|
OFFICE LEASE AGREEMENT
This Office Lease Agreement ( the “Lease” ), made and
entered into on this the 31st day of May, 2007, between Oklahoma
Tower Realty Investors, L.L.C., an Oklahoma limited liability
company (“ Landlord
”) and Quest Resources Corporation an Oklahoma
corporation (“ Tenant
”).
W I
T N
E S
S E
T H
:
1. Definitions . The following are definitions of some of the defined terms used
in this Lease. The definition of other defined terms are found
throughout this Lease.
A. “Building” shall mean the office building at 210 Park Avenue, Oklahoma
City, County of Oklahoma, State of Oklahoma, currently known as
Oklahoma Tower.
B. “Base Rent” : Base Rent will be paid according to the following schedule,
subject to the provisions of Section 5. hereof. For the
purposes of this Section 1.B., “ Lease Year ” shall mean the
twelve (12) month period commencing on the Commencement Date, and
on each anniversary of the Commencement Date.
|
PERIOD
|
MONTHLY INSTALLMENTS
OF BASE
RENT
|
|
September 1 st , 2007 thru August 31
st , 2017
|
$52,590.00
|
The Base Rent due for the first month during the
Lease Term (hereinafter defined) shall be paid by Tenant to
Landlord contemporaneously with Tenant’s execution
hereof.
C. “Additional Rent”
: shall mean Tenant’s Pro Rata Share of Basic
Costs (hereinafter defined) and any other sums (exclusive of Base
Rent) that are required to be paid to Landlord by Tenant hereunder,
which sums are deemed to be Additional Rent under this Lease.
Additional Rent and Base Rent are sometimes collectively referred
to herein as “Rent.”
D. “Basic Costs”
shall mean all direct and indirect costs and
expenses incurred in connection with the Building as more fully
defined in Exhibit C
attached hereto.
E. “Security Deposit”
shall mean the sum of Fifty-Four Thousand Five
Hundred Forty-Three and no/100 Dollars ($52,590.00). The Security
Deposit shall be paid by Tenant to Landlord contemporaneously with
Tenant’s execution hereof.
F. “Commencement Date”, “Lease
Term” and “Termination Date” shall
have the following meaning: The
“Lease Term” shall mean a
period of one hundred twenty (120) months commencing on October 1
st , 2007 (the “Commencement Date ”)
and, unless sooner terminated as provided herein, end on September
30th, 2017 (the “ Termination
Date ”)
G. “Premises” shall mean the office space located within the Building and
outlined on Exhibit A to
this Lease and known as suite 2750.
H. “Approximate Rentable Area in the
Premises” shall mean the area
contained within the demising walls of the Premises and any other
area designated for the exclusive use of Tenant plus an allocation
of the Tenant’s pro rata share of the square footage of the
“Common Areas” and the
“Service Areas” (as defined below). For
purposes of the Lease it is agreed and stipulated by both Landlord
and Tenant that the Approximate Rentable Area in the Premises is
35,060 square feet.
I. The
“Approximate Rentable Area in the
Building” is 565,414 square feet.
The Approximate Rentable Area in the Premises and the Approximate
Rentable Area in the Building as set forth herein may be revised at
Landlord’s election if Landlord’s architect determines
such estimate to be inaccurate in any material degree after
examination of the final drawings of the Premises and the
Building.
J. “Tenant’s Pro Rata
Share” shall mean six point four
three percent (6.20%), which is the quotient (expressed as a
percentage), derived by dividing the Approximate Rentable Area in
the Premises by the Approximate Rentable Area in the
Building.
K. “Permitted Use”
shall mean general office use and no other use or
purpose.
L. “Base Year” shall mean the calendar year 2007.
M. “Guarantor(s) : Not Applicable.
N. “Broker” shall mean Price Edwards and Company and Grubb & Ellis |
Levy Beffort.
O. “Building Manager”
shall mean such company as Landlord shall designate
from time to time.
P. “Building Standard”,
shall mean the type, brand, quality and/or quantity
of materials Landlord designates from time-to-time to be the
minimum quality and/or quantity to be used in the Building or the
exclusive type, grade, quality and/or quantity of material to be
used in the Building.
Q. “Business Day(s)”
shall mean Mondays through Fridays exclusive of the
normal business holidays of New Year’s Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day
( “Holidays”)
. Landlord, from time to time during the Lease Term,
shall have the right to designate additional Holidays, provided
such additional Holidays are commonly recognized by other office
buildings in the area where the Building is located.
R. “Common Areas”
shall mean those areas located within the Building
or on the Property used for corridors, elevator foyers, mail rooms,
restrooms, mechanical rooms, elevator mechanical rooms, property
management office, janitorial closets, electrical and telephone
closets, vending areas, and lobby areas (whether at ground level or
otherwise), entrances, exits, sidewalks, skywalks, tunnels,
driveways, parking areas and parking garages and landscaped areas
and other similar facilities provided for the common use or benefit
of tenants generally and/or the public.
S. “Default Rate”
shall mean the lower of (i) eighteen (18%) or (ii)
the Maximum Rate.
T. “Maximum Rate”
shall mean the highest rate of interest from
time-to-time permitted under applicable federal and state
law.
U. “Normal Business Hours”
for the Building shall mean 8:00 a.m. to 6:00 p.m.
Mondays through Fridays, and 8:00 a.m. to 1:00 p.m. on Saturdays,
exclusive of Holidays.
V. “Property” shall mean the Building and the parcel(s) of land on which it
is located, other improvements located on such land, adjacent
parcels of land that Landlord operates jointly with the Building,
and other buildings and improvements located on such adjacent
parcels of land.
W. “Service Areas”
shall mean those areas within the Building used for
stairs, elevator shafts, flues, vents, stacks, pipe shafts and
other vertical penetrations (but shall not include any such areas
for the exclusive use of a particular tenant).
X. “Notice Addresses”
shall mean the following addresses for Tenant and
Landlord, respectively:
Tenant:
Quest Resources Corporation
210 Park Avenue
Suite 2750
Oklahoma City, OK 73102
with a copy to:
N/A
Landlord:
Oklahoma Tower Realty Investors, L.L.C.
1601 NW Expressway, Ste. 500
Oklahoma City, OK 73118
Payments of Rent only shall be made payable to the
order of:
Oklahoma Tower Realty Investors, L.L.C.
at the following address:
1601 NW Expressway, Ste. 500
Oklahoma City, OK 73118
or such other name and address as Landlord shall,
from time to time, designate.
2. Lease
Grant. Subject to and upon the terms
herein set forth, Landlord leases to Tenant and Tenant leases from
Landlord the Premises together with the right, in common with
others, to use the Common Areas.
3. Adjustment of
Commencement Date/Possession.
A. The Lease Term shall not commence until the later
to occur of the Commencement Date and the date that Tenant has
substantially completed the work to be performed by Tenant as set
forth in the Work Letter Agreement attached hereto as
Exhibit D (“ Tenant’s
Work ”); provided, however, that if
Tenant shall be delayed in substantially completing the
Tenant’s Work as a result of the occurrence of any of the
following (a “Delay
”):
|
|
(1)
|
INTENTIONALLY OMITTED; or
|
|
|
(2)
|
Tenant’s insistence on materials, finishes or
installations that have long lead times after Tenant has been
informed that such materials, finishes or installations will cause
a Delay; or
|
|
|
(3)
|
Changes in any plans and specifications approved by
Landlord; or
|
|
|
(4)
|
The failure to timely perform by a person or entity
employed by on or behalf of Tenant in the completion of any work in
the Tenant’s Work; or
|
|
|
(5)
|
INTENTIONALLY OMITTED; or
|
|
|
(6)
|
Any breach or default by Tenant in the performance
of Tenant’s obligations under this Lease; or
|
|
|
(7)
|
INTENTIONALLY OMITTED; or
|
(8) Any other
delay chargeable to Tenant, its agents, employees or independent
contractors;
then, for purposes of determining the Commencement
Date, the date of substantial completion shall be deemed to be the
day that said Tenant’s Work would have been substantially
completed absent any such Delay(s). The Tenant’s Work shall
be deemed to be substantially completed on the date that
Tenant’s Work has been performed (or would have been
performed absent any Delay(s)) other than any details of
construction, mechanical adjustment or any other matter, the
noncompletion of which does not materially interfere with
Tenant’s use of the Premises. Promptly after the
determination of the Commencement Date, Landlord and Tenant shall
enter into a letter agreement (the “ Commencemen t Letter ”) on the form attached
hereto as Exhibit F setting forth the Commencement Date, the Termination Date and
any other dates that are affected by the adjustment of the
Commencement Date. Tenant, within five (5) days after receipt
thereof from Landlord, shall execute the Commencement Letter and
return the same to Landlord. Notwithstanding anything herein to the
contrary, Landlord may elect, by written notice to Tenant, not to
adjust the Commencement Date as provided above if such adjustment
would cause Landlord to be in violation of the existing rights
granted to any other tenant of the Building. If Landlord elects not
to adjust the Commencement Date, the Commencement Date shall be the
Commencement Date, provided that Base Rent and Additional Rent
shall not commence until the date that Tenant’s Work has been
substantially completed (or would have been substantially completed
absent any Delays).
B. By taking possession of the Premises, Tenant is
deemed to have accepted the Premises and agreed that the Premises
is in good order and satisfactory condition, with no representation
or warranty by Landlord as to the condition of the Premises or the
Building or suitability thereof for Tenant’s use.
C. If Landlord is prevented from delivering
possession of the Premises to Tenant due to the holding over in
possession of the Premises by a tenant or other occupant thereof,
Landlord shall use reasonable efforts to regain possession of the
Premises in order to deliver the same to Tenant. The Commencement
Date and Termination Date shall be determined as provided in
Section 3.A. above.
D. If Tenant takes possession of the Premises prior
to the Commencement Date, such possession shall be subject to all
the terms and conditions of the Lease and Tenant shall pay Base
Rent and Additional Rent to Landlord for each day of occupancy
prior to the Commencement Date. Notwithstanding the foregoing, if
Tenant, with Landlord’s prior approval, takes possession of
the Premises prior to the Commencement Date for the sole purpose of
performing Tenant’s Work, such possession shall be subject to
all of the terms and conditions of the Lease, except that Tenant
shall not be required to pay Rent with respect to the period of
time prior to the Commencement Date during which Tenant performs
such work. Tenant shall, however, be liable for the cost of any
services (e.g. electricity, HVAC, freight elevators) that are
provided to Tenant or the Premises during the period of
Tenant’s possession prior to the Commencement Date. Nothing
herein shall be construed as granting Tenant the right to take
possession of the Premises prior to the Commencement Date, whether
for construction, fixturing or any other purpose, without the prior
consent of Landlord, which consent shall not be unreasonably
withheld or delayed.
4. Use . The Premises shall be used for the Permitted Use and for no
other purpose. Tenant agrees not to use or permit the use of the
Premises for any purpose which is illegal, dangerous to life, limb
or property or
which, in Landlord’s reasonable judgment,
creates a nuisance or which would increase the cost of insurance
coverage with respect to the Building. Tenant will conduct its
business and control its agents, servants, employees, customers,
licensees, and invitees in such a manner as not to interfere with,
annoy or disturb other tenants or Landlord in the management of the
Building and the Property. Tenant will maintain the Premises in a
clean and healthful condition, and Tenant’s particular use
shall comply with all laws, ordinances, orders, rules and
regulations of any governmental entity with reference to the use,
condition, configuration or occupancy of the Premises. Tenant,
within ten (10) days after the receipt thereof, shall provide
Landlord with copies of any notices it receives with respect to a
violation or alleged violation of any such laws, ordinances,
orders, rules and regulations. Tenant, at its expense, will comply
with the rules and regulations of the Building attached hereto
as Exhibit B and
such other rules and regulations adopted and altered by Landlord
from time-to-time and will cause all of its agents, employees,
invitees and visitors to do so. All such changes to rules and
regulations will be reasonable and shall be sent by Landlord to
Tenant in writing. Landlord hereby agrees that (a) to the extent
that any of the rules and regulations conflict with the terms and
conditions of this Lease, the terms and conditions of the Lease
shall govern and control, and (b) Landlord shall not enforce the
rules and regulations in a manner that discriminates against
Tenant.
5. Base
Rent .
A. Tenant covenants and agrees to pay to Landlord
during the Lease Term, without any setoff or deduction except as
otherwise expressly provided herein, the full amount of all Base
Rent and Additional Rent due hereunder and the full amount of all
such other sums of money as shall become due under this Lease
(including, without limitation, any charges for replacement of
electric lamps and ballasts and any other services, goods or
materials furnished by Landlord at Tenant’s request), all of
which hereinafter may be collectively called “
Rent .” In
addition Tenant shall pay and be liable for, as Additional Rent,
all rent, sales and use taxes or other similar taxes, if any,
levied or imposed by any city, state, county or other governmental
body having authority, such payments to be in addition to all other
payments required to be paid to Landlord by Tenant under the terms
and conditions of this Lease. Any such payments shall be paid
concurrently with the payments of the Rent on which the tax is
based. The Base Rent and Additional Rent for each calendar year or
portion thereof during the Lease Term, shall be due and payable in
advance in monthly installments of the first day of each calendar
month during the Lease Term and any extensions or renewals hereof,
and Tenant hereby agrees to pay such Base Rent and Additional Rent
to Landlord without demand. If the Lease Term commences on a day
other than the first day of a month or terminates on a day other
than the last day of a month, then the installments of Base Rent
and Additional Rent for such month or months shall be prorated,
based on the number of days in such month. No payment by Tenant or
receipt or acceptance by Landlord of a lesser amount than the
correct installment of Rent due under this Lease shall be deemed to
be other than a payment on account of the earliest Rent due
hereunder, nor shall any endorsement or statement on any check or
any letter accompanying any check or payment be deemed an accord
and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance
or pursue any other available remedy. The acceptance by Landlord of
an installment of Rent on a date after the due date of such payment
shall not be construed to be a waiver of Landlord’s right to
declare a default for any other late payment. All amounts received
by Landlord from Tenant hereunder shall be applied first to the
earliest accrued and unpaid Rent then outstanding. Tenant’s
covenant to pay Rent shall be independent of every other covenant
set forth in this Lease.
B. To the extent allowed by law, all installments of
Rent not paid when due shall bear interest at the Default Rate from
the date immediately following the end of any applicable grace and
cure periods provided herein. In addition, if Tenant fails to pay
any installment of Base Rent and Additional Rent or any other item
of Rent by the date immediately following the end of any applicable
grace and cure periods provided herein, a “Late Charge” equal to
three percent (3%) of such unpaid amount will be due and payable
immediately by Tenant to Landlord.
C. The Additional Rent payable hereunder shall be
adjusted from time-to-time in accordance with the provisions
of Exhibit C attached hereto and incorporated herein for all
purposes.
6. Security
Deposit . The Security Deposit shall be held by Landlord without
liability for interest and as security for the performance by
Tenant of Tenant’s covenants and obligations under this Lease
including but not limited to those set forth in Section 10 hereof,
it being expressly understood that the Security Deposit shall not
be considered an advance payment of Rent or a measure of
Tenant’s liability for damages in case of default by Tenant.
Landlord shall have no fiduciary responsibilities or trust
obligations whatsoever with regard to the Security Deposit and
shall not assume the duties of a trustee for the Security Deposit.
Landlord may, from time-to-time, without prejudice to any other
remedy and without waiving such default, use the Security Deposit
to the extent necessary to cure or attempt to cure, in whole or in
part, any default of Tenant hereunder. Following any such
application of the Security Deposit, Tenant shall pay to Landlord
on demand the amount so applied in order to restore the Security
Deposit to its original amount. If Tenant is not in default at the
termination of this Lease, the balance of the Security Deposit
remaining after any such application shall be returned by Landlord
to Tenant within sixty (60) days thereafter. If Landlord transfers
its interest in the Premises during the term of this Lease,
Landlord may assign the Security Deposit to the transferee and
thereafter shall have no further liability for the return of such
Security Deposit. Tenant agrees to look solely to such transferee
or assignee or successor thereof for the return of the Security
Deposit. Landlord and its successors and assigns shall not be bound
by any actual or attempted assignment or encumbrance of the
Security Deposit by Tenant. Landlord shall not be required to keep
the Security Deposit separate from its other accounts.
7. Services to be
Furnished by Landlord .
A . Landlord agrees to
furnish Tenant the following services, all in a manner consistent
with buildings of similar class, size, age and location, or as
required by governmental authorities:
|
|
(1)
|
Water for use in the lavatories on the floor(s) on
which the Premises is located. If Tenant desires water in the
Premises for any approved reason, including a private lavatory or
kitchen, cold water shall be supplied, at Tenant’s sole cost
and expense, from the Building water main through a line and
fixtures installed at Tenant’s sole cost and expense with the
prior reasonable consent of Landlord. If Tenant desires hot water
in the Premises, Tenant, at its sole cost and expense and subject
to the prior reasonable consent of Landlord, may install a hot
water heater in the Premises. Tenant shall be solely responsible
for the maintenance and repair of any such water heater.
|
|
|
(2)
|
Central heat and air conditioning in season during
Normal Business Hours, at such temperatures and in such amounts as
are considered by Landlord, in its reasonable judgment, to be
standard for buildings of similar class, size, age and location, or
as required by governmental authority. In the event that Tenant
requires central heat, ventilation or air conditioning service at
times other than Normal Business Hours, such additional service
shall be furnished only upon the written request of Tenant
delivered to Landlord prior to 3:00 p.m. at least one Business Day
in advance of the date for which such usage is requested. Tenant
shall bear the entire actual cost of additional service as such
costs are determined by Landlord from time-to-time without profit
to Landlord, as Additional Rent upon presentation of a statement
therefor by Landlord. All additional heating, ventilating and air
conditioning required (if any) to accommodate Tenant’s design
shall be installed at the Tenant’s expense subject to
Landlord’s prior written approval. The cost of operation and
maintenance of the equipment shall be the responsibility of the
Tenant and paid to Landlord as Additional Rent.
|
|
|
(3)
|
Maintenance and repair of all Common
Areas.
|
|
|
(4)
|
Janitorial and cleaning service in and about the
Premises on Business Days; provided, however, if Tenant’s
floor covering or other improvements require special treatment,
Tenant shall pay the additional cleaning cost attributable thereto
as Additional Rent upon presentation of a statement therefor by
Landlord. Tenant shall not provide or use any other janitorial or
cleaning services without Landlord’s consent, and then only
subject to
|
the supervision of Landlord and at Tenant’s
sole cost and responsibility and by a janitor, cleaning contractor
or employees at all times satisfactory to Landlord.
|
|
(5)
|
Electricity to the Premises for general office use,
in accordance with and subject to the terms and conditions of
Section 11. of this Lease.
|
|
|
(6)
|
Fluorescent bulb replacement in the Premises
necessary to maintain building standard the lighting as established
by Landlord and fluorescent and incandescent bulb and ballast
replacement in the Common Areas and Service Areas.
|
|
|
(7)
|
Passenger elevator service in common with Landlord
and other persons during Normal Business Hours and freight elevator
service in common with the Landlord and other persons during Normal
Business Hours. Landlord, however, shall provide limited passenger
elevator service daily at all times when normal passenger elevator
service is not provided.
|
|
|
(8)
|
Access control to the Building during other than
Normal Business Hours shall be provided in such form as Landlord
deems appropriate. Tenant shall cooperate fully in Landlord’s
efforts to maintain access control to the Building and shall follow
all regulations promulgated by Landlord with respect thereto.
Notwithstanding anything herein to the contrary Tenant expressly
acknowledges and agrees that Landlord is not warranting the
efficacy of any access personnel, service, procedures or equipment
and that Tenant is not relying and shall not hereafter rely on any
such personnel service, procedures or equipment. Landlord shall not
be responsible or liable in any manner for failure of any access
personnel, services, procedures or equipment to prevent, control,
or apprehend anyone suspected of causing personal injury or damage
in, on or around the Project.
|
B. If Tenant requests
any other utilities or building services in addition to those
identified above, or any of the above utilities or building
services in frequency, scope, quality or quantities substantially
greater than the standards set by Landlord for the Building, then
Landlord shall use reasonable efforts to attempt to furnish Tenant
with such additional utilities or building services. Landlord may
impose a reasonable charge for the actual cost of such additional
utilities or building services, without profit to Landlord, which
shall be paid monthly by Tenant as Additional Rent on the same day
that the monthly installment of Base Rent is due.
C. Except as otherwise
expressly provided herein, the failure by Landlord to any extent to
furnish, or the interruption or termination of these defined
services in whole or in part, resulting from adherence to laws,
regulations and administrative orders, wear, use, repairs,
improvements alterations or any causes beyond the reasonable
control of Landlord shall not render Landlord liable in any respect
nor be construed as a constructive eviction of Tenant, nor give
rise to an abatement of Rent (except as set forth below), nor
relieve Tenant from the obligation to fulfill any covenant or
agreement hereof. Should any of the equipment or machinery used in
the provision of such services for any cause cease to function
properly, Landlord shall use reasonable diligence to repair such
equipment or machinery. Notwithstanding the foregoing, Landlord
hereby agrees that if Landlord shall fail to furnish any of the
services provided herein, or if the same shall be interrupted or
terminated for a period of seventy two (72) consecutive hours,
Tenant shall be entitled to a reasonable abatement of Rent for any
portion of the Premises which is not usable by Tenant as a result
of such lack of services.
8. Leasehold
Improvements/Tenant’s Property . All fixtures, equipment,
improvements and appurtenances attached to, or built into, the
Premises at the commencement of or during the Lease Term, whether
or not by, or at the expense of, Tenant ( “Leasehold Improvements” ), shall be and remain a part of the Premises; shall be the
property of Landlord; and shall not be removed by Tenant except as
expressly provided herein. All unattached and
moveable partitions, trade fixtures, moveable
equipment or furniture located in the Premises and acquired by or
for the account of Tenant, without expense to Landlord, which can
be removed without structural damage to the Building or Premises,
and all personalty brought into the Premises by Tenant (
“Tenant’s Property
”) shall be owned and insured by Tenant.
Landlord may, nonetheless, at any time prior to that date which is
nine (9) months prior to the expiration or earlier termination of
this Lease or Tenant’s right to possession, require Tenant to
remove any Leasehold Improvements performed by or for the benefit
of Tenant and all electronic, phone and data cabling as are
designated by Landlord (the “Required Removables ”)
at Tenant’s sole cost. In the event that Landlord so elects,
Tenant shall remove such Required Removables upon the expiration or
earlier termination of this Lease or Tenant’s right to
possession. In addition to Tenant’s obligation to remove the
Required Removables, Tenant shall repair any damage caused by such
removal and perform such other work as is reasonably necessary to
restore the Premises to a “move in” condition. If
Tenant fails to remove any specified Required Removables or to
perform any required repairs and restoration within the time period
specified above, Landlord, at Tenant’s sole cost and expense,
may remove the Required Removables (and repair any damage
occasioned thereby) and dispose thereof or deliver the Required
Removables to any other place of business of Tenant, or warehouse
the same, and Tenant shall pay the cost of such removal, repair,
delivery, or warehousing of the Required Removables within five (5)
days after demand from Landlord.
9. Signage .
Landlord shall provide and install, at
Landlord’s cost, all letters or numerals on the exterior of
the Premises; all such letters and numerals shall be in the
standard graphics for the Building and no others shall be used or
permitted on the Premises without Landlord’s prior written
consent. In addition, Landlord will list Tenant’s name in the
Building’s directory, if any, located in the lobby of the
Building.
10. Repairs and
Alterations by Tenant .
A. Except to the extent such obligations are imposed
upon Landlord hereunder, Tenant shall, at its sole cost and
expense, maintain the Premises in good order, condition and repair
throughout the entire Lease Term, ordinary wear and tear excepted.
Tenant agrees to keep the areas visible from outside the Premises
in a neat, clean and attractive condition at all times. Tenant
shall be responsible for all repairs replacements and alterations
in and to the Premises, Building and Property and the facilities
and systems thereof, the need for which arises out of (1)
Tenant’s use or occupancy of the Premises, (2) the
installation, removal, use or operation of Tenant’s Property
(as defined in Section 8. above), (3) the moving of Tenant’s
Property into or out of the Building, or (4) subject to the waiver
of subrogation provided in Section 15.E. hereof, the act, omission,
misuse or negligence of Tenant, its agents, contractors, employees
or invitees. All such repairs, replacements or alterations shall be
performed in accordance with Section 10.B. below and the rules,
policies and procedures reasonably enacted by Landlord from time to
time for the performance of work in the Building. If Tenant fails
to maintain the Premises in good order, condition and repair,
Landlord shall give Tenant notice to perform such acts as are
reasonably required to so maintain the Premises. If Tenant fails to
promptly commence such work in thirty (30) days and diligently
pursue it to its completion, then Landlord may, at is option, make
such repairs, and Tenant shall pay the cost thereof to Landlord on
demand as Additional Rent, together with an administration charge
in an amount equal to five percent (5%) of the cost of such
repairs. Landlord shall, at its expense (except as included in
Basic Costs) keep and maintain in good repair and working order and
make all repairs to and perform necessary maintenance upon: (a) all
structural elements of the Building; and (b) all mechanical,
electrical and plumbing systems that serve the Building in general;
and (c) the Building facilities common to all tenants including but
not limited to, the ceilings, walls and floors in the Common
Areas.
B. Tenant shall not make or allow to be made any
material, structural or non-cosmetic alterations, additions or
improvements to the Premises, without first obtaining the written
consent of Landlord in each such instance, which consent may be
refused or given on such conditions as Landlord may elect. Prior to
commencing any such work and as a condition to obtaining
Landlord’s consent, Tenant must furnish Landlord with plans
and specifications acceptable to Landlord; names and addresses of
contractors reasonably acceptable to Landlord; copies of contracts;
necessary permits and approvals; evidence of contractor’s and
subcontractor’s insurance in accordance with Section 15.
hereof; and a payment bond or other security, all in form and
amount satisfactory to Landlord. Tenant shall be
responsible for insuring that all such persons
procure and maintain insurance coverage against such risks, in such
amounts and with such companies as Landlord may require, including,
but not limited to, Builder’s Risk and Worker’s
Compensation insurance. All such improvements, alterations or
additions shall be constructed in a good and workmanlike manner
using Building Standard materials or other materials of equal or
greater quantity. Landlord, to the extent reasonably necessary to
avoid any disruption to the tenants and occupants of the Building,
shall have the right to reasonably designate the time when any such
alterations, additions and improvements may be performed and to
otherwise designate reasonable rules, regulations and procedures
for the performance of work in the Building. Upon completion,
Tenant shall furnish “as-built” plans,
contractor’s affidavits and full and final waivers of lien
and receipted bills covering all labor and materials. All
improvements, alterations and additions shall comply with the
insurance requirements, codes, ordinances, laws and regulations,
including without limitation, the Americans with Disabilities Act.
Tenant shall reimburse Landlord upon demand for all sums, up to
$5,000.00, if any, expended by Landlord for third party examination
of the architectural, mechanical, electrical and plumbing plans for
any alterations, additions or improvements. In addition, if
Landlord so requests, Landlord shall be entitled to oversee the
construction of any alterations, additions or improvements that may
affect the structure of the Building or any of the mechanical,
electrical, plumbing or life safety systems of the Building. In the
event Landlord elects to oversee such work, Landlord shall be
entitled to receive a fee for such oversight in an amount equal to
five percent (5%) of the cost of such alterations, additions or
improvements. Landlord’s approval of Tenant’s plans and
specifications for any work performed for or on behalf of Tenant
shall not be deemed to be representation by Landlord that such
plans and specifications comply with applicable insurance
requirements, building codes, ordinances, laws or regulations or
that the alterations, additions and improvements constructed in
accordance with such plans and specifications will be adequate for
Tenant’s use.
11. Use of
Electrical Services by Tenant .
A. All electricity used by Tenant in the Premises
shall be paid for by Tenant through inclusion in Base Rent and
Basic Costs (except as provided in Section 11.B. below with respect
to excess usage). Landlord shall have the right at any time and
from time-to-time during the Lease Term to contract for electricity
service from such providers of such services as Landlord shall
elect (each being an “Electric
Service Provider ”). Tenant shall
cooperate with Landlord, and the applicable Electric Service
Provider, at all times and, as reasonably necessary, shall allow
Landlord and such Electric Service Provider reasonable access to
the Building’s electric lines, feeders, risers, wiring, and
any other machinery within the Premises. Landlord shall in no way
be liable or responsible for any loss, damage, or expense that
Tenant may sustain or incur by reason of any change, failure,
interference, disruption, or defect in the supply or character of
the electric energy furnished to the Premises, or if the quantity
or character of the electric energy supplied by the Electric
Service Provider is no longer available or suitable for
Tenant’s requirements, and no such change, failure, defect,
unavailability, or unsuitability shall constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to
any abatement (except as set forth in Section 7.C hereof) or
diminution of rent, or relieve Tenant from any of its obligations
under the Lease.
B. Tenant’s use of electrical services
furnished by Landlord shall not exceed in voltage, rated capacity,
or overall load that which is standard for the Building. In the
event Tenant shall request that it be allowed to consume electrical
services in excess of Building Standard, Landlord may refuse to
consent to such usage or may consent upon such conditions as
Landlord reasonably elects (including the installation of utility
service upgrades, submeters, air handlers or cooling units), and
all such additional usage (to the extent permitted by law),
installation and maintenance thereof shall be paid for by Tenant as
Additional Rent. Landlord, at any time during the Lease Term, shall
have the right to separately meter electrical usage for the
Premises or to measure electrical usage by survey or any other
method that Landlord, in its reasonable judgment, deems
appropriate.
12. Entry by
Landlord . Tenant shall permit Landlord or its agents or representatives
to enter into and upon any part of the Premises to inspect the
same, or to show the Premises to prospective purchasers,
mortgagees, tenants (during the last nine (9) months of the Lease
Term or earlier in connection with a
potential relocation) or insurers, or to clean or
make repairs, alterations, or additions thereto, including any work
that Landlord deems necessary for the safety, protection or
preservation of the Building or any occupants thereof, or to
facilitate repairs, alterations or additions to the Building or any
other tenant’s premises. Except for any entry by Landlord in
an emergency situation or to provide normal cleaning and janitorial
service, Landlord shall enter the Premises at reasonable times and
provide Tenant with reasonable prior notice of any entry into the
Premises, which notice may be given verbally. Landlord shall have
the right to temporarily close the Premises or the Building to
perform repairs, alterations or additions in the Premises or the
Building, provided that Landlord shall use reasonable efforts to
perform all such work on weekends and after Normal Business Hours.
Entry by Landlord hereunder shall not constitute a constructive
eviction or entitle Tenant to any abatement or reduction of Rent by
reason thereof.
13. Assignment
and Subletting
A. Except in connection with a Permitted Transfer
(defined in Section 13.E. below), Tenant shall not assign,
sublease, transfer or encumber any interest in this Lease or allow
any third party to use any portion of the Premises (collectively or
individually, a “ Transfe
r”) without the prior written consent of
Landlord, which consent shall not be unreasonably withheld. Without
limitation, it is agreed that Landlord’s consent shall not be
considered unreasonably withheld if: (1) the proposed
transferee’s financial condition does not meet the criteria
Landlord uses to select Building tenants having similar leasehold
obligations; (2) the proposed transferee’s business is not
suitable for the Building considering the business of the other
tenants and the Building’s prestige, or would result in a
violation of another tenant’s rights; (3) the proposed
transferee is a governmental agency; (4) Tenant is in default
beyond any applicable notice and cure period; or (5) any portion of
the Building or the Premises would likely become subject to
additional or different laws as a consequence of the proposed
Transfer. Any attempted Transfer in violation of this Section 13,
shall, exercisable in Landlord’s sole and absolute
discretion, be voidable. Consent by Landlord to one or more
Transfer(s) shall not operate as a waiver of Landlord’s
rights to approve any subsequent Transfer(s). In no event shall any Transfer or Permitted Transfer release or
relieve Tenant from any obligation under this Lease or any
liability hereunder, unless Landlord’s consent to such
Transfer expressly provides for a release of Tenant.
B. If Tenant requests Landlord’s consent to a
Transfer, Tenant shall submit to Landlord financial statements for
the proposed transferee, a complete copy of the proposed
assignment, sublease and other information as Landlord may
reasonably request. Landlord shall within ten (10) days after
Landlord’s receipt of the required information and
documentation either consent or reasonably refuse consent to the
Transfer in writing, along with an explanation for any such
refusal. If Landlord shall fail to notify Tenant in writing of its
decision within such ten (10) days period after the later of the
date Landlord is notified in writing of the proposed Transfer or
the date Landlord has received all required information concerning
the proposed transferee and the proposed Transfer, Landlord shall
be deemed to have consented to such Transfer. Tenant shall pay
Landlord a review fee of $1,000.00 for Landlord’s review of
any Permitted Transfer or requested Transfer.
C. Tenant shall pay to Landlord fifty percent (50%)
of all cash and other consideration (after Tenant’s payment
of the costs of such Transfer, including leasing commissions,
reasonable attorney’s fees and any incentives offered to the
transferee) which Tenant receives as a result of a Transfer that is
in excess of the rent payable to Landlord hereunder for the portion
of the Premises and Term covered by the Transfer within ten (10)
days following receipt thereof by Tenant. If Tenant is in Monetary
Default (defined in Section 22. below), Landlord may require that
all sublease payments be made directly to Landlord, in which case
Tenant shall receive a credit against rent in the amount of any
payments received (less Landlord’s share of any
excess).
D. Except as provided below with respect to a
Permitted Transfer, if Tenant is a corporation, limited liability
company, partnership or similar entity, and the entity which owns
or controls a majority of the voting shares/rights at the time
changes for any reason (including but not limited to a merger,
consolidation or reorganization), such change of ownership or
control shall constitute a Transfer. The foregoing shall not apply
so long as Tenant is an entity whose outstanding stock is listed on
a
nationally recognized security exchange, or if at
least eighty percent (80%) of its voting stock is owned by another
entity, the voting stock of which is so listed.
E. Tenant may assign its entire interest under this
Lease or sublet the Premises to any entity controlling or
controlled by or under common control with Tenant or to any
successor to Tenant by purchase, merger, consolidation or
reorganization (hereinafter, collectively, referred to as
“Permitted Transfer ”) without the consent
of Landlord, provided: (1) Tenant is not in default under this
Lease; (2) if such proposed transferee is a successor to Tenant by
purchase, said proposed transferee shall acquire all or
substantially all of the stock or assets of Tenant’s business
or, if such proposed transferee shall acquire all or substantially
all of the stock or assets of Tenant’s business or, if such
proposed transferee is a successor to Tenant by merger,
consolidation or reorganization, the continuing or surviving
corporation shall own all or substantially all of the assets of
Tenant; (3) such proposed transferee shall have a net worth which
is at least equal to the greater of Tenant’s net worth at the
date of this Lease as evidenced to Landlord’s reasonable
satisfaction; (4) such proposed transferee operates the business in
the Premises for the Permitted Use and no other purpose; and (5)
Tenant shall give Landlord written notice at least fifteen (15)
days prior to the effective date of the proposed purchase, merger,
consolidation or reorganization.
F. Tenant agrees that in the event Landlord
withholds its consent to any Transfer contrary to the provisions of
this Section 13, Tenant’s sole remedy shall be to seek an
injunction in equity or compel performance by Landlord to give its
consent and Tenant expressly waives any right to damages in the
event of such withholding by Landlord of its consent.
14. Mechanic’s Liens. Tenant
will not permit any mechanic’s liens or other liens to be
placed upon the Premises, the Building, or the Property and nothing
in this Lease shall be deemed or construed in any way as
constituting the consent or request of Landlord, express or
implied, by inference or otherwise, to any person for the
performance of any labor or the furnishing of any materials to the
Premises, the Building, or the Property or any part thereof, nor as
giving Tenant any right, power, or authority to contract for or
permit the rendering of any services or the furnishing of any
materials that would give rise to any mechanic’s or other
liens against the Premises, the Building, or the Property. In the
event any such lien is attached to the Premises, the Building, or
the Property, then, in addition to any other right or remedy of
Landlord, Landlord may, but shall not be obligated to, discharge
the same. Any amount paid by Landlord for any of the aforesaid
purposes including, but not limited to, reasonable attorneys’
fees, shall be paid by Tenant to Landlord promptly on demand as
Additional Rent. Tenant shall within thirty (30) days of receiving
such notice of lien or claim (a) have such lien or claim released
or (b) deliver to Landlord or a court a bond in form, content,
amount and issued by surety, reasonably satisfactory to Landlord.
Tenant’s failure to comply with the provisions of the
foregoing sentence shall be deemed an Event of Default under
Section 22. hereof entitling Landlord to exercise all of its
remedies therefor without the requirement of any additional notice
or cure period.
15. Insurance .
A. Landlord shall maintain such insurance on the
Building and the Premises (other than on Tenant’s Property or
on any additional improvements constructed in the Premises by
Tenant), and such liability insurance in such amounts as Landlord
elects. The cost of such insurance shall be included as a part of
the Basic Costs, and payments for losses thereunder shall be made
solely to Landlord or the mortgagees of Landlord as their interests
shall appear.
B. Tenant shall maintain at its expense, (1) in an
amount equal to full replacement cost, special form (formerly known
as all risk) property insurance on all of its personal property,
including removable trade fixtures and leasehold and tenant
improvements, and Tenant’s Property located in the Premises
and in such additional amounts as are required to meet
Tenant’s obligations pursuant to Section 18 hereof and with
deductibles in an amount reasonably satisfactory to Landlord,
and (ii) a policy or policies of commercial general
liability insurance (including endorsement or separate policy for
owned or non-owned automobile liability) with respect to its
activities in the Building and on the Property, with the premiums
thereon fully paid on or before the due date, in an amount of not
less
than $2,000,000 per occurrence per person coverage
for bodily injury, property damage, personal injury or combination
thereof (the term “personal injury” as used herein
means, without limitation, false arrest, detention or imprisonment,
malicious prosecution, wrongful entry, liable and slander),
provided that if only single limit coverage is available it shall
be for at least $2,000,000 per occurrence with an umbrella policy
of at least $5,000,000 combined single limit per occurrence.
Tenant’s insurance policies shall name Landlord and Building
Manager as additional insureds and shall include coverage for the
contractual liability of Tenant to indemnify Landlord and Building
Manager pursuant to Section 16 of this Lease and shall have
deductibles in an amount reasonably satisfactory to Landlord. Prior
to Tenant’s taking possession of the Premises, Tenant shall
furnish evidence satisfactory to Landlord of the maintenance and
timely renewal of such insurance, and Tenant shall obtain and
deliver to Landlord a written obligation on the part of each
insurer to notify Landlord prior to the modification, cancellation
or expiration of such insurance policies. In the event Tenant shall
not have delivered to Landlord a policy or certificate evidencing
such insurance prior to the expiration date of each expiring
policy, Landlord may obtain such insurance as Landlord may
reasonably require to protect Landlord’s interest (which
obtaining of insurance shall not be deemed to be a waiver of
Tenant’s default hereunder). The cost to Landlord of
obtaining such policies, plus an administrative fee in the amount
of fifteen percent (15%) of the cost of such policies shall be paid
by Tenant to Landlord as Additional Rent upon demand.
C. The insurance requirements set forth in this
Section 15 are independent of the waiver, indemnification, and
other obligations under this Lease and will not be construed or
interpreted in any way to restrict, limit or modify the waiver,
indemnification and other obligations or to in any way limit any
party’s liability under this Lease. In addition to the
requirements set forth in Sections 15 and 16, the insurance
required of Tenant under this Lease must be issued by an insurance
company with a rating of no less than A-VIII in the current
Best’s Insurance Guide, or A- in the current Standard &
Poor Insurance Solvency Review, or in that is otherwise acceptable
to Landlord, and admitted to engage in the business of insurance in
the state in which the Building is located; be primary insurance
for all claims under it and provide that any insurance carried by
Landlord and Landlord’s lenders is strictly excess, secondary
and noncontributing with any insurance carried by Tenant; and
provide that insurance may not be cancelled, nonrenewed or the
subject of material change in coverage of available limits of
coverage, except upon prior written notice to Landlord and
Landlord’s lenders. Tenant will deliver either a duplicate
original or a legally enforceable certificate of insurance on all
policies procured by Tenant in compliance with Tenant’s
obligations under this Lease, together with evidence satisfactory
to Landlord of the payment of the premiums therefor, to Landlord on
or before the date Tenant first occupies any portion of the
Premises, at least thirty (30) days before the expiration date of
any policy and upon the renewal of any policy. Landlord must give
its prior written approval to all deductibles and self-insured
retentions under Tenant’s policies. Tenant may comply with
its insurance coverage requirements through a blanket policy,
provided Tenant, at Tenant’s sole expense, procures a
“per location” endorsement, or equivalent reasonably
acceptable to Landlord, so that the general aggregate and other
limits apply separately and specifically to the
Premises.
D. If Tenant’s business operations, conduct or
use of the Premises or any other part of the Property causes an
increase in the premium for any insurance policy carried by
Landlord, Tenant will, within ten (10) days after receipt of notice
from Landlord, reimburse Landlord for the entire increase; in which
case, notwithstanding anything set forth in this Lease to the
contrary, such increase shall not be deemed to be a default
hereunder.
E. Neither Landlord nor Tenant shall be liable (by
way of subrogation or otherwise) to the other party (or to any
insurance company insuring the other party) for any personal injury
or loss or damage to any of the property of Landlord or Tenant, as
the case may be, with respect to their respective property, the
Building, the Property or the Premises or any addition or
improvements thereto, or any contents therein, to the extent
covered by insurance carried or required to be carried by a party
hereto even though such loss might have been occasioned by the
negligence or willful acts or omissions of the Landlord or Tenant
or their respective employees, agents, contractors or invitees.
Since this mutual waiver will preclude the assignment of any such
claim by subrogation (or otherwise) to an insurance company (or any
other person), Landlord and Tenant each agree to give each
insurance
company which has issued, or on the future may
issue, policies of insurance, with respect to the items covered by
this waiver, written notice of the terms of this mutual waiver, and
to have such insurance policies properly endorsed, if necessary, to
prevent the invalidation of any of the coverage provided by such
insurance policies by reason of such mutual waiver. For the purpose
of the foregoing waiver, the amount of any deductible applicable to
any loss or damage shall be deemed covered by, and recoverable by
the insured under the insurance policy to which such deductible
relates. In the event that Tenant is permitted to and self-insures
any risk for which insurance is required to be carried under this
Lease, or if Tenant fails to carry any insurance required to be
carried by Tenant pursuant to this Lease, then all loss or damage
to Tenant, its leasehold interest, its business, its property, the
Premises or any additions or improvements thereto or contents
thereof shall be deemed covered by and recoverable by Tenant under
valid and collectible policies of insurance. Notwithstanding
anything to the contrary herein, neither party shall be liable to
the other or any insurance company (by way of subrogation or
otherwise) insuring for any loss or damage to any property, or
bodily injury or personal injury or any resulting loss of income or
losses from worker’s compensation laws and benefits, even
though such loss or damage might have been occasioned by the
negligence of such party, its agents or employees, or (in the case
of Landlord) Building Manager, if any such loss or damage was
required to be covered by insurance pursuant to this
Lease.
16. Indemnity .
To the extent not expressly prohibited by law,
neither Landlord nor Building Manager nor any of their respective
officers, directors, employees, members, managers, or agents shall
be liable to Tenant, or to Tenant’s agents, servants,
employees, customers, licensees, or invitees for any injury to
person or damage to property caused by any act, omission, or
neglect of Tenant, its agents, servants, employees, customers,
invitees, licensees or by any other person entering the Building or
upon the Property under the invitation of Tenant or arising out of
the use of the Property, Building or Premises by Tenant and the
conduct of its business or out of a default by Tenant in the
performance of its obligations hereunder. Tenant hereby indemnifies
and holds Landlord and Building Manager and their respective
officers, directors, employees, members, managers and agents
(“ Indemnitees
”), harmless from all liability and claims for
any property damage, or bodily injury or death of, or personal
injury to, a person in or on the Premises, or at any other place,
including the Property or the Building and this indemnity shall be
enforceable to the full extent whether or not such liability and
claims are the result of the sole, joint or concurrent acts,
negligent or intentional, or otherwise, of Tenant, or its
employees, agents, servants, customers, invitees or licensees.
Nothing herein shall be deemed to be a waiver or indemnification of
Landlord or the Indemnitees for or against their own acts or
omissions. Notwithstanding the terms of this Lease to the contrary,
the terms of this Section shall survive the expiration or earlier
termination of this Lease.
17. Damages from
Certain Causes .
To the extent not expressly prohibited by law,
Landlord shall not be liable to Tenant or Tenant’s employees,
contractors, agents, invitees or customers, for any injury to
person or damage to property sustained by Tenant or any such party
or any other person claiming through Tenant resulting from any
accident or occurrence in the Premises or any other portion of the
Building caused by the Premises or any other portion of the
Building becoming out of repair or by defect in or failure of
equipment, pipes, or wiring, or by broken glass, or by the backing
up of drains, or by gas, water, steam, electricity, or oil leaking,
escaping or flowing into the Premises, except to the extent caused
by Landlord’s acts or omissions, nor shall Landlord be liable
to Tenant for any loss or damage that may be occasioned by or
through the acts or omissions of other tenants of the Building or
of any other persons whomsoever, including, but not limited to
riot, strike, insurrection, war, court order, requisition, order of
any governmental body or authority, acts of God, fire or
theft.
18. Casualty
Damage . If the Premises or any part thereof shall be damaged by fire or
other casualty, Tenant shall give prompt written notice thereof to
Landlord. In case the Building shall be so damaged that substantial
alteration or reconstruction of the Building shall, in
Landlord’s sole opinion, be required (whether or not the
Premises shall have been damaged by such casualty) or in the event
there is less than two (2) years of the Lease Term remaining or in
the event Landlord’s mortgagee should require that the
insurance proceeds payable as a result of a casualty be applied to
the payment of the mortgage debt or in the event of any material
uninsured loss to the Building, Landlord may, at its option,
terminate this Lease by notifying Tenant in writing of such
termination within
ninety (90) days after the date of such casualty. If
Landlord does not thus elect to terminate this Lease, Landlord
shall commence and proceed with reasonable diligence to restore the
Building, and the improvements located within the Premises, if any,
for which Landlord had financial responsibility pursuant to the
Work Letter Agreement attached hereto as Exhibit D (except that Landlord shall
not be responsible for delays not within the control of Landlord)
to substantially the same condition in which it was immediately
prior to the happening of the casualty. Notwithstanding the
foregoing, Landlord’s obligation to restore the Building, and
the improvements located within the Premises, if any, for which
Landlord had financial responsibility pursuant to the Work Letter
Agreement, shall not require Landlord to expend for such repair and
restoration work more than the insurance proceeds actually received
by the Landlord as a result of the casualty and Landlord’s
obligation to restore shall be further limited so that Landlord
shall not be required to expend for the repair and restoration of
the improvements located within the Premises, if any, for which
Landlord had financial responsibility pursuant to the Work Letter
Agreement, more than the dollar amount of the Allowance, if any,
described in the Work Letter Agree
|