2553 DULLES VIEW DRIVE, HERNDON, VIRGINIA DEED OF LEASE BETWEEN SP HERNDON DEVELOPMENT, LP, as Landlord AND GTSI CORP., as Tenant
as Landlord
as Tenant
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1. | DEMISE AND TERM | 2 | ||||||||||
A. | Premises and Term | 2 | ||||||||||
B. | Fourth Floor Space | 2 | ||||||||||
2. | RENT | 3 | ||||||||||
A. | Definitions | 3 | ||||||||||
B. | Components of Rent | 5 | ||||||||||
C. | Payment of Rent | 5 | ||||||||||
D. | Caps on Adjustment Rent | 7 | ||||||||||
E. | Separation of Common Ownership | 7 | ||||||||||
3. | USE | 7 | ||||||||||
4. | CONDITION OF PREMISES | 8 | ||||||||||
A. | Initial Condition | 8 | ||||||||||
B. | Americans With Disabilities Act | 8 | ||||||||||
C. | Environmental | 8 | ||||||||||
5. | BUILDING SERVICES | 8 | ||||||||||
A. | Basic Services | 8 | ||||||||||
B. | Electricity | 9 | ||||||||||
C. | Telephones | 10 | ||||||||||
D. | Additional Services | 11 | ||||||||||
E. | Failure or Delay in Furnishing Services | 11 | ||||||||||
F. | Security | 12 | ||||||||||
G. | Fitness Center | 12 | ||||||||||
H. | Deli | 12 | ||||||||||
I. | Conference Room | 13 | ||||||||||
J. | Concierge Service | 13 | ||||||||||
6. | RULES AND REGULATIONS | 13 | ||||||||||
7. | CERTAIN RIGHTS RESERVED TO LANDLORD | 13 | ||||||||||
8. | MAINTENANCE AND REPAIRS | 14 | ||||||||||
9. | ALTERATIONS | 15 | ||||||||||
A. | Requirements | 15 | ||||||||||
B. | Liens | 16 | ||||||||||
10. | INSURANCE | 16 | ||||||||||
A. | Tenants Insurance | 16 | ||||||||||
B. | Requirements of Tenants Insurance | 17 | ||||||||||
C. | Certificates of Tenants Insurance | 18 | ||||||||||
D. | Failure by Tenant to Carry Insurance | 18 | ||||||||||
E. | Landlords Insurance | 18 | ||||||||||
F. | Increase in Insurance Premiums | 19 |
(continued)
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G. | Cancellation of Insurance | 19 | ||||||||||
H. | Mutual Waiver of Subrogation | 19 | ||||||||||
11. | WAIVER AND INDEMNITY | 20 | ||||||||||
A. | Waiver | 20 | ||||||||||
B. | Tenants Indemnity | 20 | ||||||||||
C. | Landlords Indemnity | 20 | ||||||||||
12. | FIRE AND CASUALTY | 21 | ||||||||||
13. | CONDEMNATION | 22 | ||||||||||
14. | ASSIGNMENT AND SUBLETTING | 22 | ||||||||||
A. | Landlords Consent | 22 | ||||||||||
B. | Standards for Consent | 23 | ||||||||||
C. | Right To Assign Or Sublease To Qualified Affiliate | 23 | ||||||||||
15. | SURRENDER | 24 | ||||||||||
16. | DEFAULTS AND REMEDIES | 24 | ||||||||||
A. | Default | 24 | ||||||||||
B. | Right of Re-Entry | 24 | ||||||||||
C. | Reletting | 25 | ||||||||||
D. | Termination of Lease | 25 | ||||||||||
E. | Other Remedies | 25 | ||||||||||
F. | Bankruptcy | 26 | ||||||||||
G. | Landlords Default | 26 | ||||||||||
H. | Waiver of Trial by Jury | 26 | ||||||||||
17. | HOLDING OVER | 26 | ||||||||||
18. | SECURITY DEPOSIT | 26 | ||||||||||
A. | Security Deposit | 26 | ||||||||||
B. | Replacement Letter of Credit | 27 | ||||||||||
C. | Qualified Issuer | 28 | ||||||||||
19. | INTENTIONALLY DELETED | 28 | ||||||||||
20. | ESTOPPEL CERTIFICATES | 28 | ||||||||||
21. | SUBORDINATION | 28 | ||||||||||
22. | QUIET ENJOYMENT | 29 | ||||||||||
23. | BROKER | 29 |
(continued)
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24. | NOTICES | 30 | ||||||||||
25. | MISCELLANEOUS | 30 | ||||||||||
A. | Successors and Assigns | 30 | ||||||||||
B. | Entire Agreement | 30 | ||||||||||
C. | Time of Essence | 30 | ||||||||||
D. | Execution and Delivery | 30 | ||||||||||
E. | Severability | 30 | ||||||||||
F. | Governing Law | 30 | ||||||||||
G. | Attorneys Fees | 30 | ||||||||||
H. | Force Majeure | 31 | ||||||||||
I. | Captions | 31 | ||||||||||
J. | No Waiver | 31 | ||||||||||
K. | Recording | 31 | ||||||||||
L. | Limitation of Liability | 31 | ||||||||||
M. | Financial Information | 32 | ||||||||||
N. | Anti-Terrorism Representation | 32 | ||||||||||
O. | Consent/Approval | 33 | ||||||||||
P. | Counterparts; Delivery | 33 | ||||||||||
26. | PARKING | 33 | ||||||||||
27. | TENANT IDENTIFICATION | 33 | ||||||||||
A. | Tenant Signs | 33 | ||||||||||
B. | Conditions | 35 | ||||||||||
28. | EXPANSION OPTIONS | 35 | ||||||||||
A. | Initial Expansion Option | 35 | ||||||||||
B. | Available Expansion Option | 36 | ||||||||||
29. | RIGHT OF FIRST REFUSAL | 37 | ||||||||||
A. | Right of First Refusal | 37 | ||||||||||
B. | Refusal Notice | 38 | ||||||||||
C. | Exercise | 38 | ||||||||||
D. | Terms of First Refusal Space | 38 | ||||||||||
E. | Amendment | 40 | ||||||||||
F. | Termination | 40 | ||||||||||
30. | RIGHT OF FIRST OPPORTUNITY | 41 | ||||||||||
A. | Option Space | 41 | ||||||||||
B. | Right of First Opportunity | 41 | ||||||||||
C. | Terms | 42 | ||||||||||
D. | Amendment | 43 | ||||||||||
E. | Termination | 43 |
(continued)
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31. | CONTRACTION OPTION | 43 | ||||||||||
A. | Contraction Option | 43 | ||||||||||
B. | Contraction Space | 43 | ||||||||||
C. | Exercise | 43 | ||||||||||
D. | Contraction Fee | 43 | ||||||||||
E. | Terms | 44 | ||||||||||
F. | Confirmation | 44 | ||||||||||
G. | Termination | 44 | ||||||||||
32. | EXTENSION OPTIONS | 45 | ||||||||||
A. | First Extension Option | 45 | ||||||||||
B. | Second Extension Option | 45 | ||||||||||
C. | Terms | 45 | ||||||||||
D. | Amendment | 48 | ||||||||||
E. | Termination | 48 | ||||||||||
33. | RIGHT OF FIRST OFFER UPON SALE OF THE COMPLEX | 48 | ||||||||||
A. | Offer | 48 | ||||||||||
B. | Offering Notice | 48 | ||||||||||
C. | Price Protection | 49 | ||||||||||
D. | Exclusions | 49 | ||||||||||
E. | Termination | 50 | ||||||||||
34. | USE OF ROOF AND RISERS | 50 | ||||||||||
35. | STANDBY GENERATOR LICENSE | 51 | ||||||||||
A. | License | 51 | ||||||||||
B. | Installation | 51 | ||||||||||
C. | Laws | 51 | ||||||||||
D. | No Interference | 52 | ||||||||||
E. | Fuel | 52 | ||||||||||
F. | Removal | 52 | ||||||||||
G. | Casualty | 52 | ||||||||||
H. | Terms | 52 | ||||||||||
I. | Personal | 52 |
(continued)
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EXHIBIT A Plan of Premises | A-1 | |||
EXHIBIT B Rules and Regulations | B-1 | |||
EXHIBIT C Work Letter Agreement | C-1 | |||
EXHIBIT D Suite Acceptance Agreement | D-1 | |||
EXHIBIT E Form of Letter of Credit | E-1 | |||
EXHIBIT F Location of Parking Spaces | F-1 | |||
EXHIBIT G Location of Generator Pad | G-1 | |||
EXHIBIT H Location of Conference Room | H-1 |
1. | Premises: | A) | Approximately 91,967 rentable square feet consisting of all of floors 8, 7, 6 and 5 and approximately 12,276 rentable square feet on floor 1 of the Building (subject to Section 1B below) | |||||
B) | Approximately 104,243 rentable square feet |
Lease Year | 2. Annual Base Rent | 3. Monthly Base Rent | ||||||
1 | $ | 3,648,504.96 | $ | 304,042.08 | ||||
2 | 3,739,717.68 | 311,643.14 | ||||||
3 | 3,833,210.52 | 319,434.21 | ||||||
4 | 3,929,040.84 | 327,420.07 | ||||||
5 | 4,027,266.84 | 335,605.57 | ||||||
6 | 4,127,948.52 | 343,995.71 | ||||||
7 | 4,231,147.20 | 352,595.60 | ||||||
8 | 4,336,925.88 | 361,410.49 | ||||||
9 | 4,445,349.12 | 370,445.76 | ||||||
10 | 4,556,482.80 | 379,706.90 |
4. | Tenants Proportionate Share: | 29.1778% | ||||||
5. | Base Year: | 2009 | ||||||
6. | Security Deposit: | A letter of credit in the amount of $2,432,336.64 | ||||||
7. | Target Commencement Date: | December 1, 2008 | ||||||
8. | Rent Commencement Date: | June 1, 2009 | ||||||
9. | Scheduled Expiration Date: | May 31, 2019 | ||||||
10. | Brokers: | A) Landlords Broker: | CB Richard Ellis, Inc. | |||||
B) Tenants Broker: | Cushman & Wakefield of Virginia, Inc. |
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Landlord leases to Tenant and Tenant leases from Landlord the premises (the Premises) described in Item 1 of the Schedule and shown on the plan attached hereto as Exhibit A, subject to the covenants and conditions set forth in this Lease, for a term (the Term) commencing on the date (the Commencement Date) Landlord delivers possession of the Premises to Tenant with Landlords Work and Tenants Work (as such terms are defined in the Work Letter Agreement attached hereto as Exhibit C (the Work Letter)) substantially completed, and expiring on May 31, 2019 (the Expiration Date), unless otherwise extended as provided in Section 32 below. For purposes of this Lease, the term Lease Year shall mean the twelve (12) month period beginning on the Rent Commencement Date described in Item 8 of the schedule and each consecutive twelve (12) calendar month period thereafter which falls in whole or in part during the Term. Tenant shall complete and furnish to Landlord, on or before occupancy of the Premises, the Suite Acceptance Agreement attached hereto as Exhibit D, which shall acknowledge the Commencement Date, the Rent Commencement Date and the Expiration Date. Paragraph 1 of the Work Letter sets forth Landlords liability and Tenants remedies for any delay in completion of Landlords Work (as defined in the Work Letter).
Not later than four (4) months after the Effective Date, Tenant shall notify Landlord whether Tenant elects to lease additional space on the fourth floor of the Building upon all of the same terms and conditions as Tenants lease of the Premises described in Item 1 of the Schedule. If Tenant elects to lease such additional space, Tenant must lease a minimum of 5,757 rentable square feet and the configuration of both that part of the Premises on the fourth floor of the Building and any remaining portion of said floor shall be capable of satisfying all applicable building codes and shall otherwise be in a reasonably marketable configuration, which shall include a reasonable portion of the window lines and reasonable access to the elevator lobbies. If Tenant elects to lease such additional space on the fourth floor of the Building, Landlord and Tenant shall promptly enter into an amendment to this Lease reflecting such additional portion of the fourth floor included in the Premises and adjusting the amounts of Base Rent, Tenants Proportionate Share, the Security Deposit and Landlords Contribution (as all such terms are defined herein) accordingly. If Tenant leases less than all of the fourth floor of the Building, Landlord shall be responsible, at its expense, for constructing the common corridor on such floor. The leasehold improvements required to prepare such additional space for Tenants occupancy shall be prepared in accordance with the Work Letter. The amount of the Rentable Area (as hereinafter defined) to be initially leased by Tenant, as expressly set forth in Item 1B of the Schedule, as such amount may be increased pursuant to this Section 1B, is hereinafter referred to as the Initial Rentable Area.
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For purposes of this Lease, the following terms shall have the following meanings:
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Tenant agrees to pay the following amounts to Landlord at Landlords office at the Complex or at such other place as Landlord designates:
The following provisions shall govern the payment of Rent: (i) if this Lease commences or ends on a day other than the first day or last day of a calendar month, respectively, the Monthly Base Rent for the month in which this Lease so begins or ends shall be prorated; if this Lease commences or ends on a day other than the first day or last day of a calendar year, respectively, the Adjustment Rent for the year in which this Lease so begins or ends shall be prorated and the monthly installments shall be adjusted accordingly; (ii) all Rent shall be paid to Landlord without offset or deduction, except as otherwise expressly set forth herein, and the covenant to pay Rent
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Notwithstanding anything in this Section 2 to the contrary, commencing in the second Lease Year, solely for purposes of calculating Adjustment Rent, Controllable Expenses (as defined above) per square foot of Rentable Area of the initial Premises for each Lease Year shall not exceed an amount equal to 104% of the total actual Controllable Expenses per square foot of Rentable Area of the initial Premises for the immediately preceding Lease Year.
It is contemplated that all components of the Complex will retain common ownership during the Term. If, however, there is no longer common ownership of the Building and the North Tower, then (i) Tenants Proportionate Share shall be recalculated based upon the percentage of the Rentable Area of the Premises divided by the Rentable Area of the Building, (ii) Expenses and Taxes shall be based upon the respective amounts incurred with respect to the Building and not the Complex as a whole (provided Landlord may include in Expenses and Taxes amounts based upon the Buildings share of Expenses and Taxes that benefit or apply to the Complex as a whole) and (iii) Landlord and Tenant shall amend this Lease as equitably required to reflect such separation of common ownership.
Tenant agrees that it shall occupy and use the Premises only for general office use and for any other lawful purpose ancillary to general office use and consistent with a Class A office building, and for no other purposes. Tenant shall comply with all federal, state and municipal laws, ordinances, rules and regulations and all covenants, conditions and restrictions of record applicable to Tenants use or occupancy of the Premises. Without limiting the foregoing, except for any hazardous or toxic substances used for ordinary office purposes in compliance with applicable environmental laws, Tenant shall not cause, nor permit, any hazardous or toxic substances to be brought upon, produced, stored, used, discharged or disposed of in, on or about the Premises without the prior written consent of Landlord and then only in compliance with all applicable environmental laws.
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Tenants taking possession of the Premises shall be conclusive evidence that the Premises were in good order and satisfactory condition when Tenant took possession, subject to latent defects specified in a written notice given by Tenant to Landlord during the first eleven (11) months of the Term (failure of Tenant to timely notify Landlord of any such latent defects shall be deemed a waiver and acceptance by Tenant of such latent defects). No agreement of Landlord to alter, remodel, decorate, clean or improve the Premises or the Building (or to provide Tenant with any credit or allowance for the same), and no representation regarding the condition of the Premises or the Building, have been made by or on behalf of Landlord or relied upon by Tenant, except as stated in the Work Letter.
The parties acknowledge that the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and regulations and guidelines promulgated thereunder, as amended and supplemented from time to time (collectively referred to herein as the ADA) establish requirements under Title III of the ADA (Title III) pertaining to business operations, accessibility and barrier removal. To the best of Landlords knowledge, the structural components and common areas of the Complex will be in compliance with the ADA as of the Commencement Date. Any future modifications necessary for the structural components and common areas to be in compliance with the ADA shall be Landlords responsibility (subject to inclusion of the costs of compliance in Expenses as provided in Section 2A(ii)(b)(2)). Tenant acknowledges and agrees that to the extent that Landlord prepares, reviews or approves any of plans or specifications relating to leasehold improvements in the Premises, such action shall in no event be deemed any representation or warranty that the same comply with any requirements of the ADA. After the Commencement Date, Tenant shall be solely responsible for all requirements under the ADA relating to Tenant or any affiliates or persons or entities related to Tenant, operations of Tenant or its affiliates, or the Premises, including, without limitation, requirements under Title I of the ADA pertaining to Tenants employees.
Landlord shall deliver the Premises to Tenant free from any hazardous substances or toxic materials in violation of applicable laws, rules and regulations in effect as of the date of such delivery.
Landlord shall furnish the following services: (i) heating and air conditioning in accordance with the specifications set forth on Schedule 1 attached to the Work Letter, daily from 8:00 A.M. to 7:00 P.M. (Saturday from 9:00 A.M. to 2:00 P.M.), Sundays and Holidays (as hereinafter defined) excepted (provided that by written notice to Landlord not later than August 31, 2008, Tenant may elect that the weekday hours for heating and air conditioning will instead be from 7:00 A.M. to 6:00 P.M.); (ii) water for drinking and hot water for lavatory services, and water at Tenants expense for any full service kitchen in the Premises (subject to Section 5H); (iii) mens and womens restrooms at locations designated by Landlord and in common with
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Landlord agrees to furnish to the Premises, subject to reasonable rules and regulations, electricity for normal lighting and normal office equipment, the cost of which shall be included in Expenses. Tenant shall not, without the prior written consent of Landlord, use any apparatus or device in the Premises which will in any way increase the amount of electricity used above that usually furnished or supplied for the use of the Premises as general office space, nor connect any apparatus or device with electric current lines except through existing electrical outlets in the Premises. If Tenant desires to use electric current in excess of that usually furnished or supplied for the use of the Premises as general office space, Tenant shall request the same from Landlord in writing. Landlord shall not unreasonably refuse such request if sufficient capacity is then available. If such request is granted, Landlord shall cause an electrical current meter to be installed in the Premises to measure the amount of electric current consumed. Tenant agrees to pay within thirty (30) days after demand therefor from Landlord the cost of any such meters and of the installation, maintenance and repair thereof, and the charges for all electric current consumed as shown by said meters in excess of the amount consumed in connection with the use of the Premises as general office space, at the rates charged for such services by the utility furnishing the same, plus any actual and reasonable additional expense incurred in keeping account of the electric current so consumed. If a separate meter is not installed, Tenant agrees to pay the cost for such excess electric current as established by an estimate of the amount of such excess use made by a utility company or an electrical engineer reasonably selected by Landlord.
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Tenant shall be responsible for arranging for its own telecommunications services at the Premises. All telegraph, telephone, and electric connections which Tenant may desire shall be first approved by Landlord in writing before the same are installed, and the location of all wires and the work in connection therewith shall be performed by contractors reasonably approved by Landlord and shall be subject to the direction of Landlord. Landlord reserves the right to reasonably designate and control the entity or entities providing telephone or other communication cable installation, repair and maintenance in the Building and to reasonably restrict and control access to telephone cabinets. Tenant shall be responsible for and shall pay all costs incurred in connection with the installation of telephone cables and related wiring in the Premises, including, without limitation, any hook-up, access and maintenance fees related to the installation of such wires and cables in the Premises and the commencement of services therein, and the maintenance thereafter of such wire and cables; and there shall be included in Expenses all installation, hook-up or maintenance costs incurred by Landlord in connection with telephone cables and related wiring in the Building which are not allocable to any individual users of such service but are allocable to the Building or the Complex generally. If Tenant fails to maintain all telephone cables and related wiring in the Premises and such failure affects or interferes with the operation or maintenance of any other telephone cables or related wiring in the Complex and if such failure further continues for five (5) business days after written notice from Landlord, Landlord or any vendor hired by Landlord may enter into and upon the Premises forthwith and perform such repairs, restorations or alterations as Landlord deems necessary in order to eliminate any such interference (and Landlord may recover from Tenant all of Landlords reasonable costs in connection therewith). Tenant agrees that neither Landlord nor any of its agents or employees shall be liable to Tenant, or any of Tenants employees, agents, customers or invitees or anyone claiming through, by or under Tenant, for any damages, injuries, losses, expenses, claims or causes of action because of any interruption, diminution, delay or discontinuance at any time for any reason in the furnishing of any telecommunications service to the Premises or the Building.
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Landlord shall not be obligated to furnish any services other than those stated above or expressly stated elsewhere in this Lease. If Landlord elects to furnish services requested by Tenant in addition to those stated above (including services at times other than those stated above), Tenant shall pay Landlords then prevailing charges for such services. Notwithstanding the foregoing, after-hours HVAC service shall be provided to Tenant upon request for an additional cost equal to the actual and direct cost increase of any electrical service and any other utility required and the actual incremental cost increase of any direct additional labor required to provide such services. If Tenant shall fail to make any such payment within thirty (30) days after notice from Landlord, Landlord may, in addition to all other remedies available to Landlord, discontinue any additional services. No discontinuance of any such additional service shall result in any liability of Landlord to Tenant or be considered as an eviction or a disturbance of Tenants use of the Premises. In addition, if Tenants concentration of personnel or equipment exceeds the maximum load densities set forth in Schedule 1 attached to the Work Letter, and if such concentration is not corrected within five (5) business days after written notice from Landlord, Landlord may install supplementary air conditioning units in the Premises, and Tenant shall pay for the cost of installation, operation and maintenance thereof, provided that such units serve only the Premises.
Tenant agrees that Landlord shall not be liable for damages for failure or delay in furnishing any service stated above if such failure or delay is caused, in whole or in part, by any one or more of the events stated in Section 25H below, nor shall any such failure or delay be considered to be an eviction or disturbance of Tenants use of the Premises, or relieve Tenant from its obligation to pay any Rent when due, or from any other obligations of Tenant under this Lease. Notwithstanding the foregoing, if as a result of a negligent act or omission of Landlord or any employee of Landlord (as distinguished from an act or omission of Tenant or the occurrence of an event of force majeure (as defined in Section 25H hereof) or the occurrence of a fire or other casualty which is covered by Section 12 hereof), any service to the Premises as described above is not furnished to the Premises and if as a result thereof the Premises, or a material part of the Premises, is rendered untenantable or inaccessible for a period of three (3) consecutive business days, and Tenant does not conduct business in the Premises, or such material part thereof which is rendered untenantable or inaccessible, during such 3-business day period, then as Tenants sole remedy for such failure to furnish such service, Base Rent and Adjustment Rent payable for such portion of the Premises which Tenant does not so occupy shall abate for the period commencing on the date of such interruption and expiring on the date such service is restored or Tenant is able to resume occupancy of the Premises or such material part thereof, as the case may be. (As used herein, the phrase material part shall mean an amount which in Tenants reasonable judgment prevents Tenant from conducting its ordinary and customary business operations.)
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As part of Landlords Work Landlord will install, at Landlords sole cost and expense, a security access system allowing Tenant to control access by the elevators, including the freight elevator, to floors that are leased by Tenant in their entirety. Such security access system will also control access to the Buildings entrances. Landlord shall provide to Tenant at Landlords sole cost and expense seven hundred (700) access cards prior to Tenant taking occupancy of the Premises. Additional and replacement access cards will cost $10.00 per card, subject to reasonable increase of such charge by Landlord from time to time.
Landlord shall operate, or cause to be operated, a fitness center in the Complex (the Fitness Center). The Fitness Center shall commence operations on or before the last to occur of (x) the date Tenant commences full business operations in the Premises and (y) the Target Commencement Date. The Fitness Center shall be sufficiently large to accommodate the anticipated population of the Complex. The Fitness Center shall include an appropriate number of showers, lockers, locker rooms and changing areas for the anticipated population of the Complex. All commercially reasonable costs and expenses incurred by Landlord in managing, operating and maintaining the Fitness Center shall be included in Expenses. There shall be no charge to Tenants employees who primarily work at the Complex for use of the Fitness Center.
Landlord shall operate, or cause to be operated, a deli/café in the Complex comparable to such food service establishments in Class A office buildings in the Reston/Herndon, Virginia submarket (the Deli). The Deli shall, at a minimum, serve breakfast and lunch. The Deli shall commence operations on or before the last to occur of (x) the date Tenant commences full business operations in the Premises and (y) the Target Commencement Date. The Deli shall be sufficiently large to accommodate the anticipated population of the Complex. All commercially reasonable costs and expenses incurred by Landlord in managing, operating and maintaining the Deli shall be included in Expenses, but all gross revenues from the Deli shall be offset against Expenses. In the event, after the initial opening of the Deli, the operator or tenant of the Deli breaches its operating agreement or such operating agreement expires or terminates, Landlord shall within ninety (90) days thereof either resume operations of the Deli or locate and install a subsequent operator to resume the operations of the Deli. So long as Landlord is operating the Deli, Tenant agrees not to operate a competing deli or cafeteria in the Premises.
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Landlord shall make available to the tenants in the Complex a conference room (the Conference Room). The Conference Room shall be at the location shown on Exhibit H attached hereto, provided Landlord may at any time and from time to time relocate the Conference Room to a different location in the Complex, provided such relocated Conference Room shall be of comparable size and quality. All costs and expenses incurred by Landlord in managing, operating and maintaining the Conference Room shall be included in Expenses. There shall be no charge to Tenant for use of the Conference Room, so long as Tenant leaves the Conference Room in a clean and tidy condition. Tenants use of the Conference Room shall be subject to reasonable rules and regulations therefor promulgated by Landlord and to Landlords scheduling requirements.
Tenant shall observe and comply and shall cause its subtenants, assignees, invitees, employees, contractors and agents to observe and comply, with the rules and regulations listed on Exhibit B attached hereto and with such reasonable modifications and additions thereto as Landlord may make from time to time, provided that Tenant is given prior written notice of such modifications and additions. Landlord shall not be liable for failure of any person to obey such rules and regulations. Landlord shall not be obligated to enforce such rules and regulations against any person, and the failure of Landlord to enforce any such rules and regulations shall not constitute a waiver thereof or relieve Tenant from compliance therewith. Landlord will not unreasonably discriminate against Tenant in the enforcement of the rules and regulations. In the event of a conflict between the terms of this Lease and the rules and regulations, the terms of this Lease shall control.
Landlord reserves the following rights, each of which Landlord may exercise without notice to Tenant (except as otherwise provided below) and without liability to Tenant, and the exercise of any such rights shall not be deemed to constitute an eviction or disturbance of Tenants use or possession of the Premises and shall not give rise to any claim for set-off or abatement of rent or any other claim: (a) to change the name or street address of the Building or the Complex or the suite number of the Premises (provided that if such change is not required by any governmental entity and Landlord does not give Tenant at least ninety (90) days prior written notice of such change, Landlord shall reimburse Tenant for the reasonable cost of replacing Tenants stationery then in stock or under uncancellable order which is rendered obsolete by such change); (b) to install, affix and maintain any and all signs on the exterior or interior of the Complex (provided they do not materially affect Tenants views or obstruct Tenants exterior signage described in Section 27A(i) and provided, with respect to signs installed for Landlord (such as, for example, For Rent signs, as opposed to signs installed for another tenant or signs required by law), they do not materially detract from Tenants exterior signage); (c) to make repairs, decorations, alterations, additions, or improvements, whether structural or otherwise, in and about the Complex, and for such purposes and after reasonable prior notice to Tenant (excluding emergencies, when such notice shall not be required except as provided herein) to enter upon the Premises, temporarily close doors, corridors and other areas in the Complex and interrupt or
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Landlord shall maintain in good order and in a manner consistent with Class A office buildings in the Reston/Herndon, Virginia submarket, and repair the structural elements, roof, exterior walls and windows and public common areas of the Complex, and the base building plumbing, mechanical, electrical, life safety and heating, ventilating and air conditioning systems serving the Complex. Subject to Tenants obligations pursuant to this Section 8, Landlord shall also perform any maintenance or make any repairs to the Complex as Landlord may reasonably deem necessary for the safety, operation or preservation of the Complex, or as Landlord may be required or requested to do by any governmental authority or by the order or decree of any court or by any other proper authority. The costs and expenses of Landlords maintenance and repairs to the Complex shall be included in Expenses, except to the extent prohibited pursuant to Section 2A(ii)(b). Tenant, at its expense, shall maintain and keep the Premises in good order and repair at all times during the Term. In addition, Tenant shall reimburse Landlord for the cost of any repairs to the Complex necessitated by the negligent acts or omissions or wilful misconduct of Tenant, its subtenants, assignees, invitees, employees, contractors and agents, to the extent Landlord is not reimbursed for such costs under its insurance policies.
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Tenant shall not make any replacement, alteration, improvement or addition to or removal from the Premises (collectively an alteration) without the prior written consent of Landlord. In the event Tenant proposes to make any alteration, Tenant shall, prior to commencing such alteration, submit to Landlord for prior written consent: (i) detailed plans and specifications; (ii) a list of the names, addresses and copies of contracts for all contractors; (iii) all necessary permits (if any are required) evidencing compliance with all applicable governmental rules, regulations and requirements; provided that Tenant may instead deliver copies of the applications for such permits for Landlords review, with copies of the actual permits to be provided after Tenant has received Landlords consent to such alteration; (iv) certificates of insurance in form and amounts required by Landlord, naming Landlord and, if so requested, Landlords Mortgagee (as hereinafter defined) and property manager as additional insureds; and (v) all other documents and information as Landlord may reasonably request in connection with such alteration. Tenant agrees to pay any out-of-pocket costs reasonably incurred by Landlord in retaining third parties to review Tenants proposed alterations, but there shall be no review fee otherwise paid to Landlord. Neither approval of the plans and specifications nor supervision of the alteration by Landlord shall constitute a representation or warranty by Landlord as to the accuracy, adequacy, sufficiency or propriety of such plans and specifications or the quality of workmanship or the compliance of such alteration with applicable law. Notwithstanding the foregoing, no consent shall be necessary for any alteration (or related alteration) that (i) either (x) costs less than $250,000 (provided such alteration is not part of related alterations which cost, in the aggregate, more than $250,000) or (y) only involves painting and/or carpeting the Premises; (ii) does not require the issuance of a building permit, (iii) does not adversely affect the structural elements of the Complex or the base Building mechanical, electrical or plumbing systems, the common areas of the Complex or the use by other tenants in the Complex of their demised premises, (iv) does not affect the architectural aesthetics of the Complex or the appearance of any part of the Complex outside the Premises or (v) does not involve the introduction or disturbance of any hazardous or toxic materials, other than hazardous or toxic materials used in ordinary construction and office operations in accordance with applicable environmental laws (provided that even if Landlords consent is not necessary for such an alteration, the following provisions of this Section 9A shall apply). As a condition precedent to any alteration, Tenant agrees to obtain and deliver to Landlord written and unconditional waivers of mechanics liens upon the Building for all work, labor and services to be performed, and materials to be furnished, by Tenants contractors and suppliers in connection with such alteration. Each alteration shall be performed in a good and workmanlike manner and, except for alterations not requiring Landlords consent, except in accordance with the plans and specifications approved by Landlord, and shall meet or exceed the standards for construction and quality of materials
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Upon completion of any alteration, Tenant shall promptly furnish Landlord with full and final waivers of lien covering all labor and materials included in such alteration and all other documents required to eliminate any mechanics lien with respect to the alteration. Tenant shall not permit any mechanics lien to be filed against the Complex, or any part thereof, arising out of any alteration performed, or alleged to have been performed, by or on behalf of Tenant. If any such lien is filed, Tenant shall within fifteen (15) days thereafter have such lien released of record or deliver to Landlord a bond in form, amount, and issued by a surety satisfactory to Landlord, indemnifying Landlord against all costs and liabilities resulting from such lien and the foreclosure or attempted foreclosure thereof. If Tenant fails to have such lien so released or to deliver such bond to Landlord, Landlord, without investigating the validity of such lien, may pay or discharge the same; and Tenant shall reimburse Landlord upon demand for the amount so paid by Landlord, including Landlords actual and reasonable expenses and attorneys fees.
Tenant shall throughout the entire Term, at its sole cost and expense, take out and keep in full force and effect, the following insurance:
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Each Accident | $500,000 | |
DiseasePolicy Limit | $500,000 | |
DiseaseEach Employee | $500,000; and |
All of Tenants policies of insurance shall:
-17-
Certificates of insurance or if required by Landlord certified copies of each such insurance policy will be delivered to Landlord as soon as practicable after the placing of the required insurance and in any event within twenty (20) days of the effective date of coverage. No review or approval of any such insurance certificate by Landlord shall derogate from or diminish Landlords rights or Tenants obligations contained in this Section 10.
If Tenant fails to take out or keep in force any insurance referred to in this Section 10, or should any such insurance not be approved by Landlord and should Tenant not commence diligently to rectify (and thereafter proceed diligently to rectify) the situation within three (3) business days after written notice by Landlord to Tenant (stating, if Landlord does not approve of such insurance, the reasons therefore), Landlord has the right without assuming any obligation in connection therewith to effect such insurance at the sole cost of Tenant and all outlays by Landlord shall be paid by Tenant to Landlord within thirty (30) days after demand as additional Rent without prejudice to any other rights and remedies of Landlord under this Lease.
Landlord shall at all times throughout the Term carry:
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Tenant shall not keep, use, sell or offer to sell in or upon the Premises any article, which may be prohibited by any fire insurance policy in force from time to time covering the Premises or the Complex. If:
(i) | the occupation of the Premises; | ||
(ii) | the conduct of business in the Premises; or | ||
(iii) | any act or omission of Tenant in the Complex or any part thereof, |
If any insurance policy upon the Complex or any part thereof shall be cancelled or shall be threatened by the insurer to be cancelled or the coverage thereunder reduced in any way by the insurer by reason of the use or occupation of the Premises or any part thereof by Tenant or by any assigns or subtenant of Tenant, or by anyone permitted by Tenant to be upon the Premises, Tenant shall remedy the condition giving rise to cancellation, threatened cancellation or reduction of coverage within seventy-two (72) hours after notice thereof by Landlord.
Landlord and Tenant each agree that neither Landlord nor Tenant (nor their respective successors or assigns) will have any claim against the other for any loss, damage or injury to property which is covered by insurance carried by either party (or which would have been covered if the respective party had carried the insurance required by this Lease), notwithstanding the negligence of either party in causing the loss. Each party agrees to obtain an agreement from its insurer permitting the foregoing waiver if the policy does not expressly permit a waiver of subrogation.
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Landlord shall not be liable for any death or injury arising from or out of any occurrence in, upon, at or relating to the Complex, or damage to property of Tenant or of others located on the Premises or elsewhere in the Complex, nor shall it be responsible for any loss of or damage to any property of Tenant or others from any cause whatsoever, except for any such death, injury, loss or damage which results from the negligent act or omission of Landlord, its agents, servants or employees or other persons for whom it may at law be responsible, provided that in no event shall Landlord be responsible for any loss, injury or damage contemplated by Section 10I, or for any indirect or consequential damages sustained by Tenant or others. Without limiting the generality of the foregoing, Landlord shall not be liable for any injury or damage to persons or property resulting from fire, explosion, dampness, falling plaster, falling ceiling tile, falling ceiling fixtures or from steam, gas, electricity, water, rain, flood, snow, ice or leaks from any rentable premises or from the pipes, sprinklers, appliances, plumbing works, roof, windows or subsurface of any floor or ceiling of the Complex or from the street or any other place or by any other cause whatsoever. Landlord shall not be liable for any such damage caused by other tenants or persons in the Complex or by occupants of adjacent property thereto, or the public, or caused by construction or by any private, public or quasi-public work. All property of Tenant kept or stored on the Premises shall be so kept or stored at the risk of Tenant only and Tenant shall indemnify Landlord and save it harmless from any claims arising out of any damage to the same including, without limitation, any subrogation claims by Tenants insurers.
Except as provided in Section 10I but notwithstanding any other provision of this Lease, Tenant shall indemnify Landlord and save it harmless from and against any loss (including loss of Base Rent and Adjustment Rent), claims, actions, damages, liability and expenses in connection with loss of life, personal injury, damage to property or any other loss or injury whatsoever arising out of this Lease, or any occurrence in, upon or at the Premises, or the occupancy or use by Tenant of the Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant or any of Tenants employees, agents, contractors, licensees, invitees, subtenants or assigns. If Landlord shall, without fault on its part, be made a party of any litigation commenced by or against Tenant, then Tenant shall protect, indemnify and hold Landlord harmless and shall pay all costs, expenses and reasonable legal fees incurred or paid by Landlord in connection with such litigation.
Except as provided in Section 10I but notwithstanding any other provision of this Lease, Landlord shall indemnify Tenant and save it harmless from and against any loss, claims, actions, damages, liability and expenses in connection with loss of life, personal injury, damage to property or any other loss or injury whatsoever arising out of any negligent act or omission or willful misconduct of Landlord. If Tenant shall, without fault on its part, be made a party of any litigation commenced by or against Landlord, then Landlord shall protect, indemnify and hold Tenant harmless and shall pay all costs, expenses and reasonable legal fees incurred or paid by Tenant in connection with such litigation.
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Upon a fire or other casualty affecting the Building, Landlord, with reasonable diligence, shall restore the Building. Notwithstanding the foregoing, if (i) all or a substantial part of the Premises or the Building is rendered untenantable by reason of fire or other casualty, or (ii) a fire or casualty occurs during the last twelve (12) months of the Term, Landlord may, at its option, either restore the Premises and the Building, or terminate this Lease effective as of the date of such fire or other casualty. Landlord agrees to give Tenant written notice within sixty (60) days after the occurrence of any such fire or other casualty designating whether Landlord elects to so restore or terminate this Lease. If Landlord elects to terminate this Lease, Rent shall be paid through and apportioned as of the date of such fire or other casualty. If Landlord elects to restore, Landlords obligation to restore the Premises shall be limited to restoring those improvements in the Premises existing as of the date of such fire or other casualty which were made at Landlords expense (and those improvements made at Tenants expense if and to the extent insurance proceeds are made available to Landlord for such improvements) and shall exclude Tenants Personal Property and any fixtures, additions, alterations or improvements in or to the Premises which were made at Tenants expense and for which insurance proceeds are not made available to Landlord. If Landlord elects to restore, Base Rent and Adjustment Rent shall abate for that part of the Premises which is untenantable on a per diem basis from the date of such fire or other casualty until Landlord has substantially completed its repair and restoration work, provided that Tenant does not occupy such part of the Premises during said period. Notwithstanding anything contained in this Section 12 to the contrary, within sixty (60) days after the date of any fire or other casualty which renders all or a substantial part of the Premises or the Building untenantable, Landlord shall provide to Tenant in writing Landlords good faith estimate of the time required by Landlord to restore the Premises (Landlords Restoration Estimate). If Landlords Restoration Estimate exceeds two hundred forty (240) days from the date of such fire or casualty (or if, during the last year of the Term, more than 33% of the Premises are rendered untenantable by fire or casualty), then Tenant shall have the right, exercisable by written notice to Landlord within thirty (30) days after delivery of Landlords Restoration Estimate, to terminate this Lease as of the date of such fire or other casualty. Furthermore, if neither party elects to terminate this Lease as provided above and Landlord fails to substantially complete the restoration of the Premises within one hundred twenty (120) days after the time period set forth in Landlords Restoration Estimate (subject to delays caused by or attributable to Tenant or its agents, employees or contractors or to events of the type described in Section 25H), as Tenants sole and exclusive remedy for such delay in substantial completion of the restoration, Tenant shall have the right, exercisable by written notice to Landlord within 15 days after the expiration of such 120-day period, to terminate this Lease as of the date of such fire or other casualty. Notwithstanding the foregoing, Tenant shall have no right to terminate this Lease if the fire or other casualty was caused, in whole or in part, by the gross negligence or intentional misconduct of Tenant or Tenants agents, employees, contractors, invitees, subtenants or assigns. Base Rent and Adjustment Rent for the Premises shall not resume prior to the restoration date estimated by Landlord unless Tenant actually resumes use and occupancy of the Premises prior to such date.
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If a material portion of the Premises or the Building is rendered untenantable by reason of a condemnation (or by a deed given in lieu thereof), then either party may terminate this Lease by giving written notice of termination to the other party within thirty (30) days after such condemnation, in which event this Lease shall terminate effective as of the date which is the day immediately preceding the date of such condemnation. If this Lease so terminates, Rent shall be paid through and apportioned as of such termination date. If such condemnation does not render the Premises or the Building untenantable, this Lease shall continue in effect and Landlord shall promptly restore the portion not condemned to the extent reasonably possible to the condition existing prior to the condemnation. In such event, however, Landlord shall not be required to expend an amount in excess of the proceeds received by Landlord from the condemning authority. Landlord reserves all rights to compensation for any condemnation. Tenant hereby assigns to Landlord any right Tenant may have to such compensation, and Tenant shall make no claim against Landlord or the condemning authority for compensation for termination of Tenants leasehold interest under this Lease or interference with Tenants business; provided, however, Tenant may pursue a separate claim in a separate proceeding against the condemning authority for Tenants moving costs and the book value of any leasehold improvements to the Premises paid for by Tenant so long as such claim will not affect or diminish any award or compensation otherwise recoverable by Landlord.
Tenant shall not, without the prior written consent of Landlord (which consent to a proposed assignment or sublease shall not be unreasonably withheld, conditioned or delayed as provided in Section 14B): (i) assign, convey, mortgage or otherwise transfer this Lease or any interest hereunder, or sublease the Premises, or any part thereof, whether voluntarily or by operation of law; or (ii) permit the use of the Premises by any person other than Tenant and its employees, subsidiaries and affiliates (and Tenants clients and contractors in connection with Tenant providing services to or receiving services from such clients and contractors, respectively). As provided below, Landlord shall not unreasonably withhold or condition its consent to any proposed assignment or sublease. Any such transfer, sublease or use described in the preceding sentence (a Transfer) occurring without the prior written consent of Landlord shall be void and of no effect. Landlords consent to any Transfer shall not constitute a waiver of Landlords right to withhold its consent to any future Transfer. Landlords consent to any Transfer or acceptance of rent from any party other than Tenant shall not release Tenant from any covenant or obligation under this Lease. Landlord may require as a condition to its consent to any assignment of this Lease that the assignee execute an instrument in which such assignee assumes the obligations of Tenant hereunder. For the purposes of this paragraph, the transfer (whether direct or indirect) of all or a majority of the capital stock in a corporate Tenant (other than the shares of the capital stock of a corporate Tenant whose stock is publicly traded) or the merger, consolidation or reorganization of such Tenant and the transfer of all or any general partnership interest in any partnership Tenant shall be considered a Transfer. Landlord shall have no recapture rights in connection with a Transfer.
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If Tenant desires the consent of Landlord to a Transfer, Tenant shall submit to Landlord, at least thirty (30) days prior to the proposed effective date of the Transfer, a written notice which includes such information as Landlord may reasonably require about the proposed Transfer and the transferee. Landlord shall not unreasonably withhold, condition or delay its consent to any assignment or sublease. Landlord shall not be deemed to have unreasonably withheld its consent if, in the reasonable judgment of Landlord: (i) the tenancy or occupancy of the transferee may result in an adverse affect on the Class A image or reputation of the Complex; (ii) the financial condition of the transferee is such that it may not be able to perform its obligations in connection with the assignment or sublease; (iii) the purpose for which the transferee intends to use the Premises or portion thereof or the identity of the transferee is in violation of the terms of this Lease or the lease of any other tenant in the Complex; (iv) the transferee is a tenant of the Complex and Landlord has suitable space in the Complex available to lease to such party; or (v) any other reasonable basis. If Landlord consents to any Transfer, Tenant shall pay to Landlord fifty percent (50%) of all rent and other consideration received by Tenant in excess of the Rent paid by Tenant hereunder for the portion of the Premises so transferred (after deducting therefrom the amount of all reasonable and ordinary costs incurred in connection with the Transfer, to include but not be limited to, brokerage commissions, marketing expenses, free rent, cash allowances and tenant improvement costs actually paid by Tenant in connection with such Transfer). Such rent shall be paid as and when received by Tenant. In addition, Tenant shall pay to Landlord any attorneys fees and expenses incurred by Landlord in connection with any proposed Transfer, whether or not Landlord consents to such Transfer (not to exceed $2,000 for a routine transaction using Landlords prescribed forms).
Notwithstanding anything contained in this Section 14 to the contrary, provided Tenant is not then in Material Default (as hereinafter defined) under this Lease, Tenant shall have the right to assign this Lease or sublease the Premises, or any part thereof, to a Qualified Affiliate (as hereinafter defined) without the prior written consent of Landlord and without Landlord having the right to receive excess consideration or the right to recapture any part of the Premises, but only upon at least ten (10) days prior written notice to Landlord and subject to all of the other provisions of this Lease, specifically including, without limitation, the continuation of liability of Tenant under this Lease. Upon an assignment of this Lease to a Qualified Affiliate, the Qualified Affiliate shall assume the obligations of the tenant under this Lease from and after the effective date of such assignment pursuant to a written assumption agreement executed and delivered to Landlord prior to the effective date of such assignment. Affiliate shall mean (i) any corporation or other entity controlling, controlled by or under the common control with Tenant, (ii) the surviving entity formed as a result of a merger or consolidation with Tenant or (iii) any entity that purchases all or substantially all of Tenants assets or equity interests. The word control, as used herein, shall mean the power to direct or cause the direction of the management and policies of the controlled entity through ownership of more than 50% of the voting securities in such controlled entity. An Affiliate shall be a Qualified Affiliate only if it has a tangible net worth and liquidity as of the effective date of such transfer equal to or greater than that of the originally-named Tenant (as measured immediately prior to the assignment). Nothing contained in this Section 14C shall permit an assignment of this Lease or the subleasing of the Premises to a Qualified Affiliate that is disreputable or otherwise might result in an adverse affect on the Class A image or reputation of the Complex, as reasonably determined by Landlord.
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Upon termination of the Term or Tenants right to possession of the Premises, Tenant shall return the Premises to Landlord in good order and condition, ordinary wear and tear and damage by fire or other casualty excepted. Except as otherwise provided in Sections 27, 34 and 35, Tenant shall not, and shall not be required to, remove any permanent leasehold improvements, including, without limitation, drywall partitions, carpets, lighting fixtures, doors, hardware, ceilings, wiring, voice/data cabling, conduit, sleeves, drop ceilings or raised access floors. Tenant shall remove Tenants Personal Property prior to the termination of the Term or Tenants right to possession of the Premises. If Tenant does not remove such items, Tenant shall be conclusively presumed to have conveyed the same to Landlord without further payment or credit by Landlord to Tenant; or at Landlords sole option and upon at least thirty (30) days written notice to Tenant, such items shall be deemed abandoned, in which event Landlord may cause such items to be removed and disposed of at Tenants expense, without notice to Tenant and without obligation to compensate Tenant.
The occurrence of any of the following shall constitute a default (a Default) by Tenant under this Lease: (i) Tenant fails to pay any Rent when due (a Monetary Default) (and, only with respect to the first two (2) of such defaults within any 12-month period, such default shall continue for ten (10) days after written notice to Tenant); (ii) Tenant fails to perform any other provision of this Lease not otherwise specifically addressed in this Section 16A and such failure is not cured within thirty (30) days (or immediately if the failure involves a hazardous condition) after notice from Landlord (or if such failure not involving a hazardous condition will take longer than thirty (30) days to cure, if Tenant fails to immediately commence curing such failure or thereafter fails to diligently pursue such cure to completion); (iii) the leasehold interest of Tenant is levied upon or attached under process of law; (iv) Tenant dissolves without the permitted assignment and assumption of this Lease by Tenants successor in interest in compliance with Section 14; (v) Tenant fails to deliver an instrument described in Section 20 or Section 21 within the time period set forth therein; or (vi) any voluntary or involuntary proceedings are filed by or against Tenant or any guarantor of this Lease under any bankruptcy, insolvency or similar laws and, in the case of any involuntary proceedings, are not dismissed within ninety (90) days after filing. Any Monetary Default and any other material Default by Tenant is referred to herein as a Material Default.
Upon the occurrence of a Default, Landlord may elect to terminate this Lease, or, without terminating this Lease, terminate Tenants right to possession of the Premises. Upon any such termination, Tenant shall immediately surrender and vacate the Premises and deliver possession thereof to Landlord. Tenant grants to Landlord the right to enter and repossess the Premises and to expel Tenant and any others who may be occupying the Premises and to remove any and all property therefrom, without being deemed in any manner guilty of trespass and without relinquishing Landlords rights to Rent or any other right given to Landlord hereunder or by operation of law.
-24-
If Landlord terminates Tenants right to possession of the Premises without terminating this Lease, Landlord may relet the Premises or any part thereof. In such case, Landlord shall use reasonable efforts to relet the Premises on such terms as Landlord shall reasonably deem appropriate; provided, however, Landlord may first lease Landlords other available space and shall not be required to accept any tenant offered by Tenant or to observe any instructions given by Tenant about such reletting. Tenant shall reimburse Landlord for the reasonable costs and expenses of reletting the Premises including, but not limited to, all brokerage, advertising, legal, alteration, redecorating, repair and other expenses incurred to secure a new tenant for the Premises, provided Tenant shall not be liable for costs and expenses of reletting to the extent they apply to a re-letting that extends beyond the balance of the scheduled Term. In addition, if the consideration collected by Landlord upon any such reletting, after payment of the expenses of reletting the Premises which have not been reimbursed by Tenant, is insufficient to pay monthly the full amount of the Rent, Tenant shall pay to Landlord the amount of each monthly deficiency as it becomes due. If such consideration is greater than the amount necessary to pay the full amount of the Rent, the full amount of such excess shall be retained by Landlord and shall in no event be payable to Tenant.
If Landlord terminates this Lease, Landlord may recover from Tenant and Tenant shall pay to Landlord, on demand, as and for liquidated and final damages, an accelerated lump sum amount equal to the amount by which Landlords estimate of the aggregate amount of Rent owing from the date of such termination through the Expiration Date plus Landlords estimate of the aggregate expenses of reletting the Premises, exceeds Landlords estimate of the fair rental value of the Premises for the same period (after deducting from such fair rental value the time needed to relet the Premises and the amount of concessions which would normally be given to a new tenant), both discounted to present value at the rate of 7% per annum.
Landlord may but shall not be obligated to perform any obligation of Tenant under this Lease; and, if Landlord so elects, all reasonable costs and expenses paid by Landlord in performing such obligation, together with interest at the Default Rate, shall be reimbursed by Tenant to Landlord on demand. Any and all remedies set forth in this Lease: (i) shall be in addition to any and all other remedies Landlord may have at law or in equity, (ii) shall be cumulative, and (iii) may be pursued successively or concurrently as Landlord may elect. The exercise of any remedy by Landlord shall not be deemed an election of remedies or preclude Landlord from exercising any other remedies in the future.
-25-
If Tenant becomes bankrupt, the bankruptcy trustee shall not have the right to assume or assign this Lease unless the trustee complies with all requirements of the United States Bankruptcy Code; and Landlord expressly reserves all of its rights, claims, and remedies thereunder.
If Landlord fails to perform or observe any of the terms, covenants or conditions contained in this Lease on its part to be performed or observed within thirty (30) days after written notice of default from Tenant or, when more than thirty (30) days shall be required because of the nature of the default, if Landlord shall fail to proceed diligently to cure such default after written notice thereof from Tenant, said failure shall constitute a default by Landlord under this Lease, and Tenant shall, except as expressly set forth in this Lease to the contrary, have the right to pursue any and all equitable and legal remedies against Landlord under applicable law. Nothing in this Section 17G shall be deemed to grant Tenant any right to cure such a default by Landlord or to offset any amount against Rent absent an authorizing order from a court of competent jurisdiction.
Landlord and Tenant waive trial by jury in the event of any action, proceeding or counterclaim brought by either Landlord or Tenant against the other in connection with this Lease.
If Tenant retains possession of the Premises after the expiration or termination of the Term or Tenants right to possession of the Premises, Tenant shall pay Rent during such holding over at 125% of the rate in effect immediately preceding such holding over computed on a monthly basis for each month or partial month that Tenant remains in possession. If Tenant so retains possession of the Premises for more than ninety (90) days after both (x) the expiration or termination of the Term and (y) written notice from Landlord that Landlord has entered into a lease for all or a portion of the Premises, then Tenant shall also pay, indemnify and defend Landlord from and against all claims and damages, consequential as well as direct, sustained by reason of Tenants holding over. With Landlords prior written consent, but not otherwise, Tenant shall have the right to hold over without penalty. The provisions of this Section do not waive Landlords right of re-entry or right to regain possession by actions at law or in equity or any other rights hereunder, and any receipt of payment by Landlord shall not be deemed a consent by Landlord to Tenants remaining in possession or be construed as creating or renewing any lease or right of tenancy between Landlord and Tenant.
At the time of signing this Lease, Tenant shall deposit with Landlord an unconditional, irrevocable letter of credit in Landlords favor (the LOC) in the amount of $2,432,336.64, which is the equivalent of eight (8) installments of Monthly Base Rent for the initial Premises. The LOC shall be freely assignable by Landlord at Landlords cost, issued by a Qualified Issuer (as hereinafter defined) approved by Landlord, drawable in the Washington, D.C. metropolitan area, and in the form of the letter of credit attached hereto as Exhibit E. The LOC is to be retained by Landlord as security for the faithful performance and observance by Tenant of the covenants, agreements and conditions of this Lease. The LOC and any proceeds drawn thereunder or any other cash or security
-26-
Tenant shall deposit with Landlord not later than thirty (30) days prior to the expiration date of the original LOC deposited by Tenant hereunder (and not later than thirty (30) days prior to the expiration date of each replacement LOC deposited by Tenant hereunder), a replacement LOC in form, content and amount identical to the original LOC and issued by a Qualified Issuer approved by Landlord. If Tenant fails to timely deposit any such replacement LOC with Landlord, then Landlord may draw the entire proceeds of the LOC then on deposit with Landlord and the proceeds so drawn shall constitute and comprise part of the Security Deposit and may be held, transferred and applied by Landlord in accordance with the provisions of this Section 18. The LOC in effect during the last year of the Term shall not expire less than thirty (30) days after the scheduled Expiration Date of the Term. The LOC will be reduced effective as of the third anniversary of the Rent Commencement Date to 75% of its prior amount if no Material Default has occurred by Tenant under this Lease prior to such date. The LOC will be reduced effective as of the fourth anniversary of the Rent Commencement Date to 50% of its prior amount (i.e., the amount immediately prior to such fourth anniversary) if no Material Default has occurred by Tenant under this Lease prior to such date. The LOC will be returned to Tenant on the fifth anniversary of the Rent Commencement Date if no Material Default has occurred by Tenant under this Lease prior to such date.
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For purposes of this Lease, Qualified Issuer means SunTrust Bank or any other commercial bank which, at the particular time its status as a Qualified Issuer is relevant hereunder, has total assets of at least U.S. $5 billion and is reasonably acceptable to Landlord. If at any time after issuance of the LOC (or any replacement LOC), the issuing bank fails to be a Qualified Issuer or is not otherwise financially sound in Landlords reasonable judgment, the LOC or replacement LOC, as the case may be, upon written notice from Landlord to Tenant, shall be immediately reissued by a Qualified Issuer approved by Landlord, which reissuance shall be in accordance with the provisions of this Lease.
Tenant agrees that, from time to time upon not less than fifteen (15) days prior request by Landlord, Tenant shall execute and deliver to Landlord a written certificate certifying: (i) that this Lease is unmodified and in full force and effect (or if there have been modifications, a description of such modifications and that this Lease as modified is in full force and effect); (ii) the dates to which Rent has been paid; (iii) that Tenant is in possession of the Premises, if that is the case; (iv) that Landlord is not in default under this Lease, or, if Tenant believes Landlord is in default, the nature thereof in detail; (v) that Tenant has no off-sets or defenses to the performance of its obligations under this Lease (or if Tenant believes there are any off-sets or defenses, a full and complete explanation thereof); (vi) that the Premises have been completed in accordance with the terms and provisions of this Lease and the Work Letter and Tenant has accepted the Premises and the condition thereof and of all improvements thereto and has no claims against Landlord or any other party with respect thereto (or if that is not the case, a description thereof); and (vii) such additional matters as may be requested by Landlord, it being agreed that such certificate may be relied upon by any prospective purchaser, mortgagee or other person having or acquiring an interest in the Building. If Tenant fails to execute and deliver any such certificate within fifteen (15) days after request, and such failure continues more than three (3) business days after a second notice from Landlord, then such failure shall constitute a Default hereunder.
This Lease is and shall be expressly subject and subordinate at all times to (a) any present or future ground, underlying or operating lease of the Building, and all amendments, renewals and modifications to any such lease, and (b) the lien of any present or future mortgage or deed of trust encumbering fee title to the Building and/or the leasehold estate under any such lease. If any such mortgage or deed of trust be foreclosed, or if any such lease be terminated, upon request of the mortgagee, beneficiary or lessor, as the case may be (a Mortgagee), Tenant will attorn to the purchaser at the foreclosure sale or to the lessor under such lease, as the case may be. The foregoing provisions are declared to be self-operative and no further instruments shall be required to effect such subordination and/or attornment; provided, however, that Tenant agrees upon request by any such Mortgagee or purchaser at foreclosure, as the case may be, to execute such subordination and/or attornment instruments as may be reasonably required by such person to confirm such subordination and/or attornment on the form customarily used by such party. Notwithstanding the foregoing to the contrary, any such Mortgagee may elect to
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As long as no Default exists, Tenant shall peacefully and quietly have and enjoy the Premises for the Term, free from interference by Landlord, subject, however, to the provisions of this Lease. The loss or reduction of Tenants light, air or view will not be deemed a disturbance of Tenants occupancy of the Premises nor will it affect Tenants obligations under this Lease or create any liability of Landlord to Tenant.
Tenant represents to Landlord that Tenant has dealt only with the brokers set forth in Item 10 of the Schedule (the Brokers) in connection with this Lease and that, insofar as Tenant knows, no other broker negotiated this Lease or is entitled to any commission in connection herewith. Tenant agrees to indemnify, defend and hold Landlord, its property manager and their respective employees harmless from and against all claims, demands, actions, liabilities, damages, costs and expenses (including reasonable attorneys fees) arising from a claim for a fee or commission made by any broker, other than the Brokers, claiming to have acted by or on behalf of Tenant in connection with this Lease. Landlord agrees to pay the Brokers a commission in accordance with the separate agreement between Landlord and the Brokers. Tenant agrees that it will not retain any broker, other than Tenants Broker set forth in Item 10 of the Schedule, to act by or on behalf of Tenant in connection with Tenants exercise of its rights set forth in Sections 1B, 28, 29 or 30 prior to the first anniversary of the Effective Date.
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All notices and demands to be given by one party to the other party under this Lease shall be given in writing, mailed or delivered to Landlord or Tenant, as the case may be, at the address set forth above (in the case of Tenant, such address shall be applicable only prior to the Commencement Date and Tenants address shall be the Premises following the Commencement Date) or at such other address as either party may hereafter designate. Separate notices to Tenant shall be delivered to the attention of the General Counsel and to the Chief Financial Officer, also at the Premises or such other address as Tenant may hereafter designate. Notices shall be delivered by hand or by United States certified or registered mail, postage prepaid, return receipt requested, or by a nationally recognized overnight air courier service. Notices shall be considered to have been given upon the earlier to occur of actual receipt, three (3) business days after posting in the United States mail or the first (1st) business day after delivery to the courier service.
Subject to Section 14 of this Lease, each provision of this Lease shall extend to, bind and inure to the benefit of Landlord and Tenant and their respective legal representatives, successors and assigns; and all references herein to Landlord and Tenant shall be deemed to include all such parties.
This Lease, and the exhibits attached hereto which are hereby made a part of this Lease, represent the complete agreement between Landlord and Tenant; and Landlord has made no representations or warranties except as expressly set forth in this Lease. No modification or amendment of or waiver under this Lease shall be binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant.
Time is of the essence of this Lease and each and all of its provisions.
Submission of this instrument for examination or signature by Tenant does not constitute a reservation of space or an option for lease, and it is not effective until execution and delivery by both Landlord and Tenant.
The invalidity or unenforceability of any provision of this Lease shall not affect or impair any other provisions.
This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia.
The nonprevailing party shall pay the prevailing party all costs and expenses, including reasonable attorneys fees, incurred by such prevailing party in successfully enforcing the nonprevailing partys obligations or successfully defending the prevailing partys rights under this Lease against the nonprevailing party.
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Landlord shall not be in default hereunder and Tenant shall not be excused from performing any of its obligations hereunder if Landlord is prevented from performing any of its obligations hereunder due to any accident, breakage, strike, shortage of materials, acts of God or other causes beyond Landlords reasonable control. Tenant shall not be in default hereunder and Landlord shall not be excused from performing any of its obligations hereunder if Tenant is prevented from performing any of its obligations hereunder due to any accident, breakage, strike, shortage of materials, acts of God or other causes beyond Tenants reasonable control (provided, however, no cause of any sort shall excuse Tenant from its obligations to pay Rent when due and to surrender the Premises upon the expiration of the Term as provided herein).
The headings and titles in this Lease are for convenience only and shall have no effect upon the construction or interpretation of this Lease.
No receipt of money by Landlord from Tenant after termination of this Lease or after the service of any notice or after the commencing of any suit or after final judgment for possession of the Premises shall renew, reinstate, continue or extend the Term or affect any such notice or suit. No waiver of any default of Tenant shall be implied from any omission by Landlord to take any action on account of such default if such default persists or be repeated, and no express waiver shall affect any default other than the default specified in the express waiver and then only for the time and to the extent therein stated. No payment of money by Tenant to Landlord shall be deemed to be a waiver of Tenants right to dispute the amount claimed by Landlord to be due. No waiver of any default of Landlord shall be implied from any omission by Tenant to take any action on account of such default if such default persists or be repeated, and no express waiver shall affect any default other than the default specified in the express waiver and then only for the time and to the extent therein stated.
Tenant shall not record this Lease but may record a memorandum of this Lease, in a form reasonably acceptable to Landlord, in the official records.
Any liability of Landlord under this Lease shall be limited solely to its equity interest in the Complex, and in no event shall any personal liability be asserted against Landlord in connection with this Lease nor shall any recourse be had to any other property or assets of Landlord.
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Tenant shall, upon Landlords written request from time to time, but no more frequently than twice per year, furnish Landlord with Tenants most recent financial statements (audited if available), as well as any other written information reasonably requested by Landlord relating to Tenants creditworthiness and liquidity. Tenant represents and warrants that all such financial information furnished to Landlord will be true and correct in all material respects. Landlord shall keep such financial information confidential, other than disclosure to purchasers and lenders (prospective and actual), and will request all purchasers and lenders (prospective and actual) to whom Landlord divulges such information to likewise keep the information confidential. Landlord may also disclose such information in connection with any legal proceeding between Landlord and Tenant. The provisions of this Section 25M shall not apply if and for so long as securities of Tenant are traded on a national stock exchange and Tenants financial information is thus publicly available.
Neither Landlord nor Tenant nor any of their respective affiliates or constituents nor, to the best of Landlords or Tenants knowledge, any brokers or other agents of same, have engaged in any dealings or transactions, directly or indirectly, (i) in contravention of any U.S., international or other money laundering regulations or conventions, including, without limitation, the United States Bank Secrecy Act, the United States Money Laundering Control Act of 1986, the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, Trading with the Enemy Act (50 U.S.C. §1 et seq., as amended), or any foreign asset control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto, or (ii) in contravention of Executive Order No. 13224 dated September 24, 2001 issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), as may be amended or supplemented from time to time (Anti-Terrorism Order) or on behalf of terrorists or terrorist organizations, including those persons or entities that are included on any relevant lists maintained by the United Nations, North Atlantic Treaty Organization, Organization of Economic Cooperation and Development, Financial Action Task Force, U.S. Office of Foreign Assets Control, U.S. Securities & Exchange Commission, U.S. Federal Bureau of Investigation, U.S. Central Intelligence Agency, U.S. Internal Revenue Service, or any country or organization, all as may be amended from time to time. Neither Landlord nor Tenant nor any of their respective affiliates or constituents nor, to the best of Landlords or Tenants knowledge, any brokers or other agents of same, (i) are or will be conducting any business or engaging in any transaction with any person appearing on the U.S. Treasury Departments Office of Foreign Assets Control list of restrictions and prohibited persons, or (ii) are a person described in section 1 of the Anti-Terrorism Order, and to the best of Landlords and Tenants knowledge neither Landlord nor Tenant nor any of their respective affiliates have engaged in any dealings or transactions, or otherwise been associated with any such person. If at any time this representation becomes false than it shall be considered a default under this Lease and the other party shall have the right to exercise all of the remedies set forth in this Lease in the event of a default.
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Throughout this Lease, anywhere Landlords or Tenants consent or approval is required, unless otherwise specified, such consent or approval shall not be unreasonably withheld, conditioned or delayed.
These Lease may be executed in counterparts and such counterparts, when taken together, shall be deemed to constitute a single instrument. Executed copies of this Lease may be delivered by electronic or facsimile transmission with the same effect as if they were personally delivered.
Landlord agrees to furnish to Tenant during the Term, including any Extension Term (as hereinafter defined), at no additional charge, twenty (20) reserved parking spaces in the Complexs parking structure (the Garage), for so long as this Lease is in full force and effect and Tenant is not in Material Default under this Lease. Such parking spaces shall be at the approximate locations shown on Exhibit F attached hereto, but such locations may be changed from time to time by Landlord by notice to Tenant if required to comply with any laws (for example, if Landlord must instead designate such spaces as spaces for handicapped parking), so long as the relocated spaces are in a prominent location in the Garage. Landlord shall mark such parking spaces in a reasonable manner, to include Tenants name, to indicate to third parties that such spaces are reserved for the use by Tenant, but Landlord shall have no responsibility for or liability in the event of any unauthorized use of said parking spaces. Upon notice from Tenant to Landlord of unauthorized use of Tenants reserved parking spaces, Landlord or its agent shall use commercially reasonably efforts to eliminate such unauthorized use. Tenant shall cooperate with such efforts by Landlord, including, without limitation, providing a list of all authorized automobiles and using windshield stickers. In addition to Tenants right to use said parking spaces in the Garage, for so long as this Lease is in full force and effect and Tenant is not in Default hereunder, Tenant may use for parking the other parking areas serving the Complex free of charge on a first come, first-served basis with other tenants of the Building and their guests and invitees. Landlord may designate specific parking spaces as reserved for other tenants and Tenant shall not use, or allow its employees to use, such spaces. Use of all of the parking spaces described in this Section 26 is subject to reasonable rules and regulations promulgated from time to time by Landlord. It is intended that the Complex will have approximately 3.8 parking spaces per 1,000 square feet of Rentable Area in the Complex. Tenant expects to require the use of more than 3.8 parking spaces per 1,000 square feet of Rentable Area of the Premises. If at any time during the Term either Tenant or other tenants or occupants of the Complex do not have adequate parking spaces available, Landlord will cooperate with Tenant and such other parties to solve the problem. If Landlord elects to institute a valet parking system with double-stacking of cars (assuming such a system is lawful), Tenant agrees that the costs of such valet service may be included in Expenses.
Tenant shall have the right to maintain signs on those parts of the Complex identified below without payment of any additional Rent, provided the design and installation of such signs complies with the requirements of all public authorities and the design and installation of such signs is subject to the prior reasonable approval of Landlord:
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Tenants rights to the signage described in clauses (i), (ii), (v) and (vi) of subsection A above are conditioned on Tenant not being in Material Default and this Lease being in full force and effect. Tenants rights to the signage described in clauses (i), (ii), (v) and (vi) of Subsection A above are limited to Tenant, a Qualified Affiliate, any permitted assignee and any permitted sublessee that subleases at least two (2) whole floors in the Building. Furthermore, Tenants rights to the signage described in clause (i) of Subsection A above are conditioned on (x) Tenant may use two such signs only if Tenant, including any of its Qualified Affiliates, is then leasing an area in the Complex equal to or greater than the Initial Rentable Area (less the Contraction Space, if Tenant has exercised the Contraction Option (as such terms are hereinafter defined)), otherwise Tenant may use one such sign for so long as it leases at least two (2) whole floors in the Building. The maximum legal allowable sign area for the building-mounted signs at the Complex shall be allocated evenly between the Building and the North Building. Tenants rights to the signage described in clauses (ii) and (v) of Subsection A above are conditioned on Tenant, including any of its Qualified Affiliates, leasing a Rentable Area within the Building equal to or greater than seventy-five percent (75%) of the Initial Rentable Area. If the foregoing conditions are not satisfied, then Landlord may remove, or require Tenant to remove within sixty (60) days after notice from Landlord, Tenants identifying signage set forth in clauses (i) (ii) and (v) of Section 27A, as applicable.
Tenant shall have the right, by giving written notice (the Initial Expansion Notice) to Landlord on or before the date that is eight (8) months after the Effective Date, to lease up to the balance of all of the rentable space on the 4th Floor of the Building and, if Tenant leases all of such space, any space on the 3rd floor of the Building, upon the same terms and conditions as the remainder of the initial Premises, including, without limitation, at the same rate of Base Rent, except as otherwise provided herein. Concurrently with execution of the lease amendment described below, Tenant shall increase the Security Deposit by an amount equal to (i) the amount of the Security Deposit per square foot of Rentable Area of the balance of the Premises multiplied by (ii) the Rentable Area of the Initial Expansion Space (as hereinafter defined) (and such amount shall be reduced during the Term in accordance with, and subject to the terms and conditions of, Section 18B). In the Initial Expansion Notice, Tenant shall designate the space to be leased by Tenant (the Initial Expansion Space). The configuration of both the Initial Expansion Space and any remaining portion of said floor shall be capable of satisfying all applicable building codes and shall otherwise be in a reasonably marketable configuration, which shall include a reasonable portion of the window lines and reasonable access to the elevator lobbies. If Tenant elects to take less than all of the 3rd or 4th floor, Landlord shall be responsible, at its expense, for designing, permitting and constructing the common corridor on such floor. If Tenant elects to lease the Initial Expansion Space, Landlord and Tenant shall enter into a work letter agreement governing the initial leasehold improvements for such space comparable to the Work Letter, provided the relevant dates shall be equitably adjusted based upon the date Tenant delivers the Initial Expansion Notice. The commencement date of Tenants lease of the Initial Expansion Space shall be the date that is seven (7) months after the space is available for the commencement of the leasehold improvements (regardless of whether Tenant has obtained a building permit for such leasehold improvements) and the rent commencement date for the Initial Expansion Space shall be the later to occur of (x) the commencement date of the lease term for such space (unless Landlords construction of the common corridor as described above or failure to complete Landlords Work (as defined in the Work Letter) in the Initial Expansion Space
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Tenant shall have the right, by giving written notice (the Available Expansion Notice) to Landlord on or before the date that is twelve (12) months after the Effective Date, to lease additional space in the Building upon the same terms and conditions as the remainder of the initial Premises, including, without limitation, at the same rate of Base Rent, if (and only if) such space is then available for lease, except as otherwise provided herein. Concurrently with execution of the lease amendment described below, Tenant shall increase the Security Deposit by an amount equal to (i) the amount of the Security Deposit per square foot of Rentable Area of the balance of the Premises multiplied by (ii) the Rentable Area of the Available Expansion Space (as hereinafter defined) (and such amount shall be reduced during the Term in accordance with, and subject to the terms and conditions of, Section 18B). Space will not be considered available for lease if Landlord has exchanged proposals more than once with a third party or entered into negotiations with a third party for a lease for such space, or if another tenant has an option to lease such space. Upon Tenants request from time to time prior to the date that is twelve (12) months after the Effective Date, Landlord shall notify Tenant of the space in the Building that is then available for lease. In the Available Expansion Notice, Tenant shall designate the space Tenant desires to lease (the Available Expansion Space). The configuration of both the Available Expansion Space and any remaining portion of said floor shall be capable of satisfying all applicable building codes and shall otherwise be in a reasonably marketable configuration, which shall include a reasonable portion of the window lines and reasonable access to the elevator lobbies. If Tenant takes less than all of the space on a floor, Landlord shall be responsible, at its expense, for designing, permitting and constructing the common corridor on such floor. If Tenant elects to lease the Available Expansion Space, Landlord and Tenant shall enter into a work letter agreement governing the initial leasehold improvements for such space comparable to the Work Letter, provided the relevant dates shall be equitably adjusted based upon the date Tenant delivers the Available Expansion Notice. The commencement date of Tenants lease of the Available Expansion Space shall be the date that is seven (7) months after the space is available for the commencement of the leasehold improvements (regardless of whether Tenant has obtained a building permit for such leasehold improvements) and the rent commencement date for the Available Expansion Space shall be the later to occur of (x) the commencement date of the lease term for such space (unless Landlords construction
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Landlord hereby grants to Tenant an ongoing option to lease (the Right of First Refusal) any portion of the rentable space in the Building (the First Refusal Space), upon the terms and conditions that Landlord is prepared to lease such portion of the First Refusal Space to a third party. Tenants rights hereunder shall not be applicable to any such First Refusal Space which becomes available for leasing during the last year of the Term (i.e., the last year of the initial Term or the last year of the First Extension Term (as hereinafter defined) unless Tenant has exercised the applicable Extension Option) or the last three (3) years of the Second Extension Term (as hereinafter defined). Tenants Right of First Refusal is subject and subordinate to any renewal or extension granted to another tenant subsequent to execution of this Lease if such renewal or extension rights were set forth in a Refusal Notice (as hereinafter defined) and Tenant declined to exercise its Right of First Refusal with respect to such Refusal Notice. Furthermore, Tenants Right of First Refusal is subject and subordinate to any expansion right or option (including a right of first offer or a right of first refusal) granted by Landlord to another tenant at any time that Tenant is subleasing more than 27,500 rentable square feet of the Premises or at any time after Tenant elects to exercise the Extension Option with respect to a Rentable Area of less than 75% of the Initial Rentable Area, provided such expansion rights or options were set forth in a Refusal Notice and Tenant declined to exercise its Right of First Refusal with respect to such Refusal Notice. Tenants Right of First Refusal shall not apply to any Contraction Space (as hereinafter defined) or to any part of the Premises that is not extended in connection with Tenants exercise of an Extension Option (as hereinafter defined) for the period commencing on the date Landlord exercises the Contraction Option (as hereinafter defined) or the Extension Option, respectively, and expiring one (1) year after the Contraction Date (as hereinafter defined) or the commencement of the Extension Term (as hereinafter defined), respectively. Furthermore, Tenant may not exercise (and Landlord is not encumbered by) the Right of First Refusal at any time while Tenant is in Material Default or this Lease is not in full force and effect.
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Prior to Landlords leasing any portion of the First Refusal Space, Landlord shall give Tenant a written notice (the Refusal Notice) which will include a copy of the executed letter of intent between Landlord and a third party (which may be non-binding). Landlord may redact the identity of the third party if the third party requests confidentiality. The Refusal Notice or its attachments must set forth (i) the location, (ii) the Rentable Area, (iii) the proposed availability date (the First Refusal Space Commencement Date) and lease term, (iv) the rental rate, (v) the tenant improvement allowances and base building improvements, and (vi) all other economic terms being offered with respect to such First Refusal Space.
Tenants exercise of its Right of First Refusal to lease the portion of the First Refusal Space on the terms described in the applicable Refusal Notice shall be made by written notice from Tenant to Landlord given not later than five (5) business days after the Refusal Notice is delivered. If such right is not so exercised, Tenants Right of First Refusal shall thereupon terminate as to such portion of the First Refusal Space described in the Refusal Notice, and Landlord may thereafter offer such portion of the First Refusal Space to the third party that triggered the Refusal Notice under terms which are materially the same or more favorable to Landlord as those set forth in the applicable Refusal Notice and with a rental rate and other economic terms which are effectively 95% or more of the rental rate and other economic terms which were offered to Tenant in the applicable Refusal Notice. If Landlord, within six (6) months after the date of the Refusal Notice, does not enter into a lease of such portion of the First Refusal Space with such third party that triggered the Refusal Notice under terms which are materially the same or more favorable to Landlord as those set forth in the applicable Refusal Notice and with a rental rate and other economic terms which are effectively 95% or more of the rental rate and other economic terms which were offered to Tenant in the applicable Refusal Notice, or if Landlord has entered into such a lease and such lease has expired or terminated, then Tenants rights under this Section to lease such portion of the First Refusal Space shall not terminate but shall continue in full force and effect.
If Tenant has validly exercised its Right of First Refusal, then effective as of the applicable First Refusal Space Commencement Date, such portion of the First Refusal Space shall be included in the Premises, subject to all of the terms, conditions and provisions of this Lease, except that:
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If Tenant exercises a Right of First Refusal, Landlord and Tenant shall execute and deliver an amendment to this Lease reflecting the lease of the applicable First Refusal Space by Landlord to Tenant on the terms provided above, which amendment shall be executed and delivered within thirty (30) days after Tenant exercises the Right of First Refusal.
Each Right of First Refusal shall automatically terminate and become null and void upon the earlier to occur of (1) the expiration or termination of this Lease, (2) the termination of Tenants right to possession of all or any part of the Premises (except when arising out to Tenants valid exercise of the Contraction Option (as hereinafter defined) or an Extension Option), (3) the assignment of this Lease by Tenant (other than to a Qualified Affiliate), or (4) the failure of Tenant to timely or properly exercise the Right of First Refusal.
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For purposes of this Lease, the Option Space shall mean all rentable space in the North Building.
If (i) at any time there is no space available for lease (as defined in Section 28B) in the Building, (ii) Tenant is leasing at least a Rentable Area equal to the Initial Rentable Area and (iii) Tenant has not exercised an Extension Option with respect to less than seventy-five percent (75%) of the Premises then with respect to any lease which Landlord hereafter intends to enter into with a third-party tenant for either all or any portion of the Option Space (but excluding any new or renewal lease or lease expansion with any then existing tenant of all or any portion of the Option Space pursuant to an option or right in such tenants lease or, with respect to a renewal lease, pursuant to new negotiations between Landlord and such tenant), Landlord shall give Tenant written notice of such intent (Landlords Notice) prior to Landlord entering into such lease. Tenants rights hereunder shall not be applicable to any such Option Space which becomes available for leasing during the last year of the Term (i.e., the last year of the initial Term or the last year of the First Extension Term unless Tenant has exercised the applicable Extension Option) or the last three (3) years of the Second Extension Term. Landlords Notice shall specify (i) the location and rentable area of the portion of the Option Space which Landlord desires to lease (which is henceforth referred to as the Actual Option Space), (ii) the proposed lease term for the Actual Option Space, (iii) the date the Actual Option Space shall be available for occupancy, (iv) the annual rate of base rent per square foot of rentable area which Landlord desires to charge for the Actual Option Space, (v) the amount of all rent adjustments which Landlord desires to charge for the Actual Option Space, including, without limitation, fixed and/or indexed rent adjustments and rent adjustments for Expenses and Taxes for the Building (and corresponding base year, if applicable), and (vi) the tenant concessions (e.g., rent abatements and tenant improvement allowances), if any, which Landlord would be willing to provide to lease the Actual Option Space. Tenant shall thereupon have a right (the Right of First Opportunity) to lease all, but not less than all, of the Actual Option Space, subject to the following terms and conditions:
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If Tenant exercises the Right of First Opportunity, the following terms and provisions shall apply:
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If Tenant exercises the Right of First Opportunity, Landlord and Tenant shall execute and deliver an amendment to this Lease reflecting the lease of the Actual Option Space by Landlord to Tenant on the terms herein provided, which amendment shall be executed within thirty (30) days after Tenant exercises the Right of First Opportunity.
Each Right of First Opportunity shall automatically terminate and become null and void upon the earlier to occur of (1) the expiration or termination of this Lease, (2) the termination by Landlord of Tenants right to possession of all or any part of the Premises (except when arising out of Tenants valid exercise of the Contraction Option or an Extension Option), (3) the exercise of an Extension Option with respect to a Rentable Area of less than seventy-five percent (75%) of the Initial Rentable Area, (4) the failure of Tenant to timely or properly exercise the Right of First Opportunity, or (5) the separation of the ownership of the Building and the North Tower.
Provided Tenant is not then in Material Default, Tenant shall have the one-time option (the Contraction Option) to exclude from the Premises one full floor of the Premises, designated by Tenant as hereinafter provided, effective as of the last day of the fifth Lease Year or the seventh Lease Year (the Contraction Date).
The space excluded from the Premises pursuant to the Contraction Option (the Contraction Space) shall be the floor designated by Tenant, which is either the lowest or the highest full floor of the Building included in the Premises (not including Tenants space on the first floor), and which is, as of the date of notice of exercise of such Contraction Option, included in the Premises.
The Contraction Option shall be exercised by notice given by Tenant not less than nine (9) months prior to the Contraction Date.
Tenant shall pay Landlord a fee (the Contraction Fee) equal to the unamortized amount of the tenant improvement allowance, brokers commissions and legal fees paid by Landlord in connection with the Contraction Space amortized over the scheduled portion of the initial Term of this Lease with respect to the Contraction Space, utilizing a 7% per annum interest rate. The Contraction Fee shall be paid on or before the Contraction Date. Notwithstanding the foregoing, Tenant may elect to instead pay the Contraction Fee to Landlord as additional rent over the balance of the initial Term, by written notice to Landlord prior to the Contraction Date. If Tenant so elects to pay the Contraction Fee over the balance of the initial Term, the amount of the Contraction Fee will be amortized on a straight-line basis over the period commencing on the Contraction Date and
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If Tenant exercises the Contraction Option, then Tenant shall return the Contraction Space to Landlord on the Contraction Date in accordance with the requirements of this Lease, and on, and effective as of, such Contraction Date:
Following exercise by Tenant of the Contraction Option, at the request of either party hereto and within thirty (30) days after such request, Landlord and Tenant shall enter into a supplement to this Lease confirming the terms, conditions and provisions applicable after such contraction as determined in accordance herewith.
The Contraction Option shall automatically terminate and become null and void upon the failure of Tenant to timely or properly exercise the Contraction Option.
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Tenant shall have an option (the First Extension Option) to extend the Term with respect to (a) all of the Premises or (b) less than all of the Premises, but then only in full floor increments or all of the portion of the Premises on any floor, for one additional term (the First Extension Term) of five (5) years, upon the following terms and conditions:
Tenant shall have an option (the Second Extension Option) to extend the Term with respect to (a) all of the Premises or (b) less than all of the Premises, but then only in full floor increments or all of the portion of the Premises on any floor, for one additional term (the Second Extension Term) of five (5) years, upon the following terms and conditions:
If Tenant timely and properly exercises the First Extension Option or the Second Extension Option (each, an Extension Option):
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If Tenant exercises an Extension Option, Landlord and Tenant shall execute and deliver an amendment to this Lease reflecting the lease of the Premises by Landlord to Tenant for the Extension Term on the terms provided above, which amendment shall be executed and delivered within thirty (30) days after Tenant exercises the Extension Option.
Each Extension Option shall automatically terminate and become null and void upon the earlier to occur of (1) the expiration or termination of this Lease, (2) the termination of Tenants right to possession of all or any part of the Premises (except when arising out of Tenants valid exercise of the Contraction Option or an Extension Option), (3) the assignment of this Lease by Tenant (other than to a Qualified Affiliate), or (4) the failure of Tenant to timely or properly exercise the Extension Option.
Landlord hereby grants to Tenant the one-time right of first offer to purchase the Complex, all related fixtures, equipment and personal property used in the operation of the Complex (but not a separate unrelated sale of any such fixtures, equipment and personal property), and any appurtenant easement rights relating to any of the foregoing (collectively, for the purposes of this Section 33, the Property) in accordance with the terms of this Section 33. If Landlord intends to sell the Building separate from the balance of the Complex, the Property shall instead mean the Building and the related fixtures, equipment and personal property used in the operation of the Building. Except as provided in Section 33D below, such right shall apply to the first to occur of a sale of Landlords interest in a ground lease, a creation of a ground lease after the date hereof, a sale of a fee interest in the Property or any substantial portion thereof, a sale of the entire or any controlling part of the beneficial interest in any land trust which holds any ground lease or fee interest or a sale of the entire or any controlling part of the ownership interests in any corporation, partnership, limited liability company or other entity holding title to the Property. Tenants rights under this Section 33 are conditioned on the Rentable Area of the Premises being equal to or greater than the Initial Rentable Area, Tenant not being in Material Default and this Lease being in full force and effect.
If at any time prior to or during the Term Landlord desires to sell (which would include any long term lease of all or substantially all of the Complex) all or any portion of the Property, whether such proposed sale arises as a result of an offer from a third party (provided, however, that Landlord is considering accepting such offer) or is initiated by Landlord, prior to entering into material negotiations with any third party purchaser Landlord shall give notice (the Offering Notice) to Tenant of the terms upon which Landlord is prepared to offer the Property or such portion thereof for sale, which Offering Notice shall contain the purchase price and other material terms and conditions of the proposed sale (such terms and conditions being hereinafter referred to as the Offer). Within fifteen (15) days after Tenants receipt of the Offering Notice, Tenant shall notify Landlord whether or not Tenant desires to enter into purchase negotiations with Landlord. Tenants failure to give such notice within such fifteen (15)
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Landlord shall not have the right to sell or offer the Property or any portion thereof, as the case may be, for sale to a third party at a net equivalent price (which includes the net equivalent cash value of any non-cash consideration, including exchange properties) less than 90% of the price offered by Tenant to Landlord in response to any Offering Notice (or 90% of the price set forth in Landlords Offering Notice if Tenant did not respond to said Offering Notice) without giving Tenant a further Offering Notice pursuant to Section 33B above. Tenant shall have all of the rights provided for in Section 33B above as to such further Offering Notice and, in addition, the right to purchase the Property or portion thereof, as the case may be, on the terms and conditions set forth in such further Offering Notice, except Tenant must respond to such further Offering Notice within ten (10) days.
The right of first offer granted to Tenant in this Article shall not apply to:
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The right of first offer set forth in this Section 33 shall automatically terminate and become null and void upon the earlier to occur of (1) the expiration or termination of this Lease, (2) the termination of Tenants right to possession of all or any part of the Premises (except when arising out of Tenants valid exercise of the Contraction Option or an Extension Option), (3) the exercise of an Extension Option with respect to a Rentable Area of less than 75% of the Initial Rentable Area, (4) the assignment of this Lease by Tenant (other than to a Qualified Affiliate), or (5) the failure of Tenant to timely or properly exercise the right of first offer.
Throughout the Term of this Lease, Tenant shall have access to and the right to use a portion of the roof area of the Building (not to exceed Tenants Proportionate Share of the roof area of the Building after deducting areas used by Building systems) for the purpose of erection and maintenance of up to three (3) communications antennas. Such rights shall be for the personal use of Tenant. Landlord shall have the right to approve such installations, which approval shall not be unreasonably withheld, conditioned or delayed. Landlord and Tenant shall reasonably agree on the location of the area or areas to be utilized by Tenant. Tenant shall be responsible for obtaining and maintaining all governmental permits and licenses needed for such installations and Landlord agrees to cooperate with Tenant in this regard in any reasonable manner requested by Tenant. Tenant shall pay all costs of installing, maintaining, insuring and removing such equipment, but such use shall otherwise be without charge. Tenant shall operate and maintain any such equipment in accordance with all applicable laws, statutes, codes and ordinances. Tenant shall operate any such equipment in such a manner as will not materially interfere with any other equipment which is then operating in the Complex at the time Tenant first installs such equipment. Tenant shall install any such rooftop equipment in a manner which does not void any existing warranty on the roof of the Building. Landlord shall not use, or permit any other tenant or third party to use, the roof for any purpose which would interfere with Tenants use of the roof. Upon the expiration of earlier termination of this Lease, Tenant shall remove all such equipment from the roof of the Building and repair any damage caused by such removal, including removing any cabling and conduit connecting such equipment to the Premises.
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It is understood that Tenant desires to use certain space outside the Building, at the location set forth on Exhibit G attached hereto and made a part hereof (the Generator Pad), for Tenants exclusive use to install, operate and maintain certain standby power generating facilities and related equipment (collectively, Generator Equipment) directly related to the business of Tenant at the Building. Subject to the terms and conditions of this Section 35, Landlord hereby licenses to Tenant the exclusive right to use the Generator Pad during the Term for the installation, operation and maintenance of the Generator Equipment and for no other use or purpose whatsoever, for no separate fee or charge.
Tenant shall be solely responsible for the installation of the Generator Equipment and shall, as a condition to installing and maintaining the Generator Equipment and at Tenants sole cost and expense, (i) submit plans and specifications depicting the size, location and manner of installation of the Generator Equipment for Landlords approval, which shall not be unreasonably withheld, conditioned or delayed, and (ii) secure all necessary consents and approvals from all applicable governmental authorities to construct, operate and maintain the Generator Equipment. The Generator Equipment shall further be installed subject to and in accordance with the conditions and limitations set forth in Section 9. Tenant shall be solely responsible for the installation of the Generator Equipment, and all other support equipment, connecting lines and other equipment used in connection therewith, at Tenants sole expense. Said installation shall be in accordance with the aforementioned plans and specifications approved by Landlord. Tenant agrees to indemnify, defend and hold harmless Landlord from and against all losses, damages, costs and expenses arising from or relating to the installation, maintenance, repair, use and removal of the Generator Equipment. All such Generator Equipment shall be constructed and installed by Tenant in a lien-free and good and workmanlike manner, in accordance with all applicable laws, statutes, codes and ordinances, and in compliance with the requirements of the insurers of the Building.
Tenant will comply with all laws, statutes, codes and ordinances, and insurance requirements relating to the operation, maintenance and repair of the Generator Equipment, including, but not limited to (i) obtaining and maintaining, or causing to be obtained and maintained, all applicable permits required for the installation, operation, maintenance and repair of the Generator Equipment, (ii) implementing a Spill Prevention Control and Countermeasures Plan (as required by federal, state, or local regulations), and (iii) maintaining and inspecting the Generator Equipment and related equipment and keeping records related thereto. Upon Landlords request, Tenant will allow Landlord to inspect all records relating to the installation, operation, maintenance and repair of the Generator
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The installation and operation of the Generator Equipment shall not interfere with the safety or operation of the Complex.
Landlord shall not be required to provide any sources of power or fuel for the Generator Equipment. Except during emergency operation of the Generator Equipment, Tenant shall not fill the fuel storage tank for the Generator Equipment during normal business hours.
Within sixty (60) days after expiration or termination of this Lease, Tenant, at Tenants sole cost and expense, shall remove all of the Generator Equipment installed hereunder. Tenant shall pay all costs and expenses of any such removal. Tenant must document the removal of any fuel storage tank with a report prepared by a qualified consultant, evidencing either no impact to soil and groundwater or that any impacted soil or groundwater has been remediated in a manner and to a level satisfactory to Landlord in its sole discretion.
If the Generator Pad shall be damaged by fire or other casualty rendering it unusable by Tenant, the Basic Rent payable under the Lease shall not be abated.
Tenants use of the Generator Pad shall be subject to the same terms and conditions as Tenants use of the interior of the Building, including, without limitation, the indemnification by Tenant set forth in Section 11B.
The license and rights set forth in this Section 35 are personal to GTSI Corp., any Qualified Affiliate, any permitted subtenant of at least two (2) whole floors in the Building or any permitted assignee.
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LANDLORD: | TENANT: | |||||
SP HERNDON DEVELOPMENT, LP, | GTSI CORP., | |||||
a Delaware limited partnership | a Delaware corporation | |||||
By: | By: | |||||
Title: | Title: | |||||
STATE OF _____ | ) | |
) SS: | ||
COUNTY OF _____ | ) |
STATE OF _____ | ) | |
) SS: | ||
COUNTY OF _____ | ) |
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1. | VAV System: Landlord shall provide a typical floor main HVAC (medium pressure) loop. Landlord will provide and deliver to Tenant building standard VAV boxes (Landlord to provide VAV box specs). VAV boxes located on the perimeter will get electric reheat coils. Landlord will provide VAV boxes and DDC controls not to exceed more than one VAV box and DDC controls per 700 rentable square feet of Tenants premises. Tenant will be responsible for installation of the VAV boxes per Landlord approved Tenant plans and specifications. Tenants are responsible for the cost of any expansion of, or additions to, the system that are required for Tenant Improvements. The HVAC Design Specifications are as follows: |
Summer: | 95 F DB, 78 F WB | |
Winter: | 0 F DB |
Summer: | 75 F DB, 50% RH | |
Winter: | 70 F DB |
Summer: | No conditioning. | |
Winter: | 60 F DB |
Parking Garage: | No conditioning. | |
Ventilation Air: | Meets the requirements of ASHRAE 62.4 of 20 CFM per person when occupied at one person per 140 sq. ft. |
2. | Landlord shall provide riser space in the closets from the NET-POP to the Premises. |
3. | The base building floor slabs will be of sufficient distance apart to enable a finished ceiling height of nine (9) feet clear throughout the Premises on all typical floors with a minimum 6"-8 above ceiling grid for Tenants lights (except for areas with HVAC trunk lines or other reasonable obstructions) and ten (10) feet, six (6) inches on the first floor. The finished ceiling and ceiling lighting will be installed as part of Tenants Work. |
Schedule 1 - 1
4. | Landlord shall supply and install condenser water taps located on each floor of the Premises for Tenants supplemental cooling units. The supplemental available cooling tonnage capacity is approximately 4.5 tons per floor. There are 2 wet columns per floor. |
5. | Landlord to provide a 50 circuit panel in the typical floor electrical closet (Tenant to furnish breakers). |
6. | a. Landlord to provide contact points required for Tenant to tie into the Base Building Life Safety System without the need for Base Building life safety system expansion or booster panel(s). b. Tenant shall pay for the cost associated with the terminations and connections to the Base Building Life Safety Systems as it relates to the Tenant work. |
7. | Landlord to comply with all applicable ADA, Fairfax County and State of Virginia accessibility codes as in effect on the Commencement Date for the shell and core, base building entrances, lobbies, elevators and toilet rooms. |
8. | Landlord to provide conduit raceway and required infrastructure work for surveillance cameras in the lobby and at grade stairwells. Landlord to also provide equipment (card readers and cameras) to connect the infrastructure work for security badging and remote access. |
9. | At Tenants sole cost and expense, Tenant contractors to drain down as necessary and refill the Fire Protection sprinkler system as required by the local fire marshall. |
10. | Landlord to provide paint ready drywall at core and perimeter, including area above perimeter windows. Tenant will be responsible for enclosing interior columns as part of the Tenant Improvements. |
11. | Landlord to deliver a smooth and level concrete floor 1/3 inch within 10-foot radius non-cumulative. |
12. | Landlord to install eight (8) watts per square foot for Tenant lighting, power and HVAC. Landlord to provide in the electrical closet an emergency lighting panel, step down transformer with disconnect switch and a fire alarm cabinet. Tenant responsible for power and lighting and electrical distribution within the Premises. If Tenant requires more than eight (8) watts per square foot, such upgrade shall be at Tenants cost. |
13. | Landlord to provide Base Building sprinkler risers, mains, loops and branch piping with upturned heads per the Fairfax County code; but in no event shall sprinkler heads installed by Landlord be less than one (1) for each 225 square feet. |
Schedule 1 - 2
14. | All toilet rooms shall be ADA compliant and shall meet the Fairfax County code requirements and all requirements of the State of Virginia as in effect on the Commencement Date. |
15. | Landlord to provide floor loading capacity of 80 PSF Live Load, plus 20 PSF Dead Load for partitions (total 100 PSF), which is consistent with Class A standard in market, subject to variation to satisfy Tenants requirements for a minimum loading capacity. |
16. | Ingress and egress to the Base Building shall be controlled by access cards or other electronic methods. Landlord shall install card access to: the base building, elevators and fire stairs. Cost of equipment and installation and cards for Tenants employees shall be paid by Landlord. |
17. | Landlord will provide Tenant with a Life Safety System, providing alarms, strobes, detectors and lights in the common areas of the building. Additionally, Landlord will provide sprinklers with heads turned up within the common areas and Premises. Tenant will be responsible for dropping the sprinkler heads and installing the code required fire life safety system within the Premises. Life Safety system shall have adequate capacity to accommodate Tenants life safety equipment tie in(s). |
18. | Landlord to provide building standard horizontal mini-blinds within the Premises. |
19. | Landlord shall provide sleeves for cable tv or satellite to the building including sleeves to each floor. Tenant shall be responsible for service contract and cabling with the service provider. Tenant and or Service Contractor shall be responsible for extending service from the floor core area to Tenants space. |
Visitor surface parking: | Initially 123 spaces including 4 handicap van spaces | |
Structured parking: | Initially 1,243 spaces in a 5-level deck | |
Parking ratio: | Initially approximately 3.8 spaces per 1,000 rentable square feet | |
Off-street loading: | 4 spaces per building | |
Landscaped courtyard |
Schedule 1 - 3
Height: | 8 stories in each of two office towers | |
First Floor: | 15,210 rentable square feet | |
Typical Floors 2-7: | 22,321 rentable square feet | |
Eighth Floor: | 21,411 rentable square feet | |
Typical Bay: | 30 x 38 | |
Core to exterior wall: | approximately 46 | |
Typical floor-to-floor height: | 118 and 110 at structural drops | |
Typical floor-to-finished ceiling height: | 90" | |
First floor-to-floor height: | 144" | |
Lobby floor-to-ceiling height: | 116" | |
First floor tenant ceiling height: | 90 with option to increase height to 100 or more 5 space planning module |
Schedule 1 - 4
Schedule 1 - 5
Schedule 1 - 6
PROPERTY: | 2553 Dulles View Drive, Herndon, Virginia | |
PREMISES: | Floors | |
LANDLORD: | SP Herndon Development, LP | |
DEED OF LEASE DATED: | October _____ , 2007 | |
TENANT: | GTSI Corp. | |
TENANTS ADDRESS: | ||
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TENANT: | ||
GTSI CORP., a Delaware corporation | ||
By: | ||
Its: | ||
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Tenants Name: Property Address: |
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Sincerely yours, | ||||
By: | ||||
Its: | ||||
By: | ||||
Secretary |
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