811 ▇▇▇▇▇▇
OFFICE LEASE
BETWEEN
▇▇▇▇▇ ▇. ▇▇▇▇▇
AND
UNISON SOFTWARE TEXAS, INC.
DATED MAY 31, 1997
TABLE OF CONTENTS
Article 1 Premises and Term 1
Article 2 Base Rent 1
Article 3 Additional Rent 1
Article 4 Commencement of Term 3
Article 5 Condition of Premises 3
Article 6 Use and Rules 4
Article 7 Services and Utilities 4
Article 8 Alterations and Liens 5
Article 9 Repairs 6
Article 10 Casualty Damage 7
Article 11 Insurance, Subrogation, and Waiver of Claims 8
Article 12 Condemnation 9
Article 13 Return of Possession 9
Article 14 Holding Over 10
Article 15 No Waiver 10
Article 16 Attorneys' Fees 10
Article 17 Personal Property Taxes, Rent Taxes and Other Taxes 10
Article 18 Reasonable Approvals 11
Article 19 Subordination, Attornment and Mortgagee Protection 11
Article 20 Estoppel Certificate 11
Article 21 Assignment and Subletting 12
Article 22 Rights Reserved by Landlord 14
Article 23 Landlord's Remedies 15
Article 24 Landlord's Default 17
Article 25 Captions, Definitions and Severability 17
Article 26 Conveyance by Landlord and Liability 20
Article 27 Indemnification 21
Article 28 Safety and Security Devices, Services and Programs 21
Article 29 Communications and Computer Lines 21
i
Article 30 Hazardous Materials 22
Article 31 Miscellaneous 23
Article 32 Right to Relocate 24
Article 33 Offer 24
Article 34 Notices 24
Article 35 Real Estate Brokers 25
Article 36 Security Deposit 25
Article 37 Entire Agreement 25
Certificate (If Tenant is a Corporation) 26
Exhibit A Description of Land 27
Exhibit B Floor Plan 28
Rider One Rules 29
Rider Two Base Rent 34
Rider Three Leasehold Improvements Agreement 35
Rider Four Parking Agreement 36
ii
811 ▇▇▇▇▇▇
OFFICE LEASE
THIS LEASE is made as of the 31st day of May, 1997 between ▇▇▇▇▇ ▇.
▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ #▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ ("Landlord", as
further defined in Article 25.05) and UNISON SOFTWARE TEXAS, INC., a Texas
corporation, whose address is ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ #▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇▇▇ ("Tenant" as further defined in Article 25.05).
WITNESSETH:
ARTICLE 1
PREMISES AND TERM
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
that certain space known as Suites 511 and 611 ("Premises") described or
shown on Exhibit "B" attached hereto, in the building known as ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ ("Property", as further described in
Article 25.10), subject to the provisions herein contained for general office
use.
The term ("Term") of this Lease shall commence on the 16th day of July,
1997 ("Commencement Date"), and end on the 31st day of July, 2003
("Expiration Date"), unless sooner terminated as provided herein. The
Commencement Date shall be subject to adjustment as provided in Article 4.
Landlord and Tenant agree that for purposes of this Lease the rentable area
of the Premises is 28,288 square feet.
ARTICLE 2
BASE RENT
Tenant shall pay Landlord monthly Base Rent as set forth in Rider Two in
advance on or before the first day of each calendar month during the Term,
except that Base Rent for the first full calendar month for which Base Rent
shall be due shall be paid when Tenant executes this Lease. If the Term
commences on a day other than the first day of a calendar month, or ends on a
day other than the last day of a calendar month, then the Base Rent for such
month shall be prorated on the basis of 1/30th of the monthly Base Rent for
each day of such month.
ARTICLE 3
ADDITIONAL RENT
3.01 OPERATING EXPENSES. In the event the Operating Expenses (as
defined in Article 25.08) of the Landlord upon the building of which the
Leased Premises are a part shall, in any calendar year during Tenant's
occupancy, exceed the sum of $6.75 per rentable square foot ("Expense Stop"),
Tenant agrees to pay as additional rental Tenant's pro rata share of the
excess Operating Expenses. The excess Operating Expense shall be defined as
the difference between the actual operating expenses for a given calendar
year and the Expense Stop, the difference of which shall be prorated for any
partial calendar year in which the Tenant occupies the Leased Premises and/or
vacates the Leased Premises by Lease termination. The terms "Operating
Expenses" and "Tenant's Pro Rata Share" shall have the meanings specified
therefor in Article 25.15.
3.02 MANNER OF PAYMENT. Operating Expenses shall be paid in the
following manner:
(A) Landlord may reasonably estimate in advance the amount Tenant
shall owe for Operating Expenses for any full or partial calendar year of the
Term. In such event, Tenant shall pay such estimated amounts, on a monthly
basis, on or before the first day of each calendar month, together with
Tenant's payment of Base Rent. Such estimate may be reasonably adjusted from
time to time by Landlord.
(B) Within 120 days after the end of each calendar year, or as soon
thereafter as practicable, Landlord shall provide a statement (the
"Statement") to Tenant showing (a) the amount of actual Operating Expenses
for such calendar year, with a listing of amounts for major categories of
Operating Expenses, (b) any amount paid by Tenant towards Operating Expenses
during such calendar year on an estimated basis, and (c) any revised estimate
of Tenant's obligations for Operating Expenses for the current calendar year.
(C) If the Statement shows that Tenant's estimated payments were
less than Tenant's actual obligations for Operating Expenses for such year,
Tenant shall pay the difference. If the Statement shows an increase in
Tenant's estimated payments for the current calendar year, Tenant shall pay
the difference between the new and former estimates, for the period from
January 1 of the current calendar year through the month in which the
Statement is sent. Tenant shall make such payments within thirty (30) days
after Landlord sends the Statement.
(D) If the Statement shows that Tenant's estimated payments
exceeded Tenant's actual obligations for Operating Expenses, Tenant shall
receive a credit for the difference against payments of Rent (as defined in
Article 25.11) next due. If the Term shall have expired and no further Rent
shall be due, Tenant shall receive a refund of such difference, within thirty
(30) days after Landlord sends the Statement.
(E) So long as Tenant's obligations hereunder are not materially
adversely affected thereby, Landlord reserves the right to reasonably change,
from time to time, the manner or timing of the foregoing payments. No delay
by Landlord in providing the Statement shall be deemed a default by Landlord
or a waiver of Landlord's right to require payment of Tenant's obligations
for actual or estimated Operating Expenses. In no event shall a decrease in
Operating Expenses below the Expense Stop ever decrease the monthly Base
Rent, or give rise to a credit in favor of Tenant.
3.03 PRORATION. If the Term commences other than on January 1, or ends
other than on December 31, Tenant's obligations to pay estimated and actual
amounts toward Operating Expenses for such first or final calendar years
shall be prorated to reflect the portion of such years included in the Term.
Such proration shall be made by multiplying the total estimated or actual (as
the case may be) Operating Expenses for such calendar year by a fraction, the
numerator of which shall be the number of days of the Term during such
calendar year, and the denominator of which shall be 365.
3.04 LANDLORD'S RECORDS. Landlord shall maintain records respecting
Operating Expenses and determine the same in accordance with generally
accepted accounting and management practices, consistently applied. Although
this Lease contemplates the computation of Operating Expenses on a cash
basis, Landlord shall make reasonable and appropriate accrual adjustments to
ensure that each calendar year includes substantially the same recurring
items. Landlord reserves the right to change to a full accrual system of
accounting so long as the same is consistently applied and Tenant's
obligations are not materially adversely affected. Tenant or its
representative shall have the right to examine such records upon reasonable
prior notice specifying such records Tenant desires to examine, during normal
business hours at the place or places where such records are normally kept,
by sending such notice no later than forty-five (45) days following the
furnishing of the Statement. Tenant may take exception to matters included
in Operating Expenses, or Landlord's computation of Tenant's Pro Rata Share
of either, by sending notice specifying such exception and the reasons
therefor to Landlord no later than twenty (20) days after Landlord makes such
records available for examination. Such Statement shall be considered final,
except as to matters to which exception is taken after examination of
Landlord's records in the foregoing manner and within the foregoing times.
Tenant acknowledges that Landlord's ability to budget and incur expenses
depends on the finality of such Statement, and accordingly agrees that time
is of the essence of this Paragraph. If Tenant takes exception to any matter
contained in the Statement as provided herein, Landlord shall refer the
matter to an independent certified public accountant, whose certification as
to the proper amount shall be final and conclusive as between Landlord and
Tenant. Tenant shall promptly pay the cost of such certification unless such
certification determines that Tenant was overbilled by more than two percent
(2%). Pending resolution of any such exceptions in the foregoing manner,
Tenant shall continue paying Tenant's Pro Rata Share of Operating Expenses in
the amounts determined by Landlord, subject to adjustment after any such
exceptions are so resolved.
3.05 RENT AND OTHER CHARGES. Base Rent, Taxes (as defined in Article
25.13), Operating Expenses, and any other amounts which Tenant is or becomes
obligated to pay Landlord under this Lease or other agreement entered in
connection herewith, are sometimes herein referred to collectively as "Rent",
and all remedies applicable to the nonpayment of Rent shall be applicable
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Tenant Landlord
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thereto. Rent shall be paid at any office maintained by Landlord or its
agent at the Property, or at such other place as Landlord may designate.
ARTICLE 4
COMMENCEMENT OF TERM
The Commencement Date set forth in Article 1 shall be delayed and Rent
shall be abated to the extent that Landlord fails: (i) to substantially
complete any improvements to the Premises required to be performed by
Landlord under any separate agreement signed by both parties, or (ii) to
deliver possession of the Premises for any other reason, including but not
limited to holding over by prior occupants, except to the extent that Tenant,
its contractors, agents or employees in any way contribute to either such
failures. If Landlord so fails for a ninety (90) day initial grace period, or
such additional time as may be necessary due to fire or other casualty,
strikes, lockouts or other labor troubles, shortages of equipment or
materials, governmental requirements, power shortages or outages, acts or
omissions of Tenant or other Persons (as defined in Article 25.09), or other
causes beyond Landlord's reasonable control, Tenant shall have the right to
terminate this Lease by written notice to Landlord any time thereafter up
until Landlord substantially completes any such improvements and delivers the
Premises to Tenant. Any such delay in the Commencement Date shall not
subject Landlord to liability for loss or damage resulting therefrom, and
Tenant's sole recourse with respect thereto shall be the abatement of Rent
and right to terminate this Lease described above. Upon any such
termination, Landlord and Tenant shall be entirely relieved of their
obligations hereunder, and any Security Deposit (as defined in Article 35)
and Rent payments shall be returned to Tenant. If the Commencement Date is
delayed, the Expiration Date shall not be similarly extended, unless Landlord
shall so elect (in which case, the parties shall confirm the same in
writing). During any period that Tenant shall be permitted to enter the
Premises prior to the Commencement Date other than to occupy the same (e.g.,
to perform alterations or improvements), Tenant shall comply with all terms
and provisions of this Lease, except those provisions requiring the payment
of Rent. If Tenant shall be permitted to enter the Premises prior to the
Commencement Date for the purpose of occupying the same, Rent shall commence
on such date, and if Tenant shall commence occupying only a portion of the
Premises prior to the Commencement Date, Rent shall be prorated based on the
number of rentable square feet occupied by Tenant. Landlord shall permit
early entry, provided the Premises are legally available and Landlord has
completed any work required under this Lease or any separate agreement
entered in connection herewith.
ARTICLE 5
CONDITION OF PREMISES
Tenant has inspected the Premises, Property, Systems and Equipment (as
defined in Article 25.12), or has had an opportunity to do so, and agrees to
accept the same "as is" without any agreements, representations,
understandings or obligations on the part of Landlord to perform any
alterations, repairs or improvements, except as expressly provided in any
separate agreement that may be signed by the parties. Such improvements, if
applicable, are set forth in Rider Three of this Lease Agreement.
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Tenant Landlord
3
ARTICLE 6
USE AND RULES
Tenant shall use the Premises for offices and no other purpose
whatsoever, in compliance with all applicable Laws (as defined in Article
25.06), and without disturbing or interfering with any other tenant or
occupant of the Property. Tenant shall not use the Premises in any manner so
as to cause a cancellation of Landlord's insurance policies, or an increase
in the premiums thereunder. Tenant shall comply with all rules set forth in
Rider One attached hereto (the "Rules"). Landlord shall have the right to
reasonably amend such Rules and supplement the same with other reasonable
Rules (not expressly inconsistent with this Lease) relating to the Property,
or the promotion of safety, care, cleanliness or good order therein, and all
such amendments or new Rules shall be binding upon Tenant after five (5) days
notice thereof to Tenant. All Rules shall be applied on a nondiscriminatory
basis, but nothing herein shall be construed to give Tenant or any other
Person any claim, demand or cause of action against Landlord arising out of
the violation of such Rules by any other tenant, occupant, or visitor of the
Property, or out of the enforcement or waiver of the Rules by Landlord in any
particular instance.
ARTICLE 7
SERVICES AND UTILITIES
Landlord shall provide the following services and utilities (the cost of
which shall be included in Operating Expenses unless otherwise stated herein
or in any separate rider hereto):
(A) Electricity for standard office lighting fixtures, and
equipment and accessories customary for offices (up to 280 hours per month)
where: (1) the connected electrical load of all of the same does not exceed
an average of 4 ▇▇▇▇▇ per square foot of the Premises (or such lesser amount
as may be available, based on the safe and lawful capacity of the existing
electrical circuit(s) and facilities serving the Premises), (2) the
electricity will be at nominal 120 volts, single phase (or 110 volts,
depending on available service in the Building, as defined in Article 25.01),
and (3) the safe and lawful capacity of the existing electrical circuit(s)
serving the Premises is not exceeded.
(B) Heat and air conditioning to provide a temperature required, in
Landlord's reasonable opinion and in accordance with applicable Law, for
occupancy of the Premises under normal business operations, from 7:00 a.m.
until 7:00 p.m. Monday through Friday, and 7:00 a.m. to 3:00 p.m. on
Saturdays, except on Holidays (as defined in Article 25.04 and Rider One).
Landlord shall not be responsible for inadequate air conditioning or
ventilation to the extent the same occurs because Tenant uses any item of
equipment consuming more than 500 ▇▇▇▇▇ at rated capacity without providing
adequate air conditioning and ventilation therefor. Any heat or air
conditioning requested after hours will be at extra cost to Tenant at $25.00
per hour. The hourly fee will increase periodically by the percentage
increase that is billed Landlord in excess of the rates billed Landlord on
January 1, 1997.
(C) Water for drinking, lavatory and toilet purposes at those
points of supply provided for nonexclusive general use of other tenants at
the Property.
(D) Customary office cleaning and trash removal service Monday
through Friday or Sunday through Thursday in and about the Premises.
(E) Operatorless passenger elevator service (if the Property has
such equipment serving the Premises) and freight elevator service (if the
Property has such equipment serving the Premises, and subject to scheduling
by Landlord) in common with Landlord and other tenants and their contractors,
agents and visitors.
(F) Landlord shall seek to provide such extra utilities or services
as Tenant may from time to time request, if the same are reasonable and
feasible for Landlord to provide and do not involve modifications or
additions to the Property or existing Systems and Equipment, and if Landlord
shall receive Tenant's request within a reasonable period prior to the time
such extra utilities or services are required. Landlord may comply with
written or oral requests by any officer
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Tenant Landlord
4
or employee of Tenant, unless Tenant shall notify Landlord of, or Landlord
shall request, the names of authorized individuals (up to three (3) for each
floor on which the Premises are located) and procedures for written requests.
Tenant shall, for such extra utilities or services, pay such charges as
Landlord shall from time to time reasonably establish. All charges for such
extra utilities or services shall be due at the same time as the installment
of Base Rent with which the same are billed, or if billed separately, shall
be due within twenty (20) days after such billing.
Landlord may install and operate meters or any other reasonable system
for monitoring or estimating any services or utilities used by Tenant in
excess of those required to be provided by Landlord under this Article
(including a system for Landlord's engineer to reasonably estimate any such
excess usage). If such system indicates such excess services or utilities,
Tenant shall pay Landlord's reasonable charges for installing and operating
such system and any supplementary air conditioning, ventilation, heat,
electrical or other systems or equipment (or adjustments or modifications to
the existing Systems and Equipment), and Landlord's reasonable charges for
such amount of excess services or utilities used by Tenant.
Landlord does not warrant that any services or utilities shall be free
from shortages, failures, variations, or interruptions caused by repairs,
maintenance, replacements, improvements, alterations, changes of service,
strikes, lockouts, labor controversies, accidents, inability to obtain
services, fuel, steam, water or supplies, governmental requirements or
requests, or other causes beyond Landlord's reasonable control. None of the
same shall be deemed an eviction or disturbance of Tenant's use and
possession of the Premises or any part thereof, or render Landlord liable to
Tenant for abatement of Rent, or relieve Tenant from performance of Tenant's
obligations under this Lease. Landlord in no event shall be liable for
damages by reason of loss of profits, business interruption or other
consequential damages.
ARTICLE 8
ALTERATIONS AND LIENS
Tenant shall make no additions, changes, alterations or improvements
("Work") to the Premises or the Systems and Equipment pertaining to the
Premises without the prior written consent of Landlord. Landlord may impose
reasonable requirements as a condition of such consent, including without
limitation the submission of plans and specifications for Landlord's prior
written approval, obtaining necessary permits, posting bonds, obtaining
insurance, prior approval of contractors, subcontractors and suppliers, prior
receipt of copies of all contracts and subcontracts, contractor and
subcontractor lien waivers, affidavits listing all contractors,
subcontractors and suppliers, use of union labor (if Landlord uses union
labor), affidavits from engineers acceptable to Landlord stating that the
Work will not adversely affect the Systems and Equipment or the structure of
the Property, and requirements as to the manner and times in which such Work
shall be done. All Work shall be performed in a good and workmanlike manner
and all materials used shall be of a quality comparable to or better than
those in the Premises and Property and shall be in accordance with plans and
specifications approved by Landlord, and Landlord may require that all such
Work be performed under Landlord's supervision. If Landlord consents or
supervises, the same shall not be deemed a warranty as to the adequacy of the
design, workmanship or quality of materials, and Landlord hereby expressly
disclaims any responsibility or liability for the same. Landlord shall under
no circumstances have any obligation to repair, maintain or replace any
portion of the Work.
Tenant shall keep the Property and Premises free from any mechanic's,
materialman's or similar liens or other such encumbrances in connection with
any Work on or respecting the Premises not performed by or at the request of
Landlord, and shall indemnify and hold Landlord harmless from and against any
claims, liabilities, judgments, or costs (including attorneys' fees) arising
out of the same or in connection therewith. Tenant shall give Landlord
notice at least twenty (20) days prior to the commencement of any Work on the
Premises (or such additional time as may be necessary under applicable Laws),
to afford Landlord the opportunity of posting and recording appropriate
notices of nonresponsibility. Tenant shall remove any such lien or
encumbrance by bond or otherwise within thirty (30) days after written notice
by Landlord, and if Tenant shall fail to do so, Landlord may pay the amount
necessary to remove such lien or encumbrance, without being responsible for
investigating the validity thereof. The amount so paid shall be deemed
additional Rent under this Lease, payable upon demand, without limitation as
to other remedies available to Landlord under this Lease. Nothing contained
in this Lease shall
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Tenant Landlord
5
authorize Tenant do any act which shall subject Landlord's title to the
Property or Premises to any liens or encumbrances, whether claimed by
operation of law or express or implied contract. Any claim to a lien or
encumbrance upon the Property or Premises arising in connection with any Work
on or respecting the Premises not performed by or at the request of Landlord
shall be null and void, or at Landlord's option shall attach only against
Tenant's interest in the Premises, and shall in all respects be subordinate
to Landlord's title to the Property and Premises.
ARTICLE 9
REPAIRS
Except for customary cleaning and trash removal provided by Landlord
under Article 7, and damage covered under Article 10, Tenant shall keep its
Leased Premises in good and sanitary condition, working order and repair,
reasonable wear and tear excepted (including without limitation carpet, wall
covering, doors, plumbing and other fixtures, equipment, alterations and
improvements, whether installed by Landlord or Tenant). In the event that
any repairs, maintenance or replacements are required, Tenant shall promptly
arrange for the same either through Landlord for such reasonable charges as
Landlord may from time to time establish, or such contractors as Landlord
generally uses at the Property or such other contractors as Landlord shall
first approve in writing, and in a first class, workmanlike manner approved
by Landlord in advance in writing. If Tenant does not promptly make such
arrangements, Landlord may, but need not, make such repairs, maintenance and
replacements, and the costs paid or incurred by Landlord therefor shall be
reimbursed by Tenant promptly after request by Landlord. Tenant shall
indemnify Landlord and pay for any repairs, maintenance and replacements to
areas of the Property outside the Premises caused, in whole or in part, as a
result of moving any furniture, fixtures, or other property to or from the
Premises, or by Tenant or its employees, agents, contractors, or visitors
(notwithstanding anything to the contrary contained in this Lease). Except as
provided in the preceding sentence, or for damage covered under Article 10,
Landlord shall keep the common areas of the Property in good and sanitary
condition, working order and repair (the cost of which shall be included in
Operating Expenses, as described in Article 25, except as limited therein).
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Tenant Landlord
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ARTICLE 10
CASUALTY DAMAGE
If the Premises or any common areas of the Property providing access
thereto shall be damaged by fire or other casualty, Landlord shall use
available insurance proceeds to restore the same. Such restoration shall be
substantially to the condition prior to the casualty, except for
modifications required by zoning and building codes and other Laws or by any
Holder (as defined in Article 25.03), except any other modifications to the
common areas deemed desirable by Landlord (provided access to the Premises is
not materially impaired), and except that Landlord shall not be required to
repair or replace any of Tenant's furniture, furnishings, fixtures or
equipment, or any alterations or improvements in excess of any work performed
or paid for by Landlord under any separate agreement signed by the parties in
connection herewith. Landlord shall not be liable for any inconvenience or
annoyance to Tenant or its visitors, or injury to Tenant's business resulting
in any way from such damage or the repair thereof. However, Landlord shall
allow Tenant a proportionate abatement of Rent during the time and to the
extent the Premises are unfit for occupancy for the purposes permitted under
this Lease and not occupied by Tenant as a result thereof (unless Tenant or
its employees or agents caused the damage). Notwithstanding the foregoing to
the contrary, Landlord may elect to terminate this Lease by notifying Tenant
in writing of such termination within sixty (60) days after the date of
damage (such termination notice to include a termination date providing at
least ninety (90) days for Tenant to vacate the Premises), if the Property
shall be materially damaged by Tenant or its employees or agents, or if the
Property shall be damaged by fire or other casualty or cause such that: (a)
repairs to the Premises and access thereto cannot reasonably be completed
within 120 days after the casualty without the payment of overtime or other
premiums, (b) more than twenty-five percent (25%) of the Premises is affected
by the damage, and fewer than twenty-four (24) months remain in the Term, or
any material damage occurs to the Premises during the last twelve (12) months
of the Term, (c) any Holder shall require that the insurance proceeds or any
portion thereof be used to retire the Mortgage (as defined in Article 25.07)
debt (or shall terminate the ground lease, as the case may be), or the damage
is not fully covered by Landlord's insurance policies, or (d) the cost of the
repairs, alterations, restoration or improvement work would exceed
twenty-five percent (25%) of the replacement value of the Building, or the
nature of such work would make termination of this Lease necessary or
convenient. Tenant agrees that Landlord's obligation to restore, and the
abatement of Rent provided herein, shall be Tenant's sole recourse in the
event of such damage, and waives any other rights Tenant may have under any
applicable Law to terminate the Lease by reason of damage to the Premises or
Property. Tenant acknowledges that this Article represents the entire
agreement between the parties respecting damage to the Premises or Property.
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Tenant Landlord
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ARTICLE 11
INSURANCE, SUBROGATION, AND WAIVER OF CLAIMS
Tenant shall maintain during the Term comprehensive (or commercial)
general liability insurance, with limits of not less than $1,000,000.00
combined single limit for personal injury, bodily injury or death, or
property damage or destruction (including loss of use thereof) for any one
occurrence. Tenant shall also maintain during the Term worker compensation
insurance as required by statute, and primary, noncontributory, "all-risk"
property damage insurance covering Tenant's personal property, business
records, fixtures and equipment, for damage or other loss caused by fire or
other casualty or cause, including but not limited to vandalism and malicious
mischief, theft, water damage of any type (including sprinkler leakage,
bursting or stoppage of pipes, explosion), business interruptions, and other
insurable risks in amounts not less than the full insurable replacement value
of such property and full insurable value of such other interests of Tenant
(subject to reasonable deductible amounts). Landlord shall, as part of
Operating Expenses, maintain during the Term comprehensive (or commercial)
general liability insurance, with limits of not less than $1,000,000.00
combined single limit for personal injury, bodily injury or death, or
property damage or destruction (including loss of use thereof) for any one
occurrence. Landlord shall also, as part of Operating Expenses, maintain
during the Term worker compensation insurance as required by statute, and
primary, noncontributory, extended coverage or "all-risk" property damage
insurance, in an amount equal to at least ninety percent (90%) of the full
insurable replacement value of the Property (exclusive of the costs of
excavation, foundations and footings, and such risks required to be covered
by Tenant's insurance, and subject to reasonable deductible amounts), or such
other amount necessary to prevent Landlord from being a co-insured, and such
other coverage as Landlord shall deem appropriate or that may be required by
any Holder.
Tenant shall provide Landlord with certificates evidencing such coverage
(and, with respect to liability coverage, showing Landlord as additional
insured) prior to the Commencement Date, which shall state that such
insurance coverage may not be changed or canceled without at least twenty
(20) days prior written notice to Landlord, and shall provide renewal
certificates to Landlord at least twenty (20) days prior to expiration of
such policies. Landlord may periodically, but not more often than every three
(3) years, require that Tenant reasonably increase the aforementioned
coverage. Except as provided to the contrary herein, any insurance carried
by Landlord or Tenant shall be for the sole benefit of the party carrying
such insurance. Any insurance policies hereunder may be "blanket policies".
All insurance required hereunder shall be provided by responsible insurers
and Tenant's insurer shall be reasonably acceptable to Landlord. By this
Article, Landlord and Tenant intend that their respective property loss risks
shall be borne by responsible insurance carriers to the extent above
provided, and Landlord and Tenant hereby agree to look solely to, and seek
recovery only from, their respective insurance carriers in the event of a
property loss to the extent that such coverage is agreed to be provided
hereunder. The parties each hereby waive all rights and claims against each
other for such losses, and waive all rights of subrogation of their
respective insurers, provided such waiver of subrogation shall not affect the
right of the insured to recover thereunder. The parties agree that their
respective insurance policies are now, or shall be, endorsed such that said
waiver of subrogation shall not affect the right of the insured to recover
thereunder, so long as no material additional premium is charged therefor.
If Tenant shall fail to comply with any of the requirements contained
relating to insurance, Landlord may obtain such insurance and Tenant shall
pay to Landlord, on demand as additional Rent thereunder, the premium cost
thereof.
If an increase in any insurance premiums paid by Landlord for the Project
is caused by Tenant's use of the Leased Premises, or if Tenant vacated the
Leased Premises and caused an increase in such premiums, then Tenant shall
pay as additional Rent the amount of such increase to Landlord. Tenant
agrees to pay any amount due under this section within ten (10) days
following receipt of the invoice showing the additional Rent due.
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Tenant Landlord
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ARTICLE 12
CONDEMNATION
If the whole or any material part of the Premises or Property shall be
taken by power of eminent domain or condemned by any competent authority for
any public or quasi-public use or purpose, or if any adjacent property or
street shall be so taken or condemned, or reconfigured or vacated by such
authority in such manner as to require the use, reconstruction or remodeling
of any part of the Premises or Property, or if Landlord shall grant a deed or
other instrument in lieu of such taking by eminent domain or condemnation,
Landlord shall have the option to terminate this Lease upon ninety (90) days
notice, provided such notice is given no later than 180 days after the date
of such taking, condemnation, reconfiguration, vacation, deed or other
instrument. Tenant shall have reciprocal termination rights if the whole or
any material part of the Premises is permanently taken, or if access to the
Premises is permanently materially impaired. Landlord shall be entitled to
receive the entire award or payment in connection therewith, except that
Tenant shall have the right to file any separate claim available to Tenant
for any taking of Tenant's personal property and fixtures belonging to Tenant
and removable by Tenant upon expiration of the Term, and for moving expenses
(so long as such claim does not diminish the award available to Landlord or
any Holder, and such claim is payable separately to Tenant). All Rent shall
be apportioned as of the date of such termination, or the date of such
taking, whichever shall first occur. If any part of the Premises shall be
taken, and this Lease shall not be so terminated, the Rent shall be
proportionately abated.
ARTICLE 13
RETURN OF POSSESSION
At the expiration or earlier termination of this Lease or Tenant's right
of possession, Tenant shall surrender possession of the Premises in the
condition required under Article 9, ordinary wear and tear excepted, and
shall surrender all keys, any key cards, and any parking stickers or cards,
to Landlord, and advise Landlord as to the combination of any locks or vaults
then remaining in the Premises, and shall remove all trade fixtures and
personal property. All improvements, fixtures and other items in or upon the
Premises (except trade fixtures, appliances installed by Tenant, and personal
property belonging to Tenant), whether installed by Tenant or Landlord, shall
be Landlord's property and shall remain upon the Premises, all without
compensation, allowance or credit to Tenant. However, if prior to such
termination or within ten (10) days thereafter Landlord so directs by notice,
Tenant shall promptly remove such of the foregoing items as are designated in
such notice and restore the Premises to the condition prior to the
installation of such items; provided Landlord shall not require removal of
customary office improvements installed pursuant to any separate agreement
signed by both parties in connection with entering this Lease (except as
expressly provided to the contrary therein), or installed by Tenant with
Landlord's written approval (except as required by Landlord in connection
with granting such approval). If Tenant shall fail to perform any repairs or
restoration, or fail to remove any items from the Premises required
hereunder, Landlord may do so, and Tenant shall pay Landlord the cost thereof
upon demand. All property removed from the Premises by Landlord pursuant to
any provisions of this Lease or any Law may be handled or stored by Landlord
at Tenant's expense, and Landlord shall in no event be responsible for the
value, preservation or safekeeping thereof. All property not removed from
the Premises or retaken from storage by Tenant within thirty (30) days after
expiration or earlier termination of this Lease or Tenant's right to
possession, shall at Landlord's option be conclusively deemed to have been
conveyed by Tenant to Landlord as if by ▇▇▇▇ of sale without payment by
Landlord. Unless prohibited by applicable Law, Landlord shall have a lien
against such property for the costs incurred in removing and storing the same.
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Tenant Landlord
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ARTICLE 14
HOLDING OVER
Unless Landlord expressly agrees otherwise in writing, Tenant shall pay
Landlord 150% of the amount of Rent then applicable (or the highest amount
permitted by Law, whichever shall be less) prorated on per diem basis for
each day Tenant shall retain possession of the Premises or any part thereof
after expiration or earlier termination of this Lease, together with all
damages sustained by Landlord on account thereof. The foregoing provisions
shall not serve as permission for Tenant to hold over, nor serve to extend
the Term (although Tenant shall remain bound to comply with all provisions of
this Lease until Tenant vacates the Premises, and shall be subject to the
provisions of Article 13). Notwithstanding the foregoing to the contrary, at
any time before or after expiration or earlier termination of the Lease,
Landlord may serve notice advising Tenant of the amount of Rent and other
terms required, should Tenant desire to enter a month-to-month tenancy (and
if Tenant shall hold over more than one full calendar month after such
notice, Tenant shall thereafter be deemed a month-to-month tenant, on the
terms and provisions of this Lease then in effect, as modified by Landlord's
notice, and except that Tenant shall not be entitled to any renewal or
expansion rights contained in this Lease or any amendments hereto).
ARTICLE 15
NO WAIVER
No provision of this Lease will be deemed waived by either party unless
expressly waived in writing signed by the waiving party. No waiver shall be
implied by delay or any other act or omission of either party. No waiver by
either party of any provision of this Lease shall be deemed a waiver of such
provision with respect to any subsequent matter relating to such provision,
and Landlord's consent or approval respecting any action by Tenant shall not
constitute a waiver of the requirement for obtaining Landlord's consent or
approval respecting any subsequent action. Acceptance of Rent by Landlord
shall not constitute a waiver of any breach by Tenant of any term or
provision of this Lease. No acceptance of a lesser amount than the Rent
herein stipulated shall be deemed a waiver of Landlord's right to receive the
full amount due, nor shall any endorsement or statement on any check or
payment or any letter accompanying such check or payment be deemed an accord
and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the full amount due. The acceptance
of Rent or of the performance of any other term or provision from any Person
other than Tenant, including any Transferee (as defined in Article 21.01),
shall not constitute a waiver of Landlord's right to approve any Transfer.
ARTICLE 16
ATTORNEYS' FEES
In the event of any litigation between the parties, the prevailing party
shall be entitled to obtain, as part of the judgment, all reasonable
attorneys' fees, costs and expenses incurred in connection with such
litigation, except as may be limited by applicable Law.
ARTICLE 17
PERSONAL PROPERTY TAXES, RENT TAXES AND OTHER TAXES
Tenant shall pay prior to delinquency all taxes, charges or other
governmental impositions assessed against or levied upon Tenant's fixtures,
furnishings, equipment and personal property located in the Premises, and any
Work to the Premises under Article 8. Whenever possible, Tenant shall cause
all such items to be assessed and billed separately from the property of
Landlord. In the event any such items shall be assessed and billed with the
property of Landlord, Tenant shall pay Landlord its share of such taxes,
charges or other governmental impositions within thirty (30) days after
Landlord delivers a statement and copy of the assessment or other
documentation showing the amount of such impositions applicable to Tenant's
property. Tenant shall pay any rent tax or sales tax, service tax, transfer
tax or value added tax, or any other applicable tax on the Rent or services
herein or otherwise respecting this Lease.
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ARTICLE 18
REASONABLE APPROVALS
Whenever Landlord's approval or consent is expressly required under this
Lease (including Article 21) or any other agreement between the parties,
Landlord shall not unreasonably withhold or delay such approval or consent
(reasonableness shall be a condition to Landlord's enforcement of such
consent or approval requirement, and not a covenant), except for matters
affecting the structure, safety or security of the Property, or the
appearance of the Property from any common or public areas.
ARTICLE 19
SUBORDINATION, ATTORNMENT AND MORTGAGEE PROTECTION
This Lease is subject and subordinate to all Mortgages now or hereafter
placed upon the Property, and all other encumbrances and matters of public
record applicable to the Property. If any foreclosure proceedings are
initiated by any Holder or a deed in lieu is granted (or if any ground lease
is terminated), Tenant agrees, upon written request of any such Holder or any
purchaser at foreclosure sale, to attorn and pay Rent to such party and to
execute and deliver any instruments necessary or appropriate to evidence or
effectuate such attornment (provided such Holder or purchaser shall agree to
accept this Lease and not disturb Tenant's occupancy, so long as Tenant does
not default and fail to cure within the time permitted hereunder). However,
in the event of attornment, no Holder shall be: (i) liable for any act or
omission of Landlord, or subject to any offsets or defenses which Tenant
might have against Landlord (prior to such Holder becoming Landlord under
such attornment), (ii) liable for any security deposit or bound by any
prepaid Rent not actually received by such Holder, or (iii) bound by any
future modification of this Lease not consented to by such Holder. Any
Holder may elect to make this Lease prior to the lien of its Mortgage, by
written notice to Tenant, and if the Holder of any prior Mortgage shall
require, this Lease shall be prior to any subordinate Mortgage. Tenant
agrees to give any Holder, by certified mail, return receipt requested, a
copy of any notice of default served by Tenant upon Landlord, provided that
prior to such notice Tenant has been notified in writing (by way of service
on Tenant of a copy of an assignment of leases, or otherwise) of the address
of such Holder. Tenant further agrees that if Landlord shall have failed to
cure such default within the times permitted Landlord for cure under this
Lease, any such Holder whose address has been provided to Tenant shall have
an additional period of thirty (30) days in which to cure (or such additional
time as may be required due to causes beyond such Holder's control, including
time to obtain possession of the Property by power of sale or judicial
action). Tenant shall execute such documentation, as Landlord may reasonably
request from time to time, in order to confirm the matters set forth in this
Article in recordable form.
ARTICLE 20
ESTOPPEL CERTIFICATE
Tenant shall from time to time, within twenty (20) days after written
request from Landlord, execute, acknowledge and deliver a statement (i)
certifying that this Lease is unmodified and in full force and effect or, if
modified, stating the nature of such modification and certifying that this
Lease, as so modified, is in full force and effect (or if this Lease is
claimed not to be in force and effect, specifying the ground therefor) and
any dates to which the Rent has been paid in advance, and the amount of any
Security Deposit, (ii) acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder, or
specifying such defaults if any are claimed, and (iii) certifying such other
matters as Landlord may reasonably request, or as may be requested by
Landlord's current or prospective Holders, insurance carriers, auditors, and
prospective purchasers. Any such statement may be relied upon by any such
parties. If Tenant shall fail to execute and return such statement within
the time required herein, Tenant shall be deemed to have agreed with the
matters set forth herein.
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Tenant Landlord
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ARTICLE 21
ASSIGNMENT AND SUBLETTING
21.01 TRANSFERS. Tenant shall not, without the prior written consent of
Landlord, as further described below: (i) assign, mortgage, pledge,
hypothecate, encumber, or permit any lien to attach to, or otherwise
transfer, this Lease or any interest hereunder, by operation of law or
otherwise, (ii) sublet the Premises or any part thereof, except that Tenant
may continue to sublet the portion of the Premises which have been under
previous sublet, or (iii) permit the use of the Premises by any Persons other
than Tenant and its employees (all of the foregoing are hereinafter sometimes
referred to collectively as "Transfers" (as further defined below) and any
Person to whom any Transfer is made or sought to be made is hereinafter
sometime referred to as a "Transferee"). If Tenant shall desire Landlord's
consent to any Transfer, Tenant shall notify Landlord in writing, which
notice shall include: (a) the proposed effective date (which shall not be
less than thirty (30) nor more than 180 days after Tenant's notice), (b) the
portion of the Premises to be Transferred (herein called the "Subject
Space"), (c) the terms of the proposed Transfer and the consideration
therefor, the name and address of the proposed Transferee, and a copy of all
documentation pertaining to the proposed Transfer, and (d) current financial
statements of the Proposed Transferee certified by an officer, partner or
owner thereof, and any other information to enable Landlord to determine the
financial responsibility, character, and reputation of the proposed
Transferee, nature of such Transferee's business and proposed use of the
Subject Space, and such other information as Landlord may reasonably require.
Any Transfer made without complying with this Article shall, at Landlord's
option, be null, void and of no effect, or shall constitute a default under
this Lease. Tenant shall pay reasonable legal fees incurred by Landlord to
review such Transfer, within thirty (30) days after written request by
Landlord.
21.02 APPROVAL. Landlord will not unreasonably withhold its consent (as
provided in Article 18) to any proposed Transfer of the Subject Space to the
Transferee on the terms specified in Tenant's notice. The parties hereby
agree that it shall be reasonable under this Lease and under any applicable
Law for Landlord to withhold consent to any proposed Transfer where one or
more of the following applies (without limitation as to other reasonable
grounds for withholding consent): (i) the Transferee is of a character or
reputation or engaged in a business which is not consistent with the quality
of the Property, or would be a significantly less prestigious occupant of the
Property than Tenant, (ii) the Transferee intends to use the Subject Space
for purposes which are not permitted under this Lease, (iii) the Subject
Space is not regular in shape with appropriate means of ingress and egress
suitable for normal renting purposes, (iv) the Transferee is a government or
agency or instrumentality thereof, (v) the proposed Transferee does not have
a reasonable financial condition in relation to the obligations to be assumed
in connection with the Transfer, or (vi) Tenant has committed and failed to
cure a default at the time Tenant requests consent to the proposed Transfer.
Landlord hereby consents to an assignment of all or any portion of this
Lease to an Affiliate of Tenant (as hereinafter defined) or to a Successor
Entity (as hereinafter defined), provided that all the following conditions
are fulfilled: (i) no Event of Default then exists under this Lease, (ii)
Tenants sends to Landlord such organizational and transactional documents as
are sufficient to establish that such proposed assignee is an Affiliate of
Tenant or a Successor Entity, as the case may be, and (iii) Landlord is
provided with a true and correct copy of the fully executed assignment of
this Lease and copies of any other documents executed in connection with such
assignment. In addition, the Affiliate of Tenant or Successor Entity to
which this lease is assigned must execute an instrument reasonably
satisfactory to landlord in form and substance whereby such Affiliate of
Tenant or Successor Entity, as the case may be, assumes and agrees to perform
all of the obligations and agreements of Tenant under this Lease. No such
assignment by Tenant shall relieve Tenant of any covenants or obligations
under this Lease, unless Landlord agrees in writing to release Tenant from
its Lease obligations. For purposes hereof, the term "Affiliate of Tenant"
shall mean an entity, directly or indirectly, through one or more
intermediaries, controlling, controlled by, or under common control with
Tenant. The term "control" as used in the immediately preceding sentence,
means, with respect to an entity that is a corporation, the right to
exercise, directly or indirectly, more than fifty percent (50%) of the voting
rights attributable to the shares of the controlled corporation, and, with
respect to an entity that is not a corporation, the possession, directly or
indirectly, of the power to direct or cause the direction of the management
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Tenant Landlord
12
direction of the management or policies of the controlled entity. The term
"Successor Entity" as used herein shall mean either (a) an entity to which
all or substantially all of the assets or stock of Tenant are transferred in
an arms length transaction, or (b) an entity into which Tenant is merged or
consolidated in an arms length transaction.
21.03 TRANSFER PREMIUM. If Landlord consents to a Transfer, and as a
condition thereto which the parties hereby agree is reasonable, Tenant shall
pay Landlord one hundred percent (100%) of any Transfer Premium derived by
Tenant from such Transfer. "Transfer Premium" shall mean all rent,
additional rent or other consideration paid by such Transferee in excess of
the Rent payable by Tenant under this Lease (on a monthly basis during the
Term, and on a per rentable square foot basis, if less than all of the
Premises is transferred), after deducting the reasonable expenses incurred by
Tenant for any changes, alterations and improvements to the Premises, any
other economic concessions or services provided to the Transferee, and any
customary brokerage commissions paid in connection with the Transfer. If any
part of the consideration for such Transfer shall be payable other than in
cash, Landlord's share of such non-cash consideration shall be in such form
as is reasonably satisfactory to Landlord. The percentage of the Transfer
Premium due Landlord hereunder shall be paid within ten (10) days after
Tenant receives any Transfer Premium from the Transferee.
21.04 TERMS OF CONSENT. If Landlord consents to a Transfer: (a) the
terms and conditions of this Lease, including among other things Tenant's
liability for the Subject Space, shall in no way be deemed to have been
waived or modified, (b) such consent shall not be deemed consent to any
further Transfer by either Tenant or a Transferee, (c) no Transferee shall
succeed to any rights provided in this Lease or any amendment hereto to
extend the Term of this Lease, expand the Premises, or lease additional
space, any such rights being deemed personal to Tenant, (d) Tenant shall
deliver to Landlord, promptly after execution, an original executed copy of
all documentation pertaining to the Transfer in a form reasonably acceptable
to Landlord, and (e) Tenant shall furnish upon Landlord's request a complete
statement, certified by an independent certified public accountant, or
Tenant's chief financial officer, setting forth in detail the computation of
any Transfer Premium Tenant has derived and shall derive from such Transfer.
Landlord or its authorized representatives shall have the right at all
reasonable times to audit the books, records and papers of Tenant relating to
any Transfer, and shall have the right to make copies thereof. If the
Transfer Premium respecting any Transfer shall be found understated, Tenant
shall within thirty (30) days after demand pay the deficiency, and if
understated by more than two percent (2%), Tenant shall pay Landlord's costs
of such audit. Any sublease hereunder shall be subordinate and subject to
the provisions of this Lease, and if this Lease shall be terminated during
the term of any sublease, Landlord shall have the right to: (i) treat such
sublease as canceled and repossess the Subject Space by any lawful means, or
(ii) require that such subtenant attorn to and recognize Landlord as its
landlord under any such sublease. If Tenant shall default and fail to cure
within the time permitted for cure under Article 23.01, Landlord is hereby
irrevocably authorized, as Tenant's agent and attorney-in-fact, to direct any
Transferee to make all payments under or in connection with the Transfer
directly to Landlord (which Landlord shall apply towards Tenant's obligations
under this Lease) until such default is cured.
21.05 CERTAIN TRANSFERS. For purposes of this Lease, the term
"Transfer" shall also include (a) if Tenant is a partnership, the withdrawal
or change, voluntary, involuntary or by operation of Law, of a majority of
the partners, or a transfer of a majority of partnership interests, within a
twelve (12) month period, or the dissolution of the partnership, and (b) if
Tenant is a closely held corporation (i.e., whose stock is not publicly held
and not traded through an exchange or over the counter), the dissolution,
merger, consolidation or other reorganization of Tenant, or within a twelve
(12) month period: (i) the sale or other transfer of more than an aggregate
of fifty percent (50%) of the voting shares of Tenant (other than to
immediate family members by reason of gift or death), or (ii) the sale,
mortgage, hypothecation or pledge of more than an aggregate of fifty percent
(50%) of Tenant's net assets.
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ARTICLE 22
RIGHTS RESERVED BY LANDLORD
Except to the extent expressly limited herein, Landlord reserves full
rights to control the Property (which rights may be exercised without
subjecting Landlord to claims for constructive eviction, abatement of Rent,
damages or other claims of any kind), including more particularly, but
without limitation, the following rights:
(A) To change the name or street address of the Property; install
and maintain signs on the exterior and interior of the Property; retain at
all times, and use in appropriate instances, keys to all doors within and
into the Premises; grant to any Person the right to conduct any business or
render any service at the Property, whether or not it is the same or similar
to the use permitted Tenant by this Lease; and have access for Landlord and
other tenants of the Property to any mail chutes located on the Premises
according to the rules of the United States Postal Service.
(B) To enter the Premises at reasonable hours for reasonable
purposes, including inspection and supplying cleaning service or other
services to be provided Tenant hereunder; to show the Premises to current and
prospective mortgage lenders, ground lessors, insurers, and prospective
purchasers, tenants and brokers, at reasonable hours; and if Tenant shall
abandon the Premises at any time, or shall vacate the same during the last
three (3) months of the Term, to decorate, remodel, repair, or alter the
Premises.
(C) To limit or prevent access to the Property, shut down elevator
service, activate elevator emergency controls, or otherwise take such action
or preventative measures deemed necessary by Landlord for the safety of
tenants or other occupants of the Property or the protection of the Property
and other property located thereon or therein, in case of fire, invasion,
insurrection, riot, civil disorder, public excitement or other dangerous
condition, or threat thereof.
(D) To decorate and to make alterations, additions and
improvements, structural or otherwise, in or to the Property or any part
thereof, and any adjacent building, structure, parking facility, land, street
or alley (including without limitation changes and reductions in corridors,
lobbies, parking facilities and other public areas and the installation of
kiosks, planters, sculptures, displays, escalators, mezzanines, and other
structures, facilities, amenities and features therein, and changes for the
purpose of connection with or entrance into or use of the Property in
conjunction with any adjoining or adjacent building or buildings, now
existing or hereafter constructed). In connection with such matters, or with
any other repairs, maintenance, improvements or alterations, in or about the
Property, Landlord may erect scaffolding and other structures reasonably
required, and during such operations may enter upon the Premises and take
into and upon or through the Premises all materials required to make such
repairs, maintenance, alterations or improvements, and may close public
entryways, other public areas, rest rooms, stairways or corridors.
In connection with entering the Premises to exercise any of the foregoing
rights, Landlord shall: (a) provide reasonable advance written or oral notice
to Tenant's on-site manager or other appropriate person (except in
emergencies, or for routine cleaning or other routine matters), and (b) take
reasonable steps to minimize any interference with Tenant's business.
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Tenant Landlord
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ARTICLE 23
LANDLORD'S REMEDIES
23.01 DEFAULT BY TENANT. The following shall be deemed to be events of
default by Tenant under this Lease: (1) Tenant shall fail to pay any
installment of Rent or other payment required pursuant to this Lease within
three (3) days after Landlord's written notice thereof to Tenant; (2) Tenant
shall abandon any substantial portion of the Leased Premises; (3) Tenant
shall fail to comply with any term, provision or covenant of this Lease,
other than the defaults described in subparts (1) and (2) of this sentence,
and the failure is not cured within ten (10) days after written notice
thereof to Tenant; (4) Tenant or any guarantor of Tenant's obligations
hereunder shall file a petition or be adjudged bankrupt or insolvent under
any applicable federal or state bankruptcy or insolvency law or admit that it
cannot meet it financial obligations as they become due; or a receiver or
trustee shall be appointed for all or substantially all of the assets of
Tenant or any guarantor of Tenant's obligations hereunder; or Tenant or any
guarantor of Tenant's obligations hereunder shall make a transfer in fraud of
creditors or shall make an assignment for the benefit of creditors; (5)
Tenant shall do or permit to be done any act which results in a lien being
filed against the Leased Premises or the Project; or (6) the liquidation,
termination, dissolution or (if the Tenant is a natural person) the death of
Tenant or any guarantor of Tenant's obligations hereunder.
23.02 REMEDIES. If a default occurs and is not cured within any
applicable time permitted under Article 23.01, Landlord shall have the rights
and remedies hereinafter set forth, which shall be distinct, separate and
cumulative with and in addition to any other right or remedy allowed under
any Law or other provisions of this Lease:
(A) Landlord may terminate this Lease, repossess the Premises by
detainer suit, summary proceedings or other lawful means, and recover as
damages a sum of money equal to: (a) any unpaid Rent as of the termination
date, including interest at the Default Rate (as defined in Article 25.02),
(b) any unpaid Rent which would have accrued after the termination date
through the time of award, including interest at the Default Rate, less such
loss of Rent that Tenant proves could have been reasonably avoided, (c) any
unpaid Rent which would have accrued after the time of award during the
balance of the Term, less such loss of Rent that Tenant proves could be
reasonably avoided, and (d) any other amounts necessary to compensate
Landlord for all damages proximately caused by Tenant's failure to perform
its obligations under this Lease, including without limitation all Costs of
Reletting (as defined in Article 23.05). For purposes of computing the amount
of Rent herein that could have accrued after the time of award, Tenant's Pro
Rata Share of Operating Expenses shall be projected, based upon the average
rate of increase, if any, in such items from the Commencement Date through
the time of award.
(B) If applicable Law permits, Landlord may terminate Tenant's
right of possession and repossess the Premises by detainer suit, summary
proceedings or other lawful means, without terminating this Lease (and if
such Law permits, and Landlord shall not have expressly terminated the Lease
in writing, any termination shall be deemed a termination of Tenant's right
of possession only). In such event, Landlord may recover: (a) any unpaid
Rent as of the date possession is terminated, including interest at the
Default Rate, (b) any unpaid Rent which accrues during the Term from the date
possession is terminated through the time of award (or which may have accrued
from the time of any earlier award obtained by Landlord through the time of
award), including interest at the Default Rate, less any Net Reletting
Proceeds (as defined in Article 23.05) received by Landlord during such
period, and less such loss of Rent that Tenant proves could have been
reasonably avoided, and (c) any other amounts necessary to compensate
Landlord for all damages proximately caused by Tenant's failure to perform
its obligations under this Lease, including without limitation all Costs of
Reletting. Landlord may bring suits for such amounts or portions thereof, at
any time or times as the same accrue or after the same have accrued, and no
suit or recovery of any portion due hereunder shall be deemed a waiver of
Landlord's right to collect all amounts to which Landlord is entitled
hereunder, nor shall the same serve as any defense to any subsequent suit
brought for any amount not theretofore reduced to judgment.
23.03 SPECIFIC PERFORMANCE, COLLECTION OF RENT AND ACCELERATION.
Landlord shall at all times have the right and remedies (which shall be
cumulative with each other and cumulative and in addition to those rights and
remedies available under Article 23.02 above, or any Law or other
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Tenant Landlord
15
provision of this Lease), without prior demand or notice except as required
by applicable Law to: (i) seek any declaratory, injunctive or other equitable
relief, and specifically enforce this Lease, or restrain or enjoin a
violation or breach of any provision hereof, and (ii) ▇▇▇ for and collect any
unpaid Rent which has accrued. Notwithstanding anything to the contrary
contained in this Lease, to the extent not expressly prohibited by applicable
Law, in the event of any default by Tenant not cured within any applicable
time for cure hereunder, Landlord may terminate this Lease or Tenant's right
to possession and accelerate and declare that all Rent reserved for the
remainder of the Term shall be immediately due and payable (in which event,
Tenant's Pro Rata Share of Taxes and Operating Expenses for the remainder of
the Term shall be projected based upon the average rate of increase, if any,
in such items from the Commencement Date through the date of such
declaration); provided Landlord shall, after receiving payment of the same
from Tenant, be obligated to turn over to Tenant any actual Net Reletting
Proceeds thereafter received during the remainder of the Term, up to the
amount so received from Tenant pursuant to this provision.
23.04 LATE PAYMENT CHARGE AND INTEREST PAYABLE. Other remedies for
nonpayment of Rent notwithstanding, if monthly rental payment is not received
by Landlord on or before the tenth day of the month for which the Rent is
due, or if any other payment hereunder due Landlord by Tenant is not received
by Landlord on or before the tenth day of the month next following the month
in which Tenant was invoiced, a late payment charge of five percent (5%) of
such past due amount shall become due and payable in addition to such amounts
owed under this Lease. Any payment due under this Lease not paid upon the
date herein specified to be paid shall bear interest from the expiration of
ten (10) days after the date such payment is due to the date of actual
payment at the highest lawful rate of interest permitted by law.
23.05 CERTAIN DEFINITIONS. "Net Reletting Proceeds" shall mean the
total amount of Rent and other consideration paid by any Replacement Tenants,
less all Costs of Reletting, during a given period of time. "Costs of
Reletting" shall include without limitation all reasonable costs and expenses
incurred by Landlord for any repairs, maintenance, changes, alterations and
improvements to the Premises, brokerage commissions, advertising costs,
attorneys' fees, any customary free rent periods or credits, tenant
improvement allowances, take-over lease obligations and other customary,
necessary or appropriate economic incentives required to enter leases with
Replacement Tenants, and costs of collecting Rent from Replacement Tenants.
"Replacement Tenants" shall mean any Persons to whom Landlord relets the
Premises or any portion thereof pursuant to this Article.
23.06 OTHER MATTERS. No re-entry or repossession, repairs, changes,
alterations and additions, reletting, acceptance of keys from Tenant, or any
other action or omission by Landlord shall be construed as an election by
Landlord to terminate this Lease or Tenant's right to possession, or accept a
surrender of the Premises, nor shall the same operate to release the Tenant
in whole or in part from any of Tenant's obligations hereunder, unless
express written notice of such intention is sent by Landlord or its agent to
Tenant. To the fullest extent permitted by Law, all Rent and other
consideration paid by any Replacement Tenants shall be applied: first, to the
Costs of Reletting, second, to the payment of any Rent theretofore accrued,
and the residue, if any, shall be held by Landlord and applied to the payment
of other obligations of Tenant to Landlord as the same become due (with any
remaining residue to be retained by Landlord). Rent shall be paid without
any prior demand or notice therefor (except as expressly provided herein) and
without any deduction, set-off or counterclaim, or relief from any valuation
or appraisement laws. Landlord may apply payments received from Tenant to
any obligations of Tenant then accrued, without regard to such obligations as
may be designated by Tenant. Landlord shall be under no obligation to
observe or perform any provision of this Lease on its part to be observed or
performed which accrues after the date of any default by Tenant hereunder not
cured within the times permitted hereunder. The times set forth herein for
curing of defaults by Tenant are of the essence of this Lease. Tenant hereby
irrevocably waives any right otherwise available under any Law to redeem or
reinstate this Lease.
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Tenant Landlord
16
ARTICLE 24
LANDLORD'S DEFAULT
If Landlord shall fail to perform any term or provision under this Lease
required to be performed by Landlord, Landlord shall not be deemed to be in
default hereunder nor subject to any claims for damages of any kind, unless
such failure shall have continued for a period of thirty (30) days after
written notice thereof by Tenant; provided, if the nature of Landlord's
failure is such that more than thirty (30) days are reasonably required in
order to cure, Landlord shall not be in default if Landlord commences to cure
such failure within such thirty (30) day period, and thereafter reasonably
seeks to cure such failure to completion. The aforementioned periods of time
permitted for Landlord to cure shall be extended for any period of time
during which Landlord is delayed in, or prevented from, curing due to fire or
other casualty, strikes, lockouts or other labor troubles, shortages of
equipment or materials, governmental requirements, power shortages or
outages, acts or omissions by Tenant or other Persons, and other causes
beyond Landlord's reasonable control. If Landlord shall fail to cure within
the times permitted for cure herein, Landlord shall be subject to such
remedies as may be available to Tenant (subject to the other provisions of
this Lease); provided, in recognition that Landlord must receive timely
payments of Rent and operate the Property, Tenant shall have no right of self
help to perform repairs or any other obligations of Landlord, and shall have
no right to withhold, set off, or ▇▇▇▇▇ Rent.
ARTICLE 25
CAPTIONS, DEFINITIONS AND SEVERABILITY
The captions of the Articles and Paragraphs of this Lease are for
convenience of reference only and shall not be considered or referred to in
resolving questions or interpretation. If any term or provision of this
Lease shall be found invalid, void, illegal, or unenforceable with respect to
any particular Person by a court of competent jurisdiction, it shall not
affect, impair or invalidate any other terms or provisions hereof, or its
enforceability with respect to any other Person, the parties hereto agreeing
that they would have entered into the remaining portion of this Lease
notwithstanding the omission of the portion or portions adjudged invalid,
void, illegal, or unenforceable with respect to such Person.
25.01 "Building" shall mean the structure identified in Article 1 of
this Lease.
25.02 "Default Rate" shall mean eighteen percent (18%) per annum, or the
highest rate permitted by applicable Law, whichever shall be less.
25.03 "Holder" shall mean the holder of any Mortgage at the time in
question, and where such Mortgage is a ground lease, such term shall refer to
the ground lessor.
25.04 "Holidays" shall mean all federally observed holidays, including
New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day,
Veterans' Day, Thanksgiving Day, the day following Thanksgiving Day,
Christmas Day, and to the extent of utilities or services provided by union
members engaged at the Property, such other holidays observed by such unions.
25.05 "Landlord" and "Tenant" shall be applicable to one or more
Persons as the case may be, and the singular shall include the plural, and
the neuter shall include the masculine and feminine; and if there be more
than one, the obligations thereof shall be joint and several. For purposes
of any provisions indemnifying or limiting the liability of Landlord, the
term "Landlord" shall include Landlord's present and future partners,
beneficiaries, trustees, officers, directors, employees, shareholders,
principals, agents, affiliates, successors and assigns.
25.06 "Law" shall mean all federal, state, county and local governmental
and municipal laws, statutes, ordinances, regulations, codes, decrees, orders
and other such requirements, applicable equitable remedies and decisions by
courts in cases where such decisions are considered binding precedents in the
state in which the Property is located, and decisions of federal courts apply
the Laws of such state.
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Tenant Landlord
17
25.07 "Mortgage" shall mean all mortgages, deeds of trust, ground leases
and other such encumbrances now or hereafter placed upon the Property or
Building, or any part thereof, and all renewals, modifications,
consolidations, replacements or extensions thereof, and all indebtedness now
or hereafter secured thereby and all interest thereon.
25.08 "Operating Expenses" shall mean all expenses, costs, Taxes and
amounts of every kind and nature which Landlord shall pay during any calendar
year, any portion of which occurs during the Term, because of or in
connection with the ownership, management, repair, maintenance, restoration
and operation of the Property, including without limitation any amounts paid
for: (a) utilities for the Property, including but not limited to
electricity, power, gas, steam, oil or other fuel, water, sewer, lighting,
heating, air conditioning and ventilating, (b) permits, licenses and
certificates necessary to operate, manage and lease the Property, (c)
insurance applicable to the Property, not limited to the amount of coverage
Landlord is required to provide under this Lease, (d) supplies, tools,
equipment and materials used in the operation, repair and maintenance of the
Property, (e) accounting, legal, inspection, consulting, concierge and other
services, (f) any equipment rental (or installment equipment purchase or
equipment financing agreements), or management agreements (including the cost
of any management fee actually paid thereunder and the fair rental value of
any office space provided thereunder, up to customary and reasonable
amounts), (g) wages, salaries and other compensation and benefits for all
persons engaged in the operation, maintenance or security of the Property,
and employer's Social Security taxes, unemployment taxes or insurance, and
any other taxes which may be levied on such wages, salaries, compensation and
benefits, (h) payments under any easement, operating agreement, declaration,
restrictive covenant, or instrument pertaining to the sharing of costs in any
planned development, and (i) installation, operation, repair, and maintenance
of all Systems and Equipment and components thereof (including replacement of
components), janitorial service, pest control, alarm and security service,
window cleaning, trash removal, elevator maintenance, cleaning of walks,
parking facilities and building walls, removal of ice and snow, replacement
of wall and floor coverings, ceiling tiles and fixtures in lobbies,
corridors, rest rooms and other common or public areas or facilities,
maintenance and replacement of shrubs, trees, grass, sod and other landscaped
items, irrigation systems, drainage facilities, fences, curbs, and walkways,
repaving and re-striping parking facilities, and roof repairs. If the
Property is not fully occupied during all or a portion of any calendar year,
Landlord may, in accordance with generally accepted accounting and management
practices, determine the amount of variable Operating Expenses (i.e., those
items which vary according to occupancy levels) that would have been paid had
the Property been fully occupied, and the amount so determined shall be
deemed to have been the amount of variable Operating Expenses for such year.
Notwithstanding the foregoing, Operating Expenses shall not, however, include:
(A) depreciation, interest and amortization on Mortgages, and other
debt costs or ground lease payments, if any; real estate brokers' leasing
commissions; improvements or alterations to tenant spaces; the cost of
providing any service directly to and paid directly by any tenant; any costs
expressly excluded from Operating Expenses elsewhere in this Lease; costs of
any items to the extent Landlord receives reimbursement from insurance
proceeds or from a third party (such proceeds to be deducted from Operating
Expenses in the year in which received); and
(B) capital expenditures, except those: (a) made primarily to
reduce Operating Expenses, or to comply with any Laws or other governmental
requirements, or (b) for replacements (as opposed to additions or new
improvements) of nonstructural items located in the common areas of the
Property required to keep such areas in good condition; provided all such
permitted capital expenditures (together with reasonable financing charges)
shall be amortized for purposes of this Lease over the shorter of: (i) their
useful lives, (ii) the period during which the reasonably estimated savings
in Operating Expenses equals the expenditures, or (iii) three (3) years.
25.09 "Person" shall mean an individual, trust, partnership, joint
venture, association, corporation, and any other entity.
25.10 "Property" shall mean the Building, and any common or public areas
or facilities, easements, corridors, lobbies, sidewalks, loading areas,
driveways, landscaped areas, sky walks, parking garages and lots, and any and
all other structures or facilities operated or maintained in connection with
or for the benefit of the Building, and all parcels or tracts of land on
which all or
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Tenant Landlord
18
any portion of the Building or any of the other foregoing items are located,
and any fixtures, machinery, equipment, apparatus, Systems and Equipment,
furniture and other personal property located thereon or therein and used in
connection therewith, whether title is held by Landlord or its affiliates.
Possession of areas necessary for utilities, services, safety and operation
of the Property, including the Systems and Equipment, fire stairways,
perimeter walls, space between the finished ceiling of the Premises and the
slab of the floor or roof of the Property there above, and the use thereof,
together with the right to install, maintain, operate, repair and replace the
Systems and Equipment, including any of the same in, through, under or above
the Premises in locations that will not materially interfere with Tenant's
use of the Premises, are hereby excepted and reserved by Landlord, and not
demised to Tenant.
25.11 "Rent" shall have the meaning specified therefor in Article 3.05.
25.12 "Systems and Equipment" shall mean any plant, machinery,
transformers, duct work, cable, wires, and other equipment, facilities, and
systems designed to supply heat, ventilation, air conditioning and humidity
or any other services or utilities, or comprising or serving as any component
or portion of the electrical, gas, steam, plumbing, sprinkler,
communications, alarm, security, or fire/life/safety systems or equipment, or
any other mechanical, electrical, electronic, computer or other systems or
equipment for the Property.
25.13 "Taxes" shall mean all federal, state, county, or local
governmental or municipal taxes, fees, charges or other impositions of every
kind and nature, whether general, special, ordinary or extraordinary,
including without limitation real estate taxes, general and special
assessments, transit taxes, water and sewer rents, taxes based upon the
receipt of rent, including gross receipts or sales taxes applicable to the
receipt of rent or service or value added taxes (unless required to be paid
by Tenant under Article 17), personal property taxes imposed upon the
fixtures, machinery, equipment, apparatus, Systems and Equipment,
appurtenances, furniture and other personal property used in connection with
the Property which Landlord shall pay during any calendar year, any portion
of which occurs during the Term (without regard to any different fiscal year
used by such governmental or municipal authority) because of or in connection
with the ownership, leasing and operation of the Property. Notwithstanding
the foregoing, there shall be excluded from Taxes all excess profits taxes,
franchise taxes, gift taxes, capital stock taxes, inheritance and succession
taxes, estate taxes, federal and state income taxes, and other taxes to the
extent applicable to Landlord's general or net income (as opposed to rents,
receipts or income attributable to operations at the Property). If the
method of taxation of real estate prevailing at the time of execution hereof
shall be or has been altered, so as to cause the whole or any part of the
taxes now, hereafter or heretofore levied, assessed or imposed on real estate
to be levied, assessed or imposed on Landlord, wholly or partially, as a
capital levy or otherwise, or on or measured by the rents received therefrom,
then such new or altered taxes attributable to the Property shall be included
within the term "Taxes", except that the same shall not include any
enhancement of said tax attributable to other income of Landlord. Any
expenses incurred by Landlord in attempting to protest, reduce or minimize
Taxes shall be included in Taxes in the calendar year such expenses are paid.
Tax refunds shall be deducted from Taxes in the year they are received by
Landlord, but if such refund shall relate to taxes paid in a prior year of
the Term, and the Lease shall have expired, Landlord shall mail Tenant's Pro
Rata Share of such net refund (after deducting expenses and attorneys' fees),
up to the amount Tenant paid towards Taxes during such year, to Tenant's last
known address. If Taxes for any period during the Term or any extension
thereof shall be increased after payment thereof by Landlord, for any reason,
including without limitation error or reassessment by applicable governmental
or municipal authorities, Tenant shall pay Landlord upon demand Tenant's Pro
Rata Share of such increased Taxes. Tenant shall pay increased Taxes whether
Taxes are increased as a result of increases in the assessments or valuation
of the Property (whether based on a sale, change in ownership or refinancing
of the Property or otherwise), increases in the tax rates, reduction or
elimination of any rollbacks or other deductions available under current law,
scheduled reductions of any tax abatement, as a result of the elimination,
invalidity or withdrawal of any tax abatement, or for any other cause
whatsoever. Notwithstanding the foregoing, if any Taxes shall be paid based
on assessments or bills by a governmental or municipal authority using a
fiscal year other than a calendar year, Landlord may elect to average the
assessments or bills for the subject calendar year, based on the number of
months of such calendar year included in each such assessment or ▇▇▇▇.
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Tenant Landlord
19
25.14 "Square feet" or "square foot" as used in this Lease includes the
area contained within the Leased Premises, together with a common area
percentage factor of the Leased Premises proportionate to the total Building
area as determined by Landlord.
25.15 "Tenant's Pro Rata Share" of Operating Expenses shall be the
rentable area of the Premises divided by the rentable area of the Property on
the last day of the calendar year for which Operating Expenses are being
determined, excluding any parking facilities. Tenant acknowledges that the
"rentable area of the Premises" under this Lease includes the usable area,
without deduction for columns or projections, multiplied by a load or
conversion factor, to reflect a share of certain areas, which may include
lobbies, corridors, mechanical, utility, janitorial, boiler and service rooms
and closets, rest rooms, and other public, common and service areas. Except
as provided expressly to the contrary herein, the "rentable area of the
Property" shall include all rentable area of all space leased or available
for lease at the Property, which Landlord may reasonably redetermine from
time to time, to reflect reconfigurations, additions or modifications to the
Property. If the Property or any development of which it is a part shall
contain non-office uses, Landlord shall have the right to determine, in
accordance with sound accounting and management principles, Tenant's Pro Rata
Share of Operating Expenses for only the office portion of the Property or of
such development, in which event, Tenant's Pro Rata Share shall be based on
the ratio of the rentable area of the Premises to the rentable area of such
office portion. Similarly, if the Property shall contain tenants who do not
participate in all or certain categories of Operating Expenses on a pro rata
based, Landlord may exclude the amount of Operating Expenses, or such
categories of the same, as the case may be, attributable to such tenants, and
exclude the rentable area of their premises, in computing Tenant's Pro Rata
Share.
ARTICLE 26
CONVEYANCE BY LANDLORD AND LIABILITY
In case Landlord or any successor owner of the Property or the Building
shall convey or otherwise dispose of any portion thereof in which the
Premises are located, to another Person (and nothing herein shall be
construed to restrict or prevent such conveyance or disposition), such other
Person shall thereupon be and become landlord hereunder and shall be deemed
to have fully assumed and be liable for all obligations of this Lease to be
performed by Landlord which first arise after the date of conveyance,
including the return of any Security Deposit, and Tenant shall attorn to such
other Person, and Landlord or such successor owner shall, from and after the
date of conveyance, be free of all liabilities and obligations hereunder not
then incurred. The liability of Landlord to Tenant for any default by
Landlord under this Lease or arising in connection herewith or with
Landlord's operation, management, leasing, repair, renovation, alteration, or
any other matter relating to the Property or the Premises, shall be limited
to the interest of Landlord in the Property (and the rental proceeds
thereof). Tenant agrees to look solely to Landlord's interest in the
Property (and the rental proceeds thereof) for the recovery of any judgment
against Landlord, and Landlord shall not be personally liable for any such
judgment or deficiency after execution thereon. The limitations of liability
contained in this Article shall apply equally and inure to the benefit of
Landlord's present and future partners, beneficiaries, officers, directors,
trustees, shareholders, agents and employees, and their respective partners,
heirs, successors and assigns. Under no circumstances shall any present or
future general or limited partner of Landlord (if Landlord is a partnership),
or trustee or beneficiary (if Landlord or any partner of Landlord is a trust)
have any liability for the performance of Landlord's obligations under this
Lease. Notwithstanding the foregoing to the contrary, Landlord shall have
personal liability for insured claims, beyond Landlord's interest in the
Property (and rental proceeds thereof), to the extent of Landlord's liability
insurance coverage available for such claims.
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Tenant Landlord
20
ARTICLE 27
INDEMNIFICATION
Except to the extent arising from the intentional or grossly negligent
acts of Landlord or Landlord's agents or employees, Tenant shall defend,
indemnify and hold harmless Landlord from and against any and all claims,
demands, liabilities, damages, judgments, orders, decrees, actions,
proceedings, fines, penalties, costs and expenses, including without
limitation court costs and attorneys' fees, arising from or relating to any
loss of life, damage or injury to person, property or business occurring in
or from the Premises, or caused by or in connection with any violation of
this Lease or use of the Premises or Property by, or any other act or
omission of, Tenant, any other occupant of the Premises, or any of their
respective agents, employees, contractors or guests. Without limiting the
generality of the foregoing, Tenant specifically acknowledges that the
indemnity undertaken herein shall apply to claims in connection with or
arising out of any "Work" as described in Article 8, the installation,
maintenance, use or removal of any "Lines" located in or serving the Premises
as described in Article 29, and the transportation, use, storage,
maintenance, generation, manufacturing, handling, disposal, release or
discharge of any "Hazardous Material" as described in Article 30 (whether or
not any of such matters shall have been theretofore approved by Landlord),
except to the extent that any of the same arises from the intentional or
grossly negligent acts of Landlord or Landlord's agents or employees.
ARTICLE 28
SAFETY AND SECURITY DEVICES, SERVICES AND PROGRAMS
The parties acknowledge that safety and security devices, services and
programs provided by Landlord, if any, while intended to deter crime and
ensure safety, may not in given instances prevent theft or other criminal
acts, or ensure safety of persons or property. The risk that any safety or
security device, service or program may not be effective, or may malfunction,
or be circumvented by a criminal, is assumed by Tenant with respect to
Tenant's property and interests, and Tenant shall obtain insurance coverage
to the extent Tenant desires protection against such criminal acts and other
losses, as further described in Article 11. Tenant agrees to cooperate in any
reasonable safety or security program developed by Landlord or required by
Law.
ARTICLE 29
COMMUNICATIONS AND COMPUTER LINES
Tenant may install, maintain, replace, remove or use any communications
or computer wires, cables and related devices (collectively the "Lines") at
the Property in or serving the Premises, provided: (a) Tenant shall obtain
Landlord's prior written consent, use an experienced and qualified contractor
approved in writing by Landlord, and comply with all of the other provisions
of Article 8, (b) any such installation, maintenance, replacement, removal or
use shall comply with all Laws applicable thereto and good work practices,
and shall not interfere with the use of any then existing Lines at the
Property, (c) an acceptable number of spare Lines and space for additional
Lines shall be maintained for existing and future occupants of the Property,
as determined in Landlord's reasonable opinion, (d) if Tenant at any time
uses any equipment that may create an electromagnetic field exceeding the
normal insulation ratings of ordinary twisted pair riser cable or cause
radiation higher than normal background radiation, the Lines therefor
(including riser cables) shall be appropriately insulated to prevent such
excessive electromagnetic fields or radiation, (e) as a condition to
permitting the installation of new Lines, Landlord may require that Tenant
remove existing Lines located in or serving the Premises, (f) Tenant's rights
shall be subject to the rights of any regulated telephone company, and (g)
Tenant shall pay all costs in connection therewith. Landlord reserves the
right to require that the Tenant remove any Lines located in or serving the
Premises which are installed in violation of these provisions, or which are
at any time in violation of any Laws or represent a dangerous or potentially
dangerous condition (whether such Lines were installed by Tenant or any other
party), within three (3) days after written notice.
Landlord may (but shall not have the obligation to): (i) install new
Lines at the Property, (ii) create additional space for Lines at the
Property, and (iii) reasonably direct, monitor and/or supervise the
installation, maintenance, replacement and removal of, the allocation and
periodic reallocation of available space (if any) for, and the allocation of
excess capacity (if any) on, any
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Tenant Landlord
21
Lines now or hereafter installed at the Property by Landlord, Tenant or any
other party (but Landlord shall have no right to monitor or control the
information transmitted through such Lines). Such rights shall not be in
limitation of other rights that may be available to Landlord by Law or
otherwise. If Landlord exercises any such rights, Landlord may charge Tenant
for the costs attributable to Tenant, or may include those costs and all
other costs in Operating Expenses under Article 25 (including without
limitation costs for acquiring and installing Lines and risers to accommodate
new Lines and spare Lines, any associated computerized system and software
for maintaining records of Line connections, and the fees of any consulting
engineers and other experts); provided any capital expenditures included in
Operating Expenses hereunder shall be amortized (together with reasonable
finance charges) over the period of time prescribed by Article 25.
Notwithstanding anything to the contrary contained in Article 13,
Landlord reserves the right to require that Tenant remove any or all Lines
installed by or for Tenant within or serving the Premises upon termination of
this Lease, provided Landlord notifies Tenant prior to or within thirty (30)
days following such termination. Any Lines not required to be removed
pursuant to this Article shall, at Landlord's option, become the property of
Landlord (without payment by Landlord). If Tenant fails to remove such Lines
as required by Landlord, or violates any other provision of this Article,
Landlord may, after twenty (20) days written notice to Tenant, remove such
Lines or remedy such other violation, at Tenant's expense (without limiting
Landlord's other remedies available under this Lease or applicable Law).
Tenant shall not, without the prior written consent of Landlord in each
instance, grant to any third party a security interest or lien in or on the
Lines, and any such security interest or lien granted without Landlord's
written consent shall be null and void. Except to the extent arising from the
intentional or negligent acts of Landlord or Landlord's agents or employees,
Landlord shall have no liability for damages arising from, and Landlord does
not warrant that the Tenant's use of any Lines will be free from, the
following (collectively called "Line Problems"): (x) any eavesdropping or
wire tapping by unauthorized parties, (y) any failure of any Lines to satisfy
Tenant's requirement, or (z) any shortages, failures, variations,
interruptions, disconnections, loss or damage caused by the installation,
maintenance, replacement, use or removal of Lines by or for other tenants or
occupants at the Property, by any failure of the environmental conditions or
the power supply for the Property to conform to any requirements for the
Lines or any associated equipment, or any other problems associated with any
Lines by any other cause. Under no circumstances shall any Line Problems be
deemed an actual or constructive eviction of Tenant, render Landlord liable
to Tenant for abatement of Rent, or relieve Tenant from performance of
Tenant's obligations under this Lease. Landlord in no event shall be liable
for damages by reason of loss of profits, business interruption or other
consequential damage arising from any Line Problems.
ARTICLE 30
HAZARDOUS MATERIALS
Tenant shall not transport, use, store, maintain, generate, manufacture,
handle, dispose, release or discharge any "Hazardous Material" (as defined
below) upon or about the Property, or permit Tenant's employees, agents,
contractors, and other occupants of the Premises to engage in such activities
upon or about the Property. However, the foregoing provisions shall not
prohibit the transportation to and from, and use, storage, maintenance and
handling within, the Premises of substances customarily used in offices (or
such other business or activity expressly permitted to be undertaken in the
Premises under Article 6), provided: (a) such substances shall be used and
maintained only in such quantities as are reasonably necessary for such
permitted use of the Premises, strictly in accordance with applicable Law and
manufacturers' instructions therefore, (b) such substances shall not be
disposed of, released or discharged on the Property, and shall be transported
to and from the Premises in compliance with all applicable Laws, and as
Landlord shall reasonably require, (c) if any applicable Law or Landlord's
trash removal contractor requires that any such substances be disposed of
separately from ordinary trash, Tenant shall make arrangements at Tenant's
expense for such disposal directly with a qualified and licensed disposal
company at a lawful disposal site (subject to scheduling and approval by
Landlord), and shall ensure that disposal occurs frequently enough to prevent
unnecessary storage of such substances in the Premises, and (d) any remaining
such substances shall be completely, properly and lawfully removed from the
Property upon expiration or earlier termination of this Lease.
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Tenant Landlord
22
Tenant shall promptly notify Landlord of: (i) any enforcement, cleanup or
other regulatory action taken or threatened by any governmental or regulatory
authority with respect to the presence of any Hazardous Material on the
Premises or the migration thereof from or to other property, (ii) any demands
or claims made or threatened by any party against Tenant or the Premises
relating to any loss or injury resulting from any Hazardous Material, (iii)
any release, discharge or non-routine, improper or unlawful disposal or
transportation of any Hazardous Material on or from the Premises, and (iv)
any matters where Tenant is required by Law to give a notice to any
governmental or regulatory authority respecting any Hazardous Material on the
Premises. Landlord shall have the right (but not the obligation) to join and
participate as a party in any legal proceedings or actions affecting the
Premises initiated in connection with any environmental, health or safety
Law. At such times as Landlord may reasonably request, Tenant shall provide
Landlord with a written list identifying any Hazardous Material then used,
stored or maintained upon the Premises, the use and approximate quantity of
each such material, a copy of any material safety data sheets ("MSDS") issued
by the manufacturer therefor, written information concerning the removal,
transportation and disposal of the same, and such other information as
Landlord may reasonably require or as may be required by Law. The term
"Hazardous Material" for purposes hereof shall mean any chemical, substance,
material or waste or component thereof which is now or hereafter listed,
defined or regulated as a hazardous or toxic chemical, substance, material or
waste or component thereof by any federal, state or local governing or
regulatory body having jurisdiction, or which would trigger any employee or
community "right-to-know" requirements adopted by any such body, or for which
any such body has adopted any requirements for the preparation or
distribution of an MSDS.
If any Hazardous Material is released, discharged or disposed of by
Tenant or any other occupant of the Premises, or their employees, agents or
contractors, on or about the Property in violation of the foregoing
provisions, Tenant shall immediately, properly and in compliance with
applicable Laws clean up and remove the Hazardous Material from the Property
and any other affected property and clean or replace any affected personal
property (whether or not owned by Landlord), at Tenant's expense. Such clean
up and removal work shall be subject to Landlord's prior written approval
(except in emergencies), and shall include, without limitation, any testing,
investigation, and the preparation and implementation of any remedial action
plan required by any governmental body having jurisdiction or reasonably
required by Landlord. If Tenant shall fail to comply with the provisions of
this Article within five (5) days after written notice by Landlord, or such
shorter time as may be required by Law or in order to minimize any hazard to
Persons or property, Landlord may (but shall not be obligated to) arrange for
such compliance directly or as Tenant's agent, through contractors or other
parties selected by Landlord, at Tenant's expense (without limiting
Landlord's other remedies under this Lease or applicable Law). If any
Hazardous Material is released, discharged or disposed of on or about the
Property and such release, discharge or disposal is not caused by Tenant or
other occupants of the Premises, or their employees, agents or contractors,
such release, discharge or disposal shall be deemed casualty damage under
Article 10 to the extent that the Premises or common areas serving the
Premises are affected thereby; and in such case, Landlord and Tenant shall
have the obligations and rights respecting such casualty damage provided
under Article 10.
ARTICLE 31
MISCELLANEOUS
(A) Each of the terms and provisions of this Lease shall be binding upon
and inure to the benefit of the parties hereto, their respective heirs,
executors, administrators, guardians, custodians, successors and assigns,
subject to the provisions of Article 21 respecting Transfers.
(B) Neither this Lease nor any memorandum of lease or short form lease
shall be recorded by Tenant.
(C) This Lease shall be construed in accordance with the Laws of the
state in which the Property is located.
(D) All obligations or rights or either party arising during or
attributable to the period ending upon expiration or earlier termination of
this Lease shall survive such expiration or earlier termination.
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Tenant Landlord
23
(E) Landlord agrees that, if Tenant timely pays the Rent and performs
the terms and provisions hereunder, and subject to all other terms and
provisions of this Lease, Tenant shall hold and enjoy the Premises during the
Term, free of lawful claims by any Person acting by or through Landlord.
(F) This Lease does not grant any legal rights to "light and air"
outside the Premises nor any particular view or cityscape visible from the
Premises.
(G) If the Commencement Date is delayed in accordance with Article 4 for
more than one year, Landlord may declare this Lease null and void, and if the
Commencement Date is so delayed for more than seven (7) years, this Lease
shall thereupon become null and void without further action by either party.
ARTICLE 32
RIGHT TO RELOCATE
Notwithstanding anything herein to the contrary, Landlord shall in all
cases retain the right and power to relocate Tenant within the Building in
space which is comparable in size and location and suited to Tenant's use,
such right and power to be exercised reasonably and such relocation to be
carried out at Landlord's sole cost and expense. Landlord shall not be
liable or responsible for any claims, damages, or liabilities in connection
with or occasioned by such relocation. Landlord's reasonable exercise of
such right and power shall include, but shall in no way be limited to, a
relocation to consolidate the occupied rental square feet in order to provide
Landlord's services more efficiently, or a relocation to provide contiguous
vacant space for a prospective tenant.
ARTICLE 33
OFFER
The submission and negotiation of this Lease shall not be deemed an offer
to enter the same by Landlord, but the solicitation of such an offer by
Tenant. Tenant agrees that its execution of this Lease constitutes a firm
offer to enter the same which may not be withdrawn for a period of ten (10)
days after delivery to Landlord (or such other period as may be expressly
provided in any other agreement signed by the parties). During such period
and in reliance on the foregoing, Landlord may, at Landlord's option (and
shall, if required by applicable Law), deposit any security deposit and Rent,
and proceed with any plans, specifications, alterations or improvements, and
permit Tenant to enter the Premises, but such acts shall not be deemed an
acceptance of Tenant's offer to enter this Lease, and such acceptance shall
be evidenced only by Landlord signing and delivering this Lease to Tenant.
ARTICLE 34
NOTICES
Except as expressly provided to the contrary in this Lease, every notice
or other communication to be given by either party to the other with respect
hereto, or to the Premises or Property, shall be in writing and shall not be
effective for any purpose unless the same shall be served personally or by
national air courier service, or United States certified mail, return receipt
requested, postage prepaid, addressed, if to Tenant, at the address first set
forth in the Lease, until the Commencement Date, and thereafter to the Tenant
at the Premises, and if to Landlord, at the address at which the last payment
of Rent was required to be made or such other address or addresses as Tenant
and Landlord may from time to time designate by notice given as above
provided. Every notice or other communication hereunder shall be deemed to
have been given as of the third business day following the date of such
mailing (or as of any earlier date evidenced by a receipt from such national
air courier service or the United States Postal Service) or immediately if
personally delivered. Notices not sent in accordance with the foregoing
shall be of no force or effect until received by the foregoing parties at
such addresses required herein.
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Tenant Landlord
24
ARTICLE 35
REAL ESTATE BROKERS
Tenant represents that Tenant has not dealt with any broker, agent or
finder in connection with this Lease and agrees to indemnify and hold
Landlord harmless from all damages, judgments, liabilities and expenses
(including reasonable attorneys' fees) arising from any claims or demands of
any other broker, agent or finder with whom Tenant has dealt for any
commission or fee alleged to be due in connection with its participation in
the procurement of Tenant or the negotiation with Tenant of this Lease.
ARTICLE 36
SECURITY DEPOSIT
Tenant shall deposit with Landlord the amount of $ N/A ("Security
Deposit"), upon Tenant's execution and submission of this Lease. The
Security Deposit shall serve as security for the prompt, full and faithful
performance by Tenant of the terms and provisions of this Lease. In the
event that Tenant is in default hereunder and fails to cure within any
applicable time permitted under this Lease, or in the event that Tenant owes
any amounts to Landlord upon the expiration of this Lease, Landlord may use
or apply the whole or any part of the Security Deposit for the payment of
Tenant's obligations hereunder. The use or application of the Security
Deposit or any portion thereof shall not prevent Landlord from exercising any
other right or remedy provided hereunder or under any Law and shall not be
construed as liquidated damages. In the event the Security Deposit is reduced
by such use or application, Tenant shall deposit with Landlord, within ten
(10) days after written notice, an amount sufficient to restore the full
amount of the Security Deposit. Any remaining portion of the Security
Deposit shall be returned to Tenant within thirty (30) days after Tenant has
vacated the Premises in accordance with Article 13. If the Premises shall be
expanded at any time, or if the Term shall be extended at an increased rate
of Rent, the Security Deposit shall thereupon be proportionately increased.
ARTICLE 37
ENTIRE AGREEMENT
This Lease, together with Riders One through Four and Exhibits "A and B"
(WHICH COLLECTIVELY ARE HEREBY INCORPORATED HEREIN AND MADE A PART HEREOF AS
THOUGH FULLY SET FORTH), contains all the terms and provisions between
Landlord and Tenant relating to the matters set forth herein and no prior or
contemporaneous agreement or understanding pertaining to the same shall be of
any force or effect, except any such contemporaneous agreement specifically
referring to and modifying this Lease, signed by both parties. Without
limitation as to the generality of the foregoing, Tenant hereby acknowledges
and agrees that Landlord's leasing agents and field personnel are only
authorized to show the Premises and negotiate terms and conditions for leases
subject to Landlord's final approval, and are not authorized to make any
agreements, representations, understandings or obligations binding upon
Landlord respecting the condition of the Premises or Property, suitability of
the same for Tenant's business, or any other matter, and no such agreements,
representations, understandings or obligations not expressly contained herein
or in such contemporaneous agreement shall be of any force or effect. Neither
this Lease, nor any Riders or Exhibits referred to above, may be modified,
except in writing signed by both parties.
LANDLORD: TENANT:
UNISON SOFTWARE TEXAS, INC.,
a Texas corporation
By: By:
------------------------ --------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇
Name:
------------------------
Date: , 1997
--------------- Title:
-----------------------
Date: , 1997
------------------
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Tenant Landlord
25
CERTIFICATE FOR UNISON SOFTWARE TEXAS, INC.
(IF TENANT IS A CORPORATION)
I, ____________________________________________________, Secretary,
hereby certify that the officer executing the foregoing Lease on behalf of
Tenant was duly authorized to act in his capacity as _____________________
and his actions are the actions of Tenant.
(Corporate Seal)
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
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Tenant Landlord
26
EXHIBIT A
DESCRIPTION OF LAND
▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ I:
All that certain tract or parcel of land or premises, being out of the
▇▇▇▇▇ ▇▇▇▇▇▇ League in the City of ▇▇▇▇▇▇, ▇▇▇▇▇▇ County, Texas, being a
portion of that certain 1.67 acre tract conveyed to ▇▇▇▇▇ ▇. ▇▇▇▇▇ by a
correction partition deed dated April 29, 1983, as recorded in Volume 8072,
Page 262 of the ▇▇▇▇▇▇ County Deed Records and being 1.471 acres of land more
particularly described by metes and bounds as follows:
Beginning at an iron pin found at the southeast intersection of a sixty
foot wide roadway known locally as ▇▇▇▇▇▇▇ Avenue and a one hundred foot wide
roadway known locally as ▇▇▇▇▇▇ Springs Road, being the northwest corner of
the tract described herein;
Thence, with the south line of ▇▇▇▇▇▇ Springs Road, S 66 DEG. 54' E
225.15 feet to an iron pin found at the northwest corner of Lot A, Vernon's
Addition, a subdivision of record, as recorded in Book 68, Page 62 of the
▇▇▇▇▇▇ County Plat Records, same being the northeast corner of the tract
described herein;
Thence, S 23 DEG. 06' W pass at 167.50 feet to an iron pin found at the
southwest corner of Lot A, Vernon's Addition, in all a distance of 281.23
feet to an iron pin found for the southeast corner of the tract described
herein;
Thence, N 60 DEG. 03' W 106.67 feet to an iron pin found for an angle
point in the south line of this tract;
Thence, N 60 DEG. 05' W 150.09 feet to an iron pipe found in the east
line of ▇▇▇▇▇▇▇ Avenue for the southwest corner of the tract described herein;
Thence, with the east line of ▇▇▇▇▇▇▇ Avenue, N 29 DEG. 53' E 252.46 feet
to the Point and Place of Beginning. There being contained within these
metes and bounds 1.471 acres of land area, more or less.
TRACT 11:
Lot A, Vernon's Addition, a subdivision in the City of ▇▇▇▇▇▇, ▇▇▇▇▇▇
County, Texas, according to the map or plat thereof recorded in Volume 68,
Page 62, Plat Records of ▇▇▇▇▇▇ County, Texas.
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Tenant Landlord
27
EXHIBIT B
FLOOR PLAN
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Tenant Landlord
28
RIDER ONE
RULES
(1) On Saturdays, Sundays and Holidays (as further defined in Article
25 of the Lease), and on other days between the hours of 7:00 p.m. and 7:00
a.m. the following day, or such other hours as Landlord shall determine from
time to time, access to the Property (as defined in Article 25 of the Lease)
and/or to the passageways, entrances, exits, shipping areas, halls,
corridors, elevators or stairways and other areas in the Property may be
restricted and access gained by use of a key to the outside doors of the
Property, or pursuant to such security procedures Landlord may from time to
time impose. All such areas, and all roofs, are not for use of the general
public and Landlord shall in all cases retain the right to control and
prevent access thereto by all persons whose presence in the judgment of
Landlord shall be prejudicial to the safety, character, reputation and
interests of the Property and its tenants, provided, however, that nothing
herein contained shall be construed to prevent such access to persons with
whom Tenant deals in the normal course of Tenant's business unless such
persons are engaged in activities which are illegal or violate these Rules.
No Tenant and no employee or invitee of Tenant shall enter into areas
reserved for the exclusive use of Landlord, its employees or invitees.
Tenant shall keep doors to corridors and lobbies closed except when persons
are entering or leaving.
As used in the Lease, "business days" means Monday through Saturday
(except Holidays); "regular hours" means 7:00 a.m. to 7:00 p.m. on weekdays
and 7:00 a.m. to 3:00 p.m. on Saturday; and "Holidays" means New Year's Day,
President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, the
day after Thanksgiving, and Christmas, together with such other holidays
designated by Landlord consistent with those holidays designated by landlords
of comparable office buildings located in the county in which the Building
(as defined in Article 25 of the Lease) is located.
(2) Tenant shall not paint, display, inscribe, maintain or affix any
sign, placard, picture, advertisement, name, notice, lettering or direction
on any part of the outside or inside of the Property, or on any part of the
inside of the Premises which can be seen from the outside of the Premises,
without the prior consent of Landlord, and then only such name or names or
matter and in such color, size, style, character and material as may be first
approved by Landlord in writing. Landlord shall prescribe the suite number
and identification sign for the Premises (which shall be prepared and
installed by Landlord at Tenant's expense). Landlord reserves the right to
remove at Tenant's expense all matter not so installed or approved without
notice to Tenant.
(3) Tenant shall not in any manner use the name of the Property for any
purpose other than that of the business address of the Tenant, or use any
picture or likeness of the Property, in any letterheads, envelopes,
circulares, notices, advertisements, containers or wrapping material without
Landlord's express consent in writing.
(4) Tenant shall not place anything or allow anything to be placed in
the Premises near the glass of any door, partition, wall or window which may
be unsightly from outside the Premises, and Tenant shall not place or permit
to be placed any article of any kind on any window ledge or on the exterior
walls. Blinds, shades, awnings or other forms of inside or outside window
ventilators or similar devices shall not be placed in or about the outside
windows in the Premises except to the extent, if any, that the character,
shape, color, material and make thereof is first approved by the Landlord.
(5) Furniture, freight and other large or heavy articles, and all other
deliveries may be brought into the Property only at times and in the manner
designated by Landlord, and always at the Tenant's sole responsibility and
risk. Landlord may impose reasonable charges for use of freight elevators
after or before normal business hours. All damage done to the Property by
moving or maintaining such furniture, freight or articles shall be repaired
by Landlord at Tenant's expense. Landlord may inspect items brought into the
Property or Premises with respect to weight or dangerous nature. Landlord
may require that all furniture, equipment, cartons and similar articles
removed from the Premises or the Property be listed and a removal permit
therefor first be obtained from Landlord. Tenant shall not take or permit to
be taken in or out of other entrances or
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Tenant Landlord
29
RIDER ONE - CONTINUED
elevators of the Property any item normally taken, or which Landlord
otherwise reasonably requires to be taken, in or out through service doors or
on freight elevators. Tenant shall not allow anything to remain in or
obstruct in any way any lobby, corridor, sidewalk, passageway, entrance,
exit, hall, stairway, shipping area, or other such area. Tenant shall move
all supplies, furniture and equipment as soon as received directly to the
Premises, and shall move all such items and waste (other than waste
customarily removed by Property employees) that are at any time being taken
from the Premises directly to the areas designated for disposal. Any
handcarts used at the Property shall have rubber wheels.
(6) Tenant shall not overload any floor or part thereof in the Premises
or Property, including any public corridors or elevators therein, bringing in
or removing any large or heavy articles, and Landlord may direct and control
the location of safes and all other heavy articles and require supplementary
supports at Tenant's expense of such material and dimensions as Landlord may
deem necessary to property distribute the weight.
(7) Tenant shall not attach or permit to be attached additional locks
or similar devices to any door or window, change existing locks or the
mechanism thereof, or make or permit to be made any keys for any door other
than those provided by Landlord. Tenant, upon termination of its tenancy,
shall deliver to the Landlord all keys of offices, rooms and toilet rooms
which have been furnished Tenant or which the Tenant shall have had made, and
in the event of loss of any keys so furnished shall pay Landlord therefor.
(8) If Tenant desires signal, communication, alarm or other utility or
similar service connections installed or changed, Tenant shall not install or
change the same without the prior approval of Landlord, and then only under
Landlord's direction at Tenant's expense. Tenant shall not install in the
Premises any equipment which requires more electric current than Landlord is
required to provide under this Lease, without Landlord's prior approval, and
Tenant shall ascertain from Landlord the maximum amount of load or demand for
or use of electrical current which can safely be permitted in the Premises,
taking into account the capacity of electric wiring in the Property and the
Premises and the needs of tenants of the Property, and shall not in any event
connect a greater load than such safe capacity.
(9) Tenant shall not obtain for use upon the Premises ice, drinking
water, towel, janitor and other similar services, except from Persons (as
defined in Article 25 of the Lease) approved by the Landlord. Any Person
engaged by Tenant to provide janitor or other services shall be subject to
direction by the manager or security personnel of the Property.
(10) Tenant shall not permit the use or the operation of any coin
operated machines on the Leased Premises, including without limitation
vending machines, video games, pinball machines, or pay telephones without
the prior written consent of Landlord.
(11) The toilet rooms, urinals, wash bowls and other such apparatus
shall not be used for any purpose other than that for which they were
constructed and no foreign substance of any kind whatsoever shall be thrown
therein and the expense of any breakage, stoppage or damage resulting from
the violations of this Rule shall be borne by the Tenant, who, or whose
employees or invitees, shall have caused it.
(12) The janitorial closets, utility closets, telephone closets, broom
closets, electrical closets, storage closets, and other such closets, rooms
and areas shall be used only for the purposes and in the manner designated by
Landlord, and may not be used by tenants, or their contractors, agents,
employees, or other parties without Landlord's prior written consent.
(13) Landlord reserves the right to exclude or expel from the Property
any person who, in the judgment of Landlord, is intoxicated or under the
influence of liquor or drugs, or who shall in any manner do any act in
violation of any of these Rules. Tenant shall not at any time manufacture,
sell, use or give away any spirituous, fermented, intoxicating or alcoholic
liquors on the Premises, nor permit any of the same to occur (except in
connection with occasional social or business events conducted in the
Premises which do not violate any Laws (as defined in Article 25 of the
Lease) nor
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Tenant Landlord
30
RIDER ONE - CONTINUED
bother or annoy any other tenants). Tenant shall not at any time sell,
purchase or give away food in any form by or to any Tenant's agents or
employees or any other parties on the Premises, nor permit any of the same to
occur (other than in lunch rooms or kitchens for employees as may be
permitted or installed by Landlord, which does not violate any Laws or bother
or annoy any other tenant).
(14) Tenant shall not make any room-to-room canvass to solicit business
or information or to distribute any article or material to or from other
tenants or occupants of the Property and shall not exhibit, sell or offer to
sell, use, rent or exchange any products or services in or from the Premises
unless ordinarily embraced within the Tenant's use of the Premises specified
in the Lease. Tenant agrees to cooperate and assist Landlord in the
prevention of canvassing, soliciting and peddling within the Property.
(15) Tenant shall not waste electricity, water, heat or air conditioning
or other utilities or services, and agrees to cooperate fully with Landlord
to assure the most effective and energy efficient operation of the Property
and shall not allow the adjustment (except by Landlord's authorized Property
personnel) of any controls. Tenant shall keep corridor doors closed and
shall not open any windows, except that if the air circulation shall not be
in operation, windows which are openable may be opened with Landlord's
consent. As a condition to claiming any deficiency in the air conditioning
or ventilation services provided by Landlord, Tenant shall close any blinds
or drapes in the Premises to prevent or minimize direct sunlight.
(16) Except with the prior written consent of Landlord, Tenant shall not
sell, or permit the sale from the Lease Premises of, or use or permit the use
of any sidewalk or mall area adjacent to the Leased Premises for the sale of
newspapers, magazines, periodicals, theater tickets or any other goods or
merchandise, nor shall Tenant carry on, or permit or allow any employee or
other person to carry on, business in or from the Leased Premises for the
service or accommodation of occupants of any other portion of the Building,
nor shall the Leased Premises be used for manufacturing of any kind, or for
any business or activity other than that specifically provided for in
Tenant's lease.
(17) Tenant shall cooperate and comply with any reasonable safety or
security programs, including fire drills and air raid drills, and the
appointment of "fire wardens" developed by Landlord for the Property, or
required by Law. Before leaving the Premises unattended, Tenant shall close
and securely lock all doors or other means of entry to the Premises and shut
off all lights and water faucets in the Premises (except heat to the extent
necessary to prevent the freezing or bursting of pipes).
(18) Tenant will comply with all municipal, county, state, federal or
other government laws, statutes, codes, regulations and other requirements,
including without limitation environmental, health, safety and police
requirements and regulations respecting the Premises, now or hereinafter in
force, at its sole cost, and will not use the Premises for any immoral
purposes.
(19) Tenant shall not (i) carry on any business, activity or service
except those ordinarily embraced within the permitted use of the Premises
specified in the Lease and more particularly, but without limiting the
generality of the foregoing, shall not (ii) install or operate any internal
combustion engine, boiler, machinery, refrigerating, heating or air
conditioning equipment in or about the Premises, (iii) use the Premises for
housing, lodging or sleeping purposes or for the washing of clothes, (iv)
place any radio or television antennae other than inside of the Premises, (v)
operate or permit to be operated any musical or sound producing instrument or
device which may be heard outside the Premises, (vi) use any source of power
other than electricity, (vii) operate any electrical or other devise from
which may emanate electrical or other waves which may interfere with or
impair radio, television, microwave, or other broadcasting or reception from
or in the Property or elsewhere, (viii) bring or permit any bicycle or other
vehicle, or dog (except in the company of a blind person or except where
specifically permitted) or other animal or bird in the Property, (ix) make or
permit objectionable noise or odor to emanate from the Premises, (x) do
anything in or about the Premises tending to create or maintain a nuisance or
do any act tending to injure the reputation of the Property, (xi) throw or
permit to be thrown or dropped any article from any window or other opening
in the Property, (xii) use or permit upon the Premises anything that
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Tenant Landlord
31
RIDER ONE - CONTINUED
will invalidate or increase the rate of insurance on any policies of
insurance now or hereafter carried on the Property or violate the
certificates of occupancy issued for the Premises or the Property, (xiii) use
the Premises for any purpose, or permit upon the Premises anything that may
be dangerous to persons or property (including but not limited to flammable
oils, fluids paints, chemicals, firearms or any explosive articles or
materials), nor (xiv) do or permit anything to be done upon the Premises in
any way tending to disturb any other tenant at the Property or the occupants
of neighboring property.
(20) If the Property shall now or hereafter contain a building garage,
parking structure or other parking area facility, the following Rules shall
apply in such areas or facilities:
(i) Parking shall be available in areas designated generally for
tenant parking, for such daily or monthly charges as Landlord may establish
from time to time, or as may be provided in any Parking Agreement attached
hereon (which, when signed by both parties as provided therein, shall
thereupon become effective). In all cases, parking for Tenant and its
employees and visitors shall be on a "first come, first served", unassigned
basis, with Landlord and other tenants at the Property, and their employees
and visitors, and other Persons to whom Landlord shall grant the right or who
shall otherwise have the right to use the same, all subject to these Rules,
as the same may be amended or supplemented, and applied on a
nondiscriminatory basis, all as further described in Article 6 of the Lease.
Notwithstanding the foregoing to the contrary, Landlord reserves the right to
assign specific spaces, and to reserve spaces for visitors, small cars,
handicapped individuals, and other tenants, visitors of tenants or other
Persons, and Tenant and its employees and visitors shall not park in any such
assigned or reserved spaces. Landlord may restrict or prohibit full size
vans and other large vehicles.
(ii) In case of any violations of these provisions, Landlord may
refuse to permit the violator to park, and may remove the vehicle owned or
driven by the violator from the Property without liability whatsoever, at
such violator's risk and expense. Landlord reserves the right to close all or
a portion of the parking areas or facilities in order to make repairs or
perform maintenance services, or to alter, modify, re-stripe or renovate the
same, or if required by casualty, strike, condemnation, act of God, Law or
governmental requirement, or any other reason beyond Landlord's reasonable
control. In the event access is denied for any reason, any monthly parking
charges shall be abated to the extent access is denied, as Tenant's sole
recourse. Tenant acknowledges that such parking areas or facilities may be
operated by an independent contractor not affiliated with Landlord, and
Tenant acknowledges that in such event, Landlord shall have no liability for
claims arising through acts or omissions of such independent contractor, if
such contractor is reputable.
(iii) Hours shall be 7:00 a.m. to 7:00 p.m., Monday through Friday,
and 7:00 a.m. to 3:00 p.m. on Saturdays, or such other hours as may be
reasonably established by Landlord or its parking operator from time to time;
cars must be parked entirely within the stall lines, and only small cars may
be parked in areas reserved for small cars; all directional signs and arrows
must be observed; the speed limit shall be five (5) miles per hour; spaces
reserved for handicapped parking must be used only by vehicles properly
designated; every ▇▇▇▇▇▇ is required to park and lock his own car; washing,
waxing, cleaning or servicing of any vehicle is prohibited; parking spaces
may be used only for parking automobiles; parking is prohibited: (a) in areas
not striped or designated for parking, (b) in aisles, (c) where "no parking"
signs are posted, (d) on ramps, and (e) in loading areas and other specially
designated areas. Delivery trucks and vehicles shall use only those areas
designated therefor.
(21) Tenant shall not any time occupy any part of the Leased Premises as
sleeping or lodging quarters.
(22) Landlord desires to maintain in the Property the highest standard
of dignity and good taste consistent with comfort and convenience for
Tenants. Any action or condition not meeting this high standard should be
reported directly to Landlord. Your cooperation will be mutually beneficial
and sincerely appreciated. Landlord reserves the right to make such other and
further reasonable rules and regulations as in its judgment may from time to
time be necessary, for
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Tenant Landlord
32
RIDER ONE - CONTINUED
the safety, care and cleanliness of the Leased Premises and for the
preservation of good order therein.
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Tenant Landlord
33
RIDER TWO
BASE RENT
Notwithstanding anything to the contrary contained in the Lease, the
parties agree as follows. The term "Lease Year" herein means each twelve
(12) month period or portion thereof during the Term, commencing with the
Commencement Date, without regard to calendar years.
(A) Upon Lease commencement and through July 31, 1998, Base Rent
shall be $15.20 per NRSF per year, $35,831.47 per month.
(B) Commencing on August 1, 1998, Base Rent shall be $16.10 per
NRSF per year, $37,953.07 per month.
(C) Commencing on August 1, 1999, Base Rent shall be $17.00 per
NRSF per year, $40,074.67 per month.
(D) Commencing on August 1, 2000, Base Rent shall be $17.75 per
NRSF per year, $41,842.67 per month.
(E) Commencing on August 1, 2001, Base Rent shall be $18.50 per
NRSF per year, $43,610.67 per month.
(F) Commencing on August 1, 2002, Base Rent shall be $18.80 per
NRSF per year, $44,317.87 per month.
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Tenant Landlord
34
RIDER THREE
LEASEHOLD IMPROVEMENTS AGREEMENT
NONE.
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Tenant Landlord
35
RIDER FOUR
PARKING AGREEMENT
Building: ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇: 511, 611
Landlord: ▇▇▇▇▇ ▇. ▇▇▇▇▇ Date of Lease: July 16, 1997
Tenant: Unison Software Texas, Inc.
So long as the Lease of which this Agreement is a part shall remain in
effect, Landlord will provide Tenant and persons designated by Tenant a
minimum of ninety-four (94) parking spaces in the garage on either an
unreserved and nonexclusive basis, or a reserved basis.
Tenant shall pay $20.00 per space per month as additional rent for each
of the unreserved parking spaces and $40.00 per space per month as additional
rent for each of the reserved parking spaces.
Landlord expressly reserves the right to redesignate parking areas and to
modify the parking structure for other uses or to any extent.
A condition of any parking shall be compliance by the ▇▇▇▇▇▇ with garage
rules and regulations, including any sticker or other identification system
established by Landlord. The following rules and regulations are in effect
until notice is given to Tenant of any change. Landlord reserves the right
to modify and/or adopt such other reasonable and nondiscriminatory rules and
regulations for the garage as it deems necessary for the operation of the
garage. Landlord may refuse to permit any person who violates the rules to
park in the garage, and any violation of the rules shall subject the car to
removal.
RULES AND REGULATIONS
1. Cars must be parked entirely within the stall lines
painted on the floor.
2. All directional signs and arrows must be observed.
3. The speed limit shall be five (5) miles per hour.
4. Parking is prohibited:
(a) in areas not striped for parking;
(b) in aisles;
(c) where "no parking" signs are posted;
(d) in cross hatched areas; and
(e) in such other areas as may be designated by Landlord
or Landlord's agent(s).
5. Parking stickers or any other device or form of identification
supplied by Landlord shall remain the property of the Landlord and shall not
be transferable. There will be a replacement charge payable by Tenant equal
to the amount posted from time to time by Landlord for loss of any magnetic
parking card or parking sticker.
6. Garage managers or attendants are not authorized to make or allow
any exceptions to these Rules and Regulations.
7. Every ▇▇▇▇▇▇ is required to park and lock his own car. All
responsibility for damage to cars or persons is assumed by the ▇▇▇▇▇▇.
8. No intermediate or full-sized cars shall be parked in
parking spaces limited to
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Tenant Landlord
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compact cars.
9. All motorcycles/motorized bicycles are to be parked in the
designated motorcycle area, and will be removed from the property if not in
the designated area.
Persistent failure after notice by Landlord on the part of Tenant or
Tenant's designated parkers to observe the Rules and Regulations above shall
give Landlord the right to terminate Tenant's right to use the parking
structure. No such termination shall create any liability on Landlord or be
deemed to interfere with Tenant's right to quiet possession of its Premises.
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Tenant Landlord
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