Exhibit 10.30
CANYONS
CENTER
SUMMERLIN
LAS VEGAS,
NEVADA
LEASE
AGREEMENT
between
HOWARD
HUGHES PROPERTIES,
LIMITED PARTNERSHIP
and
VENDING DATA
CORPORATION
Dated
December 29, 2006
LEASE
AGREEMENT
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TABLE OF CONTENTS
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PAGE
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ARTICLE 1
DEFINITIONS
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ARTICLE 2 LEASE
GRANT
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ARTICLE 3 LEASE
TERM
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3.1 DELIVERY OF
POSSESSION
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3.2 SUBSTANTIAL
COMPLETION OF PREMISES
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3.3 LANDLORD
DELAYS
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ARTICLE 4 USE OF PREMISES AND
COMMON AREAS
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4.1 PREMISES
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4.2 COMMON AREAS OF
BUILDING
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4.3 LANDLORD’S
RIGHTS IN COMMON AREAS
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ARTICLE 5 BASE RENT AND
ADDITIONAL RENT
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5.1 BASE
RENT
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5.2 INTENTIONALLY
OMITTED
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5.3 ADDITIONAL
RENT
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5.4 INTEREST ON LATE
PAYMENTS
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ARTICLE 6 BASE RENT
ADJUSTMENT
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ARTICLE 7 SERVICES TO BE
FURNISHED BY LANDLORD
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ARTICLE 8 IMPROVEMENTS TO BE
MADE BY LANDLORD
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ARTICLE 9 MAINTENANCE AND
REPAIR OF PREMISES BY LANDLORD
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ARTICLE 10
GRAPHICS
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ARTICLE 11 CARE OF THE
PREMISES BY TENANT
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ARTICLE 12 REPAIRS AND
ALTERATIONS BY TENANT
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ARTICLE 13 USE OF ELECTRICAL
SERVICES BY TENANT
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ARTICLE 14 LAWS AND
REGULATIONS
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14.1 GENERAL
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14.2 HAZARDOUS
MATERIALS
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14.3 CERTAIN INSURANCE
RISKS
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ARTICLE 15 BUILDING
RULES
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ARTICLE 16 ENTRY BY
LANDLORD
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ARTICLE 17 ASSIGNMENT AND
SUBLETTING
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ARTICLE 18
LIENS
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ARTICLE 19
INSURANCE
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19.1 PROPERTY
INSURANCE
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19.2 LIABILITY
INSURANCE
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19.3 REQUIREMENTS FOR
INSURANCE POLICIES
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19.4 WAIVER OF
SUBROGATION RIGHTS
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ARTICLE 20
INDEMNITY
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ARTICLE 21 PROPERTY
DAMAGE
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ARTICLE 22
CONDEMNATION
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ARTICLE 23 DAMAGES FROM
CERTAIN CAUSES
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ARTICLE 24 EVENTS OF
DEFAULT
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2
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ARTICLE 25 LANDLORD’S
REMEDIES
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ARTICLE 26 LANDLORD’S
DEFAULT
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ARTICLE 27 PEACEFUL
ENJOYMENT
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ARTICLE 28 HOLDING
OVER
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ARTICLE 29 SUBORDINATION TO
MORTGAGE
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ARTICLE 30 LANDLORD’S
LIEN
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ARTICLE 31 ATTORNEYS’
FEES
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ARTICLE 32 NO IMPLIED
WAIVER
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ARTICLE 33 PERSONAL
LIABILITY
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ARTICLE 34 SECURITY
DEPOSIT/LETTER OF CREDIT
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ARTICLE 35
NOTICE
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ARTICLE 36
SEVERABILITY
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ARTICLE 37
RECORDATION
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ARTICLE 38 GOVERNING
LAW
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ARTICLE 39 FORCE
MAJEURE
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ARTICLE 40 TIME OF
PERFORMANCE
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ARTICLE 41 TRANSFERS BY
LANDLORD
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ARTICLE 42
COMMISSIONS
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ARTICLE 43 EFFECT OF DELIVERY
OF THIS LEASE
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ARTICLE 44 CORPORATE
AUTHORITY; PARTNERSHIP AUTHORITY
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ARTICLE 45 JOINT AND SEVERAL
LIABILITY
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ARTICLE 46
INTERPRETATION
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ARTICLE 47 INCORPORATION OF
PRIOR AGREEMENTS; MODIFICATIONS
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ARTICLE 48 WAIVER OF JURY
TRIAL
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ARTICLE 49 NO
MERGER
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ARTICLE 50
COUNTERPARTS
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ARTICLE 51
EXHIBITS
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3
LIST OF
EXHIBITS
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Exhibit
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Description
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Principal Reference
“In Section/Article”
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“A”
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Legal
Description
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1.4
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“B”
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Floor Plan of the
Premises
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1.15
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“C”
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Parking
Agreement
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4.2(ii)
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“D”
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Work Letter
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8
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“E”
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Rules and
Regulations
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15
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“F”
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Commencement
Memorandum
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1.22
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4
CANYONS CENTER
LEASE
AGREEMENT
THIS LEASE
AGREEMENT (the “Lease”), is made and entered into as of
the 29th day of December , 2006, between HOWARD
HUGHES PROPERTIES, LIMITED PARTNERSHIP, a Delaware limited
partnership (“Landlord”), and VENDING DATA CORPORATION,
a Nevada corporation (“Tenant”).
W I T N E S S E T H
:
ARTICLE 1
DEFINITIONS
1.1 Intentionally
omitted.
1.2
“Allowance” shall mean an amount equal to Seven and
00/100 Dollars ($7.00) per square foot of Usable Area in the
Premises. The Premises are stipulated for all purposes to contain
six thousand one hundred thirty-five (6,135) square feet of Usable
Area.
1.3 “Base
Rent” shall be determined as follows:
(i) During months
one (1) through twelve (12) of the Lease Term, the Base
Rent shall be Thirty and 00/100 Dollars ($30.00) per year for each
square foot of Rentable Area of the Premises which is equal to Two
Hundred Eleven Thousand One Hundred Ten and 00/100 Dollars
($211,110.00) per annum.
(ii) During months
thirteen (13) through twenty-four (24) of the Lease Term,
the Base Rent shall be Thirty-One and 20/100 Dollars ($31.20) per
year for each square foot of Rentable Area of the Premises which is
equal to Two Hundred Nineteen Thousand Five Hundred Fifty-Four and
40/100 Dollars ($219,554.40) per annum.
(iii) During
months twenty-five (25) through thirty-six (36) of the
Lease Term, the Base Rent shall be Thirty-Two and 44/100 Dollars
($32.44) per year for each square foot of Rentable Area of the
Premises which is equal to Two Hundred Twenty-Eight Thousand Two
Hundred Eighty and 28/100 Dollars ($228,280.28) per
annum.
(iv) During months
thirty-seven (37) through forty-eight (48) of the Lease
Term, the Base Rent shall be Thirty-Three and 74/100 Dollars
($33.74) per year for each square foot of Rentable Area of the
Premises which is equal to Two Hundred Thirty-Seven Thousand Four
Hundred Twenty-Eight and 38/100 Dollars ($237,428.38) per
annum.
(v) During months
forty-nine (49) through sixty (60) of the Lease Term, the
Base Rent shall be Thirty-Five and 09/100 Dollars ($35.09) per year
for each square foot of Rentable Area of the Premises which is
equal to Two Hundred Forty-Six Thousand Nine Hundred Twenty-Eight
and 33/100 Dollars ($246,928.33) per annum.
The Base Rent due
for the first full calendar month during the Lease Term has been
paid to Landlord by Tenant contemporaneously with Tenant’s
execution hereof.
1.4
“Building” shall mean (a) the parcel of real
property described in Exhibit “A” attached hereto and
incorporated herein, (b) the office building and parking
structure built or to be built on such parcel of real property, and
(c) any and all other improvements thereon and appurtenances
thereto. The street address of the Building is 1120 Town Center
Drive, Las Vegas, Nevada 89144; such street address may be modified
by Landlord from time to time during the Lease Term.
1.5
“Building Core” shall mean the area within the
outermost finish face of that portion of the Building that
incorporates those areas that provide service to the tenants of
that floor and to the Building. These areas of service include:
restroom facilities for men and women along with the vestibule and
access, electrical, mechanical, and telephone rooms, janitor
closets, elevators and service elevators along with lobby and
stairs, vestibules, and all vertical floor penetrations for
mechanical/electrical/plumbing for the Building.
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1.6 “Building
Shell” shall mean the condition of the Building completed
with the following improvements: (a) outside walls (not
including drywall), core walls, and elevator lobby areas completed
to building standard condition for public areas;
(b) unfinished concrete floors throughout the Premises, broom
clean; (c) building standard 110 volt 220 amp. power supplied
to the Building Core along with 277/480 volt fluorescent lighting
power supplied to the Building Core; (d) men’s and
ladies’ restroom facilities with building standard finished
located on each floor on which the Premises are located;
(e) building standard voice communication speakers and smoke
detectors in accordance with applicable building codes and provided
only at the core; and (f) mechanical, electrical, plumbing, life
safety, heating, air conditioning and ventilation in Building Core
area as required to connect to and service the
Premises.
1.7
“Commencement Date” shall mean the earlier of
(i) the date that Tenant actually commences any business
operations from the Premises, (ii) the date Tenant
Improvements (as defined in Section 1.2 of Exhibit “D”
— The Canyons Center Work Letter) have been substantially
completed (as defined in Section 3.3 of the Lease), or
(iii) February 1, 2007, except as the same may be delayed
pursuant to Section 3.3 hereof. Notwithstanding the foregoing,
Tenant is permitted entry to the Premises one (1) week prior
to the Commencement Date for the purpose of installing fixtures or
any other purpose permitted by Landlord. The early entry will be at
Tenant’s sole risk and subject to all the terms and
provisions of this Lease as though the Commencement Date had
occurred, except for the payment of Rent, which will commence on
the Commencement Date. Tenant, its agents, or employees will not
interfere with or delay Landlord’s completion of construction
of the Tenant Improvements. All rights of Tenant under this
subsection 1.7 will be subject to the requirements of all
applicable building codes, zoning requirements, and federal, state,
and local laws, rules, and regulations, so as not to interfere with
Landlord’s compliance with all laws.
1.8 “Expense
Stop” shall mean the amount (per square foot of Rentable Area
of the Premises) Landlord herewith agrees to expend as its share of
Operating Expense (which shall be a credit for Tenant to apply to
offset Operating Expenses charged to the Premises), not to exceed
the total amount of Operating Expenses for calendar year 2007 (the
“Base Year”) (per square foot of Rentable Area in the
Building); provided, however, that if occupancy of the Building
during the Base Year is less than ninety-five percent (95%),
Operating Expenses for the Base Year shall be “grossed
up” to that amount of Operating Expenses that, using
reasonable projections, would normally be expected to be incurred
if the Building were ninety-five percent (95%) occupied during the
Base Year. With respect to Real Property Taxes included in
Operating Expenses for the Base Year, such amount shall be
determined under the assumption that the Building is fully assessed
as a completed and occupied unit.
1.9
“Index” shall mean the Consumer Price Index, Urban Wage
Earners and Clerical Workers for Los Angeles, Anaheim and Riverside
Area, all items (1982-1984=100), as published by the Bureau of
Labor Statistics of the United States Department of Labor. In the
event that the Index is discontinued or is revised to substantially
alter the calculations under Section 5.2, Landlord shall
select such other government index which provides substantially the
same result as would have been obtained if the Index had not been
so discontinued or revised.
1.10
“Laws” shall mean all applicable statutes, regulations,
ordinances, requirements and orders promulgated by any federal,
state, local or regional governmental authority now in force or in
force after the Commencement Date.
1.11 “Lease
Interest Rate” shall mean the lesser of (a) that
fluctuating rate of interest equal to two percentage points (2%)
over the rate of interest announced from time to time by the Bank
of America National Trust and Savings Association as its prime or
reference commercial lending rate (or in the event such bank ceases
to announce such rate, then by such other federally regulated
banking institution as Landlord shall determine), or (b) the
maximum interest rate permitted by law.
1.12 “Lease
Term” shall mean the term commencing on the Commencement Date
and continuing until sixty (60) months after the first day of
the first full calendar month following the Commencement
Date.
1.13
“Mortgagee” shall mean the mortgagee under a mortgage
or beneficiary under a deed of trust holding a lien encumbering the
Building or any holder of a ground leasehold interest in the
Building or any part thereof.
1.14
“Operating Expenses” shall mean all costs of any kind
paid or incurred by Landlord in owning, operating, cleaning,
equipping, protecting, lighting, repairing, replacing, heating,
air-conditioning and maintaining the Building as a first class
office project, and a proration of Operating Expenses for all
common areas within Canyons Center as provided in the REA or as
otherwise determined by Landlord, including by way of illustration
but not limitation, all of the following: (a) all amounts
charged to the Building pursuant to the REA; (b) Real Property
Taxes; (c) all costs, charges and surcharges for utilities,
water, sewage, janitorial, waste disposal and refuse removal and
all other utilities and services provided to the Building;
(d) insurance costs for which Landlord is responsible under
this Lease or which Landlord or
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any Mortgagee deems
necessary or prudent; (e) any costs levied, assessed or
imposed pursuant to any applicable Laws; (f) the cost
(amortized over such period as Landlord reasonably determines
together with interest at the Lease Interest Rate on the
unamortized balance) of any capital improvements to the Building or
equipment replacements made by Landlord after the Commencement Date
that are intended to reduce other Operating Expenses or are
required by any Laws or are necessary in order to operate the
Building at the same quality level as prior to such replacement;
(g) costs and expenses of operation, repair and maintenance of
all structural and mechanical portions and components of the
Building including, without limitation, plumbing, communication,
heating, ventilating and air-conditioning (“HVAC”),
elevator, and electrical and other common Building systems;
(h) a pro rata portion of the costs of the rental payments for
the management office that is servicing the Canyons Center;
(i) all costs incurred in the management and operation of the
Building including, without limitation, gardening and landscaping,
maintenance of all parking areas, structures and garages,
maintenance of signs, resurfacing and repaving, painting, lighting,
cleaning, and provision of Building security; (j) all personal
property taxes levied on or attributable to personal property used
in connection with the Building; (k) depreciation on personal
property owned by Landlord which is consumed in the operation or
maintenance of the Building; (l) rental or lease payments paid
by Landlord for rented or leased personal property used in the
operation or maintenance of the Building; (m) management fees,
wages, salaries and other labor costs incurred in the management
and operation of the Building; (n) fees for required licenses
and permits; (o) reasonable legal, accounting and other
professional fees; (p) reasonable and appropriate reserves for
repair and replacement; and (q) a reasonable allowance to
Landlord for supervision of all of the foregoing not to exceed five
percent (5%) of the total of all other Operating Expenses. If the
Building is not 95% occupied during any portion of the Lease Term,
Landlord shall make an appropriate adjustment to Operating Expenses
for such period employing sound accounting and management
principles, to determine the amount of Operating Expenses that
would have been incurred had the Building been 95% occupied during
such period (collectively referred to as “Grossed-Up”).
Operating Expenses shall not include depreciation of the Building
or equipment therein, commissions of real estate brokers and
leasing agents, nor any amounts expended for tenant improvements.
Increases in controllable Operating Expenses shall not exceed four
percent (4%) annually. Controllable Operating Expenses shall
include any Operating Expenses other than Real Property Taxes,
insurance and utility charges.
1.15
“Premises” shall mean that space outlined on the floor
plan attached to this Lease as Exhibit “B” and
incorporated herein. The Premises are stipulated for all purposes
to contain seven thousand thirty-seven (7,037) square feet of
Rentable Area.
1.16
“REA” shall mean that certain Canyons Center’s
Conditions and Restrictions recorded with the Clark County Recorder
on December 11, 1996 in Book 961211 and Instrument
No. 00521 as such document may be further amended or
supplemented from time to time; provided, however, that no such
further amendment or supplement shall in any event decrease
Tenant’s rights, materially increase Tenant’s financial
obligations, or increase Tenant’s non-financial obligations
under this Lease.
1.17 “Real
Property Taxes” shall mean and include any form of tax,
assessment, license fee, license tax, business license fee,
commercial rental tax, levy, charge, penalty, tax or similar
imposition, imposed by any authority having the direct power to
tax, including any city, county, state or federal government, or
any school, lighting, drainage, transportation, air pollution,
environmental or other improvement or special assessment district
thereof, as against any legal or equitable interest of Landlord in
the Building and/or the Premises, including, but not limited to,
the following: (a) any tax on Landlord’s
“right” to rent or “right” to other income
from the Premises or as against Landlord’s business of
leasing the Premises; (b) any assessment, tax, fee, levy or
charge in substitution, partially or totally, of any assessment,
tax, fee, levy or charge previously included within the definition
of Real Property Taxes (it is the intention of Tenant and Landlord
that all such new and increased assessments, taxes, fees, levies
and charges be included within the definition of “Real
Property Taxes” for the purposes of this Lease); (c) any
assessment, tax, fee, levy or charge allocable to or measured by
the area of the Premises or the rent payable hereunder, including,
without limitation, any gross income tax or excise tax levied by
the state, county, city or federal government, or any political
subdivision thereof, with respect to the receipt of such rent, or
upon or with respect to the possession, leasing, operating,
management, maintenance, alteration, repair, use or occupancy of
the Building, or any portion thereof; (d) any assessment, tax,
fee, levy or charge upon this transaction creating or transferring
an interest or an estate in the Premises; (e) any assessment,
tax, fee, levy or charge based upon the number of people employed,
working at, or using the Premises or the Building, or utilizing
public or private transportation to commute to the Premises or the
Building; and (f) reasonable legal and other professional
fees, costs and disbursements incurred in connection with
proceedings to contest, determine or reduce Real Property
Taxes.
Real Property
Taxes shall not include federal or state income, franchise,
inheritance or estate taxes of Landlord or any of the parties which
comprise Landlord.
1.18
“Rentable Area” of the Premises shall mean the total of
the following measurements to be determined by Landlord:
(a) the entire area included within the Premises, being the
area bounded by the inside surface of any exterior glass walls (or
the inside surface of the permanent exterior wall where
there
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is no glass) of the
Building bounding the Premises, the exterior of all walls
separating the Premises from any public corridors or other public
areas, and the centerline of all walls separating the Premises from
other areas leased or to be leased to other tenants, (b) a pro
rata portion based on the space occupied on the floor or floors on
which the Premises is located (the “Floor(s)”) of the
areas covered by the elevator lobbies, corridors, restrooms, and by
mechanical rooms, electrical rooms and telephone closets situated
on the Floor(s) (such pro rata portion shall be the same percentage
that the amount of Rentable Area in the Premises bears to the
Rentable Area on the Floor(s) on which the Premises is located),
other than those servicing the entire Building, and (c) a pro
rata portion of the lobby area on the ground floor of the Building
and of the area of the Building containing the electrical/emergency
equipment, fire pump equipment, electrical switching gear,
telephone equipment, mail delivery room and other facilities
serving the Building (such pro rata portion shall be the same
percentage that the amount of Rentable Area of the Premises bears
to the total Rentable Area in the entire Building). The Building is
stipulated for all purposes to contain one hundred three thousand
eight hundred forty-nine (103,849) square feet of Rentable
Area.
1.19
“Security Deposit” shall mean the sum of One Hundred
Thousand and 00/100 Dollars ($100,000.00), to be secured by a
letter of credit (“Letter of Credit”), as further
defined in Article 34.
1.20
“Tenant’s Share” shall be a fraction of which the
numerator is the Rentable Area of the Premises as set forth in
Section 1.15 and the denominator is the Rentable Area in the
Building as set forth in Section 1.18.
1.21 “Usable
Area” for the Premises shall mean the Rentable Area for the
Premises, minus the following reductions as determined by Landlord:
(a) the Premises pro rata portion of the lobby area on the
ground floor and electrical/emergency equipment, fire pump
equipment, electrical switching gear, telephone equipment, mail
delivery facilities, elevator penthouse, security rooms, trash
rooms and other areas which service the entire Building as
specified in the definition of Rentable Area, and (b) the
Premises’ pro rata portion of the space occupied on the
Floor(s) of the Premises covered by the elevator lobbies,
corridors, restrooms, mechanical rooms, electrical rooms and
telephone closets situated on such Floors as specified in the
definition of Rentable Area.
1.22
“Commencement Memorandum” shall mean a document similar
to Exhibit “F” attached hereto. The Commencement
Memorandum, among other things, shall contain a reference to the
Rentable Area of the Premises and Usable Area of the Premises.
Tenant agrees that the Rentable Area and Usable Area of the
Premises stated in the Commencement Memorandum shall be binding
throughout the Lease Term.
1.23
“Intellectual Property” shall mean that certain
trademarks, service marks, trade names and logos, including without
limitation “Summerlin”, “The Hills”,
“The Pueblo”, “The Trails”, “The
Crossings”, “The Canyons”, “The
Arbors”, and “The Willows” (collectively,
“Intellectual Property”). Tenant expressly acknowledges
that Landlord is the owner of the Intellectual Property and,
therefore, Tenant shall not, without the express written permission
of Landlord, utilize any of the Intellectual Property as part or
all of its business names, trade names, product names, trademarks,
service marks, or any other identifying devices associated with its
business, products or services. Furthermore, Tenant shall not
challenge or attack the validity or enforceability of any of the
Intellectual Property at any time during the term of the Lease and
for a period of two (2) years thereafter. Tenant shall
indemnify and hold Landlord harmless for any and all loss, cost or
damage suffered by Landlord as a result of Tenant’s breach of
this Section 1.23. This Section 1.23 shall survive the
expiration or termination of this Lease.
ARTICLE 2
LEASE GRANT
Subject to and
upon the terms and conditions herein set forth, Landlord leases to
Tenant and Tenant leases from Landlord the Premises.
ARTICLE 3
LEASE TERM
3.1 Delivery of
Possession.
Landlord will be
deemed to have delivered possession of the Premises to Tenant on
the Commencement Date, as it may be adjusted pursuant to
Section 3.3 and the Work Letter. Landlord will construct or
install in the Premises the Improvements (hereinafter defined) to
be constructed or installed by Landlord according to the Work
Letter. Tenant acknowledges that neither Landlord nor its agents or
employees have made any representations or warranties as to the
suitability or fitness of the Premises for the conduct of
Tenant’s business or for any other purpose, nor has Landlord
or its agents or employees agreed to undertake any alterations or
construct any tenant improvements to the Premises except as
expressly provided in this Lease and the Work Letter. If for any
reason Landlord cannot deliver
8
possession of the Premises
to Tenant on or before the fixed date component of the Commencement
Date, this Lease will not be void or voidable, and Landlord will
not be liable to Tenant for any resultant loss or
damage.
3.2 Substantial Completion of
Premises.
If, by the fixed
date specified in Section 1.7, the Premises have not been
substantially completed pursuant to the Work Letter due to any
cause other than Landlord’s default, Landlord shall have no
liability therefor, and the Lease Term (including without
limitation, Tenant’s obligation to pay Rent) shall
nonetheless commence as of said fixed date.
3.3 Landlord
Delays.
If the Premises
are not substantially completed by the fixed date specified in
Section 1.7 due to default on the part of Landlord (as
determined in accordance with Article 26 below), then as
Tenant’s sole remedy for the delay in Tenant’s
occupancy of the Premises, the fixed date component of the
definition of the Commencement Date shall be delayed for the period
of delay in substantial completion of the Premises resulting from
Landlord’s default. The Premises shall be deemed
“substantially completed” when (i) Landlord has
provided reasonable access to the Premises to Tenant,
(ii) Landlord has completed the work covered by the Work
Letter other than details of construction which do not materially
interfere with Tenant’s use of the Premises, and (iii)
Landlord has obtained a permanent or temporary certificate of
occupancy for the Premises (or its equivalent).
ARTICLE 4
USE OF PREMISES AND COMMON AREAS
4.1 Premises.
The Premises shall
be used for general office purposes and for no other purposes.
Tenant will use the Premises in a careful, safe, and proper manner.
Tenant agrees not to use or permit the use of the Premises for any
purpose which is illegal or prohibited by any applicable Laws, or
which, in Landlord’s opinion, creates a nuisance or would
increase the cost of insurance coverage with respect to the
Building. Tenant shall not use or occupy the Premises in violation
of such rules and regulations described in Article 15 below
nor in violation of the REA or any other recorded covenants,
conditions or restrictions affecting the Building. Tenant shall not
place a load upon the Premises exceeding the average pounds live
load per square foot of floor area specified for the Building by
Landlord’s architect, with the partitions to be considered
part of the live load. Landlord reserves the right to prescribe the
weight and position of all safes, files and heavy equipment which
Tenant desires to place in the Premises so as to distribute
properly the weight thereof.
4.2 Common Areas of
Building.
Tenant shall have
the nonexclusive right to use in common with other tenants in the
Building, and subject to the rules of the Building referred to in
Article 15 below, the following areas (“Common
Areas”) appurtenant to the Premises:
(i) The common
entrances, lobbies, restrooms, elevators, stairways and accessways,
loading docks, ramps, drives and platforms and any passageways and
serviceways thereto, and the common pipes, conduits, wires and
appurtenant equipment serving the Premises;
(ii) Parking areas
(subject to the provisions of the Parking Agreement attached hereto
as Exhibit “C”), loading and unloading areas, trash
areas, roadways, sidewalks, walkways, parkways, driveways and
landscaped areas appurtenant to the Building.
4.3 Landlord’s Rights in
Common Areas.
Landlord reserves
the right from time to time without unreasonable interference with
Tenant’s use:
(i) To install,
use, maintain, repair and replace pipes, ducts, conduits, wires and
appurtenant meters and equipment for service to other parts of the
Building above the ceiling surfaces, below the floor surfaces,
within the walls and in the central core areas, and to relocate any
pipes, ducts, conduits, wires and appurtenant meters and equipment
included in the Premises which are located in the Premises or
located elsewhere outside the Premises, and to expand the
Building;
(ii) To make
changes to the Common Areas, including, without limitation, changes
in the location, size, shape and number of driveways, entrances,
loading and unloading areas,
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ingress, egress,
direction of traffic, landscaped areas and walkways and, subject to
the Parking Agreement, parking spaces and parking areas;
(iii) To close
temporarily any of the Common Areas for maintenance purposes so
long as reasonable access to the Premises remains
available;
(iv) To use the
Common Areas while engaged in making additional improvements,
repairs or alterations to the Building, or any portion thereof;
and
(v) To do and
perform such other acts and make such other changes in, to or with
respect to the Common Areas and Building as Landlord may, in the
exercise of sound business judgment, deem to be
appropriate.
ARTICLE 5
BASE RENT AND ADDITIONAL RENT
5.1 Base Rent.
Tenant agrees to
pay to Landlord during the Lease Term, without any setoff or
deduction whatsoever the Base Rent, and all such other sums of
money as shall become due hereunder as Additional Rent. Should
Tenant fail to pay any Additional Rent in a timely manner, Landlord
shall be entitled to exercise all such rights and remedies as are
herein provided in the case of the nonpayment of Base Rent. The
annual Base Rent for each calendar year or portion thereof during
the Lease Term, together with estimated Additional Rent pursuant to
Article 6 hereof then in effect, shall be due and payable in
advance, in lawful money of the United States of America which
shall be legal tender at the time of payment, in twelve
(12) equal installments on the first day of each calendar
month during the initial term of this Lease and any extensions or
renewals thereof, and Tenant hereby agrees to pay such Base Rent
and Additional Rent to Landlord at Landlord’s address
provided herein (or such other address as may be designated by
Landlord in writing from time to time) monthly, in advance, and
without demand. If the Lease Term commences on a day other than the
first day of a month or terminates on a day other than the last day
of a month, then the installments of Base Rent and Additional Rent
for such month or months shall be prorated, based on the number of
days in such month.
5.2 Intentionally
Omitted.
5.3 Additional
Rent.
All charges
payable by Tenant hereunder other than Base Rent (including,
without limitation, Operating Expenses payable pursuant to
Article 6 below) are called “Additional Rent.”
Unless this Lease provides otherwise, all Additional Rent shall be
paid with the next monthly installment of Base Rent. Base Rent and
Additional Rent are sometimes referred to collectively as
“Rent.”
5.4 Interest on Late
Payments.
All installments
of Rent not paid when due and payable shall bear interest at the
Lease Interest Rate from the date due until paid. In addition, if
any installment of Rent is not received by Landlord within five
(5) days after notice that said amount is past due from
Landlord to Tenant, Tenant shall pay to Landlord, as Additional
Rent, five percent (5%) of the overdue amount as a late charge.
Landlord’s acceptance of any late charge or interest shall
not constitute a waiver of Tenant’s default with respect to
the overdue amount nor prevent Landlord from exercising any of the
other rights and remedies available to Landlord under this Lease or
any law now or hereafter in effect.
ARTICLE 6
BASE RENT ADJUSTMENT
The Base Rent
payable hereunder shall be adjusted upward from time to time in
accordance with the following provisions:
(a) Tenant shall
pay to Landlord as an adjustment to Rent, an amount equal to the
excess (the “Excess”) from time to time of total annual
Operating Expenses per square foot of Rentable Area of the
Premises, as Grossed-Up, over and above the Expense Stop. The
Excess shall be obtained by multiplying (i) the difference
between the annual Operating Expense per square foot of Rentable
Area in the Premises and the Expense Stop, by (ii) the total
Rentable Area of the Premises as set forth in Section 1.15.
Such amount shall be paid in advance in monthly installments on the
same dates as Base Rent is due and payable hereunder based on
Landlord’s notice delivered to Tenant from time to time
setting forth Landlord’s good faith estimate of the Operating
Expenses for
10
the current calendar
year. Landlord shall have the right to adjust such amount no more
than once a year to reflect any changes in Landlord’s
estimate of Operating Expenses.
(b) By April 1 of
each calendar year during the Lease Term, or as soon thereafter as
practicable, Landlord shall furnish to Tenant a statement
(“Actual Statement”) of Landlord’s annual
Operating Expenses, as Grossed-Up, for the previous calendar year.
If for any calendar year the amounts collected from Tenant for the
prior year, as a result of Landlord’s estimate of Operating
Expenses, exceeds the amount of the Excess actually due during such
prior year, then Landlord shall refund to Tenant any overpayment
(or at Landlord’s option, apply such amount against Rent due
or to become due hereunder). Likewise, Tenant shall pay to
Landlord, on demand, any underpayment with respect to the prior
year.
(c) In the event
of any good faith dispute as to the amount of the Excess as set
forth in the statement of actual Operating Expenses, Tenant shall
have the right, no more frequently than once per calendar year,
after reasonable notice to Landlord and at reasonable times, to
inspect and photocopy Landlord’s Operating Expenses records
at Landlord’s offices. If, after such inspection and
photocopy, Tenant continues, in good faith, to dispute the amount
of the Excess as set forth in said statement, Tenant shall be
entitled not later than one (1) year following Tenant’s
receipt of an Actual Statement to retain a national, independent,
certified public accountant who is not contracted on a contingency
fee basis and is mutually acceptable to Landlord and Tenant to
audit Landlord’s Operating Expenses records with respect to
the calendar year covered by Actual Statement to determine the
proper amount of the Excess. Landlord shall be entitled to review
the results of such audit promptly after completion of same. If
such audit proves that Landlord has overcharged Tenant, then within
fifteen (15) days after the results of the audit are made
available to Landlord, Landlord shall credit Tenant the amount of
such overcharge toward the payments of Base Rent and Additional
Rent next coming due under this Lease. If the results of such audit
prove that Landlord has undercharged Tenant, then within fifteen
(15) days after the results of the audit are made available to
Tenant, Tenant shall pay to Landlord the amount of any such
undercharge. Tenant agrees to pay the cost of such audit, provided
that Landlord shall reimburse Tenant the amount of such cost if the
results of such audit prove that Landlord’s determination of
the Excess (as set forth in the Actual Statement) was in error by
more than six percent (6%). If Tenant does not request an audit in
accordance with the provisions of this Section 6(c) within one
(1) year after Tenant’s receipt of an Actual Statement,
such Actual Statement shall be conclusively binding upon Tenant.
Landlord shall be required to maintain records of all Operating
Expenses for three (3) years following the issuance of the
Operating Expense statement for such Operating Expenses. The
payment by Tenant of any amounts pursuant to this Article shall not
preclude Tenant from questioning the correctness of any such
statement.
ARTICLE 7
SERVICES TO BE FURNISHED BY LANDLORD
Landlord agrees to
furnish Tenant the following services as an Operating Expense for
the Building (except as specifically provided below):
(a) Hot and cold
water at those points of supply provided for general use of other
tenants in the Building, central heat and air conditioning in
season, at such temperatures and in such amounts as are considered
by Landlord to be standard or as required by governmental
authority; provided, however, heating and air conditioning service
at times other than “Normal Business Hours” for the
Building (which are 8:00 a.m. to 6:00 p.m. on Mondays through
Fridays and 8:00 a.m. to 1:00 p.m. on Saturdays, exclusive of
federally recognized holidays), shall be furnished upon receipt of
a phone request by Tenant utilizing Landlord’s computer which
permits Tenant to make phone requests for such heating and air
conditioning services. Tenant shall bear the entire cost of such
additional service as such costs are determined by Landlord from
time to time.
(b) Routine
maintenance and electric lighting service for all Common Areas and
service areas of the Building in the manner and to the extent
deemed by Landlord to be standard.
(c) Janitorial
service, five (5) days a week, exclusive of federally
recognized holidays; provided, however, if Tenant’s floor
covering or other improvements require special treatment, Tenant
shall pay the additional cleaning cost attributable thereto as
Additional Rent upon presentation of a statement therefor by
Landlord.
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(d) Subject to the
provisions of Article 13, facilities to provide all electrical
current required by a typical office user, as determined by
Landlord, in its use and occupancy of the Premises.
(e) All Building
Standard fluorescent bulb replacement in the Premises and
fluorescent and incandescent bulb replacement in the Common Areas
of the Building.
(f) Security in
the form of limited access to the Building during other than Normal
Business Hours shall be provided in such form as Landlord deems
appropriate. Landlord may charge a fee for card keys or other
security devices. Landlord, however, shall have no liability to
Tenant, its employees, agents, invitees or licensees for losses due
to theft or burglary, or for damages resulting from the actions of
unauthorized persons on the Premises or in the Building and
Landlord shall not be required to insure against any such losses.
Tenant shall cooperate fully in Landlord’s efforts to
maintain security in the Building and shall follow all regulations
promulgated by Landlord which respect thereto.
The failure by
Landlord to any extent to furnish, or the interruption or
termination of these defined services in whole or part, resulting
from causes beyond the reasonable control of Landlord shall not
render Landlord liable in any respect nor be construed as an
eviction of Tenant, nor work an abatement of Rent, nor relieve
Tenant from the obligation to fulfill any covenant or agreement
hereof. Should any of the equipment or machinery used in the
provision of such services for any cause cease to function
properly, Tenant shall have no claim for offset or abatement or
rent or damages on account of an interruption in service resulting
therefrom.
ARTICLE 8
IMPROVEMENTS TO BE MADE BY LANDLORD
Except as
otherwise provided in the Work Letter attached hereto as Exhibit
“D,” all installations and improvements now or
hereafter placed on the Premises shall be for Tenant’s
account and at Tenant’s cost (and Tenant shall pay ad valorem
taxes and the cost of any increased insurance premiums thereon or
attributable thereto), which cost shall be payable by Tenant to
Landlord upon demand as Additional Rent.
ARTICLE 9
MAINTENANCE AND REPAIR OF PREMISES BY LANDLORD
Except as
otherwise expressly provided herein, Landlord shall not be required
to perform any maintenance or to make any repairs to the
Premises.
ARTICLE 10
GRAPHICS
Landlord shall
provide and install, at Tenant’s cost, all letters or
numerals on doors in the Premises; all such letters and numerals
shall be in the standard graphics for the Building and no others
shall be used or permitted on the Premises without Landlord’s
prior written consent. Tenant shall have the right to designate one
(1) name on the directory board in the lobby of the Building.
Landlord shall have the option to maintain, in place of the
directory board in the lobby of the Building, a computerized
directory with display screen which has the capacity to accommodate
Tenant’s name designation.
ARTICLE 11
CARE OF THE PREMISES BY TENANT
Tenant agrees not
to commit or allow any waste to be committed on any portion of the
Premises, and at the termination of this Lease agrees to deliver up
the Premises to Landlord in as good condition as at the
Commencement Date of this Lease, ordinary wear and tear
excepted.
ARTICLE 12
REPAIRS AND ALTERATIONS BY TENANT
Tenant covenants
and agrees that Tenant shall be responsible, at Tenant’s own
cost and expense, for costs incurred by Landlord to repair or
replace any damage done to the Building, or any part thereof,
caused by Tenant or Tenant’s agents, employees, invitees, or
visitors, to as good a condition as it was in prior to such damage.
Tenant shall, when and if needed or whenever requested by Landlord
to do so, at Tenant’s sole cost and expense, maintain and
make all repairs to the Premises and the improvements therein, to
keep, maintain and preserve the Premises in first-class condition,
excepting ordinary wear and tear. Any such maintenance and repairs
shall be performed by a contractor approved by Landlord. If Tenant
fails to make such repairs or replacements promptly, Landlord may,
at its option, make repairs or replacements, and Tenant shall pay
the cost thereof to Landlord on demand as Additional Rent.
Tenant
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agrees with Landlord
not to make or allow to be made any alterations to the Premises,
install any vending machines on the Premises, or place signs on the
Premises which are visible from outside the Premises, without first
obtaining the written consent of Landlord in each such instance,
which consent may be given on such conditions as Landlord may
elect. Tenant shall deliver to Landlord, for Landlord’s
approval prior to the construction of any alterations, a complete
set of plans and specifications for the proposed alterations,
additions or improvements, copies of contracts with general
contractors, evidence of contractor’s insurance and bonds,
and all necessary permits for such construction. Landlord may
require Tenant to provide demolition and/or lien and completion
bonds in form and amount satisfactory to Landlord. All alterations,
additions, and improvements will be accomplished in a good and
workmanlike manner, in conformity with all applicable laws, and by
a contractor approved by Landlord. Landlord’s approval of the
plans, specifications and working drawings for Tenant’s
alterations shall create no responsibility or liability on the part
of Landlord for their completeness, design, sufficiency, or
compliance with all laws, rules and regulations of governmental
agencies or authorities. 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 and all alterations to the Premises shall become the
property of Landlord upon termination of this Lease (except for
movable equipment or furniture owned by Tenant). Landlord may,
nonetheless, require Tenant to remove any and all fixtures,
equipment and other improvements installed on the Premises. In the
event that Landlord so elects, and Tenant fails to remove such
improvements, Landlord may remove such improvements at
Tenant’s cost, and Tenant shall pay Landlord on demand the
cost of restoring the Premises to the condition that existed
immediately prior to the construction of such
improvements.
ARTICLE 13
USE OF ELECTRICAL SERVICES BY TENANT
Tenant’s use
of electrical services furnished by Landlord shall be subject to
the following:
(a) Landlord
agrees to furnish to the Premises five (5) watts of electric
current, connected load, per square foot of Usable Area during
Normal Business Hours within the Premises on an annualized basis
for normal lighting, normal fractional horsepower office machines,
and HVAC as required in Landlord’s judgment for the use and
occupation of the Premises.
(b) In the event
that Tenant requires or uses more electric power than specified in
Section 13(a) above, Landlord may, at Landlord’s option,
require Tenant to pay the cost as reasonably determined by Landlord
of such extraordinary usage as Additional Rent. In addition,
Landlord may install checkmeters in or for the Premises, at
Tenant’s sole cost and expense, and Tenant shall thereafter
pay all charges of the utility company providing electric service
and Landlord shall make an appropriate adjustment to Tenant’s
obligation to pay a proportionate share of the Operating Expenses
to account for the fact that Tenant is directly paying such metered
charges.
ARTICLE 14
LAWS AND REGULATIONS
14.1 General.
At its sole cost
and expense, Tenant will promptly comply with all Laws, statutes,
ordinances, and governmental rules, regulations, or requirements
now in force or in force after the Commencement Date, with the
requirements of any board of fire underwriters or other similar
body constituted now or after the date, with any direction or
occupancy certificate issued pursuant to any law by any public
officer or officers, as well as with the provisions of all recorded
documents affecting the Premises, insofar as they relate to the
condition, use, or occupancy of the Premises.
14.2 Hazardous
Materials.
(a) For purposes
of this Lease, “Hazardous Materials” means any
explosives, radioactive materials, hazardous wastes, or hazardous
substances, including without limitation substances defined as
“hazardous substances” in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as
amended, 42 U.S.C. ## 9601-9657; the Hazardous Materials
Transportation Act of 1975, 49 U.S.C. ## 1801-1812; the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. ## 6901-6987; or
any other federal, state, or local statute, law, ordinance, code,
rule, regulation, order, or decree regulating, relating to, or
imposing liability or standards of conduct concerning hazardous
materials, waste, or substances now or at any time hereafter in
effect (collectively, “Hazardous Materials
Laws”).
13
(b) Tenant will
not cause or permit the storage, use, generation, or disposition of
any Hazardous Materials in, on, or about the Premises or the
project by Tenant, its agents, employees, or contractors. Tenant
will not permit the Premises to be used or operated in a manner
that may cause the Premises or the project to be contaminated by
any Hazardous Materials in violation of any Hazardous Materials
Laws. Tenant will immediately advise Landlord in writing of
(1) any and all enforcement, cleanup, remedial, removal, or
other governmental or regulatory actions instituted, completed, or
threatened pursuant to any Hazardous Materials Laws relating to any
Hazardous Materials affecting the Premises; and (2) all claims
made or threatened by any third party against Tenant, Landlord, or
the Premises relating to damage, contribution, cost recovery,
compensation, loss, or injury resulting from any Hazardous
Materials on or about the Premises. Without Landlord’s prior
written consent, Tenant will not take any remedial action or enter
into any agreements or settlements in response to the presence of
any Hazardous Materials in, on, or about the Premises.
(c) Tenant will be
solely responsible for and will defend, indemnify and hold
Landlord, its agents, and employees harmless from and against all
claims, costs, and liabilities, including attorneys’ fees and
costs, arising out of or in connection with Tenant’s breach
of its obligations in this Article 14. Tenant will be solely
responsible for and will defend, indemnify, and hold Landlord, its
agents, and employees harmless from and against any and all claims,
costs, and liabilities, including attorneys’ fees and costs,
arising out of or in connection with the removal, cleanup, and
restoration work and materials necessary to return the Premises and
any other property of whatever nature located in, on, or about the
Building, to their condition existing prior to the introduction of
Hazardous Materials by Tenant, its agents, employees or
contractors. Tenant’s obligations under this Article 14
will survive the expiration or other termination of this
Lease.
14.3 Certain Insurance
Risks.
Tenant will not do
or permit to be done any act or thing upon the Premises or the
Building which would (i) jeopardize or be in conflict with
fire insurance policies covering the Building or covering any
fixtures and property in the Building; (ii) increase the rate
of fire insurance applicable to the Building to an amount higher
than it otherwise would be for general office use of the Building;
or (iii) subject Landlord to any liability or responsibility
for injury to any person or persons or to property by reason of any
business or operation being carried on upon the
Premises.
ARTICLE 15
BUILDING RULES
Tenant will comply
with the rules of the Building which are attached hereto as Exhibit
“E” and incorporated herein by this reference, as such
rules are reasonably adopted and altered by Landlord from time to
time and will cause all of its agents, employees, invitees and
visitors to do so; all changes to such rules will be sent by
Landlord to Tenant in writing.
ARTICLE 16
ENTRY BY LANDLORD
Tenant agrees to
permit Landlord or its agents or representatives to enter into and
upon any part of the Premises at all reasonable hours (and in
emergencies at all times) to inspect the same, or to show the
Premises to prospective purchasers, Mortgagees, tenants or
insurers, to clean or make repairs, alterations or additions
thereto, and Tenant shall not be entitled to any abatement or
reduction of rent by reason thereof.
ARTICLE 17
ASSIGNMENT AND SUBLETTING
17.1 Tenant shall
not assign, sublease, transfer or encumber this Lease or any
interest therein. Any attempted assignment or sublease by Tenant in
violation of the terms and covenants of this Article 17 shall
be void.
17.2 If Tenant
requests Landlord’s consent to an assignment of this Lease or
subletting of all or part of the Premises, Landlord shall have the
option (without limiting Landlord’s other rights hereunder)
of terminating this Lease upon thirty (30) days notice.
Landlord may then, at Landlord’s option, lease space to the
prospective assignee or subtenant. If Landlord should fail to
notify Tenant in writing of its decision within a thirty
(30) day period after Landlord is notified in writing of the
proposed assignment or sublease, Landlord shall be deemed to have
refused to consent to such proposed assi
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