Exhibit 10.2
BEHRINGER HARVARD
TIC MANAGEMENT SERVICES LP,
ON BEHALF OF THE OWNERS OF
TRAVIS TOWER
("LANDLORD")
BEHRINGER HARVARD EXCHANGE CONCEPTS LP
("TENANT")
1301 TRAVIS
HOUSTON, TEXAS
OFFICE LEASE
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TABLE OF CONTENTS
1. BASIC LEASE
PROVISIONS....................................................1
2.
PROJECT...................................................................2
3.
TERM......................................................................3
4.
RENT......................................................................4
5. USE &
OCCUPANCY...........................................................6
6. SERVICES &
UTILITIES......................................................7
7.
REPAIRS...................................................................9
8.
ALTERATIONS...............................................................9
9.
INSURANCE................................................................11
10. DAMAGE OR
DESTRUCTION....................................................11
11.
INDEMNITY................................................................12
12.
CONDEMNATION.............................................................13
13. TENANT
TRANSFERS.........................................................13
14. LANDLORD
TRANSFERS.......................................................14
15. DEFAULT AND
REMEDIES.....................................................15
16. SECURITY
DEPOSIT.........................................................19
17.
MISCELLANEOUS............................................................19
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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.
(a)
Execution Date: November ____,
2005.
(b)
Landlord:
BEHRINGER HARVARD TIC MANAGEMENT SERVICES
LP, ON BEHALF OF THE OWNERS OF TRAVIS TOWER
(c)
Tenant:
BEHRINGER HARVARD EXCHANGE CONCEPTS LP, a
Texas limited partnership
(d)
Building:
1301 Travis
Houston, Texas
deemed to contain: 508,656 rentable square
feet ("RSF")
(e)
Premises:
As described on Exhibit A attached hereto
(f)
Use:
Any lawful use
(g)
Scheduled Term: 36 months,
subject to earlier termination as
provided in this Lease.
(h)
Scheduled
Commencement Date:
January 1, 2006.
(i)
Base Rent:
The following amounts payable in accordance
with Article 4:
<TABLE>
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MONTHS
ANNUAL RATE PER RSF
ANNUAL BASE RENT
MONTHLY BASE RENT
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<S>
<C>
<C>
<C>
<C>
1 - 36
$16.36
$500,000.04
$41,666.67
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</TABLE>
(j)
Tenant's Share: Zero percent
(0%).
(k)
Base Year: The
calendar year 2006.
(l)
Security Deposit: None.
(m)
Notice Address: For each party,
the following address(es):
<TABLE>
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<S>
<C>
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TO LANDLORD
TO TENANT
----------------------------------------------------------------------------------------------------------
15601 Dallas Parkway, Suite 600
15601 Dallas Parkway, Suite 600
Dallas, Texas 75001
Dallas, Texas
75001
Attn: Kmeal Winters
Attn: Terry Kennon
Facsimile: (214) 655-1610
Facsimile: (214) 655-1610
and a copy of notices of default to:
Property Manager
1301 Travis, Suite 1260
Houston, Texas
77002
Facsimile: (713) 651-1214
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</TABLE>
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(n)
Billing Address: For each party, the
following address:
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<S>
<C>
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For Landlord
For Tenant
----------------------------------------------------------------------------------------------------------
c/o Bank One
15601 Dallas Parkway, Suite 600
P.O. Box 974238
Dallas, Texas
75001
Dallas, Texas 75397-2438
Attn: Terry Kennon
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</TABLE>
(o) Brokers:
None.
(p)
Parking Allotment:
None.
(q)
Liability Limit: $1,000,000.00 for any
one accident or
occurrence.
(r)
Construction
Allowance:
None
(s)
Business Hours: From 7:00 a.m.
to 7: 00 p.m. on Monday
through Friday and from 7:00 a.m. to 12:00
noon on Saturday, excepting: New Year's Day,
Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and the Friday following,
Christmas Day, and any other holiday
recognized and taken by tenants cumulatively
occupying at least one-half of the Net
Rentable Area of office space of the
Building ("Holidays").
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.
(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
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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.
3. TERM
3.1
TERM. "Term" means the period that begins on the Commencement
Date and ends on December 31, 2008 (the
"Expiration Date"), subject to earlier
termination as may be further provided in
this Lease. "Month" means a full
calendar month of the Term.
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 150% of the monthly 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
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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. During the Term, Tenant shall pay all 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. Tenant's obligation, if any, to pay Taxes and
Expenses under this ss.4.2 is referred to
in this Lease as "Additional Rent."
(a) TAXES. For each
calendar year after the Base Year (each, a
"Comparison Year"), Tenant shall pay as in the manner described
below the Tenant's Share of the amount that Taxes for the
Comparison Year exceed Taxes for the Base Year. "Taxes" means
the total costs incurred by Landlord for: (1) real and personal
property taxes and assessments (including ad valorem and
special
assessments) levied on the Project and Landlord's personal
property used in connection with the Project; (2) taxes on
rents
or other income derived from the Building; (3) capital and
place-of-business taxes; (4) taxes, assessments or fees in lieu
of the taxes described in (1-3); and (5) the reasonable costs
incurred to reduce the taxes described in (1-4). Taxes excludes
net income taxes and taxes paid under ss.4.3.
(b)
EXPENSES. For each Comparison Year, Tenant shall pay in the
manner described below the Tenant's Share of the amount that
Expenses for the Comparison Year exceed Expenses for the Base
Year. "Expenses" means the total costs incurred by Landlord to
operate, manage, administer, equip, secure, protect, repair,
replace, refurbish, clean, maintain, decorate and inspect the
Project, including a market fee to manage the Project of not
less than three percent (3%) of the gross revenue of the
Project. Expenses that vary with occupancy will be calculated
as
if the Building is 100% occupied and operating and all such
services are provided to all tenants.
(1)
Expenses include:
(A)
Standard Services provided under ss.6.1;
(B)
Repairs and maintenance performed under ss.7.2;
(C)
Insurance maintained under ss.11.1 (including
deductibles paid);
(D)
Wages, salaries and benefits of personnel to the
extent they render services to the Project;
(E)
Costs of operating the Project management office
(including reasonable rent);
(F)
Amortization installments of costs required to
be capitalized and incurred to:
(i)
Comply with laws ("Government Mandated
Expenses");
(ii)
Reduce other Expenses or the rate of
increase in other Expenses ("Cost-Saving
Expenses"); or
(iii) Improve or
maintain the safety, health
or access of Project occupants, and
otherwise maintain the quality,
appearance, or integrity of the Project
("Well-Being Expenses").
(2) Expenses exclude:
(A)
Taxes;
(B)
Mortgage payments (principal and interest), and
ground lease rent;
(C)
Commissions, advertising costs, attorney's fees
and costs of improvements in connection with
leasing space in the Building;
(D)
Costs reimbursed by insurance proceeds or
tenants of the Building (other than as
Additional Rent);
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(E)
Depreciation;
(F)
Except for the costs identified in
ss.4.2(b)(1)(F), costs required to be
capitalized according to sound real estate
accounting and management principles,
consistently applied;
(G)
Collection costs and legal fees paid in disputes
with tenants;
(H)
Costs to maintain and operate the entity that is
Landlord (as opposed to operation and
maintenance of the Project); and
(I)
In the Base Year, only, installments of costs
amortized under subsection (c) of this ss.4.2;
and
(J)
Costs of operating the parking facilities.
(c)
AMORTIZATION AND ACCOUNTING PRINCIPLES.
(1)
Each item of Government Mandated Expenses and Well-Being
Expenses will be fully amortized in equal annual
installments, with interest on the principal balance at
Amortization Rate, over the number of years, not to
exceed 10, that
Landlord projects the item of Expenses
will be productive for its intended use, without
replacement, but properly repaired and maintained.
(2)
Each item of Cost-Saving Expenses will be fully
amortized in equal annual installments, with interest on
the principal balance at the Amortization Rate, over the
number of years that Landlord reasonably estimates for
the present value of the projected savings in Expenses
(discounted at the Amortization Rate) to equal the cost.
(3)
Any item of Expenses of significant cost that is not
required to be capitalized but is unexpected or does not
typically recur may, in Landlord's discretion, be
amortized in equal annual installments, with interest on
the principal balance at the Amortization Rate, over a
number of years determined by Landlord.
(4)
"Amortization Rate" means the prime rate of Citibank,
N.A. (or a comparable financial institution selected by
Landlord), plus 3%.
(5)
Landlord will otherwise use sound real estate accounting
and management principles, consistently applied, to
determine Additional Rent.
(d)
ESTIMATES. Landlord will reasonably estimate Additional Rent
each calendar year that Additional Rent may be payable. Tenant
will pay the estimated Additional Rent in advance, in monthly
installments, on the first day of each month, until the
estimate
is revised by Landlord. Landlord may reasonably revise its
estimate during a calendar year and the monthly installments
after the revision will paid based on the revised estimate. The
aggregate estimates of Additional Rent paid by Tenant in a
calendar year is the "Estimated Additional Rent."
(e)
SETTLEMENT. As soon as practical after the end of each calendar
year that Additional Rent is payable, Landlord will give Tenant
a statement of the actual Additional Rent for the calendar
year.
The statement of Additional Rent is conclusive, binds Tenant,
and Tenant waives all rights to contest the statement, except
for items of Additional Rent to which Tenant objects by notice
to Landlord given within 90 days after receipt of Landlord's
statement; however, Tenant's objection will not relieve Tenant
from its obligation to pay Additional Rent pending resolution
of
any objection. If the Additional Rent exceeds the Estimated
Additional Rent for the calendar year, then Tenant shall pay
the
underpayment to Landlord in a lump sum as Rent within 30 days
after receipt of Landlord's statement of Additional Rent. If
the
Estimated Additional Rent exceeds the Additional Rent for the
calendar year, then Landlord shall credit the overpayment
against Rent next due. However, if the Term ends during a
calendar year, then Landlord may, in Landlord's sole
discretion,
elect
either of the following: (1) to forego the settlement of
Additional Rent for the calendar year that is otherwise
required
and accept the Estimated Additional Rent payable in the
calendar
year in satisfaction of Tenant's obligations to pay Additional
Rent for the final
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calendar year, or (2) to have Landlord's and Tenant's
obligations under this ss.4.2(e) survive the end of the Term.
4.3
OTHER TAXES. Upon demand, Tenant will reimburse Landlord for
taxes paid by Landlord on (a) Tenant's
Personal Property, (b) Rent, (c) Tenant's
occupancy of the Premises, or (d) this
Lease. If Tenant cannot lawfully
reimburse Landlord for these taxes, then
the Base Rent will be increased to
yield to Landlord the same amount after
these taxes were imposed as Landlord
would have received before these taxes were
imposed.
4.4
TERMS OF PAYMENT. "Rent" means all amounts payable by Tenant
under this Lease. 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 Rent will relieve
Tenant of its obligation to timely pay
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 within ten (10) days after
same becomes 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.
4.6
WAIVER OF TENANT RIGHTS AND BENEFITS UNDER SECTION 93.012,
TEXAS
PROPERTY CODE. Landlord and Tenant are
knowledgeable and experienced in
commercial leasing transactions and agree
that the provisions of this Lease for
determining all charges and amounts payable
by Tenant are commercially
reasonable and valid even though such
methods may not state a precise
mathematical formula for determining such
charges. Accordingly, Tenant
voluntarily and knowingly waives all rights
and benefits of a tenant under
Section 93.012, Texas Property Code, as
such section now exists or as may be
hereafter amended or succeeded. Nothing
contained in this waiver however is
intended to limit or impair Tenant's audit
rights granted hereunder, or except
as otherwise expressly set forth in this
Lease to the contrary, any other remedy
available to Tenant under the Lease or law
or in equity (other than Section
93.012, Texas Property Code). In addition,
nothing in this ss.4.7 shall
constitute a waiver of Tenant's right to
dispute and/or initiate a claim
disputing Landlord's calculation or
determination of Rent.
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
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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) 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
Terrorist Act of 2001 (USA Patriot Act),
H.R. 3152, Public Law 107-56 and the
Executive Order and regulations promulgated
hereunder 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
lighting in the Common Areas and as follows from
convenience outlets in the Premises: Building Standard
lighting, Building Standard HVAC and the operation of
customary quantities and types of office equipment
(excluding data processing), so long as (i) the
connected load does not exceed five (5) watts per RSF of
the Premise, and (ii) any item of electrical equipment
does not (singly) consume more than 500 watts per hour
at rated capacity or require a voltage other than one
hundred twenty (120) volts single phase.
(b)
STANDARD SERVICES PROVIDED. During the Term, Landlord shall
provide 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.
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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.
(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)
TENANT SOLE BENEFICIARY. This ss.6.4 is solely for Tenant's
benefit, and no one else shall be consid