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OFFICE LEASE

Office Lease Agreement

OFFICE LEASE | Document Parties: BEHRINGER HARVARD REIT I  INC | TIC MANAGEMENT SERVICES LP, You are currently viewing:
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BEHRINGER HARVARD REIT I INC | TIC MANAGEMENT SERVICES LP,

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Title: OFFICE LEASE
Date: 11/14/2005

OFFICE LEASE, Parties: behringer harvard reit i  inc , tic management services lp
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                                                                    Exhibit 10.1

 

 

 

 

                                BEHRINGER HARVARD

                           TIC MANAGEMENT SERVICES LP,

                         ON BEHALF OF THE OWNERS OF THE

                                 COLORADO BUILDING

                                  ("LANDLORD")

 

 

                         BEHRINGER HARVARD HOLDINGS LLC,

                      A DELAWARE LIMITED LIABILITY COMPANY

                                   ("TENANT")

 

 

                                    SUITE 800

 

 

                                COLORADO BUILDING

                                WASHINGTON, D.C.

                                  OFFICE LEASE

 

 

 

 

<PAGE>

 

                                TABLE OF CONTENTS

 

1.        BASIC LEASE PROVISIONS..............................................4

 

2.        PROJECT.............................................................4

 

3.        TERM................................................................7

 

4.        RENT................................................................7

 

5.        USE & OCCUPANCY.....................................................8

 

6.        SERVICES & UTILITIES................................................9

 

7.        REPAIRS............................................................11

 

8.        ALTERATIONS........................................................11

 

9.        INSURANCE..........................................................12

 

10.       DAMAGE OR DESTRUCTION..............................................13

 

11.       INDEMNITY..........................................................14

 

12.       CONDEMNATION.......................................................15

 

13.       TENANT TRANSFERS...................................................15

 

14.       LANDLORD TRANSFERS.................................................17

 

15.       DEFAULT AND REMEDIES...............................................18

 

16.       SECURITY DEPOSIT...................................................20

 

17.       MISCELLANEOUS......................................................20

 

 

                                        i

<PAGE>

 

                             INDEX OF DEFINED TERMS

 

 

Additional Insured            12                  Late Charge                     8

Affiliates                    15                  Lease                          4

Alterations                   11                  Leasehold Improvements         6

Base Building                  5                  Liability Limit                5

Base Rent                      4                  Mechanical Systems             6

Base Year                      4                  Month                          7

Billing Address                5                  New Premises                  20

Brokers                         5                  NLT                            7

Building                       4                  Notice Addresses               4

Building Standard              6                  Permitted Transferee          16

Building Structure              5                  Premises                       4

Business Hours                 5                  Project                        5

Claims                        14                  Rent                           8

Commencement Date              7                   Repair Estimate               13

Common Areas                   6                  Scheduled Commencement Date    4

Construction Allowance         5                  Scheduled Term                 4

Date                           4                  Security Deposit               4

Default Rate                  19                  Standard Services              9

Design Problem                11                  Successor Landlord            17

Encumbrance                   17                  Taking                         15

Expiration Date                7                  Telecommunication Services    10

Force Majeure                 20                  Tenant                         4

Hazardous Materials            8                  Tenant Default                18

Holdover                       7                  Tenant's Personal Property     6

Holidays                       5                  Tenant's Share                 4

HVAC                           9                  Tenant's Wiring               10

Interruption Estimate         13                  Term                           7

Land                           5                  Transfer                      15

Landlord                       4                  Use                            4

 

 

                                        iii

 

<PAGE>

 

                                      LEASE

 

        Landlord and Tenant enter into this Lease ("Lease") as of the Execution

Date on the following terms, covenants, conditions and provisions:

 

1.       BASIC LEASE PROVISIONS

 

         1.1      BASIC LEASE DEFINITIONS. In this Lease, the following defined

terms have the meanings indicated.

 

<TABLE>

<CAPTION>

<S>                                                                              <C>

        (a)      Execution Date:          November 7, 2005.

 

        (b)      Landlord:                BEHRINGER HARVARD TIC MANAGEMENT SERVICES LP,   a Texas

                                        limited   partnership, as agent for the owners

 

        (c)      Tenant:                  Behringer Harvard Holdings LLC, a   Delaware Limited Liability Company

 

        (d)      Building:                COLORADO BUILDING

                                        1341 G Street, N.W., Washington, D.C. 20005

                                        deemed to contain: 127,600 rentable square feet ("RSF")

 

        (e)      Premises:                Suite 800 (identified on Exhibit A), located on the 8th floor of the Building and

                                        deemed to contain: 11,131 RSF

 

        (f)      Use:                      General administrative non-governmental office use consistent with that of a

                                        first-class office building.

 

        (g)      Scheduled Term:          6 months.

 

        (h)      Scheduled Commencement

                 Date:                    July 1, 2005.

 

        (i)      Base Rent:               The following amounts payable in accordance with Article 4:

 

                ----------------------- ------------------------------ ---------------------- ----------------------------

                          MONTHS               ANNUAL RATE PER RSF          ANNUAL BASE RENT          MONTHLY BASE RENT

                ----------------------- ------------------------------ ---------------------- ----------------------------

                          1 - 6                      $32.34                   $360,000.00                 $30,000.00

                ----------------------- ------------------------------ ---------------------- ----------------------------

 

                 ----------------------- ------------------------------ ---------------------- ----------------------------

 

                ----------------------- ------------------------------ ---------------------- ----------------------------

 

                ----------------------- ------------------------------ ---------------------- ----------------------------

 

                ----------------------- ------------------------------ ---------------------- ----------------------------

 

        (j)      Tenant's Share:          n/a

        (k)      Base Year:               n/a

        (l)      Security Deposit:        n/a

        (m)      Notice Address:          For each party, the following address(es):

 

                ------------------------------------------------------- --------------------------------------------------

                                       TO LANDLORD                                           TO TENANT

                ------------------------------------------------------- --------------------------------------------------

                Behringer Harvard TIC Management Services LP             Before the Commencement Date:

                15601 Dallas Parkway                                     Behringer Harvard Holdings

                Suite 600                                                 15601 Dallas Parkway

                Addison, Texas   75001                                    Suite 600

                Attn: Mr. Terry Kennon                                   Addison, Texas 75001

                                                                         Attn: Gerald Reihsen

                ------------------------------------------------------- --------------------------------------------------

</TABLE>

 

 

                                       4

<PAGE>

<TABLE>

<CAPTION>

<S>                                                                              <C>

                ------------------------------------------------------- --------------------------------------------------

                and a copy of notices of default to:                     After the Commencement Date:

 

                Trammell Crow Company                                    Behringer Harvard Holdings

                1055 Thomas Jefferson Street, NW                         15601 Dallas Parkway

                Sixth Floor                                              Suite 600

                Washington, D.C. 20007                                   Addison, Texas 75001

                Attn: Property Manager, The Colorado Building            Attn: Gerald Reihsen

 

                ------------------------------------------------------- --------------------------------------------------

 

                ------------------------------------------------------- --------------------------------------------------

 

 

        (n)      Billing Address:         For each party, the following address:

                ------------------------------------------------------- --------------------------------------------------

                For Landlord                                              For Tenant

                ------------------------------------------------------- --------------------------------------------------

                Behringer Harvard TIC Management Services LP 15601       Behringer Harvard Holdings

                Dallas Parkway                                           15601 Dallas Parkway

                Suite 600                                                Suite 600

                Addison, Texas   75001                                    Addison, Texas 75001

                Attn: Mr. Terry Kennon                                   Attn:   Gerald Reihsen

                ------------------------------------------------------- --------------------------------------------------

 

        (o)      Brokers:                 Landlord's Broker is n/a, whose rights to a commission shall be provided by a

                                        separate agreement with Landlord.

 

                                        Tenant's Broker is n/a, whose rights to a commission shall be provided by a

                                        separate agreement with n/a.

 

        (p)      Parking Allotment:       1 permit per 1200 RSF of Premises.

        (q)      Liability Limit:         n/a

        (r)      Construction Allowance: n/a

        (s)      Business Hours:          From 8:00 a.m. to 7:00 p.m. on Monday through Friday and from 9:00 a.m. to 1:00 p.m.

                                        on Saturday, excepting: New Year's Day, Memorial Day, Independence Day, Labor Day,

                                        Thanksgiving Day, Christmas Day, President's Day, Columbus Day, Veteran's Day, and

                                        Martin Luther King Day ("Holidays").

</TABLE>

 

2.       PROJECT

 

        2.1      PROJECT. The Land, Building, Common Areas and Premises (as

defined in ss.1 and below) are collectively referred to as the "Project."

 

        2.2      LAND. "Land" means the real property on which the Project,

Building and Common Areas are located, and all other leaseholds, easements or

other interests owned by Landlord in connection with the Project, Building or

Common Areas., whether Landlord's interest in the Land is in fee or is a

leasehold. The Land is subject to expansion or reduction after the Execution

Date.

 

        2.3      BASE BUILDING. "Base Building" means Building Structure and

Mechanical Systems, collectively, defined as follows:

 

        (a)      BUILDING STRUCTURE. "Building Structure" means the foundations,

                floor/ceiling slabs, roofs, exterior walls, exterior glass and

                mullions, columns, beams, shafts (including elevator shafts),

                stairs, stairwells, elevators, Building mechanical, electrical

                and telephone closets, Common Areas, public areas, and any other

                structural components in the Building. The Building Structure

                excludes the Leasehold Improvements (and similar improvements to

                other premises) and the Mechanical Systems.

 

 

                                        5

<PAGE>

 

        (b)      MECHANICAL SYSTEMS. "Mechanical Systems" means the mechanical,

                electronic, physical or informational systems generally serving

                the Building or Common Areas, including the sprinkler, plumbing,

                heating, ventilating, air conditioning, lighting,

                communications, security, drainage, sewage, waste disposal,

                vertical transportation, fire/life safety systems.

 

        2.4      COMMON AREAS. Tenant will have a non-exclusive right to use the

Common Areas subject to the terms of this Lease. "Common Areas" means those

interior and exterior common and public areas on the Land and in the Building

(and appurtenant easements) designated by Landlord for the non-exclusive use by

Tenant in common with Landlord, other tenants and occupants, and their

employees, agents and invitees, including any parking facilities serving the

Building that are owned or leased by Landlord.

 

        2.5      PREMISES. Landlord leases to Tenant the Premises subject to the

terms of this Lease. Except as provided elsewhere in this Lease, by taking

possession of the Premises Tenant accepts the Premises in its "as is" condition

and with all faults, and the Premises is deemed in good order, condition, and

repair. The Premises includes the Leasehold Improvements and excludes certain

areas, facilities and systems, as follows:

 

        (a)      LEASEHOLD IMPROVEMENTS. "Leasehold Improvements" means all

                non-structural improvements in the Premises or exclusively

                serving the Premises, and any structural improvements to the

                Building made to accommodate Tenant's particular use of the

                Premises. The Leasehold Improvements may exist in the Premises

                as of the Execution Date, or be installed by Landlord or Tenant

                under this Lease at the cost of either party. The Leasehold

                Improvements include: (1) interior walls and partitions

                 (including those surrounding structural columns entirely or

                partly within the Premises); (2) the interior one-half of walls

                that separate the Premises from adjacent areas designated for

                leasing; (3) the interior drywall on exterior structural walls,

                and walls that separate the Premises from the Common Areas

                (defined below); (4) stairways and stairwells connecting parts

                of the Premises on different floors, except those required for

                emergency exiting; (5) the frames, casements, doors, windows and

                openings installed in or on the improvements described in (1-4),

                or that provide entry/exit to/from the Premises; (6) all

                hardware, fixtures, cabinetry, railings, paneling, woodwork and

                finishes in the Premises or that are installed in or on the

                improvements described in (1-5); (7) if any part of the Premises

                 is on the ground floor, the ground floor exterior windows

                (including mullions, frames and glass); (8) integrated ceiling

                systems (including grid, panels and lighting); (9) carpeting and

                other floor finishes; (10) kitchen, rest room, lavatory or other

                similar facilities that exclusively serve the Premises

                (including plumbing fixtures, toilets, sinks and built-in

                appliances); and (11) the sprinkler, plumbing, heating,

                ventilating, air conditioning, lighting, communications,

                security, drainage, sewage, waste disposal, vertical

                transportation, fire/life safety, and other mechanical,

                electronic, physical or informational systems that exclusively

                serve the Premises, including the parts of each system that are

                connected to the Mechanical Systems (defined below) from the

                common point of distribution for each system to and throughout

                the Premises.

 

        (b)      EXCLUSIONS FROM THE PREMISES. The Premises does not include: (1)

                any areas above the finished ceiling or integrated ceiling

                systems, or below the finished floor coverings that are not part

                of the Leasehold Improvements, (2) janitor's closets, (3)

                stairways and stairwells to be used for emergency exiting or as

                Common Areas, (4) rooms for Mechanical Systems or connection of

                telecommunications equipment, (5) vertical transportation

                shafts, (6) vertical or horizontal shafts, risers, chases, flues

                or ducts, and (7) any easements or rights to natural light, air

                 or view.

 

        2.6      BUILDING STANDARD. "Building Standard" means the minimum or

exclusive type, brand, quality or quantity of materials Landlord designates for

use in the Building from time to time.

 

        2.7      TENANT'S PERSONAL PROPERTY. "Tenant's Personal Property" means

those trade fixtures, furnishings, equipment, work product, inventory,

stock-in-trade and other personal property of Tenant that are not permanently

affixed to the Project in a way that they become a part of the Project and will

not, if removed, impair the value of the Leasehold Improvements that Tenant is

required to deliver to Landlord at the end of the Term under ss.3.3.

 

 

                                       6

<PAGE>

 

3.       TERM

 

        3.1      TERM. "Term" means the period that begins on the Commencement

Date and ends on the Expiration Date, subject to renewal, extension or earlier

termination as may be further provided in this Lease. "Month" means a full

calendar month of the Term.

 

        (a)      COMMENCEMENT DATE. The "Commencement Date" means the date that

                is the earlier of:

 

                (1)      The day that Tenant first conducts business in any part

                        of the Premises; or

 

                (2)      The day that Landlord tenders the Premises to Tenant

                        with Landlord's Work substantially complete or that date

                        that Landlord would have tendered possession of the

                        Premises but for Tenant Delay. If Landlord fails to

                        tender possession of the Premises to Tenant by the

                        Scheduled Commencement Date due to Tenant Delay or Force

                        Majeure, Landlord will not be in default of this Lease.

 

        (b)      EXPIRATION DATE. "Expiration Date" means the date that is the

                last day of the Scheduled Term (plus that many additional days

                required for the Expiration Date to be the last day of a

                calendar month) after the later of:

 

                (1)      The Scheduled Commencement Date, or

 

                (2)      The Commencement Date.

 

        (c)      EARLY OCCUPANCY. Tenant may not enter the Premises for any

                purpose until Landlord tenders the Premises to Tenant. If Tenant

                conducts business in any part of the Premises before the

                Scheduled Commencement Date, Base Rent for that period will be

                paid by Tenant at the rate for the first Month that Base Rent

                and Additional Rent is due and not discounted, excused or free.

 

        (d)      CONFIRMATION OF TERM. Landlord shall notify Tenant of the

                Commencement Date using a Notice of Lease Term ("NLT") in the

                form attached to this Lease as Exhibit C. Tenant shall execute

                and deliver to Landlord the NLT within 10 business days after

                its receipt, but Tenant's failure to do so will not reduce

                Tenant's obligations or Landlord's rights under this Lease.

 

        3.2      HOLDOVER. If Tenant keeps possession of the Premises after the

end of the Term (a "Holdover") without Landlord's prior written consent (which

may be withheld in its sole discretion), then in addition to the remedies

available elsewhere under this Lease or by Law, Tenant will be a tenant at

sufferance and must comply with all of Tenant's obligations under this Lease,

except that during the Holdover Tenant will pay 200% of the monthly Base Rent

and Additional Rent last payable under this Lease, without prorating for any

partial month of Holdover. Tenant shall indemnify and defend Landlord from and

against all claims and damages, both consequential and direct, that Landlord

suffers due to Tenant's failure to return possession of the Premises to Landlord

at the end of the Term. Landlord's deposit of Tenant's Holdover payment will not

constitute Landlord's consent to a Holdover, or create or renew any tenancy.

 

        3.3      CONDITION ON EXPIRATION. By the end of the Term, Tenant will

return possession of the Premises to Landlord vacant, free of Tenant's Personal

Property, in broom-clean condition, and with all Leasehold Improvements in good

working order and repair (excepting ordinary wear and tear), except that Tenant

will remove Tenant's Wiring and those Leasehold Improvements and Alterations

that, when approved by Landlord, were required to be removed at the end of the

Term. If Tenant fails to return possession of the Premises to Landlord in this

condition, Tenant shall reimburse Landlord for the costs incurred to put the

Premises in the condition required under this ss.3.3, including Landlord's

standard administration fee. Tenant's Personal Property left behind in the

Premises after the end of the Term will be considered abandoned and Landlord may

move, store, retain or dispose of these items at Tenant's cost, including

Landlord's standard administration fee.

 

4.       RENT

 

        4.1      BASE RENT. Tenant shall prepay 1 month's installment of Base

Rent by the Execution Date, to be applied against Base Rent first due under this

Lease. During the Term, Tenant shall pay all other Base Rent in advance, in

monthly installments, on the 1st of each calendar month. Base Rent for any

partial month will be prorated.

 

         4.2      ADDITIONAL RENT. INTENTIONALLY DELETED

 

 

                                       7

<PAGE>

 

        4.3      OTHER TAXES. INTENTIONALLY DELETED

 

        4.4      TERMS OF PAYMENT. "Rent" means all amounts payable by Tenant

under this Lease and the Exhibits, including Base Rent. If a time for payment of

an item of Rent is not specified in this Lease, then Tenant will pay Rent within

30 days after receipt of Landlord's statement or invoice. Unless otherwise

provided in this Lease, Tenant shall pay Rent without notice, demand, deduction,

abatement or setoff, in lawful U.S. currency, at Landlord's Billing Address.

Landlord will send invoices payable by Tenant to Tenant's Billing Address;

however, neither Landlord's failure to send an invoice nor Tenant's failure to

receive an invoice for Base Rent (and installments of Estimated Additional Rent)

will relieve Tenant of its obligation to timely pay Base Rent (and installments

of Estimated Additional Rent). Each partial payment by Tenant shall be deemed a

payment on account; and, no endorsement or statement on any check or any

accompanying letter shall constitute an accord and satisfaction, or affect

Landlord's right to collect the full amount due. No payment by Tenant to

Landlord will be deemed to extend the Term or render any notice, pending suit or

judgment ineffective. By notice to the other, each party may change its Billing

Address.

 

        4.5      LATE PAYMENT. If Landlord does not receive all or part of any

item of Rent when due, then Tenant shall pay Landlord a "Late Charge" of 5% of

the overdue amount. Tenant agrees that the Late Charge is not a penalty, and

will compensate Landlord for costs not contemplated under this Lease that are

impracticable or extremely difficult to fix. Landlord's acceptance of a Late

Charge does not waive Tenant's default.

 

5.       USE & OCCUPANCY

 

        5.1      USE. Tenant shall use and occupy the Premises only for the Use.

Landlord does not represent or warrant that the Project is suitable for the

conduct of Tenant's particular business.

 

        5.2      COMPLIANCE WITH LAWS AND DIRECTIVES.

 

        (a)      TENANT'S COMPLIANCE. Subject to the remaining terms of this

                Lease, Tenant shall comply at Tenant's expense with all

                directives of Landlord's insurers or laws concerning:

 

                (1)      The Leasehold Improvements and Alterations,

 

                (2)      Tenant's use or occupancy of the Premises,

 

                (3)      Tenant's employer/employee obligations,

 

                (4)       A condition created by Tenant,

 

                (5)      Tenant's failure to comply with this Lease or its

                        invitees,

 

                (6)      The negligence of Tenant, the Tenant Parties, or

                        Tenant's Affiliates or contractors, or

 

                (7)      Any chemical wastes, contaminants, pollutants or

                        substances that are hazardous, toxic, infectious,

                        flammable or dangerous, or regulated by any local, state

                         or federal statute, rule, regulation or ordinance for

                        the protection of health or the environment ("Hazardous

                        Materials") that are introduced to the Project, handled

                         or disposed by Tenant or its Affiliates, or any of their

                        contractors.

 

        (b)      LANDLORD'S COMPLIANCE. Subject to the remaining terms of this

                Lease, Landlord shall comply at Landlord's cost with all

                 directives of Landlord's insurers or laws concerning the Project

                other than those that are Tenant's obligation under subsection

                (a). The costs of compliance under this subsection (b) will be

                included in Expenses to the extent allowed under ss.4.2.

 

        5.3      OCCUPANCY. Tenant shall not interfere with Building services or

other tenants' rights to quietly enjoy their respective premises or the Common

Areas. Tenant shall not make or continue any nuisance, including any

objectionable odor, noise, fire hazard, vibration, or wireless or

electromagnetic transmission. Tenant's will not maintain any Leasehold

Improvements or use the Premises in a way that increases the cost of insurance

required under ss.9.2, or requires insurance in addition to the coverage

required under ss.9.2.

 

        5.4      PROHIBITED PERSONS AND TRANSACTIONS. Tenant represents and

warrants to Landlord that (a) Tenant is currently in compliance with and shall

at all times during the Scheduled Term (including any extension thereof) remain

in compliance with the regulations of the Office of Foreign Asset Control

("OFAC") of the Department of the Treasury (including those named on the OFAC's

Specially Designated and Blocked Persons List)

 

 

                                       8

<PAGE>

 

and any statute, executive order (including the September 24, 2001, Executive

Order No. 13224 Blocking Property and Prohibiting Transactions with Persons Who

Commit, Threaten to Commit or Support Terrorism (the "Executive Order")), or

other governmental action relating thereto; and (b) Tenant is not, and will not

be, a person with whom Landlord is restricted from doing business under the

Uniting and Strengthening America by Providing Appropriate Tools Required to

Intercept and Obstruct Terrorism Act of 2001 (USA Patriot Act), H. R. 3152,

Public Law 107-56 and the Executive Order and the regulations promulgated

thereunder and including persons and entities named on the OFAC Specially

Designated Nations and Blocked Persons List.

 

6.       SERVICES & UTILITIES

 

        6.1      STANDARD SERVICES.

 

        (a)      STANDARD SERVICES DEFINED. "Standard Services" means:

 

                (1)      Heating, ventilation and air-conditioning ("HVAC")

                         during Business Hours as reasonably required to

                        comfortably use and occupy the Premises and interior

                        Common Areas;

 

                (2)      Tempered water from the public utility for use in Common

                         Areas rest rooms;

 

                (3)      Janitorial services to the Premises and interior Common

                        Areas 5 days a week, except Holidays, to the extent

                        reasonably determined by Landlord;

 

                 (4)      Access to the Premises (by at least 1 passenger elevator

                        if not on the ground floor);

 

                (5)      Building standard bulbs are provided to Tenant,

                        specialty bulbs will be billed to Tenant;

 

                (6)      Labor to replace fluorescent tubes and ballasts in

                        Building Standard light fixtures in the Premises; and

 

                (7)      Electricity from Landlord's selected provider(s) for

                         Common Areas lighting, Building Standard light fixtures

                        in the Premises and to convenience outlets in the

                        Premises for the operation of customary quantities and

                        types of office equipment, however, the connected load

                        does not exceed two and one-half (2.5) watts per

                        rentable square foot of the Premises during Business

                        Hours on an annual basis.

 

        (b)      STANDARD SERVICES PROVIDED. During the Term, Landlord provides

                the Standard Services to Tenant. The cost of the Standard

                Services is included in Expenses. Landlord is not responsible

                for any inability to provide Standard Services due to either:

                the concentration of personnel or equipment in the Premises; or

                Tenant's use of equipment in the Premises that is not customary

                office equipment, has special cooling requirements, or generates

                heat.

 

        6.2      ADDITIONAL SERVICES. Unless Tenant obtains Landlord's prior

written consent, Tenant will not use utilities or services in excess of the

Standard Services. If Landlord so consents, Landlord may provide utilities and

services in excess of the Standard Services subject to the following however, if

Tenant shall fail to pay for such Additional Services, in addition to Landlord's

other remedies under the Lease, Landlord may discontinue the Additional

Services:

 

        (a)      HVAC. If Tenant requests HVAC service to the Premises during

                non-Business Hours, Tenant will give Landlord at least 24 hour

                notice of same, and Tenant will pay as Rent Landlord's scheduled

                 rate for this service.

 

        (b)      LIGHTING. Landlord will furnish both Building Standard and

                non-Building Standard lamps, bulbs, ballasts and starters that

                are part of the Leasehold Improvements for purchase by Tenant at

                Landlord's cost, plus Landlord's standard administration fee.

                Landlord will install non-Building Standard items at Landlord's

                scheduled rate for this service.

 

        (c)      OTHER UTILITIES AND SERVICES. Tenant will pay as Rent the actual

                cost of utilities or services (other than HVAC and lighting

                addressed in (a) and (b)) either used by Tenant or provided at

                Tenant's request in excess of that provided as part of the

                Standard Services, plus Landlord's standard administration fee.

                Tenant's excess consumption may be estimated by Landlord unless

                either Landlord requires or Tenant elects to install Building

                Standard meters to measure Tenant's consumption.

 

 

                                       9

<PAGE>

 

        (d)      ADDITIONAL SYSTEMS AND METERING. Landlord may require Tenant, at

                Tenant's expense, to upgrade or modify existing Mechanical

                Systems serving the Premises or the Leasehold Improvements to

                the extent necessary to meet Tenant's excess requirements

                (including installation of Building Standard meters to measure

                 the same).

 

        6.3      ALTERNATE ELECTRICAL BILLING. Landlord may elect at any time

during the Term after the Base Year, and continuing for the remainder of the

Term, to separately meter Tenant's total consumption of electricity in the

Premises, including lighting and convenience outlets. If Landlord so elects,

then Landlord shall notify Tenant of such election and in lieu of including

consumption of electricity of tenanted premises in Expenses, Tenant shall pay to

Landlord as Rent the actual cost of Tenant's electricity consumption to the

extent that it exceeds Tenant's Proportional Share of the consumption of

electricity of tenanted premises in the Base Year (as reasonably estimated by

Landlord if this consumption was not then separately metered), plus Landlord's

standard administration fee.

 

        6.4      TELECOMMUNICATIONS SERVICES. Tenant will contract directly with

third party providers and will be solely responsible for paying for all

telephone, data transmission, video and other telecommunication services

("Telecommunication Services") subject to the following:

 

        (a)      PROVIDERS. Each Telecommunications Services provider that does

                not already provide service to the Building shall be subject to

                Landlord's approval, which Landlord may withhold in Landlord's

                sole discretion. Without liability to Tenant, the license of any

                Telecommunications Services provider servicing the Building may

                be terminated under the terms of the license, or not renewed

                upon the expiration of the license.

 

        (b)      TENANT'S WIRING. Landlord may, in its sole discretion, designate

                the location of all wires, cables, fibers, equipment, and

                 connections ("Tenant's Wiring") for Tenant's Telecommunications

                Services, restrict and control access to telephone cabinets and

                rooms. Tenant may not use or access the Base Building, Common

                Areas or roof for Tenant's Wiring without Landlord's prior

                written consent, which Landlord may withhold in Landlord's sole

                discretion, or for which Landlord may charge a fee determined by

                Landlord.

 

        (c)       This ss.6.4 is solely for Tenant's benefit, and no one else

                shall be considered a third party beneficiary of these

                provisions.

 

        6.5      INTERRUPTION OF SERVICES.

 

        (a)      Without breaching the Lease, Landlord may:

 

                (1)      Comply with laws or voluntary government or industry

                        guidelines concerning the services to be provided by

                        Landlord or obtained by Tenant under this Article 6;

 

                (2)      Interrupt, limit or discontinue the services to be

                        provided by Landlord or obtained by Tenant under this

                        Article 6 as may be reasonably required during an

                        emergency or Force Majeure event; or

 

                (3)      If Landlord gives Tenant reasonable prior notice and

                        uses commercially reasonable efforts not to disturb

                        Tenant's use of the Premises for the Use, interrupt,

                         limit or discontinue the services to be provided by

                        Landlord or obtained by Tenant under this Article 6 to

                        repair and maintain the Project under ss.7.2, or make

                        any improvements or changes to the Project.

 

        (b)      ABATEMENT FOR INTERRUPTION OF STANDARD SERVICES. If all or a

                part of the Premises is untenantable because of an interruption

                in a utility service that prevents Landlord from providing any

                of the Standard Services for more than (7) seven consecutive

                days, then from the 8th consecutive day of interruption until

                the Standard Services are restored, Landlord shall abate

                 Tenant's Base Rent and Additional Rent, subject to the

                following:

 

                (1)      Landlord will only abate Base Rent and Additional Rent

                        to the extent the Premises are untenantable and not

                         actual


 
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