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Exhibit 10.8
OFFICE BUILDING LEASE
BETWEEN
ELIZABETHEAN COURT ASSOCIATES III
LIMITED PARTNERSHIP,
AS LANDLORD
AND
TECH TEAM GLOBAL, INC.,
AS TENANT
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TABLE OF CONTENTS
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PAGE
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1. SPECIFIC PROVISIONS
................................................. 1
1.1 PREMISES
...................................................... 1
Demised Premises ..............................................
1
Rentable Area .................................................
1
Complex .......................................................
1
Building ......................................................
1
Address .......................................................
1
1.2 LEASE DATES
................................................... 1
Lease Term ....................................................
I
Base Year .....................................................
I
Fiscal Year ...................................................
I
Lease Year ....................................................
I
Calendar Year .................................................
1
1.3 BASE ANNUAL RENT
.............................................. 1
Initial Base Annual Rent ......................................
I
Percentage Factor .............................................
2
1.4 INTENTIONALLY DELETED
......................................... 2
1.5 ADDITIONAL RENT
............................................... 2
Increases in Real Estate Taxes ................................
2
Increases in Operating Expenses ...............................
2
1.6 SECURITY DEPOSIT
.............................................. 2
1.7 STANDARD BUILDING OPERATING DAYS AND HOURS
.................... 2
1.8 USE OF PREMISES
............................................... 2
1.9 ADDRESSES
..................................................... 2
Address For Notices To Tenant .................................
2
Addresses For Notices To Landlord .............................
2
Address For Payment Of Rent ...................................
2
1.10 SPECIAL PROVISIONS
............................................ 3
1.11 EXHIBITS TO LEASE
............................................. 3
2. RENT
................................................................
3
2.1 BASE ANNUAL RENT
.............................................. 3
Payment of Base Annual Rent ...................................
3
Escalation of Base Annual Rent ................................
4
2.2 ADDITIONAL RENT
............................................... 4
Real Estate Taxes .............................................
4
Operating Expenses ............................................
4
2.3 ADDITIONAL RENT ESTIMATES AND ADJUSTMENTS
..................... 6
Initial Additional Rent Adjustments ...........................
6
Annual Budget .................................................
6
Additional Rent Reconciliations ...............................
7
Verification of Additional Rent ...............................
7
Fiscal Year ...................................................
7
Audit .........................................................
7
2.4 RENT ADJUSTMENT LIMIT
......................................... 7
2.5 SURVIVAL OF RENT OBLIGATION
................................... 8
2.6 PRO RATA SHARE
................................................ 8
2.7 PRORATED RENT
................................................. 8
2.8 APPLICATION OF RENT
........................................... 8
2.9 LATE-PAYMENT FEE AND INTEREST CHARGE
.......................... 8
2.10 OTHER TENANT COSTS AND EXPENSES
............................... 8
3. CONSTRUCTION OF PREMISES AND OCCUPANCY
.............................. 8
3.1 AS-IS
......................................................... 8
3.2 POSSESSION
.................................................... 8
3.3 PERMITS
....................................................... 9
4. SUBLETTING AND ASSIGNMENT
........................................... 9
4.1 CONSENT
....................................................... 9
4.2 RECAPTURE OF PREMISES
......................................... 10
4.3 EXCESS RENT AND OTHER CONSIDERATION
........................... 10
4.4 TENANT LIABILITY
.............................................. 10
4.5 REASONABLE STANDARDS OF CONSENT
............................... 10
4.6 OTHER TRANSFERS
............................................... 11
4.7 REQUIRED INFORMATION
.......................................... 11
4.8 FEES; DOCUMENTS
............................................... 11
4.9 RIGHTS ON DEFAULT
............................................. 12
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5. SERVICES AND UTILITIES
.............................................. 12
5.1 BUILDING STANDARD SERVICES AND UTILITIES
...................... 12
5.2 OVERTIME SERVICES
............................................. 12
5.3 EXCESSIVE USAGE
............................................... 12
(a) Equipment Restrictions ....................................
12
(b) Excessive Electrical Usage ................................
13
(c) Additional Utility Cost ...................................
13
5.4 EXCESSIVE HEAT GENERATION
..................................... 13
5.5 BUILDING SECURITY
............................................. 13
5.6 ROOF AND AUXILIARY SPACES
..................................... 13
5.7 TRASH REMOVAL
................................................. 13
6. USE AND UPKEEP OF PREMISES
.......................................... 13
6.1 USE
........................................................... 13
6.2 ILLEGAL AND PROHIBITED USES
................................... 14
6.3 INSURANCE RATING
.............................................. 14
6.4 ALTERATIONS
................................................... 14
(a) Approval Required .........................................
14
(b) Alteration Requirements ...................................
14
(c) Removal of Leasehold Improvements and Tenant's
Property ..................................................
15
(d) Compliance with Laws ......................................
15
(e) Removal of Alterations ....................................
16
6.5 MAINTENANCE BY LANDLORD
....................................... 16
(a) Landlord Repairs and Maintenance ..........................
16
(b) Use of Demised Premises by Landlord .......................
16
6.6 SIGNS AND PUBLICATIONS
........................................ 16
6.7 EXCESSIVE FLOOR LOAD
.......................................... 16
6.8 MOVING AND DELIVERIES
......................................... 17
(a) Prohibitions/Notices ......................................
17
(b) Coordination with Landlord ................................
17
(c) Moving Damages ............................................
17
6.9 RULES AND REGULATIONS
......................................... 17
6.10 TENANT MAINTENANCE AND CONDITION OF DEMISED PREMISES
UPON
SURRENDER .....................................................
17
6.11 TENANT PROPERTY AND LEASEHOLD IMPROVEMENTS
.................... 17
6.12 LANDLORD'S RIGHT TO PERFORM TENANT'S DUTIES
................... 18
6.13 MEDICAL WASTE
................................................. 18
7. ACCESS
..............................................................
18
7.1 LANDLORD'S ACCESS
............................................. 18
7.2 RESTRICTED ACCESS
............................................. 18
7.3 TENANT'S ACCESS
............................................... 18
8. LIABILITY
........................................................... 18
8.1 TENANT'S PROPERTY
............................................. 18
8.2 CRIMINAL ACTS OF THIRD PARTIES
................................ 19
8.3 PUBLIC LIABILITY
.............................................. 19
8.4 CONSTRUCTION ON CONTIGUOUS PROPERTY
........................... 19
8.5 TENANT INSURANCE
.............................................. 19
(a) Liability Insurance .......................................
19
(b) Fire and Casualty Insurance ...............................
19
(c) Increases in Coverage .....................................
19
(d) Policy Requirements .......................................
20
(e) No Limitation of Liability ................................
20
(f) Waiver of Subrogation .....................................
20
(g) Business Interruption .....................................
20
8.6 INCIDENT REPORTS
.............................................. 20
9. DAMAGE
..............................................................
20
9.1 INTENTIONALLY DELETED
......................................... 20
9.2 FIRE OR CASUALTY DAMAGE
....................................... 20
9.3 UNTENANTABILITY
............................................... 21
(a) Restoration Requirements ..................................
21
(b) Casualty Near Expiration of Lease Term ....................
21
(c) Tenant's Right of Termination .............................
21
10. CONDEMNATION
........................................................ 22
10.1 LANDLORD'S RIGHT TO AWARD
..................................... 22
10.2 TENANT'S RIGHT TO FILE CLAIM
.................................. 22
11. BANKRUPTCY
.......................................................... 22
11.1 EVENTS OF BANKRUPTCY
.......................................... 22
11.2 LANDLORD'S REMEDIES
........................................... 22
(a) Termination of Lease.......................................
22
(b) Suit for Possession .......................................
23
(c) Non-Exclusive Remedies ....................................
23
(d) Assumption or Assignment by Trustee .......................
23
(e) Adequate Assurance of Future Performance ..................
23
(f) Failure to Provide Adequate Assurance .....................
23
11.3 GUARANTORS
.................................................... 23
11.4 DAMAGES
....................................................... 23
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12. DEFAULTS AND REMEDIES
............................................... 24
12.1 DEFAULT
....................................................... 24
12.2 REMEDIES
...................................................... 24
12.3 LANDLORD'S RIGHT TO RELET
..................................... 25
12.4 RECOVERY OR DAMAGES
........................................... 25
(a) Quantification of Damages .................................
25
(b) Non-Exclusive Rights ......................................
26
12.5 WAIVER
........................................................ 26
12.6 ANTICIPATORY REPUDIATION
...................................... 26
(a) Repudiation Prior to Commencement Date ....................
26
(b) Repudiation of Any Obligation of Tenant During Lease
Term ......................................................
26
12.7 TENANT ABANDONMENT OF DEMISED PREMISES
........................ 27
(a) Abandonment ...............................................
27
(b) Landlord Right to Enter and to Relet ......................
27
12.8 TENANT'S PROPERTY
............................................. 27
12.9 LEASEHOLD IMPROVEMENTS; TENANT'S PROPERTY
..................... 27
12.10 INJUNCTIVE RELIEF
............................................. 27
12.11 INDEPENDENT COVENANTS
......................................... 28
12.12 WAIVER OF REDEMPTION
.......................................... 28
12.13 ATTORNEYS' FEES
............................................... 28
13. SUBORDINATION
....................................................... 28
13.1 SUBORDINATION
................................................. 28
13.2 ESTOPPEL CERTIFICATES
......................................... 28
13.3 ATTORNMENT
.................................................... 29
13.4 MORTGAGEE RIGHTS
.............................................. 29
(a) Mortgagee Requirements ....................................
29
(b) Notices to Mortgagee ......................................
29
14. TENANT'S HOLDOVER
................................................... 30
14.1 WITH LANDLORD CONSENT
......................................... 30
14.2 WITHOUT LANDLORD CONSENT
...................................... 30
15. SECURITY DEPOSIT
.................................................... 30
16. QUIET ENJOYMENT
..................................................... 31
17. SUCCESSORS
.......................................................... 31
18. WAIVER OF JURY TRIAL AND STATUTE OF LIMITATIONS
..................... 31
19. LIMITATION OF LANDLORD'S LIABILITY NOTICE
........................... 31
19.1 LANDLORD'S CONSENT
............................................ 31
19.2 INDIVIDUAL LIABILITY
.......................................... 31
19.3 NOTICE IN EVENT OF LANDLORD'S DEFAULT
......................... 32
20. AUTHORITY
........................................................... 32
21. TENANT'S RESPONSIBILITY REGARDING HAZARDOUS SUBSTANCES
.............. 32
21.1 HAZARDOUS SUBSTANCES
.......................................... 32
21.2 TENANT'S RESTRICTIONS
......................................... 32
(a) Violations ................................................
32
(b) Use .......................................................
32
21.3 AFFIRMATIVE OBLIGATIONS
....................................... 33
(a) Compliance with Laws ......................................
33
(b) Clean-Up Plans ............................................
33
(c) Information Requests ......................................
33
21.4 TENANT'S INDEMNITY
............................................ 33
21.5 SURVIVAL OF OBLIGATIONS
....................................... 33
22. JOINT AND SEVERAL LIABILITY
......................................... 33
23. DEFINITIONS
......................................................... 34
23.1 PRONOUNS
...................................................... 34
23.2 DEMISED PREMISES
.............................................. 34
23.3 LEASE TERM
.................................................... 34
23.4 TENANT'S PROPERTY
............................................. 34
23.5 LEASEHOLD IMPROVEMENTS
........................................ 34
24. NOTICE TO PARTIES
................................................... 34
24.1 ADDRESSES FOR NOTICES
......................................... 34
24.2 EFFECTIVE DATE OF NOTICE
...................................... 34
25. NOTICE TO MORTGAGEES
................................................ 34
26. SPECIAL PROVISIONS; EXHIBITS; RENOVATION
............................ 34
26.1 INCORPORATION IN LEASE
........................................ 34
26.2 CONFLICTS
..................................................... 34
27. CAPTIONS
............................................................ 35
28. ENTIRE AGREEMENT; MODIFICATION
...................................... 35
29. GOVERNING LAW; SEVERABILITY; RENOVATION
............................. 35
30. BINDING EFFECT OF LEASE
............................................. 35
31. FORCE MAJEURE
....................................................... 35
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32. RECORDATION
......................................................... 35
33. TIME OF ESSENCE
..................................................... 35
34. BROKERS
.............................................................
36
35. RELATIONSHIP OF LANDLORD AND TENANT
................................. 36
36. FINANCIAL STATEMENTS
................................................ 36
37. LENDER'S APPROVAL
................................................... 36
38. COUNTERPARTS
........................................................ 36
39. RENEWAL OPTION
...................................................... 36
40. RIGHT OF FIRST OFFER
................................................ 36
41. REMOVAL OF DATA AND TELECOMMUNICATIONS WIRES
........................ 37
42. EXISTING LEASE
...................................................... 38
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EXHIBITS TO LEASE:
Exhibit A - Floor Plan
Exhibit B - Building Rules and Regulations
Exhibit C - Cleaning Specifications
Exhibit D - Certificate of Commencement
Exhibit E - Intentionally Deleted
Exhibit F - Work Agreement
<PAGE>
This Lease, made this 18th day of May, 2006, between
ELIZABETHEAN COURT
ASSOCIATES III LIMITED PARTNERSHIP, a Maryland limited
partnership (hereinafter
referred to as "Landlord"), and TECHTEAM GLOBAL, INC.
(hereinafter referred to
as "Tenant").
Landlord, for and in consideration of the covenants and
agreements set
forth hereinafter, leases to Tenant, and Tenant leases from
Landlord, the
premises described, for the use set forth and for the term and
at the rent
reserved herein.
1. SPECIFIC PROVISIONS
1.1 PREMISES
(A) DEMISED PREMISES: Suite 450
(B) RENTABLE AREA: Approximately 5,428 square feet, as measured
in
accordance with the provisions of ANSI/BOMA
Z65.1 1996, Standard Method for Measuring Floor
Area in Office Buildings.
(C) COMPLEX: The buildings, improvements and grounds known
as Rock Spring Park, of which the Building is a
part.
(D) BUILDING: The Westmoreland Building
(E) ADDRESS: 6430 Rockledge Drive
Bethesda, Maryland 20817
1.2 LEASE DATES
(A) LEASE TERM: The term of this Lease ("Lease Term") shall
be
seven (7) "Lease Years" (as defined below) and
four (4) months, commencing on the earlier to
occur of July 1, 2006, or the date the
"Leasehold Improvement" (as defined in Exhibit
F) are substantially complete (the earlier to
occur of such dates shall hereinafter be
referred to as the "Commencement Date"), and
expiring on the date which occurs seven (7)
Lease Years and four (4) months thereafter,
both dates inclusive, unless sooner terminated
in accordance with the provisions of this
Lease.
(B) BASE YEAR: Base Year shall be defined as the period
commencing on January 1, 2006 and ending on
December 31, 2006.
(C) FISCAL YEAR: Fiscal Year shall be defined as each annual
period, or portion thereof, included within the
Lease Term commencing on January 1, 2006 and
ending on December 31, 2006.
(D) LEASE YEAR: The first Lease Year shall commence on the
Commencement Date and shall terminate at 11:59
p.m. on the last day of the twelfth full
calendar month thereafter. All subsequent Lease
Years shall be for twelve calendar months,
except that the last Lease Year shall terminate
on the date this Lease expires or is terminated
in accordance with the provisions hereof.
(E) CALENDAR YEAR: Calendar Year (sometimes appearing as
`calendar
year') shall be defined as each annual period
from January 1 through the immediately
following December 31.
Page 1
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1.3 BASE ANNUAL RENT
(A) INITIAL BASE ANNUAL RENT: One Hundred Forty-Nine Thousand
Two
Hundred Seventy and 00/100 Dollars ($149,270.00), payable in
equal monthly
installments of Twelve Thousand Four Hundred Thirty-Nine and
17/100 Dollars
($$12,439.17), hereinafter referred to as "base monthly rent",
for the first
Lease Year.
(B) PERCENTAGE FACTOR: Three percent (3%).
(C) Provided Tenant is not in default under the Lease, Landlord
agrees
to abate and forgive the first four (4) full monthly
installments of base
monthly rent that are payable under the Lease.
1.4 INTENTIONALLY DELETED
1.5 ADDITIONAL RENT
Additional Rent shall be payable by Tenant in accordance with
Section
2, commencing on the first day of the second (2nd) Lease Year,
consisting of
each of the following:
(A) INCREASES IN REAL ESTATE TAXES: Tenant's pro rata share,
equal to
4.27% of the amount of Real Estate Taxes in excess of the Base
Year Real Estate
Taxes.
(B) INCREASES IN OPERATING EXPENSES: Tenant's pro rata share,
equal to
4.27% of the amount of Operating Expenses in excess of the Base
Year Operating
Expenses.
1.6 SECURITY DEPOSIT
$12,439.17
1.7 STANDARD BUILDING OPERATING DAYS AND HOURS
8:00 A.M. to 6:00 P.M. Monday - Friday
8:00 A.M. to 1:00 P.M. Saturday
1.8 USE OF PREMISES
General Office Use
1.9 ADDRESSES
(A) ADDRESS FOR NOTICES TO TENANT
Tech Team Global, Inc.
6430 Rockledge Drive
Suite 450
Bethesda, Maryland 20817
(B) ADDRESSES FOR NOTICES TO LANDLORD
Elizabethean Court Associates III Limited Partnership
c/o Charles E. Smith Commercial Realty
2345 Crystal Drive
Arlington, VA 22202
With a copy to:
Elizabethean Court Associates III Limited Partnership
c/o Rock Spring Properties
6500 Rock Spring Drive, Suite 600
Bethesda, Maryland 20817
(C) ADDRESS FOR PAYMENT OF RENT
Elizabethean Court Associates III Limited Partnership
c/o Charles E Smith Commercial Realty
Department Number 529
Washington, DC 20073-0529
<PAGE>
1.10 SPECIAL PROVISIONS
Section 39 Renewal Option
Section 40 Right of First Offer
Section 41 Removal of Data and Telecommunications Wires
Section 42 Existing Lease
1.11 EXHIBITS TO LEASE
Exhibit A - Floor Plan
Exhibit B - Building Rules and Regulations
Exhibit C - Cleaning Specifications
Exhibit D - Certificate of Commencement
Exhibit E - Intentionally Deleted
Exhibit F - Work Agreement
IN WITNESS WHEREOF, Landlord has caused this Lease, composed of
Specific
Provisions, General Provisions, Special Provisions and Exhibits,
to be signed
and sealed by one or more of its Officers, General Partners,
Trustees, or
Agents, and Tenant has caused this Lease, as described above, to
be signed in
its corporate name by its duly authorized officer and its
corporate seal to be
hereto affixed and duly attested by its Secretary.
LANDLORD:
WITNESS: ELIZABETHEAN COURT ASSOCIATES III
LIMITED PARTNERSHIP, a Maryland limited
partnership
By: /s/ Latissa Bell
--------------------------------- By: WESTMORELAND BUILDING
CORPORATION,
General Partner
ATTEST: By: /s/ Charles A. Camalier
------------------------------------
Name: Charles A. Camalier
/s/ Michael A. Sosin Title:
-------------------------------------
---------------------------------
TENANT:
TECHTEAM GLOBAL, INC.
/s/ LW Granger
----------------------------------------
Name: LW Granger
Title: COO
GENERAL PROVISIONS
2. RENT
2.1 BASE ANNUAL RENT.
(A) PAYMENT OF BASE ANNUAL RENT. Tenant shall pay the first
monthly
installment of Base Annual Rent specified in Section 1.3 upon
execution of this
Lease. After the Commencement Date, Tenant shall pay the
remaining monthly
installments of Base Annual Rent in advance without deduction,
demand, right of
set-off or recoupment, in immediately available funds, on the
first day of each
and every calendar month throughout the entire Lease Term
specified in Section
1.2(a), to Charles E. Smith Real Estate Services L.P.
("Landlord's Agent"), by
electronic funds transfer if requested by Landlord, or otherwise
at the address
specified in Section 1.9(b), or to such other person or at such
other place as
Landlord may hereafter designate in writing.
Page 3
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(B) ESCALATION OF BASE ANNUAL RENT. Commencing on the first
anniversary date of the Commencement Date and continuing on each
subsequent
anniversary thereof, the Base Annual Rent shall be increased by
the Percentage
Factor stipulated in Section 1.3(b) times the Base Annual Rent
payable for the
preceding Lease Year (all of which shall be calculated without
giving effect to
any waiver of rent or rent credit otherwise provided to Tenant).
The escalated
Base Annual Rent so determined shall be the "Base Annual Rent"
for all purposes
of this Lease, including the calculation of the increase in Base
Annual Rent for
the subsequent Lease Year.
2.2 ADDITIONAL RENT. Commencing on the date set forth in Section
1.5 and
continuing throughout the Lease Term, Tenant shall pay as
Additional Rent
Tenant's pro rata share of any (i) Real Estate Taxes and (ii)
Operating
Expenses, in excess of the (i) Real Estate Taxes and (ii)
Operating Expenses,
respectively, payable by Landlord in the Base Year. Additional
Rent shall be
determined as follows:
(A) REAL ESTATE TAXES. Tenant shall pay Tenant's pro rata share,
as
defined in Section 1.5(a), of any Real Estate Taxes paid during
each Fiscal Year
falling entirely or partly within the Lease Term, in excess of
the amount of
Real Estate Taxes paid during the Base Year.
(i) The term "Real Estate Taxes" shall mean (1) all taxes,
assessments (including all assessments for public improvements
or benefits,
whether or not commenced or completed prior to the date hereof
and whether or
not to be completed within the Lease Term), water, sewer,
transportation or
other excises, levies, license fees, permit fees, impact fees,
inspection fees,
and other authorization fees and other similar charges, in each
case whether
general or special, levied or assessed, ordinary or
extraordinary, foreseen or
unforeseen, of every character (including all interest and
penalties thereon),
which at any time during or in respect of the Lease Term, may,
by any
governmental or taxing authority, be assessed, levied,
confirmed, or imposed on
or in respect of, or be a lien upon, the land and the building
improvements of
which the Demised Premises are a part, and on any land and/or
improvements now
or hereafter owned by Landlord and/or others that provide the
Complex or
locality or the Demised Premises with other services, programs,
amenities or
common facilities, together with (2) any other tax now or
hereafter imposed on
real estate or on owners of real estate generally, including
taxes imposed on
leasehold improvements which are assessed against the Landlord
and taxes upon or
with respect to any activity conducted on the land and
improvements of which the
Demised Premises are a part, upon this Lease or any rent
reserved or payable
hereunder, upon the revenues or receipts from the land and
improvements of which
the Demised Premises are a part, or upon the use or occupancy
thereof, and (3)
to the extent the following taxes are in lieu of or a substitute
for any other
taxes which are, or would be, payable by Landlord as Real Estate
Taxes, (a) any
income, excess profits, or other taxes of Tenant determined on
the basis of its
income, receipts, or revenues, (b) any estate, inheritance,
succession, gift,
capital levy, or similar tax of Tenant, (c) any franchise,
capital stock, or
similar taxes of Landlord and (d) any income, excess profits, or
other taxes of
Landlord determined on the basis of its income or revenue
derived pursuant to
this Lease. Real Estate Taxes shall also include all costs
incurred by Landlord
in contesting the validity or amount of any such taxes.
(ii) If Real Estate Taxes paid during the Base Year are
subsequently reduced by any application or proceeding brought by
or on behalf of
Landlord for reduction in the amount of Real Estate Taxes
payable by Landlord,
the Real Estate Taxes deemed to have been paid during the Base
Year shall be
decreased and Landlord may promptly bill Tenant for the
Additional Rent not
previously paid by Tenant for any Fiscal Year during the Lease
Term, based upon
the reduced amount of Real Estate Taxes deemed paid the Base
Year.
(iii) Intentionally Deleted.
(iv) In addition to the pro rata share of any increase in
Real
Estate Taxes to be paid by Tenant pursuant to Sections
2.2(a)(i), and (ii)
above, Tenant shall reimburse Landlord upon demand for any and
all taxes
required to be paid by Landlord upon, measured by, or reasonably
attributable to
the cost or value of Tenant's Property or by the cost or value
of any Leasehold
Improvements made in or to the Demised Premises by or for
Tenant, regardless of
whether title to such Leasehold Improvements shall be in Tenant
or Landlord, and
for all taxes required to be paid by Landlord upon, measured by,
or reasonably
attributable to or with respect to the possession, leasing,
operation,
management, maintenance, alteration, repair, use or occupancy by
Tenant of the
Demised Premises or any portion thereof to the extent such taxes
are not
included in Real Estate Taxes.
(B) OPERATING EXPENSES. Tenant shall pay Tenant's pro rata
share, as
indicated in Section 1.5(b), of any Operating Expenses paid
during each Fiscal
Year falling entirely or partly within the Lease Term, in excess
of the
Operating Expenses paid during the Base Year.
Page 4
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(i) The term "Operating Expenses" shall mean any and all
expenses
of Landlord in connection with the servicing, insuring,
operation, maintenance,
replacement and repair of the Building and related interior and
exterior
appurtenances of which the Demised Premises are a part, or for
health, welfare
or safety; expenses, if any, of Landlord either alone or in
conjunction with
others to maintain common facilities, amenities, programs and
services required
or approved by jurisdictional authorities for the Building, the
building site,
the Complex or the locality in which the Complex is situated;
transportation
district fees, parking district fees, traffic mitigation fees,
and the cost of
other amenities required by law; costs and fees charged and/or
assessed in
connection with any improvement district that is applicable to
the Building; the
cost of any services to achieve a reduction of, or to minimize
the increase in,
Operating Expenses or Real Estate Taxes; management fees; vault
rentals;
business license, personal property and other taxes; capital
expenditures and
other costs of Landlord for equipment or systems installed to
reduce or minimize
increases in Operating Expenses or to comply with any
governmental or
quasi-governmental ordinance or requirement (at the option of
Landlord, such
costs, with interest, may be recovered from Tenant in
installments simultaneous
with the payment of monthly installments of Base Annual Rent in
accordance with
a cost repayment schedule based on the useful life of such
equipment or
systems). At the sole discretion of Landlord, certain of these
expenses may be
equitably apportioned among two or more buildings in the
Complex.
Notwithstanding anything herein to the contrary, the preceding
list is for
definitional purposes only and shall not impose any obligation
upon Landlord to
incur such expenses or provide such services.
(ii) The term "Operating Expenses" shall not include any of
the
following, except to the extent that such costs and expenses are
specifically
included in Operating Expenses as described in Section 2.2(b)(i)
above: capital
expenditures and depreciation of the Building; painting and
decorating of tenant
space; interest and amortization of mortgages; ground rent;
compensation paid to
officers or executives of Landlord; taxes as measured by the net
income of
Landlord from the operation of the Building; insurance
reimbursements of
Operating Expenses to Landlord; Real Estate Taxes; brokerage
commissions; and
marketing expenses. Notwithstanding the foregoing, the term
"Operating Expenses"
shall not include:
(1) all costs and expenses, including any labor costs,
charges, repairs, improvements or expenses directly or
indirectly related to the
ownership or operation of the rentable area of any parking
garage in the
Building;
(2) wages, salaries, fees and fringe benefits paid to
employees of any property management organization being paid a
fee by Landlord
for its services or administrative and executive personnel or
officers,
partners, shareholders, or directors of Landlord or of
Landlord's managing agent
above the grade of property manager;
(3) costs of decorating, redecorating, or special cleaning
or other services not provided on a regular basis to tenants of
the Building;
(4) except as provided above, the cost of alterations,
renovations or improvements for rentable space in the
Building;
(5) except as provided above, loan payments, charges for
depreciation of the Building or equipment and any interest or
other financing
charge or refinancing costs;
(6) all costs relating to activities for the solicitation
and execution of leases of space in the Building, including
finder's fees,
computer advertising charges, legal fees, real estate brokers'
commissions,
expenses, fees, and advertising, moving expenses, design fees,
rental
concessions, rental credits, tenant improvement allowances, and
lease
assumptions;
(7) the cost of any repair made by Landlord because of any
fire or other casualty or the total or partial destruction or
condemnation of
the Building or any portion of the Building to the extent
Landlord receives
compensation therefor through insurance or condemnation
proceeds;
(8) any cost for which Landlord is reimbursed (but only to
the extent of the actual reimbursement) by insurance proceeds,
warranties,
service contracts or condemnation proceeds;
(9) any operating expense representing an amount paid to a
related corporation, entity, or person which is in excess of the
amount which
would be paid in the absence of such relationship; or any
amounts paid to any
person, firm or corporation related to or otherwise affiliated
with Landlord or
any general partner, officer, director or shareholder of
Landlord or any of the
foregoing, to the extent the same exceeds arms-length
competitive prices paid in
Washington, D.C. for similar services or goods provided;
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(10) the cost of overtime to Landlord in curing its
defaults;
(11) ground rent;
(12) costs and expenses incurred in connection with any
transfer of an interest in the Building or the land;
(13) reserves for repairs, maintenance and replacements;
(14) costs relating to maintaining Landlord's existence,
either as a corporation, partnership or other entity, such as
trustee's fees,
accounting fees to prepare the partnership's tax returns, annual
fees,
partnership organization or administration expenses, deed
recordation expenses,
legal and accounting fees (other than with respect to Building
operations);
(15) interest or penalties arising by reason of Landlord's
failure to timely pay any Real Estate Taxes or Operating
Expenses;
(16) acquisition of "Fine Art";
(17) legal fees incurred in the negotiation of leases with
other Building tenants or in litigation with other Building
tenants;
(18) costs or expenses incurred in connection with any
bankruptcy proceedings; and
(19) mortgage refinancing costs, including transfer and
recordation taxes and fees, attorneys' fees, title insurance
premiums, and
recording costs.
(iii) In the event that the Building and all land and
improvements upon which Operating Expenses are calculated or may
be calculated
pursuant to Section 2.2(b)(i) above were not fully complete and
operational, and
at least ninety-five percent (95%) occupied during any fiscal
year, including
the Base Year, or if any tenant is separately paying for
services or utilities
furnished to its premises or is provided with fewer services
than customarily
provided for tenants of general office space in the Building,
then Operating
Expenses paid during such Fiscal Year or portion thereof
(including the Base
Year) shall be adjusted, to include all additional expenses, as
estimated by
Landlord applying commercially reasonable accounting procedures,
so that
Tenant's share of Operating Expenses is the amount which Tenant
would bear if
the Building were ninety-five percent (95%) occupied by tenants
and all land and
improvements upon which Operating Expenses are calculated or may
be calculated
pursuant to Section 2.2(b)(i) above were fully complete and
operational during
the entire such Fiscal Year using services and utilities
customarily provided
for general office use.
2.3 ADDITIONAL RENT ESTIMATES AND ADJUSTMENTS.
(A) INITIAL ADDITIONAL RENT ADJUSTMENTS. Landlord at its option
may
submit to Tenant prior to the date set forth in Section 1.5 a
statement of
Landlord's reasonable estimate of the increases described in
Sections 2.2(a) and
(b) above, together with the amount of Tenant's Additional Rent
which is
estimated to result from such increases, in which event Tenant
shall pay such
estimated Additional Rent to Landlord in equal monthly
installments beginning on
the date set forth in Section 1.5, on the dates and in the
manner required for
the payment of Tenant's monthly installments of Base Annual
Rent.
(B) ANNUAL BUDGET. Subsequent to the Calendar Year in which
Tenant's
obligation to pay each component of Additional Rent pursuant to
Section 2.2
commences, Tenant shall thereafter pay each such component of
Additional Rent in
twelve equal monthly installments based upon Landlord's
estimates. In order to
provide for the current monthly payment of each component of
Additional Rent
described herein, Landlord shall submit to Tenant a statement of
Landlord's
reasonable estimate of the increases described in Section 2.2
above, together
with the amount of Tenant's Additional Rent which is estimated
to result from
such increases. Tenant agrees to pay each such estimated
component of Additional
Rent to Landlord in twelve equal installments beginning on
January 1, on the
dates and in the manner required for the payment of Tenant's
monthly
installments of Base Annual Rent.
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<PAGE>
(C) ADDITIONAL RENT RECONCILIATIONS. After the end of each
Calendar
Year, Landlord will submit to Tenant a statement of the actual
increases in Real
Estate Taxes and Operating Expenses paid during the Fiscal Year
which ended
during such Calendar Year over the Real Estate Taxes and
Operating Expenses
which were paid during the Base Year, respectively. Such
statement shall also
indicate the amount of Tenant's excess payment or underpayment
of Additional
Rent based on Landlord's estimate described in Sections 2.3(a)
and 2.3(b). If
Additional Rent paid by Tenant during the preceding Calendar
Year shall be in
excess of, or less than, the aggregate of its share of the
actual increase in
Real Estate Taxes and Operating Expenses, Landlord and Tenant
agree to make the
appropriate adjustment following the submission of Landlord's
statement, Tenant
shall either pay any Additional Rent due with the installment of
Base Annual
Rent due for the month following submission of Landlord's
statement, or pay any
Additional Rent due within thirty (30) days if the Lease Term
has expired or has
otherwise been terminated. Tenant shall deduct its excess
payment, if any, from
the installment of Base Annual Rent due for the month following
submission of
Landlord's statement, or following the expiration or earlier
termination of the
Lease Term, Tenant shall be reimbursed for any excess payments
made, less any
amounts then due Landlord under this Lease, upon demand.
(D) VERIFICATION OF ADDITIONAL RENT. Unless Tenant asserts
specific
errors within forty-five (45) days after Landlord has' submitted
the audited
financial statement for a Fiscal Year to Tenant, Tenant shall
have no right. to
contest the amount of Tenant's pro rata share of Real Estate
Taxes and/or
Operating Expenses or the statement submitted by Landlord. No
such assertion of
error by Tenant shall extend the time for payments as set forth
in Sections 2.2
and 2.3 above. If Tenant has given a timely assertion of error
and if it shall
be determined by Landlord there is an error in Landlord's
statement, Tenant
shall be entitled to a credit for any overpayment, which shall
be applied to any
sums then due Landlord under this Lease and then to the next
installment(s) of
Additional Rent until fully credited for the overpayment, or
refunded if Tenant
has vacated the Demised Premises, or Tenant shall be billed for
any underpayment
and shall remit any amount owing to Landlord within ten (10)
business days of
Tenant's receipt of such statement.
(E) FISCAL YEAR. Landlord shall have the right to change its
Fiscal
Year from time to time. If Landlord changes its Fiscal Year
during the Lease
Term, thereby creating a Fiscal Year with fewer than twelve (12)
months
(hereinafter "short year"), the Real Estate Taxes and Operating
Expenses for the
short year shall be determined on an annualized basis by taking
the monthly
average of the actual Real Estate Taxes and Operating Expenses,
respectively,
and multiplying each by twelve. The amounts determined by this
method shall be
used in determining the increases described in Sections 2.2(a)
and 2.2(b) for
the short year.
(F) AUDIT. Landlord shall, upon Tenant's written request which
shall
be made no later than ninety (90) days after receipt of
Landlord's detailed
statement of the actual increase incurred in Operating Expenses
pursuant to
Sections 2.3(c), permit Tenant's certified public accountant to
inspect such of
its records as are reasonably necessary to certify that the
calculation of
increases in Operating Expenses set forth in such statement was
made in
accordance with the applicable provisions of this Lease;
provided, however, that
Tenant shall not be entitled to delay any payment under this
Lease during the
pendency of any such inspection. Despite the foregoing, as an
express condition
of Tenant's certified public accountant conducting such
inspection, Tenant and
Tenant's certified public accountant shall certify in writing to
Landlord that
such certified public accountant (i) is being compensated by
Tenant on an hourly
basis to conduct such audit, and (ii) is not being compensated,
in whole or in
part, on a contingency basis or a percentage of savings basis.
Tenant shall bear
all costs of any such inspection. Tenant shall keep the results
of any such
audit confidential, except to the extent (x) reasonably required
to be revealed
in any legal action between Landlord and Tenant relating to
operating expenses,
or (y) as may be required by law. Despite the foregoing, in the
event it is
determined that Landlord has overstated the (i) increase in
Operating Expenses
that is payable by Tenant during any calendar year, Landlord
shall, within
thirty (30) days thereafter, refund such overpayment to Tenant,
and (ii)
Operating Expenses of the Building during any calendar year by
more than five
percent (5%), Landlord shall reimburse Tenant for its actual
out-of-pocket cost
of conducting such audit, provided in no event shall such
reimbursement exceed
the sum of One Thousand Five Hundred and 001100 Dollars
($1,500.00). Tenant
shall pay Landlord, on demand and as Additional Rent, Landlord's
invoice for:
(a) the photocopying of documents; (b) the retrieval of
documents from
Landlord's storage archives; (c) the time spent by Landlord's
employees in
supervising, coordinating, and cooperating with the inspection;
and (d) any
other expenses of Landlord incidental to the inspection.
2.4 RENT ADJUSTMENT LIMIT. Notwithstanding any deductions from
or
adjustments to Base Annual Rent and Additional Rent as provided
for above, in no
event shall the total monthly installment of Base Annual Rent
and Additional
Rent to be paid by Tenant in any month during the Lease Term or
any extension
thereof be less than the monthly installment of Base Annual Rent
stipulated in
Section 1.3, except as required as the result of the Landlord's
application of a
credit due to Tenant pursuant to Section 2.3(c).
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<PAGE>
2.5 SURVIVAL OF RENT OBLIGATION. The obligation of Tenant with
respect to
payment of Base Annual Rent, as defined in Section 2.1, and
Additional Rent as
defined in Sections 2.2 and 2.10, together with all other sums
due hereunder,
accrued and unpaid during the Lease Term, shall survive the
expiration or
earlier termination of this Lease.
2.6 PRO RATA SHARE. Tenant's "pro rata share" stipulated in
Sections 1.5(a)
and 1.5(b) represent the ratio that the total rentable area of
the Demised
Premises bears to the total rentable area of office space
contained in the
Building. In the event of any dispute as to the Tenant's "pro
rata share",
certification of the "pro rata share" by Landlord's architect
(which
certification shall include the architect's methodology and
measurement) shall
be binding on both Landlord and Tenant. Tenant's "pro rata
share" shall be
modified during the Lease Term in the event the rentable area of
the Building is
modified.
2.7 PRORATED RENT. Any Base Annual Rent or Additional Rent
payable pursuant
to Sections 2.1 and 2.2 for one or more full calendar months in
a partial Fiscal
Year at the beginning or end of the Lease Term shall be prorated
based upon the
number of months in the Fiscal Year. Any Base Annual Rent or
Additional Rent
payable pursuant to Sections 2.1 and 2.2 for a portion of a
calendar month shall
be prorated based upon the number of days in the applicable
calendar month.
2.8 APPLICATION OF RENT. No payment by Tenant or receipt by
Landlord of
lesser amounts of Base Annual Rent or Additional Rent than those
required by
this Lease shall be deemed to be other than on account of the
earliest unpaid
stipulated Base Annual Rent or Additional Rent. No endorsement
or statement on
any check or any letter accompanying any check or payment as
Base Annual Rent or
Additional Rent shall be deemed an accord and satisfaction, and
Landlord may
accept such check or payment without prejudice to Landlord's
right to recover
the balance of such Base Annual Rent and Additional Rent or
pursue any other
remedy provided in this Lease. Any credit due to Tenant
hereunder by reason of
overpayment of Base Annual Rent or Additional Rent shall first
be applied to any
Base Annual Rent, Additional Rent or other sums owed to Landlord
by Tenant as
set forth elsewhere in this Lease or if Tenant shall be in
default when said
credit shall be owed.
2.9 LATE-PAYMENT FEE AND INTEREST CHARGE. In the event any
installment of
Base Annual Rent or Additional Rent due hereunder is not paid
within five (5)
calendar days after it is due, then Tenant shall also pay to
Landlord as
Additional Rent (a) a late payment fee equal to five percent (5
%) of the
payment as liquidated damages for the additional administrative
costs incurred
by Landlord as a result of such late payments, plus (b) an
interest charge
calculated at the rate of fifteen percent (15%) per annum on the
delinquent
payment from the date due until paid. Despite the foregoing,
Landlord shall
waive such interest and late charge on the first (1st) occasion
during any
twelve (12) month period in which Tenant does not timely pay
Base Annual Rent or
Additional Rent, provided that Tenant pays such installment of
Base Annual Rent
or Additional Rent to Landlord within five (5) days after the
date Tenant
receives notice that such amount is past due. If Landlord
receives from Tenant
(i) a returned or "bounced" check, Tenant shall pay Landlord a
fee of Fifty
Dollars ($50.00) to reimburse Landlord for its administrative
costs, and (ii)
two (2) or more returned or "bounced" checks in any twelve (12)
month period,
Landlord may require all future rent to be paid by cashier's or
certified check.
2.10 OTHER TENANT COSTS AND EXPENSES,. All costs and expenses
which Tenant
assumes or agrees to pay to Landlord pursuant to this Lease,
including without
limitation costs of construction and alterations, shall be
deemed Additional
Rent, whether or not the same is specifically designated herein
as Additional
Rent, and, in the event of nonpayment thereof, Landlord shall
have all the
rights and remedies herein provided for the nonpayment of Base
Annual Rent and
Additional Rent payable pursuant to Sections 2.1 and 2.2,
including assessment
of late payment fees and interest charges.
3. CONSTRUCTION OF PREMISES AND OCCUPANCY
3.1 AS-IS. Landlord hereby leases to Tenant, and Tenant hereby
leases from
Landlord, the Demised Premises in its as-is condition.
3.2 POSSESSION. If Landlord shall be unable to tender possession
of the
Demised Premises on the Commencement Date set forth in Section
1.2 by reason of:
(a) the fact that the Demised Premises are located in a building
being
constructed and which has not been sufficiently completed to
make the Demised
Premises ready for occupancy; (b) the holding over or retention
of possession of
any tenant or occupant; (c) the Construction Improvements have
not been
substantially completed; or (d) for any other reason beyond the
control of
Landlord, Landlord shall not be subject to any liability for the
failure to
tender possession on said date. No such failure to tender
possession on the
Commencement Date set forth in Section 1.2 shall in any
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<PAGE>
other respect affect the validity of this Lease or the
obligations of Tenant
hereunder, nor shall same be construed to extend the termination
date of this
Lease set forth in Section 1.2. In the event the actual
Commencement Date does
not occur within one (1) year of the date this Lease is fully
executed and
delivered by Landlord and Tenant, then Landlord, without further
liability to
Tenant, shall have the right to terminate this Lease upon thirty
(30) days prior
written notice to Tenant. If permission is given to Tenant to
enter into
possession of the Demised Premises prior to the date specified
as the
Commencement Date, Tenant covenants and agrees that such
occupancy shall be
deemed to be subject to all of the terms, covenants, conditions
and provisions
of this Lease, and that Tenant shall be responsible for payment
of Base Annual
Rent, in advance, at the rate of 1/30th of the base monthly rent
set forth in
Section 1.3 for each day of such occupancy prior to the
Commencement Date, and
Additional Rent set forth in Section 1.5 shall begin to accrue
on such date of
possession. Within fifteen (15) days after the Commencement
Date, Tenant shall
execute the Certificate of Commencement in the form attached as
Exhibit D
hereto.
3.3 PERMITS. Tenant shall be responsible for obtaining at its
sole cost and
expense the construction permits for any work or improvements
constructed by
Tenant or its contractors in the Demised Premises. Tenant shall
be responsible
for obtaining at its own cost and expense, any required
occupancy permit. Tenant
shall be responsible for obtaining any other permits or licenses
necessary for
its lawful occupancy of the Demised Premises.
4. SUBLETTING AND ASSIGNMENT
4.1 CONSENT. Tenant will not sublet the Demised Premises or any
part
thereof or transfer possession or occupancy thereof to any
person, firm or
entity, or transfer or assign this Lease, and no subletting or
assignment hereof
shall be effected by operation of law or in any other manner,
such as the
transfer of all or substantially all of Tenant's assets or
voting control of
Tenant's stock, partnership interest, membership interests or
other equity. If
Tenant is a partnership, then any sale, conveyance, or other
transfer of, or the
grant of a security interest in, any partnership interest, or
any dissolution of
Tenant, or any act which will result in a potential future
change in control, or
a withdrawal or change, whether voluntary, involuntary or by
operation of law,
of a partner or partners owning a controlling interest in
Tenant, shall be
deemed a voluntary assignment of this Lease. If Tenant is a
corporation, then
any sale, conveyance, or other transfer of, or grant of a
security interest in
any controlling shares of stock, dissolution, merger,
consolidation or other
reorganization of Tenant, or any sale or transfer of a
controlling interest of
its capital stock, or any act which will result in a potential
future change in
control, or a withdrawal or change, whether voluntary,
involuntary or by
operation of law, of a shareholder or shareholders owning a
controlling interest
in Tenant, shall be deemed a voluntary assignment of this Lease.
If Tenant is a
limited liability company or other entity, then any sale,
conveyance or other
transfer of, or grant of a security interest in any controlling
membership
interests, or any act which will result in a potential future
change in the
control, or a withdrawal of change, whether voluntary,
involuntary or by
operation of law, of a member or members owning a controlling
interest in
Tenant, shall be deemed a voluntary assignment of the Lease. All
permitted
sublettings and assignments of the Demised Premises and this
Lease shall be
subject to the provisions of this Lease, including but not
limited to Section
4.3. No assignment shall be made except for the entire Demised
Premises and
Tenant further agrees that any permitted assignment of this
Lease or subletting
of the Demised Premises may be conditioned upon payment by
Tenant of
consideration and the delivery of such additional guarantees,
collateral and/or
other security as determined by Landlord. Any subletting or
assignment consented
to by Landlord, to be effective, shall be evidenced in writing
in a form
acceptable to Landlord. Consent by Landlord to any assignment or
subletting by
Tenant shall not operate as a waiver of the necessity for
obtaining Landlord's
consent in writing to any subsequent assignment or subletting.
The collection or
acceptance of rent from any such assignee, subtenant or other
occupant shall not
constitute a waiver of or release of Tenant from any covenant or
obligation
contained in this Lease, nor shall such acceptance of rent be
deemed to create
any right to the Demised Premises in such assignee, subtenant or
other occupant,
nor any legal or other relationship between the Landlord and any
such assignee,
subtenant or other occupant. Landlord's acceptance of any name
for listing on
the Building directory shall not be deemed, nor will it
substitute for,
Landlord's consent as required by this Lease, to each sublease,
assignment and
any other occupancy of the Demised Premises. In the event that
Tenant defaults
under this Lease in the payment of Base Annual Rent or
Additional Rent, Tenant
hereby assigns to Landlord the rent and other sums due from any
subtenant,
assignee or other occupant and hereby authorizes each such
subtenant, assignee
and other occupant to pay said rent and other sums directly to
Landlord upon
demand. Any transfer of this Lease or the Demised Premises, or
any transfer of
any interest in Tenant restricted pursuant to this Section 4.1,
without the
prior written consent of Landlord pursuant to this Section 4.1
shall be void. By
taking a transfer of this Lease by assignment, transfer of
interest in Tenant,
or by any other manner described in this Section 4.1, or
otherwise with
Landlord's consent to the transfer, the transferee shall be
bound by all
provisions of this Lease, which shall be binding upon the
transferee as if the
transferee had signed this Lease in lieu of the original Tenant
named herein.
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<PAGE>
4.2 RECAPTURE OF PREMISES. In the event Tenant desires to sublet
the
Demised Premises or assign this Lease or effect the transfer of
any interest in
this Lease or in Tenant restricted pursuant to Section 4.1,
Tenant shall give to
Landlord written notice of Tenant's intended subtenant, assignee
or transferee
in order to secure Landlord's written consent in accordance with
Section 4.1.
Within ninety (90) days of receipt of said notice, Landlord
shall have the
right, at its option: (i) to terminate this Lease if Tenant's
notice states the
Tenant's desire to assign this Lease or sublet more than fifty
percent (50%) of
the Demised Premises or effect a restricted transfer of an
interest in this
Lease or in Tenant and such termination shall be effective on
the proposed
effective date of the assignment or sublease for which Tenant
requested consent;
or (ii) if Tenant's notice states the Tenant's desire to sublet
a portion of the
Demised Premises, to terminate this Lease and simultaneously to
enter into a new
lease with Tenant for that portion of the Demised Premises
Tenant may desire to
retain upon the same terms, covenants and conditions as then set
forth in this
Lease, prorated based upon the space retained by Tenant. If
Landlord exercises
its right to terminate this Lease pursuant to clauses (i) or
(ii) above, Tenant
agrees that Landlord shall have access to all or any portion of
the Demised
Premises sixty (60) days prior to the effective termination date
for remodeling
or redecorating purposes. Tenant shall promptly execute such
lease amendments
and other documents as Landlord may reasonably require to
effectuate the terms
and intent of this Section 4.2.
4.3 EXCESS RENT AND OTHER CONSIDERATION. If any sublease or
assignment
(whether by operation of law or otherwise, including without
limitation an
assignment pursuant to the provisions of the Bankruptcy Code or
any other
Insolvency Law) provides that the subtenant or assignee
thereunder is to pay any
amount in excess of the rental and other charges due under this
Lease, then
whether such excess be in the form of an increased monthly or
annual rental, a
lump sum payment, payment for the sale, transfer or lease of
Tenant's fixtures,
leasehold improvements, furniture and other personal property,
or any other form
(and if the subleased or assigned space does not constitute the
entire Demised
Premises, the existence of such excess shall be determined on a
pro-rata basis),
Tenant shall pay to Landlord fifty percent (50%) of any "Profit"
(as defined
below) applicable to the sublease or assignment, which amount
shall be paid by
Tenant to Landlord as additional rent upon such terms as shall
be specified by
Landlord and in no event later than ten (10) days after any
receipt thereof by
Tenant. "Profit" shall be defined as the difference between (i)
any and all
consideration received by Tenant in the aggregate from any
assignment of the
Lease and/or subletting of the Demised Premises, and (ii) the
sum of (A) the
rent and charges due to Landlord from Tenant under the terms of
this Lease (and
if the subleased or assigned space does not constitute the
entire Demised
Premises, the rent and charges payable by Tenant shall be
determined on a
pro-rata basis), (B) Tenant=s reasonable attorneys= fees and
brokerage costs in
connection with such assignment or subletting that are paid to a
third party
that is not related to or affiliated with Tenant, (C) Tenant=s
actual
out-of-pocket cost of performing alterations to the Demised
Premises in
connection with such assignment or subletting, and (D) the
actual amount of
improvement allowance that is paid in connection with such
assignment or
subletting. Acceptance by Landlord of any payments due under
this Section shall
not be deemed to constitute approval by Landlord of any sublease
or assignment,
nor shall such acceptance waive any rights of Landlord
hereunder. Landlord shall
have the right to inspect and audit Tenant's books and records
relating to any
sublease or assignment.
4.4 TENANT LIABILITY. In the event of any subletting of the
Demised
Premises or assignment of this Lease by Tenant or transfer of an
interest in
this Lease or in Tenant, Tenant shall remain liable to Landlord
for payment of
the Base Annual Rent and Additional Rent stipulated herein and
all other
covenants and conditions contained herein. No subletting of the
Demised Premises
or assignment of this Lease or transfer of an interest in this
Lease or in
Tenant shall operate to release, discharge or otherwise affect
the liability of
any guarantors, co-signers or other parties liable to Landlord
pursuant to the
terms of any guaranty or otherwise for the obligations of Tenant
under this
Lease.
4.5 REASONABLE STANDARDS OF CONSENT. Tenant acknowledges that
Landlord, in
considering whether to grant or withhold consent required of
Landlord pursuant
to this Section 4, shall be entitled to apply any or all of the
following
criteria:
(a) The financial strength of proposed
subtenant/assignee/transferee
must be acceptable to Landlord in Landlord's reasonable
discretion based on
adequate current and historical financial information given by
Tenant. Landlord
shall be entitled to receive, and Tenant shall deliver or cause
others to
deliver, such guarantees, collateral and other security as
Landlord shall
request in conjunction with any prospective sublease, assignment
or other
transfer. Failure to provide such financial information,
guarantees, collateral
and other security shall be grounds for Landlord to, withhold or
deny consent;
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<PAGE>
(b) The proposed subtenant/assignee/transferee must have a
good
reputation in the business community and must be
credit-worthy;
(c) Use of the Demised Premises by the proposed
subtenant/assignee/transferee must be identical to the use
permitted by this
Lease;
(d) Use of the Demised Premises by the proposed
subtenant/assignee/transferee shall not violate or create any
potential
violation of any laws and must be in keeping with the character
of the Building
and the Complex;
(e) The proposed subtenant/assignee/transferee shall not be a
party by
whom any suit or action could be defended on the grounds of
sovereign immunity;
(f) The proposed subtenant/assignee/transferee shall not be (i)
an
existing occupant of the Building or the Complex (or an
affiliate of, or be
related to, an existing occupant of the Building or the
Complex), nor (ii) a
party {or an affiliate of, or be related to, a party) with whom
Landlord (or a
party that is related to or affiliated with Landlord) or its
rental agent is
negotiating with to lease space in the Building or the
Complex;
(g) Use of the Demised Premises by the proposed
subtenant/assignee/transferee shall not violate, or cause
Landlord to violate,
any other leases, agreements or mortgages affecting (i) the
Demised Premises,
the Building, the Complex or the land related to such
improvements, or (ii) the
Landlord, Landlord's Agent or other tenants, whether such
leases, agreements or
mortgages were entered into prior or subsequent to this
Lease;
(h) The proposed use shall be compatible with all other uses
within
the Building or the Complex and the proposed use or user shall
not cause a
diminution in the reputation of the Building, the Complex,
Landlord, Landlord's
Agent or other tenants;
(i) The proposed subtenant/assignee/transferee shall have no
right to
further sublet the subleased premises, nor to further assign
this Lease, nor to
further transfer any interest in such proposed
subtenant/assignee/transferee;
(j) In the event Tenant is in default, consent may be
withheld
irrespective of whether these other criteria are met by the
proposed
subtenant/assignee/transferee.
4.6 OTHER TRANSFERS. Notwithstanding anything herein to the
contrary,
Tenant shall not pledge, assign, transfer, encumber or otherwise
convey its
interest in the Demised Premises conditionally or as security
for any
obligations of Tenant to any third party, or otherwise. Any such
transfer in
violation of this provision shall be void.
4.7 REQUIRED INFORMATION. If Tenant should desire to assign this
Lease or
sublet the Demised Premises (or any part thereof), Tenant shall
give Landlord
written notice no later than sixty (60) days in advance of the
proposed
effective date of such proposed assignment or sublet, which
notice shall specify
the following information (such information shall be
collectively referred to as
the "Required Information"): (i) the name, current address and
business of the
proposed assignee or sublessee, (ii) the amount and location of
the assignment
or subletting, (iii) the proposed effective date and duration of
the assignment
or subletting, and (iv) the proposed rent and other
consideration to be paid to
Tenant by such assignee or sublessee. Such notice shall be
accompanied by a
check payable to Landlord in the amount of One Thousand and
00/100 Dollars
($1,000.00) to reimburse Landlord for its administrative costs
in processing
Tenant's request. Tenant also shall promptly supply Landlord
with financial
statements and other information as Landlord may request to
evaluate the
proposed assignment or sublease.
4.8 FEES; DOCUMENTS. Tenant agrees to reimburse Landlord for
legal fees and
any other reasonable expenses and costs incurred by Landlord in
connection with
any proposed assignment or subletting. Tenant shall deliver to
Landlord copies
of all documents executed in connection with any proposed
assignment or
subletting, which documents shall be in form and substance
reasonably
satisfactory to Landlord and which documents, (i) in the case of
permitted
assignment, shall require such assignee to assume performance of
all terms of
this Lease on Tenant's part to be performed, and (ii) in the
case of permitted
subletting shall require such sublessee to comply with all terms
of this Lease
on Tenant's part to be performed. No acceptance by Landlord of
any installment
of Base Annual Rent or any other sum of money from any assignee,
sublessee or
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other category of transferee shall be deemed to constitute
Landlord's consent to
any assignment, sublease, or transfer.
4.9 RIGHTS ON DEFAULT. In the event Tenant defaults under this
Lease,
in addition to the rights and remedies of Landlord outlined in
Section 12,
Landlord, at its option, may elect to recognize any sublease
between Tenant and
any subtenant, or any agreement by which Tenant has granted any
leasehold estate
or interest in the Demised Premises, as a direct lease or
agreement between
Landlord and such subtenant or other grantee, upon written
notice to Tenant and
such subtenant or other grantee, without releasing or affecting
the liability of
Tenant to Landlord under this Lease, and Tenant shall be deemed
to have assigned
its interest in such sublease or other agreement to Landlord
(without the need
for executing any further documentation evidencing same) and
such subtenant or
other grantee shall attorn to and recognize the rights of
Landlord under such
sublease or other agreement; as the case may be. Notwithstanding
Tenant's
consent or acquiescence in the termination of this Lease andlor
Tenant's
voluntary surrender of the Demised Premises (or any portion
thereof), Landlord
may consider any sublease or other agreement transferring a
leasehold estate or
interest in the Demised Premises, andlor any right to use or
possess the Demised
Premises (or any portion thereof) by any subtenant or other
grantee, terminated
as of the date Landlord terminates this Lease and/or Tenant's
right to
possession of the Demised Premises, it being the intention of
the parties that
any leasehold estate or other interest in the Demised Premises
shall be subject
to the terms and conditions of this Lease, including all rights
and remedies of
Landlord outlined herein, notwithstanding anything to the
contrary contained in
such sublease or other agreement.
5. SERVICES AND UTILITIES
5.1 BUILDING STANDARD SERVICES AND UTILITIES. Subject to the
limitations
set forth in Section 5.3 below, Landlord shall furnish
sufficient electric
current for lighting and office equipment such as typewriters,
calculators,
small copiers, desktop personal computers and word processors
and similar items.
Landlord shall also furnish water for lavatory and drinking
purposes, lavatory
supplies, fluorescent tube replacements, automatically operated
elevator service
and nightly cleaning service in accordance with Landlord's
prevailing practices
(as set forth in Exhibit C attached hereto), as they may be
modified from time
to time, except that Landlord shall not be responsible for
cleaning Tenant's
kitchens, private bathrooms, rugs, carpeting (except vacuuming)
and drapes.
Landlord shall have no liability for and expressly disclaims any
responsibility
for the engineering, design, installation, provision of or
maintenance of
Tenant's telecommunications and data transmission systems and
the inside wire
associated therewith. Landlord further agrees to furnish heating
and cooling
during the appropriate seasons of the year, between the hours
and on the days
set forth in Section 1.7 (exclusive of legal public holidays as
defined in
section 6103(a) and (c) of Title 5 of the United States Code, as
it may
hereafter be amended, with holidays falling on Saturday observed
on the
preceding Friday and holidays falling on Sunday observed on the
following
Monday). All of the aforesaid services shall be provided without
cost to Tenant
except as such expenses may be included in calculating
Additional Rent pursuant
to the provisions of Sections 2.2 and 2.3. Landlord shall not be
liable for
failure to furnish, or for suspension or delay in furnishing,
any of such
services if such failure, suspension or delay is caused by
breakdown,
maintenance or repair work, strike, riot, civil commotion,
governmental
regulations, emergency periods due to weather or any other cause
or reason
whatever beyond the reasonable control of Landlord. Failure,
suspension, delay
or interruption of services shall not result in any abatement of
Base Annual
Rent or Additional Rent, be deemed an eviction or breach of this
Lease
(including any express or implied covenant of quiet enjoyment),
or relieve
Tenant of performance of Tenant's obligations under this
Lease.
5.2 OVERTIME SERVICES. Should Tenant require heating and cooling
services
beyond the hours and/or days stipulated in Section 1.7, upon
receipt of at least
48 hours prior written notice from Tenant, Landlord will furnish
such additional
service at the then-prevailing hourly rates for both utility
services and
personnel as established by Landlord from time to time;
provided, further, that
there will be a minimum charge of four (4) hours each time
overtime services are
required.
5.3 EXCESSIVE USAGE.
(A) EQUIPMENT RESTRICTIONS. Tenant will not install or operate
in the
Demised Premises any heavy duty electrical equipment or
machinery or any other
equipment which consumes excess gas (where applicable), excess
water, excess
sewer services or excess electricity as defined in Section
5.3(b) below, without
first obtaining prior written consent of Landlord. Landlord may,
among other
things, require as a condition to its consent for the
installation of such
equipment or machinery that Tenant pay as Additional Rent the
costs for excess
consumption of such utilities that may be occasioned by the
operation of said
equipment or machinery. Landlord may make periodic inspections
of the Demised
Premises at reasonable times to determine that Tenant's
equipment and machinery
comply with the provisions of this Section and Section 5.4.
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<PAGE>
(b) EXCESS ELECTRICAL USAGE. The consumption of electricity,
including
lighting, in excess of five (5) watts per square foot for any
portion of the
Demised Premises shall be deemed excessive. Additionally, any
individual piece
of electrically operated machinery or equipment having a name
plate rating
in-excess of two (2) kilowatts shall also be deemed as requiring
excess electric
current.
(c) ADDITIONAL UTILITY COSTS. Landlord shall have the right to
either
require that one or more separate meters be installed to record
the consumption
or use of electricity or other utilities, or cause a reputable
independent
engineer to survey and determine the quantity of such utilities
consumed by such
excessive use. The cost of any such survey and meters and of
installation,
maintenance and repair thereof shall be paid for by Tenant.
Tenant agrees to pay
Landlord (or the utility company, if direct service is provided
by the utility
company), promptly upon demand therefor, for all such
consumption and demand as
shown by said meters, or a flat monthly charge determined by the
survey, as
applicable, at the rates charged for such service by the local
public utility
company. If Tenant's cost of such utilities based on meter
readings is to be
paid to Landlord, Tenant shall pay a service charge related
thereto in an amount
Landlord shall reasonably determine.
5.4 EXCESSIVE HEAT GENERATION. Landlord shall not be liable for
its failure
to maintain comfortable atmospheric conditions in all or any
portion of the
Demised Premises due to heat generated by over-occupancy of the
Demised Premises
(as reasonably determined by Landlord's architect) or by any
equipment,
machinery or additional lighting installed by Tenant (with or
without Landlord's
consent) that exceeds design capabilities for the Building. If
Tenant desires
additional cooling to offset excessive heat generated by such
equipment or
machinery, Tenant shall pay for auxiliary cooling equipment and
the operating,
maintenance, repair and replacement costs of such equipment,
including without
limitation electricity, gas, oil and water. If Tenant does not
desire such
auxiliary cooling equipment, Tenant shall pay for excess
electrical consumption
by the existing cooling system.
5.5 BUILDING SECURITY. Any security system or other security
measures
(collectively, the "Security System") that Landlord may
undertake for protection
of the Demised Premises, the Building and/or Complex (including
any parking
garages or areas) are for the protection of the physical
structures only and
shall not be relied upon by Tenant, its agents, employees or
invitees to protect
Tenant, Tenant's Property and Leasehold Improvements or Tenant's
employees,
invitees or their property. Tenant shall not do anything to
circumvent or allow
others to circumvent any Security System. Landlord shall not be
liable for any
failure of any Security System to operate or for any breach or
circumvention of
the Security System by others, and Landlord makes no
representations or
warranties concerning the installation, performance and
monitoring of any
Security System, or that it will detect or avert the occurrences
which any such
Security System is intended or expected to detect or avert.
5.6 ROOF AND AUXILIARY SPACES. Tenant shall not use the roof,
roof utility
closets or other auxiliary spaces in the Building for antennas,
condenser
coolers, telecommunications and/or data transmission equipment
or any other type
of equipment or for any other purpose.
5.7 TRASH REMOVAL. Tenant covenants and agrees, at its sole cost
and
expense, to comply with all present and future laws, orders and
regulations of
the federal, state, county, municipal and local governments,
departments,
commissions, agencies and boards regarding the collection,
sorting, separation
and recycling of trash. Upon request by Landlord, Tenant shall
sort and separate
its trash into such categories as are provided by law. Each
separately sorted
category of trash shall be placed in separate receptacles as
directed by
Landlord. Landlord reserves the right to refuse to collect or
accept from Tenant
any trash that is not separated and sorted as required by law
and directed by
Landlord, and to require Tenant to arrange for such collection
at Tenant's sole
cost and expense, utilizing a contractor satisfactory to
Landlord. Tenant shall
pay all costs, expenses, fines, penalties and damages that may
be imposed on
Landlord or Tenant by reason of Tenant's failure to comply with
the provisions
of this Section, and Tenant, at Tenant's sole cost and expense,
shall indemnify,
defend and hold Landlord harmless from and against any actions,
claims and suits
(including legal fees and expenses) arising from such
noncompliance, utilizing
counsel reasonably satisfactory to Landlord.
6. USE AND UPKEEP OF PREMISES
6.1 USE. Tenant shall use and occupy the Demised Premises only
for the
purposes specified in Section 1.8 and for no other purpose
whatsoever, and shall
comply, and cause its employees, agents, contractors, invitees
and other users
of the Demised Premises to comply, with applicable Federal,
State and local
laws, statues, ordinances and regulations, including but not
limited to the ADA,
zoning regulations and smoking regulations. Any variation or
deviation from the
specific use expressly set forth in Section 1.8 shall be deemed
a default of
this Lease. Tenant shall pay before delinquency any business,
rent and other tax
and fee that is now or hereafter assessed or imposed upon
Tenant's use or
occupancy of the Demised Premises, the
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<PAGE>
conduct of Tenant's business in the Demised Premises or Tenant's
Property. If
any such tax or fee is enacted or altered so that such tax or
fee is imposed
upon Landlord so that Landlord is responsible for collection or
payment thereof,
then Tenant shall promptly pay the amount of such tax or fee
directly to the
taxing authority, or if previously paid by Landlord, to Landlord
upon demand.
6.2 ILLEGAL AND PROHIBITED USES. Tenant will not use or permit
the Demised
Premises or any part thereof to be used for any disorderly,
unlawful or extra
hazardous purpose and will not manufacture anything therein.
Tenant will not use
or permit the Demised Premises to be used for any purposes that
interfere with
the use and enjoyment by other tenants of the Building or
Complex or, in
Landlord's opinion, impair the reputation or character of the
Building, Complex,
Landlord or Landlord's Agent. Tenant shall immediately refrain
from and
discontinue such use after receipt of written notice from
Landlord.
Notwithstanding anything in this Lease to the contrary, in no
event shall Tenant
use or permit any party to use any portion of the Demised
Premises for any of
the following purposes: (i) training facility; (ii) classroom;
(iii) data
center; (iv) call center; (v) sales order center; or (vi)
conference facility.
6.3 INSURANCE RATING. Tenant will not do or permit anything to
be done in
the Demised Premises, the Building or the Complex or bring or
keep anything
therein which shall in any way increase the rate of fire or
other insurance on
said Building or the Complex, or on the property kept therein,
or conflict (or
permit any condition to exist which would conflict) with
applicable fire laws or
regulations, or with any insurance policy upon said Building or
Complex or any
part thereof, or with any statute, rules or regulations enacted
or established
by any appropriate governmental authority. Tenant shall be
responsible for any
increase in insurance costs with respect to the Building or
Complex if the
increases were caused by its actions or failure to act.
6.4 ALTERATIONS.
(A) APPROVAL REQUIRED. Tenant shall not make any
alterations,
installations, changes, replacements, repairs, additions or
improvements in or
to (or which interfere with) the structural elements of the
Building or the
Demised Premises, or the Systems (hereinafter defined), without
the prior
written consent of Landlord, which consent may be granted or
withheld in
Landlord's sole and absolute discretion. Tenant shall not make
any
non-structural, non-System or cosmetic alterations, changes,
replacements,
repairs, additions or improvements in or to the Demised Premises
or any part
thereof, without the prior written consent of Landlord, which
consent shall not
be unreasonably withheld. All Tenant plans and specifications
shall be submitted
to Landlord for prior approval. All Tenant engineering plans and
specifications
shall be prepared at Tenant's expense by Landlord's designated
engineer.
Landlord may, among other things, condition its consent upon
Tenant's agreement
that any construction up-gradings required by any governmental
authority as a
result of Tenant's work, either in the Demised Premises or in
any other part of
the Building or Complex, will be paid for by Tenant in advance.
Tenant shall not
install any equipment of any kind or nature whatsoever which
will or may
necessitate any changes, replacements or additions to the water
system, plumbing
system, heating system, ventilating system, air-conditioning
system, supply,
return or control systems, data system(s), or the electrical
system of the
Demised Premises or the Building (collectively, the "Systems"),
nor install or
use any air-conditioning unit, engine, boiler, generator,
machinery, heating
unit, stove, water cooler, ventilator, radiator or any other
similar apparatus,
nor modify or interfere with any of the Systems, without the
prior written
consent of the Landlord, which consent may be granted or
withheld in the
Landlord's sole and absolute discretion. Any auxiliary
air-conditioning
equipment which Tenant may desire to install in the Demised
Premises shall be
connected to the Building's commercial condenser water system,
if available, and
Tenant shall pay to Landlord such reasonable charges as
established by Landlord
from time to time for the use of the Building's commercial
condenser water
system. Tenant shall not modify or interfere with the Systems
without the prior
written consent of Landlord, and then only as Landlord may
direct. Landlord may
condition its consent upon Tenant's payment of all costs to make
such changes,
replacements or modifications. Tenant shall not design,
configure, install, use
or arrange for the design, configuration, installation or use of
its
telecommunications and data transmission systems or inside wire
associated
therewith in any manner that interferes with the existing
telecommunications
and/or data transmission systems or inside wire associated
therewith of Landlord
or other tenants in the Building. Landlord's consent to any work
by Tenant or
approval of Tenant's plans or specifications shall not be deemed
a certification
that such work complies with applicable building codes, laws or
regulations, nor
shall it impose any liability whatsoever upon Landlord.
(B) ALTERATION REQUIREMENTS. All of Tenant's approved work shall
be
done in accordance with Landlord's Supplemental Rules and
Regulations for
Contractors (as promulgated and amended by Landlord from time to
time) and shall
be done by duly qualified, licensed and bonded contractors in
accordance with
all applicable laws, codes, ordinances, rules and regulations,
and Tenant shall
obtain (or give) at its cost
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<PAGE>
any required permits, licenses, registrations, notices, or
inspections for
performance of its work. Prior to the commencement of such work
Tenant must
either deposit with Landlord evidence of the existence of a bond
deemed
sufficient by Landlord against construction liens, or obtain an
executed waiver
of lien from each contractor or vendor that will perform or
furnish to Tenant
work, labor, services or materials for any alterations,
installations,
replacements, additions or improvements in or to the Demised
Premises.
Notwithstanding the aforesaid, if any mechanic's or
materialman's lien shall at
any time, whether before, during or after the Lease Term, be
filed against any
part of the Building or other property of Landlord by reason of
work, labor,
services or materials performed for or furnished to or on behalf
of Tenant,
Tenant shall forthwith cause the lien to be released of record
by being
discharged or bonded off to Landlord's satisfaction within five
(5) days after
being notified of the filing thereof If Tenant shall fail to
cause such lien to
be released of record within said five (5) day period, then, in
addition to any
other right or remedy of Landlord, Landlord may bond off or
discharge the lien
by paying the amount claimed to be due. Any amount paid by
Landlord, whether as
bond premium or payment of the lien amount, and all costs and
expenses,
including reasonable attorneys' fees incurred by Landlord in
procuring the same
and its release from the appropriate land records, shall be due
from Tenant to
Landlord as Additional Rent, and shall be payable on the first
day of the next
following month, or if the Lease Term has expired, upon
demand.
(C) REMOVAL OF LEASEHOLD IMPROVEMENTS AND TENANT'S PROPERTY.
Subject
to the provisions of Section 6.4(e) below, all Leasehold
Improvements within the
Demised Premises (including, without limitation, computer and
telephone cabling
and wiring) shall, subject to Landlord's right to require Tenant
to remove all
or any portion of the Leasehold Improvements and restore the
Demised Premises to
its condition as of the date this Lease is fully executed and
delivered by
Landlord, remain at the expiration or earlier termination of the
Lease Term
without disturbance, molestation or injury. Should Landlord
elect that Leasehold
Improvements be removed upon the expiration or earlier
termination of the Lease
Term, and/or should Tenant fail to remove all or any portion of
Tenant's
Property in accordance with the provisions of this Lease, Tenant
hereby agrees
that Landlord shall have the right to cause all or any portion
of the Leasehold
Improvements and/or Tenant's Property to be removed at Tenant's
sole cost and
expense. Tenant hereby agrees to reimburse Landlord for the cost
of such removal
together with the cost of repairing any damage resulting
therefrom, and the cost
of restoring the Demised Premises to its condition as of the
date this Lease is
fully executed and delivered by Landlord and Tenant.
Approximately sixty (60)
days prior to Tenant's scheduled vacation of the Demised
Premises, Landlord and
Tenant shall meet to review what items shall be removed and what
items shall
remain as Landlord may determine. Landlord shall provide its
estimate to Tenant
of the costs of such removal and the costs of any repairs to or
restoration of
the Demised Premises as herein provided, and Tenant shall
promptly deposit with
Landlord a sum equal to such estimated costs. In the event
Tenant fails to
remove the Leasehold Improvements designated by Landlord for
removal prior to
the expiration of the Lease Term and/or fails to remove Tenant's
Property as
aforesaid and/or fails to make such repairs and/or restoration
as aforesaid,
Landlord shall cause the removal, repair and/or restoration to
be performed at
Tenant's sole expense, which expense shall not be limited by the
amount of the
deposit referred to herein. Tenant shall provide for the
transfer or disposal of
all items removed, failing which Landlord is hereby authorized
to dispose of
same in any manner deemed appropriate, including, but not
limited to, disposal
into the trash, without liability to Tenant, and at Tenant's
sole cost and
expense, and Tenant shall indemnify, defend and hold harmless
Landlord,
Landlord's Agent and their respective employees and agents from
and against all
claims, damages, costs and expenses, including reasonable
attorneys' fees,
arising from or in connection with the disposal of all or any
items removed by
Landlord hereunder. In the event, for whatever reason, the
parties do not meet
to review which items shall be removed and which items shall
remain, and/or the
Tenant, for whatever reason, fails to deposit with the Landlord
the deposit
hereinabove stated, then the Landlord is hereby authorized to
proceed, as it
deems appropriate, with such removal and disposition of property
and repair
and/or restoration, without liability to Tenant, and at Tenant's
sole cost and
expense.
(D) COMPLIANCE WITH LAWS. In the event that during the Lease
Term
either Landlord or Tenant shall be required by the order or
decree of any court,
or any other governmental authority, or by law, code or
ordinance (including but
not limited to the ADA), to repair, alter, remove, reconstruct,
or improve any
part of the Demised Premises or of the Building, then Tenant
agrees, at its sole
cost and expense, to comply with such requirements imposed on
Demised Premises
or Tenant and shall perform, at its expense, or if Landlord
elects to perform
the same, Tenant shall permit Landlord to perform, at Tenant's
expense, such
repairs, alterations, removals, reconstructions, or
improvements. Within ten
(10) days after receipt, Tenant shall advise Landlord in
writing, and provide
the Landlord with copies of (as applicable), (i) any notices
alleging violation
of any law, code or ordinance (including the ADA) relating to
any portion of the
Demised Premises or the Building, (ii) any claims made or
threatened in writing
regarding noncompliance with any law, code or ordinance and
relating to any
portion of the Building or of the Demised Premises, or (iii) any
governmental or
regulatory actions or investigations instituted or threatened
regarding
noncompliance with any law, code or
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<PAGE>
ordinance and relating to any portion of the Building or the
Demised Premises.
No such order or decree or the compliance required therewith
shall have any
effect whatsoever on the obligations or covenants of Tenant
herein contained.
Tenant hereby waives all claims for damages or abatement of Base
Annual Rent and
Additional Rent because of such repairing, alteration, removal,
reconstruction,
or improvement.
(E) REMOVAL OF ALTERATIONS. In the event that Tenant desires to
know
whether Landlord will require Tenant to remove any alterations
from the Demised
Premises at the expiration of the Lease Term, then, at the time
Tenant delivers
a written request to Landlord which requests Landlord's approval
of such
alterations, Tenant shall have the right to deliver to Landlord
a notice which
specifically requests that Landlord advise Tenant whether
Landlord will require
Tenant to remove such proposed alterations at the expiration of
the Lease Term.
In the event that Landlord receives such a written request, and
in the event
that Landlord is willing to grant its consent to such
alterations, Landlord
shall advise Tenant, in writing, at the time the alterations are
approved,
whether or not Tenant will be required to remove the same at the
expiration of
the Lease Term.
6.5 MAINTENANCE BY LANDLORD.
(A) LANDLORD REPAIRS AND MAINTENANCE. Except to the extent that
Tenant
is required to maintain and repair pursuant to Sections 5.4,
6.4, 6.7, 6.8,
6.10, 6.11, 9 and 21, Landlord shall maintain and repair all
public or common
areas located within the Building, including external
landscaping, walkways and
parking areas, and, except to the above extent, Landlord shall
make repairs to
structural roofs, walls, Building standard heating, air
conditioning, plumbing
and electrical systems and equipment. Except as otherwise
expressly provided in
this Lease, such maintenance shall be provided without cost to
Tenant, except
that (i) such expenses may be included in calculating the
Additional Rent
pursuant to the provisions of Sections 2.2 and 2.3; and (ii) if
such expenses
are incurred by Landlord in making repairs attributable to acts
or omissions of
Tenant or Tenant's employees, agents, contractors or invitees,
then Tenant shall
reimburse Landlord for all such expenses within ten (10) days
after Landlord
submits a bill for such costs to Tenant. Tenant hereby waives
all claims for
damages or abatement of Base Annual Rent and Additional Rent
because of such
repairing, alteration, removal, reconstruction, or
improvement.
(B) USE OF DEMISED PREMISES BY LANDLORD. Landlord reserves the
right
to erect, use, maintain, repair and replace all pipes, ducts,
conduits, wiring,
fluids, gases, components, and similar materials and structures
in and through
the Demised Premises, including any changes, additions or
replacements as
Landlord may from time to time make thereto. Landlord may
install any and all
materials, equipment, pipes, ducts, conduits, wires, and related
fluids, gases,
components and mechanical equipment serving other portions,
tenants and
occupants of the Building, in, through, under or above the
Demised Premises that
Landlord deems desirable and shall have the right to locate,
both vertically and
horizontally, utility lines, wiring, air ducts, flues,
duct-shafts, drains,
sprinkler mains and valves, and such other facilities within the
Demised
Premises as may be deemed necessary by engineering design and/or
code and/or
other legal requirements and to repair, alter, replace or remove
these items.
These shall be located so as to cause minimum interference with
Tenant's use of
the Demised Premises and shall, if possible, be located above
Tenant's suspended
ceiling, if any, or as close to the concrete slab as possible,
below the floor,
along column lines or in storage areas. Landlord shall have the
right to remove
or abate any hazardous materials located in the Demised Premises
and Tenant
shall fully cooperate with Landlord in this regard. Landlord's
right to locate
facilities within the Demised Premises shall include facilities
required by
tenants or occupants in levels above or below the Demised
Premises as well as on
the same level as the Demised Premises. None of the above
conduct by Landlord
shall be deemed to constitute an interference with Tenant's
quiet enjoyment or
an actual or constructive eviction of Tenant. Tenant shall be
entitled to no
abatement of Base Annual Rent or Additional Rent whatsoever on
account of such
installation, location, construction, use, entry, removal,
repair, maintenance
or other conduct as aforesaid.
6.6 SIGNS AND PUBLICATIONS. No sign, advertisement or notice
shall be
inscribed, painted or affixed on any part of the outside of the
Building, or in
the common areas of the Building, or inside the Demised Premises
where it may be
visible from the public areas of the Building, except on the
directories and
doors of offices, and then only in such size, color, method of
attachment and
style as Landlord shall approve. Landlord shall have the right
to prohibit any
signage or publication of Tenant on the Demised Premises which
in Landlord's
opinion tends to impair the reputation or character of the
Building, Complex,
Landlord or Landlord's Agent. Tenant shall refrain from and
discontinue such
signage or publication upon receipt of written notice from
Landlord, but in no
event later than one (1) day after receipt of such notice.
6.7 EXCESSIVE FLOOR LOAD. Landlord shall have the right to
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