AMENDED AND RESTATED OFFICE
LEASE
BY AND BETWEEN
MERRITT-LT1, LLC, LANDLORD
AND
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1.
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1
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2.
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2
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3.
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3
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4.
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3
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5.
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4
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6.
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6
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7.
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8
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8.
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ASSIGNMENT AND SUBLETTING
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9
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9.
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INCREASE IN LANDLORD’S INSURANCE
RATES
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10
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10.
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10
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11.
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14
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12.
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15
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13.
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15
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14.
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17
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15.
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18
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16.
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EXTERIOR OF PREMISES —
SIGNS
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18
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17.
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18
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18.
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19
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19.
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19
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20.
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19
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21.
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19
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22.
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20
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23.
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SUBORDINATION, NON-DISTURBANCE
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24.
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21
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25.
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21
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26.
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22
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27.
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LANDLORD’S RIGHT TO PERFORM
TENANT’S COVENANTS
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22
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28.
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NON-WAIVER OF FUTURE ENFORCEMENT
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29.
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23
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30.
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23
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31.
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23
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32.
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23
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33.
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23
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34.
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24
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35.
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25
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36.
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28
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37.
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29
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38.
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29
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39.
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FINAL AND ENTIRE AGREEMENT
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29
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40.
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29
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41.
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30
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42.
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30
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43.
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30
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44.
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30
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45.
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30
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46.
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31
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47.
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31
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48.
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31
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49.
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31
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50.
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31
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ii
THIS AMENDED
AND RESTATED OFFICE LEASE (the “Lease”), is made
this 29 th
day of May, 2009, by and between
MERRITT-LT1, LLC, a Maryland limited liability company, hereinafter
called “Landlord,” and NEUSTAR, INC., a Delaware
corporation, hereinafter called “Tenant.”
A. Landlord
and Tenant entered into a Lease dated May 19, 2000 for
premises located in Building VIII, Loudoun Tech Center, 45980
Center Oak Plaza, Sterling, Virginia 20166, as subsequently amended
(collectively, the “Original Lease”).
B. The
parties wish to amend the Original Lease to provide, inter alia,
that Tenant will lease the entire Building and the term of the
Original Lease shall be extended.
C. The
Landlord and Tenant now wish to amend and restate the Original
Lease in its entirety to memorialize such new or modified terms and
provisions, as hereinafter provided.
NOW,
THEREFORE, in consideration of the premises, and other good and
valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Landlord and the Tenant agree that the
foregoing Recitals are true and correct and are incorporated herein
by reference, and further agree to amend and restate the Original
Lease in its entirety as follows:
WITNESSETH, that in consideration of the rental hereinafter
agreed upon and the performance of all the conditions and covenants
hereinafter set forth on the part of the Tenant to be performed,
the Landlord does hereby lease unto the said Tenant, and the latter
does lease from the former the following premises (hereinafter
sometimes called the “Premises”):
Being all
those Premises outlined in red on the Lease Plan attached hereto as
Exhibit A , said Premises containing
approximately 40,440 rentable square feet and comprising all of the
rentable square footage in the Building (as hereinafter defined).
The Tenant’s space, being located within the building
(hereinafter sometimes called the “Building”) known as
“Building VIII,” is situate on a parcel of land
(hereinafter sometimes called the “Property”) located
in the development known generally as Loudoun Tech Center (the
“Park”), at 45980 Center Oak Plaza, Sterling, Loudoun
County, Virginia 20166.
This Lease is made
subject to the following additional terms, covenants and
conditions:
1. Term;
Renewal Options.
(a) The
term of this Lease shall be for a period of ten (10) year(s),
beginning on September 1, 2010 (the “Lease Commencement
Date”). Landlord agrees that it will, prior to the Lease
Commencement Date, at its sole cost and expense, commence and
pursue to completion the Landlord’s Work set forth on
Exhibit B attached hereto.
(b) Provided
there is no existing Event of Default by Tenant hereunder, Landlord
hereby grants to Tenant the right to renew the Lease for up to four
(4) additional terms of five (5) years each by giving Landlord
written notice of Tenant’s election to exercise any such
renewal option not later than 365 days prior to the
commencement of the applicable renewal term. In the event any
option is exercised in a timely manner, the Lease shall be extended
for the applicable renewal term under the same terms and conditions
as are set forth in the Lease, except that there shall be no
further renewal options after the fourth renewal term and the base
rent, which shall not include additional rent required under this
Lease for Operating Costs, CAM, and similar expenses charged
hereunder (the “Base Rent”), shall be increased
annually during each year of the renewal terms to a rental rate
equal to 102.50% of the Base Rent for the immediately preceding
year.
(a) As
used herein, the “First Rental Year” shall mean the
period from the Lease Commencement Date to the end of the twelfth
(12th) full calendar month thereafter; subsequent Lease years shall
commence on the first (1st) day of the next month of the Lease term
and on each anniversary thereafter. The Base Rent shall be as
follows:
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Term:
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Annual Rate:
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Monthly Rate:
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Per Sq. Ft.:
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$
|
765,529.20
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$
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63,794.10
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$
|
18.93
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|
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|
$
|
784,536.00
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|
$
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65,378.00
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$
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19.40
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$
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804,351.60
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$
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67,029.03
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$
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19.89
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|
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|
$
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824,571.60
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|
$
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68,714.30
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|
$
|
20.39
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|
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|
$
|
845,196.00
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|
$
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70,433.00
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$
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20.90
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$
|
866,224.80
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$
|
72,185.40
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$
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21.42
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$
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887,658.00
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$
|
73,971.50
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$
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21.95
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$
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909,900.00
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$
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75,825.00
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$
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22.50
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$
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932,546.40
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$
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77,712.20
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$
|
23.06
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$
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956,001.60
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$
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79,666.80
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$
|
23.64
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Tenant
covenants and agrees to pay all rentals reserved hereunder to
Landlord, without notice or demand, in advance, on the first (1st)
day of each month during the term of this Lease, without setoff or
deduction except as set forth in Section 14. The rental for
any fractional monthly periods at the beginning or at the end of
each Lease year shall be prorated on a per diem basis and shall be
payable on the date upon which the Lease term commences, and on the
first (1st) day of the last partial month of the Lease term,
respectively. Tenant covenants and agrees that it will not prepay
any rent more than one (1) month in advance without
Landlord’s prior written consent.
(b) All
rentals shall be paid to MERRITT PROPERTIES, LLC c/o
Merritt, 2066 Lord Baltimore Drive, Baltimore, Maryland 21244 ,
or at such other place or to such appointee of the Landlord as the
Landlord may from time to time designate in writing.
2
Tenant
covenants and agrees to use and occupy the Premises solely for the
following purposes: Offices for the use of Tenant, its officers,
agents and employees, and other uses incidental thereto not
prohibited by applicable law, including without limitation
administration, training (for Tenant or Tenant’s customers or
clients), food preparation by Tenant’s employees or caterers
hired by Tenant for the employees’ own consumption in
kitchens provided for such employees, data center, call center,
light assembly (such as electronic lab work, software development,
systems integration, assembly of boxes, and the like) and a private
fitness center for use by Tenant’s employees. Tenant agrees
to comply with all applicable zoning and other laws and
regulations, and to provide and install at its own expense any
additional equipment or alterations required to comply with all
such laws and regulations as required from time to time (excluding
any equipment or alterations required by law in all buildings of
similar use or zoning in the jurisdiction containing the Building).
Tenant further agrees not to make, or cause or permit to be made,
any use of the Premises which shall constitute a nuisance or shall
interfere with the rights of other tenants in the Building to
quietly enjoy, use and occupy the Premises leased by them and the
common areas of the Building, or which shall overburden the
available parking provided by Landlord at a rate equal to four
parking spaces per 1,000 square feet of leaseable demised premises.
Tenant will not permit, allow or cause any public or private
auction sales or sheriffs’ or constables’ sales to be
conducted on or from the Premises.
4. Service and Utilities.
(a) Subject
to the provisions of subsection (c) below, Landlord agrees
that all hot and cold water, sewer, electricity, gas, telephone and
other utilities are available and shall be supplied to the Premises
in sufficient quantities to meet Tenant’s reasonably
anticipated requirements for general office use.
(b) Tenant
agrees to pay directly to the service provider or, if not
separately billed, to Landlord as additional rent, all water rent
and sewer service charges chargeable to the Building. Tenant shall
pay all costs of electricity, gas, telephone and other utilities
used or consumed on the Premises, together with all taxes, levies
or other charges on such utilities. If Tenant defaults in payment
of any such utilities, charges or taxes, Landlord may, at its
option following not less than ten (10) days’ prior
written notice to Tenant, pay the same for and on Tenant’s
account, in which case Tenant shall promptly reimburse Landlord
therefor.
(c) Landlord
agrees to provide the above-listed utilities. Landlord also agrees
to provide maintenance, repair and refurbishing for the roof,
exterior Building, exterior site, and Building, utility and fire
and life safety systems (but excluding the HVAC system for the data
center, the exterior generator for the Building, and the specialty
fire suppression system, all collectively referred to as the
“Tenant’s Specialty Equipment”); and landscaping,
maintenance, repair, refuse removal from the exterior dumpster (it
being understood that Tenant will be responsible for maintenance,
repair and replacement of Tenant’s Specialty Equipment and
for its own refuse removal within the interior of the Premises),
window cleaning, snow removal, illumination of the parking and
common areas within the Property, and access to and use of the
Property twenty-four hours per day, seven days per week. Tenant
shall, at its own expense, provide its own janitorial and
maintenance services for maintenance of the interior of
the
3
Premises
throughout the term of the Lease, and shall keep all trash and
debris properly stored until picked up at Tenant’s
expense.
(d) Landlord
shall not be in default hereunder or be liable for any damages
directly or indirectly resulting from, nor shall the rent be abated
by reason of (i) the installation, use of interruption of use
of any equipment in connection with the furnishing of any of the
services to be furnished by Landlord as set forth in this Lease;
(ii) failure to furnish or delay in furnishing any such
services where such failure or delay is caused by accident or any
condition or event beyond the reasonable control of Landlord, or by
the making of necessary repairs or improvements to the Premises or
Building; or (iii) the limitation, curtailment or rationing
of, or restrictions on, use of water, gas or any other form of
energy serving the Premises or Building; except in each case to the
extent caused by Landlord’s negligence or willful acts or
that of Landlord’s agents, employees, contractors, invitees
or licensees. Landlord shall not be liable under any circumstances
for a loss of or injury to property or business, however occurring,
through or in connection with or incidental to failure to furnish
any such services, except to the extent caused by Landlord’s
negligence or willful acts or that of Landlord’s agents,
employees, contractors, invitees or licensees.
(a) “Operating
Costs” are the reasonable costs of managing, operating,
maintaining, repairing, refurbishing and insuring the Building and
all common areas and facilities within the Property (including, but
not limited to, elevators, stairwells, loading areas, parking
areas, pavements and walkways, landscaping, gardening, storm
drainage, and other utility systems); the cost of utilities for
such common areas and facilities; fire protection and security
services, if any; traffic control equipment; repairs; parking lot
striping; lighting; sanitary control; janitorial services for the
common areas; removal of trash, rubbish, garbage and other refuse;
depreciation on or rentals of machinery and equipment used in such
maintenance over its useful life on a straight line basis; the cost
of personnel on-site to implement such services; all insurance of
whatsoever nature kept, or caused to be kept, by Landlord out of or
in connection with the ownership of the Building and common areas,
including, but not limited to, insurance insuring the same against
loss or damage by, or abatement of rental income resulting from,
fire and other such hazards, casualties, and contingencies, and
liability and indemnity insurance; plus the actual administrative
and overhead costs of Landlord’s on-site personnel in
conformance with Landlord’s current practice as of the date
of this Lease. Such costs shall not include (i) the cost of
any capital improvements or capital expenditures in or to the
Building, the Property or the Premises as determined under
generally accepted accounting principles; (ii) work which
Landlord performs specifically for or at the expense of any other
tenant of the Building; (iii) maintenance of the HVAC system
serving the Premises and maintenance of any other HVAC systems
serving other portions of the Building; (iv) trash removal
from the dumpster located on the exterior of the Building;
(v) costs related to ground rent, interest or debt service;
(vi) penalties, fines or late charges, or any other costs which may
be incurred as the result of the negligent or willful misconduct of
Landlord or Landlord’s agents, employees, invitees, licensees
and contractors; (vii) any amounts payable to Landlord or any
affiliate of Landlord, except payment for services rendered where
the charges for such services are reasonably commensurate with the
charges for similar services provided by similarly qualified
persons in the geographical location in which the Property is
located; (viii) management fees in excess of four percent
(4%)
4
of gross rent
received by Landlord; (ix) depreciation; (x) reserves;
(xi) any reimbursed expense; (xii) legal and accounting
fees; (xiii) environmental clean-up expenses;
(xiv) Landlord’s overhead and administrative expenses
for the off-site personnel of Landlord; (xv) leasing or sales
commissions, marketing costs or promotional expenses; or
(xvi) costs relating to casualty or condemnation.
“Operating Costs” shall also include all taxes and
assessments (as hereinafter defined) levied or assessed against the
Property and Building, whether as a result of an increase in the
tax rate, or the levy, assessment or imposition of any tax on real
estate as such not now levied, assessed or imposed, including,
without limitation, assessments, fees or charges of the Loudoun
Tech Owner’s Association, its successors or assigns, or other
community or neighborhood association. The foregoing shall apply to
real estate taxes assessed against the common areas or Building
generally, and resulting from any improvements placed thereon by
Tenant. “Taxes” as used herein shall also include, but
not by way of limitation, all paving taxes, special paving taxes,
special taxing district assessments and any and all other benefits
or assessments which may be levied on the Property or the Building,
but shall not include any income tax (on the income or rent payable
hereunder or otherwise), and shall not include taxes or assessments
related to other buildings or improvements located within the
Property, franchise, transfer, inheritance or capital stock taxes.
“Taxes” shall also include all reasonable expenses
incurred by Landlord (including reasonable attorneys’ fees
and costs) in contesting any increase in, or applying for any
reduction of, a tax assessment.
(b)
“CAM” shall mean the total costs incurred by
Landlord for the operation, maintenance, repair, insuring and
management of all common facilities within Landlord’s entire
property, consisting of approximately forty-three (43) acres
(the “Park”) including, but not limited to, common
roads, snow removal, lighting of common areas, Taxes payable by
Landlord, or its successors, with respect thereto and other similar
operational and maintenance expenses. CAM shall not include any
Operating Costs incurred or payable in connection with any other
buildings (and their adjacent parking and common areas) within the
Park, it being intended that CAM shall include only such costs
which are incurred by Landlord for the common benefit of all
tenants of the Park, such as access roads, illumination thereof,
etc.
(c) Tenant
shall pay Landlord its proportionate share of Operating Costs
throughout the Lease term, which proportionate share is the same
proportion which the rentable square foot area of the Premises
(40,440 rentable square feet) bears to the total rentable square
foot area of the Building (40,440 square feet) or one hundred
percent (100%) (“Tenant’s Percentage”). Tenant
shall also pay Landlord its proportionate share of CAM, which shall
be determined by dividing the total rentable square foot of the
Building by the total rentable square foot area of all improvements
within the Park (392,289 rentable square feet) and multiplying the
same by Tenant’s Percentage.
(d) Anything
in this Lease to the contrary notwithstanding, Tenant shall pay to
Landlord, as additional rent, an amount equal to the product
obtained by multiplying the number of rentable square feet
comprising the Premises by the actual cost per rentable square foot
of (i) water, sewer, gas, electric and all other utility
services for the Property or Park, including but not limited to
utilities for the heating and cooling of the Building (both common
areas and space leased to tenants), and (ii) snow and ice
removal and all costs associated with such snow and ice removal. To
the extent that any such costs are excluded from the calculation of
Operating
5
Expenses or CAM
or are billed separately to Tenant under this Section 5(d) or
otherwise, the same shall not also be included in “Operating
Expenses” or as part of “CAM” under this Section
5.
(e) Landlord
shall notify Tenant from time to time of the amount which Landlord
estimates will be the amount payable by Tenant in accordance with
subsections (b) and (c) above, and Tenant shall pay such
amounts to Landlord in equal monthly installments, in advance, on
the first day of each month, simultaneously with payments of the
rent reserved pursuant to Section 2 hereof. On or before
April 30 th of
each year of the term, Landlord shall submit to Tenant a statement
showing the actual amounts incurred by Landlord as set forth in
subsections (b) and (c), the amount theretofore paid by Tenant, and
the amount of the resulting balance due thereon, or overpayment
thereof, as the case may be. In the event any balance may be due by
Tenant, Tenant shall pay said balance within thirty (30) days
from the date of such statement. In the event Tenant has made any
overpayment, such overpayment shall be credited by Landlord against
the next installment or installments of rent and Operating Costs
which are due and payable hereunder, or if the term of this Lease
has expired, such overpayment shall be refunded by Landlord to
Tenant, without interest, within thirty (30) days after the
date of such statement. Each such statement submitted by Landlord
shall be final and conclusive between the parties hereto as to the
matters therein set forth, if no objection is raised with respect
thereto within one hundred fifty (150) days after submission
of each such statement, except to the extent that (a) if an
error or omission is discovered in a subsequent year which resulted
in an overcharge to Tenant of five percent (5%) or more, then
Tenant shall have the right, by written notice to Landlord within
thirty (30) days after such overcharge is discovered, to audit
Landlord’s records with respect to the preceding two Lease
years, or (b) if there is fraud or misrepresentation of a
material item in Landlord’s statement with respect to
Operating Costs or CAM for any Lease year, Tenant shall have the
right, by written notice to Landlord within thirty (30) days
after Tenant’s discovery thereof, to audit Landlord’s
books and records pertaining to Operating Costs and CAM for all
prior Lease years.
(f) Notwithstanding
any of the foregoing provisions of this Section 5,
(i) Operating Costs, as used herein, shall be allocated only
to the Building and all land and common area and facilities,
including parking areas, which are directly adjacent, allocated and
dedicated to the Building, (ii) the allocation of all direct
and indirect personnel costs shall be equitably spread across all
of the buildings and sites in the entire Park, and not just against
the leased portions of the buildings in the Park, (iii) the
allocation of CAM fees shall not be charged or allocated against
vacant office space in the Park, and (iv) Tenant shall have
thirty (30) days from the date of Tenant’s receipt of the
year end invoice to pay its pro rata share of Operating Costs and
CAM.
6. Repairs and Maintenance.
(a) Except
as expressly provided in Section 4(c), this Section 6 or
Exhibit B , Landlord shall be under no
liability, nor have any obligation to do any work or make any
repairs in or to the Premises, and any work which may be necessary
to outfit the Premises for Tenant’s occupancy or for the
operation of Tenant’s business therein is the sole
responsibility of Tenant and shall be performed by Tenant at its
own cost and expense. Tenant acknowledges that it is in possession
of the Premises and has fully inspected the Premises prior to
execution of this Lease,
6
and that
Landlord has made no warranties or representations with respect to
the condition or state of repairs of the Premises except as
specifically provided in this Lease. In furtherance of its
obligations under Section 4(c), Landlord shall make all
structural repairs to the roof, walls and foundations of the
Building as needed and shall maintain and repair all Building
systems (excluding Tenant’s Specialty Equipment) all common
areas, grounds and land in reasonably good condition.
Notwithstanding the foregoing, other than routine periodic
maintenance, (i) Landlord’s responsibility for repairing
any of the foregoing items shall arise only after a reasonable time
has elapsed after Tenant has notified Landlord in writing of the
necessity for any such repairs; and (ii) Tenant (and not
Landlord) shall be responsible for the repairs of any such items if
the necessity therefor was caused in whole or primarily in part by
the negligent act or omission or misuse of Tenant, its agents,
officers, employees, contractors, licensees, sublessees or invitees
(except to the extent the cost of such work is provided through
insurance maintained by Landlord under this Lease).
(b) Tenant,
at Tenant’s sole expense, shall, except for services
furnished by Landlord pursuant to Section 4 and this
Section 6, maintain the Premises in good order, condition, and
repair, including all of Tenant’s Specialty Equipment and the
interior surfaces of the ceilings, walls and floors, all doors, all
interior windows, and all plumbing, pipes and fixtures, electrical
wiring, switches and fixtures, building standard furnishings and
special items and equipment installed by or at the expense of
Tenant. Tenant’s maintenance obligations are limited to those
items within its Premises and Tenant has no obligation to maintain
wiring, plumbing, pipes or fixtures or other items outside the
Premises (except for Tenant’s Specialty Equipment), unless
the damage thereto was caused primarily by the negligent act of
Tenant, its agents, officers, employees, contractors or invitees.
Tenant shall also be responsible for the cost to maintain at all
times in good order, condition and repair, all heating,
ventilating, air conditioning and other separate climate control
equipment that is installed for any computer or similar equipment,
designed specifically for Tenant (e.g. for a computer or telephone
room), whether the same was installed initially, or at a later
date, by Landlord or by Tenant. The costs incurred by Landlord to
maintain such climate control equipment shall be billed to Tenant
as additional rent, and shall be payable by Tenant within thirty
(30) days following receipt of the billing
statement.
(c) Tenant
shall be responsible for all repairs in and to the Building the
need for which arises out of (i) the moving of Tenant’s
property into or out of the Building; or (ii) any negligence of
Tenants, its agents, contractors, employees or invitees (except to
the extent that the cost thereof is covered by insurance maintained
by Landlord under this Lease).
(d) If
Tenant fails to maintain the Premises in good order, condition and
repair, Landlord may give Tenant notice to do such acts as are
reasonably required to so maintain the Premises. If Tenant fails to
commence such work promptly and diligently prosecute it to
completion, Landlord shall have the right, following not less than
ten (10) days’ prior written notice to Tenant (except if
such failure results in an emergency condition, the notice period
may be reduced commensurate with such emergency), to do such acts
and expend such funds at the expense of Tenant as are reasonably
required to perform such work. Any amount so expended by Landlord
shall be paid by Tenant within fifteen (15) days after demand,
with interest from the date of such work, at a rate equal to the
prime commercial rate of interest published by the Wall Street
Journal closest to the date such work was commenced. Landlord
shall have no liability to Tenant for any
7
damage,
inconvenience or interference with the use of the Premises by
Tenant as a result of performing any such work.
(e) Tenant
shall not place a load upon any floor of the Premises which exceeds
the load per square foot which such floor was designed to carry two
hundred pounds per square foot. Landlord reserves the right to
consult with its structural engineer if necessary, in
Landlord’s opinion, to resolve any questions concerning this
matter, in which event the determination of the engineer shall be
conclusive and the cost of any such determination shall be paid for
by Tenant upon demand. Tenant shall not install business machines
or mechanical equipment which cause noise or vibration to such a
degree as to be reasonably objectionable to Landlord or other Park
tenants.
(f) Except
as otherwise expressly provided in this Lease, Landlord shall have
no liability to Tenant nor shall Tenant’s obligations under
this Lease be reduced or abated in any manner whatsoever by reason
of any inconvenience, annoyance, interruption or injury to business
arising from Landlord’s making any repairs or changes which
Landlord is required or permitted by this Lease or by any other
tenant’s lease or required by law to make in or to any
portion of the Building or the Premises, absent the negligent or
willful acts or omissions of Landlord or Landlord’s agents,
employees, contractors, invitees or licensees. Landlord shall,
nevertheless, use reasonable efforts to minimize any interference
with Tenant’s business in the Premises and with the use by
Tenant, its agents, officers, contractors, employees and invitees
of the common areas associated therewith.
(g) As
soon as is reasonably practicable after Tenant obtains actual
knowledge thereof, Tenant shall give Landlord prompt notice of any
damage to or defective condition in any part or appurtenance of the
Building’s mechanical, electrical, plumbing, HVAC or other
systems serving, located in, or passing through the
Premises.
(h) Upon
the expiration or earlier termination of this Lease, Tenant shall
return the Premises to Landlord broom clean and in the same
condition as on the date hereof, except for all alterations that
have been performed by or on behalf of Tenant (which are governed
by Section 12); normal wear and tear; and condemnation or
casualty loss (provided such casualty loss is not caused by the
negligent act or omission of Tenant, its agents, officers,
contractors, employees or invitees (except to the extent covered by
insurance to be maintained under this Lease)). Any damage to the
Premises, including any structural damage, resulting from
Tenant’s use or from the removal of Tenant’s fixtures,
furnishings and equipment shall be repaired promptly by Tenant at
Tenant’s expense, except to the extent covered by
Landlord’s insurance. Landlord shall bill Tenant, as promptly
as is practicable, for the costs of any cleanup and/or repairs to
the Premises necessitated by Tenant’s use and occupancy
thereof (normal wear and tear and losses caused by Landlord’s
negligence or that of its employees, invitees, agents or
contractors excepted) and such costs shall constitute additional
rental due and payable hereunder notwithstanding any expiration or
termination of this Lease.
Tenant
covenants and agrees that it will, at its own expense, observe and
comply with all laws, orders, rules, requirements and regulations
of any and all governmental departments, bodies,
8
bureaus,
agencies and officers, and all rules, directions and requirements
of the local board of fire underwriters and the fire insurance
rating organizations having jurisdiction over the area in which the
Premises are situated, or other bodies or agencies now or hereafter
exercising similar functions in the area in which the Premises are
situated, in any way pertaining to the Premises or the use and
occupancy thereof. Notwithstanding the foregoing, Tenant shall not
be required to pay (and Landlord shall pay) the cost of any
building code requirement related to capital repairs or renovations
to the Building or Property except if (i) the same relates to
the interior of the Premises, and (ii) any such capital
repairs or renovations are required solely as the result of any
alterations made by or on behalf of Tenant to the Premises after
the date hereof or as a result of Tenant’s specific use. In
the event Tenant shall fail to comply with any of the aforesaid
laws, orders, rules, or requirements, Landlord or its agents may,
following not less than ten (10) days’ prior written
notice (provided that in the event of an emergency, the notice
period may be decreased commensurate with the emergency), enter the
Premises and take all such action and do all such work in or to the
Premises as may be necessary in order to cause compliance with such
laws, orders, rules or requirements, and Tenant covenants and
agrees to reimburse Landlord promptly upon demand for the
reasonable expenses incurred by Landlord in taking such action and
performing such work.
8. Assignment and Subletting.
(a) Tenant
covenants and agrees not to assign this Lease, in whole or in part,
nor to sublet the Premises, or any part thereof, nor grant any
license or concession for all or any part thereof, without the
prior written consent of Landlord in each instance first had and
obtained, which Landlord shall not unreasonably withhold, condition
or delay. Notwithstanding the foregoing, Tenant may assign this
Lease, or sublet all or any portion of the Premises to any
subsidiary, affiliate or successor of Tenant, or to any person or
entity that acquires substantially all the assets or capital stock
of Tenant (collectively “a Related Party”) without
Landlord’s prior written consent, but Tenant shall
nevertheless give Landlord written notice of any such assignment or
sublease within five (5) days after the effective date
thereof. If any assignment or subletting is permitted pursuant to
this subsection (whether or not to a Related Party), Tenant shall
not be relieved from any liability whatsoever under this Lease
Agreement. In the event that the amount of the rent or other
consideration to be paid to Tenant by any assignee or sublessee
(other than a Related Party) is greater than the rent required to
be paid by the Tenant to the Landlord pursuant to this Lease after
reimbursement of any reasonable costs incurred by Tenant (such as
tenant’s improvements, legal fees, brokerage commissions and
the like) incurred by Tenant in procuring such assignment or
sublease (the “Profit”), Tenant shall pay Landlord
fifty percent (50%) of the Profit when and as received by Tenant
from such assignee or sublessee. Landlord shall not be entitled to
any portion of the Profit in the event the assignee or sublessee is
a Related Party. Any consent by Landlord to an assignment or
subletting shall not constitute a waiver of the necessity of such
consent as to any subsequent assignment or subletting. An
assignment for the benefit of Tenant’s creditors shall not be
effective to transfer or assign Tenant’s interest under this
Lease unless Landlord shall have first consented thereto in
writing. In the event Tenant desires to assign this Lease or to
sublease more than fifty percent (50%) in the aggregate of the
Premises then leased by it to a party other than a Related Party,
and for fifty percent (50%) or greater of the remaining term under
this Lease, then Landlord shall have the right and option to
terminate this Lease, which right and option shall be exercisable
by written notice from Landlord to Tenant within ten
(10) business days from the date Tenant gives
9
Landlord
written notice (“Sublet Notice”) of its desire to
assign this Lease or sublet more than 50% of the Premises to other
than a Related Party. In such event, the termination of this Lease
shall be effective on the date that Tenant would have delivered the
Premises (or a portion thereof) to the assignee or subtenant, as
provided in its Sublet Notice. If Landlord fails to give timely
notice of such termination election, then Landlord shall be deemed
to have approved such requested sublease or assignment as requested
by Tenant.
(b) It
is agreed that it shall not be a reasonable basis for Landlord to
withhold permission for subletting or assignments by Tenant if
Landlord (i) is negotiating with the proposed subtenant(s) of
Tenant for other office space owned or controlled by Landlord, or
(ii) has other office space available for rent in other
buildings owned or controlled by Landlord.
(c) Landlord
agrees that it will respond to any request by Tenant for an
approval of a prospective sublease or assignment within ten
(10) business days of Tenant’s written request to be
accompanied by (i) the name of the proposed entity to include
a description of the core business and the intended use of the
Premises to be assigned or subleased, (ii) reasonable and
customary financial information to the extent available,
(iii) a floor plan showing the intended area to be subleased
or assigned, and (iv) an executed term sheet setting forth the
basic terms of the prospective transaction which shall not be
deemed to mean a negotiated or executed assignment or sublease
agreement. If Landlord fails to give timely notice of its approval
or disapproval, or termination election (if applicable), then
Landlord shall be deemed to have approved such requested sublease
or assignment as requested by Tenant.
9. Increase in Landlord’s Insurance
Rates.
Tenant will not
do, or suffer to be done, anything in or about the Premises, or
keep or suffer to be kept, anything in or about the Premises which
will contravene or affect any policy of insurance against loss by
fire or other hazards, including but not limited to public
liability, now existing or which the Landlord may hereafter place
thereon, or which will prevent the Landlord from procuring such
policies in companies acceptable to Landlord at standard rates.
Tenant will, at Tenant’s sole expense, take all such actions
and make any installations or alterations as may be necessary to
obtain reasonable insurance rates for the Premises (given its
character and permitted uses) and the Building caused by the
occupancy of Tenant, the nature of the business carried on by
Tenant in the Premises, or otherwise resulting from any act of
Tenant, its agents, servants, employees or customers, or anything
done or suffered to be done by Tenant, its agents, servants,
employees or customers, outside of what are permitted uses
hereunder. However, any installations, alterations or improvements
to the Premises which could result in a reduction in insurance
rates shall only be undertaken at the sole cost of Landlord, unless
the same are required as the result of any installations,
alterations or improvements made by Tenant to the Premises other
than those for Tenant’s intended use of the
Premises.
10. Insurance — Indemnity.
(a) Tenant
covenants and agrees that from and after the Lease Commencement
Date, Tenant will carry and maintain, at its sole cost and expense
and in the amounts specified and in the form hereinafter provided,
the following types of insurance:
10
(i)
Business Personal Property insurance covering Special Causes of
Loss. Such Business Personal Property insurance shall not be in an
amount less than that required to replace all of the Tenant’s
trade fixtures, decorations, furnishings, equipment and personal
property and in an amount required to avoid the application of any
coinsurance provision. Such Business Personal Property insurance
shall contain a Replacement Cost valuation provision.
(ii)
Plate glass insurance covering all plate glass in the Premises (if
the Premises include such glass other than ordinary windows).
Tenant shall be and remain liable for the repair and restoration of
all such plate glass.
(iii)
Boiler and Machinery insurance (if, at any time during this Lease,
Tenant’s operations include a pressure vessel). Such Boiler
and Machinery insurance will be on a Repair and Replacement basis,
will be against Comprehensive perils, shall not be in an amount
less than that required to replace all of the Tenant’s trade
fixtures, decorations, furnishings, equipment and personal property
and shall be in an amount required to avoid the application of any
coinsurance provision.
(iv)
Business Income insurance covering Special Causes of Loss. Such
Business Income insurance shall be in minimum amounts typically
carried by prudent businesses engaged in similar operations, but in
no event shall be in an amount less than the Base Rent then in
effect for the Lease Year.
(v)
Commercial General Liability insurance (written on an occurrence
basis) including Contractual Liability coverage insuring the
obligations assumed by Tenant under this Lease, Premises and
Operations coverage, Personal Injury Liability coverage,
Independent Contractor’s Liability coverage. Such Commercial
General Liability insurance shall be in minimum amounts typically
carried by prudent businesses engaged in similar operations, but in
no event shall be in an amount less than Two Million Dollars
($2,000,000) combined single limit per occurrence with a Three
Million Dollar ($3,000,000) annual aggregate. If the nature of
Tenant’s operations are automobile-related, Tenant may
satisfy this requirement with Garage Liability insurance with
limits of not less than Two Million Dollars ($2,000,000) per
accident for Auto, Two Million Dollars ($2,000,000) per accident
for other-than-Auto and a Three Million Dollars ($3,000,000) annual
aggregate for other-than-Auto. If Tenant conducts operations at
locations and/or projects other than the Premises, such annual
aggregate limit will be expressed on a “per location”
and/or “per project” basis, as the case may be. If the
nature of Tenant’s operations are such that Tenant has
seniors, children, developmentally-disabled or other vulnerable
people in its care or if such people are in the Tenant’s care
incidental to the Tenant’s operations, Tenant’s
Commercial General Liability insurance shall not exclude coverage
for Sexual Abuse and/or Molestation. Such Commercial General
Liability insurance shall be primary to — and
non-contributory with — any similar insurance maintained by
Landlord.
(vi)
Workers’ Compensation insurance including Employer’s
Liability insurance. Such Workers’ Compensation insurance
shall be for the statutory benefits which may, from time to time
throughout the term of this Lease, become payable
11
in the
jurisdiction in which the Premises are located. Such
Employer’s Liability insurance shall be in amounts not less
than One Hundred Thousand Dollars ($100,000) for each accident,
Five Hundred Thousand Dollars ($500,000) as a policy limit for
disease and One Hundred Thousand Dollars ($100,000) per employee
for disease. Such Workers’ Compensation insurance will
include a Waiver of Subrogation in favor of Landlord.
(b) All
such insurance shall: (1) be issued by a company that is
“Admitted” to do business in the jurisdiction in which
the Premises are located, that has been approved in advance by
Landlord and that has a rating equal to or exceeding A: IX from
A.M. Best Company; (2) (except for Workers’ Compensation and
Employer’s Liability) name Landlord, the managing agent of
the Building (if any) and the holder of any Mortgage as Additional
Insureds/Loss Payees, as applicable; (3) contain an
endorsement prohibiting cancellation or failure to renew without
the insurer first giving Landlord thirty (30) days’
prior written notice (by certified or registered mail, return
receipt requested) of such proposed action (no less than ten [10]
days’ notice of cancellation or failure to renew for
non-payment of premium).
(c) No
such Commercial General Liability, Automobile Liability,
Workers’ Compensation or Employer’s Liability insurance
shall contain a self-insured retention provision except as
otherwise approved in writing by Landlord, which approval shall not
be unreasonably withheld. Landlord reserves the right from time to
time to require Tenant to obtain higher minimum amounts or
different types of insurance if it becomes customary for other
landlords of similar buildings as that which contains the Premises
to require similar-sized tenants in similar industries to carry
insurance of such higher minimum amounts or of different types. At
the commencement of this Lease, Tenant shall deliver a certificate
of all required insurance and will continue throughout the term of
this Lease to do so not less than ten (10) days prior to the
expiration of any required policy of insurance. Neither the
issuance of any insurance policy required under this Lease nor the
minimum limits specified herein shall be deemed to limit or
restrict in any way Tenant’s liability arising under or out
of this Lease.
(d) All
insurance shall provide that the insurer thereunder waives all
right of recovery by way of subrogation against Landlord, its
partners, employees, agents, representatives and any other party
required to be the recipient of such a waiver under the terms of
any written contract or agreement with Landlord pertaining to this
Lease and/or to the Premises, in connection with any loss or damage
covered by such policy. Tenant shall, and does hereby, indemnify
and hold harmless Landlord from and against any and all
liabilities, fines, claims, damages and actions, costs and expenses
of any kind or nature (including reasonable attorneys’ fees)
(i) relating to or arising from the use and occupancy of the
Premises; (ii) due to or arising out of any mechanic’s
lien filed against the Building, or any part thereof, for labor
performed or for materials furnished or claimed to be furnished to
Tenant, or (iii) due to or arising out of any breach,
violation or nonperformance of any covenant, condition or agreement
in this Lease set forth and contained on the part of Tenant to be
fulfilled, kept, observed or performed, unless such damage or
injury shall be occasioned by the negligence or willful act or
omission of the Landlord or Landlord’s agents, employees,
contractors, invitees or licensees, in which event, Landlord shall
indemnify and hold harmless Tenant to the extent of such negligence
or willful act or omission. Notwithstanding the foregoing, Tenant
shall at all times remain liable for, and indemnify and
12
hold harmless
Landlord as aforesaid, against any damage or injury arising from
perils against which Tenant is required by this Lease to insure,
regardless of the negligence, act or omission of others.
(e) Landlord
covenants and agrees that from and after the Lease Commencement
Date of this Lease, Landlord will carry and maintain (subject to
reimbursement as an Operating Expense) and in the amounts specified
and in the form hereinafter provided, the following types of
insurance:
(i)
Fire and Extended Coverage. Fire and extended coverage
insurance covering the Building and the Property and any
alterations, improvements, additions or changes made by Landlord
thereto in an amount not less than one hundred percent (100%) of
their full replacement cost from time to time during the Lease
term, providing protection against special causes of loss as
defined within the property insurance form promulgated by the
Insurance Services Office, Inc. Such insurance shall be on an
agreed value (no coinsurance) basis and shall have a deductible of
not more than Twenty-Five Thousand Dollars ($25,000.00).
(ii)
Commercial General Liability. Commercial general liability
insurance covering the Building and the Property and
Landlord’s use thereof against claims for bodily injury or
death and property damage occurring upon, in or about the Property,
such insurance to afford protection to the limit of not less than
Two Million Dollars ($2,000,000.00) arising out of anyone
occurrence. The insurance coverage required under this
Section 10(e)(ii) shall, in addition, extend to any liability
of Landlord’s arising out of Landlord’s indemnities
hereinafter provided, as well as independent contractors’
liability, products/completed operations liability, personal injury
liability and contractual liability. If such insurance
cont
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