<PAGE>
Exhibit C to Sublease, Assumption and Consent Agreement
Confidential
SUBLEASE
1.
PARTIES
This Sublease is entered into by and
between Carrier Access Corporation, Tenant,
SpectraLink Corporation, Subtenant, as a
Sublease under the Master Lease dated
December 13, 1999, as amended, entered into
by 2545 Central, LLC, as Landlord,
and the Tenant (the "Master Lease"). A copy
of the Master Lease is attached
hereto as Exhibit A.
2.
PROVISIONS CONSTITUTING SUBLEASE
(a) This
Sublease is subject to all of the terms and conditions of
the Master Lease in Exhibit A and Subtenant
shall assume and perform the
obligations of Tenant in said Master Lease,
to the extent said terms and
conditions are applicable to the premises
subleased pursuant to this Sublease
(the "Subleased Premises"). Subtenant shall
not knowingly or willfully commit or
permit to be committed on the Subleased
Premises any act or omission that shall
violate any term or condition of the Master
Lease. In the event of the
termination of Tenant's interest as Tenant
under the Master Lease for any
reason, then this Sublease shall terminate
coincidentally therewith without any
liability of Tenant to Subtenant.
(b) Except as
otherwise stated in the Sublease, all of the terms
and conditions contained in the Exhibit A
Master Lease are incorporated herein
as terms and conditions of this Sublease
(with each reference therein to
Landlord and Tenant to be deemed to refer
to Tenant and Subtenant, respectively)
and, along with all of the following
Sections set out in this Sublease, shall be
the complete terms and conditions of this
Sublease.
3.
PREMISES
Tenant leases to Subtenant and Subtenant
hires from Tenant the following
described Subleased Premises together with
the appurtenances, situated in the
City of Boulder, County of Boulder, State
of Colorado, approximately 7,483
rentable square feet located at 5766
Central Avenue, Second Floor, Boulder, CO
80301, as shown on Exhibit B attached
hereto.
4.
RENTAL
Subtenant shall pay to Tenant as rent
("Base Rent") for the Subleased Premises
in advance on the first day of each
calendar month of the term of this Sublease
without deduction, offset, prior notice or
demand, in lawful money of the United
States, as follows:
October 1, 2003 through
$9.00 per rentable square foot per
September 30,2004
annum, or $5,612.25 per month,
plus triple net adjustment
October 1, 2004 through
$9.27 per rentable square foot per
September 30, 2005
annum, or $5,780.62 per month,
plus triple net adjustment
October 1, 2005 through
$9.55 per rentable square foot per
September 30, 2006
annum, or $5,955.22 per month,
plus triple net
adjustment
<PAGE>
October 1, 2006 through
$9.84 per rentable square foot per
June 30, 2007
annum, or $6,136.06 per month,
plus triple net adjustment
Landlord may at any time give Subtenant
written notice to make payments directly
to Landlord, and in such event, Subtenant
shall thereafter make all payments due
hereunder directly to Landlord and shall
provide Tenant with copies evidencing
each such payment and, in such event, no
further payments will be due hereunder
from Subtenant to Tenant. Triple net
adjustment shall be calculated and adjusted
from time to time by the Landlord per the
terms of the Master Lease. First year
triple net expenses are currently $4.49 per
square foot per year
($2797.00/month). Utilities and janitorial
shall be contracted for and paid by
Subtenant separately. If the commencement
date is not the first day of the
month, or if the Sublease termination date
is not the last day of the month, a
prorated monthly installment shall be paid
at the then current rate for the
fractional month during which the Sublease
commences and/or terminates. Receipt
of $8,409.25 is hereby acknowledged for
rental for the first month, and the
additional amount of $5,612.25 as
non-interest bearing security for performance
under this Sublease. In the event Subtenant
has performed all of the terms and
conditions of this Sublease throughout the
term, upon Subtenant vacating the
Subleased Premises, the amount paid as a
security deposit shall be returned
within 30 days to Subtenant after first
deducting any unpaid amounts which
Subtenant owes to Tenant hereunder.
5.
TERM
(a) The term
of this Sublease shall be for a period of forty-five
(45) months commencing on October 1, 2003
and ending on June 29, 2007.
(b) In the
event Tenant is unable to deliver possession of the
Subleased Premises at the commencement of
the Sublease term, Tenant shall not be
liable for any damage caused thereby, nor
shall this Sublease be void or
voidable, but Subtenant shall not be liable
for rent until such time as Tenant
offers to deliver possession of the
Subleased Premises to Subtenant, but the
term hereof shall not be extended by such
delay. If Subtenant, with Tenant's
consent, takes possession prior to the
commencement of the term, Subtenant shall
do so subject to all of the covenants and
conditions hereof and shall pay rent
for the period ending with the commencement
of the term at the same rental as
that prescribed for the first month of the
term, prorated at the rate of l/30
th thereof per day.
6.
USE
Subtenant shall use the Premises for
communications hardware and software
research and development, engineering
laboratory, and any accessory
administrative office uses and for no other
purpose without the prior written
consent of Tenant and Landlord. Subtenant's
business shall be established and
conducted throughout the term hereof in a
first class manner. Subtenant shall
not use the Subleased Premises for, or
carry on, or permit to be carried on, any
offensive, noisy or dangerous trade,
business, manufacture or occupation nor
permit any auction sale to be held or
conducted on or about the Subleased
Premises. Subtenant shall not do or suffer
anything to be done upon the
Subleased Premises that will cause
structural injury to the Subleased Premises
or the building of which the Subleased
Premises form a part. The Subleased
Premises shall not be overloaded and no
machinery, apparatus or other appliance
shall be used or operated in or upon the
Subleased Premises that will in any
manner injure, vibrate or shake the
Subleased Premises or the building of which
they are a part. No use shall be made of
the Subleased Premises that will in any
way impair the efficient operation of the
sprinkler system (if any) within the
building containing the Subleased Premises.
Subtenant shall not leave the
Subleased Premises unoccupied or vacant
during the term. Subtenant shall not
knowingly or willfully use or permit the
use of the Subleased Premises or any
part thereof for any purpose that will
increase the existing rate of insurance
upon the building in which the Subleased
Premises are located, or cause a
cancellation of any insurance policy
covering the building or any
2
<PAGE>
part thereof. If any act on the part of
Subtenant or use of the Subleased
Premises by Subtenant shall cause directly
or indirectly, any increase of
Tenant's insurance expense, said additional
expense shall be paid by Subtenant
to Tenant upon demand. No such payment by
Subtenant shall limit Tenant in the
exercise of any other rights or remedies,
or constitute a waiver of Tenant's
right to require Subtenant to discontinue
such act or use.
7.
DEFAULT
"Default" shall be defined as any one of
the following events:
i. If
Subtenant shall fail to make due and punctual payment of
rent or any other amounts payable under this Sublease and such
failure shall continue for ten (10) days;
ii. If
Subtenant shall abandon the Subleased Premises or remove
leasehold improvements or fixtures constituting property of
Tenant or Landlord;
iii.
If this Sublease shall be transferred to or shall pass to or
devolve upon any person or party other than Subtenant, except
pursuant to the written consent of Tenant and Landlord;
iv. If
Subtenant shall fail to perform any of the other
agreements, terms, covenants or conditions of this Sublease or
the Master Lease (except as modified by this Sublease) and
such non-performance shall continue for a period of fifteen
(15) days after written notice by Tenant or Landlord to
Subtenant, or if such performance cannot be reasonably had
within the fifteen (15) day period, Subtenant shall not in
good faith have commenced such performance within the
fifteen-day period and does not thereafter diligently proceed
to cure the breach.
(a) In
addition to and separate from any rights and remedies described
in
the Master Lease, the following remedies
shall apply to Default by Subtenant: If
any one or more events of Default shall
happen, then Tenant and Landlord shall
have the right, then or any time
thereafter, without demand or notice to
re-enter and take possession of the
Subleased Premises and expel Subtenant and
remove its possessions without being deemed
guilty of any manner of trespass and
without prejudice to any remedies for
arrearages of rent or other breaches of
this Sublease. The exercise or beginning of
the exercise by Tenant or Landlord
of any one or more of the rights or
remedies provided for in this Sublease, or
in the Master Lease, or now or hereafter
existing at law or in equity shall not
preclude the simultaneous or later exercise
by Tenant or Landlord of any other
available right or remedy. In the event of
any litigation between Subtenant and
Tenant or Landlord, arising out of or
related to this Sublease or the Master
Lease, the prevailing party shall be
entitled to recover its reasonable
attorney's fees, arbitration fees, court
costs and any other expenses.
8.
NOTICES
All notices or demands of any kind required
or desired to be given by Tenant or
Subtenant hereunder shall be in writing and
shall be deemed delivered
forty-eight (48) hours after depositing the
notice or demand in the United
States mail, certified or registered,
postage prepaid, addressed to the Tenant
or Subtenant respectively at the addresses
set forth after their signatures at
the end of this Sublease. All rent and
other payments due under this Sublease or
the Master Lease shall be made by Subtenant
to Tenant at the same address or as
otherwise instructed by Tenant or Landlord
pursuant to Section 4 above. A copy
of any notice given by Tenant or Subtenant
hereunder shall be sent at the same
time and in the same manner to the Landlord
at c/o Flatiron Park Company, 5540
Central Avenue, Boulder, CO 80301.
3
<PAGE>
9.
CONDITIONS OF PREMISES
Subtenant has inspected the Subleased
Premises and accepts the Subleased
Premises in their present state and
condition.
10. ADDITIONAL
PROVISIONS
(a) This
Sublease is contingent upon Tenant receiving written
approval from the Landlord in the form of
the Sublease, Assumption and Consent
Agreement to which this Sublease Agreement
is an attachment.
(b) Any
improvements required by Subtenant shall be paid for by
Subtenant.
(c) All Real
Estate commissions involved in this transaction shall
be paid by Tenant.
(d) Tenant is
not and has not been in violation of Article 9 of
the Master Lease and has no knowledge of
any activities conducted on the
Premises during its tenancy that could be
considered a violation of Article 9.
(e) Base rent
shall be increased annually by the amount and at the
time specified in Section 4, above.
(f) Buyout of
Master Lease. Subtenant understands that Tenant is
interested in the possibility of
negotiating a buyout of the Master Lease with
Landlord. Tenant agrees to participate and
cooperate in an assignment of the
Sublease to the Landlord in the event that
any such buyout is negotiated during
the term of the Sublease, provided that the
terms of the Sublease remain
unchanged and that there is no detriment to
Subtenant. Except as provided
herein, the terms of any such buyout of the
Master Lease are within the sole
discretion of Tenant and Landlord.
4
<PAGE>
DATED: September 30, 2003
TENANT: Carrier Access Corporation
SUBTENANT: SpectraLink Corporation
By: TIMOTHY R AMBER
By: NANCY K HAMILTON
-------------------------
------------------------------
Title: CFO
Title: CFO
Address: 5395 Pearl Parkway, Boulder,
Address: 5755 Central Avenue,
CO 80301
Boulder, CO 80301
FAX (303) 218-5567
FAX (303) 440-5330
5
<PAGE>
Exhibit B to Sublease, Assumption and Consent Agreement
[FLOOR PLAN]
5766 CENTRAL AVENUE 2ND FLOOR
<PAGE>
Exhibit A to Sublease, Assumption and Consent Agreement
And to Sublease
LEASE
Between
2545 Central LLC
and
Carrier Access Corporation
Copyright (c) 1999 Flatiron Park
Company
<PAGE>
SUMMARY OF BASIC LEASE TERMS
1.
Tenant: Carrier Access Corporation
(a) Tenant's
entity and jurisdiction: Delaware corporation
(b) Tenant's
federal taxpayer identification number: 84-1208770
2.
Building Address: 5766 Central Avenue
Boulder, CO 80301
Type: Single User
3.
Demised Premises:
(a) Approx.
Total Rentable Square Footage: 14,966
(b) Suite
Number: 100
4.
Initial Lease Term:
(a) Period: 7
years
(b)
Commencement Date: July 1, 2000
(c) Expiration
Date: June 30, 2007
5.
Basic Rent:
Rent Schedule:
<TABLE>
<S>
<C>
<C>
<C>
July 1, 2000 to
June
30, 2001
$18,708.00 per month
July 1, 2001 to
June
30, 2002
$19,643.00 per month
July 1, 2002 to
June
30, 2003
$20,625.00 per month
July 1, 2003 to
June
30, 2004
$21,656.00 per month
July 1, 2004 to
June
30, 2005
$22,739.00 per month
July 1, 2005 to
June
30, 2006
$23,876.00 per month
July 1, 2006 to
June
30, 2007
$25,070.00 per month
</TABLE>
6.
Additional Rent
Tenant's Pro Rata Share (for Additional Rent): 100%
7.
Security Deposit Amount: $18,708.00
Copyright (c) 1999 Flatiron Park
Company
Landlord Initials RLH
Tenant Initials WW
<PAGE>
8. Place for
Payments:
2545
Central LLC
c/o
Flatiron Park Company
5540
Central Avenue
Boulder,
CO 80301
9. Place for Notices:
2545
Central, LLC.
with a copy to:
Hutchinson Black and Cook, LLC
c/o
Flatiron Park Company
1215 Spruce Street
5540
Central Avenue
P.O. Box 1170
Boulder,
CO 80301
Boulder, CO 80306
Attn: David M. Packard and
Bruce D. Dierking
Carrier
Access Corporation
5395 Pearl
Parkway
Boulder,
CO 80301
10. Permitted Use(s) by Tenant:
Communication hardware and software
research
and development, engineering laboratory, and accessory
administrative office uses to include customer support, training,
sales
and
general administration.
11. Broker(s): None
12. Utilities: Direct to
Tenant
Copyright (c) 1999 Flatiron Park
Company
Landlord Initials RLH
Tenant Initials WW
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S>
<C>
ARTICLE 1
GENERAL........................................................
1
1.1
Consideration..................................................
1
1.2 Exhibits and Addenda to
Lease.................................. 1
ARTICLE 2 DEFINITIONS; DEMISE OF
PREMISES................................ 1
2.1
Demise.........................................................
1
2.2 Demised
Premises...............................................
1
2.3 Square Footage and
Address..................................... 1
2.4
Land...........................................................
1
2.5
Building.......................................................
1
2.6
Improvements...................................................
2
2.7
Property.......................................................
2
2.8 Common
Facilities..............................................
2
2.9 Parking
Area...................................................
2
2.10 Use of
Common Facilities and Parking Area......................
2
2.11 Covenant of
Quiet Enjoyment.................................... 2
2.12 Condition
of Demised Premises.................................. 2
ARTICLE 3 TERM OF
LEASE..................................................
3
3.1 Lease
Term.....................................................
3
3.2 Commencement
Date.............................................. 3
3.3 Early Occupancy or
Entry....................................... 3
ARTICLE 4 RENT AND OTHER AMOUNTS
PAYABLE................................. 3
4.1 Basic
Rent.....................................................
3
4.2 Monthly
Rent...................................................
3
4.3 Place of
Payments.............................................. 3
4.4 Lease a Net Lease and Rent
Absolute............................ 3
4.5 Additional
Rent................................................ 3
4.6 Tenant's Pro Rate
Share........................................ 4
4.7 Monthly Deposits for Taxes,
Insurance, and
Common Facilities Charges......................................
4
4.8 Security
Deposit............................................... 4
4.9 General Provisions as to Monthly
Deposits and Security Deposit. 4
4.10 Rent
Regulations...............................................
5
ARTICLE 5 TAXES AND
ASSESSMENTS.......................................... 5
5.1 Covenant to Pay Taxes and
Assessments.......................... 5
5.2 Proration at Commencement and
Expiration of Term............... 5
5.3 Special
Assessments............................................
5
5.4 New or Additional
Taxes........................................ 5
5.5 Landlord's Sole Right to Contest
Taxes......................... 6
ARTICLE 6
INSURANCE......................................................
6
6.1 Casually
Insurance............................................. 6
</TABLE>
Copyright (c) 1999 Flatiron Park
Company
i
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<S>
<C>
6.2 Liability
Insurance............................................ 6
6.3 Other
Insurance................................................
6
6.4 General Provisions Respecting
Insurance........................ 6
6.5 Cooperation in the Event of
Loss............................... 7
ARTICLE 7 UTILITY, OPERATING, MAINTENANCE
AND REPAIR EXPENSES............ 7
7.1 Utility
Charges................................................
7
7.2 Common Facilities
Charges...................................... 7
7.3 Tenant's Maintenance
Obligation................................ 7
7.4 Landlord's Maintenance
Obligation.............................. 7
ARTICLE 8 OTHER COVENANTS OF
TENANT...................................... 8
8.1 Limitation on Use by
Tenant.................................... 8
8.2 Compliance with
Laws........................................... 8
8.3 Compliance with Insurance
Requirements......................... 8
8.4 No Waste or Impairment of
Value................................ 8
8.5 No
Overloading.................................................
8
8.6 No Nuisance, Noxious or Offensive
Activity..................... 8
8.7 No Annoying Lights, Sounds or
Odors............................ 8
8.8 No
Unsightliness...............................................
8
8.9 No
Animals.....................................................
9
8.10 Restriction
on Signs and Exterior Lighting..................... 9
8.11 No
Violation of Covenants......................................
9
8.12 Restriction
on Changes and Alterations......................... 9
8.13 No
Mechanic's Liens............................................
9
8.14 No Other
Encumbrances.......................................... 10
8.15
Subordination to Landlord Mortgages............................
10
8.16 Assignment
or Subletting....................................... 10
8.17 Annual
Financial Statements... ................................
11
8.18 Payment of
Income and Other Taxes.............................. 11
8.19 Estoppel
Certificates.......................................... 11
8.20 Landlord
Right to Inspect and Show Premises and to Install
"For Sale" Signs...............................................
12
8.21 Landlord
Right to Renovate, Expand or Modify Building.......... 12
8.23 Landlord
Title to Fixtures, Improvements and Equipment......... 12
8.24 Removal of
Tenants Equipment................................... 12
8.25 Tenant
Indemnification of Landlord.............................
13
8.26 Liability
of Landlord.......................................... 13
8.27 Release
upon Transfer by Landlord..............................
13
8.28 Rules and
Regulations.......................................... 13
8.29 Monitoring
Equipment........................................... 13
ARTICLE 9 ENVIRONMENTAL
MATTERS.......................................... 14
9.1
Definitions....................................................
14
9.1.1 Hazardous Material.......................................
14
9.1.2 Environmental Requirements...............................
14
9.1.3 Environmental Damages....................................
14
9.2 Tenant's Obligation to Indemnify,
Defend and Hold Harmless..... 14
9.3 Tenant's Obligation to
Remediate............................... 15
9.4
Notification...................................................
15
9.5 Negative
Covenants............................................. 15
</TABLE>
Copyright (c) 1999 Flatiron Park
Company
ii
<PAGE>
<TABLE>
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<C>
9.5.1 No Hazardous
Material on Demised Premises............. 15
9.5.2 No Violations of
Environmental Requirements........... 16
9.6 Landlord's Right to
Inspect and to Audit Tenant's Records.... 16
9.7 Landlord's Right to
Remediate................................ 16
9.8 Survival of
Environmental Obligations........................ 16
ARTICLE 10 DAMAGE OR
DESTRUCTION........................................ 16
10.1
Damage to
Demised Premises................................... 16
10.2
Options to
Terminate if Damage to Demised Premises is
Substantial..................................................
16
10.3
Damage to
Building........................................... 17
10.4
Obligations to
Repair and Restore............................ 17
10.5
Application of
Insurance Proceeds........................... 17
ARTICLE 11
CONDEMNATION.................................................
17
11.1
Taking -
Substantial Taking - Insubstantial Taking........... 17
11.2
Termination on
Substantial Taking............................ 17
11.3
Restoration on
Insubstantial Taking.......................... 17
11.4
Right to
Award............................................... 18
ARTICLE 12 DEFAULTS BY
TENANT........................................... 18
12.1
Defaults
Generally........................................... 18
12.2
Failure to Pay
Rent or Other Amounts......................... 18
12.3
Violation of
Lease Terms..................................... 18
12.4
Nonoccupancy of
Demised Premises............................. 18
12.5
Transfer of
Interest Without Consent......................... 18
12.6
Execution and
Attachment Against............................. 18
12.7
Bankruptcy or
Related Proceedings............................ 18
ARTICLE 13 LANDLORD'S
REMEDIES.......................................... 19
13.1
Remedies
Generally........................................... 19
13.2
Cure by
Landlord............................................. 19
13.3
Termination of
Lease and Damages............................. 19
13.4 Repossession and
Reletting................................... 19
13.5
Security
Interest............................................ 20
13.6
Suits by
Landlord............................................ 20
13.7
Recovery of
Landlord Enforcement Costs....................... 20
13.8
Administrative
Late Charge................................... 20
13.9
Interest on
Past-Due Payments and Advances................... 20
13.10
Landlord's
Bankruptcy........................................ 20
13.11
Remedies
Cumulative.......................................... 21
ARTICLE 14 SURRENDER AND HOLDING
OVER................................... 21
14.1
Surrender upon
Lease......................................... 21
14.2
Holding
Over................................................. 21
ARTICLE 15
MISCELLANEOUS................................................
21
15.1
No Implied
Waiver............................................ 21
15.2
Survival of
Provisions....................................... 21
</TABLE>
Copyright (c) 1999 Flatiron Park
Company
iii
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<S>
<C>
15.3
Covenants
Independent........................................ 21
15.4
Covenants as
Conditions...................................... 21
15.5
Tenant's
Remedies............................................ 21
15.6 Binding
Effect............................................... 22
15.7
Short Form
Lease............................................. 22
15.8
Notices and
Demands.......................................... 22
15.9
Force
Majeure................................................
22
15.10
Time of the
Essence.......................................... 22
15.11
Captions for
Convenience..................................... 22
15.12
Severability.................................................
22
15.13
Governing Law and
Venue...................................... 22
15.14
Entire
Agreement/Further Assurances.......................... 22
15.15
No Oral Amendment or
Modifications........................... 23
15.16
Real Estate
Brokers.......................................... 23
15.17
Relationship of
Landlord and Tenant.......................... 23
15.18
Authority of
Tenant.......................................... 23
</TABLE>
Copyright (c) 1999 Flatiron Park
Company
iv
<PAGE>
LEASE
This Lease is made this 13 day of December, 1999, between 2545
Central
LLC, a Colorado limited liability company,
("Landlord), whose address is c/o
Flatiron Park Company, 5540 Central Avenue,
Boulder, Colorado 80301, and Carrier
Access Corporation, a Delaware corporation,
("Tenant"), whose address is 5766
Central Avenue, Boulder, CO 80301.
ARTICLE 1
GENERAL
1.1
Consideration. Landlord enters into this Lease in
consideration of the payment by Tenant of
the Rents herein reserved and the
keeping, observance and performance by
Tenant of the covenants and agreements of
Tenant herein contained.
1.2 Exhibits
and Addenda to Lease. The Exhibits and Addenda listed
below shall be attached to this Lease and
be deemed incorporated in this Lease
by this reference. In the event of any
inconsistency or conflict between such
Exhibits and Addenda and the terms and
provisions of this Lease, the terms and
provisions of the Exhibits and Addenda
shall control. The Attachments, Exhibits
and Addenda to this Lease are:
Summary of Basic Lease Terms
Exhibit A
Legal Description of Land
Exhibit B
Location of Demised Premises within Building
Exhibit C
Notice of Non-Liability for Mechanics' Liens
Exhibit D Form
of Subordination, Non-Disturbance and
Attornment Agreement
Exhibit E Form
of Sublease, Assumption and Consent Agreement
Exhibit F Form
of Assignment, Assumption and Consent Agreement
Exhibit G
Form of Estoppel
Certificate
Exhibit H
Declaration of Protective Covenants
ARTICLE 2
DEFINITIONS: DEMISE OF PREMISES
2.1 Demise.
Subject to the provisions, covenants and agreements
herein contained, Landlord hereby leases
and demises to Tenant, and Tenant
hereby leases from Landlord, the Demised
Premises as hereinafter defined, for
the Lease Term as hereinafter defined,
subject to existing covenants,
conditions, restrictions, easements and
encumbrances affecting the same.
2.2 Demised
Premises. The "Demised Premises" shall mean the space
to be occupied by Tenant as depicted on
Exhibit B attached hereto. The Demised
Premises are within the Building which is
located on the Land, as the terms
"Building" and "Land" are hereinafter
defined.
2.3 Square
Footage and Address. The Demised Premises contains
approximately the rentable floor area set
forth in the Summary of Basic Lease
Terms. The address of the Demised Premises
is the address set forth in the
Summary of Basic Lease Terms.
2.4 Land.
"Land" shall mean the parcel of real property more
particularly described in Exhibit A
attached hereto, as the same may be
replatted, resubdivided or adjusted from
time to time by Landlord in its sole
discretion; PROVIDED, HOWEVER, THAT NO SUCH
REPLAT OR RESUBDIVISION SHALL HAVE
ANY MATERIAL ADVERSE IMPACT ON TENANT'S USE
AND ENJOYMENT OF THE DEMISED
PREMISES, INCLUDING THE PARKING AREA.
2.5
Building
"Building" shall mean the building or buildings
constructed on the Land, as the same may be
expanded, remodeled, reconstructed
or otherwise modified from time to time by
Landlord in its sole
Copyright (c) 1999 Flatiron Park
Company
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discretion, currently containing
approximately the number of square feet of
interior floor area set forth on the
Summary of Basic Lease Terms. If there is
more than one building constructed on the
Land, the term "Building" shall mean
collectively all buildings constructed upon
the Land; PROVIDED, HOWEVER, THAT NO
SUCH CONSTRUCTION SHALL HAVE ANY MATERIAL
ADVERSE IMPACT ON TENANT'S USE AND
ENJOYMENT OF THE DEMISED PREMISES,
INCLUDING THE PARKING AREA.
2.6
Improvements. "Improvements" shall mean the Building, the
Parking Area as hereinafter defined, and
all other fixtures and improvements on
the land, including landscaping
thereon.
2.7 Property.
"Property" shall mean the Land, the Building and the
Improvements and any fixtures and personal
property used in operation and
maintenance of the Land, Building and
Improvements other than fixtures and
personal property of Tenant and other users
of space in the Building.
2.8 Common
Facilities. "Common Facilities" shall mean all of the
Property except (a) the Demised Premises
and (b) the other premises in the
Building leased or held for lease to other
tenants that is intended to be used
in common by Tenant and other tenants.
Common Facilities shall include, without
limitation, the Parking Area and any walks,
driveways, and, if applicable, lobby
areas, halls, stairs, elevators, restrooms,
utility rooms, and janitorial
closets designed for common use of Tenant
and other users of space in the
Building.
2.9 Parking
Area. "Parking Area" shall mean that portion of the
Land which is or is to be paved and
otherwise improved or designated unimproved
land for the parking of motor vehicles.
2.10
Use of Common Facilities and Parking Area. Tenant is hereby
granted the non-exclusive right and license
to use, in common with others
entitled to such use, the Common
Facilities, as they from time to time exist,
subject to the rights of Landlord reserved
herein. Tenant shall not interfere,
at any time, with the rights of Landlord
and others entitled to use any part of
the Common Facilities, and shall not store,
either permanently or temporarily,
any materials, supplies or equipment on the
Common Facilities. Landlord shall
have the right, at any time, to change,
reduce or otherwise alter the Common
Facilities, in its sole discretion and
without compensation to Tenant; provided,
however, Landlord shall provide reasonable
parking in the Parking Areas, loading
areas and access to the Demised Premises to
Tenant. LANDLORD SHALL NOT
MATERIALLY REDUCE THE PARKING AREA WITHOUT
TENANT'S PRIOR WRITTEN CONSENT.
Tenant covenants and agrees not to make
excessive use of the Parking Area.
Landlord shall have the right at any time
to assign spaces in the Parking Area
to individual tenants, in its sole
discretion, provided that Landlord shall
provide a reasonable number of spaces for
Tenant. Landlord shall not be
responsible for any injuries to any person
nor any damage to any automobile,
vehicle or other property which occurs in
or about the Parking Area. Tenant
shall not park nor permit the parking of
any vehicles in the Parking Area
overnight without Landlord's prior, written
permission; PROVIDED, HOWEVER, THAT
TENANT SHALL NOT BE REQUIRED TO OBTAIN
LANDLORD'S PERMISSION FOR OVERNIGHT
PARKING OF OPERATIONAL VEHICLES BELONGING
TO EMPLOYEES WHO ARE TRAVELING OR FOR
OTHER OCCASIONS WHEN VEHICLES ARE PARKED
OVERNIGHT FOR SHORT PERIODS FOR A BONA
FIDE BUSINESS PURPOSE.
2.11
Covenant of Quiet Enjoyment. Landlord covenants and agrees
that, provided Tenant is not in default and
keeps, observes and performs the
covenants and agreements of Tenant
contained in this Lease, Tenant shall have
quiet and peaceable possession of the
Demised Premises and such possession shall
not be disturbed or interfered with by
Landlord or by any person claiming by,
through or under Landlord.
2.12
Condition of Demised Premises. Except as may be provided on an
Addendum hereto, Tenant covenants and
agrees that, upon taking possession of the
Demised Premises, Tenant shall be deemed to
have accepted the Demised Premises
"as is" and Tenant shall be deemed to have
waived any warranty of condition or
habitability, suitability for occupancy,
use or habitation, fitness for a
particular purpose or merchantability,
express or implied, relating to the
Demised Premises.
ARTICLE 3
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TERM OF LEASE
3.1 Lease
Term. "Lease Term" shall mean the period of time
specified in the Summary of Basic Lease
Terms commencing at midnight on the
Commencement Date as defined below and
expiring at midnight on the Expiration
Date, as specified in the Summary of Basic
Lease Terms.
3.2
Commencement Date. The term "Commencement Date" shall mean the
later of the Commencement Date set forth in
the Summary of Basic Lease Terms or
the date that possession of the Demised
Premises is tendered by Landlord to
Tenant as ready for occupancy when
circumstances beyond the reasonable control
of Landlord have caused a delay in the
Demised Premises being ready for
occupancy by Tenant. In the event of such a
delay, this Lease shall not be void
or voidable by Tenant, and Landlord shall
not be liable to Tenant for any loss
or damage resulting from such delay.
Notwithstanding anything to the contrary
herein, if Landlord has not tendered
possession of the Demised Premises to
Tenant within thirty (30) days after the
Commencement Date set forth in the summary
of basic lease terms, Tenant shall
have the right to terminate this lease by
written notice to Landlord. Landlord
shall give written notice to Tenant as soon
as practicable should Landlord have
reason to believe it will not be able to
tender possession to Tenant on the
Commencement Date.
Should Landlord not tender possession of the Demised Premises to
Tenant
within 30 days after the commencement Date, Landlord will return
the
Security Deposit with Interest based on the Prime Rate.
RLH
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3.3 Early
Occupancy or Entry. In the event Landlord permits Tenant
or its agents or contractors to occupy or
enter the Demised Premises for any
reason prior to the Commencement Date,
Tenant shall be subject to all terms and
provisions hereof.
ARTICLE 4
RENT AND OTHER AMOUNTS PAYABLE
4.1 Basic
Rent. Tenant covenants and agrees to pay to Landlord,
without offset, deduction or abatement,
basic rent for the full Lease Term in
the amount specified as Basic Rent in the
Summary of Basic Lease Terms ("Basic
Rent").
4.2 Monthly
Rent. Basic Rent shall be payable monthly in advance,
without notice, in equal installments,
together with installments of Additional
Rent, in the amount of monthly rent
specified in the Summary of Basic Lease
Terms ("Monthly Rent"). One such monthly
installment shall be due and payable on
the date hereof and a like monthly
installment shall be due and payable on or
before the first day of each calendar month
succeeding the commencement date
recited in the Summary of Basic Lease Terms
during the hereby demised term,
except that the rental payment for any
fractional calendar month at the
commencement or end of the Lease Term shall
be prorated based on a thirty (30)
day month.
4.3 Place of
Payments. Basic Rent and all other sums payable by
Tenant to Landlord under this Lease shall
be paid to Landlord at the place for
payments specified in the Summary of Basic
Lease Terms, or such other place as
Landlord may, from time to time, designate
in writing.
4.4 Lease a
Net Lease and Rent Absolute. It is the intent of the
parties that the Basic Rent provided in
this Lease shall be a net payment to
Landlord; that, except as otherwise
expressly provided herein, the Lease shall
continue for the full Lease Term
notwithstanding any occurrence preventing or
restricting use and occupancy of the
Demised Premises, including any damage or
destruction affecting the Demised Premises,
and any action by governmental
authority relating to or affecting the
Demised Premises; that the Basic Rent
shall be absolutely payable without offset,
reduction or abatement for any cause
except as otherwise specifically provided
in this Lease; that Landlord shall not
bear any costs or expenses relating to the
Demised Premises or provide any
services or do any act in connection with
the Demised Premises except as
otherwise specifically provided in this
Lease; and that Tenant shall pay, in
addition to Basic Rent, Additional Rent to
cover costs and expenses relating to
the Demised Premises, the Common
Facilities, and the Property, all as
hereinafter provided.
4.5 Additional
Rent. Tenant covenants and agrees to pay, as
Additional Rent, all costs and expenses
relating to the Demised Premises
including utilities, maintenance and repair
thereof AS PROVIDED IN ARTICLE 7
BELOW; Tenant's Pro Rata Share of all costs
and expenses relating to the Common
facilities, including but not limited to
the repair and maintenance thereto
described in Section 7.2 hereof; Tenant's
Pro Rata Share of all Taxes and
Assessments and costs and expenses of
Casualty Insurance; all costs and expenses
of Liability Insurance and Other Insurance;
and all other costs and expenses
which Tenant is obligated to pay under this
Lease.
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4.6 Tenant's
Pro Rata Share. "Tenant's Pro Rata Share" shall mean
the percentage set forth in the Summary of
Basic Lease Terms as Tenant's Pro
Rata Share which is the percentage derived
by dividing the approximate rentable
floor area of the Demised Premises, as set
forth in the Summary of Basic Lease
Terms, by the approximate rentable floor
area within the Building, as set forth
in the Summary of Basic Lease Terms. The
percentage set forth in the Summary of
Basic Lease Terms shall be conclusive and
not subject to adjustment for
remeasurement of the area of the Demised
Premises or the Building. Landlord may
modify Tenant's Pro Rata Share from time to
time based upon any increase or
reduction in the rentable floor area of the
Building or of the Demised Premises.
4.7 Monthly
Deposits for Taxes, Insurance, and Common Facilities
Charges. Tenant will pay to Landlord,
monthly in advance, without notice, on
each day that payment of Monthly Rental is
due, amounts, as hereinafter
specified, for payment of Tenant's Pro Rata
Share of Taxes and Assessments
(defined in Section 5.1), "Casualty
Insurance" (defined in Section 6.1),
Landlord liability insurance, if
applicable, (defined in Section 6.2), "Common
Facilities Charges" (defined in Section
7.2), and any other charges payable with
respect to the Property hereunder as
Additional Rent (collectively "Monthly
Deposits") and, if the Monthly Deposits are
insufficient to pay Tenant's Pro
Rata Share of the actual cost of such
items, to pay to Landlord, within ten (10)
days after demand by Landlord, such amounts
as are necessary to provide Landlord
with sufficient funds to pay Tenant's Pro
Rata Share of the same. The Monthly
Deposits shall each be equal to Tenant's
Pro Rata Share of 1/12 of the amounts,
as reasonably estimated and re-estimated
from time to time by Landlord, of the
annual Taxes and Assessments, annual
Casualty Insurance premiums, annual
Landlord liability insurance premiums, and
annual Common Facilities Charges
payable with respect to the Property. The
initial Monthly Deposit shall be
subject to adjustment as herein provided.
To the extent the Monthly Deposits
exceed Tenant's Pro Rata Share of the
actual cost of such items, the excess
amount shall, at Landlord's option, except
as may be otherwise provided by law,
either be paid to Tenant or credited
against future Monthly Deposits or against
Basic Rent, Additional Rent or other
amounts payable by Tenant under this Lease.
If Tenant so requests in writing within
thirty (30) days after the date of
Landlord's annual reconciliation of Monthly
Deposits, Landlord shall furnish
Tenant with a copy of invoices or receipts
for Taxes, Insurance, and Common
Facilities Charges. The amounts of such
taxes, insurance premiums and expenses
payable by Tenant for the years in which
the Lease Term commences and expires
shall be subject to the provisions
hereinafter contained in this Lease for
proration of such amounts in such years.
Prior to the dates on which payment is
due for such items, Landlord shall make
payment of the same, to the extent funds
from Monthly Deposits available therefor.
Except for Landlord's obligation to
make payments out of funds available from
Monthly Deposits, the making of
Monthly Deposits by Tenant shall not limit
or alter Tenant's obligation to pay
taxes and assessments and to maintain
insurance as elsewhere provided in this
Lease.
4.8 Security
Deposit. Upon execution of this Lease by Tenant,
Tenant shall deposit with Landlord, the
amount specified as a security deposit
in the Summary of Basic Lease Terms
("Security Deposit"). The Security Deposit
shall be retained by Landlord and may be
applied by Landlord, to the extent
necessary, to pay and cover any loss, cost,
damage or expense, including
attorneys' fees, sustained by Landlord by
reason of the failure of Tenant to
comply with any provisions, covenant or
agreement of Tenant contained in this
Lease. To the extent not necessary to cover
such loss, cost, damage or expense,
the Security Deposit, without any interest
thereon, shall be returned to Tenant
within sixty (60) days after expiration of
the Lease Term or as may be otherwise
provided by law; provided, however, that
Landlord may also deduct any amount
from the Security Deposit Landlord
estimates may be required to cover any
shortfall in Additional Rent deposits made
by Tenant in the final year of the
Lease until such time as Landlord has
completed its annual Additional Rent
reconciliation for such year. The Security
Deposit shall not be considered as an
advance payment of rent or as a measure of
the loss, cost, damage or expense
which is or may be sustained by Landlord.
In the event all or any portion of the
Security Deposit is applied by Landlord to
pay any such loss, cost, damage or
expense, Tenant shall, from time to time,
promptly upon demand, deposit with
Landlord such amounts as may be necessary
to replenish the Security Deposit to
its original amount.
4.9 General
Provisions as to Monthly Deposits and Security
Deposit. Landlord shall not be required to
hold the Security Deposit in an
escrow or trust deposit account, and
Landlord may commingle the Monthly Deposits
with Landlord's own funds. Landlord shall
not be obligated to pay interest to
Tenant on account of the
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Monthly Deposits and Security Deposit. In
the event of a transfer by Landlord of
Landlord's interest in the Demised
Premises, Landlord or the property manager of
Landlord may deliver the Monthly Deposits
and Security Deposit to the transferee
of Landlord's interest and Landlord and
such property manager shall thereupon be
discharged from any further liability to
Tenant with respect to such Monthly
Deposits and Security Deposit. In the event
of a transfer by Tenant of Tenant's
interest in the Demised Premises, Landlord
shall be entitled to return the
Monthly Deposits and Security Deposit to
Tenant's successor in interest and
Landlord shall thereupon be discharged from
any further liability with respect
to the Monthly Deposits and Security
Deposit.
4.10
Rent Regulations. If the Basic Rent, Additional Rent, or any
other amounts to be paid by the Tenant to
the Landlord hereunder is or becomes
at any time subject to regulation by law,
then the rent or other amounts to be
so paid shall be the maximum rental or
other amounts permitted by said laws, but
in no event in excess of the rent or other
amounts provided for or determined in
accordance with the applicable provisions
of this Lease.
ARTICLE 5
TAXES AND ASSESSMENTS
5.1 Covenant
to Pay Taxes and Assessments. Tenant covenants and
agrees to pay, as Additional Rent, Tenant's
Pro Rata Share of Taxes and
Assessments, as hereinafter defined, which
accrue during or are attributable to
the Lease Term. "Taxes and Assessments"
shall mean all taxes, assessments or
other impositions, general or special,
ordinary or extraordinary, or every kind
or nature, which may be levied, assessed or
imposed upon or with respect to the
Property or any part thereof, or upon any
building, improvements or personal
property at any time situated thereon.
"TAXES AND ASSESSMENTS" SHALL NOT INCLUDE
ANY PENALTIES, INTEREST, OR OTHER CHARGES
INCURRED BY LANDLORD AS A RESULT OF
FAILING TO PAY ANY TAX OR ASSESSMENT WHEN
DUE, PROVIDED THAT TENANT HAS NOT
FAILED TO PAY MATERIAL AMOUNTS OF
ADDITIONAL RENT WHEN DUE HEREUNDER.
5.2 Proration
at Commencement and Expiration of Term. Taxes and
Assessments shall be prorated between
Landlord and Tenant for the year in which
the Lease Term commences and for the year
in which the Lease Term expires as of,
respectively, the date of commencement of
the Lease Term and the date of
expiration of the Lease Term, except as
herein provided. Additionally, for the
year in which the Lease Term expires,
Tenant shall be liable without proration
for the full amount of Taxes and
Assessments relating to any improvements,
fixtures, equipment or personal property
which Tenant is required to remove or
in fact removes as of the expiration of the
Lease Term. Proration of Taxes and
Assessments shall be made on the basis of
actual Taxes and Assessments. Tenant's
Pro Rata Share of Taxes and Assessments for
the years in which the Lease Term
commences and expires shall be paid and
deposited with the Landlord through
Monthly Deposits as hereinabove provided,
but, in the event actual Taxes and
Assessments for either year are greater or
less than as estimated for purposes
of Monthly Deposits, appropriate adjustment
and payment shall be made between
the parties, at the time the actual Taxes
and are known, as may be necessary to
accomplish proration, as hereinafter
provided, and such obligation shall survive
the termination or expiration of this
Lease.
5.3 Special
Assessments. If any Taxes or Assessments are payable
in installments over a period of years,
Tenant shall be responsible only for
installments for periods during the Lease
Term with proration, as above
provided, of any installment payable prior
to or after expiration of the Lease
Term.
5.4 New or
Additional Taxes. Tenant's obligation to pay Tenant's
Pro Rata Share of Taxes and Assessments
shall include any Taxes and Assessments
of a nature not presently in effect but
which may hereafter be levied, assessed
or imposed upon Landlord or upon the
Property if such tax shall be based upon or
arise out of the ownership, use or
operation of or the rents received from the
Property, other than income taxes or estate
taxes of Landlord. For the purposes
of computing Tenant's liability for such
new type of tax or assessment, the
Property shall be deemed the only Property
of Landlord.
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5.5 Landlord's
Sole Right to Contest Taxes. Landlord shall have
the sole right to contest any Taxes or
Assessments. Landlord shall pay to or
credit Tenant with Tenant's Pro Rata Share
of any abatement, reduction or
recovery of any Taxes and Assessments
attributable to the Lease Term less
Tenant's Pro Rata Share of all costs and
expenses incurred by Landlord,
including attorneys' fees, in connection
with such abatement, reduction or
recovery.
ARTICLE 6
INSURANCE
6.1 Casualty
Insurance. Landlord covenants and agrees to obtain
and keep in full force and effect during
the Lease Term, Casualty Insurance as
hereinafter defined. "Casualty Insurance'
shall mean property insurance
including "all risk" coverage with respect
to the Property, in an amount equal
to the full replacement cost thereof, with
coinsurance clauses of no less than
ninety percent (90%), and with coverage, at
Landlord's option, by endorsement or
otherwise, for all risks, vandalism and
malicious mischief, sprinkler leakage,
boilers, and rental loss and with a
deductible in the amount for each occurrence
as Landlord, in its sole discretion, may
determine from time to time. Casualty
Insurance obtained by Landlord need not
name Tenant as an insured party and may,
at Landlord's option, may name any
mortgagee or holder of a deed of trust as an
insured party as its interest may appear.
Tenant covenants and agrees to pay, as
Additional Rent, its Pro Rata Share of the
cost of Casualty Insurance obtained
by Landlord, and to pay, as Additional
Rent, its Pro Rata Share of the cost of
any deductible under such Casualty
Insurance. Tenant shall be responsible for
obtaining, at Tenant's option, cost and
expense, insurance coverage for personal
property and leasehold improvements of
Tenant and for business interruption of
Tenant.
6.2 Liability
Insurance. Tenant covenants and agrees to obtain and
keep in full force and effect during the
Lease Term, and to pay the premiums and
costs of, Liability Insurance as herein
defined. "Liability Insurance" shall
mean comprehensive general liability
insurance covering public liability for
claims for bodily injury, personal injury,
and property damage with respect to
the ownership, use and operation of the
Demised Premises and the Common
Facilities, with limits of not less than
two million dollars ($2,000,000.00)
combined single limit of liability, with
endorsements for assumed contractual
liability with respect to the liabilities
assumed by Tenant under Sections 8.25
and 9.2 of this Lease, and with no
deductible, retention or self-insurance
provision contained therein, unless
otherwise approved in writing by Landlord.
Landlord may also obtain and keep in full
force and effect during the Lease Term
liability insurance covering public
liability with respect to the ownership, use
and operation of the Property. Tenant
covenants and agrees to pay Tenant's Pro
Rata Share of the premiums and costs of
such liability insurance as Additional
Rent hereunder.
6.3 Other
Insurance. Tenant covenants and agrees to obtain and
keep in full force and effect during the
Lease Term, and to pay the premiums and
costs of, any other types of insurance
relating to the Property or Tenant's
occupancy, use, and operation of the
Demised Premises that Landlord or any
mortgagee or holder of a deed of trust on
the Property may hereafter, reasonably
require. Tenant shall cause such other
insurance to be in effect within thirty
(30) days after receipt of written notice
from Landlord.
6.4 General
Provisions Respecting Insurance. Except as otherwise
approved in writing by Landlord, all
insurance obtained by Tenant shall be on
forms and with insurers selected or
approved by Landlord, which approval shall
not be unreasonably withheld; shall name
Landlord, Landlord's manager(s) and
agent(s), and the holder of any mortgage or
deed of trust encumbering the
Property as insured parties, as their
interests may appear; shall contain a
waiver of rights of subrogation as among
Tenant, Landlord and the holder of any
such mortgage or deed of trust; shall
provide coverage on an occurrence basis;
and shall provide, by certificate of
insurance or otherwise, that the insurance
coverage shall not be canceled or altered
except upon thirty (30) days' prior
written notice to Landlord and the holder
of any such mortgage or deed of trust.
Certificates of insurance obtained by
Tenant shall be delivered to Landlord who
may deposit the same with the holder of any
such first mortgage or deed of
trust. Upon written request, Tenant agrees
to provide Landlord with copies of
all policies of insurance obtained by
Tenant hereunder.
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6.5
Cooperation in the Event of Loss. Landlord and Tenant shall
cooperate with each other in the collection
of any insurance proceeds which may
be payable in the event of any loss,
including the execution and delivery of any
proof of loss or other actions required to
effect recovery.
ARTICLE 7
UTILITY, OPERATING, MAINTENANCE AND REPAIR EXPENSES
7.1 Utility
Charges. Tenant covenants and agrees to contract in
Tenant's own name and to pay, as Additional
Rent, all charges for water, sewage,
disposal, storm drainage fees, gas,
electricity, light, heat, power, telephone
or other utility services used, rendered or
supplied to or for the Demised
Premises. If any such utility charges are
not separately metered or billable to
the Demised Premises, then Landlord shall
have the right to apportion utility
charges based upon Landlord's estimation of
relative use of such utilities, and
such apportionment shall be final and
binding upon Tenant. Tenant shall pay to
Landlord the apportioned amount of such
utilities as Additional Rent.
7.2 Common
Facilities Charges. Tenant covenants and agrees to pay,
as Additional Rent, Tenant's Pro Rata Share
of all costs and expenses of
operating, repairing, maintaining and
upkeep of the Common Facilities including,
without limitation, upkeep and replanting
of grass, trees, shrubs and
landscaping; removal of dirt, debris,
obstructions and litter from Parking
Areas, landscaped areas, sidewalks and
driveways; repairs, resurfacing,
resealing, restriping, sweeping and snow
removal from the Parking Areas,
sidewalks and driveways; sprinkler systems;
building signs; stairways; heating,
ventilation and air conditioning systems;
utilities for the Common Facilities;
fire protection systems and sprinkler
systems; exterior painting; water and
sewage disposal systems; storm drainage
systems; supplies, personnel, and the
cost of any rental of equipment in
implementing such services; charges for
professional management of the Property and
Common Facilities, including wages,
salaries, benefits and payroll taxes paid
by Landlord with respect to its
employees for providing such services; all
alterations, additions, improvements
and other changes made to the Improvements
in order to conform to changes
subsequent to the date of this Lease in any
laws, ordinances, rules, regulations
or orders of any applicable governmental
authority, subject to amortization of
such costs at a market rate of interest
over the useful life thereof, as
determined by Landlord's accountants; and
personal property taxes, licenses and
permits. Landlord may cause any or all of
such services to be provided by
employees of Landlord or by independent
contractor(s) and subcontractor(s).
Tenant shall pay to Landlord, monthly in
advance, without notice, on each day
that payment of Monthly Rental is due, the
estimated monthly charge for the
Common Facilities, as determined and
redetermined from time to time by Landlord.
The initial monthly charge for Common
Facilities is set forth in the Summary of
Basic Lease Terms attached hereto. If the
total monthly charges paid by Tenant
are less than the Tenant's Pro Rata Share
of the actual charges for Common
Facilities, Tenant shall pay the difference
to Landlord within ten (10) days
after demand by Landlord. If Tenant's Pro
Rata Share of such actual charges is
less than the total monthly charges paid by
Tenant, the difference shall, at
Landlord's option, except as may be
otherwise required by law, either be paid to
Tenant or credited against future monthly
charges on the next applicable
invoice for Basic Rent, Additional Rent or
other amounts payable by Tenant under
this Lease.
7.3 Tenant's
Maintenance Obligation. Tenant, at its sole cost and
expense to maintain, will repair, replace
and keep the Demised Premises and all
improvements, fixtures and personal
property thereon in good, safe and sanitary
condition, order and repair and in
accordance with all applicable laws,
ordinances, orders, rules and regulations
of governmental authorities having
jurisdiction. Tenant will perform or
contract for and promptly pay for trash and
garbage disposal, janitorial and cleaning
services, security services, interior
painting, interior window washing,
replacement of damaged or broken glass and
other breakable materials, replacement of
interior light bulbs and light
fixtures in or serving the Demised
Premises. All costs of maintenance and
repairs to be performed by Tenant shall be
considered Additional Rent hereunder.
All maintenance and repairs to be performed
by Tenant shall be done promptly, in
a good and workmanlike fashion, and without
diminishing the original quality of
the Demised Premises or the Property.
7.4 Landlord's
Maintenance Obligation. Landlord shall be
responsible for and shall bear the costs
and expenses of replacement of, or
extraordinary maintenance and repairs to,
roofs, foundations, exterior walls,
structural elements of the Building, and
pipes for water and sewer. Landlord
shall maintain and repair the
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Common Facilities, and Tenant shall pay its
Pro Rata Share of all costs and
expenses with respect thereto, pursuant to
Section 7.2 above.
ARTICLE 8
OTHER COVENANTS OF TENANT
8.1 Limitation
on Use by Tenant. Tenant covenants and agrees to
use the Demised Premises only for the use
or uses set forth as Permitted Uses by
Tenant in the Summary of Basic Lease Terms
and for no other purposes, except
with the prior written consent of Landlord.
Landlord has made no investigation
of and makes no representations or
warranties whatsoever regarding the
permissibility of Tenant's Permitted Uses
under applicable zoning or land use
laws, rules, regulations or approvals.
8.2 Compliance
with Laws. Tenant covenants and agrees that at all
times during the Lease Term, Tenant's use
of the Demised Premises shall be in
compliance with all zoning, land use, and
other applicable laws, rules, and
regulations with respect thereto, and that
nothing shall be done or kept on the
Demised Premises in violation of any law,
ordinance, order, rule or regulation
of any governmental authority having
jurisdiction, and that the Demised Premises
shall be used, kept and maintained in
compliance with any such law, ordinance,
order, rule or regulation and with the
certificate of occupancy issued for the
Building and/or the Demised Premises.
8.3 Compliance
with Insurance Requirements. Tenant covenants and
agrees that nothing shall be done or kept
on the Demised Premises which might
impair or increase the cost of insurance
maintained with respect to the Demised
Premises or the Property, which might
increase the insured risks or which might
result in cancellation of any such
insurance.
8.4 No Waste
or Impairment of Value. Tenant covenants and agrees
that nothing shall be done or kept on the
Demised Premises or the Property which
might impair the value of the Demised
Premises or the Property, or which would
constitute excessive wear and tear or
waste.
8.5 No
Overloading. Tenant covenants and agrees that nothing shall
be done or kept on the Demised Premises or
the Building and that no
improvements, changes, alterations,
additions, maintenance or repairs shall be
made to the Demised Premises which might
impair the structural soundness of the
Building, Improvements, or Parking Area,
which might result in an overload of
electrical lines serving the Building or
cause excessive tripping of circuit
breakers, which might interfere with any
telephone lines or equipment or any
other electric or electronic equipment in
the Building or on any adjacent or
nearby property, which might place
excessive demands on or exceed the capacity
of the water lines or sewer lines servicing
the Building, or which might in any
other way overload any portion of the
Property or Improvements or any equipment
or facilities servicing the same. In the
event of violations hereof, Tenant
covenants and agrees to immediately remedy
the violation at Tenant's expense and
in compliance with all requirements of
governmental authorities and insurance
underwriters.
8.6 No
Nuisance. Noxious or Offensive Activity. Tenant covenants
and agrees that no noxious or offensive
activity shall be carried on upon the
Demised Premises or the Property nor shall
anything be done or kept on the
Demised Premises or the Property which may
be or become a public or private
nuisance or which may cause embarrassment,
disturbance, or annoyance to others
in the Building or on adjacent or nearby
property.
8.7 No
Annoying Lights, Sounds or Odors. Tenant covenants and
agrees that no light shall be emitted from
the Demised Premises which is
unreasonably bright or causes unreasonable
glare; no sound shall be emitted from
the Demised Premises which is unreasonably
loud or annoying; and no odor shall
be emitted from the Demised Premises which
is or might be noxious or offensive
to others in the Building or on adjacent or
nearby property.
8.8 No
Unsightliness. Tenant covenants and agrees that no
unsightliness shall be permitted on the
Demised Premises or the Property which
is visible from any adjacent or nearby
property. Without limiting the generality
of the foregoing, all unsightly conditions,
equipment, objects and conditions
shall be kept enclosed within the Demised
Premises; no refuse, scrap, debris,
garbage, trash, bulk materials or waste
shall be kept,
Copyright(C) 1999 Flatiron Park Company
8
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stored or allowed to accumulate on the
Demised Premises or the Property except
as may be enclosed within the Demised
Premises; all pipes, wires, poles,
antennas and other facilities for utilities
or the transmission or reception of
audio or visual signals or electricity
shall be kept and maintained underground
or enclosed within the Demised Premises or
appropriately screened from view; and
no temporary structure shall be placed or
permitted on the Demised Premises or
the Property without the prior written
consent of Landlord.
8.9 No
Animals. Tenant covenants and agrees that no animals shall
be permitted or kept on the Demised
Premises or the Property; provided, however,
that nothing herein shall be construed as
prohibiting qualified service animals
which may not be legally excluded from the
Demised Premises or Property pursuant
to the Americans with Disabilities Act or
any similar law, rule or regulation
applicable to the Property.
8.10
Restriction on Signs and Exterior Lighting. Tenant covenants
and agrees that no signs or advertising
devices of any nature shall be erected
or maintained by Tenant on the Demised
Premises or the Property and no exterior
lighting shall be permitted on the Demised
Premises or the Property except as
approved in writing by Landlord.
8.11
No Violation of Covenants. Tenant covenants and agrees not to
commit, suffer or permit any violation of
any covenant, condition or restriction
affecting the Demised Premises or the
Property.
8.12
Restriction on Changes and Alterations. Tenant covenants and
agrees not to improve, change, alter, add
to, remove or demolish any
improvements on the Demised Premises,
("Changes"), without the prior written
consent of Landlord which consent shall not
be unreasonably withheld, and unless
Tenant complies with all conditions which
may be imposed by Landlord, in its
sole discretion, in connection with such
consent; and unless Tenant pays to
Landlord the reasonable costs and expenses
of Landlord for architectural,
engineering, legal or other consultants
which may be reasonably incurred by
Landlord in determining whether to approve
any such Changes. Landlord's consent
to any Changes and the conditions imposed
in connection therewith shall be
subject to all requirements and
restrictions of any holder of a mortgage or deed
of trust encumbering the Property. If such
consent is given, no such changes
shall be permitted unless Tenant shall have
procured and paid for all necessary
permits and authorizations from any
governmental authorities having
jurisdiction; unless such Changes will not
reduce the value of the Property, and
will not affect or impair existing
insurance on the Property; and unless Tenant,
at Tenant's sole cost and expense, shall
maintain or cause to be maintained
workmen's compensation insurance covering
all persons employed in connection
with the work and obtains liability
insurance covering any loss or damage to
persons or property arising in connection
with any such Changes and such other
insurance or bonds as Landlord may
reasonably require. Tenant covenants and
agrees that any such Changes approved by
Landlord shall be completed with due
diligence and in a good and workmanlike
fashion and in compliance with all
conditions imposed by Landlord and all
applicable permits, authorizations, laws,
ordinances, orders, rules and regulations
of governmental authorities having
jurisdiction and that the costs and
expenses with respect to such Changes shall
be paid promptly when due and that the
Changes shall be accomplished free of
liens of mechanics and materialmen. Tenant
covenants and agrees that all such
Changes shall become the property of the
Landlord at the expiration of the Lease
Term or, if Landlord so requests, Tenant
shall, at or prior to expiration of the
Lease Term and at its sole cost and
expense, remove such Changes and restore the
Demised Premises to their condition prior
to such Changes.
8.13
No Mechanic's Liens. Tenant covenants and agrees not to permit
or suffer, and to cause to be removed and
released, any mechanic's,
materialmen's or other lien on account of
supplies, machinery, tools, equipment,
labor or material furnished or used in
connection with the construction,
alteration, improvement, addition to or
repair of the Demised Premises by,
through or under Tenant. At least fifteen
(15) days prior to any Changes, Tenant
shall provide written notice to Landlord of
the date of commencement of any
Changes. Prior to the commencement of any
Changes, Tenant shall post in
conspicuous locations and maintain on the
Demised Premises and Building Notices
of Owner's Non-Liability in the form
attached hereto as Exhibit C or in such
other form as Landlord may from time to
time require in writin