Exhibit 10.1
LEASE AGREEMENT
THIS
LEASE AGREEMENT (“ Lease ”) is made as
of this 4 th day of December, 2007, by and between
FDG Flagler Center I LLC , a Delaware limited liability
company, an address of which is 10151 Deerwood Park Boulevard,
Building 100, Suite 330, Jacksonville, Florida 32256 (“
Landlord ”) and Website Pros, Inc. , a
Delaware corporation, an address of which is 12735 Gran Bay Parkway
West, Building 200, Suite 100, Jacksonville, Florida 32258
(“ Tenant ”).
1.
PROPERTY; TERM.
1.1
PREMISES. The
Landlord hereby leases to the Tenant and the Tenant hereby leases
from the Landlord the building
located at 12808 Gran Bay Parkway West, Jacksonville, Florida 32258
(“ Premises ” or “ Building
”), which Premises is deemed to contain 112,306 rentable
square feet for all purposes of this Lease. The Premises is
situated on the real property described in Exhibit A attached hereto (“
Property ”) and included in a multiple building,
business and/or industrial park known as Flagler Center (“
Park ”).
1.1.1
PHASE IN.
Tenant intends to occupy the
Building in two phases. The first phase shall consist of at
least 82,682 rentable square feet (the “ Phase I
Premises ”), and the second phase shall consist of the
remaining rentable square footage of the Building (the “
Phase II Premises ”). The location and
configuration of the space to be included in each phase shall be
set forth in Tenant’s Plans (as defined in the Work
Letter).
1.2
COMMON AREAS.
Tenant and its employees and customers will have the nonexclusive
right during the Term of this Lease to use the parking areas,
streets, driveways, aisles, sidewalks, curbs, delivery passages,
loading areas, lighting facilities, and all other areas in the
Property designated by Landlord, from time to time, for use by all
tenants of the Property in common (collectively, the “
Common Areas ”), in common with Landlord, other
tenants of the Property and other persons designated by
Landlord.
1.3
LEASE TERM. The term
of this Lease (the “ Term ”) shall be one
hundred thirty-two (132) calendar months plus the portion of the
month in which the Phase I Commencement Date (as defined below)
occurs if the Phase I Commencement Date is other than the first day
of the month. The Term shall commence as to the Phase I
Premises on the 14 th day following the date of
Substantial Completion of the Tenant Improvements to the Phase I
Premises, as defined in the Work Letter (the “ Phase I
Commencement Date ”), which is estimated to be
April 1, 2008; provided, however, that Tenant shall have no
right to possession of the Phase I Premises until the Security
Deposit has been delivered to Landlord (the Security Deposit shall
not be deemed delivered to Landlord if it is in the form of a check
until that check has cleared the bank and funds have been credited
to Landlord’s account) and the Tenant has provided Landlord
with a certificate of insurance evidencing the insurance coverages
that Tenant is obligated to maintain pursuant to this
Lease. The Term shall commence as
to the Phase II Premises on the earlier to occur of (i) the
first day of the thirteenth (13 th ) full calendar month
of the Term, or (ii) as to any portion of the Phase II Premises,
on the date that Tenant
takes possession of such
portion of the Phase II Premises, and opens for the conduct of
business operations therein (other than any de minimis
use)
1
(the “ Phase II Commencement Date
”). Landlord and Tenant shall execute a
Commencement Agreement substantially in the form of Exhibit C attached hereto once the
Phase I Commencement Date has been determined, and shall supplement
such Commencement Agreement, as needed, to document any early Phase
II Commencement Date(s).
1.4
HOLDOVER OF CURRENT
LEASE. Landlord and Tenant entered into that certain Lease
Agreement dated as of January 17, 2003, as amended by that
certain First Amendment to Lease dated as of November 23, 2005
(together, the “ Current Lease ”) for the lease
of Suite 100, which is deemed to contain 41,149 rentable
square feet, in Flagler Center Building 200, which is located at
12735 Gran Bay Parkway West, Jacksonville, Florida 32258. The
Termination Date, as defined in Section 1.3 of the Current
Lease, is hereby extended to the Phase I Commencement Date (the
“ Extended Term ”). During the Extended
Term, Tenant shall continue to pay Base Rent at the rate of
$41,251.87 per month ($12.03 per rentable square foot per
year).
1.5
RENEWAL TERM. Tenant
shall have the option to renew this Lease as set forth in the
attached Renewal Rider.
2.
RENT AND OTHER
CHARGES.
2.1
BASE RENT. Tenant
agrees to pay rent (“ Base Rent ”) in equal
monthly installments on the first day of each month of the term,
together with any and all rental, sales or use taxes levied by any
governmental body for the use or occupancy of the Premises and any
rent or other charges payable hereunder in accordance with the
following schedule:
|
Lease
Months
|
|
Annual Base Rent/
RSF
|
|
Monthly Base Rent
|
|
|
|
|
|
|
|
|
|
1-4
|
|
$
|
0.00
|
|
$
|
0.00
|
|
|
5-12
|
|
$
|
14.25
|
|
$
|
98,184.88
|
*
|
|
13-24
|
|
$
|
14.68
|
|
$
|
137,387.67
|
|
|
25-36
|
|
$
|
15.12
|
|
$
|
141,505.56
|
|
|
37-48
|
|
$
|
15.57
|
|
$
|
145,717.04
|
|
|
49-60
|
|
$
|
16.04
|
|
$
|
150,115.69
|
|
|
61-72
|
|
$
|
16.52
|
|
$
|
154,607.93
|
|
|
73-84
|
|
$
|
17.02
|
|
$
|
159,287.34
|
|
|
85-96
|
|
$
|
17.53
|
|
$
|
164,060.35
|
|
|
97-108
|
|
$
|
18.05
|
|
$
|
169,020.53
|
|
|
109-120
|
|
$
|
18.59
|
|
$
|
174,074.30
|
|
|
121-132
|
|
$
|
19.15
|
|
$
|
179,315.25
|
|
*
Calculated based upon 82,682
rentable square feet.
2
If the Phase I
Commencement Date should be a date other than the first day of a
calendar month, then the first installment of Base Rent shall be
prorated by multiplying the regular monthly installment of Base
Rent by a fraction, the numerator of which is the number of days
from the Phase I Commencement Date through the final day of the
first calendar month of the Term and the denominator of which is
the total number of days in the calendar month in which the Phase I
Commencement Date occurs (and Tenant shall pay such prorated Base
Rent amount to Landlord together with, and at such time as, the
installment of Base Rent for the fifth (5 th ) full
calendar month of the Term becomes due). In such event, Lease Month
1 would commence on the first day of the calendar month following
the month in which the Phase I Commencement Date occurs.
Base Rent shall be paid
without demand, set off or deduction to Landlord at P.O. Box
862614, Orlando, Florida 32886-2614 or such other address as
Landlord directs in writing.
2.2
LATE CHARGES. If any
Base Rent or other payment due under this Lease is not received by
Landlord within ten (10) days of the due date of such payment,
Tenant shall pay, in addition to such payment a late charge equal
to the greater of (i) five percent (5.0%) of the payment which
is past due or (ii) Two Hundred Fifty and No/100 Dollars
($250.00). If any payment due from Tenant shall remain
overdue for more than ten (10) days, interest shall accrue
daily on the past due amount from the date such amount was due
until paid or judgment is entered at a rate equivalent to the
lesser of eighteen percent (18%) per annum and the highest rate
permitted by law. Interest on the past due amount shall be in
addition to and not in lieu of the five percent (5.0%) late charge
or any other remedy available to Landlord (“ Default
Rate ”).
2.3
ADDITIONAL RENT. All
charges payable by Tenant under the terms of this Lease other than
Base Rent are called “ Additional Rent .”
Unless this Lease provides otherwise, all Additional Rent shall be
paid with the next monthly installment of Base Rent and shall
include all applicable sales or use taxes. The term “
Rent ” shall mean Base Rent and Additional
Rent.
2.4
TAXES.
2.4.1
Personal Property
Taxes .
Commencing upon the Phase I Commencement Date, Tenant shall pay, as
and when due, all taxes attributable to the personal property,
trade fixtures, business, occupancy, or sales of Tenant.
2.4.2
Real Estate
Taxes .
Commencing upon the Phase I Commencement Date, Tenant shall pay, as
and when due, all real estate taxes, personal property taxes and
other ad valorem taxes, and any other levies, charges, local
improvement rates, impositions and assessments whatsoever assessed
or charged against the Property and/or the Building, the equipment
and improvements therein contained which are part of the Building,
and including any amounts assessed or charged in substitution for
or in lieu of any such taxes (collectively, “ Real Estate
Taxes ”), levied or assessed against the Property and/or
the Building by any lawful authority for each calendar year or
portion thereof during the period between the Phase I Commencement
Date and the expiration of the Term. Landlord shall provide
Tenant with all tax bills which are the Tenant’s
responsibility hereunder and such payments shall be made by Tenant
directly to the taxing authorities prior to any delinquency.
Tenant shall provide Landlord with paid tax receipts or, if not
available, other proof of payment reasonably acceptable to
Landlord,
3
on
or before the date that the Real Estate Taxes would be deemed to be
delinquent (i.e., the date that penalties would start to
accrue). If Tenant does not pay Real Estate Taxes by the
aforesaid date, Landlord shall have the right to pay the Real
Estate Taxes and Tenant shall reimburse Landlord within thirty (30)
days of receipt of demand for payment by Landlord. The Real
Estate Taxes are to be prorated for any partial lease year
occurring at the beginning or end of the Term during the period in
which the taxing authority assesses Real Estate Taxes. In the
event that Tenant does not pay Real Estate Taxes prior to
delinquency for any calendar year due to any act or omission of
Tenant, then Landlord shall have the right to thereafter elect to
pay the Real Estate Taxes for the remainder of the Term of the
Lease; whereupon Tenant shall promptly reimburse Landlord within
thirty (30) days after written demand therefor from Landlord to
Tenant.
2.4.3
Contesting
Taxes .
If Tenant desires, as determined by Tenant in its reasonable
business judgment, to contest the validity or amount of any tax,
assessment, levy, or other governmental charge agreed to in this
Lease to be paid by Tenant, Tenant shall be permitted to do so,
upon posting of adequate security or the payment of amounts, all as
may be required by Applicable Laws (as defined in Section 3.2
hereof), to prevent loss of title to the Property and the Building
and after giving Landlord prior written notice of Tenant’s
intent to contest the taxes for the applicable year. So long
as Tenant complies with the foregoing, Landlord shall cooperate
with Tenant (at no expense to Landlord) and execute any document
which may be reasonably necessary for any such contest
proceeding. Nothing herein shall be deemed to limit
Landlord’s right to contest any tax, assessment, levy or
government charge imposed against the Property and/or the Building,
which right, with respect to ad valorem real property taxes, shall
be exercised by Landlord in its reasonable business judgment.
The foregoing restriction on Tenant’s ability to contest the
validity or amount of any tax, assessment, levy, or other
governmental charge agreed to in this Lease to be paid by Tenant
shall only be deemed to apply to Real Estate Taxes and shall not be
deemed to apply to any personal property taxes, which are payable
by Tenant on its personalty in the Premises.
2.4.4
Receipts
. Upon written
request of Landlord, during the Term of this Lease, Tenant shall
obtain and deliver to Landlord paid receipts for all taxes,
assessments, and other items required under this Lease to be paid
by Tenant.
2.4.5
Exclusions
. Real Estate Taxes
shall not include any franchise, transfer, gains, inheritance,
estate, mortgage recording, and income taxes imposed upon
Landlord.
2.4.6
Separate Parcel . Landlord shall, at its expense,
apply for and diligently follow such procedures as are necessary to
have the Property (including the Building) taxed by the applicable
governmental authorities as a parcel separate from the other
parcel(s) included in Landlord’s tax bills, so that
Tenant will be in a position to pay and/or contest Real Estate
Taxes on its own, subject to the terms of this
Section 2.4. If the Property and the Building are taxed
or assessed as a separate parcel, Landlord shall direct the tax
authority to send the tax bills for the Property and the Building
directly to Tenant’s address during the Term hereof. If
the Property and/or the Building are not taxed or assessed as a
separate parcel, then: (a) Tenant’s share of Real
Estate Taxes shall be determined by multiplying such taxes or
assessments in the entire tax bill by a fraction, the numerator of
which is the total value of the Property and the Building and the
denominator of which is the total value of all land included in the
tax bill, and Landlord shall
4
provide such
determination to Tenant in writing, together with a copy of the
applicable tax bill, no later than thirty (30) days prior to the
due date of such Real Estate Taxes for the applicable
year.
2.4.7
Tax Credits . Any tax credits or other municipal,
county, or state incentives received as part of the Governmental
Incentives (as defined in Section 11.24) or similar incentives
shall inure to the benefit of the Tenant.
2.5
ELECTRICITY. Commencing upon the Phase I Commencement Date,
Tenant shall pay for all costs and fees incurred in connection with
the provision and use of electricity at the Building, including,
without limitation, the parking areas therefor, as separately
metered in Tenant’s name.
2.6
OPERATING EXPENSES.
2.6.1
Tenant Operating Expenses
. Except as
otherwise expressly set forth in this Lease, from and after the
Phase I Commencement Date, Tenant shall be solely responsible, at
Tenant’s sole cost and expense, for the maintenance,
operation, repair, replacement (regardless of whether such
replacement is required under any Applicable Law that was not in
effect or not applicable to the Premises or the Park on the Phase I
Commencement Date) and administration of the Building and the
Property, including, without limitation: (i) water, sewer,
gas, and other utility charges (including electricity charges, as
provided above) for the Building and the Property; and
(ii) window washing, janitorial services (to be provided in
the manner that such services are customarily furnished in
comparable office buildings in the area), rest room supplies and
other maintenance expenses in connection with the Building
(collectively, the “ Tenant Operating Expenses
”). It is
understood that Tenant may desire, at some point during the Term,
to maintain all or portions of the Building Systems (as defined in
Section 7.1) in lieu of Landlord providing such services
pursuant to Section 7.1 of this Lease. In such event,
Landlord and Tenant shall negotiate in good faith regarding
(i) the Buildings Systems to be maintained by Tenant and the
reasonable performance standards relating thereto, (ii) the
timing of any such transition of maintenance obligations, and
(iii) the reasonable and appropriate adjustments of the
operating expense and maintenance provisions of this
Lease.
2.6.2
Landlord Operating Expenses
. In addition,
Tenant shall be responsible to reimburse and/or pay Landlord for
the following expenses: (i) insurance that the Landlord is
obligated or permitted to obtain under this Lease and any
deductible amount applicable to any claim made by the Landlord
under such insurance; (ii) ninety percent (90%) of
Landlord’s equitable allocation to the Building (which
allocation is based upon the duties associated with a “full
service” lease) of wages and benefits payable to those
employees of Landlord and Landlord’s property manager whose
duties are directly connected with the property management of the
Building or the Property, including, without limitation, the
operation and maintenance thereof, which allocation shall not
exceed $0.40 per rentable square foot of the Building for calendar
year 2008; (iii) the dues and assessments under any applicable
deed restrictions or declarations of covenants and conditions;
(iv) landscaping, ground maintenance and pest control for the
Building and the Property; and (v) a management fee equal to
three percent (3%) of the
5
annual Rent for the Building (collectively, the
“ Landlord Operating Expenses ”).
Additionally, the cost
of Landlord’s Maintenance Obligations (as defined in
Section 7.1) (excluding any costs for capital improvements)
shall also be included in Landlord Operating Expenses.
2.6.3
Payment of Landlord Operating Expenses . In addition
to the payment of Base Rent, commencing on the Phase I Commencement
Date, Tenant shall pay one hundred percent (100%) of the Landlord
Operating Expenses to Landlord. On or before March 31st
of each calendar year, Landlord shall provide a good faith estimate
of the Landlord Operating Expenses for that calendar year (the
“ Estimate Statement ”). Tenant shall
remit monthly one-twelfth (1/12 th ) of the amount set
forth in the Estimate Statement (the “ Estimated
Payment ”) as Additional Rent together with its payments
of Base Rent; provided that Landlord may invoice Tenant
retroactively for the months of January through the month of
issuance of the Estimate Statement. On or before
March 31 st of each calendar year, Landlord shall
send a statement to Tenant detailing all actual Landlord Operating
Expenses for the prior calendar year (the “ Landlord
Operating Expense Statement ”). If the Landlord
Operating Expense Statement indicates that the total Estimated
Payments made by Tenant during the preceding year exceeded the
actual Landlord Operating Expenses for such year, then, at
Landlord’s option (except upon the expiration of the Term,
whereupon a refund shall automatically be given, if applicable),
Tenant shall be given either: (i) a credit against its next
due Estimated Payment, or (ii) a refund, in the amount of the
difference between the Estimated Payments made in the preceding
year and the actual Landlord Operating Expenses for such
year. If the Landlord Operating Expense Statement indicates
that the actual Landlord Operating Expenses exceeded the Estimated
Payments, then Tenant shall remit the difference to Landlord as
Additional Rent within thirty (30) days after Tenant’s
receipt of the applicable Landlord Operating Expense Statement.
Landlord’s failure to provide a statement shall not
prejudice Landlord’s right to collect a shortfall or
Tenant’s right to receive a credit or refund for over
payments. Any obligation of Landlord or Tenant to remit any
overpayment or underpayment pursuant to this Section shall
survive the expiration of the Term or earlier termination of this
Lease.
3.0
USE OF PROPERTY.
3.1
PERMITTED USES.
Tenant may use the Premises only for the following Permitted Use:
general office (which includes, but is not limited to, use of the
Premises as a call, technology and operations center), unless
Landlord gives written consent in advance of any other use of the
Premises, which consent may be withheld in Landlord’s sole
discretion. Landlord represents that, to the best of its
knowledge, the Applicable Laws permit the Premises to be used for
the Permitted Use. Tenant shall not create a nuisance or use
the Premises for any illegal or immoral purpose.
3.2
COMPLIANCE WITH LAWS.
During the Term, Tenant shall comply with all federal, state
and local laws, ordinances, building codes, and rules and
regulations of governmental entities having jurisdiction over the
Property and/or the Building, including but not limited to the
Board of Fire Underwriters and the Americans with Disabilities Act
(the “ ADA ”) and all regulations and orders
promulgated pursuant to the ADA (collectively, “
Applicable
6
Laws ”) , and shall promptly comply with all
governmental orders and directives for the correction, prevention,
and abatement of any violation of Applicable Laws in, upon, or
connected with the Property and/or the Building, all at
Tenant’s sole expense. Tenant warrants that all
improvements or alterations of the Premises made by Tenant or
Tenant’s employees, agents or contractors, either prior to
Tenant’s occupancy of the Premises or during the Term, will
comply with all Applicable Laws. Tenant will procure at its
own expense all permits and licenses required for the transaction
of its business in the Premises. In addition, Tenant warrants
that its use of the Premises will be in strict compliance with all
Applicable Laws. During the Term, Tenant shall, at its sole
cost and expense, make any modifications to the Premises, the
Building and/or the Property that may be required pursuant to any
Applicable Laws. Notwithstanding the foregoing to the
contrary, Landlord shall be solely responsible, at
Landlord’s expense, for making any modifications to the
Premises, the Building and/or the Property required as a result of
Landlord’s failure to comply with Applicable Laws in
connection with Landlord’s obligations under the Work
Letter.
3.3
HAZARDOUS MATERIAL.
T hroughout the Term, Tenant will prevent the presence, use,
generation, release, discharge, storage, disposal, or
transportation of any Hazardous Materials (as hereinafter defined)
on, under, in, above, to, or from the Premises, except that
Hazardous Materials may be used in the Premises as necessary for
the customary maintenance of the Premises provided that same are
used, stored and disposed of in strict compliance with Applicable
Laws. For purposes of this provision, the term “
Hazardous Materials ” will mean and refer to any
wastes, materials, or other substances of any kind or character
that are or become regulated as hazardous or toxic waste or
substances, or which require special handling or treatment, under
any Applicable Laws.
If Tenant’s
activities at the Premises or Tenant’s use of the Premises
(a) result in a release of Hazardous Materials that is not in
compliance with Applicable Laws or permits issued thereunder;
(b) gives rise to any claim or requires a response under
Applicable Laws or permits issued thereunder; (c) causes a
significant public health effect; or (d) creates a nuisance,
then Tenant shall, at its sole cost and expense:
(i) immediately provide verbal notice thereof to Landlord as
well as notice to Landlord in the manner required by this Lease,
which notice shall identify the Hazardous Materials involved and
the emergency procedures taken or to be taken; and
(ii) promptly take all action in response to such situation
required by Applicable Laws, provided that Tenant shall first
obtain Landlord’s approval of the non-emergency remediation
plan to be undertaken.
Tenant shall at all times indemnify and hold
harmless Landlord against and from any and all claims, suits,
actions, debts, damages, costs, losses, obligations, judgments,
charges and expenses (including reasonable attorneys’ fees)
of any nature whatsoever suffered or incurred by Landlord to the
extent they were caused by the following activities of Tenant at
the Building and/or the Property during the Term of this Lease and
arise from events or conditions which came into existence after the
Phase I Commencement Date: (i) any release, threatened
release, or disposal of any Hazardous Materials at the Building
and/or the Property, or (ii) the violation of any Applicable
Laws at the Building and/or the Property, pertaining to protection
of the environment, public health and safety, air emissions, water
discharges, hazardous or toxic substances, solid or hazardous
wastes or occupational health and safety.
7
3.4
SIGNS AND
AUCTIONS. Subject
to the following provisions of this paragraph, Tenant shall be
entitled to two (2) signs on the exterior façade of the
Building, and one (1) monument sign outside of the
Building. Prior to installation of the signs, Tenant shall
submit a drawing of the proposed signs, which shall detail the
size, color, design, lighting and method of attachment to the
Building, to Landlord for approval, which shall not be unreasonably
withheld. After Landlord has approved Tenant’s signs,
Tenant shall cause the signs to be manufactured at its sole
expense. Landlord shall arrange for installation of the
signs, at Tenant’s expense, with the exact placement of the
signs subject to Landlord’s prior approval, which shall not
be unreasonably withheld. Tenant shall not place any other signs on
the Building or Park except with the prior written consent of the
Landlord, including consent as to location and design, which may be
withheld in Landlord’s sole discretion. Any and all
such approved signs shall be installed and shall be maintained by
Tenant, at its sole cost and expense and shall be in compliance
with the Rules and Regulations and all Applicable Laws.
Tenant shall be responsible to Landlord for the installation, use,
or maintenance of all signs and any damage caused thereby.
Tenant agrees to remove all signs prior to termination of the Lease
and upon such removal to repair all damage incident to such
removal. Landlord shall, at Landlord’s expense, install
directional and building identification signs at the entrances to
the Property.
3.5
ACCESS.
3.5.1
Landlord’s
Access . Landlord shall be
entitled at all reasonable times and upon reasonable notice to
enter the Premises to examine them and to make such repairs,
alterations, or improvements thereto as Landlord is required by
this Lease to make or which Landlord considers necessary.
Tenant shall not unduly obstruct any pipes, conduits, or mechanical
or other electrical equipment so as to prevent reasonable access
thereto. Landlord shall exercise its rights under this
section, to the extent possible in the circumstances, in such
manner so as to minimize interference with Tenant’s use and
enjoyment of the Premises. Landlord and its agents have the
right to enter the Premises at all reasonable times and upon
reasonable notice to show them to prospective purchasers, lenders,
or anyone having a prospective interest in the Building, and,
during the last six months of the Term or any renewal thereof, to
show them to prospective tenants. Landlord will have the
right at all times to enter the Premises without prior notice to
Tenant in the event of an emergency affecting the
Premises.
3.5.2
Tenant’s Access . Tenant shall have access to
the Premises twenty-four (24) hours per day, seven (7) days
per week, 365 days per year, subject to Applicable Laws.
3.6
QUIET POSSESSION. If
Tenant pays all Rent and fully performs all of its obligations
under this Lease, Tenant shall be entitled to peaceful and quiet
enjoyment of the Premises for the Term without interruption or
interference by Landlord or any person claiming through
Landlord.
3.7
INTENTIONALLY
DELETED.
3.8
PARKING.
Tenant shall have the right to
use 515 parking spaces associated with the Building, as shown on
attached Exhibit A-1
. Additionally, commencing on the Phase II
8
Commencement Date, Tenant shall have the right
to use up to an additional 105 parking spaces adjacent to Flagler
Center 300, in the location depicted on attached Exhibit A-1 . Alternatively,
if Nuvell Financial Services Corp. does not renew its lease of
Lakeside Four prior to the expiration thereof in
September 2009, Tenant shall have the option of using up to
105 parking spaces adjacent to Lakeside Four, in the location
depicted on attached Exhibit A-1 , in lieu of using the
parking spaces associated with Flagler Center 300.
All motor vehicles (including
all contents thereof) shall be parked in such spaces at the sole
risk of Tenant, its employees, agents, invitees and licensees, it
being expressly agreed and understood that Landlord has no duty to
insure any of said motor vehicles (including the contents thereof),
and that Landlord is not responsible for the protection and
security of such vehicles, or the contents thereof.
3.9
RULES AND REGULATIONS.
Tenant shall observe all reasonable rules and regulations
established by Landlord from time to time for the Building.
The rules and regulations in effect as of the date hereof are
attached to and made a part of this Lease as Exhibit B . Landlord will
have the right at all times to change and amend the rules and
regulations in any reasonable manner as it may deem advisable for
the safety, care and operation or use of the Park or the
Premises.
3.10
INSTALLATION OF
GENERATOR. Tenant shall have the right to install, at
Tenant’s sole cost and expense, a generator for
Tenant’s exclusive use in the location specified on
Exhibit A-2 attached
hereto. The size and type of the generator shall be subject
to Landlord’s prior written approval, which shall not be
unreasonably withheld. Tenant shall be responsible for
installation of all necessary equipment associated with the
generator as well as any screening required by Landlord, Applicable
Laws or covenants and restrictions of record. Landlord shall have
the right to require and approve screening for such generator, but
such approval shall not be deemed to be a representation or
warranty that the screening complies with Applicable Law or
covenants and restrictions of record. Tenant shall
operate, maintain and repair the generator, at Tenant’s sole
expense, in a fully operable condition and in compliance with the
manufacturer’s specifications and all Applicable Laws.
In the event that any modification to the area in which the
generator is installed, including screening thereof, is at any time
required by any Applicable Law or any covenant or restriction of
record, Tenant shall commence such modification within thirty (30)
days after receipt of notice thereof from Landlord or any
governmental agency and shall diligently pursue such modification
to completion. If Tenant fails to commence such modification
with such thirty (30) day period or diligently pursue such
modification to completion, Landlord shall be entitled to make such
modifications and charge the amount of such modifications to Tenant
as Additional Rent. Tenant shall be responsible for the cost
of any electricity used by the generator or its associated
equipment. On or before the final day of the Term, Tenant
shall remove the generator and its associated equipment from the
Property and repair any damage caused thereby. Tenant hereby
agrees to indemnify, defend and hold Landlord harmless for any and
all liabilities, claims, damages, injuries or losses, including,
without limitation, all costs, expenses, court costs and reasonable
attorney’s fees imposed on Landlord by any person whomsoever
caused by or resulting from the installation, operation,
maintenance, removal or repair of the generator or associated
equipment, except for any such liability, claim, damage, injury or
loss caused by Landlord, its employees, agents or contractors.
9
4.0
TENANT ALTERATIONS AND IMPROVEMENTS.
4.1
TENANT IMPROVEMENTS. Landlord shall construct the Tenant
Improvements in accordance with the terms of Exhibit D attached hereto (the
“ Work Letter ”). If any improvements,
modifications or alterations, beyond those specified in the Work
Letter, are required for Tenant’s occupancy of the Premises,
Tenant will be solely responsible for all associated
expenses. After the Phase I Commencement Date, if any
improvements, modifications or alterations are required by any
governmental body or due to any Applicable Law as a result of
Tenant’s use of the Premises, Tenant will be solely
responsible for all associated costs.
4.2
TENANT ALTERATIONS. Tenant will not make or allow to be made
any alterations in or to the Premises without first obtaining the
written consent of Landlord, which consent may be granted or
withheld in Landlord’s reasonable discretion; provided,
however, that Landlord’s consent shall not be required for
interior, nonstructural alterations which do not impact the
Building Systems and which cost less than $150,000.00 in the
aggregate to perform each alteration project, but Tenant shall
notify Landlord of any such interior, nonstructural
alterations. For alterations that require Landlord’s
consent, Landlord shall have ten (10) business days
within which to review any submission by Tenant to Landlord of the
plans and specifications therefor. Landlord may require
Tenant to provide demolition and/or lien and completion bonds in
form and amount satisfactory to Landlord. All Tenant
alterations will be accomplished in a good and workmanlike manner
at Tenant’s sole expense, in conformity with all Applicable
Laws by a licensed and bonded contractor approved in advance by
Landlord, such approval of contractor not to be unreasonably
withheld or delayed. All contractors performing alterations
in the Premises shall carry workers’ compensation insurance,
commercial general liability insurance, automobile insurance and
excess liability insurance in amounts reasonably acceptable to
Landlord and shall deliver a certificate of insurance evidencing
such coverages to Landlord prior to commencing work in the
Premises. Upon completion of any such work, Tenant shall
provide Landlord with “as built” plans, copies of all
construction contracts, and proof of payment for all labor and
materials. Any Tenant alterations to the Premises made by or
installed by either party hereto will remain upon and be
surrendered with the Premises and become the property of Landlord
upon the expiration or earlier termination of this Lease without
credit to Tenant; provided, however, Landlord, at it option, may
require Tenant to remove any additions and/or repair any
alterations to restore the Premises to the condition existing at
the time Tenant took possession, with all costs of removal, repair,
restoration, or alterations to be borne by Tenant. This
clause will not apply to moveable equipment, furniture or moveable
trade fixtures owned by Tenant, which may be removed by Tenant at
the end of the Lease Term if Tenant is not then in default and if
such equipment and furniture are not then subject to any other
rights, liens and interests of Landlord. Tenant will have no
authority or power, express or implied, to create or cause any
construction lien or mechanics’ or materialmen’s lien
or claim of any kind against the Premises, the Park or any portion
thereof. Tenant will promptly cause any such liens or claims
to be released by payment, bonding or otherwise within thirty (30)
days after request by Landlord, and will indemnify Landlord against
losses arising out of any such claim including, without limitation,
legal fees and court costs. NOTICE IS HEREBY GIVEN THAT
LANDLORD WILL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIAL
FURNISHED OR TO BE FURNISHED TO TENANT, OR
10
TO ANYONE
HOLDING THE PREMISES THROUGH OR UNDER TENANT, AND THAT NO
MECHANICS’ OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR
MATERIALS WILL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN THE
PREMISES. TENANT WILL DISCLOSE THE FOREGOING PROVISIONS TO
ANY CONTRACTOR ENGAGED BY TENANT PROVIDING LABOR, SERVICES OR
MATERIAL TO THE PREMISES.
5.0
INSURANCE AND INDEMNITY.
5.1
TENANT’S INSURANCE.
5.1.1.
Tenant will throughout the Term (and any other period when Tenant
is in possession of the Premises) carry and maintain, at its sole
cost and expense, the following types of insurance, which shall
provide coverage on an occurrence basis, with respect to the
Premises, in the amounts specified with deductible amounts
reasonably satisfactory to Landlord:
(a)
Commercial General Liability Insurance . Commercial
general liability (“ CGL ”) insurance covering
claims arising from personal injury, death and property damage
occurring in or about the Premises, the Building and the Common
Areas with minimum limits of $1,000,000.00 per occurrence and
$2,000,000.00 general aggregate. The CGL policy shall include
contractual liability coverage of all liabilities arising pursuant
to the Lease.
(b)
Comprehensive Automobile Liability Insurance .
Comprehensive automobile liability insurance with a limit of not
less than $1,000,000.00 per occurrence for bodily injury,
$500,000.00 per person and $100,000.00 property damage or a
combined single limit of $1,000,000 for both owned and non-owned
vehicles.
(c)
Excess Liability Insurance . Tenant shall also carry
and maintain excess liability insurance with a limit of not less
than $3,000,000.00 per occurrence.
(d)
Property Insurance . Insurance of personal property,
decorations, trade fixtures, furnishings, equipment, alterations,
leasehold improvements and betterments made by Tenant on a
replacement cost basis, with coverage equal to not less than ninety
percent (90%) of the full replacement value of all insured
property. In the event any casualty occurs, Tenant agrees to
pay the difference between the insurance coverage required to be
maintained by this subparagraph 5.1(d) and an insurance policy
offering coverage of one hundred percent (100%) of the full
replacement value of the insured property. Tenant’s
policy will also include business interruption/extra expense
coverage in sufficient amounts.
(e)
Workers’ Compensation and Employers’ Liability
Insurance . Workers’ Compensation Insurance
covering all employees of Tenant, as required by the laws of the
State of Florida, and Employers’ Liability coverage subject
to a limit of no less than $500,000 for bodily injury by accident
per accident/$500,000 for bodily injury by disease per
employee/$1,000,000 for bodily injury by disease policy limit.
11
5.1.2
Policy Form . All policies referred to above
shall: (i) be taken out with insurers licensed to do
business in Florida having an A.M Best’s rating of A-,
Class IX, or otherwise approved in advance by Landlord;
(ii) name Landlord and Landlord’s property manager as
additional insureds; (iii) be non-contributing with, and shall
apply only as primary and not as excess to any other insurance
available to the Landlord or any mortgagee of Landlord; and
(iv) contain an obligation of the insurers to notify the
Landlord by certified mail not less than thirty (30) days prior to
any material change, cancellation, or termination of any such
policy. Certificates of insurance on Acord Form 25-S on
or before the Phase I Commencement Date and thereafter at times of
renewal or changes in coverage or insurer, and if required by a
mortgagee, copies of such insurance policies certified by an
authorized officer of Tenant’s insurer as being complete and
current, shall be delivered to the Landlord promptly upon
request. If (a) the Tenant fails to take out or to keep
in force any insurance referred to in this Section 5.1, or
should any such insurance not be approved by either the Landlord or
any mortgagee, and (b) the Tenant does not commence and
continue to diligently cure such default within forty-eight (48)
hours after written notice by the Landlord to Tenant specifying the
nature of such default, then the Landlord has the right, without
assuming any obligation in connection therewith, to procure such
insurance at the sole cost of the Tenant, and all outlays by the
Landlord shall be paid by the Tenant to the Landlord without
prejudice to any other rights or remedies of the Landlord under
this Lease. The Tenant shall not keep or use in the Premises
any article that may be prohibited by any fire or casualty
insurance policy in force from time to time covering the
Building.
5.2
LANDLORD’S INSURANCE. During the Term, Landlord will
carry and maintain the following types of insurance:
(i) property insurance on the Building covering “All
Risks” perils in an amount equal to the full replacement cost
of the Building (excluding any property with respect to which the
Tenant and other tenants are obliged to insure pursuant to
Section 5.1 or similar sections of their respective leases);
and (ii) commercial general liability insurance with respect
to the Landlord’s operations in the Park
5.3
RELEASE AND WAIVER OF SUBROGATION RIGHTS. The parties hereto,
for themselves and anyone claiming through or under them, hereby
release and waive any and all rights of recovery, claim, action or
cause of action, against each other, their respective agents,
directors, officers and employees, for any loss or damage to all
property, whether real, personal or mixed, located in the Building,
by reason of any cause against which the releasing party is
actually insured or, regardless of the releasing party’s
actual insurance coverage, against which the releasing party is
required to be insured pursuant to the provisions of Sections 5.1
or 5.2. This mutual release and waiver shall apply regardless
of the cause or origin of the loss or damage, including negligence
of the parties hereto, their respective agents and employees except
that it shall not apply to willful conduct. Each party agrees
to provide the other with reasonable evidence of its insurance
carrier’s consent to such waiver of subrogation upon
request. This Section 5.3 supersedes any provision to
the contrary which may be contained in this Lease.
5.4
INDEMNIFICATION OF THE PARTIES.
5.4.1
Tenant’s Indemnity . Tenant hereby agrees to
indemnify, defend and hold harmless Landlord from and against any
and all liability for any loss, injury or damage, including,
12
without
limitation, consequential damage including, without limitation, all
costs, expenses, court costs and reasonable attorneys’ fees,
imposed on Landlord by any person whomsoever that occurs
(i) in the Premises, except for any such loss, injury or
damage that is caused by or results from the gross negligence or
willful misconduct of Landlord, its employees or agents; or
(ii) anywhere in the Park outside of the Premises as a result
of the negligence or willful misconduct of Tenant, its employees,
agents or contractors.
5.4.2
Landlord’s Indemnity . Landlord hereby
indemnifies Tenant from, and agrees to hold Tenant harmless
against, any and all liability for any loss, injury or damage,
including, without limitation, all costs, expenses, court costs and
reasonable attorneys’ fees, imposed on Tenant by any person
whomsoever, that occurs in the Building or anywhere on the Park and
that is caused by or results from the negligence or willful
misconduct of Landlord or its employees or agents except that
Landlord shall only be obligated to indemnify Tenant for damages
arising from Landlord’s negligence or willful misconduct in
the Premises .
The provisions
of this Section 5.4 shall survive the expiration or earlier
termination of this Lease.
6.
DAMAGE, DESTRUCTION AND CONDEMNATION
6.1
DESTRUCTION OR DAMAGE TO PREMISES. If the Premises are at any
time damaged or destroyed in whole or in part by fire, casualty or
other causes, Landlord shall have sixty (60) days from such damage
or destruction to determine and inform Tenant whether Landlord will
restore the Premises to substantially the condition that existed
immediately prior to the occurrence of the casualty. If
Landlord elects to rebuild, Landlord shall complete such repairs to
the extent of insurance proceeds within one hundred and eighty
(180) days from the end of the sixty (60) day period. If such
repairs have not been completed within that 180-day period, and
Tenant desires to terminate the Lease as a result thereof, then
Tenant must notify Landlord prior to Landlord’s completion of
the repairs of Tenant’s intention to terminate this
Lease. Landlord shall then have ten (10) days after
Landlord’s receipt of written notice of Tenant’s
election to terminate to complete such repairs (as evidenced by a
certificate of completion). If Landlord does complete such
repairs prior to the expiration of such ten-day cure period, Tenant
shall have no such right to terminate this Lease. Tenant
shall, upon substantial completion by Landlord, promptly and
diligently, and at its sole cost and expense, repair and restore
any improvements to the Premises made by Tenant to the condition
which existed immediately prior to the occurrence of the
casualty. If, in Landlord’s reasonable estimation, the
Premises cannot be restored within two hundred forty (240) days of
such damage or destruction, then either Landlord or Tenant may
terminate this Lease as of a date specified in such notice, which
date shall not be less than thirty (30) nor more than sixty (60)
days after the date such notice is given. Until the
restoration of the Premises is complete, ther
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