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HomeMy WebLinkAboutLease Agreement with William Hon for Governmental Offices on WatertowerCOMMERCIAL LEASE AND DEPOSIT RECElPT BY CITY OF MERIDIAN FOR 6,711 SQUARE FEET OF OFFICE SPACE AT 660 E. WATERTOWER LANE, SUITE 250 TO WILLIAM A. HON P.O. BOX 190870 BOISE, ID 83719 DECEMBER 19, 2000 COMMERCIAL LEASE AND DEPOSIT RECEIPT RECEIVED FROM City of Meridian, a Body Corporate of the State of Idaho, hereinafter referred to as LESSEE, the sum of $8,948.00 evidenced by check, as a deposit, which shall belong to William A. Hon, ("Lessor") and shall be applied as first month's rent. Lessee offers to lease from Lessor the premises (the "Premises") situated in the City of Meridian, County of Ada, State of Idaho, described as 6,711 square feef'0f office space in Suite 250 of the building located at 660 E. Watertower Lane (the "Building"), upon the fol!owing terms and conditions: TERM: The term of thi~ Lease will be sixty (60) months coinmencing April 1, 2001 (the "Occupancy Date"). At any time after the Occupancy Date, within ten (10) days Lessor's request, Lessee agrees to provide Lessor with a written acknowledgment of the Occupancy Date (lease commencement date). Lessor agrees to allow Lessee reasonable access to the Premises prior to the Occupancy Date to install fixtures, a computer, a telephone system and move-in furniture. Further, Lessor agrees to allow Lessee to operate in the Premises upon completion of the tenant improvements outlined on Exhibit B of this Agreement. 2o RENT: Lessee hereby covenants and agrees to pay Lessor, or assigns, the total sum of Five Hundred Seventy Thousand Four Hundred Thirty Five Dollars ($570,435.00) payable in monthly installments of $8,948.00 for months One through Twelve (1 - 12), $9,227.63 for months thirteen through twenty-four (13 - 24), $9,507.25 for months twenty-five through thirty-six (25-36), $9,786.88 for months thirty-seven through forty-eight (37 - 48), and $10,066.50 for months forty- nine through sixty (49 - 60), herein "Base Rent". All rents will be paid to Lessor or his/her authorized agent, at the following address: William A. Hon, P.O. Box 190870, Boise, ID 83719, or at such other places as may be designated by Lessor from time to time. In the event rent is not paid within five days after due date, Lessee agrees to pay a late charge of 10% plus interest at 18% per annum on the delinquent amount. Lessee further agrees to pay $25.00 for each dishonored bank check. The late charge period is not a grace period, and Lessor is entitled to make written demand for any rent if not paid when due. OPERATING EXPENSE INCREASES: The Base Rent payable hereunder shall also be annually adjusted upwards beginning on the first anniversary date of the term of this Lease, and each year thereafter, by an amount that shall be Lessee's Proportionate Share of any increases in the Operating Expenses (as that term is defmed below) paid or payable by Lessor, or estimated to be paid by Lessor, during the immediately preceding calendar year. As used in this Leas6, the term "Operating Expenses" means: "Real Estate Taxes" which shall mean and include all general and special taxes and assessments levied upon or assessed against the Building and the land on which it is located (any tax levied in whole or in part in lieu of or in addition to real property taxes); "Operating Costs" which shall mean all reasonable costs of management, operation, and maintenance of the Building and the land on which it is situated, including without limitation wages, salaries, and compensation of employees; consulting, accounting, legal, janitorial, maintenance, guard, and other services; management fees and costs; maintenance and repairs; and any other costs, charges, and expenses that under generally accepted accounfmg principles would be regarded as management, maintenance, and operating expenses; "Utility Costs" which shall include the costs paid and incurred by Lessor for all utilities in connection with the Building, including, without limitation, the costs of heat ventilating and air conditioning, costs of furnishing gas, electricity or other fuels or power sources, and costs of furnishing water and sewer services, and the cost of waste disposal; and "Lessee's Proportionate Share" means the percentage equal to the square footage leased to Lessee under this Lease (6,711 square feet) over the total rentable square footage in the Building. USE: The premises are to be used for the operation of governmental offices, and for no other purpose, without prior written consent of Lessor. Lessee will not commit any waste upon the premises, or any nuisance or act which may disturb the quiet enjoyment of any tenant in the building. USES PROHIBITED: Lessee will not use any portion of the premises for purposes other than those specified. No use will be made or permitted to be made upon the premises, nor acts done, which will increase the existing rate of insurance upon the property, or cause cancellation of insurance policies coveting the property. Lessee will not conduct or permit any sale by auction on the premises. ASSIGNMENT AND SUBLETTING: Lessee shall have the right to sublet all or any portion of the Premises or assign the lease at any time to an Affiliated Person of Lessee, Lessee's partner, a · successor entity created by merger, reorganization, recapitalization, or acquisition, without Landlord's consent or approval. Lessee will not assign this Lease or sublet any portion of the Premises to any other party without prior written consent of the Lessor, which will not be unreasonably withheld. Any such assignment or subletting to another party without consent will be void and, at the option of the Lessor, will terminate this Lease. Lessee will not sublease for a profit. If Lessee assigns or sublets, Lessee shall remain responsible for the faithful performance and observance of all of its covenants and obligations set forth in the Lease. ORDINANCES AND STATUTES: Lessee will comply with all statutes, ordinances, and requirements of all municipal, state and federal authorities now in force, or which may later be in force, regarding the use of the premises. The commencement or pendency of any state or federal court abatement proceeding affecting the use of the premises will, at the option of the Lessor, be deemed a breach of this Lease. MAINTENANCE, REPAIRS, ALTERATIONS: Unless otherwise indicated, Lessee acknowledges that the premises are in good order and repair and Lessor warcants that at the time of occupancy the premises are in good order and repair. Lessee shall, at his/her own expense, maintain the interior of the premises in a good and safe condition. Lessor shall maintain all systems and equipment, including electrical wiring, plumbing and heating and air conditioning installations and repairs, and any other system or equipment. The premises will be surrendered by Lessee, at termination of the Lease, in as good condition as received, normal wear and tear and damage from casualty excepted. Lessor will be responsible for maintenance of roof, exterior walls, and structural foundations (including any retrofitting required by governmental authorities). No improvement or alteration of the premises will be made without the prior written consent of the Lessor. ENTRY AND INSPECTION: Lessee will permit Lessor or Lessor's agents to enter the premises at reasonable times and upon reasonable notice for the purpose of inspecting the premises, and will permit Lessor, at any time within ninety {90) days prior to the expiration of this Lease, to place upon the premises any usual "For Lease" signs and permit persons desiring to lease the premises to inspect the premises at reasonable times. 10. INDEMNIFICATION OF LESSOR: Lessor will not be liable for any damage or injury to Lessee, or any other person, or to any property, occurring on the premises. Lessee agrees to hold Lessor harmless from any claims for damages arising out of Lessee's use of the premises, and to indemnify Lessor for any expense incurred by Lessor in defending any such claims. 11. POSSESSION: If Lessor is unable to deliver the premises to Lessee for the installation of tenant fixtures and furniture by March 1, 2001, Lessor will not be liable for any damage caused by the delay, nor will this Lease be void or voidable, but Lessee will not be liable for any rent until possession is delivered and the tenant improvements are substantially completed. Lessee may terminate this Lease if possession of the premises is not delivered to Lessee on or before April 15, 2001. 12. LESSEE'S INSURANCE: Except for such loss or damage as may be caused by the negligent or willful act of Lessor, its agents, or employees, Lessor shall not be liable to Lessee, its officers, agents, employees, customers, invitees or third parties for loss of or damage to property, including good, wares and merchandise, or for injury or death to persons, in on, or about the premises, and Lessee agrees to indemnify and save and hold Lessor harmless from and on account thereof howsoever arising or by whomever caused. During the term thereof, Lessee shall maintain in full force and effect with insurance companies "A" rated or better a comprehensive liability insurance policy, naming Lessor as an additional insured,applicable to the Premises and the activities of Lessee therein with a combined single limit for bodily injury and property damage of not less than $1,000,000. A certificate evidencing such coverage and providing that the insurance may not be canceled without thirty (30) days prior written notice to Landlord shall be provided to Landlord within ten (10) days from occupancy. Lessee shall maintain in effect policies of insurance covering its fixtures, inventory, equipment and leasehold improvements located on the premises, in an amount not less than one hundred percent (100%) of their full replacement cost, providing protection against any peril included within the classification Special Form Coverage, including insurance against sprinkler damage, vandalism and malicious mischief. 13. LESSOR'S INSURANCE: Lessor will maintain hazard & liability insurance covering one hundred percent (100%) actual replacement value of the Building throughout the Lease term. Lessor's insurance will not insure Lessee's personal property, leasehold improvements, or trade fixtures. The foregoing policy of insurance shall be written with rent loss endorsements in favor of Lessor to cover a period of not less than twelve (12) months. 14. SUBROGATION: To the maximum extent permitted by insurance policies which may be owned by the parties, Lessor and Lessee waive any and all rights of subrogation which might otherwise exist. 15. UTILITIES & SERVICES: Lessor will pay for the following services to be delivered to the premises: electricity, water, gas, sewer and trash. Lessor shall provide janitorial services to the Premises five days per week. Lessee shall be responsible with all other services and utilities desired by Lessee, including but not limited to, telephone service. 16. SIGNS: Lessee, at Lessee's expense, shall be permitted to install signage on the front door of the Premises. All signage must be approved by the Lessor prior to installation and must comply with all applicable municipal codes. Lessor shall provide tenant signage on the building directory. 17. ABANDONMENT OF PREMISES: Lessee will not vacate or abandon the premises at any time during the term of this Lease. If Lessee does abandon or vacate the premises, or is dispossessed by process of law, or otherwise, any personal property belonging to Lessee left on the premises will be deemed to be abandoned, at the option of Lessor. 18. CONDEMNATION: In the event that the premises are condemned in whole or in part and the remainder is not susceptible for use by the Lessee, this Lease will terminate upon the date which the condemner acquires possession. All sums which may be payable on account of any condemnation will belong solely to the Lessor; except that Lessee will be entitled to retain any amount awarded to him&er for his/her trade fixtures or moving expenses. 19. TRADE FIXTURES: Any and all improvements made to the premises during the term will belong to the Lessor, except trade fixtures of the Lessee. Lessee may, upon termination, remove all his&er trade fixtures, but will pay for all costs necessary to repair any damage to the premises Initials:~.__ occasioned by the removal. 20. DESTRUCTION OF PREMISES: In the event of a partial destruction of the premises during the term, from any cause, Lessor will promptly repair the premises, provided that such repairs can be reasonably made within sixty (60) days. Such partial destruction will not terminate this Lease, except that Lessee will be entitled to a proportionate reduction of rent while such repairs are being made, based upon the extent to which the making of such repairs interferes with the business of Lessee on the premises. If the repairs cannot be made within sixty (60) days, this Lease may be terminated at the option of either party by giving written notice to the other party within the sixty (60) day period. 21. HAZARDOUS MATERIALS: Lessee will not use, store, or dispose of any hazardous substances upon the premises, except the use and storage of such substances that are customarily used in Lessee's business, and are in compliance with all environmental laws. Hazardous substances means any hazardous waste, substance or toxic materials regulated under any environmental laws or regulations applicable to the property. Lessee will be responsible for the cost of removal of any toxic contamination caused by lessee's use of the premises and indemnify Lessor from any damages caused by Lessee. Notwithstanding anything to the contrary contained in this, Lessee shall not be p~rmitted to store or sell bottled oxygen on the premises. 22. INSOLVENCY: The appoinlment of a receiver, an assignment for the benefits of creditors, or the filing of a petition in bankruptcy by or against Lessee, will constitute a breach of this Lease by Lessee. 23. DEFAULT: In the event of any breach of this Lease by Lessee, Lessor may, at his/her option, terminate the Lease and recover from Lessee: (a) the worth at the time of award of the unpaid rent which had been earned at the time of termination; (b) the worth at the time of award of the amount by which the unpaid rant which would have been earned after termination until the time of the award exceeds the amount of such rental loss that the Lessee proves could have been reasonably avoided; (c) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (d) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee's failure to perform his/her obligations under the Lease or which in the ordinary course of things would be likely to result therefrom. Lessor may, in the alternative, continue this Lease in effect, and Lessor may enforce all of Lessor's rights and remedies, under the Lease, including the right to recover the rent as it becomes due under the Lease. Lessor may terminate Lessee's right to possession of the premises without terminating this Lease. In such event, Lessor may retake possession of the premises and relet the premises to a replacement tenant, in which event Lessee shall be liable for any amount by which the rent due and payable under this Lease exceeds rent paid by the replacement tenant, plus Lessor's costs to relet the premises, including leasing commissions and the cost of tenant improvements. If said breach of Lease continues, Lessor may, at any time thereafter, elect to terminate the Lease. The remedies set forth in this section are cumulative and will not limit any other rights or remedies which Lessor may have. If the Lessee fails to appropriate funds as permitted in Section 38 hereof, the remedies available to the Lessor shall be restricted to those described above, provided that once it has relinquished the Project and made any payments due hereunder for its then current fiscal year, the Lessee shall have no further liability under this agreement. 24. OPTION TO LEASE ADJOINING SPACE: In event the adjoining space is vacant or becomes vacant during the term of this Lease, Lessee shall have an Option to Lease the Adjoining Space provided that this Lease remains in full force and effect, and that no default under this Lease has occurred. Lessor shall notify Lessee in writing upon vacation of the adjoining space. Such Option for Adjoining Space will be granted and become effective only if exercised by written notice to Lessor, and once exercised, is irrevocable. In the event Lessee fails to give such written notice to Lessor not later than thirty (30) days following receipt of Lassor's written notice, the Option for Adjoining Space shall automatically terminate and expire, and Lessee shall have no further right to exercise the Option for Adjoining Space. Prior to delivery of possession, Lessee shall execute an Amendment to this Lease reflecting the addition to the prmmises, the additional Base Rent and Additional Rent, the change in ratio of the Prarnisas to the Building area, and any other revisions necessary because of such additional space being added to the original Premises. All other terms and conditions of this Lease shall apply to the additional Premises. 25. DEPOSIT REFUNDS: The balance of all deposits will be refunded within thirty (30) days (or as otherwise required by law), from date possession is delivered to Lessor or his/her authorized agent after expiration of the term of this Lease, together with a statement showing any charges made against the deposits by Lessor. 26. ATTORNEY FEES: In any action or proceeding involving a dispute between Lessor and Lessee arising out of this Lease, the prevailing party will be entitled to reasonable attorney fees. 27. WAIVER: No failure of Lessor to enforce any term of this Lease will be deemed to be a waiver. 28. NOTICES: Any notice which either party may or is required to give, will be given by mailing the notice, postage prepaid, to Lessee at the premises, or to Lessor at the address shown in Item 2, or at such other places as may be designated in writing by the parties from time to time. Notice will be effective five days after mailing, or on personal delivery, or when receipt is acknowledged in writing. 29. HOLDING OVER: Any holding over after the expiration of this Lease, with the consent of Owner, will be a month-to-month tenancy at a monthly rent of one and one half (1 1/2) times the current monthly rent, payable in advance and otherwise subject to the terms of this Lease, as applicable, until either party will terminate the tenancy by giving the other party thirty (30) days written notice. 30. TIME: Time is of the essence of this Lease. 31. HEIRS, ASSIGNS, SUCCESSORS: This Lease is binding upon and inures to the benefit of the heirs, assigns, and successors of the parties. 32. TAXES: Lessor shall be responsible for all real property taxes assessed to the premises. Lessee shall be responsible for any taxes assessed in connection with Lessee's property. 33. PARKING: Lessee shall be entitled to a proportionate share of the park/rig for the Building; provided, Lessor reserves the right to assign all of Lessee's parking to certain areas in the parking lots for the Building. 34. OPTION TO RENEW: Provided that Lessee is not in default in the performance of this Lease, Lessee will have the option to renew the Lease for once (_L) additional term(s) of sixty (6_.~) . months, commencing at the expiration of the initial Lease term. All of the terms and conditions of the Lease will apply during the renewal term, except that the monthly rent will be at the "the? market rent, which shall not be less than the rent for the previous year. The option will be exercised by written notice given to Lessor not less than ninety (90) days prior to the expiration of the initial Lease term. If notice is not given within the time specified, this Option will expire. 35. LESSOR'S LIABILITY: In the event of a transfer of Lessor's title or interest to the property during the term of this Lease, Lessee agrees that the grantee of such title or interest will be substituted as the Lessor under this Lease, and the original lessor will be released of all further liability; provided, that all deposits will be transferred to the grantee. 36. ESTOPPEL CERTIFICATE: (a) On ten (10) days' prior written notice from Lessor, Lessee will execute, acknowledge, and deliver to Lessor a statement in writing: (1) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect), the amount of any security deposit, and the date to which the rent and other charges are paid in advance, if any; and (2) acimowledging that there are not, to Lessee's knowledge, any uncured defaults on the part of Lessor, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective buyer or encumbrancer of the premises. (b) At Lessur's option, Lessee's failure to deliver such statement within such time will be a material breach of this Lease or will be conclusive upon Lessee: (1) that this lease is in full force and effect, without modification except as may be represented by Lessor; (2) that there are no uncured defaults in Lessor's performance; and (3) that not more than one month's rent has been paid in advance. (c) if Lessor desires to finance, refmance, or sell the premises, or any part thereof, Lessee agrees to deliver to any lender or buyer designated by Lessor such fmancial statements of Lessee as may be reasonably required by such lender or buyer. All financial statements will be received by the Lessor or the lender or buyer in confidence and will be used only for the purposes set forth. 37. SUBORDINATION: This Lease, at Lessor's option, shall be subject and subordinate to the lien of any mortgages or deeds of trust now or hereafter placed by Lessor on or against the premises. Such subordination shall be automatic without the necessity of the execution and delivery of any further instruments on the part of Lessee to effectuate such subordination; provided, however, that so long as Lessee complies with the obligations imposed upon Lessee in this Lease, neither Lessee nor its successors and permitted assigns (if approved by Lessor) shall be disturbed or molested in its possession of the premises. Tenant hereby acknowledges that this Lease is subject to the approval of Lassor's mortgagee, and agrees to execute such reasonable modifications and amendments to this Lease as may be required as a condition to such approval or such mortgagee's financing of the premises. Tenant furthere covenants and agrees to execute and deliver upon demand without charge therefor, such further instruments evidencing the subordination of this Lease to any such mortgage or deed of trust as may be required by Lessor or prospective purchasers or mortgagees fo the premises. 38. APPROPRIATION OF FUNDS AND RENEWAL OF AGREEMENT LEASE TERM: The Lessee, by entering into this agreement, acknowledges its current intention to make all Lease Payments due hereunder on the dates such Lease Payments are due (but does not commit to a legal or other obligation to make such payments or to incur any liability beyond its then current Fiscal Year). In the event the Lessee's governing body fails to include in its proposed budget or related documents for the ensuing Fiscal Year or fails to appropriate sufficient funds to fully fund all of Lessee's obligations to make Lease Payments hereunder for any future Fiscal Year, then the Lessee will immediately notify the Lessor or its assignee of such occurrence and the Lessee's right to possession of any property constituting the Project, and all its interest in the Project, shall terminate as of September 30 of the Fiscal Year in which the failure to appropriate occurs. In such case, the obligations of the Lessee and remedies of Lessor shall be limited as provided in Section 23. In the event that the Lessee'sgoveming body does appropriate and budget funds sufficient to make the Lease Payments for a Fiscal Year then the Lease Term of this Agreement shall be deemed renewed for such Fiscal Year. The Lessee agrees during the current Fiscal Year and during each Fiscal Year that the Lease Term of this Agreement is renewed (i) staff of the Lessee will present for consideration by the City Council of Lessee a budget request for the ensuing Fiscal Year containing an amount sufficient to make the Lease Payments scheduled for such Fiscal Year, (ii) that the City Council of the Lessee shall, for the ensuing Fiscal Year in which the Lease Payments are scheduled to be made, consider a budget request and appropriation of the expenditure of an amount sufficient to allow Lessee to make all Lease Payments due in such Fiscal Year; (iii) that, to the extent funds have been appropriated for the current Fiscal Year, it will make all such Lease Payments; and (iv) that if sufficient funds are appropriated and budgeted by it for the next Fiscal Year for the lease of the Project, then the Lease Term of this Agreement shall be deemed renewed for such Fiscal Year and shall be effective for such Fiscal Year. Nothing in this Section or elsewhere in this Agreement shall be deemed in any way to obligate the Lessee beyond its current Fiscal Year. If the Lessee fails or refuses to renew the Lease Term of this Agreement for the next Fiscal Year as permitted above, makes any payment due for the then current Fiscal Year from funds budgeted and appropriated for that purpose and relinquishes the Project as provided in Section 23 hereof. Then Lessee shall have no further liability under this Agreement. 39. SPECIAL PROVISIONS: Additional provisions are set forth in Exhibit A, attached hereto. 40. ENTIRE AGREEMENT: The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by all parties. The following exhibits are a part of this Lease: Exhibit A: Special Provisions: Owner's Shell and Building Standard Tenant Improvements Exhibit B: Premises Floor Plan Initials .'~.__ The undersigned Lessee acknowledges that it has thoroughly read and approved each of the provisions contained in this Lease, and agrees to the terms and conditions specified, and acknowledges receipt ora copy hereof. ACCEPTANCE Lessor: William A. Hon Date: 6 Lessee/~ of Meridian l(b'b~rt ~fC~r~ie ~ Its: Mayor Its: City Clerk Initials.'~ EXHIBIT A 660 E. WATERTOWER LANE OWNER'S SHELL AND BUILDING STANDARD TENANT IMPROVEMENTS I. CORE IMPROVEMENTS TO BE PERFORMED BY OYVNER The following is a description of the construction work provided by the Owner. A. Owner's Shell Core Structure 1. Structure - The Owner shall construct all of the structural walls, floor slab, and roof of the building, together with all finished exterior surfaces, parking, landscaping and other exterior improvements. 2. Interior Construction - The Owner shall construct all mechanical rooms which serve the structure as a whole. B. Core Mechanical The Owner shall install roof mounted package HVAC units. C. Core Electrical The Owner shall provide complete electrical to all exterior areas including Tenant sign illumination, the main switchgear and meter panels. D. Core Plumbing Thc Owner shall supply restrooms to conform with Uniform building code for specific building use. E. Core Communications The Owner shall supply access to a central communications room for the Tenant's communications carrier. Terminal communication panels relating specifically to the Tenant's premises shall be located outside of the common communications room, and inside the useable area of the Tenant's premises only if required by Tenant. F. Core Fire Sprinklers Owner shall provide fire sprinkler risers, alarms, lines and one set of heads above the ceiling line. G. Core Entrance and Glazing The Owner shall provide all exterior glazing which shall be 1" insulated glass with solar grade tinting. IL Hardware Entrance Deadbolt: Commercial grade locks. BUILDING STANDARD TENANT IMPROVEMENTS TO BE PERFORMED BY OWNER II. lnitials:~& ~ ON BEHALF OF TENANT A. Space Planning The Owner's architect shall do all space planning unless otherwise provided for in the Lease or otherwise agreed to by the Owner and Tenant in writing. B. Building Permits for Tenant Improvements The Owner shall obtain from the governmental entities having jurisdiction the Building Permits required for the construction/installation of the Tenant improvements within the Tenant's premises. The cost of all building and other permits for Tenant's use shall be part of the Owner's contribution to Building Standard Tenant Improvements. C. Tenant Demising Walls Tenant demising walls between leased spaces, shall have 6" studs at 16" on center with 5/8" type 'X' gypsum wallboard on each side. Fill cavity with R-19 Insulation. Extend wall to underside of roof strncture and scribe to fit around obstructions. D. Interior Partition Walls: Shall be provided as shown on attached floor plan with 3-1/2" studs at 16" on center with 5/8" gypsum wallboard on each side. Extend wall to the underside of the suspended ceiling with a compressible gasket s~'ip and four-way wire bracing and strut per UBC Standard 25-2 for seismic brace. Acoustical sealant to be applied under base plates. Finish to be exposed gypsum board surfaces. Interior Tenant Doors Doors, frames and hardware shall be provided as shown on the attached floor plan. Interior doors shall be 3' by 7' by 1-1/4, solid core, paint grade with hollow metal frames. Interior doors, unless pre-finished, shall be primed and finished with two coats of semi-gloss enamel paint. F. Interior Wall Finishes Interior finishes in the office areas shall be gypsum wallboard with light spray texture, one coat of primer and one coat of finish to cover. Partition walls and interior wall assemblies in office areas shall be fmished with 4" vinyl base. G. Hardware Interior partitions shall be furnished with Kwikset passage locks or equal. Hardware finish to be US26D or equal. H. Interior Woodwork: Maple wood window sills and skirts. 1. Interior Glazing: Not Included in Building Standard Tenant Improvements. Floor Covering Floor covering to be selected by Tenant shall be Building Standard 26 oz. Commercial Carpet with 3/8" lek pad and tack s~'ip application ($15.00 per sq. yd. allowance) in office Initials~__ I11. K. Ceilings Office ceilings shall have T-Bar ceilings with Building Standard 2'x4' 'USG Fissured SLT ceiling tiles with DONN DX 15/16" grid or approved equal. White finish (050) on both tile and grid. L. Cabinets and Coffee Bar Owner will provide coffee bars with sinks and lower cabinets as shown on the attached floor plan. Coffee bars to have laminated plastic tops. Cabinets to be building standard plastic laminate. M. Ceiling Fixtures One 2'x4' lay-in, florescent tube fixture for every 80 sq. It. of useable area within the Tenant's premises. N. Electrical Distribution 1. Two duplex wall outlets in each office area within the Tenant's premises. 2. Single pole light switch: one per 250 sq. ft. of useable office area of within the Tenant's premises. 3. Battery powered emergency light per code. 4. Building exit light per code. 5. Phone data outlet: one per 150 sq. ft. of useable office area within the Tenant's premises. Phone data wiring is not part of the Building Standard Tenant Improvements. O. Fire Sprinklers and Protection System 1.15 sprinkler heads are allowed for each 144 sq. fi. of useable office area within the Tenant's premises. One 5-lb. wall mounted fire extinguisher as required. P. HVAC Standard multi-zone heating and cooling, adequate for normal office with one standard thermostat per zone. Building Standard Tenant Improvements shall include air distribution, with the necessary connections to make the systems operable. Q. Window Treatment: Horizontal wood blinds. TENANT IMPROVEMENTS TO BE COMPLETED AT TENANT EXPENSE A. Electric Fixtures and Equipment: All electric fixtures and equipment not included above. B. Gas Connections: All gas connections within Tenant's space not included above. C. Telephone: All conduits for telephone wires or computer networks from the central building panel to the leased premises and in the leased premises. Tenant shall make all arrangements for telephone service. lnitials'~ti~ D. Walls: All special wall covering, glass partitions, or other special conslruction within the leased area. E. Coves and Ceilings: All special coves and ceilings. F. Furniture and Fixtures: All cabinets, woodwork, fixtm'es and equipment not furnished by Owner. G. Floor Coverings: All floor coverings above the allowance. H. Painting: Extra colors or special paint I. Alarm Systems: All alarm systems or other protective devices. J. Special Plumbing: All extra plumbing or fixtures required for tenant's special needs. K. Special Ventilation: All ventilation and related equipment, other than standard air conditioning/heating in office space. L. Hot Water Heater: Except as required for the toilet rooms and coffee bar sink (if included.) M. Electric Floor Outlets. N. Signs: Sign and installation of sign (copy and design subject to Owners approval). O. All architects' fees above allowance, special licensing fees and city or county permits for interior of Tenant's space. P. ACHD fees above business park rates. EXItlBIT B PREMISES FLOOR PLAN SECOND FLOOR PLAN