HomeMy WebLinkAbout2nd Amdmt to Lease Agreement with William A. Hon Family Limited Partnership
SECOND AMENDMENT TO LEASE
This Second Amendment to Lease, made and entered into November 3ti~'2004 by and between
William A. Hon Family Limited Partnership, an individual (hereinafter "Lessor") and the City of
Meridian, a Body Corporate of the State ofIdaho (hereinafter "Lessee").
WITNESSETH:
WHEREAS, Lessor's predecessor in interest, William A. Hon, and Lessee entered into a lease dated
December 19, 2000, (hereinafter "Lease"), under the terms of which Lessee leased general office
space as defined in the Lease (hereinafter the "Premises") at 660 East Watertower Lane, Meridian,
Idaho (hereinafter the "Building");
WHEREAS, Lessor and Lessee amended said Lease on May 8, 2003 to expand the premises.
WHEREAS, Lessor and Lessee have agreed to further expand Lessee's existing premises and to
extend the term of said Lease per the terms stated herein.
WHEREAS, Lessor and Lessee upon the execution of this Second Amendment to Lease hereby
mutually amend the Lease under the terms and conditions hereinafter set forth:
NOW THEREFORE, in consideration of the mutual covenants herein contained, and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
agree as follows:
Premises: Lessee shall lease additional space within the Building. The Demised Premises leased
per the Lease shall be expanded as follows:
Suite Number Previous Rentable Expanded Rentable
Square Feet Square Feet
202 5,987 3,371 RSF
150 2,564 ORSF
Total Rentable Square Feet 8,551 11,922 RSF
1.
Commencement Base Rent for Expansion Space: The commencement of Base Ren~~~~
Expansion Space portion of the Lease shall beginDecember~ (0,20(14-.-'1 art'"' ~ \'..
Lessee's Pro Rata Share: Lessee's Pro Rata Share as defined in Section 3 of the Lease! \J.{, (ft
Agreement shall be 63.28%.
Tenant Improvements: Lessor shall improve the Expansion Space as per a mutually
acceptable space plan and specifications to be signed by both Lessor and Lessee prior to
construction.
Delivery of Premises: Lessee's occupancy of the added premises shall be deemed by Lessor
2.
3.
4.
as acceptance of the added premises condition by Lessee.
Rent: Lessee hereby covenants and agrees to pay Lessor, or assigns the following monthly rent:
Period:
Total Monthly Rent:
Dec.l,2004-March31,2005
$16,751,21
April 1,2005 - March 31,2006
$17,247.96
April I, 2007 - March 31, 2007
$17,744.71
Term: The term of the lease shall be extended to March 31,2007.
In the event of a conflict between the terms of the Lease and this Second Amendment to Lease, the
terms of this Second Amendment to Lease shall control. Except as expressly modified by this Second
Amendment to Lease, the Lease shall remain unchanged and in full force and effect. This Second
Amendment to Lease shall not be modified or amended except in writing, signed by the parties hereto.
Notwithstanding the foregoing, Section 38 of the Lease is ratified and affirmed as applicable to this
Amendment.
[End of text]
IN WITNESS WHEREOF, we have set our hands the day and year first above written.
Lessor: William A. Hon Family Limited Partnership
BY:~~c.~
William A. Ron
Date:tZ Ivf~cf
I I
Its:
General Partner
Lessee: City of Meridian
BY~~
T Weerd
Date: 11- 3(}-,-1J'I-
Its:
Mavor
~I?vd 6tf Ct~ &Wncd /(-]c;-tJ4-
2
3
City of Meridian
660 Watertower Lane
Lease Breakdown
12/1/04 - 3/31/05
Suite #: RSF: Mo. Lease Annual Lease: $/RSF
150 2,564 $3,525.50 $42,306.00 $16.50
202 (existing) 5,987 $8,731.04 $104,772.50 $17.50
202 (expansion) 3371 $4 494.67 $53 936.00 $16.00
11,922 $16,751.21 $201,014.50 $16.86
4/1/05 - 3/31/06
Suite #: RSF: Mo. Lease Annual Lease: $/RSF
150 2,564 $3,632.33 $43,588.00 $17.00
202 (existing) 5,987 $8,980.50 $107,766.00 $18.00
202 (expansion) 3.371 $4.635.13 $55.621.50 $16.50
11,922 $17,247.96 $206,975.50 $17.36
4/1/06 - 3/31f{)7
Suite #: RSF: Mo. Lease Annual Lease: $/RSF
150 2,564 $3,739.17 $44,870.00 $17.50
202 (existing) 5,987 $9,229.96 $1l0,759.50 $18.50
202 (expansion) 3.371 $4775.58 $57307.00 $17.00
11,922 $17,744.71 $212,936.50 $17.86
111241Z004
RECORDED" R~GUEST Of
ADA COmITY RECCf!.O(R MERfDIAN9;fr
J. l1AVIl') NA'lr.RfW .t1..
ZlIIi ~~;":' I' 3~ . 1.¡;t'¡'ÕïO~PI72 62' ~
COMMERCIAL LEASE AND DEPOSIT RECEIPT
BY
CITY OF MERIDIAN
FOR
6,711 SQUARE FEET OF OFFICE SPACE
AT
660 E. WATERTOWER LANE, SUITE 250
MERIDIAN, ill
TO
WILLIAM A. HON
P.O. BOX 190870
BOISE, ill 83719
DECEMBER 19, 2000
COMMERCIAL LEASE AND DEPOSIT RECEIPT
RECEIVED FROM C itv of Meridian. a Bodv Comorate 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 85 first month's rent.
Lessee offers to lease fi'om Lessor the premises (the "Premises") situated in the City of Meridian,
County of Ada, State ofIdaho, deseribed as 6,711 square feefofoffice space in Suite 250 of the bwlding
located at 660 E. Watertower Lane (the "Building"), upon the following tenus and conditions:
1.
TERM: The term of this Lease wili be sixty (60) months commencing April I, 2001 (the
"Occupancy Date"). At any time after the Occupancy Dale, 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 flXtuIe&, a computer, a telephone system and mov...in furniture.
Further, Lessor agrees to allow Le5see to operate in the Premises upon completion of the tenant
improvements outlined on ExWbit B of this Agreement.
2.
RENT: Lessee hereby covenants and agrees to pay Lessor, or assigns, the total sum of Five
Hundred Seventy Thousand Four BWldred Thirty Five Dollars ($570,~135.00) payable in monthly
instalhnents of $8,948.00 fur months One through Twelve (I. 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. 4g), and $10,066.50 for months forty-
nine through sixty (49 " 60), herein "Base Rent". All rents will be paid to Lessor or hislher
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 live days after due date, Lessee agrees to pay a lat. 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 Dot a grace period, and Lessor is entitled to
make written demand for any rent if not paid when due.
3.
OPERATING EXPENSE INCREASES: The Base Rent payable hereonder shall also be
annuaUy 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 thát term is defined below) paid or payable by Lessor, or estimated to
be paid hy Lessor, during the immediately preceding calendar year.
As used in this Lease, the term "Operating Expenses" means:
"Real Estate TaKes" which shall mean and indude 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, IIIld maintenance of the Bwlding 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; maintellllUce and repairs; and any other costs,
charges, and expenses that WIder generally accepted accnunting principles
would he 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 Bw]ding, induding, 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,
!nitia]s~
and the cost of waste disposal; and
"Lessee's Proportionale Share" means the percentage equal to tbe square
footage leas_ed to Lessee under this Lease (6,711 square feet) over tbe total
rentable square footage in the Building.
4.
USE: The premises are to be used for the operation of l!:ovemmentaL offices, and for no other
purpose, without prior written consent of Lessor. Lessee will not commit any waste upon tbe
premises, or any nuisance or act wbicb may disturb the quiet enjoyment of any tenant in the
building.
s.
USES PROIUBITED: Lessee will not use any portion of the premises for purposes other than
those specified. No use will be made or pemilled to be made upon the premises, nor acts done,
which will increase the existing rale of insurance upon the property, or cause cancellation of
insurance policies covering the property. Lessee will not conduct or pemit any sale by auction on
the premises.
6.
ASSIGNMENT AND SUBLETTING: Lessee shall have the right to sublet all or any portion of
the Premises Dr 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 Dot assign tìús 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 suþletting to another party without consent will
be void and, at the option of the Lessor, will tenninate Ihis Lease. Lessee will nol 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 fortb in the Lease.
7.
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
deeme~ a breach of this Lease.
8.
MAINTENANCE, REPAIRs, ALTERATIONS: Unless otherwise indicated, Lessee
acknowledges that the premises are in good order and repair and Lessor warrants that at the lime
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
syslems 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, Donnal wear and tear and
damage from casualty excepted. Lessor will be responsible for maintenance of roof, exterior
walls, and slrUcwral 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.
9.
ENTRY AND INSPECTION: Lessee will permit Lessor or Lessor's agents to enter the
premises at reasonable tilnes and upon reasonable notice for the purpose of inspecting the
premises, and will permit Lessor, at any time within ninety (90) days prior 10 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 Ihe premises at reasonable times.
10. INDEMNIFICATION OF LESSOR: Lessor wi1l not be liable for any damage or injury to
Lessee, or any other person, or to any property, occnrring 00 the premises. Lessee agree. to hold
Lessor hannless 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.
Initials:1/ti If
11. POSSESSION: If Lessor is unable to deliver the premises to Lessee for the installation of tenant
fiKlllres and furniture by March 1. 200 1. 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
tennmate this Lease if possession of the premises is not delivered 00 Lessee on or before Annl ]5
~
12. LESSEE'S INSURANCE: Except for sucb 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 00 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 tenD thereof, Lessee shall maintain in full
force 8Itd 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 bodüy injury and property damage of not less than
SI,OOO,OOO. A certificate evidencing such coverage and providing that the insurance may not be
canceled without thirty (30) days prior written notice to Lmldlord shall be provided to Landlord
within ten (10) days from occupancy. Lessee sball 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 bundred percent (100"A» of their full replacement cost, providing
protection against any peril included within the classification Special Fonn 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 tbroughout the Le..e 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 Inss endorsements in favor
ofL"ssor to cover a period of not less than twelve (12) months.
14. SUBROGA nON: 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 whicb migbt otherwise
exist.
IS. UTD..ITIES & SERVICES: Lessor will pay for the following services to be delivered to the
premises: eleclricity, water, gas, sewer and trash. Lessor sball 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 oftbe
Premises. All signage must be approved by the Lessor prior to installation and must comply with
all applicable municipal codes. Lessor shall provide tenant signege 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 tenninate upon the date which
the condemnor acquires possession. AI! swns which may be payable on account of any
condemnation wiD belong solely to the Lessor; except that Lessee will be entitled to retain any
amount awarded to himlher for his/ber trade flJ<tures 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 histher trade fi¡<tures, but will pay fur all costs neç.gsary to repair any damage to the premises
Initials:'214#--
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 repajr the premises, provided that such repairs can
be reasonably made within sixty (60) dayg. Such partial destruction will no1 tenninate this Lease,
except that Lessee will be entitled to a proportionate reduction of rent while such repairs are heing
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, tills Lease may be
terminated at the option of either party by giving written notice to the other party within tbe sixty
(60) day period.
21. HAZARDOUS MATERIALS: Lessee will not use, store, or dispose of any hazardous
substances UpOO the premises, except the use and storage of such suhstilJK:es that are customarily
used in Lessee's business, and are in compliance with all environmental Jaws. Hazardous
substances means any hazardous waste, substance or toxic materials regulated \tnder any
environmental!aws Of regulations applicable to the property. Lessee will be responsible for the
cost of removal of any toxic cootamination caused by lessee's \tse of the premises and indemnity
Lessor from any d&mages ClW$ed by Lessee. NOlWithl!lllllding anything to the contrary contained
in this, Lessee shall not be pennitted to slore or seUbottled oxygen on the premises.
22. INSOLVENCY: The appoinbnent oh receiver, an assignment for the benefits of creditors, or
the filing of a petition in bankruptcy by or against Lessee, will constitute a breacb of tbis 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 eamed at the time of termination; (b) the wortb at the time of award of the amount
by which the unpaid rent which would have been earned after termination until tbe time of thè
award exceeds the amount of such rental 10.. that the Lessee proves could have been reasonably
avoided; (c) the worth at the time of award of the amoWlt by which the unpaid rent for the balance
of the term after the time of award exceeds the amoWlt 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 bislher obligations under the
Lease or which in the ordinary course of things would be likely to reSllJt 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 d\te under the
Lease. Lessor may terminate Lessee's right to possession of the premises without tenninating
this Lease. In sucb event, Lessor may retake possession ofthe 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
reJet the premises, including leasing commissions and the cost of tenant improvements. If said
breach of Lease continues, Lessor may, al any time thereafter, elect to tenninate the Lease. The
remedies set forth in this sec:tion are cumulative and wü] 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 my 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 sball 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 0011y if exercised by written notice to
Lessor, and once exercised, is iITevocable. ]n the event Lessee fails to give such written notice to
Lessor not later than Ihirty (30) days following IWeipt of Lessor's written ootke, the Option for
Initi.l~
Adjoining Space shall automatically tenninate and expire, IIIld Lessee shall have no further right to
exercise the Option for Adjoining Space. Prior to delivery of possession, Lessee shall execute an
Amendment to iliis Lease reflecting ilie addition to the premises, the additional Base Rent and
Additional Rent, the change in ratio ofilie Premises to ilie Building area, and any otber revisions
necessary because of such additional space being added to the original Premises. An other terms
and conditioßS of this Lease sbaII apply to the additional Premises.
15. 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 hislher authorized
agent after expinltion of the telm of this Lease, together with a statement showing any charges
made against the deposits by Lessor.
16. 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 attomeyfees.
17. WAIVER: No failure of Lessor to enforce anytenn of this Lease will be deemed to be a waiver.
28. NOTICES: Ally notice which either party mayor is reqUired to give, will be given by mailing 1I1e
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 mailiDg, or on pel1lonal delivery, or when receipt is acknowledged in
writing.
29. HOLDING OVER: Any holding over after Ibe expiration of Ibis Lease, with the consent of
Owner, will be a month-to-month tenancy at a monthly rent of one and one half (I 1/2) times the
culTOnt monthly rent, payable in adv""ce and otherwise subject to the tenns of this Lease, as
applicable, until either party will tenninate the tenancy by giving the other party tbirty (30) days
written notice. .
30. TIME: Time is oflbe essence of this Lease.
31. HEIRS, ASSIGNS, SUCCESSORS: This Lease is binding upon and inures to the benefit ofilie
heirs, assigns, and successors of the parties.
31. TAXES: Lessor shan 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 parking for the Building;
provided, Lessor reserves the right to assign all of Lessee's parking to cenain areas in the parking
lots fur the Building.
34, OPTION TO RENEW: Provided tbat Lessee is not in default in the perfonnance ofthis Lease.
Lessee will have the option to renew tbe Lease for Q!R L..U additional term(s) of ill¡!y (2Q)
months. commencing at the expiration oftbe initial Lease tenD. All of the tenDS and conditions of
the Lease will apply during the renewal term, except ilia! the monthly rent will be at the "thel!"
market rent, wbich 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 ~ days prior to tbe expiration of
the initial Lease term. If notice is not given within the time specified, thiß Option will expire.
35. LESSOR'S LIABIUTY: In the event of a transfer of Lessor's tide or interest to the property
during the telm 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 wiU be released of ali further
liability; provided, that aU 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: (I) certifying that this
Lease is unmodified and in full force and effect (or, if modified, stating the nature of sucb
lnitial~-
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) acknc>wledging 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 ð!lcumbrancer of the premises. (b) At
Lessor'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 perfonnance; and (3) that not mme than one montIJ's rent has been paid in
advance. (c) If Lessor desires to finance, refinance, or sell the premises, or any part thereof,
Lessee agrees to-deliver to any lender or buyer designated by Lessor such [mancial statementS of
Lessee as may be reasonably required by such lender or buyer. All firumcial statements will be
received by the Lessor or the lender or buyer in coofidence and will be used only for the purposes
set forth.
37. SUBORDINATION: This Lease, at Lessor's option, shall be subject and subordirlate 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 willlout the necessity of the execution and delivery of any
further ÌDstrwnenls 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 moiested in
its possession of the premises. Tenant hereby acknowledges that this Lease is subject to the
approval of Lessor'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 exeente 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 (hut 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 irI Seclion
23. In the event that the Lessee's, governing 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 c1l1Tent 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 ofLe..ee 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 expendìtuIe of an amount sufficient to allow Lessee to
make all Lease Payments due in such Fiscal Year; (iii) thai, to the e¡dent 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 Tenn of this Agreement shall be deemedronewed for such Fiscal Year and
shall be effective for such Fiscal Year-
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Nothing in this Section or elsewhere in this Agreement shall be deemed in IIßY way to obligate the
Lessee beyond its current Fiscal Year. If the Lessee fails or refuses to renew the Lease Term of
this Agreement foT the next Fiscal Year as permitted above. makes any payment due for the then
current Fiscal Year ftom funds budgeted and appropriated for tbat purpose and relinquishes the
Project as provided m Section 23 hereof. Then Lessee shall bave no further liability under this
Agreement.
39. SPECIAL PROVISIONS: Additional provisions are set forth in Exhibit A. attached heretG.
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: Snecial Provisions: Owner's Shellllßd BuildinE! Standard Tenllßt Imorovements
Exhibit B: Premises .FloOT Plan
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The undersigned Lessee acknowledges that it bas thoroughly read and approved each of the provisions
contained in this Lease, and agrees to the terms and conditions specified, and acknowledges receipt of a
copy hereof.
ACCEPTANCE
Lessor: William A. HoD
By:rJ;iJ~C~ ~
Date: l'L(M(O(;
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By: ~~
. orne
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Its:
Its:
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EXHIBIT A
660 E. WATERTOWER LANE
OWNER'S SHELL AND BUILDING STANDARD TENANT IMPROVEMENTS
L CORE JMPROVEMENTS TO BE PERFORMED BY OWNER
The following is a description of the constroclion work provided by the Owner.
A.
Owner's SheD Core Structure
1.
Structure. The OWlJer shaD construct aD of the structural waUs, 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 Mecbauical
The Owner shaD mstall roof mounted package HVAC units,
C.
Core Electrical
The Owner shall prnvide complete electrical to all exterior areas including Tenant sign
illumination, the main switchgear and meter panels.
D.
Core Plumbing
The Owner shall supply resttoonu to conform with Uniform building code for specific
building use.
E. CDre Communications
The Owner shall supply access to a central communications room for the Tenant's
communications caITÍer. Tenninal 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, alall1lS. lines and one set of heads above the ceiling
line.
G.
Core Entrance and Gluing
The Owner shall provide all exterior glazing which shall be I" ;molaled glass with solar
grade tinting,
H.
Hardware
Entrance Deadbolt: Commercial grade locks.
IL
BUILDING STANDARD TENANT rMPROVEMENTS TO BE PERFORMED BY OWNER
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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 Permil.i for Tenant Improvements
The Owner shall obtain from the governmental entities having jurisdiction tbe Building
Permits required for the constnlctionlinstaIJation of the Tenant improvements within the
Tenant's premises. The cost of all building and other permits for Tenant's ~se shall be part of
the Owner's con1ribution to Building Standard Tenant improvements.
c.
Tenant Demising WaDs
Tenant demising walls between leased spaces, shall have 6" studs at 16" on center with 518"
type 'X' gypsum wallboard on each side. Fill cavity with R-19 Insulation. Extend wall to
underside of roof structure and scribe to fit around obstruetions.
D.
Interior Partition Walls:
Shall be provided as shown on attached floor pIan with 3-112" studs at 16" on center with
5/8" gypswn wallboard on eaçh side. Extend wall to the underside of the suspended ceiling
with a compressible gasket s1rip and foUI-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.
E.
Interior Tenant Doors
Doors, fi'arnes and hardware shall be provided as shown on the attached floor plan. Interior
doors shall be 3' by 7' by 1.114, solid core, paint grade with hollow metal fi'arnes. rnterior
doors, un ess pre-finished, shall be primed and finished with two coats of semi-gloss enamel
paint.
F.
Interior Wall Finishes
Interior fmishes in the office areas shall be gypswn wallboard with light spray te1cture, one
coat of primer and one coat of finish to cover. Partition walls and interior wall assemblies in
office areas shall be fmimed with 4" vinyl base.
G.
Hardware
Interior partitions shaD be furnished with K wikset passage locks or equal.
Hardware fmish to be US26D Dr equal.
H.
Interior Woodwork:
Maple wood window sins and skirts.
I.
Interior Glazing:
Not Included in Building Standard Tenant Improvements.
J.
Floor Covering
Floor covering to be selected by Tenant shall be BuiJding Standard 26 oz. Commercial
Cæpet with 3/8" felt pad IIIId tack strip application ($15.00 per sq, yd. allowance) in office
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DI.
areas.
K.
Cei!lngs
Office ceilings shall have ToBar ceilings with Building Standard 2'x4' 'USG Fissured SL T
ceiling tiles with DONN DX 15116" grid or approved equal. White f"mish (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 10 have laminated plastic lOps. Cabinets to be building standard plastic
laminate.
M,
Ceiling Finures
One 2'x4' lay-in, florescent tube fixture for every 80 sq. It of useable area within the
Tenant's premises.
N.
Electrical Distribution
I.
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.
4.
Battery powered emergency light per code.
Building exit light per code.
5.
Phone data outlet: one per ]50 sq. ft. of useable office area within tile Tenant's premises.
Phone data wiring is not part of the Building Standard Tenant Improvements.
O.
Fire Sprinklers aod Protection System
] .15 sprinkler beads are allowed for each 144 sq. ft. of use able office area within the Tenant's
premises. One 5-Ib, wall mounted fire extinguisher lIS required.
P.
HVAC
Standard multi-zone heating and cooling, adequate fur nonnal 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: AU gas connections within Tenant's space not included above.
C. Telephone: All conduits for telephone wires or comp\lter networks from the central building
panel to the leased premises and in the leased premises. Tenant shall make all arrangements for
telephoœ servlœ.
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D.
Walls: All special wall covermg, glass partitions, or other special construction within the
leased area.
E.
Coves and Ceilings: All special coves and ceilings.
F.
Furniture and Fixtures: All cabinets, woodwork, fixtures and equipment not furnished by
Owner.
G.
Floor Coverings: All floor coverings above the allowance.
H.
Painting: Bxtnl colors or special. paint
I.
Alarm Systems: AU alarm systems or other protective devices.
J.
Speelal Plumbing: All extra plumbing or fIXtures required for tenant's special needs.
K.
Special Ventilation: All ventilation and related equipment, other than standard air
conditioninglheating in office space.
L.
Hot Water Heater. Except as required for the toilet rooms and coffee bar sink (ifincluded.)
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 pennits for
interior of Tenant's space.
p,
ACHD fees above business park rates.
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EXlITBIT B
PREMISES FLOOR PLAN
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