OFFICE LEASE
INFORTE CORP., a Delaware corporation
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OFFICE LEASE
INFORTE CORP., a Delaware corporation
TABLE OF CONTENTS
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PAGE
RECITALS
1
TERMS
1
1. Basic Lease
Provisions
1
2. Rent
2
2.1.
Base Rent
2
2.2.
Interest and Late Charges
2
3. Operating
Expense Rent and Real Estate Taxes Rent
3
3.1.
Operating Expense Rent
3
3.1.1. Operating Expenses Defined
3
3.1.2. Partial Occupancy
4
3.2 Real
Estate Taxes Rent
4
3.2.1. Real
Estate Taxes Defined
4
3.3.
Payment
4
3.4.
Statement
5
3.5.
Proration
5
3.6.
Additional Taxes Payable by Tenant
5
3.7.
Change in Tenant's Percentage Share
5
4. Use of
Premises
5
4.1.
Use Restrictions
5
4.2.
Access
6
4.3.
Tenant's Right to Use Common Areas
6
4.4.
Outdoor Deck
6
4.4.
Miscellaneous Restrictions
6
5. Landlord's
Reservation of Rights
6
6. Parking
7
7. Graphics
7
8. Assignment
and Subletting
7
8.1.
Assignment and Subletting
7
8.2.
Restrictions on Terms
8
8.3.
Assumption of Liability
8
8.4.
Assignment by Landlord
8
9. Ordinances
and Statutes
9
10. Tenant
Improvements; Maintenance, Repairs and Alterations
9
10.1.
Tenant's Obligations
9
10.2.
Limits on Alterations
9
10.3.
Liens
9
10.4.
Landlord's Obligations
10
10.5
Initial Tenant Improvements
10
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11. Entry and
Inspection
11
12. Indemnification.
11
13. Tenant's Insurance
12
13.1.
Types of Insurance
12
13.2. Form
of Insurance and Selection of Insurers
12
13.3.
Waiver of Subrogation
13
14. Landlord's
Insurance
13
15. Utilities and
Services
13
15.1.
Separate Metering
13
15.2. HVAC
13
15.3.
Building Standard Services
14
15.4
Water Usage
14
15.5.
Additional Tenant Responsibilities
14
15.6.
Payment
14
16.
Condemnation
14
17.
Destruction of Premises
15
18. Hazardous
Substances
15
19. Events of
Default
16
20. Landlord's
Remedies on Default
16
21. Security
Deposit
17
22. Limitation
on Landlord's Personal Liability
17
23. Attorneys'
Fees
17
24. Waiver
18
25.
Severability
18
26. Notices
18
27. Surrender
of Premises
18
28. Holding
Over
18
29. Time
18
30. Successors
and Assigns
18
31.
Subordination/Non-Disturbance & Attornment
18
32. Estoppel
Certificate
19
33. Right of
First Refusal
19
34. Renewal
Option
19
35. Storage
Space
20
36.
Authorization
20
37. Joint and
Several Liability
20
38. Force
Majeure
20
39. Recording
20
40. Governing
Law
20
41. Jury
Waiver
20
42. Covenant
of Quiet Enjoyment
20
43.
Encumbrances
20
44. Real
Estate Broker Disclosure
20
45. Entire
Agreement
21
46.
Construction of Lease Document
21
47. Third
Party Disclosure
21
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EXHIBIT A
23
PLAN OF LEASED PREMISES
23
EXHIBIT B
24
RULES AND REGULATIONS
24
EXHIBIT C
27
TENANT'S EXTERIOR SIGNAGE
27
EXHIBIT D
28
OWNER AND TENANT "S CONSTRUCTION ESCROW AGREEMENT
28
EXHIBIT E
29
JANITORIAL SPECIFICATIONS
29
EXHIBIT F
33
FORM OF SUBORDINATION,
NON-DISTURBANCE & ATTORNMENT AGREEMENT
33
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OFFICE LEASE
This Lease (this "Lease") is dated the 19th day of August 2005,
between
THE BOYCE BUILDING GROUP L.L.C., an
Illinois limited liability company acting
through its managing agent Friedman
Properties, Ltd., an Illinois corporation
("Landlord") and INFORTE CORP., a Delaware
corporation ("Tenant").
RECITALS
1. Landlord owns the building located at
500-510 North Dearborn, Chicago,
Illinois 60610 (the "Building").
2. Landlord agrees to lease space (the
"Premises") in the Building to Tenant,
and Tenant agrees to lease the Premises
from the Landlord, all on the terms
described below.
SCHEDULE OF TERMS
1. Basic Lease Provisions. The basic
provisions of this Lease contained in this
Schedule of Terms ("Schedule") are as
follows:
1.1. The
Premises: Suite 1200 (as shown on the plan of Premises
attached to this Lease as Exhibit A-1) and Suite 1300,
including the 13th floor outdoor deck (as shown on the plan of
Premises attached to this Lease as Exhibit A-2) of the
Building.
1.2. Rentable
Area of Premises: approximately 16,102 rentable
square feet consisting of approximately 12,000 square feet on
the twelfth (12th) floor and approximately 4,102 square feet
on the thirteenth (13th) floor (as shown on the plan of
premises attached to this Lease as Exhibit A-1 and A-2,
respectively). The Premises shall also include the outdoor
deck depicted on Exhibit A-2.
1.3. Tenant's
Percentage Share of Operating Expenses (as defined in
Paragraph 3 below):
10.85% (16,102 rsf/ 148,353 rsf)
1.4.
Commencement Date: The earlier of (a) Tenant's occupancy of
the Premises or (b) January 1, 2006. Tenant shall have access
to the Premises after mutual execution of the Lease to
commence Tenant Improvements (as set forth in Section 10.5
below). Tenant shall also have access to the Premises at least
thirty (30) days prior to occupancy for the purpose of
installing furniture, fixtures and equipment ("Fixturing
Period").
1.5. Rent
Commencement Date: January 1, 2006.
1.6. Lease Term:
The Term of the Lease shall commence on the
Commencement Date and expire on the last day of the month five
(5) years following the Rent Commencement Date.
1.7. Base Rent:
Monthly installments of Base Rent shall be payable
as follows:
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<TABLE>
<CAPTION>
<S>
<C>
January 1, 2006 through December 31, 2006: $26,501.21 per month
January 1, 2007 through December 31, 2007: $27,172.13 per month
January 1, 2008 through December 31, 2008: $27,843.04 per month
January 1, 2009 through December 31, 2009: $28,513.96 per month
January 1, 2010 through December 31, 2010: $29,184.88 per month
</TABLE>
1.8. Security
Deposit: $26,501.21 due upon execution of this Lease
and subject to the terms and conditions of Paragraph 21
below).
1.9. Permitted
Use: General office use and use of the 13th floor
outdoor deck, as more fully set forth in Section 4.4 herein.
1.10. Guarantor:
None.
1.11. Base Year for
Operating Expenses: 2006
1.12. Base Year for
Real Estate Taxes: 2006 (including 2005 real
estate taxes payable in 2006)
1.13. Notices for
Tenant:
Prior to the Commencement Date: 150 North Michigan Avenue,
Suite 3400, Chicago, IL 60661
Following the Commencement Date: The Premises
1.14. Tenant's Federal
Employer Identification Number (FEIN) is:
36-3909334.
2. Rent.
2.1. Base Rent.
Tenant shall pay to Landlord as rent for the use and
occupancy of the Premises, at the times and
in the manner provided below, Base
Rent in the amount specified in Paragraph 1
above. Base Rent is payable in
advance beginning on the Rent Commencement
Date and on the first day of each
successive calendar month during the Lease
Term without demand, setoff or
deduction. If the first or last month of
this Lease is not a full month, Base
Rent will be prorated in proportion to the
number of days the Premises are
occupied in such month. All payments to the
Landlord will be made to Friedman
Properties, Ltd., 325 North LaSalle Street
- Suite 600, Chicago, Illinois 60610
or to a lock box location designated by
landlord in writing.
2.2
Interest and Late Charges. If Tenant fails to pay any Base Rent
or any other amount when due and payable
under this Lease, the unpaid amount
shall bear interest from the due date to
the date of payment at the lesser rate
of (1) Prime Rate plus 5% per annum and (2)
the highest rate permitted by law.
In addition, a $100.00 charge shall be
imposed on any check that is returned for
insufficient funds. As used herein the
"Prime Rate" shall mean the Prime Rate
published from time to time by LaSalle Bank
National Association.
Notwithstanding the foregoing, if there is
no uncured Event of Default by Tenant
under this Lease and amounts due hereunder
are received by Landlord prior to the
fifth (5th) day of the month in which such
amounts are due, the Landlord shall
waive the assessment of interest once for
every year of the Lease Term.
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3.
Operating Expense Rent and Real Estate Taxes Rent.
3.1. Operating
Expense Rent. Commencing on the first day of the
calendar year following the Base Year,
Tenant shall pay Tenant's Percentage
Share, as defined in the Schedule, of the
Operating Expenses ("Operating Expense
Rent") paid or incurred by Landlord in each
calendar year of the Lease Term in
excess of the Operating Expenses of the
Base Year as set forth in the Schedule
of Terms. Operating Expense Rent, except
Real Estate Taxes and insurance
premiums, shall be limited to an increase
of five percent (5%) annually.
3.1.1. Operating
Expenses Defined. "Operating Expenses" means
all costs of operating, servicing,
repairing and maintaining the Building (as
hereinafter defined), but does not include
any costs which are paid directly by,
or which are incurred for the sole benefit
of, any tenant in the Building. The
Landlord will calculate Operating Expenses
in accordance with generally accepted
accounting principles applied on a
consistent basis ("GAAP"). Examples of
Operating Expenses are:
(a)
utility charges, including water, sewer, heating, air
conditioning, ventilating and all other
utility charges (other than charges for
utilities separately metered and paid
directly by the Tenant or by other
tenants);
(b)
costs of janitorial and maintenance services, which
include cleaning of Common Areas (as
defined below), exterior window cleaning,
fire detection and security services,
gardening and landscape maintenance, snow
and ice removal, garbage and other refuse
removal, pest control, painting (other
than painting of any tenant space), facade
maintenance, Common Area lighting,
exterior and Common Area partition wall
repairs, roof repairs, maintenance of
all pipes, repair and repainting of
sidewalks. No credit shall be given to
Tenant for janitorial services engaged by
Tenant for Premises cleaning;
(c)
insurance premiums for public liability, property
damage, flood and all other types of
insurance that Landlord maintains for the
Building, including any amounts that would
be paid by Landlord as premiums for
usual and customary self-insurance risks
for similarly situated buildings,
including insurance deductibles;
(d)
a property management fee of not more than 4% of gross
rents collected by Landlord from tenants of
the Building;
(e) the costs
(amortized together with a reasonable finance
charge in accordance with GAAP) of any
capital improvements which Landlord makes
to the Building if such improvements are
intended primarily (A) for the purpose
of reducing Operating Expenses; or (B) are
required to comply with any
governmental law or regulation that was not
in force at the time this Lease
began; and
(f)
interest and amortization expense in connection with any
expenditure made for any of the above
items.
Operating Expenses do not include, and
therefore Landlord is not entitled to be
reimbursed under this Lease for, the
following items: (i) depreciation on the
Building or any Common Areas; (ii) costs of
planning, designing, improving or
altering any tenant's space; (iii) costs of
relocating any tenant, and expenses
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of marketing and leasing space in the
Building, including finders' fees and real
estate broker commissions; (iv) costs for
which Landlord is otherwise
reimbursed, but only to the extent of such
other reimbursement, such as, for
example, expenses reimbursed by another
tenant under the provisions of such
other tenant's lease; (v) costs in
connection with services or benefits that are
not provided to Tenant, but are provided to
another tenant in the Building; (vi)
Landlord's general overhead and
administrative expenses not directly allocable
to the operation of the Building; (vii)
court costs and legal fees which
Landlord pays to enforce the obligations of
tenants in the Building; (viii)
wages of any employee not related to the
Building; (ix) expenditures that are
considered to be capital expenditures under
GAAP, other than those listed in
clause (e) above, (x) fines, levies, or
penalties imposed upon Landlord by any
governmental authority as a result of the
violation of any Law, by Landlord,
(xi) political and charitable
contributions, (xii) the cost of encapsulating
asbestos and (xiii) costs and expenses
associated with leasing the Building.
3.1.2. Partial
Occupancy. For the purpose of determining
Operating Expense Rent for any calendar
year, or a portion thereof, if the
Building is not fully rented, Landlord may
make appropriate adjustments to the
Operating Expenses for such calendar year,
employing sound accounting and
management principles consistently applied,
to determine the amount of Operating
Expenses that would have been paid or
incurred by the Landlord had the Building
been 90% occupied, and the amount so
determined shall be deemed to have been the
amount of Operating Expenses for such
calendar year.
3.2. Real Estate
Taxes Rent. Commencing on the first day of the
calendar year following the Base Year,
Tenant shall pay Tenant's Percentage
Share, as specified in the Schedule, of the
Real Estate Taxes ("Real Estate
Taxes Rent") paid or incurred by Landlord
in each calendar year of the Lease
Term in excess of the Real Estate Taxes for
the Base Year as set forth in the
Schedule of Terms.
3.2.1. Real Estate
Taxes Defined. "Real Estate Taxes" mean all
property taxes and assessments of every
type, whether general or special, and
sewer rents, rates and charges, and any
taxes enacted in place of those taxes,
which are at any time levied or assessed
against any or all of the Building, or
the furniture, fixtures, machinery,
equipment and systems located in the
Building (except that personal property
taxes for personal property located in
any premises leased to another tenant shall
not be included). These taxes are
sometimes referred to in this Lease as
"Taxes." Taxes also shall include all
amounts expended by Landlord for legal fees
and other expenses incurred in
obtaining a reduction in Taxes, so long as
such fees are less than the amount of
the reduction received by Tenant. Taxes
shall not include any income, franchise,
gift or inheritance taxes that the Landlord
must pay in connection with the
Building.
3.3. Payment.
During December of each calendar year, or as soon after
that date as practicable, Landlord shall
give Tenant written notice of its
estimate of Operating Expense Rent and Real
Estate Taxes Rent for the following
calendar year. On or before the first day
of each month during the following
calendar year, Tenant shall pay to Landlord
1/12th of such estimated amounts,
provided that if such notice is not given
in December, Tenant shall continue to
pay on the basis of the prior year's
estimate until the month after such notice
is given. If at any time it appears to
Landlord that the amounts payable for
Operating Expense Rent and Real Estate
Taxes Rent for the current calendar year
will vary from its estimate by more than
10%, Landlord, by written notice to
Tenant, shall revise its estimate for that
year, and subsequent payments by
Tenant for that year shall be in an amount
so that by the end of the year Tenant
will have paid an amount equal to the
revised estimate. Landlord shall indicate
in its notice to Tenant the reasons
Landlord believes its estimate is low by
more than 10%.
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3.4. Statement.
Within 90 days after the end of each calendar year or
as soon after that date as practicable,
Landlord shall deliver to Tenant a
detailed line item statement of amounts of
Operating Expense Rent and Real
Estate Taxes Rent payable for that calendar
year. If the statement shows that
Tenant owes more than the estimated
payments that Tenant made for the calendar
year, Tenant shall pay the deficiency to
Landlord within 30 days after delivery
of the statement. If the total of the
estimated monthly installments paid by
Tenant during any calendar year exceeds the
actual amounts due from Tenant for
the calendar year and if Tenant is not in
default, the excess shall, at
Landlord's option, either be credited
against payments next due from Tenant or
refunded by Landlord to Tenant. Tenant has
the right to cause an audit to be
performed at Tenant's sole cost and expense
of Landlord's operations and books
and records pertaining to Operating
Expenses and/or Real Estate Taxes for the
preceding two calendar years. If Landlord
has overstated Operating Expenses
and/or Real Estate Taxes, within 30 days
after demand by Tenant accompanied by
Tenant's verification of such overcharges,
Landlord shall reimburse Tenant for
all such overcharges and the reasonable
cost of said audit. Any overpayment by
Tenant at the end of the Lease Term shall
be reimbursed to Tenant within sixty
(60) days following the end of the Lease
Term.
3.5. Proration.
If this Lease terminates on a day other than the last
day of a calendar year, the amount of
Operating Expense Rent and Real Estate
Taxes Rent payable by Tenant applicable to
that calendar year will be prorated
to reflect the number of days from the
commencement of the year to and the date
of termination.
3.6. Additional
Taxes Payable by Tenant. Tenant shall pay any taxes
reasonably attributable to (i) the cost or
value of Tenant's equipment,
furniture, fixtures and other personal
property located in the Premises, or (ii)
the cost or value of any leasehold
improvements made in or to the Premises by or
for Tenant other than any initial
improvements installed at Landlord's expense,
regardless of whether Tenant or Landlord
has title to such improvements.
3.7. Change in
Tenant's Percentage Share. "Tenant's Percentage Share"
means a fraction, the numerator of which is
the Rentable Area of the Premises
and the denominator of which is the
Rentable Area of the Building, determined by
measuring all of the areas located within
the exterior walls of the Building. As
of the date of this Lease, Tenant's
Percentage Share is as described in the
Schedule. Landlord shall recalculate
Tenant's Percentage Share if the Rentable
Area of the Premises or the Building
changes for any reason, such recalculation
to reflect the rentable area of the
Premises expressed as a percentage of the
Rentable Area of the Building; provided,
however, in no event shall Tenant's
Percentage Share be greater than the share
set forth in Section 1.3 of the
Lease, except as a result of the removal or
addition of area of the Building.
Landlord shall notify Tenant in writing of
any recalculation.
4. Use
of Premises.
4.1. Use
Restrictions. Tenant may not use any portion of the Premises
for any use which is unlawful or which
interferes with the use of other premises
by other tenants of the Building or for
purposes other than those specified in
Paragraph 1. Tenant may not use the
Premises for any purpose that will increase
the existing rate of insurance on the
Building, or cause cancellation of
insurance policies covering the Building.
Tenant's use of the Premises in
accordance with the Permitted Use, shall
not increase the existing rate of
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insurance on the Building or cause
cancellation of insurance policies covering
the Building.
4.2. Access.
Tenant shall have access to the Building and the
Premises seven (7) days per week,
twenty-four (24) hours per day. Access to the
Building other than during normal business
hours will be subject to such rules
and regulations, as Landlord reasonably
requires, including without limitation
the rules and regulations attached as
Exhibit B. Upon Tenant's request, Landlord
shall, at Tenant's sole cost and expense,
install a security system in the
Building's elevators. Landlord and Tenant
shall agree on the reasonable cost of
same prior to the installation of the
security system.
4.3. Tenant's
Right to Use Common Areas. Landlord grants Tenant and
its authorized representatives and invitees
the non-exclusive right to use the
Common Areas (as hereinafter defined) with
others who are entitled to use the
Common Areas subject to Landlord's rights
as set forth in this Lease. "Common
Areas" shall consist of the following
elements of the Building, whether now
existing or hereafter installed, modified
or altered: all areas outside the
Premises that (1) are provided by Landlord
for the general use and convenience
of Tenant and other tenants of the Building
and (2) are not leased to any
tenant. Common Areas are located both
inside and outside the Building, and
include all areas designated as Common
Areas by Landlord as long as they fall
within the scope of the preceding sentence.
Examples of Common Areas are common
entrances to the Building, lobbies,
hallways, walkways, patios (excluding the
roof deck which is part of the Premises and
is for Tenant's exclusive use), if
any, landscaped areas maintained by
Landlord, if any, in connection with the
Building, sidewalks including public
sidewalks, service corridors, elevators,
restrooms, stairways, decorative walls,
plazas, if any, loading areas, parking
areas, driveways and public alleys adjacent
to the Building. The Building and
the Common Areas are sometimes collectively
referred to in this Lease as the
"Building".
4.4
Outdoor Deck. Tenant shall be permitted to use the outdoor deck
located on the 13th floor of the Premises
for business entertainment and as a
lounge and dining area for clients,
customers, employees and guests. Such use
shall not violate the restrictions in
Section 4.1 herein. In the event Tenant
serves liquor in the Premises or outdoor
deck, Tenant shall be required to
maintain liquor liability insurance in
accordance with the requirements in
Section 13.1(e) herein.
4.5
Miscellaneous Restrictions. Tenant shall not use the Premises
for any offensive, noisy or dangerous
trade, business, manufacture or occupation
or interfere with the business of any other
tenant in the Building. Tenant shall
not cause, permit or suffer any waste or
damage, disfigurement or injury to the
Premises, or the fixtures or equipment in
the Premises or the Common Areas.
Tenant shall not obstruct the sidewalks or
other Common Areas of the Building or
use them for business operations or
advertising. Tenant shall not use the
Premises for any purpose that would emit
any offensive odor, create unreasonable
elevator loads, cause structural loads to
be exceeded or adversely affect the
mechanical, electrical, plumbing or other
base building systems.
5.
Landlord's Reservation of Rights. Landlord may (i) increase, reduce
or
change the number, dimensions or locations
of the walks, parking, if any, and
other Common Areas and other improvements
located in or about the Building in
any manner that Landlord in its sole
discretion deems proper, so long as
Landlord does not materially and adversely
affect Tenant's use of or access to
the Premises; (ii) make alterations and
additions to the Building, and build
additional stories on the Building (except
over the 13th floor roof deck); (iii)
install, maintain, use, repair and replace
pipes, ducts, conduits and wires
leading through the Premises and serving
other parts of the Building in a manner
that will not materially interfere with
Tenant's use of the Premises; (iv)
change the Building's name or street
address upon 90 days prior notice (provided
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that if the change is made voluntarily by
Landlord, Landlord will reimburse
Tenant, upon presentation of invoices paid
by Tenant, for reasonable costs of
stationery and business cards not to exceed
$1,000 in the aggregate); (v) grant
to any person or entity the exclusive right
to conduct any business or render
any service in or to the Building; (vi)
retain at all times master keys or
passkeys to the Premises, and place such
signs, notices or displays as Landlord
reasonably deems necessary or desirable on
the roof (provided the same do not
affect Tenant's use and enjoyment of the
roof deck) and exterior of the
Building; (vii) make reasonable rules and
regulations applicable to all tenants
concerning the Common Areas; (viii) close
temporarily any of the Common Areas
for maintenance purposes; and (ix)
designate other lands outside (but adjacent
to) the exterior boundaries of the Building
to become part of the Common Areas,
provided they are utilized in connection
with the Building.
6.
Parking. Tenant shall not park or permit the parking of any
vehicles
adjacent to loading areas so as to
interfere in any way with their use. Parking
and standing in public streets and alleys
adjacent to the Building is prohibited
subject to local law.
7.
Graphics. Landlord, at Landlord's expense, will install
directory
signage with Tenant's name and suite number
in each of the applicable lobby
directories and the hall directories, and
will include Tenant's name in the main
lobby directory. Tenant shall have the
ability to list a reasonable number of
names of its various departments and
company officers in the main lobby
directory. Tenant shall have the right to
install an identifying plaque on the
exterior of the Building, which will be
similar in size and finishes to the
existing signage of Bartlit, Beck, Herman,
Palenchar & Scott, L.L.P., at the
corner of Hubbard and Dearborn, and in
accordance with the design and
specifications attached hereto as Exhibit
C. Tenant shall submit architectural
plans for exterior signage for Landlord's
review and approval, which shall
include design, size, placement and method
of attachment. Landlord's approval
shall not be unreasonably withheld,
conditioned or delayed. All signage is
subject to review and approval by all
applicable governmental authorities.
Tenant, at Tenant's expense, shall have the
right to place signage in the 12th
floor elevator lobby and will have the
ability, at Tenant's expense, to match
the finishes in the elevator lobby in the
12th floor consistent with the
finishes within the Premises.
Notwithstanding anything herein to the contrary,
Landlord shall not install signage on the
roof, which materially interferes with
Tenant's use of the 13th floor outdoor
deck.
8.
Assignment and Subletting
8.1
Assignment and Subletting. Tenant may not assign this Lease or
sublet any portion of the Premises without
the prior written consent of
Landlord, which will not be unreasonably
withheld, conditioned or delayed.
Following Landlord's receipt of all
reasonably requested information, Landlord
shall have fifteen (15) days to approve or
disapprove of Tenant's proposed
assignment or sublease. It is reasonable
for Landlord, among other things, to
withhold consent if Landlord is not
satisfied with the identity, reputation or
business character of the proposed assignee
or subtenant, or if the proposed
assignee or subtenant would violate any
restrictions in any leases with another
tenant in the building or if there is an
Event of Default by Tenant and such
default remains uncured. Any change in the
ownership of Tenant that results in a
change in control of Tenant, if Tenant is a
corporation, limited liability
company or general or limited partnership,
shall constitute an assignment for
purposes of this Paragraph 8.
Notwithstanding the foregoing, Tenant may sublet
or assign all or a portion of the Lease or
Premises, as the case may be, upon
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notice to, but not consent of Landlord, to
a fully owned subsidiary, division,
joint venture, parent company, subsidiary
or affiliate of Tenant or company
related to Tenant. Landlord acknowledges
that, from time to time, Tenant may
allow certain offices within the Premises
to be used on a temporary basis by
employees of Cerenti, which is not an
affiliated entity, and that such temporary
office use will not violate the
restrictions on assignment and subletting set
forth herein. If requested by Tenant,
Landlord will cooperate with Tenant in
providing directory listings for Cerenti on
the main lobby directory, at
Tenant's expense.
8.2
Restrictions on Terms. Tenant may not advertise the Premises
for
sublease at a rental rate below the rate,
if any, that Landlord is then
advertising other available space in the
Building, but Tenant may quote a lower
rental rate to potential subtenants and
actually sublease the Premises at a
rental rate below the rate Landlord is
advertising other space in the Building,
provided Tenant shall remain responsible
for the entire Base Rent amount
required under this Lease. If Tenant
subleases or assigns this Lease, it shall
be entitled to 50% of the net Profit from
such action and Landlord shall be
entitled to the remaining 50%. The term
Profit shall mean any premium (whether
payable in a lump sum or in installments
over the balance of the Term or
otherwise) secured by Tenant in connection
with the assignment or sublease
transaction which represents, to the
fullest extent which may be implied or
inferred from the totality of the
documentation, an excess differential over
Rent payable under this Lease (whether
resulting from increased rental value of
the Premises at such time or otherwise)
less Tenant's reasonable costs in
securing such assignee or sublessee,
including, but not limited to, brokerage
commissions, tenant improvements, rental
concessions, reasonable marketing costs
and attorney's fees, and its own credit
check fees,. Any sublease rent payable
under a sublease, or any payment for an
assignment of this Lease, shall be
payable to Tenant and Tenant shall promptly
submit to Landlord a list of all
expenses incurred by Tenant including, but
not limited to, concessions,
construction costs and other similar costs
paid for by Tenant for or on behalf
of Subtenant, that are part of the
calculation of net Profit plus 50% of the net
Profit, plus interest if not remitted after
thirty (30) days following receipt
by Tenant. In promoting the Premises,
Tenant may not use any marketing materials
prepared by Landlord, and may not use any
picture or rendering of the Building
prepared by Landlord. If Tenant offers more
than 35% of the Premises (the
"Offered Premises") for sublease or
assignment at any one time, Tenant shall so
notify Landlord in writing and Landlord
shall be entitled, at Landlord's sole
discretion, to recapture the Offered
Premises; provided that such recapture
right shall not apply if such sublease or
amendment is to an affiliate of
Tenant. To exercise its election, Landlord
shall give written notice of such
election to Tenant within 10 days of
receipt of Tenant's notice, in which case
this Lease shall be terminated as to the
Offered Premises as of the last day of
the month in which such notice is given,
and Landlord shall have the exclusive
right to lease the Offered Premises to
third parties or Tenant shall have the
right to rescind its notice to Landlord by
written notice within 10 days of
receipt of Landlord's notice.
8.3. Assumption
of Liability. Tenant shall remain liable for all
covenants, duties and obligations under
this Lease notwithstanding any permitted
assignment or subletting under Subparagraph
8.1 above. Tenant will cause any
permitted assignee to expressly assume in
writing and agree to perform all of
the covenants, duties and obligations of
Tenant under this Lease, and such
assignee shall be jointly and severally
liable along with Tenant.
8.4. Assignment
by Landlord. Landlord shall have the right to assign
or transfer, in whole or in part,
Landlord's rights and obligations under this
Lease in connection with a transfer of the
Building and the Premises. Tenant
shall recognize as its landlord any party
to whom Landlord assigns this Lease.
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9.
Ordinances and Statutes. At Tenant's sole cost, Tenant shall
comply
with all statutes, ordinances and
requirements of all municipal, state and
federal authorities pertaining to the
Premises including, but not limited to,
the Americans With Disabilities Act, except
to the extent of any breach of the
representation and warranty made by
Landlord below. Tenant is not obligated,
however, to cause the Common Areas to
comply with such statutes, ordinances and
requirements.
Landlord represents and warrants that to its actual knowledge,
the
Building and the Premises comply with the
Americans with Disabilities Act of
1990, as amended and other federal, state
and local accessibility laws and
ordinances ("Accessibility Laws"). If
Tenant performs any work in the Premises,
Tenant shall be required to cause such work
to comply with all Accessibility
Laws.
10. Tenant
Improvements; Maintenance, Repairs and Alterations.
10.1. Tenant's
Obligations. Except to the extent set forth in Section
10.4 hereof, Tenant shall, at its own
expense and at all times, maintain the
Premises in good repair and safe condition,
including but not limited to
performing its obligations under Paragraph
15 below. Tenant shall not use the
Premises in any way that affects the
structural integrity or mechanical systems
of the Building. Tenant shall observe and
keep all reasonable rules and
regulations promulgated by Landlord from
time to time for the safe, secure and
efficient operation of the Building, and
the Premises and for the safety of all
tenants, occupants and invitees thereof.
Landlord's current rules and
regulations are set forth in Exhibit B
attached to this Lease, which Landlord
shall have the right to reasonably amend
from time to time.
10.2. Limits on
Alterations. Tenant may not make any structural
alterations to the Premises without the
prior written consent of Landlord, which
consent may be withheld in Landlord's sole
discretion. Tenant may not make any
nonstructural alterations to the Premises
in excess of $50,000.00 without the
prior written consent of the Landlord,
which consent may not be unreasonably
withheld. Whether or not any Tenant
nonstructural alteration to the Premises
requires Landlord's prior written consent,
Tenant shall coordinate such
nonstructural alteration with Landlord
prior to any work being performed and
along such parameters as stated herein.
Landlord may require reasonable
assurances of lien-free completion of
alterations, such as, for example,
performance bonds and construction escrows.
All alterations shall be performed
in a good and workmanlike manner and
performed by a licensed contractor
reasonably acceptable to Landlord. All
materials shall be of a quality
comparable to or better than those in the
Premises and installed in accordance
with plans and specifications approved by
Landlord. No alterations may be made
that penetrate the roof of the Building or
the floor of the Premises or in any
way impair the safety of the Building.
Landlord shall be entitled to supervise
any alterations which Tenant, through an
outside contractor, makes to the
Premises (including the Initial Tenant
Improvements), in which case Landlord
shall be entitled to reimbursement of its
actual out-of-pocket costs incurred in
retaining such outside contractor, (which
shall be payable within thirty (30)
days following Tenant's receipt of
Landlord's invoice. Notwithstanding the
foregoing, Landlord shall not seek
reimbursement for any out-of-pocket costs for
the supervision of any cosmetic alterations
Tenant makes to the Premises and
which do not require Landlord approval.
10.3. Liens. Tenant
shall pay all costs of alterations permitted under
Subparagraph 10.2. Tenant shall keep the
Premises and the Building free and
clear of all mechanic's and materialman's
liens resulting from construction done
by or for Tenant. If any mechanic's or
materialman's lien is ever claimed, fixed
or asserted against the Premises or the
Building in connection with any Tenant
work, Tenant shall, within ten days after
receipt by Tenant of notice of such
lien, either (i) discharge the lien either
by payment or by posting a bond as
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permitted by law or (ii) provide Landlord
with title indemnity over such lien.
If Tenant does not discharge the lien,
whether valid or not, Landlord shall have
the right, but not the obligation, to
discharge the lien on Tenant's behalf, and
Tenant shall promptly reimburse Landlord
for all costs and expenses incurred by
Landlord associated with the discharge of
the lien, including without limitation
reasonable attorneys' fees.
10.4. Landlord's
Obligations. During the Term, Landlord shall make all
repairs to and perform necessary
maintenance on: (a) all structural elements of
the Building; (b) all mechanical,
electrical and plumbing systems that serve the
Building in general; and (c) the Building
facilities common to all tenants,
including the Common Areas. Landlord shall
also make all repairs to and perform
necessary maintenance on the elevator that
exclusively serves the 12th and 13th
floors of the Premises. Landlord shall also
perform the following items, at
Landlord's expense (and not subject to
reimbursement from Tenant as an Operating
Expense) and exclusive of the Allowance
(hereinafter defined): (a) repair, clean
and replace as necessary the existing
blinds; and (b) repair (including, without
limitation, repairs to warped boards,
banister repairs and application of new
stain) and maintain the existing deck on
the roof of the Building.
10.5. Initial Tenant
Improvements.
(a)
Following execution of this Lease, Tenant shall provide to
Landlord, for Landlord's reasonable
approval, a full set of architectural plans
and specifications ("Plans") to the extent
necessary for the build-out of the
Premises ("Initial Tenant Improvements")
and capable of being presented for the
purposes of obtaining all applicable
building permits from the City of Chicago.
The Plans shall be prepared by a reputable
architect selected by Tenant and
approved by Landlord and shall be paid for
by Tenant, except as set forth in
Section 10.5(c) below. Landlord may engage,
at Landlord's sole cost and expense,
an architect to review the Plans, in which
event Tenant shall cause its
architect to coordinate with Landlord's
architect. If needed, Tenant shall
engage, at Tenant's sole cost and expense,
a permit expediter, approved by
Landlord. Upon receipt of Landlord's
approval of the Plans, Tenant shall present
the Plans to contractors for bids. All
contractors bidding on the Initial Tenant
Improvements shall be subject to Landlord's
prior reasonable approval, which
approval shall not be unreasonably
withheld. Tenant shall construct or cause to
be constructed in the Premises, all
improvements in accordance with the
provisions of this Lease, and all
applicable laws, codes, ordinances, statutes
and regulations. Tenant shall be
responsible for all utilities consumed in the
Premises during the construction of the
Initial Tenant Improvements. Tenant
shall also reimburse Landlord for its
actual costs for rubbish removal during
the construction of the Initial Tenant
Improvements if rubbish removal is not
provided directly by Tenant's
contractor.
(b) During
the construction of the Initial Tenant Improvements,
Landlord will not charge a "Coordination or
administrative" fee (or any fees
associated with using the freight
elevators) during normal business hours
(Monday-Friday, 8:00am-6:00pm). Currently,
the after hours charge for using the
freight elevator is $60.00 per hour.
However, Landlord will be reimbursed by
Tenant for Landlord's actual out-of-pocket
if any of the following occur: (a)
Landlord pays for the services of an
outside vendor or consultant in the process
of reviewing/approving Tenant's plans or
construction; or (b) if Landlord incurs
actual costs in the coordination/assistance
of Tenant during the construction
phase; or (c) a supervisory fee is incurred
related to Tenant's use of the
loading dock or hoist after normal business
hours (Monday-Friday,
8:00am-6:00pm).
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(c)
Landlord shall provide Tenant with a Tenant Improvement
Allowance ("Allowance") for hard and soft
costs in the amount of $35.00 per
rentable square foot or $563,570.00 based
on 16,102 rentable square feet, of
which no more than $10.00 per rentable
square foot shall be used to pay for the
soft costs associated with the Initial
Tenant Improvements. Tenant may take, as
a base rental credit, up to $5.00 per
rentable square foot of the soft costs.
The Allowance shall be disbursed through a
construction escrow at Near North
National Title, LLC in substantially the
form attached hereto as Exhibit D,
which escrow shall provide interest at
competitive rates. In addition to the
Allowance, Landlord shall reimburse
Tenant's space planner for one (1) original
set of space plans and one (1)
revision.
(d) Upon
execution of this Lease and mutual approval of the Plans
and costs for the Initial Tenant
Improvements, if the cost of the Initial Tenant
Improvements exceeds the Allowance, Tenant
shall deposit the difference in the
cost of the Initial Tenant Improvements and
the Allowance into the construction
escrow. If as a result of a proposed change
order, the cost of the Initial
Tenant Improvements increases, (and such
increased cost exceeds the Allowance),
Tenant shall upon execution of such change
order, deposit the amount of the
increase into the construction escrow. Any
change order must be reviewed and
approved by Tenant and Landlord.
(e)
Tenant's contractor shall make requests for payment no more
frequently than monthly (the "Draw"). Each
Draw shall be submitted by Tenant's
contractor to Tenant for its review and
approval. After Tenant has approved such
Draw, Tenant shall forward it to Landlord
for its review and approval of the
Draw and its determination that the Initial
Tenant Improvements are in
substantial compliance with the plans and
specifications. Landlord shall review
and submit each Draw to Near North National
Title, LLC for payment.
11. Entry and
Inspection. Tenant shall permit Landlord or Landlord's agents
to enter the Premises at reasonable times
upon reasonable notice (which can
include verbal notice, except that no
notice is necessary if Landlord must enter
the Premises because of an emergency) for
the purpose of inspecting the
Premises, performing any services required
of Landlord under this Lease and
showing the Premises to potential and
existing mortgagees and purchasers of the
Building and, during the last year of the
Lease Term, prospective tenants of the
Building. Landlord shall use reasonable
efforts to minimize any interference to
Tenant's business as a result of any such
entry.
12. Indemnification.
Tenant shall indemnify, defend (by counsel reasonably
acceptable to Landlord), protect and hold
Landlord harmless from and against any
and all claims, demands, losses, damages,
costs and expenses, including
reasonable attorneys' fees ("Damages"),
arising out of or relating to Tenant's
default under this Lease or Tenant's use or
occupancy of the Premises or caused
by acts of Tenant or its agents, employees
or invitees, except to the extent
such Damages are caused by the negligence
or willful misconduct of Landlord or
its agents or employees. Landlord shall not
be liable to Tenant for any damage
caused by any act or negligence of any
other tenant or occupant of the Building
or by any owner or occupant of adjoining or
contiguous property, nor shall
Landlord be liable to Tenant other than for
Landlord's negligence or willful
misconduct. Landlord shall indemnify,
defend (by counsel reasonably acceptable
to Tenant), protect and hold Tenant
harmless from and against any and all
Damages arising from the negligence or
willful misconduct of Landlord or its
agents or employees.
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13. Tenant's
Insurance.
13.1 Types of
Insurance. At all times during the Lease Term, Tenant
shall, at its sole expense, maintain the
following types of insurance coverage:
(a)
comprehensive commercial general liability insurance
against any and all damages and liability
arising from injuries to or death of
any person or damage to property, however
occasioned, in, on or about the
Premises in amounts not less than
$2,000,000 for injury or death of one or more
persons in a single accident and $100,000
for damage to property;
(b)
property insurance adequate in amount to cover damage to
or replacement of, as necessary, the
leasehold improvements paid for by Tenant,
trade fixtures, furnishings, equipment,
goods and inventory;
(c)
business interruption insurance in an amount equal to
all fixed Rent payable under this Lease for
a period of at least 6 months
commencing with the date of loss;
(d)
employer's liability insurance and worker's compensation
insurance providing benefits for all
persons employed by Tenant in connection
with the Premises to the extent required by
applicable law;
(e)
if Tenant elects to serve liquor in the Premises or on
the outdoor deck, a policy or policies
insuring Tenant, Landlord and such other
parties as designated by Landlord, against
all liability now or hereinafter
imposed by law for damage on account of any
claims which may arise by virtue of
the sale or distribution of any
intoxicating beverages in or from the Premises,
including without limitation loss of means
of support and loss of consortium,
under and by virtue of the Illinois
Alcoholic Liquor Control Act or the Illinois
Liquor Control Act as may be amended or
such other act or acts now or
hereinafter in effect or any other laws,
ordinances, rules or regulations of any
other applicable governmental agency
(including without limitation Illinois
"home rule units") superseding or
supplementing any Illinois laws, ordinances,
rules or regulations. Such policy or
policies shall provide that the liability
of the issuer shall be as provided by law,
but in no event less than
$5,000,000.00 combined single limit
respecting death or bodily injury in any one
occurrence (or such greater amount as
Landlord reasonably may determine and
notify Tenant of from time to time),
together with $500,000.00 minimum single
limits on loss of means of
support/consortium and $500,000.00 minimum on
property losses. The policy or policies
shall be maintained throughout the Term
(as may be extended), and the policy,
policies or certificates thereof shall be
deposited with Landlord and shall name the
additional insureds, and contain the
non-cancellation provisions, otherwise
provided elsewhere in this Section; and
(f)
such other insurance in such amounts as may be
reasonably required by Landlord from time
to time.
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