EXHIBIT 10.1
LEASE AGREEMENT
between
MINNESOTA INDUSTRIAL PROPERTIES
LIMITED PARTNERSHIP
as “ Landlord
”
and
CASCADE MICROTECH,
INC.
as “ Tenant
”
TABLE OF CONTENTS
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PAGE
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1.
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PREMISES
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4
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2.
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TERM; POSSESSION
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5
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3.
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RENT
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5
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4.
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SECURITY DEPOSIT
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8
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5.
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USE AND COMPLIANCE WITH LAWS
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8
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6.
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TENANT IMPROVEMENTS &
ALTERATIONS
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11
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7.
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MAINTENANCE AND REPAIRS
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13
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8.
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TAXES
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14
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9.
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UTILITIES AND SERVICES
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14
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10.
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EXCULPATION AND INDEMNIFICATION
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15
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11.
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INSURANCE
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16
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12.
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DAMAGE OR DESTRUCTION
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17
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13.
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CONDEMNATION
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18
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14.
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ASSIGNMENT AND SUBLETTING
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19
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15.
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DEFAULT AND REMEDIES
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20
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16.
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LATE CHARGE AND INTEREST
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21
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17.
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WAIVER
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21
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18.
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ENTRY, INSPECTION AND CLOSURE
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22
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19.
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SURRENDER AND HOLDING OVER
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22
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20.
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ENCUMBRANCES
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23
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21.
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ESTOPPEL CERTIFICATES AND FINANCIAL
STATEMENTS
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23
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22.
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NOTICES
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24
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23.
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ATTORNEYS’ FEES
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24
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24.
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QUIET POSSESSION
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24
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25.
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SECURITY MEASURES
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24
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26.
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FORCE MAJEURE
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24
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27.
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RULES AND REGULATIONS
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24
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28.
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LANDLORD’S LIABILITY
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25
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29.
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CONSENTS AND APPROVALS
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25
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30.
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BROKERS
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25
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31.
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ENTIRE AGREEMENT
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25
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32.
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MISCELLANEOUS
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25
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33.
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AUTHORITY
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26
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34.
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EXTENSION OF TERM
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D-1
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i
BASIC LEASE
INFORMATION
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Lease
Date:
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For
identification purposes only, the date of this Lease is
February 6, 2009
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Landlord:
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Minnesota
Industrial Properties Limited Partnership, a Minnesota limited
partnership
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Tenant:
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Cascade
Microtech, Inc., an Oregon corporation
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Project:
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Northland
Interstate III, Brooklyn Park, Minnesota
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Building Address:
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7115 Northland
Terrace, Brooklyn Park, Minnesota 55428
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Premises:
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Floor: First
Suite Number: 400
Rentable Area: Approximately 13,998 rentable
square feet (to be comprised of approximately 6,999 rentable square
feet of office/showroom space and approximately 6,999 rentable
square feet of production and warehouse space)
Building Rentable Area: 59,830 rentable square
feet
The Rentable Area of the Premises
was measured from the exterior face of the exterior walls of the
Premises, to the centerline of interior demising walls separating
the Premises from other tenant premises in the Building, and
includes the Tenant’s interior space, and also includes an
additional seventy (70) square feet of area (which is 24% of the
Common Area mechanical room in the Building).
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Permitted
Use:
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Lawful office
and warehouse purposes, including lab, clean room, production and
storage, and for no other use or purpose without Landlord’s
prior written consent which shall not be unreasonably withheld,
conditioned or delayed.
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Term:
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Ninety (90)
full calendar months, plus any partial month at the beginning of
the Term. The initial Term of this Lease (“ Initial
Term ”) shall commence on the Commencement Date (defined
in Section 2 of this Lease) and expire on the last day of the
ninetieth (90 th )
full calendar month after the Commencement Date (“
Expiration Date ”). Tenant has one Extension Option,
as defined in Exhibit D to this Lease, to extend the
Term of this Lease for one (1) additional consecutive five (5) year
period beginning pursuant to Section 34 (Extension of Term) of
this Lease.
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Scheduled Commencement Date:
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April 1, 2009;
provided, however, subject to and upon the terms and conditions of
Exhibit B to this Lease, Landlord shall Substantially
Complete the Tenant Improvements (defined in Exhibit B
herein) in the area of the Premises shown as the cross-hatched area
and identified as the “Work Room” on Exhibit A-1
(the “ Early Completion Area ”) on or prior to
the Early Completion Date (defined in Exhibit B herein), and
the remainder of the Tenant Improvements shall be Substantially
Completed on or prior to April 1, 2009.
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Page 1
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Base
Rent:
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Initial
Term:
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Months
1-6:
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$n/a -
abated*
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Months
7-18:
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$97,986.00 per
annum
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$8,165.50 per
month
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Months
19-30:
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$99,945.72 per
annum
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$8,328.81 per
month
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Months
31-42:
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$101,905.44 per
annum
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$8,492.12 per
month
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Months
43-54:
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$104,005.14 per
annum
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$8,667.10 per
month
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Months
55-60:
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$106,104.84 per
annum
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$8,842.07 per
month
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Months
61-72:
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$108,204.54 per
annum
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$9,017.05 per
month
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Months
73-90
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$110,444.22 per
annum
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$9,203.69 per
month
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Extension
Term :
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Months
91-150:
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Market Rate
(determined pursuant to Section 3.1(a) herein)
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* Base Rent and Tenant’s Share
of Operating Costs and Taxes shall be abated for the first six (6)
months of the Initial Term of this Lease.
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Tenant’s Share:
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Twenty three
and 40/100 percent (23.40%).
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Security
Deposit:
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Thirteen
Thousand Twenty-nine and 80/100 Dollars ($13,029.80)
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Landlord’s Address for Payment of
Rent:
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Minnesota Industrial Properties Limited
Partnership
c/o Ryan Companies US, Inc.
50 South Tenth Street, Suite 300
Minneapolis, MN
55403-2012
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Business
Hours:
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Subject to the
terms and conditions of this Lease, Tenant shall have access to the
Premises 24 hours a day, 7 days a week during the Term of this
Lease, with no additional overtime premiums.
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Landlord’s Address
for Notices:
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Minnesota Industrial Properties Limited
Partnership
c/o Ryan Companies US, Inc.
50 South Tenth Street, Suite 300
Minneapolis, MN
55403-2012
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Page 2
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Tenant’s Address
for Notices:
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Cascade Microtech, Inc.
7115 Northland Terrace, Suite 400
Brooklyn Park, Minnesota
55428
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Access Card
Deposit:
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n/a
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Broker(s):
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Landlord: CB Richard Ellis (John
Ryden)
Tenant: CRESA Partners (Sue Grimm;
Matt Tobin; Craig Reinhart)
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Guarantor(s):
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None
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Property
Manager:
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Ryan Companies
US, Inc.
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Additional
Provisions:
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35. Extension
of Term
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Exhibits :
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Exhibit
A:
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The
Premises
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Exhibit A-1:
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Early
Completion Area
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Exhibit
B:
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Construction
Rider
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Exhibit
B-1:
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Final
Construction Documents
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Exhibit
C:
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Building
Rules
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Exhibit
D:
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Additional
Provisions
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The Basic Lease Information set
forth above is part of the Lease. In the event of any conflict
between any provision in the Basic Lease Information and the Lease,
the Lease shall control.
Page 3
THIS LEASE is made as of the Lease
Date set forth in the Basic Lease Information, by and between the
Landlord identified in the Basic Lease Information (“
Landlord ”), and the Tenant identified in the Basic
Lease Information (“ Tenant ”). Landlord and
Tenant hereby agree as follows:
1. PREMISES.
1.1 Premises Described .
Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, in its “as-is” condition except for the
Tenant Improvements to be constructed by Landlord as set forth in
Exhibit B of this Lease, upon the terms and subject to the
conditions of this Lease, the premises identified in the Basic
Lease Information as the Premises (the “ Premises
”), in the Building located at the address specified in the
Basic Lease Information (the “ Building ”). The
approximate configuration and location of the Premises is shown as
the area outlined on Exhibit A . Based on the measurement of
the Premises referenced in the Basic Lease Information, Landlord
and Tenant acknowledge, stipulate and agree that during the entire
Term of this Lease, including any extension thereof, the rentable
area of the Premises (“ Rentable Area ”) for all
purposes under this Lease, except as otherwise provided in
Section 12 (Damage or Destruction) or Section 13
(Condemnation), shall be the Rentable Area specified in the Basic
Lease Information. Landlord and Tenant stipulate and agree that the
rentable area of the Building (“ Building Rentable
Area ”) for all purposes under this Lease, except as
otherwise provided in Section 12 (Damage or Destruction) or
Section 13 (Condemnation), shall be the Building Rentable Area
specified in the Basic Lease Information. The Building, together
with the parking facilities serving the Building (the “
Parking Facility ”), the Common Areas, as defined
herein, and the parcel(s) of land on which the Building and the
Parking Facility are situated (collectively, the
“Property ”), is part of the Project, which may
contain more than one building, identified in the Basic Lease
Information (the “ Project ”).
1.2 Common Areas . The term
“ Common Areas ” as used herein means all areas
and facilities outside the Premises, within the exterior boundaries
of the Project, that are provided and designated by Landlord from
time to time for the general nonexclusive use and convenience of
Tenant and of other tenants of Landlord having the common use of
such areas, and their respective authorized representatives and
invitees. Common Areas include, without limitation, driveways,
parking areas, sidewalks, and landscaped areas, all as generally
described or shown on Exhibit A attached hereto.
Landlord hereby grants to Tenant, for the benefit of Tenant and its
employees, suppliers, shippers, customers and invitees, during the
Term of this Lease, the nonexclusive right to use, in common with
others entitled to such use, the Common Areas as they exist from
time to time, subject to any rights, powers, and privileges
reserved by Landlord under the terms hereof or under the terms of
any rules and regulations or restrictions governing the use of the
Building or the Project. Under no circumstances shall the right
herein granted to use the Common Areas be deemed to include the
right to store any property, temporarily or permanently, in the
Common Areas.
(a) Common Areas-Changes. Landlord
shall have the right, in Landlord’s sole discretion, from
time to time:
1. To make changes and reductions to
the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking
spaces, parking areas, loading and unloading areas, ingress,
egress, direction of traffic, landscaped areas and walkways;
provided, however, Landlord shall not make any changes or
reductions that materially and adversely impair Tenant’s
ability to operate its business from the Premises for the Permitted
Use;
2. To close temporarily any of the
Common Areas for maintenance purposes so long as reasonable access
to the Premises remains available;
3. To designate other land outside
the boundaries of the Building to be a part of the Common Areas,
provided, however, Tenant shall not be responsible for any
increased costs resulting directly therefrom;
4. To add additional improvements to
the Common Areas, provided, however, Tenant shall not be
responsible for any increased costs resulting directly
therefrom;
5. To use the Common Areas while
engaged in making additional
Page 4
improvements, repairs or alterations
to the Building or Project, or any portion thereof; and
6. To do and perform such other acts
and make such other changes in, to or with respect to the Common
Areas as Landlord may, in the exercise of sound business judgment,
deem to be appropriate, provided, however, Tenant shall not be
responsible for any increased costs resulting directly
therefrom.
(b) Common Area Maintenance .
Landlord shall, in Landlord’s reasonable sole discretion,
maintain the Common Areas (subject to reimbursement pursuant to
this Lease) and establish and enforce reasonable rules and
regulations concerning such areas.
2. TERM; POSSESSION.
The term of this Lease (the “ Term ”) shall
commence on the Commencement Date as described below and, unless
sooner terminated, shall expire on the Expiration Date. The “
Commencement Date ” shall be the earlier of
(a) the date on which Landlord tenders possession of the
Premises to Tenant, with all of Landlord’s construction
obligations, if any, “ Substantially Completed ”
as provided in the Construction Rider attached as
Exhibit B (the “ Construction Rider
”) but in no event prior to April 1, 2009 or, in the
event of any “ Tenant Delay ,” as defined in the
Construction Rider, the date on which Landlord could have done so
had there been no such Tenant Delay; or (b) the date upon
which Tenant, with Landlord’s written permission, actually
occupies and conducts business in any portion of the Premises.
Landlord acknowledges that Base Rent and Tenant’s Share of
Operating Costs and Taxes shall not be payable until the first
(1 st ) day of the seventh
(7 th ) full month after the
Commencement Date. The parties anticipate that the Commencement
Date will occur on or about the Scheduled Commencement Date set
forth in the Basic Lease Information (the “ Scheduled
Commencement Date ”); provided, however, that Landlord
shall not be liable for any claims, damages or liabilities if the
Premises are not ready for occupancy by the Scheduled Commencement
Date. When the Commencement Date has been established, Landlord and
Tenant shall, at the request of either party, confirm the
Commencement Date and Expiration Date in writing.
3. RENT.
3.1 Base Rent . Tenant agrees
to pay to Landlord the Base Rent set forth in the Basic Lease
Information, without prior notice or demand, on the first day of
each and every calendar month during the Term, except that Base
Rent for the first full calendar month in which Base Rent is
payable shall be paid upon Tenant’s execution of this Lease
and Base Rent for any partial month at the beginning of the Term
shall be paid on the Commencement Date. Base Rent for any partial
month at the beginning or end of the Term shall be prorated based
on the actual number of days in the month.
(a) Base Rent: Extension Term
. Tenant agrees to pay to Landlord Base Rent for the Extension Term
at the Market Rate. “ Market Rate ” shall be
defined as what an arm’s-length, non-expansion, non-renewal,
non-equity tenant of comparable credit to Tenant would, as of the
beginning of the term in question, pay for space of comparable
size, quality, utility and location, taking into account the length
of the term and all allowances and concessions being offered in the
market. The Market Rate shall be determined as follows: Within
thirty (30) days after Landlord receives notice from Tenant of
Tenant’s election to exercise an Extension Option, Landlord
will give notice to Tenant of its determination of the Market Rate
for the Premises and Landlord’s determination will constitute
the Market Rate unless Tenant objects by notice to Landlord in
writing within thirty (30) days after Tenant’s receipt
of Landlord’s determination. If Tenant so objects, the
parties shall meet within fifteen (15) days after
Tenant’s objection and attempt to agree on the Market Rate.
If the parties are unable to agree on the Market Rate within such
15-day period, then (x) the Extension Term of this Lease as
defined in Exhibit D may be cancelled at the request of either
party, provided, however, notice of cancellation must be delivered
to the other party within five (5) business days after
expiration of the 15-day period described above or this right of
cancellation shall be deemed waived and the Market Rate shall be
determined by appraisal pursuant to subparagraph (y) below and
the following provisions of this Section 3.1(a), or
(y) the Market Rate will be determined by appraisal, made by a
board of appraisers consisting of three reputable real estate
appraisers, each of whom has been actively involved in commercial
real estate in Minneapolis, Minnesota no less than ten years prior
to appointment (each an “ Expert ”). In
addition, each such Expert shall have been active over the five
(5) year period ending on the date of such appointment in the
appraisal of comparable commercial properties in the vicinity of
the Building. One Expert will be appointed by Tenant, and one
Expert will be appointed by Landlord. Both Landlord and Tenant
shall appoint their Expert within fifteen (15) days after the
failure of Landlord and Tenant to agree on the Market Rate. The
third Expert will be appointed by the first two Experts. If the
first two Experts are unable to agree on a third Expert
Page 5
within ten (10) days after the
appointment of the second Expert, or if either party refuses or
neglects to appoint an Expert as herein provided within fifteen
(15) days after the appointment of the first Expert, then the
third Expert or the second Expert, whose appointment was not made
as provided above, may be appointed by any active judge of the
District Court of the County where the Premises is located. If
determinations of at least two of the Experts are identical in
amount, then that amount will be determined to be the Market Rate.
If the determinations of all three Experts are different in amount,
the highest appraised value will be averaged with the middle value
(that average being referred to as “ Sum A
”). The lowest appraised value will be averaged with the
middle value (that average being referred to as “
Sum B ”), and the Market Rate will be determined
as follows: (i) if neither Sum A nor Sum B differs
from the middle appraised value by more than 10% of the middle
appraised value, then the Market Rate will be the average of the
three appraisals, (ii) if either Sum A or Sum B (but
not both) differs from the middle appraised value by more than 10%
of the middle appraised value, then the Market Rate will be the
average of the middle appraised value and the appraised value
closer in amount to the middle appraised value, and (iii) if
both Sum A and Sum B differ from the middle appraised
value by more than 10% of the middle appraised value, then the
Market Rate will be equal to the middle appraised value. Written
notice of the Market Rate as duly determined in accordance with
this Section shall be promptly given to Landlord and Tenant and
will be binding and conclusive on them. Each party will bear its
own expenses in connection with the Market Rate determination
proceedings, except that the fees of the Experts will be borne
equally. If, for any reason, the Market Rate has not been
determined at the time of the commencement of the Extension Term,
then the Market Rate will be the amount set forth in
Landlord’s determination, and if the determination of the
Experts as provided above indicates that a lesser or greater amount
should have been paid than that which was actually paid, a proper
adjustment will be made in a payment from Landlord to Tenant, or
Tenant to Landlord, as the case may be, such payment to be made
within thirty (30) days of the determination of the Market
Rate.
3.2 Additional Rent: Increases in
Operating Costs and Taxes .
(a) Definitions .
(1) “ Operating Costs
” means all costs of managing, operating, maintaining and
repairing the Property, including, but not limited to, all costs,
expenditures, fees and charges for: (A) operation, maintenance
and repair of the Property (including without limitation,
(i) maintenance, repair and replacement of glass,
(ii) maintenance and repair, but not replacement, of the roof
covering or membrane, and (iii) maintenance, repair and
replacement of landscaping); (B) utilities and services
(including trash removal), servicing the Common Areas and
associated supplies and materials; (C) compensation (including
employment taxes and fringe benefits) for persons who perform
duties in connection with the operation, management, maintenance
and repair of the Project, such compensation to be appropriately
allocated for persons who also perform duties unrelated to the
Project and limited to the Property Manager or maintenance
personnel; (D) property (including coverage for earthquake and
flood if carried by Landlord), liability, rental income and other
insurance relating to the Project, and expenditures for deductible
amounts paid under such insurance; (E) licenses, permits and
inspections; (F) complying with the requirements of any law,
statute, ordinance or governmental rule or regulation or any orders
pursuant thereto (collectively “ Laws ”),
excluding, however, compliance with Laws to the extent that on the
date of this Lease, such compliance was required and had not yet
commenced work to achieve such compliance; (G) amortization of
new capital improvements required to comply with Laws, excluding,
however, capital improvements necessary to comply with Laws to the
extent that on the date of this Lease, such capital improvements
were required to comply with Laws and Landlord had not commenced or
completed such capital improvements); (H) amortization of
capital improvements which are intended to reduce Operating Costs
or improve the utility, efficiency or capacity of any Building
System, with interest on the unamortized balance at the rate paid
by Landlord on funds borrowed to finance such capital improvements
(or, if Landlord finances such improvements out of Landlord’s
funds without borrowing, the rate that Landlord would have paid to
borrow such funds, as reasonably determined by Landlord), over the
useful life as determined by Generally Accepted Accounting
Principles (“GAAP”) uniformly applied to properties
similar in nature to the Property (i.e. Office-Warehouse-Light
Industrial properties), but only to the extent that savings is
recognized in reduced expenses,; (I) property management fees
(not to exceed five percent (5%) of gross rentals for the
Project); (J) any outside (i.e. provided by any third party)
accounting, legal and other professional services incurred in
connection with the operation of the Project and the calculation of
Operating Costs and Taxes; (K) contesting the validity or
applicability of any Laws that may affect the Property;
(L) the Building’s share of any shared or Common Area
maintenance fees and expenses actually incurred (i.e. not on an
accrual basis); and (M) any other cost, expenditure, fee or
charge, whether or not herein before described, which in accordance
with generally accepted property management practices would be
considered an
Page 6
expense of managing, operating, and
maintaining the Project. Operating Costs for any calendar year
during which average occupancy of the Building is less than one
hundred percent (100%) shall be calculated based upon the
Operating Costs that would have been incurred if the Building had
an average occupancy of one hundred percent (100%) during the
entire calendar year; provided, however (x) the total
collected Operating Costs shall be no higher than those actually
incurred for the Building to be determined and reconciled pursuant
to Section 3.2(b) herein, and (y) this shall not affect
Tenant’s abatement of Additional Rent pursuant to
Section 3.2(b)(1) for the first six (6) months of the
Initial Term of the Lease.
Operating Costs shall not include
(i) capital improvements (except as otherwise provided above);
(ii) costs of special services rendered to individual tenants
(including Tenant) for which a special charge is made;
(iii) interest and principal payments on loans or indebtedness
secured by the Building; (iv) costs of improvements for Tenant
or other tenants of the Building; (v) costs of services or
other benefits of a type which are not available to Tenant but
which are available to other tenants or occupants, and costs for
which Landlord is reimbursed by other tenants of the Building other
than through payment of tenants’ shares of increases in
Operating Costs and Taxes; (vi) leasing commissions,
attorneys’ fees and other expenses incurred in connection
with leasing space in the Building or enforcing such leases or the
collection of bad debt; (vii) depreciation or amortization,
other than as specifically enumerated in the definition of
Operating Costs above; (viii) costs, fines or penalties
incurred due to Landlord’s violation of any Law;
(ix) any late fees for Landlord’s failure to timely pay
any Operating Costs as they come due and payable; (x) any
expenses incurred for structural repairs and replacements and roof
replacement; and (xi) any proration for compensation of any
employee of Landlord other than the Property Manager or maintenance
personnel of the property.
(2) “ Taxes ”
means: all real property taxes and general, special or district
assessments or other governmental impositions, of whatever kind,
nature or origin, imposed on or by reason of the ownership or use
of the Property; service payments in lieu of taxes and taxes and
assessments of every kind and nature whatsoever levied or assessed
in addition to, in lieu of or in substitution for existing or
additional real or personal property taxes on the Property or the
personal property described above; and the reasonable cost of
contesting by appropriate proceedings the amount or validity of any
taxes, assessments or charges described above.
(3) “ Tenant’s
Share ” means the Rentable Area divided by the Building
Rentable Area, as set forth in the Basic Lease Information. If the
Building Rentable Area is changed or the Rentable Area is changed
by Tenant’s leasing of additional space hereunder or for any
other reason, Tenant’s Share shall be adjusted
accordingly.
(b) Additional Rent
.
(1) Tenant shall pay Landlord, as
“ Additional Rent ” for each calendar year or
portion thereof during the Term, Tenant’s Share of the sum of
(x) Operating Costs for such period, and (y) Taxes for
such period. During the first six months of the Initial Term of
this Lease, no Additional Rent payable pursuant to this
Section 3.2 shall be paid nor incurred by the
Tenant.
(2) Prior to the beginning of each
calendar year, Landlord shall notify Tenant of Landlord’s
estimate of Operating Costs, Taxes and Tenant’s Additional
Rent for the following calendar year. Commencing on the first day
of January of each calendar year and continuing on the first day of
every month thereafter in such year, Tenant shall pay to Landlord
one-twelfth (1/12th) of the estimated Additional Rent. If
Landlord thereafter estimates that Operating Costs or Taxes for
such year will vary from Landlord’s prior estimate, Landlord
may, by notice to Tenant, revise the estimate for such year (and
Additional Rent shall thereafter be payable based on the revised
estimate).
(3) As soon as reasonably
practicable after the end of each calendar year during the Term or
any Extension Term, Landlord shall furnish Tenant a statement with
respect to such year, showing Operating Costs, Taxes and Additional
Rent for the year and the total payments made by Tenant with
respect thereto. Unless Landlord delivers such statement, or any
subsequent amendment, correction or modification thereof, to Tenant
within twenty-four (24) months after the end of the calendar
year in which such Additional Rent was incurred by Landlord, then
Landlord shall not be permitted to recover any additional
Additional Rent from Tenant relating to such calendar year. Unless
Tenant raises any objections to Landlord’s statement within
twenty-four (24) months after receipt of the
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same, such statement shall
conclusively be deemed correct and Tenant shall have no right
thereafter to dispute such statement or any item therein or the
computation of Additional Rent based thereon. If Tenant objects to
such statement, then Landlord shall provide Tenant with reasonable
verification of the figures shown on the statement and the parties
shall negotiate in good faith to resolve any disputes. Any
objection by Tenant to Landlord’s statement and resolution of
any dispute shall not postpone the time for payment of any amounts
due Tenant or Landlord based on Landlord’s statement, nor
shall any failure of Landlord to deliver Landlord’s statement
in a timely manner relieve Tenant of Tenant’s obligation to
pay any amounts due Landlord based on Landlord’s
statement.
(4) If Tenant’s Additional
Rent as finally determined for any calendar year exceeds the total
payments made by Tenant on account thereof, Tenant shall pay
Landlord the deficiency within thirty (30) days of
Tenant’s receipt of Landlord’s statement. If the total
payments made by Tenant on account thereof exceed Tenant’s
Additional Rent as finally determined for such year, Tenant’s
excess payment shall be credited toward the Rent next due from
Tenant under this Lease. For any partial calendar year at the
beginning or end of the Term, Additional Rent shall be prorated on
the basis of a 365-day year by computing Tenant’s Share of
Operating Costs and Taxes for the entire year and then prorating
such amount for the number of days during such year included in the
Term. Notwithstanding the termination of this Lease, Landlord shall
pay to Tenant or Tenant shall pay to Landlord, as the case may be,
within thirty (30) days after Tenant’s receipt of
Landlord’s final statement for the calendar year in which
this Lease terminates, the difference between Tenant’s
Additional Rent for that year, as finally determined by Landlord,
and the total amount previously paid by Tenant on account
thereof.
3.3 Payment of Rent . All
amounts payable or reimbursable by Tenant under this Lease,
including late charges and interest (collectively, “
Rent ”), shall constitute rent and shall be payable
and recoverable as rent in the manner provided in this Lease. All
sums payable to Landlord on demand under the terms of this Lease
shall be payable within thirty (30) days after notice from
Landlord of the amounts due. All rent shall be paid without offset,
recoupment or deduction in lawful money of the United States of
America to Landlord at Landlord’s Address for Payment of Rent
as set forth in the Basic Lease Information, or to such other
person or at such other place as Landlord may from time to time
designate.
4. SECURITY DEPOSIT. On execution of
this Lease, Tenant shall deposit with Landlord the amount specified
in the Basic Lease Information as the Security Deposit (the “
Security Deposit ”), as security for the performance
of Tenant’s obligations under this Lease. Landlord may (but
shall have no obligation to) use the Security Deposit or any
portion thereof to cure any Event of Default under this Lease or to
compensate Landlord for any damage Landlord incurs as a result of
Tenant’s failure to perform any of Tenant’s obligations
hereunder. In such event, Tenant shall pay to Landlord on demand an
amount sufficient to replenish the Security Deposit. If Tenant is
not in default at the expiration or termination of this Lease,
Landlord shall return to Tenant the Security Deposit or the balance
thereof then held by Landlord and not applied as provided above.
Landlord may commingle the Security Deposit with Landlord’s
general and other funds. Landlord shall not be required to pay
interest on the Security Deposit to Tenant.
5. USE AND COMPLIANCE WITH
LAWS.
5.1 Use . The Premises shall
be used and occupied for the Permitted Use and for no other use or
purpose. Tenant shall comply with all present and future Laws
relating to Tenant’s use or occupancy of the Premises (and
make any repairs, alterations or improvements as required to comply
with all such Laws), and shall observe the Building Rules (as
defined in Section 27 - Rules and Regulations ). Tenant
shall not do, bring, keep or sell anything in or about the Premises
that is prohibited by, or that will cause a cancellation of or an
increase in the existing premium for, any insurance policy covering
the Property or any part thereof. Tenant shall not permit the
Premises to be occupied or used in any manner that will constitute
waste or a nuisance, or disturb the quiet enjoyment of or otherwise
annoy other tenants in the Building. No waste, materials or refuse
shall be dumped upon or permitted to remain outside the Premises
and on the Property. Tenant shall not, without the prior consent of
Landlord, (i) bring into the Building or the Premises anything
that may cause substantial noise, odor or vibration, overload the
floors in the Premises or the Building or any of the heating,
ventilating and air-conditioning (“ HVAC ”),
mechanical, plumbing, electrical, fire protection, life safety,
security or other systems in the Building (“ Building
Systems ”), or jeopardize the structural integrity of the
Building or any part thereof; (ii) connect to the utility
systems of the Building any apparatus, machinery or other equipment
other than that for which the utility systems have been designed;
or (iii) connect to any electrical circuit in the Premises any
equipment or other load with aggregate electrical power
requirements in excess of 80% of the rated capacity of the
circuit.
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5.2 Hazardous Materials
.
(a) Definitions .
(1) “ Hazardous
Materials ” shall mean any substance: (A) that now
or in the future is regulated or governed by, requires
investigation or remediation under, or is defined as a hazardous
waste, hazardous substance, pollutant or contaminant under any
governmental statute, code, ordinance, regulation, rule or order,
and any amendment thereto, including the Comprehensive
Environmental Response Compensation and Liability Act, 42 U.S.C.
§9601 et seq ., and the Resource Conservation
and Recovery Act, 42 U.S.C. §6901 et seq ., or
(B) that is toxic, explosive, corrosive, flammable,
radioactive, carcinogenic, dangerous or otherwise hazardous,
including gasoline, diesel fuel, petroleum hydrocarbons,
polychlorinated biphenyls (PCBs), asbestos, radon and urea
formaldehyde foam insulation.
(2) “ Environmental
Requirements ” shall mean all present and future Laws,
orders, permits, licenses, approvals, authorizations and other
requirements of any kind applicable to Hazardous
Materials.
(3) “ Handled by Tenant
” and “ Handling by Tenant ” shall mean
and refer to any installation, handling, generation, storage, use,
disposal, discharge, release, abatement, removal, transportation,
or any other activity of any type by Tenant or its agents,
employees, contractors, licensees, assignees, sublessees,
transferees or representatives (collectively, “
Tenant’s Representatives ”) or its guests,
customers, invitees, or visitors (collectively, “
Tenant’s Visitors ”), at or about the Premises
in connection with or involving Hazardous Materials.
(4) “ Environmental
Losses ” shall mean all costs and expenses of any kind,
damages, fines and penalties incurred in connection with any
violation of and compliance with Environmental Requirements and all
losses of any kind attributable to the diminution of value, loss of
use or adverse effects on marketability or use of any portion of
the Premises or Property.
(b) Tenant’s Covenants
. Except for the Permitted Hazardous Materials (defined herein), no
Hazardous Materials shall be Handled by Tenant at or about the
Premises or Property without Landlord’s prior written
consent, which consent may be granted, denied, or conditioned upon
compliance with Landlord’s requirements, all in
Landlord’s sole discretion. Notwithstanding the foregoing,
normal quantities and use of those Hazardous Materials customarily
used in the conduct of Tenant’s Permitted Use, such as copier
fluids and cleaning supplies (“ Permitted Hazardous
Materials ”), may be used and stored at the Premises
without Landlord’s prior written consent, provided that
Tenant’s activities at or about the Premises and Property and
the Handling by Tenant of all Hazardous Materials shall comply at
all times with all Environmental Requirements. At the expiration or
termination of the Lease, Tenant shall promptly remove from the
Premises and Property all Hazardous Materials Handled by Tenant at
the Premises or the Property. Tenant shall keep Landlord fully and
promptly informed of all Handling by Tenant of Hazardous Materials
other than Permitted Hazardous Materials. Tenant shall be
responsible and liable for the compliance with all of the
provisions of this Section by all of Tenant’s Representatives
and Tenant’s Visitors, and all of Tenant’s obligations
under this Section (including its indemnification obligations under
paragraph (e) below) shall survive the expiration or
termination of this Lease.
(c) Compliance . Tenant shall
at Tenant’s expense promptly take all actions required by any
governmental agency or entity in connection with or as a result of
the Handling by Tenant of Hazardous Materials at or about the
Premises or Property, including inspection and testing, performing
all cleanup, removal and remediation work required with respect to
those Hazardous Materials, complying with all closure requirements
and post-closure monitoring, and filing all required reports or
plans. All of the foregoing work and all Handling by Tenant of all
Hazardous Materials shall be performed in a good, safe and
workmanlike manner by consultants qualified and licensed to
undertake such work and in a manner that will not interfere with
any other tenant’s quiet enjoyment of the Property or
Landlord’s use, operation, leasing and sale of the Property.
Tenant shall deliver to Landlord prior to delivery to any
governmental agency, or promptly after receipt from any such
agency, copies of all permits, manifests, closure or remedial
action plans, notices, and all other documents relating to the
Handling by Tenant of Hazardous Materials at or about the Premises
or Property. If any lien attaches to the Premises or the Property
in connection with or as a result of the Handling by Tenant of
Hazardous Materials, and Tenant does not cause the same to be
released, by payment, bonding or otherwise, within forty-five
(45) days after the attachment thereof, Landlord shall have
the right but not the
Page 9
obligation to cause the same to be
released and any sums expended by Landlord (plus Landlord’s
administrative costs) in connection therewith shall be payable by
Tenant on demand.
(d) Landlord’s Rights .
Landlord shall have the right with twenty-four (24) hours
prior written notice (and without notice in emergencies), but not
the obligation, to enter the Premises at any reasonable time
(i) to confirm Tenant’s compliance with the provisions
of this Section 5.2, and (ii) to perform Tenant’s
obligations under this Section if Tenant has failed to do so after
reasonable written notice to Tenant. Landlord shall also have the
right to engage qualified Hazardous Materials consultants to
inspect the Premises and review the Handling by Tenant of Hazardous
Materials, including review of all permits, reports, plans, and
other documents regarding same. If Tenant fails to perform its
obligations under this Section 5.2 after written notice from
Landlord and such failure continues for a period of thirty
(30) days thereafter, then Landlord may, at its option, cure
such non-performance, and Tenant shall pay to Landlord on demand
the costs of Landlord’s consultants’ fees and all
reasonable costs incurred by Landlord in performing Tenant’s
obligations under this Section. Landlord shall use reasonable
efforts to minimize any interference with Tenant’s business
caused by Landlord’s entry into the Premises, but Landlord
shall not be responsible for any interference caused
thereby.
(e) Tenant’s
Indemnification . Tenant agrees to indemnify, defend, protect
and hold harmless Landlord and its partners or members and its or
their partners, members, directors, officers, shareholders,
employees and agents from all Environmental Losses and all other
claims, actions, losses, damages, liabilities, costs and expenses
of every kind, including reasonable attorneys’,
experts’ and consultants’ fees and costs, incurred at
any time and arising from or in connection with the Handling by
Tenant of Hazardous Materials at or about the Property or
Tenant’s failure to comply in full with all Environmental
Requirements with respect to the Premises. The obligations of
Tenant under this subsection (e) shall survive the expiration
or termination of this Lease.
(f) Landlord’s
Indemnification and Representation . Landlord agrees to
indemnify, defend, protect and hold harmless Tenant and its
partners or members and its or their partners, members, directors,
officers, shareholders, employees and agents from all Environmental
Losses and all other claims, actions, losses, damages, liabilities,
costs and expenses of every kind, including reasonable
attorneys’, experts’ and consultants’ fees and
costs, incurred at any time and arising from or in connection with
the Handling by Landlord of Hazardous Materials at or about the
Property or Landlord’s failure to comply in full with all
Environmental Requirements with respect to the Premises to the
extent such compliance arises because of Landlord’s Handling
of Hazardous Materials. “ Handling by Landlord ”
shall mean and refer to any installation, handling, generation,
storage, use, disposal, discharge, release, abatement, removal,
transportation, or any other activity of any type by Landlord or
its agents, employees, contractors, licensees, assignees,
sublessees, transferees or representatives (collectively, “
Landlord’s Representatives ”) or its guests,
customers, invitees, or visitors (collectively, “
Landlord’s Visitors ”), at or about the Property
in connection with or involving Hazardous Materials. In addition to
the foregoing, Landlord represents to Tenant, to the best of its
actual knowledge, and except as disclosed in any environmental
reports or other documentation delivered to Tenant on or before the
date of this Lease, if any, that there are no Hazardous Materials
present at the Premises. The obligations of Landlord under this
subsection (f) shall survive the expiration or termination of
this Lease.
5.3 Americans With Disabilities
Act . The parties agree that the liabilities and obligations of
Landlord and Tenant under that certain federal statute commonly
known as the Americans With Disabilities Act as well as the
regulations and accessibility guidelines promulgated thereunder as
each of the foregoing is supplemented or amended from time to time
(collectively, the “ ADA ”) shall be apportioned
as follows:
(a) If any of the Common Areas and
all rules and regulations applicable to the Premises, the Building
or the Project, fails to comply with the ADA, such nonconformity
shall be promptly made to comply by Landlord. Landlord shall also
cause the manager of the Building and the Project (the
“Manager”) to comply with the ADA in its operation of
the Building and the Project.
(b) Landlord agrees that the Tenant
Improvements to be constructed by Landlord pursuant to Exhibit
B shall be constructed in compliance with all ADA requirements
in effect as of the Commencement Date of this Lease. From and after
Commencement Date, Tenant covenants and agrees to conduct its
operations within the Premises in compliance with the ADA. If any
portion of the Premises fails to comply with the ADA, such
nonconformity shall be promptly made to comply (i) by Tenant
if (x) it is a new requirement under the ADA, (y) it is
required because of any Alterations or Tenant Improvements to be
constructed by Tenant at the Premises, or (z) it is required
because of Tenant’s
Page 10
particular use of the Premises other
than for general office/warehouse pur