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L.
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Tenant’s Share: |
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14.46% |
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M.
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Rent: |
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The Base Rent and the Additional Rent
(as each term is defined herein. |
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N.
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Base Rent: |
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The Base Rent shall be $18.25 per
rentable square foot, with 2.5% annual escalations, as such amounts
are set forth on the Base Rent Schedule attached hereto as
Exhibit C , subject to such increases and free rent periods
as may be provided herein and in said Exhibit C. |
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O.
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Additional Rent: |
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The Additional Rent shall be all
other sums due and payable by Tenant under the Lease, including,
but not limited to, Tenant’s Share of Operating Costs. |
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P.
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Rent Abatement: |
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Rent shall be abated for the Premises
for a period of approximately six (6) months. |
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Q.
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Landlord’s Contribution: |
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$40.00 per rentable square foot. |
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R.
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Tenant’s Permitted Uses: |
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Tenant may use the Premises for
general office purposes and for no other purpose, as more
specifically set forth herein. |
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S.
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Security Deposit: |
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As set forth in Article 21
herein. |
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T.
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Broker: |
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Cushman & Wakefield of Illinois,
Inc. |
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U.
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Landlord’s Address for
Notice: |
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CityGate Centre I LLC |
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c/o Calamos Real Estate LLC |
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2135 CityGate Lane |
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Naperville, Illinois 60563 |
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Attention: President |
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With a copy to: |
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CityGate Centre I LLC |
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2020 Calamos Court |
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Naperville, Illinois 60563 |
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Attention: General Counsel |
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2
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U.
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Landlord’s Address for
Payment: |
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Calamos Real Estate LLC |
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2135 CityGate Lane |
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Naperville, Illinois 60563 |
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Attn: Property Manager |
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V.
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Tenant’s Address for
Notice: |
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Calamos Holdings LLC |
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2020 Calamos Court |
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Naperville, Illinois 60563 |
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Attn: Chief Executive Officer |
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With a copy to: |
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Calamos Holdings LLC |
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2020 Calamos Court |
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Naperville, Illinois 60563 |
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Attn: General Counsel |
ARTICLE 2 — PREMISES AND QUIET ENJOYMENT
Section 2.1
Conveyance : Landlord hereby leases the Premises to
Tenant, and Tenant hereby rents and hires the Premises from
Landlord, for the Term. During the Term, Tenant shall have the
non-exclusive right to use, in common with others and in accordance
with the Rules and Regulations (as set forth in Rider No. 1 of
the Lease), the Common Areas (as defined in Article 27 of
this Lease). Tenant shall be subject to the terms, conditions and
provisions of any and all ground leases, deeds to secure debt,
mortgages, restrictive covenants, easements and other encumbrances
now or hereafter affecting the Premises or the Project (“
Encumbrances ”). Notwithstanding the foregoing to the
contrary, Tenant shall only be subject to the Encumbrances to the
extent the Encumbrances do not materially diminish Tenant’s
rights or increase Tenant’s obligations hereunder, or
prohibit Tenant from using the Premises for Tenant’s
Permitted Uses.
Section 2.2 Quiet
Enjoyment : Provided that Tenant fully and timely performs
all the terms of this Lease on Tenant’s part to be performed,
including payment by Tenant of all Rent, Tenant shall have, hold
and enjoy the Premises during the Term without hindrance or
disturbance from or by Landlord; subject, however, to all of the
terms, conditions and provisions of any and all Encumbrances.
ARTICLE 3 — TERM; COMMENCEMENT DATE; DELIVERY AND
ACCEPTANCE OF
PREMISES AND OPTIONS TO EXTEND AND EXPAND
Section 3.1 Commencement
Date : The Commencement Date shall be November 16,
2007. Landlord acknowledges that Tenant has had the right to enter
the Premises for the purpose of constructing the Leasehold
Improvements beginning on August 13, 2007.
Section 3.2 Commencement
Notice : By written instrument substantially in the form of
Exhibit E attached hereto, Landlord shall notify Tenant
of the Commencement Date and all other matters stated therein. Such
Commencement Notice shall be conclusive and binding on Tenant as to
all matters set forth therein, unless within ten (10) Business
Days (as such term is defined in Article 27 of this
Lease) following delivery of such Commencement Notice, Tenant
contests any of the matters contained therein by notifying Landlord
in writing of Tenant’s objections.
Section 3.3 Acceptance of
Premises : Occupancy of the Premises or any portion thereof
by Tenant or anyone claiming through or under Tenant shall be
conclusive evidence that Tenant and all parties claiming through or
under Tenant (a) have accepted the Premises or such portion as
suitable for the purposes for which the Premises are leased
hereunder and the needs of Tenant, (b) have waived any
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defects
in the Premises and the Project, and (c) have acknowledged
that the Premises are acceptable in their “as is”
condition, with no further obligation on the part of the Landlord.
To Landlord’s knowledge, the Land, Building and Premises are
in compliance with all applicable codes and laws, including,
without limitation, building codes, fire codes and the Americans
with Disabilities Act.
Section 3.4 Tenant Options
to Extend the Term : If (i) this Lease is in full
force and effect without any uncured defaults of Tenant after
expiration of all applicable notice and cure periods, then Tenant
shall have the right to extend the Term by two (2) successive
periods of five (5) years each upon the terms and conditions
set forth in this Lease, except for Base Rent, which shall be the
fair market rent as determined pursuant to Section 3.6
below. Each option to extend is referred to as an “
Extension Option ”; the first is referred to as the
“ First Extension Option ” and the second is
referred to as the “ Second Extension Option .”
In no event whatsoever shall this Lease ever be construed so as to
afford Tenant more than two (2) Extension Options, or any
other renewal rights not expressly set forth in this
Article 3 .
Section 3.5 Conditions to
Exercising Extension Options : In order to exercise an
Extension Option, Tenant (i) there shall not be an Event of
Default then in existence under this Lease, (ii) shall have
neither assigned the Lease nor sublet all or any portion of the
Premises, and (iii) shall deliver notice of such exercise to
Landlord not later than one (1) year prior to the expiration
date of the Initial Term or the extended Term, as applicable.
Tenant may exercise the Second Extension Option, however, only if
it previously exercised the First Extension Option and the Term has
not earlier been terminated. During the extended Term, the
provisions of this Lease shall remain in full force and
effect.
Section 3.6 Determination
of Fair Market Rent : Within thirty (30) days of
Landlord’s receipt of a Renewal Notice, Landlord shall
deliver to Tenant a statement of the fair market rent for such
renewal period (the “ FMR Notice ”). The fair
market rent contained in the FMR Notice shall reflect the arms
length fair market annual rental rate per rentable square foot
under renewal leases and amendments entered into on or about the
date on which the FMR Notice is delivered for space comparable to
the Premises in the Building and office buildings comparable to the
Building in the “East-West Corridor” area of suburban
Chicago, Illinois. The determination of such fair market rent shall
take into consideration any material economic differences between
the terms of this Lease and any comparison lease or amendment, such
as rent abatements, construction costs and other concessions and
the manner, if any, in which the landlord under any such lease is
reimbursed for operating expenses and taxes. In the event Tenant
does not agree Landlord’s determination of fair market rent
and the parties have not otherwise agreed in writing to a different
fair market rent, then Tenant may deliver to Landlord a notice
disputing Landlord’s determination of fair market rent within
fifteen (15) days after receipt of Landlord’s FMR Notice
(a “ Rejection Notice ”). If Tenant fails to
provide Landlord with such Rejection Notice within said fifteen
(15) day period, Tenant shall be deemed to have accepted the
fair market rent contained in the FMR Notice. If Tenant properly
and timely delivers such Rejection Notice to Landlord, Landlord and
Tenant shall work in good faith to determine the fair market rent
for the applicable renewal period. If Landlord and Tenant are
unable to agree upon the fair market rent within thirty
(30) days of Landlord’s receipt of the Rejection Notice,
Tenant’s Extension Options shall be deemed null and void and
of no force or effect. Upon Tenant’s acceptance of the fair
market rent contained in the FMR Notice, or the parties’ good
faith agreement on fair market rent, as provided above, Landlord
and Tenant shall enter into an amendment of this Lease, which
amendment shall reflect the new Base Rent, Expiration Date and any
other appropriate modifications.
Section 3.7 Tenant’s
Option to Expand the Premises . Subject to the rights of
other tenants in the Building, if this Lease is in full force and
effect, and provided no Events of Default have occurred and are
continuing, Tenant shall have the right to expand the Premises to
include the Expansion Premises as such Expansion Premises are
described on Exhibit A-2 attached hereto (the “
Expansion Option ”). If any
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other tenant has exercised its option to lease all or a portion of
the Expansion Premises, Tenant’s right to expand into the
Expansion Premises shall be null and void. If any such other tenant
has declined to exercise its expansion rights by May 1, 2008,
Landlord shall give notice to Tenant of the availability of the
Expansion Premises and Tenant. In order to exercise the Expansion
Option, Tenant shall deliver notice of such exercise to Landlord
not later than 5:00 pm Chicago time, on May 10, 2008. If
Tenant timely exercises its Expansion Option, (i) such
expansion shall be subject to the terms and conditions of this
Lease, including, without limitation, the Right of First Offer,
Landlord’s Contribution, Termination Right, First Extension
Option and Second Extension Option, and (ii) the parties
hereto shall enter into an amendment of this Lease for the purpose
of increasing the Premises to include the Expansion Premises and
specifying Rent, Tenant’s Share, and Landlord’s
Contribution to the Leasehold Improvements within the Expansion
Space. The Expansion Premises shall be deemed a part of the
Premises commencing on December 1, 2008 and the rent
commencement date for the Expansion Premises shall be June 1,
2009.
Section 3.8 Termination
Right : Notwithstanding anything to the contrary contained
herein, Tenant shall have the one time right to terminate this
Lease (the “ Termination Option ”) either
(i) as of March 31, 2013, if the Expansion Option is not
exercised by the Tenant, or (ii) as of November 30, 2013
if the Expansion Option is exercised by the Tenant (each, as
applicable, the “ Early Termination Date ”);
which Termination Option may be exercised only if Tenant delivers
to Landlord written notice (the “ Termination Notice
”) of its decision to exercise this early Termination Option
on or before the date that is twelve (12) months prior to the
applicabe Early Termination Date. If Tenant elects to exercise this
one time Termination Option, Tenant shall pay to the Landlord a
termination payment equal to (i) the then unamortized Landlord
Contribution to the Leasehold Improvements (calculated on a
straightline basis using a nine percent (9%) annual interest rate
over a ninrty (90) month term), plus (ii) unamortized
brokerage commissions (calculated on a straightline basis using a
nine percent (9%) annual interest rate over a ninety
(90) month term), plus (iii) three (3) months of
Rent as of the applicable Early Termination Date (collectively, the
“ Termination Payment ”). One half of the
Termination Payment shall be due with the Termination Notice and
the other half of the Termination Payment shall be due upon the
applicable Early Termination Date.
ARTICLE 4 — RENT
Section 4.1 Base
Rent : Tenant shall pay to Landlord, without notice,
demand, offset or deduction, in lawful money of the United States
of America, at Landlord’s Address for Payment, or at such
other place as Landlord shall designate in writing from time to
time: (a) the Base Rent as set forth in Exhibit C
attached hereto, in equal monthly installments, in advance, on the
first day of each calendar month during the Term, and (b) the
Additional Rent, at the respective times required hereunder.
Provided no Event of Default has occurrred or is continuing
hereunder, Tenant shall be entitled to a six (6) month
abatement of Rent (the “ Abated Rent ”) (as set
forth on Exhibit C attached hereto), such that the Rent
shall commence on the Rent Commencement Date. At any time, if an
Event of Default shall occur and be continuing hereunder, all
Abated Rent shall immediately become due and payable. If either the
Commencement Date or the Expiration Date falls on a date other than
the first day of a calendar month, the Rent due for such fractional
month shall be prorated on a per diem basis between Landlord and
Tenant so as to charge Tenant only for the portion of such
fractional month falling within the Term.
Section 4.2 Charges and
Interest on Late Payments : All installments of Rent which
are not paid within five (5) days after their due date shall
be subject to a late charge of five percent (5%) of the amount of
the late payment and shall further bear interest until paid at a
rate per annum (the “ Interest Rate ”) equal to
the greater of twelve percent (12%) or two percent (2%) above the
prime rate of interest from time to time published by the Wall
Street Journal, or any successor thereof; provided, however, that,
if at the time such interest is sought to be imposed the rate of
interest exceeds the maximum rate
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permitted under federal law or under the laws of the State of
Illinois, the rate of interest on such past due installments of
Rent shall be the maximum rate of interest then permitted by
applicable law.
ARTICLE 5 — ADDITIONAL RENT
Section 5.1 Operating
Expense Payments : Beginning on the Rent Commencement Date,
on the first day of each calendar month during the Term, Tenant
shall pay to Landlord, as Additional Rent, an amount of money equal
to Tenant’s Share of Operating Costs (“
Tenant’s Operating Costs Payment ”), for each
year or fractional year during the Term, such amount to be
calculated and paid as follows:
A. Within sixty (60) days
following the Commencement Date, and on the first day of January of
each year during the Term thereafter, or as soon thereafter as is
practicable, Landlord shall furnish Tenant with a statement
(“ Landlord’s Operating Costs Estimate ”)
setting forth Landlord’s reasonable estimate of Operating
Costs as defined in Section 5.2 and as adjusted
pursuant to Section 5.3 for the forthcoming year and
Tenant’s Operating Costs Payment for such year, as adjusted
pursuant to Section 5.3 . On the first day of each
calendar month during such year, Tenant shall pay to Landlord
one-twelfth (1/12th) of Tenant’s Operating Costs Payment as
estimated on Landlord’s Operating Costs Estimate. If during
any calendar year actual Operating Costs exceed Landlord’s
Operating Costs Estimate for such calendar year, Landlord may send
Tenant a revised Landlord’s Operating Costs Estimate, and,
upon receipt thereof, Tenant shall thereafter make monthly payments
as set forth in the revised Landlord’s Operating Cost
Estimate. If for any reason Landlord has not provided Tenant with
Landlord’s Operating Costs Estimate on the first day of
January of any year during the Term, then until the first day of
the calendar month following the month in which Tenant is given
Landlord’s Operating Costs Estimate, Tenant shall continue to
pay to Landlord on the first day of each calendar month the sum, if
any, payable by Tenant under this Section 5.1 for the
month of December of the preceding year.
B. On the last day of March of
each year during the Term (beginning on the last day of March of
the first year following the year in which the Commencement Date
occurs), or as soon thereafter as is practicable, Landlord shall
furnish Tenant with a statement of the actual Operating Costs as
adjusted pursuant to Section 5.3 , for the preceding
year. Within thirty (30) days after Landlord’s giving of
such statement, Tenant shall make a lump sum payment to Landlord in
the amount, if any, by which Tenant’s Operating Costs Payment
for such preceding year as shown on such Landlord’s
statement, exceeds the aggregate of the monthly installments of
Tenant’s Operating Costs Payments paid during such preceding
year. If Tenant’s Operating Costs Payment, as shown on such
Landlord’s statement, is less than the aggregate of the
monthly installments of Tenant’s Operating Costs Payment
actually paid by Tenant during such preceding year, then Landlord
shall apply such amount to the next accruing monthly installment(s)
of Rent due from Tenant until fully credited to Tenant (or if there
is no further installment of Tenant’s Operating Costs Payment
due by Tenant, then Landlord shall remit such overpayment directly
to Tenant).
C. If the Term ends on a date
other than the last day of December, the actual Operating Costs for
the year in which the Expiration Date occurs, shall be prorated so
that Tenant shall pay that portion of Tenant’s Operating
Costs Payment for such year represented by a fraction, the
numerator of which shall be the number of days during such
fractional year falling within the Term, and the denominator of
which is 365 (or 366, in the case of a leap year). The provisions
of this Section 5.1 shall survive the Expiration Date
or any sooner termination provided for in this Lease.
Section 5.2 Definition of
Operating Expenses : For purposes of this Lease, the term
“ Operating Costs ” shall specifically include
and exclude the following:
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A. The term “ Operating
Costs ” shall mean any and all expenses, costs and
disbursements of every kind which Landlord pays, incurs or becomes
obligated to pay in connection with the operation, management,
repair and maintenance of all or any portion of the Project. All
Operating Costs shall be determined according to generally accepted
accounting principles which shall be consistently applied.
Operating Costs include, without limitation, the following:
(a) Reasonable wages, salaries, benefits, association dues and
other fees and costs of all personnel associations or entities
engaged in the operation, repair, maintenance, management, or
safekeeping of the Project or the Common Areas, including, without
limitation, taxes, insurance, and benefits relating thereto and the
reasonable costs of all supplies and materials (including work
clothes and uniforms) used in the operation, repair, maintenance
and security of the Common Areas and the Project (all such amounts
to be prorated among properties pursuant to applicable
Encumbrances, including, without limitation the CityGate Centre
declarations and restrictive covenants, to the extent such
personnel, entities, supplies or materials are also engaged in the
operation, repair, maintenance or security of any property other
than the Building); (b) Cost of performance by
Landlord’s personnel of, or of all service agreements for,
maintenance, janitorial services, access control, alarm service,
window cleaning, elevator maintenance and landscaping for the
Project, including, without limitation, the cost of repairs and
replacements required in connection with the maintenance of the
parking garage on the Land and the rental of personal property and
equipment used by Landlord’s personnel and others in the
maintenance and repair of the Project; (c) Cost of utilities
for the Project not specifically billed to other tenants of the
Building, including water, sewer, gas, fuel and Common Area power,
electricity, lighting and air-conditioning, heating and ventilating
subject to Section 5.3 ; with Tenant to separately pay
the utility service costs for the Premises as provided in
Section 7.2 herein, (d) Cost of all insurance,
including casualty and liability insurance applicable to the
Project and to Landlord’s equipment, fixtures and personal
property used in connection therewith, business interruption or
rent insurance against such perils as are commonly insured against
by prudent landlords, such other insurance as may be required by
any lessor or mortgagee of Landlord, and such other insurance which
Landlord considers reasonably necessary in the operation of the
Project, together with all appraisal and consultants’ fees in
connection with such insurance (but only to the extent used in
connection with an attempted reduction in insurance costs), and,
with respect to any claim under such insurance, the amount of any
deductible; (e) All Taxes (as hereinafter defined); (f)
Reasonable legal and accounting costs incurred by Landlord or paid
by Landlord to third parties (exclusive of legal fees with respect
to disputes with individual tenants, negotiations of tenant leases,
or with respect to the ownership rather than the operation of the
Project), appraisal fees, consulting fees, all other professional
fees and disbursements and all association dues; (g) Cost of
non-capitalized repairs and general maintenance for the Project
(excluding repairs and general maintenance paid by proceeds of
insurance or by Tenant, other tenants of the Project or other third
parties); (h) Amortization of the cost of improvements or
equipment which are capital in nature and which (i) are for
the purpose of reducing Operating Costs for the Project, up to the
amount saved as a result of the installation thereof, as reasonably
estimated by Landlord, or (ii) enhance the Project for the general
benefit of tenants or occupants thereof, or (iii) are required
by any governmental authority (unless such requirement was in
effect and/or required prior to the Commencement Date), or
(iv) replace any Building equipment needed to operate the
Project at the same quality levels as prior to the replacement. All
such costs, including interest thereon, shall be amortized on a
straight-line basis over the useful life of the capital investment
items (as reasonably determined by Landlord), but in no event
beyond the reasonable useful life of the Project as a first class
office project; (i) the Project management office rent or
rental value of the Project management office and any conference
rooms of the Building made available by Landlord for common use by
tenants of the Building, provided that the same shall not be above
market rental rates; and (j) a management fee (whether or not
Landlord engages a manager for the Project or manages the Project
with Landlord’s personnel) and all items reimbursable to the
Project manager, if any, pursuant to any management contract for
the Project. The management fee shall be four percent (4%) of the
annual Rent required hereunder.
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B. For purposes hereof, the term
“ Taxes ” shall mean, all taxes, assessments,
and other governmental charges, applicable to or assessed against
the Project or any portion thereof, or applicable to or assessed
against Landlord’s personal property used in connection
therewith, whether federal, state, county, or municipal and whether
assessed by taxing districts or authorities presently taxing the
Project or the operation thereof or by other taxing authorities
subsequently created, or otherwise, and any other taxes and
assessments attributable to or assessed against all or any part of
the Project or its operation; including any reasonable expenses,
including fees and disbursements of attorneys, tax consultants,
arbitrators, appraisers, experts and other witnesses, incurred by
Landlord in contesting any taxes or the assessed valuation of all
or any part of the Project. Tenant acknowledges that Taxes
“for” a given calendar year are those Taxes which
accrue and are assessed for the Project in such calendar year even
if paid in a later year. If at any time during the Term there shall
be levied, assessed, or imposed on Landlord or all or any part of
the Project by any governmental entity any general or special ad
valorem or other charge or tax directly upon rents received under
leases, or if any fee, tax, assessment, or other charge is imposed
which is measured by or based, in whole or in part, upon such
rents, or if any charge or tax is made based directly or indirectly
upon the transactions represented by leases or the occupancy or use
of the Project or any portion thereof, such taxes, fees,
assessments or other charges shall be deemed to be Taxes.
Notwithstanding the foregoing, any (A) franchise, corporation,
income, inheritance or net profits tax, unless substituted for real
estate taxes or imposed as additional charges in connection with
the ownership of the Project, which may be assessed against
Landlord or the Project or both, (B) transfer taxes assessed
against Landlord or the Project or both, (C) penalties or
interest on any late payments of Landlord and, (D) personal
property taxes of Tenant or other tenants in the Project shall be
excluded from Taxes. If any or all of the Taxes paid hereunder are
by law permitted to be paid in installments, notwithstanding how
Landlord pays the same, then, for purposes of calculating Operating
Costs, such Taxes shall be deemed to have been divided and paid in
the maximum number of installments permitted by law, and there
shall be included in Operating Costs for each year only such
installments as are required by law to be paid within such year,
together with interest thereon and on future such installments as
provided by law.
C. “ Operating Costs
” shall not include (a) specific costs for any capital
repairs, replacements or improvements, except as provided above;
(b) expenses for which Landlord is reimbursed or indemnified
(either by an insurer, condemner, tenant, warrantor or otherwise)
to the extent of funds received by Landlord; (c) expenses
incurred in leasing or procuring tenants (including lease
commissions, advertising expenses, promotional expenses and
expenses of renovating space for tenants); (d) payments for
rented equipment, the cost of which would constitute a capital
expenditure not permitted pursuant to the foregoing if the
equipment were purchased; (e) interest or amortization
payments on any mortgages; (f) net basic rents under ground
leases; (g) costs representing an amount paid to an affiliate
of Landlord which is in excess of the amount which would have been
paid in the absence of such relationship; (h) costs specially
billed to and paid by specific tenants; (i) salaries and
benefits of employees of Landlord and its affiliates above the
grade of group manager; (j) fines, penalties or costs
resulting solely from Landlord’s default hereunder;
(k) legal fees or other professional and consulting fees paid
in connection with other tenant leases or the financing or
refinancing of the Building; (l) organizational expenses
associated with the creation and operation of the entity which
constitutes Landlord; (m) cost of repairs or other work
occasioned by the exercise of right of eminent domain;
(n) depreciation (except as specifically set forth in
Section 5.2(A)(h) above); (o) fines, penalties or
costs incurred due to violation by Landlord or any tenant of the
terms and conditions of any lease; (p) expenses in connection
with services or other benefits of a type which Tenant is not
entitled to receive under the Lease but which are provided to
another tenant or occupant; (q) any compensation paid to
clerks, attendants or other persons in commercial concessions
operated by Landlord. There shall be no duplication of costs or
reimbursements.
8
Section 5.3 Gross
Up : If the Building is not fully occupied (meaning
one-hundred percent (100%) of the Rentable Area of the Building)
during any full or fractional year of the Term, components of the
actual Operating Costs which vary with the level of occupancy shall
be adjusted for such year to an amount which Landlord estimates
would have been incurred in Landlord’s reasonable judgment
had the Building been ninety five percent (95%) occupied.
ARTICLE 6 — INTENTIONALLY DELETED
ARTICLE 7 — SERVICES OF LANDLORD
Section 7.1 Landlord
Services : During the Term, Landlord shall furnish Tenant
with the following services: (a) hot and cold water in
Building bathrooms and chilled water in Building drinking
fountains, if any; (b) use of the Building Systems, such as
then existing feeders and risers, to obtain electrical power from
the utility supplier sufficient for lighting the Premises and
powering office equipment consuming up to seven (7) watts per
square foot of Rentable Area of the Premises; (c) heating,
ventilating or air-conditioning, as appropriate, to the Premises
and the Common Areas of the Project, during Business Hours at such
temperatures and in such amounts as customarily and seasonally
provided to tenants occupying comparable space in first-class
office buildings in the surrounding area; (d) electric
lighting for the Common Areas of the Project; (e) passenger
elevator service, in common with others, for access to and from the
Premises twenty-four (24) hours per day, seven (7) day
per week; provided, however, that Landlord shall have the right to
limit the number of (but not cease to operate all) elevators to be
operated after Business Hours and on Saturdays, Sundays and
Holidays; (f) janitorial cleaning services in accordance with
the janitorial specifications attached hereto as
Exhibit F ; (g) facilities for Tenant’s
loading, unloading, delivery and pick-up activities, including
access thereto during Business Hours, subject to the Rules and
Regulations, the type of facilities, and other limitations of such
loading facilities; and (h) replacement, as necessary, of all
Building standard lamps and ballasts in Building standard light
fixtures within the Premises, with Tenant to pay for all bulbs and
ballasts and to purchase such bulbs and ballasts solely from
Landlord. All services referred to in this Section 7.1
shall be provided by Landlord and paid for by Tenant as part of
Tenant’s Operating Costs Payment. At no time shall use of
electricity in the Premises exceed the capacity of existing feeders
and risers to or wiring in the Premises. Any risers or wiring to
meet Tenant’s excess electrical requirements shall, upon
Tenant’s written request, be installed by Landlord, at
Tenant’s sole cost, if, in Landlord’s reasonable
judgment, the same are necessary and shall not (i) cause permanent
damage or injury to the Project, the Building or the Premises,
(ii) cause or create a dangerous or hazardous condition,
(iii) entail excessive or unreasonable alterations, repairs or
expenses or (iv) interfere with or disturb other tenants or
occupants of the Building.
Section 7.2 Additional
Services : If Tenant requires services, including cleaning
services, routinely supplied by Landlord for hours or days in
addition to the hours and days specified in Section 7.1
, Landlord shall make reasonable efforts to provide such additional
service after reasonable prior request therefor from Tenant, and
Tenant shall reimburse Landlord for the cost of such additional
service; provided however, that, if any other tenants in the
Building served by the equipment providing such additional service
to the Premises request that Landlord concurrently provide such
service to such other tenants, the cost of Landlord’s
providing such additional and concurrent service shall be prorated
among all of the tenants requesting such service on the basis of
the amount of space used by such tenants or the amount of
additional service used by such tenants. Landlord shall have no
obligation to provide any additional service to Tenant at any time
Tenant is in default under this Lease after applicable notice and
cure periods unless Tenant pays to Landlord, in advance, the cost
of such additional service. If any machinery or equipment which
generates abnormal heat or otherwise creates unusual demands on the
air-conditioning or heating system serving the Premises is used in
the Premises and if Tenant has not, within five (5) Business
Days after demand from Landlord, taken such steps, at
Tenant’s expense, as shall be
9
necessary to cease such adverse affect on the air-conditioning or
heating system, Landlord shall have the right to install
supplemental air-conditioning or heating units in the Premises, and
the full cost of such supplemental units (including the cost of
acquisition, installation, operation, use and maintenance thereof)
shall be paid by Tenant to Landlord in advance or on demand as
Additional Rent.
Section 7.3
Utilities : Landlord shall be responsible for making
all necessary arrangements with the public utility or alternative
utility service suppliers (“ Suppliers ”)
supplying electric or other utility services reasonably necessary
for the operation of the Building to the Building for
Tenant’s use on the Commencement Date. All costs thereof
shall be Operating Costs hereunder. Tenant shall cooperate with
Landlord and Suppliers at all times and, as reasonably necessary,
shall allow Landlord and the Suppliers reasonable access to the
lines, feeders, risers, wiring, pipes, meters and any other
machinery within the Premises provided Landlord provides Tenant
reasonable notice prior to such entry except in the event of an
emergency when no such notice shall be required. Tenant shall be
subject to the rules and regulations of the Suppliers of such
services and the rules and regulations of any municipal or other
governmental authority regulating the business of providing such
services. Notwithstanding the foregoing, Landlord may elect not to
to supply or contract for the supply of such utility services to
the Building, by giving Tenant sixty (60) days notice of same
and Tenant shall make all necessary arrangements with the Suppliers
supplying electric, gas, telephone, cable or other utility services
to the Premises. The Tenant hereby acknowledges and agrees that it
has read and understands the notice attached hereto as
Exhibit H regarding the Landlord’s agreement with
the City of Naperville relating to electricity infrastructure
charges applicable to the Project.
Section 7.4 Disruption of
Services : Landlord shall in no way be liable or
responsible for any loss, damage, or expense that Tenant may
sustain or incur by reason of any change, failure, interference,
disruption, or defect in the supply or character of the utility
services furnished to the Premises, or if the quantity or character
of the utility services supplied by the Suppliers is no longer
available or suitable for Tenant’s requirements, and no such
change, failure, defect, unavailability, or unsuitability shall
constitute an actual or constructive eviction, in whole or in part,
will entitle Tenant to any abatement or diminution of Rent or
relieve Tenant from any of its obligations under this Lease. Should
any malfunction of any systems or facilities occur within the
Building or should maintenance or alterations of such systems or
facilities become necessary, Landlord shall repair the same
promptly and with reasonable diligence, and except as otherwise
specifically provided herein, Tenant shall have no claim for
rebate, abatement of Rent, or damages because of malfunctions or
any such interruptions in service. Notwithstanding the foregoing,
in the event there is failure, delay or interruption of utility
services due to any event covered by rent loss insurance which is
not caused by Tenant or its agents, employees, representative,
contractors, sublessees, licensors or invitees and which causes the
Premises (or any portion thereof) to be untenantable or prohibits
access to the Premises, and as a result of either occurrence,
Tenant in fact ceases to use the Premises (or any portion thereof)
for a period in excess of five (5) consecutive Business Days, then
commencing on the sixth (6 th ) consecutive
Business Day of such untenantability and non-use, Rent payable by
Tenant for the untenantable portion of the Premises shall be abated
until the earliest to occur of (a) the date such failure,
delay or interruption is remedied, (b) the date the Premises
are again tenantable or (c) the date Tenant resumes use of the
Premises.
ARTICLE 8 — ASSIGNMENT AND SUBLETTING
Section 8.1 Consent
Required : Neither Tenant nor its legal representatives or
successors in interest shall, by operation of law or otherwise,
assign, mortgage, pledge, encumber or otherwise transfer this Lease
or any part hereof, or the interest of Tenant under this Lease, or
in any sublease or the rent thereunder without Landlord’s
prior consent, which consent may not be unreasonably withheld or
delayed. The Premises or any part thereof shall not be sublet,
occupied or used for any purpose by anyone other than Tenant,
without Tenant’s obtaining in each instance the prior written
consent of
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Landlord, which consent, subject to the provisions of Section
8.3 below, shall not be unreasonably withheld or delayed.
Tenant shall not modify, extend, or amend a sublease previously
consented to by Landlord without obtaining Landlord’s prior
written consent thereto, which consent, subject to the provisions
of Section 8.3 below, shall not be unreasonably
withheld or delayed. Notwithstanding the foregoing,
Landlord’s consent shall not be required for indirect
ownership transfers or for Tenant’s subletting or assignment
of the Lease to a parent, subsidiary or affiliate of the Tenant,
provided that such affiliate subtenant or assignee has the same or
greater net worth as the Tenant at the time of the transfer (a
“ Permitted Transfer ”).
Section 8.2 Definition of
Assignment : An assignment of this Lease shall be deemed to
have occurred (a) if in a single transaction or in a series of
transactions more than 50% in interest in Tenant, any guarantor of
this Lease, or any subtenant (whether stock, partnership interest,
membership interest or otherwise) is transferred, diluted, reduced,
or otherwise affected with the result that the present holder or
owners of Tenant, such guarantor, or such subtenant have less than
a 50% interest in Tenant, such guarantor or such subtenant, or
(b) if Tenant’s obligations under this Lease are taken
over or assumed in consideration of Tenant leasing space in another
building. The transfer of the outstanding capital stock of any
corporate Tenant, guarantor or subtenant through the
“over-the-counter” market or any recognized national
securities exchange (other than by persons owning 5% or more of the
voting calculation of such 50% interest of clause (a) above)
shall not be included in the calculation of such 50% interest in
clause (a) above.
Section 8.3 Approval
Requests : If Tenant should desire to assign this Lease or
sublet the Premises (or any part thereof), Tenant shall give
Landlord written notice no later than thirty (30) days in
advance of the proposed effective date of any proposed assignment
or sublease, specifying (a) the name, current address, and
business of the proposed assignee or sublessee, (b) the amount and
location of the space within the Premises proposed to be so
subleased, (c) the proposed effective date and duration of the
assignment or subletting, and (d) the proposed rent or
consideration to be paid to Tenant by such assignee or sublessee.
Tenant shall promptly supply Landlord with financial statements and
other information as Landlord may reasonably request to evaluate
the proposed assignment or sublease. Landlord shall have thirty
(30) days following receipt of such notice and other
information requested by Landlord within which to notify Tenant in
writing that Landlord elects: (i) to permit Tenant to assign
or sublet such space; provided, however, that, fifty percent (50%)
of any proceeds due and owing to Tenant in excess of Tenant’s
Rent hereunder from such Subtenant shall be considered Additional
Rent owed by Tenant to Landlord (less brokerage commissions,
attorneys’ fees and other disbursements reasonably incurred
by Tenant for such assignment and subletting if acceptable evidence
of such disbursements is delivered to Landlord), and shall be paid
by Tenant to Landlord, in the case of excess rent, in the same
manner that Tenant pays Base Rent and, in the case of any other
consideration, within ten (10) Business Days after receipt thereof
by Tenant; or (ii) to refuse the requested consent of
Tenant’s assignment or subleasing of such space and to
continue this Lease in full force and effect as to the entire
Premises. The parties agree that Landlord may reasonably refuse to
consent to a subletting if the proposed subtenant is not
financially creditworthy, is a governmental authority or agency, an
organization or person enjoying sovereign or diplomatic immunity, a
medical or dental practice, for storing goods or equipment rather
than general office use, or a user that will attract a volume,
frequency or type of visitor or employee to the Building which is
not consistent with the standards of a high quality office building
or that will impose an excessive demand on or use of the facilities
or services of the Building, is a prospective tenant to whom
Landlord has offered to lease space in the Project; provided,
however, that the foregoing are merely examples of reasons for
which Landlord may withhold its approval and shall not be deemed
exclusive of any permitted reasons for reasonably withholding
approval, whether similar or dissimilar to the foregoing examples.
It shall also be reasonable for Landlord to refuse to consent to
any assignment or subletting if (i) an Event of Default by
Tenant then exists under this Lease beyond applicable notice and
cure periods, or (ii) such assignment or subletting would
cause a default under any other agreement binding upon the
11
Landlord, including without limitation, another lease in the
Building or any Encumbrance, or (iii) any portion of the
Building or Premises would likely become subject to additional or
different laws as a consequence of the proposed subletting or
assignment. If Landlord should fail to notify Tenant in writing of
such election within the aforesaid thirty (30) day period,
Tenant may send Landlord a second notice specifying that failure by
Landlord to respond within thirty (30) days constitutes deemed
consent by Landlord. If Landlord should fail to notify Tenant in
writing of its election within five (5) days after receipt of
such second notice, Landlord shall be deemed to have consented to
the proposed action. Whether or not Landlord approves of a proposed
assignment or sublet, Tenant agrees to reimburse Landlord as
Additional Rent for reasonable and customary legal fees and any
other reasonable out-of-pocket costs incurred by Landlord in
connection with any proposed assignment or subletting. Tenant shall
deliver to Landlord copies of all documents executed in connection
with any permitted assignment or subletting, which documents shall
be in form and substance reasonably satisfactory to Landlord and
which shall require any assignee or subtenant to assume performance
of all terms of this Lease to be performed by Tenant. No acceptance
by Landlord of any Rent or any other sum of money from any
assignee, sublessee or other category of transferee shall be deemed
to constitute Landlord’s consent to any assignment, sublease,
or transfer. Unless otherwise specifically agreed to in writing by
Landlord, no such assignment or sublease shall release Tenant from
any of its obligations under this Lease.
Section 8.4
Bankruptcy : Tenant acknowledges that this Lease is a
lease of nonresidential real property and therefore agrees that
Tenant, as the debtor in possession, or the trustee for Tenant
(collectively the “ Trustee ”) in any proceeding
under Title 11 of the United State Bankruptcy Code relating to
Bankruptcy, as amended (the “ Bankruptcy Code
”), shall not seek or request any extension of time to assume
or reject this Lease or to perform any obligations of this Lease
which arise from or after the order of relief. The Trustee shall
provide the Landlord with thirty (30) days advance written
notice of any rejection or abandonment of this Lease. The Trustee
shall have the right to assume or assign Tenant’s rights and
obligations under this Lease only if the Trustee and such assignee:
(a) promptly cures or provides adequate assurance that the
Trustee will promptly cure any default under the Lease;
(b) compensates or provides adequate assurance that the
Trustee will promptly compensate Landlord for any actual pecuniary
loss incurred by Landlord as a result of Tenant’s default
under this Lease; (c) provides adequate assurance of future
performance under the Lease; and (d) provides Landlord with at
least thirty (30) days’ advance written notice of such
assumption. All payments of Rent required of Tenant under this
Lease, whether or not expressly denominated as such in this Lease,
shall constitute rent for the purposes of Title 11 of the
Bankruptcy Code. No acceptance by Landlord of Rent or any other
payments from the Trustee, receiver, assignee, person or other
entity shall be construed as the Landlord’s waiver of the
need to obtain Landlord’s consent or Landlord’s right
to terminate this Lease for any transfer of Tenant’s interest
in this Lease without such consent.
Section 8.5 Assignment by
Landlord : The term “Landlord,” as used in this
Lease, so far as covenants or obligations on the part of Landlord
are concerned, shall be limited to mean and include only the owner
or owners, at the time in question, of the fee title to, or a
lessee’s interest in a ground lease of, the Land or the
Building. In the event of any transfer, assignment or other
conveyance or transfers of any such title or interest, Landlord
herein named (and in case of any subsequent transfers or
conveyances of any such title or interest, the then grantor) shall
be automatically freed and relieved from and after the date of such
transfer, assignment or conveyance of all liability as respects the
performance of any covenants or obligations on the part of Landlord
contained in this Lease arising after the date of such transfer
and, without further agreement, the transferee of such title or
interest shall be deemed to have assumed and agreed to observe and
perform any and all obligations of Landlord hereunder, during its
ownership of the Project. Landlord may transfer its interest in the
Project, or portions thereof on interest therein, with notice to
Tenant and such transfer or subsequent transfer shall not be deemed
a violation on Landlord’s part of any of the terms of this
Lease; provided, however, upon such transfer Landlord shall remain
liable to Tenant with respect to the obligations of Landlord set
forth in the Lease which arose prior
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to the
effective date of the transfer unless said obligations were
expressly assumed by the transferee at the time of the
transfer.
ARTICLE 9 — REPAIRS
Section 9.1 Non-Structural
Repairs : Tenant shall perform all maintenance and make all
repairs and replacements to the Premises (including the Leasehold
Improvements), other than (i) repairs and replacements
necessitated by the willful misconduct or negligence of Landlord or
its agents, employees, contractors, invitees or licensees to the
extent the cost thereof is not collectible under Tenant’s
insurance, or, if Tenant is not carrying all of the insurance
described in Section 14.1 , to the extent such cost
would not be covered by the insurance described in
Section 14.1 , if the same were in effect,
(ii) maintenance, repairs and replacements to the Building
Systems located within the Premises; and (iii) repairs
required to provide the services of Landlord described under
Article 7 above. Tenant shall also make all repairs and
replacements necessitated by damage to the Project (including the
Building structure and the Central systems of the Building within
the Premises) caused by Tenant or its agents, contractors, invitees
and licensees but only to the extent the cost thereof is not
collectible under Landlord’s insurance, or, if Landlord is
not carrying all of the insurance described in
Section 14.2 , to the extent that such cost would not
be covered by the insurance described in Section 14.2
if the same were in effect. Amounts payable by Tenant pursuant to
this Section 9.1 shall be payable within thirty
(30) days after receipt of an invoice therefor from Landlord.
Landlord has no obligation and has made no promise to maintain,
alter, remodel, improve, repair, decorate, or paint the Premises or
any part thereof, except as specifically set forth in this Lease.
In no event shall Landlord have any obligation to maintain, repair
or replace any furniture, furnishings, fixtures or personal
property of Tenant. To the extent Tenant has not made a repair
required hereunder within ten (10) Business Days of receipt of
Landlord’s notice that such repair is required, Landlord
shall have the right to enter the Premises with reasonable notice
and make any such repair, the cost of which shall be charged to
Tenant as Additional Rent hereunder.
Section 9.2 Structural
Repairs : Subject to the provisions of
Section 15 hereinbelow, Landlord shall maintain and
make all necessary repairs to the foundations, roof, exterior
walls, and structural elements of the Building, the electrical,
plumbing, heating, ventilation and air-conditioning systems
comprising the Building Systems and the Common Areas of the
Building, except that the cost of performing any of said
maintenance or repairs, whether to the Premises or to the Building,
caused by the negligence of Tenant, its employees, agents,
servants, licensees, subtenants, contractors or invitees, shall be
paid by Tenant.
ARTICLE 10 — ALTERATIONS
Section 10.1 Landlord
Consent Required : Tenant shall not at any time during the
Term make any alterations, including Specialty Alterations (as
defined below) to the Premises, the total cost of which exceeds
$10,000, without first obtaining Landlord’s written consent
thereto, which consent of Landlord shall not be unreasonably
withheld or delayed; provided, however, that Landlord shall not be
deemed unreasonable by refusing to consent to any alterations which
are visible from the exterior of the Building or the Project, which
will or are likely to cause any weakening of any part of the
structure of the Premises, the Building or the Project or which
will or are likely to cause damage or disruption to the Building
Systems or which are prohibited by any underlying ground lease or
mortgage. “ Specialty Alterations ” are defined
as alterations consisting of kitchens, executive bathrooms, raised
computer floors, computer, telephone and telecommunications wiring
and cabling in the Premises and Building, computer installations,
supplemental air conditioning systems, safe deposit boxes, vaults,
libraries or file rooms requiring reinforcement of floors, internal
staircases, conveyors and other alterations of a similar character
which Landlord designates as Specialty Alterations by written
notice delivered to Tenant when Landlord approves Tenant’s
plans containing such alterations. Should Tenant desire to make
any
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alterations to the Premises, Tenant shall submit all plans and
specifications for such proposed alterations to Landlord for
Landlord’s review before Tenant allows any such work to
commence, and Landlord shall promptly approve or disapprove such
plans and specifications for any of the reasons set forth in this
Section 10.1 or for any other reason reasonably deemed
sufficient by Landlord. Tenant shall select and use only
contractors, subcontractors or other repair personnel which have
been approved by Landlord; provided, however, if the alteration
affects the Building Systems then Tenant must use the contractors,
subcontractors or other repair personnel from those listed on
Landlord’s approved list maintained by Landlord in the
Project management office. Upon Tenant’s receipt of written
approval from Landlord and any required approval of any mortgagee
or lessor of Landlord, and upon Tenant’s payment to Landlord
of the reasonable out of pocket costs incurred by Landlord for such
review and approval (including a reasonable fee for the actual time
spent by employees of Landlord), Tenant shall have the right to
proceed with the construction of all approved alterations, but only
so long as such alterations are in strict compliance with the plans
and specifications so approved by Landlord and with the provisions
of this Article 10 . All alterations shall be made at
Tenant’s sole cost and expense. If Tenant elects to have
Landlord perform an alteration, Tenant shall pay Landlord all costs
incurred in connection therewith. If Tenant’s contractor
performs such work, there shall be a fee of five percent (5%) of
the actual costs of such work for Landlord’s agent or manager
in supervising and coordinating such work and to cover overhead. In
no event, however, shall anyone other than Landlord or
Landlord’s employees or representatives perform work to be
done which affects the Building Systems.
Section 10.2 Construction
Covenants : All construction, alterations, including
Specialty Alterations, and repair work done by or for Tenant
pursuant to any provision of this Lease shall (a) be performed
in such a manner as to maintain harmonious labor relations;
(b) not adversely affect the safety of the Project, the
Building or the Premises or the systems thereof and not affect the
Building Systems of the Building; (c) comply with all
building, safety, fire, plumbing, electrical, and other codes and
governmental and insurance requirements; (d) not result in any
usage in excess of building standard water, electricity, gas, or
other utilities or of heating, ventilating or air-conditioning
(either during or after such work) unless prior written
arrangements satisfactory to Landlord are made with respect
thereto; (e) be completed promptly and in a good and
workmanlike manner; and (f) not disturb Landlord or other
tenants in the Building. After completion of any alterations to the
Premises, Tenant will deliver to Landlord a copy of “as
built” plans and specifications depicting and describing such
alterations.
Section 10.3 Removal of
Improvements : Upon expiration or earlier termination of
this Lease, all leasehold improvements, alterations, including
Specialty Alterations, and other physical additions made to or
installed by or for Tenant in the Premises shall be and remain
Landlord’s property (except for Tenant’s movable
fixtures, telephone and other equipment, computer systems, trade
fixtures, furniture, furnishings and other items of personal
property which are removable without damage to the Premises or the
Building (“ Tenant’s Property ”)) and
shall not be removed without Landlord’s written consent.
Notwithstanding the foregoing, Landlord shall have the right to
condition its approval of any alteration to the Premises upon
Tenant’s removal of all or a portion of such improvements
prior to the end of the Term of this Lease. Tenant agrees to
remove, at its sole cost and expense, all of Tenant’s
Property, and, if directed at the time Landlord approves same (in
response to Tenant’s written request to do so upon submittal
to Landlord of the plans for such alterations for approval) or if
otherwise permitted to do so by Landlord in writing, all, or any
part of, the leasehold improvements, alterations, including
Specialty Alterations, and other physical additions made by Tenant
to the Premises, on or before the Expiration Date or any earlier
date of termination of this Lease. Tenant shall repair (which shall
include closing up any slab penetrations in the Premises in a good
and workmanlike manner), or promptly reimburse Landlord for the
cost of repairing, closing any such slab penetrations and all
damage done to the Premises or the Building by such removal. Tenant
shall notify Landlord of its intention to effect the closing of any
such slab penetrations at least 30 days prior to commencing
such closings. Any leasehold improvements, alterations, including
Specialty Alterations, or physical additions made by Tenant which
Landlord does
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not
direct or permit Tenant to remove at any time during or at the end
of the Term shall become the property of Landlord at the end of the
Term without any payment to Tenant. If Tenant fails to remove any
of Tenant’s Property by the Expiration Date or any sooner
date of termination of the Lease or, if Tenant fails to remove any
leasehold improvements, alterations, including Specialty
Alterations, and other physical additions made by Tenant to the
Premises which Landlord has in writing directed Tenant to remove,
Landlord shall have the right, on the tenth (10th) day after
Landlord’s delivery of written notice to Tenant to deem such
property abandoned by Tenant and to remove, store, sell, discard or
otherwise deal with or dispose of such abandoned property in a
commercially reasonable manner. Tenant shall be liable for all
costs of such disposition of Tenant’s abandoned property, and
Landlord shall have no liability to Tenant in any respect regarding
such property of Tenant. The provisions of this
Section 10.3 shall survive the expiration or any
earlier termination of this Lease.
ARTICLE 11 — LIENS
Section 11.1 Prohibition
of Liens : Tenant shall keep the Project, the Building and
the Premises and Landlord’s interest therein free from any
liens arising from any work performed, materials furnished, or
obligations incurred by, or on behalf of Tenant. Notice is hereby
given that neither Landlord nor any mortgagee or lessor of Landlord
shall be liable for any labor or materials furnished to Tenant. If
any lien is filed for such work or materials, such lien shall
encumber only Tenant’s interest in leasehold improvements on
the Premises. Within ten (10) days after Tenant learns of the
filing of any such lien, Tenant shall notify Landlord of such lien
and shall either discharge and cancel such lien of record or post a
bond sufficient under the laws of the State of Illinois to cover
the amount of the lien claim plus any penalties, interest,
attorneys’ fees, court costs, and other legal expenses in
connection with such lien. If Tenant fails to so discharge or bond
such lien within ten (10) calendar days after written demand
from Landlord, Landlord shall have the right, at Landlord’s
option, to pay the full amount of such lien without inquiry into
the validity thereof, and Landlord shall be promptly reimbursed by
Tenant, as Additional Rent, for all amounts so paid by Landlord,
including expenses, interest, and reasonable attorneys’
fees.
ARTICLE 12 — USE AND COMPLIANCE WITH LAWS
Section 12.1 Use :
The Premises shall be used only for the uses specifically set forth
in Section 1.1 and for no other purposes whatsoever.
Tenant shall use and maintain the Premises in a clean, careful,
safe, lawful and proper manner and shall not allow within the
Premises, any offensive noise, odor, conduct or private or public
nuisance or permit Tenant’s employees, agents, licensees or
invitees to create a public or private nuisance or act in a
disorderly manner within the Building or in the Project. Any
statement as to the particular nature of the business to be
conducted by Tenant in the Premises and uses to be made thereof by
Tenant as set forth in Section 1.1 hereof shall not
constitute a representation or warranty by Landlord that such
business or uses are lawful or permissible under any certificate of
occupancy for the Premises or the Building or are otherwise
permitted by law.
Section 12.2 Complaince
with Law : Tenant shall, at Tenant’s sole expense,
(a) comply with all laws, orders, ordinances, and regulations
of federal, state, county, and municipal authorities having
jurisdiction over the Premises, (b) comply with any directive,
order, Encumbrance or citation made pursuant to law by any public
officer requiring abatement of any nuisance or which imposes upon
Landlord or Tenant any duty or obligation arising from
Tenant’s occupancy or use of the Premises or from conditions
which have been created by or at the request or insistence of
Tenant, or required by reason of a breach of any of Tenant’s
obligations hereunder or by or through other fault of Tenant,
including, without limitation, the Westings Corporate Community
Association covenants and guidelines and the CityGate Centre
Association covenants and guidelines, (c) comply with all
insurance requirements applicable to the Premises, and
(d) indemnify and hold Landlord harmless from any loss, cost,
claim or expense which Landlord incurs or suffers by reason of
Tenant’s failure to comply with its
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obligations under clauses (a), (b) or (c) above. If
Tenant receives notice of any such directive, order citation or of
any violation of any law, order, ordinance, regulation or any
insurance requirement, Tenant shall promptly notify Landlord in
writing of such alleged violation and furnish Landlord with a copy
of such notice.
Section 12.3 Hazardous
Substances : Except for Hazardous Substances (as
hereinafter defined) which are a part of or contained in customary
office supplies and/or equipment, and then only if used, stored and
disposed of in accordance with the manufacturer’s
instructions and all applicable laws, codes, regulations, orders
and ordinances; Tenant shall not, nor shall Tenant permit any third
party, to use, store, generate, treat, release or dispose at, on or
under the Premises, Building or Land, any Hazardous Substance, and
any such action shall constitute a default under this Lease. Tenant
shall indemnify, defend and hold Landlord, any managing agents and
leasing agents of the Building, and their respective agents,
partners, officers, directors and employees, harmless from all
damages, costs, losses, expenses (including, but not limited to,
attorneys’ fees, consulting fees and engineers’ fees)
arising from or attributable to any breach by Tenant of the
covenants contained in this Section 12.3 .
Tenant’s indemnification obligations hereunder shall survive
the termination or expiration of this Lease. As used herein, the
term “ Hazardous Substance ” shall mean any
substance, material, waste, gas or particulate matter which is
regulated by any local governmental authority, the State of
Illinois, or the United States Government, including, but not
limited to (i) any material or substance which is defined or
designated as a “hazardous waste,” “hazardous
material,” “hazardous substance,”
“extremely hazardous waste,” or “restricted
hazardous waste” under any provision of Illinois or federal
law; (ii) oil or petroleum; (iii) asbestos and
asbestos-containing materials; (iv) polychlorinated biphenyls;
and (v) radioactive material.
ARTICLE 13 — DEFAULT AND REMEDIES
Section 13.1 Events of
Default : The occurrence of any one or more of the
following events shall constitute an “ Event of
Default ” of Tenant under this Lease: (a) if Tenant
fails to pay any Rent hereunder and such failure continues for
three (3) Business Days after Tenant receives written notice
of such failure; (b) if Tenant permits to be done anything
which creates a lien upon the Premises and fails to discharge or
bond such lien after a thirty (30) day cure period, or post
such security with Landlord as is required by
Article 11 ; (c) if Tenant violates the provisions
of Article 8 by attempting to make an unpermitted
assignment or sublease; (d) if Tenant fails to maintain in
force all policies of insurance required by this Lease and such
failure shall continue for more than ten (10) days after
Landlord gives Tenant notice of such failure; (e) if any
petition is filed by or against Tenant or any guarantor of this
Lease under any present or future section or chapter of the
Bankruptcy Code, or under any similar law or statute of the United
States or any state thereof (which, in the case of an involuntary
proceeding, is not permanently discharged, dismissed, stayed, or
vacated, as the case may be, within sixty (60) days of
commencement), or if any order for relief shall be entered against
Tenant or any guarantor of this Lease in any such proceedings;
(f) if Tenant or any guarantor of this Lease becomes insolvent
or makes a transfer in fraud of creditors or makes an assignment
for the benefit of creditors; (g) if a receiver, custodian, or
trustee is appointed for the Premises or for all or substantially
all of the assets of Tenant or of any guarantor of this Lease,
which appointment is not vacated within sixty (60) days
following the date of such appointment; or (h) if Tenant
fails to perform or observe any other terms of this Lease and such
failure shall continue for more than thirty (30) days after
Landlord gives Tenant written notice of such failure, unless such
failure cannot be reasonably cured in said thirty (30) day
period, in which case it shall not be considered an Event of
Default as long as Tenant commences said cure within the thirty
(30) day period and diligently and continuously pursues and
completes the same; provided, however, that in any event such
extended cure period shall not exceed ninety (90) days).
Notwithstanding anything contained herein to the contrary, if
Tenant’s failure to perform or observe any terms of this
Lease involves an emergency, a hazardous situation or threatens
life or safety then Tenant shall cure said default immediately upon
becoming aware of said failure.
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Section 13.2
Remedies : Upon the occurrence of any Event of
Default, Landlord shall have the right, at Landlord’s option,
to elect to do any one or more of the following without further
notice or demand to Tenant: (a) terminate this Lease, in which
event Tenant shall immediately surrender the Premises to Landlord,
and, if Tenant fails to so surrender, Landlord shall have the
right, without notice or demand, to enter upon and take possession
of the Premises and to expel or remove Tenant and its effects
without being liable for prosecution or any claim for damages
therefor; and Tenant shall, and hereby agrees to, indemnify
Landlord for all loss and damage which Landlord suffers by reason
of such termination, including damages in an amount equal to the
total of (1) the costs of recovering the Premises and all
other expenses incurred by Landlord in connection with
Tenant’s default; (2) the unpaid Rent earned as of the
date of termination, plus interest at the Interest Rate;
(3) the total Rent which Landlord would have received under
this Lease for the remainder of the Term, but discounted to the
then present value at a rate of eight percent (8%) per annum, minus
the fair market rental value on a net basis of the balance of the
Term as of the time of such default, discounted to the then present
value at a rate of eight percent (8%) per annum (but in no event
shall the result thereof be less than zero for the purposes of this
Section); and (4) all other sums of money and damages owing by
Tenant to Landlord; or (b) enter upon and take possession of
the Premises without terminating this Lease and without being
liable to prosecution or any claim for damages therefor, and, if
Landlord elects, relet the Premises on such terms as Landlord deems
advisable, in which event Tenant shall pay to Landlord on demand
the cost of repossession, renovating, repairing and altering the
Premises for a new tenant or tenants and any deficiency between the
Rent payable hereunder and the rent paid under such reletting;
provided, however, that Tenant shall not be entitled to any excess
payments received by Landlord from such reletting. Landlord’s
failure to relet the Premises shall not release or affect
Tenant’s liability for Rent or for damages; or (c) enter
the Premises without terminating this Lease and without being
liable for prosecution or any claim for damages therefor and
maintain the Premises and repair or replace any damage thereto or
do anything for which Tenant is responsible hereunder. Tenant shall
reimburse Landlord immediately upon demand for any reasonable
expenses which Landlord incurs in thus effecting Tenant’s
compliance under this Lease, and Landlord shall not be liable to
Tenant for any damages with respect thereto.
Section 13.3 No Implied
Acceptance of Surrender : No agreement to accept a
surrender of the Premises and no act or omission by Landlord or
Landlord’s agents during the Term shall constitute an
acceptance or surrender of the Premises unless made in writing and
signed by Landlord. No re-entry or taking possession of the
Premises by Landlord shall constitute an election by Landlord to
terminate this Lease unless a written notice of such intention is
given to Tenant. No provision of this Lease shall be construed as
an obligation upon Landlord to mitigate Landlord’s damages
under the Lease, except to the extent required by applicable
law.
Section 13.4 No
Waiver : No provision of this Lease shall be deemed to have
been waived by Landlord unless such waiver is in writing and signed
by Landlord. Landlord’s acceptance of Rent following an Event
of Default hereunder shall not be construed as a waiver of such
Event of Default. No custom or practice which may grow up between
the parties in connection with the terms of this Lease shall be
construed to waive or lessen Landlord’s right to insist upon
strict performance of the terms of this Lease, without a written
notice thereof to Tenant from Landlord.
Section 13.5 Rights
Cumulative : The rights granted to Landlord in this
Article 13 shall be cumulative of every other right or
remedy provided in this Lease or which Landlord may otherwise have
at law or in equity or by statute, and the exercise of one or more
rights or remedies shall not prejudice or impair the concurrent or
subsequent exercise of other rights or remedies or constitute a
forfeiture or waiver of Rent or damages accruing to Landlord by
reason of any Event of Default under this Lease. Tenant agrees to
pay to Landlord all costs and expenses incurred by Landlord in
connection with an Event
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of
Default and the enforcement of this Lease, including all
attorneys’ fees incurred in connection with the collection of
any sums due hereunder or the enforcement of any right or remedy of
Landlord.
ARTICLE 14 — INSURANCE
Section 14.1 Tenant
Insurance Requirements : Tenant, at its sole expense, shall
obtain and keep in force during the Term the following insurance:
(a) “All Risk” insurance insuring the Leasehold
Improvements, Tenant’s interest in the Premises and all
property located in the Premises, including Tenant’s
Property, Specialty Alterations, supplies, leasehold improvements
and alterations (collectively, “ Tenant’s Premises
Property ”), in an amount equal to the full replacement
value, it being understood that no lack or inadequacy of insurance
by Tenant shall in any event make Landlord subject to any claim by
virtue of any theft of or loss or damage to any uninsured or
inadequately insured property; (b) Business Interruption
insurance in an amount that will reimburse Tenant for direct or
indirect loss of earnings attributable to all perils insured
against under this Section 14.1 or attributable to the
prevention of access to the Premises by civil authority; and
sufficient to reimburse Tenant for Rent in the event of a casualty
to, or temporary taking of, the Building or the Premises;
(c) Commercial General Public Liability insurance including
personal injury, bodily injury, broad form property damage,
products and completed operations liability, contractual liability,
coverage to include contractors and subcontractors, with a cross
liability clause and a severability of interests clause, in limits
not less than $3,000,000.00, inclusive, per occurrence;
(d) Workers’ Compensation, in form and amount as
required by applicable law, including Employer’s Liability
insurance of not less than $1,000,000.00; and (e) if Tenant
performs any repairs or alterations in the Premises, during the
period such repairs or alterations are being performed,
Builder’s Risk insurance on an “All Risk” basis
(including collapse) on a completed value (non-reporting) form for
full replacement value covering all work incorporated in the
Building and all materials and equipment in or about the Premises;
and (f) any other form or forms of insurance or any changes or
endorsements to the insurance required herein as Landlord, or any
mortgagee or lessor of Landlord, may reasonably require, from time
to time, in form or in amount; provided that such additional
insurance requirements shall be consistent with the requirements
imposed on other tenants at the Building who are similar in size to
Tenant and who use their premises for similar uses. Tenant shall
have the right to include the insurance required by this
Section 14.1 under Tenant’s policies of
“blanket insurance,” provided that no other loss which
may also be insured by such blanket insurance shall affect the
insurance coverages required hereby and further provided that
Tenant delivers to Landlord a certificate specifically stating that
such coverages apply to Landlord, the Premises and the Project. All
such policies of insurance and certificates thereof shall name
Tenant as named insured thereunder and shall name Landlord and all
mortgagees and lessors of Landlord of which Tenant has been
notified, as additional insureds, all as their respective interest
may appear. All such policies or certificates shall be issued by
insurers reasonably acceptable to Landlord and in form reasonably
satisfactory to Landlord. Tenant shall deliver to Landlord
certificates by the Commencement Date and, with respect to renewals
of such policies, not later than ten (10) days prior to the
end of the expiring term of coverage. All policies of insurance
shall be primary and Tenant shall not carry any separate or
additional insurance concurrent in form or requiring contribution
in the event of any loss or damage with any insurance maintained by
Landlord. All such policies and certificates shall contain an
agreement by the insurers that the policies will not be invalidated
as they affect the interests of Landlord and Landlord’s
mortgagees by reason of any breach or violation of warranties,
representations, declarations or conditions contained in the
policies and that the insurers shall notify Landlord and any
mortgagee or lessor of Landlord in writing, by Registered U.S.
mail, return receipt requested, not less than thirty (30) days
before any material reduction in coverage, cancellation, including
cancellation for nonpayment of premium (10 day notice) or
other termination thereof and shall include a clause or endorsement
denying the insurer any rights of subrogation against Landlord.
Landlord represents that prior to execution of this Lease, Landlord
has reviewed and approved Tenant’s form of insurance for the
Premises as required by this Section. The foregoing representation
shall not affect Landlord’s rights under Subsection 14.1(f)
above.
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Section 14.2 Landlord
Insurance Requirements : Landlord shall insure the Building
against damage with casualty and commercial general public
liability insurance, all in such amounts and with such deductible
as Landlord reasonably deems appropriate provided such coverages
and amounts shall be consistent with insurance maintained by other
landlords in similar office buildings in the Naperville, Illinois
area. Such insurance shall include “All Risk” property
insurance on the Project (exclusive of leasehold improvements)
against damages or loss in an amount equal to the full replacement
value. Notwithstanding any contribution by Tenant to the cost of
insurance premiums, as provided hereinabove, Landlord shall not be
required to carry insurance of any kind on Tenant’s Premises
Property, and Tenant hereby agrees that Tenant shall have no right
to receive any proceeds from any insurance policies carried by
Landlord.
Section 14.3 Negative
Covenant : Tenant shall not conduct or knowingly permit to
be conducted in the Premises any activity, or place any equipment
in or about the Premises or the Building, which will invalidate the
insurance coverage in effect or increase the rate of “All
Risk” property insurance or other insurance on the Premises
or the Building, and Tenant shall comply with all requirements and
regulations of Landlord’s casualty and liability insurer. If
any invalidation of coverage or increase in the rate of property
insurance or other insurance occurs or is threatened by any
insurance company due to any act or omission by Tenant, or its
agents, employees, representatives, or contractors, such statement
or threat shall be conclusive evidence that the increase in such
rate is due to such act of Tenant or the contents or equipment in
or about the Premises, and, as a result thereof, Tenant shall be
liable for such increase and shall be considered Additional Rent
payable with the next monthly installment of Base Rent due under
this Lease. Notwithstanding the foregoing, if the insurer is
threatening invalidation of coverage or an increase in rate,
Landlord shall deliver written notice of such threatened
invalidation or increase in rate to Tenant promptly upon Landlord
becoming aware of same and Tenant shall immediately cease all
actions which form the basis of the threatened invalidation or
increase in coverage. In no event shall Tenant introduce or permit
to be kept on the Premises or brought into the Building any
dangerous, noxious, radioactive or explosive substance.
Section 14.4 Waiver of
Subrogation : Landlord and Tenant each hereby waive any
right of subrogation and right of recovery or cause of action for
injury or loss (i) to the extent that such injury or loss is
covered by fire, extended coverage, “All Risk” or
similar policies covering real property or personal property (or
which would have been covered if Tenant or Landlord, as the case
may be, was carrying the insurance required by this Lease) and
(ii) including death or disease to respective employees of
either as covered by Workers’ Compensation (or would have
been covered if Tenant or Landlord, as the case may be, was
carrying the insurance required by this Lease). Said waivers shall
be in addition to, and not in limitation or derogation or, any
other waiver or release contained in this Lease. Written notice of
the terms of the above mutual waivers shall be given to the
insurance carriers of Landlord and Tenant if necessary to ensure
the enforcement of said
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