1. Basic Lease
Provisions.
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1.1.
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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”).
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1.2.
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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”).
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1.3.
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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.
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1.4.
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Building Address:
4400 Biscayne Boulevard,
Miami, Florida 33137 (the “Building”).
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1.5.
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Permitted Use:
General office use,
subject to the requirements and limitations contained in
Section 6.
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1.6.
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Term: Five (5) years.
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1.7.
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Commencement Date:
The commencement date is
February 1, 2007 (the Commencement Date”).
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1.8.
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Base Rent: : Tenant shall make rent payments
under this Lease on a “gross” basis (the
“Rent”), plus applicable sales tax as
follows:
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Lease Period in
Months
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Annual Base Rent
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Monthly Base Rent
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$
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390,700.00
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$
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32,558.33
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$
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470,982.00
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$
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39,248.50
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$
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492,176.00
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$
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41,014.66
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$
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514,324.00
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$
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42,860.33
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$
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537,468.00
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$
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44,789.00
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1.9.
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Base Rent Paid Upon
Execution: $32,558.33 for the first full month
of the Term, plus sales tax of $2,279.08.
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1.10.
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Security Deposit:
$0.
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1.11.
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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.
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1.12.
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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.
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1.13.
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Real Estate Brokers:
Landlord:
None.
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1.14.
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Attachments to Lease:
Exhibit A —
“Premises”, Exhibit B — “Rules and
Regulations” and Schedule 1 “Janitorial
Services”.
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1.15.
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Addresses for
Notices:
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Frost Real
Estate Holdings, LLC
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4400 Biscayne
Boulevard
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Suite
#660
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Miami, Florida
33137
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Attention:
Steven D. Rubin
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Greenberg
Traurig, P.A.
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1221 Brickell
Avenue
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Miami, Florida
33131
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Attention:
Michael T. Lynott, Esq .
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Ladenburg
Thalmann & Co. Inc.
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153 East
53 rd
Street
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49
th Floor
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New York, New
York 10022
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Attention:
Joseph Giovanniello, Jr., Senior Vice President
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and General
Counsel
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Akerman
Senterfitt
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1 SE 3
rd Avenue
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28
th Floor
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Miami, Florida
33131
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Attention:
Anthony Casareale, Esq.
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1.16.
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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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2.1. 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.
4.1. 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.
6.1. 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.
8.1. 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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