BASIC LEASE INFORMATION
CANYON PARK TECHNOLOGY CENTER
OFFICE BUILDING LEASE AGREEMENT
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Lease
Date:
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“Tenant”:
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Address of
Tenant
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756 East
Technology Avenue
Orem, Utah 84097
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Contact:
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Josh
James Telephone: 801-722-7000
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“Landlord”:
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TCU Properties
I, LLC, a Utah limited liability company
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Address of Landlord:
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Canyon Park
Management Company
1501 North Technology Way
Orem, Utah 84097
Contact: Allen Finlinson
Telephone: (801) 764-0005 Ext 399
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Landlord’s Counsel:
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Attn: Monte
Deere
Bennett Tueller Johnson & Deere
3865 S. Wasatch Blvd., Suite 300
Salt Lake City, Utah 84109
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“Adjusted
Rental”:
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“The sum
of the annual Basic Rental and the annual Excess Operating Expenses
and Excess Taxes.
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“Annual
Increase”:
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$0.50 per
rentable square foot on each one-year anniversary of Lease
Commencement Date.
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“Auditorium Usage”:
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Subject to
availability and scheduling, Landlord shall allow Tenant up to 16
hours of free use of the auditorium in building J each year.
Tenant’s free use of such auditorium does not include an
A/VTechnician or additional A/V equipment requested over and above
the equipment already in the auditorium. Additional time required
beyond the 16 hours will be charged at the rate of $250 per each
four-hour block of time.
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“Base
Year”:
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“Basic
Rental”:
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$223,533 per annum ($ 18,627.75 per month)
The security deposit shall be due upon execution of the Lease. The
Security Deposit shall be equal to the last month’s
rent.
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“Broker”:
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“Building”:
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The Building
located in the Park known as “Canyon Park Technology
Center” (“CPTC”) and designated as Building G on
the site plan of the Park attached hereto as Exhibit A
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“Building
Services”:
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Standard
building services as set forth herein shall be provided from 8 a.m.
to 6 p.m., Monday through Friday and 9 a.m. to 1 p.m. on Saturday,
except Holidays. After hours heating, ventilating and air
conditioning (HVAC) and electrical service shall be charged at
the rate of $25.00 per hour with Tenant providing an honest report
of after hour’s usage to the Landlord upon request. If Tenant
requests after hours services requiring service personnel, Tenant
will be charged for the cost of such service plus an additional
charge of 15% of such cost to cover overhead.
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“Common
Building Services”:
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Exercise facilities, food service facilities, and other services
available to all tenants in the Park provided in Building L. To the
extent user fees charged at Building L do not cover all costs of
providing such services to Park tenants and their employees, Tenant
shall pay its share of the operating expenses deficit calculated by
multiplying the total operating deficit for Building L by the RA
under this Lease and then dividing such sum by the total RSF of the
Park.
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“Commencement Date”:
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“Common
Roadways”:
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The private
common roadways shown cross-hatched on Exhibit A-1
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“Co-Op
Marketing”:
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Landlord shall
have the opportunity for Co-op Advertising rights with Tenant. With
advance notice Landlord shall be allowed (4) four “walk
through tours” per year of Tenant’s space for Canyon
Park clients and prospective tenants.
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“J
Auditorium Executive Boardroom”:
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Subject to availability and scheduling, Landlord shall allow Tenant
up to 16 hours of free use of the auditorium in Building J each
year of the Lease. Tenant’s free use of such auditorium does
not include an A/V technician or additional A/V
equipment
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requested over
and above that equipment already available in the auditorium. In
addition, subject to availability and scheduling, Landlord shall
allow Tenant to use the executive conference room in Building L
free of charge for (5) five business days annually throughout
the Term of this Lease. To avoid scheduling conflicts, Tenant shall
provide Landlord with as much advance notice as reasonably possible
with regard to any dates Tenant desires to use the auditorium or
executive conference room.
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“Special
Concession”:
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Subject to
available and scheduling, Landlord shall provide Tenant with
lodging in Cabo San Lucas, Mexico to accommodate (4) four
couples for (4) four nights free of charge at the Ricks
Partners’ Villa at Puerto Del Sol.
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“Expansion Rights”:
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Tenant shall
have on-going expansion rights at Canyon Park. The terms and
conditions shall be consistent with the then current lease rate and
associated expenses.
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“Estimated Excess Operating
Expenses”:
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Landlord’s estimate of the Excess Operating Expenses, which
shall be paid by Tenant to Landlord on a monthly basis.
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Estimated Excess Taxes”:
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Landlord’s estimate of the Excess Taxes,
which shall be paid by Tenant to Landlord on a monthly basis after
the Base Year.
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“Excess
Operating Expenses”:
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(i) The amount by which the Operating Expenses Per Square Foot of
RA (defined in Exhibit E ) for any calendar year or
portion thereof during the Lease Term exceeds the Operating
Expenses Per Square Foot of RA (defined in Exhibit E )
during the Base Year multiplied by (ii) the RA of the
Premises.
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“Excess
Taxes”:
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The product of
(i) the amount by which the Taxes per Square Foot of RA
(defined in Exhibit E ) for any calendar year or
portion thereof during the Lease Term exceeds the Taxes Per Square
Foot of RA during the Base Year, multiplied by (ii) the RA of
the Premises.
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“Fire Suppression System”:
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The data center
in the basement of building G has a Halon fire suppression system.
The reminder of the building contains a fire sprinkler system that
meets the requirements of applicable building codes in effect at
the time of occupancy.
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“Guarantor”:
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“Land”:
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The land upon
which the Building is located, which land is shown hatched on
Exhibit A attached hereto.
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Legal
Requirements:
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Laws and
ordinances of all federal, state, county, and municipal
governments, and rules, regulations, orders and directives of all
departments, agencies or offices thereof, and of any other
governmental, public or quasi-public authorities having
jurisdiction over the Premises, the Property, the Park or any
portion(s) thereof.
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“Park”:
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All of the Park
Buildings together with all of the land in Canyon Park Technology
Center outlined on Exhibit A attached hereto comprised
of approximately 85.1 acres and all landscaping, driveways,
roadways, parking areas and other improvements now or hereafter
located on such land.
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“Park
Buildings”:
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The Buildings
located in the Park including, without limitation, Building G,
which Park Buildings are shown on the site plan of the Park
attached hereto as Exhibit A .
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“Parking”:
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Parking shall
be open and available on an unreserved basis in the parking areas
shown on Exhibit A, provided Landlord may in its sole
discretion designate parking spaces as reserved parking for
individual tenants based on each tenant’s proportionate
premises square footage. Landlord will designate parking spaces as
reserved parking for Tenant’s executive and/or guest parking,
(See Exhibit I).
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“Permitted Use”:
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Tenant shall
use and occupy the Premises for general and executive offices
including data center usage and for no other use or
purpose.
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“Premises”:
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The Premises
are shown cross-hatched on the floor plan attached hereto as
Exhibit B .
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“Property”:
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Collectively
the Land, the Building together with all landscaping, driveways,
parking areas and other improvements now or hereafter situated on
the Land.
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“Rent Abatement”:
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Provided that
Tenant is not in material breach of the Lease and no amount of
Adjusted Rental is past due, the Basic Rental shall abate and be
deemed timely paid by Tenant for the following twelve (12) months:
___, 2003 to ___, 2004 (collectively the “Free Rent
Months”). Notwithstanding any other term or condition of this
Lease, Tenant need not pay Landlord any Basic Rental for the Free
Rent Months.
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Rentable Area
(or “RA”) of the Premises:
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Approximately 16,558 rentable square feet.
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Restrictive
Covenants:
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The covenants set forth on Exhibit H attached hereto, and any
amendments or additions thereto pursuant to
Paragraph 44 .
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“Security
Deposit”:
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$21,387.41
payable upon execution of the Lease.
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“Security
Services”:
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Landlord
currently provides basic security services, which include card
access, security patrols and limited camera surveillance. Landlord
shall provide one access card, without charge but subject to change
without notice, to each employee at the beginning of the Lease Term
and to each new employee when they are employed. There will be a
$15.00 charge, subject to adjustment without notice, to Tenant for
each card that needs to be replaced or changed for any reason, and
that is not returned at the end of the Lease. Landlord will provide
two keys to the locks on the corridor doors entering the Premises,
with additional keys to be furnished by the Landlord at
Tenant’s expense. The Landlord at Tenant’s expense
shall provide any keys or locks needed within the Premises.
Landlord reserves the right to change these services upon
notice.
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“Signage”:
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Subject to
Paragraph 9(b) of the Lease, Tenant may construct, at
Tenant’s cost and expense, a monument sign on the Park land
outside of the Building, provided that (a) the size, design,
style, color, materials, location, content, and method of
illumination of such sign are, in the reasonable opinion of
Landlord, (i)
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aesthetically
pleasing, (ii) complementary to the design, style, and
materials of the Building and Park, and (iii) consistent with
an executive office building and (b) the lettering or signage
on the monument is not permanent and may be removed without
significant difficulty or expense upon the expiration of the Term
or Tenant’s occupancy of the Premises. In addition,
Tenant’s name, as set forth herein or as reasonably
designated by Tenant from time to time, shall be placed in the
Building directory located in the main level of the Building.
Further, at Tenant’s cost and expense and Subject to
Paragraph 9(b) of the Lease, Tenant shall have the same rights
to exterior signage made available to any other tenants of the
Building, and Tenant shall have the right to place reasonable
appropriate signage situated and on or about the entry doors to the
Premises which identify the Tenant and its business, provided such
lettering or signage may be removed without significant difficulty
or expense and without damage to the Premises.
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“Shared Park Facilities”:
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The Common
Roadways, Cafeteria, Fitness Center and other facilities of the
Park described on Exhibit G attached hereto which are
used in common on a non-exclusive basis by all tenants of the Park.
Landlord reserves the right to change the availability and use of
the Shared Park Facilities.
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“Tenant
Improvements”:
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Subject to the
representations and warranties of Landlord contained in the Lease,
Tenant accepts the premises “As is” except for the
improvements described in Exhibit D attached
hereto.
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“Term”:
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The period
commencing on the Commencement Date (as defined below) and, subject
to and upon the terms and conditions set forth herein, or in any
exhibit or addendum hereto, continuing for sixty (60) calendar
months thereafter, provided, however, that if the Commencement Date
falls on a date other than the first day of a calendar month, the
expiration date of the primary term shall be extended so as to give
effect to the full term specified above in addition to the
remainder of the calendar month during which the Commencement Date
falls.
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The foregoing
Basic Lease Information is hereby incorporated into and made a part
of the Lease attached hereto (the “Lease”).
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Each reference
in the Lease to any of the information and definitions set forth in
the Basic Lease Information shall mean and refer to the information
and definitions hereinabove set forth and shall be used in
conjunction with and limited by all references thereto in the
provisions of the Lease. In the event of any conflict between any
Basic Lease Information and the Lease, the Lease shall
control.
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LANDLORD:
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TCU Properties
I, LLC, a Utah limited liability
company
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,
2003
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By:
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Name:
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Val H.
Christensen
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Title:
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President
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TENANT:
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Omniture,
Inc.
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,
2003
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By:
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Name:
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Josh
James
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Title:
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CEO
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CANYON PARK TECHNOLOGY CENTER
OFFICE BUILDING LEASE AGREEMENT
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1. Definitions
and Basic Provisions
2. Lease Grant
3. Rent
4. Security Deposit
5. Leasehold Improvements
6. Landlord’s Obligations
7. Condition of Premises
8. Use
9. Tenant’s Repairs and Alterations
10. Assignment and Subletting
11. Compliance with Laws
12. Indemnity
13. Subordination
14. Rules and Regulations
15. Inspection
16. Condemnation
17. Fire or Other Casualty
18. Holding Over
19. Taxes on Tenant’s Property
20. Events of Default
21. Remedies
22. Landlord’s Liability
23. Surrender of Premises
24. Attorneys’ Fees
25. Mechanic’s Liens
26. No Subrogation-Insurance
27. Brokerage
28. Building Name
29. Estoppel Certificates
30. Notices
31. Severability
32. Amendments; No Waiver; Binding Effect
33. Quiet Enjoyment
34. Gender
35. Joint and Several Liability
36. Certain Rights Reserved by Landlord
37. Notice to Lender
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38.
Captions
39. Miscellaneous
40. Force Majeure
41. Applicable Law
42. Third Party Rights
43. Americans with Disabilities Act
44. Site Plan and Restrictive Covenants
45 Security Services
46. Exhibits and Attachments
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Exhibit A
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Exhibit A-1
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- Land Owned
and Controlled by Landlord
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Exhibit B
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- Floor Plan of
the Premises
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Exhibit C
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Exhibit D
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Exhibit E
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Exhibit F
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Exhibit G
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Exhibit H
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Exhibit I
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CANYON PARK TECHNOLOGY CENTER
OFFICE BUILDING LEASE AGREEMENT
THIS LEASE
AGREEMENT is entered into as of the Lease Date set forth in the
Basic Lease Information by and between the Landlord and the Tenant
named in the Basic Lease Information.
1.
Definitions and Basic Provisions.
The
definitions and basic provisions set forth in the Basic Lease
Information (the “Basic Lease Information”) executed by
Landlord and Tenant contemporaneously herewith are incorporated
herein by reference for all purposes and shall be used in
conjunction with and limited by the reference thereto in the
provisions of this Lease. As used herein, the term
“RA,” when referring to the Premises (defined in the
Basic Lease Information) shall mean and refer to the rentable area
of the Premises measured in accordance with the Building Owners and
Managers Association (“BOMA”) method of measurement.
The term “RA,” when referring to the Building or any
other Park Building, shall mean the aggregate total of all RA in
the Building in question or in all of the Park Buildings, as
applicable. The Landlord reserves the right to re-measure the
Premises in accordance with BOMA standards, in which event the
Basic Rental will be immediately adjusted to reflect the change in
the RA of the Premises.
Landlord,
in consideration of the rent to be paid and the other covenants and
agreements to be performed by Tenant and upon the terms hereinafter
stated, does hereby lease, demise and let unto Tenant the Premises
commencing on the Commencement Date and ending on the last day of
the Term unless sooner terminated as herein provided.
(a) Except
as provided for in the “Rent Abatement” section, Tenant
shall pay to Landlord Adjusted Rental, which is the sum of the
monthly Basic Rental, the monthly Excess Operating Expenses and the
monthly Excess Taxes (as defined in the Basic Lease Information),
as estimated by Landlord from time to time, in monthly installments
in advance on the first day of each month in lawful money of the
United States to Landlord at its address set forth above (or such
other address as Landlord shall designate in writing to Tenant)
without notice or demand and without any abatement, deduction or
set-off, for each month of the entire Term. One such monthly
installment, shall be payable by Tenant to Landlord upon the
execution of this Lease. A like monthly installment shall be due
and payable without demand beginning on the first day of the
calendar month immediately following the month in which the
Commencement Date occurs and continuing thereafter on or before the
first day of each succeeding calendar month during the Lease Term.
Rent for any fractional month at the beginning of the Lease Term
shall be prorated
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based on
one-three hundred sixty-fifth (1/365) of the current annual
Adjusted Rental for each day of the partial month this Lease is in
effect, and shall be due and payable on or before the first day of
the calendar month immediately following the month in which the
Commencement Date occurs.
(b) During
the Term of this Lease, the Basic Rental shall be increased at the
beginning of each lease year by $.50 per rental square foot. The
dates described in this Section for computing the adjustment in
Basic Rental are hereinafter sometimes referred to collectively as
“Rental Adjustment Dates” and singularly as a
“Rental Adjustment Date”. After each Rental Adjustment
Date, the rent as increased shall be deemed the Basic Rental for
all purposes of this Lease.
(c) If
all of any sum due under this Lease is not received by its due
date, then Tenant, to the extent permitted by law, shall pay, in
addition to the sum owed, a late payment charge equal to five
percent (5%) of the sum (or portion thereof) which is overdue. If a
check remitted to pay any sum due to Landlord hereunder shall not
be honored upon presentment for payment, then Tenant in addition to
the amount owed, shall pay to Landlord on demand a fee of five
percent (5%) of the amount owed. Following the dishonor of any
check presented for payment, Landlord may require all further
payments to be made hereunder to be made by certified check or
money order. Also, if Landlord does not receive any Adjusted Rental
within thirty (30) days after the due date thereof, or fails
to pay any sum (other than Adjusted Rental) which at any time
becomes due to Landlord under any provision of this Lease as and
when the same becomes due hereunder, then, in either such event,
Tenant shall pay Landlord interest on such overdue amounts from the
due date thereof until paid at an annual rate (the “Past Due
Rate”) which equals the lesser of (i) eighteen percent
(18%) or (ii) the highest rate then permitted by law. The
“Past Due Rate” will be applied after thirty
(30) days on the unpaid sum but not the five percent (5%) late
penalty fee. All late payment charges and fees for dishonored
checks are to reimburse Landlord for additional costs and expenses
which Landlord presently expects to incur in connection with the
handling and processing of late or dishonored payments. Provision
for such late charge, interest or fee for dishonor shall be in
addition to all other rights and remedies available to Landlord
hereunder or at law or in equity and shall not be construed as
liquidated damages or limiting Landlord’s remedies in any
manner.
(d) Tenant’s
covenants and obligations to pay Adjusted Rental and all additional
rental (collectively, the “Rent”) hereunder are
unconditional and independent of any other covenant or condition
imposed on either Landlord or Tenant, whether under this Lease, at
law or in equity.
The
Security Deposit is due upon execution of the Lease. Landlord shall
hold the Security Deposit without liability for interest and as
security for the performance by Tenant of Tenant’s
obligations under this Lease. Tenant agrees that such deposit will
not be considered an
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advance payment
of rental or a measure of Landlord’s damages in case of
default by Tenant. Landlord may, from time to time, without
prejudice to any other remedy, use such deposit to make good any
arrearage in any amount due hereunder and to reimburse Landlord for
any other damage, injury, expense or liability caused to Landlord
by any breach of this Lease. Following any such application of the
Security Deposit, Tenant shall pay to Landlord on demand the amount
so applied in order to restore the Security Deposit to its original
amount. If Tenant is not then in default hereunder, one-half (1/2)
of any remaining balance of the Security Deposit shall be returned
by Landlord to Tenant within a reasonable period of time after the
expiration of this Lease, not to exceed fifteen (15) days. The
balance of the Security Deposit shall be held by Landlord until
final computation of any sums (such as the Excess Operating
Expenses) which Tenant may owe under this Lease. The Landlord will
present the final computation of Excess Operating Expenses and the
return of the deposit if warranty within sixty (60) days of
the end of the lease. If Landlord transfers its interest in the
Premises during the Lease Term, Landlord may assign the Security
Deposit to the transferee and thereafter shall have no further
liability for the return of the Security Deposit. Landlord shall
not be required to keep the Security Deposit separate from its
general funds.
5. Leasehold
Improvements .
If
Landlord has agreed to construct improvements upon the Premises,
such improvements shall be installed as provided in
Exhibit D attached hereto.
6.
Landlord’s Obligations.
(a) Subject
to the following limitations, Landlord shall furnish Tenant while
Tenant is occupying the Premises and performing all of its
obligations under this Lease, facilities to provide (i) water
(hot and cold) for lavatory and cleaning purposes at those points
of supply provided for general use of tenants in the Building;
(ii) heated and refrigerated air conditioning in season,
during Customary Business Hours (defined below), and at such
temperatures and in such amounts as are reasonably considered by
Landlord to be standard; (iii) janitorial service to the
Premises as is reasonably considered by Landlord to be standard on
weekdays other than Holidays (as hereinafter defined) and such
window-washing as may from time to time in Landlord’s
judgment reasonably be required; (iv) elevator service in
common with other tenants; provided that Landlord may limit the
number of elevators in operation at times other than Customary
Building Hours; and (v) replacement of Building standard light
bulbs and fluorescent tubes. Also, Landlord shall maintain the
public and common areas of the Building in reasonably good order
and condition; provided, however, that Tenant shall reimburse
Landlord for the cost of repairing any damage to such areas
occasioned by Tenant, or its employees, contractors agents or
invitees. The cost of these facilities and services shall be
included in Operating Expenses (as defined in Exhibit F ).
If Tenant desires any of the services specified in this
Paragraph 6 at a time or in an amount other than times
or amounts herein designated, such excess service or services shall
be supplied to Tenant, subject to availability, upon Tenant’s
request for such services,
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which request
shall be made in accordance with Landlord’s normal operating
procedures. Tenant shall pay to Landlord as additional rent the
cost of such excess service or services (which may include a charge
for depreciation of Landlord’s equipment) within fifteen
(15) days after Tenant’s receipt of a bill therefor.
“Customary Business Hours” means 8:00 a.m. to 6:00 p.m.
Monday through Friday, and Saturday 9:00 a.m. to 1:00 p.m., except
Holidays. “Holidays” means New Year’s Day, Martin
Luther King Day, Presidents Day, Memorial Day, the Fourth of July,
Labor Day, Thanksgiving Day, the Friday following Thanksgiving and
Christmas Day. After hours heating, ventilating, air conditioning
(HVAC) and electrical service shall be charged at the rate of
$25 per hour with the Tenant providing an honest report of after
hours usage to the Landlord upon request. If Tenant requests after
hours services requiring service personnel, Tenant will be charged
for the cost of such service plus an additional charge of 15% of
such cost to cover overhead.
(b) Landlord
shall make available to Tenant electric power facilities in the
Premises sufficient to furnish power for computers, typewriters,
voice writers, calculating machines and other machines of similar
low electrical consumption; provided, however, that Landlord shall
not provide power in excess of eight (8) watts per square foot
of RA of the Premises. If, in Landlord’s judgment,
Tenant’s use of power exceeds that permitted by the preceding
sentence, Tenant shall bear the entire cost of the excess,
including without limitation, the cost of any metering devices
which may be necessary to determine the amount of such excess.
Landlord shall also make available electric lighting and current
for the common areas of the Building in the manner and to the
extent deemed by Landlord to be standard.
(c) Landlord’s
obligation to make available the utilities described in this
Paragraph 6 is subject to the rules and regulations of the
suppliers of utilities and of any municipal or other governmental
authority regulating the business of providing utility services.
Landlord shall not be responsible or liable to Tenant for any loss,
damage or expense that Tenant may sustain or incur if either the
quantity or character of any utility service is changed. If heat
generating machines, equipment, fixtures or devices of any nature
whatsoever which affect the temperature otherwise maintained by the
air conditioning system are used in the Premises by Tenant,
Landlord may install supplementary air conditioning units in the
Premises at Tenant’s expense (including the cost of
installation and the cost of operation and maintenance
thereof).
(e) Landlord’s
failure to any extent to make available, or any slowdown, stoppage
or interruption of, the services set forth in this
Paragraph 6 resulting from any cause beyond
Landlord’s control (as defined in Paragraph 40 )
shall not render Landlord liable in any respect for damages to
person, property or business, nor be construed an eviction of
Tenant or work an abatement of Rent, nor relieve Tenant from
fulfilling any covenant or agreement hereof; however, Landlord
shall use reasonable efforts (and shall not be required to employ
any workers at overtime rates) to resume said services in a timely
manner.
7. Condition
of Premises . TENANT EXPRESSLY ACKNOWLEDGES THAT
(A) TENANT HAS THOROUGHLY EXAMINED THE PREMISES AND TAKES
AND
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ACCEPTS THE
PREMISES IN ITS “AS IS” CONDITION ON THE COMMENCEMENT
DATE, (B) LANDLORD AND LANDLORD’S AGENTS AND EMPLOYEES
HAVE MADE NO REPRESENTATIONS OR WARRANTIES AS TO THE CONDITION OF
THE PREMISES, THE BUILDING, THE PROPERTY OR THE PARK, NOR HAS
LANDLORD MADE ANY COMMITMENTS TO REMODEL, REPAIR OR REDECORATE,
EXCEPT AS EXPRESSLY SET FORTH HEREIN AND (C) LANDLORD
EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTY THAT THE PREMISES ARE
SUITABLE FOR TENANT’S INTENDED COMMERCIAL PURPOSE. TENANT
EXPRESSLY WAIVES AND RELEASES LANDLORD FROM ANY OF SAME.
(a) Tenant
shall use the Premises only for the Permitted Use (as defined in
the Basic Lease Information). Tenant shall not occupy or use the
Premises, or permit any portion of the Premises to be occupied or
used, for any business or purpose other than the Permitted Use or
for any use or purpose which is unlawful in part or in whole or
deemed by Landlord to be disreputable in any manner or extra
hazardous on account of fire, nor permit anything to be done that
will in any way invalidate or increase the rate of insurance on the
Building or its contents. Tenant shall promptly upon demand
reimburse Landlord for any additional premium charged for any such
insurance by reason of Tenant’s failure to comply with the
provisions of this Paragraph. Tenant will conduct its business and
control its agents, employees and invitees in such a manner as not
to create any nuisance, interfere with, annoy or disturb other
tenants or interfere with Landlord in the management of the
Building, the Property or the Park. Tenant will maintain the
Premises in a clean, healthful and safe condition and will comply
with all laws, ordinances, orders, rules and regulations of all
state, federal, municipal and other agencies or bodies having
jurisdiction over the Premises and governing the use, condition or
occupancy of the Premises, whether existing as of the Commencement
Date or enacted subsequent thereto.
(b) If
any governmental license or permit shall be required for the proper
and lawful conduct of Tenant’s business in the Premises or
any part thereof, Tenant shall duly procure and thereafter maintain
such license or permit and submit the same to Landlord. Landlord
agrees to cooperate with Tenant and to execute such applications,
certificates and other documents as Tenant shall reasonably request
in order for Tenant to procure or maintain any such license or
permit, provided that same is at no cost or expense to Landlord.
Tenant shall at all times comply with the terms and conditions of
each such license or permit. Tenant shall not at any time use or
occupy, or suffer or permit anyone to use or occupy the Premises,
or do or permit anything to be done in the Premises, in any manner
which (i) violates the existing, permanent Certificate of
Occupancy for the Premises; (ii) causes or is likely to cause
injury to the Building or any equipment, facilities or systems
therein; (iii) constitutes a violation of the Legal
Requirements; (iv) materially impairs the character,
reputation or appearance of the Building as Class A office
Buildings; or (v) materially impairs the proper and economic
maintenance, operation and repair of the Building and/or its
equipment, facilities or systems.
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9. Repairs
and Alterations.
(a) Tenant
shall keep and maintain the Premises in a good, clean condition of
repair and maintenance. Tenant shall not damage or injure the
Premises. If any repairs or maintenance required to be performed by
Tenant are not commenced within fifteen (15) days and
completed within thirty (30) days after Landlord notifies
Tenant of the need for same, Landlord may make such repairs or
replacement, and Tenant shall pay the cost thereof (plus an
additional charge of fifteen percent (15%) of such cost to cover
overhead) to Landlord within fifteen (15) days after
Tenant’s receipt of a statement from Landlord. Tenant further
agrees not to commit or allow any waste or damage to be committed
on any portion of the Property, and at the termination of this
Lease, by lapse of time or otherwise, Tenant shall deliver up the
Premises to Landlord in as good condition as at the Commencement
Date, ordinary wear and tear excepted. Except as may be set forth
in Exhibit D , Landlord shall not be required to make
any improvements or repairs of any kind or character on or to the
Property, or any portion thereof, during the Lease Term.
Notwithstanding the foregoing, Landlord shall make all necessary
repairs to the Building components servicing or supporting, but
located outside, the Premises, including without limitation the
foundation, outside walls, interior load-bearing walls, roof,
load-bearing beams, and other major structural components of the
Building and treat such repairs as Operating Expenses (as defined
in Exhibit E), unless the need for such repair arises out of
(1) the performance by Tenant of any alterations or other
work, (2) any act or omission of Tenant or its employees,
invitees or contractors or (3) the installation of any
equipment, fixtures or property by Tenant in the Premises or the
moving of the foregoing in or out of the Premises, in which event
Tenant shall be responsible to make the repairs.
(b) Tenant,
without the prior written consent of Landlord, shall not paint,
install lighting or decorations (except wall hangings), or install
any signs, window or door lettering or advertising media of any
type on or about the Property, or any part thereof, or make any
other alterations, improvements or physical additions in or to the
Property, or any part thereof. At the termination of the Lease, at
Landlord’s option and subject to the Landlord’s right
to retain improvements desired by Landlord, Tenant shall restore
any portions of the Premises altered, added to, or improved by
Tenant to the original condition accepted on the
“Commencement Date”. Notwithstanding the Tenant’s
duty hereunder to remove their tenant alterations, additions, or
improvements, including without limitation any HVAC, power supply,
or other equipment attached to the Premises, whether temporary or
permanent in character, made in or upon the Property shall, at
Landlord’s sole discretion and option, be Landlord’s
property on termination of this Lease and shall remain on the
Property without compensation to Tenant. All furniture and
unattached, movable equipment and trade fixtures kept in the
Premises by Tenant shall be removed by Tenant at the termination of
this Lease. If the items are not removed, Landlord may elect that
such items will become Landlord’s property. If removal
occurs, Tenant, at Tenant’s expense, shall repair and restore
to its original condition any portion of the Premises which is
damaged by such removal. All such installations, removals and
restorations shall be accomplished in a good workmanlike manner so
as not to damage the Premises or the primary structure or
structural qualities of the Building or any plumbing or electrical
lines or other utility
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facilities. All
contractors used by Tenant in performance of any alterations or
other work in the Premises shall be subject to the approval of
Landlord, such approval not to be unreasonably withheld provided
that with respect to any structural, mechanical or electrical work
(regardless of the cost thereof) Tenant will use Landlord’s
contractors. If the cost of the alterations or other work to be
performed by Tenant as reasonably estimated by Landlord shall
exceed $30,000 (i) Landlord shall have the right to approve the
Tenant’s architect, which approval shall not be unreasonably
withheld, unless Tenant agrees to use Landlord’s architect
and (ii) Tenant may either use Landlord, Landlord’s
property manager or Landlord’s outside construction manager
as construction manager for the project and pay to such
construction manager a fee equal to 3% of the cost of such
alteration work or use its own construction manager with the prior
written consent of Landlord, which consent shall not be
unreasonably withheld. Notwithstanding anything herein to the
contrary, with respect to any non-structural alteration which
(i) does not affect any Building system or any portion of the
Building outside the Premises and (ii) does not cost more than
$30,000, the consent of Landlord will not be unreasonably withheld
or delayed. In addition, with respect to painting and other
cosmetic work that does not cost more than $30,000 in the
aggregate, Landlord’s consent shall not be required provided
Landlord receives at least 10 days advance notice thereof.
Promptly after Tenant completes any alteration, it will deliver to
Landlord a set of as-built drawings.
10.
Assignment and Subletting.
(a) Tenant
shall not, either voluntarily or by operation of law, assign all or
any portion of this Lease, nor sublet the Premises or any part
thereof, nor permit the Premises or any part thereof to be occupied
by any person other than Tenant or Tenant’s employees,
without the prior written consent of Landlord. If Tenant desires to
assign this Lease or sublet the Premises or any part thereof,
Tenant shall so notify Landlord at least sixty (60) days prior
to the date on which Tenant desires to make such assignment or
sublease, which notice shall contain all material terms of the
proposed assignment or sublease and financial information regarding
the proposed assignee or subtenant as a condition of such sublease
or assignment, Landlord may require plans to verify compliance with
Building and fire codes. Landlord may assess its reasonable out of
pocket costs for review of such plans. If Tenant desires to assign
this Lease, Landlord shall have the option within thirty
(30) days after receipt of such notice to notify Tenant in
writing that Landlord elects to terminate this Lease as of the date
specified by Tenant for said assignment. If Tenant desires to
sublet more than 50% of the RA of the Premises, Landlord shall have
the option within thirty (30) days after receipt of such
notice to notify Tenant in writing that Landlord elects to
terminate this Lease as of the date specified by Tenant for such
subletting. If Landlord fails to timely exercise the foregoing
recapture right or if the requested sublease does not trigger a
recapture right on behalf of Landlord, then Landlord shall have
forty-five (45) days after receipt of such notice to notify
Tenant whether Landlord consents to such an assignment or
subletting. Landlord shall not unreasonably withhold or delay its
consent to a subletting provided that (a) the sublessee under
any such subletting shall be such person or entity as in the
Landlord’s judgment is of a character and engaged in a
business such as is in keeping with the standards of the Park and
its occupancy, (b) the sublessee shall have
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sufficient net
worth to perform its obligations under its sublease, (c) the
sublessee shall not be a (i) government or a governmental
authority or a subdivision or an agency of any government or any
governmental authority, (ii) a tenant of the Landlord
elsewhere in the Park, (iii) an entity or person with whom the
Landlord has negotiated (for purposes hereof,
“negotiated” shall mean exchanging of written
proposals, leases being prepared or drafts distributed and
modified) for a proposed lease of space in the Park at any time
during the six (6) month period prior to the receipt of said
notice by the Landlord or (iv) competitor of Landlord and
(d) the space so to be sublet shall be regular in shape. If
Landlord fails to notify Tenant in writing of such election within
said forty-five (45) day period, Landlord shall be deemed to
have denied consent to such assignment or sublease. If Landlord
consents to a sublease, Tenant shall provide, at its expense,
direct access from the sublet space to a public corridor of the
Building in accordance with plans and specifications approved by
Landlord. No assignment or subletting by Tenant shall relieve
Tenant of any obligations under this Lease. Landlord’s
consent to any assignment, sublease or other transaction shall not
be deemed a consent to any other or subsequent
transaction.
(b) If
Landlord consents to any subletting or assignment by Tenant as
hereinabove provided and the rent, additional rent and other
consideration received by Tenant under or relating to such sublease
exceeds the Rent payable to Landlord under this Lease, or if Tenant
receives any consideration from the assignee under any such
assignment, then 100% of such excess rents and consideration under
or relating to such sublease or 100% of such consideration for any
assignment shall automatically be due and payable by Tenant to
Landlord as additional rent hereunder.
(c) Landlord
may transfer and assign, in whole or in part, its rights and
obligations hereunder concurrently with the transfer and assignment
of all or any portion of the Park and in such event and upon
assumption by the transferee of Landlord’s obligations
hereunder (any such transferee to have the benefit of, and be
subject to, the provisions of this Lease), no further liability or
obligation shall thereafter accrue against Landlord
hereunder.
(d) If
Tenant is a corporation, then any merger, consolidation,
dissolution or liquidation, or any change (whether in one or a
series of transactions) in ownership or power to vote of fifty
percent (50%) or more of its outstanding voting stock shall
constitute an assignment of this Lease requiring the consent of
Landlord which shall not be unreasonably withheld. If Tenant is a
partnership, joint venture or other entity, then any liquidation or
dissolution, or any transfer of ownership of interests totaling
fifty percent (50%) or more of the total interests in such entity
(whether in one or a series of transactions) shall constitute an
assignment of this Lease requiring the consent of Landlord. The
provisions of this clause (d) shall not be applicable so long
as the stock of Tenant is traded at a recognized regional stock
exchange.
(e) Tenant
agrees that it shall not place (or permit the placement of) any
signs on or about the Premises or the Park, nor conduct (or permit
anyone to conduct) any public advertising which includes any
pictures, renderings, sketches or other representations of any
Building (or a portion thereof) with respect to any proposed
assignment or subletting of the
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Premises,
without Landlord’s prior written consent. In all events,
Tenant shall comply with all applicable governmental
regulations.
(f) Tenant
shall not mortgage, pledge, hypothecate or otherwise encumber (or
grant a security interest in) this Lease or any of Tenant’s
rights hereunder
(g) Landlord
may terminate this Lease if Tenant sells, transfers, exchanges,
distributes, or otherwise disposes of more than thirty percent
(30%) of its assets (except in the ordinary course of business, in
a public offering of the Tenant’s stock, or in a merger or
acquisition) unless after such disposition, the net worth of Tenant
as demonstrated to the reasonable satisfaction of Landlord is an
amount acceptable to the Landlord.
(h) If
Tenant assigns this Lease or sublets all or substantially all of
the Premises, any option then held by Tenant (such as an option to
renew this Lease or to expand the size of the Premises) shall
terminate automatically upon the assignment or sublease unless
approved otherwise by Landlord.
(i) Tenant
shall pay Landlord’s reasonable expenses incurred in
reviewing any request by Tenant under this Paragraph upon
demand.
(j) If
the Premises or any part thereof are sublet or used or occupied by
anyone other than Tenant, whether or not in violation of this
Lease, Landlord may, after default by Tenant and expiration of
Tenant’s time to cure such default, collect rent from the
subtenant or occupant. Landlord may apply the net amount collected
to the Rent, but no such subletting, occupancy or collection shall
be deemed a waiver of any of the provisions of this
Paragraph 10 or the acceptance of the subtenant or
occupant as tenant, or a release of Tenant from the performance of
Tenant’s obligations under this Lease. Landlord’s
consent to any subletting or use or occupancy by others shall not
relieve Tenant of its obligation to obtain Landlord’s written
consent to any other subletting, use or occupancy by
others.
11.
Compliance with Laws. Tenant shall comply with all Legal
Requirements which relate to Tenant’s use of the Premises or
Tenant’s method of operation therein, or impose any
violation, order or duty on Tenant by reason thereof. Tenant shall
pay all the costs, expenses, penalties and damages which may be
imposed upon Landlord by reason of Tenant’s failure to fully
and promptly comply with and observe the provisions of this
Paragraph . Landlord shall comply with all Legal
Requirements which relate to the Shared Park Facilities. Landlord
agrees to remedy any non-compliance with Legal Requirements
elsewhere in the Park if such non-compliance has the effect of
preventing or hindering Tenant from obtaining a permit, certificate
or approval that Tenant is entitled to obtain hereunder from local
authorities.
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(a) Landlord
shall not be liable or responsible to Tenant for any loss or damage
to any property or person occasioned by theft, act of God, public
enemy, injunction, riot, strike, insurrection, war, court order,
requisition or order of governmental body or authority, or for any
damage or inconvenience that may arise through repair or alteration
of any part of the Building or any part of the Park, or failure to
make any such repairs unless caused by the gross negligence or
willful misconduct of Landlord. In addition, Landlord shall not be
liable to Tenant, or to Tenant’s agents, servants, employees,
customers or invitees and Tenant shall indemnify, defend and hold
harmless Landlord of and from all fines, suits, claims, demands,
losses, liabilities, actions and costs (including court costs and
attorneys’ fees, at trial and on appeal) arising in whole or
in part from (i) any injury to person or damage to property
caused by any act, omission or neglect of Tenant, Tenant’s
agents, servants, employees, customers or invitees,
(ii) Tenant’s use of the Premises or the conduct of
Tenant’s business or profession, (iii) any activity,
work, or thing done, permitted or suffered by Tenant in or about
the Premises or (d) any breach or default in the performance
of any obligation on Tenant’s part to be performed under the
terms of this Lease unless caused by the gross negligence or
willful misconduct of Landlord.
(b) Tenant
shall not (i) do any act or thing in respect of the Premises,
or use or occupy the Premises, or conduct Tenant’s business
in any manner, or (ii) permit or suffer to be done any act or
thing or fail to act in respect of the Premises, whereby the fire
insurance or any other insurance then in effect for the Building,
the Property or any other part of the Park or any part thereof
shall become void or suspended or whereby any insurance premiums
maintained by Landlord (or imputed premiums, if Landlord
self-insures) shall be higher than those which would normally have
been in effect for the occupancy contemplated under the Permitted
Uses in accordance with the terms and provisions of this Lease. In
case of a breach of the provisions of this Paragraph , if
the breach is not due to circumstances beyond Tenant’s
reasonable control and if Tenant shall not have remedied the breach
within ten (10) days of Landlord’s written notice of the
breach to Tenant, then in addition to all other rights and remedies
of Landlord hereunder, Tenant shall (i) indemnify and hold
Landlord and its affiliates harmless from and against any loss
which would have been covered by insurance which shall have become
void or suspended because of such breach by Tenant, and
(ii) pay to Landlord any and all increases of premiums
(including imputed premiums) on any insurance resulting from any
such breach.
(c) Tenant
shall defend, indemnify and hold harmless Landlord, its affiliates
and its or their officers, directors, employees and agents,
(“Landlord’s Indemnitees”) from and against any
and all claims arising from or in connection with (i) any work
or thing whatsoever done in the Premises by or for Tenant,
(ii) any act or any condition created in the Premises by
Tenant or any of its subtenants, or its or their-agents, employees,
invitees or contractors, or (iii) any accident, bodily injury
(including death) or damage to property, including damage to
property or injury of Tenant or its employees, agents, contractors,
or invitees occurring in the Premises, unless (i) caused by the
gross negligence of Landlord, its agents, employees, or
contractors, or (ii) caused by or relating to any breach or
default by Landlord in the full and
- 21 -
prompt
performance of Landlord’s obligations under this Lease which
remains uncured beyond a reasonable period of time after Landlord
is given notice thereof by Tenant.
(d) Notwithstanding
any provision to the contrary, Tenant shall look solely to
Landlord’s interests in the Park in the event of any claim
against Landlord arising out of this Lease. No other properties or
assets of Landlord or any agent or employee of Landlord shall be
subject to levy, execution or other enforcement procedures for the
satisfaction of any remedy of Tenant arising out of this Lease.
Landlord in no event shall be liable for consequential damages
arising out of any loss of use of the Demised Premises or any
equipment or facilities therein by Tenant or any person claiming
through Tenant.
(e) The
indemnity and hold harmless agreements in this Paragraph
shall include indemnification from and against any and all
liability, fines, suits, demands, costs and expenses of any kind or
nature (including, without limitation, reasonable attorneys’
fees and disbursements) incurred in or in connection with any such
claim or proceeding brought thereon, and the defense thereof, but
shall be limited to the extent any proceeds actually collected by
Landlord or Tenant (as the case may be) or such injured party under
policies owned by Landlord or Tenant (as the case may be) or such
injured party with respect to such damage or injury are
insufficient to satisfy same. The indemnity and hold harmless
agreements in this Paragraph in favor or a party shall not apply in
cases of that party’s sole negligence.
(a) This
Lease and all rights of Tenant hereunder are and shall be subject
and subordinate to any deeds of trust, mortgages or other
instruments of security (“Security Instruments”), as
well as to any ground leases or primary leases (“Master
Leases”), that now or hereafter cover any of the Property or
any interest of Landlord therein, and to any and all advances made
on the security thereof, and to any and all increases, renewals,
modifications, consolidations, replacements and extensions thereof.
Landlord hereby expressly reserves the right, at its option and
declaration, to place Security Instruments and Master Leases on and
against any of the Property or any interest of Landlord therein,
superior in effect to this Lease and the estate created hereby.
This clause shall be self-operative and no further instrument of
subordination need be required, however, upon Landlord’s
request, or upon the request of any holder (a “Holder”)
under any Security Instrument, or of any lessor (a
“Lessor”) under any Master Lease, Tenant shall execute
promptly any instrument (including without limitation an amendment
to this Lease that does not materially and adversely affect
Tenant’s rights or duties under this Lease) or instruments
intended to subordinate this Lease or to evidence the subordination
of this Lease to any such Security Instrument or Master
Lease.
(b) In the
event of the enforcement by a Holder under any Security Instrument
of the remedies provided for by law or by such Security Instrument,
or in the event of the termination of any Master Lease, the Holder
or the Lessor may terminate this Lease or may continue this Lease
in full force and effect as a direct lease between such Holder or
Lessor and
- 22 -
Tenant. If the
Holder or Lessor continues this lease, Tenant will attorn to and
automatically become the tenant of such successor in interest
without change in the terms or other provisions of this Lease
(Tenant hereby waiving any right Tenant may have to terminate this
Lease or surrender possession of the Premises) and this Lease shall
continue in full force and effect; provided, however, that such
successor in interest shall not be bound by or liable for
(i) any payment of Rent for more than one month in advance,
(ii) any amendment or modification of this Lease made without
the written consent of such Holder, Lessor or successor in
interest, or (iii) any offset, claim or cause of action which
Tenant may have against Landlord relating to the period which is
prior to the time Tenant becomes the tenant of such successor in
interest. Upon request by any Holder, Lessor or successor in
interest to either, Tenant shall execute and deliver an instrument
confirming this attornment herein provided for.
(c) Tenant
agrees that any Holder or Lessor may at any time subordinate any
rights which Holder or Lessor may hold to the rights of Tenant
under this Lease.
14. Rules
and Regulations . Tenant shall comply fully with the rules and
regulations of the Building, the Property and the Park that are
attached hereto as Exhibit C , and made a part hereof
as though fully set out herein. Tenant shall further be responsible
for the compliance with such rules and regulations by the
employees, servants, agents, contractors, visitors and invitees of
Tenant. Landlord reserves the right to amend or rescind any of the
rules and regulations and to make such other and further rules and
regulations as in its reasonable judgment shall from time to time
be prudent in the operation and management of the Premises, the
Property and/or the Park, which rules and regulations shall be
binding upon Tenant upon notice to Tenant of same provided that
Landlord agrees to give advance notice to Tenant of any amendment
to the rules and regulations and to consider Tenant’s
comments thereto, if any.
15.
Inspection and Access. Landlord and its officers, agents and
representatives shall have the right to enter into and upon any and
all parts of the Premises at all reasonable hours (or, if any
emergency, at any hour) for all reasonable purposes, including
without limitation making repairs or alterations, inspecting the
Premises, and showing the Premises to prospective tenants,
purchasers or lenders; and Tenant shall not be entitled to any
abatement or reduction of Rent by reason thereof, nor shall such be
deemed to be an actual or constructive eviction. Unless there is an
emergency, Landlord shall give prior notice to Tenant and shall
allow a representative to accompany Landlord provided such
representative does not interfere with such entry.
(a) If all of
the Premises shall be taken by any public or quasi-public authority
under the power of condemnation, eminent domain or expropriation,
or in the event of conveyance of all of the Premises in lieu
thereof, this Lease shall terminate as of the day possession shall
be taken by such authority. If thirty percent (30%) or less of the
Premises shall be so taken or conveyed, this Lease shall terminate
only in respect of the part so taken or conveyed as of the day
possession shall be taken by such authority. If more than thirty
percent
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