Exhibit 10.11
OFFICE
LEASE
The terms and
conditions in the text of this Lease and the Exhibits thereto
modify, supplement and qualify the information on the Basic Lease
Data portion of this Lease.
BASIC
LEASE DATA:
1. Lease Date:
October 10, 2005.
2. Landlord:
NorthPark Partners ESI, LLC, a Missouri limited liability
company.
3. Tenant:
Express Scripts, Inc., a Delaware corporation.
4. The term
"Building" shall mean an office building containing approximately
315,000 rentable square feet (RSF) on three (3) floors plus a lower
level that Landlord shall construct in the development to be known
as “University Place/NorthPark, University of Missouri-St.
Louis Business, Technology and Research Park” (the
“Park”). The Park will be situated on the northern
portion of the University of Missouri at St. Louis ("UMSL") campus
as shown on the Site Plan attached hereto as Exhibit A . The
exact square footage of the Building will be determined by BOMA
measurement as provided in Section 1.E.
5. The term
"Property" shall mean the land that is being ground leased by
Landlord from the Ground Lessor (as defined below) and on which the
Building will be constructed (the “Land”), together
with (i) all improvements on the Land, including the Building, and
(ii) any and all rights, appurtenances, easements and amenities
appertaining to the Land to the extent the same are leased to
Landlord under the Ground Lease. A legal description of the Land is
attached hereto as Exhibit A-1 . The Land is subject to
adjustment as described in Section 55 hereof. The Land initially
comprising the Property contains 14.883 acres.
6. The term
"Premises" means the premises being leased by Tenant hereunder,
which initially includes the entire Property, as the same may be
expanded pursuant to Section 49, and which may later be reduced as
a result of the exercise of Tenant’s “give back
rights” in Section 40. The Premises is also subject to
adjustment as described in Section 55 hereof.
7. Permitted
Use: any lawful use, subject to the restrictions in Section
1B.
8. Address of
Landlord for notices and for payment of Rent (and see Section 23 of
the Lease):
NorthPark
Partners ESI, LLC
1001
Boardwalk Springs Place, Suite 200
Attn:
Christopher P. McKee
Telecopy
No.: 636-561-9301
9. Address of
Tenant for notices before Commencement Date (and see Section 23 of
the Lease):
Attn: Tom Rocheford, Vice President, Facilities
Telecopy No.: (952) 837-7101
Maryland
Heights, Missouri 63043
Telecopy No.:
(314) 702-7120
10. Address of
Tenant for notices after Commencement Date (and see Section 23 of
the Lease):
Attn: Tom Rocheford, Vice President, Facilities
Telecopy No.: (952) 837-7101
St. Louis,
Missouri 63121
Telecopy No.:
(314) 702-7120
11. Initial Lease
Term: approximately ten (10) years and six (6) months from the
Commencement Date, ending as per Section 4 of this
Lease.
12. Commencement
Date: upon the later of (i) March 1, 2007 (the “Scheduled
Date”); or (ii) upon Substantial Completion (as defined in
Sections 4.B), and subject to adjustment as provided in Section
4.C.
13. Expiration
Date: the date approximately ten (10) years and six (6) months
after the Commencement Date - the exact date determined as per
Section 4.A of this Lease.
14. Renewal
Options: two (2) additional terms of five (5) years each. See
Section 37.
15. Annual Base
Rent During Initial Term: see Exhibit B .
16. Annual Base
Rent During Each Renewal Term, if applicable: See Section 37.B of
this Lease.
17. Monthly
Installments of Base Rent: one-twelfth (1/12th) of applicable
annual Base Rent.
18. Taxes:
Details in Section 6. Tenant pays 50% of the amount that would be
due as Taxes during years 2007 through 2016 if Taxes had not been
abated, and 100% of Taxes commencing in 2017.
19. Tenant's
Repair Obligations: Tenant shall maintain the Premises as per
Section 9 of this Lease.
20. Landlord's
Repair Obligations: See Section 7.A of this Lease.
21. Utilities: Tenant
provides all utilities at Tenant's expense.
22. Services: Landlord
provides services as per Sections 7 and 51 of this Lease. Tenant
provides all other services. Services are subject to change if
Tenant exercises its give back rights. See Section 40.B.
23. Security
Deposit: none.
24. Tenant's Required
Liability Insurance coverage: $2,500,000 See Section 8.B of this
Lease. Worker's compensation insurance required also as per Section
8.C.
25. Tenant's Required
Casualty Insurance coverage: all risk, full replacement cost on
Tenant's property and on all leasehold improvements. See Section
8.B of this Lease.
26. Landlord's
Required Insurance: See Sections 8.A and 8.C.
27. Landlord's Broker
or Agent: none.
28. Tenant's Broker or
Agent: Grubb & Ellis Company.
30. Signage: See
Section 31.
31. Parking: at no
charge, on an unreserved basis, according to the ratio stated in
Section 30. All parking is onsite on the Premises. Landlord’s
current building design includes 920 covered parking spaces in a
parking structure of 1,440 spaces. The balance of the parking is on
surface lots. The parking areas are subject to adjustment. See
Sections 30 and 55.
32. Subletting and
Assignments: See Section 14.
33. Landlord
Improvements: As per Section 2, Landlord at Landlord’s
expense shall complete the work described on the Outline Plans and
Specifications listed on Exhibit C .
34. Tenant
Improvements: As per Section 3 of the Lease, Landlord will perform
the Tenant Improvements. The Tenant Improvement Allowance shall be
provided by Landlord to be applied toward the cost of the Tenant
Improvements, and if the cost of the Tenant Improvements exceeds
said Allowance, the excess shall be paid by Tenant.
35. Tenant Improvement
Allowance: An allowance of forty-one dollars ($41.00) per rentable
square foot, which may be used at Tenant’s discretion for any
expense related to the Premises. The Tenant Improvement Allowance
is subject to adjustment for Tenant requested change orders. See
Section 3 for additional details.
36. Critical Milestone
Dates: See Section 4.E.
37. Obligation to
Reimburse Capital Expenditures Upon Expiration: See Section
39.
38. Tenant Option to
Reduce Space: See Section 40.
39. Tenant's Early
Termination Option: See Section 41.
40. Landlord
Obligation Relating to Tenant's Old Premises: See Section
42.
41. Alternative
Dispute Resolution: See Section 46 and Exhibit G
.
42. Ground Lease
Contingency: See Section 48.
43. Tenant
Condemnation Contingency: See Section 49.
44. Economic
Incentives: See Section 50.
45. Pricing Re
Property Management Services: See Section 51.
Attachments:
This Lease is supplemented by the following Exhibits or Addenda,
which are part of the Lease and which are incorporated by reference
into the Lease:
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Exhibit A
|
SITE
PLAN
|
|
Exhibit A-1
|
LEGAL
DESCRIPTION OF LAND
|
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Exhibit B
|
BASE
RENT DURING INITIAL TERM
|
|
Exhibit C
|
OUTLINE
PLANS AND SPECIFICATIONS
|
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Exhibit D
|
BUILDING RULES AND
REGULATIONS
|
|
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FORM OF
SUBORDINATION, NONDISTURBANCE AND ATTORNMENT
AGREEMENT
|
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Exhibit F
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ROOF
LICENSE AGREEMENT
|
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Exhibit G
|
ALTERNATIVE DISPUTE RESOLUTION
PROCEDURES
|
OFFICE
LEASE
THIS OFFICE LEASE is made as of the Lease Date
set forth in the Basic Lease Data Section, by and between NorthPark
Partners ESI, LLC, a Missouri limited liability company
(hereinafter referred to as "Landlord"), and Express Scripts, Inc.,
a Delaware corporation (hereinafter referred to as
"Tenant").
WITNESSETH:
A. The Curators
of the University of Missouri, a public corporation ("Ground
Lessor") owns the Property;
B. Ground
Lessor and Landlord are parties to a 99 year Ground Lease for the
Property (the "Ground Lease");
C. Landlord and
Tenant desire for Landlord to construct a building and other
improvements on the Property, and to sublease the Property, as so
improved, to Tenant, on terms set forth in this Lease.
NOW, THEREFORE, Landlord and Tenant, in
consideration of the premises and of the mutual duties and
obligations undertaken by Landlord and Tenant as hereinafter set
forth, hereby agree as follows:
1. Lease of
Premises; Use.
A.
Subject to the terms, covenants and conditions of this Lease,
Landlord hereby leases the Premises to Tenant, and Tenant hereby
leases the Premises from Landlord.
B.
Any lawful use is acceptable; provided that Landlord’s
consent shall be required for any utilization of the Premises that
would substantially increase Landlord’s insurance or
maintenance obligations above those relating to use of the Premises
as an office building or pharmaceutical distribution center. If the
Building becomes multi-tenant, any change of use by Tenant will
also require Landlord’s approval to ensure that the changed
use is compatible with general office use. Landlord’s
foregoing consent or approval such not be unreasonably withheld,
conditioned or delayed. Notwithstanding any provision in this Lease
to the contrary, Tenant shall not use, and shall not permit any
subtenants to use the Premises for: (i) any uses that are
prohibited by the Ground Lease, (ii) any uses prohibited by any
recorded restrictions applicable to the Property, and (iii) any
uses prohibited by applicable law. All uses of the Premises by
Tenant shall be in accordance with all applicable zoning laws and
shall not require parking beyond the number of parking spaces
allocated to Tenant under this Lease. Tenant may not use the
Premises in any manner not permitted in this Section 1.B. Tenant at
Tenant's expense shall obtain all permits, licenses and other
consents required for Tenant's use and occupancy of the Premises
(excluding building permits for the Landlord Improvements and
Tenant Improvements, which shall be obtained by
Landlord).
C.
Tenant's rights under this Lease are subject to all
restrictions, Protective Covenants, covenants, easements,
rights-of-way of record, if any, and applicable zoning regulations.
Without limiting the foregoing, Landlord and Tenant acknowledge
that the Premises and Tenant’s rights under this Lease are
subject to protective covenants covering the Park that Landlord and
Tenant participated in drafting with the University (the
“Protective Covenants”).
D.
Promptly after the necessary information is available,
Landlord and Tenant shall execute a written memorandum setting
forth the Commencement Date, the expiration date, the number of
rentable square feet in the Premises, the Base Rent, Tenant's
acceptance of the Landlord Improvements, and such other factual
matters as Landlord or Tenant shall reasonably request (the "Lease
Memorandum").
E.
Once sufficient information is available, the Project
Architect shall determine the RSF for the Building and for the
Premises in accordance with BOMA standards
(including ANSI/BOMA Z65.1-1996 standard) and report the results of
such calculations to Landlord and Tenant (the "BOMA Measurement").
Tenant's Base Rent as calculated pursuant to Exhibit B to
this Lease, shall be based on the RSF numbers determined by the
BOMA Measurement.
2. Landlord
Improvements .
A.
Attached hereto as Exhibit C is a schedule
of the plans and specifications comprising the outline
specifications (“Outline Plans and Specifications”) for
the improvements to be constructed on the Property by Landlord (the
“Landlord Improvements”). The Building will have three
(3) wings, each with three (3) floors and one with a lower level,
and will contain a total of approximately 315,000 rentable square
feet (RSF), as shown on the drawings included within the Outline
Specifications. The Landlord Improvements include the
construction of a building shell, which will include all
improvements to the ceiling and above, including sprinkler system,
HVAC, lighting, ceiling grid and tile, all in conformance with
Tenant's space plan and as outlined in the Outline Plans and
Specifications. Landlord shall be solely responsible for the costs
of the Landlord Improvements, including, but not limited to,
design, architectural fees, permit fees, and the amounts due the
“Contractor” (as hereinafter defined).
B.
Landlord will retain Christner, Inc. as lead architect for
the Landlord Improvements (the “Project Architect”) for
a net (no engineering) fee of two and one-half percent (2.5%) of
the cost of the Landlord Improvements and otherwise in accordance
with the terms and conditions of a mutually acceptable service
contract between Landlord and Christner, Inc.
C.
Landlord intends to hire or has hired a joint venture
consisting of Paric Corporation ("Paric") and Clayco Construction
Company, Inc. ("Clayco") (said joint venture is referred to as
"Contractor") as the general contractor to construct the Landlord
Improvements.
D.
Subject to the next paragraph, the Outline Plans and
Specifications are hereby approved by Landlord and
Tenant.
E.
Landlord and Tenant shall work with the Project Architect,
Contractor and Ground Lessor (for code compliance purposes only) to
develop a final set of construction plans consistent with the
Outline Plans and Specifications. Said construction plans once
approved by Landlord, Tenant, the Project Architect, Contractor and
Ground Lessor are referred to as the "Final LI Plans." The parties
acknowledge that Tenant must provide its interior space plan by
February 1, 2006 in order for the Tenant to be able to meet the
Scheduled Date (as hereinafter defined).
F.
Landlord and Tenant shall cooperate with the Project
Architect and the Contractor to obtain the issuance of a building
permit from the Ground Lessor as soon as possible. If the Ground
Lessor requires any changes to the Final LI Plans, Landlord and
Tenant, shall work together with the Contractor and the Project
Architect to promptly resolve any issues that may arise concerning
the changes requested by the Ground Lessor.
G.
Landlord shall cause the Contractor to make its books and
records pertaining to construction of the Landlord Improvements and
the Tenant Improvements available for Tenant’s review at any
time during normal business hours upon reasonable advance notice at
a location in St. Louis or St. Charles County, Missouri. The terms
of any agreement between Landlord and the Contractor shall be
consistent with the foregoing, and shall provide for the work to be
completed on open book basis. Neither Landlord nor the Contractor
shall approve any changes in the Final LI Plans or request any
change directive without Tenant’s prior written approval, and
neither Landlord nor the Contractor shall execute any change orders
or change directives without the prior written consent of Tenant,
such consent not to be unreasonably withheld. Tenant shall respond
in writing to any requests made by Landlord or Contractor for
changes in the Final LI Plans within ten (10) days after
Tenant’s receipt of same. If Tenant does not consent to any
requested change order, Tenant’s written response shall
specify Tenant’s reasons for such non-consent.
Notwithstanding the foregoing, Tenant shall have the right, in its
discretion, to deny any request for a change order or change
directive that (i) in Tenant’s reasonable opinion materially
and adversely affects the Premises; or (ii) results in any
increased cost payable by Tenant.
H.
Landlord shall cause the Contractor to (i) proceed diligently
to complete the Landlord Improvements, (ii) provide to Landlord and
Tenant, prior to the start of construction, a copy of the
construction schedule, and (iii) keep Landlord and Tenant advised
of any changes to the construction schedule.
I.
During construction of the Landlord Improvements, Landlord or
the Contractor shall carry builder's risk insurance on the Landlord
Improvements.
J.
Landlord shall cause the Contractor to construct the Landlord
Improvements in a good and workmanlike manner, in accordance with
all applicable laws and in substantial compliance with the Final LI
Plans.
K.
Once the Final LI Plans are developed, Landlord shall advise
Tenant of the estimated cost of constructing the Landlord
Improvements pursuant to such Final LI Plans (the “Estimated
LI Cost”). From time to time during the course of
construction of the Landlord Improvements, Tenant may request
changes to the Final LI Plans (each a “Tenant LI Change Order
Request”, and collectively the “Tenant LI Change Order
Requests”). Any Tenant LI Change Order Request shall be
subject to the approval of Landlord, not to be unreasonably
withheld. Within five (5) business days after receipt of a Tenant
LI Change Order Request, Landlord shall notify Tenant in writing
whether it is willing to approve the subject Tenant LI Change Order
Request and if Landlord is not willing to approve such Request,
such notice shall include Landlord’s reasons therefor. If
Landlord advises Tenant that it is willing to approve the subject
Tenant LI Change Order Request, Landlord’s notice shall
include a memorandum setting forth the impact on cost and schedule
resulting from such Tenant LI Change Order Request (each a
“Tenant LI Change Order Memorandum”). Tenant shall,
within five (5) business days following Tenant’s receipt of a
Tenant LI Change Order Memorandum, either (i) execute and return
the Tenant LI Change Memorandum, in which case the project budget
and construction schedule shall be deemed modified automatically
without further action from either party to take account of such
Tenant LI Change Order Request; or (ii) retract its Tenant LI
Change Order Request. Landlord shall provide Tenant with a
statement summarizing all agreed-upon TI Change Order Memoranda and
their cumulative effect on the Estimated LI Cost and the project
schedule. If, after taking all agreed-upon Tenant LI Change
Memoranda into account, the cost to construct the Landlord
Improvements will exceed the Estimated LI Cost, the amount of such
increase shall be deducted from the amount of the
“Allowance” (as defined below). If, after taking all
agreed-upon Tenant LI Change Memoranda into account, the cost to
construct the Landlord Improvements will be less than the Estimated
LI Cost, the amount of such decrease shall be added to the amount
of the “Allowance” (as defined below).A Tenant LI
Change Order Request shall not become part of the Landlord
Improvements unless a written Tenant LI Change Order Memorandum is
signed by Landlord, Tenant, Architect and the Contractor approving
the change. Once a Tenant LI Change Order Memorandum has been
signed by Landlord, Tenant, the Contractor and Project Architect
(and Ground Lessor approval of the change has been obtained if
required), the Final LI Plans are deemed modified by the signed LI
Tenant TI Change Order Memorandum.
L.
Tenant shall have access to the Premises at reasonable times
during construction for the purpose of monitoring the construction
work, and Landlord and Tenant shall promptly inform each other in
writing if either discovers any defects in or other problems with
Contractor's construction work. Tenant shall comply with any rules
and procedures adopted by the Contractor regulating Landlord
Improvements site visits.
M.
Not less than five (5) business days prior to the anticipated
Substantial Completion of the Landlord Improvements (as defined in
Section 4.B), Landlord, Tenant, Contractor and Project Architect
shall participate in a joint inspection of the Landlord
Improvements and identify those items, if any, that are incomplete
or do not conform to the Final LI Plans. At such inspection,
Landlord, Tenant, Contractor and Project Architect shall also
develop a schedule of “Punchlist Items”, which shall be
those incomplete or nonconforming items the non-completion or
non-correction of which will not cause the Landlord Improvements
from being Substantially Complete (as defined in Section
4.B).
N.
Possession of the Premises shall be delivered to Tenant on
the Commencement Date (see Basic Lease Data Section of this Lease
for the manner in which the Commencement Date is determined),
notwithstanding that there may be Punchlist Items to be
completed.
O.
Landlord shall cause the Contractor to complete any Punchlist
Items within 45 days after the Punchlist Items schedule is approved
in writing by Landlord and Tenant, except that Punchlist Items that
cannot be completed until the weather is appropriate (such as
landscaping) shall be completed within a reasonable period of time
after the weather becomes suitable for completion of such items. If
requested by Landlord, Tenant shall participate in any inspections
made by Landlord to verify that Punchlist Items have been completed
and shall acknowledge in writing that such Punchlist Items have
been completed.
P.
Landlord hereby agrees to (i) warrant all work performed with
respect to the Landlord Improvements for a period of twenty-four
(24) months from the Substantial Completion of the Landlord
Improvements (the “Warranty Period”) and to correct all
defects in such work (at Landlord’s sole cost and expense) of
which Landlord receives written notice from Tenant during the
Warranty Period; and (ii) to correct all defects and perform all
repairs to the portion of the Landlord Improvements during the
Warranty Period, at Landlord’s sole cost and expense.
Landlord shall assign to Tenant all warranties (extended or
otherwise) that apply to any systems servicing the Landlord
Improvements which Tenant is responsible for maintaining under the
terms of the Lease, or if such warranties are non-assignable,
Landlord shall enforce said warranties on Tenant’s behalf.
Landlord’s warranty obligations shall not apply to defects or
damages to any items subject to such warranties arising from or
caused by Tenant’s neglect or misuse or arising from or
caused by Tenant’s failure to comply with its obligations
under this Lease.
Q.
Landlord agrees to build and fund an entire arterial road
from University Blvd. to Hanley Road (the "Road Improvements"), at
no cost to Tenant in accordance with this Section 2.Q. Landlord
guarantees that (i) Phase I of the Road Improvements from
University Blvd. to the MetroLink tracks with a connection to
Lauderdale Road will be completed by March 1, 2007; and (ii) Phase
II of the Road Improvements from the MetroLink tracks to Hanley
Road will be completed by December 31, 2007 subject to right-of-way
acquisition delays; provided, however, Landlord agrees to use
diligent and good faith efforts to avoid such delays. Said
deadlines shall be subject to delays caused by Force Majeure
Events. Landlord’s inability to obtain public funding or
reimbursement for all or a portion of the cost of the Road
Improvements shall not constitute a Force Majeure Event. Landlord
agrees that if a retaining wall is required along the south
boundary of the right-of-way for the Road Improvements east of the
MetroLink tracks, then the plans and specifications for any such
wall shall be subject to the prior written approval of Tenant.
Tenant acknowledges that (i) the Road Improvements are being
constructed by Landlord in cooperation with Ground Lessor and St.
Louis County, and (ii) provided Tenant’s rights and
obligations under this Lease are not materially and adversely
affected, this Lease may need to be modified to accommodate the
funding structure for the Road Improvements, as more particularly
provided in Section 50 hereof.
R.
Landlord shall seek to configure the right-of-way for the
Road Improvements to allow for the placement of a monument sign at
the intersection of University Blvd. and University Place. To the
extent permitted under the Protective Covenants and applicable
regulations, Tenant shall have the right, at Tenant’s
expense, to erect a monument sign at such location. For so long as
Tenant occupies more than fifty percent (50%) of the office space
on the Property, Tenant shall have the sole right to use such sign.
If, and when, Tenant occupies less than fifty percent (50%) of the
office space on the Property, Landlord shall have the right to
offer space on the monument sign to tenants at the Property
occupying in excess of 50,000 square feet of space. In such event,
available space on the monument sign shall be assigned to tenants
on the Property on a proportionate basis allocated to the space
occupied by such tenants (and the cost of maintaining and repairing
such sign shall be allocated among Tenant and such other tenants on
the same proportionate basis).
S.
As part of the Landlord Improvements, the Building will be
outfitted with a standard, computerized proximity card reader
system at all exterior doors, which will be provided at
Landlord’s expense. The Tenant will have full access to the
system to control ingress and egress to various portions of the
Building. Tenant shall be responsible for providing such security
staffing as it may desire.
A.
Landlord shall be responsible for installation of the Tenant
Improvements and will use Contractor for such purposes, at a cost
to Tenant equal to the cost of installing the Tenant Improvements
plus an agreed upon overhead and profit percentage of four and
one-half percent (4.5%). Landlord will not add on any supervisory
fees. Tenant may apply the “Allowance” (as defined in
Section 3.C) against the cost of installing the Tenant
Improvements. Tenant shall reasonably cooperate with Landlord and
Contractor in connection with all aspects of planning and
construction of the Tenant Improvements. Without limiting the
foregoing, the following provisions shall apply:
(i)
Landlord and Tenant shall work with the Project Architect,
Contractor and Ground Lessor (with respect to code compliance only)
to develop a final set of construction plans for the Tenant
Improvements consistent with Tenant’s space plan. Said
construction plans once approved by Landlord, Tenant, the Project
Architect, Contractor and Ground Lessor (with respect to code
compliance only) shall be referred to as the "Final TI
Plans”.
(ii)
Landlord, Tenant, the Project Architect and the Contractor
shall cooperate to obtain the issuance of a building permit from
the Ground Lessor for the Tenant Improvements as soon as possible.
If the Ground Lessor requires any changes to the Final TI Plans,
Landlord, Tenant, the Contractor and the Project Architect shall
work together to promptly resolve any issues that may arise
concerning the changes requested by the Ground Lessor.
(iii)
Landlord shall cause the Contractor to make its books and
records pertaining to construction of the Tenant Improvements
available for Tenant’s review in the same manner as
applicable to the Landlord Improvements.
(iv)
Landlord shall cause the Contractor to (aa) proceed
diligently to complete the Tenant Improvements in an efficient
manner as it constructs the Landlord Improvements, (bb) combine the
construction schedule for the Tenant Improvements with the
construction schedule for the Landlord Improvements, and to provide
Landlord and Tenant with a copy of such combined schedule, and (cc)
keep Landlord and Tenant advised of any changes to the construction
schedule.
(v)
During construction of the Tenant Improvements, Landlord or
the Contractor shall carry builder's risk insurance on the Tenant
Improvements.
(vi)
Landlord shall cause the Contractor to construct the Tenant
Improvements in a good and workmanlike manner, in accordance with
all applicable laws and in substantial compliance with the Final TI
Plans.
(vii)
From time to time during the course of construction of the
Tenant Improvements, Tenant may request changes to the Final TI
Plans and Specifications (each a “Tenant TI Change Order
Request”, and collectively the “Tenant TI Change Order
Requests”). Any Tenant TI Change Order Request shall be
subject to the approval of Landlord, not to be unreasonably
withheld. Within five (5) business days after receipt of a Tenant
TI Change Order Request, Landlord shall notify Tenant in writing
whether it is willing to approve the subject Tenant TI Change Order
Request and if Landlord is not willing to approve such Request,
such notice shall include Landlord’s reasons therefor. If
Landlord advises Tenant that it is willing to approve the subject
Tenant TI Change Order Request, Landlord’s notice shall
include a memorandum setting forth the impact on cost and schedule
resulting from such Tenant TI Change Order Request (each a
“Tenant TI Change Order Memorandum”). Tenant shall,
within five (5) business days following Tenant’s receipt of a
Tenant TI Change Order Memorandum, either (i) execute and return
the Tenant TI Change Memorandum, in which case the cost of such TI
Change Order Request shall be deemed approved and the construction
schedule shall be deemed modified automatically, all as set forth
in the Tenant TI Change Order Memorandum, without further action
from either party to take account of such Tenant TI Change Order
Request; or (ii) retract its Tenant TI Change Order Request. A
Tenant LI Change Order Request shall not become part of the Tenant
Improvements unless a written Tenant TI Change Order Memorandum is
signed by Landlord, Tenant, Architect and the Contractor approving
the change. Once a Tenant TI Change Order Memorandum has been
signed by Landlord, Tenant, the Contractor and Project Architect
(and Ground Lessor approval of the change has been obtained if
required), the Final TI Plans are deemed modified by the signed TI
Tenant TI Change Order Memorandum.
(viii)
Tenant shall have access to the Premises at reasonable times
during construction for the purpose of monitoring the construction
of the Tenant Improvements, and Landlord and Tenant shall promptly
inform each other in writing if either discovers any defects in or
other problems with Contractor's construction work related to the
Tenant Improvements. Tenant shall comply with any reasonable rules
and procedures adopted by the Contractor regulating Tenant
Improvements site visits.
(ix)
The procedures applicable to the Landlord Improvements for
determining Substantial Completion, the development of a punchlist
and completion of Punchlist Items, shall also apply to the Tenant
Improvements.
(x)
Landlord agrees to (i) warrant all work performed with
respect to the Tenant Improvements for a period of twenty-four (24)
months from the Substantial Completion of the Tenant Improvements
(the “Warranty Period”) and to correct all defects in
such work (at Landlord’s sole cost and expense) of which
Landlord receives written notice from Tenant during the Warranty
Period; and (ii) to correct all defects and perform all repairs to
the portion of the Landlord Improvements during the Warranty
Period, at Landlord’s sole cost and expense. Landlord shall
assign to Tenant all warranties (extended or otherwise) that apply
to any systems servicing the Tenant Improvements which Tenant is
responsible for maintaining under the terms of the Lease, or if
such warranties are non-assignable, Landlord shall enforce said
warranties on Tenant’s behalf. Landlord’s warranty
obligations related to the Tenant Improvements shall not apply to
defects or damages to any items subject to such warranties arising
from or caused by Tenant’s neglect or misuse or arising from
or caused by Tenant’s failure to comply with its obligations
under this Lease.
C.
Landlord will provide a Tenant Improvement Allowance
("Allowance") of forty-one dollars ($41.00) per rentable square
foot which amount is included in the Base Rent and may be used at
Tenant’s discretion for any expense incurred by Tenant
related to the Premises, including, but not limited to, design,
space planning, construction documents, construction, computer
flooring, moving expenses, telephone and data cabling, systems
furniture, kitchen equipment, high density filing systems,
emergency generators, supplemental HVAC equipment or other soft
costs. Notwithstanding the foregoing, Tenant acknowledges that the
Allowance is subject to reduction pursuant to Section 2.K. The
Allowance shall be first applied toward payment of all costs
incurred by Landlord in connection with installation of the Tenant
Improvements, and any remaining balance shall be applied to
reimburse Tenant for any Tenant Improvement costs incurred by
Tenant that have not been paid by Landlord. If the cost of
Landlord’s construction of the Tenant Improvements is less
than the amount of the Allowance, Landlord shall pay Tenant the
difference within the later of (i) thirty (30) days following the
Substantial Completion Date, or (ii) five (5) business days
following the date Tenant provides Landlord with a written
breakdown of the expenses incurred by Tenant related to the
Premises to which Tenant will apply such Allowance payment. If the
cost of Landlord’s construction of the Tenant Improvements is
greater than the amount of the Allowance, Tenant shall pay Landlord
the difference within the later of (i) thirty (30) days following
the Substantial Completion Date, or (ii) five (5) business days
following the date Landlord provides Tenant with a written
breakdown of the costs of installing the Tenant
Improvements.
D.
Landlord shall permit Tenant and its representatives access
to the Premises and the improvements prior to the Commencement Date
to examine and inspect same. Tenant will be able to enter
the Building ninety (90) days prior to the Commencement Date
to prepare the Building for occupancy. Any early access will be at
no cost to the Tenant. Access to the Building shall only be granted
to installation companies that are compatible with Landlord’s
union work force. The parties acknowledge that Tenant will have to
work concurrently with Landlord to prepare the Premises for
occupancy by the Commencement Date. Tenant and its representatives
shall use diligent good faith efforts to avoid interfering with the
work of Landlord and its contractors at the Premises. Tenant shall
indemnify Landlord from all losses caused by the actions or
negligence of Tenant and/or its representatives following such
entry. Prior to entering upon the Premises, Tenant shall provide
Landlord with evidence of the insurance coverages required to be
maintained by Tenant under this Lease. The foregoing indemnity
obligations shall not apply to the activities of the Contractor in
its performance of the Tenant Improvements.
A. The initial
term of this Lease shall be for the Initial Lease Term as described
on the Basic Lease Data section, commencing on the Commencement
Date described on the Basic Lease Data section. The term of this
Lease shall expire at 11:59 p.m. on the day immediately prior to
the ten year and six month anniversary of the Commencement Date;
provided that in the event the ten year and six month anniversary
of the Commencement Date falls on a date other than the last day of
a calendar month, then the initial Lease Term shall extend from the
Commencement Date through the last day of the calendar month during
which said ten year and six month anniversary of the Commencement
Date occurs. Notwithstanding the date set for the Commencement
Date, the terms, provisions, covenants and conditions of this Lease
(except Tenant’s obligation to pay Rent which shall not
commence until the Commencement Date) shall apply and be binding
upon Landlord and Tenant from and after the date hereof. For
purposes of this Lease, the term “Lease Term” shall
mean the Initial Lease Term, plus any extensions of such Initial
Lease Term pursuant to this Lease.
B. The term
“Substantial Completion” or “Substantially
Complete” means that (i) the Landlord Improvements and Tenant
Improvements are complete in all material respects in accordance
with the Final LI Plans and the Final TI Plans (with only such
changes as were approved by Tenant in writing); (ii) approval of
occupancy has been issued by Ground Lessor; (iii) the Project
Architect and the Contractor have each executed and delivered to
Tenant a Certificate of Substantial Completion with respect to the
Landlord Improvements and the Tenant Improvements; (iv) the
Landlord Improvements and Tenant Improvements are available for
Tenant’s uninterrupted use and operation for the permitted
use with all plumbing systems, electrical systems, heating,
ventilating and air conditioning systems and equipment in good
working order such that there would be no material interference
with Tenant’s use and occupancy of the Landlord Improvements
and Tenant Improvements caused by any incomplete work of Landlord
required hereunder; and (v) the roadway from University Blvd. to
Lauderdale Road has been completed substantially in accordance with
all design and construction requirements of St. Louis County for
public dedication of the said road, together with a temporary
through connection to Hanley Road via Lauderdale Road and Geiger
Road. Landlord covenants and agrees that the remaining portion of
road from Lauderdale Road to Hanley Road shall be brought to County
standards as soon as possible after acquisition of the right-of-way
for same. The date on which the Landlord Improvements and Tenant
Improvements are Substantially Complete pursuant to the foregoing
is referred to as the "Substantial Completion Date".
Notwithstanding the foregoing, as provided in Section 55 hereof, it
is possible that Landlord may be delayed in completing a certain
parking area and/or a certain parking facility serving the
Building, and the non completion of such parking area and/or
parking facility shall not be considered in determining whether the
Landlord Improvements are Substantially Complete.
C. If
Substantial Completion has not been achieved by the Scheduled Date,
then the Commencement Date and expiration date of the Lease shall
be adjusted by the length of any such delay and Tenant shall be
entitled to the following remedies, provided, however, that any
delays caused by a “Tenant Delay” (defined below) or a
“Force Majeure Event” (defined below), shall be
excused:
(i) Tenant will
receive two (2) days free rent for every calendar day from the
Scheduled Date until Substantial Completion is achieved
(“Additional Free Rent”);
(ii) If
Substantial Completion has not occurred by the date that is ninety
(90) days after the Scheduled Date, Tenant shall have the right to
assume control over construction of the Landlord Improvements and
the Tenant Improvements, upon thirty (30) days prior written notice
to Landlord (the “Assumption Notice”); provided, that
if the Project Architect certifies that Substantial Completion is
possible within (90) days following the date the Assumption Notice
is delivered to Landlord, and Landlord provides reasonable
evidence of its ability to achieve Substantial Completion within
such 90-day period, then Tenant’s right of assumption shall
not be exercisable unless Substantial Completion has not occurred
by the end of such 90-day period. In the event that Tenant elects
to assume control over construction of the Landlord Improvements
and the Tenant Improvements pursuant to this Section 4.E(ii),
Tenant shall diligently and in good faith pursue Substantial
Completion. The assumption by Tenant of control over construction
of the Landlord Improvements and the Tenant Improvements shall not
stop liquidated damages (i.e., the Additional Free Rent) from
continuing to accrue until Substantial Completion has been achieved
nor shall it relieve Landlord of any liability for such liquidated
damages; provided, however, that Tenant fulfills its obligation to
proceed diligently and in good faith in pursuing Substantial
Completion; and
(iii) If
Substantial Completion has not been achieved by the date that is
one hundred twenty (120) days after the Scheduled Date, and Tenant
has not previously assumed control over construction, then Tenant
shall have the right to terminate the Lease upon written notice to
Landlord (“Termination Notice”). Notwithstanding the
foregoing, if within three (3) business days after receipt of a
Termination Notice, this Lease shall not terminate and the
parties’ rights and obligations hereunder shall remain in
full force and effect if Landlord provides written notice to Tenant
in which Landlord agrees to pay Tenant all holdover rent and other
amounts payable by Tenant over and above the base rent and
additional rent payable by Tenant as of the expiration date under
the lease(s) for its current locations intended to be vacated upon
completion of the Premises (which payment shall be in addition to
the Additional Free Rent). If Landlord agrees to pay Tenant’s
holdover rent and other amounts pursuant to the immediately
preceding sentence, then upon the request of Tenant, Landlord shall
agree to amend this Lease or provide or written assurances
reasonably satisfactory to Tenant confirming the foregoing
obligations of Landlord.
D. As used
herein, the term “Tenant Delay” shall mean any delay in
the completion of the Landlord Improvements or Tenant Improvements
caused by Tenant, including, without limitation, (i) Tenant's
failure to meet any time deadlines specified in this Lease or to
timely respond to any submittal or request requiring Tenant’s
approval; (ii) change orders, but only to the extent any resulting
delay is agreed upon by Landlord and Tenant and documented in
writing pursuant to Sections 2.K or 3.A; and (iii) Tenant’s
requirements for special work or materials, finishes or
installations that are not readily available to Landlord and which
are delivered at a time that causes a delay (Landlord will endeavor
to identify any such items described in the Outline Plans and
Specifications).
E. Landlord and
Tenant acknowledge that to ensure that the Scheduled Date is
achievable, the following critical milestones need to be reached by
the respective dates provided below:
(i)
Plans and specifications for the Building and the other
Landlord Improvements need to be sufficiently completed by October
24, 2005 to a point that allows Landlord to commence site work by
November 1, 2005;
(ii)
The Final LI Plans, consistent with the Outline Plans and
Specifications described on Exhibit C , need to be
substantially completed and approved by Landlord (such consent not
to be unreasonably withheld, delayed or conditioned) and Ground
Lessor (with respect to code compliance only) on or before December
31, 2005;
(iii) All required
permits from governmental agencies and utilities having
jurisdiction over the Premises (including, but not limited to, the
Metropolitan Sewer District of St. Louis and the applicable fire
protection district) required for construction of the Landlord
Improvements shall be obtained prior to January 31, 2006 (it being
acknowledged that Landlord shall have primary responsibility for
obtaining such permits);
(iv)
Tenant’s interior finish plan needs to be completed by
Tenant and the Project Architect by February 15, 2006, and approved
by Landlord (such consent not to be unreasonably withheld, delayed
or conditioned); and
(v)
All required permits from governmental agencies and utilities
having jurisdiction over the Premises (including, but not limited
to, the Metropolitan Sewer District of St. Louis and the applicable
fire protection district) required for construction of the Tenant
Improvements shall be obtained prior to April 1, 2006 (it being
acknowledged that Landlord shall have primary responsibility for
obtaining such permits).
Landlord and Tenant shall proceed diligently and
in good faith to attempt to complete the aforesaid matters by the
above milestone dates, with each party responding promptly with
comments, changes and feedback. In addition, Landlord and Tenant
shall proceed diligently and in good faith in working with the
Project Architect in developing and agreeing upon the Final LI
Plans and the Final TI Plans. In the event that any of the
aforesaid matters have not been completed by the applicable
milestone date, despite the parties’ diligent and good faith
efforts, the Scheduled Date, Commencement Date and expiration date
of the Lease shall be extended by the number of days the applicable
milestone date has been delayed. The Scheduled Date shall also be
extended by the number of days that construction of Landlord
Improvements or Tenant Improvements is delayed by Force Majeure
Events as defined in Section 29. Notwithstanding the foregoing, in
the event of such delay, Landlord and Tenant shall cooperate with
one another to accelerate the project schedule, to the extent
practicable, to make up for lost time.
5. Rent
Commencement and Base Rent .
A. Tenant's
obligation to pay Rent (as hereinafter defined) under this Lease
shall commence and accrue upon the Commencement Date, except that
Landlord agrees that the first $2,123,000.00 in Base Rent due shall
be abated. All Rent shall be paid to Landlord at the address set
forth for payment of Rent in the Basic Lease Data Section of this
Lease, subject to Landlord's right to change such address from time
to time by notice to Tenant.
B. The annual
base rent (hereinafter referred to as the "Base Rent") payable for
each Lease Year (as hereinafter defined) shall be paid in monthly
installments in the amount(s) determined per Exhibit B and
set forth in the Lease Memorandum, in advance and without any set
off or deduction (except as otherwise provided in Section 45),
beginning on the Commencement Date, and continuing on the first day
of each calendar month during this Lease Term. Base Rent shall be
prorated for any partial calendar month that Tenant leases the
Premises.
C. As used
herein, the term "Rent" shall mean and refer both to the Base Rent
provided hereunder and Additional Rent. The term "Additional Rent"
shall mean any and all payments to be made by Tenant under this
Lease, other than Base Rent, including but not limited to Tenant's
share of Taxes (as described in Section 6), Tenant's share of the
cost of the Tenant Improvements (if owed to Landlord), interest,
late charges, attorney's fees and any amounts or costs expended or
incurred by Landlord in curing or by reason of any default of
Tenant. Additional Rent shall be deemed for the purpose of securing
the collection thereof to be additional rent hereunder, whether or
not the same be designated as such, and shall be due and payable at
the time provided in this Lease, and if no such time is provided it
shall nevertheless be collectible as additional rent on demand or
together with the next succeeding installment of Base Rent,
whichever shall first occur; and Landlord shall have the same
rights and remedies upon Tenant's failure to pay the same as for
the non-payment of the Base Rent.
D. As used
herein, the term "Lease Year" shall mean and refer to the periods
of twelve (12) consecutive calendar months commencing on the
Commencement Date (provided that if the Commencement Date falls on
a date other than the first day of a calendar month, then the first
Lease Year shall consist of the partial calendar month in which the
Commencement Date occurs plus the 12 full calendar months
thereafter), and the remaining Lease Years shall be the successive
periods of 12 full calendar months following the expiration of the
first Lease Year, and continuing until the expiration or
termination of this Lease Term. Notwithstanding the foregoing, the
11 th Lease Year shall mean the 6-month period extending
from the 1 st day following the expiration of the 10
th Lease Year through the date that is the last day of
the 6 th full calendar month thereafter.
E. If Tenant
shall fail to pay to Landlord any Rent or other charge due Landlord
hereunder on the due date thereof, and such failure continues for
two (2) business days following Landlord’s notice to Tenant
of such failure, Tenant shall be assessed a late fee in an amount
equal to five percent (5%) of the delinquent amount owed Landlord.
Notwithstanding the foregoing, Landlord shall not be required to
provide such written notice on more than two (2) occasions during
any consecutive twelve (12) month period. The late charge is a one
time charge that can be added by the Landlord to each applicable
payment and is intended to compensate Landlord for the extra time
and trouble it incurs in dealing with late payments. Pursuant to
Section 15.E of the Lease, the Landlord may charge interest on late
payments, in addition to charging a late fee on such late payments
(such interest compensates Landlord for money that Landlord could
have earned on Tenant's payment if Tenant's payment had been paid
when it was due).
A. As provided
in further detail in Section 50 hereof, in connection with
Landlord’s commitment under this Lease to construct the Road
Improvements, Landlord intends to seek municipal financing benefits
under the Missouri Transportation Development District Act
(“TDD”) and/or other economic development programs to
assist Landlord and St. Louis County in the funding of the Road
Improvements. Tenant agrees to cooperate with Landlord’s
efforts to obtain such benefits, subject to the provisions of
Section 50. As part of Landlord’s efforts to obtain such
benefits, and as part of Tenant’s cooperation obligations in
this Section A and in Section 50, Landlord and Tenant agree to the
provisions of Sections 6.B through 6.J below.
B. For the tax
years 2007 through 2016, Tenant shall pay to Landlord, as
additional rent, fifty percent (50%) of the real and personal
property Taxes (defined below) that would otherwise be payable to
each taxing jurisdiction had the Premises and Tenant’s
personal property in the Premises not otherwise been exempt from
taxation using as the basis for such calculation either the
assessed value of the Premises as determined by the St. Louis
County Tax Assessor (“Assessor”) (subject to
Tenant’s right to appeal such assessment) or the assessed
value as determined by the appraisal procedure set forth in
subparagraph F below. All such amounts attributable to personal
property taxes shall be timely paid by Landlord to the St. Louis
County Collector of Revenue as a payment in lieu of taxes
(“PILOT”) for distribution to the taxing jurisdictions
in the same manner and in the same proportion as taxes on the
Tenant’s personal property in the Premises would have been
distributed in each year had the Premises not been exempt from
taxation.
C. For tax
years 2017 and beyond, Tenant shall pay to Landlord, as additional
rent, one hundred percent (100%) of the real and personal property
Taxes that would otherwise be payable to each taxing jurisdiction
had the Premises not otherwise been exempt from taxation using as
the basis for such calculation either the assessed value of the
Premises as determined by the Assessor (subject to Tenant’s
right to appeal such assessment) or the assessed value as
determined by the appraisal procedure set forth in subparagraph F
below. At least fifty percent (50%) of all such amounts
attributable to personal property taxes shall be timely paid by
Landlord to the St. Louis County Collector of Revenue as a PILOT
for distribution to the taxing jurisdictions in the same manner and
in the same proportion as taxes on Tenant’s personal property
in the Premises would have been distributed in each year had the
Premises not been exempt from taxation.
D. Landlord
shall apply the above additional rent payments attributable to real
property taxes to TDD assessments or similar assessments against
the Premises. If the Premises is subject to TDD assessments or
similar assessments over and above such additional rent payments,
Landlord shall pay such excess amounts without reimbursement from
Tenant.
E. Commencing
in tax year 2007 and continuing in all subsequent years until the
Ground Lease is terminated, Landlord shall obtain from the St.
Louis County Assessor, as soon as reasonably available, (i) a list
of each taxing jurisdiction within whose boundaries the Property is
situated and the current tax levy of each such taxing jurisdiction;
and (ii) the Assessor’s most recent assessed valuation of the
real and personal property comprising the Premises in accordance
with Article X, Section 4(b) of the Missouri Constitution and
Section 137.115, RSMo, as amended. Landlord shall notify Tenant of
such assessed valuation in writing promptly following
Landlord’s receipt thereof, and shall provide copies of any
supporting documentation provided by the Assessor to Landlord
relating to such valuation.
F. If Tenant
does not agree with the assessed valuation for any particular year,
as determined by the Assessor and provided to Tenant pursuant to
subparagraph D above, and so notifies Landlord in writing by the
deadline for appealing such valuation, Tenant, at Tenant's expense,
may appeal such assessment to the County Board of Equalization and
the State Tax Commission, as applicable, in the manner provided
under Missouri law, and Landlord agrees to lend Tenant all
reasonable cooperation in connection with said contest. Pending
resolution of the contest, Tenant shall have the right to make
payments in respect of Taxes or increases challenged by Tenant
“under protest”. If the term of this Lease terminates
during any time such a contest is pending and, thereafter, such
contest results in a refund, then Tenant shall be entitled to
receive the amount of any such refund to the extent it relates to
the periods preceding such termination of the term of this
Lease.
G. If (i) the
Board of Equalization or the State Tax Commission determines that,
because the Premises is exempt from ad valorem taxation,
they do not have jurisdiction to hear Tenant’s appeal
pursuant to Section 6.F above, or (ii) for any reason the Assessor
has not made available an assessed valuation for the Premises not
later than ten (10) business days prior to the deadline for
appealing valuations in St. Louis County, the following procedures
shall apply:
(1) In each
reassessment year, Landlord and Tenant shall meet in an effort to
negotiate in good faith the assessed valuation of the Premises for
the current and following tax years it being the intent of the
parties to reassess the Premises on the same timeframe as
reassessments are performed in St. Louis County which at the
present time occurs in each odd-numbered year.
(2) If Landlord
and Tenant have not agreed upon the assessed valuation of the
Premises by July 1 of any calendar year, then Landlord and Tenant
shall attempt to agree on a single appraiser to determine the
assessed value of the Premises. If Landlord and Tenant have not
been able to agree on a single appraiser by July 1, then Landlord
and Tenant shall each, by July 15, appoint an appraiser licensed by
the State of Missouri to perform real estate appraisals (each of
whom shall also be a member of the Appraisal Institute carrying the
designation of “M.A.I.”), and, if the personal property
assessment is challenged, a qualified equipment appraiser. Each
party shall notify the other party in writing of the appraiser(s)
appointed pursuant to this subparagraph. If either party fails to
appoint an appraiser by the date specified, the remaining
appraiser(s) shall carry out the duties imposed upon them pursuant
to this subparagraph.
(3) The
appraisers shall, by September 1, examine the Premises and each
render an opinion in writing to each party regarding the assessed
valuation of the Premises, using the same methodology and taking
into account all factors considered by the Assessor of St. Louis
County in his assessment of the same class of property during the
applicable tax year.
(4) If the
appraisals of the Premises prepared by the appointed appraisers are
within ten percent (10%) of the lower appraisal, then the assessed
value of the Premises shall be the average of the two appraisals.
If the appraisals of the Premises prepared by the appraisers are
not within ten percent (10%) of the lower appraisal, and if the
appraisers cannot agree as to the assessed valuation of the
Premises by September 1, then they collectively shall appoint a
licensed real estate appraiser and an additional qualified
equipment appraiser if the personal property assessment is
challenged. The appraisers shall notify each party of their
appointment(s) by October 1. The appraiser(s) appointed under this
paragraph shall, by December 1, render an opinion in writing to
each party regarding the assessed valuation of the respective real
or personal property portion of the Premises. If such appraisers
cannot agree on an assessed valuation, and if the reason for the
appointment of the appraisers is that the Assessor has not made
available an assessed valuation for the Premises for the year in
question, then the third appraiser appointed shall unilaterally
render such an opinion by December 10.
(5) Landlord and
Tenant shall pay the fees and expenses of appraiser(s) appointed by
them pursuant to Section 6.G(2) and shall each pay fifty percent
(50%) of the fees of the appraiser appointed pursuant to Section
6.G(4) incurred by such appraisers in carrying out their duties
under the Ground Lease.
H. Each party
agrees to cooperate in all respects to enable the appraisers to
undertake the duties specified herein within the dates specified.
Nevertheless, if the appraisers appointed pursuant to Section 6.G
above have not determined an assessed valuation by the dates
specified therein, and if the reason for the appointment of the
appraisers is the Board of Equalization or the State Tax Commission
determined that they do not have jurisdiction to hear
Tenant’s appeal as provided above, then the valuation of the
Premises determined by the Assessor pursuant to Section 6.E above
shall be the assessed valuation for such year. However, if the
reason for the appointment of the appraisers is that the Assessor
has not made available an assessed valuation for the Premises for
the year in question, then the opinion of the third appraiser
rendered pursuant to Section 6.E(4) shall govern for purposes of
the payment required pursuant to Section 6.A above.
I.
“Taxes" (as such term is used herein) shall include,
without limitation, any tax, assessment or similar governmental
charge imposed against the Property (including any tax or special
assessment assessed against Landlord's leasehold estate under the
Ground Lease, and any tax or special assessment that Landlord is
obligated to pay pursuant to the terms of the Ground Lease). Taxes,
as herein contemplated, are predicated on the present system of
taxation in the State of Missouri. Therefore, if due to a future
change in the method of taxation, any rent, franchise, use, profit
or other tax shall be levied against Landlord in lieu of any charge
which would otherwise constitute a Tax, such rent, franchise, use,
profit or other tax shall be deemed to be a Tax for the purposes
herein. In the event Landlord is assessed with a Tax which
Landlord, in its sole discretion, deems excessive, Landlord may
(but is not obligated to) challenge said Tax or may defer
compliance therewith to the extent legally permitted.
“Taxes” (as used herein) shall also include any tax,
assessment or similar charge assessed by the Assessor against
Tenant’s personal property situated in the Premises.
Notwithstanding the foregoing, Taxes shall not include income or
other taxes measured or determined based upon Landlord's income, or
on income derived from mortgages or deeds of trust encumbering the
Premises, or on any gain realized by Landlord in connection with
the sale of the Premises (except to the extent the same may be
assessed or levied in substitution for ad valorem real estate
taxes).
J. Tenant's
share of Taxes shall be payable to Landlord in monthly
installments, in advance, due on the first of each month, in an
amount reasonably estimated from time to time by Landlord. Not
later than ninety (90) days following the end of each calendar
year, Landlord shall deliver a statement to Tenant setting forth
Tenant's actual obligation for Taxes for the preceding calendar
year, and the total amount of monthly payments paid by Tenant to
Landlord. In determining Tenant’s obligation for Taxes for
the preceding calendar year, the assessed value as determined by
the Assessor, or the appraised value determined in accordance with
Section 6.G, shall be determinative as to the amount of Taxes due
and payable. In the event Tenant's actual obligation exceeds
Tenant's payments, Tenant shall pay the difference to Landlord on
the date which is the later of: (i) ten (10) days after receipt of
Landlord's statement, or (ii) with the next installment(s) of
Additional Rent due under this Lease after receipt of Landlord's
statement. Conversely, in the event Tenant's total payments exceed
Tenant's actual obligation, Landlord shall credit the overpayment
against the next installment(s) of Rent due under this Lease.
Tenant shall have sixty (60) days from receipt of Landlord’s
statement within which to accept or contest said Landlord’s
statement. Absent written notice from Tenant to Landlord within
such 60-day period, Landlord’s statement shall be deemed
accepted by Tenant and the amount shown thereon shall be paid or
credited by Landlord to Tenant or paid to Landlord by Tenant, as
the case may be. If Tenant makes any objection(s) to
Landlord’s said statement as aforesaid, Landlord or Tenant,
as the case may be, shall pay all non-disputed sums to the other in
the manner set forth above, and Landlord and Tenant promptly
commence good faith negotiations to resolve any remaining
differences between them.
K.
Notwithstanding the foregoing provisions of this Section 6,
Tenant acknowledges that Landlord and Ground Lessor contemplate
establishing an escrow administered by a third party escrowee to
receive and apply the additional rent payments made by Tenant
pursuant to this Section 6. Landlord and Ground Lessor may jointly
notify Tenant in writing that such an escrow has been established,
in which event such notice shall be accompanied by a copy of the
escrow agreement governing such escrow. Such escrow agreement, and
any amendments thereto, shall be subject to the review and approval
of Tenant, not to be unreasonably withheld, conditioned or delayed.
In no event shall the terms of any such escrow agreement materially
expand Tenant’s obligations or diminish Tenant’s rights
under this Section 6. Following Tenant’s receipt of a notice
of the establishment of such an escrow and Tenant’s approval
of the escrow agreement governing such escrow (all pursuant to the
foregoing provisions of this Section 6.K), Tenant agrees to make
the payments required under this Section 6 to the third party
escrowee designated by Landlord and Ground Lessor in such notice.
If such escrow is established and the additional rent payments
under this Section 6 are made to such escrow pursuant to this
Section 6.K, Landlord and Tenant agree that neither of them may
thereafter change the manner in which Tenant’s additional
rent payments under this Section 6 are made, except pursuant to a
written agreement executed by Landlord and Ground Lessor and
reasonably acceptable to Tenant.
7.
Common Areas
.
So long as Tenant is leasing all of
the space in the Building, Tenant shall have the exclusive right to
use the entire Premises, subject to the provisions of this Lease
and subject to the rights of access of Landlord under this Lease.
If, however, Tenant exercises any of its “give back
rights” under this Lease, then Landlord shall have the right
to reasonably designate “Common Areas”, which shall
mean all areas, space, facilities, equipment and signs made
available by Landlord in the Building or on the Property for the
common and joint use and benefit of Tenant and other tenants and
permittees of Landlord, and their respective employees, agents,
subtenants, concessionaires, licensees, customers, and other
invitees, and may include the sidewalks, parking areas, driveways,
yard area, landscaped areas, lobbies, restrooms, stairs, ramps,
elevators, exits and/or service corridors, to the extent not
contained within any area exclusively appropriated for the use of
any occupant. If Common Areas are designated by Landlord, then
Landlord also reserves the right to impose reasonable rules and
regulations relating to use of the Common Areas; to construct,
maintain and operate lighting and other facilities, equipment and
signs on all of the Common Areas; and to close temporarily all or
any portion of the Common Areas for the purpose of making repairs
or changes thereto. If Common Areas are designated by Landlord,
Tenant is hereby given a license (in common with all others to whom
Landlord has or may hereafter grant rights) to use, during the
Lease Term, the Common Areas as they may now or at any time during
the Lease Term exist; provided, however, that if the size, location
or arrangement of such Common Areas or the type of facilities at
any time forming a part thereof are changed or diminished, Landlord
shall not be subject to any liability therefor, nor shall Tenant be
entitled to any compensa-tion or diminution or abatement of Rent
therefor, nor shall such change or diminution of such areas be
deemed a constructive or actual eviction.
8. Landlord's
Repairs and Services. Throughout
the Term, Landlord shall be responsible for providing the following
services at Landlord’s sole cost and expense which expenses
shall not be included in the calculation of Additional Rent
hereunder: all exterior building repairs (including sub-surface
water penetration), maintenance and replacement of roof, roofing
systems, exterior walls, windows, structural members, footings and
foundations, floors, gutters and downspouts, trunk utility lines
(until accepted for dedication by applicable utility companies),
sidewalks and curbs and parking facilities (excepting any damage
caused by the negligence or willful misconduct of Tenant or
Tenant's employees, agents or invitees). If Tenant observes a need
for any repairs or maintenance required to be performed by Landlord
under this Lease, it shall promptly notify Landlord. In the event
that Tenant gives back space to Landlord pursuant to Section 40,
Landlord may have additional responsibilities to provide services
as described in Sections 40 and 51.
9. Services
and Utilities . Subject to
Section 9.E below, throughout the Term, Tenant shall be responsible
for providing the following items at its sole cost and
expense:
A. Landscaping,
snow removal, trash pick up and collection, and any other outside
maintenance not included by the Landlord.
C. Utilities,
including HVAC and utility services used by Tenant at the Premises,
such as electricity, gas, water and sewer. Tenant shall contract
directly with the utility companies for all utility services it
requires, and Landlord shall install separate meters for the
Premises to measure Tenant's usage of such services. Except to the
extent utility interruptions occur as a result of the negligence or
willful misconduct of Landlord, Landlord shall not be liable for
the quality, quantity, failure or interruption of utility services
to the Premises, nor shall any interruption in utility services
affect Tenant's obligations to pay Rent hereunder. In the event a
utility interruption occurs due to Landlord’s negligence or
willful misconduct, and as a result thereof, the Premises becomes
untenantable (meaning that Tenant is unable to use the Premises in
the normal course of its business) for more than three (3)
consecutive business days after receipt of notice (which may be
verbal if communicated to Landlord's property manager for the
Building) from Tenant, Base Rent shall abate on a per diem basis
for each day after such three (3) business day period during which
the Premises remains untenantable.
D. Interior
maintenance including inside surfaces, ceilings, doors, and
lighting, mechanical, electrical and plumbing systems.
E. In the event
that Tenant gives back space to Landlord pursuant to Section 40,
there may be modifications to this Section made pursuant to a
written amendment to this Lease signed by Landlord and Tenant as
required by Section 40.
F. Tenant shall
have access to the Premises on a twenty-four (24) hours per day,
seven (7) days per week basis.
10.
Insurance .
A. Throughout
the Term, Landlord will maintain (a) a so called "all-risk"
property insurance policy covering the Property (at its full
replacement cost) including such other charges deemed necessary by
the Landlord, but excluding Tenant's personal property, with a
deductible which will not exceed $250,000 and (b) commercial
general public liability insurance covering Landlord for claims
arising out of liability for bodily injury, death, personal injury,
advertising injury and property damage occurring in and about the
Property and otherwise resulting from any acts and operations of
Landlord, its agents and employees, with minimum limits of
$2,500,000 per occurrence and $2,500,000 general aggregate and (c)
rent loss insurance, with limits that are required by any lender(s)
of Landlord, or as are otherwise reasonably determined by Landlord
(collectively, “Landlord’s Policies”). All
Landlord's Policies will (a) be issued by an insurance company with
a Best rating of A-:VIII or better and otherwise reasonably
acceptable to Tenant and will be licensed to do business in the
state where the Premises is located; (b) provide that said
insurance will not be canceled or materially modified unless 30
days' prior written notice will have been given to Tenant and (c)
otherwise be in such form, and include such coverage’s, as
Tenant may reasonably require. Landlord will provide Certificates
of Insurance, in a form reasonably acceptable to Tenant, evidencing
said Landlord's Policies, to Tenant upon commencement of the Lease
and renewals thereof will be delivered at least 10 days prior to
the expiration of each Policy.
B. Tenant will
purchase, at its own expense, and keep in force at all times during
this Lease (a) "all-risk" property insurance policy covering
Tenant's personal property and all tenant improvements, at its full
replacement cost, with a deductible that will not exceed $250,000
and (b) commercial general liability insurance, including personal
injury and property damage, in the amount of not less than
$2,500,000 per occurrence and $2,500,000 general aggregate, and (c)
comprehensive automobile liability insurance covering Tenant
against any losses arising out of liability for personal injuries
or deaths of persons and property damage occurring in or about the
Premises or Property in the amount of not less than $1,000,000,
combined single limit (collectively, “Tenant's
Policies”). The Tenant's Policies will name Landlord,
Landlord's property manager, Landlord's lender and any party
holding an interest to which this Lease may be subordinated as
additional insureds. All Tenant's Policies will (a) be issued by an
insurance company with a Best rating of A-:VIII or better and
otherwise reasonably acceptable to Landlord and will be licensed to
do business in the state where the Premises is located; (b) provide
that said insurance will not be canceled or materially modified
unless 30 days' prior written notice will have been given to
Landlord and (c) otherwise be in such form, and include such
coverage’s, as Landlord may reasonably require. Tenant will
provide Certificates of Insurance, in a form reasonably acceptable
to Landlord, evidencing said Tenant's Policies, to Landlord upon
commencement of the Lease and renewals thereof will be delivered
prior to the expiration of each Policy.
C. Both
Landlord and Tenant will purchase and maintain, throughout the
Term, workers' compensation insurance per the applicable state
statutes covering all its employees.
D. To the
extent permitted by law, and without affecting the coverage
provided by insurance required to be maintained hereunder, Landlord
and Tenant each waive any right to recover against the other, and
any right to recover against the property manager for the Property,
or against the officers, directors, shareholders, partners, joint
venturers, employees, agents, managers, clients or business
visitors of either party for (a) damages to property, (b) damages
to all or any portion of either or both of the Premises and the
Property, (c) claims arising by reason of the foregoing, to the
extent such damages and claims are insured against, or required to
be insured against, by Landlord or Tenant under this Lease or (d)
claims paid by Landlord or Tenant's workers' compensation carrier.
This provision is intended to waive, fully and for the benefit of
each party, any rights and/or claims which might give rise to a
right of subrogation by any insurance carrier. The coverage
obtained by each party pursuant to this Lease will include, without
limitation, a waiver of subrogation by the carrier which conforms
to the provisions of this section.
E. In the event
Tenant's use of the Premises shall result in an increase in
Landlord's insurance premiums, Tenant shall pay to Landlord within
fifteen (15) days after demand, as Additional Rent, an amount equal
to such increase in insurance, provided this Section 10.E shall not
be applicable so long as Tenant is only using the Premises for
general office use.
11. Damage
or Destruction .
A. If at any
time prior to the Commencement Date, the Premises are damaged or
destroyed by casualty Landlord shall give Tenant written notice
("Landlord's Pre-Commencement Repair Notice") within thirty (30)
days after the damage occurs advising Tenant whether or not, in
Landlord's reasonable opinion, the damages from such casualty will
delay the Substantial Completion Date by more than one hundred
eighty (180) days beyond the then-current scheduled Substantial
Completion Date. If Landlord’s Pre-Commencement Repair Notice
states that in Landlord's reasonable opinion, the damages from such
casualty will so delay the then-current scheduled Substantial
Completion Date, then (i) Landlord may terminate this Lease,
provided Landlord notifies Tenant of such termination within the
same 30-day period that Landlord’s Pre-Commencement Repair
Notice is to be given, and (ii) if Landlord has not elected to so
terminate this Lease, Tenant may terminate this Lease by giving
Landlord written notice thereof within thirty (30) days following
the its receipt of Landlord’s Pre-Commencement Repair Notice.
If at any time after the Commencement Date, the Premises are
damaged or destroyed by casualty Landlord shall give Tenant written
notice ("Landlord's Post-Commencement Repair Notice") within thirty
(30) days after the damage occurs advising Tenant whether or not,
in Landlord's reasonable opinion, the damages from such casualty
can be repaired within one hundred eighty (180) days from the date
of said casualty. If Landlord’s Post-Commencement Repair
Notice states that in Landlord's reasonable opinion, the damages
from such casualty cannot be repaired within such 180-day period,
then (i) Landlord may terminate this Lease, provided Landlord
notifies Tenant of such termination within the same 30-day period
that Landlord’s Post-Commencement Repair Notice is to be
given, and (ii) if Landlord has not elected to so terminate this
Lease, Tenant may terminate this Lease by giving Landlord written
notice thereof within thirty (30) days following the its receipt of
Landlord’s Post-Commencement Repair Notice.
B. In the event
that a casualty occurring after the Commencement Date renders the
Premises untenantable or prevents access to the Premises for any
period, the Rent due for such period shall be abated; and in the
event only a portion of the Premises is rendered untenantable and
access to the Premises is not prevented, Tenant's Rent shall be
equitably abated in proportion to that portion of the Premises
which is rendered untenantable, provided that no abatement shall be
allowed pursuant to this sentence unless the conditions making the
Premises fully or partially untenantable exist for at least three
(3) consecutive business days. Abatement shall continue until
Landlord has substantially completed its repair and restoration
obligations pursuant to Section 11.D or Section 11.E below,
whichever is applicable.
C. If this
Lease is not terminated by either party due to a pre-Commencement
Date casualty pursuant to the terms of Subsection A above, this
Lease shall remain in full force and effect, and Landlord shall
proceed with all due diligence to repair, restore and/or rebuild
and complete the Landlord Improvements and the Tenant Improvements.
Notwithstanding the foregoing, if Landlord does not substantially
complete such obligations under this Section 11.C
(“Landlord’s Section 11.C Restoration
Obligations”) within one hundred eighty (180) days beyond the
date that was the scheduled Substantial Completion Date on the date
of the casualty, plus any additional days that such construction is
delayed due to force majeure (as defined in Section 29), Tenant
shall have the right to assume control over Landlord’s
Section 11.C Restoration Obligations, upon thirty (30) days prior
written notice to Landlord. In the event that Tenant elects to
assume control over Landlord’s Section 11.C Restoration
Obligations, (i) Tenant shall diligently and in good faith pursue
substantial completion of Landlord’s Section 11.C Restoration
Obligations, (ii) all insurance proceeds for such restoration shall
be made available to Tenant for such purpose, and (iii) Landlord
shall be liable for all costs reasonably incurred by Tenant (over
and above available insurance proceeds) in undertaking such
restoration.
D. If this
Lease is not terminated by either party due to a post-Commencement
Date casualty pursuant to the terms of Subsection A above, this
Lease shall remain in full force and effect, and Landlord shall
proceed with all due diligence to repair and restore the Premises
(except as otherwise provided in this Lease) substantially to the
condition thereof immediately prior to such damage or destruction
(exclusive of the Tenant Improvements and other tenant improvements
made by Tenant, Tenant's trade fixtures, equipment, decorations,
signs, inventory and contents), subject to the terms, conditions,
requirements and provisions hereinafter set forth in this Section
11. Tenant shall be solely responsible for restoring the Tenant
Improvements and other leasehold improvements made by Tenant.
Notwithstanding the foregoing, if Landlord does not substantially
complete its restoration obligations under this Section 11.D
(“Landlord’s Section 11.D Restoration
Obligations”) within two hundred forty (240) days from the
date of the subject casualty, plus any additional days that such
restoration is delayed due to force majeure (as defined in Section
29), Tenant shall have the right to assume control over
Landlord’s Section 11.D Restoration Obligations, upon thirty
(30) days prior written notice to Landlord. In the event that
Tenant elects to assume control over Landlord’s Section 11.D
Restoration Obligations, (i) Tenant shall diligently and in good
faith pursue substantial completion of Landlord’s Section
11.D Restoration Obligations, (ii) all insurance proceeds for such
restoration shall be made available to Tenant for such purpose, and
(iii) Landlord shall be liable for all costs reasonably incurred by
Tenant (over and above available insurance proceeds) in undertaking
such restoration.
E.
Notwithstanding the provisions of Sections 11.A and 11.D
above, if during the final year of the Lease Term, (i) the Premises
are damaged or destroyed by casualty, and (ii) at least one third
(1/3 rd ) of the Premises are made untenantable as a
result of such casualty, Landlord shall give Tenant written notice
("Landlord's Final Year Repair Notice") within five (5) business
days after the damage occurs, advising Tenant whether or not, in
Landlord's reasonable opinion, the damages from such casualty can
be repaired within an amount of time from the date of said casualty
equal to or less than ten percent (10%) of the number of days
remaining in the Lease Term from the date of said casualty. If
Landlord’s Final Year Repair Notice states that in Landlord's
reasonable opinion, the damages from such casualty cannot be
repaired within such 10% time frame, then (i) Landlord may
terminate this Lease, provided Landlord notifies Tenant of such
termination within the same 5-business day period that
Landlord’s Final Year Repair Notice is to be given, and (ii)
if Landlord has not elected to so terminate this Lease, Tenant may
terminate this Lease by giving Landlord written notice thereof
within five (5) business days following the its receipt of
Landlord’s Repair Notice. However, if Landlord elects to so
terminate this Lease during the final year of the Lease Term,
Tenant may nullify such termination if Tenant has one or more
renewal options remaining and elects to exercise said option within
fifteen (15) days after Landlord’s termination notice. If
this Lease is not terminated by either party pursuant to the terms
of this Section 11.E, this Lease shall remain in full force and
effect, and Landlord shall proceed with all due diligence to repair
and restore the Premises substantially to the condition thereof
immediately prior to such damage or destruction (exclusive of the
Tenant Improvements and other tenant improvements made by Tenant,
Tenant's trade fixtures, equipment, decorations, signs, inventory
and contents) subject to the terms, conditions, requirements and
provisions hereinafter set forth in this Section 11. Tenant shall
be solely responsible for restoring the Tenant Improvements and
other leasehold improvements made by Tenant. However, if Landlord
does not substantially complete its restoration obligations under
this Section 11.E (“Landlord’s Section 11.E Restoration
Obligations”) within such 10% time frame, plus any additional
days that such restoration is delayed due to force majeure (as
defined in Section 29), Tenant shall have the right to terminate
this Lease upon written notice to Landlord. Notwithstanding the
foregoing provisions of this Section 11.E, if pursuant to the
foregoing provisions of this Section 11.E, Tenant has nullified
Landlord’s termination of this Lease by exercising one of
Tenant’s renewal options, the provisions of Section 11.D
shall apply to Landlord’s and Tenant’s respective
restoration obligations.
F. If any
damage or destruction of the Premises is covered by insurance, then
Tenant and Landlord shall fully cooperate in filing all necessary
proofs of claim with insurance companies. If pursuant to Section
11.C, 11.D or 11.F, Landlord is obligated to perform
Landlord’s Section 11.C Restoration Obligations,
Landlord’s Section 11.D Restoration Obligations or
Landlord’s Section 11.E Restoration Obligations, as
applicable, and if pursuant to Section 11.D or 11.F, Tenant is
required to restore the Tenant Improvements and its other leasehold
improvements, then all proceeds of insurance shall be deposited
into escrow with a title insurance company or other construction
escrow disbursing agent reasonably satisfactory to Landlord and
Tenant and such insurance proceeds may only be used to pay for the
costs of restoration, with any unused proceeds for Landlord’s
Section 11C Restoration Obligations, Landlord’s Section 11.D
Restoration Obligations or Landlord’s Section 11.E
Restoration Obligations, as applicable, being payable to Landlord
and any unused proceeds for restoration of the Tenant Improvements
being payable to Tenant. Insurance proceeds payable with respect to
property that is to be repaired or replaced shall be made available
to the party that is responsible for repairing or replacing said
property, provided that the disbursement of such insurance proceeds
shall be subject to a disbursement agreement reasonably acceptable
to Landlord, Tenant and the title company holding the insurance
proceeds. Notwithstanding the foregoing, if the documents governing
Landlord’s financing of the Premises require that the lender
control the disbursement of the insurance proceeds for
Landlord’s Section 11.C Restoration Obligations,
Landlord’s Restoration Section 11.D Obligations or
Landlord’s Section 11.E Restoration Obligations, as
applicable, then such documents shall govern such disbursement of
such proceeds, provided they are reasonable and require the
insurance proceeds for Landlord’s Section 11.C Restoration
Obligations, Landlord’s Section 11.D Restoration Obligations
or Landlord’s Section 11.E Restoration Obligations, as
applicable, be applied toward completing the applicable restoration
obligations of Landlord.
G. In the event
either party should elect to terminate this Lease pursuant to
Section 11.A above or Section 11.E above, as applicable, the
effective date of such termination shall be the later of: (i) the
date of said casualty, or (ii) the date Tenant vacates the Premises
in the event that Tenant continues to use part of the Premises
after the date of the casualty. In the event this Lease is
terminated, the parties shall have no further obligations to the
other, except for those obligations accrued through the effective
date of such termination and except for obligations which survive
termination of this Lease as per Section 33.O; and, upon such
termination, Tenant shall immediately surrender possession of the
Premises to Landlord.
H.
Notwithstanding any provision of this Section 11 to the
contrary, if Landlord reasonably determines that the proceeds from
Landlord’s insurance available for performing
Landlord’s Section 11.C Restoration Obligations, or
Landlord’s Section 11.D Restoration Obligations or
Landlord’s Section 11.E Restoration Obligations, as
applicable, are insufficient by more than Two Hundred Fifty
Thousand Dollars ($250,000.00) to pay the costs of such Obligations
(excluding any applicable deductible), whichever applicable, and
such shortfall is not attributable to Landlord’s failure to
discharge its obligations under Section 10 of this Lease, Landlord
shall have the right to terminate this Lease upon written notice to
Tenant given within thirty (30) days after the damage occurs, which
notice shall state the amount that such insurance proceeds are
insufficient; provided, however, that Tenant shall have the right
to nullify such termination if Tenant agrees to pay the amount of
such insufficient proceeds in excess of $250,000.00. If Tenant so
nullifies Landlord’s termination, Landlord shall be required
to supplement its insurance proceeds referenced in Section 11.F by
$250,000.00, and Tenant shall be required to supplement
Landlord’s insurance proceeds referenced in Section 11.F by
the amount of the insufficiency in excess of $250,000.00 (as
provided in Landlord’s termination notice).
A. Landlord may
close the Property, or portions thereof, in emergency situations as
reasonably determined by Landlord, and during periods of general
construction, during which times admittance may be gained only
under such reasonable regulations as may be prescribed by
Landlord.
B. Landlord may
enter the Premises at reasonable times following reasonable advance
notice to Tenant, to examine or show the same to existing or
prospective fee owners or third party tenants, ground lessors,
mortgagees, or Landlord's insurance carriers and by request of any
governmental agency.
C. Upon
reasonable advance written notice to Tenant (except in an
“Emergency” when no notice shall be required), Landlord
may enter the Premises for inspection purposes, or perform any
maintenance, repairs, replacements or alterations for the benefit
of the Property or any other tenant. To this end, Landlord retains
such license or easement in and through the Premises as shall be
reasonably required by Landlord. Landlord retains an easement above
the drop ceiling, below the floor and inside the walls of the
Premises to install, repair, operate and replace such pipes, duct
work, conduits, utility lines, wires and other items as Landlord
may install from time to time to serve the Building and other
tenants in the Building (if applicable). For purposes of this
Lease, an “Emergency” shall mean a condition that
creates an immediate threat of material damage to person or
property. Except in the event of an Emergency, all entries onto the
Premises by Landlord shall be made in accordance with a schedule
that Landlord and Tenant have approved prior to such entry.
Landlord shall use good faith, reasonable efforts to cause all
inspection and maintenance work to be performed in such a manner as
to minimize any interference with Tenant’s business at the
Premises.
D. Landlord may
temporarily close portions of the Property or may temporarily
suspend certain building services to facilitate the proper
maintenance and repair of the Property; provided however, that
except in the case of an Emergency, any temporary closure of any
portion of the Premises or temporary suspension of building
services to facilitate the proper maintenance and repair of the
Property shall be coordinated in advance with Tenant to minimize
any disruption to Tenant’s operations at the
Premises..
E. Landlord has
established certain Rules and Regulations with respect to the
Property, as more fully set forth on Exhibit D , attached
hereto and made a part hereof. Landlord reserves the right to
establish additional Rules and Regulations, or make amendments
thereto, from time to time if, in Landlord's reasonable opinion,
Landlord determines the same to be necessary for the orderly
operation of the Property. Tenant shall comply with such Rules and
Regulations; provided they are applied in a manner that does not
unfairly discriminate against Tenant.
F.
Notwithstanding any provision of this Section 12 to the
contrary, Tenant shall have the right to have its representative
accompany Landlord during any entry by Landlord or its designees on
the Premises (except in an Emergency, as to which entry may occur
if a representative of Tenant is not then present), and access to
any special security areas created by Tenant shall comply with all
applicable laws and regulations of any governmental authority
having jurisdiction over such areas, including without limitation,
the regulations of the United States Food and Drug Administration
and Drug Enforcement Agency, and shall occur only with a
representative of Tenant present at all times and shall be subject
to such regulations.
13. Tenant's
Alterations and Repairs .
A. Except for
Landlord's obligations under Section 8, Tenant shall keep the
Property in good repair, without expense to Landlord; and, subject
to the provisions of Sections 11 (regarding casualty) and 19
(regarding condemnation), upon the termination of this Lease,
Tenant shall return the Property to Landlord, together with all of
Tenant's keys, in the same condition as when received, reasonable
wear and tear excepted. In the event Tenant should fail to make any
repairs that Tenant is required to make pursuant to the terms of
this Lease promptly and adequately within thirty (30) days after
Landlord's written demand, Landlord may make such repairs,
whereupon Tenant shall reimburse to Landlord the cost of such
repairs, as Additional Rent, payable within ten (10) business days
after Tenant's receipt of Landlord's invoice therefor; provided,
however, that if the nature of Tenant's default is such that more
than thirty (30) days are reasonably required to cure, then such
default shall be deemed to have been cured if Tenant commences such
performance within said 30-day period and thereafter diligently
completes the required action within a reasonable time.
Notwithstanding the foregoing, in the event Tenant should fail to
make any repairs that Tenant is required to make pursuant to the
terms of this Lease and such repairs are necessary to abate an
Emergency, Landlord shall have the right to make such repairs
without the obligation to give Tenant the above notice and cure
rights, and Tenant shall be responsible for the cost thereof.
Tenant shall not allow any waste or misuse of the Premises or the
Building or of the utilities therein; and, in the event thereof,
Tenant shall pay for all loss, expense and damage suffered by
Landlord caused by any such waste or misuse by Tenant.
B. Tenant may
make alterations to the Premises, subject to Landlord's approval,
not to be unreasonably withheld, delayed or conditioned. Tenant may
make alterations costing not more than one hundred thousand dollars
($100,000) in the aggregate per year, without Landlord's consent,
provided such alterations do not affect systems, structure or
exterior appearance of the Building, and provided Tenant advises
Landlord in writing what changes are
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