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Exhibit 10.35
OFFICE SPACE LEASE
for
NEW BRITAIN CORPORATE CENTER
by and between
NEW BRITAIN LAND LIMITED PARTNERSHIP
(as Landlord)
and
MERCER STAFFING, INC.
(as Tenant)
Date: April 14 th , 2005
TABLE OF
CONTENTS
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Page
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1. Definitions
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2
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2. Premises
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2
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3. Completion
of Premises
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3
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4. Commencement
Date
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3
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5. Use of
Premises
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3
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6. Fixed Basic
Rent and Rent Payment
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3
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7. Omitted
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4
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8. Operating
Expenses
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4
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9. Interest
and Late Charge
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9
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10. Insurance
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10
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11. Repairs and
Maintenance
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13
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12. Utilities and
Services
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13
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13. Governmental
Regulations
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14
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14. Alterations, Additions
and Fixtures
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14
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15. Mechanic’s
Liens
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15
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16. Negative Covenants of
Tenant
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16
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17. Landlord’s Right
of Entry
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19
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18. Damage by Fire or
Other Casualty
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19
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19. Non-Abatement of
Rent
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20
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20. Indemnification
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20
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21. Eminent
Domain
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20
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22. Quiet
Enjoyment
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21
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23. Rules and
Regulations
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21
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24. Assignment and
Sublease
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22
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25. Relocation
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25
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26. Subordination
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25
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27. Curing Tenant’s
Defaults
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26
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28. Surrender
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26
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29. Defaults-Remedies
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26
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30. Brokers’
Commission
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30
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31. Notices
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30
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32. Inability to
Perform
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31
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33. Survival
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31
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34. Corporate
Tenants
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31
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35. Waiver of Invalidity
of Lease
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31
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36. Security
Deposit
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31
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37. Estoppel
Certificate
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31
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38. Rights Reserved by
Landlord
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32
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39. Miscellaneous
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33
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40. Additional
Definitions
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35
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41. Guaranty of
Lease
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36
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i
THIS LEASE (the "Lease") is made the 14
th day of April, 2005 between NEW
BRITAIN LAND LIMITED PARTNERSHIP (herein referred to as
"Landlord"), a Pennsylvania limited partnership and MERCER
STAFFING, INC, a Delaware corporation (herein referred to as
"Tenant").
PREAMBLE
BASIC LEASE PROVISIONS AND DEFINITIONS
In addition to other terms elsewhere defined in this Lease, the
following terms whenever used in this Lease shall have only the
meanings set forth in this Section, unless such meanings are
expressly modified, limited or expanded elsewhere in this
Lease.
A. ADDITIONAL RENT shall mean all sums in addition
to Fixed Basic Rent payable by Tenant to Landlord or to third
parties pursuant to the provisions of the Lease.
B. BASE YEAR shall mean the calendar year ending
December 31, 2005.
C. BROKER(S ) shall mean Markward Group, Inc. and
Trammel Crow Company.
D. BUILDING shall mean the building located at
1600 Manor Drive, New Britain, Pennsylvania, in the Park containing
approximately 50,000 rentable square feet of space.
E. BUILDING HOLIDAYS shall be those holidays
listed on Exhibit D.
F. DECLARATION shall mean such declarations,
covenants, restrictions and agreements of public record, from time
to time, to which the Property is subject relating to the operation
and maintenance of the Park and adjoining properties.
G. DELIVERY DATE shall be on or about June 1,
2005.
H. EXHIBITS shall be the following, attached to
this Lease and incorporated in this Lease and made a part of this
Lease:
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Exhibit A
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Premises
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Exhibit B
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Legal Description of Property
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Exhibit C
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Work Letter
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Exhibit D
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Building Holidays
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Exhibit E
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Janitorial Specifications
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Exhibit F
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Rules and Regulations
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Exhibit G
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Tenant Estoppel Certificate
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Exhibit H
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Confirmation of Lease Term
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Exhibit I
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Lease Guaranty
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I. FIXED BASIC RENT , shall be
calculated and payable as follows, subject to Landlord’s
confirmation and adjustment of the rentable square feet contained
within the Premises:
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Lease
Year
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Rentable
Sq. Ft.
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Rate Per
Rentable
Sq. Foot
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Yearly
Rate
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Monthly
Installment
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1
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5,334
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$
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20.00
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$
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106,680.00
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$
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8,890.00
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2
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5,334
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$
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22.50
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$
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120,015.00
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$
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10,001.25
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3
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5,334
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$
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23.00
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$
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122,682.00
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$
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10,223.50
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4
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5,334
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$
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23.50
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$
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125,349.00
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$
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10,445.75
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5
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5,334
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$
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24.00
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$
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128,016.00
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$
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10,668.00
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J. LEASE YEAR shall mean, with
respect to the first Lease Year, the period commencing on the
Commencement Date and ending on the last day of the month which is
twelve (12) consecutive calendar months following the
Commencement Date and, with respect to each Lease Year thereafter,
each consecutive twelve (12) calendar month period
thereafter.
K. PARK shall mean the New Britain Corporate
Center located at Route 202 and County Line Road, New Britain,
Pennsylvania.
L. PERMITTED USE shall be general office use and
for no other purpose, subject to all applicable laws and all rules
and regulations of the Building and insurers of the Building.
M. PREMISES shall be approximately five thousand
three hundred thirty four (5,334) rentable square feet on the
first level of the Building as set forth on Exhibit A such
measurement to be subject to final determination by Landlord.
N. PROPERTY shall mean the Building and the lot,
tract or parcel of land on which the Building is situated and all
improvements thereto as more particularly described on Exhibit B
attached hereto.
O. SECURITY DEPOSIT shall be the sum of Seventeen
Thousand Seven Hundred Eighty Dollars ($17,780.00) which shall held
in accordance with Section 36 of the Lease.
P. TENANT’S PROPORTIONATE SHARE shall mean
10.67%.
Q. TERM shall mean the period of time commencing
on the Commencement Date and ending on the date which is five
(5) Lease Year following the Commencement Date, unless
otherwise terminated or extended pursuant to the terms of this
Lease.
For and in consideration of the covenants contained in this
Lease, anti upon the terms and conditions set forth in this Lease,
Landlord and Tenant, intending to be legally bound, agree as
follows:
1. Definitions . The definitions set forth in the
preceding Preamble shall apply to the same capitalized terms
appearing in this Lease. Additional definitions are contained in
Section 40 and throughout this Lease.
2
2. Premises . Landlord hereby demises and
leases the Premises to Tenant and Tenant hereby leases and takes
the Premises from Landlord for the Term and upon the terms,
covenants, conditions, and provisions set forth in this Lease,
including the Preamble (this "Lease"). The Tenant’s interest
in the Premises as tenant shall include the right, in common with
Landlord and other occupants of the Park, to use driveways,
sidewalks, loading and parking areas, and other facilities which
are located within the Property and which are designated by
Landlord from time to time for the use of all of the tenants of the
Park (the "Common Facilities").
3. Completion of Premises . The Premises shall be
completed in accordance with the Work Letter attached hereto as
Exhibit C. If the Landlord’s Work is not substantially
completed and delivered to the Tenant on or before the Delivery
Date for any reason, whether or not within Landlord’s
control, Landlord shall not be subject to any liability to Tenant
and no such failure to deliver the Premises by the Delivery Date or
any other date shall in any respect affect the validity or
continuance of this Lease of any obligation of Tenant hereunder or
extend the Term.
4. Commencement Date . The Term shall commence on the
date (the "Commencement Date") which is the first to occur of the
following: (i) the date Tenant occupies the Premises for the
conduct of its business or (ii) the date the Landlord’s
Work is substantially complete. Notwithstanding the foregoing, in
the event the Landlord’s Work is not substantially completed
on or before the Delivery Date due in part or in whole to a Tenant
delay, then upon the Commencement Date, Tenant shall pay to
Landlord the sum of 1/365 of the Fixed Basic Rent and Additional
Rent during the first full year of the Term (after any period of
free Rent) multiplied by the aggregate number of days of such
Tenant delay. Upon Landlord’s request, Tenant shall execute
the Confirmation of Lease Term attached hereto as Exhibit H.
5. Use of Premises . Tenant shall occupy the Premises
throughout the Term and shall use the same for, and only for, the
Permitted Use.
6. Fixed Basic Rent and Rent Payment .
(a) Commencing on the Commencement Date, Tenant shall pay,
throughout the Term, the annual Fixed Basic Rent in the amount
specified in the Preamble, without notice or demand and without
setoff or deduction, in equal monthly installments equal to
one-twelfth of the annual Fixed Basic Rent (specified as Monthly
Installments in the Preamble), in advance, on the first day
of’ each calendar month during the Term. All payments of
Fixed Basic Rent shall be made. If the Commencement Date falls on a
day other than the first day of a calendar month, the Fixed Basic
Rent shall be due and payable for such month, apportioned on a per
diem basis for the period between the Commencement Date and the
first day of the next first full calendar month in the Term and
such apportioned sum shall be paid on the Commencement Date. Upon
executing this Lease, Tenant shall pay the installment of Fixed
Basic Rent attributable to the first full calendar month of the
Term for which a full monthly installment of Fixed Basic Rent is
payable hereunder.
(b) Unless and until otherwise directed in writing by Landlord,
all payments of Fixed Basic Rent hereunder shall be made by direct
debit of Tenant’s bank and bank account through automated
clearinghouse deductions of immediate federal funds or equivalent
to Landlord’s bank and bank account. Such direct debit
arrangements will not in any way modify Tenant’s obligation
to make rental payments hereunder. Tenant will execute such
automated clearinghouse authorizations and other documentation as
maybe reasonably required by Landlord to establish the direct debit
payment arrangements as described above.
3
7. Omitted .
8. Operating Expenses .
(a) Definitions . As used in this Section 8 the
following terms shall be defined as hereinafter provided:
(i) " Operating Year " shall mean each calendar year, or
such other period of twelve (12) months as hereafter may be
adopted by Landlord as its fiscal year, occurring either in whole
or in part during the Term.
(ii) " Operating Expense Statement " shall mean a
statement provided by Landlord, setting forth in reasonable detail:
(a) the Operating Expenses for the Operating Year (or portion
thereof if less than a full Operating Year) immediately preceding
the Operating Year in which the statement is issued, reasonably
detailed by major categories, (b) the Tenant’s Expense
Payment (defined in Subsection 8(b)) for such preceding Operating
Year, prorated if only a part of the Operating Year falls within
the Term, (c) the amount of payments made by Tenant on account
of the Tenant’s Expense Payment during such preceding
Operating Year, (d) the amount of payments of the Monthly
Operating Expense Estimate (defined in Subsection 8(b)(i)(l)) made
to date by Tenant in the Operating Year in which the Expense
Statement is issued, and (e) the Monthly Operating Expense
Estimate for the Operating Year in which the Operating Expense
Statement is issued.
(iii) " Operating Expenses " shall mean
(1) the expenses incurred by Landlord in connection with the
operation, repair, maintenance, protection and management of the
Property, including by way of example rather than of limitation,
the following:
(a) Wages, salaries, fees and other compensation and payments,
payroll taxes, contributions to any social security, unemployment
insurance, welfare, pension or similar fund and payments for other
fringe benefits made to or on behalf of any and all employees of
Landlord performing services rendered in connection with the
operation, repair, maintenance, protection and management of the
Property, including, without limitation: elevator operators;
elevator starters; window cleaners; porters; janitors; maids;
miscellaneous handymen; watchmen; persons engaged in patrolling and
protecting the Property; carpenters; engineers; firemen; mechanics;
electricians; plumbers; landscapers; insurance risk managers;
building superintendent and assistants; property manager; and
clerical and administrative personnel. Landlord may contract for
any of the foregoing to be performed by independent contractors, in
which event all sums paid to such independent contractors shall be
included within Operating Expenses pursuant to Subsection
8(a)(iii)(l)(p) below.
(b) The cost of employee uniforms, and the cleaning, pressing
and repair thereof.
4
(c) Cleaning costs for the Property, including
the Building facade, windows and sidewalks, all costs for snow and
rubbish removal and the costs of all labor, supplies, equipment and
materials incidental to such cleaning.
(d) Premiums and other charges incurred by Landlord with respect
to all insurance relating to the Property and the operation and
maintenance thereof, including without limitation: all risk of
physical damage or fire and extended coverage insurance; public
liability insurance; elevator insurance; workmen’s
compensation insurance; boiler and machinery insurance; sprinkler
leakage insurance; rent insurance; and health, accident and group
life insurance for employees.
(e) The cost of water and sewer servicing the Building or the
Property to the extent not billed directly to Tenant in accordance
with Section 12(a) below.
(f) Costs incurred for operation, service, maintenance,
inspection, repairs and alterations of the Property, including the
heating, air-conditioning, ventilating, plumbing, electrical and
elevator systems of the Building and the costs of labor, materials,
supplies and equipment used in connection with all of the aforesaid
items.
(g) Sales and excise taxes and the like upon any of the expenses
enumerated herein.
(h) Management fees of the managing agent for the Building.
(i) The cost of tools, equipment, and supplies and any
replacement thereof.
(j) The cost of repainting or otherwise redecorating any part of
the Building other than premises demised to tenants in the
Building, and the cost of displays or decorations for the lobby,
balconies and other public portions of the Property.
(k) The cost of telephone, telecopier and courier services,
postage and delivery charges, office supplies, maintenance and
repair of office equipment, and similar costs.
(l) The cost of licenses, permits and similar fees and
charges.
(m) Auditing and accounting fees including accounting fees
incurred in connection with the preparation and certification of
the Operating Expense Statements.
(n) All costs incurred by Landlord to comply with governmental
requirements, whether federal, state or municipal; and all repairs,
replacements and improvements which are appropriate for the
continued operation of the Building as a first class building,
including capital expenditures which under generally applied real
estate accounting practice are expensed or are regarded as deferred
expenses.
5
(o) All costs and expenses associated with the
acquisition and installation of any energy or cost saving devices
but only to the extent of savings realized.
(p) Cost of independent contractors performing services,
including, but not limited to, cleaning, janitorial,
window-washing, rubbish removal, security, landscaping, snow and
ice removal services, electrical, painting, plumbing, elevator,
heating, ventilation and air conditioning maintenance and repair
and all fees due such independent contractors.
(q) Legal fees with respect to the Property other than those
incurred in the negotiation or enforcement of tenant leases.
(r) Capital expenditures necessitated by casualties to the
extent the same are not covered by insurance.
(s) Any and all other expenditures of Landlord which are
properly expenses in accordance with generally applied real estate
accounting practices consistently applied with respect to the
operation, repair, maintenance, protection and management of
first-class office buildings in the locality of the Building.
(t) If Landlord shall purchase any item of capital equipment or
make any capital expenditure as described in Subsections
8(a)(iii)(1)(n), or 8(a)(iii)(l)(o), or 8(a)(iii)(1)(r) above
(jointly the " Capital Expenditures ") then the costs for
same shall be amortized on a straight line basis beginning in the
year of installation and continuing for the useful life thereof,
but not more than ten (10) years, or such shorter time as may
be hereinafter provided, with a per annum interest factor equal to
the rate of Interest on the date of purchase of any item described
in Subsections 8(a)(iii)(1)(n), or 8(a)(iii)(1)(o), or
8(a)(iii)(1)(r) above. The amount of amortization for such costs
shall be included in Operating Expenses for each Operating Year to
which the amortization relates. Tenant agrees that the
determination by Landlord’s accountants of the useful life of
the subject of such Capital Expenditures shall be binding on
Tenant. If Landlord shall lease such items of capital equipment,
then the lease shall be included in Operating Expenses for each
Operating Year in which they are incurred. Notwithstanding the
foregoing, if Landlord shall effectuate savings in labor or energy
related costs as a result of the installation of new devices or
equipment, then Landlord may, in lieu of the above, elect to
include up to the full amount of any such savings in each Operating
Year (beginning with the Operating Year in which the equipment is
placed in service) as an Operating Expense until Landlord has
recovered thereby the cost of installation of said devices or
equipment and interest thereon as above provided, even if the
result of such application will result in the amortization of such
costs over a period shorter than the useful life of such
installation. Landlord shall notify Tenant in writing if Landlord
elects to apply such savings to the cost of such equipment and
shall include a statement of the amount of such savings in the
Operating Expense Statement for each applicable Operating Year.
Operating Expenses shall thereafter be reduced by the amount of any
previous Capital Expenditures included therein expensed pursuant to
this Subsection 8(a)(iii)(1)(t) when such amortization has been
completed.
6
(u) Any expenses, costs or assessments assessed
against or allocated to the Building or the Property pursuant to
the terms of the Declaration in connection with the ownership,
operation and maintenance of the Property.
(v) Real Estate Taxes (defined below).
(2) Notwithstanding the provisions of Section 8(a)(iii)(l),
"Operating Expenses" shall not include expenditures for any of the
following:
(a) Any capital addition made to the Building, including the
cost to prepare space for occupancy by a new tenant, except as set
forth in Subsections 8(a)(iii)(l)(n), or 8(a)(iii)(l)(o), or
8(a)(iii)(l)(r) above.
(b) Repairs or other work occasioned by fire, windstorm or other
insured casualty or hazard, to the extent that Landlord shall
receive proceeds of such insurance.
(c) Leasing commissions and advertising expenses incurred in
leasing or procuring new tenants.
(d) Repairs or rebuilding necessitated by condemnation to the
extent that Landlord has received condemnation proceeds for such
repairs or rebuilding.
(e) Depreciation and amortization of the Building, other than as
permitted pursuant to Subsection 8(a)(iii)(l)(t).
(f) The salaries and benefits of executive officers of Landlord,
if any.
(g) Debt service payments on any indebtedness applicable to the
Property, including any mortgage debt.
(3) Operating Expenses shall be "net" and, for that purpose,
shall be reduced by the amounts of any reimbursement or credit
received by Landlord with respect to an item of cost that is
included within Operating Expenses (other than reimbursements to
Landlord by tenants of the Building pursuant either to operating
expense provisions of any lease or separate contractual
arrangements).
(4) In determining Operating Expenses for any Operating Year
(including the Base Year) during which less than ninety-five
percent (95%) of the rentable area of the building shall have
been occupied by tenants for more than thirty (30) days during
such year, the actual Operating Expenses for such year shall be
increased to the amount which normally would have been incurred for
such Operating Year had such occupancy of the Building been
ninety-five percent (95%) throughout such Operating Year, as
reasonably determined by Landlord. Notwithstanding the foregoing,
in no event shall Landlord receive more than one hundred percent
(100%) of the Building’s actual Operating Expenses as a
result of the operation of this Subsection 8(a)(iv)(4).
7
(iv) " Monthly Operating Expense Estimate
" shall have the meaning specified in Subsection 8(b)(i)(1)
hereof.
(v) " Real Estate Taxes " shall mean all taxes, liens,
charges, imposts and assessments of every kind and nature, ordinary
or extraordinary, foreseen, or unforeseen, general or special,
levied, assessed or imposed by any governmental authority with
respect to the Property or allocated to the Property pursuant to
the terms of the Declaration, as well as all fees or assessments
payable on account of the Property being located in any special
services district. Notwithstanding the foregoing:
(1) if at any time during the Term the present system of ad
valorem taxation of real property shall be changed or supplemented
so that in lieu of or in addition to the ad valorem tax on real
property there shall be assessed on Landlord or the Property any
tax of any nature which is imposed in whole or in part, in
substitution for, addition to, or in lieu of any tax which would
otherwise constitute a Real Estate Tax, such tax shall be included
within the term " Real Estate Taxes ," but only to the
extent that the same would be payable if the Property were the only
property of Landlord. Such tax may include, but shall not be
limited to, a capital levy or other tax on the gross rents or gross
receipts with respect to the Property, or a federal, state, county,
municipal or other local income, franchise, profit, excise or
similar tax, assessment, levy or charge measured by or based, in
whole or in part, upon any such gross rents or gross receipts;
(2) Real Estate Taxes shall also encompass all of
Landlord’s expenses, including but not limited to
attorney’s fees and expenses, incurred by Landlord in any
effort to minimize Real Estate Taxes whether by contesting proposed
increases in assessments, applying for the benefit of any tax
abatement program available for the Property, appealing the denial
of any such tax abatement, or contesting any challenge to the
validity of any tax abatement program or its applicability to the
Property or by any other means or procedures appropriate in the
circumstances; provided, however, that under no circumstances shall
Landlord have any obligation to undertake any contest, appeal or
other procedure to minimize Real Estate Taxes or to obtain or
maintain the benefits of any tax abatement program for the
Property; and
(3) except as otherwise provided in Subsection (a)(v)(1) above,
there shall be excluded from Real Estate Taxes all net income,
excess profit, excise, franchise, estate, succession and
inheritance taxes, penalties due to Landlord’s lateness or
failure to pay taxes when due and transfer taxes imposed on
Landlord.
(b) Tenant’s Expense Payment . Commencing on the
Commencement Date, Tenant shall pay to Landlord as Additional Rent
hereunder an amount equal to Tenant’s Proportionate Share of
the excess, if any, in Operating Expenses for such Operating Year
over Operating Expenses for the Base Year (" Tenant’s
Expense Payment "). For any portion of an Operating Year less
than a full twelve (12) month period occurring within the
Term, Tenant’s Expense Payment shall be prorated on a per
diem basis. Such Additional Rent shall be paid (or credited) in the
following manner:
8
(i) Beginning on the Commencement Date and
continuing thereafter during each Operating Year during the Term on
the first day of each month until receipt of the next Operating
Expense Statement, Tenant will pay Landlord an amount set by
Landlord sufficient to pay Landlord’s estimate (reasonably
based on the actual Operating Expenses for the preceding Operating
Year and Landlord’s projections of any anticipated increases
or decreases thereof) of Tenant’s Expense Payment for the
current Operating Year (or remaining portion thereat) (the "
Monthly Operating Expense Estimate "). The Monthly Operating
Expense Estimate for a period less than a full calendar month shall
be duly prorated.
(ii) Following the end of each Operating Year, Landlord shall
furnish Tenant an Operating Expense Statement setting forth the
information described in Subsection 8(a)(ii) above. Within fifteen
(15) days following the receipt of such Operating Expense
Statement (the " Expense Share Date ") Tenant shall pay to
Landlord: (i) the amount by which the Tenant’s Expense
Payment for the Operating Year (or portion thereof) covered by the
Operating Expense Statement exceeds the aggregate of Monthly
Operating Expense Estimates paid by Tenant with respect to such
Operating Year (or portion thereof); and (ii) the amount by
which the Monthly Operating Expense Estimate for the current
Operating Year as shown on the Operating Expense Statement
multiplied by the number of months elapsed to date in the current
Operating Year (including the month in which payment is made)
exceeds the aggregate amount of payments of the Monthly Operating
Expense Estimate theretofore made in the Operating Year in which
the Operating Expense Statement is issued. Landlord shall
diligently endeavor to furnish Tenant an Operating Expense
Statement not later than one hundred and twenty (120) days
following the end of each Operating Year.
(iii) On the first day of the first month following receipt by
Tenant of any annual Operating Expense Statement and continuing
thereafter on the first day of each succeeding month until the
issuance of the next ensuing Operating Expense Statement, Tenant
shall pay Landlord the amount of the Monthly Operating Expense
Estimate shown on the Operating Expense Statement.
(c) Tenant’s Audit Right . Tenant shall have the
right, at is sole cost and expense, to inspect and/or audit
Landlord’s books and records at Landlord’s place of
business or such other place Landlord regularly maintains such
books and records with respect to the calculation of Operating
Expenses set forth on an Operating Expense Statement within ninety
(90) days following receipt of such Operating Expense
Statement, including the final Operating Expense Statement which
may be delivered to Tenant following the expiration or earlier
termination of the Term. Tenant shall give Landlord not less than
thirty (30) days prior written notice of its intention to
conduct any such audit. If such audit discloses that the amount
paid by Tenant for any one or more of the above enumerated items
for the period under consideration has been overstated, then
Landlord shall immediately credit to Tenant the amount of
overcharge.
9. Interest and Late Charge . Landlord may charge a late
payment charge of five percent (5%) of any installment of
Fixed Basic Rent or Additional Rent that is not paid within five
(5) days of the due date thereof. Any amount due from Tenant
to Landlord which is not paid when due shall bear interest
("Interest") at an interest rate equal to the Prime Rate published
from time to time in the Money Rates column of the Wall Street
Journal plus 2% (or, if lower, the highest rate then allowed under
the usury laws of the Commonwealth of Pennsylvania) from the date
due until the date paid. The right of Landlord to charge a late
charge and interest with respect to past due installments of Fixed
Basic Rent and Additional Rent is in addition to Landlord’s
rights and remedies upon an event of default.
9
10. Insurance .
(a) Tenant’s Insurance .
(i) Tenant covenants and represents, such covenants and
representations being specifically designed to induce Landlord to
execute this Lease, that during the entire Term, at its sole cost
and expense, Tenant shall obtain, maintain and keep in full force
and effect the following insurance:
(1) "All Risk" property insurance against fire, theft,
vandalism, malicious mischief, sprinkler leakage and such
additional perils as are now, or hereafter may be, included in a
standard extended coverage endorsement from time to time in general
use in the Commonwealth of Pennsylvania upon property of every
description and kind owned by Tenant and/or under Tenant’s
care, custody or control located in the Building or the Property or
for which Tenant is legally liable or installed by or on behalf of
Tenant, including by way of example and not by way of limitation,
furniture, fixtures, fittings, installations and any other personal
property (but excluding the work done by Landlord in connection
with the Work Letter) in an amount equal to the full replacement
cost thereof.
(2) Commercial General Liability Insurance coverage to include
personal injury, bodily injury, broad form property damage,
operations hazard, contractual liability, products and completed
operations liability naming Landlord and Landlord’s mortgagee
or trust deed holder and ground lessors (if any) as additional
named insureds in limits of not less than Two Million Dollars
($2,000,000.00).
(3) Business interruption insurance in such amounts as will
reimburse Tenant for direct or indirect loss of earnings
attributable to all perils commonly insured against by prudent
tenants or assumed by Tenant pursuant to this Lease or attributable
to prevention or denial of access to the Premises as a result of
such perils.
(4) Workers’ Compensation insurance in form and amount as
required by law.
(5) Any other form or forms of insurance or any increase in the
limits of any of the aforesaid enumerated coverages or other forms
of insurance as Landlord or the mortgagees or ground lessors (if
any) of Landlord may reasonably require from time to time if in the
reasonable opinion of Landlord or said mortgagees or ground lessors
said coverage and/or limits become inadequate or less than that
commonly maintained by prudent tenants in similar buildings in the
area by tenants making similar uses.
(ii) All property insurance policies shall be taken out with
insurers rated A+XV (or if such ratings are not in effect, the
equivalent thereof) by Best Rating Service, or any successor
thereto (or if there be none, an organization having a National
reputation) who are licensed to do business in the state in which
the Property is located and shall be in form satisfactory from time
to time to Landlord. A policy or certificate evidencing such
insurance
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together with a paid bill shall be delivered to
Landlord not less than fifteen (15) days prior to the
Commencement Date hereof. Such insurance policy or certificate will
provide an undertaking by the insurers to notify Landlord and the
mortgagees or ground lessors (if any) of Landlord in writing not
less than thirty (30) days prior to any material change,
reduction in coverage, cancellation, or other termination thereof.
Should a certificate of insurance initially be provided a policy
shall be furnished by Tenant within thirty (30) days of the
Commencement Date. The aforesaid insurance shall be written with
commercially reasonable deductibles.
(iii) In the event of damage to or destruction of the Premises
entitling Landlord or Tenant to terminate this Lease pursuant to
Section 18 of this Lease, and if this Lease be so terminated,
Tenant shall immediately pay to Landlord all of its insurance
proceeds, if any, relating to the leasehold improvements and
alterations (but not Tenant’s trade fixtures, equipment,
furniture or other personal property of Tenant in the Premises)
which have become Landlord’s property on installation or
would have become Landlord’s property at the Term’s
expiration or sooner termination. If the termination of the Lease,
at Landlord’s election, is due to damage to the Building, and
if a portion of the Premises have not been so damaged, Tenant will
deliver to Landlord, in accordance with the provisions of this
Lease, the improvements and alterations to the such portion of the
Premises which have become an installation or would have become at
the Term’s expiration, Landlord’s property.
(iv) Tenant agrees that it will not keep or use or offer for
sale (if sales of goods is a permitted use pursuant to this Lease)
in or upon the Premises or within the Property any article which
may be prohibited by any insurance policy in force from time to
time covering the Property or Premises. In the event Tenant’s
occupancy or conduct of business in or on the Premises or Property,
whether or not Landlord has consented to the same, results in any
increase in premiums for insurance carried from time to time by
Landlord with respect to the Building, or the Property, Tenant
shall pay such increase in premiums as Additional Rent within ten
(10) days after being billed therefor by Landlord. In
determining whether increased premiums are a result of
Tenant’s use and occupancy a schedule issued by the
organization computing the insurance rate on the Property or
Building showing the components of such rate shall be conclusive
evidence of the items and charges making up such rate. Tenant shall
promptly comply with all reasonable requirements of the insurance
authority or of any insurer now or hereafter in effect relating to
the Property.
(v) If any insurance policy carried by either party as required
by this Section 10 shall be cancelled or cancellation shall be
threatened or the coverage thereunder reduced or threatened to he
reduced in any way by reason of the use or occupation of the
Building or any part thereof by Tenant or any assignee or subtenant
of Tenant or anyone permitted by Tenant to be upon the Property,
and if Tenant fails to remedy the conditions giving rise to such
cancellation or threatened cancellation or reduction in coverage on
or before (i) forty-eight (48) hours after notice thereof
from Landlord, or (ii) prior to such cancellation or reduction
becoming effective, Tenant shall be in default and an event of
default shall occur under this Lease and Landlord shall have all of
the remedies available to Landlord pursuant to this Lease.
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(b) Landlord’s Insurance . Landlord
covenants and agrees that throughout the Term it will insure the
Property and the Building (excluding any property with respect to
which Tenant is obligated to insure pursuant to Subsection
10(a)(i)(1) above) against damage by fire and standard extended
coverage perils and public liability insurance in such reasonable
amounts with such reasonable deductibles as required by any
mortgagee, or, if none, as would be carried by a prudent owner of a
similar building in the area. In addition, Landlord shall maintain
and keep in force and effect during the Term, rental income
insurance insuring Landlord against abatement or loss of Fixed
Basic Rent, including items of Additional Rent, in case of fire or
other casualty similarly insured against, in an amount at least
equal to the Fixed Basic Rent and Additional Rent during, at the
minimum, one Lease Year hereunder. Landlord may, but shall not be
obligated to, take out and carry any other forms of insurance as it
or the mortgagee or ground lessor (if any) of Landlord may require
or reasonably determine available. All insurance carried by
Landlord on the Building and the Property or in connection with its
ownership or operation thereof shall be included as an item of
Operating Expenses pursuant to Section 8. Notwithstanding its
inclusion as an Operating Expense or any contribution by Tenant to
the cost of insurance premiums by Tenant as provided herein, Tenant
acknowledges that it has no right to receive any proceeds from any
such insurance policies carried by Landlord although Landlord shall
use such proceeds in the repair and reconstruction of the Property
and the Premises. Tenant further acknowledges that the exculpatory
provisions of this Lease as set forth in Section 40 and the
provisions of this Section 10 as to Tenant’s insurance
are designed to insure adequate coverage as to Tenant’s
property and business without regard to fault and avoid Landlord
obtaining similar coverage for such loss for its negligence or that
of its agents, servants or employees which would result in double
coverage for the same perils includable as part of Operating
Expenses which are payable in part by Tenant. Landlord will not
carry insurance of any kind on Tenant’s furniture or
furnishings, or on any fixtures, equipment, appurtenances or
improvements of Tenant under this Lease, and Landlord shall not be
obligated to repair any damage thereto or replace the
same.
(c) Waiver of Subrogation . Any policy or policies of
fire, extended coverage or similar casualty insurance, which either
party obtains in connection with the Premises, Building or Property
shall include a clause or endorsement denying the insurer any
rights of subrogation against the other party (i.e., Landlord or
Tenant) for all perils covered by such policy. Should such waiver
not be available then the policy for which the waiver is not
available must name the other party as an additional named insured
affording it the same coverage as that provided the party obtaining
such coverage. Any provision of this Lease to the contrary
notwithstanding, Landlord and Tenant hereby release the other from
any and all liability or responsibility to the other or anyone
claiming through or under them by way of subrogation or otherwise
(a) from any and all liability for any loss or damage to the
property of the releasing party, (b) for any loss or damage
that may result, directly or indirectly, from the loss or damage to
such property (including rental value and business interruption),
and (c) from legal liability for any loss or damage to
property (no matter who the owner of the property may be), all to
the extent that the releasing party’s loss or damage is
insured or, if not insured, was insurable under commercially
available "all risk" property insurance policies, including
additional coverages typically obtained by owners and tenants of
comparable office buildings in the vicinity of the Building, even
if such loss or damage or legal liability shall be caused by or
result from the fault or negligence of the other party or anyone
for whom such party may be responsible and even if the releasing
party is self insured in whole or in part or the amount of the
releasing party’s insurance is inadequate to cover the loss
or damage or legal liability. It is the intention of the parties
that Landlord and Tenant shall look solely to their respective
insurance carriers for recovery against any such property loss or
damage or legal liability, without such insurance carriers having
any rights of subrogation against the other party.
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11. Repairs and Maintenance .
(a) Tenant shall, throughout the Term, and at Tenant’s
sole cost and expense, keep and maintain the Premises in a neat and
orderly condition; and, upon expiration of the Term or earlier
termination of this Lease, Tenant shall leave the Premises in good
order and condition, ordinary wear and tear, damage by fire or
other casualty alone excepted, and for that purpose and except as
stated in this sentence, Tenant will make all necessary repairs and
replacements to the Premises to deliver it in such condition.
Tenant shall not permit any waste, damage or injury to the
Premises. Tenant shall not use or permit the use of any portion of
the Common Facilities for other than their intended use as
specified by the Landlord from time to time.
(b) Landlord shall, throughout the Term, make all necessary
repairs to the structural elements and Building operating systems
and exterior windows and doors of the Premises and other
improvements located on the Property; provided, however, that
Landlord shall have no responsibility to make any repairs unless
and until Landlord receives written notice of the need for such
repair. Landlord shall keep and maintain all Common Facilities of
the Property and any sidewalks, parking areas, curbs and access
ways adjoining the Property in a clean and orderly condition, free
of accumulation of dirt and rubbish and shall keep and maintain all
landscaped areas within the Property in a neat and orderly
condition.
12. Utilities and Services .
(a) Landlord shall cause the applicable service providers to
furnish the Property with electricity, gas, water, sewer, fuel or
other utility. Tenant agrees to pay as Additional Rent all charges
for electricity, light, heat or other utility used by Tenant at the
Premises and which are submetered to Tenant. In addition, Tenant
agrees to pay as Additional Rent its Proportionate Share of all
charges for electricity, light, water and sewer or other utility
used generally at the Property (i.e. not within tenant occupied
premises of the Building). All charges for and repairs of any
meters servicing the Premises shall be payable by Tenant as
Additional Rent and shall he paid when the same shall become due.
Tenant’s use of electric energy in the Premises shall not at
any time exceed the safe capacity of any of the electric conductors
and equipment in or otherwise serving the Premises.
(b) Landlord, upon Tenant’s request, shall replace light
bulbs, tubes and ballasts for lighting fixtures when required in
the Premises. The cost of replacement light bulbs, tubes, lamps,
and ballasts, plus the costs incurred by Landlord for such
replacement, shall be paid by Tenant as Additional Rent in
accordance with Landlord’s then-current schedule of costs and
assessments therefor.
(c) Landlord shall perform the following services:
(i) landscaping, (ii) snow and ice removal and
(iii) janitorial service to the Premises in accordance with
the Janitorial Specifications attached hereto as Exhibit E, five
days per week except for Building Holidays, after 6:00 p.m., Monday
through Friday. The cost of the services provided by Landlord
pursuant to this Subsection 12(c) shall be included as part of
Operating Expenses.
13
(d) Landlord shall not be liable for any damages
to Tenant resulting from the quality, quantity, failure,
unavailability or disruption of any services beyond the reasonable
control of Landlord and the same shall not constitute a termination
of this Lease or an actual or constructive eviction or entitle
Tenant to an abatement of rent. Landlord shall not be responsible
for providing any services not specifically provided for in this
Lease.
13. Governmental Regulations . Tenant shall comply with
all laws, ordinances, notices, orders, rules, regulations and
requirements of all federal, state and municipal government or any
department, commission, board of officer thereof, or of the
National Board of Fire Underwriters or any other body exercising
similar functions, relating to the Premises or to the use or manner
of use of the Property. Tenant shall not knowingly do or commit, or
suffer to be done or committed anywhere in the Building, any act or
thing contrary to any of the laws, ordinances, regulations and
requirements referred to in this Section. Tenant shall give
Landlord prompt written notice of any accident in the Premises and
of any breakage, defect or failure in any of the systems or
equipment servicing the Premises or any portion of the
Premises.
14. Alterations, Additions and Fixtures .
(a) Tenant shall have the right to install in the Premises any
trade fixtures; provided, however, that no such installation and no
removal thereof shall be permitted which affects any structural
component or operating system of the Building or Premises and that
Tenant shall repair and restore any damage or injury to the
Premises or the Property caused by installation or removal.
(b) Tenant shall not make or permit to be made any alterations,
improvements or additions to the Premises or Property without on
each occasion first presenting plans and specifications to Landlord
and obtaining Landlord’s prior written consent, which shall
not be unreasonably withheld or delayed, but may be conditioned
upon compliance with reasonable requirements of Landlord as
provided in this Lease. If Landlord consents to any proposed
alterations, improvements or additions, then Tenant at
Tenant’s sole cost and expense, may make the proposed
alterations, improvements and additions provided that:
(i) Tenant supplies any necessary permits; (ii) such
alterations and improvements do not, in Landlord’s judgment,
impair the structural strength of the Building or any other
improvements or reduce the value of the Property; (iii) Tenant
takes or causes to be taken all steps that are otherwise required
by Section 15 of this Lease and that are required or permitted
by law in order to avoid the imposition of any mechanic’s,
laborer’s or materialman’s lien upon the Building or
the Property; (iv) Tenant uses a contractor approved by
Landlord such approval not to be unreasonably withheld, conditioned
or delayed; (v) the occupants of the Building and of any
adjoining real estate owned by Landlord are not annoyed or
disturbed by such work; (vi) the alterations, improvements or
additions shall be installed in accordance with the approved plans
and specifications and completed according to a construction
schedule approved by Landlord such approval not to be unreasonably
withheld, conditioned or delayed; and (vii) Tenant provides
insurance of the types and coverage amounts required by Landlord.
Any and all alterations, improvements and additions to the Premises
which are constructed, installed or otherwise made by Tenant shall
be the property of Tenant until the expiration or sooner
termination of this Lease; at that time all such alterations and
additions shall remain on the Premises and become the property of
Landlord without payment by Landlord unless, upon the termination
of this Lease, Landlord instructs Tenant in writing to
14
remove the same in which event Tenant will remove
such alterations, improvements and additions, and repair and
restore any damage to the Property or the Premises caused by the
installation or removal. Notwithstanding anything to the contrary
contained in this Lease, Landlord may withhold its approval to any
proposed alterations, additions or improvements to the Premises in
its absolute and sole discretion with respect to any such
alteration, addition or improvement which Landlord determines
involves any modification to the Building’s exterior or its
structural, electrical, mechanical or plumbing systems or any
components thereof.
15. Mechanic’s Liens .
(a) Tenant covenants that it shall not (and has no authority to)
create or allow any encumbrance against the Premises, the Property,
or any part of any thereof or of Landlord’s interest
therein.
(b) Tenant covenants that it shall not suffer or permit to be
created, or to remain, any lien or claim thereof (arising out of
any work done or services, material, equipment or supplies
furnished for or at the request of Tenant or by or for any
contractor or subcontractor of Tenant, other than such furnished by
Landlord) which is or may become a lien upon the Premises, the
Property, or any part of any thereof or the income therefrom or any
fixture, equipment or similar property therein.
(c) If any lien or claim shall be filed, Tenant shall within ten
(10) days after the filing thereof, cause the same to be
discharged of record by payment, deposit, bond or otherwise. If
Tenant shall fail to cause such lien or claim to be discharged and
removed from record within that period, then, without obligation to
investigate the validity thereof and in addition to any other right
or remedy Landlord may have, Landlord may, but shall not be
obligated to, contest the lien or claim or discharge it by payment,
deposit, bond or otherwise; and Landlord shall be entitled, if
Landlord so decides, to compel the prosecution of an action for the
foreclosure of such lien by the lienor and to pay the amount of the
judgment in favor of the lienor with interest and costs. Any
amounts so paid by Landlord and all costs and expenses, including
attorneys’ fees, incurred by Landlord in connection
therewith, together with Interest from the respective dates of
Landlord’s making of the payment or incurring of the cost or
expense, shall constitute Additional Rent payable by Tenant under
this Lease and shall be paid by Tenant to Landlord promptly on
demand.
(d) Notwithstanding anything to the contrary in this Lease or in
any other writing signed by Landlord, neither this Lease nor any
other writing signed by Landlord shall be construed as evidencing,
indicating, or causing an appearance that any erection,
construction, alteration or repair to be done, or caused to be
done, by Tenant is or was in fact for the immediate use and benefit
of Landlord. Further, notwithstanding anything contained herein to
the contrary, nothing contained in or contemplated by this Lease
shall be deemed or construed in any way to constitute the consent
or request on the part of Landlord for the performance of any work
or services or the furnishing of any materials for which any lien
could be filed against the Premises or the Property or any part of
any thereof, nor as giving Tenant any right, power, or authority to
contract for or permit the performance of any work or services or
the furnishing of any materials for which any lien could be filed
against the Premises, the Property or any part of any thereof.
15
16. Negative Covenants of Tenant
.
(a) System Changes . Supplementing the provisions of
Section 14 above, Tenant shall not install any equipment of
any kind or nature whatsoever which would or could, in
Landlord’s judgment, necessitate any change, replacement or
addition to (or which might cause damage to) the plumbing, heating,
air-conditioning or electrical systems serving the Premises or any
other portion of the Building without the prior written consent of
Landlord. In the event such consent is granted, all costs in
connection with such changes, replacements or additions shall be
paid for by Tenant in advance.
(b) Sales . Without the prior written consent of
Landlord, Tenant shall not exhibit, sell or offer for sale (or
permit the exhibition, sale or offering for sale) in the Premises,
or at the Property, any article or thing except those articles and
things connected with the Permitted Use of the Premises by
Tenant.
(c) Prohibited Uses . Tenant will not make or permit to
be made any use of the Premises or any part thereof which would
violate any of the covenants, agreements, terms, provisions and
conditions of this Lease or which directly or indirectly is
forbidden by public law, ordinance or governmental regulation or
which may be dangerous to life, limb or property or which may
invalidate or increase the premium cost of any policy of insurance
carried on the Property or covering its operation or which will
suffer or permit the Premises or any part thereof to be used in any
manner or which would permit anything to be brought into or kept
therein which, in the judgment of Landlord, would in any way impair
or tend to impair the character, reputation or appearance of the
Building as a high quality office building or which would impair or
interfere with or tend to impair or interfere with any of the
services performed by Landlord for the Building or which could
threaten the safety of the Building or any of its occupants.
(d) Signs . Tenant shall not be permitted to place signs
or logos on the exterior of the Building and/or on monuments
located at the Property except with Landlord’s prior written
consent. In the event Landlord consents to the erection of such
signage, Tenant shall be solely responsible for all costs and
expenses associated with the erection of any signs and shall be
obligated to obtain and provide to Landlord any and all necessary
permits and approvals prior to the placement or erection of such
signs, including any approvals that may be required pursuant to the
Declaration. The listing by Landlord of any name other than that of
Tenant, whether on the doors of the Premises, on the directory of
the Building or otherwise, shall not operate to vest any right or
interest in this Lease or in the Premises or be deemed to be the
written consent of Landlord mentioned in Section 24 hereof, it
being expressly understood that any such listing is a privilege
extended by Landlord and revocable at will by written notice to
Tenant. Notwithstanding the foregoing, Tenant shall have the right
to place its name and logo on the entrances to its Premises and on
the Building lobby directory, all of which signs and logos comply
with Landlord’s Building signage criteria.
(e) Advertising . Without Landlord’s prior written
consent in each instance, Tenant shall not: (1) advertise the
business, profession or activities of Tenant conducted at the
Premises in any manner which violates the letter or spirit of any
code of ethics adopted by any recognized association or
organization pertaining to such business, profession or activities;
or (2) use the name of the Building for any purpose other than
that of the business address of Tenant; or (3) use any picture or
likeness of the Building in any circulars, notices, advertisements
or correspondence.
16
(f) Locks . Locks or similar devices may
only be attached to or removed from any door or window in the
Premises with Landlord’s prior written consent.
(g) Hazardous Substances .
(i) Tenant’s Warranty . Tenant represents, warrants
and covenants that (1) the Premises will not be used by Tenant
or its employees, licensees, agents, sublessees or contractors
("Tenant Parties") for any dangerous, noxious or offensive trade or
business and that Tenant Parties will not cause or maintain a
nuisance there, (2) Tenant Parties will not bring, generate,
treat, store or dispose of Hazardous Substances (as hereinafter
defined) at the Premises, (3) Tenant Parties shall at all
times comply with all Environmental Laws (as hereinafter defined)
and shall cause the Premises to comply, and (4) Tenant will
keep the Premises free of any lien imposed pursuant to any
Environmental Laws by reason of Tenant’s breach of any of the
foregoing warranties and covenants. "Premises" for purposes of this
Subsection 16(g) shall include the Building and the Property,
including parking areas. Landlord represents and warrants that, to
its knowledge, there are no Hazardous Substances on, about or
beneath the Premises in violation of applicable Environmental
Law.
(ii) Reporting Requirements . Tenant warrants that it
will promptly deliver to the Landlord, (i) copies of any
documents received from the United States Environmental Protection
Agency and/or any state, county or municipal environmental or
health agency concerning the Tenant’s operations upon the
Premises, (ii) copies of any documents submitted by the Tenant
to the United States Environmental Protection Agency and/or any
state, county or municipal environmental or health agency
concerning its operations on the Premises, including but not
limited to copies of permits, licenses, annual filings and
registration forms, and (iii) upon the request of Landlord,
Tenant shall provide Landlord with evidence of compliance with
Environmental Laws.
(iii) Termination, Cancellation, Surrender . At the
expiration or earlier termination of this Lease, Tenant shall
surrender the Premises to Landlord free of any and all
Environmental Defaults (defined below).
(iv) Environmental Defaults . An "Environmental Default"
shall mean the occurrence of any one or more of the following:
(1) a breach of Tenant’s warranty contained in
Subsection l6(g)(i), above, (2) a release, spill or discharge
of a Hazardous Substance on or from the Premises by any Tenant
Parties, or (3) the discovery of an environmental condition
requiring response which violation, release, or condition is
attributable to the acts or omissions of any Tenant Parties, or
(4) an emergency environmental condition caused by or
attributable to any Tenant Parties. Upon occurrence of an
Environmental Default, 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 violation,
release, or environmental condition, or if the Landlord deems it
necessary, then Landlord may perform, at Tenant’s expense,
any lawful actions necessary to address the violation, release, or
environmental condition.
17
(v) Tenant’s Indemnification .
Tenant shall indemnify, defend (with counsel approved by Landlord)
and hold Landlord and Landlord’s affiliates, shareholders,
directors, officers, employees and agents harmless from and against
any and all claims, judgments, damages (including consequential
damages), penalties, fines, liabilities, losses, suits,
administrative proceedings, costs and expense of any kind or
nature, known or unknown, contingent or otherwise, which arise at
any time during or after the Term (including, but not limited to,
attorneys’, consultant, laboratory and expert fees and
including without limitation, diminution in the value of the
Building or Property, damages for the loss or restriction on use of
rentable space or of any amenity of the Building or Park and
damages arising from any adverse impact on marketing of space in
the Building), arising from or related to the occurrence of one or
more Environmental Defaults during the Term.
(vi) Definitions .
(1) " Hazardous Substances " means, (i) asbestos and
any asbestos containing material and any substance that is then
defined or listed in, or otherwise classified pursuant to, any
Environmental Laws or any applicable laws or regulations 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, (ii) 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 (iii) petroleum products, polychlorinated
biphenyls, urea formaldehyde, radon gas, radioactive material
(including any source, special nuclear, or by-product material),
and medical waste.
(2) " Environmental Laws " collectively means and
includes all present and future laws and any amendments thereto
(whether common law, statute, rule, order, regulation or
otherwise), permits, and other requirements or guidelines of
governmental authorities applicable to the Premises and relating to
the environment and environmental conditions or to any Hazardous
Substance (including, without limitation, CERCLA, 42 U.S.C.
§601, et seq., the Resource Conservation and Recovery Act of
1976, 42 U.S.C. §901, et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. §801, et seq., the Federal Water
Pollution Control Act, 33 U.S.C. §51, et seq., the Clean Air
Act, 33 U.S.C. §401, et seq., the Clean Air Act, 42 U.S.C.
§41, et seq., the Toxic Substances Control Act, 15 U.S.C.
§601-2629, the Safe Drinking Water Act, 42 U.S.C.
§300f-300j, the Emergency Planning and Community Right-to-Know
Act, 42 U.S.C. § 101, et seq., and any so-called "Super Fund"
or "Super Lien" law, any law requiring the filing of reports and
notices relating to hazardous substances, environmental laws
administered by the Environmental Protection Agency, and any
similar state and local laws and regulations, all amendments
thereto and all regulations, orders, decisions, and decrees now or
hereafter promulgated thereunder concerning the environment,
industrial hygiene or public health or safety).
(3) Survival . The provisions of this Section 16(g)
shall survive any termination of this Lease or the expiration of
the Term.
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(h) Floor Load . Tenant shall not place or
permit to be placed upon any floor of the Premises any item of any
nature the weight of which shall exceed such floor’s rated
floor load limit of 100 pounds per square foot live load (including
partitions) unless additional floor loads are approved in writing
by Landlord in advance.
17. Landlord’s Right of Entry .
(a) Tenant shall permit Landlord and the authorized
representatives of Landlord and of any mortgagee or any prospective
mortgagee to enter the Premises at all reasonable times, with prior
notice to Tenant, for the purpose of (i) inspecting the
Premises or (ii) making any necessary repairs to the Premises
or to the Building and performing any work therein. During the
progress of any work on the Premises or the Building, Landlord will
attempt not to inconvenience Tenant, but shall not be liable for
inconvenience, annoyance, disturbance, loss of business or other
damage to Tenant by reason of making any repair or by bringing or
storing materials, supplies, tools and equipment in the Premises
during the performance of any work, and the obligations of Tenant
under this Lease shall not be thereby affected in any manner
whatsoever.
(b) Landlord shall have the right at all reasonable times, with
prior notice to Tenant, to enter and to exhibit the Premises for
the purpose of inspection or showing the Premises in connection
with a sale or mortgage and, during the last twelve
(12) months of the Term, to enter upon and to exhibit the
Premises to any prospective tenant.
(c) If the Premises are vacated or abandoned by Tenant during
the last twelve (12) months of the Term, Landlord shall be
permitted to show the Premises and to prepare the Premises for
re-occupancy without affecting Tenant’s obligation to pay
rent hereunder.
18. Damage by Fire or Other Casualty .
(a) If the Premises or Building is damaged or destroyed by fire
or other casualty, Tenant shall promptly notify Landlord whereupon
Landlord shall, subject to the consent of Landlord’s present
or future mortgagee and to the conditions set forth in this
Section 18, repair, rebuild or replace such damage and restore
the Premises to substantially the same condition as the Premises
were in immediately prior to such damage or destruction; provided,
however, that Landlord shall only be obligated to restore such
damage or destruction to the extent of the proceeds of fire and
other extended coverage insurance policies. Notwithstanding the
foregoing, if the Premises is destroyed or damaged to the extent
that in Landlord’s sole judgment the Premises cannot be
repaired or restored within one hundred eighty (180) days
after such casualty, Landlord may terminate this Lease by written
notice to Tenant within ninety (90) days after the date of
such casualty.
(b) The repair, rebuilding or replacement work shall be
commenced promptly and completed with due diligence, taking into
account the time required by Landlord to effect a settlement with,
and procure insurance proceeds from, the insurer, and for delays
beyond Landlord’s reasonable control.
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(c) The net amount of any insurance proceeds
recovered by reason of the damage or destruction of the Building
(meaning the gross insurance proceeds excluding proceeds received
pursuant to a rental coverage endorsement and the cost of adjusting
the insurance claim and collecting the insurance proceeds) shall be
applied towards the cost of restoration. Notwithstanding anything
to the contrary in this Lease, if in Landlord’s sole opinion
the net insurance proceeds will not be adequate to complete such
restoration, Landlord shall have the right to terminate this Lease
and all the unaccrued obligations of the parties hereto by sending
a written notice of such termination to Tenant specifying a
termination date no less than ten (10) days after its
transmission; provided, however, that Tenant may require Landlord,
except during the last two (2) years of the Term, to withdraw
the notice of termination by agreeing to pay the cost of
restoration in excess of the net insurance proceeds and by giving
Landlord adequate security for such payment prior to the
termination date specified in Landlord’s notice of
termination. If the net insurance proceeds are more than adequate,
the amount by which the net insurance proceeds exceed the cost of
restoration will be retained by Landlord or applied to repayment of
any mortgage secured by the Premises.
(d) Landlord’s obligation or election to restore the
Premises under this Section or to terminate this Lease shall be
subject to the terms of any present or future mortgage affecting
the Premises and to the mortgagee’s consent if required in
the mortgage and shall not, in any event, include the repair,
restoration or replacement of the fixtures, improvements,
alterations, furniture or any other property owned, installed, made
by, or in the possession of Tenant.
(e) If Tenant is dispossessed of the Premises due to fire or
other casualty, Tenant will receive a pro-rata abatement of its
Fixed Basic Rent during the period Tenant is dispossessed to the
extent of such dispossession.
19. Non-Abatement of Rent . Except as otherwise expressly
set forth in this Lease, there shall be no abatement or reduction
of the Fixed Basic Rent, Additional Rent or other sums payable
under this Lease for any cause whatsoever and this Lease shall not
terminate, nor shall Tenant be entitled to surrender the Premises,
in the event of fire, casualty or condemnation or any default by
Landlord under this Lease.
20. Indemnification . Unless such loss, costs or damages
were caused by negligence of Landlord, its employees, agents or
contractors, Tenant hereby agrees to indemnify, defend and hold the
Landlord and its employees, agents and contractors harmless from
any loss, costs and damages (including reasonable attorney’s
fees and costs) suffered by Landlord, its agents, employees or
contractors, as a result of any claim by a third party, its agents,
employees or contractors arising from Tenant’s negligent use
of the Premises. Tenant shall have the right to designate counsel
acceptable to Landlord, such approval not to be unreason
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