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EXHIBIT 10.44
BRENTWOOD, TENNESSEE
37027
OFFICE LEASE AGREEMENT
1.
Basic Lease Provisions
1.1
Parties: This Lease Agreement, dated for references
purposes only February 2, 2007, is made by and between Self Service
Mini Storage, an Ohio general partnership ("Landlord") and Cross
Country Education LLC a Delaware corporation ("Tenant").
1.2
Premises: Suite Number 130, as shown on Exhibit A
attached hereto (the "Premises").
1.3
Rentable Area of Premises: 14,157 rentable square
feet.
1.4
Building Address: 9020 Overlook Boulevard, Brentwood, TN
37027.
1.5
Use: Office space, subject to the requirements and
limitations contained in Section 6.
1.6
Term: Seven (7) years and four (4) months
1.7
Commencement Date: May 1, 2007, subject to adjustments in
accordance with Section 3 below.
1.8
Base Rent: Payable Monthly As Follows:
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Period
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Monthly Rental
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Commencement Date–
8/31/2007
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$0.00
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9/1/07 – 8/31/08
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$22,356.26
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9/1/08 – 8/31/09
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$23,253.87
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9/1/09 – 8/31/10
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$24,184.88
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9/1/10 – 8/31/11
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$25,152.27
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9/1/11 – 8/31/12
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$26,155.06
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9/1/12 – 8/31/13
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$27,205.04
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9/1/13 – 8/31/14
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$28,290.41
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1.9
Base Rent Paid Upon Execution: $22,356.26 for the
month(s) of September 2007.
1.10
Security Deposit: $22,356.26
1.11
Tenant’s Share: 13.48%
1.12
Base Year: The calendar year 2007.
1.13
Number of Parking Spaces: 5.2/1000
1.14
Initial Monthly Parking Rates Per Space: N/A
1.15
Real Estate Broker:
Landlord:
Nashville Commercial Real Estate Services
Tenant:
Colliers Turley Martin Tucker
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1.16
Attachments to Lease: Amendment, Exhibit A –
"Premises", Schedule 1- Tenant Improvements, Exhibit B
– "Verification of Commencement Letter", Exhibit C –
"Rules and Regulations", Exhibit D – "Right of First
Offer".
1.17
Address for Notices:
Landlord:
Nashville Commercial Real Estate
Services
4560 Trousdale Drive
Suite 100
Nashville, TN 37204
Property Manager
With Copy To :
Self Service Mini Storage
140 Sheldon Road
Berea, Ohio 44017
Attention: Gerald C. Forstner, Jr.
Tenant:
Cross Country Education
9020 Overlook Blvd., Suite 140
Brentwood, TN 37027
Attn: John Nichols
1.18
Agent for Service of Process: The name and address of
Tenant’s registered agent for service of process in the State
of Tennessee, if any, is Corporation Service Company, 2908 Poston
Ave., Nashville, TN 37203.
2.
Premises
2.1
Lease of Premises. Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, upon all of the conditions set
forth herein, the Premises, together with certain rights to the
Common Areas as hereinafter specified. The Premises shall not
include an easement for light, air, or view. The Building,
the Common Areas (as defined below), the land upon which the same
are located, along with all other buildings and improvements
thereon or thereunder, including all parking facilities, are herein
collectively referred to as the "Project".
2.2
Calculation of Size of Building and Premises. The parties
acknowledge that the Premises have been measured according to BOMA
standards and square footage figures in Article 1.3 shall be
conclusive for all purposes with respect to this Lease.
2.3
Common Areas-Defined. The Term "Common Areas" is defined
as all areas and facilities outside the Premises and within the
exterior boundary line of the Project that are designated by
Landlord from time to time for the general non-exclusive use of
Landlord, Tenant, and other tenants of the Project and their
respective employees, suppliers, customers, and invitees,
including, but not limited to, common entrances, lobbies,
corridors, stairwells, public restrooms, elevators, parking areas,
loading and unloading areas, roadways, and sidewalks.
Landlord may also designate other land and improvements
outside the boundaries of the Project to be a part of the Common
Areas, provided that such other land and improvements have a
reasonable and functional relationship to the Project.
3.
Term
3.1
Term and Commencement Date. The Term and Commencement
Date of this Lease are as specified in Sections 1.6 and 1.7.
The Commencement Date set forth in Section 1.7 is an
estimated Commencement Date. Subject to the limitations
contained in Section 3.3 below, the actual Commencement Date shall
be the date possession of the Premises is tendered to Tenant in
accordance with Section 3.4 below; provided, however, that the Base
Rent, as defined below in Article 4.1 shall not commence until
September 1, 2007 and the expiration of this Lease shall be August
31, 2014. When the actual Commencement Date is established by
Landlord, Tenant shall, within five (5) business days after
Landlord’s request,
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complete and execute the letter attached hereto as Exhibit B and
deliver it to Landlord. Tenant’s failure to execute the
letter attached hereto as Exhibit B within said five (5) business
day period shall be a material default hereunder and shall
constitute Tenant’s acknowledgement of the truth of the facts
contained in the letter delivered by Landlord to Tenant.
3.2
Delay in Possession. Notwithstanding the estimated
Commencement Date specified in Section 1.7, if for any reason
Landlord cannot deliver possession of the Premises to Tenant on
said date, Landlord shall not be subject to any liability
therefore, nor shall such failure affect the validity of this Lease
or the obligations of Tenant hereunder or extend the Term hereof;
provided, however, in such a case, Tenant shall not be obligated to
pay rent or perform any other obligation of Tenant under this Lease
except as may be otherwise provided in this Lease, until possession
of the Premises is tendered to Tenant, as defined in Section 3.4.
If Landlord shall not have tendered possession of the
Premises to Tenant within ninety(90) days following the estimated
Commencement Date specified in Section 1.7, as the same may be
extended in accordance with Section 3.3 or under the terms of any
work letter agreement entered into by Landlord and Tenant, Tenant
may, at Tenant’s option, by notice in writing to Landlord
within ten (10) days after the expiration of the ninety (90) day
period, terminate this Lease. If Tenant terminates this Lease
as provided in the preceding sentence, the Parties shall be
discharged from all obligations hereunder, except that Landlord
shall return all money previously deposited with Landlord by
Tenant; and provided further, that if such written notice by Tenant
is not received by Landlord within said ten (10) day period, Tenant
shall not have the right to terminate this Lease as provided above
unless Landlord fails to tender possession of the Premises to
Tenant within ninety (90) days following the estimated Commencement
Date specified in Section 1.7, as the same may be extended in
accordance with Section 3.3 or under any work letter agreement
entered into by Landlord and Tenant. Notwithstanding the
foregoing if Landlord is unable to deliver possession of the
Premises to Tenant on the Commencement Date due to a "Force Majeure
Event", the Commencement Date shall be extended by the period of
the delay caused by the Force Majeure Event. A Force Majeure
Event shall mean fire, earthquake, weather delays, or other acts of
God, strikes, boycotts, war, riot, insurrection, embargoes,
shortages of equipment, labor, or materials, delays in issuance of
governmental permits or approvals.
3.3
Delays Caused by Tenant. There shall be no abatement of
rent, and the ninety (90) day periods specified in Section 3.2
shall be deemed extended, to the extent of any delays caused by
acts or omissions of Tenant, Tenant’s agents, employees, and
contractors, or for Tenant delays as defined in the work letter
agreement attached to this Lease, if any (hereinafter, "Tenant
Delays"). The Commencement Date shall not be extended due to
Tenant Delays.
3.4
Tender of Possession. Possession of the Premises shall be
deemed tendered to Tenant when Landlord’s architect or agent
has determined that (a) the improvements to be provided by Landlord
pursuant to a work letter agreement, if any, are substantially
completed, (b) the Project utilities are ready for use in the
Premises, (c) Tenant has reasonable access to the Premises, and (d)
three (3) days shall have expired following advance written notice
to Tenant of the occurrence of the matters described in (a), (b),
and (c) above of this Section 3.4. If improvements to the
Premises are constructed by Landlord, the improvements shall be
deemed "substantially" completed when the improvements have been
completed except for minor items or defects which can be completed
or remedied after Tenant occupies the Premises without causing
substantial interference with Tenant's use of the Premises.
3.5
Early Possession. If Tenant occupies the Premises prior
to the Commencement Date, such occupancy shall be subject to all
provisions of this Lease, such occupancy shall not change the
termination date. Provided that Tenant does not interfere
with or delay the completion by Landlord or its agents or
contractors of the construction of any Tenant improvements, Tenant
shall have the right to enter the Premises up to thirty (30) days
prior to the anticipated Commencement Date for the purpose of
installing furniture, trade fixtures, equipment, and similar items.
Provided that Tenant has not begun operating its business
from the Premises, and subject to all of the terms and conditions
of the Lease, the foregoing activity shall not constitute the
delivery of possession of the Premises to Tenant and the Lease Term
shall not commence as a result of said activities. Prior to
entering the Premises, Tenant shall obtain all insurance it is
required to obtain by the Lease and shall provide certificates of
said insurance to Landlord.
4.
Rent
4.1
Base Rent. Subject to adjustment as hereinafter provided
in Section 4.3, Tenant shall pay to Landlord the Base Rent for the
Premises set forth in Section 1.8, without offset or deduction on
the first day of each calendar month. At the time Tenant
executes this Lease it shall pay to Landlord the advance Base Rent
described in Section 1.9. Base Rent for any period during the
Term hereof which is for less than one month shall be prorated
based upon the actual number of days of the calendar month
involved. Base Rent and all other amounts payable to Landlord
hereunder shall be payable to
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Landlord in lawful money of the United States at the address
stated herein or to such other persons or at such other places as
Landlord may designate in writing.
4.2
Operating Expense Increases. Tenant shall pay to Landlord
during the Term hereof, in addition to the Base Rent,
Tenant’s Share of the amount by which all Operating Expenses
for each Comparison Year exceeds the amount of all Operating
Expenses for the Base Year. If less than 95% of the rentable
square feet in the Project is occupied by tenants or Landlord is
not supplying services to 95% of the rentable square feet of the
Project at any time during any calendar year (including the Base
Year), Operating Expenses for such calendar year shall be an amount
equal to the Operating Expenses which would normally be expected to
be incurred had 95% of the Project’s rentable square feet
been occupied and had Landlord been supplying services to 95% of
the Project’s rentable square feet throughout such calendar
year. Tenant’ Share of Operating Expense increases
shall be determined in accordance with the following
provisions:
(a)
"Tenant’s Share" is defined as the percentage set forth in
Section 1.11, which percentage has beendetermined by dividing the
number of rentable square feet in the Premises by ninety-five
percent (95%) of the total number of rentable square feet in the
Project and multiplying the resulting quotient by one hundred
(100). In the event that the number of rentable square feet
in the Project or the Premises changes, Tenant’s Share shall
be adjusted in the year the change occurs, and Tenant’s Share
for such year shall be determined on the basis of the days during
such year that each Tenant’s Share was in effect.
(b)
"Comparison Year" is defined as each calendar year during the
Term of this Lease after the Base Year. Tenant’s Share
of the Operating Expense increases for the last Comparison Year of
the Lease Term shall be prorated according to that portion of such
Comparison Year as to which Tenant is responsible for a share of
such increase.
(c)
"Operating Expenses" shall include all commercially reasonable
costs, expenses, and fees incurred by Landlord in connection with
or attributable to the Project determined in
accordance with generally accepted accounting principles ("GAAP")
consistently applied, including but not limited to, the following
items: (i) actual costs, expenses, and fees associated with
or attributable to the ownership, management, operation, repair,
maintenance, improvement, and alteration of the Project, or any
part thereof, including but not limited to, the following:
(A) all surfaces, coverings, decorative items, carpets,
drapes, window coverings, parking areas, loading and unloading
areas, trash areas, roadways, sidewalks, stairways, landscaped
areas, striping, bumpers, irrigation systems, lighting facilities,
building exteriors and roofs, fences, and gates; (B) all heating,
ventilating, and air-conditioning equipment ("HVAC"), plumbing,
mechanical, electrical systems, life safety systems and equipment,
telecommunication equipment, elevators, escalators, tenant
directories, fire detection systems including sprinkler system
maintenance and repair; (ii) the cost of trash disposal, janitorial
services, and security services and systems; (iii) the cost of all
insurance purchased by Landlord and enumerated in Section 8 of this
Lease, including any deductibles; (iv) the amount of the real
property taxes to be paid by Landlord under Section 10.1 hereof;
(v) the cost of water, sewer, gas, electricity, and other utilities
available at the Project and paid by Landlord; (vi) the cost of
labor, salaries, and applicable fringe benefits incurred by
Landlord; (vii) the cost of materials, supplies, and tools used in
managing, maintaining and/or cleaning the Project; (viii) the cost
of commercially reasonable accounting fees, management fees, legal
fees, and consulting fees attributable to the ownership, operation,
management, maintenance, and repair of the Project (if Landlord is
the property manager, Landlord shall be entitled to receive a fair
market management fee not to exceed four percent (4%) of the
aggregate revenue);(ix) the cost of replacing and/or adding
improvements mandated by any law, statute, regulation, or directive
of any governmental agency and any repairs or removals necessitated
thereby; but excluding all ADA required improvements to Building
Common Areas, (x) the costs incurred in implementing and operating
any transportation management program, ride-sharing program, or
similar program including, but not limited to, the cost of any
transportation program fees, mass transportation fees, or similar
fees charged or assessed by any governmental or quasi-governmental
entity; (xi) payments made by Landlord under any easement, license,
operating agreement, declaration, restrictive covenant, or
instrument pertaining to the payment or sharing of costs among
property owners; (xii) personal property taxes imposed upon the
fixtures, machinery, and equipment used in connection with the
operation of the Project; and (xiii) the cost that is elsewhere
stated in this Lease to be an "Operating Expense".
"Operating Expenses" shall not include nor will Tenant be
obligated to pay for the following:
a.
Any expenses paid by any tenant to third parties, or as to which
Landlord is otherwise reimbursed by any third party or by insurance
proceeds.
b.
Any ground lease rental;
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c.
Costs of items considered capital repairs, replacements,
improvements and equipment under generally accepted accounting
principles consistently applied or otherwise (" Capital
Items ")
d.
Rentals for items which if purchased, rather than rented, would
constitute a Capital Item;
e.
Costs incurred by Landlord for the repair of damage to the Site,
Building or Parking Facility not caused by Tenant or Tenant’s
employees, agents, contractors or invitees (however, such damage
shall be subject to Section 12) and costs of all capital repairs,
regardless of whether such repairs are covered by insurance;
f.
Costs, including permit, license and inspection costs, incurred
with respect to the installation of Tenant’s or other
occupants’ improvements at the Site, Building or Parking
Facility (as applicable) or incurred in renovating or otherwise
improving, decorating, painting or redecorating vacant space for
other occupants of the Building;
g.
Depreciation of the Site, Building or Parking Facility or any
Capital Items;
h.
Marketing costs, including, leasing commissions,
attorneys’ fees in connection with the negotiation and
preparation of letters, deal memoranda, letters of intent, leases,
subleases and assignments, space planning costs, and other costs
and expenses incurred in connection with lease, sublease and
assignment negotiations and transactions with present or
prospective tenants or other occupants of the Site;
i.
Any overhead and profit increment paid to Landlord or to
subsidiaries or affiliates of Landlord for goods and services in or
to the Site, Building or Parking Facility to the extent such
increment exceeds the costs of such goods and services rendered by
unaffiliated third parties on a competitive basis;
j.
Interest, principal, points and fees on debts or amortization on
any mortgage or mortgages or any other debt instrument encumbering
the Site, Building or Parking Facility;
k.
Landlord’s general corporate overhead and general and
administrative expenses;
l.
Electric power costs for which Tenant directly contracts with
the local public service company and pays at Tenant’s
expense;
m.
Excluding the Premises, costs incurred in connection with
upgrading the Site, Building or Parking Facility or any portion
thereof, to comply with any governmental requirement in effect
before the Commencement Date, including, , the ADA, including
penalties or damages incurred due to non-compliance with any such
laws or regulations;
n.
Tax penalties incurred as a result of Landlord’s
negligence or Landlord’s inability or unwillingness to make
payments or to file any tax or informational returns when due;
o.
Costs for which Landlord has been compensated by a management
fee and any management fees in excess of four percent (4%) of the
sum of the then current Base Rent (" Management Fee ");
p.
Costs arising from the negligence or fault of Landlord’s
agents or vendors, contractors or providers of materials or
services selected, hired or engaged by Landlord or its agents
including, , the selection of building materials;
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q.
Costs arising from the presence of Hazardous Materials in or
about the Site, Building or Parking Facility not caused by Tenant
including, , Hazardous Materials in the groundwater or soil;
r.
Costs arising from Landlord’s charitable or political
contributions;
s.
Costs arising from latent defects in the base, shell or core of
the Building, or improvements installed by Landlord for repair
thereof;
t.
Costs for sculpture, paintings or other objects of art;
u.
Costs (including in connection therewith all attorneys’
fees and costs of settlement, judgments and payments in lieu
thereof) arising from claims, disputes or potential disputes in
connection with potential or actual claims, litigation or
arbitrations pertaining to Landlord or the Site, Building or
Parking Facility;
v.
Costs associated with the operation of the business of the
entity which constitutes Landlord as distinguished from the costs
of operation of the Site, Building or Parking Facility, including
accounting and legal matters, costs of selling, syndicating,
financing, mortgaging or hypothecating any of Landlord’s
interest in the Site, Building or Parking Facility, costs of any
disputes between Landlord and Landlord’s employees, disputes
of Landlord with Premises management or outside fees paid in
connection with disputes with other tenants;
w.
Any entertainment, dining or travel expenses for any
purpose;
x.
Costs arising from insurance deductibles in excess of
$25,000.00, environmental contamination insurance, and any other
insurance not required to be maintained by Landlord pursuant to
this Lease;
aa.
"In house" legal and accounting fees;
bb.
Any reserves for Operating Expenses or other costs;
cc.
Any administrative fees or costs in excess of the Management
Fee.
dd.
Any other expenses which, in accordance with generally accepted
accounting principles, consistently applied, would not normally be
treated as operating expenses by comparable landlords of Comparable
Buildings in the Davidson County, Tennessee area.
(d)
If the cost incurred in making an improvement or replacing any
equipment is not fully deductible as
an expense in the year incurred in accordance with generally
accepted accounting principles, the cost shall be amortized over
the useful life of the improvement or equipment, as reasonably
determined by Landlord, together with an interest factor of twelve
percent (12%) per annum on the unamortized cost of such item.
(e)
Tenant’s Share of Operating Expense increases shall be
payable by Tenant within thirty (30) days after a reasonably
detailed statement of actual expenses is presented to Tenant by
Landlord. At Landlord’s option, however, Landlord may,
from time to time, estimate what Tenant’s Share of Operating
Expense increases will be, and the same shall be payable by Tenant
monthly during each Comparison Year of the Lease Term, on the same
day as the Base Rent is due hereunder. In the event that
Tenant pays Landlord’s estimate of Tenant’s Share of
Operating Expense increases, Landlord shall use its best efforts to
deliver to Tenant within one hundred eighty (180) days after the
expiration of each Comparison Year a reasonably detailed statement
showing Tenant’s Share of the actual Operating Expense
increases incurred during such year. Landlord’s failure
to deliver the statement to Tenant within said period shall not
constitute Landlord’s waiver of its right to collect said
amounts or otherwise prejudice Landlord’s rights hereunder.
If Tenant’s payments under this Section
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4.2(f) during said Comparison Year exceed Tenant’s Share
as indicated on said statement, Tenant shall be entitled to
immediate rent credit the amount of such overpayment against
Tenant’s Share of Operating Expense increases next falling
due. If Tenant’s payments under this Section 4.2(f)
during said Comparison Year were less than Tenant’s Share as
indicated on said statement, Tenant shall pay to Landlord the
amount of the deficiency within thirty (30) days after delivery by
Landlord to Tenant of said statement. Landlord and Tenant
shall forthwith adjust between them by cash payment any balance
determined to exist with respect to that portion of the last
Comparison Year for which Tenant is responsible for Operating
Expense increases, notwithstanding that the Lease Term may have
terminated before the end of such Comparison Year; and this
provision shall survive the expiration or earlier termination of
this Lease.
(f)
For purposes of computing Tenant’s Share of Operating
Expense Increases, Operating Expenses (excluding those Operating
Expenses attributable to real and personal property taxes and
assessments, insurance costs, and utility services herein agreed to
be uncontrollable expenses) in any calendar year will not increase
by more than CPI as printed in the Wall Street Journal.
Tenant will be required to pay 100% of any increase in
Tenant’s Share of Operating Expense Increases attributable to
those Operating Expenses excluded from the CPI limitation.
5.
Security Deposit. Tenant shall deliver to Landlord at the
time it executes this Lease the security deposit set forth in
Section 1.10 as security for Tenant’s faithful performance of
Tenant’s obligations hereunder. If Tenant fails to pay
Base Rent. Additional Rent (as defined below), or other amounts
payable by Tenant hereunder, or otherwise defaults with respect to
any provision of this lease, Landlord may use all or any portion of
said deposit for the payment of any Base Rent or other charge due
hereunder, to pay any other sum to which Landlord may become
obligated by reason of Tenant’s default, or to compensate
Landlord for any loss or damage which Landlord may suffer thereby.
If Landlord so uses or applies all or any portion of said
deposit, Tenant shall, within ten (10) days after written demand
therefore, deposit cash with Landlord in an amount sufficient to
restore said deposit to its full amount. Landlord shall not
be required to keep said security deposit separate from its general
accounts. If Tenant performs all of Tenant’s
obligations hereunder, said deposit, or so much thereof as has not
heretofore been applied by Landlord, shall be returned, without
payment of interest or other amount for its use, to Tenant (or, at
Landlord’s option, to the last assignee, if any, of
Tenant’s interest hereunder) at the expiration of the Term
hereof, and after Tenant has vacated the Premises and complied with
all of Tenant's obligations hereunder this Lease Agreement.
No trust relationship is created herein between Landlord and
Tenant with respect to said security deposit. Tenant
acknowledges that the security deposit is not an advance payment of
any kind or a measure of Landlord’s damages in the event of
Tenant’s default.
6.
Use
6.1
Use. The Premises shall be used and occupied only for the
purpose set forth in Section 1.5 and for no other purpose. If
Section 1.5 gives Tenant the right to use the Premises for general
office use, by way of example and not limitation, general office
use shall not include medical office use or any similar use,
laboratory use, any use not characterized by applicable
zoning and land use restrictions as general office use, or any use
which would require Landlord or Tenant to obtain a conditional use
permit or variance from any federal, state, or local authority.
No exclusive use has been granted to Tenant hereunder.
6.2
Compliance with Law. Notwithstanding any permitted use
inserted in Section 1.5, Tenant shall not use the Premises for any
purpose which would violate the Project’s certificate of
occupancy, any conditional use permit, or variance applicable to
the Project or violate any covenants, conditions, or other
restrictions applicable to the Project. Tenant shall, at
Tenant’s expense, promptly comply with all applicable laws,
ordinances, rules, regulations, orders, certificates of occupancy,
conditional use permits, variances, covenants, and restrictions of
record, and requirements of any fire insurance underwriters, rating
bureaus, or government agencies, now in effect or which may
hereafter come into effect, whether or not they reflect a change in
policy from that now existing, during the Term or any part of the
Term hereof, relating in any manner to the Premises and the
occupation and use by Tenant of the Premises. Tenant shall
conduct its business and use the Premises in a lawful manner and
shall not use or permit the use of the Premises or the Common Areas
in any manner that will tend to create waste or a nuisance or shall
tend to disturb other occupants of the Project. Tenant shall
obtain, at its sole expense, any permit or other governmental
authorization required to operate its business from the Premises.
Landlord shall not be liable for the failure of any other
tenant or person to abide by the requirements of this section or to
otherwise comply
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with applicable laws and regulations, and Tenant shall not be
excused from the performance of its obligations under this Lease
due to such a failure.
6.3
Condition of Premises. Except as otherwise provided in
this Lease, Tenant hereby accepts the Premises and the Project in
their condition existing as of the date this Lease is executed by
Landlord and Tenant, subject to all applicable federal, state, and
local laws, ordinances, regulations, and permits governing the use
of the Premises, the Project’s certificate of occupancy, any
applicable conditional use permits or variances, and any easements,
covenants, or restrictions of record affecting the use of the
Premises or the Project. Tenant shall comply with all
federal, state, and local laws and regulations governing
occupational safety and health at Tenant’s sole cost and
expense. Tenant acknowledges that it has satisfied itself by
its own independent investigation that the Premises and the Project
are suitable for its intended use, and that neither Landlord nor
Landlord’s agents have made any representation or warranty as
to the present or future suitability of the Premises or the Project
for the conduct of Tenant’s business.
7.
Maintenance, Repairs, and Alterations
7.1
Landlord’s Obligations. Landlord shall keep the
Project (excluding the interior of the Premises and space leased to
other occupants of the Project) in good condition and repair.
Tenant shall report to Landlord immediately any defective
condition in or about the Premises known to Tenant and if such
defect is not so reported and such failure to promptly report
results in other damage, Tenant shall be liable for same.
Except as provided in Section 9.3, there shall be no
abatement of rent or liability to Tenant on account of any injury
or interference with Tenant’s business with respect to any
improvements, alterations, or repairs made by Landlord to the
Project or any part thereof. .
7.2
Tenant’s Obligations
(a)
Subject to the requirements of Section 7.3, Tenant shall be
responsible for payment of the cost of keeping the Premises in good
condition and repair, and if Landlord makes any repairs to the
Premises, the cost thereof shall be paid by Tenant to Landlord
within ten (10) days after written demand therefore. Tenant
shall be responsible for the cost of painting, repairing, or
replacing wall coverings, and the cost of repairing or replacing
any improvements made to the Premises by Landlord or Tenant.
Landlord may, but shall not be obligated to, enter the
Premises at all reasonable times to make such repairs, alterations,
improvements, and additions to the Premises or to any equipment
located therein as Landlord deems necessary in its sole
discretion.
(b)
On the last day of the Term hereof, or on any sooner
termination, Tenant shall surrender the Premises to Landlord in the
same condition as received, ordinary wear and tear excepted, clean
and free of debris and Tenant’s personal property.
Tenant shall repair any damage to the Premises occasioned by
the installation or removal of Tenant’s trade fixtures,
furnishings, and equipment. Except as otherwise stated in
this Lease, Tenant shall leave the power panels, electrical
distribution systems, lighting fixtures, HVAC, window coverings,
wall coverings, carpets, wall paneling, ceilings, and plumbing at
the Premises and in good operating condition, ordinary wear and
tear excepted.
7.3
Alterations and Additions
(a)
Tenant shall not, with Landlord’s prior written consent,
which shall not be unreasonably withheld, conditioned or delayed,
make any alterations, improvements, additions, utility
installations, or repairs (hereinafter collectively referred to as
"Alterations") in, on, or about the Premises or the Project.
As used in this Lease, the term "utility installation" shall
mean carpeting or other floor covering, window and wall coverings,
power panels, electrical distribution systems, lighting fixtures,
telephone or computer system wiring, HVAC, and plumbing. At
the expiration of the Term, Landlord may require the removal of any
Alterations installed by Tenant after the initial tenant
improvements by the Landlord and the restoration of the Premises
and the Project to their prior condition, at Tenant’s
expense. If a work letter agreement is entered into by
Landlord and Tenant, Tenant shall not be obligated to remove the
tenant improvements constructed in accordance with the work letter
agreement. Should Landlord permit Tenant to make its own
Alterations, Tenant shall use only such contractor as has been
expressly approved by Landlord, and Landlord may require Tenant to
provide to Landlord, at Tenant’s sole cost and expense, a
lien and completion bond in an amount equal to the estimated cost
of such Alterations, to insure Landlord against any liability for
mechanics’ and materialmen’s liens and to insure
completion of the work. Should Tenant make any Alterations
without the prior approval of Landlord except as provided herein,
or use a contractor not expressly approved by Landlord, Landlord
may, at any time during the Term of this Lease, require that Tenant
remove all or part of the Alterations and return the Premises to
the condition it was in prior to the making of the Alterations.
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In the event Tenant makes any Alterations, Tenant agrees to
obtain or cause its contractor to obtain, prior to the commencement
of any work, "builders all risk" insurance in an amount approved by
Landlord and workers compensation insurance.
(b)
Any Alterations in or about the Premises that Tenant shall
desire to make shall be presented to Landlord in written form, with
plans and specifications which are sufficiently detailed to obtain
a building permit. If Landlord consents to an Alteration, the
consent shall be deemed conditioned upon Tenant acquiring a
building permit from the applicable governmental agencies,
furnishing a copy thereof to Landlord prior to the commencement of
the work, and compliance by Tenant with all conditions of said
permit in a prompt and expeditious manner. Tenant shall
provide Landlord with as-built plans and specifications for any
Alterations made to the Premises.
(c)
Tenant shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Tenant at or
for use in the Premises, which claims are or may be secured by any
mechanic’s or materialmen’s lien against the Premises
or the Project, or any interest therein. Tenant shall have no
right or authority whatever to incur or impose any lien on the
Premises or the Project, or any interest therein, other than
Tenant's leasehold interest.. If Tenant shall, on good faith,
contest the validity of any such lien, Tenant shall furnish to
Landlord a surety bond satisfactory to Landlord in an amount equal
to such contested lien claim or demand indemnifying Landlord
against liability arising out of such lien or claim. In
addition, Landlord may require Tenant to pay Landlord’s
reasonable attorneys’ fees and costs in participating in such
action.
(d)
Tenant shall give Landlord not less than ten (10) days’
advance written notice prior to the commence-ment of any work in
the Premises by Tenant, and Landlord shall have the right to post
notices of non-responsibility in or on the Premises or the Project
as provided by law.
(e)
All alterations (whether or not such Alterations constitute
trade fixtures of Tenant) which may be made to the Premises by
Tenant shall be made and done in a good and workmanlike manner and
with new materials satisfactory to Landlord and shall be the
property of Landlord and remain upon and be surrendered with the
Premises at the expiration of the Lease Term, unless Landlord
requires their removal pursuant to Section 7.3(a). Provided
Tenant is not in default, notwithstanding the provisions of this
Section 7.3(e), Tenant’s personal property and equipment,
other than that which is affixed to the Premises so that it cannot
be removed without material damage to the Premises or the Project,
shall remain the property of Tenant and may be removed by Tenant
subject to the provisions of Section 7.2(b).
7.4
Failure of Tenant to Remove Property. If this Lease is
terminated due to the expiration of its Term or otherwise, and
Tenant fails to remove its property as required by Section 7.2(b),
in addition to any other remedies available to Landlord under this
Lease, and subject to any other right or remedy Landlord may have
under applicable law, Landlord may remove any property of Tenant
from the Premises and store the same elsewhere at the expense and
risk of Tenant and at any time (before or after Landlord stores
said property), Landlord may sell any or all such property at
public or private sale, in such a manner and at such times and
places as Landlord, in its sole discretion, may deem proper,
without notice to or on demand upon Tenant. Landlord shall
apply the proceeds of such sale: first, to the cost and
expenses of the sale, including reasonable attorneys’ fees
actually incurred; second, to the payment of the cost of or charges
for storing any such property; third, to the payment of any other
sums of money which may then or thereafter be due to Landlord from
Tenant under this Lease; and fourth, the balance, if any, to
Tenant.
8.
Insurance
8.1
Insurance-Tenant
(a)
During the Term of the Lease and at such other times as Tenant
occupies the Premises, Tenant shall keep in force at its expense
"commercial general liability" insurance with respect to the
Premises with limits of not less than One Million Dollars
($1,000,000) per occurrence/ $2,000,000 aggregate, or such
commercially reasonable higher amount as Landlord may require in
writing from time to time. The insurance shall cover
liability arising out of Tenant’s operations and liability
arising out of work performed at the Premises by other persons on
behalf of Tenant, and shall specifically include the contractual
liability assumed by Tenant under this Lease. Such coverage,
if written on a claims-made basis, must provide for a retroactive
date which is prior to the date Tenant occupies the Premises, and
the same retroactive date shall continue during the entire Term of
this Lease. Tenant shall provide Landlord a certificate of
insurance naming Landlord as an additional insured, along with a
copy of an additional insured endorsement ISO number CG20 11 01 96
or its equivalent.
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(b)
Tenant will also maintain "all risk" property insurance,
including flood coverage written on a one hundred percent (100%)
replacement cost basis on Tenant’s personal property, all
tenant improvements installed at the Premises by Landlord or
Tenant, Tenant’s trade fixtures, and other property.
If this Lease is terminated as the result of a
casualty in accordance with Section 9, the proceeds of said
insurance attributable to the replacement of all tenant
improvements at the Premises shall be paid to Landlord. Tenant
shall also maintain all risk Business Interruption Coverage in an
amount no less than 100% of he annual rents and
tenant’s insurance policy shall contain a loss payable clause
naming Landlord additional loss payee A.T.I.M.A. and certificate of
insurance evidencing the foregoing coverages shall be given
Landlord under an ACCORD 27 or its equivalent.
(c)
Tenant shall, at all times during the Term hereof, maintain in
effect workers’ compensation insurance as required by
applicable law and business interruption insurance satisfactory to
Landlord.
8.2
Insurance-Landlord
(a)
Landlord shall obtain and keep in force a policy of commercial
general liability insurance with coverage against such risks and in
such amounts as Landlord deems advisable insuring Landlord against
liability arising out of the ownership, operation, and management
of the Project.
(b)
Landlord shall also obtain and keep in force during the Term of
this Lease a policy or policies of "all risk" insurance covering
loss or damage to the Project in the amount of not less than eighty
percent (80%) of the full replacement cost thereof, as determined
by Landlord from time to time. The terms and conditions of
said policies and the perils and risks covered thereby shall be
determined by Landlord from time to time, in Landlord’s sole
discretion. Tenant will not be named as an additional insured in
any insurance policies carried by Landlord and shall have no right
to any proceeds therefrom. At Landlord’s option, Landlord may
obtain insurance coverages and/or bonds related to the operation of
the parking areas. At Landlord’s option, Landlord may
obtain coverage for flood and earthquake damages. In addition,
Landlord shall have the right to obtain such additional insurance
as is customarily carried by owners or operators of other
comparable office buildings in the geographical area of the
Project. The policies purchased by Landlord shall contain such
deductibles as Landlord may determine. In addition to amounts
payable by Tenant in accordance with Section 4.2, Tenant shall pay
any increase in the property insurance premiums for the Project
over what was payable immediately prior to the Commencement Date to
the extent the increase is specified by Landlord’s insurance
carrier as being caused by the nature of the Tenant’s
occupancy or any act or omission of Tenant.
8.3
Insurance Policies. Tenant shall deliver to Landlord
evidence of required insurance prior to the effective date of this
Lease. All insurance policies required of Tenant shall contain
language to the extent obtainable that: (i) any loss shall be
payable notwithstanding any act or negligence of Landlord or Tenant
that might otherwise result in forfeiture of the insurance, (ii)
that the policies are primary and non-contributing with any
insurance that Landlord may carry, and (iii) that the policies
cannot be canceled, non-renewed, or coverage reduced except after
thirty (30) days' prior notice to Landlord. If Tenant fails
to provide Landlord with such certificates or other evidence of
insurance coverage, Landlord may obtain such coverage and the cost
of such coverage shall be Additional Rent payable by Tenant upon
demand. Tenant shall, at least thirty (30) days prior to the
expiration of such policies, furnish Landlord with evidence of
renewals thereof. Tenant represents to Landlord that Tenant
self-insures the first $1,000,000 of loss through its parent
company, Cross Country Healthcare, and Landlord agrees to allow
such self insurance as long as such coverage is provided by the
Tenant's parent, Cross Country Healthcare, and documented on the
current certificate of insurance, to be signed by Cross Country
Healthcare, that Tenant is required to deliver to Landlord
8.4
Waiver of Subrogation. Tenant and Landlord each hereby
release and relieve the other, and waive their entire right of
recovery against the other, for direct or consequential loss or
damage arising out of or incident to the perils covered by
insurance carried by such party (or required to be carried by such
party by this Lease) to the extent of the insurance proceeds
actually received, whether due to the negligence, willful
misconduct or intentional or reckless act or omissions of Landlord
or Tenant or their agents, employees, contractors, and/or invitees.
Landlord and Tenant shall each cause the insurance policies
they obtain in accordance with this Section 8 to provide that the
insurance company waives all right of recovery by subrogation
against either party in connection with any damage covered by any
policy.
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8.5
Coverage. Landlord makes no representation to Tenant that
the limits or forms of coverage specified above or approved by
Landlord are adequate to insure Tenant’s property or
Tenant’s obligations under this Lease, and the limits of any
insurance carried by Tenant shall not limit its obligations under
this Lease.
9.
Damage or Destruction
9.1
Effect of Damage or Destruction. If all or part of the
Project is materially damaged (as defined in Section 9.2 below) by
fire, earthquake, flood, explosion, the elements, riot, or any
other casualty, Landlord shall have the right, in its sole and
complete discretion, to repair or to rebuild the Project or to
terminate this Lease. Landlord shall within ninety (90) days
after the occurrence of such damage notify Tenant in writing of
Landlord’s intention to repair or to rebuild or to terminate
this Lease. Tenant shall in no event be entitled to
compensation or damages on account of annoyance or inconvenience in
making any repairs, or on account of construction, or on account of
Landlord’s election to terminate this Lease.
Notwithstanding the foregoing, if Landlord shall elect to
rebuild or repair the Project, but in good faith determines that
the Project cannot be built or repaired within one hundred eighty
(180) days after the date of the occurrence of the damage, without
payment of overtime or other premiums, and the damage to the
Project has rendered the Premises unusable, Landlord shall notify
Tenant thereof in writing at the time of Landlord’s election
to rebuild or repair, and Tenant shall thereafter have a period of
fifteen (15) days within which Tenant may elect to terminate this
Lease, upon written notice to Landlord. Tenant’s
termination right described in the preceding sentence shall not
apply if the damage was caused by the negligence, willful
misconduct or intentional or reckless act or omissions of Tenant or
Tenant’s agents, contractors, employees, or invitees.
Failure of Tenant to exercise said election with said period
shall constitute Tenant’s agreement to accept delivery of the
Premises under this Lease whenever tendered by Landlord, provided
Landlord thereafter pursues reconstruction or restoration
diligently to completion, subject to delays beyond Landlord’s
reasonable control.
9.2
Definition of Material Damage. The damage shall be deemed
material if, in Landlord’s reasonable judgement, the
uninsured cost of repairing the damage will exceed Twenty-Five
Thousand Dollars ($25,000). If insurance proceeds are
available to Landlord in an amount which is sufficient to pay the
entire cost of repairing all of the damage to the Project, the
damage shall be deemed material if the cost of repairing the damage
exceeds One Hundred Thousand Dollars ($100,000). Damage to
the Project shall also be deemed material if (a) the Project cannot
be repaired to substantially the same condition it was in prior to
the damage due to laws or regulations in effect at the time the
repairs will be made, (b) the holder of any mortgage or deed of
trust encumbering the Project requires that insurance proceeds
available to repair the damage in excess of Twenty-Five Thousand
Dollars ($25,000) be applied to the repayment of the indebtedness
secured by the mortgage or the deed of trust, or (c) the damage
occurs during the last twelve (12) months of the Lease Term.
9.3
Abatement of Rent. If Landlord elects to repair damage to
the Project and all or part of the Premises will be unusable or
inaccessible to Tenant in the ordinary conduct of its business
until the damage is repaired, and the damage was not caused by the
negligence or willful misconduct of Tenant or its employees,
agents, contractors, or invitees, Tenant’s Base Rent and
Tenant’s Share of Operating Expense increases shall be abated
in proportion to the amount of the Premises which is unusable or
inaccessible to Tenant in the ordinary conduct of its business
until the repairs are completed.
9.4
Tenant’s Negligence. If such damage or destruction
occurs as a result of the negligence or willful misconduct of
Tenant or Tenants’ employees, agents, contractors, or
invitees, and the proceeds of insurance which are actually received
by Landlord are not sufficient to repair all of the damage, Tenant
shall pay, at Tenant’s sole cost and expense, to Landlord
upon demand, the difference between the cost of repairing the
damage and the insurance proceeds received by Landlord.
9.5
Tenant’s Property. Landlord shall not be required to
repair any injury or damage to, or to make any repairs or
replacements of, any fixtures, furniture, equipment, or tenant
improvements installed in the Premises, and Tenant shall repair and
restore all such property at Tenant’s sole expense.
9.6
Waiver. Landlord and Tenant hereby waive the provisions
of any statutes which relate to the termination of leases when
leased property is damaged or destroyed and agree that such event
shall be governed by the terms of this Lease.
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10.
Real Property Taxes
10.1
Payment of Taxes. Landlord shall pay the real property
tax, as defined in Section 10.2, applicable to the Project subject
to reimbursement by Tenant of Tenant’s Share of such taxes in
accordance with the provisions of Section 4.2.
10.2
Definition of "Real Property Tax". As used herein, the
term "real property tax" shall include any form of real estate tax
or assessment, general, special, ordinary, or extraordinary, and
any license fee, commercial rental tax, improvement bond or bonds,
levy, or tax (other than inheritance, personal income, estate
taxes, or Tennessee’s franchise and excise tax) imposed on
the Project or any portion thereof by any authority having the
direct or indirect power to tax, including any city, county, state,
or federal government, or any school, agricultural, sanitary, fire,
street, drainage, or other improvement district thereof, as against
any legal or equitable interest of Landlord in the Project or in
any portion thereof, as against Landlord’s right to rent or
other income therefrom, or as against Landlord’s business of
leasing the Project. The term "real property tax" shall also
include any tax, fee, levy, assessment, or charge (a) in
substitution of, partially or totally, any tax, fee, levy,
assessment, or charge hereinabove included within the definition of
"real property tax", or (b) the nature of which was hereinbefore
included within the definition of "real property tax", or (c) which
is imposed as a result of a change in ownership, as defined by
applicable local statutes for property tax purposes, of the Project
or which is added to a tax or charge hereinbefore included within
the definition of real property tax by reason of such change of
ownership, or (d) which is imposed by reason of this transaction,
any modifications, or changes hereto, or any transfers hereof, or
(e) transportation taxes, fees, or assessments, including but not
limited to, mass transportation fees, regional transportation
district fees, metro rail fees, trip fees, and similar fees and
assessments, or (f) fees assessed by an air quality management
district or other governmental or quasi-governmental entity
regulating pollution related to other tenant leases, or (g) parking
fees or parking taxes paid by Landlord, or (h) any commercially
reasonable expenses incurred by Landlord in attempting to
reduce, or minimize real property taxes.
10.3
Personal Property Taxes. Tenant shall pay prior to
delinquency all taxes assessed against and levied upon trade
fixtures, furnishings, equipment, and all other personal property
of Tenant contained in the Premises or related to Tenant’s
use of the Premises. If any of Tenant’s personal
property shall be assessed with Landlord’s real property,
Tenant shall pay to Landlord the taxes attributable to Tenant
within ten (10) days after receipt of a written statement from
Landlord setting forth the taxes applicable to Tenant’s
property.
11.
Utilities
11.1
Services Provided by Landlord. Subject to all governmental
rules, regulations, and guidelines applicable thereto, Landlord
shall use its best efforts to provide HVAC to the Premises for
normal office use during the times described in Section 11.3,
reasonable amounts of electricity for normal office lighting and
fractional horsepower office machines, water in the Premises or in
the Common Area for reasonable and normal drinking and lavatory
use, replacement light bulbs and/or fluorescent tubes and ballasts
for standard overhead fixtures, and building standard janitorial
services
Services Exclusive to Tenant. Tenant shall pay for
all water, gas, heat, electricity, telephone, and other utilities
and services supplied and/or metered exclusively to the Premises or
to Tenant, together with any taxes thereon., If any such exclusive
services are not separately metered to the Premises, Tenant shall
pay, at Landlord’s option, either Tenant’s Share or a
reasonable proportion to be determined by Landlord of all charges
jointly metered with other premises in the Project.
Notwithstanding, the rights of Landlord to charge Tenant for
such exclusive services shall not be construed to allow Landlord to
charge Tenant for the water, gas, heat, electricity, telephone, and
other utilities and services that are contemplated as Operating
Expenses under this Lease.
11.2
Hours of Service. Building services and utilities shall
be provided Monday through Friday from 7:00 a.m. to 7:00 p.m. and
Saturdays from 8:00 a.m. to 1:00 p.m. Janitorial services
shall be provided Monday through Friday. HVAC and other
Building services shall not be provided at other times or on
nationally recognized holidays. Landlord shall use its best
efforts to provide HVAC to Tenant at times other than those set
forth above subject to (a) the payment by Tenant of
Landlord’s standard charge, as determined by Landlord from
time to time, in Landlord’s sole discretion, for after-hours
HVAC only when requested by Tenant, and (b) Tenant providing to
Landlord at least four (4) hour’s advance notice of
Tenant’s need for after-hours HVAC. As of the date of
this Lease, and subject to future increases the standard charge for
after-hours HVAC is Fifty Dollars ($50.00) per hour. Tenant
shall pay all after-hours HVAC charges to Landlord within ten (10)
days after Landlord bills Tenant for said charges.
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11.3
Excess Usage by Tenant. Notwithstanding the use set forth
in Section 1.5, Tenant shall not use Building utilities or services
in excess of those used by the average office building tenant using
its premises for ordinary office and classroom use. Tenant
shall not install at the Premises office machines, lighting
fixtures, or other equipment which will generate above average
heat, noise, or vibration at the Premises or which will adversely
affect the temperature maintained by the HVAC system. If
Tenant does use Building utilities or services in excess of those
used by the average office building tenant, Landlord shall have the
right, in addition to any other rights or remedies it may have
under this Lease provided Landlord has notified Tenant in writing
of such excess use and afforded Tenant a reasonable opportunity to
cure, to (a) at Tenant’s expense, install separate metering
devices at the Premises, and to charge Tenant for its usage, (b)
require Tenant to pay to Landlord all costs, expenses, and damages
incurred by Landlord as a result of such usage, and (c) require
Tenant to stop using excess utilities or services.
11.4
Interruptions. Tenant agrees that Landlord shall not be
liable to Tenant for its failure to furnish utilities or other
services when such failure is occasioned, in whole or in part, by
repairs, replacements, or improvements, by a strike, lockout, or
other labor trouble, by inability to secure electricity, gas,
water, or other fuel at the Project after reasonable effort to do
so, by any accident or casualty whatsoever, by act or default of
Tenant or other parties, or by any other cause beyond
Landlord’s reasonable control, and such failures shall never
be deemed to constitute an eviction or disturbance of
Tenant’s use and possession of the Premises or relieve Tenant
from paying rent or performing any of its obligations under this
Lease. Furthermore, Landlord shall not be liable under any
circumstances for loss of property or for injury to, or
interference with, Tenant’s business, including, without
limitation, loss of profits, however occurring, through or in
connection with or incidental to a failure to furnish any of the
services or utilities as set forth in this Section 11.
Landlord may comply with voluntary controls or guidelines
promulgated by any governmental entity relating to the use or
conservation of energy, water, gas, light, or electricity or the
reduction of automobile or other emissions without creating any
liability of Landlord to Tenant under this Lease. Notwithstanding
anything herein to the contrary, if as the result of a cause of
loss insured by Landlord, Tenant is unable to reasonably
conduct Tenant’s business at the Premises during normal
operating hours as contemplated by this Lease is interrupted for 96
continuous hours, Base Rent shall abate for the period commencing
on the expiration of the 96 hour period and ending at such time
that Tenant is able to reasonably conduct Tenant’s business
at the Premises during normal operating hours as contemplated by
this Lease.
12.
Assignment and Subletting
12.1
Landlord’s Consent Required. Tenant shall not
voluntarily or by operation of law assign, transfer, hypothecate,
mortgage, sublet, or otherwise transfer or encumber all or any part
of Tenant’s interest in this Lease or in the Premises
(hereinafter collectively a "Transfer"), without Landlord’s
prior written consent, which shall not be unreasonably withheld,
conditioned or delayed. Landlord shall respond to
Tenant’s written request for consent hereunder within ten(10)
business days after Landlord’s receipt of the written request
from Tenant. Any attempted Transfer without such consent
shall be void and shall constitute a material default and breach of
this Lease. Tenant’s written request for
Landlord’s consent shall include, and Landlord’s ten
(10) day response period referred to above shall not commence,
unless and until Landlord has received from Tenant all of the
following information: (1) financial statements for the proposed
assignee or subtenant for the past two (2) years prepared in
accordance with generally accepted accounting principles, (b)
federal tax returns for the proposed assignee or subtenant for the
past two (2) years, (c) a TRW credit report or similar report on
the proposed assignee or subtenant, (d) a detailed description of
the business the assignee or subtenant intends to operate at the
Premises, (e) the proposed effective date of the assignment or
sublease, (f) a copy of the proposed sublease or assignment
agreement which includes all of the terms and conditions of the
proposed assignment or sublease,(g) a detailed description of any
ownership or commercial relationship between Tenant and the
proposed assignee or subtenant. If the obligations of the
proposed assignee or subtenant will be guaranteed by any person or
entity, Tenant’s written request shall not be considered
complete until the information described in (a), (b), and (c) of
the previous sentence has been provided with respect to each
proposed guarantor. "Transfer" shall also include the
transfer (a) if Tenant is a corporation, and Tenant’s stock
is not publicly traded over a recognized securities exchange, of
more than fifty-one percent (51%) of the voting stock of such
corporation during the term of this Lease (whether or not in one or
more transfers) or the dissolution or merger of the corporation, or
(b) if Tenant is a partnership or other entity, of more than
twenty-five percent (25%) of the profit and loss participation in
such partnership or entity during the term of this Lease (whether
or not in one or more transfers) or the dissolution or liquidation
of the partnership.
But Tenant may transfer its interest in the Lease to its parent,
a wholly owned subsidiary, a corporation wholly owned by the same
parent, or to another entity acquiring substantially all of
Tenant's
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assets by an asset sale, merger, or consolidation without
Landlord's further consent if the following conditions have been
satisfied:
(i)
At least 10 days before the effective date of any
proposed transfer, Tenant delivers written notice to Landlord
stating: (A) the legal name of the proposed transferee; (B)
documentation of the proposed transferee's right to transact
business in this state; (C) as applicable, evidence that the
proposed transferee has net assets (or will have on completion of
the transaction net assets) at least equal to the greater of
Tenant's net assets on the Effective Date or at that time; and (D)
documentation of the proposed transaction between Tenant and the
proposed transferee.
(ii)
Before the effective date of any such transfer, Tenant and the
proposed transferee, must deliver to Landlord a fully executed copy
of the transfer documents, which must: (A) provide Tenant and each
Guarantor will remain fully liable to Landlord for any and all
obligations under this Lease; (B) state, as of the effective date
of the transfer, Landlord is not in default under the Lease or
specify the nature of Landlord’s default; (C) provide the
proposed transferee will assume all obligations under this Lease
and confirm that its interest in the Premises is subordinate to
this Lease; (D) require that the proposed transferee must pay to
Landlord all rent and other consideration for the use or occupancy
of the Premises; and (E) require that the proposed transferee use
the Premises for engaging in the same business as the Tenant.
12.2
Standard for Approval. Landlord shall not unreasonably
withhold its consent to a Transfer provided that Tenant has
complied with each and every requirement, term, and condition of
this Section 12. Tenant acknowledges and agrees that each
requirement, term, and condition in this Section 12 is a reasonable
requirement, term, or condition. It shall be deemed
reasonable for Landlord to withhold its consent to a Transfer if
any requirement, term, or condition of this Section 12 is not
complied with or (a) the Transfer would cause Landlord to be in
violation of its obligations under another lease or agreement to
which Landlord is a party; b) in Landlord’s reasonable
judgment, a proposed assignee or subtenant has a smaller net worth
than Tenant had on the date this Lease was entered into with Tenant
or is less able financially to pay the rents due under this Lease
as and when they are due and payable; (c) a proposed
assignee’s or subtenant’s business will impose a burden
on the Project’s parking facilities, elevators, Common Areas,
or utilities that is greater than the burden imposed by Tenant, in
Landlord’s reasonable judgment; (d) the terms of a proposed
assignment or subletting will allow the proposed assignee or
subtenant to exercise a right of renewal, right of expansion, right
of first offer, right of first refusal, or similar right held by
Tenant; (e) a proposed assignee or subtenant does not, in
Landlord’s reasonable judgment, have a good credit rating;
(f) a proposed assignee or subtenant refuses to enter into a
written assignment agreement or sublease, reasonably satisfactory
to Landlord, which provides that it will abide by and assume all of
the terms and conditions of this Lease for the term of any
assignment or sublease (g) any guarantor of this Lease refuses to
consent to the Transfer or to execute a written agreement
reaffirming the guaranty; (h) Tenant is in default as defined in
Section 13.1 at the time of the request; o
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