CHASE TOWER ASSOCIATES,
L.L.C.
HEALTHCARE FINANCIAL PARTNERS REIT,
INC.
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DEFINITIONS
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1
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PREMISES
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2
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TERM
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3
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BASE
RENT
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3
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INCREASES IN
OPERATING EXPENSES AND REAL ESTATE TAXES
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4
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USE OF
PREMISES
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8
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ASSIGNMENT AND
SUBLETTING
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10
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MAINTENANCE AND
REPAIRS
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14
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ALTERATIONS
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15
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SIGNS
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17
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SECURITY
DEPOSIT
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18
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INSPECTION
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20
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INSURANCE
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20
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SERVICES AND
UTILITIES
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2l
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LIABILITY OF
LANDLORD
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23
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RULES
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24
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DAMAGE OR
DESTRUCTION
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24
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CONDEMNATION
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25
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DEFAULT
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25
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BANKRUPTCY
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28
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SUBORDINATION
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29
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HOLDING
OVER
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31
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COVENANTS OF
LANDLORD
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3l
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PARKING
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32
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ESTOPPELS
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34
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GENERAL
PROVISIONS
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34
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ERISA
MATTERS
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37
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EXHIBIT A
— Plan Showing Premises
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EXHIBIT B
— Office Shell Definition
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EXHIBIT
C— Rules
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EXHIBIT D
— Certificate Affirming Lease Commencement Date
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EXHIBIT E
— Existing 10% Plans Referenced in
Article XXVII
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EXHIBIT F
— Base Rent Schedule
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EXHIBIT G
— Cleaning Specifications
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EXHIBIT H
— Form of Subordination, Nondisturbance and Attornment
Agreement
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EXHIBIT I
— Form of Estoppel Certificate
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THIS OFFICE LEASE
AGREEMENT (this “Lease” ) is dated as of the 7th
day of December, 2001, by and between CHASE TOWER ASSOCIATES,
L.L.C., a Delaware limited liability company (
“Landlord” ), and HEALTHCARE FINANCIAL PARTNERS
REIT,INC., a Maryland corporation ( “Tenant”
).
1.1 Building: a
twelve (12) story building containing approximately two
hundred eighteen thousand eight hundred ninety-seven (218,897)
square feet of office rentable area and two hundred twenty-eight
thousand five hundred (228,500) square feet of total rentable area
as of the date hereof and located at 4445 Willard Avenue, Chevy
Chase, Maryland.
1.2 Premises:
approximately ten thousand six hundred eight (10,608) square feet
of rentable area located on the eleventh (11th) floor of the
Building and known as Suite 1100, as more particularly
designated on Exhibit A.
1.3 Lease Term:
one hundred twenty (120) months.
1.4 Anticipated
Possession Delivery Date: two (2) business days following the
date of Landlord’s execution of this Lease.
1.5 Base Rent:
Four Hundred Nineteen Thousand Sixteen Dollars ($419,016.00) for
the first Lease Year, divided into twelve (12) equal monthly
installments of Thirty-Four Thousand Nine Hundred Eighteen Dollars
($ 34,918.00) for the first Lease Year.
1.6 Base Rent
Annual Escalation Percentage: Three percent (3%), except with
respect to Lease Year 6, at which time the then Base Rent shall be
increased by an amount equal to the product of (i) Two Dollars
($2.00) multiplied by (ii) the rentable square footage of the
Premises, that is, Twenty-One Thousand Two Hundred Sixteen Dollars
($21,216.00), which $21,216.00 is hereinafter referred to as the
“Sixth Lease Year Escalation Amount,” as shown
on Exhibit F hereto.
1.7 Operating
Charges Base Year: Calendar year 2002.
1.8 Real Estate
Taxes Base Year: Calendar year 2002.
1.9 Security
Deposit Amount: One Hundred Four Thousand Seven Hundred Fifty-Four
Dollars ($104,754.00).
1.10 Brokers:
Insignia/ESG, Inc. and The Meyer Group, LTD.
1.11 Tenant Notice
Address: 1133 Connecticut Avenue, N.W., Suite 620, Washington,
D.C. 20036 until Tenant has commenced beneficial use of the
Premises, and at the Premises, after Tenant has commenced
beneficial use of the Premises.
1.l2 Landlord
Notice Address: Chase Tower Associates, L.L.C., c/o The JBG
Companies, 5301 Wisconsin Avenue, N.W., Suite 300, Washington,
D.C. 20015, Attention: Ms. Sharon Oliver, with a copy to:
Greenstein DeLorme & Luchs, P.C., 1620 L Street, N.W.,
Suite 900, Washington, D.C. 20036, Attention: Abraham J.
Greenstein, Esq.
1
1.13 Landlord
Payment Address: Chase Tower Associates, L.L.C. and delivered to
JBG/Commercial Management, L.L.C. at 5301 Wisconsin Avenue, N.W.,
Suite 300, Washington, D.C. 20015 or such other address as
Landlord may advise Tenant.
1.14 Building
Hours: 7:00 a.m. to 7:00 p.m. on Monday through Friday (excluding
legal holidays) and 9:00 a.m. to 1:00 p.m. on Saturday (excluding
legal holidays), and such other hours, if any, as Landlord from
time to time determines. As of the date of this Lease, the legal
holidays observed by Landlord are the dates on which the federal
government observes New Year’s Day, Martin Luther King Day,
Washington’s Birthday (President’s Day), Memorial Day,
Independence Day, Labor Day, Columbus Day, Veteran’s Day,
Thanksgiving Day and Christmas Day; provided, however, that
Landlord retains the right, in its sole discretion, to increase or
to decrease the legal holidays which it observes; provided,
however, that in the event that at any time the lease of any other
office tenant in the Building excludes any of the foregoing
holidays as a legal holiday, such holiday shall also be excluded as
a legal holiday from this Section 1.14 during the period that it is
excluded as a legal holiday from such other tenant’s
lease.
1.15 Guarantor(s):
Intentionally omitted..
1.16 Complex: that
certain complex of which the Building, the Land, a retail building
comprising approximately twenty-two thousand (22,000) rentable
square feet and the land upon which it is constructed are a part]
known as Chase Tower, and including all easements, rights, and
appurtenances thereto (including private streets, storm detention
facilities, and any other service facilities).
1.17 Parking
Permits: Nineteen (19).
2.1 Landlord
leases the Premises to Tenant and Tenant leases the Premises from
Landlord for the term and upon the conditions and covenants set
forth in this Lease. Tenant will have the non-exclusive right to
use (a) the common and public areas of the Building and
(b) subject to such requirements (other than the payment of
any fee therefor) and limitations as Landlord, in its sole and
absolute discretion, may impose, the telephone room located on the
ninth (9th) floor of the Building. Except as may otherwise be
expressly provided in this Lease, the lease of the Premises does
not include the right to use the roof, mechanical rooms, electrical
closets, janitorial closets, parking areas or other non-common or
non-public areas of the Building.
2.2 The rentable
area in the Building and in the Premises shall be determined by
Landlord’s architect in accordance with the Building Owners
and Managers Association International Standard Method for
Measuring Floor Area in Office Buildings, ANSI/BOMA Z65.1-1996.
Landlord shall have the option, exercisable by written notice to
Tenant at any time during the first one hundred eighty
(180) days of the Term, to have the rentable floor area of the
Premises remeasured by Landlord’s architect in the manner
described above or any successor thereto irrespective of whether
any option to expand or contract the Premises is exercised by
Tenant. Upon such remeasurement by the Landlord’s architect,
Landlord may, at its option, give Tenant written notice of the
rentable floor area so determined, in which event the rentable area
as thus remeasured shall be deemed to be the rentable floor area of
the Premises for all purposes of this Lease, all Rent theretofore
paid by Tenant to Landlord during the Term shall be retroactively
adjusted, and any deficiency shall be paid by Tenant to Landlord
within thirty (30) days after Landlord’s notice to
Tenant setting forth the rentable floor area of the
Premises.
2
3.1 All of the
provisions of this Lease shall be in full force and effect from and
after the date first above written. The Lease Term shall commence
on the Lease Commencement Date specified in Section 3.2. If
the Lease Commencement Date is not the first day of a month, then
the Lease Term shall be the period set forth in Section 1.3 plus
the partial month in which the Lease Commencement Date occurs. The
Lease Term shall also include any properly exercised renewal or
extension of the term of this Lease which is specifically provided
for in this Lease.
3.2 The
“Lease Commencement Date” shall be
February 1, 2002; provided, however, that if Tenant commences
its business operations in the Premises on a date which is earlier
than February 1, 2002, then the Lease Commencement Date shall
be such date as Tenant commences its business operations in the
Premises. Promptly after the Lease Commencement Date is
ascertained, Landlord and Tenant shall execute the certificate
confirming the Lease Commencement Date attached to this Lease as
Exhibit D .
The base building
shall be constructed by Landlord substantially in accordance with
the description attached hereto as Exhibit E and made a
part hereof.
3.3 It is
presently anticipated that the Premises will be delivered to Tenant
on or about the Anticipated Possession Delivery Date; provided,
however, that if Landlord does not deliver possession of the
Premises by such date, Landlord shall not have any liability
whatsoever, and this Lease shall not be rendered void or voidable,
as a result thereof. In the event that Landlord does not deliver
the Premises to Tenant by the ninety-second (92nd) day following
the date of Landlord’s execution of this Lease the (
“Outside Delivery Date” ), and the reason
therefor is other than the occurrence of one or more circumstances
described in Section 26. 18 hereof, then Tenant shall have the
right to terminate this Lease by written notice to Landlord, which
written notice shall be given by Tenant, if at all, within five
(5) days following the Outside Delivery Date, following which
termination neither Landlord nor Tenant shall have any further
liability or obligations to the other under this Lease.
3.4
“Lease Year” shall mean a period of twelve
(12) consecutive months commencing on the Lease Commencement
Date, and each successive twelve (12) month period thereafter;
provided, however, that if the Lease Commencement Date is not the
first day of a month, then the second Lease Year shall commence on
the first day of the month in which the first anniversary of the
Lease Commencement Date occurs.
4.1 From and after
the Lease Commencement Date, Tenant shall pay the Base Rent in
equal monthly installments in advance on the first day of each
month during a Lease Year. On the first day of the second and each
succeeding Lease Year, the Base Rent in effect shall be increased
by an amount equal to the product of (a) the Base Rent Annual
Escalation Percentage, multiplied by (b) the Base Rent in
effect immediately before the increase, calculated on a per square
foot basis and without regard to any rental abatement, allowance or
other concession granted by Landlord during such Lease Year, which
Base Rent per square foot shall be as set forth on
Exhibit F attached hereto; provided, however, that on
the first day of the sixth (6th) Lease Year, the Base Rent in
effect shall be increased by the Sixth Lease Year Escalation Amount
(in lieu of being increased by the Base Rent Escalation
Percentage), as set forth on Exhibit F attached
hereto.
3
4.2 Concurrently
with Tenant’s execution of this Lease, Tenant shall pay an
amount equal to one (l) monthly installment of the Base Rent
payable during the first Lease Year, which amount shall be credited
toward the monthly installment of the Base Rent payable for the
first full calendar month of the Lease Term. If the Lease
Commencement Date is not the first day of a month, then the Base
Rent from the Lease Commencement Date until the first day of the
following month shall be prorated on a per diem basis at the rate
of one-thirtieth (1/30th) of the monthly installment of the Base
Rent payable during the first Lease Year, and Tenant shall pay such
prorated installment of the Base Rent on the Lease Commencement
Date.
4.3 All sums
payable by Tenant under this Lease, whether or not stated to be
Base Rent, additional rent or otherwise, shall be paid to Landlord
in legal tender of the United States, without setoff, deduction
(except as specifically provided herein) or demand, at the Landlord
Payment Address, or to such other party or such other address as
Landlord may designate in writing. Landlord’s acceptance of
rent after it shall have become due and payable shall not excuse a
delay upon any subsequent occasion or constitute a waiver of any of
Landlord’s rights hereunder. Except as otherwise provided in
this Lease, any additional rent or other sum owed by Tenant to
Landlord (other than Base Rent), and any cost, expense, damage or
liability incurred by Landlord for which Tenant is liable, shall be
considered additional rent payable pursuant to this Lease to be
paid by Tenant no later than ten (10) days after the date
Landlord notifies Tenant of the amount thereof. If, on at least two
(2) occasions during any calendar year, any sum payable by
Tenant under this Lease is paid by check which is returned due to
insufficient funds, stop payment order, or otherwise, then:
(a) such event shall be treated as a failure to pay such sum
when due; and (b) in addition to all other rights and remedies
of Landlord hereunder, Landlord shall be entitled (i) to
impose, as additional rent, a returned check charge of Fifty
Dollars ($50.00) to cover Landlord’s administrative expenses
and overhead for processing, and (ii) to require that all
future payments be remitted by wire transfer, money order, or
cashier’s or certified check for the twelve (12) months
following the month in which the check is returned to
Landlord.
4.4 Landlord and
Tenant agree that no rental or other payment for the use or
occupancy of the Premises is or shall be based in whole or in part
on the net income or profits derived by any person or entity from
the Building or the Premises. Tenant further agrees that it will
not enter into any sublease, license, concession or other agreement
for any use or occupancy of the Premises which provides for a
rental or other payment for such use or occupancy based in whole or
in part on the net income or profits derived by any person or
entity from the Premises so leased, used or occupied. Nothing in
the foregoing sentence, however, shall be construed as permitting
or constituting Landlord’s approval of any sublease, license,
concession, or other use or occupancy agreement not otherwise
approved by Landlord in accordance with the provisions of
Article VII.
ARTICLE V
INCREASES IN OPERATING EXPENSES AND REAL ESTATE
TAXES
5.1 For the
purposes of this Article V, the term
“Building” shall be deemed to include the site
upon which the Building is constructed and all associated easements
(which site is sometimes referred to herein as the
“Land” ). Landlord shall prorate the common
expenses and costs for insurance premiums and with respect to the
garage serving the Complex, as well as Real Estate Taxes for the
Complex if not separately assessed against the Building and the
Land with respect to each such building or parcel of land in the
Complex in such manner as Landlord, in its sole but not arbitrary
judgment, shall determine.
5.2 Commencing on
the first anniversary of the Lease Commencement Date, Tenant shall
pay as additional rent Tenant’s proportionate share of the
amount by which Operating Expenses [as defined in Section 5.2(a)
hereof] for each calendar year falling entirely or partly within
the Lease Term exceed a base amount (the “Operating
Charges Base Amount” ) equal to the Operating Expenses
incurred during the Operating Charges Base Year. Tenant’s
proportionate share with respect to Operating Expenses shall be
that percentage which is equal to a fraction, the numerator of
which is the number of square feet of rentable area in the
Premises, and the denominator
4
of which is the
number of square feet of office rentable area from time to time in
the Building (excluding storage, roof and garage space).
(a)
“Operating Expenses” shall mean the sum of all
expenses actually incurred by Landlord in the ownership, operation,
management, maintenance, repair and cleaning of the Building,
including, but not limited to, the following: (l) electricity,
gas, water, HVAC, sewer, telephone services and other utility
charges of every type and nature; (2) premiums and other
charges for insurance and deductibles under such insurance policies
with respect to repairs and replacements which would otherwise
qualify as Operating Expenses under this Section 5.2(a);
(3) management fees and personnel costs of the Building;
(4) costs of service and maintenance contracts; (5) charges
for janitorial, trash removal and cleaning services and supplies
furnished to the Building; (6) any business, professional and
occupational license tax or fee payable by Landlord with respect to
the Building; (7) reasonable reserves for replacements,
repairs and contingencies, the expenses of which would be
includable in Operating Expenses pursuant to this
Section 5.2.(a); (8) costs of snow removal;
(9) costs incurred by Landlord during the Lease Term for the
acquisition and./or replacement of telecommunications systems,
energy management systems, life safety systems, equipment, systems
or machinery intended to reduce Operating Expenses or the rate of
Operating Expenses from what it otherwise would have been in the
absence of such acquisition or replacement, or to comply with
insurance requirements or the requirements of any Laws (as
hereinafter defined in Section 6.1), or any other improvements
or replacements made in order to promote the efficient operation of
the Building; provided however that Landlord shall amortize such
costs over the useful life of any such expenditure (as reasonably
determined by Landlord), together with interest thereon at twelve
percent (12%) per annum; (10) that portion of expenses
incurred by Landlord in the operation of the Complex which are
allocable to the Building; and (11) any other expense actually
incurred by Landlord in owning, managing, maintaining, repairing,
operating or cleaning the Building, whether or not provided on the
Lease Commencement Date, and after excluding or deducting
therefrom, as applicable, any rebate received by Landlord of
amounts which would otherwise be (or had been) included in
Operating Expenses. Operating Expenses shall not include: (i)
principal or interest payments on any Mortgages (as defined in
Section 2l .1); (ii) leasing commissions or legal fees
with respect to the negotiation of leases; (iii) capital
expenditures, except as specified above; (iv) the costs of
special services and utilities separately paid by particular
tenants of the Building; (v) costs which are reimbursed to
Landlord by insurers or by governmental authorities in eminent
domain proceedings; (vii) advertising for vacant space in the
Building; (viii) the cost of tenant improvements;
(ix) amounts paid to any person, firm or corporation related
to or otherwise affiliated with Landlord which are in excess of
arm’s-length competitive prices paid in the Washington, D.C.
metropolitan area for the services or goods provided;
(x) costs of operation of the parking garage at the Complex
(but not of the maintenance or repair of same by Landlord, as
opposed to any parking operator), except that the costs of paving,
power sweeping and power washing shall be excluded from Operating
Expenses in all events; (xi) ground rent, except for any
portion thereof which is utilized for the payment of Real Estate
Taxes, insurance premiums or the like; (xii) sums paid by
Landlord as an indemnification of any party and damages, fines,
late charges, penalties or interest for Landlord’s violation
of laws, provided that Tenant’s act or omission has not
contributed to any such damages, fines, late charges, penalties or
interest and Tenant was then current in the payment of all Rent due
and payable under this Lease; (xiii) depreciation of the Building
or equipment therein, except as hereinabove provided with respect
to certain capital expenditures; (xiv) advertising and promotional
expenditures; (xv) amounts which have been reimbursed for any
purpose, except through a tenant’s payment of its
proportionate share of the Operating Expenses; (xvi) expenses
in connection with services or other benefits of a type or quantity
beyond the scope of this Lease which are not made available to
Tenant but which are provided to one or more other tenants or
occupants of the Building; (xvii) any and all costs arising
from the presence of Hazardous Materials (as hereinafter defined)
in or about the Premises, the Building or the Land which are
present on the date this Lease is executed; (xviii) costs
(including, in connection therewith, all attorneys’ fees and
costs of settlement judgments and payments in lieu thereof) arising
from claims, disputes or potential disputes in connection with
potential or actual claims, litigation or arbitrations pertaining
to monetary disputes with tenants or the sale, financing,
refinancing or leasing of the Building; (xix) costs associated
with the operation of the business of the partnership or entity
which constitutes Landlord, as the same are distinguished from the
costs of operation of the Building, including partnership
accounting and legal matters; (xx) costs of defending any lawsuits
with any mortgagee (except as the actions of
5
Tenant may be
in issue); (xxi) costs of selling, syndicating, financing,
mortgaging or hypothecating any of Landlord’s interest in the
Building; (xxii) costs of any disputes between Landlord and
its employees (if any) not engaged in Building operations, disputes
of Landlord with Building management, or outside fees paid in
connection with monetary disputes with other tenants; (xxiii) costs
of initial construction of the Building and the costs of preparing,
replacing or otherwise correcting defects (but not the costs of
repair for normal wear and tear) in the Construction of the
Building or any of its components; (xxiv) “Tap
Fees” or one-time lump sum sewer or water connection fees
for the Building payable in connection with the initial
construction of the Building; (xxv) rentals for any space in
the Building which is set aside for conference facilities, storage
facilities or exercise facilities; (xxvi) wages and salaries
for off-site employees (other than employees who are based off-site
but who provide some or all of their services at the Building with
respect to the operation, management, maintenance, repair and
cleaning of the Building) and employees at the Building above the
level of Property Manger; and (xxvii) all costs resulting from
the non-compliance of the Building with the ADA (as hereinafter
defined) as of the date this Lease is executed.
(b) If
the average occupancy rate for the Building during any calendar
year (including the Operating Charges Base Year) is less than one
hundred percent (100%), or if any tenant is separately paying for
(or does not require) electricity or janitorial services furnished
to its premises, then Operating Expenses for such year shall be
deemed to include all additional expenses, as reasonably estimated
by Landlord, which would have been incurred during such year if
such average occupancy rate had been one hundred percent (100%) and
if Landlord paid for electricity and janitorial services furnished
to such premises. In no event shall the provisions of this
paragraph be used to enable Landlord to collect from the tenants of
the Building more than one hundred percent (100%) of the costs and
expenses incurred by Landlord in owning, managing, maintaining,
repairing, operating and cleaning the Building and the
Land.
(c) Tenant
shall make estimated monthly payments to Landlord on account of the
amount by which Operating Expenses that are expected to be incurred
during each calendar year (or portion thereof) would exceed the
Operating Charges Base Amount. On or about the beginning of the
Lease Term and on or about the beginning of each calendar year
thereafter, Landlord may submit a statement setting forth
Landlord’s reasonable estimate of such excess and
Tenant’s proportionate share thereof. Tenant shall pay to
Landlord on the first day of each month following receipt of such
statement, until Tenant’s receipt of the succeeding annual
statement, an amount equal to one-twelfth (1/12) of each such share
(estimated on an annual basis). From time to time during any
calendar year, Landlord may revise Landlord’s estimate and
adjust Tenant’s monthly payments to reflect Landlord’s
revised estimate. Within approximately one hundred twenty (120)
days after the end of each calendar year, or as soon thereafter as
is feasible, Landlord shall submit a statement showing
(l) Tenant’s proportionate share of the amount by which
Operating Expenses incurred during the preceding calendar year
exceeded the Operating Charges Base Amount, and (2) the
aggregate amount of Tenant’s estimated payments made on
account of Operating Expenses during such year. If such statement
indicates that the aggregate amount of such estimated payments
exceeds Tenant’s actual liability, then Landlord shall credit
the net overpayment toward Tenant’s next estimated payment(s)
pursuant to this Section. If such statement indicates that
Tenant’s actual liability exceeds the aggregate amount of
such estimated payments, then Tenant shall pay the amount of such
excess as additional rent within thirty (30) days after
Tenant’s receipt of such statement.
(d) Tenant
shall have the right to review, examine and/or audit (collectively,
“audit” ), Landlord’s books, records and
accounts of, or pertaining to, increases in Operating Expenses (
“Increased Operating Expenses” ) and increased
Real Estate Taxes ( “Increased Real Estate
Taxes” ). In order to exercise such right Tenant must
notify Landlord of Tenant’s desire to do so within thirty
(30) days after Tenant’s receipt of Landlord’s
statements of actual Increased Operating Expenses and Increased
Real Estate Taxes, respectively, for the preceding year. Such audit
shall be conducted at Landlord’s office in the Washington,
D.C. metropolitan area, during normal business hours, within thirty
(30) days after Tenant’s notice. Any such audit shall be
made only by Tenant’s employees or by an auditor hired by
Tenant who is a Certified Public Accountant (
“CPA” ), and who is employed on other than a
contingent fee basis. Tenant shall notify Landlord of the results
of such audit in writing. In the event that any such audit reveals
an overstatement or understatement of Tenant’s percentage of
Increased
6
Operating
Expenses or Tenant’s percentage of Increased Real Estate
Taxes, or both, for the preceding year, and such overstatement or
understatement as revealed thereby is agreed by Landlord to be, or
is conclusively determined by a court of competent jurisdiction to
be, correct (and all periods for appeal have expired and no appeal
is pending), then Tenant shall pay to Landlord its pro rata share
of any underpayment within thirty (30) days after the date
such audit is agreed to by Landlord or is conclusively determined
by a court of competent jurisdiction to be correct (and all periods
for appeal have expired and no appeal is pending), and Tenant shall
have the right to a credit in the amount of Tenant’s
percentage of any overpayment. Such credit shall be applied against
the Rent next coming due and payable hereunder. In the event that
such audit reveals that Operating Expenses, Real Estate Taxes, or
both were overstated in the amount of five percent (5%) or more,
then Tenant shall have the right to receive from Landlord a
reimbursement of the reasonable costs and expenses incurred by
Tenant in connection with such audit of Operating Expenses or Real
Estate Taxes or both. In the event that such audit reveals that
Operating Expenses, Real Estate Taxes or both were not overstated
or were overstated in an amount less than five percent (5%), then
Landlord shall have the right to receive from Tenant a
reimbursement of costs and expenses incurred by Landlord in
connection with such audit of Operating Expenses, Real Estate Taxes
or both, including, but not limited to, compensation for that
portion, if any, of the time of Landlord’s property
management personnel which is in excess of five
(5) hours.
Tenant
hereby agrees (i) that none of Tenant’s members,
shareholders, directors, officers or partners or Office Manager,
Administrator or similarly titled personnel shall, or shall
authorize anyone else to, initiate any discussions with, or respond
to any requests for information from, any person as to the
existence, status or results of any such audit and (ii) that
Tenant shall instruct Tenant’s auditors and attorneys and
their employees to keep the results of such audit in strictest
confidence; provided, however, that Landlord hereby agrees that
nothing set forth above shall preclude Tenant from disclosing the
results of such audit (A) in any judicial or quasi-judicial
proceeding, or pursuant to court order or discovery request, or
(B) to any current or prospective assignee or sublessee of
Tenant or, (C) to any agent, representative or employee of
Landlord who or which requests the same, or (D) to any
mortgagee of the Building, the Land or both, who or which requests
the same.
5.3 Commencing on
the first anniversary of the Lease Commencement Date, for each
calendar year during the Lease Term, Tenant shall pay as additional
rent Tenant’s proportionate share of the amount by which Real
Estate Taxes [as defined in Section 5.3(a) hereof] for each
calendar year falling entirely or partly within the Lease Term
exceed a base amount (the “Real Estate Taxes Base
Amount” ) equal to the Real Estate Taxes incurred during
the Real Estate Taxes Base Year, as finally determined, which shall
mean that the Real Estate Taxes for the calendar year at issue are
subject to no further contest or appeal by Landlord or the taxing
authority. Tenant’s proportionate share with respect to Real
Estate Taxes shall be that percentage which is equal to a fraction,
the numerator of which is the number of square feet of rentable
area in the Premises, and the denominator of which is the number of
square feet of total rentable area from time to time in the
Building (excluding storage, roof and garage space).
(a)
“Real Estate Taxes” shall mean (l) all real
estate taxes, vault and/or public space rentals, business district
or arena taxes, front foot benefit charges, special user fees,
rates, and assessments (including general and special assessments,
if any), ordinary and extraordinary, foreseen and unforeseen, which
are imposed upon Landlord or assessed against the Building or the
Land or Landlord’s personal property used in connection
therewith, (2) any other present or future taxes or
governmental charges that are imposed upon Landlord or assessed
against the Building or the Land which are in the nature of or in
substitution for real estate taxes, including any tax levied on or
measured by the rents payable by tenants of the Building, all taxes
and assessments for public improvements or any other purpose and
any gross receipts or receipts or similar taxes, and
(3) expenses (including, without limitation, reasonable
attorneys’ and consultants’ fees and court costs)
incurred in reviewing, protesting or seeking a reduction of real
estate taxes, whether or not such protest or reduction is
ultimately successful. Subject to the foregoing, Real Estate Taxes
shall not include any inheritance, estate, gift, franchise,
corporation, net income or net profits tax assessed against
Landlord from the operation of the Building or any personal
property tax.
7
(b)
[Intentionally omitted.]
(c) Tenant
shall make estimated monthly payments to Landlord on account of the
amount by which Real Estate Taxes that are expected to be incurred
during each calendar year would exceed the Real Estate Taxes Base
Amount. At the beginning of the Lease Term and at the beginning of
each calendar year thereafter, Landlord may submit a statement
setting forth Landlord’s reasonable estimate of such amount
and Tenant’s proportionate share thereof. Tenant shall pay to
Landlord on the first day of each month following receipt of such
statement, until Tenant’s receipt of the succeeding annual
statement, an amount equal to one-twelfth (1/12) of such share
[estimated on an annual basis without proration pursuant to
Section 5.3(d) hereof]. From time to time during any calendar
year, Landlord may revise Landlord’s estimate and adjust
Tenant’s monthly payments to reflect Landlord’s revised
estimate. After the end of each calendar year Landlord shall submit
a statement showing (1) Tenant’s proportionate share of
the amount by which Real Estate Taxes incurred during the preceding
calendar year exceeded the Real Estate Taxes Base Amount, and
(2) the aggregate amount of Tenant’s estimated payments
made during such year, which statement shall be accompanied by a
copy of the tax bill(s) upon which the statement is based. If such
statement indicates that the aggregate amount of such estimated
payments exceeds Tenant’s actual liability, then Landlord
shall credit the net overpayment toward Tenant’s next
estimated payment(s) pursuant to this Section, or, if the Lease
Term has expired at the time of Landlord’s issuance of such
statement, then Landlord shall pay to Tenant the proportionate
share of such refund to which Tenant is entitled pursuant to this
Section 5.3 within thirty (30) days following
Landlord’s issuance of such statement. If such statement
indicates that Tenant’s actual liability exceeds the
aggregate amount of such estimated payments, then Tenant shall pay
the amount of such excess as additional rent within thirty
(30) days after Tenant’s receipt of such
statement.
(d) If
the Lease Term commences or expires on a day other than the first
day or the last day of a calendar year, respectively, then
Tenant’s liabilities pursuant to this Article for such
calendar year shall be apportioned by multiplying the respective
amount of Tenant’s proportionate share thereof for the full
calendar year by a fraction, the numerator of which is the number
of days during such calendar year falling within the Lease Term,
and the denominator of which is three hundred sixty-five
(365).
ARTICLE VI
USE OF PREMISES
6.1 Tenant shall
use and occupy the Premises solely for general (non-medical and
non-governmental) office purposes for a business and in a manner
that is consistent with the first-class image of the Building and
which is in compliance with the requirements of this Article VI and
is compatible with the other uses within, and the terms of other
leases with respect to, the Building, and for no other use or
purpose. Tenant shall not use or occupy the Premises for any
unlawful purpose, or in any manner that will violate the
certificate of occupancy for the Premises or the Building or that
will constitute waste, nuisance or unreasonable annoyance to
Landlord or any other tenant or user of the Building (in each case,
in Landlord’s reasonable judgement), or in any manner that
will increase the number of parking spaces required for the
Building or its full occupancy as required by law. Tenant shall
comply with all present and future laws (including, without
limitation, the Americans with Disabilities Act (the
“ADA” ) and the regulations promulgated
thereunder, as the same may be amended from time to time),
ordinances (including without limitation, zoning ordinances and
land use requirements), regulations, orders and recommendations
(including, without limitation, those made by any public or private
agency having authority over insurance rates) (collectively,
“Laws” ) concerning the use, occupancy and
condition of the Premises and all machinery, equipment,
furnishings, fixtures and improvements therein, all of which shall
be complied with in a timely manner at Tenant’s sole expense.
Notwithstanding the foregoing, Landlord shall be responsible for
compliance of the Common Areas, Land and base building components
within the Premises (except to the extent of any Alterations made
by Tenant) with all applicable Laws, including, but not limited to,
the ADA, throughout the Lease Term. If any such Law requires an
occupancy or use permit or license for the Premises or the
operation of the business conducted therein (including a
certificate of occupancy or nonresidential use permit), then Tenant
shall obtain and keep current such
8
permit or
license at Tenant’s expense and shall promptly deliver a copy
thereof to Landlord. Use of the Premises is subject to all
covenants, conditions and restrictions of record. Tenant shall not
use any space in the Building for the sale of goods to the public
at large or for the sale at auction of goods or property of any
kind. Tenant shall not conduct any operations, sales, promotions,
advertising or special events in, on or about the Complex outside
of the Premises. Tenant shall have the right to contest any
attempted enforcement by any governmental agency of any of the Laws
against Tenant, and provided that Tenant is diligently pursing such
contest, then Tenant shall not be deemed to be in default under
this Lease with respect to any compliance with such Laws unless and
until such contest has been finally adjudicated and is not subject
to any further contest or appeal.
6.2 Tenant shall
pay before delinquency any business, rent or other taxes or fees
that are now or hereafter levied, assessed or imposed upon
Tenant’s use or occupancy of the Premises, the conduct of
Tenant’s business at the Premises, or Tenant’s
equipment, fixtures, furnishings, inventory or personal property.
If any such tax or fee is enacted or altered so that such tax or
fee is levied against Landlord or so that Landlord is responsible
for collection or payment thereof, then Tenant shall pay as
additional rent the amount of such tax or fee.
6.3 Tenant shall
not cause or permit any Hazardous Materials to be generated, used,
released, stored or disposed of in or about the Building, the Land,
or the Complex, provided that Tenant may use and store reasonable
quantities of standard cleaning materials and office supplies as
may be reasonably necessary for Tenant to conduct normal general
office use operations in the Premises provided the same are
handled, stored and disposed of in accordance with all Laws. At the
expiration or earlier termination of this Lease, Tenant shall
surrender the Premises to Landlord free of Hazardous Materials
which are brought into the Premises by Tenant or any Invitees (as
hereinafter defined) by Tenant and free of any Environmental
Default on the part of Tenant. “ Hazardous Materials
” means (a) asbestos and any asbestos containing material and
any substance that is then defined or listed in, or otherwise
classified pursuant to, any Environmental Law or any other
applicable Law as a “hazardous substance,”
“hazardous material,” “hazardous waste,”
“infectious waste,” “toxic substance,”
“toxic pollutant” or any other formulation intended
to define, list, or classify substances by reason of deleterious
properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity, reproductive toxicity, or Toxicity
Characteristic Leaching Procedure (TCLP) toxicity, (b) any
petroleum and drilling fluids, produced waters, and other wastes
associated with the exploration, development or production of crude
oil, natural gas, or geothermal resources, and (c) any petroleum
product, polychlorinated biphenyls, urea formaldehyde, radon gas,
radioactive material (including any source, special nuclear, or
by-product material), medical waste, chlorofluorocarbon, lead or
lead-based product, and any other substance whose presence could be
detrimental to the Building, the Land, or the Complex or hazardous
to health or the environment. “ Environmental Law
” means any present and future Law and any amendments
(whether common law, statute, rule, order, regulation or
otherwise), permits and other requirements or guidelines of
governmental authorities applicable to the Building or the Land and
relating to the environment and environmental conditions or to any
Hazardous Material.
(a) Notwithstanding
any termination of this Lease, Tenant shall indemnify and hold
Landlord, its employees and agents harmless from and against any
damage, injury, loss, liability, charge, demand or claim based on
or arising out of the presence or removal of, or failure to remove,
Hazardous Materials generated, used, released, stored or disposed
of by Tenant or any Invitee in or about the Building, whether
before or after Lease Commencement Date. In addition, Tenant shall
give Landlord immediate verbal and follow-up written notice of any
actual or threatened Environmental Default, which Environmental
Default Tenant shall cure in accordance with all Environmental Laws
and to the satisfaction of Landlord and only after Tenant has
obtained Landlord’s prior written consent, which shall not be
unreasonably withheld. An “ Environmental Default
” means any of the following by Tenant or any Invitee: a
violation of an Environmental Law; a release, spill or discharge of
a Hazardous Material on or from the Premises, the Land or the
Building; an environmental condition requiring responsive action;
or an emergency environmental condition. Upon any Environmental
Default, in addition to all other rights available to Landlord
under this Lease, at law or in equity, Landlord shall have the
right but not the obligation to immediately enter the Premises, to
supervise and approve any actions taken by Tenant to address the
Environmental Default, and, if Tenant fails to immediately address
same to Landlord’s satisfaction, to perform, at
9
Tenant’s
sole cost and expense, any lawful action necessary to address same.
If any lender or governmental agency shall require testing to
ascertain whether an Environmental Default is pending or
threatened, then Tenant shall pay the reasonable costs therefor as
additional rent. Promptly upon request, Tenant shall execute from
time to time affidavits, representations and similar documents
concerning Tenant’s best knowledge and belief regarding the
presence of Hazardous Materials at or in the Building, the Land or
the Premises.
(b) In
the event that Landlord receives written notice from a governmental
agency of the presence of Hazardous Materials in the Premises or in
any of the Common Areas of the Building which are utilized by
Tenant in a quantity and of a nature that violates any applicable
governmental laws or regulations and that were not introduced to
the Building by or on behalf of Tenant, Landlord shall take such
action, if any, as may be required to comply with such governmental
laws or regulations; provided, however, that Landlord shall have
the right to contest any such notice of violation, in which case
Landlord’s obligation to cure shall not arise until after the
final adjudication of the validity of the violation
notice.
6.4 Landlord at
its expense (subject to reimbursement pursuant to Article V to
the extent permitted thereby) shall take steps necessary to comply
with Title III of the ADA to the extent same applies directly to
the common areas of the Building as a whole; provided, however,
that to the extent any non-compliance is a result of the use or
occupancy of the Premises or any action or inaction of Tenant or
any Invitee (as defined in Article VIII), or if any
improvements made by Landlord to comply with the ADA benefit solely
the Premises, then such compliance shall be at Tenant’s cost.
Tenant at its sole cost and expense shall be solely responsible for
taking any and all measures which are required to comply with the
ADA concerning the Premises (including means of ingress and egress
thereto) and the business conducted therein. Any Alterations made
or constructed by Tenant for the purpose of complying with the ADA
or which otherwise require compliance with the ADA shall be done in
accordance with this Lease; provided, that Landlord’s consent
to such Alterations shall not constitute either Landlord’s
assumption, in whole or in part, of Tenant’s responsibility
for compliance with the ADA, or representation or confirmation by
Landlord that such Alterations comply with the provisions of the
ADA.
6.5 If Landlord
receives written notice from a governmental agency of the presence,
in the Premises or in any of the Common Areas of the Building, of a
condition that violates any applicable laws or governmental
regulations and that was not created or caused by or on behalf of
Tenant, Landlord shall timely take such action, if any, as may be
required to comply with such law or governmental regulations;
provided, however, that Landlord shall have the right to contest
any such notice or violation, in which case Landlord’s
obligation to cure shall not arise until after the final
adjudication of the validity of the violation notice.
ARTICLE VII
ASSIGNMENT AND SUBLETTING
7.1 Tenant shall
not assign, transfer or otherwise encumber (collectively, “
assign ”) this Lease or all or any of Tenant’s
rights hereunder or interest herein, or sublet or permit anyone to
use or occupy (collectively, “ sublet ”) the
Premises or any part thereof, without obtaining the prior written
consent of Landlord, which consent may be withheld or granted in
Landlord’s sole and absolute discretion. No assignment or
right of occupancy hereunder may be effectuated by operation of law
or otherwise without the prior written consent of Landlord.
Notwithstanding any of the foregoing to the contrary, provided that
Tenant is not in default under this Lease, and subject to
Landlord’s rights and Tenant’s obligations pursuant to
Sections 7.4 and 7.5 below, Landlord shall not unreasonably
withhold its consent to any proposed subletting of all or any
portion of the Premises. Without limiting the generality of the
immediately preceding sentence, and except as hereinafter provided
in this Section 7.1, it is specifically agreed that it shall be
reasonable for Landlord to withhold its consent if: (i) the
proposed subtenant is engaged in a business, or the Premises will
be used in a manner, that is inconsistent with the first-class
image of the Building; or (ii) Landlord is not satisfied with
the financial capacity of the proposed subtenant to pay the subrent
provided for in the proposed sublease; or (iii) the proposed
use of the Premises is not in compliance with
Article VI
10
or is not
compatible with the other uses within, and the terms of other
leases with respect to, the Building; or (iv) the initial
Tenant does not remain fully liable as a primary obligor for the
payment of all rent and other charges payable by Tenant under this
Lease and for the performance of all other obligations of Tenant
under this Lease; or (v) the proposed subtenant is a
governmental or quasi-governmental agency; or (vi) the
proposed use of the Premises shall increase the pedestrian traffic
in the Building above the level of traffic generated by normal and
customary office usage; provided, however, that if the Proposed
Sublet or Assignment Space, as hereinafter defined (when aggregated
with all other space subleased by Tenant) comprises not more than
eight thousand (8,000) square feet of rentable area of the
Premises, exclusive of any space which is then subleased to or has
then been assigned to a related entity or a successor entity) (as
each of such terms is defined in Section 7.2 hereof), it is
specifically agreed that it shall be reasonable for Landlord to
withhold its consent if and only if: (a) the proposed use of
the Premises is not in compliance with Article VI or is not
compatible with the other uses within, and the terms of other
leases with respect to, the Building, (b) the proposed
subtenant has a demonstrated unsuitability to sublease the proposed
subleased premises and to occupy space in the Building, and
(c) Tenant is not then in default in the performance of any of
its obligations under this Lease, and for no other reason. Any
attempted assignment, transfer or other encumbrance of this Lease
or all or any of Tenant’s rights hereunder or interest
herein, and any sublet or permission to use or occupy the Premises
or any part thereof not in accordance with this Article VII shall
be void and of no force or effect. Any assignment or subletting,
Landlord’s consent thereto, or Landlord’s collection or
acceptance of rent from any assignee or subtenant shall not be
construed either as waiving or releasing Tenant from any of its
liabilities or obligations under this Lease as a principal and not
as a guarantor or surety, or as relieving Tenant or any assignee or
subtenant from the obligation of obtaining Landlord’s prior
written consent to any subsequent assignment or subletting. As
security for this Lease, Tenant hereby collaterally assigns to
Landlord the rent due from any assignee or subtenant of Tenant. For
any period during which an Event of Default on the part of Tenant
is continuing, Tenant hereby authorizes each such assignee or
subtenant to pay said rent directly to Landlord upon receipt of
notice from Landlord specifying same. Landlord’s collection
of such rent shall not be construed as an acceptance of such
assignee or subtenant as a tenant. Tenant shall not mortgage,
pledge, hypothecate or encumber (collectively
“mortgage”) this Lease without Landlord’s prior
written consent, which consent may be granted or withheld in
Landlord’s sole and absolute discretion. To reimburse
Landlord for expenses incurred by Landlord in connection with
Tenant’s request for Landlord to give its consent to any
assignment, subletting, or mortgage, Tenant shall pay to Landlord
(a) an administrative fee of one thousand dollars ($1,000) and
(b) Landlord’s reasonable attorney’s fees actually
incurred; provided, however, that the administrative fee described
in clause (a) of this sentence shall not apply to any sublease
with respect to which the Proposed Sublet or Assignment Space (when
all aggregated with all other space subleased by Tenant) comprises
not more than eight thousand (8,000) square feet of rentable area
of the Premises nor to any sublease to any successor entity,
related entity or both (as such terms are defined in
Section 7.2 hereof). Any sublease, assignment or mortgage
shall, at Landlord’s option, be effected on forms approved by
Landlord in its reasonable judgment. Tenant shall deliver to
Landlord a fully-executed copy of each agreement evidencing a
sublease, assignment or mortgage within ten (10) days after
Tenant’s execution thereof and such agreement shall be of no
force or effect until Landlord has executed a consent in form and
substance acceptable to Landlord in its reasonable discretion and
in accordance with the provisions of this
Section 7.1.
7.2 If Tenant is a
partnership, then any event (whether voluntary, concurrent or
related) resulting in a dissolution of Tenant, any withdrawal or
change (whether voluntary, involuntary or by operation of law) of
partners owning a controlling interest in Tenant (including each
general partner), or any structural or other change having the
effect of limiting the liability of the partners to Landlord shall
be deemed a voluntary assignment of this Lease subject to the
provisions of this Article. If Tenant is a corporation (or a
partnership with a corporate general partner), then any event
(whether voluntary, concurrent or related) resulting in a
dissolution, merger, consolidation or other reorganization of
Tenant (or such corporate general partner), or the sale or transfer
or relinquishment of the interest of shareholders who, as of the
date of this Lease, own a controlling interest of the capital stock
of Tenant (or such corporate general partner), shall be deemed a
voluntary assignment of this Lease subject to the provisions of
this Article; provided, however, that the foregoing portion of this
sentence shall not apply to corporations whose stock is traded
through a national or regional exchange or over-the-counter market
or issued pursuant to an initial or any secondary public offering.
If Tenant is a limited liability company, then any dissolution of
Tenant or a
11
withdrawal or
change, whether voluntary, involuntary or by operation of law, of
members owning a controlling interest in Tenant shall be deemed a
voluntary assignment of this Lease. In addition, a transfer of all
or substantially all of the assets of Tenant, either by merger,
consolidation, or otherwise shall be deemed to be an assignment
under this Article VII. Whether Tenant is a partnership,
corporation or any other type of entity, then at the option of
Landlord, a sale of all or substantially all of its a assets, a
change in its name of which Landlord has not received prior notice,
or a conversion into any other type of entity shall also be deemed
voluntary assignment of this Lease. Notwithstanding anything
contained in this Article VII to the contrary, provided that
Tenant is not in default hereunder, Tenant may, upon at least
fifteen (15) days prior written notice to Landlord but without
Landlord’s prior written consent and without being subject to
Landlord’s rights and Tenant’s obligations set forth in
Sections 7.4, 7.5 and 7.6 below, assign or transfer its entire
interest in this Lease or sublease the entire Premises or any
portion thereof: (a) to a corporation or other business entity
(herein sometimes referred to as a “ successor entity
”) into or with which Tenant shall be merged or consolidated,
or to which substantially all of the assets of Tenant may be
transferred, provided that such successor corporation shall have a
creditworthiness, net worth and liquidity factor which are all at
least equal to the net worth and liquidity factor of Tenant as of
the date hereof, and provided that the successor entity shall
assume in writing all of the obligations and liabilities of Tenant
under this Lease; or (b) to a corporation or other business
entity (herein sometimes referred to as a “ related
entity ”) which shall, directly or indirectly, control,
be controlled by or be under common control with Tenant. In the
event of any such assignment or subletting, Tenant shall remain
fully liable as a primary obligor for the payment of all rent and
other charges required hereunder and for the performance of all
obligations to be performed by Tenant hereunder. For purposes of
clause (b) above, “ control ” shall be
deemed to be ownership of more than fifty percent (50%) of the
stock or other voting interest of the controlled corporation or
other business entity. Together with Tenant’s notice to
Landlord pursuant to this Section 7.2, Tenant shall submit to
Landlord sufficient information regarding the transaction as is
reasonably necessary for Landlord to confirm that the transaction
meets the qualifications set forth in this
Section 7.2.
7.3 If at any time
during the Lease Term Tenant desires to assign, sublet or mortgage
all or part of this Lease or the Premises, then in connection with
Tenant’s request to Landlord for Landlord’s consent
thereto, Tenant shall give notice to Landlord in writing (“
Tenant’s Request Notice ”) containing the
identity of the proposed assignee, subtenant or other party and a
description of its business; the terms of the proposed assignment,
subletting or other transaction; the commencement date of the
proposed assignment, subletting or other transaction (the “
Proposed Sublease or Assignment Commencement Date ”);
the area proposed to be assigned, sublet or otherwise
encumbered(the “ Proposed Sublet or Assignment Space
”); the most recent financial statement or other evidence of
financial responsibility of such proposed assignee, subtenant or
other party; and a certification executed by Tenant and such party
stating whether or not any premium or other consideration is being
paid for the assignment sublease or other transaction.
Notwithstanding the foregoing, in the event that Tenant desires to
determine whether Landlord will exercise its right to terminate
this Lease with respect to the Proposed Sublet or Assignment Space
in accordance with the provisions of Section 7.4 hereof,
Tenant shall have the right to submit a request to Landlord without
including therein the information described in the immediately
preceding sentence of this Section 7.3 and instead including
therein the following information: (i) the number of square
feet of rentable area which Tenant intends to sublease or, if it
intends to assign its interest in this Lease, then the fact that
the proposed transaction would be an assignment, and (ii) the
term of the proposed sublease with respect to the Proposed Sublet
or Assignment Space. Landlord shall then have thirty (30) days
following its receipt of Tenant’s notice (such notice being
hereinafter referred to as “ Tenant’s Special
Request Notice ”) to advise Tenant whether Landlord would
exercise its right to terminate this Lease with respect to the
Proposed Sublet or Assignment Space. If within such 30-day period
following Landlord’s receipt of Tenant’s Special
Request Notice, Landlord advises Tenant that Landlord intends to
exercise its recapture right pursuant to Section 7.4, then the
date of termination of this Lease with respect to the Proposed
Sublet or Assignment Space shall be the ninetieth (90th) day
following the date on which Landlord delivers its response to
Tenant. If Landlord does not deliver a response to Tenant’s
Special Request Notice within such 30-day period, or if Landlord
advises Tenant in writing within such 30-day period that Landlord
does not intend to exercise its termination right pursuant to
Section 7.4 hereof, then, if Tenant submits a Tenant’s
Special Request Notice to Landlord to assign its interest in this
Lease or to sublease the Proposed Sublet or
12
Assignment
Space, Landlord shall not have the right to terminate this Lease
with respect to such proposed assignment or sublease, except that
if (i) Tenant’s Request Notice which proposes a specific
proposed assignment or sublease is not received by Landlord within
one hundred twenty (120) days following the date of
Landlord’s delivery of its response to Tenant’s Special
Request Notice, or (ii) there is a change of more than five hundred
(500) square feet of rentable area from the number of square
feet of rentable area described in Tenant’s Special Request
Notice, or a change in the form of the proposed transaction (that
is, whether a sublease or assignment) or a change in the term of a
proposed sublease such that the term is more than three
(3) months shorter or longer than the term as described in
Tenant’s Special Request Notice, then Landlord’s right
to terminate this Lease, or to terminate this Lease with respect to
the Proposed Sublet or Assignment Space (as the case may be) in
accordance with the provisions of Section 7.4 hereof, shall
then again apply fully to Tenant’s Request Notice.
7.4 If the term of
the proposed sublease (including all applicable renewal terms
thereof) constitutes ninety percent (90%) or more of the remaining
Lease Term and if the Proposed Sublet or Assignment Space (when
aggregated with all other space subleased by Tenant) comprises more
than six thousand (6,000) square feet of rentable area of the
Premises, then Landlord shall have the right in its sole and
absolute discretion to terminate this Lease with respect to the
Proposed Sublet or Assignment Space by sending Tenant written
notice of such termination within thirty (30) days after
Landlord’s receipt of Tenant’s Request Notice. If the
Proposed Sublet or Assignment Space does not constitute the entire
Premises but constitutes more than six thousand (6,000) square feet
of rentable area of the Premises and Landlord exercises its option
to terminate this Lease with respect to the Proposed Sublet or
Assignment Space, then (a) Tenant shall tender the Proposed
Sublet or Assignment Space to Landlord on the Proposed Sublease or
Assignment Commencement Date and such space shall thereafter be
deleted from the Premises, and (b) as to that portion of the
Premises which is not part of the Proposed Sublet or Assignment
Space, this Lease shall remain in full force and effect except that
Base Rent and additional rent shall be reduced pro rata. The cost
of any construction required to permit the operation of the
Proposed Sublet or Assignment Space separate from the balance of
the Premises shall be paid by Tenant to Landlord as additional rent
hereunder. If the Proposed Sublet or Assignment Space constitutes
the entire Premises and Landlord elects to terminate this Lease,
then Tenant shall tender the Proposed Sublet or Assignment Space to
Landlord, and this Lease shall terminate, on the Proposed Sublease
or Assignment Commencement Date. If the term of the proposed
sublease (including all applicable renewal terms thereof)
constitutes less than ninety percent (90%) of the remaining Lease
Term and if the Proposed Sublet or Assignment Space (when
aggregated with all other space subleased by Tenant) comprises more
than six thousand (6,000) square feet of rentable area of the
Premises, exclusive of any space sublet or assigned to a related
entity or to a successor entity, then Landlord shall have the right
in its sole and absolute discretion to terminate this Lease with
respect to the Proposed Sublet or Assignment Space for the term of
the proposed sublease by sending Tenant written notice of such
termination within thirty (30) days after Landlord’s
receipt of Tenant’s Request Notice.
7.5 If any
sublease or assignment (whether by operation of law or otherwise,
including without limitation an assignment pursuant to the
provisions of the Bankruptcy Code or any other Insolvency Law),
other than a sublease or assignment to a related entity or
successor entity (as to which this Section 7.5 shall not
apply), provides that the subtenant or assignee thereunder is to
pay any amount in excess of the rental and other charges due under
this Lease, then whether such excess be in the form of an increased
monthly or annual rental, a lump sum payment, payment for the sale,
transfer or lease of Tenant’s fixtures, leasehold
improvements, furniture and other personal property, or any other
form (and if the subleased or assigned space does not constitute
the entire Premises, the existence of such excess shall be
determined on a pro-rata basis), Tenant shall pay to Landlord fifty
percent (50%) of any such excess or other premium applicable to the
sublease or assignment (after deducting Tenant’s reasonable,
out-of-pocket costs incurred in subleasing [consisting of
attorneys’ fees, leasehold improvements and allowances for
same, advertising expenses, moving allowances, any other monetary
allowances (other than rent abatement) and brokerage commissions],
but not deducting any costs attributable to vacancy periods or
“downtime”), which amount shall be paid by Tenant to
Landlord (unless such payment is otherwise waived, in whole or in
part, by Landlord in writing) as additional rent upon such terms as
shall be specified by Landlord and in no event later than ten
(10) days after any receipt thereof by Tenant. Landlord shall
have the right, which shall be
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exercisable in
its sole and absolute discretion, to advise Tenant that the
provisions of this Section 7.5 shall not apply to one or more
proposed subleases or assignments. Acceptance by Landlord of any
payments due under this Section shall not be deemed to constitute
approval by Landlord of any sublease or assignment, nor shall such
acceptance waive any rights of Landlord hereunder. Landlord shall
have the right to inspect and audit Tenant’s books and
records relating to any sublease or assignment.
7.6 All
restrictions and obligations imposed pursuant to this Lease on
Tenant shall be deemed to extend to any subtenant, assignee,
licensee, concessionaire or other occupant or transferee, and
Tenant shall cause such person to comply with such restrictions and
obligations. Any assignee shall be deemed to have assumed
obligations as if such assignee had originally executed this Lease
and at Landlord’s request shall execute promptly a document
confirming such assumption. Each sublease is subject to the
condition that if the Lease Term is terminated or Landlord succeeds
to Tenant’s interest in the Premises by voluntary surrender
or otherwise, at Landlord’s option the subtenant shall be
bound to Landlord for the balance of the term of such sublease and
shall attorn to and recognize Landlord as its landlord under the
then executory terms of such sublease or, at Landlord’s sole
option, the subtenant shall execute a direct lease with Landlord on
Landlord’s then-current standard form.
ARTICLE VIII
MAINTENANCE AND REPAIRS
8.1 Except as
specifically provided in this Lease, Tenant, at Tenant’s sole
cost and expense, shall promptly make all repairs, perform all
maintenance, and make all replacements in and to the Premises that
are necessary or desirable to keep the Premises in first class
condition and repair, in a clean, safe and tenantable condition,
and otherwise in accordance with all Laws and the requirements of
this Lease. Tenant shall maintain all fixtures, furnishings and
equipment located in, or exclusively serving, the Premises in
clean, safe and sanitary condition, shall take good care thereof
and make all required repairs and replacements thereto; provided,
however, that this sentence shall not be deemed to obligate Tenant
to maintain, repair or replace any of the restrooms located on the
eleventh (11th) floor of the Building, such responsibility being
solely that of Landlord, all costs of which shall be included in
Operating Expenses to the extent permitted by Section 5.2(a)
hereof. Tenant shall give Landlord prompt written notice of any
defects or damage to the structure of, or equipment or fixtures in,
the Building or any part thereof. Tenant shall suffer no waste or
injury to any part of the Premises, and shall, at the expiration or
earlier termination of the Lease Term, surrender the Premises in an
order and condition equal to or better than their order and
condition on the Lease Commencement Date, except for ordinary wear
and tear and as otherwise provided in Section 9.3 and
Article XVII. Except as otherwise provided in Article XVII,
all injury, breakage and damage to the Premises and to any other
part of the Building or the Land caused by any act or omission of
any invitee, agent, employee, subtenant, assignee, contractor,
client, family member, licensee, customer or guest of Tenant
(collective, “ Invitees ”) or Tenant, shall be
repaired by and at Tenant’s expense, except that Landlord
shall have the right at Landlord’s option to make any such
repair and to charge Tenant for all costs and expenses incurred in
connection therewith.
8.2 Except as
otherwise provided in this Lease, Landlord shall (subject to
reimbursement pursuant to Article V) keep the exterior and
demising walls, load bearing elements, foundations, roof and common
areas that form a part of the Building, and the building standard
mechanical, electrical, HVAC and plumbing systems, pipes and
conduits that are provided by Landlord in the operation of the
Building (collectively, the “ Building Structure and
Systems ”), clean and in good operating condition and,
promptly after becoming aware of any item needing repair, will make
repairs thereto. Notwithstanding any of the foregoing to the
contrary: (a) maintenance and repair of special tenant areas,
facilities, finishes and equipment (including, but not limited to,
any special fire protection equipment, telecommunications and
computer equipment, kitchen/galley equipment, air-conditioning
equipment serving the Premises only and all other furniture,
furnishings and equipment of Tenant and all Alterations) shall be
the sole responsibility of Tenant and shall be deemed not to be a
part of the Building Structure and Systems; and (b)
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Landlord shall
have no obligation to make any repairs brought about by any gross
negligence or any act of willful misconduct on the part of Tenant
or any of its Invitees.
9.1 The original
improvement of the Premises shall be accomplished in accordance
with the provisions of this Section 9.1 and, except as
specified in Section 3.2 hereof with respect to the delivery
of possession of the Premises to Tenant by Landlord, Landlord is
under no obligation to make any structural or other alterations,
decorations, additions, improvements or other changes
(collectively, “Alterations”) in or to the
Premises or the Building except as (if any) or as otherwise
expressly provided in this Lease. Notwithstanding the foregoing,
Landlord shall make available (i) for the performance of
Tenant’s Work (as hereinafter defined) and (ii) in an
amount not to exceed twenty-five percent (25%) of the Tenant
Allowance (as hereinafter defined), for space planning,
architectural and engineering services related thereto, legal fees
and relocation expenses relating to Tenant’s move to the
Premises, Tenant’s internal security system and equipment or
rental thereof for use in the Premises, as well as the
Tenant’s Work Coordination Fee (as hereinafter defined), an
allowance (the “Tenant Allowance”) in an amount
equal to the product of (a) Forty Dollars ($40.00) multiplied
by (b) the number of square feet of rentable area comprising
the Premises. As used herein, the Tenant’s Work Coordination
Fee shall mean an amount equal to three percent (3%) of the costs
of Tenant’s Work, which Tenant’s Work Coordination Fee
Tenant shall pay to Landlord. Landlord shall pay the Tenant
Allowance to Tenant in increments, in each case following
Tenant’s completion of Tenant’s Work (as hereinafter
defined) and Landlord’s receipt from Tenant of
(i) invoices reasonably evidencing work or services performed
with respect to the portion of Tenant’s Work (as hereinafter
defined) for which disbursement of a portion of the Tenant
Allowance is being requested, (ii) receipted bills or other
evidence that the aforesaid invoices for which disbursement of a
portion of the Tenant Allowance is being requested have been paid
in full, and (iii) waivers or releases of liens from each of
Tenant’s contractors, subcontractors and suppliers in
connection with the work performed or materials supplied as
evidenced by the aforesaid invoices for which disbursement of a
portion of the Tenant Allowance is being requested; provided,
however, that in no event shall Tenant have the right to request a
disbursement of the Tenant Allowance more often than once per
month.
Tenant shall
improve the Premises in accordance with the Tenant’s Plans
(as hereinafter defined). Tenant shall submit to Landlord
Tenant’s final plans and specifications for improvements to
the Premises (the “Tenant’s Plans”), which
shall be subject to Landlord’s prior written approval (the
work set forth in the Tenant’s Plans being referred to herein
as “Tenant’s Work”) which approval shall
not be unreasonably withheld or delayed with respect to items which
do not affect any of the structural components of the Building, any
of the Building’s systems or the exterior aesthetics of the
Building. From and after the date of L
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