OFFICE
LEASE
THE
WALK AT UNIVERSITY
WITH
Enviro
Fuels Manufacturing, Inc.
DATED: 12-28-07
TABLE
OF CONTENTS
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Page
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1
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4
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ACCEPTANCE
OF PREMISES AND LANDLORD'S WORK
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4
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BASE
RENT AND ADDITIONAL RENT
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5
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7
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7
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USE,
COMPLIANCE WITH LAWS, AND RULES
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9
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9
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10
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INSURANCE
AND WAIVER OF CLAIMS
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11
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13
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14
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ASSIGNMENT
AND SUBLETTING
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14
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PERSONAL,
PROPERTY, RENT AND OTHER TAXES
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16
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16
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19
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ATTORNEYS'
FEES, JURY TRIAL, COUNTERCLAIMS AND VENUE
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20
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SUBORDINATION,
ATTORNMENT AND LENDER PROTECTION
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20
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21
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RIGHTS
RESERVED BY LANDLORD
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21
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22
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23
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23
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24
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24
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24
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24
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SAFETY
AND SECURITY DEVICES, SERVICES AND PROGRAMS
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25
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25
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26
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27
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28
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31
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31
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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.
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The
building on the Office Parcel shown as the 2700 Building on the
Site Plan.
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The
building on the Office Parcel shown as the 2750 Building on the
Site Plan.
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The
building (the 2700 Building or the 2750 Building) in which the
Premises is located.
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2770
University
Drive in the Building as outlined or cross-hatched on the floor
plan attached hereto as Exhibit A.
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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.
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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.
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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.
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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".
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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
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.
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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.
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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.
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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.
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The
useable area of the premises shall be deemed to be 1,478 square
feet.
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2.06%,
subject to Articles 4 and 32.
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Tenant's
Share of Expenses:
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2.06%,
subject to Articles 4 and 32.
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Annual
Base
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Monthly
Base
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Year
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Rent
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Rent
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Initial
Term
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1
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$38,038.00
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$3,169.83
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2
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$39,179.14
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$3,264.93
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3
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$40,354.51
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$3,362.88
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4
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$41,565.15
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$3,463.76
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5
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$42,812.10
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$3,567.68
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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.
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The
Premises shall be used for corporate office for energy company
subject to Article 7.
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Irrevocable
Letter of Credit as defined in Exhibit E.
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600
nonexclusive unassigned parking spaces in the project, subject to
Section 34M.
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Amera
Barron Leasing Inc. who shall be paid by Landlord, subject to
Article 26.
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Office
Parcel Legal Description
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Tenant
Exterior Building Signage
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Landlord's
Notice Address (subject to Article 25):
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Attention: George
Raphael
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Tenant's
Notice Address (subject to Article 25):
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On
and After the Commencement Date:
Coral
Springs, Florida 33065
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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.
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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 .
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.
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.
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.
(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.
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.
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.
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.
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.
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.
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.
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.
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.
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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