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OFFICE LEASE

Office Lease Agreement

OFFICE LEASE | Document Parties: ENVIRO FUELS MANUFACTURING, INC. | UNIVERSITY CENTRE WEST III, LTD You are currently viewing:
This Office Lease Agreement involves

ENVIRO FUELS MANUFACTURING, INC. | UNIVERSITY CENTRE WEST III, LTD

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Title: OFFICE LEASE
Governing Law: Florida     Date: 2/11/2009

OFFICE LEASE, Parties: enviro fuels manufacturing  inc. , university centre west iii  ltd
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EXHIBIT 10.2

 

 

 

OFFICE LEASE

 

THE WALK AT UNIVERSITY

 

WITH

 

Enviro Fuels Manufacturing, Inc.

 

DATED:  12-28-07

 

 

 

 

 

 

 

 


 

 

i


 

 

 

TABLE OF CONTENTS

 

 

 

Page

ARTICLE 1:

BASIC PROVISIONS

  1

ARTICLE 2:

TERM AND COMMENCEMENT

4

ARTICLE 3:

ACCEPTANCE OF PREMISES AND LANDLORD'S WORK

4

ARTICLE 4:

BASE RENT AND ADDITIONAL RENT

5

ARTICLE 5:

QUIET ENJOYMENT

7

ARTICLE 6:

UTILITIES AND SERVICES

7

ARTICLE 7:

USE, COMPLIANCE WITH LAWS, AND RULES

9

ARTICLE 8:

MAINTENANCE AND REPAIRS

9

ARTICLE 9:

ALTERATIONS AND LIENS

10

ARTICLE 10:

INSURANCE AND WAIVER OF CLAIMS

  11

ARTICLE 11:

CASUALTY DAMAGE

13

ARTICLE 12:

CONDEMNATION

14

ARTICLE 13:

ASSIGNMENT AND SUBLETTING

14

ARTICLE 14:

PERSONAL, PROPERTY, RENT AND OTHER TAXES

16

ARTICLE 15:

LANDLORD'S REMEDIES

16

ARTICLE 16:

SECURITY DEPOSIT

19

ARTICLE 17:

ATTORNEYS' FEES, JURY TRIAL, COUNTERCLAIMS AND VENUE

20

ARTICLE 18:

SUBORDINATION, ATTORNMENT AND LENDER PROTECTION

20

ARTICLE 19:

ESTOPPEL CERTIFICATES

21

ARTICLE 20:

RIGHTS RESERVED BY LANDLORD

21

ARTICLE 21:

LANDLORD'S RIGHT TO CURE

22

ARTICLE 22:

INDEMNIFICATION,

23

ARTICLE 23:

RETURN OF POSSESSION

23

ARTICLE 24:

HOLDING OVER

24

ARTICLE 25:

NOTICES

24

ARTICLE 26:

REAL ESTATE BROKERS

24

ARTICLE 27:

NO WAIVER

24

ARTICLE 28:

SAFETY AND SECURITY DEVICES, SERVICES AND PROGRAMS

25

ARTICLE 29:

TELECOMMUNICATION LINES

25

ARTICLE: 30:

HAZARDOUS MATERIALS

26

ARTICLE 31:

DISABILITIES ACTS

27

ARTICLE 32:

DEFINITIONS

28

ARTICLE 33:

OFFER

31

ARTICLE 34:

MISCELLANEOUS

31

ARTICLE 35:

ENTIRE AGREEMENT

 

 

 

 

 

EXHIBITS/RIDERS

Listed in Article 1.W

 

 

 

ii


 

 

OFFICE LEASE

 

THIS OFFICE LEASE ("Lease") is made and entered into as of the 28th day of December, 2007, by and between UNIVERSITY CENTRE WEST III, LTD. , a Florida limited partnership ("Landlord"). and ENVIRO FUELS MANUFACTURING, INC . , a Nevada corporation, ("Tenant").

 

WITNESSETH:

 

ARTICLE 1: BASIC PROVISIONS

 

This Article contains certain definitions and the basic lease provisions between Landlord and Tenant. Article 32 contains certain other definitions.

 

 

A.

2700 Building:

The building on the Office Parcel shown as the 2700 Building on the Site Plan.

 

 

 

 

 

B.

2750 Building:

The building on the Office Parcel shown as the 2750 Building on the Site Plan.

 

 

 

 

 

C.

Building:

The building (the 2700 Building or the 2750 Building) in which the Premises is located.

 

 

 

 

 

D.

Premises:

2770 University Drive in the Building as outlined or cross-hatched on the floor plan attached hereto as Exhibit A.

 

 

 

 

 

E.

Restaurant Parcel:

The land and improvements located on Site 1 shown on the Site Plan and legally described on Exhibit B attached hereto and made a part hereof. As of the date of this Lease, the Restaurant Parcel is owned by University Centre West, Ltd., a Florida limited partnership.

 

 

 

 

 

F.

Retail Parcel:

The land and improvements located on Site 2 shown on the Site Plan and legally described on Exhibit B attached hereto and made apart hereof. As of the date of this Lease, the Retail Parcel is owned by University Centre West, Ltd., a Florida limited partnership.

 

 

 

 

 

G.

Office Parcel:

The land and improvements (including the 2700 Building and the 2750 Building) located on Site 3 shown on the Site Plan and legally described on Exhibit A-I attached hereto and made a part hereof. As of the dale of this Lease, the Office Parcel is owned by Landlord.

 

 

 

 

 

H.

Project:

Shall mean Site 1, Site 2 and Site 3. The Project is a mixed use (retail, service, restaurant and office uses) development known as "The Walk at University".

 

 

 

 

 

I.

Site Plan:

The diagram of the land and improvements which comprise the Project attached hereto and made a part hereof as Exhibit B.

 

 

1


 

 

 

J.

Commencement Date:

The date which shall be earlier to occur of the following dates: (i) the date which Tenant opens for business in any portion of the Premises; or (ii) the date which is thirty (30) days after the date Landlord delivers possession of the premises to Tenant with the Landlord's Work as contemplated by Exhibit C hereof' substantially completed.

 

 

 

 

 

K.

Expiration Date:

The date which shall be sixty full calendar months following the Commencement Date or such earlier date in which the Term of this Lease shall expire or be terminated pursuant to the terms and conditions of this Lease or pursuant to law, subject to extension for the renewal terms as provided in Article 2 hereof.

 

 

 

 

 

L.

Renewal Options:

Landlord hereby grants to Tenant, so long as Tenant shall not be in default (beyond applicable notice and cure period) of any terms, covenants, payments or conditions of this Lease, the right and option to renew the term of this Lease ("Renewal Option'') for one (1) additional consecutive period of five (5) years (the "Renewal Term"), commencing upon the expiration of the initial Term of this Lease. The Renewal Term shall be upon the same terms and conditions as during the initial Term hereof. Tenant shall exercise its option to extend this Lease for the Renewal Term, if at all, by written notice ("Renewal Notice") given to Landlord no earlier than one (1) year prior to the expiration of the then current term (initial Term or Renewal Term) and not later than two hundred seventy (270) days prior to the expiration of the then current term (initial Term). Tenant may not exercise any option to renew during any period in which Tenant is in default of this Lease beyond applicable notice and cure period. Failure of Tenant to duly and timely exercise a Renewal Option hereunder shall be conclusively deemed to constitute a waiver of all other Renewal Options of Tenant hereunder.

 

 

 

 

 

M.

Rentable Area:

The rentable area of the Premises shall be deemed to be 1,729 square feet, and the rentable area of the Office Parcel shall be deemed to be 83,924 square feet, for purposes of this Lease.

 

 

 

 

 

N.

Useable Area:

The useable area of the premises shall be deemed to be 1,478 square feet.

 

 

 

 

 

O.

Tenant's Share of Taxes:

2.06%, subject to Articles 4 and 32.

 

 

 

 

 

P.

Tenant's Share of Expenses:

2.06%, subject to Articles 4 and 32.

 

 

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Q.

Base Rent

 

 

 

 

 

Annual Base

Monthly Base

 

 

 

Year

Rent

Rent

 

 

 

Initial Term

 

 

 

 

 

1

$38,038.00

$3,169.83

 

 

 

2

$39,179.14

$3,264.93

 

 

 

3

$40,354.51

$3,362.88

 

 

 

4

$41,565.15

$3,463.76

 

 

 

5

$42,812.10

$3,567.68

 

 

 

Q.

Additional Rent:

Tenant shall pay Tenant's Share of Taxes and Tenant's Share of Expenses, as further described in Article 4. First year estimated expenses are $13.58 per rentable square foot.

 

 

 

 

 

R.

Permitted Use:

The Premises shall be used for corporate office for energy company subject to Article 7.

 

 

 

 

 

S.

Security Deposit:

Irrevocable Letter of Credit as defined in Exhibit E.

 

 

 

 

 

T.

Parking:

600 nonexclusive unassigned parking spaces in the project, subject to Section 34M.

 

 

 

 

 

U.

Broker (if any):

Amera Barron Leasing Inc. who shall be paid by Landlord, subject to Article 26.

 

 

 

 

 

V.

Guarantor(s):

Not Applicable

 

 

W.

Riders/Exhibits:

Exhibit A

Floor Plan

 

 

 

Exhibit A-1

Office Parcel Legal Description

 

 

 

Exhibit B

Site Plan

 

 

 

Exhibit C

Work Letter Agreement

 

 

 

Exhibit D

Rules

 

 

 

Exhibit E

Tenant Exterior Building Signage

 

 

 

 

(Not Applicable)

 

 

 

Exhibit F

Letter of Credit

 

 

X.

Landlord's Notice Address (subject to Article 25):

2900 University Drive

Coral Springs, FL 33065

Attention:   George Raphael

 

 

 

 

 

 

Tenant's Notice Address (subject to Article 25):

On and After the Commencement Date:

2770 University Drive

Coral Springs, Florida 33065

 

Attention:  Larry Hunt

 

 

 

 

 

Y.

Rent Payments:

Rent shall be paid to "UNIVERSITY CENTRE WEST III, LTD, at 2900 University Drive, Coral Springs, FL 33065 or such other parties and addresses as to which Landlord shall provide advance notice.

 

 

 

 

 

Z.

 

The diagram of the land and improvements which comprise the Project attached hereto and made a part hereof as Exhibit B.

 

 

 

 

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The foregoing provisions shall be interpreted and applied in accordance with the other provisions of this Lease. The terms of this Article, and the terms defined in Article 32 and other Articles, shall have the meanings specified therefore when used as capitalized terms in other provisions of this lease or related documentation (except as expressly provided to the contrary therein).

 

ARTICLE 2: TERM AND COMMENCEMENT

 

Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises for the Term, subject to the provisions of the Lease. Tenant acknowledges that the "rentable area of the Premises" under this Lease includes the "usable area", without deduction for columns or projections, multiplied by a load or conversion factor of 17%, to reflect a share of certain areas, which may include lobbies, corridors, mechanical, utility, janitorial, boiler and service rooms and closets, restrooms, and other public, common and service areas. The "usable area" shall mean for any space, the total number of square feet falling within the inside finish of the exterior glass line, and the center of the common walls shared with other tenants and to the outside surface of walls adjoining corridor space. Except as provided expressly to the contrary herein, the "rentable area of the Office Parcel" shall include all rentable area of all space leased or available for lease at the Office Parcel, which Landlord may reasonably re-determine from time to time, to reflect re-configurations, additions or modifications to the Office Parcel.

 

The term ("Term") of this Lease shall commence on the Commencement Date and end on the Expiration Date, unless sooner terminated as provided herein. Tenant shall execute a confirmation of the Commencement Date and other matters in such form as Landlord may reasonably request within ten (10) days after requested; any failure to respond within such time shall be deemed an acceptance of the matters as set forth in Landlord's confirmation. If Tenant disagrees with Landlord's adjustment of the Commencement Date, Tenant shall pay Rent and perform all other obligations commencing on the date determined by Landlord, subject to refund or credit when the matter is resolved.

 

During any period that Tenant shall be permitted to enter the Premises prior to the Commencement Date other than to occupy the same (e.g., to perform alterations or improvements). Tenant shall comply with all terms and provisions of this Lease, except those provisions requiring the payment of Rent.

 

The Commencement Date, Rent and Tenant's other obligations shall be postponed to the extent Tenant is unable to occupy the Premises because Landlord fails: (i) to substantially complete any improvements to the Premises required to be performed by Landlord under this Lease, or (ii) to deliver possession of the Premises for any other reason, including holding over by prior occupants, except to the extent that Tenant, its space planners, architects, contractors, agents or employees in any way contribute to either such failures, either such event occurs with respect to a portion of the Premises, the Commencement Date, Rent and Tenant's other obligations shall be so postponed with respect to such portion (and fairly prorated based on the rentable square footage involved). Any such delay in the Commencement Date shall not subject Landlord to liability for loss or damage resulting therefrom.

 

ARTICLE 3: ACCEPTANCE OF PREMISES AND LANDLORD'S WORK

 

A.           The Premises shall be constructed by Landlord substantially in accordance with the provisions of Exhibit C annexed hereto and made a part hereof.  The "Landlord's Work" as described on Exhibit C shall be deemed to have been substantially completed even though (i) minor details or adjustments; or (ii) items which, in accordance with good construction practices, must be performed after the completion of any work to be performed by Tenant, may not then be completed, subject to Landlord's obligation to complete Landlord's Work. Within ten (10) days after Landlord has substantially completed Landlord's Work, Tenant shall have the right to inspect the Premises and complete and deliver to Landlord a "Compliance List", specifying any work required to be completed by Landlord to correct any deficiencies in connection with Landlord's Work; provided Landlord agrees it will complete all deficiencies required under the Compliance List which are the obligation of Landlord within thirty (30) days after the Commencement Date or such longer time as may be reasonably required because of the nature of the deficiency, provided Landlord must have undertaken procedures to correct the deficiency within such thirty (30) day period and thereafter diligently pursues such efforts to completion. The fact that Landlord still has to complete work set forth on the Compliance List shall not delay or postpone the Commencement Date so long as the items listed on the Compliance List do not prevent or prohibit obtaining a certificate of occupancy or Tenant's reasonable ability to utilize the Premises. The taking of possession of the Premises by Tenant shall be deemed an acceptance of the Premises and substantial completion by Landlord of the Landlord's Work, subject to the items on the Compliance List. Except as expressly provided to the contrary in this Article 3, Tenant shall accept the Premises "AS IS" on the Commencement Date (subject to any matters specified in the Compliance List) and Landlord shall not thereafter be required to perform any work, install any fixtures or equipment or render any services to make the Premises ready or suitable for Tenant's use or occupancy. No promise of the Landlord 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 the Landlord to the Tenant other than as may be contained in this Lease or in the Work Letter attached hereto as Exhibit C and made a part hereto. Landlord agrees to use commercially reasonable efforts to substantially complete construction of the "Landlord's Work" (as defined in Exhibit "C") and deliver possession of the Premises to Tenant on or before January 1, 2008 .

 

 

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ARTICLE 4: BASE RENT AND ADDITIONAL RENT

 

A.             Base Rent . Tenant shall pay Landlord the monthly Base Rent set forth in Article 1 in advance on or before the first day of each calendar month during the Term; provided, Tenant shall pay Base Rent for the first full calendar month for which Base Rent shall be due (and any initial partial month) when Tenant executes this Lease.

 

B.             Taxes and Expenses. Tenant shall pay Landlord Tenant's Share of Taxes and Tenant's share of Expenses in the manner described below. The foregoing capitalized terms shall have the meanings specified therefor in Articles 1 and 32.

 

C.             Payments. Tenant shall pay such amounts as follows:

 

(i)           Landlord shall reasonably estimate in advance the amounts Tenant shall owe for Tenant's Share of Taxes and Tenant's Share of Expenses for any full or partial calendar year of the Term. Tenant shall pay such estimated amounts, on a monthly basis, on or before the first day of each calendar month, together with Tenant's payment of Base Rent. Such estimate may be reasonably adjusted from time to time by Landlord, including adjustments to reflect the final Tax bills each year.

 

(ii)          Within 120 days after the end of each calendar year, or as soon thereafter as practicable, Landlord shall provide a statement (the "Statement") to Tenant showing: (a) the amount of actual Taxes and Expenses for such calendar year, with a listing of amounts for major categories of Expenses, (b) any amount paid by Tenant towards Taxes and Expenses during such calendar year on an estimated basis, and (c) any revised estimate of Tenant's obligations for Taxes and Expenses for the current calendar year.

 

(iii)         If the Statement shows that Tenant's estimated payments were less than Tenant's actual obligations for Taxes and Expenses for such year, Tenant shall pay the difference within fifteen (15) days after Landlord sends the Statement.

 

(iv)         If the Statement shows an increase in Tenant's estimated payments for the current calendar year, Tenant shall: (a) pay the difference between the new and former estimates for the period from January 1 of the current calendar year through the month in which the Statement is sent within fifteen (15) days after Landlord sends the Statement, and (b) thereafter pay the new estimated amount until Landlord further revises such estimated amount.

 

(v)          If the Statement shows that Tenant's estimated payments exceeded Tenant's actual obligations for Taxes and Expenses, Landlord shall credit the difference against payment of Rent next due.  If the Term shall have expired and no further Rent shall be due, Landlord shall provide a refund of such difference at the time Landlord sends the Statement.

 

(vi)         Landlord reserves the right to reasonably change, from time to time, the manner or timing of Tenant's payments for Taxes and Expenses. In lieu of providing one Statement covering all such items. Landlord may provide separate statements, at the same or different times, including separate statements for Taxes after bills are received.

 

 

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D.             Fiscal Years and Tax Years. If Landlord now or hereafter uses a non-calendar fiscal year: (i) all references to calendar years herein shall refer to such fiscal years, (ii) all references to January 1 and December 31 herein shall refer, respectively, to the first and last days of such fiscal years as the context requires, and (iii) if Landlord changes fiscal years, Landlord shall make appropriate prorations such that Tenant's obligations hereunder are not materially adversely affected thereby. Subject to Paragraph F below, Landlord shall include in Taxes each year hereunder: (a) in general, the amounts levied, assessed or imposed for such year, whether paid or payable in another year, (b) for personal property taxes, the amounts paid during such year, and (c) for Taxes paid in installments over more than one year, the amounts paid each year, and any interest thereon. If any taxing authority uses a fiscal year other than a calendar year, Landlord may elect from time to time, consistent with sound accounting and management practices, to require payments by Tenant based on: (x) amounts paid or payable during each calendar year without regard to such fiscal years, (y) amounts paid or payable during each calendar year, averaging the bills for each calendar year based on the number of days or months of such calendar year included in each fiscal tax year, or (z) amounts paid or payable for or during each fiscal tax year.

 

E.             Tax Refunds, Protest Costs, and Expense Adjustments For Prior Years. Landlord shall each year: (i) credit against Taxes any refunds received during such year, (ii) include in Taxes any additional amount paid during such year, involving an adjustment to Taxes for a prior year, due to error by the taxing authority, supplemental assessment, or other reason, (iii) include, in either Taxes or Expenses, any fees for attorneys, consultants and experts, and other costs paid during such year in attempting to protest, appeal or otherwise seek to reduce or minimize Taxes, whether or not successful, (iv) credit against Expenses the cost of any item previously included in Expenses, to the extent that Landlord receives reimbursement from insurance proceeds or a third party during such year (excluding tenant payments for Taxes and Expenses), and (v) make any other appropriate changes to reflect adjustments to Taxes or Expenses for prior years, regardless of whether Landlord uses an accrual system of accounting for other purposes.

 

F.             Grossing Up Variable Expenses. If the Office Parcel is not fully occupied during all or a portion of any calendar year, Landlord may. in accordance with sound accounting and management practices, determine the amount of variable Expenses (i.e. those items which vary according to occupancy levels) that would have been paid had the Office Parcel been fully occupied, and the amount so determined shall be deemed to have been the amount of Expenses for such year.  Similarly. if Landlord is not furnishing any particular utility or service (the cost of which, if performed by Landlord, would be included in Expenses) to a tenant during any period, Landlord may for such period: (i) adjust Expenses to reflect the additional amount that would reasonably have been incurred during such period had Landlord furnished such utility or service to such tenant, or (ii) exclude the rentable area of such tenant from the rentable area of the Buildings in computing Tenant's Share of Expenses of the component of Expenses for such utility or service.

 

G.             Prorations. If the Term commences on a day other than the first day or a calendar month or ends on a day other than the last day of a calendar month: the Base Rent and any other amounts payable on a monthly basis shall be prorated on a per diem basis for such partial calendar months. If the Base Rent is scheduled to increase under Article 1 other than on the first day of a calendar month, the amount for such month shall be prorated on a per diem basis to reflect the number of days or such month at the then current and increased rates, respectively. If the Term commences other than on January 1, or ends other than on December 31, Tenant's obligations to pay amounts towards Taxes and Expenses for such first or final calendar years shall be prorated on a per diem basis to reflect the portion of such years included in the Term.

 

H.             Payments After Lease Term Ends. Tenant's obligations to pay Taxes and Expenses (or any other amounts) accruing during, or relating to, the period prior to expiration or earlier termination of this Lease, shall survive such expiration or termination. Landlord may reasonably estimate all or any of such obligations within a reasonable time before, or anytime after, such expiration or termination. Tenant shall pay the full amount of such estimate, and any additional amount due after the actual amounts are determined, in each case within fifteen (15) days after Landlord sends a statement therefor. If the actual amount is less than the amount Tenant pays as an estimate, Landlord shall refund the difference within thirty (30) days after such determination is made.

 

 

6


 

 

 

I.             Landlord's Accounting Practices and Records. Landlord shall maintain records respecting Taxes and Expenses and determine the same in accordance with sound accounting and management practices consistently applied in accordance with this Lease. Subject to the other provisions of this Article, Landlord may from time to time use a full accrual system of accounting, or a modified cash basis of accounting with appropriate accrual adjustments to ensure that each year includes substantially the same major recurring items. Unless Tenant takes exception by notice to Landlord within thirty (30) days after Landlord provides any Statement to Tenant, such Statement shall be considered final and binding on Tenant (except as to additional Expenses or Taxes not then known or omitted by error). If Tenant takes exception by notice within such time, Landlord may seek certification from Landlord's independent certified public accountant as to the proper amount of Taxes and Expenses. In such case: (i) such certification shall be considered final and binding, on both parties (except as to additional Expenses or Taxes not then known or omitted by error), and (ii) Tenant shall pay Landlord for the cost of such certification, unless it shows that Taxes and Expenses were overstated by at least five (5) percent. Pending resolution of any such exceptions, Tenant shall pay Tenant's Share of Taxes and Expenses in the amounts shown on such Statement, subject to credit, refund or additional payment after any such exceptions are resolved.

 

J.             General Payment Matters. Base Rent, Taxes, Expenses and any other amounts which Tenant is or becomes obligated to pay Landlord under this Lease or other agreement entered in connection herewith, are sometimes herein referred to collectively as "Rent," and all remedies applicable to the non-payment of rent shall be applicable thereto. Rent shall be paid in good funds and legal tender of the United States of America, together with any applicable sales tax or other taxes on Rent as further described in Article 1. Tenant shall pay Rent without any deduction, recoupment, set-off or counterclaim, and without relief from any valuation or appraisement laws, except as may be expressly provided in this Lease. Rent obligations hereunder are independent covenants. No delay by Landlord in providing the Statement (or separate statements) shall be deemed a default by Landlord or a waiver of Landlord's right to require payment of Tenant's obligations for actual or estimated Taxes or Expenses. Landlord may apply payments received from Tenant to any obligations of Tenant then accrued, without regard to such obligations as may be designated by Tenant.

 

ARTICLE 5: QUIET ENJOYMENT

 

Landlord agrees that if Tenant timely pays the Rent and performs the terms and provisions hereunder, Tenant shall hold the Premises during the Term, free of lawful claims by any party acting by or through Landlord, subject to all other terms and provisions of this Lease.

 

ARTICLE 6: UTILITIES AND SERVICES

 

A.             Standard Landlord Utilities and Services.   Landlord shall provide the following utilities and services (the cost of which shall be included in Expenses, except as provided below):

 

(i)           Heat and air-conditioning to provide a temperature required, in Landlord's reasonable opinion, for comfortable occupancy of the Premises as offices, during Building Hours (as defined in Article 32 ).

 

(ii)          Water from city mains for drinking, lavatory and toilet purposes only, at those points of supply provided for nonexclusive general use of tenants at the Office Parcel, or points of supply in the Premises installed by or with Landlord's written consent for such purposes.

 

 

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(iii)         Cleaning and trash removal service in and about the Premises comparable to those provided as a standard service by landlords for office space in comparable office buildings in the vicinity.

 

(iv)         Passenger elevator service at all times (subject to changes in the number of elevators in service after Building Hours or at other times), and freight elevator service (if the Building has such service, subject to scheduling by Landlord), in common with Landlord and other parties.

 

(v)          Electricity for building standard overhead office lighting fixtures, and equipment and accessories customary for offices, where: (a) Tenant uses an amount of electricity that is generally consistent with average office use at the Building as reasonably determined by Landlord, and (b) the Systems and Equipment are suitable, the sale and lawful capacity thereof is not exceeded, and (c) sufficient capacity remains at all times for other existing and future tenants, as determined in Landlord's reasonable discretion.

 

B.             Additional Utilities and Services.   Landlord shall not be responsible for inadequate air-conditioning or ventilation whenever the use or occupancy of the Premises exceeds the normal capacity or design loads of, affects the temperature or humidity otherwise maintained by, or otherwise adversely affects the operation of the Systems and Equipment for the Building, whether due to items of equipment or machinery generating heat, above normal concentrations of personnel or equipment, alterations to the Premises made by or through Tenant without balancing the air or installing supplemental HVAC equipment. Without limiting the generality of the foregoing, Landlord shall not be responsible for inadequate air conditioning or ventilation to the extent that the same occurs because Tenant, without providing adequate air-conditioning and ventilation: (i) uses or permits the use of any item, or concentrated group, of equipment consuming more than 500 watts in the aggregate at rated capacity, or (ii) occupies or permits the Premises to be occupied with concentrations of personnel greater than one person per 200 usable square feet.  In any such case, Landlord may elect to balance the air, install, operate, maintain and replace such supplemental HVAC equipment during the Term, at Tenant's expense, as an extra utility or service (or require that Tenant arrange for the same as Work under Article 9). Landlord shall seek to provide such extra utilities or services as Tenant may from time to time request, if the same are reasonable and feasible for Landlord to provide and do not involve modifications or additions to the Building or existing Systems and Equipment, and if Landlord shall receive Tenant's request within a reasonable period prior to the time such extra utilities or services are required. Tenant shall pay, for any extra utilities or services, such standard charges as Landlord shall from time to time establish. Landlord's out-of-pocket costs for architects, engineers, consultants and other parties relating to such extra utilities or services, and a fee equal to fifteen percent (15%) of such costs (provided, Landlord's standard overtime HVAC charges shall not require an additional such percentage thereon). All payments for such extra utilities or services shall be due at the same time as the installment of Base Rent with which the same are billed, or if billed separately, shall be due within fifteen (15) days after such billing. Notwithstanding the foregoing to the contrary, in lieu of charging separately for additional utilities and services. Landlord may reasonably elect from time to time to expand or modify the amounts of services and utilities available without separate charge, in which case the costs there shall be included in Expenses.

 

C.             Monitoring.  Landlord may install and operate meters, submeters or any other reasonable system for monitoring or estimating any services or utilities used by Tenant in excess of those required to be provided by Landlord under this Article (including a system for Landlord's engineer to reasonably estimate any such excess usage). If such system indicates such excess services or utilities, Tenant shall pay Landlord's charges and fees as described in Paragraph B, above, for installing and operating such system and any supplementary air-conditioning, ventilation, heat, electrical or other systems or equipment (or adjustments or modifications to the existing Systems and Equipment) which Landlord may make, and Landlord's charges for such amount of excess services or utilities used by Tenant.

 

D.             Interruptions and Changes.   Landlord shall have no liability for interruptions, variations, shortages, failures, changes in quality, quantity, character or availability of any utilities or services caused by repairs, maintenance, replacements, alterations (including any freon retrofit work), labor controversies, accidents, inability to obtain services, utilities or supplies, governmental or utility company acts or omissions, requirements, guidelines or requests, or other causes beyond Landlord's reasonable control (or under any circumstances with respect to utilities or services not required to be provided by Landlord hereunder). Under no circumstances whatsoever shall any of the foregoing be deemed an eviction or disturbance of Tenant's use and possession of the Premises or any part thereof, serve to abate Rent, or relieve Tenant from performance of Tenant's obligations under this Lease. Landlord in no event shall be liable for damages by reason of loss of profits, business interruption or other consequential damages in connection with the foregoing events. Nevertheless, in any such events after receiving notice, Landlord shall use reasonable efforts to restore such utilities or services required to be provided hereunder to reasonable levels.

 

 

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ARTICLE 7: USE, COMPLIANCE WITH LAWS, AND RULES

 

A.             Use of Premises. Tenant shall use the Premises only for the permitted use identified in Article 1, and no other purpose whatsoever, subject to the other provisions hereof and of this Lease. Unless expressly permitted in Article 1. Tenant shall not use or permit the Premises to be used as a: (i) social-welfare office, (ii) medical, dental, psychology, psychiatry, or science office or laboratory, (iii) multiparty "executive" or "legal" suite type offices, (iv) data processing, telecommunications or telemarketing center as a primary use, (v) school, educational or training facility as a primary use, (vi) employment, placement, recruiting or clerical support agency, (vii) computerized vehicle sales, loan or "finder" service, (viii) governmental, quasi- governmental, trade association or union office or activities, (ix) travel agency or reservation center, (x) radio or television studio or broadcasting or recording facility, or (xi) retail real estate brokerage, retail stock brokerage, retail bank or other retail financial institution, loan office, depository, check-cashing or wire-transferring service.

 

B.             Laws and Other Requirements. Tenant shall not use or permit within the Premises anything that will: (i) violate the requirements of Landlord's insurers, the American Insurance Association, or any board of underwriters, (ii) cause a cancellation of Landlord's policies, impair the insurability of the Office Parcel, or increase Landlord's premiums (any such increase shall be paid by Tenant without such payment being deemed permission to continue such activity or a waiver of any other remedies of Landlord), or (iii) violate the requirements of any Lenders, the certificates of occupancy issued for the Premises or the Building, or any other requirements, covenants, conditions or restrictions affecting the Office Parcel at any time. Tenant shall comply with all Laws relating to the Premises and Tenant's use of the Premises and Office Parcel, including Laws governing Hazardous Materials as described in Article 30, and the Disabilities Acts as described in Article 31. Tenant's obligations to comply with Laws shall include, without limitation: (a) obtaining all permits, licenses, certificates and approvals to conduct its business in the Premises, or any necessary waivers or variances, without thereby subjecting Landlord, the Office Parcel or other occupants to any costs, requirements, liabilities or restrictions, (b) any work to or for the Premises (or any systems or equipment exclusively serving the Premises, including any freon retrofitting work for such exclusive systems and equipment) required by Laws, and (e) any work outside the Premises (if Landlord permits such work) required by Laws based on Tenant's use of work within, or systems or equipment exclusively serving, the Premises, whether any such work is deemed structural, involves a capital expenditure or results in a benefit extending beyond the Term. Any work hereunder shall be deemed "Work" subject to Article 9.

 

C.             Rules . Tenant shall comply with the Rules set forth in Exhibit D attached hereto (the "Rules"). Landlord shall have the right by notice to Tenant or by posting at the Building, to reasonably amend such Rules and supplement the same with other reasonable Rules relating to the Office Parcel, or the promotion of safety, care, efficiency, cleanliness or good order therein. Nothing herein shall be construed to give Tenant or any other Person any claim, demand or cause of action against Landlord arising out of the violation of such Rules by any other tenant or visitor of the Office Parcel, or out of the enforcement, modification or waiver of the Rules by Landlord in any particular instance.

 

 

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ARTICLE 8: MAINTENANCE AND REPAIRS

 

Except for customary cleaning and trash removal provided by Landlord under Article 6, and casually damage to be repaired by Landlord under Article 11, Tenant shall keep and maintain (or cause to be kept and maintained) the Premises in good and sanitary condition, working order and repair, in compliance with all applicable Laws as described in Article 7, and as required under other provisions of this Lease, including the Rules (including any carpet and other flooring material, paint and wall-coverings, doors, windows, ceilings, interior surfaces of walls, lighting (not including lamps, bulbs, ballasts and starters), plumbing and other fixtures, alterations, improvements, systems and equipment in or exclusively serving the Premises whether installed by Landlord or Tenant). In the event that any repairs, maintenance or replacements are required, Tenant shall promptly notify Landlord and arrange for the same either: (i) through Landlord for such reasonable charges as Landlord may establish from time to time, payable within ten (10) days after billed, or (ii) at Landlord's option, by engaging such contractors as Landlord shall first designate or approve in writing to perform such work, all in a first class, workmanlike manner approved by Landlord in advance in writing and otherwise in compliance with Article 9 respecting "Work". Tenant shall promptly notify Landlord concerning the necessity for any repairs or other work hereunder and upon completion thereof. Tenant shall pay Landlord for any repairs, maintenance and replacements to areas of the Building outside the Premises, caused, in whole or in part, as a result of moving any furniture, fixtures, or other property to or from the Premises, or otherwise by Tenant or its employees, agents, contractors, or visitors (notwithstanding anything to the contrary contained in this Lease). Except as provided in the preceding sentence, or for damage covered under Article 11. Landlord shall keep the common areas of the Building and Office Parcel in good and sanitary condition, working order and repair (the cost of which shall be included in Expenses).

 

ARTICLE 9: ALTERATIONS AND LIENS

 

A.             Alterations and Approval. Tenant shall not attach any fixtures, equipment or other items to the Premises, or paint or make any other additions, changes, alterations or improvements to the Premises or the Systems and Equipment serving the Premises (all such work is referred to collectively herein as the "Work"), without the prior written consent of Landlord. Landlord shall not unreasonably withhold consent, except that Landlord reserves the right to withhold consent in Landlord's sole discretion for Work affecting the structure, safety, efficiency or security of the Building or Premises, the Systems and Equipment, or the appearance of the Premises from any common or public, areas. In seeking approval, Tenant shall submit for Landlord's prior written approval: (i) the names, addresses and background information concerning all architects, engineers, contractors, subcontractors and suppliers Tenant proposes to use, and (ii) detailed plans and specifications prepared by the approved architects and engineers. In addition, Tenant shall provide Landlord with notice of whether the Work will involve or affect any Hazardous Materials, whether such materials are customary and usual based on standard industry practices, and all other details relating thereto.

 

B.             Approval Conditions. Landlord reserves the right to impose requirements as a condition of such consent or otherwise in connection with the Work, including requirements that Tenant: (i) obtain and post permits, (ii) provide bonds, additional insurance, and/or a cash deposit of the total amount required to pay for the Work (including plans, specifications, engineering and other leinable costs, and landlord's fee described below) for Landlord to release or apply as the Work is properly completed and lien waivers, affidavits and other documentation satisfactory to landlord are submitted, (iii) submit architect, engineer, contractor, subcontractor and supplier affidavits of payment and recordable lien waivers in compliance with the Laws of the State of Florida, (iv) use union labor (if' Landlord uses union labor), (v) permit Landlord or its representatives to inspect the Work at reasonable times, and (vi) comply with such other requirements as Landlord may impose concerning the manner and times in which such Work shall be done. Landlord may require that all Work be performed under Landlord's supervision and Landlord reserves the right to designate the architects, engineers, contractors, subcontractors and suppliers who will design and perform all Work and supply all materials affecting the Systems and Equipment or structure of the Building. If Landlord approves, inspects, supervises recommends or designates any architects, engineers, contractors, subcontractors or suppliers the same shall not be deemed a warranty as to the adequacy of the design, workmanship or quality of materials, or compliance of the Work with the plans and specifications or any Laws.

 

 

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C.             Performance of Work. All Work shall be performed: (i) in a thoroughly first class, professional and workmanlike manner, (ii) only with materials that are new, high quality, and free of material defects, (iii) strictly in accordance with plans, specifications, parties and other matters approved or designated by Landlord in advance in writing, (iv) not to adversely affect the Systems and Equipment or the structure of the Building, (v) diligently to completion and so as to avoid any disturbance, disruption or inconvenience to other tenants and the operation of the Building, and (vi) in compliance with all Laws, the Rules and other provisions of this Lease, and such other requirements as Landlord may impose concerning the manner and times in which such Work shall be done. Any floor, wall or ceiling coring work or penetrations or use of noisy or heavy equipment which may interfere with the conduct of business by other tenants at the Building shall, at Landlord's option, be performed at times other than Landlord's normal business hours (at Tenant's sole cost). If Tenant fails to perform the Work as required herein or the materials supplied fail to comply herewith or with the specifications approved by Landlord, and Tenant fails to cure such failure within 48 hours after notice by Landlord (except notice shall riot be required in emergencies). Landlord shall have the right to stop the Work until such failure is cured (which shall not be in limitation of Landlord's other remedies and shall not serve to abate the Rent or Tenant's other obligations under this lease). Upon completion of any Work hereunder, Tenant shall provide Landlord with "as built" plans, copies of' all construction contracts, and proof of' payment for all labor and materials.

 

D.             Liens. Tenant shall pay all costs for the Work when due. Tenant shall keep the Building, Office Parcel, Premises and this Lease free from any mechanic's, material man's, architect's, engineer's or similar liens or' encumbrances, and any claims therefor, or stop or violation notices, in connection with any Work, Tenant shall give Landlord notice at least ten (10) days prior to the commencement of any Work (or such additional time as may be necessary under applicable Laws), to afford Landlord the opportunity of posting and recording appropriate notices of non responsibility, Tenant shall remove any such claim, lien or encumbrance, or stop or violation notices of record, by bond or otherwise within ten (10) days after notice by Landlord. If Tenant rails to do so, Landlord may pay the amount (or any portion thereof) or take such other action as Landlord deems necessary to remove such claim, lien or encumbrance, or stop or violation notices, without being responsible for investigating the validity thereof. The amount so paid and costs incurred by Landlord shall be deemed additional Rent under this Lease payable upon demand, without limitation as to other remedies available to Landlord. Nothing contained in this Lease shall authorize Tenant to do any act which shall subject Landlord's title to, or any Lender's interest in, the Office Parcel or Building or Premises to any such claims, liens or encumbrances, or stop or violation notices, whether claimed pursuant to statute or other Law or express or implied contract.

 

No Mechanics' Liens. Under Section 713.10, Florida Statutes, the interests of Landlord in the Demised Premises, the Office Parcel or the improvements therein, shall not be subject to liens for any improvements made by or on behalf of the Tenant and it is specifically provided that neither Tenant nor any one claiming by, through or under Tenant, including, without limitation, contractors, subcontractors, materialmen, mechanics and/or laborers, shall have any right to file or place any mechanics' or materialmen's liens of any kind whatsoever upon the Demised Premises, the Office Parcel or the improvements thereon: and any such liens arc hereby specifically prohibited. All parties with whom Tenant may deal are put on notice that Tenant has no power to subject Landlord's interest to any mechanics' or materialmen's lien of any kind or character, and all such persons so dealing with Tenant must look solely to the credit of Tenant, and not to Landlord's said interest or assets. Tenant shall provide written notice to each contractor, subcontractor, material man, mechanic and laborer performing work in the Demised Premises of the foregoing.

 

E.             Removal of Work Upon Termination of Lease. All Work hereunder shall remain or be removed from the Premises upon expiration or earlier termination of this Lease to the extent required under Article 23.

 

F.             Landlord's Fees and Costs. Tenant shall pay Landlord a fee for reviewing, scheduling, monitoring, supervising, and providing access for or in connection with the Work, in an amount equal to ten percent (10%) of the total cost of the Work (including costs or plans and permits therefor), and Landlord's out-of-pocket costs, including any costs for security, utilities, trash removal, temporary barricades, janitorial, engineering, architectural or consulting services, and other matters in connection with the Work, payable within ten (10) days after billed.

 

 

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ARTICLE 10: INSURANCE AND WAIVER OF CLAIMS

 

A.             Required Insurance. Tenant shall maintain at its expense during the Term with respect to the Premises and Tenant's use thereof and of the Office Parcel:

 

(i)           Worker's Compensation Insurance in the amounts required by statute, and Employer Liability Insurance in at least the following amounts: (a) Bodily Injury by Accident - $500.000 per accident, (c) Bodily Injury by Disease - $500,000 per employee, and (c) Aggregate Limit - $1,000,000 per policy year.

 

(ii)          Property Damage insurance for the protection of Tenant and Landlord, as their interests may appear, covering any alterations or improvements in excess of any work provided or paid for by Landlord under this Lease. Tenant's personal property, business records, fixtures and equipment, and other insurable risks in amounts not less than the full insurable replacement cost of such property and full insurable value of such other interests of Tenant, with coverage at least as broad as the most recent editions published by Insurance Services Office, Inc. or any successor organization ("ISO"), of: (a) Building and Personal Property Coverage Form (CP0010), (b) Business Income Coverage Form (CP0030). covering at least one year of anticipated income, (c) Boiler and Machinery Coverage Form (13M0025), (d) Causes of Special Loss Form (CP1030), and (e) Sprinkler Leakage Earthquake Extension (CP1039).

 

(iii)         Commercial General Liability Insurance ("CGL") at least as broad as the most recent ISO edition of Commercial General Liability Coverage Form (CG0001) with limits of at least the following amounts: (a) Death or Bodily Injury - $2,000,000, (b) Property Damage or Destruction (including loss of use thereof) - $1,000.000, (c) Products/Completed Operations $1,000,000, (d) Personal or Advertising injury - $1,000,000, (c) Each Occurrence Limit $2,000,000, and (f) General Aggregate Limit - $3,000,000 per policy year. Such policy shall include endorsements: (1) for contractual liability covering Tenant's indemnity obligations under this Lease, and (2) adding Landlord, the management company for the Office Parcel, and other parties designated by Landlord, as Additional Insureds, on a form at least as broad as the most recent edition of Additional Insured - Manager or Lessor of Premises Endorsement Form (CG2011) published by ISO.

 

B.             Certificates, Subrogation and Other Matters. Tenant shall provide Landlord with certificates evidencing the coverage required hereunder prior to the Commencement Date, or Tenant's entry to the Premises for construction of improvements or any other purpose (whichever first occurs). Such certificates shall: (i) be on ACORD Form 27 or such other form approved or required by Landlord, (ii) state that such insurance coverage may not be changed, canceled or non-renewed without at least thirty (30) days' prior written notice to Landlord, and (iii) include as attachments, originals of the Additional insured endorsements to Tenant's CGL, policy required above. Tenant shall provide renewal certificates to Landlord at least thirty (30) days prior to expiration of such policies. Except as expressly provided to the contrary herein, coverage hereunder shall apply to events occurring during the policy year regardless of when a claim is made, Landlord may periodically require that Tenant reasonably increase or expand the aforementioned coverage. Except as provided to the contrary herein, any insurance carried by Landlord or Tenant shall be for the sole benefit or the party carrying such insurance. If Tenant obtains insurance under "blanket policies." Tenant shall obtain an endorsement providing that the insurance limits required hereunder are not subject to reduction or impairment by claims or losses at other locations. Tenant's insurance policies shall be primary to all policies of Landlord and any other Additional Insureds (whose policies shall be deemed excess and non­contributory). All insurance required hereunder shall be provided by responsible insurers licensed in the State of Washington, and shall have a general policy holder's rating of at least A and a financial rating of at least X in the then current edition of Best's Insurance Reports. The parties mutually hereby waive all rights and claims against each other for all losses covered by their respective insurance policies (or required to be covered by insurance under this Lease), and waive all rights of subrogation of their respective insurers. The parties agree that their respective insurance policies are now, or shall be, endorsed such that said waiver of subrogation shall not affect the right of the insured to recover thereunder, Landlord disclaims any representation as to whether the foregoing coverages will be adequate to protect Tenant, and Tenant agrees to carry such additional coverage as may be necessary or appropriate.

 

 

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C.             Waiver of Claims . Except for claims arising from Landlord's intentional or grossly negligent acts which are not covered or required to be covered by Tenant's insurance hereunder, Tenant waives all claims against Landlord for injury or death to persons, damage to property or to any other interest of Tenant sustained by 'tenant or any party claiming by or through Tenant resulting from: (i) any occurrence in or upon the Premises, (ii) leaking of roofs, bursting, stoppage or leaking of water, gas, sewer or steam pipes or equipment, including sprinklers, (iii) wind, rain, snow, ice, flooding (including flooding of' basements and other subsurface areas), freezing, fire, explosion, earthquake, excessive heat or cold, dampness. lire or other casualty, (iv) the Office Parcel. Premises, Systems and Equipment being defective, out of repair, or failing, and (v) vandalism, malicious mischief, theft, misappropriation or other acts or omissions of any parties including Tenant's employees, other tenants, and their respective agents, employees, invitees and contractors (and Tenant shall give Landlord immediate notice of any such occurrences). This provision is in addition to, and not in limitation oil other provisions of' this Lease limiting Landlord's liability.

 

ARTICLE I: CASUALTY DAMAGE

 

A.             Restoration. Tenant shall promptly notify landlord of any damage to the Premises by lire or other casualty. If the Premises or any common areas of the Office Parcel providing access thereto shall be damaged by fire or other casualty, Landlord shall use available insurance proceeds to restore the same. Such restoration shall be to substantially the same condition prior to the casualty, except for modifications required by zoning and building codes and other Laws or by any Lender, any other modifications to the common areas deemed desirable by Landlord (provided access to the Premises is not materially impaired), and except that Landlord shall not be required to repair or replace any of Tenant's furniture, furnishings, fixtures or equipment, or any alterations or improvements in excess of any work provided or paid for by Landlord under this Lease. Landlord shall not be liable for any inconvenience or annoyance to Tenant or its visitors, or injury to Tenant's business resulting in any way from such damage or the repair thereof'. Promptly following completion of Landlord's restoration work. Tenant shall repair and replace Tenant's furniture, furnishings, fixtures, equipment, and any alterations or improvements made by Tenant in excess of those provided or paid for by Landlord, subject to and in compliance with the other provisions of this Lease.

 

B.             Abatement of Rent . Landlord shall allow Tenant a proportionate abatement of Base Rent from the date of the casualty through the date that Landlord substantially completes Landlord's repair obligations hereunder (or the date that Landlord would have substantially completed such repairs, but for delays by Tenant or any other occupant or the Premises, or any of their agents, employees, invitees, Transferees and contractors), provided such abatement: (i) shall apply only to the extent the Premises are untenantable for the purposes permitted under this lease and not used by Tenant as a result thereof, based proportionately on the square Footage of the Premises so affected and not used, and (ii) shall not apply if Tenant or any other occupant of the Premises, or any of' their agents, employees, invitees. Transferees or contractors caused the damage.

 

C.             Termination of Lease. Notwithstanding the foregoing to the contrary, in lieu of performing the restoration work, Landlord may elect to terminate this Lease by notifying Tenant in writing of such termination within sixty (60) days after the date of damage (such termination notice to include a termination date providing at least thirty (30) days for Tenant to vacate the Premises), if the Building shall be materially damaged by Tenant or its employees or agents, or if' the Building shall be damaged by fire or other casualty or cause such that: (a) repairs to the Premises and access thereto cannot reasonably be completed within 120 days after the casualty without the payment of overtime or other premiums, (b) more than twenty-five percent (25%) of the Premises is affected by the damage and fewer than twenty-four (24) months remain in the Term, or any material damage occurs to the Premises during the last twelve (12) months of the Term, (c) any Lender shall require that the insurance proceeds or any portion thereof' be used to retire the Mortgage debt, or the damage is not fully covered, except for deductible amounts, by landlord's insurance policies, or (d) the cost of the repairs, alterations, restoration or improvement work would exceed twenty-five percent (25%) or the replacement value of the Building (whether or not the Premises are affected by the damage). Tenant agrees that the abatement of Rent provided herein shall be Tenant's sole recourse in the event of such damage, and waives any other rights Tenant may have under any applicable Law to perform repairs or terminate the Lease by reason of damage to the Premises or Building or Office Parcel.

 

 

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ARTICLE 12: CONDEMNATION

 

If at least fifty percent (50%) of the rentable area of the Premises shall be taken by power of eminent domain or condemned by a competent authority or by conveyance in lieu thereof for public or quasi-public use ("Condemnation"), including any temporary taking for a period of one year or longer, this Lease shall terminate on the date possession for such use is so taken. If: (i) less than fifty percent (50%) of the Premises is taken, but the taking includes or affects a material portion of the Building or Office Parcel, or the economical operation thereof, or (ii) the taking is temporary and will be in effect for less than one year but more than thirty (30) days, then in either such event, Landlord may elect to terminate this Lease upon at least thirty (30) days' prior notice to Tenant. The parties further agree that: (a) if this Lease is terminated, all Rent shall be apportioned as of the date of such termination or the date of such taking, whichever shall first occur, (h) if' the taking is temporary, Rent shall not be abated for the period of the taking, but Tenant may seek a condemnation award therefor (and the Term shall not be extended thereby), and (c) if this Lease is not terminated but any part of the Premises is permanently taken, the Rent shall be proportionately abated based on the square footage of the Premises so taken. Landlord shall be entitled to receive the entire award or payment in connection with such Condemnation and Tenant hereby assigns to Landlord any interest therein for the value of Tenant's unexpired leasehold estate or any other claim and waives any right to participate therein, except that Tenant shall have the right to claim damages for a temporary taking of the leasehold as described above, and for moving expenses and any taking of 'tenant's personal property.

 

ARTICLE 13: ASSIGNMENT AND SUBLETTING

 

A.             Transfers. Tenant shall not, without the prior written consent of Landlord, which consent shall not be unreasonably withheld as further described below: (i) assign, mortgage, pledge, hypothecate, encumber, or permit any lien to attach to, or otherwise transfer, this Lease or any interest hereunder, by operation of Law or otherwise. (ii) sublet the Premises or any part thereof; (iii) permit the use of the Premises by any Persons other than Tenant and its employees (all of the foregoing are hereinafter sometimes referred to collectively as "Transfers" and any Person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a "Transferee"), or (iv) advertise the Premises or Lease for Transfers. If Tenant shall desire Landlord's consent to any Transfer, Tenant shall notify Landlord in writing, which notice shall include: (a) the proposed effective date (which shall not be less than thirty (30) nor more than 180 days after Tenant's notice), (b) the portion of the Premises to be Transferred (herein called the "Subject Space"), (c) the terms of the proposed Transfer and the Consideration therefor, the name, address and background information concerning the proposed Transferee, and a true and complete copy of all proposed Transfer documentation, and (d) financial statements (balance sheets and income/expense statements for the current and prior three (3) years) of the proposed Transferee, in form and detail reasonably satisfactory to Landlord, certified by an officer, partner or owner of the Transferee, and any other information to enable Landlord to determine the financial responsibility, character, and reputation of the proposed Transferee, nature of such Transferee's business and proposed use of the Subject Space, and such other information as Landlord may reasonably require. Any transfer made without complying with this Article shall at Landlord's option be null, void and of no effect. or shall constitute a Default under this Lease. Whether or not Landlord shall grant consent. Tenant shall pay a reasonable fee (but not less than $500.00) towards Landlord's review and processing expenses, as well as any reasonable legal fees incurred by Landlord within ten (10) days after written request, by Landlord.

 

 

 

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B.             Approval. Landlord will not unreasonably withhold its consent to any proposed Transfer of the Subject Space to the Transferee on the terms specified in Tenant's notice. The parties hereby agree that it shall be reasonable under this Lease and under any applicable Law for Landlord to withhold consent to any proposed Transfer where one or more of the following applies (without limitation as to other reasonable grounds for withholding consent): (i) the Transferee is of a character or reputation or engaged in a business which is not consistent with the quality or nature of the Office Parcel or other tenants of the Office Parcel, or would be a significantly less prestigious occupant of the Office Parcel than Tenant, (ii) the Transferee intends to use the Subject Space for purposes which are not permitted under this lease, (iii) the Subject Space is not regular in shape with appropriate means of ingress and egress suitable for normal renting purposes, would result in more than a reasonable number of occupants, or would require increased services by Landlord, (iv) the Transferee is either a government (or agency or instrumentality thereof), (v) the proposed Transferee or any affiliate thereof is an occupant of the Office Parcel, (vi) the proposed Transferee does not have. in Landlord's sole good faith determination, satisfactory references or a reasonable financial condition in relation to the obligations to be assumed in connection with the Transfer, (vii) the Transfer is other than a sublease or a noncollateral complete assignment, (viii) the proposed Transfer would cause landlord to be in violation of any Laws or any other lease, Mortgage or agreement to which Landlord is a party, would give a tenant of the Office Parcel a right to cancel its lease, or would create adverse tax consequences for Landlord, or (ix) Tenant has committed and railed to cure a Default, (x) Landlord has determined by comparison to current market transactions that the business terms contained in the proposed Transfer or Sublease are not consistent with business terms contained in direct leases or transfers between Landlord and other Tenants. If, Tenant disagrees with Landlord's decision to deny approval, Tenant's sole remedy shall be to seek injunctive relief.

 

C.             Transfer Premiums. If Landlord consents to a Transfer. and as a condition thereto which the parties hereby agree is reasonable.,Tenant shall pay Landlord fitly percent (50%) of any Transfer Premium derived by Tenant from such Transfer. "Transfer Premium" shall mean, for a lease assignment, all consideration paid or payable therefor. "Transfer Premium" shall mean, for a sublease, all rent additional rent or other consideration paid by such Transferee in excess of the Rent payable by Tenant under this Lease (on a monthly basis during the Term, and on a per rentable square foot basis, if less than all of the Premises is transferred). "Transfer Premium" shall also include so-called "key money," or other bonus amount paid by Transferee to Tenant, and any payment in excess of fair market value for services rendered by Tenant to Transferee or in excess of "Tenant's depreciated tax basis for assets, fixtures, inventory, equipment or furniture transferred by Tenant to Transferee. If part of the consideration for such Transfer shall be payable other than in cash, Landlord's share of such non-cash consideration shall be in such form as is reasonably satisfactory to Landlord. The percentage of the Transfer Premium due Landlord hereunder shall be paid within ten (10) days after Tenant receives any Transfer Premium from the Transferee.

 

D.             Recapture . Notwithstanding anything to the contrary contained in this Article, Landlord shall have the option by giving notice to Tenant within thirty (30) days after receipt of Tenant's notice of any proposed Transfer, to recapture the Subject Space. Such recapture notice shall cancel and terminate this Lease with respect to the Subject Space as of the date stated in Tenant's notice as the effective date of the proposed Transfer (or at Landlord's Option, shall cause the Transfer to be made, to Landlord or its agent or nominee, in which ease the parties shall execute reasonable Transfer documentation promptly thereafter), if This Lease shall be canceled with respect to less than the entire Premises, the Rent herein shall be prorated 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, this Lease as so amended shall continue thereafter in full force and effect, and upon request of either party the parties shall execute written confirmation or the same. Tenant shall surrender and vacate the Subject Space when required hereunder in accordance with Article 23 and any failure to do so shall be subject to Article 24.

 

 

 

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E.             Terms of Consent . If Landlord consents to a Transfer: (i) the terms and conditions of this Lease, including Tenant's liability for the Subject Space, shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii) no Transferee shall succeed to any rights provided in this Lease or any amendment hereto to extend the Term of this Lease, expand the Premises. or lease other space, any such rights being deemed personal to the initial Tenant, (d) Tenant shall deliver to Landlord promptly after execution, an executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, and (v) Tenant shall furnish a complete statement, certified by an independent certified public accountant, or Tenant's chief financial officer, setting forth in detail the computation of any Transfer Premium that Tenant has derived and shall derive from such Transfer. Landlord or its authorized representatives shall have the right at all reasonable times to audit the books, records and papers of Tenant and any Transferee relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant shall within thirty (30) days after demand pay the deficiency, and if understated by more than two percent (2%) Tenant shall pay Landlord's costs of such audit. Any sublease hereunder shall be subordinate and subject to the provisions or this Lease, and if this Lease shall be terminated during the term of any sublease, Landlord shall have the right to: (a) deem such sublease as merged and canceled and repossess the Subject Space by any lawful means, or (b) deem such termination as an assignment of such sublease to Landlord and not as a merger, and require that such subtenant attorn to and recognize Landlord as its landlord under any such sublease. If Tenant shall commit a Default under this Lease, Landlord is hereby irrevocably authorized, as Tenant's agent and attorney-in-fact to direct any Transferee to make all payments under or in connection with the Transfer directly to landlord (which Landlord shall apply towards Tenant's obligations under this Lease).

 

F.             Certain Transfers. For purposes of this lease, the term "Transfer" shall also include, and all of the foregoing provisions shall apply to: (if the conversion. merger or consolidation of Tenant into a limited liability company or limited liability partnership, (ii) if Tenant is a partnership or limited liability company, the withdrawal or change, voluntary, involuntary or by operation of law, of a majority of the partners or members. Or a transfer of a majority of partnership or membership interests, within a twelve month period, or the dissolution of the partnership or company, and (iii) if Tenant is a closely held corporation (i.e.. whose stock is not publicly held and not traded through an exchange or over the counter), the dissolution, merger consolidation or other reorganization of Tenant, or within a twelve month period: (a) the sale or other transfer of more than an aggregate of 50% of the voting shares of Tenant (other than to immediate family members by reason or gift or death) or (b) the sale, mortgage, hypothecation or pledge or more than an aggregate of 50% of Tenant's net assets.

 

ARTICLE 14: PERSONAL PROPERTY, RENT AND OTHER TAXES

 

Tenant shall pay prior to delinquency all taxes, charges or other governmental impositions assessed against or levied upon all fixtures. furnishings, personal property, systems and equipment located in or exclusively serving the Premises, and any Work to the Premises under Article 9 or other provisions of this Lease or related documentation. Whenever possible, Tenant shall cause all such items to be assessed and billed separately from the other property of Landlord. In the event any such items shall be assessed and billed with the other property of Landlord, Tenant shall pay Landlord its share of such taxes, charges or other governmental impositions within ten (10) days after Landlord delivers a statement and a copy of the assessment or other documentation showing the amount of impositions applicable to Tenant's property. Tenant shall pay any rent tax, sales tax, service tax, transfer tax, value added tax, or any other applicable tax on the Rent, utilities or services herein, the privilege of renting, using or occupying the Premises, or collecting Rent therefrom, or otherwise respecting this Lease or any other document entered in connection herewith.

 

 

 

 

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ARTICLE 15: LANDLORD'S REMEDIES

 

A.             Default. The occurrence of any one or more of the following events shall constitute a "Default" by Tenant and shall give rise to Landlord's remedies set forth in Paragraph B below: (i) failure to make when due any payment of Rent, unless such failure is cured within five (5) days after notice; (ii) failure to observe or perform any term or condition of this Lease other than the payment of Rent (or the other matters expressly described herein), unless such failure is cured within any period of time following notice expressly provided with respect thereto in other Articles hereof, or otherwise within a reasonable time, but in no event more than twenty (20) days following notice (provided, if the nature of Tenant's failure is such that more time is reasonably required in order to cure. Tenant shall not be in Default if Tenant commences to cure promptly within such period, diligently seeks and keeps Landlord reasonably advised of efforts to cure such failure to completion. and completes such cure within sixty (60) days following Landlord's notice): (iii) failure to cure immediately upon notice thereof any condition which is hazardous, interferes with another Tenant or the operation or leasing of the Office Parcel, or may cause the imposition of a fine, penalty or other remedy on Landlord or its agents or affiliates, (iv) violating Article 13 respecting Transfers, or abandoning, vacating or failing to occupy the Premises for more than ten (10) days, or removing or making arrangements to remove substantial portions of the furniture or other personal property from the Premises or any material portion thereof, or (v)(a) making by Tenant or any guarantor of this Lease ("Guarantor") of any general assignment for the benefit of creditors, (b) filing by or far reorganization or arrangement under any Law relating to bankruptcy or insolvency (unless, in the case of a petition filed against Tenant or such Guarantor, the same is dismissed within thirty (30) days), (c) appointment of a trustee or receiver to take possession or substantially all of Tenant's assets located in the Premises or of Tenant


 
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