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Exhibit 10.19
S TANDARD O FFICE L
EASE
841 PRUDENTIAL DRIVE
1
INDEX
TO
STANDARD OFFICE LEASE
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Page No.
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BASIC LEASE INFORMATION RIDER
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3
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PREMISES; COMMON AREAS
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6
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LEASE TERM LEASE
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6
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RENT
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7
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SECURITY DEPOSIT
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11
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USE
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11
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ACCEPTANCE OF PREMISES; LANDLORD’S WORK
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12
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PARKING
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12
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BUILDING SERVICES
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13
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SECURITY
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15
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REPAIRS, MAINTENANCE AND UTILITIES
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15
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TENANT’S ALTERATIONS
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16
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LANDLORD’S ADDITIONS AND ALTERATIONS
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16
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ASSIGNMENT AND SUBLETTING
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16
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TENANT’S INSURANCE COVERAGE
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19
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LANDLORD’S INSURANCE COVERAGE
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21
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WAIVER OF RIGHT OF RECOVERY
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21
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DAMAGE OR DESTRUCTION BY CASUALTY
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21
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CONDEMNATION AND EMINENT DOMAIN
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22
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LIMITATION OF LANDLORD’S LIABILITY; INDEMNIFICATION
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22
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RELOCATION OF TENANT
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23
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COMPLIANCE WITH LAWS AND PROCEDURES
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23
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RIGHT OF ENTRY
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23
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DEFAULT
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24
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LANDLORD’S REMEDIES FOR TENANT’S DEFAULT
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25
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LANDLORD’S RIGHT TO PERFORM FOR TENANT’S ACCOUNT
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25
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LIENS
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25
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NOTICES
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26
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MORTGAGE; ESTOPPEL CERTIFICATE; SUBORDINATION
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26
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ATTORNMENT AND MORTGAGEE’S REQUEST
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27
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TRANSFER BY LANDLORD
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27
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SURRENDER OF PREMISES; HOLDING OVER
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27
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NO WAIVER; CUMULATIVE REMEDIES
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28
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WAIVER
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28
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CONSENTS AND APPROVALS
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29
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RULES AND REGULATIONS
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29
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SUCCESSORS AND ASSIGNS
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29
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QUIET ENJOYMENT
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29
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ENTIRE AGREEMENT
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29
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HAZARDOUS MATERIALS
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29
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BANKRUPTCY PROVISIONS
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31
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MISCELLANEOUS
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32
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TELECOMMUNICATIONS
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34
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NO CONSEQUENTIAL DAMAGES
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35
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MONITORING, INSPECTING AND REMEDIATING MOLD
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35
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MOVING ALLOWANCE
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36
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SIGNAGE
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36
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EXHIBIT(S)
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Exhibit "A"
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Floor Plan
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38
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Exhibit "B"
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Work Letter
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39
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Exhibit "C"
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Rules and Regulations
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42
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Exhibit "D"
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Memorandum of Commencement Date
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45
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Exhibit "E"
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Renewal Option
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46
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Exhibit "F"
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Right of First Offer
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47
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Exhibit "G"
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Exclusions of Operating Costs
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50
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2
B ASIC L
EASE I NFORMATION R IDER
S TANDARD O FFICE L
EASE
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Preamble
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Date of Lease: December 1, 2006
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Preamble
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Landlord: SOUTH SHORE GROUP PARTNERS,
LLC
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Preamble
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Tenant: MSC - MEDICAL SERVICES COMPANY
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Section 1
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Premises: Suites 1700, as shown on Exhibit "A",
located on the 7th, 8th, 9th and 17th floors of the office building
at 841 Prudential Drive in Jacksonville, Florida, together with the
garage parking facilities included therein are collectively
referred to as the "Building".
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Section2
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Rentable Area of Premises: approximately 100,000
square feet measured in accordance with BOMA Standards, which is
stipulated and agreed by the parties as follows: 17th floor (16,283
rentable square feet); 7th floor (41,754) rentable a square feet);
8th (24,415 rentable square feet ); and 9th floor (15,433 rentable
square feet).
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In addition, Tenant shall lease 1,911 square feet
of storage space in the Basement and 1,280 square feet of storage
space on the 20th floor of the Building.
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Section 3
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Commencement Date: The Commencement Date shall be
the later of (a) May 1, 2007; or (b) upon the date of
Landlord’s substantial completion of the Tenant
Improvements.
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Section 4
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Expiration Date: The last day of the ninety
fourth (94th) month after the Commencement Date.
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Section 5
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Lease Term: Ninety Four (94) months after the
Commencement Date. Once the Commencement Date is determined the
parties shall complete and execute the Memorandum of Commencement
Date attached hereto as Exhibit "D."
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Section 6
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Prepaid Rent: $139,649.27 one month’s Gross
Rent, (together with 7% sales tax).
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Section 7
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Base Rent during the Lease Term shall be payable
in monthly installments as follows:
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Base Rent for 17th, 7th, 8
th and 9th
floors:
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Months
1-10
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Rent Abated.
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Months 11-
24
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$16.00 per rentable square foot
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Months
25-36
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$16.75 per rentable square foot
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Months
37-48
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$17.75 per rentable square foot
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Months
49-60
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$18.25 per rentable square foot
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Months
61-72
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$18.75 per rentable square foot
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Months
73-84
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$19.25 per rentable square foot
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Months
85-94
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$19.75 per rentable square foot
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Base Rent for Basement and 20th Floor Storage
space:
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Months
1-10
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Rent Abated
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Months
11-94
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$5.00 per rentable square foot.
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Section 8
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This Lease is a full service Lease. Operating
Costs include electricity to Tenant’s Premises for
Tenant’s standard business operations.
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Base Expense Year: 2007
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Base Tax Year: 2007
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Section 9
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Tenant’s Share: 17.48%. Landlord and Tenant
acknowledge that Tenant’s Share has been obtained by taking
the Rentable Area of the Premises and dividing such number by
515,015 square feet, and multiplying such quotient by 100. In
the
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event Tenant’s Share is changed during a
calendar year by reason of a change in the Rentable Area of the
Premises, Tenant’s Share shall thereafter mean the result
obtained by dividing the new Rentable Area of the Premises by
515,015 and multiplying such quotient by 100.
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Section 10
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Security Deposit: N/A
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Section 11
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Use of Premises: general office use.
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Section 12
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Tenant’s Address for Notices Prior to
Commencement Date:
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MSC - Medical Services Company
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841 Prudential Drive, Suite 1700
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Jacksonville, Florida 32207
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Attn: CEO and General Counsel
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Tenant’s Address for Notices after
Commencement Date:
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MSC - Medical Services Company
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841 Prudential Drive, Suite 1700
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Jacksonville, Florida 32207
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Attn: CEO and General Counsel
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Landlord’s Address for Notices:
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South Shore Group Partners, LLC
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c/o SSGP of Florida, LLC
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841 Prudential Drive, Suite 150
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Jacksonville, Florida 32207
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Attn: Elizabeth W. Reichert
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Copy to:
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South Shore Group Partners, LLC
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5332 SW Orchid Bay Drive
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Palm City, Florida 34990
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Attn: Harold R. Dodt
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Copy to:
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Kelley & Warren, P.A.
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1555 Palm Beach Lakes, Blvd., Suite
1006
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West Palm Beach, Florida 33401
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Attn: Richard B. Warren, Esquire
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Section 13
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Landlord shall provide Tenant with 690 parking
spaces. Twenty percent (20%) of Tenant’s parking allotment
shall be in the On Site Parking Garage and the remainder shall be
in the Main Surface Lot. The cost of parking shall be included as a
component of Base Rent.
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The Landlord shall provide visitor parking spaces
on the ground floor of the on-site parking garage. Landlord may
charge a fee for visitor parking as reasonably determined by
Landlord in its sole discretion.
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Section 14
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Amount of General Comprehensive Liability
Insurance: As provided in Section 14 of the Lease.
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Section 15
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Landlord’s Real Estate Broker: CB Richard
Ellis, Inc. (Eric Ramirez)
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Tenant’s Real Estate Broker: CB Richard
Ellis, Inc. (Oliver Barakat)
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Section 16
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Guarantor: N/A
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4
IN WITNESS WHEREOF , Landlord and
Tenant have signed this BLI Rider as of this 4 th day of December,
2006.
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WITNESSES:
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TENANT:
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/s/ Timothy A. Crass
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MSC - MEDICAL SERVICES COMPANY,
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Print Name:
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Timothy A. Crass
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a Florida corporation
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/s/ Kevin M. Bass
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/s/ Joseph P. Delaney
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Print Name:
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Kevin M. Bass
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By:
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Joseph P. Delaney
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(As to Tenant)
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Its:
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President, CEO
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WITNESSES:
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LANDLORD
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SOUTH SHORE GROUP PARTNERS
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/s/ Jimmie Nettles
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GROUP, LLC,
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Print Name:
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Jimmie Nettles
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a Delaware limited liability company
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/s/ Harold R. Dodt
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/s/ Shelley A. Dodt
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By:
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Harold R. Dodt
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Print Name:
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Shelley A. Dodt
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Its:
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VP
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(As to Landlord)
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5
STANDARD OFFICE
LEASE
THIS LEASE ("Lease") is made as of the 4 th day of December, 2006 by and
between SOUTH SHORE GROUP PARTNERS, LLC, a Delaware limited
liability company ("Landlord") and MSC - MEDICAL SERVICES
COMPANY , a Florida corporation ("Tenant").
W I T N E S S E T H:
1. PREMISES; COMMON AREAS.
Landlord leases to Tenant and Tenant leases from Landlord the
Premises described in the Basic Lease Information Rider (the "BLI
Rider") attached to the front of this Lease and incorporated into
this Lease by this reference, and as more particularly shown on the
floor plan attached hereto as Exhibit "A" and by this reference
incorporated herein ("Premises"). The parties hereby agree that the
Premises contain the Rentable Area set forth in the BLI Rider in
accordance with the methods of calculating areas and volumes of
buildings, as promulgated by BOMA standards. Landlord and Tenant
acknowledge and accept the square footage as set forth in the Lease
and neither Landlord nor Tenant shall have the right to demand
remeasurement or recalculation of the Rentable Square Feet amounts
within the Building or the Premises. In addition to the Premises,
Tenant has the right to use, in common with others, the lobby,
public entrances, public stairways, public areas, restrooms and
public elevators of the Building (the "Common Areas"). The Common
Areas serving the Building, will at all times be subject to
Landlord’s exclusive control and management in accordance
with the terms and provisions of this Lease. The Premises and the
building within which the Premises are located (the "Building") are
located on a tract of land, which includes Common Areas. The
Building including the Common Areas and the underlying land shall
hereinafter be referred to as the "Project."
2. LEASE TERM, LEASE DATE;
TERMINATION OPTION
A. Lease Term: Lease Date. The lease term ("Lease Term")
is for the period of time set forth in the BLI Rider, commencing on
the Lease commencement date set forth in the BLI Rider
("Commencement Date") and ending on the Lease expiration date set
forth in the BLI Rider ("Expiration Date"). Tenant’s
obligation to pay all rent, including Base Rent, Overhead Rent and
Additional Rent, as such terms are hereinafter defined, will
commence on the Commencement Date.
B. Termination Option, Eighth Floor During Calendar Year 2007
In Accordance With the Terms of this Section 2B. Tenant
shall have the option to terminate this Lease as to the eighth (8
th ) floor
only during the calendar year 2007. In the event Tenant elects to
exercise this option, Tenant shall provide Landlord with not less
than thirty (30) days written notice of its intent to
terminate the Lease as to the eighth (8 th ) floor (the "Termination
Notice"). The Termination Notice must be delivered prior to
November 30, 2007. Upon exercising this Termination Option,
Tenant shall vacate and surrender the eighth (8
th ) floor in
its entirety not sooner than thirty (30) days after delivering
the Termination Notice. Tenant shall surrender possession in
accordance with Section 31 of the Lease. Upon timely
exercising this Termination Option and timely surrendering
possession of the eighth (8 th ) floor in accordance with
this Section, the Lease shall terminate as to the eighth (8
th ) floor
only effective the date Tenant surrenders possession and the
parties shall enter into a written amendment to the Lease adjusting
tenant’s Rent obligations accordingly. Tenant shall be
obligated to pay Rent for the eighth (8 th ) floor up through the date
of surrender, including Operating Costs reconciliations as set
forth below.
C. Termination Option, Eighth Floor During Calendar Year 2008
In Accordance With the Terms of this Section 2C. Tenant
shall have the option to terminate this Lease as to the eighth (8
th ) floor
only during the calendar year 2008. In the event Tenant elects to
exercise this option, Tenant shall provide Landlord with not less
than thirty (30) days written notice of its intent to
terminate the Lease as to the eighth (8 th ) floor (the "Termination
Notice") along with a termination penalty in the amount equal to
two years Base Rent for the eighth (8 th ) floor (the "Termination
Penalty"). The Termination Notice must be delivered prior to
November 30, 2008. Upon exercising this Termination Option,
Tenant shall vacate and surrender the eighth (8
th ) floor in
its entirety not sooner than thirty (30) days after delivering
the Termination Notice and Termination Penalty. Tenant shall
surrender possession in accordance with Section 31 of the
Lease. Upon timely exercising this Termination Option, timely
payment of the Termination Penalty and timely surrendering
possession of the eighth (8 th ) floor in accordance with
this Section, the Lease shall terminate as to the eighth (8
th ) floor
only effective the date Tenant surrenders possession and the
parties shall enter into a written amendment to the Lease adjusting
tenant’s Rent obligations accordingly. Tenant shall be
obligated to pay Rent for the eighth (8 th ) floor up through the date
of surrender, including Operating Costs reconciliations as set
forth below.
D . Termination Option, Basement and 20 th Floor Storage Space.
Tenant shall have the option to terminate this Lease as to the
Basement and/or 20 th Floor Storage Space upon thirty days prior written notice to
Landlord. Upon Landlord’s receipt of said termination notice
the Lease shall terminate as to the Basement and/or 20
th Floor Storage
Space identified in the termination notice effective the date
Tenant surrenders possession and the parties shall enter into a
written amendment to the
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Lease adjusting the Rent obligations accordingly.
Tenant shall be obligated to pay Rent for the surrendered space up
through the date of surrender.
E. Commencement Date. . In the event Tenant is unable to
occupy the Premises by May 1, 2007 as a result of a Landlord
Delay, Tenant shall receive $1,233.33 per day if such delay occurs
for less than the first ten (10) days of any month. If such
delay occurs for more than the first ten (10) of any month,
Tenant shall receive the full monthly payment of $37,000.00 for the
entire month. A Landlord Delay is defined as a delay due to matters
within the functional control of Landlord (including prior
Tenant’s failure to timely vacate 7 th and/or 8 th floor) and shall not include
matters such as acts of god, strikes, weather or a Tenant Delay.
Tenant Delays are defined as each day of delay in the performance
of the Work that occurs (a) because of Tenant’s failure
to timely deliver or approve any required documentation such as the
Space Plan or Working Drawings, (b) because Tenant fails to
timely furnish any information or deliver or approve any required
documents such as the Space Plan, Working Drawings (whether
preliminary, interim revisions or final), pricing estimates,
construction bids, and the like, to the extent these items are the
responsibility of the Tenant, (c) because of any material
change by Tenant to the Space Plan or Working Drawings subsequent
to initial submission and approval of same, (d) because Tenant
fails to attend any meeting with Landlord, the Architect, any
design professional, or any contractor, or their respective
employees or representatives, as may reasonably be required or
scheduled hereunder or otherwise necessary in connection with the
preparation or completion of any construction documents, such as
the Space Plan, Working Drawings, or in connection with the
performance of the Work (after Tenant has been given reasonable
notice of such meeting) , or (e) because a Tenant Party
otherwise delays completion of the Work.
3. RENT
A. Base Rent . During the Lease Term, Tenant will pay as
the base rent for the Premises ("Base Rent") the amounts set forth
in the BLI Rider, with same being payable without demand, offset or
deduction, in advance, on or before the first day of each month, in
equal monthly installments of the amounts set forth in the BLI
Rider plus applicable sales and other such taxes as are now or
later enacted. Notwithstanding anything to the contrary in the BLI
Rider, however, Landlord and Tenant agree to the following
terms:
(1) Base Rent and Tenant’s Proportionate Share of
Operating Expenses (defined below) shall be conditionally abated
for the Premises during the first ten (10) months of the Term.
Commencing with the eleventh (11th) month of the Term, Tenant
shall make Base Rent payments as otherwise provided in the Lease
for the Premises.
(2) Notwithstanding such abatement of Rent any increases in Base
Rent set forth in the Lease shall occur on the dates scheduled
therefor. The abatement of Base Rent bargained for is conditioned
upon Tenant’s full and timely performance of all of its
obligations under the Lease. If at any time during the Term an
Event of a Monetary Default by Tenant occurs which has not been
cured within five (5) business days following receipt of
written notice thereof, then the abatement of Base Rent provided
for shall immediately become void, and Tenant shall promptly pay to
Landlord, in addition to all other amounts due to Landlord under
this Lease, the full amount of all Base Rent herein abated.
B. Operating Costs .
(1) Subject to the provisions of this Lease, if Operating Costs
(defined below) for the Project for any calendar year increase over
the Base Year Operating Costs, Tenant shall pay to Landlord,
pursuant to this Section 3.B, as additional rent, an amount
equal to Tenant’s Proportionate Share (defined below)of any
increase, plus all applicable Sales Tax thereon.
(2) " Outside Common Area " refers to all those areas
within the Project that are not within any building or not part of
any building or its foundation, and including within the definition
of building all outside stair entries, equipment rooms and
equipment shelters used in common by tenants of that building. The
Outside Common Area shall include, but not be limited to,
landscaped areas, planters, walkways, parking and driveway areas
and the surfaces thereof, grass areas, drainage devices, monument
signs, bicycle racks and flagpoles, if any. All tenants and their
invitees shall have the non-exclusive right to the use and
enjoyment of the public portions of the Outside Common Area in
conjunction with other owners, tenants and their invitees within
the Project, subject to the rules and regulations of Landlord and
any covenants, conditions and restrictions currently or hereinafter
recorded against the Land.
(3) " Tenant’s Proportionate Share " of Operating
Costs is, subject to the provisions of this Section 3, the
percentage number described in Item Section 9 of the Basic Lease
Provisions BLI Rider. Tenant’s Proportionate Share represents
a fraction, the numerator of which is the number of square feet of
rentable area in the Premises specified in Item Section 2 of the
Basic Lease Provisions BLI Rider, and the denominator of which is
the number of square feet of rentable area in the
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Project, as reasonably determined by Landlord
which shall not be less than 515,015 square feet. Tenant’s
Proportionate Share of Operating Costs shall be deemed "Additional
Rent" pursuant to the Lease.
(4) Base Operating Costs means Operating Costs for the
base year as described in Section 8 of the BLI Rider.
(5) " Operating Costs " means all costs, expenses and
obligations incurred or payable by Landlord because of or in
connection with the operation, ownership, repair, replacement,
restoration, management or maintenance of the Project, including
but not limited to the Outside Common Area, during or allocable to
any Expense Year during the term of this Lease, all as determined
by sound accounting principles generally consistent with the
practice of institutional office project owners consistently
applied, including without limitation the following:
(6) The cost of all utilities (including taxes and other charges
incurred in connection therewith), fuel, supplies, equipment,
tools, materials, service contracts, janitorial services, waste and
refuse disposal, gardening and landscaping, and insurance (with the
nature and extent of such insurance to be carried by Landlord to be
determined by Landlord in its sole and absolute discretion);
compensation and other fringe benefits of all persons (including
independent contractors) who perform services connected with the
operation, maintenance or repair of the Project, personal property
taxes on and maintenance and repair of equipment and other personal
property used in connection with the operation, maintenance or
repair of the Project, costs incurred for administration and
management of the Project, whether by Landlord or by an independent
contractor, and other management office operational expenses
(including, without limitation, a management fee), rental expenses
for or a reasonable allowance for depreciation of, personal
property used in the operation, maintenance or repair of the
Project, license, permit and inspection fees (except for such fees
related to Tenant Improvements); and all inspections, activities,
alterations and improvements or other matters required by any
governmental or quasi-governmental authority or by applicable law,
for any reason (except for Tenant Improvements), including, without
limitation, capital improvements, whether capitalized or not; all
capital improvements made to the Project or any portion thereof by
Landlord (A) of a personal property nature and related to the
operation, repair, maintenance or replacement of systems,
facilities, equipment or components of, or which service the
Project or portions thereof, (B) required or provided in
connection with any law, ordinance, rule, regulation, or insurance
requirement enacted or enforced after the date of this Lease,
(C) which are designed to improve the operating efficiency of
the Project, or (D) determined by Landlord to be required to
keep pace or be consistent with safety or health advances or
improvements not commonly incorporated in office projects at the
time of initial construction of the Project [with such capital
costs to be amortized over such periods as Landlord shall determine
(but which shall be generally consistent with the practices of
institutional office project owners) with a return on capital at
such rate as would have been paid by Landlord on funds borrowed for
the purpose of constructing such capital improvements]; the cost of
air conditioning, heating, ventilating, plumbing, sign, electrical,
mechanical and elevator maintenance and repair, and common area
repair, resurfacing, replacement operation and maintenance;
security services, if any, deemed appropriate by Landlord, and any
other cost or expense incurred or payable by Landlord in connection
with the operation, ownership, repair, replacement, restoration,
management or maintenance of the Project.
(7) Operating Costs shall not include any costs described on
Exhibit "G" attached hereto (the "Excluded Operating costs").
(8) In the event Landlord furnishes any utility or service which
is included in Operating Costs to less than ninety-five percent
(95%) of the rentable area of the Property because
(i) the average occupancy of the Property for the year in
question was not equal to or greater than ninety-five percent
(95%), (ii) such utility or service is not required by or
provided to one or more of the tenants of the Property, or
(iii) any tenant occupant is itself obtaining or providing any
such utility or services, then Operating Costs for such year shall
be adjusted to include all additional costs, expenses and
disbursements that Landlord reasonably determines would have been
incurred if Landlord had provided such utilities and services to
all tenants of the Property, and shall be allocated among the
tenants by the Landlord to reflect those costs which would have
occurred had the Property been ninety-five percent
(95%) occupied during the year in question and such utilities
and services provided to all tenants. The intent of this section is
to ensure that the reimbursement of Operating Costs is fairly and
equitably allocated among the tenants receiving the utilities and
services in question.
(9) Prior to the commencement of (and from time to time during)
each calendar year of the term following the Commencement Date,
Landlord shall give to Tenant written estimates of Tenant’s
Proportionate Share of the projected excess, if any, of the
Operating Costs for the Project for such calendar year over the
Base Operating Costs. Commencing with the first day of the calendar
month following the month in which such estimate was delivered to
Tenant, Tenant shall pay such estimated amounts (less amounts, if
any, previously paid toward such excess for such year) to Landlord
in equal monthly installments over the remainder of such calendar
year, in advance on the first day of each month during such year
(or remaining months, if less than all of the year remains).
Subject to
8
the provisions of this Lease, Landlord shall
endeavor to furnish to Tenant within one hundred twenty
(120) days after the end of each calendar year, a statement
("Reconciliation Statement") indicating in reasonable detail the
Operating Costs for such period, and the parties shall, within
thirty (30) days thereafter, make any payment or allowance
necessary to adjust Tenant’s estimated payments to
Tenant’s actual share thereof as indicated by such annual
Reconciliation Statement. Any payment due Landlord shall be payable
by Tenant within ten (10) days of written demand from
Landlord. Any amount due Tenant shall be credited against
installments next becoming due under this
Section 3.9.
(10) Tenant shall pay ten (10) days before delinquency all
taxes and assessments levied against any personal property or trade
fixtures of Tenant in or about the Premises. If any such taxes or
assessments are levied against Landlord or Landlord’s
property or if the assessed value of the Project is increased by
the inclusion therein of a value placed upon such personal property
or trade fixtures, Tenant shall, within ten (10) days of
demand, reimburse Landlord for the taxes and assessments so levied
against Landlord, or any such taxes, levies and assessments
resulting from such increase in assessed value.
(11) Any delay or failure of Landlord in (i) delivering any
estimate or statement described in this Section 3, or
(ii) computing or billing Tenant’s Proportionate Share
of excess Operating Costs shall not constitute a waiver of its
right to subsequently deliver such estimate or statement, require
any increase in Rent contemplated by this Section 3, or in any
way waive or impair the continuing obligations of Tenant under this
Section 3. Without limiting the generality of the foregoing,
Landlord may at any time during the term hereof recalculate and
correct the amount of Tenant’s Proportionate Share of excess
Operating Costs applicable to any Expense Year during the term, and
Tenant shall pay any amount so recalculated or corrected within ten
(10) days of written demand by Landlord. Subject to the
provisions of this Section 3, provided that Tenant is not then
in default hereunder, Tenant shall have the right, for a period of
sixty (60) days following the delivery of such Reconciliation
Statement (or any statement recalculating or revising the same),
after reasonable notice to Landlord and at reasonable times, to
inspect Landlord’s accounting records for the Expense Year
covered by such Reconciliation Statement at the accounting office
of Landlord’s management company. If after such inspection,
Tenant disputes any additional rental indicated on such
Reconciliation Statement, and upon Tenant’s written request
therefor, a certification as to the proper amount of Operating
Costs for such Expense Year and the amount due to or payable by
Tenant with respect thereto shall be made by an independent
certified public accountant selected by Landlord. Such
certification shall be final and conclusive as to all issues
relating to Operating Costs in dispute between the parties. Tenant
agrees to pay the cost of such certification and the investigation
with respect thereto unless it is determined that the Operating
Costs stated in such Reconciliation Statement were overstated in
Landlord’s favor by five percent (5%) or more, in which
case, Landlord shall pay the cost of same. Tenant waives the right
to dispute or contest, and shall have no right to dispute or
contest, any matter relating to the calculation of Operating Costs
or other forms of Rent under this Section 3 (and waives the
right to inspect Landlord’s records with respect thereto)
with respect to each Expense Year for which a Reconciliation
Statement is given to Tenant if no claim or dispute with respect
thereto is asserted by Tenant in writing to Landlord within ninety
(90) days of delivery to Tenant of the original or most recent
Reconciliation Statement with respect thereto.
(12) Subject to the provisions of this Section 3, the
rights and obligations of Landlord and Tenant with respect to
payments to be made hereunder, in regard to Operating Costs
incurred or allocable to periods prior to the expiration or sooner
termination of this Lease, shall survive such expiration or
termination.
C. Real Estate Taxes.
(1) Subject to the provisions of this Lease, Tenant shall pay to
Landlord as Additional Rent an amount equal to Tenant’s
Proportionate Share of Real Estate Taxes, plus all applicable Sales
Tax thereon. Landlord shall estimate and administer Tenant’s
payment of Real Estate Taxes in the same manner as Operating Costs
provided in Section 3.
(2) All real property taxes, assessments, license fees, excises,
levies, charges or impositions and other similar governmental ad
valorem or other charges levied on or attributable to the Project
or its ownership, operation or transfer, and all taxes, charges,
assessments or similar impositions imposed in lieu or in
substitution (partially or totally) of the same (collectively,
"Real Estate Taxes"). "Real Estate Taxes" shall also include all
taxes, assessments, license fees, excises, levies, charges or
similar impositions (A) on any interest of Landlord, any
mortgagee of Landlord in the Project, the Premises or in this
Lease, or on the occupancy or use of space in the Project or the
Premises; (B) on the gross or net rentals or income from the
Project, the Rent received hereunder, or on Landlord’s
"right" or "rights" to any of the foregoing or on Landlord’s
business of leasing the Premises, the Building or the Project,
including, without limitation, any gross income tax, excise tax,
Sales Tax or gross receipts tax levied by any federal, state or
local governmental entity with respect to the receipt of Rent or
with respect to the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy of
9
the Project or portions thereof;
(C) measured by the gross square footage of the Project, the
Premises, or any portion thereof, or by the number of actual,
estimated or potential occupants of the Project, the number of
vehicular trips generated by or associated with the Project, or the
number of parking spaces contained within the Project, or for any
transportation, arts, housing or environmental plan, fund or system
instituted within or for any geographic area in which the Building
is located, or any similar measure; (D) on the transfer of or
the transaction represented by this Lease or any lease of space in
the Project or on any document creating or transferring an interest
in this Lease; (E) on the construction, removal or alteration
of improvements in the Project; (F) pursuant to any
governmental or private assessment or agreement for the provision
of amenities, services or rights of use, whether or not exclusive,
public, quasi-public, private or otherwise made available on a
shared use basis, including amenities, services or rights of use
such as fire protection, police protection, street, sidewalk,
lighting, sewer or road maintenance, refuse removal or janitorial
services or for any other service, without regard to whether such
services were formerly provided by governmental or
quasi-governmental agencies to property owners or occupants at no
cost or at minimal cost; (G) on any fixtures, machinery,
equipment, systems, furniture and other personal property used in
connection with the Project; (H) any possessory taxes charged
or levied in lieu of real estate taxes; or (I) related to any
transportation plan, fund or system instituted within the
geographic area of the Project or otherwise applicable to the
Premises, the Project or any portion thereof. Real Estate Taxes
shall not include taxes on Landlord’s net income including
state, corporate or franchise taxes or any inheritance, estate, or
gift taxes, unless the same are charged or levied in lieu of real
estate taxes.
D. Computation of Operating Costs/Dispute. For a period
of sixty (60) days after receipt of the Reconciliation
Statement, Tenant shall have the right, upon advance notice, to
visit Landlord’s office in the Building during Business
Hours, as hereinafter defined, to inspect its books and records
concerning the Operating Costs. Tenant hereby agrees that the
Operating Costs from time to time computed by Landlord shall be
final and binding for all purposes of this Lease unless, within
sixty (60) days after Landlord provides Tenant with written
notice of the amount thereof Tenant provides Landlord with written
notice (i) disputing the mathematical accuracy of such amount
(the "Disputed Amount"), (ii) designating a Florida licensed
accounting firm at Tenant’s sole cost and expense, to review
the mathematical accuracy of the Disputed Amount with Landlord
and/or its designated representatives, and (iii) agreeing to
be bound by all of the following requirements:
(1) No audit shall be conducted at any time if Tenant is in
default of any of the terms of the Lease unless such default is
cured.
(2) The audit shall be solely for the year, which is the subject
of the dispute.
(3) Any audit of Landlord’s books and records pertaining
to the calculation of Operating Costs for any calendar year within
Lease Term shall be audited only by Tenant or its representatives
at Landlord’s office where Operating Costs records are kept,
at Tenant’s expense, at any time within ninety (90) days
after Landlord’s reconciliation statement is delivered to
Tenant for such calendar year; provided that Tenant shall give
Landlord not less than thirty (30) days prior written notice
of any such audit and sign a confidential non-disclosure agreement
prior to the audit. If Landlord’s calculations of
Tenant’s Additional Rent for the audited calendar year is
demonstrated to reflect a mathematical error in excess of five
(5%) percent of the amount actually due from Tenant, then
Tenant shall be entitled to a prompt refund of any overpayment and
reimbursement of any accounting fees or Tenant shall promptly pay
to Landlord the amount of any underpayment, as the case may be.
(4) No audit shall be conducted whereby the auditor is paid on a
contingency or other incentive basis.
(5) Tenant shall deliver to Landlord a copy of the results of
such audit within thirty (30) days of its receipt by Tenant.
No such audit shall be conducted if any other tenant has conducted
an audit for the time period Tenant intends to audit and Landlord
furnishes to Tenant a copy of the results of such audit.
(6) No subtenant or assignee shall conduct an audit for any
period during which such subtenant or assignee is not in possession
of the premises.
(7) Tenant understands and agrees that this provision is of
material importance to the Landlord and that any violation of the
terms of this provision shall result in immediate and irreparable
harm to the Landlord.
(8) The obligations within this Section 3.D shall survive
the expiration or earlier termination of this Lease.
E. Late Charge . Tenant covenants and agrees to pay a
late charge in the amount of One Hundred Fifty and 00/100 ($150.00)
Dollars for any payment of Rent not received by Landlord on or
10
before the date when same is due following the
grace period provided in Section 23.B, of this Lease. Tenant
shall also pay Landlord interest at a rate equal to eighteen
(18%) percent per annum accruing after the grace period on any
Rent(s) outstanding. Tenant shall pay Landlord any such late
charge(s) or interest within five (5) days after Landlord
notifies Tenant in writing of same.
F. Definition of Rent . The term Rent shall refer
collectively to Base Rent, Tenant’s Proportionate Share of
Operating Costs and Real Estate Taxes and Additional Rent. The term
"Additional Rent" is sometimes used herein to refer to any and all
other sums payable by Tenant hereunder, including, but not limited
to, visitor parking charges and sums payable on account of default
by Tenant. All Rent shall be paid by Tenant without offset, demand
or other credit, and shall be payable only in lawful money of the
United States of America which shall be legal tender in payment of
all debts and dues, public and private, at the time of payment. All
sums payable by Tenant hereunder by check shall be obtained against
a financial institution located in the United States of America.
The Rent shall be paid by Tenant at the Building management office
located in the Building or elsewhere as designated by Landlord in
writing to Tenant. Any Rent payable for a portion of a month shall
be prorated based upon the number of days in the applicable
calendar month.
G. Rent Taxes. In addition to Base Rent and
Tenant’s Proportionate Share of Operating Costs and
Additional Rent, Tenant shall and hereby agrees to pay to Landlord
each month a sum equal to any sales tax, tax on Rent and any other
similar charges now existing or hereafter imposed, based upon the
privilege of leasing the space leased hereunder or based upon the
amount of rent collected therefor.
H. Commencement Other Than First Day . If Tenant’s
possession of the Premises commences on any day other than the
first day of the month, Tenant shall occupy the Premises under the
terms of this Lease and the pro rata portion of the Rent shall be
paid by Tenant; provided, however, that in such an event the
Commencement Date, for the purposes of this Lease, shall be deemed
to be the first day of the month immediately following the month in
which possession is given.
I. Operating Costs and Additional Rent after Expiration
Date . Operating Costs for the final months of this Lease is
due and payable even though it may not be calculated until
subsequent to the Expiration Date of the Lease. Tenant expressly
agrees that Landlord, with written notice, may apply the Security
Deposit, as defined in the BLI Rider, in full or partial
satisfaction of any Operating Costs and Additional Rent due for the
final months of this Lease. If said Security Deposit is greater
than the amount of any such Operating Costs and Additional Rent and
there are no other sums or amounts owed Landlord by Tenant by
reason of any other terms, provisions, covenants or conditions of
this Lease, then Landlord shall refund the balance of said Security
Deposit to Tenant as provided herein. Nothing herein contained
shall be construed to relieve Tenant, or imply that Tenant is
relieved, of the liability for or the obligation to pay any
Operating Costs and Additional Rent due for the final months of
this Lease by reason of the provisions of this paragraph, nor shall
Landlord be required first to apply said Security Deposit to such
Operating Costs and Additional Rent if there are any other sums or
amounts owed Landlord by Tenant by reason of any other terms,
provisions, covenants or conditions of this Lease.
4. SECURITY DEPOSIT
N/A
5. USE
A. General . Tenant will use and occupy the Premises
solely for the operation of the business set forth in the BLI Rider
and for no other use whatsoever. Tenant acknowledges that its type
of business, as above specified, is a material consideration for
Landlord’s execution of this Lease. Tenant will not commit
waste upon the Premises nor suffer or permit the Premises or any
part of them to be used in any manner, or suffer or permit anything
to be done in or brought into or kept in the Premises or the
Building, which would: (i) violate any law or requirement of
public authorities, (ii) cause injury to the Building or any
part thereof, (iii) intentionally annoy or offend other
tenants or their patrons or interfere with the normal operations of
HVAC, plumbing or other mechanical or electrical systems of the
Building or the elevators installed therein,
(iv) intentionally constitute a public or private nuisance, or
(v) alter the appearance of the exterior of the Building or of
any portion of the interior other than the Premises pursuant to the
provisions of this Lease. Tenant agrees and acknowledges that
Tenant shall be responsible for obtaining any special amendments to
the Certificate of Occupancy for the Premises and/or the Building
and any other governmental permits, authorizations or consents
required solely on account of Tenant’s use of the
Premises.
B. Prohibited Uses . Notwithstanding anything to the
contrary in this Lease or the BLI Rider, including but not limited
to, the "Use of Premises" Section of the BLI Rider, Tenant hereby
represents, warrants and agrees that Tenant’s business is not
and shall not be, and that Tenant shall not use the Premises or any
part thereof, or permit the Premises or any part thereof to be
used, (i) for the business
11
of photographic, multilith or multigraph
reproductions or offset printing; (ii) for a retail banking,
trust company, depository, guarantee or safe deposit business open
to the general public, (iii) as a savings bank, a savings and
loan company open to the general public, (iv) for the sale to
the general public of travelers checks, money orders, drafts,
foreign exchange or letters of credit or for the receipt of money
for transmission, (v) as a stock broker’s or
dealer’s office or for the underwriting or sale of securities
open to the general public, (vi) except in connection with an
employee lounge, as a restaurant or bar or for the sale of
confectionery, soda, beverages, sandwiches, ice cream or baked
goods or for the preparation, dispensing or consumption of food or
beverages in any manner whatsoever, (vii) as a news or cigar
stand, (viii) as an employment agency (except in connection
with Tenant’s staffing agency contractor’s duties),
labor union office, surgeon’s, outpatient, abortion clinic or
dentist’s office, dance or music studio, school (except for
the training of employees of Tenant), (ix) as a barber shop or
beauty salon, or (x) for the business of (a) operating a
shared office facility, that is, a business which subleases space
and/or offers centralized services to subtenants or customers on a
shared basis, such as secretarial, receptionist, telephone, etc.,
or (b) for a fee to persons inside or outside of the Building,
providing as a service word processing, secretarial, video
conferencing, conference services, telephone answering,
receptionist or mail receipt services. Nothing in this
Section 5.B., shall preclude Tenant from using any part of the
Premises for photographic, multilith or multigraph reproductions to
the extent that such uses are incidental to Tenant’s own
business or activities.
6. ACCEPTANCE OF PREMISES;
LANDLORD’S WORK AND REPRESENTATIONS
A. Improvements, if any, to be made to the Premises by Tenant
shall be made in accordance with a Work Letter to be agreed upon
between Landlord and Tenant. Leasehold improvements (as
distinguished from trade fixtures and apparatus) installed in the
Premises at any time, whether by or on behalf of Tenant or by or on
behalf of Landlord, shall not be removed from the Premises at any
time, unless such removal is consented to in advance by Landlord;
and at the expiration of this Lease (either on the Termination Date
or upon such earlier termination as provided in this Lease), all
such leasehold improvements shall be deemed to be part of the
Premises, shall not be removed by Tenant when it vacates the
Premises, and title thereto shall vest solely in Landlord without
payment of any nature to Tenant. All trade fixtures and apparatus
(as distinguished from leasehold improvements) owned by Tenant and
installed in the Premises shall remain the property of Tenant and
shall be removable at any time, including upon the expiration of
the Term; provided Tenant shall not at such time be in default of
any terms or covenants of this Lease, and provided further, that
Tenant shall repair any damage to the Premises caused by the
removal of said trade fixtures and apparatus and shall restore the
Premises to substantially the same condition as existed prior to
the installation of said trade fixtures and apparatus. Except as
otherwise provided in writing to Landlord, the taking of possession
by Tenant (or any permitted assignee or subtenant of Tenant) of all
or any portion of the Premises for the conduct of business will be
deemed conclusive evidence that Tenant has found the Premises, and
all of their fixtures and equipment, acceptable.
B. Prior to occupancy by Tenant, Tenant shall have the right to
examine the Premises and the physical and environmental condition
and the utility of the Premises. Landlord, its agents and employees
and other persons acting on behalf of Landlord, represent and
warrant that (i) the physical or environmental condition,
value, zoning or legal status of the Building is in compliance with
all Environmental Laws; (ii) the Premises is reasonably fit
for Tenant’s intended use; (iii); (iv) the condition,
capacity or performance of electrical or communications systems or
facilities is reasonably suitable for Tenant’s intended use
of the Building; and (v) there are no unreasonably
objectionable odors, bright lights or other conditions which may
affect Tenant’s reasonable use and enjoyment of the Premises
or the Building.
7. PARKING
A. General . As long as Tenant is not in default under
this Lease, Landlord will provide Tenant during the Lease Term with
the number of unassigned, non-exclusive parking spaces in the
surface parking lot and Building parking garage as set forth in the
BLI Rider. Such parking spaces may be used only by principals,
employees and contractors of Tenant. Tenant acknowledges that its
guests and visitors will be charged for parking at then current
rates as established by Landlord.
B. Rates . If Tenant fails to pay parking charges when
due, as provided in the BLI Rider, Landlord may, by written notice
to Tenant, elect to proceed as provided under the default
provisions of this Lease and/or cease to provide all or any of the
foregoing parking spaces.
C. Reservations . Landlord has and reserves the right to
reasonably alter the methods used to control parking and the right
to establish such controls and rules and regulations (such as
parking stickers to be affixed to vehicles) regarding parking, that
Landlord may reasonably deem desirable. Without liability, Landlord
will have the right to tow or otherwise remove vehicles
improperly
12
parked, blocking ingress or egress lanes, or
violating parking rules, at the expense of the offending tenant
and/or owner of the vehicle.
D. Conditions . Tenant’s right to use, and its
right to permit its principals and guests to use, the parking
facilities pursuant to this Lease are subject to the following
conditions: (i) Landlord has made no representations or
warranties with respect to the parking area, the number of spaces
located therein or access thereto; (ii) Landlord reserves the
right to reduce the number of spaces in the parking area by not
more than ten percent (10%) of the then number of spaces in
the parking area and/or change access thereto provided that the
number of spaces specified in the BLI Rider continue to be
available for Tenant’s use; and none of the foregoing shall
entitle Tenant to any claim against Landlord or to any abatement of
Rent (or any part thereof); (iii) Landlord has no obligation
to provide a parking garage attendant and Landlord shall have no
liability on account of any loss or damage to any vehicle or the
contents thereof, unless such loss or damage is caused by Landlord,
its agents, employees, or invitees; (iv) Tenant, its agents,
employees and invitees, shall park their automobiles and other
vehicles only where, and as designated from time to time by
Landlord, within the parking area; (v) if and when so
requested by Landlord, Tenant shall furnish Landlord with the
license numbers of any vehicles of Tenant, its agents and
employees; and (vi) Landlord (or the operator of the parking
area) may charge Tenant’s invitees and visitors) directly for
the parking fee established by Landlord (or such operator) from
time to time for the use of such parking area.
8. BUILDING SERVICES
A. General . The Premises shall be accessible to Tenant
on a twenty-four (24) hour per day, seven (7) days per
week, three hundred sixty-five (365) days per year basis,
excluding emergency events which cause the Building to limit access
to Tenant. In general, the services set forth below will be
provided by Landlord at a service level set, defined and regulated
by Landlord consistent with office buildings of similar quality to,
and in the same immediate geographic area as, the Building. During
the Lease Term, the regular business hours ("Business Hours") of
the Building will be 7:00 a.m. to 7:00 p.m., Monday through Friday,
and on Saturday, 8:00 a.m. to 1:00 p.m., except holidays generally
recognized by state and federal governments or as may be shortened
in accordance with applicable policies or regulations adopted by
any utility company servicing the Building or government. Landlord
reserves the right to increase the Business Hours. The Building
will be accessible to Tenant, its subtenants, agents, servants,
employees, contractors, invitees or licensees (collectively,
"Tenant’s Agents") twenty-four hours per day, seven days per
week except in the case of temporary closure due to emergencies,
repairs, casualty, governmental or quasi-governmental requirements
or as Landlord reasonably deems necessary in order to prevent
damage or injury to person or property.
B. Services to be Provided by Landlord.
(1) Janitorial Service . Landlord agrees to provide
during the Lease Term janitorial services for the Premises
customarily provided in office buildings of similar quality to and
in the same immediate geographic area as the Building. Janitorial
services will be provided after Business Hours at the Building, but
no janitorial services will be provided on Saturdays, Sundays and
holidays generally recognized by state and federal government.
Should Tenant require additional janitorial services beyond those
customarily provided by Landlord, Tenant may request same in
writing from Landlord and if Landlord agrees to provide such
services, Tenant will be billed for same by Landlord at a
reasonable rate, as determined by Landlord, and those costs and
expenses when billed will be Additional Rent due under this
Lease.
(2) Electricity . During the Lease Term, electric power
will be available for the purposes of lighting and general office
equipment use in amounts consistent with Building standard
electrical capacities for the hours of 7:00 am – 8:00 pm
Monday – Friday ("Tenant’s Business Hours"). The
Building standard mechanical and electrical systems are designed to
accommodate loads generated by lights and office equipment such as
typewriters, dictating equipment, photocopy equipment, etc., up to
the standard maximum capacities as set forth in the Work Letter
attached hereto as Exhibit "B". In the event Tenant’s use of
the Premises requires more electrical power than set forth above,
whether by intensity of use, load or type of equipment, Tenant may
then be billed for such additional use and such billings will be
billed to Tenant as Additional Rent. Landlord will utilize
Landlord’s customary method of billing Tenant for excess
electrical power consumption at the standard utility rates charged
by the electric service provider. At Landlord’s option,
Landlord, at Tenant’s expense, may have an engineer estimate
Tenant’s usage, and bill Tenant at standard utility rates for
the excess usage or install a submeter for the purposes of
monitoring Tenant’s excess power consumption. Landlord and
Tenant agree that Landlord’s implementation of the electrical
monitoring and billing procedures set forth herein shall in no way
be construed so as to deem Landlord a private or public utility
company. Landlord reserves the right, after Business Hours, to turn
off all unnecessary lighting in the unoccupied areas of the
Building to minimize the energy consumption of the Building in the
Common Areas and the Premises. Landlord reserves the right, after
Tenant’s Business Hours, to turn off all unnecessary lighting
in the unoccupied areas of the Premises to minimize the energy
consumption of the Building in the Premises.
13
(3) HVAC Services . Landlord agrees to
provide, during Tenant’s Business Hours, heating, ventilating
and air conditioning for the purposes of comfort control. Except
for HVAC service provided to Tenant’s server room on the
9 th floor,
Landlord and Tenant agree that Landlord’s HVAC system is not
designed to cool machinery and equipment. The HVAC system installed
for use in Tenant’s server rooms shall be separately metered
for electricity usage and billed to Tenant as Additional Rent. If
Tenant requires additional HVAC services for comfort control at
times other than during Tenant’s Business Hours, Landlord
will bill Tenant as Additional Rent for the number of hours used at
Landlord’s then standard prevailing rate for after-hours use
of HVAC services as of the date of the execution of this Lease. The
current charge for after-hours operation (to include HVAC,
lighting, water, sewer and elevator service) is Fifty Dollars
($50.00) per hour, subject to adjustment as hereinabove provided.
This rate will be subject to change during the Lease Term in
Landlord’s discretion based upon operational costs and
expenses, including wear and tear on the system and its components.
The HVAC air distribution system and control system will remain
under the control of Landlord, who will regulate the systems’
setting and adjustment. At Landlord’s option, Landlord may
secure HVAC controls (thermostats) in lockable metal boxes to
regulate the efficiency and use of the system. Tenant agrees that
Landlord will have complete control over the setting and regulation
of all air distribution, vents, vanes and dampers so as to provide
comfortable working conditions.
(4) Water and Sewer . Landlord agrees to provide
municipally supplied cold water and sewer services to the Common
Areas for lavatory purposes.
(5) Elevator Service . Landlord will provide elevator
service during Tenant’s Business Hours and, Landlord shall
provide restricted elevator service during hours other than
Business Hours.
C. Interruption of Services . It is understood and agreed
that Landlord does not warrant that any of the services referred to
above, or any other services which Landlord may supply, will be
free from interruption except that such interruption shall not be
for a period of time longer than required to reasonably reinstate
such services. Tenant acknowledges that any one or more of such
services may be suspended by reason of accident or repairs,
alterations or improvements necessary to be made, or by strikes or
lockouts, or by reason of operation of law, or other causes beyond
the control of Landlord. No such interruption or discontinuance of
service will be deemed an eviction or relieve Tenant from the
responsibility of performing any of Tenant’s obligations
under this Lease or render Landlord liable to Tenant for damages or
abatement of Rent. Notwithstanding the foregoing, if: (i) such
utility service is interrupted because of the acts of Landlord, its
employees, agents or contractors; (ii) Tenant notifies
Landlord of such interruption; (iii) such interruption does
not arise in whole or in part as a result of an act or omission of
Tenant or its agents; (iv) such interruption is not caused by
a fire or other casualty; (v) the repair or restoration of
such service is reasonably within the control of Landlord; and
(vi) as a result of such interruption, the Premises or a
material portion thereof, is rendered untenantable (meaning that
Tenant is unable to use the Premises in the normal course of it
business) and Tenant in fact ceases to use the Premises, or
material portion thereof, then, Tenant’s sole remedy for such
interruption shall be as follows: 24 hours after the commencement
of the interruption of service to the Premises (or material portion
thereof) and the Premises become untenantable, the Rent payable
hereunder shall be abated on a per diem basis for each day after
said 24 hour period based upon the percentage of the Premises so
rendered untenantable and not used by Tenant, and such abatement
shall continue until the date the Premises become tenantable
again.
D. Sorting and Separation of Refuse and Trash. Tenant
covenants and agrees, at its sole cost and expense, to comply with
all present and future laws, orders and regulations of all state,
federal, municipal, and local governments, departments, commissions
and boards regarding the collection, sorting, separation, and
recycling of waste products, garbage, refuse and trash. Tenant
shall, as required, sort and separate such waste products, garbage,
refuse and trash into such categories as provided by law. Each
separately sorted category of waste products, garbage, refuse, and
trash shall be placed in separate receptacles reasonably approved
by Landlord. Such separate receptacles may, at the Landlord’s
option, be removed from the Premises in accordance with a
collection schedule prescribed by law. Landlord reserves the right
to refuse to collect or accept from Tenant any waste products,
garbage, refuse or trash that is not separated and sorted and
required by law, and to require Tenant to arrange for such
collection at Tenant’s sole cost and expense, utilizing a
contractor reasonably satisfactory to Landlord. Tenant shall pay
all costs, expenses, fines, penalties or damages that may be
imposed on Landlord or Tenant by reason of Tenant’s failure
to comply with the provisions of this Section, and, at
Tenant’s sole cost and expense shall indemnify, defend, and
hold Landlord harmless (including legal fees and expenses) from and
against any actions, claims and suits arising from such
non-compliance, utilizing counsel reasonably satisfactory to
Landlord.
E. Utility Deregulation . Landlord has advised Tenant
that presently Jacksonville Electric Authority (Electric Service
Provider) is the utility company selected by Landlord to provide
utility service for the Building. Notwithstanding the foregoing, if
permitted by law, Landlord shall have
14
the right at any time and from time to time
during the Lease Term to either contract for service from a
different company or companies providing electric service (such a
company shall hereinafter be referred to as an Alternate Service
Provider) or continue to contract for service from the Electric
Service Provider.
9. SECURITY . With respect
to security for the Building and the parking garage(s), Landlord
and Tenant hereby agree as follows:
A. Landlord’s Responsibilities . Landlord shall:
(i) install a system to limit access to the Building and
parking garage, (ii) respond to Building alarms and/or reports
of an emergency nature on a twenty-four (24) hour basis, and
(iii) provide a security escort service to the parking garage
after Business Hours.
B. Tenant’s Responsibilities . Tenant shall:
(i) abide by all policies, procedures and rules and
regulations for use of the access system, (ii) report promptly
the loss or theft of all keys which would permit unauthorized
entrance to the Premises, Building or parking garage(s),
(iii) report to Landlord the employment or discharge of
employees and their vehicle’s make, model, and license
number, (iv) promptly report to Landlord door-to-door
solicitation or other unauthorized activity in the Building, and
(v) promptly inform the Landlord’s Building manager in
the event of a break-in or other emergency.
C. Interruption of Security . Tenant acknowledges that
the above security provisions may be suspended or modified at
Landlord’s sole discretion or as a result of causes beyond
the reasonable control of Landlord. No such interruption,
discontinuance or modification of security service will constitute
an eviction, constructive eviction, or a disturbance of
Tenant’s use and possession of the Premises, and further, no
interruption, discontinuance or modification of security service
will render Landlord liable to Tenant or third-parties for damages,
abatement of Rent, or otherwise, or relieve Tenant of the
responsibility of performing Tenant’s obligations under this
Lease.
10. REPAIRS, MAINTENANCE AND
UTILITIES
A. Landlord’s Responsibilities . During the Lease
Term, Landlord shall define, set, and maintain the level of repairs
and maintenance for the Building, the Common Areas, and all other
areas serving the Building, in a manner comparable to office
buildings of similar quality to and in the immediate geographic
area of the Building. Landlord’s responsibilities with
respect to this paragraph are as follows: (i) the structural
and roof systems of the Building, (ii) the Building standard
electrical and mechanical systems, (iii) the primary water and
sewer systems of the Building, (iv) the Building Common Areas
and the common area furniture, fixtures, and equipment,
(v) the landscaped areas in and about the Building,
(vi) replacement of Building standard fluorescent light bulbs
in the Common Areas, (vii) all maintenance , repair and
replacement of the Common Areas and (viii) HVAC.
B. Tenant’s Responsibilities . During the Lease
Term, Tenant will repair and maintain the following at
Tenant’s expense:
(1) The interior portion of the demising walls, the interior
partition walls of the Premises and their wall-covering, and the
entry door to the Premises.
(2) The electrical and mechanical systems not considered
Building standard which have been installed by either Landlord or
Tenant, for the exclusive use and benefit of Tenant. The following
examples are for clarification and are not all inclusive:
(a) electrical services for computers or similar items,
(b) projection room equipment such as dimmers, curtains, or
similar items, (c) water closet plumbing, kitchen plumbing or
similar items, (d) HVAC for other than comfort cooling in the
Premises security systems for the Premises, (e) telephone
system for the Premises; and (f) other similar systems.
(3) Except for the janitorial services to be provided by
Landlord, if any, as set forth in this Lease, the repair and
maintenance of the floor covering of the Premises, including VCT
flooring, ceramic tiles, marble, wood flooring, or similar
coverings, shall be performed by Tenant, at Tenant’s
expense.
(4) All cabinets and millwork (regardless of ownership) so long
as said cabinets and millwork are for the exclusive use and benefit
of Tenant.
(5) All other personal property, improvements or fixtures,
except any of same expressly designated in this Lease as those
which Landlord shall maintain. Those items to be repaired and
maintained by Tenant include, but are not limited to, the
following: (a) ceiling tiles and ceiling grid,
(b) molding or other woodwork and paneling, (c) light
fixtures and bulbs, (d) draperies, blinds or wall hangings,
(e) glass partition walls, (f) water closets and kitchen
areas, (g) doors and lockset, and (h) vaults, safes, or
secured areas. For the aforesaid items, Landlord may elect, with
Tenant’s
15
approval (which approval will not be unreasonably
withheld) to maintain and repair same at Tenant’s expense and
Tenant will be billed for same as Additional Rent.
C. Repairs and Maintenance; Miscellaneous .
Notwithstanding anything to the contrary in this Lease, Landlord
shall have no responsibility to repair or maintain the Building,
any of its components, the Common Areas, the Premises, or any
fixture, improvement, trade fixture, or any item of personal
property contained in the Building, the Common Areas, and/or the
Premises if such repairs or maintenance are required because of the
occurrence of any of the following: (i) the acts, misuse,
improper conduct, omission or negligence of Tenant or
Tenant’s Agents. Should Landlord, at its sole option, elect
to make repairs or maintenance occasioned by the occurrence of any
of the foregoing, Tenant shall pay as Additional Rent all such
costs and expenses incurred by Landlord. Any such Additional Rent
not promptly paid to the Landlord within five (5) days of a
billing of said Additional Rent to the Tenant shall bear interest
at twelve percent (12%), and if not paid within ten (10) days
thereafter shall constitute a default of this Lease availing
Landlord of remedies provided in Section 24 hereof. Landlord
shall have the right to approve in advance all work, repair,
maintenance or otherwise, to be performed under this Lease by
Tenant and all of Tenant’s repairmen, contractors,
subcontractors and suppliers performing work or supplying
materials. Tenant shall be responsible for all permits, inspections
and certificates for accomplishing the above. Tenant shall obtain
lien waivers for all work done in or to the Premises.
11. TENANT’S
ALTERATIONS
A. General . During the Lease Term, Tenant will make no
alterations, additions or improvements in or to the Premises or the
Building, of any kind or nature, including, but not limited to,
alterations, additions or improvements in, to, or on, telephone or
computer installations (any and all of such alterations, additions
or improvements other than those set forth in the Work Letter
attached hereto are collectively referred to in this Lease as the
"Alteration(s)"), without the prior written consent of Landlord,
which consent shall not be unreasonably withheld; provided however,
that Landlord may withhold its consent in its reasonable discretion
if: (a) the cost of the work will exceed Twenty Five Thousand
and 00/100 Dollars ($25,000.00); (b) a building permit will be
required; or (c) if there will be any material modifications
to any exterior or structural components of the Building or any of
the Building’s operating systems, including, without
limitation, heating, ventilating, air conditioning, plumbing,
electrical, and other operating systems. In connection with
Tenant’s request for Landlord’s consent under this
Lease, Tenant shall pre-pay to Landlord the sum of Two Hundred
Fifty and 00/100 Dollars ($250.00) for Landlord’s review of
applicable documents and plans. Tenant also shall reimburse
Landlord for any third-party costs and expenses incurred or to be
incurred by Landlord related to such review within ten
(10) days of receipt of Landlord’s statement therefore.
Tenant shall submit to Landlord detailed drawings and plans of the
proposed Alterations at the time Landlord’s consent is
sought. Should Landlord consent to any proposed Alterations by
Tenant, such consent will be conditioned upon Tenant’s
agreement to comply with all requirements established by Landlord,
including safety requirements and the matters referenced in
Section 21 of this Lease. As stated herein, all Alterations
made hereunder will become Landlord’s property when
incorporated into or affixed to the Building. However, at
Landlord’s option, Landlord may, at the expiration of the
Lease Term, require Tenant, at Tenant’s expense, to remove
Alterations made by or on behalf of Tenant and to restore the
Premises to their original condition.
12. LANDLORD’S ADDITIONS
AND ALTERATIONS. Landlord has the right to make changes in and
about the Building, garages and parking areas, including, but not
limited to, signs, entrances, address or name of Building. Such
changes may include, but not be limited to, rehabilitation,
redecoration, refurbishment and refixturing of the Building and
expansion of or structural changes to the Building. The right of
Tenant to quiet enjoyment and peaceful possession given under the
Lease will not be deemed breached or interfered with by reason of
Landlord’s actions pursuant to this section so long as such
actions do not materially deprive Tenant of its use and enjoyment
of the Premises.
13. ASSIGNMENT AND
SUBLETTING
A. Landlord’s Consent Required . Except as provided
below with respect to assignment of this Lease, Tenant will not
effect a Transfer, (as herein defined) without first obtaining the
consent of Landlord, which consent Landlord shall not unreasonably
withhold provided that all of the requirements of subsection B, of
this Section 13 are satisfied. As used in this
Section 13, any of the following shall be deemed to be a
Transfer: (i) an assignment of this Lease, in whole or in
part; (ii) any sublet of all or any part of the Premises;
(iii) any license allowing anyone other than Tenant to use or
occupy all or any part of the Premises; (iv) any pledge or
encumbrance by mortgage or other instrument of Tenant’s
interest in this Lease; (v) any transfer of corporate shares
as described in subsection C., of this Section 13; or
(vi) any transfer of partnership interest as described in
subsection D., of this Section 13. Consent by Landlord to any
Transfer shall not constitute a waiver of the requirement for such
consent to any subsequent Transfer. In lieu of approving any
Transfer, Landlord may elect to terminate this Lease as to the
portion of the Premises affected by such Transfer (together with
such additional portion of the Premises needed by Landlord to
render the terminated portion marketable) by giving Tenant notice
of such election, in which event this Lease and the rights and
obligations of the parties hereunder shall cease
16
as of a date set forth in such notice which date
shall not be less than sixty (60) days after the date of such
notice. Tenant’s allotted parking spaces shall be
proportionately reduced based on the amount of space recaptured by
Landlord. In the event of any such termination, all Rent (other
than any Additional Rent due Landlord by reason of Tenant’s
failure to perform any of its obligations hereunder) shall be
adjusted as of the date of such termination.
B. Conditions for Transfer Approval . Tenant recognizes
that this Lease and the Premises are unique, and that the nature
and character of the operations within and management of the
Premises are important to the success of the Building. Accordingly,
Landlord shall be entitled to arbitrarily withhold its consent to
any Transfer, unless all of the following conditions are satisfied,
in which event, Landlord agrees that it shall not unreasonably
withhold its consent to the Transfer in question:
(1) At the time consent is requested, or at any time prior to
the granting of consent, Tenant is not in default under this Lease
beyond any applicable grace or cure period.
(2) In Landlord’s reasonable judgment, the proposed
assignee or subtenant or occupant is engaged in a business or
activity, which (a) is in keeping with the then standards of
the Building, (b) is limited to the use of the Premises as
general and executive office, (c) will not violate any
negative covenant as to use contained in any other lease of office
space in the Building, (d) will not entail any alterations
which would lessen the value of the leasehold improvements in the
Premises, (e) will not result in an increased burden on the
Building, the Premises and systems and structures thereof,
(f) will not cause an increase in insurance premiums for
insurance policies applicable to the Building, or (g) will not
impair the dignity, reputation or character of the Building.
(3) No portion of the Building or Premises would become subject
to additional or different governmental laws and regulations
including, without limitation, the ADA and Title 24.
(4) The proposed assignee or sublessee is not an existing tenant
or affiliate of an existing tenant of the Building and Landlord is
not negotiating with, and has not at any time within the past sixty
(60) days negotiated with, the proposed assignee or sublessee
for space in the Building.
(5) The proposed use is not prohibited by law or by any
provision of this Lease, including, without limitation, the rules
and regulations then in effect.
(6) The proposed assignee or subtenant or occupant is a
reputable person of good character and with sufficient financial
worth considering the responsibility involved, and Landlord has
been furnished with reasonable proof thereof;
(7) The form of the proposed sublease or instrument of
assignment or occupancy shall be reasonably satisfactory to
Landlord, and shall comply with the applicable provisions of this
Paragraph;
(8) The Transfer requested shall not, in view of all previous
approved Transfers, render the Premises occupied by more than three
(3) different occupying transferees;
(9) The proposed subtenant or assignee or occupant shall not be
a governmental agency, and shall not be entitled, directly or
indirectly, to diplomatic or sovereign immunity and shall be
subject to the service of process in, and the jurisdiction of the
courts of the State of Florida;
(10) Such transferee shall assume in writing, in a form
acceptable to Landlord, all of Tenant’s obligations hereunder
and Tenant shall provide Landlord with a copy of such
assumption/transfer document;
(11) Tenant shall pay to Landlord a fee of One Thousand and
00/100 Dollars ($1,000.00) prior to the effective date of the
Transfer in order to reimburse Landlord for all of its internal
costs and expenses incurred with respect to the Transfer,
including, without limitation, costs incurred in connection with
the review of financial materials, meetings with representative of
transferor and/or transferee and preparation, review, approval and
execution of the required transfer documentation, and, in addition,
Tenant shall reimburse Landlord for any out-of-pocket costs and
expenses incurred with respect to such Transfer, the foregoing
shall hereinafter be referred to as the Transfer Fee;
(12) As of the effective date of the Transfer and continuing
throughout the remainder of the Term, the Base Rent shall not be
less than the Base Rent set forth in the BLI Rider;
(13) Tenant to which the Premises were initially leased shall
continue to remain liable under this Lease for the performance of
all terms, including but not limited to, payment of Rent due under
this Lease, unless however, in the instance of an assignment, the
proposed assignee exhibits to
17
Landlord’s reasonable satisfaction that it
has a net worth at least equal to that of Tenant, in which case
Tenant shall be released of liability under this Lease;
(14) N/A;
(15) Each of Landlord’s Mortgagees shall have consented in
writing to such Transfer; and
(16) Tenant shall give notice of a requested Transfer to
Landlord, which notice shall be accompanied by (a) a conformed
or photostatic copy of the proposed assignment or sublease, the
effective or commencement date of which shall be at least sixty
(60) days after the giving of such notice, (b) a
statement setting forth in reasonable detail the identity of the
proposed assignee or subtenant, the nature of its business and its
proposed use of the Premises, (c) current financial
information with respect to the proposed assignee or subtenant,
including, without limitation, its most recent financial report,
and (d) such other information as Landlord may reasonably
request.
(17) Upon request, the Assignee (in the case of a proposed
assignment) or Tenant (in the case of a proposed sub-letting) will
increase the original Security Deposit hereunder in such amount as
Landlord may reasonably require (or if no security was initially
deposited hereunder), or posted with Landlord such Security Deposit
as Landlord may require.
C. Transfer of Corporate Shares . If Tenant is a
corporation other than a corporation the outstanding voting stock
of which is listed on a "national securities exchange," as defined
in the Securities Exchange Act of 1934, and if at any time after
execution of this Lease any part or all of the corporate shares
shall be transferred by sale, assignment, bequest, inheritance,
operation of law or other disposition (including, but not limited
to, such a transfer to or by a receiver or trustee in federal or
state bankruptcy, insolvency, or other proceedings) so as to result
in a change in the present control of said corporation by the
person(s) now owning a majority of said corporate shares, a
Transfer shall be deemed to have occurred. Tenant shall give
Landlord notice that such Transfer is imminent at least fifteen
(15) days prior to the date of such Transfer. If any such
Transfer is made (and regardless of whether Tenant has given notice
of same), Landlord may elect to terminate this Lease at any time
thereafter by giving Tenant notice of such election, in which event
this Lease and the rights and obligations of the parties hereunder
shall cease as of a date set forth in such notice which date shall
not be less than sixty (60) days after the date of such
notice. In the event of any such termination, all Rent (other than
any Additional Rent due Landlord by reason of Tenant’s
failure to perform any of its obligations hereunder) shall be
adjusted as of the date of such termination.
D. Intentionally deleted.
E. Acceptance of Rent from Transferee . The acceptance by
Landlord of the payment of Rent following any assignment or other
transfer prohibited by this Section 13 shall not be deemed to
be a consent by Landlord to any such assignment or other transfer
nor shall the same be deemed to be a waiver of any right or remedy
of Landlord hereunder.
F. Additional Provisions Respecting Transfers . Without
limiting Landlord’s right to withhold its consent to any
Transfer by Tenant, and regardless of whether Landlord shall have
consented to any such Transfer, neither Tenant nor any other person
having an interest in the possession, use or occupancy of the
Premises or any part thereof shall enter into any lease, sublease,
license, concession, assignment or other Transfer or agreement for
possession, use or occupancy of all or any portion of the Premises,
which provides for Rent or other payment for such use, occupancy or
utilization based, in whole or in part, on the net income or
profits derived by any person or entity from the space so leased,
used or occupied, and any such purported lease, sublease, license,
concession, assignment or other transfer or agreement shall be
absolutely void and ineffective as a conveyance of any right or
interest in the possession, use or occupancy of all or any part of
the Premises. There shall be no deduction from the Rent payable
under any sublease or other Transfer nor from the amount thereof
passed on to any person or entity, for any expenses or costs
related in any way to the subleasing or Transfer of any interest
under this Lease.
G. Transfer Consideration is Additional Rent. If Landlord
shall consent to any Transfer, Tenant shall in consideration
therefor, pay to Landlord as Additional Rent an amount equal to the
Transfer Consideration. For purposes of this paragraph, the term
Transfer Consideration shall mean in any Lease Year (i) any
rents, additional charges or other consideration payable to Tenant
by the transferee of the Transfer which is in excess of the Base
Rent and Overhead Rent less any reasonable, verified marketing
costs attributable to the Transfer accruing during such Lease Year,
(ii) all sums paid for the sale or rental of Tenant’s
fixtures, leasehold improvements, equipment, furniture or other
personal property in excess of the fair market sale or rental value
thereof as of the date of the Transfer, and (iii) all sums
paid for services provided by Tenant to the transferee (including,
without limitation, secretarial, word processing, receptionist,
conference rooms, and library) in excess of the fair market value
of such
18
services. The Transfer Consideration shall be
paid to Landlord as and when paid by the transferee to Tenant.
Landlord shall have the right to audit Tenant’s books and
records upon reasonable notice to determine the amount of Transfer
Consideration payable to Landlord. In the event such audit reveals
an understatement of Transfer Consideration in excess of five
percent (5%) of the actual Transfer Consideration due
Landlord, Tenant shall pay the full amount of the understatement
and for the cost of such audit within ten (10) days after
Landlord’s written demand for same.
H. New Directory Isn’t Consent to
Sublet/Assignment. The listing or posting of any name, other
than that of Tenant, whether on the door or exterior wall of the
Premises, the Building’s tenant directory in the lobby or
elevator, or elsewhere, shall not: (i) constitute a waiver of
Landlord’s right to withhold consent to any sublet or
assignment pursuant to this Section 13; (ii) be deemed an
implied consent by Landlord to a sublet of the Premises or any
portion thereof, to any assignment or transfer of the Lease, or to
any unauthorized occupancy of the Premises, except in accordance
with the express terms of the Lease; or (iii) operate to vest
any right or interest in the Lease or in the Premises. Any such
listing as described in this Section 13.H. shall constitute a
privilege extended by Landlord to Tenant, and shall be immediately
revocable at Landlord’s will by notice to Tenant.
I. Annual Certification . Upon the execution of this
Lease and upon each succeeding anniversary date, or at any sooner
time requested by Landlord, Tenant shall deliver to Landlord a
statement, certified as being true and correct and verified by the
corporate partnership or entity, secretary, as applicable, showing
the names of all existing shareholders, partners or members as
applicable, of record and their respective ownership interests as
of that date.
J. Permitted Transfers. Notwithstanding
Section 13(a), Tenant may Transfer all or part of its interest
in this Lease or all or part of the Premises (a "Permitted
Transfer") to the following types of entities (a "Permitted
Transferee") without the written consent of Landlord:
(1) an Affiliate of Tenant;
(2) any corporation, limited partnership, limited liability
partnership, limited liability company or other business entity in
which or with which Tenant, or its corporate successors or assigns,
is merged or consolidated, in accordance with applicable statutory
provisions governing merger and consolidation of business entities,
so long as (A) Tenant’s obligations hereunder are
assumed by the entity surviving such merger or created by such
consolidation; and (B) the Tangible Net Worth of the surviving
or created entity is not less than the Tangible Net Worth of Tenant
as of the date of execution of this Lease; or
(3) any corporation, limited partnership, limited liability
partnership, limited liability company or other business entity
acquiring all or substantially all of Tenant’s assets if such
entity’s Tangible Net Worth after such acquisition is not
less than the Tangible Net Worth of Tenant as of the date of
execution of this Lease.
Tenant shall promptly notify Landlord of any such Permitted
Transfer. Tenant shall remain liable for the performance of all of
the obligations of Tenant hereunder, or if Tenant no longer exists
because of a merger, consolidation, or acquisition, the surviving
or acquiring entity shall expressly assume in writing the
obligations of Tenant hereunder. Additionally, the Permitted
Transferee shall comply with all of the terms and conditions of
this Lease, including the Permitted Use, and the use of the
Premises by the Permitted Transferee may not violate any other
agreements affecting the Premises or the Building, Landlord or
other tenants of the Building. No later than five (5) business
days after the effective date of any Permitted Transfer, Tenant
agrees to furnish Landlord with (A) copies of the instrument
effecting any of the foregoing Transfers, (B) documentation
establishing Tenant’s satisfaction of the requirements set
forth above applicable to any such Transfer, and (C) evidence
of insurance as requir
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