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STANDARD OFFICE LEASE
BY AND BETWEEN
ARDEN REALTY LIMITED PARTNERSHIP,
A MARYLAND LIMITED PARTNERSHIP,
AS LANDLORD,
AND
ALLCOM USA, INC.,
A NEVADA CORPORATION,
AS TENANT
SUITE 250
HAVENGATE
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
-----------------
PAGES
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<S> <C> <C>
ARTICLE 1 BASIC LEASE PROVISIONS . . . . . . . . . . . . . . . .
1
ARTICLE 2 TERM/PREMISES. . . . . . . . . . . . . . . . . . . . .
2
ARTICLE 3 RENTAL . . . . . . . . . . . . . . . . . . . . . . . .
2
(A) BASIC RENTAL . . . . . . . . . . . . . . . . . 2
(B) INCREASE IN DIRECT COSTS . . . . . . . . . . . 2
(C) DEFINITIONS. . . . . . . . . . . . . . . . . . 3
(D) DETERMINATION OF PAYMENT . . . . . . . . . . . 4
ARTICLE 4 SECURITY DEPOSIT . . . . . . . . . . . . . . . . . . .
5
ARTICLE 5 HOLDING OVER . . . . . . . . . . . . . . . . . . . . .
5
ARTICLE 6 PERSONAL PROPERTY TAXES. . . . . . . . . . . . . . . .
6
ARTICLE 7 USE. . . . . . . . . . . . . . . . . . . . . . . . . .
6
ARTICLE 8 CONDITION OF PREMISES. . . . . . . . . . . . . . . . .
6
ARTICLE 9 REPAIRS AND ALTERATIONS. . . . . . . . . . . . . . . .
7
(a) LANDLORD'S OBLIGATION. . . . . . . . . . . . . 7
(b) TENANT'S OBLIGATION. . . . . . . . . . . . . . 7
(c) ALTERATIONS. . . . . . . . . . . . . . . . . . 7
(d) INSURANCE LIENS. . . . . . . . . . . . . . . . 7
(e) COSTS AND FEES; REMOVAL. . . . . . . . . . . . 8
ARTICLE 10 LIENS. . . . . . . . . . . . . . . . . . . . . . . .
. 8
ARTICLE 11 PROJECT SERVICES . . . . . . . . . . . . . . . . . .
. 8
(a) BASIC SERVICES . . . . . . . . . . . . . . . . 8
(b) EXCESS USAGE . . . . . . . . . . . . . . . . . 9
(c) ADDITIONAL ELECTRICAL SERVICES . . . . . . . . 9
(d) HVAC BALANCE . . . . . . . . . . . . . . . . . 9
(e) TELECOMMUNICATIONS . . . . . . . . . . . . . . 9
(f) AFTER-HOURS USE. . . . . . . . . . . . . . . . 9
(g) REASONABLE CHARGES . . . . . . . . . . . . . . 10
(h) SOLE ELECTRICAL REPRESENTATIVE . . . . . . . . 10
ARTICLE 12 RIGHTS OF LANDLORD . . . . . . . . . . . . . . . . .
. 10
(a) RIGHT OF ENTRY . . . . . . . . . . . . . . . . 10
(b) MAINTENANCE WORK . . . . . . . . . . . . . . . 10
(c) ROOFTOP. . . . . . . . . . . . . . . . . . . . 10
ARTICLE 13 INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY. . .
. 10
(a) INDEMNITY. . . . . . . . . . . . . . . . . . . 10
(b) EXEMPTION OF LANDLORD FROM LIABILITY . . . . . 11
(c) SECURITY . . . . . . . . . . . . . . . . . . . 11
ARTICLE 14 INSURANCE. . . . . . . . . . . . . . . . . . . . . .
. 11
(a) TENANT'S INSURANCE . . . . . . . . . . . . . . 11
(b) FORM OF POLICIES . . . . . . . . . . . . . . . 12
(c) LANDLORD'S INSURANCE . . . . . . . . . . . . . 12
(d) WAIVER OF SUBROGATION. . . . . . . . . . . . . 12
(e) COMPLIANCE WITH LAW. . . . . . . . . . . . . . 12
ARTICLE 15 ASSIGNMENT AND SUBLETTING. . . . . . . . . . . . . .
. 12
ARTICLE 16 DAMAGE OR DESTRUCTION. . . . . . . . . . . . . . . .
. 14
<PAGE>
ARTICLE 17 Subordination. . . . . . . . . . . . . . . . . . . .
. 15
ARTICLE 18 Eminent Domain . . . . . . . . . . . . . . . . . . .
. 16
ARTICLE 19 Default. . . . . . . . . . . . . . . . . . . . . . .
. 16
ARTICLE 20 Remedies. . . . . . . . . . . . . . . . . . . . .. .
. 17
ARTICLE 21 Transfer of Landlord's Interest. . . . . . . . . . .
. 18
ARTICLE 22 Broker . . . . . . . . . . . . . . . . . . . . . . .
. 18
ARTICLE 23 Parking. . . . . . . . . . . . . . . . . . . . . . .
. 19
ARTICLE 24 Waiver . . . . . . . . . . . . . . . . . . . . . . .
. 19
ARTICLE 25 Estoppel Certificate . . . . . . . . . . . . . . . .
. 19
ARTICLE 26 Liability Of Landlord. . . . . . . . . . . . . . . .
. 20
ARTICLE 27 Inability To Perform . . . . . . . . . . . . . . . .
. 20
ARTICLE 28 Hazardous Waste. . . . . . . . . . . . . . . . . . .
. 20
ARTICLE 29 Surrender of Premises; Removal of Property . . . . .
. 22
ARTICLE 30 Miscellaneous. . . . . . . . . . . . . . . . . . . .
. 22
(a) Severability; Entire Agreement . . . . . . . . 22
(b) Attorneys' Fees; Waiver of Jury Trial. . . . . 23
(c) Time of Essence. . . . . . . . . . . . . . . . 23
(d) Headings; Joint and Several. . . . . . . . . . 23
(e) Reserved Area. . . . . . . . . . . . . . . . . 23
(f) No Option. . . . . . . . . . . . . . . . . . . 24
(g) Use of Project Name; Improvements. . . . . . . 24
(h) Rules and Regulations. . . . . . . . . . . . . 24
(i) Quiet Possession . . . . . . . . . . . . . . . 24
(j) Rent . . . . . . . . . . . . . . . . . . . . . 24
(k) Successors and Assigns . . . . . . . . . . . . 24
(l) Notices. . . . . . . . . . . . . . . . . . . . 24
(m) Persistent Delinquencies . . . . . . . . . . . 24
(n) Right of Landlord to Perform . . . . . . . . . 24
(o) Access, Changes in Project, Facilities, Name . . 25
(p) Signing Authority. . . . . . . . . . . . . . . 25
(q) Identification of Tenant . . . . . . . . . . . 25
(r) Intentionally Omitted. . . . . . . . . . . . . 26
(s) Survival of Obligations. . . . . . . . . . . . 26
(t) Confidentiality. . . . . . . . . . . . . . . . 26
(u) Governing Law. . . . . . . . . . . . . . . . . 26
(v) Exhibits . . . . . . . . . . . . . . . . . . . 27
(w) Independent Covenants. . . . . . . . . . . . . 27
(x) Counterparts . . . . . . . . . . . . . . . . . 27
ARTICLE 31 Right of First Offer . . . . . . . . . . . . . . . .
. 27
ARTICLE 32 Eyebrow Signage. . . . . . . . . . . . . . . . . . .
. 28
Exhibit "A" Premises
Exhibit "B" Rules and Regulations
Exhibit "C" Notice of Lease Term Dates and Tenant's
Proportionate Share
Exhibit "D" Tenant Work Letter
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INDEX OF DEFINED TERMS
----------------------
DEFINED TERMS PAGE
------------- ---------
<S> <C>
Additional Rent. . . . . . . . . . . . . . . . . . . . . . . .
3
Alterations. . . . . . . . . . . . . . . . . . . . . . . . . .
7
Approved Working Drawings. . . . . . . . . . . . . . . . . .
.Exhibit D
Architect. . . . . . . . . . . . . . . . . . . . . . . . . .
.Exhibit D
Base Year. . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Basic Rental . . . . . . . . . . . . . . . . . . . . . . . . .
1
Brokers. . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Commencement Date. . . . . . . . . . . . . . . . . . . . . . .
1
Contractor . . . . . . . . . . . . . . . . . . . . . . . . .
.Exhibit D
Direct Costs . . . . . . . . . . . . . . . . . . . . . . . . .
3
Estimate . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Estimate Statement . . . . . . . . . . . . . . . . . . . . . .
4
Estimated Excess . . . . . . . . . . . . . . . . . . . . . . .
4
Event of Default . . . . . . . . . . . . . . . . . . . . . . .
16
Excess . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Expiration Date. . . . . . . . . . . . . . . . . . . . . . . .
1
First Month's Rent . . . . . . . . . . . . . . . . . . . . . .
2
Force Majeure. . . . . . . . . . . . . . . . . . . . . . . . .
20
Hazardous Material . . . . . . . . . . . . . . . . . . . . . .
22
Landlord . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Lease Year . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Operating Costs. . . . . . . . . . . . . . . . . . . . . . . .
3
Over-Allowance Amount. . . . . . . . . . . . . . . . . . . .
.Exhibit D
Parking Passes . . . . . . . . . . . . . . . . . . . . . . . .
2
Partnership Tenant . . . . . . . . . . . . . . . . . . . . . .
26
Permitted Use. . . . . . . . . . . . . . . . . . . . . . . . .
2
Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . .
.Exhibit D
Premises . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Project. . . . . . . . . . . . . . . . . . . . . . . . . . . .
I
Real Property. . . . . . . . . . . . . . . . . . . . . . . . .
3
Security Deposit . . . . . . . . . . . . . . . . . . . . . . .
2
Square Footage . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement. . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Tax Costs. . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Tenant Delays. . . . . . . . . . . . . . . . . . . . . . . .
.Exhibit D
Tenant Improvements. . . . . . . . . . . . . . . . . . . . . .
7
Tenant's Proportionate Share . . . . . . . . . . . . . . . . .
2
Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Transfer Premium . . . . . . . . . . . . . . . . . . . . . . .
14
Transferee . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Working Drawings . . . . . . . . . . . . . . . . . . . . . .
.Exhibit D
</TABLE>
<PAGE>
STANDARD OFFICE LEASE
---------------------
This Standard Office Lease ("Lease") is made and entered into as
of this
27th day of November, 2001, by and between ARDEN REALTY LIMITED
PARTNERSHIP, a
Maryland limited partnership ("Landlord"), and ALLCOM USA, INC.,
a Nevada
corporation ("Tenant").
Tenant hereby leases from Landlord the premises described as
Suite No. 250,
as designated on the plan attached hereto and incorporated
herein as Exhibit "A"
("Premises"), of the project ("Project") whose address is 10390
Commerce Center
Drive, Rancho Cucamonga, California, for the Term and upon the
terms and
conditions hereinafter set forth, and Landlord and Tenant hereby
agree as
follows:
<TABLE>
<CAPTION>
ARTICLE 1
---------
BASIC LEASE PROVISIONS
----------------------
<S> <C> <C>
A. TERM: Thirty-seven (37) months.
COMMENCEMENT DATE: The earlier of (i) the date Tenant first
commences
to conduct business in the Premises, or (ii) the date
of Substantial Completion of Improvements in the
Premises (but not earlier than January 1, 2002
unless due to Tenant having commenced to
conduct business).
EXPIRATION DATE: The date immediately preceding the
thirty-seventh
month following the Commencement Date;
provided, however, that if the Commencement
Date is a date other than the first day of a month,
the Expiration Date shall be the last day of the
month which is thirty-seven (37) months after the
month in which the Commencement Date falls,
unless extended or earlier terminated pursuant to
this Lease.
B. SQUARE FOOTAGE: 2,422 rentable square feet.
C. BASIC RENTAL:
Annual Monthly Monthly Basic Rental
Lease Month Basic Rental Basic Rental Per Rentable Square
Foot
----------- ------------ ------------
------------------------
1 Free Free Free
2-12 N/A $3,511.90 $1.45
13-24 $43,596.00 $3,633.00 $1.50
25-37 $45,049.20 $3,754.10 $1.55
D. BASE YEAR: 2001
E. TENANT'S PROPORTIONATE SHARE: 3.01%
F. SECURITY DEPOSIT: A security deposit of $3,754.10 shall be
due and
payable by Tenant to Landlord upon Tenant's
execution of this Lease.
G. PERMITTED USE: General office use.
H. BROKERS: Rose Management Group
<PAGE>
I. PARKING PASSES: Tenant shall rent four (4) unreserved
parking
passes for each 1,000 rentable square feet
contained in the Premises, which equals ten (10
passes, at the rate provided in Article 23 hereof.
J. INITIAL INSTALLMENT OF BASIC The first full month's Basic
Rental of $3,511.90
RENTAL: (which shall be applied to Tenant's Basic Rental
obligation for the second (2nd) month of the Term)
shall be due and payable by Tenant to Landlord
upon Tenant's execution of this Lease.
</TABLE>
ARTICLE 2
---------
TERM/PREMISES
-------------
The Term of this Lease shall commence on the Commencement Date
as set forth
in Article 1.A. of the Basic Lease Provisions and shall end on
the Expiration
Date set forth in Article 1.A. of the Basic Lease Provisions.
For purposes of
this Lease, the term "LEASE YEAR" shall mean each consecutive
twelve (12) month
period during the Lease Term, with the first Lease Year
commencing on the
Commencement Date; however, (a) if the Commencement Date falls
on a day other
than the first day of a calendar month, the first Lease Year
shall end on the
last day of the eleventh (11th) month after the Commencement
Date and the second
(2nd) and each succeeding Lease Year shall commence on the first
day of the next
calendar month, and (b) the last Lease Year shall end on the
Expiration Date. If
Landlord does not deliver possession of the Premises to Tenant
on or before the
anticipated Commencement Date (as set forth in Article 1.A,
above), Landlord
shall not be subject to any liability for its failure to do so,
and such failure
shall not affect the validity of this Lease nor the obligations
of Tenant
hereunder. Landlord and Tenant hereby stipulate that the
Premises contains the
number of square feet specified in Article 1.B. of the Basic
Lease Provisions,
except that the rentable and usable square feet of the Premises
and the Project
are subject to verification from time to time by Landlord's
architect/space
planner. In the event that Landlord's architect/space planner
determines that
the amounts thereof shall be different from those set forth in
this Lease, all
amounts, percentages and figures appearing or referred to in
this Lease based
upon such incorrect amount (including, without limitation, the
amount of the
Basic Rental, Tenant's Proportionate Share, and the "Improvement
Allowance," as
that term is defined in Section 2 of the Tenant Work Letter)
shall be modified
in accordance with such determination. If such determination is
made, it will be
confirmed in writing by Landlord to Tenant. Landlord may deliver
to Tenant a
Commencement Letter in a form substantially similar to that
attached hereto as
Exhibit "C", which Tenant shall execute and return to Landlord
within five (5)
days of receipt thereof. Failure of Tenant to timely execute and
deliver the
Commencement Letter shall constitute an acknowledgment by Tenant
that the
statements included in such notice are true and correct, without
exception.
ARTICLE 3
---------
RENTAL
------
(a) Basic Rental. Tenant agrees to pay to Landlord during
the
-------------
Term hereof, at Landlord's office or to such other person or at
such other place
as directed from time to time by written notice to Tenant from
Landlord, the
initial monthly and annual sums as set forth in Article 1.C of
the Basic Lease
Provisions, payable in advance on the first day of each calendar
month, without
demand, setoff or deduction, and in the event this Lease
commences or the date
of expiration of this Lease occurs other than on the first day
or last day of a
calendar month, the rent for such month shall be prorated.
Notwithstanding the
foregoing, the first full month's Basic Rental shall be paid to
Landlord in
accordance with Article 1.J. of the Basic Lease Provisions.
(b) Increase in Direct Costs. The term "BASE YEAR" means the
calendar
--------------------------
year set forth in Article 1.D. of the Basic Lease Provisions.
If, in any
calendar year during the Term of this Lease, the "Direct Costs"
(as hereinafter
defined) paid or incurred by Landlord shall be higher than the
Direct Costs for
the Base Year, Tenant shall pay an additional sum for each such
subsequent
calendar year equal to the product of the amount set forth in
Article 1.E. of
the Basic Lease Provisions multiplied by such increased amount
of Direct Costs.
In the event either the Premises and/or the Project is expanded
or reduced, then
Tenant's Proportionate Share shall be
<PAGE>
appropriately adjusted, and as to the calendar year in which
such change occurs,
Tenant's Proportionate Share for such calendar year shall be
determined on the
basis of the number of days during that particular calendar year
that such
Tenant's Proportionate Share was in effect. In the event this
Lease shall
terminate on any date other than the last day of a calendar
year, the additional
sum payable hereunder by Tenant during the calendar year in
which this Lease
terminates shall be prorated on the basis of the relationship
which the number
of days which "have elapsed from the commencement of said
calendar year to and
including said date on which this Lease terminates bears to
three hundred sixty
five (365), Any and all amounts due and payable by Tenant
pursuant to this Lease
(other than Basic Rental) shall be deemed "ADDITIONAL RENT" and
Landlord shall
be entitled to exercise the same rights and remedies upon
default in these
payments as Landlord is entitled to exercise with respect to
defaults in monthly
Basic Rental payments.
(c) Definitions. As used herein the term "DIRECT COSTS" shall
mean
-----------
the sum of the following:
(i) "TAX COSTS", which shall mean any and all real estate
taxes and other similar charges on real property or
improvements, assessments,
water and sewer charges, and all other charges assessed,
reassessed or levied
upon the Project and appurtenances thereto and the parking or
other facilities
thereof, or the real property thereunder (collectively the "REAL
PROPERTY") or
attributable thereto or on the rents, issues, profits or income
received or
derived therefrom which are assessed, reassessed or levied by
the United States,
the State of California or any local government authority or
agency or any
political subdivision thereof, and shall include Landlord's
reasonable legal
fees, costs and disbursements incurred in connection with
proceedings for
reduction of Tax Costs or any pan thereof; provided, however, if
at any time
after the date of this Lease the methods of taxation now
prevailing shall be
altered so that in lieu of or as a supplement to or a substitute
for the whole
or any part of any Tax Costs, there shall be assessed,
reassessed or levied (a)
a tax, assessment, reassessment, levy, imposition or charge
wholly or partially
as a net income, capital or franchise levy or otherwise on the
rents, issues,
profits or income derived therefrom, or (b) a tax, assessment,
reassessment,
levy (including but not limited to any municipal, state or
federal levy),
imposition or charge measured by or based in whole or in part
upon the Real
Property and imposed upon Landlord, or (c) a license fee
measured by the rent
payable under this Lease, then all such taxes, assessments,
reassessments or
levies or the part thereof so measured or based, shall be deemed
to be included
in the term "Direct Costs." In no event shall Tax Costs included
in Direct Costs
for any year subsequent to the Base Year be less than the amount
of Tax Costs
included in Direct Costs for the Base Year. In addition, when
calculating Tax
Costs for the Base Year, special assessments shall only be
deemed included in
Tax Costs for the Base Year to the extent that such special
assessments are
included in Tax Costs for the applicable subsequent calendar
year during the
Term.
(ii) "OPERATING COSTS", which shall mean all costs and
expenses incurred by Landlord in connection with the
maintenance, operation,
replacement, ownership and repair of the Project, the equipment,
the
intrabuilding cabling and wiring, adjacent walks, malls and
landscaped and
common areas and the parking structure, areas and facilities of
the Project,
including, but not limited to, salaries, wages, medical,
surgical and general
welfare benefits and pension payments, payroll taxes, fringe
benefits,
employment taxes, workers' compensation, uniforms and dry
cleaning thereof for
all persons who perform duties connected with the operation,
maintenance and
repair of the Project, its equipment, the intrabuilding cabling
and wiring and
the adjacent walks and landscaped areas, including janitorial,
gardening,
security, parking, operating engineer, elevator, painting,
plumbing, electrical,
carpentry, heating, ventilation, air conditioning, window
washing, hired
services, a reasonable allowance for depreciation of the cost of
acquiring or
the rental expense of persona! property used in the maintenance,
operation and
repair of the Project, accountant's fees incurred in the
preparation of rent
adjustment statements, legal fees, real estate tax consulting
fees, personal
property taxes on property used in the maintenance and operation
of the Project,
fees, costs, expenses or dues payable pursuant to the terms of
any covenants,
conditions or restrictions or owners' association pertaining to
the Project,
capital expenditures incurred to effect economies of operation
of, or stability
of services to, the Project and capital expenditures required by
government
regulations, laws, or ordinances including, but not limited to
the Americans
with Disabilities Act; costs incurred (capital or otherwise) on
a regular
recurring basis every three (3) or more years for certain
maintenance projects
(e.g., parking lot slurry coat or replacement of lobby and
elevator cab
carpeting); the cost of all charges for electricity, gas, water
and other
utilities furnished to the Project, including any taxes thereon;
the cost of all
charges for fire and extended coverage,
<PAGE>
liability and all other insurance in connection with the Project
carried by
Landlord; the cost of all building and cleaning supplies and
materials; the cost
of all charges for cleaning, maintenance and service contracts
and other
services with independent contractors and administration fees; a
property
management fee (which fee may be imputed if Landlord has
internalized management
or otherwise acts as its own property manager) and license,
permit and
inspection fees relating to the Project. In the event, during
any calendar year,
the Project is less than ninety-five percent (95%) occupied at
all times,
Operating Costs shall be adjusted to reflect the Operating Costs
of the Project
as though ninety-five percent (95%) were occupied at all times,
and the increase
or decrease in the sums owed hereunder shall be based upon such
Operating Costs
as so adjusted. In no event shall costs for any item of
utilities included in
Direct Costs for any year subsequent to the Base Year be less
than the amount
included in Direct Costs for the Base Year for such utility
item.
Notwithstanding anything to the contrary set forth in this
Article 3, when
calculating Operating Costs for the Base Year, Operating Costs
shall exclude (a)
market-wide labor-rate increases due to extraordinary
circumstances including,
but not limited to, boycotts and strikes, (b) utility rate
increases due to
extraordinary circumstances including, but not limited to,
conservation
surcharges, boycotts, embargoes or other shortages, and (c)
amortization of any
capital items including, but not limited to, capital
improvements, capital
repairs and capital replacements (including such amortized costs
where the
actual improvement, repair or replacement was made in prior
years).
(d) Determination of Payment.
--------------------------
(i) If for any calendar year ending or commencing within the
Term, Tenant's Proportionate Share of Direct Costs for such
calendar year
exceeds Tenant's Proportionate Share of Direct Costs for the
Base Year, then
Tenant shall pay to Landlord, in the manner set forth in
Sections 3(d)(ii) and
(iii), below, and as Additional Rent, an amount equal to the
excess (the
"EXCESS").
(ii) Landlord shall give Tenant a yearly expense estimate
statement
(the "ESTIMATE STATEMENT") which shall set forth Landlord's
reasonable estimate
(the "ESTIMATE") of what the total amount of Direct Costs for
the then-current
calendar year shall be and the estimated Excess (the "ESTIMATED
EXCESS") as
calculated by comparing Tenant's Proportionate Share of Direct
Costs for such
calendar year, which shall be based upon the Estimate, to
Tenant's Proportionate
Share of Direct Costs for the Base Year. The failure of Landlord
to timely
furnish the Estimate Statement for any calendar year shall not
preclude Landlord
from subsequently enforcing its rights to collect any Estimated
Excess under
this Article 3, once such Estimated Excess has been determined
by Landlord. If
pursuant to the Estimate Statement an Estimated Excess is
calculated for the
then-current calendar year, Tenant shall pay, with its next
installment of
monthly Basic Rental due, a fraction of the Estimated Excess for
the
then-current calendar year (reduced by any amounts paid pursuant
to the last
sentence of this Section 3(d)(ii)). Such fraction shall have as
its numerator
the number of months which have elapsed in such current calendar
year to the
month of such payment, both months inclusive, and shall have
twelve (12) as its
denominator, Until a new Estimate Statement is furnished, Tenant
shall pay
monthly, with the monthly Basic Rental installments, an amount
equal to
one-twelfth (1/12) of the total Estimated Excess set forth in
the previous
Estimate Statement delivered by Landlord to Tenant.
(iii) In addition, Landlord shall endeavor to give to Tenant
as soon as reasonably practicable following the end of each
calendar year, a
statement (the "STATEMENT") which shall state the Direct Costs
incurred or
accrued for such preceding calendar year, and which shall
indicate the amount,
if any, of the Excess. Upon receipt of the Statement for each
calendar year
during the Term, if amounts paid by Tenant as Estimated Excess
are less than the
actual Excess as specified on the Statement, Tenant shall pay,
with its next
installment of monthly Basic Rental due, the full amount of the
Excess for such
calendar year, less the amounts, if any, paid during such
calendar year as
Estimated Excess. If, however, the Statement indicates that
amounts paid by
Tenant as Estimated Excess are greater than the actual Excess as
specified on
the Statement, such overpayment shall be credited against
Tenant's next
installments of Estimated Excess. The failure of Landlord to
timely furnish the
Statement for any calendar year shall not prejudice Landlord
from enforcing its
rights under this Article 3, once such Statement has been
delivered. Even though
the Term has expired and Tenant has vacated the Premises, when
the final
determination is made of Tenant's Proportionate Share of the
Direct Costs for
the calendar year in which this Lease terminates, if an Excess
is present,
Tenant shall immediately pay to Landlord an amount as calculated
pursuant to the
provisions of this
<PAGE>
Article 3(d). The provisions of this Section 3(d){iii) shall
survive the
expiration or earlier termination of the Term.
(iv) If the Project is a part of a multi-building
development,
those Direct Costs attributable to such development as a whole
(and not
attributable solely to any individual building therein) shall be
allocated by
Landlord to the Project and to the other buildings within such
development on an
equitable basis.
ARTICLE 4
---------
SECURITY DEPOSIT
----------------
Tenant shall deposit with Landlord the sum set forth in Article
1.F. of the
Basic Lease Provisions as security for the full and faithful
performance of
every provision of this Lease to be performed by Tenant. If
Tenant breaches any
provision of this Lease, including but not limited to the
payment of rent,
Landlord may use all or any part of this security deposit for
the payment of any
rent or any other sums in default, or to compensate Landlord for
any other loss
or damage which Landlord may suffer by reason of Tenant's
default. If any
portion of said deposit is so used or applied, Tenant shall,
within five (5)
days after written demand therefor, deposit cash with Landlord
in an amount
sufficient to restore the security deposit to its full amount.
Tenant agrees
that Landlord shall not be required to keep the security deposit
in trust,
segregate it or keep it separate from Landlord's general funds,
but Landlord may
commingle the security deposit with its general funds and Tenant
shall not be
entitled to interest on such deposit. At the expiration of the
Lease Term, and
provided there exists no default by Tenant hereunder, the
security deposit or
any balance thereof shall be returned to Tenant (or, at
Landlord's option, to
Tenant's "Transferee," as such term is defined in Article 15
below), provided
that subsequent to the expiration of this Lease, Landlord may
retain from said
security deposit (i) an amount reasonably estimated by Landlord
to cover
potential Direct Cost reconciliation payments due with respect
to the calendar
year in which this Lease terminates or expires (such amount so
retained shall
not, in any event, exceed ten percent (10%) of estimated Direct
Cost payments
due from Tenant for such calendar year through the date of
expiration or earlier
termination of this Lease and any amounts so retained and not
applied to such
reconciliation shall be returned to Tenant within thirty (30)
days after
Landlord's delivery of the Statement for such calendar year),
(ii) any and all
amounts reasonably estimated by Landlord to cover the
anticipated costs to be
incurred by Landlord to remove any signage provided to Tenant
under this Lease,
to remove cabling and other items required to be removed by
Tenant under Article
29 (b) below and to repair any damage caused by such removal (in
which case any
excess amount so retained by Landlord shall be returned to
Tenant within thirty
(30) days after such removal and repair), and (iii) any and all
amounts
permitted by law or this Article 4. Tenant hereby waives the
provisions of
Section 1950.7 of the California Civil Code and all other
provisions of law, now
or hereafter in effect, which provide that Landlord may claim
from a security
deposit only those sums reasonably necessary to remedy defaults
in the payment
of rent, to repair damage caused by Tenant or to clean the
Premises, it being
agreed that Landlord may, in addition, claim those sums
specified in this
Article 4 above and/or those sums reasonably necessary to
compensate Landlord
for any other loss or damage, foreseeable or unforeseeable,
caused by the acts
or omissions of Tenant or any officer, employee, agent,
contractor or invitee of
Tenant.
ARTICLE 5
---------
HOLDING OVER
------------
Should Tenant, without Landlord's written consent, hold over
after
termination of this Lease, Tenant shall become a tenant at
sufferance upon each
and all of the terms herein provided as may be applicable to
such a tenancy and
any such holding over shall not constitute an extension of this
Lease. During
such holding over, Tenant shall pay in advance, monthly, Basic
Rental at a rate
equal to three times the rate in effect for the last month of
the Term of this
Lease or three times Landlord's then asking rate for comparable
space in the
Project, whichever is greater, in addition to, and not in lieu
of, all other
payments required to be made by Tenant hereunder including but
not limited to
Tenant's Proportionate Share of any increase in Direct Costs.
Nothing contained
in this Article 5 shall be construed as consent by Landlord to
any holding over
of the Premises by Tenant, and Landlord expressly reserves the
right to require
Tenant to surrender possession of the Premises to Landlord as
provided in this
Lease upon the expiration or earlier termination of the Term. If
Tenant fails to
surrender the Premises upon the
<PAGE>
expiration or termination of this Lease, Tenant agrees to
indemnify, defend and
hold Landlord harmless from all costs, loss, expense or
liability, including
without limitation, claims made by and real estate brokers
claims and attorney's
fees and costs.
ARTICLE 6
---------
PERSONAL PROPERTY TAXES
-----------------------
Tenant shall pay, prior to delinquency, all taxes assessed
against or
levied upon trade fixtures, furnishings, equipment and all other
personal
property of Tenant located in the Premises. In the event any or
all of Tenant's
trade fixtures, furnishings, equipment and other personal
property shall be
assessed and taxed with property of Landlord, or if the cost or
value of any
leasehold improvements in the Premises exceeds the cost or value
of a
Project-standard buildout as determined by Landlord and, as a
result, real
property taxes for the Project are increased. Tenant shall pay
to Landlord,
within ten (10) days after delivery to Tenant by Landlord of a
written statement
setting forth such amount, the amount of such taxes applicable
to Tenant's
property or above-standard improvements. Tenant shall assume and
pay to Landlord
at the time Basic Rental next becomes due (or if assessed after
the expiration
of the Term, then within ten (10) days), any excise, sales, use,
rent,
occupancy, garage, parking, gross receipts or other taxes (other
than net income
taxes) which may be imposed on or on account of the letting of
the Premises or
the payment of Basic Rental or any other sums due or payable
hereunder, and
which Landlord may be required to pay or collect under any law
now in effect or
hereafter enacted. Tenant shall pay directly to the party or
entity entitled
thereto all business license fees, gross receipts taxes and
similar taxes and
impositions which may from time to time be assessed against or
levied upon
Tenant, as and when the same become due and before delinquency.
Notwithstanding
anything to the contrary contained herein, any sums payable by
Tenant under this
Article 6 shall not be included in the computation of "Tax
Costs."
ARTICLE 7
---------
USE
---
Tenant shall use and occupy the Premises only for the use set
forth in
Article 1.G. of the Basic Lease Provisions and shall not use or
occupy the
Premises or permit the same to be used or occupied for any other
purpose without
the prior written consent of Landlord, which consent may be
given or withheld in
Landlord's sole and absolute discretion, and Tenant agrees that
it will use the
Premises in such a manner so as not to interfere with or
infringe upon the
rights of other tenants or occupants in the Project. Tenant
shall, at its sole
cost and expense, promptly comply with all laws, statutes,
ordinances,
governmental regulations or requirements now in force or which
may hereafter be
in force relating to or affecting (i) the condition, use or
occupancy of the
Premises or the Project (excluding structural changes to the
Project not related
to Tenant's particular use of the Premises), and (ii)
improvements installed or
constructed in the Premises by or for the benefit of Tenant.
Tenant shall not
permit more than six (6) people per one thousand (1,000)
rentable square feet of
the Premises to occupy the Premises at any time. Tenant shall
not do or permit
to be done anything which would invalidate or increase the cost
of any fire and
extended coverage insurance policy covering the Project and/or
the property
located therein and Tenant shall comply with all rules, orders,
regulations and
requirements of any organization which sets out standards,
requirements or
recommendations commonly referred to by major fire insurance
underwriters, and
Tenant shall promptly upon demand reimburse Landlord for any
additional premium
charges for any such insurance policy assessed or increased by
reason of
Tenant's failure to comply with the provisions of this
Article.
ARTICLE 8
---------
CONDITION OF PREMISES
---------------------
Tenant hereby agrees that the Premises shall be taken "as is",
"with all
faults", "without any representations or warranties", and Tenant
hereby agrees
and warrants that it has investigated and inspected the
condition of the
Premises and the suitability of same for Tenant's purposes, and
Tenant does
hereby waive and disclaim any objection to, cause of action
based upon, or claim
that its obligations hereunder should be reduced or limited
because of the
condition of the Premises or the Project or the suitability of
same for Tenant's
purposes. Tenant acknowledges that neither Landlord nor any
agent nor any
employee of Landlord has made any
<PAGE>
representations or warranty with respect to the Premises or the
Project or with
respect to the suitability of either for the conduct of Tenant's
business and
Tenant expressly warrants and represents that Tenant has relied
solely on its
own investigation and inspection of the Premises and the Project
in its decision
to eater into this Lease and let the Premises in the
above-described condition.
The Premises shall be initially improved as provided in, and
subject to, the
Tenant Work Letter attached hereto as Exhibit "D" and made a
part hereof. The
existing leasehold improvements in the Premises as of the date
of this Lease,
together with the Improvements (as defined in the Tenant Work
Letter) may be
collectively referred to herein as the "TENANT IMPROVEMENTS."
The taking of
possession of the Premises by Tenant shall conclusively
establish that the
Premises and the Project were at such time in satisfactory
condition. Tenant
hereby waives subsection 1 of Section 1932 and Sections 1941 and
1942 of the
Civil Code of California or any successor provision of law.
ARTICLE 9
---------
REPAIRS AND ALTERATIONS
-----------------------
(a) LANDLORD'S OBLIGATION. Landlord shall maintain the
structural
portions of the Project, including the foundation, floor/ceiling
slabs, roof,
curtain wall, exterior glass, columns, beams, shafts, stairs,
stairwells,
elevator cabs and common areas, and shall also maintain and
repair the base
building mechanical, electrical, life safety, plumbing,
sprinkler systems and
heating, ventilating and air-conditioning systems (provided,
however, that
Landlord's obligation with respect to any such systems shall be
to repair and
maintain those portions of the systems located in the core of
the Project or in
other areas outside of the Premises, but Tenant shall be
responsible to repair
and maintain any distribution of such systems throughout the
Premises).
(b) TENANT'S OBLIGATION. Except as expressly provided as
Landlord's
obligation in this Article 9, Tenant shall keep the Premises in
good condition
and repair. All damage or injury to the Premises or the Project
resulting from
the act or negligence of Tenant, its employees, agents or
visitors, guests,
invitees or licensees, or by the use of the Premises, shall be
promptly repaired
by Tenant at its sole cost and expense, to the satisfaction of
Landlord;
provided, however, that for damage to the Project as a result of
casualty or for
any repairs that may impact the mechanical, electrical,
plumbing, heating,
ventilation or air-conditioning systems of the Project, Landlord
shall have the
right (but not the obligation) to select the contractor and
oversee all such
repairs. Landlord may make any repairs which are not promptly
made by Tenant
after Tenant's receipt of written notice and the reasonable
opportunity of
Tenant to make said repair within five (5) business days from
receipt of said
written notice, and charge Tenant for the cost thereof, which
cost shall be paid
by Tenant within five (5) days from invoice from Landlord.
Tenant shall be
responsible for the design and function of all non-standard
improvements of the
Premises, whether or not installed by Landlord at Tenant's
request. Tenant
waives all rights to make repairs at the expense of Landlord, or
to deduct the
cost thereof from the rent.
(c) ALTERATIONS. Tenant shall make no alterations,
installations,
changes or additions in or to the Premises or the Project
(collectively,
"ALTERATIONS") without Landlord's prior written consent. Any
Alterations
approved by Landlord must be performed in accordance with the
terms hereof,
using only contractors or mechanics approved by Landlord in
writing and upon the
approval by Landlord in writing of folly detailed and
dimensioned plans and
specifications pertaining to the Alterations in question, to be
prepared and
submitted by Tenant at its sole cost and expense. Tenant shall
at its sole cost
and expense obtain all necessary approvals and permits
pertaining to any
Alterations approved by Landlord, Tenant shall cause all
Alterations to be
performed in a good and workmanlike manner, in conformance with
all applicable
federal, state, county and municipal laws, rules and
regulations, pursuant to a
valid building permit, and in conformance with Landlord's
construction rules and
regulations. If Landlord, in approving any Alterations,
specifies a commencement
date therefor, Tenant shall not commence any work with respect
to such
Alterations prior to such date. Tenant hereby agrees to
indemnify, defend, and
hold Landlord free and harmless from all liens and claims of
lien, and all other
liability, claims and demands arising out of any work done or
material supplied
to the Premises by or at the request of Tenant in connection
with any
Alterations.
(d) INSURANCE; LIENS. Prior to the commencement of any
Alterations,
Tenant shall provide Landlord with evidence that Tenant carries
"Builder's All
Risk" insurance in an amount approved by Landlord covering the
construction of
such Alterations, and such other insurance as Landlord may
reasonably require,
it being understood that all such Alterations shall be
insured
<PAGE>
by Tenant pursuant to Article 14 of this Lease immediately upon
completion
thereof. In addition, Landlord may, in its discretion, require
Tenant to obtain
a lien and completion bond or some alternate form of security
satisfactory to
Landlord in an amount sufficient to ensure the lien free
completion of such
Alterations and naming Landlord as a co-obligee.
(e) COSTS AND FEES; REMOVAL. If permitted Alterations are
made,
they shall be made at Tenant's sole cost and expense and shall
be and become the
property of Landlord, except that Landlord may, by written
notice to Tenant
given prior to the end of the Term, require Tenant at Tenant's
expense to remove
all partitions, counters, railings, cabling and other
Alterations installed by
Tenant, and to repair any damage to the Premises and the Project
caused by such
removal. Any and all costs attributable to or related to the
applicable building
codes of the city in which the Project is located (or any other
authority having
jurisdiction over the Project) arising from Tenant's plans,
specifications,
improvements, Alterations or otherwise shall be paid by Tenant
at its sole cost
and expense. With regard to repairs, Alterations or any other
work arising from
or related to this Article 9, Landlord shall be entitled to
receive an
administrative/coordination fee (which fee shall vary depending
upon whether or
not Tenant orders the work directly from Landlord) sufficient to
compensate
Landlord for all overhead, general conditions, fees and other
costs and expenses
arising from Landlord's involvement with such work. The
construction of initial
improvements to the Premises shall be governed by the terms of
the Tenant Work
Letter and not the terms of this Article 9.
ARTICLE 10
----------
LIENS
-----
Tenant shall keep the Premises and the Project free from any
mechanics'
liens, vendors liens or any other liens arising out of any work
performed,
materials furnished or obligations incurred by Tenant, and
Tenant agrees to
defend, indemnify and hold Landlord harmless from and against
any such lien or
claim or action thereon, together with costs of suit and
reasonable attorneys'
fees and costs incurred by Landlord in connection with any such
claim or action.
Before commencing any work of alteration, addition or
improvement to the
Premises, Tenant shall give Landlord at least ten (10) business
days' written
notice of the proposed commencement of such work (to afford
Landlord an
opportunity to post appropriate notices of non-responsibility).
In the event
that there shall be recorded against the Premises or the Project
or the property
of which the Premises is a part any claim or lien arising out of
any such work
performed, materials furnished or obligations incurred by Tenant
and such claim
or lien shall not be removed or discharged within ten (10) days
of filing,
Landlord shall have the right but not the obligation to pay and
discharge said
lien without regard to whether such lien shall be lawful or
correct, or to
require that Tenant promptly deposit with Landlord in cash,
lawful money of the
United States, one hundred fifty percent (150%) of the amount of
such claim,
which sum may be retained by Landlord until such claim shall
have been removed
of record or until judgment shall have been rendered on such
claim and such
judgment shall have become final, at which time Landlord shall
have the right to
apply such deposit in discharge of the judgment on said claim
and any costs,
including attorneys' fees and costs incurred by Landlord, and
shall remit the
balance thereof to Tenant.
ARTICLE 11
----------
PROJECT SERVICES
----------------
(a) BASIC SERVICES. Landlord agrees to furnish to the Premises,
at
a cost to be included in Operating Costs, from 8:00 a.m. to 6:00
p.m. Mondays
through Fridays and 9:00 a.m. to 1:00 p.m. on Saturdays,
excepting local and
national holidays, air conditioning and heat all in such
reasonable quantities
as in the judgment of Landlord is reasonably necessary for the
comfortable
occupancy of the Premises. In addition, Landlord shall provide
electric current
for normal lighting and normal office machines, elevator service
and water on
the same floor as the Premises for lavatory and drinking
purposes in such
reasonable quantities as in the judgment of Landlord is
reasonably necessary for
general office use and in compliance with applicable codes.
Janitorial and
maintenance services shall be furnished five (5) days per week,
excepting local
and national holidays. Tenant shall comply with all rules and
regulations which
Landlord may establish for the proper functioning and protection
of the common
area air conditioning, heating, elevator, electrical,
intrabuilding cabling and
wiring and plumbing systems. Landlord shall not be liable for,
and there shall
be no rent abatement as a result of, any stoppage, reduction
or
<PAGE>
interruption of any such services caused by governmental rules,
regulations or
ordinances, riot, strike, labor disputes, breakdowns, accidents,
necessary
repairs or other cause. Except as specifically provided in this
Article 11,
Tenant agrees to pay for all utilities and other services
utilized by Tenant and
any additional building services furnished to Tenant which are
not uniformly
furnished to all tenants of the Project, at the rate generally
charged by
Landlord to tenants of the Project for such utilities or
services.
(b) EXCESS USAGE. Tenant will not, without the prior written
consent
of Landlord, use any apparatus or device in the Premises which
will in any way
increase the amount of electricity or water usually furnished or
supplied for
use of the Premises as general office space; nor connect any
apparatus, machine
or device with water pipes or electric current (except through
existing
electrical outlets in the Premises), for the purpose of using
electric current
or water.
(c) ADDITIONAL ELECTRICAL SERVICE. If Tenant shall require
electric
current in excess of that which Landlord is obligated to furnish
under Article
1l(a) above, Tenant shall first obtain the written consent of
Landlord, which
Landlord may refuse in its sole and absolute discretion.
Additionally, Landlord
may cause an electric current meter or submeter to be installed
in or about the
Premises to measure the amount of any such excess electric
current consumed by
Tenant in the Premises. The cost of any such meter and of
installation,
maintenance and repair thereof shall be paid for by Tenant and
Tenant agrees to
pay to Landlord, promptly upon demand therefor by Landlord, for
all such excess
electric current consumed by any such use as shown by said meter
at the rates
charged for such service by the city in which the Project is
located or the
local public utility, as the case may be, furnishing the same,
plus any
additional expense incurred by Landlord in keeping account of
the electric
current so consumed.
(d) HVAC BALANCE. If any lights, machines or equipment
(including but
not limited to computers and computer systems and appurtenances)
are used by
Tenant in the Premises which materially affect the temperature
otherwise
maintained by the air conditioning system, or generate
substantially more heat
in the Premises than would be generated by the building standard
lights and
usual office equipment, Landlord shall have the right to install
any machinery
and equipment which Landlord reasonably deems necessary to
restore temperature
balance, including but not limited to modifications to the
standard air
conditioning equipment, and the cost thereof, including the cost
of installation
and any additional cost of operation and maintenance occasioned
thereby, shall
be paid by Tenant to Landlord upon demand by Landlord.
(e) TELECOMMUNICATIONS. Upon request from Tenant from time to
time,
Landlord will provide Tenant with a listing of
telecommunications and media
service providers serving the Project, and Tenant shall have the
right to
contract directly with the providers of its choice. If Tenant
wishes to
contract with or obtain service from any provider which does not
currently serve
the Project or wishes to obtain from an existing carrier
services which will
require the installation of additional equipment, such provider
must, prior to
providing service, enter into a written agreement with Landlord
setting forth
the terms and conditions of the access to be granted to such
provider. In
considering the installation of any new or additional
telecommunications
cabling or equipment at the Project, Landlord will consider all
relevant factors
in a reasonable and non-discriminatory manner, including,
without limitation,
the existing availability of services at the Project, the impact
of the proposed
installations upon the Project and its operations and the
available space and
capacity for the proposed installations. Landlord may also
consider whether the
proposed service may result in interference with or interruption
of other
services at the Project or the business operations of other
tenants or occupants
of the Project. In no event shall Landlord be obligated to incur
any costs or
liabilities in connection with the installation or delivery of
telecommunication
services or facilities at the Project. All such installations
shall be subject
to Landlord's prior approval and shall be performed in
accordance with the terms
of Article 9. If Landlord approves the proposed installations in
accordance
with the foregoing, Landlord will deliver its standard form
agreement upon
request and will use commercially reasonable efforts to promptly
enter into an
agreement on reasonable and non-discriminatory terms with a
qualified, licensed
and reputable carrier confirming the terms of installation and
operation of
telecommunications equipment consistent with the foregoing.
(f) AFTER-HOURS USE. If Tenant requires heating, ventilation
and/or air
conditioning during times other than the times provided in
Article 11(a) above,
Tenant shall give Landlord such advance notice as Landlord shall
reasonably
require and shall pay Landlord's standard charge for such
after-hours use.
<PAGE>
(g) REASONABLE CHARGES. Landlord may impose a reasonable charge
for
any utilities or services (other than electric current and
heating, ventilation
and/or air conditioning which shall be governed by Articles
11(c) and (f) above)
utilized by Tenant in excess of the amount or type that Landlord
reasonably
determines is typical for general office use.
(h) SOLE ELECTRICAL REPRESENTATIVE. Tenant agrees that Landlord
shall
be the sole and exclusive representative with respect to, and
shall maintain
exclusive control over, the reception, utilization and
distribution of
electrical power, regardless of point or means of origin, use or
generation.
Tenant shall not have the right to contract directly with any
provider of
electrical power or services.
ARTICLE 12
----------
RIGHTS OF LANDLORD
------------------
(a) RIGHT OF ENTRY. Landlord and its agents shall have the right
to
----------------
enter the Premises at all reasonable times for the purpose of
cleaning the
Premises, examining or inspecting the same, serving or posting
and keeping
posted thereon notices as provided by law, or which Landlord
deems necessary for
the protection of Landlord or the Project, showing the same to
prospective
tenants, lenders or purchasers of the Project, in the case of an
emergency, and
for making such alterations, repairs, improvements or additions
to the Premises
or to the Project as Landlord may deem necessary or desirable.
If Tenant shall
not be personally present to open and permit an entry into the
Premises at any
time when such an entry by Landlord is necessary or permitted
hereunder,
Landlord may enter by means of a master key, or may forcibly
enter in the case
of an emergency, in each event without liability to Tenant and
without affecting
this Lease.
(b) MAINTENANCE WORK. Landlord reserves the right from time to
time,
-----------------
but subject to payment by and/or reimbursement from Tenant as
otherwise provided
herein: (i) to install, use, maintain, repair, replace, relocate
and control for
service to the Premises and/or other parts of the Project pipes,
ducts,
conduits, wires, cabling, appurtenant fixtures, equipment spaces
and mechanical
systems, wherever located in the Premises or the Project, (ii)
to alter, close
or relocate any facility in the Premises or the common areas or
otherwise
conduct any of the above activities for the purpose of complying
with a general
plan for fire/life safety for the Project or otherwise, and
(iii) to comply with
any federal, state or local law, rule or order. Landlord shall
attempt to
perform any such work with the least inconvenience to Tenant as
is reasonably
practicable, but in no event shall Tenant be permitted to
withhold or reduce
Basic Rental or other charges due hereunder as a result of same,
make any claim
for constructive eviction or otherwise make any claim against
Landlord for
interruption or interference with Tenant's business and/or
operations.
(c) ROOFTOP. If Tenant desires to use the rooftop of the Project
for
-------
any purpose, including the installation of communication
equipment to be used
from the Premises, such rights will be granted in Landlord's
sole discretion and
Tenant must negotiate the terms of any rooftop access with
Landlord or the
rooftop management company or lessee holding rights to the
rooftop from time to
time. Any rooftop access granted to Tenant will be at prevailing
rates and will
be governed by the terms of a separate written agreement or an
amendment to this
Lease.
ARTICLE 13
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INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY
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(a) Indemnity. Tenant shall indemnify, defend and hold Landlord
and
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Landlord's partners, members, affiliates, agents, directors,
employees and
contractors (collectively, "LANDLORD PARTIES") harmless from any
and all claims
arising from Tenant's use of the Premises or the Project or from
the conduct of
its business or from any activity, work or thing which may be
permitted or
suffered by Tenant in or about the Premises or the Project and
shall further
indemnify, defend and hold Landlord and the Landlord Parties
harmless from and
against any and all claims arising from any breach or default in
the performance
of any obligation on Tenant's part to be performed under this
Lease or arising
from any negligence or willful misconduct of Tenant or any of
its agents,
contractors, employees or invitees, patrons, customers or
members in or about
the Project and from any and all costs, attorneys' fees and
costs, expenses and
liabilities incurred in the defense of any claim or any action
or proceeding
brought thereon, including negotiations in connection therewith.
Tenant hereby
assumes all risk of damage to
<PAGE>
property or injury to persons in or about the Premises from any
cause, and
Tenant hereby waives all claims in respect thereof against
Landlord and the
Landlord Parties, excepting where the damage is caused solely by
the gross
negligence or willful misconduct of Landlord or the Landlord
Parties.
(b) Exemption of Landlord from Liability. Landlord and the
Landlord
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Parties shall mot be liable for injury to Tenant's business, or
loss of income
therefrom, however occurring (including, without limitation,
from any failure or
interruption of services or utilities), or, except in connection
with damage or
injury resulting f
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