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EXHIBIT 10.31
AGREEMENT OF LEASE
THIS LEASE AGREEMENT (the "Lease") is made and entered into this
_________ day of ______________________, 2000, by and between TWIN TOWERS II
ASSOCIATES LIMITED PARTNERSHIP ("Landlord") and YELLOWBRIX, INC., a __________
corporation ("Tenant").
In consideration of the Rent hereinafter reserved and the agreements
hereinafter set forth, Landlord and Tenant mutually agree as follows:
1. DEFINITIONS.
Except as otherwise expressly provided or unless the context otherwise
requires, the following terms shall have the meanings assigned to them in this
Section:
A. Alterations: Any improvements, alterations, fixed decorations or
modifications, structural or otherwise, to the Premises, the Building or the
Land, as defined below, including but not limited to the installation or
modification of carpeting, partitions, counters, doors, air conditioning ducts,
plumbing, piping, lighting fixtures, wiring, hardware, locks, ceilings and
window and wall coverings.
B. Building: The building located at 0000 Xxxxxx Xxxxxxxxx xx Xxxxxxxxx,
Xxxxxxxx 00000, in which the Premises are located. Except as expressly
indicated otherwise, the term "Building" shall include all portions of said
Building, including but not limited to the Premises, the Common Areas and the
garage.
C. Common Areas: Those areas of the Building and/or Land, as the case
may be, made available by Landlord for use by Tenant in common with the
Landlord, other tenants of the Building and the employees, agents and invitees
of Landlord and of such other tenants.
D. Default Rate: That rate of interest which is five (5) percentage
points above the annual rate of interest which is publicly announced by First
Union Bank ("First Union") from time to time as its "prime" rate of interest,
irrespective of whether such rate is the lowest rate of interest charged by
First Union to commercial borrowers. In the event that First Union ceases to
announce such a prime rate of interest, Landlord, in Landlord's reasonable
discretion, shall designate the prime rate of interest by another bank located
in the Washington, D.C. metropolitan area, which shall be the prime rate of
interest used to calculate the default rate.
E. Fiscal Year: Each consecutive calendar year during the Term of this
Lease commencing on January 1, 2002.
F. Ground Leases: All ground and other underlying leases from which
Landlord's title to the Land and/or the Building is or may in the future be
derived. "Ground Lessors" shall denote those persons and entities holding such
ground or underlying leases.
G. Holidays: New Year's Day, Washington's Birthday, Xxxxxx Xxxx, Jr.'s
Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran's
Day, Thanksgiving Day, Christmas Day and any other holidays designated by an
executive order of the President of the United States or by Act of Congress.
H. Land: The real estate that supports the Building, and all associated
easements.
I. Lease Commencement Date: The date this Lease commences, as determined
pursuant to Subsection 2.A. below.
J. Lease Year: That period of twelve (12) consecutive calendar months
that commences on the first day of the calendar month in which the Lease
Commencement Date occurs, and each consecutive twelve (12) month period
thereafter. The earliest such twelve (12) month period shall be referred to as
the "first Lease Year," and each of the following Lease Years shall similarly
be numbered for identification purposes.
K. Mortgages: All mortgages, deeds of trust and similar security
instruments which may now or in the future encumber or otherwise affect the
Building or the Land, including mortgages related to both construction and
permanent financing. "Mortgagee's" shall denote those persons and entities
holding such mortgages, deeds of trust and similar security instruments.
L. Operating Expenses: Intentionally deleted.
M. Premises: 58,624 square feet of rentable area consisting of the
entire twenty-second (22nd) floor comprised of 19,050 rentable square feet and
the entire twenty-third (23rd) and twenty-fourth (24th) floors each comprised
of 19,787 rentable square feet in the Building, as shown on the floor plan
attached hereto as Exhibit A. However, the area and plan of the Premises may
change in the event of the exercise of any option to expand the Premises set
forth in this Lease. The rentable area of the Premises has been determined in
accordance with the current B.O.M.A. Standard Method of Measurement.
N. Premises' Standard Electrical Capacity: The electrical capacity
sufficient to support Tenant's balanced consumption of five (5) xxxxx per
square foot of rentable area.
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O. Real Estate Tax Expenses: Intentionally deleted.
P. Rent: All Base Rent and Additional Rent.
(1) Base Rent: The amount payable by Tenant pursuant to Subsection
4.A. below.
(2) Additional Rent: All sums of money payable by Tenant pursuant to
this Lease other than Base Rent.
(3) Monthly Rent: A monthly installment of Base Rent and Additional
Rent, if any, which shall equal one-twelfth (1/12th) of Base Rent and
Additional Rent then in effect.
Q. Tenant's Personal Property: All equipment, improvements, furnishings
and/or other property now or hereafter installed or placed in or on the
Premises by and at the sole expense of Tenant or with Tenant's permission
(other than any property of Landlord), with respect to which Tenant has not
been granted any credit or allowance by Landlord, and which: (i) is removable
without damage to the Premises, the Building and the Land, and (ii) is not a
replacement of any property of Landlord, whether such replacement is made at
Tenant's expense or otherwise. Notwithstanding any other provision of this
Lease, Tenant's Personal Property shall not include any improvements or other
property installed or placed in or on the Premises as part of Landlord's Work,
whether or not any such property was purchased or installed at Tenant's expense.
R. Unavoidable Delay: Any delays due to strikes, labor disputes,
shortages of material, labor or energy, acts of God, governmental restrictions,
enemy action, civil commotion, fire, unavoidable casualty or any other causes
beyond the control of Landlord.
S. Delivery of Premises: Landlord shall deliver the Premises as an
Air-Conditioned Shell (as defined in Exhibit C attached hereto and made a part
hereof) on or before October 1, 2001 (the "Possession Date"). The Tenant will
have the right to use the Premises and all of the common areas of the Building
in accordance with the terms of this Lease from and after the date of such
delivery in connection with the operation of its business and for all other
purposes permitted hereunder. In the event that Landlord shall fail to deliver
the Premises to Tenant as required on the Possession Date, the Commencement Date
hereunder shall be extended by one (1) day for each day of delay by Landlord in
delivering the Premises to Tenant as herein agreed. The Air-Conditioned Shell
shall be provided by Landlord, at Landlord's sole cost, in accordance with
Exhibit C. It is agreed that portions of the Air-Conditioned Shell will be
completed during Tenant's Work, however, Landlord's completion of said
Air-Conditioned Shell shall in no way interfere with Tenant's ability to
complete Tenant's Work.
2. TERM.
A. Term of Lease: The term of this Lease (the "Term") shall commence on
a date (the "Lease Commencement Date"), as defined below, and shall terminate
on December 31, 2011, or such earlier date on which this Lease is terminated
pursuant to the provisions hereof (the "Lease Expiration Date"), The Lease
Commencement Date shall be the earlier of (i) January 1, 2002 or (ii) the date
Tenant commences occupancy of any part of the Premises. Landlord hereby leases
the Premises to Tenant and Tenant hereby leases the Premises from Landlord for
the Term.
B. Declarations: Upon the request of Landlord at any time during the
Term, Tenant promptly will execute a declaration in the form attached hereto as
Exhibit B.
C. Effective Date: The rights and obligations set forth in this Lease,
except for the obligation to pay Rent and as otherwise specifically provided
herein to the contrary, shall become effective on the date of final execution
of this Lease.
3. TENANT IMPROVEMENTS -- TENANT'S WORK.
A. Landlord will deliver the Premises to Tenant on or before October 1,
2001 as an Air-Conditioned Shell.
B. Tenant hereby accepts the Premises in Air-Conditioned Shell condition
and Landlord shall have no obligation to make any other improvements of any kind
or nature whatsoever to the Premises. Tenant shall improve the Premises in
accordance with Tenant's final plans ("Tenant's Plans"), which plans shall be
subject to Landlord's prior written approval, said approval shall be provided
within ten (10) business days from Landlord's receipt, (such improvements being
hereinafter referred to as "Tenant's Work"). Landlord's approval of Tenant's
Plans shall constitute approval of Tenant's design concept only and shall in no
event be deemed a representation or warranty by Landlord as to whether Tenant's
Plans comply with any and all legal requirements applicable to Tenant's Plans
and Tenant's Work. Tenant shall obtain all permits, certificates and other
governmental approvals from all governmental entities having jurisdiction
thereover which are necessary for the prosecution and completion of Tenant's
Work. Any improvements or modifications which Tenant wishes to make to the
Premises after completion of Tenant's Work shall be deemed to be Alternations
and shall be subject to the provisions of Section 8 of this Lease.
Prior to commencing Tenant's Work, Tenant shall provide to Landlord the
name and address of each contractor and subcontractor (collectively
("Contractor") which Tenant will employ to perform Tenant's Work, the use of
which Contractor shall be subject to Landlord's prior written approval, which
shall not be unreasonably withheld, conditioned or delayed if (i) the
Contractor is properly licensed, and (ii) Landlord has had no prior experience
with such contractor which was unsatisfactory to Landlord. Tenant
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will issue a corporate guaranty of completion in lieu of obtaining a Bond from a
Contractor. Prior to commencement of any of Tenant's Work, Tenant shall deliver
to Landlord, with respect to each Contractor which Tenant will employ to perform
any of Tenant's Work,a certificate of insurance from each such Contractor
specifying Landlord as a named insured (in care of Westfield Realty, Inc. and
referring to the Building by its address) and evidencing that each such
Contractor has obtained the following insurance coverage:
1. comprehensive commercial general liability insurance, including
contractor's liability coverage, contractual liability coverage,
completed operations coverage, broad form property damage
endorsement and contractor's protective liability coverage, to
afford protection, with limits for each occurrence, of not less
than Two Million Dollars ($2,000,000) with respect to bodily
injury or death and One Million Dollars ($1,000,000) with respect
to property damage or equivalent terms, conditions and limits
under a commercial liability form policy;
2. comprehensive automobile liability insurance with limits for each
occurrence of not less than One Million Dollars ($1,000,000) with
respect to bodily injury or death and One Million Dollars
($1,000,000) with respect to property damage; and
3. worker's compensation or similar insurance in form and amounts
required by law. Said Contractors shall also comply with other
reasonable industry requirements of Landlord.
As an inducement to Tenant, Landlord shall provide to Tenant an allowance
(the "Tenant Allowance") of One Million Nine Hundred Thirty Four Thousand Five
Hundred Ninety Two Dollars ($1,934,592.00) (calculated on the basis of $33.00
per rentable square foot multiplied by the number of rentable square feet
contained in the Premises) to offset expenses incurred by Tenant in performing
Tenant's Work. Provided that no uncured default by Tenant shall have occurred
or be continuing, Landlord shall remit payment of the Tenant Allowance within
ten (10) days following Landlord's receipt from Tenant of (i) invoices
reasonably evidencing work or services performed with respect to Tenant's Work;
(ii) receipted bills or other evidence that the aforesaid invoices have been
paid in full; and (iii) waivers or releases of liens from each of Tenant's
Contractors in connection with the work performed or materials supplied as
evidenced by the aforesaid invoices. Notwithstanding the foregoing, at the
request of Tenant, Landlord will pay directly to a Contractor invoices approved
by Tenant, provided the Contractor delivers an appropriate waiver or release of
lien. Any costs of performing Tenant's Work which are in excess of the Tenant
Allowance shall be borne by Tenant at its sole cost and expense. In the event
that Tenant does not use all of the Tenant allowance in the performance of
Tenant's Work, the remainder of the Tenant Allowance shall be applied toward
the costs associated with Tenant's network cabling or future Tenant
Improvements.
O. Tenant shall be obligated to pay for all of Landlord's actual costs
associated with monitoring Tenant's Work.
D. Certificate of Occupancy Use: Tenant shall submit for the
Certificate of Occupancy with Arlington County prior to occupying the Premises.
Tenant will not at any time use or occupy the Premises in violation of the
certificate of occupancy issued for the Premises or the Building of which the
Premises form a part. Tenant will not use or permit the Premises or any part
thereof to be used for any disorderly, unlawful or hazardous purpose and will
not manufacture any commodity therein. Tenant will not use or permit the
Premises to be used for any purposes that interfere with the use and enjoyment
by other tenants of the Building nor which in Landlord's opinion, impair the
reputation or character of the Building. Tenant shall refrain from and
discontinue such use upon receipt of written notice from Landlord no later than
three (3) days after receipt thereof.
4. RENT.
From and after the Lease Commencement Date, Tenant shall pay to landlord
such Base Rent and Additional Rent as is set forth in this Section 4 and in
Section 5 below.
A. Base Rent: Base Rent shall equal Two Million Fifty One Thousand
Eight Hundred Forty Dollars ($2,051,840.00) per annum. Effective on the first
annual anniversary date of the Lease Commencement Date and each annual
anniversary date thereafter, the Base Rent shall be increased by three and one
half percent (3.5%) over the period year's Base Rent. Tenant shall pay Base Rent
to Landlord in equal monthly installments ("Monthly Base Rent") in advance on
the first day of each calendar month during the Term, without notice, except
that the first monthly installment of Base Rent shall be paid upon execution of
this Lease. If the Lease Commencement Date occurs on a date other than the first
day of a calendar month, Tenant shall receive a credit equal to the Monthly Base
Rent multiplied by the number of days in said calendar month prior to the Lease
Commencement Date and divided by the number of days in such month, which credit
shall be applied toward the installment of Monthly Base Rent next due hereunder.
B. Payment: All Base Rent and Additional Rent due and payable to
Landlord under this Lease shall be made payable to Twin Towers II Associates
and delivered in care of Westfield Realty, Inc., at the address set forth in
Section 31; provided, however, that at landlord's sole option, following at
least thirty (30) days written notice to Tenant, Tenant shall thereafter make
all payments of Base Rent and Additional Rent due and payable to Landlord under
this Lease by means of electronic transfers of funds from Tenant's financial
institution to Landlord's designated financial institution. Payments of Rent
(other than in cash), if initially dishonored, shall not be considered rendered
until ultimately honored as cash by Landlord's depository. Except as expressly
set
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forth otherwise in this Lease, Tenant will pay all Rent to Landlord without
demand, deduction, set-off or counter-claim
C. Late Fee: If Tenant fails to make any payment of Rent on or before
the fifth (5th) day after the due date, then Tenant also shall pay to Landlord
a late fee equal to five percent (5%) of the amount that is past due for each
month or part thereof until such Rent is fully paid. Said late fee shall be
deemed reimbursement to Landlord for its costs of carrying and processing
Tenant's delinquent account. Acceptance by Landlord of said late fee shall not
waive or release any other rights or remedies to which Landlord may be entitled
on account of such late payment.
D. The Monthly Rent due for the month of January 2002 shall be fully
abated.
5. ADDITIONAL RENT.
All sums of money payable by Tenant pursuant to this Lease other than Base
Rent. Additional Rent shall be payable by Tenant to Landlord as required by the
provisions of this Lease.
6. USE.
A. Permitted Use: Tenant shall use and occupy the Premises solely for
general office use, for office and administrative activities directly related
thereto and for no other purpose.
B. Legal and Other Restrictions of Tenant's Use: In its use of the
Premises, Tenant shall comply with all present and future laws, regulations
(including but not limited to fire and zoning regulations) and ordinances of all
other public and quasi-public agencies having jurisdiction over the Land or the
Building. Tenant shall not use the Land, the Building or use or occupy the
Premises for any unlawful, disorderly or hazardous purposes or in a manner which
will interfere with the rights of Landlord, other tenants or their invitees or
in any way injure or annoy any of them.
7. CARE OF PREMISES.
Tenant shall at its expense keep the Premises (including all improvements,
fixtures and other property located therein) in a neat and clean condition and
in good order and repair, and will suffer no waste or injury thereto. Tenant
shall surrender the Premises at the end of the Term in as good order and
condition as they were in on the Lease Commencement Date, ordinary wear and
tear excepted.
8. ALTERATIONS BY TENANT.
A. Tenant shall make no alterations, additions or improvements
("Alterations") in or to the Premises without the prior written consent of
Landlord. Landlord's consent shall not be unreasonably withheld for
nonstructural interior alterations to the Premises that do not adversely affect
the Building's appearance, value and structure. all alterations that Tenant is
permitted to make to the Premises shall (1) not harm the structural or the
electrical, plumbing, heating or air-conditioning facilities of the Premises or
the Building; (2) comply with all applicable legal requirements including the
American with Disabilities Act and other laws relating to the use of the
Premises by persons with disabilities; (3) become the property of Landlord, and
shall be surrendered with the Premises at the Lease Expiration Date, to the
extent that such alterations are of a permanent nature or cannot be removed
without structural damage to the Premises or the Building; and (4) be
performed, at Tenant's sole cost and expense, in a good and workmanlike manner
by contractors approved by Landlord, using materials of first-class quality.
B. Except as otherwise provided in Section 12, all furniture, server
racks, furnishings, and trade fixtures, installed by or at the expenses of
Tenant ("Tenant's Special Installations") shall remain the property of Tenant.
Prior to the installation of any of Tenant's Special Installations, Tenant
shall provide Landlord with a list of Tenant's Special Installations and
Landlord shall promptly notify Tenant of Tenant's Special Installations and
Tenant shall be obligated, at its Lease Expiration Date, provided that Tenant
fully repairs any damage occasioned by such removal. Tenant shall repair any
damage occasioned by Tenant's removal of such Tenant's Special Installations.
C. Tenant shall not permit any materialmen's or mechanic's liens to be
filed against the Premises or the Building in connection with any item or
construction or repair performed by or at the request of Tenant. If any such
lien is filed, Tenant shall within thirty (30) days after notice, discharge the
lien of record or, if Tenant elects to contest the lien by appropriate
proceedings, bond off the lien and prosecute the proceedings. If Tenant fails
to discharge or bond off the lien, Landlord may do so and any monies expended
by landlord in doing so, including reasonable attorneys' fees and legal
expenses, shall be reimbursed by Tenant promptly. Notice is hereby given that
Landlord shall not be liable for any labor or materials furnished to Tenant
upon credit, and that no mechanics or materialmen's lien for any such labor or
materials shall attach to or affect the reversion or other estate or interest
of Landlord in and to the Premises or the Building.
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9. EQUIPMENT.
A. Permitted Equipment: Tenant shall not install or operate in the
Premises any equipment or other machinery that, in the aggregate, will cause
the Tenant to use more than the Premises' Standard Electrical Capacity,
without: (i) obtaining the prior written consent of Landlord, who may condition
its consent upon the payment by Tenant of Additional Rent for additional
consumption of utilities, additional wiring, or other expenses resulting
therefrom, (ii) securing all necessary permits from governmental authorities
and utility companies and furnishing copies thereof to Landlord, and (iii)
complying with all other requirements reasonably imposed by Landlord. Prior to
the Lease Commencement Date, Tenant shall provide Landlord with a list of all
equipment that Tenant intends to install or operate in the Premises which
operate on more than one hundred twenty (120) volts, and Tenant shall provide
Landlord with an updated list of such equipment prior to the installation or
use of any additional equipment which operates on more than one hundred twenty
(120) volts. Tenant shall not install any equipment or machinery which may
necessitate any changes, replacements or additions to or material changes in
the use of water, heating, plumbing, air conditioning or electrical systems of
the Building without obtaining the prior written consent of the Landlord, who
may withhold its consent in its absolute discretion.
B. Payment For Excess Utility Usage: If Tenant's equipment shall result
in electrical demand in excess of the Premises' Standard Electrical Capacity,
Landlord shall have the right, in its sole discretion, to install additional
transformers, distribution panels, wiring and other applicable equipment at the
expense of Tenant. None of the equipment so installed shall be deemed to be
Tenant's Personal Property. If at any time during the Term, Tenant's connected
electrical load from its use of equipment and fixtures (including incandescent
lighting and power), as estimated by Landlord, exceeds the Premises' Standard
Electrical Capacity, then Landlord may, at its option: (i) install separate
electrical meter(s) for the Premises, or (ii) cause a survey to be made by an
independent electrical engineer or consulting firm to determine the amount of
electricity consumed by Tenant beyond the Premises' Standard Electrical
Capacity. Tenant shall reimburse Landlord for the cost of the installation of
said meter(s) or completion of said meter(s) or survey, and shall pay as
Additional Rent the cost of any electricity in excess of an average of the
Premises' Standard Electrical Capacity, at the rate charged by the utility
company providing such electricity, assuming continuous business hours, within
ten (10) days after receipt of any xxxx therefor from Landlord.
C. Noise; Vibration; Floor Load: Business machines and equipment
belonging to Tenant, which cause noise or vibration that may be transmitted to
any part of the Building to such a degree as to be objectionable to Landlord or
to any tenant of the Building, shall be installed and maintained by Tenant at
Tenant's expense on devices that eliminate the noise or vibration. Tenant shall
not place any load upon the floor of the Premises which exceeds the per square
foot load the floor was designed to carry 80 pounds per square foot for live
load and 20 pounds per square foot for dead loads.
10. OWNERSHIP AND REMOVAL OF PROPERTY.
A. Landlord's Property: Any Alterations and other improvements and any
equipment, machinery, furnishings and other property, installed or located in
the Premises, the Building or the Land by or on behalf of Landlord or Tenant,
except for Tenant's Personal Property: (i) shall immediately become the
property of Landlord, and (ii) shall be surrendered to Landlord with the
Premises as a part thereof at the end of the Term; provided, however, that if
Landlord requests Tenant to remove any Alterations installed by or on behalf of
Tenant, Tenant shall cause the same to be removed at Tenant's expense on or
before the Lease Expiration Date, or shall reimburse Landlord for the cost of
such removal, as elected by Landlord (unless Landlord expressly waives in
writing the right to require such removal at the time Landlord give its consent
to the making of such Alterations).
B. Removal of Property At End of Term: Tenant shall remove all of
Tenant's Personal Property from the Building and the Land on or before the
Lease Expiration Date. Any personal property belonging to Tenant or to any
person or entity which is left in the Building or on the Land after the date
this Lease is terminated for any reason shall be deemed to have been abandoned.
In such event, Landlord shall have the right to store such property at Tenant's
sole cost and/or to dispose of it in whatever manner Landlord considers
appropriate, without waiving its right to claim from Tenant all expenses and
damages caused by Tenant's failure to remove such property, and Tenant and any
other person or entity shall have no right to compensation from or any other
claim against Landlord as a result.
11. LANDLORD'S ACCESS TO PREMISES.
Tenant shall permit Landlord to erect, use and maintain, pipes and
conduits in and through the Premises, provides such does not impair Tenant's
ability to conduct its business in the normal course. Landlord or Landlord's
agents shall have the right to enter the Premises at all reasonable times to
examine the same, and to show them to prospective purchasers, mortgagees or
lessees of the Building, and to make such repairs, alterations, improvements or
additions as Landlord may reasonably deem necessary or desirable, and Landlord
shall be allowed to take all material into and upon said Premises that may be
required therefor without the same constituting an eviction of Tenant in whole
or in part and the rent reserved shall in no way xxxxx while said decorations,
repairs, alterations, improvements, or additions are being made, by reason of
loss or interruption of business of Tenant, or otherwise. If
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Tenant shall not be personally present to open and permit an entry into said
Premises, at any time, when for any reason an entry therein shall be necessary
or permissible, Landlord or Landlord's agents may enter the same by a master
key without rendering Landlord or such agents liable therefor (if during such
entry Landlord or Landlord's agents shall accord reasonable care to Tenants
Personal Property), and without in any manner affecting the obligations and
covenants of this Lease. Nothing herein contained, however, shall be deemed or
construed to impose upon Landlord any obligation, responsibility or liability
whatsoever, for the care, supervision or repair, of the Building or any part
thereof, other than as herein provided. Landlord shall also have the right at
any time, without the same constituting an actual or constructive eviction and
without incurring any liability to Tenant therefor, to change the arrangement
and/or location of entrances or passageways, doors and doorways, and corridors,
elevators, stairs, toilets, or other public parts of the Building and to change
the name, number or designation by which the Building is commonly known
provided such does not impair Tenant's ability to conduct its business in the
normal course.
12. SERVICES AND UTILITIES.
A. Services Provided: As long as Tenant is not in Default, as defined in
Subsection 19.A. below, Landlord shall provide the following to Tenant, without
additional charge, except as otherwise provided herein (including, but not
limited to, as provided in Sections 5 and 1.N. hereof):
(1) Elevator service for common use, subject to call at all times,
including Sundays and Holidays.
(2) Central heating and air conditioning from 7:00 a.m. until 6:00
p.m. on weekdays and from 9:00 a.m. until 1:00 p.m. on Saturdays, exclusive of
Holidays, during the seasons of the year and within the temperature ranges
usually furnished in comparable office buildings in the Washington, D.C.
metropolitan ares. Landlord shall provide heat and air conditioning at other
times at Tenant's expense, provided that Tenant gives Landlord notice by 1:00
p.m. on weekdays for after-hour service on the next weekday, two (2) business
days' notice before a Holiday for service on such Holiday and two (2) business
days' notice for after-hour service on Saturday or Sunday. Landlord shall
charge Tenant for such after-hour, Holiday and special weekend service at the
prevailing rates charged by Landlord from time to time to other tenants in the
Building.
(3) Cleaning and char services in Landlord's standard manner in
accordance with Exhibit F, attached hereto.
(4) Electrical facilities to furnish electricity up to the Premises'
Standard Electrical Capacity.
(5) Rest room facilities.
(6) Routine maintenance, painting and electrical lighting service
for all Common Areas of the Building in such manner as Landlord deems
reasonable.
(7) Reasonable access to the Premises at all times, subject to such
reasonable security procedures, restrictions and other regulations as Landlord
may promulgate.
(8) Landlord shall provide and maintain at all times an electronic
security system for all points of ingress and egress to the Building and the
Premises consistent with the highest standards for first-class office buildings
in Rosslyn. Landlord shall provide a reasonable amount of access cards to
Tenant at no cost to Tenant. In addition, Tenant, shall have the right to
tie-in to the Building systems for additional security within the Premises.
B. Failure to Provide Services: Landlord shall have no liability to
Tenant or others based on any failure by Landlord to furnish the foregoing, due
to Unavoidable Delays, repair or maintenance work or any other reason, and such
failure shall neither render Landlord liable for damages to either person or
property, nor be construed as an eviction of Tenant, nor cause a diminution or
abatement of Rent nor relieve Tenant of any of Tenant's obligations hereunder.
C. Conservation: Tenant hereby agrees to comply with all energy
conservation procedures, controls and requirements instituted by Landlord
pursuant to any government regulations or otherwise, including but not limited
to controls on the permitted range of temperatures, the volume of energy
consumption or the hours of operation of the Building. Institution by Landlord
of such controls and requirements shall not entitle Tenant to terminate this
Lease or to an abatement of any Rent payable hereunder.
D. Recycling: Without limiting the foregoing, Tenant covenants and
agrees, at its sole cost and expense, to comply with all present and future
laws, orders, and regulations of the Commonwealth of Virginia, federal,
municipal, and local governments, departments, commissions, agencies and
boards to the extent that they or this Lease impose on Tenant duties and
responsibilities regarding the collection, sorting, separation, and recycling
of trash. Tenant shall pay all costs, expenses, fines, penalties, or damages
that may be imposed on Landlord or Tenant by reason of Tenant's failure to
comply with the provisions of this Section 12, Subsection D, and, at Tenant's
sole cost and expense, shall indemnify, defend and hold Landlord harmless
(including legal fees and expenses) from and against any actions, claims, and
suits arising from such noncompliance, using counsel reasonably satisfactory to
Landlord.
13. RULES AND REGULATIONS.
Tenant shall abide by and observe the rules and regulations attached
hereto as Exhibit D and such other rules and regulations
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as may be made by Landlord from time to time, provided that such rules and
regulations shall not be materially inconsistent with the provisions of this
Lease. Nothing contained in this Lease or in any rules and regulations shall be
interpreted to impose upon Landlord any obligations to enforce against any
tenant its rules and regulations, or the provisions of any lease with any other
Tenant, and Landlord shall not be liable to Tenant or any other entity for any
violation of said rules, regulations or lease provisions.
14. REPAIRS AND MAINTENANCE
A. Tenant shall take good care of the Premises and the fixtures and
appurtenances therein and at its sole cost and expense make all repairs to
Tenant Alterations and Tenant's Work as and when needed to preserve them in
good working order and condition. Tenant shall not move any safe, heavy
machinery, heavy equipment, freight, bulky matter, or fixtures into or out of
the Building without Landlord's prior written consent, which shall not be
unreasonably withheld, conditioned, or delayed. All damage or injury to the
Premises and to its fixtures and equipment or to the Building or to its
fixtures and equipment caused by Tenant moving property in or out of the
Building or by installation or removal of furniture, fixtures or other
property, or resulting from air-conditioning unit or systems, short circuits,
flow or leakage of water or from any other cause of any other kind or nature
whatsoever due to carelessness, omission, neglect, improper conduct or other
cause of Tenant, its servants, employees, agents, visitors or licensees shall
be repaired, restored or replaced by Landlord at the expense of Tenant and
collectible as Additional Rent and shall be paid by Tenant within ten (10) days
after rendition of a xxxx or statement therefor.
B. Tenant shall not place a load upon any floor of the Premises
exceeding the floor load per square foot area which such floor was designed to
carry and which is allowed, by law. Landlord reserves the right to prescribe
the weight and position of all safes and heavy equipment which must be placed
so as to distribute the weight. Business machines and mechanical equipment
shall be placed and maintained by Tenant at Tenant's expense in settings
sufficient in Landlord's judgment to absorb and prevent vibration, noise and
annoyance.
C. There shall be no allowance to Tenant for a diminution of rental
value and no liability on the part of Landlord by reason of inconvenience,
annoyance or injury to business arising from Landlord, Tenant or others making
any repairs, alterations, additions or improvements in or to any portion of the
Building or Premises, or in or to fixtures, appurtenances, or equipment thereof,
and no liability upon Landlord for failure of Landlord or others to make any
repairs, alterations, additions or improvements in or to any portion of the
Building or of Premises, or in or to the fixtures, appurtenances, or equipment
thereof.
D. Landlord shall maintain the roof, structural supports, foundation and
exterior of the Building and all Building standard plumbing, electrical,
mechanical, heating, ventilating, and air-conditioning systems in good
condition, and shall maintain and clean the interior common areas in the
Building. Landlord also shall maintain all parking areas, driveways, walkways,
lawns and planted areas and all common areas of the Building. Throughout the
Term, Landlord will maintain the Building, other than the Premises, in
accordance with all applicable laws, orders and regulations of federal, state,
county and municipal authorities (including, without limitation, the Americans
with Disabilities Act).
15. LIMITATION ON LANDLORD LIABILITY.
A. Liability Standard: Landlord shall not be liable to Tenant or any
other individual or entity for any damage, loss or claim whatsoever, except
damages.
B. Limitation on Total Liability: Notwithstanding any other provision
of this Lease, it is expressly understood and agreed that the total liability
of Landlord arising out of or in connection with this Lease, the relationship
of Landlord and Tenant hereunder and/or Tenant's use of the Premises, shall be
limited to the estate of Landlord in the Building. No other property or assets
of Landlord or any partner or owner of Landlord shall be subject to levy,
execution, or other enforcement proceedings or other judicial process for the
satisfaction of any judgment or any other right or remedy of Tenant arising out
of or in connection with this Lease, the relationship of Landlord and Tenant
hereunder and/or Tenant's use of the Premises.
16. FIRE AND OTHER CASUALTY.
If the Premises shall be damaged by fire or other casualty, the Lease shall
not terminate and, upon adjustment of insurance claims, Landlord shall repair
the damage, provided that Landlord shall have no obligation to repair damage to
or replace Tenant's Work, Tenant's Alterations and Tenant's Personal Property.
Except as otherwise provided herein, if any part of the Premises are rendered
untenantable by reason of any such damage, Rent shall xxxxx from the date of the
damage to the date the damage is repaired, as determined by Landlord, in the
proportion that the area of the untenantable part bears from time to time to the
total area of the Premises. No compensation or reduction of Rent shall be paid
or allowed for inconvenience, annoyance or injury to Tenant or Tenant's business
arising from any damage to or repair of the Premises or the Building.
Notwithstanding the foregoing, if Landlord does not receive sufficient
insurance proceeds to fully repair the damage, or if the Building shall be so
damaged that, as determined by Landlord, substantial reconstruction of the
Premises or the Building is required
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(whether or not the Premises have been damaged), then Landlord, at its option,
may give Tenant, within sixty (60) days after the casualty, written notice of
termination of this Lease, and this Lease and the Term shall terminate (whether
or not the Term has commenced) upon the expiration of thirty (30) days from the
date of the notice, with the same effect as if the new expiration date had been
the date initially fixed for expiration of the Term, and all Rent shall be
apportioned as of such date.
17. TENANT INSURANCE.
A. Types of Insurance Required: Tenant, at its expense, shall obtain and
maintain in effect at all times during the Term an insurance policy providing
the following coverage:
(1) A fire and extended coverage "all risk" insurance policy covering
all of Tenant's Initial Alterations, Tenant's Alteration and Tenant's Personal
Property within, and improvements and alterations to, the Premises for not less
than the full replacement value thereof. All proceeds of such insurance shall
be used to repair or replace the items so insured.
(2) A commercial general liability policy on an occurrence basis,
with the following limits:
Each occurrence limited bodily injury and property damage $1,000,000
General aggregate $2,000,000
Product/completed operations aggregate $2,000,000
Personal and advertising injury liability $1,000,000
Fire damage legal liability $50,000
Medical payments (any one person) $5,000
Said insurance shall name Landlord, Westfield Realty, Inc. and Mortgagee as
an additional insured. The policy shall protect Landlord, Westfield Realty,
Inc., and the Mortgagee against any liability for bodily injury, personal
injury, death or property damage occurring upon, in or about the Premises, the
Building or the Land or arising out of Tenant's use and occupancy of the
Premises. From time to time during the Term, Landlord may require Tenant to
increase said limits of said insurance to the limits of liability insurance then
customarily required of tenants of other comparable office buildings in the
Washington, D.C. Metropolitan area.
B. Required Provisions of Policies: All insurance policies required to be
maintained by Tenant under this Lease must: (i) be issued by insurance companies
approved by Landlord; (ii) be in form and have content satisfactory to Landlord;
(iii) be written as primary policy coverage and not contributing to or in excess
of any coverage which Landlord or the Mortgagees may carry; (iv) contain an
express waiver of any right of subrogation by the insurance company against
Landlord, the Mortgagees and the Landlord's and the Mortgagees' employees and
agents; and (v) provide that the policy may not be canceled or permitted to
lapse unless Landlord shall have received at least thirty (30) days prior
written notice of cancellation or non-renewal. Tenant shall deliver to Landlord
certified copies or duplicate originals of each such policy and any renewal
policy, together with evidence of payment of all applicable premiums, at least
ten (10) days before the Lease Commencement Date and at least thirty (30) days
before the renewal of any policies. Any insurance required of Tenant under this
Section may be carried under a blanket policy, provided that said policy shall
specifically set forth the amount of insurance allocated to this Lease.
C. Effect of Tenant's Activities on Insurance: Tenant shall not conduct
or permit to be conducted any activity, or place any equipment in or about the
Land, the Building or the Premises which will increase the rate of, or make void
or voidable, any fire or other insurance maintained or required to be maintained
by Landlord or any Mortgagee on the Building, the Land or the property kept
thereon or therein, which will conflict with the provisions of any such
insurance policy or which will make it impracticable for Landlord to obtain
insurance covering any risks against which Landlord reasonably deems it
advisable to obtain insurance. In the event any increases in the rates of such
insurance are, in Landlord's reasonable judgement, due to the Tenant's presence
in the Building, to any activity conducted or property installed or placed by
Tenant on or about the Land, the Building or the Premises or to Alterations
installed by Tenant or at Tenant's request (other than Building Standard Work,
as defined in the Work Agreement). Tenant shall reimburse Landlord for the
amount of such increases promptly upon demand therefor. Statements by the
applicable insurance company or insurance rating bureau that such increases are
due to any activity, property or improvements shall be conclusive for the
purposes of determining Tenant's liability hereunder.
D. Termination Right: Landlord shall have the right to terminate this
Lease upon thirty (30) days notice to Tenant in the event Landlord receives
notice from any of Landlord's insurance carriers that such carrier intends to
cancel its insurance on the Building, or to increase the cost of such insurance
by more than ten percent (10%) above the premium payable by Landlord immediately
prior to such notice, due to the activities of Tenant or the presence of Tenant
in the Building. However, Landlord shall not terminate this Lease in the event
Landlord is able, with good faith efforts, to obtain equivalent insurance from
an insurance carrier satisfactory to Landlord at a premium not more than ten
percent (10%) greater than the premium for the canceled insurance; provided that
Tenant shall reimburse Landlord for all addition premiums charged to Landlord by
such new insurance carrier. It is expressly understood that Landlord shall not
have the right to terminate this Lease pursuant to this Subsection D, if any
cancellation or rate increase is due to factors generally applicable to the
insurance or rental market, rather than to Tenant's activities or presence in
the Building.
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E. Waiver: Landlord and Tenant hereby each waive and release each other
from any and all liabilities, claims and losses for which Landlord or Tenant is
or may be held liable, to the extent either party: (i) receives insurance
proceeds on account there or (ii) is required to maintain insurance pursuant to
this Section, whichever is greater.
18. CONDEMNATION.
A. Landlord's Right to Terminate: If a substantial part of the Premises,
the Building or the Land is taken or condemned by any governmental authority
for any purpose or is granted to any authority in lieu of condemnation
(collectively, a "taking"), Landlord shall have the right in its sole
discretion to terminate this Lease by written notice to Tenant, and upon the
giving of such notice, the Term shall terminate as of the date title vests in
the authority, and Rent shall be abated as of that date. For purposes of this
Section, a substantial part of the Premises, the Land or the Building shall be
considered to have been taken if, in the sole opinion of Landlord, the taking
shall render it commercially undesirable for Landlord to permit this Lease to
continue or to continue operating the Building.
B. Adjustment of Rent: If a portion of the Premises is taken and
Landlord does not elect to terminate this Lease pursuant to the preceding
section, then Rent shall be equitably adjusted as of the date title vests in
the authority and this Lease shall otherwise continue in full force and effect.
C. Division of Award: Tenant shall have no claim against Landlord
arising out of or related to any taking, or for any portion of the amount that
may be awarded as a result, and Tenant hereby assigns to Landlord all its
rights, title and interest in and to any such award; provided, however, that
Tenant may assert any claim it may have against the authority for compensation
for Tenant's Personal Property and for any relocation expenses compensable by
statute, as long as such awards shall be made in addition to and stated
separately from the award made for the Land, the Building and the Premises.
19. DEFAULT.
A. Default of Tenant: The following events shall be a default by Tenant
(a "Default") under this Lease:
(1) Failure of Tenant to pay Rent as and when due, if the failure
continues for three (3) days after notice from Landlord specifying the failure.
(2) Failure of Tenant to comply with or perform any material
covenant or obligation of Tenant under this Lease, other than those concerning
the payment of Rent, if the failure continues for ten (10) days after notice
from Landlord to Tenant specifying the failure.
(3) If, in Landlord's reasonable opinion, Tenant's activities or
presence in the Premises results in a significant, continuing or repeated
threat of physical danger to other tenants and/or users of the Building,
whether or not Tenant is capable of controlling such threat.
(4) If Tenant, any affiliate of Tenant, or any guarantor of Tenant's
performance hereunder (a "Guarantor") or, if Tenant is a partnership, any
partner of Tenant ("Partner"), shall file a voluntary petition in bankruptcy or
insolvency, shall be adjudicated bankrupt or insolvent or shall file a
petition or answer seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or
future federal, state or other law, or shall make an assignment for the benefit
of creditors, or shall seek or acquiesce in the appointment of any trustee,
receiver or liquidator of Tenant or of any Guarantor or Partner or of all or
any part of the property of Tenant or of such Guarantor or Partner.
(5) If, within thirty (30) days after the commencement of any
proceeding against Tenant, an affiliate of Tenant, or a Guarantor or Partner,
whether by the filing of a petition or otherwise, seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any present or future applicable federal, state or other law, such
proceeding shall not have been dismissed or if, within thirty (30) days after
the appointment of any trustee, receiver or liquidator of Tenant, any affiliate
of Tenant, or any Guarantor or Partner, or of all or any part of the property
of Tenant, any affiliate of Tenant, or of any Guarantor or Partner, without the
acquiescence of such individual or entity, such appointment shall not have been
vacated or otherwise discharged, or if any execution or attachment shall have
been issued against the property of Tenant, any affiliate of Tenant, or of any
Guarantor or Partner, pursuant to which the Premises shall be taken or occupied
or attempted to be taken or occupied.
(6) If Tenant fails to take possession of the Premises on the Lease
Commencement Date or vacates, abandons or ceases to carry on its ordinary
activities in the Premises prior to the Lease Expiration Date, with or without
an intention of paying Rent.
B. Remedies Upon Default: Upon the occurrence of a Default, Landlord
shall have the right, then or at any time thereafter:
(1) Without demand or notice, to reenter and take possession of all
or any part of the Premises, to expel Tenant and those claiming through Tenant
and to remove any property therein, either by summary proceedings or by any
other action at law, in equity or otherwise, with or without terminating this
Lease, without being deemed guilty of trespass and without prejudice to
any other remedies of Landlord for breach of this Lease, and/or
(2) To give Tenant written notice of Landlord's intent to terminate
this Lease, and on the date specified in Landlord's
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notice, Tenant's right to possession of the Premises shall cease and this Lease
shall terminate.
If Landlord elects to terminate this Lease, everything contained in
this Lease on the part of Landlord to be done shall cease, without prejudice to
Landlord's right to recover from Tenant all Rent, as set forth in Subsections C.
and D. below. If Landlord elects to reenter pursuant to Subsection B.(1) above,
Landlord may terminate this Lease, or, from time to time without terminating
this Lease, may relet all or any part of the Premises as the agent of Tenant,
for such term, at such rental and upon such other provisions as Landlord deems
acceptable, with the right to make any alterations and repairs to the Premises
that Landlord deems appropriate, at Tenant's expense. No such reentry or taking
of possession of the Premises shall be construed as an election to terminate
this Lease, unless notice of such intention is given pursuant to Subsection B(2)
above, or unless termination is decreed by a court of competent jurisdiction at
the instance of Landlord. Landlord shall in no event be under any obligation to
relet any part of the Premises.
C. Liability of Tenant: If Landlord terminates this Lease or reenters
the Premises (with or without terminating this Lease), Tenant shall remain
liable (in addition to all other liabilities of Tenant accrued at the time of
the Default) for the sum of (i) any unpaid Rent accrued prior to the time of
termination and/or reentry, as the case may be, plus interest thereon from the
due date at the Default Rate, (ii) all Base Rent and Additional Rent provided
for in this Lease from the time of termination and/or reentry, as the case may
be, until the date this Lease would have expired had a Default not occurred,
plus interest thereon from the due date at the Default Rate, (iii) any and all
expenses (including but not limited to attorneys' and brokerage fees) incurred
by Landlord in reentering and repossessing the Premises, in correcting any
default, in painting, altering or repairing the Premises in order to place the
Premises in first-class rentable condition (whether or not the Premises are
relet), in protecting and preserving the Premises and in reletting or attempting
to relet the Premises, and (iv) any other amounts necessary to compensate
Landlord for any other injury or detriment caused by the Default, minus the net
proceeds (after deducting any rental abatements, tenant improvement allowances
and other concessions and inducements) actually received by Landlord, if any,
from any reletting to the extent attributable to the period prior to the date
this Lease would have expired had a Default not occurred, Landlord shall have
the option to recover any damages sustained by Landlord either at the time of
reletting, if any, or in separate actions from time to time as said damages
shall have been made more easily ascertainable by successive relettings or, at
Landlord's option, to defer any such recovery until the date this Lease would
have expired in the absence of a Default, in which event Tenant hereby agrees
that the cause of action shall be deemed to have accrued on the aforesaid date.
The provisions of this Section shall be in addition to, and shall not prevent
the enforcement of, any claim Landlord may have for anticipatory breach of this
Lease.
D. Liquidated Damages: In addition to Landlord's rights pursuant to
Subsection C. above, if Landlord terminates this Lease, Landlord shall have the
right at any time, at its sole option, to require Tenant to pay to Landlord on
demand, as liquidated damages, the sum of (i) the total of the Base Rent,
Additional Rent and all other sums which would have been payable under this
Lease from the date of Landlord's demand for liquidated damages ("Landlord's
Demand") until the date this Lease would have terminated in the absence of the
Default, discounted to present value at the rate of five percent (5%) per annum
(the "Discount Rate"), (ii) all unpaid Rent accrued prior to the time of
Landlord's Demand, plus interest thereon from the due date at the Default Rate,
(iii) any and all expenses (including but not limited to attorneys' and
brokerage fees) incurred by Landlord in reentering and repossessing the
Premises, in correcting any default, in painting, altering or repairing the
Premises in order to place the Premises in first-class rentable condition
(whether or not the Premises are relet), in protecting and preserving the
Premises and in reletting or attempting to relet the Premises, and (iv) any
other amounts necessary to compensate Landlord for any other injury or detriment
caused by the Default; minus the sum of (a) the net fair market rental value of
the Premises for the period referred to in Subsection D.(i) above, discounted to
present value at the Discount Rate, and (b) any sums actually paid by Tenant to
Landlord pursuant to Subsection C. above; provided, however, that if said
damages shall be limited by law to a lesser amount, Landlord shall be entitled
to recover the maximum amount permitted by law. The "net fair market rental
value" referred to in Subsection D.(a) above shall be the fair market rental
value of the Premises at the time of Landlord's Demand, reduced by any rental
abatements, tenant improvement allowances and other concessions and inducements
generally provided by landlords seeking to lease comparable commercial property
in the area of the Premises at the time of Landlord's Demand. If reletting is
accomplished within a reasonable time after Lease termination, the "net fair
market rental value" referred to in Subsection D.(a) above shall be deemed prima
facie to be the net rental income (after deducting any rental abatements, tenant
improvement allowances and other concessions and inducements) realized upon such
reletting.
E. Waiver: Tenant, on its own behalf and on behalf of all persons and
entities claiming through Tenant, including but not limited to creditors of
Tenant, hereby waives any and all rights and privileges which Tenant and such
other persons and entities might otherwise have under any present or future
law: (i) to redeem the Premises, (ii) to reenter or repossess the Premises, or
(iii) to restore the operation of this Lease, with respect to any dispossession
of Tenant by judgment or warrant of any court, any reentry by Landlord or any
expiration or termination of this Lease, whether by operation of law or pursuant
to the provisions of this Lease. Tenant hereby expressly waives receipt of a
Notice to Quit.
X. Xxxx on Personal Property: Landlord shall have a lien upon Tenant's
Personal Property and other Property brought onto
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the Premises by Tenant, as and for security for the Rent and other obligations
of Tenant herein provided. Landlord may, at any time after a Default, seize and
take possession of any and all such property. If Tenant fails to redeem the
property so seized by payment of whatever sums may be due Landlord pursuant to
this Lease, then Landlord shall have the right, after twenty (20) days written
notice to Tenant to sell such personal property at public or private sale and
upon such terms and conditions as Landlord may deem advantageous, and after the
payment of all proper charges incident to such sale, apply the proceeds thereof
to the payment of any balance due to Landlord hereunder and pay any remaining
balance to Tenant. The exercise by Landlord of the foregoing remedy shall not
discharge Tenant from any deficiency owed to Landlord, nor shall it preclude
the exercise by Landlord of any other rights and remedies. Landlord shall not
be liable to Tenant, or other owners of property seized, for damages, general
or special, if Landlord reasonably believed it was acting lawfully in seizing
property located in the Premises.
G. Right of Distress: Landlord shall, to the extent permitted by law,
have a right of distress for Rent.
H. Right of Landlord to Cure: If Tenant defaults in the making of any
payment or in the doing of any act required to be made or done by Tenant under
this Lease, then Landlord may, at its option, make such payment or do such act,
and the expenses thereof, with interest thereon at the Default Rate, from the
date paid by Landlord, shall constitute Additional Rent hereunder due and
payable by Tenant with the next payment of Monthly Base Rent.
I. Attorneys' Fees: In the event of any Default hereunder, Tenant shall
pay to Landlord all attorneys' fees incurred by Landlord in connection with
such Default or the enforcement of Landlord's rights or remedies arising in
connection therewith, whether or not this Lease is terminated and whether or
not Landlord institutes any lawsuit against Tenant as a result of such Default.
In addition to the foregoing, whether or not this Lease is terminated, Tenant
shall pay to Landlord all other costs incurred by Landlord with respect to any
lawsuit instituted or action taken by Landlord to enforce the provisions of
this Lease.
J. Survival: Tenant's liability pursuant to this Section 19 shall
survive the termination of this Lease, the institution of summary proceedings
and/or the issuance of a warrant thereunder.
20. NO WAIVER.
No act or thing done by Landlord or Landlord's agents during the Term
hereby demised shall be deemed an acceptance of a surrender of said Premises,
and no agreement to accept such surrender shall be valid unless in writing
signed by Landlord. No employee of Landlord or of Landlord's agents shall have
any power to accept the keys of said Premises prior to the termination of the
Lease. The delivery of keys to any employee of Landlord or of Landlord's agents
shall not operate as a termination of the Lease or a surrender of the Premises.
In the event of Tenant at any time desiring to have Landlord sublet the Premises
for Tenant's account, Landlord or Landlord's agents are authorized to receive
said keys for such purposes without releasing Tenant from any of the obligations
under this Lease, and Tenant hereby relieves Landlord of any liability for loss
of or damage to any of Tenant's effects in connection with such subletting. The
failure of Landlord to seek redress for violation of, or to insist upon the
strict performance of, any covenant or condition of this Lease, or any of the
Rules and Regulations set forth or hereafter adopted by Landlord, shall not
prevent a subsequent act, which would have originally constituted a violation,
from having all the force and effect of an original violation. The receipt by
Landlord of Rent with knowledge of the breach of any covenant of this Lease
shall not be deemed a waiver of such breach. The failure of Landlord to enforce
any of the Rules and Regulations set forth, or hereafter adopted, against Tenant
and/or any other tenant in the Building shall not be deemed a waiver of any such
Rules and Regulations. No provision of this Lease shall be deemed to have been
waived by Landlord, unless such waiver is in writing signed by Landlord. No
payment by Tenant or receipt by Landlord of a lesser amount than the Rent herein
stipulated shall be deemed to be other than on account of the earliest
stipulated rent, nor shall any endorsement or statement on any check or any
letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of such Rent or pursue any other remedy
in this Lease provided. This Lease contains the entire agreement between the
parties, and any executory agreement hereafter made shall be ineffective to
change, modify, discharge or effect an abandonment of it in whole or in part
unless such executory agreement is in writing and signed by the party against
whom enforcement of the change, modification, discharge or abandonment is
sought.
21. HOLDING OVER.
A. If Tenant does not immediately surrender the Premises upon the
expiration or earlier termination of the Lease, and holds over with Landlord's
express written consent, then Tenant shall become a Tenant from month to month
and it is agreed that the tenancy thus created can be terminated by either
party giving the other not less than thirty (30) days written notice to expire
on the day of the month from which the tenancy commenced to run. Tenant agrees
to pay Monthly Rent equal to the then fully escalated Base Rent, including all
Additional Rent during the holdover period and to keep and fulfill all the
other covenants, conditions and agreements herein, and in case of default in
the payment of rent or breach of any said covenants, conditions and
agreements, Tenant hereby waives Tenant's right to a notice to quit.
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B. If Tenant does not immediately surrender the Premises upon the
expiration or earlier termination of the Lease, and holds over without
Landlord's express written consent, then Tenant shall become a Tenant at
sufferance and the rent shall be increased to equal the greater of (i) fair
market rent for the Premises or (ii) double the then Base Rent, Additional
Rent, and other sums that would have been payable pursuant to this Lease if the
Lease had continued during such holdover period. In addition, Tenant shall be
liable for any and all damages sustained by Landlord as a result of Tenant's
holding over.
C. All amounts payable to Landlord during the holdover period shall be
paid on the first day of each calendar month during the holdover period until
the Premises have been vacated. Landlord's acceptance of such rent shall not in
any manner adversely affect Landlord's other rights and remedies including
Landlord's right to evict Tenant and to recover damages.
22. SUBORDINATION.
This Lease is subject and subordinate to the lien of any mortgage, or deed
of trust encumbrance or encumbrances, which may now or hereafter affect the real
property of which the Premises form a part, and to all renewals, modifications,
consolidations, replacements and extensions thereof. The only mortgage or deed
of trust currently encumbering such real property is held by Prudential Life
Insurance Company of America ("Prudential"). Landlord agrees to use reasonable
efforts to obtain a Subordination Non-Disturbance and Attornment Agreement from
Prudential within thirty (30) days of the date hereof. Within ten (10) business
days after request by Landlord, the Tenant will execute such instruments in
recordable form as may reasonably be requested by Landlord to evidence the
subordination of this Lease to any present or future mortgage or deed of trust
encumbrance affecting the Building. Notwithstanding the foregoing, the
subordination under the terms of this Section 22 to a new deed of trust or
mortgage shall be subject to the holder of record of any existing or future
mortgages or deeds of trust, entering into an agreement with Tenant, in
substance reasonably satisfactory to Tenant and the holder, by the terms of
which such holder will agree to (a) recognize the rights of Tenant under this
Lease, (b) perform Landlord's obligations hereunder arising after the date of
such holder's acquisition of title to the Property, and (c) not disturb Tenant's
possession of the Premises and to accept Tenant as tenant under the terms and
conditions of this Lease in the event of acquisition of title by such holder
through foreclosure proceedings or otherwise, and Tenant will agree to recognize
the holder of such mortgage as landlord in such event, which agreement shall be
made expressly to bind and enure to the benefit of the successors and assigns of
Tenant and of such holder, and upon anyone purchasing the Building at any
foreclosure sale.
23. ASSIGNMENT AND SUBLETTING.
A. No Transfer Without Consent: Tenant shall not, without the prior
written consent of Landlord in each instance (which consent shall not be
unreasonably withheld, conditioned or delayed in Landlord's sole discretion)
(i) assign, mortgage or otherwise encumber this Lease or any of its rights
hereunder; (ii) sublet the Premises or any part thereof or permit the occupancy
or use of the Premises or any part thereof by any persons or entities other
than Tenant; or (iii) permit the assignment of this Lease or any of Tenant's
rights hereunder by operation of law. Any attempted assignment, mortgaging or
encumbering of this Lease or any of Tenant's rights hereunder and any attempted
subletting or grant of a right to use or occupy all or a portion of the
Premises in violation of the foregoing sentence shall be void.
B. Take-Back Rights: In addition, Tenant may not assign this Lease, nor
sublet (or permit occupancy or use of) the Premises, or any part thereof,
without giving Landlord thirty (30) days prior written notice thereof of its
intention of the same. For thirty (30) days following receipt of said notice,
Landlord shall have the right, exercisable by sending notice to Tenant, to
sublet from Tenant for the balance of the Term of this Lease (i) all of the
Premises in the event Tenant notified Landlord of its desire to assign this
Lease, or (ii) so much of the Premises as Tenant intends to sublet in the event
Tenant notified Landlord of its desire to sublet the Premises or permit another
to make use thereof, at the same rental Tenant is obligated to pay to Landlord
hereunder. In the event Landlord does not exercise the aforesaid right within
said thirty (30) days, Tenant may attempt to assign, sublet or permit use of
this Lease or such space; provided that Tenant shall obtain the prior written
consent of Landlord as set forth in Subsection A. above. In the event that
Tenant defaults hereunder, Tenant hereby assigns to Landlord the Rent due from
any assignee or subtenant and hereby authorizes each such party to pay said
Rent to Landlord.
C. Transfer of Stock: If Tenant and/or any Guarantor is a corporation,
then the sale, issuance or transfer of any voting capital stock of Tenant or
any Guarantor, by the person, persons or entities owning a controlling
interest therein as of the date of this Lease, which results in a change in the
voting control of Tenant or the Guarantor, shall be deemed an assignment within
the meaning of this Section 23. If Tenant and/or any Guarantor are a
partnership, the sale or transfer of the partnership share, or any portion
thereof, of any general partner shall be deemed an assignment of this Lease.
D. Expenses and Profits; Effect of Consent:
(1) In the event Landlord permits Tenant to assign or sublet all or
a portion of the Premises to a third party, any sums that are paid by such
third party for the right to occupy the Premises, in excess of the Rent then in
effect shall be paid by Tenant to
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Landlord on a monthly basis as Additional Rent.
(2) Tenant shall be responsible for all costs and expenses, including
attorneys' fees, incurred by Landlord in connection with any proposed or
purported assignment or sublease and an administrative fee of Two Thousand Five
Hundred Dollars ($2,500.00).
(3) The consent by Landlord to any assignment or subletting shall neither
be construed as a waiver or release of Tenant from any covenant or obligation
of Tenant under this Lease, nor as relieving Tenant from giving Landlord the
aforesaid thirty (30) days notice of, or from obtaining the consent of Landlord
to, any further assignment or subletting. The collection or acceptance of Rent
from any such assignee or subtenant shall not constitute a waiver or release of
Tenant from any covenant or obligation of Tenant under this Lease, except as
expressly agreed by Landlord in writing.
24. TRANSFER BY LANDLORD.
Landlord (and any successor or affiliate of Landlord) may freely sell,
assign or transfer all or any portion of its interest in this Lease or the
Premises, the Building or the Land and, in the event of any such sale,
assignment or transfer, shall be relieved of any and all obligations under this
Lease from and after the date of the sale, assignment or transfer. From and
after said date, Tenant shall be bound to such purchaser, assignee or other
transferee, as the case may be, as though the latter had been the original
Landlord hereunder, provided that the purchaser, assignee or transferee agrees
to assume the obligations of Landlord hereunder.
25. INABILITY TO PERFORM.
This Lease and Tenant's obligation hereunder shall in no way be affected,
impaired, or excused, nor shall Tenant have any claim against Landlord for
damages, because Landlord, due to Unavoidable Delays, is unable to fulfill any
of its obligations under this Lease, including, but not limited to, any
obligations to provide any services, repairs, replacements, alterations or
decorations or to supply any improvements, equipment or fixtures.
26. ESTOPPEL CERTIFICATES.
Tenant shall, without charge, within five (5) days after receipt of any
request therefor, execute and deliver to Landlord a certificate stating: (i)
whether this Lease is unmodified and in full force and effect (or if there have
been modifications, that the Lease is in full force and effect and setting
forth all such modification); (ii) whether there then exist any defenses
against the enforcement of any right of Landlord hereunder (and, if so,
specifying the same in detail); (iii) the dates to which rent and any other
charges hereunder have been paid by Tenant; (iv) that Tenant has no knowledge
of any then uncured defaults under this Lease (or, if Tenant has knowledge of
any such defaults, specifying the same in detail); (v) that Tenant has no
knowledge of any event that will or may result in the termination of this Lease
(or if Tenant has such knowledge, specifying the same in detail); (vi) the
address to which notices to Tenant are to be sent; and (vii) such other
information as may be reasonably requested. It is understood that any such
certificate may be relied upon by Landlord, any Mortgagee, prospective
Mortgagee, Ground Lessor, prospective Ground Lessor, or purchaser or
prospective purchaser of the Land or the Building.
27. COVENANT OF QUIET ENJOYMENT.
Landlord covenants that it has the right to make this Lease and that, if
Tenant shall pay all Rent and perform all of Tenant's other obligations under
this Lease, Tenant shall have the right, during the Term and subject to the
provisions of this Lease, to quietly occupy and enjoy the Premises without
hindrance by Landlord or its successors and assigns.
28. WAIVER OF JURY TRIAL.
It is mutually agreed by and between Landlord and Tenant freely and
knowingly, and with the advice of counsel that the respective parties hereto
shall and they hereby do waive trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other on any
matters whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant's use or occupancy of said
Premises and/or any claim of injury or damage, and any emergency statutory or
any other statutory remedy. It is further mutually agreed that in the event
Landlord commences any summary proceeding for non-payment of Rent, Tenant will
not interpose any counterclaim of whatever nature or description in any such
proceeding.
29. BROKERS.
Landlord and Tenant each represents and warrants to the other that, except
as hereinafter set forth, neither of them has employed any broker in procuring
or carrying on any negotiations relating to this Lease. Landlord and Tenant
shall indemnify and
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hold each other harmless from any loss, claim or damage relating to the breach
of the foregoing representation and warranty. Landlord recognizes only CB
Xxxxxxx Xxxxx and Insignia/ESG, Inc. as broker(s) with respect to this Lease and
agrees to be responsible for the payment of any leasing commissions owed to said
broker(s).
30. CERTAIN RIGHTS RESERVED BY LANDLORD.
Landlord shall have the following rights, exercisable without notice,
without liability for damage or injury to property, person or business and
without effecting an eviction, constructive or actual, or disturbance of
Tenant's use or possession of the Premises or giving rise to any claim for
set-off, abatement of Rent or otherwise:
A. To change the Building's name or street address.
B. To affix, maintain and remove any and all signs on the exterior and
interior of the Building.
C. To designate and approve, prior to installation, all window shades,
blinds, drapes, awnings, window ventilators, lighting and other similar
equipment to be installed by Tenant that may be visible from the exterior of the
Premises or the Building.
D. To decorate and make repairs, alterations, additions and improvements,
whether structural or otherwise, in, to and about the Building and any part
thereof, and for such purposes to enter the Premises, and, during the
continuance of any such work, to close temporarily doors, entry ways, Common
Areas in the Building and to interrupt or temporarily suspend Building services
and facilities, all without affecting Tenant's obligations hereunder, as long as
the Premises remain tenantable.
E. To grant to anyone the exclusive right to conduct any business or
render any service in the Building, provided Tenant is not thereby excluded from
uses expressly permitted herein.
F. To alter, relocate, reconfigure and reduce the Common Areas of the
Building, as long as the Premises remain reasonably accessible.
G. To alter, relocate, reconfigure, reduce and withdraw the Common Areas
located outside the Building, including parking and access roads, as long as the
Premises remain reasonably accessible.
H. To erect, use and maintain pipes and conduits in and through the
Premises.
31. NOTICES.
No notice, request, approval, waiver or other communication which may be or
is required or permitted to be given under this Lease shall be effective unless
the same is in writing and hand-delivered, sent by registered or certified mail,
return receipt requested, first-class postage prepaid, or sent postage prepaid
by a reputable overnight courier service that provides written notice of
delivery, addressed as follows:
IF TO LANDLORD:
c/o Westfield Realty, Inc.
0000 Xxxxxx Xxxxxxxxx
Xxxxx 000
Xxxxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxx
IF TO TENANT:
Prior to the Lease Commencement Date: After the Lease Commencement Date:
Attn: _______________________________ Attn: ____________________________
or at any other address of which either party shall notify the other in
accordance with this Section. Such communications, if hand-delivered or sent by
overnight courier shall be deemed to have been given upon delivery, whether or
not accepted, or registered or certified mail, shall be deemed to have been
given two (2) days after the date of mailing. If any Mortgagee shall notify
Tenant that it is the holder of a Mortgage affecting the Premises, no notice,
request or demand thereafter sent by Tenant to Landlord shall be effective until
a copy of same shall be sent to such Mortgagee in the manner prescribed in this
Section at such address as such Mortgagee shall designate.
32. MISCELLANEOUS PROVISIONS.
A. Benefit and Burden: The provisions of this Lease shall be binding
upon, and shall inure to the benefit of, the parties hereto and each of their
respective successors and permitted assigns.
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B. Governing Law: This Lease shall be construed and enforced in accordance
with the laws of the jurisdiction in which the Building is located.
C. No Partnership: Nothing contained in this Lease shall be deemed to
create a partnership or joint venture between Landlord and Tenant, or to create
any other relationship between the parties other than that of Landlord and
Tenant.
D. Delegation by Landlord: Wherever Landlord has the authority to take any
action under this Lease, Landlord shall have the right to delegate such
authority to others, and Landlord shall be responsible for the authorized
actions of such agents, employees and others, to the same extent as if Landlord
had taken such action itself.
E. Tenant Responsibility for Agents: In any case where Tenant is
responsible for performing or refraining from an act or for preventing an
action or result from occurring, Tenant shall also be responsible for any
actions taken or omitted by Tenant's agents, employees, business or other
invitees, licensees, contractors, subtenants, family members, guests and any
other individuals or entities present in the Building or on the Land at
Tenant's invitation or as a result of Tenant's occupancy of the Premises.
F. Invalidity of Particular Provisions: If any provision of this Lease or
the application thereof to any person, entity or circumstance shall, to any
extent, be held invalid or unenforceable, the remaining provisions and the
application of such invalid or unenforceable provisions to persons, entities
and circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby. Each provision of this Lease
shall be valid and enforced to the fullest extent permitted by law.
G. Counterparts: This Lease may be executed in several counterparts, all
of which shall constitute one and the same document.
H. Entire Agreement: This Lease, and any exhibits and addenda attached
hereto, embody the entire agreement of the parties hereto, and no
representations, inducements or agreements, oral or otherwise, between the
parties not contained in this Lease or in the exhibits or addenda shall be of
any force or effect. No rights, privileges, easements or licenses are granted to
Tenant hereby, except as expressly set forth herein.
I. Amendments: This Lease may not be modified in whole or in part in any
manner other than by an agreement in writing.
J. Mortgagee's Performance: Tenant shall accept performance of any of
Landlord's obligations hereunder by any Mortgagee.
K. Limitation on Interest: In any case where this Lease provides for a
rate of interest that is higher than the maximum rate permitted by law, the
rate specified herein shall be deemed to equal, and the party designated as
recipient of such interest shall be entitled to receive, the maximum rate of
interest permitted by law.
L. Remedies Cumulative: All rights and remedies of Landlord shall be
cumulative and shall not be exclusive of any other rights or remedies of
Landlord hereunder or now or hereafter existing at law or in equity.
M. Annual Financial Statements: Not later than ninety (90) days after the
end of each of Tenant's financial reporting year during the Term, Tenant shall
submit to Landlord a financial statement covering the preceding Fiscal Year,
which has been prepared in accordance with generally accepted accounting
principles and which has been certified by an independent certified public
accountant to be complete and accurate.
33. LENDER APPROVAL.
If the Mortgagee fails to give its consent to this Lease, Landlord shall
have the right, at its sole option, to terminate and cancel this Lease. Such
option shall be exercisable by Landlord by written notice to Tenant of such
termination, whereupon this Lease shall be deemed canceled and terminated, and
both Landlord and Tenant shall be relieved of any and all liabilities and
obligations hereunder.
34. PARKING.
Landlord agrees that it will provide Tenant with the right to purchase up
to one hundred seventeen (117) unreserved parking permits in the garage of the
Building or as otherwise provided ("Parking Permits"). For each month during
the Term, Tenant shall pay, as Additional Rent for the use of such Parking
Permits, an amount equal to the then current monthly rate for the Parking
Permits which is currently One Hundred Thirty Four Dollars ($134.00) per month
per unreserved permit. Throughout the Term, Landlord reserves the right to
allocate up to 33% of the Parking Permits to the 0000 Xxxxxx Xxxxxxxxx garage
which is operated by Westfield Realty, Inc. No specific parking spaces will be
allocated for use by Tenant. Landlord reserves the right to institute either a
valet or self-parking system; provided, however, that if at any time during the
Term of the Lease Landlord provides to Tenant any additional spaces, Landlord
shall at all times have the right to reclaim such spaces upon thirty (30) days
notice to Tenant.
Tenant and its employees, agents and invitees shall observe reasonable
safety precautions in the use of the garage and shall at all times abide by all
rules and regulations promulgated by Landlord and/or the garage operator
governing use of the garage. Landlord does not assume any responsibility for,
and shall not be held liable for, any damage or loss to any automobiles parked
in the garage or to any personal property located therein, or for any injury
sustained by any person in or about the garage.
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35. SECURITY DEPOSIT
A. Amount and Uses: Landlord requires and Tenant agrees to deposit with
Landlord an amount equal to THREE MILLION FOUR HUNDRED FORTY SIX FOUR HUNDRED
FORTY ONE DOLLARS ($3,446,440.00) which shall be held by Landlord as security
throughout the Term for the payment of all Rent payable by Tenant and for the
faithful performance by Tenant of all other obligations of Tenant under this
Lease ("Security Deposit"). Landlord acknowledges receipt from Tenant of SEVEN
HUNDRED FIFTY FIVE THOUSAND NINE HUNDRED TWENTY FOUR DOLLARS ($755,924.00), as
the first (1st) installment of the Security Deposit required herein. The second
(2nd) installment of the Security Deposit shall be deposited by Tenant with
Landlord in an amount equal to ONE HUNDRED SEVENTY THOUSAND NINE HUNDRED EIGHTY
SIX DOLLARS AND SIXTY-SEVEN CENTS ($170,986.67) on or before February 1, 2001.
The third (3rd) installment of the Security Deposit shall be deposited by Tenant
with Landlord in an amount equal to FIVE HUNDRED EIGHTY FOUR THOUSAND NINE
HUNDRED THIRTY SEVEN DOLLARS AND THIRTY-THREE CENTS ($584,937.33) on or before
May 1, 2001. The last installment of the Security Deposit shall be deposited by
Tenant with Landlord in an amount equal to ONE MILLION NINE HUNDRED THIRTY FOUR
THOUSAND FIVE HUNDRED NINETY TWO DOLLARS ($1,934,592.00) on or before November
1, 2001. In the event Tenant fails to deposit any amount of the Security Deposit
on the dates required in this Section, then Landlord shall have the option to
automatically terminate this Lease and Tenant shall have no right to cure such
failure any amount of the Security Deposit previously deposited by Tenant shall
automatically become the property of Landlord. Landlord shall not be required to
maintain the Security Deposit in a separate account. The Security Deposit shall
not be mortgaged, assigned, transferred or encumbered by Tenant without the
prior written consent of Landlord, and any such act, without such consent, shall
be void. Landlord may, at Landlord's option, appropriate and apply the entire
Security Deposit, or so much thereof as Landlord believes may be necessary, to
compensate Landlord for the payment of any past-due Rent and for loss or damage
sustained by Landlord due to any Default. In the event Landlord appropriates or
applies the Security Deposit in such a manner, Tenant, within five (5) days
after notice thereof, shall pay to Landlord an amount sufficient to restore the
Security Deposit to the then required amount to be deposited. Tenant's failure
to restore any such deficiency shall constitute a Default hereunder. In the
event of bankruptcy or other debtor-creditor proceedings by or against Tenant,
the Security Deposit shall be applied first to the payment of Rent due Landlord
for all periods prior to the filing of such proceedings. In lieu of the cash
Security Deposit hereinabove provided for, Tenant shall have the option to
deposit with Landlord a letter of credit (the "Letter of Credit") in an amount
equal to the Security Deposit, which Letter of Credit shall thereupon constitute
the Security Deposit. The Letter of Credit shall be maintained throughout the
remainder of the Term [and the Renewal Period (as hereinafter defined), if any].
Any Letter of Credit delivered to Landlord by Tenant shall be an unconditional,
irrevocable letter of credit in a form and from a financial institution located
in the Washington, D.C. metropolitan area and acceptable to Landlord in its sole
discretion. Said Letter of Credit shall provide that it shall expire on the
sixtieth (60th) day following the date of expiration of the Term of this Lease[,
as the same may be extended pursuant to Section 35 hereof]. At Tenant's option,
said Letter of Credit shall have a term equal to the period expiring on the
first anniversary of the date of issuance thereof, in which event Tenant
covenants that a renewal of said Letter of Credit shall be delivered to Landlord
by that date which is thirty (30) days prior to the expiration date thereof, and
thereafter a renewal of the Letter of Credit shall be delivered to Landlord by
Tenant by that date which is thirty (30) days prior to each succeeding
anniversary of the original expiration date of the Letter of Credit. If Tenant
fails to so renew and deliver said Letter of Credit to Landlord by the thirtieth
(30th) day preceding each said expiration date, such failure shall constitute a
Default hereunder (as to which no cure period shall be applicable) and Landlord
may draw upon the Letter of Credit then in effect without the necessity of any
other monetary or other default hereunder by Tenant, in which event the proceeds
thereof shall be held by Landlord. Said Letter of Credit shall provide that
Landlord shall be permitted to draw on same on multiple occasions following the
occurrence of a Default by Tenant under this Lease; provided, however, that in
the event that said Letter of Credit would expire during the pendency of any
litigation to resolve whether such Default has occurred, Landlord may draw upon
said Letter of Credit prior to the expiration thereof. In the event that
Landlord draws upon the Letter of Credit after a Default by Tenant as aforesaid,
Landlord shall use, apply or retain all or any portion of the proceeds thereof
for (i) the payment of any Rent or any other sums as to which Tenant is in
default, (ii) the payment of any amount which Landlord may spend or become
obligated to spend to repair damage to the Premises or the Building for which
repairs Tenant is liable hereunder, or (iii) compensation to Landlord for any
losses which Landlord is entitled to recover hereunder by reason of Tenant's
Default, including, but not limited to, any damage or deficiency arising in
connection with the reletting of the Premises and all associated reasonable
legal fees. In the event that the Letter of Credit is drawn upon by Landlord for
failure of Tenant to renew said Letter of Credit as aforesaid, the proceeds
thereof shall be held by Landlord in accordance with the provisions respecting
the Security Deposit under this Section 35, and, in such event, within sixty
(60) days after the expiration of the Term, and provided Tenant has vacated the
Premises as required under the terms of this Lease and is not in default
hereunder, Landlord shall return such proceeds to Tenant, less such portion
thereof as Landlord may be entitled hereunder to apply to satisfy any
obligations to Landlord by Tenant hereunder. In the event that Tenant is in
default upon the expiration of the Term and Landlord does not use all of the
Security Deposit to cure such default, then, after such default has been cured,
Landlord shall return any
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unused balance of the Security Deposit to Tenant. The use, application or
retention of the proceeds of the Letter of Credit portion thereof, by Landlord
shall not prevent Landlord from exercising any other right or remedy provided by
this Lease or and shall not limit any recovery to which Landlord may otherwise
be entitled. In the event of the sale or transfer of Landlord's ???? in the
Building or the Land, Landlord shall transfer the proceeds of the Letter of
Credit to the purchaser or transferee, in which ????? Tenant shall look only to
the purchaser or transferee for the return of the proceeds of the Letter of
Credit, and Landlord shall be released from all liability to Tenant for the
return of such proceeds.
B. Reduction of Security Deposit: So long as Tenant is not in default of
the Lease and has not been repeatedly in default throughout the Term, the
Security Deposit may be reduced based upon one (1) of the following scenarios:
(1) Commencing January 1, 2005 and each January 1 thereafter, the
Security Deposit shall be reduced by $492,348.71 per annum except that in the
final Lease Year, $170,986.67 shall be held by Landlord until the end of the
Term.
(2) However, if on January 1, 2005 Tenant is able to provide Landlord
with audited financial statements demonstrating, in Landlord's reasonable
opinion, Tenant's profitability for four (4) consecutive quarters immediately
prior to January 1, 2005, then the Security Deposit shall be reduced by
$861,610.25 per annum starting January 1, 2005 and each January 1 thereafter
until the Security Deposit is reduced to $170,986.67 which amount shall be held
by Landlord until the end of the Term.
C. Transferability: In the event of a sale or transfer of Landlord's
interest in the Building or of the interest of any successor or assign of
Landlord, Landlord (or such successor or assign) shall transfer the Security
Deposit to any vendee or transferee and shall thereupon be released
automatically from any liability therefor. Tenant shall look solely to the
transferee for the return of the Security Deposit. No Mortgagee or purchaser of
any or all of the Building at any foreclosure proceeding shall (regardless of
whether the Lease is at the time subordinated to the lien of said Mortgage) be
liable to Tenant or any other person for any of such Security Deposit, or any
other payment made by Tenant hereunder, unless Landlord has actually delivered
said deposit or other such sum to such Mortgagee or purchaser. In the event of
any rightful and permitted assignment of Tenant's interest in this Lease, the
Security Deposit shall be deemed to be held by Landlord as a deposit made by the
assignee, and Landlord shall have no liability to the assignor with respect to
the return of the Security Deposit.
D. Any Security Deposit held by Landlord shall be repaid to Tenant after
the termination of this Lease (or, if the lease is renewed, then after the
termination of any renewal thereof), provided Tenant shall have made all such
payments and performed all such obligations hereunder.
36. HAZARDOUS MATERIALS
A. Definition. As used in this Lease, the term "Hazardous Material" means
any flammable items, explosives, radioactive materials, hazardous or toxic
substances, material or waste or related materials, including any substances
defined as or included in the definition of "hazardous substances", "hazardous
wastes", "infectious wastes", "hazardous materials" or "toxic substances" now or
subsequently regulated under any federal, state or local laws, regulations or
ordinances including, without limitation, oil, petroleum-based products, paints,
solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia
compounds and other chemical products, asbestos, PCBs and similar compounds, and
including any different products and materials which are subsequently found to
have adverse effects on the environment or the health and safety of persons.
B. General Prohibition. Tenant shall not cause or permit any Hazardous
Material to be generated, produced, brought upon, used, stored, treated,
discharged, released, spilled or disposed of on, in under or about the Premises,
the Building, or the Land (hereinafter referred to collectively as the
"Property") by Tenant, its affiliates, agents, employees, contractors,
subtenants, assignees or invitees. Tenant shall indemnify, defend and hold
Landlord harmless from and against any and all actions (including, without
limitation, remedial or enforcement actions of any kind, administrative or
judicial proceedings, and orders or judgments arising out of or resulting
therefrom), costs, claims, damages (including without limitation, attorneys',
consultants', and experts' fees, court costs and amount paid in settlement of
any claims or actions), fines, forfeitures or other civil, administrative or
criminal penalties, injunctive or other relief (whether or not based upon
personal injury, property damage, or contamination of, or adverse effects upon,
the environment, water tables or natural resources), liabilities or losses
arising from a breach of this prohibition by Tenant, its affiliates, agents,
employees, contractors, subtenants, assignees or invitees.
C. Notice. In the event that Hazardous Materials are discovered upon, in,
or under the Property, and any governmental agency or entity having jurisdiction
over the Property requires the removal of such Hazardous Materials, Tenant shall
be responsible for removing those Hazardous Materials arising out of or related
to the use or occupancy of the Property by Tenant or its affiliates, agents,
employees, contractors, subtenants, assignees or invitees but not those of its
predecessors. Notwithstanding the foregoing, Tenant shall not take any remedial
action in or about the Property or any portion thereof without first notifying
Landlord of Tenant's intention to do so and affording Landlord the opportunity
to protect Landlord's interest with respect thereto. Tenant immediately shall
notify Landlord in writing of: (i) any spill, release, discharge or disposal of
any Hazardous Material in, on or under the Property or any portion thereof; (ii)
any enforcement, cleanup, removal or other govennmental or regulatory action
instituted, contemplated, or threatened (if Tenant has notice thereof) pursuant
to any laws respecting Hazardous Materials; (iii) any claim made or threatened
by
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any person against Tenant or the Property or any portion thereof relating to
damage, contribution, cost recovery, compensation, loss or injury resulting
from or claimed to result from any Hazardous Materials; and (iv) any reports
made to any governmental agency or entity arising out of or in connection with
any Hazardous Materials in, on under or about or removed from the Property or
any portion thereof, including any complaints, notices, warnings, reports or
asserted violations in connection therewith. Tenant also shall supply to
Landlord as promptly as possible, and in any event within five (5) business
days after Tenant first receives or sends the same, copies of all claims,
reports, complaints, notices, warnings or asserted violations relating in any
way to the Premises, the Property or Tenant's use or occupancy thereof.
D. Survival. The respective rights and obligations of Landlord and
Tenant under this Section 36 shall survive the expiration or earlier
termination of this Lease.
37. NO RECORDATION.
Tenant shall not record or attempt to record this Lease or any memorandum
hereof in any public records without the prior written approval of Landlord,
which may be denied in Landlord's sole and absolute discretion. In the event
that Landlord grants its approval to record this Lease or a memorandum hereof,
Tenant shall pay all recordation fees, taxes and charges in connection with
such recordation.
38. RENEWAL.
So long as Tenant is not in Default of the Lease and be continuing
hereunder and Landlord has not sent more than three (3) notices of failure to
pay Rent or otherwise complied with the terms of this Lease throughout the Term,
Tenant shall have the right, upon FOURTEEN (14) MONTHS prior written notice, to
renew the Term of the Lease for the entire Premises for ONE (1), FIVE (5) YEAR
PERIOD. The Base Rent for the renewal period shall be negotiated in good faith
between both parties to the then current market rent and terms. In the event
Landlord and Tenant have not executed a binding agreement incorporating terms
and conditions of the renewal period within sixty (60) days from the date on
which Landlord received notice from Tenant of Tenant's desire to renew, then
Landlord shall be free to lease the Premises to a third party.
39. RIGHT OF OFFER.
A. After the initial leasing of the twenty-first (21st) and twenty-fifth
(25th) floors to third parties and so long as Tenant is not in Default of the
Lease and Landlord has not sent more than three (3) notices of failure to pay
Rent or otherwise complied with the terms of this Lease throughout the Term and
subject to the existing rights of other tenant's in the Building. Tenant shall
have the right to negotiate to lease the entire twenty-first (21st) floor and
the entire twenty-fifth (25th) floor in the Building. After the initial leasing
of the entire twenty-first (21st) and twenty-fifth (25th) floors to third
parties, Landlord shall give Tenant written notice that the space shall become
available and Tenant shall have the option, which it may exercise by written
notice to Landlord within fifteen (15) days after the date of Tenant's receipt
of such notice, to lease the entire space then being offered. Said suite shall
be offered to Tenant at the then current market rate and terms for a term to
expire at the end of Tenant's Term or extension option as the case may be.
Provided, however, on the first (1st) day of the fourteenth (14th) month prior
to the end of the Term, the rights under this Section 39 shall terminate if
Tenant has not exercised its renewal option.
B. Landlord and Tenant shall negotiate in good faith the terms of Tenant
leasing additional space under this Section 39 to the then market rate and
terms for factoring in the duration of the remaining Term of the Lease. Unless
Landlord and Tenant reach an agreement with respect to said rental terms within
fifteen (15) days after the date of Landlord's receipt of Tenant's notice to
lease said suite, then Landlord is free to lease said suite to a third party.
40. FEES AND EXPENSES.
If Tenant shall default in the observance or performance of any term or
covenant on Tenant's part to be observed or performed under or by virtue of any
of the terms of this Lease. Landlord may immediately or at any time thereafter
and without notice perform the same for the account of Tenant, and if Landlord
makes any expenditures or incurs any obligations for payment of money in
connection therewith including, but not limited to, attorneys' fees in
instituting, prosecuting or defending any action or proceeding, such reasonable
sums paid or obligations incurred with interest and costs shall be deemed to be
Additional Rent hereunder.
41. NO REPRESENTATIONS BY LANDLORD.
Landlord or Landlord's agents have made no representatives or promises
with respect to the said Building, upon which it is erected or the Premises
except as herein expressly set forth and no rights, easements or licenses are
acquired by Tenant by implication or otherwise except as expressly set forth in
this Lease. The taking possession of the Premises by Tenant shall be
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conclusive evidence, as against Tenant, that Tenant accepts same "as is" and
that said Premises and the Building were in good and satisfactory condition at
the time such possession was so taken.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease under
seal as of the day and year first above written.
WITNESS: LANDLORD: TWIN TOWERS II ASSOCIATES
LIMITED PARTNERSHIP
By:
------------------------------- -----------------------------------
WITNESS/ATTEST: TENANT: YELLOWBRIX, INC.
By:
------------------------------- -----------------------------------
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AGREEMENT OF LEASE
FOR
OFFICE SPACE
TABLE OF CONTENTS
ARTICLE PAGE
1. DEFINITIONS............................................................. 1
2. TERM.................................................................... 2
3. TENANT IMPROVEMENTS..................................................... 3
4. RENT.................................................................... 3
5. ADDITIONAL RENT......................................................... 4
6. USE..................................................................... 5
7. CARE OF PREMISES........................................................ 5
8. ALTERATIONS BY TENANT................................................... 5
9. EQUIPMENT............................................................... 6
10. OWNERSHIP AND REMOVAL OF PROPERTY....................................... 6
11. LANDLORD'S ACCESS TO PREMISES........................................... 6
12. SERVICES AND UTILITIES.................................................. 7
13. RULES AND REGULATIONS................................................... 7
14. REPAIRS AND MAINTENANCE................................................. 8
15. LIMITATION ON LANDLORD LIABILITY........................................ 8
16. FIRE AND OTHER CASUALTY................................................. 8
17. TENANT INSURANCE........................................................ 8
18. CONDEMNATION............................................................ 9
19. DEFAULT................................................................ 10
20. NO WAIVER.............................................................. 12
21. HOLDING OVER........................................................... 12
22. SUBORDINATION.......................................................... 12
23. ASSIGNMENT AND SUBLETTING.............................................. 13
24. TRANSFER BY LANDLORD................................................... 13
25. INABILITY TO PERFORM................................................... 13
26. ESTOPPEL CERTIFICATES.................................................. 14
27. COVENANT OF QUIET ENJOYMENT............................................ 14
28. WAIVER OR JURY TRIAL................................................... 14
29. BROKERS................................................................ 14
30. CERTAIN RIGHTS RESERVED BY LANDLORD.................................... 14
31. NOTICES................................................................ 15
32. MISCELLANEOUS PROVISIONS............................................... 15
A. Benefit and Burden............................................... 15
B. Governing Law.................................................... 15
C. No Partnership................................................... 15
D. Delegation by Landlord........................................... 15
E. Tenant Responsibility for Agents................................. 15
F. Invalidity of Particular Provisions.............................. 15
G. Counterparts..................................................... 15
H. Entire Agreement................................................. 15
I. Amendments....................................................... 15
J. Mortgagee's Performance.......................................... 15
K. Limitation on Interest........................................... 15
L. Remedies Cumulative.............................................. 16
M. Annual Financial Statements...................................... 16
33. LENDER APPROVAL........................................................ 16
34. PARKING................................................................ 16
35. SECURITY DEPOSIT....................................................... 16
36. HAZARDOUS MATERIALS.................................................... 16
37. NO RECORDATION......................................................... 17
38. RENEWAL................................................................ 17
39. FIRST RIGHT TO NEGOTIATE............................................... 17
40. FEES AND EXPENSES...................................................... 19
41. NO REPRESENTATION BY LANDLORD.......................................... 19
SIGNATURES............................................................. 19
Exhibit A - Premises Plan
Exhibit B - Declaration of Acceptance
Exhibit C - Air-Conditioned Shell
Exhibit D - Rules and Regulations
Exhibit E - Method of Measurement
Exhibit F - Specifications for Office Cleaning
