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Exhibit 10.1
Execution Version
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1.
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DEMISED PREMISES; TERM
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1
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5 .
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CONDITION OF PREMISES
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10
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10. COVENANT AGAINST LIENS
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19
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12. ASSIGNMENT AND SUBLETTING
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21
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13. EXPENSES OF ENFORCEMENT
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25
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14. INTENTIONALLY OMITTED
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25
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15. LANDLORD'S REMEDIES
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25
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16. SURRENDER OF POSSESSION
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26
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18. ENVIRONMENTAL MATTERS
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28
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26. CERTAIN RIGHTS RESERVED BY
LANDLORD
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36
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27. RULES AND REGULATIONS
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39
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30. ESTOPPEL CERTIFICATE
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46
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Execution Version
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34. LANDLORD'S CONTRIBUTION/ADDITIONAL
ALLOWANCE
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49
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36. OPTIONS TO EXPAND.
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56
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37. OPTIONS TO EXTEND TERM
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57
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38. FAIR MARKET RENT; ARBITRATION
PROCEDURES
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59
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39. Intentionally Omitted
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61
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40. Intentionally omitted
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61
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42. COVENANT OF QUIET ENJOYMENT
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62
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45. LIMITATION OF LANDLORD'S
LIABILITY
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64
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EXHIBIT A
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PLAN OF
PREMISES
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EXHIBIT B
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EXAMPLE STATEMENT
REGARDING OPERATING EXPENSES AND OWNERSHIP TAXES
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EXHIBIT C
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SUMMARY OF O & M
PLAN
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EXHIBIT D
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JANITORIAL
SPECIFICATIONS
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EXHIBIT E
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SHELL AND CORE
WORK
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EXHIBIT F
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RATES FOR LANDLORD'S SUPERVISION AND GENERAL
CONDITIONS
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Execution Version
350 WEST MART CENTER
This Lease made as of
November , 2007 (the “
Effective Date ”)
between 350 North Orleans L.L.C., a Delaware limited liability
company having an address c/o Merchandise Mart Properties, Inc.,
222 Merchandise Mart Plaza, Suite 470, Chicago, IL 60654 ("
Landlord ") and UPSHOT
INC., a Delaware corporation, having a present address at 303 East
Wacker Drive, Chicago, Illinois 60601 (" Tenant ").
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1. DEMISED
PREMISES; TERM.
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(A) Landlord does
hereby demise and lease to Tenant, and Tenant accepts that certain
space shown cross-hatched on Exhibit "A" which is attached hereto
and made a part hereof, consisting of approximately 41,486 rentable
square feet and commonly described as the entire Fifth (5
th ) Floor South Tower (" Premises ") of a building located on
land at 350 North Orleans Street (" Building ") (provided, however, the
Building does not include the hotel premises (hereinafter the
" Hotel Premises ") located in the same physical structure as the Building)
constructed on the north portion of the property bounded on the
north by West Kinzie Street, on the east by North Orleans Street,
on the west by the Chicago River, and on the south by a line 352.50
feet south of and parallel with the south line of West Kinzie
Street in Chicago, Illinois (such land and Building hereinafter
referred to, together with all present and future easements,
additions, improvements (other than the Hotel Premises) and other
rights appurtenant thereto, as the " Property "), for a term beginning on
the Commencement Date (as hereinafter defined) and ending on the
last day of the Thirteenth (13 th ) full Lease Year (as
hereinafter defined) thereafter (" Term "), unless sooner terminated as
provided herein, subject to the terms, covenants and agreements
herein contained. The Commencement Date shall be the later of (a)
May 1, 2008, or (b) the day after the last day of the TI
Construction Period (defined below). The “
TI Construction Period ” is the period of four calendar months after Landlord
delivers the Premises to Tenant in accordance with the terms of
this Lease and with all of the Shell and Core Work substantially
completed such that Tenant can commence its Improvements; provided,
however, that the TI Construction Period shall be extended on a day
for day basis for each day of Landlord Delay (defined below) and
Force Majeure Delay (defined below) that shall occur. The parties
anticipate that the Premises will be so delivered to Tenant on or
about January 1, 2008 (the “ Estimated Delivery Date ”).
For purposes of this Lease, " Lease Year " shall mean a period of
twelve (12) consecutive calendar months, the first of which shall
commence on the Commencement Date if the Commencement Date shall be
the first day of a calendar month, or on the first day of the first
calendar month following the Commencement Date if the Commencement
Date shall be other than on the first day of a calendar month, and
shall end on the last day of the twelfth (12th) calendar month
thereafter. Each successive Lease Year shall be a twelve (12)
calendar month period commencing on the anniversary of the
commencement of the first Lease Year. Upon the
1
Execution Version
determination of the actual date of the Commencement
Date, the parties agree to memorialize in writing such date for the
determination of the Lease Year and the expiration of the Term
hereof.
(B) Landlord and
Tenant agree that the rentable area of the Premises initially
demised pursuant to this Article 1 and any additional space that at
any time may be demised hereunder and the rentable area of the
Building shall be computed in accordance with Building Owners and
Managers Association International Standard Method for Measuring
Floor Area in Office Buildings known as American National Standard
ANS1 Z65.1-1996, approved June 27, 1996 by American National
Standards Institute, Inc. (" BOMA
Standards "). Landlord and Tenant hereby
stipulate that the rentable area of the Premises initially demised
pursuant to this Article 1 is 41,486 rentable square
feet.
2. USE. Tenant will use
and occupy the Premises for general office purposes and other uses
ancillary thereto (the “ Permitted
Use ”) and for no other use or
purpose. Tenant will not use or permit upon the Premises anything
that will invalidate any policies of insurance now or hereafter
carried on the Building or that will increase the rate of insurance
on the Premises or on the Building; provided, however, that nothing
herein shall prohibit Tenant from using the Premises for the
Permitted Use or require Tenant to pay any specific increase in the
rate of insurance associated with Tenant’s specific use of
the Premises for the Permitted Use. Tenant will pay all extra
insurance premiums on the Building which may be caused by the use
which Tenant shall make of the Premises (other than a use stated in
the first sentence hereof). Tenant will not (a) use or permit upon
the Premises anything that may be dangerous to life or limb; (b) in
any manner deface or injure the Building or any part thereof or
overload the floors of the Premises; or (c) do anything or permit
anything to be done upon the Premises in any way creating a
nuisance or unreasonably disturbing any other tenant in the
Building or the occupants of neighboring property (for example,
creation of unreasonable noise, odors or vibration emanating from
the Premises). Tenant shall further not carry-on or permit any
activities which are reasonably likely to: (1) involve the storage,
use or disposal of medical or hazardous waste or substances or the
creation of an environmental hazard other than such substances in
such amounts customarily used in normal office operations; or (2)
impair or interfere with (i) the structure of the Building or the
operation of Building systems, (ii) the character, reputation or
appearance of the Building as a first-class building, or (iii) the
furnishing of services (including utilities, telephone and
communications) to any portion of the Building. The Premises shall
not be used for the purposes of any so called "office suites",
schools (although training for Tenant's corporate purposes is
allowed), facilities of foreign governments, advertising agencies
(other than Tenant or Tenant Occupants, as hereinafter defined),
employment agencies, medical treatment facilities, governmental
entities, a restaurant open to the public, or any retail, showroom
or wholesale activities. Subject to Force Majeure events (as
defined in Article 35(A)), Tenant will fully and promptly comply,
and operate the Premises in conformity, with all applicable
federal, state and municipal laws, ordinances, codes, regulations
and requirements respecting the Premises or relating to Tenant's
specific use or occupancy thereof, and activities therein provided,
however, Tenant shall not be responsible for assuring (or repairing
or maintaining) that the "Building Systems" (as defined in Article
7 hereof), are in compliance with such laws, ordinances, codes,
regulations or requirements. Tenant will not use the Premises for
lodging or sleeping purposes, nor conduct or permit to be conducted
on the Premises any business
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Execution Version
or activity which is contrary to the provisions of
this Lease or to any applicable governmental laws, ordinances,
codes, regulations and requirements. Tenant shall promptly pay all
taxes of whatever kind which are imposed upon Tenant but which are
to be collected by Landlord. Tenant shall at no time sell food
(other than to Tenant’s employees and guests) on or from the
Premises. Tenant shall at no time sell (within the meaning of the
Illinois Liquor Control Act, as now or hereafter amended) alcoholic
liquor on or from the Premises, provided, however, that Tenant may
occasionally give complimentary food and alcoholic liquor to its
employees and guests on the Premises, on condition that Tenant
shall comply with all applicable governmental requirements, and on
further condition that, prior to the giving of such alcoholic
liquor, Tenant shall procure and maintain continuously thereafter
(or cause to be procured and maintained continuously thereafter) in
force a policy of or endorsement for host liquor liability
insurance, as set forth in Article 25 hereof.
(A) Tenant
shall pay to Landlord an annual base rent (" Base Rent ") for the Premises (based
on 41,486 rentable square feet) as shown below for each respective
period in equal monthly installments during each respective period
as follows:
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LEASE
YEAR
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BASE
RENT
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INSTALLMENT
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RATE
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1
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$1,130,493.50
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$94,207.79
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$27.25
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2
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$1,158,703.98
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$96,558.67
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$27.93
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3
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$1,187,744.18
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$98,978.68
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$28.63
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4
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$1,217,614.10
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$101,467.84
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$29.35
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5
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$1,247,898.88
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$103,991.57
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$30.08
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6
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$1,279,013.38
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$106,584.45
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$30.83
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7
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$1,310,957.60
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$109,246.47
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$31.60
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8
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$1,343,731.54
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$111,977.63
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$32.39
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9
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$1,377,335.20
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$114,777.93
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$33.20
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10
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$1,411,768.58
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$117,647.38
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$34.03
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11
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$1,447,031.68
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$120,585.97
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$34.88
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12
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$1,483,124.50
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$123,593.71
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$35.75
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13
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$1,520,047.04
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$126,670.59
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$36.64
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Tenant shall pay each installment of Base Rent in
advance on the first day of every calendar month of the Term. All
such payments shall be made payable to Landlord or Landlord's agent
and shall be made at the office of the Building or at such other
places and to such other parties as Landlord shall from time to
time, by not less than ten (10) business days written notice,
appoint. Base Rent shall be payable without any prior demand
therefor and except as expressly provided otherwise herein, without
any deductions or set-offs whatsoever. If the Term commences on a
day other than the first day of the calendar month, or ends on a
day other than the last day of the calendar month, the Base Rent
for such fractional month shall be prorated on the basis of 1/365th
(or the applicable year is a leap year, 1/366th) of the annual Base
Rent for each day of such fractional month.
3
Execution Version
(B) Base
Rent shall abate (1) in full for a period of fifteen (15) months
commencing on the Commencement Date, (2) in the amount of $2,534.65
per month beginning at the start of the sixteenth (16th) month
through the twenty-fourth (24 th ) month, and (3) in the
amount of $2,598.17 per month beginning at the start of the
twenty-fifth (25 th ) month through the thirty-second
(32 nd ) month following the Commencement Date; provided
that, if at any time during the forgoing abatement period, there
shall occur an Event of Default, then for so long as such Event of
Default shall continue without cure, in addition to all other
rights, powers and remedies afforded to Landlord under this Lease,
the abatement of Base Rent provided in the foregoing sentence shall
immediately and without notice terminate and Landlord shall be
entitled to receive and collect and Tenant shall pay all Base Rent
which would have been paid but for the abatement herein
permitted.
4. RENT ADJUSTMENTS. Landlord and Tenant agree that the following rent adjustments
shall be made with respect to each calendar year of the Term, or
portion thereof, including the calendar year in which the Term of
this Lease begins and the calendar year in which the Term of this
Lease terminates, after the Base Year (which “
Base Year ” for
purposes of this Lease shall be the calendar year ending on the
December 31, 2009). For purposes of such rent adjustments,
“ Tenant's Proportionate
Share ” is agreed to be (x)
3.352% for the period
beginning on the Commencement Date and ending on the last day of
the thirty-second (32 nd ) month following the
Commencement Date, and (y) 3.442 % for the period beginning on
the first day of the thirty-third (33 rd ) month
following the Commencement Date, which amount is calculated by
dividing the rentable square feet of the Premises by 1,205,289,
stipulated to be the rentable square feet in the
Building.
(A) Tenant shall pay to Landlord as additional rent
an amount equal to Tenant's Proportionate Share of the amount by
which Real Estate Related Taxes (as hereinafter defined) paid in
any calendar year during the Term after the Base Year exceed Real
Estate Related Taxes paid in the Base Year. Subject to the
provisions below in this Paragraph (A), " Real Estate Related Taxes " shall
mean all taxes, assessments, impositions and governmental charges
of every kind and nature which Landlord shall pay in a calendar
year because of or in any way connected with the ownership,
leasing, management, and operation of the Building and the
Property. The definition of Real Estate Related Taxes is subject to
the following:
(1) the amount
of ad valorem real and personal property taxes against Landlord's
real and personal property to be included in Real Estate Related
Taxes shall be the amount shown by the latest available tax bills
required to be paid in the calendar year in respect of which Real
Estate Related Taxes are being determined. The amount of any tax
refunds shall be deducted from Real Estate Related Taxes in the
calendar year they are received by Landlord;
(2) the amount
of special taxes and special assessments to be included shall be
limited to the amount of the installments (plus any interest, other
than penalty interest, payable thereon) of such special tax or
special assessment required to be paid during the calendar year in
respect of which Real Estate Related Taxes are being
determined;
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Execution Version
(3) there shall
be excluded from Real Estate Related Taxes all income taxes and any
other taxes imposed upon or measured by Landlord’s gross
income or profits [except for any specific tax or excise on rents
or other income from the Property (or on the value of leases
thereon) or a specific gross receipts tax or excise on rents or
other income from the Property (or on the value of leases
thereon)], excess profit taxes, transfer, sale, gift, franchise,
capital stock and inheritance or estate taxes, except to the extent
that any such tax is in lieu of or in substitution for, in whole or
in part, any tax included in Real Estate Related Taxes. Real Estate
Related Taxes shall also exclude all taxes, assessments, charges,
costs and disbursements paid in connection with the Hotel
Premises.
(4) Real Estate
Related Taxes shall also include, in the calendar year paid, all
fees, costs and expenses (including reasonable attorneys' fees)
reasonably incurred by Landlord in contesting or attempting to
reduce or limit any Real Estate Related Taxes, regardless of
whether any such reduction or limitation is obtained.
In no event shall Tenant be obligated to pay any
amount for Real Estate Related Taxes that are first billed to
Tenant after the date that is two (2) years following the date of
delivery of the Landlord's Annual Statement (defined below) for the
calendar year to which such Real Estate Related Taxes are
allocable.
(B) Tenant
shall also pay to Landlord as additional rent an amount equal to
Tenant's Proportionate Share of the amount by which Operating
Expenses for any calendar year during the Term after the Base Year
exceed Operating Expenses for the Base Year. Subject to the
provisions below in this Paragraph (B), Operating Expenses shall
mean all expenses, costs and disbursements of every kind and nature
paid, incurred, or otherwise arising in respect of a calendar year
because of or in connection with the ownership, management,
maintenance, repair, and operation of the Building and the
Property. The definition of Operating Expenses is subject to the
following:
(i) There
shall be excluded from Operating Expenses: (1) costs of alterations
of tenant spaces; (2) interest, depreciation and amortization
except as specifically provided in clause (ii), below; (3)
principal and interest payments on mortgages or other funds
borrowed by Landlord, financing or refinancing expenses, and
expenses incurred in connection with the sale of the Property or
any interest therein; (4) return on investment; (5) Real Estate
Related Taxes with the respect to which Tenant is liable for its
Proportionate Share pursuant to the preceding paragraph (A) and all
costs and expenses not permitted to be included in Real Estate
Related Taxes; (6) the cost of capital improvements, capital
repairs in the nature of capital replacements, and capital
equipment as determined in accordance with GAAP (defined below)
(collectively, “ Capital
Items ”), except as expressly
provided in clause (ii) below with respect to Capital Items
resulting in a reduction or limitation in Operating Expenses or
required to comply with governmental requirements enacted or
initially enforced after the date of execution hereof; (7) ground
lease or master lease rents or costs in connection therewith; (8)
real estate brokers' leasing commissions or compensation and any
other expenses incurred in leasing space or procuring tenants; (9)
any costs for which
5
Execution Version
Landlord has received reimbursement (other than
reimbursements from tenants under operating expense escalation
clauses), whether from insurance or condemnation proceeds and any
costs for which Landlord would have been entitled to reimbursement
if Landlord has carried the insurance Landlord is required to carry
under this Lease; (10) attorneys' fees, costs and disbursements and
other expenses incurred in connection with negotiation of leases
with or disputes with tenants or prospective tenants of the
Building; (11) expenses in connection with any service or other
benefits of a type which are not provided to Tenant but which are
provided to another tenant or occupant of the Building or that are
provided to Tenant for an additional charge but are provided to any
other tenant without charge or at a substantially reduced charge;
(12) overhead and profit increment and any other amounts paid to
parents, subsidiaries or affiliates of Landlord or its beneficiary
for services on or to the Building or goods supplied to the
Building to the extent that the costs of such services or goods
exceed the competitive costs of such services or goods were they
not so rendered by such parent, subsidiary or affiliate (subject,
however, to the proviso in clause (15) below as to management
fees); (13) any compensation paid to clerks, attendants or other
persons in commercial concessions operated by Landlord or
Landlord's beneficiary or any affiliate of either; (14)
advertising, marketing and promotional expenditures; (15)
management fees to the extent such fees exceed similar costs
incurred in comparable office buildings in the area; provided,
however, that in any event Tenant agrees that there may be included
in Operating Expenses a management fee, whether paid to an
affiliate of Landlord's beneficiary or an unrelated third party, in
an amount up to 3% of gross revenues derived from the Building;
(16) wages, salaries or other compensation paid to any employees of
Landlord or Landlord's beneficiary or management agent above the
grade of Building manager or paid to any employee who does not
devote substantially all of his or her employed time to the
operation or maintenance of the Property unless such wages,
salaries or other compensation are reasonably and equitably
prorated; (17) the costs of complying with the O & M Program
(defined below) and the costs incurred in connection with the
removal, containment or other remediation of any asbestos
containing materials in the Building in accordance with the O &
M Program or otherwise; (18) the costs for furnishing electricity
or janitorial services to tenant spaces in the Building from time
to time if billed separately to Tenant in accordance with Article
9(C) and 9(D) hereof; (19) the cost of installing, equipping or
operating any of the following specialty services at the
Property-day care facility, health club, workout facility or
luncheon, athletic or recreational club; (20) the cost of acquiring
sculptures, paintings and other objects of art in the Building
(provided that all reasonable and customary costs for maintaining
and insuring any of the foregoing shall be includable in Operating
Expenses); (21) legal expenses incurred in the negotiation and
enforcement of leases; (22) the amount of any political or
charitable contributions made by Landlord; (23) all income taxes,
excess profit taxes, franchise, capital stock and inheritance or
estate taxes paid by Landlord; (24) any and all costs and expenses
borne directly by Tenant under this Lease or by any other tenant of
the Building; (25) any and all costs and/or expenses associated
with the operation of the business of the partnership or entity
which constitutes the Landlord (or of which Landlord is a direct or
indirect subsidiary, parent or affiliate), including, without
limitation, for general corporate overhead and general and
administrative expenses; (26) any and all costs and expenses for,
in connection with or relating to the
6
Execution Version
management, maintenance, repair, and operation of
the Hotel Premises other than certain shared costs pursuant to a
Collateral Agreement between the Building and the Hotel Premises;
(27) any and all costs and expenses related to bad debts or similar
losses; (28) any and all costs and/or expenses associated with the
operation of the business of the partnership or entity which
constitutes the Landlord (or of which Landlord is a direct or
indirect subsidiary, parent or affiliate), including, without
limitation, for general corporate overhead and general and
administrative expenses; (29) any and all cost and expenses for
rentals and other related expenses incurred in leasing any Capital
Items, the cost of which if purchased, could not be included in
Operating Expenses; (30) any and all costs and expenses for
reserves of any kind; and (31) any and all costs and/or expenses
arising from claims, disputes or potential disputes in connection
with potential or actual claims, litigation or arbitrations
pertaining to (a) the business of Landlord or the ownership or
title to the Property or any portion thereof, (b) any disputes
between Landlord and its partners and/or affiliates between
Landlord and any other owner or interest holder in the Property, or
any adjacent landowner, between constituent partners or members of
Landlord, or (c) any disputes between Landlord and its employees.
There shall be no duplication of charges in determining Operating
Expenses hereunder, and Landlord shall not be entitled to collect
in excess of one hundred percent (100%) of Operating Expenses from
all tenants.
(ii) In the event
Landlord makes any capital improvement or any capital repair in the
nature of a capital replacement or installs any capital equipment
during the Term hereof which (a) results in a reduction or
limitation in Operating Expenses, or (b) is required to comply with
any governmental rules, regulations or requirements applicable from
time to time to the Building or to the Property and enacted or
initially enforced after the date of execution hereof, the costs
thereof, as amortized in each case on a straight-line basis (unless
otherwise required by generally accepted accounting principles
(“ GAAP ”) over the useful life of the item so capitalized (as
determined in accordance with GAAP), may be included in Operating
Expenses; provided, however, that the amount paid by Tenant for any
calendar year or portion thereof which falls within the Term of
this Lease on account of a capital item described in clause (a)
above shall not exceed the reduction or limitation in Tenant's
Proportionate Share of Operating Expenses with respect to such
calendar year or portion thereof by reason of such capital item. If
the Building shall not have been fully occupied by tenants at any
time during the Base Year or any succeeding calendar year, the
Operating Expenses for such year may be equitably adjusted (by
grossing up the Operating Expenses that vary with occupancy of the
Building) to reflect the amount of Operating Expenses that would
have been incurred if the Building had been fully occupied
throughout such year.
(iii) In no event shall
Tenant be obligated to pay any amount for Operating Expenses that
are first billed to Tenant after the date that is two (2) years
following the date of delivery of the Landlord's Annual Statement
(defined below) for the calendar year to which such Operating
Expenses are allocable.
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(C)
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Intentionally
omitted.
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7
Execution Version
(D) In
order to provide for current payments on account of increases in
Real Estate Related Taxes and Operating Expenses over the Base
Year, Tenant agrees, at Landlord's request, to pay on account to
Landlord for each calendar year of the Term or portion thereof
following the Base Year, Tenant's Proportionate Share of amounts
due under Articles 4(A) and 4(B) above (“
Article 4 Additional Rent ”) for such ensuing calendar year or portion thereof, as
reasonably estimated by Landlord from time to time, in equal
monthly installments, commencing on the first day of the calendar
month following the calendar month during which the day occurs that
is ten (10) business days after the date on which Landlord notifies
Tenant (by delivery of an Estimated Statement) of the amount of
such estimated Article 4 Additional Rent, and Landlord may, by
delivery of a revised Estimated Statement, revise its estimate of
Article 4 Additional Rent payable for any calendar year; provided
that Landlord's estimate of Article 4 Additional Rent payable for
any calendar year shall not be changed more than twice during any
calendar year. “Estimated Statement” means a written
statement setting forth the estimated amount of Article 4
Additional Rent payable by Tenant with respect to such calendar
year. The initial Estimated Article 4 Additional Rent payment for
the calendar year shall be payable within thirty (30) days after
the initial notice; thereafter such payments shall be payable at
the same time and the same manner as Base Rent. If the
Landlord’s Annual Statement (defined below) indicates that
the Article 4 Additional Rent payable with respect to the
applicable calendar year shall be greater than or less than the
aggregate of all estimated installments of Article 4 Additional
Rent previously paid to Landlord in accordance with this Article
4(D), then Tenant upon receipt of such invoice shall pay to
Landlord within thirty (30) days immediately following such
notification the amount of such underpayment, or, Landlord shall
credit Tenant against the rent next coming due for the amount of
such overpayment, as the case may be (or if the Term has expired
and no further amounts are due to Landlord from Tenant hereunder,
Landlord shall refund such amount to Tenant). It is the intention
hereunder to estimate from time to time the amount of increases in
Real Estate Related Taxes and Operating Expenses for each calendar
year over Real Estate Related Taxes and Operating Expenses for the
Base Year, and then to finally determine such rent adjustments at
the end of such calendar year or as soon thereafter as possible
based upon actual increases in Real Estate Related Taxes and
Operating Expenses for such calendar year.
(E) Landlord agrees to
keep books and records showing the Real Estate Related Taxes and
Operating Expenses in accordance with GAAP and in compliance with
such provisions of this Lease as may affect such accounts. Landlord
shall deliver to Tenant within one hundred fifty (150) days after
the close of each calendar year (including the calendar year in
which this Lease begins and the calendar year in which this Lease
terminates), a statement (an “ Annual Statement ”) certified
by an officer of Landlord's agent substantially in the form of the
sample statement attached hereto and made a part hereof as
Exhibit "B" . Failure
or delay in delivering any such statement or accompanying invoice,
or failure or delay in computing the rent adjustments pursuant to
this Article 4, shall not be deemed a waiver by Landlord of its
right to deliver such items nor shall any such failure or delay be
deemed a release of Tenant's obligations with respect to any such
statement or invoice, or constitute a default hereunder; provided,
however, that if any Annual Statement is not delivered within 240
days after the close of the applicable calendar year, Tenant may
elect to seek specific performance). All rent adjustments payable
hereunder shall, except as expressly provided otherwise in this
Lease, be made without any deductions or set-offs
whatsoever.
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(F) The
obligation of Tenant with respect to the payment of Base Rent and
Article 4 Additional Rent due hereunder shall survive the
expiration or termination of this Lease. Any payment, refund, or
credit made pursuant to this Article shall be made without
prejudice to any right of Tenant to dispute, or of Landlord to
correct, any items as billed pursuant to the provisions hereof. In
the event that the Term of this Lease shall have been in effect for
less than the full calendar year immediately preceding Tenant's
receipt of the statements provided for in Articles 4 (D) and (E)
hereof or if the Term shall end on a day other than the last day of
a calendar year, the rent adjustment shall be pro rata on a per
diem basis. In no event shall any rent adjustment result in a
decrease in the Base Rent payable from time to time
hereunder.
(G) In the
event that Tenant disputes the accuracy of the Annual Statement, or
the information therein contained, furnished by Landlord to Tenant
pursuant to Article 4(E) above, Tenant may require upon delivering
notice in writing within nine (9) months after submission of such
Annual Statement that Real Estate Related Taxes and Operating
Expenses be audited by an independent, nationally recognized public
accounting firm on a non-contingent fee basis as selected by Tenant
and reasonably satisfactory to Landlord, at Tenant's expense,
except as hereinafter provided. If it is finally determined that
Article 4 Additional Rent for any calendar year is ninety-seven
percent (97%) or less than the Article 4 Additional Rent as shown
in the Annual Statement furnished by Landlord to Tenant pursuant to
Article 4(E), Landlord shall pay the reasonable costs and expenses
incurred by Tenant in engaging such public accounting firm to
render such statement, and if it is finally determined that Tenant
has overpaid for Article 4 Additional Rent for any calendar year,
Landlord shall credit to Tenant the amount of such overpayment in
the manner provided above in Article 4 (D); provided, further, that
if as finally determined that the amount of Article 4 Additional
Rent for any calendar year is greater than the Article 4 Additional
Rent as shown in the applicable Annual Statement furnished by
Landlord to Tenant, Tenant shall pay to Landlord the amount of such
underpayment within thirty (30) days after the date on which Tenant
receives an invoice from Landlord requesting payment
thereof.
(H) In the
event Tenant selects such firm of independent nationally-recognized
certified public accountants to examine Landlord's books and
records for any calendar year, such firm shall promptly conduct
such examination in accordance with generally accepted accounting
principles consistently applied and, as soon as practicable, render
to Landlord and Tenant a report stating such accountants'
determination of the Article 4 Additional Rent for such year, and,
if such determination is inconsistent with Landlord's Annual
Statement, providing a reasonably-detailed basis for the
determination and explanation of each discrepancy. If the parties
cannot agree following such submission, they shall engage in
binding arbitration with respect to such discrepancy.
Such accountants engaged by Tenant may inspect,
audit, review, copy and examine (and Landlord agrees to make the
same available for such purposes) at Landlord’s agent’s
office in Chicago, Illinois only such of Landlord's books and
records as are reasonably related to the preparation of Landlord's
Annual Statement, and such accountants engaged by Tenant may
examine none of Landlord's books and records with respect to any
property other than the Property.
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Landlord shall not be obligated to permit any
individual to examine Landlord's books and records unless such
individual and such individual's employer first execute and deliver
to Landlord a commercially reasonable written acknowledgment
affirming that (i) such individual's examinations of Landlord's
books and records shall be kept confidential, and (ii) the results
thereof and information derived therefrom or obtained in the course
thereof shall not be disclosed by such parties to any person other
than Landlord and Landlord’s employees and agents and
advisors, Tenant and Tenant's employees and agents and advisors
who, in Tenant’s good faith determination, have a need to
know such information and other individuals to whom disclosure is
required by law or governmental rule or regulation or legal or
administrative process; provided, however, such results and
information from the accountant's examination may be used by
Landlord and Tenant in enforcing their respective rights and
obligations hereunder.
Tenant hereby covenants and agrees with Landlord
that any examination of any information relating to Operating
Expenses or Real Estate Related Taxes furnished by Landlord to
Tenant and any examination of Landlord's books and records by
Tenant, its employees or agents shall be kept confidential by
Tenant in accordance with the provisions of this Article 4(H) and
the results of such examinations and information derived therefrom
or obtained in the course thereof shall not be disclosed by Tenant
to anyone or used for any purpose other than as permitted pursuant
to this Article 4.
5. CONDITION OF PREMISES. Tenant's entry into possession of all or any part of the
Premises shall be presumptive evidence as against Tenant that such
part of the Premises was in good order and satisfactory condition
when Tenant took possession, except for (a) any latent defects in
the structure of the Building (including the exterior of the
Building and exterior windows of the Building) or the Building
Systems, or (b) any latent defects in the Shell and Core Work
constructed for Tenant's occupancy pursuant to Article 35(A) or in
the electrical, plumbing, ventilating and/or cooling systems or
other common systems of the Building, excluding items of damage
caused by Tenant, its agents, contractors and suppliers, or (c) any
incomplete Shell and Core Work which shall be identified by
Landlord and Tenant within ten (10) business days after substantial
completion of the Shell and Core Work as "punch list items" and
which will be promptly completed by Landlord. Tenant acknowledges
that no promise of Landlord or its agents to alter, remodel or
improve the Premises or the Building and no representation
respecting the condition of the Premises or the Building have been
made by Landlord or its agents to Tenant other than as may be
contained herein.
(A) Landlord shall use
commercially reasonable efforts to deliver the Premises to Tenant
with the Shell and Core Work substantially complete on or before
the Estimated Delivery Date. In the event that possession of the
Premises shall not be delivered to Tenant on the Estimated Delivery
Date, this Lease shall nevertheless continue in full force and
effect, and no liability shall arise against Landlord out of any
such delay beyond the abatement of rent as provided in Article
35(A) so long as Landlord uses commercially reasonable efforts to
deliver the Premises to Tenant
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with the Shell and Core Work substantially completed
as soon thereafter as possible; provided, however, that if Landlord
shall fail, for any reason other than Force Majeure to deliver the
Premises to Tenant with the Shell and Core Work complete on or
before the day that is one hundred eighty (180) days after the
Estimated Delivery Date, Tenant shall have the right to terminate
this Lease by delivery of thirty (30) days' written notice to
Landlord delivered within ten (10) days of the expiration of such
180 day period.
(B) Tenant
shall have the right to enter into possession of all or any part of
the Premises prior to the Commencement Date, for the purpose of
conducting its business therein. All of the covenants and
conditions of this Lease (including, without limitation, Landlord's
provision of services as described in Article 9 hereof) shall be
binding upon the parties hereto in respect of such pre-Term
possession the same as if the first day of the Term had been fixed
as of the date when Tenant entered into such possession, except
that Tenant for the period prior to the Commencement Date,
Tenant’s obligation to pay any Base Rent shall be prorated to
be equal to the applicable Base Rent multiplied times a fraction,
the numerator of which is the rentable square footage of the
portion of the Premises in possession by Tenant and used by Tenant
for the conduct of its business and the denominator of which is the
rentable square footage of the Premises. Tenant shall have the
ability to apply the abatement amounts set forth in Article 3(B)
above against any Base Rent obligations arising hereunder. Tenant
shall be responsible for the payment of all amounts pursuant to
Article 9 from and after the date that Tenant so enters into
possession.
(A)
Tenant Repair Obligations . Subject to Force Majeure events (as defined in Article
35(A)), and subject to Article 7(C) below, Tenant will, at its own
expense and subject to the provisions of Article 8 of this Lease,
keep the "Tenant Responsible Premises" (as defined below in this
Article 7) in good repair and tenantable condition at all times
during the Term of this Lease, and Tenant shall promptly and
adequately repair all damages to the Tenant Responsible Premises
(except for reasonable wear and tear and as otherwise provided in
Article 25 of this Lease) within a reasonable period of time. If
Tenant does not commence such repairs and proceed diligently
thereafter to completion, after written notice from Landlord,
within ten (10) business days (except in cases of an emergency)
Landlord may, but need not, make such repairs or replacements and
the actual out of pocket amount paid by Landlord for such repairs
and replacements (including Landlord’s overhead and the cost
of providing any general conditions at Landlord’s then
published rates) shall be deemed additional rent reserved under
this Lease due and payable within thirty (30) days after delivery
of a bill therefor by Landlord. Landlord may, but shall not be
required so to do, enter the Premises at all reasonable times to
make such repairs or alterations, improvements and additions,
including but not limited to ducts and all other facilities for air
conditioning service, as Landlord shall reasonably deem necessary
or appropriate for the safety, preservation or improvement of the
Premises or the Building or any equipment located in the Building,
or as Landlord may be required to do by this Lease or by the City
of Chicago or by the order or decree of any court or by any other
governmental authority, provided that Landlord gives Tenant
reasonable prior notice (except in cases of an emergency, in which
case Landlord shall provide such notice as is reasonable under the
circumstances) of any such repairs, alterations, improvements and
additions
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in the Premises, and (except in cases of an
emergency) so long as the performance of such work during ordinary
business hours does not unreasonably interfere with Tenant's
ability to conduct its business in the Premises. Notwithstanding
the foregoing, Tenant may, by written notice to Landlord, designate
portions of the Premises as “ Secured Areas ” should Tenant
require such areas for the purpose of securing certain valuable
property or confidential information. Landlord and Landlord’s
agents may not enter such Secured Areas, except (i) in the event of
an emergency or (ii) to perform any of Landlord’s duties or
work required hereunder, in which case Landlord shall provide
Tenant with reasonable notice of the specific date and time of
entry. Landlord shall not be required to provide any janitorial
services to the Secured Areas.
(B)
Landlord Repair Rights . In the event Landlord or its agents or contractors shall
reasonably elect or be required (subject to the provisions of the
preceding Paragraph A), to make repairs, alterations, improvements
or additions to the Premises or the Building or any equipment
located in the Building, subject to the following sentence,
Landlord shall be allowed to take into and upon the Premises all
material that may be reasonably required to make such repairs,
alterations, improvements or additions and, during the continuance
of any of said work, to temporarily close doors, entryways, public
space and corridors in the Building and to interrupt or temporarily
suspend Building services and facilities without being deemed or
held guilty of eviction of Tenant or for damages to Tenant's
property, business or person, and except as expressly provided
otherwise in this Lease, the rent reserved herein shall in no way
abate while said repairs, alterations, improvements or additions
are being made, and except as expressly provided otherwise in this
Lease, Tenant shall not be entitled to maintain any set-off or
counterclaim for damages of any kind against Landlord by reason
thereof. Landlord may, at its option, make all repairs,
alterations, improvements and additions in and about the Building
and the Premises during ordinary business hours, so long as (except
in case of an emergency) the performance of such work during
ordinary business hours does not unreasonably interfere with
Tenant's access to the Premises or Tenant's ability to conduct its
business in the Premises, and if such work during ordinary business
hours is not of an emergency nature and does not unreasonably
interfere with Tenant's access to the Premises or Tenant's ability
to conduct its business in the Premises and Tenant nonetheless
desires to have the same done during any other hours, Tenant shall
pay for all overtime and additional expenses resulting
therefrom.
(C)
Tenant Responsible Premises
. As used herein, "Tenant Responsible Premises"
shall mean all alterations, additions and improvements in and to
the Premises at any time or from time to time existing, whether
constructed by Landlord or Tenant or acquired by Tenant from any
former tenant, including but not limited to all items of work
constructed in the Premises in preparation for Tenant's initial
occupancy thereof, but excluding all "Building Systems" (as defined
below in this Article 7).
(D)
Landlord’s Repair Obligations
. Subject to Force Majeure events, Landlord shall
keep in good order and repair consistent with the current condition
of the Building (and the cost thereof may be included in Operating
Expenses, except as otherwise provided in Subparagraph B(ii) of
Article 4 hereof) the following items (" Building Systems "): (i) the
structural components and common areas of the Building serving the
Premises; (ii) the mechanical, electrical, plumbing,
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ventilation, and air cooling systems serving the
Premises, including components of said systems outside and up to
the perimeter of the Premises, but, other than as set forth in
clauses (iii) and (iv), excluding any related systems, fixtures and
equipment located within the Premises which are not a part of the
Shell and Core Work; (iii) ventilating and cooling system ducts in
the Premises, but excluding variable air volume (VAV) boxes,
reheats, in-duct fans and other equipment and devices in or
attached to the ducts; and (iv) the Building sprinkler system
serving the Premises, including piping up to the Premises, but
excluding any other piping, heads and apparatus within the
Premises.
Any liability of Tenant or Landlord for the
performance of their respective obligations under this Article 7
shall be subject to the provisions of Articles 11 and 25
hereof.
8.
ALTERATIONS. Tenant
shall not, without the prior written consent of Landlord in each
instance obtained, make any repairs, replacements, alterations,
improvements or additions to the Premises which affect the Building
structure, Building Systems, common areas or other tenants'
premises (collectively, “ Major
Improvements ”). Landlord’s
consent shall not be required for any repairs, replacements,
alterations, improvements or additions to the Premises which are
not Major Improvements (collectively, “ Minor Improvements ” and
together with Major Improvements, collectively, referred to herein
as “ Improvements
”) provided that Tenant shall give Landlord
reasonable prior notice of all Minor Improvements during the Term.
To the extent Landlord's consent is required for any Improvements,
such consent shall not be unreasonably withheld, conditioned or
delayed, but such consent may be conditioned upon such reasonable
requirements regarding such Major Improvements as Landlord deems
appropriate, including without limitation, the submission of
reasonably detailed plans and specifications, and such Major
Improvements shall be of a quality equal to or better than the
reasonable standards of the Building. At the time that Landlord
gives its consent to any such Major Improvements or Landlord
receives notice of any Minor Improvements, Landlord may designate
any items which are atypical for standard office uses or require
unusual expense for removal (such as, but not limited to, satellite
dish equipment, generator equipment, staircases, specialized
flooring, underfloor installations, flooring or installations which
have Tenant’s name or logo, specialized cabling, and/or
vaults) as items which Landlord reserves the right to require
Tenant to remove upon the expiration of the Term or upon any
termination of this Lease or Tenant's right to possession hereunder
(collectively, “ Potential Removal
Improvements ”). Neither approval
of any plans and specifications nor supervision of any improvement
work by Landlord or its agents shall constitute a representation or
warranty by Landlord or its agents that such plans or work either
(i) are complete or suitable for their intended purpose, or (ii)
comply with applicable laws, ordinances, codes and regulations, it
being expressly agreed by Tenant that Landlord assumes no
responsibility or liability whatsoever to Tenant or to any other
person or entity for such completeness, suitability or compliance.
All such Improvements shall be done at Tenant's by contractors
hired by Tenant (which contractors shall be subject to Landlord's
prior written consent, which shall not be unreasonably withheld,
conditioned or delayed, and which contractors must be reputable and
financially responsible, maintain proper insurance and preserve
labor harmony), and, in either event, Tenant shall reimburse
Landlord or its agent a charge for coordination, general
conditions, and other actual costs actually and reasonably incurred
plus any out of pocket costs reasonably incurred by Landlord in
connection with such work, at the rates
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established by Landlord from time to time for the
Building. Tenant may hire its own project manager and not be
required to use Landlord’s designated project
manager.
In the event that Tenant uses its own contractors
for the Improvements Landlord may, without limitation, require
Tenant to: (a) comply with such reasonable construction standards
or procedures as may be applicable from time to time for
construction activities in the Building; (b) give assurances
reasonably satisfactory to Landlord that the construction of such
Improvements will not jeopardize labor harmony; (c) submit
reasonably satisfactory insurance certificates; (d) obtain all
necessary permits; (e) with respect to Improvements costing in
excess of $500,000, furnish reasonably satisfactory security for
the payment of all costs to be incurred in connection with the
Improvements; and (f) upon completing any such Improvements,
furnish Landlord with contractors' affidavits and full and final
waivers of lien and receipted bills covering all labor and material
expended and used and furnish Landlord with final construction
drawings (marked up as constructed) for any such
Improvements.
There are some asbestos-containing materials
(" ACM ") in
some areas of the Building. Landlord has adopted and implemented an
abatement and operations and maintenance program ("
O & M Program "), a
copy of which is available for review by Tenant in Chicago,
Illinois, which sets forth certain procedures to be followed in
connection with any Improvements to be made in the Building, in
order to prevent disturbance to any ACM that may be encountered.
Tenant acknowledges, and hereby expressly agrees to cause its
agents, employees and contractors to comply at all times with, the
O & M Program (as amended from time to time). A summary of the
O & M Program in effect as of the date hereof is attached
hereto as “ Exhibit
C” and made a part
hereof.
Landlord and Tenant acknowledge that the Americans
With Disabilities Act of 1990 (42 U.S.C. § 12-101
et
seq .) and regulations
and guidelines promulgated thereunder, as all of the same may be
amended and supplemented from time to time (collectively "
ADA "), establish
requirements for business operations, accessibility and barrier
removal, and that such requirements may or may not apply to the
Premises and the Building depending on, among other things,
whether: (1) Tenant's business is deemed a "public accommodation"
or "commercial facility", (2) such requirements are "readily
achievable", and (3) a given alteration affects a "primary function
area" or triggers "path of travel" requirements. The parties hereby
agree that (a) Landlord shall be responsible for ADA Title III
compliance in the common areas of the Building and the Shell and
Core Work, except as provided below, (b) Tenant shall be
responsible for ADA Title III compliance in the Premises, including
the threshold and doorway into the Premises and any leasehold
improvements or other work to be performed in the Premises under or
in connection with this Lease other than the Shell and Core Work,
and (c) Landlord may perform, or require that Tenant perform, and
Tenant shall be responsible for the cost of, ADA Title III "path of
travel" requirements on the floor of the Building on which the
Premises is located triggered by Improvements in the Premises other
than the Shell and Core Work and the Tenant's Work to be performed
in connection with Tenant's initial occupancy of the Premises.
Tenant shall be solely responsible for requirements under Title I
of the ADA relating to Tenant's employees.
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All Improvements shall comply with all applicable
insurance requirements (of which Tenant has notice) and with all
applicable governmental laws, requirements, codes, ordinances and
regulations. All Improvements shall be constructed in a good and
workmanlike manner and only good grades of material shall be used.
Except for the negligence and willful misconduct of Landlord, its
members and their respective officers, directors, managers,
beneficiaries, partners, members, agents and employees or their
respective agents, Tenant shall protect, defend, indemnify and hold
Landlord, the Building and the Property, Landlord's members, and
their respective officers, directors, managers, beneficiaries,
partners, members, agents and employees harmless from any and all
liabilities of every kind and description which may arise out of or
in connection with the construction of the Improvements by or on
behalf of Tenant.
All Improvements made by Landlord or Tenant in or
upon the Premises whether temporary or permanent in character,
including but not limited to wall coverings, carpeting and other
floor covering, lighting installations, built-in or attached
shelving, cabinetry, and mirrors, shall become Landlord's property
and shall remain upon the Premises at the termination of this Lease
by lapse of time or otherwise without compensation to Tenant
[excepting only Tenant's movable office furniture, trade fixtures
(other than permanently attached or installed lighting equipment or
can lighting), and office equipment and other personal property];
provided, however, that Landlord shall have the right to require
Tenant to remove at Tenant's sole cost and expense in accordance
with the provisions of Article 16 of this Lease any or all of the
Potential Removal Improvements which are so identified by Landlord
in accordance with the first paragraph of this Article 8; any and
all hazardous materials installed or placed in the Premises by
Tenant; and any equipment installed by Tenant on the roof of the
Building or elsewhere outside the Premises, and all cabling and
wiring and other facilities located outside the Premises (including
cabling to the roof and/or cabling located in the risers and/or
shafts) and serving or intended to serve the Premises.
All cabling, wiring and equipment installed at any
time by or on behalf of Tenant outside of the Premises on the
Property, whether as part of the initial Tenant's Work or otherwise
(which installation shall in all cases be subject to Landlord's
consent in its sole but good faith discretion), shall be operated
and maintained at Tenant's sole cost and expense in a manner which
does not disturb improvements on the Property or the operation
thereof or interfere with the operations of, or services provided
to, tenants in the Building. Any such installation, operation, and
maintenance shall be in accordance with any reasonable rules and
regulations established by the Landlord from time to time, shall be
at Tenant's sole risk, and shall be subject to the Tenant insurance
requirements of Article 25 hereof and the provisions of Article 11
hereof. All such cabling, wiring and equipment shall be
appropriately identified by color code, identification plate and/or
other means reasonably specified by Landlord at the time of
installation if initially installed by Tenant, and Tenant shall
provide Landlord with plans and drawings locating and identifying
such items in such detail as may be reasonably requested by
Landlord.
9. SERVICES. Landlord
shall provide the following services on all days during the Term of
this Lease excepting Sundays and Holidays, unless otherwise stated
below, and the cost thereof is included in Base Rent unless
otherwise expressly provided below:
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(A) Adequate passenger
elevator service will be furnished daily during Business Hours
(defined below) and one (1) passenger elevator at all other times
(including Sunday Holidays (defined below), subject to Force
Majeure. “ Holidays
” means New Year's Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day and
at Landlord’s reasonable discretion, other state and
nationally recognized holidays selected by Landlord which are
consistent with the practices of the majority of the owners of the
Comparable Buildings.
(B) Conditioned air
for ventilating and cooling to the Premises as required for the
comfortable use and occupancy of the Premises for the Permitted Use
from 8:00 A.M. to 6:00 P.M. Monday through Friday, and 9:00 A.M.
and 1:00 P.M. Saturday, not including Holidays, in accordance with
the standards for the Premises set forth in the description of the
Shell and Core Work in Exhibit
"E" attached hereto and made a part
hereof. Whenever heat-generating machines, equipment or lighting
fixtures installed by Tenant (of a type not customarily associated
with the Permitted Use) or excessive electrical usage (i.e., usage
above the electrical usage specified on Exhibit E) by Tenant
affects the temperature otherwise maintained by Landlord in the
Premises, Landlord shall continue to provide the standard
ventilation and air conditioning in the portion of the Premises so
affected in accordance with said standards but shall not be
responsible for any excess temperatures, and in such event Landlord
further reserves the right at its option to (1) require Tenant to
discontinue use of such heat-generating machines, equipment,
lighting fixtures or excessive electrical load, or (2) install
supplementary air conditioning units in the Premises, the actual
cost of the acquisition, installation, operation and maintenance of
which shall be paid by Tenant to Landlord. Tenant agrees that at
all times it will cooperate with Landlord and abide by all
reasonable regulations and requirements which Landlord may
prescribe for the proper functioning of the ventilating and air
conditioning systems.
Landlord agrees that it shall make available to
Tenant after-hours ventilating and cooling service (“
After Hours HVAC ”) at the expense of Tenant at times other than those
identified above in this Paragraph (B), provided that if Tenant
desires any such service on Mondays through Fridays (holidays
described above excepted), it shall request such service from
Landlord on or before 4:00 p.m. on the day for which such service
is requested, and in the event Tenant desires such service on
Saturdays or Sundays or Holidays, it shall request such service
from Landlord no later than 4:00 p.m. on Friday (for service on
Saturday or Sunday) and by 4:00 p.m. on the day preceding any
Holiday (for service on such Holiday). Tenant shall pay for all
such after-hours ventilating and cooling services at Landlord's
published rates in effect from time to time in the Building. Such
rates shall not increase annually beyond actual increases
attributable to labor and utility cost increases. Tenant may
request such after-hours ventilating and cooling service by zone
(determined by the respective areas served by separate fan rooms);
and if another tenant has also specifically requested such
after-hours service in the same zone during the same time period as
requested by Tenant, Landlord shall reasonably and equitably
allocate the charge for such service between Tenant and such other
tenants so requesting such service.
(C) Electricity for
the Premises shall not be furnished by Landlord but shall be
furnished and billed directly to Tenant by the electric utility
company serving the Building. Landlord shall cause the Premises to
be separately metered, if necessary. Tenant shall make all
necessary
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arrangements with the utility company for paying for
electric current furnished by it to Tenant and Tenant shall pay for
all charges for electric current consumed on the Premises during
the Term of this Lease. Tenant agrees that the Premises shall be
engineered so that during and after normal Business Hours the
minimum temperature required therein shall be maintained by Tenant
at all times so long as electrical service to the Premises is not
terminated or interrupted through no fault or neglect of Tenant.
Tenant shall not install or operate any electrical equipment or
fixtures that overload lines servicing the Premises or which exceed
the loads indicated in Exhibit
"E" .
The parties acknowledge that Commonwealth Edison Co.
(" Utility ") is
presently the utility company selected by Landlord to provide
electricity service to the Premises, the Building and the
Building's common areas and appurtenances. Notwithstanding the
foregoing, Landlord, unless prohibited by law, shall have the
exclusive right at any time and from time to time during the Term
to either contract for service from a different company or
companies providing electricity service [each such different
company is hereinafter referred to as an " Electric Service Provider " ("
ESP ")] or continue to
contract for service from the Utility for the Premises, the
Building and the Building's common areas and appurtenances. Tenant
shall at all times reasonably cooperate (at no expense to Tenant)
with Landlord, the Utility and ESP and, as reasonably necessary or
requested, shall allow Landlord, the Utility and ESP reasonable
access to the Premises' and/or the Building's electric lines,
feeders, risers, wiring, cabling and any other machinery or
apparatus within the Premises. To the extent, if any, [that
Landlord is prohibited from selecting the utility company of its
choice and] Tenant is specifically and expressly allowed by law
(otherwise, Tenant shall not be allowed to make such selection) to
select and Tenant does select an ESP (an “
Other ESP ”)
other than the Utility or other ESP selected by Landlord, Tenant
shall: (a) reimburse Landlord for the cost(s) of repairing any
and all damage to the Premises, the Building and the Building's
common areas and appurtenances caused directly or indirectly by
Tenant's selected such Other ESP or its personnel or equipment, and
Landlord hereby reserves the right to charge Tenant as additional
rent for such cost(s) if such reimbursement for same is not
promptly made; and (b) indemnify and hold Landlord harmless
from and against any and all claims, demands, costs, expenses
(including attorney's fees), liens and causes of action in any way
whatsoever arising out of, or in any manner whatsoever relating to,
actions or inactions by Tenant's selected Other ESP.
(D) Janitorial
services, as specified on Exhibit
"D" attached hereto and made a part
hereof, shall be provided by Landlord, except that all increases in
the costs of providing such janitorial services to Tenant in any
calendar year in excess of the actual annualized cost per rentable
square foot of providing such services to Tenant in calendar year
2009 on an estimated basis in monthly installments subject to final
year-end adjustment in the same manner as provided for the Article
4 Additional Rent in Article 4. Tenant may from time to time
procure directly from Landlord's cleaning contractor at Tenant's
expense such additional cleaning services as are desired by
Tenant.
(E) Building
directory identification of a reasonable number of listings for
Tenant (not less than ten (10) listings). Additionally, Tenant may
at its sole cost, subject to Landlord’s prior review and
approval (not to be unreasonably withheld, conditioned or
delayed),
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install (i) Building standard signage on the 5th
floor of the Building and (ii) signage in keeping with its
corporate standards on the side of the escalator facing into the
elevator lobby on the 5 th floor of the
Building.
(F) Cold water
(and hot water in public restrooms) connection for normal washroom
and employee lunchroom and cleaning purposes, twenty-four (24)
hours a day, seven (7) days a week, fifty-two (52) weeks a year,
subject to Force Majeure.
(G) Additional
services (in addition to those described above) may be provided on
terms and conditions as may be mutually agreed upon by Landlord and
Tenant. Subject to Force Majeure, Tenant and its employees and
invitees shall have access (including passenger elevator) to the
Premises twenty-four (24) hours a day, seven (7) days a week,
fifty-two (52) weeks a year. At times other than normal business
hours (i.e. 8 A.M. to 6 P.M. Monday through Friday) access shall be
available through limited entrances and subject to reasonable
regulations and procedures in place in the Building from time to
time, including the furnishing of proper employee identification or
authorization and the registering of a person's name, room number
and time of entry and departure in a register furnished by Landlord
and placed in the lobby of the Building.
Tenant shall apply to the applicable utility company
or municipality for gas, telephone and all other utility services,
other than those provided by Landlord, required by Tenant for use
in the Premises in accordance with Article 2 hereof and, subject to
Article 8 hereof, Tenant shall be responsible for the connection
and installation of same.
All charges for any services that are provided to
Tenant at a separate charge (i.e., not as part of Operating
Expenses) (“ Additional
Services ”) shall be deemed rent
reserved under this Lease and shall be due and payable at the same
time as the installment of rent with which they are billed, or, if
billed separately, shall be due and payable within thirty (30) days
after such billing. In the event Tenant shall fail to make payment
for such Additional Services Landlord may, in addition to all other
remedies which Landlord may have for the non-payment of rent and
without further notice to Tenant, prospectively discontinue
providing any such Additional Services and such discontinuance
shall not be held or pleaded as an eviction or as a disturbance in
any manner whatsoever of Tenant's possession, or relieve Tenant
from the payment of rent when due, or vary or change any other
provision of this Lease or render Landlord liable for damages of
any kind whatsoever.
Tenant agrees that, to the extent permitted by law,
neither Landlord nor its members nor any of their respective
officers, trustees, directors, managers, shareholders, members,
partners, beneficiaries, employees or agents, shall be liable to
Tenant, or any of Tenant's employees, agents, customers or invitees
or anyone claiming through, by or under Tenant, for any damages,
injuries, losses, expenses, claims or causes of action, because of
any interruption, diminution, delay or discontinuance at any time
in the furnishing of any of the above services (including access to
the Premises as described above in this Article 9) and/or the
interruption of any services being provided to the Premises by
other vendors, when such interruption, diminution, delay or
discontinuance is occasioned, in whole or in part, by repairs,
renewals, improvements or additions, by any strike, lockout or
other labor trouble, by inability to secure gas, electricity, water
or other fuel at the
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Execution Version
Building, by any accident or casualty whatsoever, by
act or default of Tenant or other parties, any other cause beyond
Landlord's reasonable control; nor shall any such interruption,
diminution, delay or discontinuance be deemed an eviction or
disturbance of Tenant's use or possession of the Premises or any
part thereof; nor shall any such interruption, diminution, delay or
discontinuance relieve Tenant from full performance of Tenant's
obligations under this Lease, except as otherwise expressly
provided herein. Notwithstanding the foregoing, in the event that
(i) any interruption or discontinuance of services (including
access to the Premises as described above) required to be provided
pursuant to this Article 9 which was within the reasonable control
of Landlord to prevent continues beyond three (3) consecutive
business days after written notice to Landlord and materially and
adversely affects Tenant's ability to conduct business in the
Premises, (ii) the performance by Landlord of repairs in the
Building that are not the responsibility of Tenant materially and
adversely affects Tenant's ability to conduct business in the
Premises and continues beyond three (3) consecutive business days
after written notice to Landlord, (iii) any entry by Landlord or
any of its agents or employees into the Premises, or any repair,
maintenance or alteration which is required hereunder to be
performed by Landlord and which Landlord fails to perform
materially and adversely affects Tenant's ability to conduct
business in the Premises and continues beyond three (3) consecutive
business days after written notice to Landlord (any such set of
circumstances as set forth in items (i), (ii), or (iii), above, to
be known as an “ Abatement
Event ”), and on account of such
Abatement Event, Tenant ceases doing business in the Premises (or a
material portion thereof), Base Rent shall abate thereafter (as to
the Premises or as to such material portion thereof, as the case
may be) and for so long as Tenant remains unable to conduct its
business in the Premises. Landlord agrees to use reasonable efforts
to restore such interrupted or discontinued service or to complete
such repairs, as the case may be, as soon as reasonably
practicable.
10. COVENANT AGAINST LIENS.
Tenant agrees to pay when due for any work done or
materials furnished by or on behalf of Tenant in or about the
Premises or to all or any part of the Property and nothing in this
Lease contained shall authorize or empower Tenant to do any act
which shall in any way encumber the title of Landlord in and to the
Premises or to the Property, nor shall the interest or estate of
Landlord therein be in any way subject to any claims by way of lien
or encumbrance whether claimed by operation of law or by virtue of
any express or implied contract of Tenant, and any claim to a lien
upon the Premises or the Property arising from any act or omission
of Tenant shall accrue only against Tenant and shall in all
respects be subordinate to the title and rights of Landlord to the
Premises and the Property. Tenant covenants and agrees not to
suffer or permit any lien or encumbrance to be placed against the
Premises, the Building or the Property with respect to work or
services claimed to have been performed for or materials claimed to
have been furnished to Tenant or the Premises and, in case of any
such lien or encumbrance attaching, or claim thereof being
asserted, Tenant agrees to cause it to be promptly released and
removed of record, or to provide security as hereinafter provided.
If Tenant has not removed any such lien or encumbrance or provided
Landlord with a title indemnity bond or such other security as is
reasonably satisfactory to Landlord within twenty five (25) days
after notice to Tenant by Landlord of the existence of such lien or
encumbrance, such failure shall constitute a default hereunder and,
in addition to all other remedies available herein, Landlord may,
but shall not be obligated to, pay the amount necessary to remove
the lien or encumbrance, without being
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Execution Version
responsible for making any investigation as to the
validity thereof, and the actual amount so paid together with all
costs and expenses, including reasonable attorneys' fees, incurred
in connection therewith shall be deemed additional rent reserved
under this Lease due and payable within ten (10) days after demand
therefor together with reasonable supporting
documentation.
11. WAIVER OF CLAIMS. Subject to the provisions of Article 25 and the second
paragraph of this Article 11, Tenant agrees that Landlord,
Landlord's members and their respective officers, directors,
managers, shareholders, partners, members, beneficiaries, agents,
and employees shall not be liable to Tenant for (subject, however,
to the provisions of Article 9 as to the abatement of rent) any
direct or consequential damage (including, without limitation,
damages claimed for actual or constructive eviction) sustained by
Tenant, due to the Building, the Property, or any part thereof or
any appurtenances thereof becoming out of repair, or due to the
happening of any accident in or about the Building or the Property,
or due to any act or neglect of any tenant or occupant of the
Building or the Property, or any other person, except to the extent
that any such damage is caused by the negligence or intentional
acts of Landlord, its members or their respective agents,
contractors, servants or employees. The foregoing provision,
subject in all events to the provisions of Article 25 as stated
above, shall apply particularly (but not exclusively) to damage
caused by fire, explosion, water, snow, frost, steam, sewerage,
illuminating gas, sewer gas or odors, or by the bursting or leaking
of pipes, plumbing fixtures, or sprinkler system; without
distinction as to the person whose act or neglect was responsible
for the damage and whether the damage was due to any of the causes
specifically enumerated above or to some other cause of an entirely
different kind. Tenant further agrees that all personal property
upon the Premises or brought or caused to be brought within the
Building by Tenant shall be at the risk of Tenant only and that
Landlord shall not be liable for any damage thereto or any theft
thereof, except to the extent caused by the negligence or
intentional acts of Landlord, its members or their respective
agents, contractors, servants or employees, subject in all events,
however, to the provisions of Article 25. Subject to the provisions
of Article 25 hereof, and except for the negligence or intentional
acts of Landlord, its members or their respective agents,
contractors, servants or employees, Tenant shall protect,
indemnify, defend and save Landlord, its members and their
respective officers, directors, managers, shareholders, partners,
members, beneficiaries, agents and employees harmless from and
against any and all liabilities, damages, costs, claims,
obligations and expenses (collectively, “
Claims ”) (a)
arising out of or in connection with Tenant's use or occupancy of
the Premises or Tenant's activities in or about the Building or the
Property (in each instance, to the extent covered by Tenant’s
insurance policies carried pursuant to the provisions of Article
25, below), or (b) arising out of (and to the extent caused by) any
intentional act or negligence of Tenant or its agents, contractors,
servants, or employees.
Subject to the provisions of Article 25 hereof,
Landlord agrees that Tenant and its officers, directors, agents and
employees shall not be liable to Landlord for any direct or
indirect damage to the Building Systems or to person or property
sustained by Landlord or any other person, caused by any portion of
the Tenant Responsible Premises or any of Tenant's fixtures or
equipment becoming out of repair or due to the happening of any
accident in or about the Premises, except to the extent that any
such damage is caused by the negligence or intentional acts of
Tenant or Tenant's agents, contractors, servants or employees.
Subject to the provisions of Article 25 hereof, and except
for
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Execution Version
the negligence or intentional acts of Tenant or its
agents, contractors, servants, or employees, Landlord shall
protect, indemnify, defend and save Tenant, and its officers,
directors, shareholders, agents and employees harmless from and
against any and all Claims arising out of or in connection with
(and to the extent caused by) any intentional act or negligence of
Landlord or its agents, contractors, servants, or
employees
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12. ASSIGNMENT AND
SUBLETTING.
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(A). Except as provided otherwise herein, Tenant
shall not, without the prior written consent of Landlord, (i)
assign, convey, mortgage, pledge or otherwise transfer this Lease,
or any part thereof, or any interest hereunder; (ii) permit any
assignment of this Lease, or any part thereof, by operation of law;
(iii) sublet the Premises or any part thereof, or (iv) permit the
use of the Premises, or any part thereof, by any parties other than
Tenant, its agents and employees. without the prior written consent
of Landlord, which shall not be unreasonably withheld conditioned
or delayed (any event described in clause (i), (ii), (iii) or (iv),
above, a “ Transfer
”) (with the parties agreeing that it shall be
reasonable for Landlord to withhold its consent to any proposed
Transfer to a tenant of the Building or the adjacent Merchandise
Mart building (the “Mart Building”) or a prospective
tenant of the Building or the Mart Building to whom Landlord has
presented a written proposal within the six (6) month period prior
to Tenant’s request for Landlord’s consent at any time
that Landlord or the owner of the Mart Building can accommodate
such existing or prospective tenant’s needs in the Building
and/or the Mart Building). The foregoing clause (iv) shall not
prohibit the use (in conformity with all of the applicable
provisions of this Lease) of up to 25% of the space in the Premises
by Tenant’s Occupants, as hereinafter defined, provided (1)
such space is not separately demised or otherwise separated from
the Premises, (2) such space is used solely by such Tenant’s
Occupants in connection with a project or business venture being
conducted by Tenant, and (3) Tenant is receiving no rent, payment
or other consideration in connection with such use or occupancy
except for possible reimbursement of occupancy costs (such as
copying fees, secretarial fees, phone and/or utility usage) but in
no event shall this include any reimbursement of rent or be in lieu
of rent. Tenant shall, by notice in writing, advise Landlord of its
desire from, on and after a stated date (which shall not be less
than fifteen (15) days after the date of Tenant's notice), to
assign this Lease, or any part thereof, or to sublet any part or
all of the Premises for the balance or any part of the Term.
Tenant's notice (a “ Transfer
Notice ”) shall: state the name and
address of the proposed assignee or subtenant; provide financial
information in reasonable detail concerning the proposed assignee
or subtenant (subject to Tenant's obligation to provide such
additional information concerning the financial condition of the
proposed assignee or subtenant as may be reasonably requested by
Landlord); and include a description of all of the material terms
of the proposed assignment or sublease (whether contained in such
assignment or sublease or in separate agreements). In the event
Tenant delivers such Transfer Notice, except as to a transaction
involving a Tenant Occupant (as defined below) or an Affiliate or
Successor (as such terms are defined below) of Tenant, or a
sublease offering less then 50% of the Premises and for a term of
less than all of the then remaining Term (excluding any unexercised
extension terms), Landlord shall have the right, to be exercised by
giving written notice to Tenant within ten (10) business days after
receipt of the Transfer Notice, to recapture the space described in
the Transfer Notice and such recapture notice shall, if given,
cancel and terminate this Lease with respect to the space
therein
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Execution Version
described as of the date stated in the Transfer
Notice; provided, however, that if Landlord elects to recapture the
space, the Tenant shall have five (5) business days from the date
of Landlord's election to recapture to rescind in writing its
Transfer Notice in which case the recaptured space shall remain a
part of the Premises under the Lease. If the Transfer Notice shall
cover all of the Premises, and Landlord shall have exercised its
foregoing recapture right, the Term of this Lease shall expire and
end on the date stated in Tenant's notice as fully and completely
as if that date had been herein definitely fixed for the expiration
of the Term. If, however, this Lease be cancelled with respect to
less than the entire Premises, Base Rent and Article 4 Additional
Rent shall be adjusted on the basis of the number of rentable
square feet retained by Tenant in proportion to the number of
rentable square feet contained in the Premises, as described in
this Lease, and this Lease as so amended shall continue thereafter
in full force and effect. “ Tenant’s Occupants ”
means Tenant’s Affiliates (defined below) and other entities
or persons with whom Tenant has a good faith business
relationship.
(B) If
Landlord, upon receiving a Transfer Notice with respect to any such
space, shall not exercise its right to (or shall have no right to)
recapture as aforesaid, and if there is no Event of Default,
Landlord will not unreasonably withhold, condition or delay its
consent to Tenant's assignment of the Lease or subletting such
space to the party identified in Tenant's Transfer Notice and upon
the terms set forth in Tenant's Transfer Notice, provided, however,
that in the event Landlord consents to any such assignment or
subletting, and as a condition thereto, except with respect to any
assignment or subletting to an Affiliate or Successor of Tenant,
Tenant shall pay to Landlord fifty percent (50%) of all profit (as
defined below) derived by Tenant from such assignment or
subletting. If Landlord does not elect to recapture the space as
aforesaid, Landlord shall notify Tenant within twenty five (25)
days of its receipt of a Transfer Notice whether it will or will
not approve the proposed Transfer (and if Landlord does not approve
any proposed Transfer, Landlord shall reasonably describe its basis
for not approving the same). For purposes of the foregoing,
“ profit ” shall mean the amount paid or payable to Tenant to
effect or to induce Tenant or any third party to enter into any
such transaction, and the amount of all rent and other
consideration of whatever nature payable by such assignee or
sublessee or a third party in excess of the Base Rent and rent
adjustments payable by Tenant under this Lease, after deducting
therefrom Tenant's actual expenses incurred in connection with such
sublease or assignment (collectively, “ Transfer Costs ”), including,
without limitation, advertising expenses, brokerage commissions,
rent concessions, tenant improvement allowances, other financial
concessions, and legal fees. If a part of the consideration for
such assignment or subletting shall be payable other than in cash,
the payment to Landlord of its share of such non-cash consideration
shall be in such form as is reasonably satisfactory to
Landlord.
(C) With respect to any assignment or subletting for
which Tenant must pay to Landlord fifty percent (50%) of all profit
derived from such assignment or subletting, Tenant shall and hereby
agrees that it will furnish to Landlord upon request from Landlord
a complete statement, setting forth in reasonable detail the
computation of all profit derived and to be derived from such
assignment or subletting, such computation to be made in accordance
with GAAP. Tenant agrees that Landlord or its authorized
representatives shall be given access at all reasonable times to
the books, records and papers of Tenant reasonably relating to the
computation of profit with respect to
22
Execution Version
any such assignment or subletting, and Landlord
shall have the right to make copies thereof. The percentage of
profit due Landlord hereunder shall be paid to Landlord after
recovery by Tenant of its Transfer Costs, within thirty (30) days
of receipt of each payment of profit made from time to time by such
assignee or sublessee to Tenant.
(D) Landlord's consent to any assignment or sublease
shall not operate as a consent to any subsequent assignment or
sublease or as a waiver of Landlord's right to require Tenant to
seek Landlord's approval of all subsequent assignments and
subleases. Any subletting or assignment hereunder shall not release
or discharge Tenant of or from any liability, whether past, present
or future, under this Lease, and Tenant shall continue fully liable
hereunder. Any subtenant or assignee shall agree in a form
satisfactory to Landlord to comply with and be bound by all of the
terms, covenants, conditions, provisions and agreements of this
Lease, including without limitation Article 2 hereof, to the extent
of the space sublet or assigned, and Tenant shall deliver to
Landlord promptly within ten (10) business days after execution, a
fully executed copy of each such sublease or assignment and all
other agreements related thereto and an agreement of compliance by
each such subtenant or assignee. Tenant agrees to pay to Landlord,
on demand, all reasonable costs incurred by Landlord (including
fees paid to consultants, brokers, accountants and attorneys), not
to exceed $2,500.00, in connection with any request by Tenant for
Landlord to consent to any assignment or subletting by Tenant. Any
sale, assignment, mortgage, transfer, or subletting of this Lease
which is not in compliance with the provisions of this Article
shall be of no effect and void. Notwithstanding any requirement for
Landlord to consider, solicit or obtain a sublease or assignment,
whether statutory or otherwise, Landlord and Tenant expressly agree
that Landlord's obligation with respect to such sublease or
assignment shall arise only when Tenant submits such sublease or
assignment to Landlord in the manner set out in this Article 12.
Notwithstanding anything else herein to the contrary, in no event
shall Tenant assign and/or sublet all of any portion of the
Premises in contravention of the terms of this Lease, including the
use clause set forth in Article 2 hereof.
(E) For purposes of the foregoing, (i) if Tenant is
a partnership, any change in the partners of Tenant resulting in a
change in the control of such partnership, or (ii) if Tenant is a
corporation the voting stock of which is not listed on a nationally
recognized security exchange or the National Association for
Securities Dealers Automated Quotations (NASDAQ) or its equivalent,
any transfer of any or all of the shares of stock of Tenant by
sale, assignment, operation of law or otherwise resulting in a
change in the present control of such corporation, (iii) if Tenant
is a limited liability company any change in the managing member
causing a change in the present control of such limited liability
company, or (iv) the transfer of all or substantially all of the
assets of Tenant; shall be deemed to be an assignment within the
meaning of this Article 12. Notwithstanding the foregoing, this
shall not apply to the registered offering of the stock of Tenant,
provided that (1) there is no material change in Tenant's
management on account thereof, and (2) Tenant gives Landlord prior
notice (except to the extent not permitted under applicable laws,
rules, or regulations) of such registered public
offering.
(F) Notwithstanding anything set forth above to the
contrary, Tenant shall have the right without the prior consent of
Landlord, to assign this Lease or sublet the Premises or any part
thereof
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Execution Version
to any Successor or Affiliate, as hereinafter
defined, of Tenant, or to effect a transfer of ownership, control
or assets of Tenant to a Successor or Affiliate of Tenant, on the
following conditions: (i) Tenant shall notify Landlord in writing
of such assignment, subletting or transfer not less than ten (10)
days prior to the effective date thereof (except to the extent
prior notice is not permitted under applicable laws), and furnish
to Landlord such information (including the most recent financial
statement or in lieu thereof a certificate of such entity stating
its minimum net worth) regarding the identity, business, reputation
and financial condition of such Affiliate or Successor as Landlord
may reasonably request in connection with its exercise of rights
under this Section 12(F); (ii) Tenant shall deliver to Landlord
evidence reasonably satisfactory to Landlord that such Affiliate or
Successor satisfies the requirements of this grammatical paragraph
of Article 12; (iii) in the case of any assignment (other than a
deemed assignment by transfer of ownership, control or assets of
Tenant) or any subletting, Tenant shall deliver to Landlord copies
of all operative documents effecting such assignment or subletting,
which documents shall be reasonably acceptable to Landlord; and in
the case of a deemed assignment by transfer of ownership, control
or assets of Tenant, Tenant shall deliver to Landlord an executed
copy of an agreement by which such transferee Affiliate or
Successor has assumed (explicitly or implicitly) all of the rights
and obligations of Tenant under this Lease; (iv) any such
subletting, assignment or transfer shall not release or discharge
the initial Tenant of or from any liability, whether past, present
or future, under this Lease and the initial Tenant shall continue
fully liable hereunder; and (v) in the event of an assignment of
this Lease to a Successor or Affiliate, the creditworthiness of
such Successor or Affiliate shall be reasonably acceptable to
Landlord. " Successor
" is defined as any person, corporation or entity
that acquires in a single transaction or in a series of related
transactions (by merger, consolidation, transfer of assets or
otherwise), all or substantially all of the property and assets of
Tenant or all of the outstanding equity interest in Tenant or that
otherwise results from a merger or consolidation with Tenant; and
" Affiliate " is
defined as any corporation that through one or more intermediaries,
controls or is controlled by, or is under common control with,
Tenant (" control " meaning the possession of the power to direct or cause the
direction of the management and policies of an entity, whether
through the ownership of voting securities, by contract or
otherwise). If, after giving effect to any such assignment,
subletting or transfer to a Successor or Affiliate and any merger,
consolidation, reorganization or transfer of assets in connection
therewith, the aggregate net worth of the assigning Tenant
(remaining liable on the Lease), any prior tenants (remaining
liable under the Lease) and the assignee, sublessee or transferee
would be substantially the same as or greater than the net worth of
the Tenant (and any prior tenant previously liable on the Lease)
immediately prior to such assignment, sublease or transfer (and any
merger, consolidation, reorganization or transfer of assets in
connection therewith), then Landlord shall determine the
creditworthiness of the Successor or Affiliate to be acceptable. It
shall be a condition of Tenant's right to exercise any rights under
this Article 12 herein that there shall not actually exist an Event
of Default at the time Tenant delivers its written notice to
Landlord of the proposed sublet or assignment (provided the
foregoing shall not limit or affect Landlord's rights to enforce
any defaults of Tenant pursuant to Article 15 hereof).
(G) Notwithstanding any other provisions of this
Lease to the contrary, neither Tenant nor any direct or indirect
assignee or subtenant of Tenant, including without limitation any
Successor or Affiliate, may enter into any lease, sublease,
license, concession or other agreement
24
Execution Version
for use, occupancy or utilization of space in the
Premises which would require the payment of rent based on the net
profits of any person or of any consideration that would not fall
within the definition of “rents from real property”, as
that term is defined in Section 856(d) of the Internal Revenue Code
of 1986, as amended.
13. EXPENSES OF ENFORCEMENT.
Tenant shall pay all reasonable attorneys' fees and
expenses of Landlord incurred in successfully enforcing any of the
obligations of Tenant under this Lease. Landlord shall pay all
reasonable attorneys' fees and expenses of Tenant incurred in
successfully enforcing any of the obligations of Landlord under
this Lease.
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14.
[Intentionally Omitted].
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15. LANDLORD'S REMEDIES. If (i) default shall be made in the payment of the rent or any
installment thereof or in the payment of any other sum required to
be paid by Tenant under this Lease, and such default shall continue
for ten (10) days after written notice to Tenant or (ii) default
shall be made in the performance of any of the other covenants or
conditions which Tenant is required to observe and perform
hereunder or under any other lease or agreement between Landlord
and Tenant and such default shall continue for thirty (30) days
after written notice to Tenant (or if any such default cannot be
cured within such 30-day period, so long as Tenant has promptly
commenced to cure such default during such initial 30-day period
and thereafter diligently pursues such cure to completion within a
reasonable period of time and in all events within an additional
ninety (90) days after the expiration of said 30-day period, or
(iii) the interest of Tenant in this Lease shall be levied on under
execution or other legal process (and such levy is not dismissed or
stayed within sixty (60) days), or any petition shall be filed by
or against Tenant to declare Tenant a bankrupt (and is not
dismissed or stayed within ninety (90) days) or to delay, reduce or
modify Tenant's debts or obligations or any petition shall be filed
or other action taken to reorganize or modify Tenant's capital
structure, if Tenant be a corporation or other entity, or Tenant be
declared insolvent according to law or if any assignment of
Tenant's property shall be made for the benefit of creditors or a
receiver or trustee is appointed for Tenant or its property or (iv)
Tenant shall abandon the Premises (without payment of rent) during
the Term of this Lease, then Landlord may treat the occurrence of
any one or more of the foregoing events (an “
Event of Default ”) as a breach of this Lease, and thereupon at its option
may, without (except as required by law) further notice or further
demand of any kind to Tenant or any other person, have any one or
more of the following described remedies in addition to all other
rights and remedies provided at law or in equity:
(A) Landlord may, in
accordance with applicable law, terminate this Lease and the Term
created hereby, in which event Landlord may forthwith repossess the
Premises by forcible entry and detainer suit or otherwise and be
entitled to recover forthwith as damages a sum of money equal to
the present value of the rent provided to be paid by Tenant for the
balance of the stated Term of the Lease, less the present value of
the fair rental value of the Premises for such period, and any
other sum of money and damages then owed by Tenant to
Landlord.
(B) Landlord may, in
accordance with applicable law, terminate Tenant's right of
possession and may repossess the Premises by forcible entry and
detainer suit, or otherwise, without
25
Execution Version
(except as required by law) further demand or notice
of any kind to Tenant and without terminating this Lease, in which
event Landlord shall reasonably attempt to mitigate its damages.
Landlord in such instances expressly reserves the right to relet
all or any part of the Premises for such rent and upon such terms
as shall be satisfactory to Landlord (including the right to relet
the Premises for a term greater or lesser than that remaining under
the Term of this Lease and the right to relet the Premises as a
part of a larger area and the right to change the character or use
made of the Premises). For the purpose of such reletting, Landlord
may make such repairs, changes, alterations or additions in or to
the Premises as may be necessary or convenient. If Landlord shall
fail (despite its commercially reasonable efforts) to relet the
Premises, then Tenant shall pay to Landlord as damages, a sum equal
to the amount of the rent reserved in this Lease for such period or
periods. If the Premises are relet and a sufficient sum shall not
be realized from such reletting after paying all of the costs and
expenses of such repairs, changes, alterations and additions and
the expense of such reletting and the collection of the rent
accruing therefrom, to satisfy the rent above provided to be paid,
Tenant shall satisfy and pay any such deficiency upon demand
therefor from time to time; and Tenant agrees that Landlord may
file suit to recover any sums falling due under the terms of this
paragraph from time to time and that any suit or recovery of any
portion due Landlord hereunder shall be no defense to any
subsequent action brought for any amount not theretofore reduced to
judgment in favor of Landlord.
(C) In
addition the event of a default by Tenant, Landlord shall be
entitled to receive as damages from Tenant (in addition to, but
only to the extent not included in, any other damages provided
herein) an amount equal to (i) the then unamortized amount of the
Landlord's Contribution (defined below) and Additional Allowance
disbursed to Tenant pursuant to Article 34 hereof, assuming
amortization of such amount over a period of 156 calendar months,
commencing on the Commencement Date (or, if the Commencement Date
is not the first day of a calendar month, on the first day of the
first calendar month following the Commencement Date, at a level
monthly payment with an interest factor equal to ten percent (10%)
per annum, plus (ii) an amount equal to the unamortized amount of
the abatement amount as provided in Article 3(B) hereof (with
amortization of such amount in the same manner as described in
clause (i), above); provided, however, in no event shall the
provisions of this Article 15(C) permit Landlord to receive a
double recovery of any rent actually paid by Tenant.
(D) Notwithstanding
anything to the contrary herein, in the event of a default by
Tenant hereunder, Landlord shall make reasonable efforts to attempt
to mitigate damages as required by law, provided: (i) Landlord
shall have the right to lease unoccupied space in the Building
prior to re-leasing the Premises during the Term hereof; and (ii)
any costs incurred by Landlord from such mitigation shall be repaid
by Tenant.
16. SURRENDER OF POSSESSION.
On or before the date this Lease and the Term hereby
created terminate, or on or before the
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