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OFFICE LEASE

Office Lease Agreement

OFFICE LEASE 

 | Document Parties: LADENBURG THALMANN FINANCIAL SERVICES INC | FROST REAL ESTATE HOLDINGS, LLC You are currently viewing:
This Office Lease Agreement involves

LADENBURG THALMANN FINANCIAL SERVICES INC | FROST REAL ESTATE HOLDINGS, LLC

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Title: OFFICE LEASE
Governing Law: Florida     Date: 4/2/2007
Industry: Investment Services     Law Firm: Greenberg Traurig, P.A.    

OFFICE LEASE 

, Parties: ladenburg thalmann financial services inc , frost real estate holdings  llc
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Exhibit 10.1

OFFICE LEASE

1. Basic Lease Provisions.

 

1.1.

 

Parties : This Lease is made and entered into as of the 30 th day of March, 2007 (the” Effective Date”) by and between FROST REAL ESTATE HOLDINGS, LLC, a Florida limited liability company (“Landlord”), and LADENBURG THALMANN & CO. INC., a Delaware corporation (“Tenant”).

 

 

 

 

 

1.2.

 

Premises: Suite Number 1400 on the 14 th Floor of the Building (comprising 7,639 rentable square feet (the “14 th Floor Space”), Suite Number 1250 on the 12 th Floor of the Building (comprising 4,096 rentable square feet) (the “12 th Floor North Space”), and Suite Number 1280 on the 12 th Floor of the Building (comprising 4,096 rentable square feet) (the “12 th Floor South Space”), all as more particulary shown on Exhibit “A” attached hereto (together, the “Premises”).

 

 

 

 

 

1.3.

 

Rentable Square Footage of the Premises: 15,831 square feet. Landlord and Tenant stipulate and agree that the rentable square footage of the Premises is correct and is not subject to re-calculation.

 

 

 

 

 

1.4.

 

Building Address: 4400 Biscayne Boulevard, Miami, Florida 33137 (the “Building”).

 

 

 

 

 

1.5.

 

Permitted Use: General office use, subject to the requirements and limitations contained in Section 6.

 

 

 

 

 

1.6.

 

Term: Five (5) years.

 

 

 

 

 

1.7.

 

Commencement Date: The commencement date is February 1, 2007 (the Commencement Date”).

 

 

 

 

 

1.8.

 

Base Rent: : Tenant shall make rent payments under this Lease on a “gross” basis (the “Rent”), plus applicable sales tax as follows:

 

 

 

 

 

 

 

 

 

Lease Period in Months

 

Annual Base Rent

 

Monthly Base Rent

1-12

 

$

390,700.00

 

 

$

32,558.33

 

13-24

 

$

470,982.00

 

 

$

39,248.50

 

25-36

 

$

492,176.00

 

 

$

41,014.66

 

37-48

 

$

514,324.00

 

 

$

42,860.33

 

49-60

 

$

537,468.00

 

 

$

44,789.00

 

 

 

1.9.

 

Base Rent Paid Upon Execution: $32,558.33 for the first full month of the Term, plus sales tax of $2,279.08.

 

 

 

 

 

1.10.

 

Security Deposit: $0.

 

 

 

 

 

1.11.

 

Sales Taxes. Tenant shall pay to Landlord with the monthly payment of Rent all applicable sales taxes imposed directly upon such rent or this Lease.

 

 

 

 

 

1.12.

 

Number of Parking Spaces : Included within Tenant’s Rent is the right to the use of Fifty (50) unreserved spaces and two (2) reserved parking spaces in the garage serving the Premises and otherwise in accordance with the terms of Section 24 hereof. Tenant shall also have the right to use up to three (3) additional reserved parking spaces by notifying Landlord in writing that Tenant elects to use such additional spaces. Tenant shall pay Landlord $250.00 per month per space (plus sales tax) for each additonal space used by Tenant.

 

 

 

 

 

1.13.

 

Real Estate Brokers:      Landlord: None.

                                  Tenant: None.

 

1.14.

 

Attachments to Lease: Exhibit A — “Premises”, Exhibit B — “Rules and Regulations” and Schedule 1 “Janitorial Services”.

 

 

 

 

 

1.15.

 

Addresses for Notices:

 

 

 

Landlord:

 

Frost Real Estate Holdings, LLC

 

 

4400 Biscayne Boulevard

 

 

Suite #660

 

 

Miami, Florida 33137

 

 

Attention: Steven D. Rubin

 

 

 

With Copy To :

 

Greenberg Traurig, P.A.

 

 

1221 Brickell Avenue

 

 

Miami, Florida 33131

 

 

Attention: Michael T. Lynott, Esq .

 

 

 

Tenant :

 

Ladenburg Thalmann & Co. Inc.

 

 

153 East 53 rd Street

 

 

49 th Floor

 

 

New York, New York 10022

 

 

Attention: Joseph Giovanniello, Jr., Senior Vice President

 

 

and General Counsel

 

 

 

With Copy To:

 

Akerman Senterfitt

 

 

1 SE 3 rd Avenue

 

 

28 th Floor

 

 

Miami, Florida 33131

 

 

Attention: Anthony Casareale, Esq.

 

 

1.16.

 

Interpretation. The Basic Lease Provisions shall be interpreted in conjunction with all of the other terms and conditions of this Lease. Other terms and conditions of this Lease modify and expand on the Basic Lease Provisions. If there is a conflict between the Basic Lease Provisions and the other terms and conditions of this Lease, the other terms and conditions shall control.

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2. Premises.

      2.1. Lease of Premises . Landlord hereby leases the Premises to Tenant, together with the right to use any portions of the Project, as hereinafter defined, that are designated by Landlord for the common use of tenants and others (the “Common Areas”). The “Project” consists of the building of which the Premises is a part (the “Building”), the Common Areas, the land upon which the same are located, along with all other buildings and improvements thereon or hereunder, including all parking facilities.

      2.2. Acceptance. Tenant agrees to accept the Premises in its “as-is” condition existing as of the Commencement Date.

3. Term. This Lease shall be in full force and effect from the Effective Date. The Term and Commencement Dates of this Lease are as specified in Sections 1.6 and 1.7. If for any reason Landlord cannot deliver possession of the Premises to Tenant on the Commencement Dates, Landlord shall not be subject to any liability therefore, nor shall such failure affect the validity of this Lease or the obligations of Tenant hereunder; provided, however, in such a case, the Commencement Dates shall be extended to the date Landlord delivers possession of the Premises to Tenant.

          If Tenant occupies the Premises prior to the Commencement Dates, such occupancy shall be subject to all provisions of this Lease (other than the obligation to pay Rent) and such occupancy shall not change the Commencement Dates or the date the Lease will terminate. Landlord acknowledges and agrees that Tenant shall have the right to occupy the Premises on the Effective Date. Prior to entering the Premises, Tenant shall obtain all insurance it is required to obtain by the Lease and shall provide certificates of said insurance to Landlord. Tenant shall coordinate its move in with Landlord’s building manager, and such move in shall be made in compliance with all terms and conditions of this Lease and the Rules and Regulations attached hereto.

4. Rent.

      4.1. Rent. Tenant shall pay Landlord the Rent for the Premises on the first day of each calendar month during the Term of this Lease in advance, without notice or demand, deduction, abatement or offset (unless expressly set forth in this Lease). At the time Tenant executes this Lease it shall pay to Landlord the advance Rent described in Section 1.9. Base Rent for any partial month during the Term shall be prorated. Rent and all other amounts payable to Landlord hereunder shall be payable to Landlord in lawful money of the United States and Tenant shall be responsible for delivering said amounts to Landlord at the address stated herein or to such other persons or to such other places as Landlord may designate in writing . The Rent payments to be made by Tenant hereunder are made on a “gross” basis and, except as may be expressly stated otherwise herein, Tenant shall not be required to make any additional payments to Landlord for Tenant’s share of any real estate taxes on the Premises or the Building, for any insurance on the Premises or the Building, for any common area maintenance charges, for the use of the cafeteria within the Building, for the use of the furniture located within the Premises, for the use of the 50 unreserved and 2 reserved parking spaces provided to Tenant herein or for the services to be provided by Landlord under Section 11.1 of this Lease.

      4.2 Tenant acknowledges and agrees that Tenant and its employees shall have the right to use the existing cafeteria located within the Building for so long as such cafeteria remains open and available. Notwithstanding the foregoing, Tenant expressly acknowledges and agrees that the cafeteria may be shut down by Landlord at any time during the Term of this Lease and that the Landlord has no obligation to provide a cafeteria under the terms of this Lease.

5. Security Deposit. The Security Deposit, if any, shall be delivered to Landlord upon the execution of this Lease by Tenant and held by Landlord without interest as security for the performance of Tenant’s obligations hereunder. Landlord may use all or any portion of the Security Deposit for the payment of any past due Base Rent or other charge or sum due hereunder, to cure any default by Tenant or to compensate Landlord for any loss or damage which Landlord may suffer thereby. Tenant shall within ten (10) days after written demand therefore deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full amount. Landlord shall not be required to keep the Security Deposit separate from its general accounts. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so much thereof as has not heretofore been applied by Landlord, shall be returned to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) at the expiration of the Term hereof, and after Tenant has vacated the Premises. No trust relationship is created herein between Landlord and Tenant with respect to the Security Deposit. The Security Deposit is not an advance payment of any kind or a measure of Landlord’s damages in the event of Tenant’s default. Tenant hereby waives the provisions of any law which is inconsistent with this Section 5.

6. Use.

      6.1. Use. The Premises shall be used and occupied only for the Permitted Use and for no other purpose. No exclusive use has been granted to Tenant hereunder.

      6.2. Compliance with Law. Landlord warrants to Tenant that, to the best of Landlord’s knowledge, the Premises, in the state existing on the Effective Date, but without regard to alterations or improvements to be made by the Tenant or the use for which Tenant will occupy the Premises, does not violate any covenants or restrictions of record, or any applicable building code, regulation or ordinance in effect on such date and may be used for office purposes. Tenant shall, at Tenant’s sole expense, promptly comply with all laws, statutes, codes, ordinances, orders, covenants, restrictions or record, rating bureaus or governmental agencies, rules and regulations of any municipal or governmental entity whether in effect now or later, including, the Americans With Disabilities Act and all federal, state and local laws and regulations governing occupational safety and health (“Law(s)”) regarding the operation of Tenant’s business and its particular use, condition, configuration and occupation of the Premises. Tenant shall conduct its business and use the Premises in a lawful manner and shall not use or permit the use of the Premises or the Common Areas in any manner that constitutes waste or a nuisance or shall unreasonably disturb other occupants of the Project. Tenant shall obtain, at its sole expense, any permit or other governmental authorization required to operate its business from the Premises. Landlord shall not be liable for the failure of any other tenant or person to abide by the requirements of this Section or to otherwise comply with applicable Laws, and Tenant shall not be excused from the performance of its obligations under this Lease due to such a failure.

7. Maintenance, Repairs and Alterations.

      7.1. Landlord’s Obligations . Landlord shall keep and maintain in good repair and working order and perform maintenance upon the (a) structural elements of the Building; (b) mechanical (including HVAC), electrical, plumbing and fire/life safety systems serving the Building in general and the Premises (but only to the extent such systems are located outside the interior of the Premises); (c) Common Areas; (d) roof of the Building; (e) exterior windows of the Building; and (f) elevators serving the Building. Landlord shall promptly make repairs for which Landlord is responsible. Tenant expressly waives the benefits of any statute now or hereafter in effect which would otherwise afford Tenant the right to make repairs at Landlord’s expense or to terminate this Lease because of Landlord’s failure to keep the Project in good order, condition and repair.

      7.2. Tenant’s Obligations.

          (a) Subject to the requirements of Section 7.3, Tenant shall, at its sole cost and expense, promptly perform all maintenance and repairs to the Premises that are not Landlord’s express responsibility under this Lease and shall keep the Premises in good condition and repair, reasonable wear and tear excepted. Tenant’s repair and maintenance obligations include, without limitation, repairs to: (a) floor coverings; (b) interior partitions; (c) doors; (d) the interior side of demising walls; (e) electronic, fiber, phone and data cabling and related equipment that is installed by or for the exclusive benefit of Tenant (collectively, “Cable”); (f) supplemental air conditioning units, kitchens, including hot water heaters, plumbing, and similar facilities exclusively serving Tenant; and (g) Alterations. If Tenant fails to keep the Premises in good condition and repair, Landlord may, but shall not be obligated to, make any necessary repairs. If Landlord makes such repairs, Landlord shall bill Tenant for the cost of the repairs as additional rent, and said additional rent shall be payable by Tenant within ten (10) days.

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          (b) On the last day of the Term hereof, or on any sooner termination, Tenant shall remove all Tenant’s Property, as hereinafter defined, Cable and all designated Required Removables, as hereinafter defined, from the Premises and quit and surrender the Premises to Landlord, broom clean, in the same condition as received, ordinary wear and tear and damage which Landlord is obligated to repair hereunder excepted. Tenant shall repair any damage to the Premises occasioned by the installation or removal of Tenant’s Property, Cable and Required Removables. Tenant shall leave the electrical distribution systems, plumbing systems, lighting fixtures, HVAC ducts and vents, window treatments, wall coverings, carpets and other floor coverings, doors and door hardware , millwork, ceilings and other tenant improvements at the Premises in the same condition as when delivered to Tenant, ordinary wear and tear excepted.

      7.3. Alterations and Additions.

          (a) Tenant shall not make any alterations, repairs, additions or improvements or install any Cable (collectively referred to as “Alteration(s)”) in, on or about the Premises or the Project without Landlord’s prior written consent, which may be given or withheld in Landlord’s commercially reasonable discretion. However, Landlord’s consent shall not be required for any Alteration that satisfies all of the following criteria (a “Cosmetic Alteration”): (a) is of a cosmetic nature such as painting, wallpapering, hanging pictures and installing carpeting; (b) is not visible from the exterior of the Premises or the Building; (c) will not affect the base Building; and (d) does not require work to be performed inside the walls or above the ceiling of the Premises. Cosmetic Alterations shall be subject to all the other provisions of this Section 7.3 (other than the obligation to deliver “as built” plans for such Cosmetic Alterations. Prior to starting work, Tenant shall furnish Landlord with plans and specifications; names of contractors that are licensed and insured in the State of Florida and which are reasonably acceptable to Landlord (provided that Landlord may designate specific contractors (at least two per trade) with respect to base Building); required permits and approvals; evidence of contractor’s and subcontractor’s insurance in amounts reasonably required by Landlord and naming Landlord as an additional insured; and any security for performance in amounts as may be reasonably required by Landlord. Changes to the plans and specifications must also be submitted to Landlord for its approval. Alterations shall be constructed in accordance with all applicable building codes and in a good and workmanlike manner using materials of a quality reasonably approved by Landlord. Upon completion, Tenant shall furnish “as-built” plans for non-Cosmetic Alterations, completion affidavits and full and final waivers of lien. Landlord’s approval of an Alteration shall not be deemed a representation by Landlord that the Alteration complies with Law. If as a result of any Alteration made by Tenant, Landlord is obligated to comply with any Law and such compliance requires Landlord to make any improvement or Alteration to any portion of the Project, as a condition to Landlord’s consent, Landlord shall have the right to require Tenant to pay to Landlord prior to the construction of any Alteration by Tenant, the entire cost of any improvement or Alteration Landlord is obligated to complete by such Law.

          (b) All improvements in and to the Premises, including any Alterations, shall remain upon the Premises at the end of the Term without compensation to Tenant, provided that Tenant, at its expense, in compliance with the National Electric Code or other applicable Laws, shall, on or before the expiration of the Term, remove any Cable. In addition, Landlord, by written notice to Tenant at least thirty (30) days prior to the expiration of the Term, may require Tenant, at its expense, to remove any Alterations that in Landlord’s reasonable judgment are not standard office improvements and are of a nature that would require removal and repair costs that are materially in excess of the removal and repair costs associated with standard office improvements (collectively referred to as “Required Removables”). Tenant shall repair any damage caused by the installation or removal of the Cable and Required Removables. Notwithstanding anything to the contrary contained herein, Tenant shall not be required to remove any improvements located within the Premises on the Commencement Date of this Lease.

          (c) Tenant shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished to or for Tenant at or for use in the Premises, which claims are or may be secured by any mechanic’s or materialmen’s lien against the Premises or the Project, or any interest therein. If Tenant shall, in good faith, contest the validity of any such lien, Tenant shall furnish to Landlord a surety bond satisfactory to Landlord in an amount equal to not less than one and one half times the amount of such contested lien or claim indemnifying Landlord against liability arising out of such lien or claim. Such bond shall be sufficient in form and amount to free the Project from the effect of such lien. In addition, Landlord may require Tenant to pay Landlord’s reasonable attorneys’ fees and costs in participating in such action.

          (d) Tenant expressly acknowledges and agrees that any planned interruption of utility services to the Building during the construction of any Alterations by Tenant and/or its approved contractor(s) must be communicated to Landlord at least 48 hours prior to any such interruption for Landlord’s prior consent and approval.

      7.4. Failure of Tenant to Remove Property. If Tenant fails to remove any of Tenant’s Property as required by Section 7.2 on or before the expiration or earlier termination of this Lease, Landlord may remove and store Tenant’s Property at the expense and risk of Tenant. Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred. If Tenant fails to remove Tenant’s Property from the Premises or storage, within thirty (30) days after notice, Landlord may deem all or any part of Tenant’s Property to be abandoned and title to Tenant’s Property shall vest in Landlord.

8. Insurance.

      8.1. Insurance-Tenant. Tenant shall maintain at all times during the Term of this Lease commercial general liability insurance with coverages acceptable to Landlord, which by way of example and not limitation, protects Tenant and Landlord (as an additional insured) against claims for bodily injury, personal injury and property damage based upon, involving or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount of not less than Two Million Dollars ($2,000,000) per occurrence with an “Additional Insured-Managers and Landlords of Premises Endorsement” and contain the “Amendment of the Pollution Exclusion” for damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Tenant’s indemnity obligations under this Lease. If, in the commercially reasonable opinion of the Landlord, the amount of public liability insurance coverage at any time during the Term is not adequate, Tenant shall increase the insurance coverage as required by Landlord. In no event shall the limits of such policy be considered as limiting the liability of Tenant under this Lease. Tenant shall obtain and keep in force during the Term of this Lease “all risk” extended coverage property insurance with coverages acceptable to Landlord, in Landlord’s commercially reasonable discretion, on Tenant’s personal property, all tenant improvements installed at the Premises by Landlord or Tenant, Tenant’s trade fixtures and other property. By way of example, and not limitation, such policies shall provide protection against any peril included within the classification “fire and extended coverage,” against vandalism and malicious mischief, theft, sprinkler leakage, earthquake damage, windstorm damage and flood damage. Tenant expressly acknowledges and agrees that in the event its insurance policy excludes coverage for flood, earthquake, windstorm or any other peril, that neither Tenant nor its insurance company shall have any right or claim against Landlord or its insurance company as a result of damage to Tenant’s property resulting from such excluded peril. In addition, if there is damage to any tenant improvements installed in the Premises which is not covered by Tenant’s insurance because of exclusions under Tenant’s “all risk” policy, Tenant shall be required to reimburse Landlord for any costs incurred by Landlord to repair or replace such improvements. If this Lease is terminated as the result of a casualty in accordance with section 9, the proceeds of said insurance attributable to the replacement of all tenant improvements at the Premises shall be paid to Landlord. If insurance proceeds are available to repair the tenant improvements, at Landlord’s option, all insurance proceeds Tenant is entitled to receive to repair the tenant improvements shall be paid by the insurance company directly to Landlord, Landlord shall select the contractor to repair and/or replace the tenant improvements, and Landlord shall cause the tenant improvements to be repaired and/or replaced to the extent insurance proceeds are available.

      8.2. Insurance-Landlord. Landlord shall maintain general liability insurance with coverage against such risks and in such amounts as Landlord deems advisable insuring Landlord against liability arising out of the ownership, operation and management of the Project. Landlord shall also maintain a policy or policies of insurance covering loss or damage to the Project in the amount of not less than eighty percent (80%) of the full replacement cost thereof, as determined by Landlord from time to time. The terms and

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conditions of said policies and the perils and risks covered thereby shall be determined by Landlord, from time to time, in Landlord’s sole discretion. In addition, at Landlord’s option, Landlord shall obtain and keep in force, during the Term of this Lease, a policy of rental interruption insurance, with loss payable to Landlord, which insurance shall, at Landlord’s option, also cover all operating expenses. In addition, Landlord shall have the right to obtain such additional insurance as is customarily carried by owners or operators of other comparable office buildings in the geographical area of the Project. Tenant will not be named as an additional insured in any insurance policies carried by Landlord and shall have no right to any proceeds therefrom. The policies purchased by Landlord shall contain such deductibles as Landlord may determine. In addition to amounts payable by Tenant in accordance with Section 4.2, Tenant shall pay any increase in the property insurance premiums for the Project over what was payable immediately prior to the increase to the extent the increase is specified by Landlord’s insurance carrier as being caused by the nature of Tenant’s occupancy or any act or omission of Tenant.

      8.3. Insurance Policies. Tenant shall deliver to Landlord certificates of the insurance policies required under Section 8.1 prior to the earlier of the Commencement Dates or the date Tenant is provided with possession of the Premises and thereafter as necessary to assure that Landlord always has current certificates evidencing Tenant’s insurance. Tenant’s insurance policies shall not be cancelable or subject to reduction of coverage or other modification except after thirty (30) days prior written notice to Landlord. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with certificates of renewals thereof. Tenant’s insurance policies shall be issued by insurance companies authorized to do business in the state in which the Project is located, and said companies shall maintain during the policy term a “General Policyholders’ Rating” of at least “A” and a financial rating of at least “Class X” (or such other rating as may be required by any lender having a lien on the Project), as set forth in the most recent edition of “Best Insurance Reports.” All insurance obtained by Tenant shall be primary to and not contributory (as respects Tenant’s operations at the Premises) with any similar insurance carried by Landlord, whose insurance shall be considered excess insurance only. Landlord, and at Landlord’s option, the holder of any mortgage or deed of trust encumbering the Project and any person or entity managing the Project on behalf of Landlord, shall be named as an additional insured on all insurance policies Tenant is obligated to obtain by Section 8.1 above. Tenant’s commercial general liability insurance policy shall not include deductibles in excess of Twenty Thousand Dollars ($20,000) and Tenant’s property insurance policy shall not include deductibles in excess of Fifty Thousand Dollars ($50,000), except that Tenant may have higher deductibles under its windstorm policy.

      8.4. Waiver of Subrogation. Landlord and Tenant hereby waive and shall cause their respective insurance carriers to waive any and all rights of recovery, claims, actions or causes or action against the other for any loss or damage with respect to Tenant’s Property, the Building, the Premises, or any contents thereof, including rights, claims, actions and causes of action based on negligence or any other act or omission of such party, which loss or damage is (or would have been, had the insurance required by this Lease been carried) covered by insurance. For the purposes of this wavier, any deductible with respect to a party’s insurance shall be deemed covered by and recoverable by such party under valid and collectable policies of insurance.

9. Damage or Destruction. Tenant shall give prompt notice to Landlord in case of any fire or other damage to the Premises. If the Premises or the Building are damaged by fire or other casualty, Landlord shall diligently and as soon as practicable after such damage occurs (taking into account the time necessary to effectuate a satisfactory settlement with Landlord’s insurance company) repair such damage at its own expense, and the Rent and additional rent shall be abated in proportion to the part of the Premises which is rendered untenantable until such repairs have been completed (in no event shall damage to any parking areas be deemed to render the Premises untenantable). However, if available insurance proceeds are insufficient or if the Premises or the Building are damaged by fire or other casualty to such an extent that the damage, in Landlord’s reasonable opinion, cannot be fully repaired within one hundred eighty (180) days from the date such damage occurs, Landlord shall provide Tenant with written notice of such fact and thereafter, either Landlord or Tenant shall have the right, exercised by giving written notice within such one hundred eighty (180) day period, to terminate this Lease effective as of the date of such damage.

10. Personal Property Taxes . Tenant shall pay prior to delinquency all taxes assessed against and levied upon trade fixtures, furnishings, equipment and all other personal property of Tenant contained in the Premises or related to Tenant’s use of the Premises. If any of Tenant’s personal property shall be assessed with Landlord’s real or personal property, Tenant shall pay to Landlord the taxes attributable to Tenant within ten (10) days after receipt of a written statement from Landlord setting forth the taxes applicable to Tenant’s property..

11. Building Services; Utilities.

      11.1. Services Provided by Landlord. Subject to all governmental rules, regulations and guidelines applicable thereto, Landlord shall provide HVAC to the Premises for normal office use during the times described in Section 11.2, reasonable amounts of electricity for normal office lighting and desk-type office machines, water in the Premises or in the Common Areas for reasonable and normal drinking and lavatory use, replacement light bulbs and/or fluorescent tubes and ballasts for standard overhead fixtures, building standard janitorial services (as more particularly described on Schedule 1 attached hereto), elevator service and access to the Building for the Tenant and its employees 24 hours per day/ 7 days per week subject to the terms of this Lease and such protective services or monitoring systems, if any, as Landlord may reasonably impose and such other services as Landlord reasonably determines are necessary or appropriate for the Project.

      11.2. Hours of Service. Building services and utilities shall be provided Monday through Friday from 6:00 a.m. to 10:00 p.m. HVAC and janitorial service shall not be provided at other times or on nationally recognized holidays. Nationally recognized holidays shall include, but shall not necessarily be limited to, New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Landlord shall use reasonable and customary efforts to provide HVAC to Tenant at times other than those set forth above subject to (a) the payment by Tenant of Landlord’s then standard charge for after hours HVAC and (b) Tenant providing to Landlord at least one (1) business day’s advance written notice of Tenant’s need for after hours, weekend or holiday HVAC.

      11.3. Excess Usage by Tenant. Tenant’s use of Building utilities and services shall not exceed the standard usage for the Building. If Tenant does use Building utilities or services in excess of the standard usage for the Building, Landlord shall have the right, in addition to any other rights or remedies it may have under this Lease, to (a) at Tenant’s expense, install separate metering devices at the Premises, and to charge Tenant for its usage, (b) require Tenant to pay to Landlord all costs, expenses and damages incurred by Landlord as a result of such usage, and (c) require Tenant to stop using excess utilities or services.

      11.4. Interruptions. Tenant agrees that Landlord shall not be liable to Tenant for its failure to furnish, or any interruption, diminishment or termination of services due to the application of Laws, the failure of any equipment, the performance of repairs, improvements or alterations, utility interruptions or the occurrence of a Force Majeure Event and such failures shall never be deemed to constitute a constructive eviction of Tenant or relieve Tenant from the obligation of paying rent or performing any of its obligations under this Lease. Furthermore, Landlord shall not be liable under any circumstances for loss of property or for injury to, or interference with, Tenant’s business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a failure to furnish any such services or utilities. Landlord may comply with voluntary controls or guidelines promulgated by any governmental entity relating to the use or conservation of energy, water, gas, light or electricity or the reduction of automobile or other emissions without creating any liability of Landlord to Tenant under this Lease.

      11.5 Failure to Provide Essential Services . Notwithstanding the provisions of Section 11.4, in the event the Building experiences an interruption of electrical, telephone, water or HVAC which prevents Tenant from utilizing the Premises to conduct its business (an “Interruption”) which Interruption is within the control of Landlord to cure (i.e. not as a result of the inability of Landlord to obtain the applicable utility service through no fault of Landlord) (a “Controllable Interruption.”) Landlord shall commence and diligently pursue the curative action within a commercially reasonable amount of time after written notice from Tenant of a Controllable Interruption. If Landlord fails to commence and diligently pursue the curative action within a commercially reasonable

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amount of time after written notice from Tenant, then Tenant shall have the right, after written notice to Landlord to expend commercially reasonable market sums to cure the Controllable Interruption and offset said amount against the next payments of Rent due hereunder. This self help provision is specifically limited to Controllable Interruptions of service which Landlord is responsible for correction. Notwithstanding the foregoing, Tenant shall be entitled to an abatement of Rent with respect to a Controllable Interruption commencing with the sixth (6th) consecutive business day of the Controllable Interruption until such time as the services are restored.

12. Assignment and Subletting.

      12.1. Landlord’s Consent Required. Tenant shall not voluntarily or by operation of law assign, transfer, hypothecate, mortgage, sublet, or otherwise transfer or encumber all or any part of Tenant’s interest in this Lease or in the Premises (hereinafter collectively a “Transfer”), without Landlord’s prior written consent, which consent shall not be unreasonably withheld. Landlord shall respond to Tenant’s written request for consent hereunder within fifteen (15) days after Landlord’s receipt of the written request from Tenant. Any attempted Transfer without such consent shall be void and shall constitute a default of this Lease. If the entity(ies) which directly or indirectly controls the voting shares/rights of Tenant changes at any time, such change of ownership or control shall constitute a Transfer unless Tenant is an entity whose outstanding stock is listed on a recognized securities exchange or if at least 80% of its voting stock is owned by another entity, the voting stock of which is so listed. Tenant’s written request for Landlord’s consent shall include all of the following information: (a) financial statements for the proposed assignee or subtenant, (b) a detailed description of the business the assignee or subtenant intends to operate at the Premises, (c) a copy of the fully executed sublease or assignment agreement, and (d) such other information as Landlord may reasonably request .

      12.2. Standard For Approval. Landlord shall not unreasonably withhold its consent to a Transfer provided that Tenant has complied with each and every requirement, term and condition of this Section 12. It shall be deemed reasonable for Landlord to withhold its consent to a Transfer if any requirement, term or condition of this Section 12 is not complied with or: (i) the Transfer would cause Landlord to be in violation of its obligations under another lease or agreement to which Landlord is a party; (ii) in Landlord’s reasonable judgment, a proposed assignee or subtenant has a smaller net worth than Tenant had on the date this Lease was entered into with Tenant or is less able financially to pay the rents due under this Lease as and when they are due and payable; (iii) a proposed assignee’s or subtenant’s business will impose a burden on the Project’s parking facilities, elevators, Common Areas or utilities that is greater than the burden imposed by Tenant, in Landlord’s reasonable judgment; (iv) the terms of a proposed assignment or subletting will allow the proposed assignee or subtenant to exercise a right of renewal, right of expansion, right of first offer, right of first refusal or similar right held by Tenant; (v) a proposed assignee or subtenant refuses to enter into a written assignment agreement or sublease, reasonably satisfactory to Landlord, which provides that it will abide by and assume all of the terms and conditions of this Lease for the term of any assignment or sublease and containing such other terms and conditions as Landlord reasonably deems necessary; (vi) the use of the Premises by the proposed assignee or subtenant will not be for a use permitted by this Lease; (vii) any guarantor of this Lease refuses to consent to the Transfer or to execute a written agreement reaffirming the guaranty; (viii) Tenant is in default beyond any applicable notice and cure period as defined in Section 13.1 at the time of the request; (ix) if requested by Landlord, the assignee or subtenant refuses to sign a non-disturbance and attornment agreement in favor of Landlord’s lender; (x) Landlord has sued or been sued by the proposed assignee or subtenant or has otherwise been involved in a legal dispute with the proposed assignee or subtenant; (xi) the assignee or subtenant is involved in a business which is not in keeping with the then current standards of the Project; or (xii) the proposed assignee or subtenant is an existing tenant of the Project or is a person or entity then negotiating with Landlord for the lease of space in the Project.

      12.3. Additional Terms and Conditions . Regardless of Landlord’s consent, no Transfer shall release Tenant from Tenant’s obligations hereunder or alter the primary liability of Tenant to pay the rent and other sums due Landlord hereunder and to perform all other obligations to be performed by Tenant hereunder or release any guarantor from its obligations under its guaranty. Landlord may accept rent from any person other than Tenant pending approval or disapproval of an assignment or subletting. The consent by Landlord to any Transfer shall not constitute a consent to any subsequent Transfer by Tenant or to any subsequent or successive Transfer by an assignee or subtenant and no assignment or sublease may be modified or amended without Landlord’s prior written consent. However, Landlord may consent to subsequent Transfers or any amendments or modifications thereto without notifying Tenant or anyone else liable on the Lease and without obtaining their consent, and such action shall not relieve such persons from liability under this Lease. In the event of any default under this Lease, Landlord may proceed directly against Tenant, any guarantors or anyone else responsible for the performance of this Lease, including any subtenant or as


 
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