NORTHPOINT
CENTRE
OFFICE LEASE
AGREEMENT
By and Between
Connecticut General Life
Insurance Company, a Connecticut corporation,
on behalf of its Separate
Account R
(“Landlord”)
and
Wintegra,
Inc.
(“Tenant”)
DATED:
_____________________
REFERENCE
DATA
This Reference Data summarizes basic lease
information. It is not part of the Lease.
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On or about
March 1, 2004
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5,449 sq. ft.
of Net Rentable Area
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$8.90 (estimate
for 2004)
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Tenant
Improvement/Construction Agreement
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TABLE OF
CONTENTS
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Section or
Exhibit No.
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Description
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Page
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ARTICLE I
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DEFINITIONS
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1.1
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Leased Premises
and Related Terms
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1
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1.2
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Lease
Year
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3
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1.3
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Base Operating
Cost
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3
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1.4
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Proportionate
Share
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5
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1.5
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Hazardous
Materials
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5
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ARTICLE II
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TERM
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2.1
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Lease
Term
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5
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ARTICLE III
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RENT
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3.1
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Rental
Payments
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6
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3.2
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Base
Rental
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7
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3.3
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Additional
Rental
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7
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3.4
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First
Month’s Rent and Security Deposit
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8
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ARTICLE IV
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TENANT’S DUTIES
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4.1
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Use
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8
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4.2
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Repairs,
Maintenance, and Cleaning
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9
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4.3
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Compliance with
Laws; Americans With Disabilities Act
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10
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4.4
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Assignment and
Subletting
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10
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4.5
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Rules and
Regulations
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12
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4.6
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Alterations by
Tenant
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12
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4.7
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Taxes Payable
By Tenant
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13
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4.8
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Condition of
Leased Premises
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14
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4.9
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Limits on
Hazardous Materials
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14
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ARTICLE V
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LANDLORD’S RIGHTS AND
DUTIES
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5.1
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Right of Access
by Landlord
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5.2
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Services to be
Provided by Landlord
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5.3
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Limited Patrol
Service
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5.4
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Keys
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5.5
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Tenant
Identification and Signage
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5.6
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Lobby
Directory
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5.7
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Repairs by
Landlord
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ARTICLE VI
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INSURANCE, DAMAGE, AND
CONDEMNATION
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6.1
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Indemnity and
Hold Harmless
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6.2
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Property
Insurance by Landlord
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6.3
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Property
Insurance by Tenant
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18
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6.4
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Liability
Insurance
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6.5
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General
Insurance Requirements
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6.6
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Waiver of
Subrogation
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6.7
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Fire or Other
Casualty
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6.8
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Condemnation
and Loss or Damage
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ARTICLE VII
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DEFAULT
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7.1
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Default by
Tenant
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7.2
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Holding
Over
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7.3
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Non-Waiver
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7.4
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Attorney’s Fees
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7.5
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Landlord’s Lien
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7.6
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Default by
Landlord
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7.7
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Limitation on
Liability of Landlord
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ARTICLE VIII
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GENERAL
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8.1
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The
Landlord’s Mortgagee
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8.2
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Estoppel
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8.3
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Notice
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8.4
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Parking
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8.5
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Miscellaneous
Provisions
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8.6
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Anti-Terrorism
Representations
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8.7
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Other
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EXHIBIT
“A”
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DESCRIPTION OF
LAND
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EXHIBIT
“B”
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PLAT OF LEASED
PREMISES
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EXHIBIT
“C”
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BUILDING RULES
AND REGULATIONS
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EXHIBIT
“D”
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PARKING RULES
AND REGULATIONS
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EXHIBIT
“E”
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ADDITIONAL
AGREEMENTS
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EXHIBIT
“F”
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COMMENCEMENT
DATE DECLARATION
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EXHIBIT
“G”
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TENANT
IMPROVEMENT/CONSTRUCTION AGREEMENT
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EXHIBIT
“H”
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ERISA PARTIES
IN INTEREST LIST SEPARATE ACCOUNT R
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LEASE
AGREEMENT
THIS LEASE AGREEMENT
(“Lease”) is made and entered into as of the date
indicated below by and between Connecticut General Life
Insurance Company, a Connecticut corporation, on behalf of its
Separate Account R (“Landlord”);
Wintegra, Inc., a Delaware Corporation
(“Tenant”). Subject to and upon the terms, provisions,
and conditions set forth in this Lease, and each in consideration
of the duties, covenants, and obligations of the other hereunder,
Landlord does lease, demise, and let the Leased Premises (defined
below) to Tenant, and Tenant does lease, demise, and take the
Leased Premises from Landlord.
WITNESETH:
ARTICLE I
DEFINITIONS
Unless otherwise clearly indicated by the
context, the following terms shall have the meanings specified
below when they are used in the Lease:
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1.1
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Leased
Premises and Related Terms .
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The term “Land” shall mean the real
property described in Exhibit “A” which is
attached to this Lease and incorporated by reference.
The term “Building” shall mean the
Land and all improvements located on the Land, including the office
and retail building and the parking Parking Areas now located on
the Land.
The term “Leased Premises” shall
mean the following described office space located within the
Building:
Approximately
5,449 square feet of Net Rentable Area (defined below) being Suite
215, located on the 2 nd . floor of the Building, as
reflected on the floor plan(s) attached to and made a part of this
Lease as Exhibit “B” .
The term “Net Rentable Area,” as
used herein, shall mean: (i) in the case of a floor leased to a
single tenant, all floor area measured from the inside surface of
the outer glass line of the Building to the inside surface of the
opposite outer glass line, excluding only Service Areas and General
Common Areas (defined below), plus an allocation of the square
footage of the General Common Areas; and (ii) in the case of a
floor leased to more than one tenant, all floor areas within the
inside surface of the outer glass line of the Building enclosing
the Leased Premises and measured to the midpoint of demising walls
{i.e., walls separating the Leased Premises from areas leased to or
held for lease to other tenants, from On-Floor Common Areas
(defined below) and from General Common Areas}, excluding only
Service Areas, plus an allocation of the square footage of the
General Common Areas and an allocation of the square footage of the
On-Floor Common Areas. No deductions from Net Rentable Area shall
be made for columns or projections necessary to the Building. The
Net Rentable Area has been calculated based on BOMA
standards.
“Service Areas” shall mean the areas
within (and measured from the midpoint of the walls enclosing) the
Building’s stairs, fire towers, elevator shafts, flues,
vents, stacks, pipe shafts and vertical ducts. Areas for the
specific use of Tenant and installed at the request of Tenant, such
as special stairs or elevators, are not included within the
definition of Service Areas.
“General Common Areas” shall mean
those areas within (and measured from the midpoint of the walls
enclosing) the Building’s elevator machine rooms, main
mechanical and electrical rooms, public lobbies, management office
and other areas not leased or held for lease within the Building
but which are necessary or desirable for the proper utilization of
the Building or to provide customary services to the Building. The
allocation of the square footage of the General Common Areas shall
be equal to the total General Common Areas within the Building
multiplied by a fraction, the numerator of which is the Net
Rentable Area of the Leased Premises (excluding only the allocation
of the General Common Areas) and the denominator of which is the
Net Rentable Area (excluding only the General Common Areas) of all
office space leased or held for lease in the Building.
“On-Floor Common Areas” shall mean
all areas within (and measured from the midpoint of the walls
enclosing) public corridors, elevator foyers, restrooms, mechanical
rooms, janitor closets, telephone and equipment rooms, and other
similar facilities for use of all tenants on the floor on which the
Leased Premises are located. In the case of a floor leased to more
than one tenant, the allocation of the square footage of the
On-Floor Common Areas on said floor shall be equal to the total
On-Floor Common Areas on said floor multiplied by a fraction, the
numerator of which is the Net Rentable Area of the portion of the
Leased Premises (excluding the allocation of the General Common
Areas and excluding the allocation of the On-Floor Common Areas)
and the denominator of which is the Net Rentable Area (excluding
the allocation of the General Common Areas and excluding the
allocation of the On-Floor Common Areas) of all office space leased
or held for lease on said floor.
The Net Rentable Area of the Leased Premises has
been calculated on the basis of the foregoing definition and a
multi-tenant floor add-on factor of 15% and is stipulated to be
5,449 square feet.
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1.2
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Lease
Year . The term
“Lease Year” shall mean the twelve (12) month period
beginning January 1 and ending December 31 of the applicable
calendar year.
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1.3 Base
Operating Cost . The term “Base Operating Cost”
shall mean the aggregate of all expenditures incurred by Landlord
to maintain and operate the Building in a first class manner. All
such expenses shall be determined in accordance with generally
accepted accounting principles which shall be consistently applied.
Base Operating Cost, as used in this Lease, shall mean all
expenses, costs, and disbursements of every kind and nature which
Landlord shall pay or become obligated to pay because of or in
connection with the ownership and operation of the Building and the
Parking Areas, including but not limited to, the
following:
(a) Wages, salaries and any ancillary expenses of
all employees actually engaged in operation and maintenance of the
Building and the Parking Areas, including taxes, insurance and
benefits relating thereto.
(b) All supplies and materials used in operation
and maintenance of the Building and the Parking Areas.
(c) Cost of all utilities for the Building and
Parking Areas, including, but not limited to, electric, gas, water,
heating lighting, air conditioning and ventilating the Building as
provided pursuant to Article 5.2, below.
(d) Cost of all maintenance, service, and operating
agreements for the Building and Parking Areas and the equipment
therein, including, but not limited to security service, window
cleaning, elevator maintenance, landscaping, janitorial service and
Parking Area operation.
(e) The gross cost of casualty and liability
insurance applicable to the Building and Parking Areas and
Landlord’s personal property used in connection therewith as
provided in Article VI below.
(f) All taxes and assessments and governmental
charges whether federal, state, county or municipal, and whether
they be by taxing districts or authorities presently taxing the
Leased Premises or by others, subsequently created or otherwise,
and any other taxes and assessments attributable to the Building
and Parking Areas or their operation, excluding, however, federal
and state taxes on income.
(g) Cost of repairs and general maintenance
undertaken by Landlord in its sole discretion on or of the Building
and Parking Areas (excluding only: (i) repairs and general
maintenance to the structure, foundation, and exterior walls of the
Building and Parking Areas; (ii) repairs and general maintenance
paid by proceeds of insurance or by Tenant or other third parties;
and (iii) alterations attributable solely to tenants of the
Building other than Tenant).
(h) Amortization of the cost of installation of
capital investment items which are installed for the purpose of
reducing operating expenses or which may be required by
governmental authority. All such costs shall be amortized over the
reasonable life of the capital investment item, together with
interest at the rate of ten percent (10%) per annum on the
unamortized balance, with the reasonable life and amortization
schedule being determined in accordance with generally accepted
accounting principles and in no event to extend beyond the
reasonable life of the Building or Parking Areas. In the case of
installations for the purpose of reducing operating expenses,
Landlord at Tenant’s request shall provide cost
justifications showing that the anticipated reduction in operating
expenses is greater than the annual amortization amount related to
the capital investment item.
(i) All commercially reasonable management fees
incurred by Landlord for the management of the Building and Parking
Areas.
(j) Landlord’s central accounting costs
applicable to the Land, the Building and the Parking Areas,
together with any costs incurred by Landlord to prepare any audit
required pursuant to the terms of this Lease.
(k) Any costs incurred by Landlord to furnish any
specific service or repair required by Section 5.2 of this
Lease.
(l) Any and all other expenses paid in connection
with the operation of the Building and the Parking Areas which are
properly chargeable against the income therefrom.
Tenant, at
Tenant’s option and expense, may audit Landlord’s
accounts to substantiate any costs claimed.
If any of the factors included in “Base
Operating Cost” are not payable, billed, or otherwise due so
as to allow an accurate calculation of said factors annually (e.g.,
ad valorem taxes and long-term contracts), Landlord, in its sole
discretion, may estimate and prorate said factors on an annual
basis, and said factors shall be properly adjusted by Landlord when
they actually become due and payable.
Notwithstanding any other provision in this
Lease to the contrary, it is agreed that in the event the Building
is not fully occupied during any calendar year or in the event the
entire Building is not provided with Building standard services
during any calendar year, an adjustment shall be made in computing
such component of the Base Operating Cost for such year so that the
actual operating expenses shall be computed for such year as though
the Building had been fully occupied during such year and as though
the entire Building had been provided with Building standard
services during such year.
Notwithstanding anything to the contrary in this
Section 1.3, Base Operating Cost shall not include any costs
incurred in the replacement of capital investment items except
those made for the purposes of reducing operating expenses, nor
Landlord’s home office expense nor specific costs specially
billed to specific tenants nor commissions paid for the leasing or
renting of space in the Building.
1.4
Proportionate Share . Tenant’s “Proportionate
Share” of the Base Operating Cost or other charges to be
borne by Tenant in accordance with the terms hereof shall be the
amount obtained by multiplying the total sum of such Base Operating
Cost or other charges by the percentage obtained by dividing the
Net Rentable Area in the Leased Premises (5,449) by the total
number of square feet of Net Rentable Area in all office space
leased or held for lease in the Building (149,894) (such percentage
being referred to as Tenant’s “Pro Rata Share”).
Tenant’s Pro Rata Share is stipulated to be 3.6%.
1.5
Hazardous Materials . The term “Hazardous
Materials” shall mean any substance, materials and wastes
that are or become regulated, restricted or prohibited as
hazardous, toxic or polluting substances under any applicable
federal, state or local law, regulation, ordinance or
order.
ARTICLE II
TERM
2.1 Lease Term . Subject to and upon the terms and conditions
set forth in this Lease, or in any exhibit attached hereto, the
primary term of this Lease shall commence on the
“Commencement Date” as defined below, and shall
terminate on the Last days of the 36 month of the Lease Term. The
“Lease Term” of this Lease shall be the primary term
specified in this Section 2.1, unless renewed or otherwise extended
or earlier terminated pursuant to the terms and provisions of this
Lease. The Commencement Date of this Lease shall be the date the
Leased Premises are deemed to be ready for occupancy by Tenant upon
the first to occur of (i) the date that there is delivered to
Tenant a certificate of substantial completion of the improvements
in and to the Leased Premises from Landlord’s architect,
which certificate shall be binding and conclusive upon Tenant; or
(ii) the date on which Tenant, or anyone claiming by, through or
under Tenant, occupies any portion of the Leased Premises. Within
five (5) days after the Commencement Date, Tenant will, at the
request of Landlord, execute a Commencement Date Declaration in
substantially the form attached hereto as Exhibit
“F” .
ARTICLE III
RENT
3.1 Rental
Payments .
(a) Commencing on the Commencement Date and
continuing thereafter throughout the Lease Term, Tenant agrees to
the Base Rental as described in Section 3.2, plus Tenant’s
Forecast Additional Rental and Tenant’s Additional Rental as
described in Section 3.3. The Base Rental together with
Tenant’s Forecast Additional Rental shall be due and payable
in equal monthly installments, in advance, on the first day of each
calendar month during the Lease Term. Tenant agrees to pay such
rent to Landlord at Landlord’s address for notice as provided
herein (or such other address as may be designated by Landlord from
time to time). If the term of the Lease is deemed to have commenced
on a date other than the first date of a calendar month, the
expiration date of the primary term shall be extended so as to give
effect to the full term specified in 2.1 above in addition to the
remainder of the calendar month during which the Lease is deemed to
have commenced.
(b) If the Lease Term as described above commences
on other than the first day of a calendar month or terminates on
other than the last day of a calendar month, then the installments
of Base Rental and Tenant’s Forecast Additional Rental for
such month or months shall be prorated and the installment or
installments so prorated shall be paid in advance. The payment for
such prorated month shall be calculated by multiplying the monthly
installment by a fraction, the numerator of which shall be the
number of days of the Lease Term occurring during said commencement
or termination month, as the case may be, and the denominator of
which shall be the total number of days occurring in said
commencement or termination month. Also, if the Lease Term
commences or terminates on other than the first day of a calendar
year, Tenant’s Additional Rental (defined below) shall be
prorated for such commencement or termination year, as the case may
be, by multiplying each by a fraction, the numerator of which shall
be the number of days of the Lease Term during the commencement or
termination year, as the case may be, and the denominator of which
shall be 365, and the calculation described in Section 3.3(c) below
shall be made as soon as possible after the termination of this
Lease. Landlord and Tenant agree that the provisions relating to
said calculation shall survive the termination of this
Lease.
(c) Tenant shall pay all rent and other sums of
money as same shall become due from and payable by Tenant to
Landlord under this Lease at the times and in the manner provided
in this Lease, without demand, set-off or counterclaim.
(d) Tenant shall pay all applicable bank charges
incurred by Landlord plus Twenty-five and No/100 Dollars ($25.00)
for each returned check. Tenant’s right to possession and all
of Landlord’s obligations under this Lease are expressly
contingent on the prompt payment of rent, and the use of the Leased
Premises is obtained only on the condition that rent is paid on
time. Payment of rent by Tenant shall be an independent covenant.
In the event Tenant has not timely paid rent or other sums due on
two or more occasions, or in the event a check is returned for
insufficient funds or no account, Landlord may thereafter require
that all rent and other sums due be paid by cashier’s check,
certified check, or money order, without further notice.
(e) In the event that Tenant fails to pay any
installment of Base Rental, or any Additional Rental or other sums
of whatever nature owed by Tenant to Landlord under this Lease
within ten (10) days of the date such amount is due, there shall be
added to such unpaid amount a late charge of ten percent (10%) of
the past due amount in order to compensate Landlord for the extra
administrative expenses associated with the collection of such late
payment. Tenant agrees to pay Landlord interest on any past due
amount owed under this Lease at the maximum lawful rate allowed by
applicable law from the date due until paid.
3.2 Base
Rental . Throughout the Lease Term, Tenant shall pay to
Landlord a base annual rental (“Base Rental”) in an
amount of $9.10 Net Average per square foot of Net Rentable Area
within the Leased Premises per year, or an amount as outlined below
per calendar month commencing on the Commencement Date:
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Months 1- 36
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$9.10 per square foot
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(a) Commencing with the Lease Year in which the
Commencement Date occurs and continuing thereafter for each Lease
Year during the Lease Term, Landlord shall present to Tenant prior
to the beginning of said Lease Year (or for the first Lease Year,
prior to the commencement of said term) a statement of
Tenant’s Forecast Additional Rental (defined below). In
Landlord’s best estimate as of the date of this Lease,
Tenant’s Forecast Additional Rental for the first Lease Year
is estimated to be $8.90 per square foot of Net Rentable Area in
the Leased Premises per year , which shall not be increased during
the calendar year of 2004. Tenant Agrees to pay Tenant’s
Forecast Additional Rental according to the terms of Section 3.1
(that is, in equal monthly installments in advance).
“Tenant’s Forecast Additional Rental” shall mean
Landlord’s reasonable estimate of Tenant’s Additional
Rental (defined below).
(b) “Tenant’s Additional Rental,”
as used herein, shall mean for each Lease Year or partial Lease
Years during the Lease Term, Tenant’s Pro Rata Share of the
Base Operating Cost.
(c) Within one hundred fifty (150) days after the
end of the first Lease Year in which the Commencement Date occurs
and of each Lease Year thereafter during the Lease Term, or as soon
as possible thereafter, Landlord shall provide Tenant a statement
showing the Base Operating Cost for said Lease Year and a statement
prepared by Landlord comparing Tenant’s Forecast Additional
Rental with Tenant’s Additional Rental for said Lease Year.
In the event that Tenant’s Forecast Additional Rental exceeds
Tenant’s Additional Rental for said Lease Year, Landlord
shall pay Tenant (in the form of a credit against rentals next due)
an amount equal to such excess. In the event that Tenant’s
Additional Rental exceeds Tenant’s Forecast Additional Rental
for said Lease Year, Tenant shall pay Landlord, within ten (30)
days of receipt of the statement, an amount equal to such
difference.
3.4 First Month’s Rent and Security
Deposit . At the time of
execution of this Lease, Tenant shall pay in advance the first
monthly installment of Base Rental and Tenant’s Forecast
Additional Rental. On the same date, Tenant shall deposit with
Landlord, an amount equal to $8,173.00 (the “Security
Deposit”) as security for Tenant’s faithful performance
of Tenant’s obligations herein contained. If Tenant defaults
in any manner in the performance of Tenant’s obligations
contained in this Lease, Landlord may use, apply or retain all or
any portion of the Security Deposit for the payment of any rent, or
other sum in default or for the payment of any other sum or expense
to which Landlord may become obligated by reason of such default,
or to compensate Landlord for any loss or damage which Landlord may
suffer thereby. Landlord shall not be required to separately
account for the Security Deposit nor to maintain an escrow or
separate account therefor. If Tenant performs all of Tenant’s
obligations under this Lease, the Security Deposit, or so much
thereof as has not been applied by Landlord, shall be returned,
without payment of interest or other increment for its use, to
Tenant (or, at Tenant’s option, the last assignee, if any, of
Tenant’s interest hereunder) within sixty (60) days after the
expiration of the Lease Term, and after Tenant has vacated the
Leased Premises. Landlord’s right to so apply the Security
Deposit shall in no manner limit, impair or otherwise affect any of
Landlord’s remedies set forth in this Lease.
ARTICLE IV
TENANT’S
DUTIES
(a) The Leased Premises are to be used and occupied
by Tenant (and its permitted assignees and subtenants) solely for
the purpose of general office use and for no other
purpose.
(b) Tenant agrees not to commit or suffer to be
committed on the Leased Premises any nuisance or other act or thing
against public policy or which violates any law or governmental
regulation or which is disreputable or which may disturb the quiet
enjoyment of any other tenant of the Building or Parking Areas of
which the Leased Premises are a part.
(c) Tenant will not use, occupy, or permit the use
or occupancy of the Leased Premises for any unlawful, disreputable,
immoral, or hazardous purpose; or maintain or permit the
maintenance of any public or private nuisance; or do or permit any
act or thing which may disturb the quiet enjoyment of any other
tenant of the Building; or keep any substance or carry on or permit
any operation which might emit offensive odors into other portions
of the Building; or permit anything to be done which would increase
the fire and extended insurance rate of the Building or contents or
terminate the fire and extended insurance coverage. The Leased
Premises shall not be used for any purpose which would tend to
lower the first-class character of the Building, or create
unreasonable elevator loads or otherwise interfere with standard
Building operations, and Tenant shall not engage in any activity
which is not in keeping with the standards of the
Building.
(d) Tenant shall not place, install, or operate on
the Leased Premises or in any part of the Building any engine,
refrigerating, heating, or air conditioning apparatus, stove, or
machinery, or conduct mechanical operations, or place or use in or
about the Leased Premises any inflammable, explosive, hazardous,
toxic or odorous solvents or materials without the prior written
consent of Landlord. No portion of the Leased Premises shall at any
time be used for cooking, sleeping or lodging quarters.
4.2 Repairs,
Maintenance, and Cleaning . Tenant shall, at all times during
the Lease Term and at Tenant’s sole cost and expense, keep
the Leased Premises and every part thereof in a clean, attractive
condition and in good repair. Tenant will not damage the Leased
Premises or any other portions of the Building. Without limitation
on any of the foregoing, Tenant hereby recognizes that the Building
is a first-class office building and as a further inducement to
Landlord to enter into this Lease, Tenant hereby covenants and
agrees as follows:
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Tenant will
remove all rubbish and other debris from the Leased Premises at
such times and to such locations as may be specified by Landlord
from time to time and under conditions approved by
Landlord.
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Tenant will
place no fixtures, furnishings, decorations, or equipment in the
Leased Premises except such as are satisfactory to and, prior to
being installed or placed therein, shall have been approved in
writing by Landlord.
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Landlord shall
retain the right to monitor the performance of any such
obligations. If Landlord determines that Tenant is in default of
any of Tenant’s obligations under this Section 4.2 and if
Tenant fails to cure such default within forty-eight (48) hours
after Landlord has provided a written notice of such default to
Tenant, then Landlord shall have the right to cause the same to be
cured at Tenant’s expense, and Tenant shall reimburse
Landlord for all costs incurred to cure such default plus a charge
of fifteen percent (15%) within ten (10) days of Tenant’s
receipt of Landlord’s statement for such costs. Tenant shall
also be responsible for any damage or injury to any portion of the
building which is caused by Tenant, Tenant’s agents,
contractors, employees, invitees, or visitors, but such damage or
injury shall be repaired or replaced only by Landlord, and Tenant
shall repay to Landlord on demand the cost thereof (plus a charge
of fifteen percent (15%). Upon the termination of this Lease,
Tenant will surrender and deliver the Leased Premises in good order
and repair and in the same condition as upon the commencement of
this Lease, normal wear and tear and insured casualty loss
excepted. Upon termination of this Lease, Landlord shall have the
right to reenter and resume possession of the Leased
Premises.
4.3 Compliance with Laws; Americans With
Disabilities Act . Tenant
will comply with and shall cause its visitors, employees,
contractors, agents and invitees to comply with all Federal, state,
municipal and other laws, ordinances, rules, and regulations
applicable to the Leased Premises and the business conducted
therein by Tenant. Tenant shall forward to Landlord within five (5)
days of their receipt copies of any notices received from any
governmental authorities with respect to Tenant’s compliance
or non-compliance with any such laws or rules. Tenant shall also
comply with the requirements of any board of fire underwriters or
other similar body now or hereafter constituted, with any occupancy
certificate issued pursuant to any law by any public officer or
officers, as well as the provisions of all recorded documents
affecting the Leased Premises, insofar as any thereof relate to or
affect the condition, use or occupancy of the Leased Premises.
Notwithstanding any other provision in this Lease to the contrary,
Landlord agrees to be responsible for the requirements effective as
of this date under the Americans with Disabilities Act of 1990 (the
“Act”) as it relates to (i) the initial build-out of
the Leased Premises pursuant to this Lease, (ii) the Common Areas,
(iii) the Parking Areas and (iv) structural Building items that
Landlord is required to maintain under the terms of this Lease, but
only to the extent that such requirements are “readily
achievable” (as defined in the Act) and would apply to, and
be imposed equally on, any use of the Leased Premises by a typical
office space tenant in the Building, as opposed to being
attributable to Tenant’s unique use occupancy, or layout of
the Leased Premises, including, without limitation, the positioning
of Tenant’s furnishings within such Leased Premises. Tenant,
at Tenant’s sole cost and expense, shall be responsible for
compliance with the Act within the Leased Premises. Landlord and
Tenant agree to cooperate fully with each other to enable timely
compliance with the provisions of this Section. Tenant will
immediately forward to Landlord any notice Tenant receives
regarding complaints, inquiries, or claims by any parties under the
Act.
4.4
Assignment and Subletting .
(a) Tenant shall not assign this Lease or sublet
these Leased Premises or any part thereof, or mortgage, pledge or
hypothecate its leasehold interest without the prior express
written permission of Landlord, which permission shall not be
unreasonably withheld, conditioned or delayed, and any attempt to
do any of the foregoing without the prior express written
permission of Landlord shall be void and of no effect. This Section
4.4 shall apply to the hypothecation of any of Tenant’s
interest in the leasehold estate, including, but not limited to,
sale of more than 50% of stock in a non-publicly traded corporate
tenant and sale of more than 50% of a partnership interest in a
partnership tenant. In the event Tenant should desire to assign
this Lease or sublet the Leased Premises or any part thereof,
Tenant shall give Landlord written notice (which shall specify all
of the terms of said proposed sublease or assignment as well as the
name and address of each proposed assignee or subtenant, and
current and complete financial statements [including a balance
sheet, income statement and copies of Federal tax returns for the
previous three (3) years] of each proposed assignee or subtenant)
of such desire at least sixty (60) days in advance of the date on
which Tenant desires to make such assignment or sublease. Landlord
shall then have a period of thirty (30) days following receipt of
such notice within which to notify Tenant in writing that Landlord
elects: (1) to terminate this Lease as to the space so affected as
of the date so specified by Tenant in its notice, in which event
Tenant will be relieved of all obligations hereunder as to such
space; (2) to permit Tenant to assign this Lease or sublet such
space for the duration specified by Tenant in its notice; or (3) to
reject the proposed assignment or sublease, for reasonable cause,
explained to Tenant. If Landlord should fail to notify Tenant in
writing of such election within the thirty (30) day period,
Landlord shall be deemed to have elected option (3) above. In
addition, no space shall be listed or offered to any broker for
listing or advertisement, nor shall Tenant advertise for subletting
without prior written approval of Landlord.
(b) If Landlord exercises its right as of the
requested effective date of such assignment, sublease or other
transaction to cancel and terminate this Lease as set forth in
subparagraph (a) above, Landlord shall not be obligated to pay any
consideration to effect such cancellation as to the portion of the
Leased Premises and the term of Lease with respect to which
Landlord has been requested to permit such assignment, sublease, or
other transaction; and if Landlord elects to cancel and terminate
this Lease as to the aforesaid portion of the Leased Premises and
for the term proposed to be assigned or subleased, then the rent
and other charges payable hereunder shall thereafter be
proportionately reduced. In addition to the right of Landlord to
withhold its consent to the assignment or subletting of the Leased
Premises by Tenant as described in Section 4.4, Landlord shall be
deemed to have reasonably withheld its consent to any assignment or
subletting which would involve a different use of the Leased
Premises, any material alteration of the Leased Premises or any
impairment of Landlord’s security interest.
(c) In any case where Landlord consents to an
assignment or sublease of the leasehold, the undersigned Tenant
will remain liable for the performance of all of the covenants,
duties, and obligations in this Lease, including, without
limitation, the obligation to pay all rent and other sums to be
paid, and Landlord shall be permitted to enforce the provisions of
this instrument against the undersigned Tenant and/or any assignee
or sublessee without demand upon or proceeding in any way against
any other person. In addition, if Landlord consents to such an
assignment or sublease, Tenant shall enter into a written agreement
with Landlord where it is agreed that any profit realized by Tenant
as a result of said assignment or sublease (that is, after
deducting all of Tenant’s costs associated therewith,
including reasonable brokerage fees and the reasonable cost of
remodeling or otherwise improving the Leased Premises for said
assignee or sublessee) shall be payable to Landlord as it accrues
as additional rent hereunder. If Tenant refuses to execute such
written agreement, Landlord shall be deemed to have reasonably
withheld its consent to the proposed assignment or
sublease.
(d) In any case where Landlord consents to any such
assignment, sublease, or other transaction, Landlord requires
consent to sublease executed by Landlord, Tenant and Sublessee and
may require that Tenant pay to Landlord a reasonable sum as
attorney’s fees (attorney fees shall not exceed $750.00) or
other fees and costs to change the lobby directory and tenant
signage arising incident to such transaction, and that the assignee
or subtenant pay Landlord a reasonable sum incurred by Landlord in
moving the assignee or subtenant in and out of the Leased Premises
should Landlord provide such assistance; however, Landlord shall
have no obligation to provide such service.
(e) Tenant shall give Landlord written notice of
the consummation of any assignment or sublease consented to by
Landlord; furnish to Landlord copies of all assignments, transfers,
subleases and other documents executed in connection with such
assignment or sublease; and notify Landlord in writing of the date
the assignee or subtenant takes possession of the Leased Premises
or a portion thereof.
(f) Each sublessee or assignee shall fully observe
all covenants of this Lease, including, without limitation, the use
restrictions of this Lease and provisions of this Lease pertaining
to Tenant signage and alteration of the Leased Premises, and no
consent by Landlord to an assignment or sublease shall be deemed in
any manner to be consent to a use not permitted under this Lease.
Any consent by Landlord to a particular assignment or sublease
shall not constitute Landlord’s consent to any other or
subsequent assignment or sublease, and any proposed assignment or
sublease by an assignee or sublessee of Tenant shall be subject to
the provisions of this Section 4.4 as if it were a proposed
assignment or sublease by Tenant.
(g) As a condition precedent to any actual or
deemed consent of Landlord to any assignment or subletting, Tenant
shall cause the assignee or subtenant to take all action necessary
to assure that the statutory and contractual Landlord’s liens
apply to property of the subtenant or assignee to the same or
greater extent, for the same or greater value of property, and with
the same or better priority than Tenant’s property which is
subject to such landlord’s liens. Tenant shall furnish a
current UCC Search of the proposed subtenant or assignee and shall
cause the assignee or subtenant to execute financing statements
pursuant to the terms of this Lease.
4.5 Rules
and Regulations . Tenant shall perform, observe, and comply
with the Rules and Regulations of the Building, as attached to and
made a part of this Lease as Exhibit “C” and,
upon written notice thereof to Tenant, any changes, amendments, or
additions as from time to time shall be established and deemed
advisable by Landlord for tenants of the Building. Landlord shall
not have any liability to Tenant for any failure of any other
tenant or tenants of the Building to comply with such Rules and
Regulations.
4.6
Alterations by Tenant .
(a) Tenant shall not make or allow to be made
(except as otherwise specifically provided in this Lease) any
alterations or physical additions (including fixtures) to be made
in or to the Leased Premises, or place safes, vaults or other heavy
furniture or equipment within the Leased Premises, without first
obtaining the written consent of Landlord. Tenant shall deliver to
Landlord a copy of the “as-built” plans and
specifications for all alterations or physical additions made with
the approval of Landlord in or to the Leased Premises. Tenant
agrees specifically that no food, soft drink or other vending
machine will be installed within the Leased Premises without the
written consent of Landlord. Landlord shall retain the right to
monitor the performance of any alterations or additions to the
Leased Premises after the plans and specifications for same have
been approved by Landlord.
(b) All alterations, physical additions or
improvements in or to the Leased Premises (including fixtures)
shall, when made, become the property of Landlord and shall be
surrendered to Landlord upon termination of this Lease; provided,
however, this clause shall not apply to movable trade fixtures,
equipment or furniture owned by Tenant as long as Tenant restores
the Leased Premises to its initial improved condition after the
removal of any such property by Tenant.
(c) Tenant shall indemnify and hold harmless
Landlord from and against all costs (including attorneys’
fees and costs of suit), losses, liabilities or causes of action
arising out of or relating to any alterations, additions or
improvements made by Tenant to the Leased Premises, including, but
not limited to, any mechanic’s or materialmen’s liens
asserted in connection therewith.
(d) Should any mechanic’s or other lien or
liens be filed against any portion of the Building by reason of
Tenant’s acts or omissions or because of a claim against
Tenant, Tenant shall cause the same to be canceled or discharged of
record by bond or otherwise within ten (10) days after notice by
Landlord. If Tenant shall fail to cancel or discharge said lien or
liens within said ten-day period, Landlord may, at its sole option,
cancel or discharge the same and, upon Landlord’s demand,
Tenant shall promptly reimburse Landlord for all costs incurred in
canceling or discharging such liens.
4.7 Taxes
Payable By Tenant . In addition to all other sums to be paid by
Tenant under this Lease, Tenant shall pay, before delinquency, any
and all taxes levied or assessed during the Lease Term on
inventory, equipment, furniture, fixtures and other personal
property located in the Leased Premises, and shall reimburse
Landlord upon demand for any and all taxes paid or payable by
Landlord (other than state and federal personal or corporate income
taxes measured by the net income of Landlord from all sources)
whether or not now customary or within the contemplation of the
parties to this Lease:
(a) upon or with respect to the possession,
leasing, operation, management, maintenance, alteration, repair,
use or occupancy by Tenant of the Leased Premises, or any portion
thereof;
(b) upon, measured by or reasonably attributable to
the cost or value of Tenant’s equipment, furniture, fixtures,
inventory and other personal property located in the Leased
Premises or the cost or value of any leasehold improvements within
the Leased Premises; and
(c) upon this transaction or any document to which
Tenant is a party creating or transferring an interest or an estate
in the Leased Premises.
If it is not lawful for Tenant to reimburse
Landlord for any of the foregoing taxes, the rental payable to
Landlord under this Lease shall be revised to net to Landlord as
would have been payable to Landlord before the imposition of any
such tax.
4.8 Condition of Leased Premises
. Tenant has full knowledge of all
matters pertaining to the Leased Premises, including, but not
limited to, the condition of the tenant improvements therein.
Accordingly, Tenant hereby acknowledges that it is leasing the
Leased Premises on an “AS IS” basis in whatever
physical condition the same may be, and Landlord makes no
warranties of any kind or nature, express, implied, or otherwise,
or any covenants of any kind or nature, in connection therewith.
Tenant expressly waives and disclaims all representations,
warranties (express or implied) and agreements not expressly set
forth in this Lease, including but not limited to any implied
warranty of suitability of the Leased Premises for the intended
commercial use of Tenant.
4.9 Limits
on Hazardous Materials . With respect to Hazardous Materials,
Tenant hereby agrees that:
(a) No activity will be conducted on the Leased
Premises that will produce any Hazardous Materials;
(b) The Leased Premises will not be used for the
storage of any Hazardous Materials except for the temporary storage
of minimal amounts of such materials that are used in the ordinary
course of Tenant’s business, provided that such Hazardous
Materials are properly stored in a manner and location meeting all
applicable laws concerning Hazardous Materials and approved in
advance and in writing by Landlord;
(c) Tenant will not permit any Hazardous Materials
to be brought on to the Leased Premises, except to the extent
authorized in item (b) described above.
If at any time
during or after the Lease Term the Leased Premises is found to be
contaminated by Hazardous Materials, Tenant agrees to indemnify and
hold Landlord harmless from all claims, demands, actions,
liabilities, costs, expenses, damages and obligations of any nature
arising from or as a result of the breach of the provisions of this
paragraph by Tenant. The foregoing indemnification shall survive
the termination or expiration of this Lease.
ARTICLE V
LANDLORD’S RIGHTS AND
DUTIES
5.1 Right of
Access by Landlord . Landlord or Landlord’s agents,
employees or representatives may enter the Leased Premises during
normal business hours, following reasonable notice (except in the
case of a bona fide emergency or with Tenant’s consent), to
(a) inspect the same, (b) exhibit the same to prospective
purchasers, mortgagees or tenants, (c) determine whether Tenant is
complying with all its obligations hereunder, (d) supply any
service to be provided by Landlord to Tenant hereunder, (e) post
“for lease” signs of reasonable size upon the Leased
Premises during the last six (6) months of the Lease Term, and (f)
make repairs required of Landlord under the terms hereof or repairs
and/or improvements to any adjoining space or utility services or
make repairs, alterations or additions to any other portion of the
Building as Landlord may deem necessary or proper for the safety,
improvement, or preservation of the Leased Premises or of the
Building, as a first class building. All such work shall be done as
promptly as reasonably possible and so as to cause as little
interference to Tenant as reasonably possible, but Tenant shall in
no event be entitled to any abatement or reduction in rent by
reason thereof. Tenant hereby waives any claim for damages for any
injury or inconvenience to or interference with Tenant’s
business, any loss of occupancy or quiet enjoyment of the Leased
Premises resulting from any such actions by Landlord. Landlord
shall at all times have and retain keys with which to unlock all of
the doors in, on and above the Leased Premises (excluding
Tenant’s vaults, safes and similar areas designated in
writing by Tenant in advance) and Landlord shall have the right to
use any and all means which Landlord may deem proper to open said
doors in an emergency to obtain entry to the Leased Premises, and
any entry to the Leased Premises obtained by Landlord by any of
said means, or otherwise, shall not under any circumstances be
construed or deemed to be a forcible or unlawful entry into or a
detainer of the Leased Premises or an eviction, actual or
constructive, of Tenant from the Leased Premises, or any portion
thereof. Landlord shall also have, at all times, the keys and/or
combination necessary to deactivate any on-Premises audible fire or
burglary alarm system and Landlord shall have the right to turn off
the audible alarm once it has sounded.
5.2 Services
to be Provided by Landlord . Subject to the rules and
regulations referred to below, Landlord shall furnish Tenant the
following services during the Lease Term:
(a) Air conditioning and heating, at such
temperatures in such amounts, and at such times as are considered
by Landlord to be standard office conditions for the Building
during normal business hours for the Building which are 7:00 a.m.
to 6:00 p.m. Monday through Friday, and 8:00 a.m. to 12:00 noon
Saturday, but not on Sundays and holidays. Overtime service for
same shall be furnished to Tenant only upon the prior request of
Tenant and Tenant shall bear the cost $35.00 per hour per zone
which is the standard hourly rate charged to other tenants in the
Building. Tenant must request additional services 24 hours in
advance or before 12:00 noon on the business day before Tenant
desires such service, or before 12:00 noon on Fridays for service
on Saturdays after 12:00 p.m., Sundays and Holidays.
(b) Janitorial service in and about the Building
and the Leased Premises, five days per week, and window washing, as
determined by Landlord to be reasonable; provided, however, if
Tenant’s floor coverings or other improvements are other than
Building standard, Tenant shall pay the additional cleaning cost,
if any attributable thereto, plus fifteen percent (15%) to cover
cost of administration.
(c) Proper facilities to furnish sufficient
electrical power for building standard lighting, typewriters,
dictating equipment, calculating machines, and other machines of
similar low electrical consumption, but not including electricity
required for electronic data processing equipment or special
lighting in excess of building standard. Tenant shall pay to
Landlord, monthly as billed, such charges as may be separately
metered or as Landlord’s engineer may compute for any
electrical service in excess of that stated above.
(d) Water for drinking, lavatory, and toilet
purposes.
(e) Replacement of ballasts and fluorescent lamps
in building standard ceiling-mounted fixtures installed by Landlord
and incandescent bulb replacement in all public areas of the
Building.
No
interruption, malfunction, diminution or termination of any
services listed in Section 5.2, or elsewhere in this Lease,
including any such interruption, malfunction, diminution or
termination that may occur due to governmental regulations or
utility policies, or in the event of Landlord’s decision to
improve any space in the Building in general, so as to maintain the
Building in a first class manner, shall constitute or be deemed to
be a constructive eviction or disturbance of Tenant’s use,
possession or commercial suitability of the Leased Premises or
Building or a breach by Landlord of any of its obligations
hereunder or render Landlord liable for damages (including loss of
profits) or entitle Tenant to be relieved from any of its
obligations hereunder (including Tenant’s independent
obligation to pay rent) or grant Tenant any right of setoff or
recoupment. In the event of any such interruption, malfunction,
diminution or termination, however, Landlord shall use reasonable
diligence to restore such service. In addition to the foregoing,
should any of the equipment or machinery break down or for any
cause cease to function properly, Tenant shall have no claim for
rebate of rent or damages on account of an interruption in service
occasioned thereby or resulting therefrom. Nothing in this Lease
shall be construed to require Landlord to furnish telephone service
of any kind or nature to Tenant.
5.3 Limited
Patrol Service . Landlord s
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