20180518IDOA to Staff 1-15.pdf

RECE'VED
z0t$F'fir ,B PH rr: t5
',, :i,ij1;ffiiiii$r,o*STATE OF IDAHO
OFFICE OF THE ATTORNEY GENERAL
I.AWRENCE G. WASDEN
lMay 18,2018
Diane Hanian, Secretary
ldaho Public Utilities Commission
VIA HAND DELIVERY
Re Case No. IPC-E-18-08
ldaho Department of Administration Response to First Production
Request of the Commission Staff to the ldaho Department of
Administration
Dear Ms. Hanian:
Enclosed please find one original and three copies of the above Response. I find
the rules of the Commission to be unclear as to whether the Response must be
served on Staff electronically and the original is enclosed as service along with the
electronic mail message I have sent. I have also enclosed an additional copy.
Please conform and send this copy to me by Statehouse lMail.
I have identified one schematic enclosed with the Response as exempt from public
disclosure. The schematic is provided on yellow paper. I have included the
attorney statement required by Rule 67.03 within the Response, which I have
signed as required by the rule.
I have included a thumb drive with the original copy of the Response labeled as
required by Rule 67.02(b). We do not have the capacity to produce CD-ROMs.
On this thumb drive are the electronic copies of Exhibits B and C to the Petition
sought in Request No. 15. I have also included an electronic copy of the schematic
discussed above. I do not find that the Protective Agreement addresses
distribution of electronic versions of confidential documents. Please distribute
these materials in accordance with best practices for confidential electronic
records.
Contracts & Admlnistrative Law Division
P.O. Box 83720, Boise, ldaho 8i]720-001 0
Telephone: [phone], FAX: [phone]
Located at 954 W. Jefferson, 2nd Floor
Diane Hanian
May 18, 2018
Page 2
Thank you for your assistance in this matter. Please feel free to contact me if you
have any questions. My direct telephone line is 208-334-4145.
S
JUL!K. WEAVER
Deputy Attorney General
Contracts and Administrative Law Division
Enc.
c:Lisa Nordstrom, Counsel, ldaho Power Company
Karl Klein, Deputy Attorney General for the Public Utilities Commission
ftECE,YEDLAWRENCE G. WASDEN
ATTORNEY GENERAL
STATE OF IDAHO
IN THE MATTER OF THE PETITION OF THE
IDAHO DEPARTMENT OF ADMINISTRATION
FOR AN EXEMPTION FROM THE IDAHO
PUBLIC UTILITIES COMMISSION'S MASTER.
METERING RULES FOR ELECTRIC
UTILITIES AND THE IDAHO POWER
MASTER.METERING STANDARDS.
CASE NO. IPC-E-I8-08
IDOA RESPONSE TO FIRST
PRODUCTTON REQUEST OF
THE COMMISSION STAFF TO
THE IDAHO DEPARTMENT OF
ADMINISTRATION
i#J0pfjl tB pH !: t9
,,_ ,, lil ,t ll -i .:tr,,lt trt- i i.., , .j_; Lli/;;ijj.jStO,VS. KAY CHRISTENSEN (ISB No.3103)
Division Chief
Contracts and Administrative Law Division
JULIE K. WEAVER (ISB No. 5062)
Deputy Afforney General
954 W. Jeffersonr 2nd Fl.
P. O. Box 83720
Boise,ID 83720-0010
Telephone: [phone]
Facsimile: [phone]
Attorneys for Petitioner
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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The Idaho Department of Administration (IDOA) provides the documents referenced
below and the information set forth herein in response to the First Production Request of the
Commission Staff dated May 4,2018. The documents enclosed with this Response are as follows:
Schematic of Campus Sub-Meter Placementr
Table Corresponding to Schematic of Campus Sub-Meter Placement
Specification sheets for the following E-Mon models: Class 2000 3-Phase KWH/Demand
Meter; Class 3200 Smart Meter Advanced kWh/Demand Meters with RS-485 Communication;
I The Schematic of Campus Sub-Meter Placement is exempt from public disclosure pursuant to Idaho Code
section 74-105(4)(b). In the event the Campus is sub-metered according to the Schematic, the Schematic represents
critical infrastructure where disclosure is reasonably likely to jeopardize the safety of persons or property.
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 1
Class 3400 Smart Meter Advanced kWh/Demand Meters with Communication; and Class 5000
Smart Meter Advanced kWh/Demand Meters with Communication.
The following sections of the Lease between IDOA and HP Inc.: 3.8 Tenant's Audit Rights
(p. 2l); 5.2 Standard Tenant Services (pp. 28-29); 6.5 Separation of Systems (pp. 324a); A.0
Interim Utility and Hot/Chilled Water Distribution and Central Plant Operations (pp. 3a-35).
Mock-up of cost generator for Campus power
Lease Agreement between IDOA and First Technology Federal Credit Union
Lease between IDOA and Hewlett Packard Enterprise Company
Lease between IDOA and Enterprise Services LLC
Lease between IDOA and Sykes Enterprises, Incorporated
Exemption from Competitive Bidding - Preventative Maintenance
Electronic version of Petition Exhibits B and C2
2 See note 4, infra.
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 2
REQUEST NO. 1: Please provide a schematic drawing for the State of Idaho Chinden
Office Complex (the "Campus") indicating the placement and item tag for each of the sub-meters
planned to directly or indirectly track electrical energy use.
IDOA ANSWER: Enclosed is a schematic of Campus Meter Placement.3 However,
please see the answer to Request No. 2 describing the evolution of IDOA's sub-meter analysis and
options for sub-metering the Campus.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208 -332- I 93 7, Ric. [e-mail]. gov
3 See Note l, supra.
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 3
REQUEST NO. 2: Please provide a table corresponding to the schematic drawing
requested above, which lists the sub-meter by item tag, specified type, whether the sub-meter
directly or indirectly measures electrical energy use, the data collected, and the corresponding units
for the data collected (i.e. kW, kw-h, BTU, degrees, glm, etc.).
IDOA ANSWER: A table is enclosed with this Response. The physical sub-meters
represented in the Schematic of Campus Meter placement and corresponding table, however, no
longer represent IDOA's preferred sub-meter proposal. When IDOA first approached the
Commission concerning sub-metering shortly after acquisition of the Campus, IDOA intended to
install electric meters at the service side of each transformer. As IDOA's experience with the
Campus increased, it learned that the Supervisory Control and Data Acquisition (SCADA)
information provided by HP Inc. during the purchase transaction was limited. IDOA is working
with the company that supports the SCADA system for HP Inc. and has learned that the system
monitors and logs electricity points consisting of 6320 analog inputs. A SCADA tags/points list
is available if Commission Staff would like to review the list.
The information concemingthe SCADA system has led IDOA to considerthree (3) options
for monitoring power consumption at the Campus. In priority of IDOA's preference, these options
are:
Preferred Option: Duplicate SCADA System. The best option for IDOA is to duplicate
the SCADA system server at the Campus, then use that system to log electrical use. A Purchase
Order to Instrument Technologies, Inc., the company that supports the HP Inc. SCADA system,
has been issued by IDOA to investigate and determine what is needed to create a duplicate of the
HP Inc. owned SCADA system. The duplicate system is to be owned by the Department.
Instrument Technologies, Inc. also provides certified calibration ofthe HP Inc. SCADA and would
provide the same to IDOA. No additional equipment is required for this option, except for server
and software needs. The SCADA system runs on a stand-alone RS422 network and uses General
Electric iFix software.
Second-Best Option: Install Limited Sub-Meters. The second-best option for IDOA is to
install Honeywell E-Mon electrical meters or a brand used by Idaho Power at the eiS:f. (8) 12.a7
kV Primary Switches on the building side. This option also requires that IDOA install one (l)
2771480 electric meter at Building 4. The variation for Building 4 is because there is one primary
switch servicing building 2 and building 4. Also required is the installation of four (4) 1201208 or
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 4
2771480 sub-panel electric meters at the locations listed in the meter table. This option will require
thirteen (13) electric meters, along with fiber, due to distance and ethernet network cabling, then
set-up/land onto the Building Automation System (BMS) network. The BMS system
communicates on a stand-alone fiber/ethernet, backnet, lonworks network. The software used is
Honeywell AX.
Third Option: Install 25 Sub-meters.The final option to avoid the disruption and
unnecessary expense of separate metering is to install twenty one (21) Honeywell E-Mon meters
at the service side of each transformer before the building distribution and install four (4)
Honeywell E-Mon meters at sub-panels identified in the table enclosed with this Response. This
option requires twenty five (25) Honeywell E-Mon meters, and will require a good amount of
fiber/ethernet cabling. The third option is the most complicated solution. As in option 2, the
meters will communicate to the BMS system. IDOA has yet to determine which model of E-Mon
electric meter; Class 2000, Class 3200, Class 3400 or Class 5000 are best for the application.
Specifications for each type are enclosed with this Response.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208-332-193 7, [e-mail]. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 5
REQUEST NO. 3: Please provide the specification or manufacturer cut sheet that details
each type of sub-meter planned for use in the table requested above.
IDOA ANSWER: Included with this Response are specification sheets for the following
E-Mon models: Class 2000 3-Phase KWH/Demand Meter; Class 3200 Smart Meter Advanced
kWh/Demand Meters with RS-485 Communication; Class 3400 Smart Meter Advanced
kWh/Demand Meters with Communication; and Class 5000 Smart Meter Advanced kWh/Demand
Meters with Communication. See answer to Request No. 2 above concerning these sub-meters.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208 -332- 1 93 7, Ric. [e-mail]. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 6
REQUEST NO. 4: Please provide a detailed description of the methodology to allocate
the Idaho Power Campus-wide billing to all the sub-entities (including leases). This description
should provide enough detail so it describes the calculations from the data collected from all the
sub-meters (identified by item tag) and how this data will be used to reconcile and allocate the
different charges within the overall campus-wide bill (i.e. customer, demand, energy) to all the
sub-entities.
IDOA ANSWER: A mock-up of a cost generator for the Campus is enclosed. The
enclosed mock-up allocates cost using two methods: one if sub-meters are placed on transformers,
and the other if sub-meters are placed on Switch Gear. IDOA will create one specifically for the
SCADA, if it is able to use that system.
In the mock-up, the "bill" is populated first with information from the Idaho Power
Company bill; the billing period date, the kWh used and the dollar amount. Readings are taken
from the meter database corresponding with the Power Company bill service period end date. The
data can be populated either manually or automated. For the Capitol Mall, IDOA uses "metalink"
to populate an Excel spreadsheet from a SQL database. Sub panels related to common areas are
added to the per building readings. These together create the "bill" for each INDEX.
Readings at meters are typically logged every fifteen (15) minutes. A typical electric meter
can "hold" or maintain data for about two (2) months, should there be a connection to server issue.
For the Capitol Mall, IDOA's electric meter readings archive data goes back to 1992. The electric
data on the HPI SCADA database provided to IDOA went back to 2004.
Despite the "bill" produced for the Capitol Mall and mocked up in the enclosed
spreadsheet, facilities costs are allocated differently based on user type as follows:
State Agency Users. The costs of state facility use by state agency users, including utility
costs, are paid through a combination of direct legislative appropriation to IDOA and a rate paid
for use of the space by the using agency established in the agency's legislative appropriation. The
IDOA appropriation pays its personnel costs, certain capital costs such as maintenance equipment
and vehicles, and routine maintenance costs such as elevator and fire system inspections and costs
in excess of agency budget allocations. Agency budget allocations cover agency use of state
facilities on a "full services" basis. Similar to a full services lease discussed below, agency users
do not incur costs other than their appropriated budget for their routine use of a state facility.
Certain costs specific to an agency, however, are paid using separate agency appropriated funds.
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMTNISTRATION - 7
These agency specific costs include the costs of replacing carpets or remodeling space and are not
included within the appropriation to the agency for use of state space.
To develop the appropriated budget for agencies and the IDOA, IDOA tracks costs incurred
in operating the state facilities such as utilities, janitorial services and supplies, light bulb
replacement, landscaping, common area maintenance, and window cleaning. IDOA provides this
information to the Division of Financial Management and the Legislative Services Office. Based
on this information, rental rates are included in agency budget requests for consideration by the
legislature. Rents as appropriated are collected from state tenants by IDOA using its interaccount
transaction authority discussed in the answer to Request No. 7.
Former HP Inc. Tenants. The costs paid by former HP Inc. tenants are governed by the
leases negotiated between the tenant and HP Inc. as the former landlord as follows:
First Technologt Federal Credit Union (Building 2): The First Technology Federal Credit
Union Lease was originally a master lease for multiple HP Inc. properties. The Lease was revised
during the purchase process only to separate it to a stand-alone lease serving the Boise site and the
terms were not materially modified. The base rent paid by the tenant is for a fulI services lease,
with the exception of after hours HVAC charges. See paragraph l(G), pp. l-2 of the Lease
Agreement. Under a full services lease, the base rent is the only payment a landlord receives for
all the costs or services identified in the lease. Utilities are commonly within the base rent of a
full services lease and are included in the First Technology Federal Credit Union Lease base rent.
After hours HVAC charges are additional rent and are allocated as a share of the actual costs
representing the square footage of the leased premises in relation to the square footage of the
building. See paragraph 9, p. 5 of the Lease Agreement. The IDOA has not had a request by First
Technology Federal Credit Union related to after-hours use following IDOA's assumption of the
Lease.
Hewlett Packard Enterprise Company (Building 2): The HP Inc. Lease assumed by IDOA
is a full services lease and base rent covers the identified services, including utilities. See
paragraph 72, p.3, and Exhibit C of the Lease; See also Second Amendment to Lease, paragraph
2(a) (lncreasing the annual rent to "cover estimated incremental power costs.").
Enterprise Sentices ZZC (Building 4): The HP Inc. Lease assumed by IDOA is a fuIl
services lease and base rent covers the identified services, including utilities. See paragraph 12, p.
3, and Exhibit C of the Lease.
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 8
Sykes Enterprises, Incorporated (Building 8): The HP Inc. Lease assumed by IDOA
obligates the IDOA to provide Standard Tenant Services set forth in paragraph 5.2, p. l8 of the
Lease in exchange for the base rent. Standard Tenant Services include electrical service, however,
paragraph I 5.2(b) provides:
If Tenant consumes more electricity than 4 watts per usable square foot (excluding
lighting and air conditioning), Tenant shall pay the cost of such excess electricity
consumption (as determined by submeter installed at Tenant's cost or as reasonably
determined by Landlord) to Landlord as Additional Rent pursuant to Section 3.2(d)
above.
HP Inc. HP Inc.'s Lease contains provisions at paragraphs 5.2 and 6.6 concerning
allocation of costs related to Standard Tenant Services, including utilities. Following execution of
the Lease, the Idaho Power Company accounts for electric service to the Campus were transferred
into the name of IDOA. The provisions of 6.6 have not been followed for electric billings. Instead,
HP Inc. and IDOA have informally agreed to allocate interim utility charges for electric service
based on square footage until the Landlord Separation Work set forth in section 6.5(.4') is complete.
This likely results in under-billing to HP Inc. because portions of the Campus billed to IDOA and
used in the square footage allocation are unoccupied.
IDOA Contact: Keith Reynolds, Deputy Director, Department of Administration
208 -332- 18 I 2, Keith. Reynolds@adm. idaho. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 9
REQUEST NO. 5: Please provide the plan for tenant notification and estimated outage
impacts as construction and the sub-meter installation is performed.
IDOA ANSWER: No power outage is expected because power is not intemrpted in the
installation process. If IDOA uses the SCADA system discussed in the IDOA Answer to Request
No. 2, the process does not involve equipment installation. If IDOA installs physical sub-meters,
the installation uses split ring current tracers.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208-332-193 7, [e-mail]. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - IO
REQUEST NO. 6: Please provide the short and long-term plans for energy system
operation and maintenance at the Campus.
IDOA ANSWER: IDOA understands this request relates to maintenance of the systems
in place at the Campus at the time of the Idaho State Building Authority's purchase and lease of
the Campus to IDOA. IDOA received a One Time Exemption from Competitive Bidding to
contract with the company employing the staff performing maintenance and operation functions
for HP Inc. prior to the purchase of the property. A copy is enclosed with this Response. As
discussed in the request for exemption, IDOA is using the exemption period to determine whether
it will seek legislative approval of positions to directly employ the legacy maintenance staff, to
contract with outside vendors to maintain the systems, or a combination of both. This decision
will be made and included with the IDOA's budget request submitted in August 2018. Budget
requests must be approved by the Governor and included in the Governor's request to the
Legislature. If submitted, a final recommendation concerning the request is made by the Joint
Finance-Appropriations Committee (JFAC) and subject to House and Senate passage as well as
gubernatorial veto.
IDOA's current legislative appropriation does not anticipate modifications to the systems.
Long-term operation and maintenance of the systems as well as upgrades or modifications are also
subject to the budget request process. IDOA does not have sufficient experience at the Campus to
recommend upgrades or modifications in the current budget cycle and has not yet produced a long
term plan for Campus operations. At the Capitol Mall, IDOA engages Idaho Power to maintain
the system. This process has been successful and may be a long term model for the Campus.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208-332- 193 7, Ric. [e-mail]
IDOA
AMIN
RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
ISTRATION - 11
REQUEST NO. 7: With respect to the Campus, will electricity costs be a separately
identified component on each bill provided to non-state tenants? Will electricity costs be a
separately identified component on the bill provided to state agencies? Please provide a sample
bill for tenants at the Campus.
IDOA ANSWER: IDOA manages use charges or rent differently for private tenants under
the leases assumed from HP Inc., the HP Inc. Lease, and for state agencies.
Assumed Leases: As with most commercial leases, IDOA does not bill private tenants for
monthly rent (base rent), which is due and paid by the tenant as provided in the Lease. For
example, paragraph 3.1 of the Sykes Enterprises, Incorporated Lease provides that base rent is due
and payable to the landlord in advance of the first day of each calendar month. Paragraph 3.6 of
this Lease states that all rent payments are to be made to landlord as it directs.
For full services lease tenants where no additional charges are authorizedby the Lease,
IDOA cannot bill the tenant for such charges and pays those charges using the base rent paid by
the tenant or IDOA's appropriation. This is the same process used by the Idaho Public Utilities
Commission's Lease, which is a full services lease. The Commission's fiscal staff may be able to
provide additional information on how this process works in practice.
For tenants where an additional charge related to certain uses is authorized, such a charge
is "additional rent." For example, in the Sykes Enterprises, Incorporated Lease, electric use is
generally covered under the base rent payment, however use by the tenant in excess of 4 watts per
usable square foot is identified as additional rent. See Lease paragraph 15.2(b). IDOA as landlord
is authorized under the Lease to use any reasonable method to determine the tenant's use of
electricity and would provide a notice of additional rent under the notice provisions of Lease
paragraph 13.10 to the tenant address identified in Article l. So long as Sykes Enterprises,
Incorporated is the sole tenant of Building 8, IDOA could use the separate billing from Idaho
Power as a reasonable basis for the additional rent. If state agencies are using portions of Building
8, IDOA could use a SCADA reading or sub-meter as a reasonable basis for additional rent. Sub-
meters are specifically identified as a reasonable basis for additional rent related to excess
electricity use in paragraph 15.2(b) of the Lease. Additional rent for excess electricity is paid
under section 3.2(d) of the Lease and is paid with the next base rent payment.
HP Inc. Lease; As discussed in the answer to Request No. 10, the HP Inc. Lease is not a
full services lease. IDOA bills in affears for utilities by utility type. The HP Inc. Lease includes
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 12
provisions for "interim utility payments" covering the period between lease commencement and
separation of utilities atparagraph 6.6 of the Lease. As discussed in the answer to Request No. 4,
the parties are informally allocating electric charges billed to the Campus based upon square
footage until the electric use can be separated by sub-meter or SCADA system. Under Lease
paragraph 3.8, HP Inc. can audit IDOA's allocation of costs.
State Agency Users: State agencies are not billed. As discussed in the answer to Request
No. 4, state agency use costs are allocated to either the IDOA appropriation or the agency
appropriation. Funds appropriated to agency users are directly deducted from the agency's
operating fund in the treasury by interaccount transaction under the authority granted to IDOA in
Idaho Code section 67-5704. This process is subject to audit by the Legislative Services Office
when auditing an agency user or IDOA.
IDOA Contact: Keith Reynolds, Deputy Director, Department of Administration
208 -332- 1 8 I 2, Keith. Reynolds@adm. idaho. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 13
REQUEST NO. 8: With respect to the Campus, has the IDOA entered into an Energy
Savings Performance Contract(s) as described in Idaho Code $ 67-5711D? If so, please provide
copies of any contract. If not, does IDOA intend to enter into any such contract? Please explain.
IDOA ANSWER: IDOA has not entered and does not anticipate entering an Energy
Saving Performance Contract. The state has not had sufficient operating history with the Chinden
facilities to determine if an Energy Savings Performance Contract would be beneficial.
Improvements will be made as work scope is identified and funds become available, without the
long-term financial obligation of a Performance Contract.
IDOA Contact: Jan Frew, Administrator, Division of Public Works
208 -332- I 9 I 2, Jan. Frew@adm. idaho. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 14
REQUEST NO. 9: In its preparation for state office occupancy in Building 2,has IDOA
installed, or does it intend to install, any energy efficiency measures in the near future? Please
explain.
IDOA ANSWER: All improvements to Building 2 will be constructed according to
current building and energy codes. Significant areas of improvement include:
1. Hundreds of fluorescent light fixtures that currently house Tl2 lamps will be
removed. New fixtures will be installed that utilize LED lamps.
2. New ceiling systems will be installed in eighty percent (80%) of Building 2, at a
lower height than the current configuration. This will reduce the volume of space needing to be
conditioned.
3. The existing roof will be replaced with a new single-ply roof and insulation system.
4. The Building HVAC system will be totally re-worked, with a large amount of
equipment being replaced with new, energy efficient equipment.
5. A lighting control system will be installed.
6. A Building Automation System will be installed that will allow efficient
programming and monitoring of all building systems.
IDOA Contact: Jan Frew, Administrator, Division of Public Works
208-332- 19 I 2, [e-mail]
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 15
REQUEST NO. 10: Staff understands the Campus is served by Idaho Power, who
supplies primary service under Rate Schedule 19. Rate Schedule 19 has several components:
service charge, basic charge, demand charge (varies by season), on-peak demand charge, and
energy charges for on-peak, mid-peak and off-peak usage (varies by season). Staff also
understands that HP Inc.'s Lease provides that IDOA only will bill HP Inc. for HP Inc.'s actual
costs. How will total costs of electricity be recovered for HP Inc.?
IDOA ANSWER: HP Inc.'s Lease is not a typical full services lease and is complex. The
following discussion is intended to explain how costs, including electrical costs are allocated in
the context of the complex Lease.
The Lease provides base rent for all of the covered tenant services and either direct payment
or allocation of other costs. Unlike a typical full services lease, HP Inc. undertakes certain repair
and maintenance obligations, provides for the security in its leased premises, is allowed to make
certain improvements and alterations without landlord approval, and is authorized to manage one
of the chilling and one of the boiling plants at the Campus. The base rent paid by HP Inc. under
the Lease reflects the lower costs transferred to the landlord in this atypical lease.
The HP Inc. Lease required utility separation and specifically authorizes Emon brand or
other sub-meters in satisfaction of the required separation of electrical service. See paragraph
6.5(A)(vii) of the Lease. IDOA understands HP Inc.'s request to include paragraph 6.5(,4.) is to
establish processes for utility cost allocation in satisfaction of federal tax law requirements that it
pay its own utility costs following the lease back of real property it formerly owned. HP Inc. has
determined that separation using sub-meters represents the actual costs for electric charges
accurately. HP Inc.'s use of the Campus does not differ from other users in the type of activity or
hours ofuse.
IDOA also believes that the utility separation using sub-meters accurately reflects HP Inc.'s
use of electric service. Although IDOA believes HP Inc. is not fully paying the costs of electric
service prior to separation, this belief arises from the use of square footage to allocate costs and
not because HP Inc.'s use varies by time of day or season. See Answer to Request No. 4. IDOA's
analysis of off-peak and mid-peak costs in the most recent Idaho Power Company billing for the
Campus (exclusive of Building 8) shows that cost difference between off-peak and mid-peak costs
is 4/10 of one cent (.004235), representing approximately 4.4o/o of the total bill ($8517.81 of a
5193,275.71 monthly bill). This analysis confirms that sub-metering will produce accurate
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 16
allocation sufficient to satisfy IDOA and HP Inc.'s Lease as well as the Commission's stated
purposes.
Future variations in electric use are also addressed by the Lease. Lease paragraph 5.1(AX I )
provides the general language for utility costs and applies after utility separation under Lease
paragraph 6.5 is complete. This paragraph provides that IDOA shall contract directly with a utility
provider to the extent there is no separate meter. Paragraph 5. I (AX 1 ) further provides:
If Tenant's use of utilities is in excess of normal general office occupancy loads
and the Premises is not separately metered or submetered, Tenant shall separately
meter or sub-meter the Premises for such excessively used utility, at its sole cost
and expense.
Even if physical sub-meters are used at the Campus, this paragraph would allow IDOA's SCADA
system to be used to allocate electric use by time of day and season and produce records tied to
Rate Schedule 19 should HP Inc. use of the Campus change so as to use utilities in a manner in
excess of normal general office occupancy loads.
Lastly, the Lease defines "Normal Business Hours" as the period between 7:00 a.m. and
6:00 p.m. on State of Idaho business days and between 8:00 a.m. and l:00 p.m. on Saturdays. This
definition is consistent with general office occupancy, including Idaho state agency use. The
Lease's terms concerning the provision of utilities only apply to Normal Business Hours. See
Lease paragraph 5.1(AXl). If HP Inc. changes its operations so that it is not consistent with
Normal Business Hours, the IDOA can notify HP Inc. that IDOA is not required to provide utility
access for that operation and request an appropriate adjustment to the Lease terms.
IDOA Contact: Keith Reynolds, Deputy Director, Department of Administration
208 -332- 18 I 2, Keith. Reynolds@adm. idaho. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - I7
REQUEST NO. 11: Please provide the energy sources for the Campus boilers.
IDOA ANSWER: Natural gas.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208 -332- 193 7, Ric. Johnston@adm. idaho. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - I8
REQUEST NO. 12: Building 8 is separately metered, but it appears that Building 8 does
not pay its own electrical costs under its lease. How is that cost recovered? Please explain in
detail.
IDOA ANSWER: See answer to Request No. 4. The base rent paid by Sykes Enterprises,
Incorporated under the Lease negotiated by HP Inc. and assumed by IDOA is the only source of
payment for the standard tenant services identified in the Lease, including electrical service below
the use triggering an excess electricity use charge, which is payable as additional rent. To the
extent the base rent is not sufficient for the operating costs arising from Building 8, IDOA has an
appropriation for operation of the Campus and would use those funds to pay operating costs. If
Sykes Enterprises, Incorporated's electric use triggers the additional rent provisions of its Lease,
IDOA will follow the billing process discussed in the answer to Request No. 7.
On May 9,2018, Sykes Enterprises, Incorporated submitted a request to IDOA for early
termination of its Lease related to the first and second floors of Building 8. The request is subject
to negotiation of the terms of early termination. In the event the parties reach agreement, IDOA
intends to manage Building 8 as it manages Building 2. Sykes Enterprises, Incorporated's leased
space will be subject to the terms of its Lease and the costs of occupancy by state agency users on
the first and second floors of Building 8 will be established as discussed in the answer to Request
No.7.
IDOA Contact:Keith Reynolds, Deputy Director, Department of Administration
208 -3 32- | 8 I 2, Keith.Reynolds@adm. idaho. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 19
REQUEST NO. 13: On page 11 of its petition, IDOA states: "lnitial estimates for
equivalent separate metering range from two to three million dollars. These costs will either
require appropriation of taxpayer funds by the 2019 Idaho Legislature or will be paid in part by
electric ratepayers through Commission approved processes."
a. Please provide a copy of the cost estimate for separate metering, showing how that
estimate was determined.
b. Please explain why IDOA believes that electric ratepayers might have to pay for
metering costs incurred by IDOA.
IDOA ANSWER: A cost estimate has been informally identified as between two and
three million dollars by the Division of Public Works as a "ROM" or rough order of magnitude as
is done routinely in initial estimates of project costs. The ROM is based upon the expertise of the
Division of Public Works in construction matters and the complexity of the Campus. IDOA has
approved payment to Idaho Power Company for a detailed proposal, including costs, and does not
yet have such proposal.
IDOA has no expertise in utility rate matters. At the informal meeting between IDOA,
Idaho Power Company and Public Utilities Commission Staff on April 5, 2018, Idaho Power
Company's statements indicated to IDOA that such a process of payment arising under the utility
rate system may apply.
IDOA Contact: Keith Reynolds, Deputy Director, Department of Administration
208 -3 32- | 8 I 2, Keith. [e-mail]. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 20
REQUEST NO. 14 Staff understands that IDOA requested Idaho Power to prepare an
estimate of costs to operate and maintain electrical facilities for the Campus. Has Idaho Power
submitted its estimate to IDOA? If so, please provide a copy of that estimate. If IDOA intends to
use another entity to operate and maintain the electrical facilities, please include that estimate of
costs.
IDOA ANSWER: See the answer to Requests Nos. 6 and 13. Idaho Power has informed
IDOA that it will not maintain the existing systems. IDOA will use its own staff, a vendor who
employs staff experienced with the maintenance of the Campus prior to the sale by HP Inc., and,
as needed, an electrical contractor engaged by the Division of Public Works.
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208-332- 193 7, [e-mail]. gov
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 2I
REQUEST NO. 15: Please provide the Site Power Distribution document included in the
Petition, in electronic format.
IDOA ANSWER: It is unclear from the question if the request is for Petition Exhibit B
or Exhibit C. An electronic format of both is included with this Response.a
IDOA Contact: Ric Johnston, Facilities Manager, Division of Public Works
208 -332- I 93 7, Ric. Johnston@adm. idaho. gov
a As specified in the Petition, Exhibit B and Exhibit C are exempt from public disclosure pursuant to Idaho
Code section 74-105(4Xb). IDOA reaffirms its designation of the Exhibits as exempt.
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 22
CERTIFICATION OF EXEMPTION FROM PUBLIC DISCLOSURE
The undersigned, in accordance with IDAPA3l.0l.0l .067.03 (Rule 67), believes that The
Schematic of Campus Sub-Meter Placement and the Corresponding Table as well as Exhibits B
and C attached to the Petition are confidential under Rule 67 and are exempt from public disclosure
under Idaho Code section 74-105(4)(b). Such documents are records of systems representing
critical infrastructure and the incapacity or destruction of such systems would have a debilitating
impact on the safety of persons or property.
DATED this l8th day of May, 2018.
Attorney General
Contracts and Administrative Law Division
IDOA RESPONSE TO FTRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 23
CERTIFICATE OF SERVICE
I hereby certifythat I have on this 18th day of May,2018, served the foregoing IDOA
Response to First Production Request to the Idaho Department of Administration and the
enclosures referenced to the following, by hand delivery and in electronic format pursuant to
IDAPA3l.01.01 .061.02 (Rule 61), IDAPA31.01.01.063.03 (Rule 63) and IDAPA3l.0l.0l.229
(Rule 229):
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-007 4
d iane. hol t G?puc. i d aho. go v
(Hand Delivered)
Karl T. Klein
Deputy Attorney General
Idaho Public Utilities Commission
P.O. Box 83720
Boise, tdaho 83720-007 4
karl. kl ein (rDpuc. i d aho. gov
Lisa D. Nordstrom
Regulatory Dockets
Idaho Power Company
P.O. Box 70
Boise, Idaho 83707-0070
lnordstrorn @idahopower. com
dockets@idahopower. com
Connie Aschenbrenner
Idaho Power Company
P.O. Box 70
Boise, Idaho 837 07 -007 0
cas chenb renn er(rD i d ahop o w elqqn
(-
VER
Attorney General
Contracts and Administrative Law Division
IDOA RESPONSE TO FIRST PRODUCTION REQUEST TO THE IDAHO DEPARTMENT OF
AMINISTRATION - 24
Chinden Campus Power Monitoring Locations
Current Tracers to be located on service side of TRANSFORMER(s)
Current Tracer Meters to record kW and kW-hr
Alternate Location to meter
off Primary Switch gear
at Bl South Service Building
BUILDING Switch VOLTAGE
B1 L-2A t2.47 kV
B1 1.-28 t2.47 kV
82,84 2C,2D,4 t2.47 kV
B3 3A,38 12.47 kV
B5 5A,5F 72.47 kV
B5 5C,5E 72.47 kV
B6 68,5C,6E,5F 72.47 kV
87 7 4,78,7C,7E 12.47 kV
#CURRENT TRACER TRANSFORMER #BUILDING #
1 CT-1A XFMR #T1A B1
2 CT-1B XFMR #T1B B1
3 CT-2A XFMR #T2A 82
4 CT-28 XFMR #T2B 82
5 CT-2C XFMR #T2C 82
6 CT-2D XFMR #T2D 82
7 CT.3A XFMR #T3A B3
8 CT-38 XFMR #T3B B3
9 cT-4 XFMR #T4 B4
10 CT-5A XFMR #T5A B5
11.CT-5C XFMR #T5C B5
12 CT-5E XFMR #T5E 85 CHILLER
13 CT-5F XFMR #T5F 85 CHILLER
1.4 CT-68 XFMR #T5B B6
15 CT-5C XFMR #T5C B6
16 CT-6E XFMR #T5E B6
T7 CT-5F XFMR #T6D 5B CHILLER
XFMR #T7A 87
L9 CT-78 XFMR #T7B B7
20 cT-7C XFMR #T7C 87
2L CT-7E XFMR #T7E 87
PANEL SUB-METERS
22 CT-IRR-PMP #1.OFF 81 SUB PANEL B1
23 CT-FIRE-PMP#1 OFF 81 SUB PANEL B1
24 CT-IRR-PMP #2 OFF 85 SUB PANEL B5
25 CT-PARK OFF 85 SUB PANEL 85 OR 87
Metered at Sub-Station
XFMR T8B B8
IP METERED XFMR T8A B8
18lCT-7A
IIP METERED
Madel Numbers
Amperage
100 Amp
200 Amp
400 Amp
800 Amp
1 600 Amp
3200 Amp
12012O8-240V 3-Phase
KWH Meter
E20-2081 00-JKIT
E20-208200-JKtr
820-208400-JKIT
E20-208800-JKIT
E20-2081 600JKlT
E20-2083200JK17
KWH/Demand lvleter
820-2081 00-J-D-KlT
E20-208200-J-D-KlT
E20-208400-J-D-KtT
E20-208800-J-D-KlT
E20-2081 600J-D-KlT
E20-2083200J-D-KlT
KWH/Demand Meter
820-4801 00-J-D-KtT
E20-480200-J-D-KtT
E20-480400-J-D-KlT
E20-480800-J-D-KlT
E20-4801 600J-D-KlT
E20-4803200J-D-KtT
Amperage
100 Amp
200 Amp
400 Amp
800 Amp
1 600 Amp
3200 Amp
KWH tr/eter
E20-480100-JKtT
E20-480200-JKIT
E20-480400-JKIT
E20-480800-JKIT
820-4801 600JKlT
E20-4803200JK17
277148OV,3-Phase
347 I 6O0V, 3-Phase (Wye Conliguration)
KWH/Demand Meter
820-6001 00-J-D-KlT
E20-600200-J-D-KlT
E20-600400-J-D-KtT
E20-600800-J-D-KlT
820-6001 600J-D-KlT
E20-6003200J-D-KlT
Amperage
100 Amp
200 Amp
400 Amp
800 Amp
1600 Amp
3200 Amp
KWH Meter
E20-6001 00-JKIT
E20-600200-JKIT
E20-600400-JKIT
E20-600800-JKIT
E20-6001 600JKlT
E20-6003200JK17
Optional Meter Enclosures
Replace "J" in model number with optional
enclosure specification.
Specification M - IVIMU Configuration
(ex. E20-208100-MKIT)
Specification R - NEMA4X Raintight Enclosure
(ex. E20-6001600RK|T)
NOTE: All meter kits include one set ot three (3) splil-core
current sensors
Features
r Direct-read 2-line alpha-numeric LCD display without
multiplier displays cumulative kwh & "real-time" kW load
r Demand option displays kWDemand and kW Peak
date and time (15 minute interval standard, 30 minute
or 60 minute intervals available.)
r Available in MMU (Multiple Meter Unit) enclosures
containing up to 24 meters in one compact enclosure
r Patented 0-2 volt output split-core current sensors
promote enhanced safety and accurate remote
mounting of current sensors up to 2000 feet from
meter without power interruption. (Optional solid-core
sensors available forl00 & 200 Amp meters.)
r Onboard installation diagnostics & verification system
r Parallel up to three (3) sets of current sensors
for cumulative reading.
. Meter can be used on the following configuratlons:
3-Phase, 4-Wire
3-Phase, 3-Wire
For other configurations contact factory.
r Fixed-value pulse output.
r lndustrial grade JIC steel enclosure (standard) with
padlocking hasp & mounting flanges for indoor
installation. Knockouts 1 1116" (3/4" cond.) bottom,
718" (112" cond.) top.
r Optional NEMA 4X polycarbonate enclosure with
padlocking hasp & mounting flanges for indoor/outdoor
installation (stand alone) with one 1 1/16" KO on
bottom of enclosure.
r Non-volatile Memory.
r UL/CUL Listed.
r Revenue Grade Accuracy. Certified by independent
test lab to ANSI C12.20 national accuracy standards.
(+l- 0.2o/ofrom 1o/o to 100% of rated load.)
I California CTEP approved for use with solid-core
current sensors. Listed by the California Energy
Commission.
r NewYork City approved, Con Edison approved for
RSP program.
MMU Style
(Multiple Meter Unit)
Stand-Alone Contlguration
Oim: 6 3/4" H x5 3/'16"Wx3 1/4 D
Energy Monitoring Producls
o
Crnss 2000 {E;TilOtrD;M6tr1
Energy Arloniloring Producfs & Systems
l-Phose Meter
[phone] - www.emon.com Elfective Date: 1 1 11812013
Cuss 2000 Mrrsn
E N c w e e n m o Sp sc t F lcArlionts
Energy Monitoring Producls & Sysiems
I
I
Meter shall be fully electronic with a 2-line alpha-numeric LCD display without muiltiplier displaying cumulative
kWh and "real-time kW load. Meter shall provide rate of consumption indication and also a test sequence
to ensure integrity ol the display.
Meter shall be optionally available with kWDemand and kW peak date and time displays. (15 minute interval standard,
30 minute or 60 minute intervals available.)
Meter shall provide a load indicator to indicate realtime consumption levels for field testing and certification
Meter shall provide current sensor installation diagnostics indicator.
Meter shall use 0-2 volt output current sensors to allow paralleling and/or mounting up to 2,000 feet trom the
meter. Sensors shall be of split-core configuration to allow installation without powering down. Sensors shall be
available from 100 amp to 3200 amp. Sensors shall be optionally available in solid-core configuration (100 & 200 amp.)
Meter shall be enclosed in a heavy-duty JIC steel enclosure suitable for indoor installation. Meter enclosure
provides a method of locking to prevent unauthorized access.
Meter shall be optionally available in an outdoor NEMA 4X polycarbonate enclosure with padlocking hasp &
mounting flanges for indoor/outdoor installation.
Meter shall be optionally available in MMU (Multiple Meter Coniiguration) enclosures containing up to 24 meters
in one compact enclosure.
Meter shall be UL Listed/CUL Listed to latest applicable standards for safety.
Meter shall be certified by a nationally recognized independent test lacility to ANSI C12.20 (+/- O.2o/o lrom 1 % to 100o/o
of rated load) specifications.
Meter shall be California CTEP approved for use with solid-core current sensors, listed by the California Energy
Commission, New York City approved and Con Edison approved for RSP program.
Meter shall be provided with a non-volatile memory to maintain reading durlng power outages.
Meter shall be provided with modular connecto(s) to provide interfacing with
- AMFI (Automatic Meter Reading)
- Building ManagemenVEnergy Management Systems
Meters shall be compatible with E-Mon EnergyrM software.
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Energy Monitoring Products
oa
[phone] - www.emon.com Eflective Dale: 12/1 12O12
o -on'
Energy Monitoring Producls & Systems
Allodel lVumbers
1 20 / 2O8-24OV, 1 27 /22OV, 3- Phase
E32-2081 00-BEZTKIT (1 00 amp)
E32-2O8200-BEZ7 KIT (200 amp)
E32-208400-REZTKIT (400 amp)
E32-208800-REZTKIT (800 amp)
E32-2081 600REZ7KlT (1 600 amp)
E32-2O8320OREZ7K|T (3200 amp)
2201380V, 230/400V, 240/ 41 5V, 3-Phase
E32-400100-REZTKIT (100 amp)
E32-4002O0-AEZTKIT (200 amp)
E32-400400-REZTKIT (400 amp)
E32-400800-REZTKIT (800 amp)
E32-4001 600BEZ7K|T (1 600 amp)
E32-40032008E27K1T (3200 amp)
2771480V,3-Phase
E32-4801 00-FlEZTKlT (1 00 amp)
E32-480200-REZTKIT (200 amp)
E32-480400-REZTKIT (400 amp)
E32-480800-BEZTKIT (800 amp)
Es2-4801600RE27KIT (1600 amp)
E32-4803200RE27K1T (3200 amp)
347/600V,3-Phase, 4 Wire (Wye Configuration)
E32-6001 00-REZTKIT (1 00 amp)
E32-600200-REZTKIT (200 amp)
E32-600400-REZTKIT (400 amp)
E32-600800-REZTKIT (800 amp)
E32-6001 600REZ7KlT (1 600 amp)
E32-6003200FlEZ7KlT (3200 amp)
Options
Three-phase meter kils are supplied with (3) splil-core current sensors.
To order a single-phase, 3-wire meter kit add 1SP" belore KIT in
lhe model number. Ex. E32-208100-BEZ7-SPKIT
Single-phase meters will be supplied with (2) spliFcore currBnt sensors.
Enclosure Options
Meters supplied standard in NEMA 4X outdoor enclosures. To order a
ditferenl enclosure replace "8" in modol number with optional enclosure
specitication.
JIC Steel Enclosure-Speciry J-(E32-208 1 00-JEZTKIT)
MMU Contiguration'Specily M-(E32-4801 600MEZ7KlT)
Communication Protocol Options
Meters supplied standard with EZ7 protocol. To order a diflerenl
communication protocol replace "EZT" in model number with optional
protocol spocification.
Modbus FITU-Specif y RTU (E32-a801 00-JRTUKIT)
BACnet MS/TP-Specity BAC (E32-6001 00-HBACKIT)
I
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I
I
Features
Advanced 4-line display showing:
- k\ lh - kW demand (with peak date & time)
- Power factor per phase - Real-time load in kW
-Amps per Phase - Volts per phase
On-board set-up option for:
- Meter date/time
- lD codes for communication option
Available in MMU (Multiple Meter Unit) enclosures
containing up to 24 melers in one compact enclosure
0-2 volt output split-core current sensors allow for
enhanced safety and accurate remote mounting of
sensors up to 500 feet from meter without power
interruption. (Oplional solid-core sensors available,)
Onboard installation diagnostics and verification system
Built-in RS-485 communications capability
supports the following connection configurations (or
combinations not to exceed 52 devices per channel):
- Up to 52 Din-Mon D2 & D5, Class 3200, 3400, 5000
meters and/or IDR interval data recorders
Cabling is daisy-chain configuration, 3-conductor, 1B-22 AWG,
up to 4,000 cable feet total per channel.
RS-485 Protocol Options
- E-Mon Ene$y EZ7
- Modbus RTU
- BACnet MS/TP (BTL certified)
Records kWh and kVARh delivered, kWh and kVARh
received in first 4 channels. Data stored in 15-min. inlervals
for up to 72 days or s-minute intervals for up to 24 days.
Maintains interval data storage in a first-in, first-out format.
Compatible with E-Mon Energy Software via EZ7 protocol
for automatic meter reading, billing and profiling of interval
energy data. Ethernet communication available when used
with Ether-Mon Key.
Meter is designed for use on both 3-phase, 3-wire
(delta) and 3-phase, 4-wire (wye) circuits. Optional
single-phase, 3-wire confi guration available.
Outdoor NEMA 4X polycarbonate enclosure (standard)
with padlocking hasp & mounting flanges for indoor/
outdoor installation (stand alone) with one 1 1/16'KO
on bottom ofenclosure.
Optional Enclosure: lndustrial grade JIC steel enclosure
with padlocking hasp and mounting flanges for indoor
installation. (stand alone) Knockouts: 1 '1116" (3/4" cond)
on bottom and718" (112" cond) on top ofenclosure.
UL/CUL listed. Meets or exceeds ANSI C12.20 national
accuracy standards. (+l- 0.2o/o lrom 1o/o to 100% of rated load)
CE Mark approved
Meter meets or exceeds MID accuracy standards.
MV-90 compatible. (EZ7 only)
Dimensions: Stand Alone: 6" H x 6" W x 4 1/4" D
MMU-8 Cabinet:24" H x 12" Wx 7" D
'Note: lnterval data not available via
BACnel.
{E;fllom
Energy Monitoring Producls(800) 334-3666 - www.emon.com Eflective Date: 1 1 118/2013
Crnss 5200 Smort Meter
it _.ir
a. :..; t i
Crnss ,200 Srwanr MerER
Exa w eENNc SpccrtcATtous Energy Monitoring Products & Systems
on
Class 3200 Smart Meter Specifications
Meter shall be fully electronic with 4-line by 20-character backlit LCD display showing kwh, kW demand (with peak
date and time), power factor per phase, realtime load in kW, Amps per phase and Volts per phase.
Meter shall utilize 0-2 volt AC output current sensors to allow paralleling and/or mounting up to 500 feet from meter.
Sensors shall be of split-core configuration to allow installation without disconnecting cabling, etc. Sensors shall be
available from 100 amp to 3200 amp. Sensors shall be optionally available in solid-core configuration (100 & 200 amp.)
Meter shall be field programmable for meter date/time and lD code for communication options.
Meter shall provide installation diagnostics on display.
Meter shall be enclosed in a NEMA 4X polycarbonate enclosure (standard) with padlocking hasp & mounting flanges
for indoor/outdoor installation (stand alone) with one 1 1/16" KO on bottom of enclosure. Optional IVIMU enclosure
or heavy duty JIC steel enclosure available.
Meter shall be UUCUL Listed to latest applicable standards for safety.
Meter shall meet or exceed ANSI C12.20 accuracy standards.
Meter shall be CE Mark approved.
Meter shall meet or exceed MID accuracy standards.
tt/leter shall provide non-volatile memory to maintain reading during power outages.
Meter shall be optionally available in single-phase, 3-wire configuration.
Meter shall be capable of daisy-chain connection using FIS-485 communications in combinations of Din-Mon
D2 & D5, Class 3200s, 3400s, 5000s, lDFl-8s, IDB-1 6s not to exceed 52 devices. Cabling shall be available through
terminal block (3-conduclor), 18-22 AWG, up to 4,000 cable feet total.
Meter shall be available with the following communication protocols:
Requires E-Mon Energy software for reading:
EZ7 RS-2321 RS-485 hard-wire con nection (Standard)
Flequires third-party EMS/BMS system supplied by others. E-tr4on Energy software not used:
Modbus FITU Communications (Replace EZ7 in model with RTU when ordering)
BACnet MS/TP (Replace EZ7 in model with BAC when ordering)
BACnet protocol shall be BTL certified. LonWorks protocol shall be LonMark certified.
{E;fllom
Energy Monilonng Producis(800) 334-3666 - www.emon.com Effective D ale : 6 I 31 20 1 1
Meter shall store interval data for kWh and kVAFlh for up to 72 days in firslin firslout format. lnterval data not
available via BACnet.
Crnss 1t400 Smort Meter OfrD;Til-
Energy Monitoring Producls & Sysfems
Advonced Meters with Communicotion
Model Numbers
1201208-240V,
1271220V,3-Phase
E34-2081 00-R01 KIT (1 00 amp)
E34-208200-R01 KIT (200 amp)
E34-208400-RQ1KlT (a00 amp)
E34-208800-RQ1 KIT (800 amp)
E34-2081 600R01KlT (1 600 amp)
E34-2083200F|0-1 KIT (3200 amp)
220/380V,230/400V,
2401415V, 3-Phase
E34-4001 00-BQ1 KIT (1 00
E34-400200-801 KIT (200
E34-400400-Fro1 KIT (400
E34-400800-R01 KtT (800
E34-4001600R01 KIT (1600 amp)
E34-4003200R0 1 KIT (3200 amp)
amp)
amp)
amp)
amp)
E34-4801 00-R01 KIT ( 1 00 amp)
E34-480200-R_01.KlT (200 amp)
E34-480400-F01 KIT (400 amp)
E34-480800-BQlKlT (800 amp)
E34-4801 600R01 KIT (1 600 amp)
E34-4803200RO1K1T (3200 amp)
277148OV,3-Phase
347 |6OOV, 3-Phase, 4 W (Wye Gonliguration)
E34-6001 00-R01 KIT (1 00 amp)
Es4-600200-RqlKlT (200 amp)
E34-600400-R01K|T (400 amp)
E34-600800-RQlKlT (800 amp)
E34-6001 600R01KlT (1 600 amp)
E34-6003200R01K1T (3200 amp)
Enclosure Options
Meters supplied slandard in NEMA 4X ouldoor enclosures.
Not available in MMU Conliguration,
To order a JIC Steel enclosure replace "R" in mod€l number
with "J" (E34-2081 00-J01 KlT)
Communication Protocol & Option Packages
The mode,s above represent lhe 01 protocol package. To specily a dillerent
FIS-4116 Port Flherncl Port Snnnifu
EZ7 EZ7 Ethernet 01
Modbus BTU EZ7 Ethernet 02
BACneT I\,4S/TP EZ7 Elhenet o3
EZ7 [,lorihtts TCP/lP o4
EZ7 BACnet lP 05
Modbus RTU Modbus TCP/lP 06
Lonworks FT-1 0 EZ7 Ethernet 07
L onworks FT-1 o Modbus TCP/lP 08
F77 ur/Tplenhonp lrrlorlpm F77 FthFrnat nq
EZ7 w/Teleohone Modem Nlodbus TCP/lP 10
EZ7 w/Telephone Modem BACneI IP 1'1
"01" in model number with the below.
Expanded Feature Package
To order melers with the expanded leature package
belore the word KIT in lhe model number. (E34-208
add the specificalion '-Xj
100-Ft05-x-KtT)
Options
Thre€-phase meter kits are supplied with (3) split-core current sensors.
To order a single-phase, 3-wire meter kil add '-SP" before KIT in the
model number. Ex. E34-208100-F01-SPKIT
To order a single-phase, 3-wire meter with expanded feature packag€ add
"XSP'bofore KIT in the model number. Ex. E34-208100-F0IXSPK|T
Singl€-phase meters will be supplied with (2)
current sensors.
Features
I Standard features lnclude advanced 4-line large display showing:
- klvh - kW demand (with peak date & time)
- Power factor per phase - Real{ime load in kW
- Amps per Phase - Volts per phase
On-board set-up option for:
- lP address - Meter date/time
- Load Control Settings - lD codes for EZ7, Modbus and BACnet
r Optional expanded feature package provides additional features
- Load control option for load control/shedding
- Two external meter inputs (water, gas, BTU, etc.)
(stored in channels 5 & 6)
- Two Pulse outputs (one kvvh and one kVARh)
r 0-2 volt output split-core current sensors allow for enhanced
safety and accurate remote mounting of sensors up to 500 feet
from meter without power interruption. (Optional solid-core
sensors available.)
I Onboard installalion diagnostics and verification system.
I Builtin RS-485 communications capability supports the following
connection configurations (or combinations not to exceed 52
devices per channel):
- Up to 52 Din-Mon D2 & D5, Class 3200, 3400 or 5000
meters andior tDR interval data recorders
Cabling is daisy-chain configuration,3-conductor, 18-22 AwG,
up to 4,000 cable feet total per channel.
I Communications
- Built-in communication
- RS-485 - Ethernet
- Pulse output - Optional telephone modem
I Protocols. EZ7 - BACNET MS/TP-
- Modbus RTU - BACnet lP'
- Modbus TCP/lP - LonWorks FT-10 (Twisted Pair).
I Records kwh & kVARh delivered, k\A/h & kVARh received
in first four channels. Data stored in 1 5-min. intervals
for up to 72 days or s-minute intervals for up to 24 days.
Maintains interval data storage in a first-in, firsloul format.
I Compatible with E-Mon Energy software via EZ7 protocol for
automatic meter reading, billing & profiling of interval energy data.
r Meter is designed for use on both 3-phase, 3-wire (delta) and
3-phase, 4-wire (wye) circuits. Optional single-phase, 3-wire
configuration available.
I Outdoor NEMA 4X polycarbonate enclosure (standard) with
padlocking hasp & mounting flanges for indoor/outdoor installation
(stand alone) with one '1 '1116" KO on bottom of enclosure.
r Optional industrial grade JIC steel enclosure w/padlocking hasp
& mounting flanges for indoor installation with three 1 1/16" KO
(3/4" conduit) on bottom of enclosure.
I UL/CUL listed. Meets or exceeds ANSI C12.20 national accuracy
standards. (+l-0.2o/ofromlok to 100% of rated load)
I Meter meets or exceeds MID accuracy slandards.
r BACnet protocol is BTL certified. LonWorks protocol is LonMark
certified.
r MV-90 compatible (with EZ7 only.)
Dim.8"Hx6"Wx33/4"D
-NOTE: lnterval data not available
via BACnet or Lonworks.
E n e rgy Mon iton ng Products
rE;TfiIaD=l
[phone] - www.emon.com Effective Date: 1 1 11812013
f%ffiu
Cuss 5400 Srnanr MzrER rF--lffi;ilD;Moffi
Enawwnmc Spg(JrtcATtous Energv Monitorins Producis & svsrems
Class 3400 Smart Meter Specifications
lvleter shall be fully electronic with 4-line by 20-character backlit LCD display showing kwh, kW demand (with peak
date and time), power factor per phase, real-time load in kW, Amps per phase and Volts per phase.
Meter shall utilize 0-2 volt AC output current sensors to allow paralleling and/or mounting up to 500 feet from the meter.
Sensors shall be of split-core configuration to allow installation without disconnecting cabling, etc. Sensors shall be
available from 100 amp to 3200 amp. Sensors shall be optionally available in solid-core configuration (100 & 200 amp.)
Meter shall be field programmable for meter date/time, lP address and lD code for communication option and optional
load control settings.
Meter shall provide installation diagnostics on display.
Meter shall be enclosed in a NEMA 4X polycarbonate enclosure (standard) with padlocking hasp & mounting flanges
for indoor/outdoor installation (stand alone) with one 1 1/16'KO on bottom of enclosure. Optional heavy duty JIC steel
enclosure available for indoor installation.
Meter shall be UUCUL listed to latest applicable standards for safety.
Meter shall meet or exceed ANSI C12.20 accuracy standards.
Meter shall meet or exceed ltllD accuracy standards.
Meter shall provide non-volatile memory to maintain reading during power outages
Meter shall store interval data for kW and kVAR for up to 72 days in firstin first-out format. lnterval data not available
via BACnet or LonWorks.
Meter shall be optionally available in single-phase, 3-wire configuration.
Meter shall provide optional sth & 6th channel for logging inputs from third-party metering devices (gas, water,
BTU, etc.) Both channels provide interval data logging that can be read via E-Mon Energy software and lvlodbus.
Meter shall be capable of daisy-chain connection using RS-485 communications in combinations of Din-Mon D2
& D5, Class 3200s, 3400s, 5000s, IDR-8s, IDR-16s not to exceed 52 devices. Cabling shall be available through
terminal block (3-conductor), 18-22 AWG, up to 4,000 cable feet total.
Meter shall be available with the following communication protocol & option packages:
H3-485 Port Ethernet Port Soeci{v
EZ7 EZ7 Ethernet 01
Modbus RTU EZ7 Ethernet o2
BACnet tVS/TP EZ7 Elhernel o3
EZ7 Modbus TCP/lP o4
EZ7 BACnet lP 05
[/odbus RTU [\tlodbus TCP/lP 06
Lonworks FT-10 EZ7 Ethernet 07
Lonworks FT-10 tvlodbus TCP/lP 08
EZ7 wff eleohone l\rlodem EZ7 Ethernet 09
EZ7 wlTeleohone Modem Modbus TCP/IP 10
EZ7 w lT elephone [V'lodem BACnet lP 11
BACnet protocol shall be BTL certified. LonWorks protocol shall be LonMark certified.
fE.:tylffil
Energy Moniloring Producls(800) 334-3666 - wwwemon.com Effective Date: 6/3/201 3
Crnss 5000 Smort Mebr Energy Monitaring Products & Systems
Advonced Meters with Communicotion
FeaturesI Advanced 4line display showing:
- k\ ih - kW demand (with peak date & time)
- Power factor per phase - Real-time load in kW
- Amps per Phase - Volts per phase
On-board set-up option for:
- lP address - Meter date/time
- lD codes torEZT, Modbus and BACnet
r Two pulse outputs and two external meter inputs (water, gas,
BTU, etc.) (Channels 5 & 6, available via E-Mon Energy only)
I Phase loss alarm. (N.O. Contact)
I Built-in RS-485 communication capability supports
the following connection configurations (or
combinations not to exceed 52 devices per channel):
- Up to 52 Din-Mon D2 & D5, Class 3200, 3400 and 5000
meters and/or IDR interval data recorders
Cabling is daisy chain configuration, 3-cond., 18-22 AWG,
up to 4,000 cable ft total per channel.
I Built-in RS-485 and Ethernet communication. Optional
telephone modem available.
r Protocols-EZ7 - BACnet MSiTP"
- Modbus RTU - BACnet lP-
- Modbus TCP/IP - LonWorks FT-10 (Twisted Pair).
I Records kwh and kVARh delivered, kwh and kVARh
received in first four channels. Data stored in '15-min
for up to 72 days or s-minute intervals for up to 24
days. Maintains data in a first-in, first-out format.
I Compatible with E-Mon Energy software via EZ7 protocol
for automatic meter reading, energy billing and profiling.
I Meter is designed for use on both 3-phase, 3-wire
(delta) and 3-phase, 4-wire (wye) circuits. Optional
single-phase, 3-wire confi guration available.
I Outdoor NEMA 4X polycarbonate enclosure (standard)
with padlocking hasp & mounting flanges for indoor/
outdoor installation (stand alone) with one 'l 1/16" KO
on bottom ofenclosure.
I Optional industrial grade JIC steel enclosure with padlocking
hasp and mounting flanges for indoor installation.
Knockouts: 1 1116" (314" cond.) bottom, 718" (112" cond.) top
I UL/CUL listed. Meets or exceeds ANSI C12.20 national
accuracy standards. (+l- 0.2% trom 1o/o to 1 00% of rated load)
r CE Mark approved.
I Meter meets or exceeds MID accuracy standards.
I BACnet protocol is BTL certified. Lonworks protocol is
LonMark certified.
I MV-90 compatible (with EZ7 only.)
Dimensions: 6" H x 6" Wx 4'114" D
*NOTE: lnterval data not available
via BACnet or Lonworks.
Model Numbers
120/208-240V,
127/220V,3-Phase
E50-2081 00-RQ1 KIT (1 00 amp)
E50-208200-BQ1KlT (200 amp)
E50-208400-RQlKlT (400 amp)
E50-208800-R01KlT (800 amp)
E50-208 1 600RO1-KlT (1 600 amp)
E50-2083200R01 KIT (3200 amp)
220/380V,2301400V,
240/415V ,3-Phase
E50-4001 00-RQ1KlT (1 00 amp)
E50-400200-80-1KlT (200 amp)
Es0-400400-ROlKlT (400 amp)
E50-40o800-R01 KIT (800 amp)
E50-4001600R81K1T (1 600 amp)
E50-4003200HQ1K1T (3200 amp)
277148OV,3-Phase
Es0-4801 00-R01 KIT (1 00 amp)
E50-480200-R0I KIT (200 amp)
E50-480400-R0 1 KIT (400 amp)
E50-480800-R01 KIT (800 amp)
E50-4801 600HQ1 KIT (1 600 amp)
E50-4803200RQ1K1T (3200 amp)
347l600V 3-Phase,4 W (Wye Configuration)
E50-6001 00-R01 KIT (1 00 amp)
E50-600200-801 KIT (200 amp)
E50-600400-R01 KIT (400 amp)
E50-600800-R01 KIT (800 amp)
Es0-6001 600R01KlT (1 600 amp)
E50-6003200RQ1K1T (3200 amp)
Enclosure Options
Meters supplied standard in NEMA 4X outdoor enclosures.
Not available in MMU Configuration.
To order a JIC Steel anclosura replace "8" in model number
with "J" (E50-208100-J01 KIT)
Communication Protocol & Option Packages
The models above represent the 01 protocol package. To specily a ditferent
protocol package replace "01" in model number with the specification below.
RS-44!i Porl Ethernet Poil Snecifv
EZ7 EZ7 Elhernel o'l
Modbus BTLi EZ7 Ethernet 02
BACnei lrilS/TP F77 Flhencl o3
F77 lrlodhr rc Tf:P/lP OA
EZ7 BACnet lP 05
Modbus BTLJ N,todbus TCP/lP o5
Lonworks FT-'l o EZ7 Ethernet 07
L onworks FT-1 o l\rlodhus TCP/lP oa
F77 w/Tclonhonp L,lndem F77 Flh'arnal oq
F77 w/Tplnnhane [,,lndcm Modbus TCP/lP 10
E27 w/Telephone Modem BACnet IP 11
Options
Three-phase meter kits are supplied with (3) split-core current sensors.
To order a single-phase, 3-wire meter kit add'-SP" belore "Kl'l''
in the model number. Ex. E50-208100-H01-SPKIT
Single-phase meters will be supplied with (2) splitcore cufient sensors.
{ffililm
Energy Monitoring Producls(800) 334-3666 - www.emon.com Effectlve Date: 1 111812013
I 0-2 volt output split-core current sensors allow for
enhanced safety and accurate remote mounting of
sensors up to 500 feet from meter without power
interruption. (Optional solid-core sensors available.)
I Onboard installation diagnostics and verification system.
Cuss 5000 Smort Meter E:rUmP:mm
Exafiigmuc SprcrtcAI:IoNs Enersv Monitorins Producrs & svstems
C/ass 5000 Smart Meter Specifications
Meter shall be fully electronic with 4 line LCD display showing:
- kwh - kW demand (with peak date and time)
- Power factor per phase - Real{ime load in kW
- Amps per phase - Volts per phase
Meter shall utilize 0-2 volt AC output current sensors to allow paralleling and/or mounling up to 500 feet from meter.
Sensors shall be of split-core configuralion to allow installation without disconnecting cabling, etc. Sensors shall be
available from 100 amp to 3200 amp. Sensors shall be optionally available in solid-core configuration (100 & 200 amp.)
Meter shall provide current sensor installation diagnostics indicator, phase error indicator and phase angle
diagnostics on display.
Meter shall be enclosed in a NEMA 4X polycarbonate enclosure (standard) with padlocking hasp & mounting flanges
for indoor/outdoor installation (stand alone) with one 1 1/16" KO on bottom of enclosure. Optional heavy duty JIC steel
enclosure available for indoor installation.
Meter shall be UUCUL listed to latest applicable standards for safety.
Meter shalf meet or exceed ANSI C12.2O accwacy standards.
Meter shall be CE Mark approved.
Meter shall meet or exceed MID accuracy standards.
Meier shall provide non-volatile memory to maintain reading during power outages.
Meter shall slore interval data for kW and kVAR lor up to 72 days in first-in first-out format. lnterval data not available
via BACnet or Lonworks.
Meter shall be optionally available in single-phase, 3-wire configuration.
Meter shall operate as slave device when used with Modbus or LonWorks options. Meter works as a master device
on BACnet MSffP.
Meter shall provide optional sth & 6th channel for logging inputs from third-party metering devices (gas, wate(
BTU, etc.) Both channels provide interval data logging that can be read via E-Mon Energy software and Modbus.
Meter shall provide two (2) pulse outputs.
Meter shall be capable of daisy-chain connection using RS-485 communicalions in combinations of Din-Mon
D2 & D5, Class 3200s, 3400s, 5000s, IDR-8S, IDR-I 6s not to exceed 52 devices. Cabling shall be through RJ-1 1
modular iack (4-conductor) or terminal block (3-conductor), 18-26 AWG, up to 4,000 cable feet total.
Meter shall be MV-90 compatible (With EZ7 Only)
Meter shall be available with the following communication protocol & option packages:
FIS-485 Port Snecifv
EZ7 E27 Ethernet 01
lv,lodbus RTU EZ7 Ethernet 02
BACnet MS/TP EZ7 Ethernet 03
F77 Itlodhrrs TCP/lP o4
EZ7 BACnet lP 05
tVodbrrs RTtJ IVodbus TCP/lP 06
Lonworks FT-10 EZ7 Ethernet 07
Lonworks FT-1O lVodbus TCP/lP 08
F77 wffelenhonc l/oriem F77 Fthernet 09
EZ7 w lT eleohone fv'lodem Ivlodbus TCP/lP 10
EZ7 wlTelephone Modem BACnet lP 11
BACnet protocol shall be BTL certified. Lonworks protocol shall be LonMark certified.
Energy Monitoring Producis
o
[phone] - wwwemon.com Effective Date: 6/3/201 3
Meter shall be field programmable for meter date/time, lP address and lD code for communication options.
4.3. Ghemlcal Storage.
Subject to Tenant's right to designate records as exempt from disclosure under ldaho Code title 74
chapter 1, Tenant shall make available to Landlord copies of all reports, forms and other disclosures
required of Tenant under Environmental Laws and related to chemicals stored or used at the Premises.
1.4 Premisos Condition; Window Coverlngs.
Tenant shall keop the Premises in a reasonably clean condition consistent with other multl-user office
parks withln the geographic vicinity. Tenant may at lts option at any tlme install or remove blinds from
windows or othoruise rsmove, change or modify any wlndow correrings ln the Premises.
4.5 Parking, Tenant Access, Areae, and Roadwaye.
A. Parklno. Commencing on the Term Commencement Date and conflnuing until the
explration or sooner termination of trls Lease, Landlord hereby grants to Tenant and any Tenant Pafi
the inevocable right to use without additional charge throughout the Lease Term for Tenant aM any
Tenant Party 3.59 unasslgned, non-excluslve parking spaces per 1,000 rentable square feet of the
Premises then leased by Tenant, all ln accordance wlth the terms of trls Lease. ln addition, Landlord
shall provide designated visitor parking spaces located throughout the parklng areas shown on tre Site
Parking Plan attached hereto as Exlllblt "A-2". Tenant and Tenant Parties shall be subject to applkxble
Law goveming parking on the Campus. With prior notlce to Landlord, Tenant may, at its sole cost and
exponse, install signs indlcaling parking is for the use of Tenant in the bcation shown on the Slte Parking
Plan attached hereto as ExhlFit "A-2".
B. Elgctrlc Car Chargino Stations. Landlord hereby acknowledges and agrees that Tenant
shall have sole and exclusiva control over the electrb car charging stiations (EGC Stations') owned by
Tenant and located in the Common Areas as of the Effec.tive Date. Tenant shall be permitted to operate,
use, modifi7, remove and/or replace the ECC Stations at any time during the Lease Term ln their existing
locations within he Common Areas. Upon termination of this Lease, Tenant will be permitted to leave the
ECG Stations in their as-is condition and location.
C. Tenant Access Are?s and Roadways. Subject to applicable Law and Landbrd's security
protocols, Tenant shall have unobstucted aocess for itself, its sublessees and asslgns and any Tenant
Party to the Tenant Access Areas at all tmes during the Leasa Term. ln additlon to the Tenant Access
Areas, Tenant shall have the use during the Lease Term of all other areas of travel on the Common
Areas, including access, roadways, turnarounds, entries, and loading areas as they exisl or ara equal to
those in existence as of the Term Commencement Date. Use of areas of tavel shall be subject to
applicable Law.
4.6 Slgns.
It is the desire of fie parties that a consistent and attractive signage program be developed for the
Buildings and Common Areas. As such, the Tenant may retain all signs that exist as of the Term
Commencement Date ln the Premises, or on he Buildings or in the Common Areas, including without
limitation, directionalsignage, wttich Tenant shall have to right to keep in place for the entire Leese Term.
Subject to Landlord's prior consent, not to be unreasonably wlthheld, conditioned or delayed, Tenant shall
have the right to place or lnstall at any time so long as it is in accordance with applicable Laws: (1)
direc'tional parklng signage on any porlion of the Common Areas; and (2) tenant identification signs on
any and all monument signags on the Buildings and Common Areas; and (3) fagade signs on the top of
the exterior of any and/or all Buildings which are a part of the Pramises. Tenant shall have the right to
ptace or install at any tlme so long as it ls in accordance with applicable Lews any signs in the interior of
any or all of the Buildings which are a part of the Premises. Any sign or signs which Tenant may desire to
be lnstalled shall be installed and maintained at Tenant's sole cost and expense and in compliance with
applicable Laws. Landlord shall have the right to install multl-tenant monument signage, or change
existing monument signage to multi-tenant signaga, at the entries to the Campus without Tenant's
approval, provided that all such signs shall include Tenant (lncluding Tenanfs name and logos) on such
signage of a position, visibility and size commensurate with Tenant's percentage occupancy of the square
HEWLl53929\t2831,tll,8
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services, and office services), and Landlod hereby grants Tenant and FM Contractor a license for the
performance of such malntenanoe and services at the Campus consistent with those performed during
the twelve (12) months preceding the Term Commencement Date. Accordingly, Tenanl shall provide, as
a matter of convenience for Landlord, the aforementioned Campus-wide maintenance and services
through FM Confactor from the Term Commencement Date until the earlier to occur of: (i) ten (10) days'
following LaMlord's delivery of written notice to Tenant of Landlord's intent to take over such Campus
maintenance; and (ii) three hundred sixty-five (365) dayes following the Term Commencement Date (the
"lnterlm Service Pcriod'). ln consideration for the foregoing, Landlord shall pay to Tenant the actual
cost of such maintenance and servlces provlded by Tenant to he Campus lhrough any FM Contractor
during the lnterim Service Period wihin thirty (30) days afier Landlord's recelpt of an inrroice from Tenant
therefor (each an "lnterlm Servlce lnvolce'); provided, however, if Landlord reasonably disputes the
lnterim Service lnvoice, upon L"andlord's requ6st, Tenant will provide reasonable supporting backup
documentadon for any lnterim SeMce lnvoice (to the extent Tenant can reasonably obtain such hom the
applicable FM Conkactor). Following Landlord's payment of an Interim SeMce lnvolce to Tanant,
Landlord may include Tenant's Share of such lnlerim Sewice lnvoice costs for the Common Areas in
Tenant's Share of Building Erpenses (which costs Landlord and Tenant agree mey require a reasonable
and equitable allocation as contemplated by Section 3.3(c), abova). The failure, intemrption, or cassation
in the provision of such Campus services by Tenant during the lnterim SeMce Period shall not be a
default by Tenant, and, except to the extent caused by the Landlord's negligence or willful misconduct,
any failure, intemlption, or cessation in the provision of such Campus services by Tenant during the
lnterim Service Period will not be a default by Landlord (provided the lnterim Service Period has not
ended or Landlord has not otherwise previously notified Tenant ln writing of its intent to trakeover any such
service prior to tre explratlon of the lnterim Service Period).
5.2. Standard Tenant Servlces,
Landlord shall provide the following services to the Premlses at all times during the Lease Term;
A. Utilities.
1. Except as provided in this section and Section 6.6, Landlord shall cause
electricity, gas, water, HVAC, tash removal, heated water, chilled water and all other utilities in place as
of lhe Term Commencement Date to be supplied to the Premises during Normal Business Hours at all
times during the Lease Tenn in the same amounts and levels as they are on the Term Gommencement
Date. Landlord shall conkact directy with and pay all charges and fees (for the utility seMce provided)
dlrecdy to the applicable utility company or service provider with respect to the Common Areas and to the
Buildings other than the Premises, and to the Premises to the extent such utilities to the Premises are not
separately metered. With respect to all utillties supplied to flre Premises by third parly utility companies, if
permifted and if separately metered, Tenant shall contract directly with, and pay all charges and fees (for
the utility or service provided) dlrecdy to, the applicabla utility company or service provider. lf utilities are
not separately metered, utilities shall either be submetered or shall be reimbursed to the Landlord on a
proportlonate share basls. lf Tenant's use of utilities is in excess of normal general offtce occupancy
loads and the Premises is not separately metered or submetered, Tenant shall separately meter or sub-
meter the Premises for such excessively used utility, at its sole cost and expense. For so long as the
Buildings 1, 3, and 5 are deamed'Premises BuiHings' and Tenant operates and maintains the Building 5
central plants for hot water and chilled water (as more specifically set forth in Section 5.1.A), Landlord
shall not be required to provide hot water or chilled water to Buildings 1, 3, and 5.
2. Landlord shall replace as needed and as part of regular maintanance, worn out
lamps, starters and ballasts for Building standard lighting fixtures wilhin the Premises and Common
Areas.
3. Tenant shall provide for its own data, cable, and satellite services.
HEWLtS:t929\143143.8
Lease - Page 28
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4- Landlord shall provide reasonable amounts of city water from the regular ouUets
in the Buildings comprislng the Premises for toilet and for ddnking purposes for normal general office
oocupancy loads, and sufficient water for inigation, fire protection and for cooling towers.
5. Landlord shall provide any sanitary Eswer, process water or industrial unste
water, and storm water gathering and discharge from the Premises, the Buildings and Common Arsas,
except that: (1) the Permits therefor shall be maintained by Tenant or Landlord as requlred by Section
4.13; and (2) Tenant's use and discharge of sewer, process water, and industrialwaste water grovemed
by a Permit in Landlord's name shall not materially exceed lhe use and discharge at the Term
Commencement Date.
B. lntemrotion of Utillties. ln the event of utility or service interruption to any portion of the
Premises, the Buildings or the Common Areas, Landlord shall promptly take all steps reasonably
nec€ssary lo restore full utilities and seMces. lf such intemlption of utility or service interferes with
Tenant's normal business operations and Landlord fails to take all steps necessary to restore full utilities
and services wlthin twenty-four (24) hours after Tenant provides notice thereof to landlord, then, in
addition to Tenant's other rights and remedies under this Lease, Tenant shall have the right take all such
reasonable and ne@ssary steps to restore such utility or service and Landlord shall reimburse Tenant for
such costs as set forth in Section 12.3 ol thls Lease. lf an intemption of utility seMce caused by the
negligence or willful misconduct or breach of this Lease by l-andlord, its agents, employees or contractors
renders the all or any poffon of the Premises in Tenant'e judgment unfit for Tenant to conduct its
business therein and if Tenant osases operations of its business in the Premises or any portion thereof as
a result of such a utility lntemrption for more than forly-elght (48) hours after Tenant notifias Landlord in
wrifing thereof, then Rent hereunder shall abate (or proportionally abate if Tenant is able to conduct
buslness ln a portlon of lhe Premises) until tte utility intemrption has ended, or until Tenant resumes
conduct of business in the affected portion of the Premises, wtrichever occurs first-
5.3 Security;Accesc.
A. Tenant Access. Tenant shall be allowed access to the Premises (including use of at least
one elevator in each Building wtrich is part of the Premises) and the Common Areas necessary for acoess
to the Premises and for parking twenty-four (24) hours per day, seven (7) days per week, three hundred
sixty-five (365) days per year during the Lease Term. So long as Tenant has such aocoss, Tenant shall
comply w!th, and shall cause each Tenant Party to comply with, the reasonable sacurity protocols
established by Landlord for access to the exterior perimeter of the Common Ar6as, Buildings not wtrolly
leased to Tanant and Tenant Access Areas.
B. No Dutv to Provide Secudty. Except as provided for herein, Tenant and Landlord
acknowledge and agree that neithar Landlord nor Tenant has any duty whatsoever to provide security for
the Buildlngs and Common Areas or any part thereof (including the Premises), and that Landlord does
not represent, wanant, covenant or provide any other assuranoe that any security measurss or seryices
now or hereafter provided by or on behalf of Landlord will be adequate to protect Tenant or any Tenant
Parly or any property of Tenant or any Tenant Party from loss, damage, injury or harm, Landlord and
Tenant hereby release the other of and from, any and all Adverse Consequences, wtrether in contract,
tort or on any other basis, for any injury to or any damage or loss sustained, or any damage to property,
resulting from or attributable in whole or in part to the inadequacy or insufiiciency of security eguipment,
personnel, seMces or procedures belng provlded or implemented by or on behalf of the other, except to
the extent of a party's negligence or willful misconduct.
C. Tenant Securitv. Tenant will be permitted to retain and operate all security systems
existing at the Premises and/or the Campus as of the Term Commencement Date. Tenant shall have the
right to install at Tenanl's sole cost and expense a new, modified, additional or different security system in
coordination with Landlord's system, at Tenanl's discretion; provided, however, that such installatlon shall
comply with Article 6 of this Lease. Landlord hereby covenants and agrees that any security system
lnstalled and/or utilized by Landlord in the Campus will be compatible with Tenant's security system
existing as of the Term Commencement Date, such that Tenant may accegs the Common Areas and
HEWL\53929112831,[l}.8
Lease - Page 29
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Systems requires any Building penetrations, Tenant shall use a contractor approved by Landlord (in
Landbrd's reasonable discretion) and shall cause such work to be done in a manner that will pres€rve
any roof warranty held by Landlord.
6.4 Llens.
Tenant shall keep the Buildings and Common Areas free from any liens or claims arising out of (i) work or
seMces performed, or materials purchased, by or on behalf of Tenant or any Tenant Party or (ii) the use
or occupancy of the Premises or the Buildings and Common Areas by Tenant or any Tenant Party during
the Lease Term. Tenant shall pay when due all bills arising out of any work performed, materials
fumished, or obligations incuned by Tenant or any Tanant Party relating to the Buildings or Common
Areas. lf any such claim of lien is recorded or filed against Tenanfs interest in this Lease or the Buildings
or Common Areas, Tenant shall bond against, discharge or otherwise cause such lien to be entirely
released within thirty (30) days after Tenant raceives notice that the same has been recorded or filed.
6.5 Separation of Systeme.
The entire Campus was owned by Tenant prior to the Term Commencement Data. As such, many of the
Building Systems and Equipment at the Campus are interconnected between the Premises and Buitdings
which are not part of the Premises. Landlord agrees that Tenant shall have no obligations with respect to
such interconnected systems, or to any other tenants of the Campus, or to any portions of the Campus
outside the Premises. lt is the intention of the parties, and Tenant requires, and Landlord agrees that
Buildings 1, 3, 5 and 7 shall be separated by Landlord from the other Buildings on the Campus as to all
systems. Unless othenruise agreed in writing, the costs and expenses of the separation described in this
Section 6.5 shali be paid by the party undertaking the separation.
A, Lendlo(d Seoaration Work. Landlord covenants and agrees that Landlord shall (except as
otherwlse provided in Section 6.5.8., balow), at lts sole cost and axpons€, without any reimbursement
from Tenant (by vmy of Building Expenses, Maintenance Costs or Operating Expenses or otherwise), and
as a material part of the consideration for the sale of the Campus to Master Landlord and the leaseback
under this L6ase, to take all acts and perform allwork necessary to (1) separate Buildings 1, 3, 5 and 7
from all systems serving Buildings 2. 4, 6 and 8; and (2) separate the Common Area from all systems and
utililies serving lhe Premises (collectively, the "Landlord Separation Work'), includlng, but not limited to,
the heated water, chilled water, gas, domestk cold water, inigation, electrical and flre, life safety systems,
such that Landlord shall be able to conhol the Building Systems and Equipment for all areas of the
Campus exterior to the Premises and allocate utillg charges between the Premises Buildings on the one
hand, and allOther Buildings and Common Areas on the other hand. More specifically, the Landlord
Separation Work shall Include the following, which shall be performed at Landlord's sole cost and
expensa:
i. lnstall BTU meters and temperature sensors on both heated water supply and heated
retum water for Building 7, which is served by the boiler plant located in Building 6 so as
to allow the conect separate metering and billing of heated water used by Building 7.ii. lnstall BTU meter for the chilled water supplied to Building 7 ftom he chilled water plant
located ln Building 6, and install flow meters and temperature sensors on chilled return
water and chilled water supply and connect the same to an'Onicon' m€ter located on the
Building Link between Buildings 6 and Building 7 so as to allow the conect separate
metering and billing of chilled water used by Building 7.iii. lnstall sub-meters at Buildings 1, 5 and 6 and the Cafeteria Building for the supply of
naturalga$ so as to allow the conect separate meterlng and billing of natural gas used by
Buildings 1, 5 and 6 and the Cafeteria Building.iv. lnstall individual sub-meters for domestic cold water on Buildings 1, 3, 5, and 7 at the
weter entrance into said Buildings so as to allow the conect separate metering and billing
of domestic cold water used by Buildings 1, 3, 5, and 7.v. lnstall sub-meters on power being fed from Building 5 to the inigation pumps and
pavilion, recreational and picnic areas near the Sports Fields so as to allow he correct
separate metering and billing of power to those Common Areas.
HEUrLl53920ll 2831if3.8
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vi. Remove irrlgation system controller ftom Bulldlng 7 and relocate to elsewhere in the
Campus outside of he Premises.Mi. lnstall Emon or other sub-meters on electrical service at Buildings 1, 3, 5, and 7 to allow
the conect separate metering and billing of electicity used by Buildings 1, 3, 5 and 7ln a
location to be mufually agreed upon between Landlord and Tenant.viii. Move lire alarm node l0 located in Building 1 mezanine to the mezzanine of Building 2.ix. lnstall new Building Automation Systam ('BAS) or other suitable contnol sptem in
Buildings 2, 4, 6, and 8.
Landlord agr€es lo commence the Landlord Separation Work promptly following the Term
Commencsment Date and shall diligently pursue lhe same to completlon, Subject to Force Majeure, the
Landlord Separation Work shall be completed not later tnn the lirst (lst) anniversary of the Term
Commencement Date. Tenant acknowledges and agrees that Landlord shall have the right to access the
Premises to perform the Landlord Separation Work, subject to Landlord's compliance with Section 4.9.
Landlord shall pay for all costs associated with conslructing or completing Landlord Separation Work,
including, wlthout limitation, all contractor fees and professional fees (e.9. engineering, architectural, legal
and permitting). Landlord shall use commercially reasonabla efforts not to interfere wtth Tenant's use of
fie Premises, perform such work in a good and workmanllke manner, in compliance with all safoty and
applicable Laws, and diligenUy prosecute such work to compledon (including the restoralion of any portion
of the Premises or any Tenanfs Property and fixtures that were disturbed by Landlord to complete such
work),
Landlord hereby acknowledges and agrees that the Landlord Separation Work may only occur during
times reasonably approved by Tenant (and the parties agree it shall be reasonable for Tenant to require
that such work occur on weekends or non-Business Days), Landlord shall provide Tenant with not less
than five (5) Business Days' prior notice for any Landlord Separation Work that may involve lntemrption in
utilities to the Premises, such intemtption in ulilities shall not last longer than twenty-four (24) hours in
length, and in the case of a porrver interruption during Normal Business Hours, if requestad by Tenant,
Landlord shall, at its sole expense, provide a souroe of back-up power for the Premises to allow Tenant to
continue its normal business operations during such intemrption.
ln the event Landlord has not completed the Landlord Separation Work on or before the thirtieh (30th)
day following its due date, then without limiting Tenant's remedies for such a defauh, Tenant shall have
the right, upon prior wriften notice to Landlord, lo complete all or any portion of the Landlord Separation
Work (which shall be performed by competenl, reputable contractors and ln a good rwrkmanlike manner
in compliance with all applicable Laws), and to offset all amounts reasonably and actually spent by
Tenant, and reasonably documented, against the next installment(s) of Rent lo be paid under this Lease.
Following completion of the Landlord Separaton Work, Landlord shall be solely responslble for the
operation, malntenance and meter/sub-meter readings.
B. Tenant Separation Work.
Lendlord and Tenant hereby agree that Tenant shall have the right, but not the obligation, to perform the
following separation work at the Campus at Tenanfs sole cost and expense (the "Tenant Scparation
Work'):
i. lnstall heat exchanger on the chilled water plant located in Building 5 to supply processad
cooling water to Premises and cut and cap processed cooling water lines in Building 6 and
Building 2 and the west mezzanine of Building 3.ii. lnstall a new air compressor wlthin the Premises and cut and cap (or by use of existing
valves) isolate any compressed air llne connecting Buildings 2, 4, 6 and 8 to the Premises.lii. Cut and terminate horizontal cabling of the BAS at the points where cabling extends beyond
the Premises and modfi or reprogram the BAS to serve only the Premises,
lrEwL153929\12831€.8
lnase - Page 33
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iv. Cut and terminate horizontralcabling connections to Supervisory Controland Data Acquisition
fSCADA') equipment and systems where cabling extends beyond the Premises and modify
or reprogram lhe SCADA system to serve only the Premises.v. Disconnect red emergency phones and remove phones and related signage in Building 2 and
Building 6. Phone wall boxes, jacks and cabling shall be abandoned in place.vi. Remove digital video recorders, cameras, horizontal cabling, access panels, access card
readers and patc*t within the Building 2 and Building 6 and instrall access card readers,
cameras, and related serurity system components at the perimeter of the Premises and at
any applicable Common Areas.vii. Tum off amplifiers and cut and termlnate horizontal cabling of the public address system that
would extend beyond the Premises in Buildings 1, 3, 5 and 7.viai. Gut and terminate horizontal cabling of Tenant's telecommunications and information
technology network system at tte points whsre cabling extends beyond the Premises and
modiff the network s!6t6m to sene only the Premises.
Should Tenant elect to perform the Tenant Separation Work, Tenant agrees to comply with Sections
6.1.B and 6,1.C, of fris Lease and to dlllgently pursue the same to completlon not later than the first (1st)
anniversary of the Term Gommencemenl Date.
Tenant shall pay for all costs associated with constructing or completing any Tenant Separation Work,
including, wi8rout limilation, all contractor fees and professlonal fees (e.9. engineering, archhectural, legal
and permitting). When performing the Tenant Separation Work, Tenant shall use commercially
reasonable efforts not to interfere with Landlord's or the other Campus occupants' use of the Gampus,
perform such work in a good and workmanlike manner, in compliance with all safety and applicabla Laws,
and diligently prosecute such work to completion. ln connection with the Tenant Separation Wo*, any
Building Syslems and Equipment and associated components located outside of the Premises may be
abandoned by Tenant in place and Tenant shall have no obllgation to remove any such system
equipment or components.
Landlord hereby agrees and acknowledges that Tenant shall have the dght lo access those portions of
the Campus (including the Buildings and Gommon Areas) required to perform the Tenant Separalion
Work, subject to compliance with reasonable security protocots imposed by Landlord. Tenant shall
provide prior notice via email to Ric Johnston, Statewide Facilities Manager at
[e-mail] at least one (1) Business Day prior to entering into non-Premises Buildings
and/or Common Areas to perform the Tenant Separation Work. Landlord may designate an altemate
contact for this Section 6.5 by notlfylng Tenant in writing at least 5 Business Days ln advance.
0.6 lnterim Utillty and HoUchllled Water Distrlbutlon and Gentral PIant Operatlons.
During the period between the Term Commencement Date and the completion of the Landlord
Separation Work and he time when the Landlord takes over controls of the applicable utilities and
systems, as applicable, Landlord shall pay Tenant monthly for all of the costs of all of the Building
Systems and Equipment that serve the Common Areas andlor Buildings 2, 4, 6 (excluding he
Outbuildings), and 8, on the basis of Tenant's reasonable estimate and calculation from time to time of
such utility costs (based on ths fair market value), including without limitation, he costs of alectricity (to
the extent not already separately metered or sub+netered), domeslic water, naturalgas, chilled and hot
water, building managemenl systems, inigation, life safety systems and other such Building Systems and
Equipment (all of such costs are herein called the "lnterim Utllity Payments') for such portions of the
Campus. Tenant may change the amounts payable monthly for such utilities at any time on fle (5) days'
notice to Landlord. To the extent occupied less han 1000/0, or occupied for partial months, lnterim Utili$
Payments shall be adjusted and prorated accordingly. All lnterim Utility Payments shall be due
simultaneously with the Tenant paynents of Base Monthly Rent, shall bear late charges and default
interest on the same terms and with fre same notice and grace periods as Tenant payrrnents of Base
Monthly Rent, and shall constitute default by Landlord if not paid in the same perlods as afforded Tenant
for Base Monthly Rent. Upon separation of each respective Building, and as Landlord Seperation Work is
completed and/or Landlord takes over control of the cental plant in Building 6 and other such Building
HEWL\5394]1283t,[lt.E
Lease - Page 34
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Systems and Equipment as required by Landlord under this Lease, all Interim Utility Paynents shall be
prorated (or charges adJusted) as of the date of th€ separation or Landlord control (as applicable), and all
utility deposits shall be retumed to Tenant, or purchased from Tenant in cash by Landlord.
The failure, interruption, rationing or other curtailment or cessation in the supply of hot water, chilled
water, electricity, water, gas, or olher utility by Tenant prior to complelion of the Landlord Separation Work
to any part of the Campus shall not be a default by Tenant, and, except to the extent caused by the
Landbrd's negligence or willful misconduct, any failure, intemrption, or cessaflon in the provision of such
interim utility servicas by Tenant prior to the completion of the Landlord Separation Work or such earlier
date as Landlord takes over conhol of the applicable utility seMce(s) will not be a default by Landlord.
Landlord acknor,vledges and agrees that it will not receive, and under no circumstances shall it be entitled
to any backup power from any Tenant back-up, emergency, or unintemlpted power systems operated by
Tenant, including without limitat'rcn, from the Generators.
Artlcle 7
ASSIGNMENT AND SUBLEASING BY TENANT
7.1 By Tenant.
Tenant shall not sublet the Premises or any portion thereof or assign, pledge, ancumber or otherwise
tansfer all or any part of its lnterestin this Lease, whether voluntarily or by operation of Law (collectively,
a'Transfe/), without LaMlord's prior written consenl, which consent shall not be unreasonably withheld,
conditioned or delayed. Except as authorized by subsection 7.3 of this Section, prior to assignment of all
or a portion of Tenant's interest in this Lease (excludlng a sublease), Tenanl shall also seek and receive
approval of the State Board of Examiners to the extent required by ldaho Code section 67-1027. lf
Tenant shall desire to Transfer all or any part of its interesl in this Lease to any Person, and if Landlord's
consent is required under the terms of tris Article 7, then Tenant shall nolify Landlord in writing at least 30
days in advance of the date it intends to Transfer all or any part of its interest in this Lease, speclfylng the
terms of such proposed Transfer, including the name of the proposed Transferee, and the Transferee's
intended use of the Premises, as well as the proposed form of documents to be used ln effectuatlng the
Transfer (if such documentetion is completed and signed at such time) and such other information as
Landlord may reasonably request (in light of the fact that Tenant will not be released from its obligations
under this lease after the Transfer), aM, with respect to proposed Transfers of 25,000 rentable square
feet or more or a sublease or assignment with a term of ono year or more, Tenant shall request cunent
financial statements of the proposed Transferee (includlng requestlng a balance sheet, income statement
aM statemant of cash flow, all prepared in accordance with such accounting slandard or methodology
his{orically used by the proposed Transferee). The foregoing deliverables are hereln collecdvely called,
the -Transfer Packaga'. Landlord shall provide to Tenanl written approval or disapproval of any Tnansfer
request from Tenant within fourteen (14) Business Days following receipt of the Transfer Package. lf
Landlord fails to give to Tenant lts witten approval or disapproval of the proposed Transfer within such
14-Business Day period, then, Landlord shall be deemed to have consented to the proposed Transfer. lf
Landlord timely dlsapproves of the sublease or assignment, the disapproval shall only be effective if it
specifically stat'es the reason(s) for the disapproval. Tenant shall have the right to contest the
reasonabillty of any disapproval by Landlord.
72 Effect of Landlord's Consent.
Approval of any Transfer shall not in any way act as a release of any claim by Landlord as againsl the
original Tenant nor shall it act as a waiver of any default under this Lease exlsUng at the time of such
Transfer to th€ extent that any such default continues and remains uncured after such Transfer. The
provisions of the Lease will continue in full force and effect upon Transfer. The acceptance of rent by
Landlord from any Person other than Tenant, or the acceptance of Rent by Landlord from Tenant with
knowledge of a Molation of the provisions of this Article 7, shall not be deemed to be a waiver by Landlord
of any provision of this Article 7 or this Lease or to be a consent to any Transfer. No Transfer, even with
the consent of Landlord shall relieve Tenant of its personal and primary obligation to pay Rent and to
HEt'YL153929\1 28:i143.8
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:
LEASE AGREEMENT
mls LEASE AGREEMENT (the 'Lease') is entered into as of the 14O", of DeCffnW|.
2017 ("Execution Date"), by and between Landlord and Tenant hereinafter named. Upon the
terms and conditions hereinafter set forth, Landlord and Tenant agree as bllows:
1 DEFINITIONS AND BASIC PROVISIONS. The following definitions and basic
provisions shal! be used in conjunctbn wlth and limited by the reference thereto in the
provisions of this Lease:
A. "Landlord': ldaho Department of Administration
P.O. Box 83720
Boise, ldaho 83720-0003
Attention: Director
With a copy to:
ldaho ffice of the Attomey General
P.O. Box 83720
Boise ldaho 83720-0010
Attention: General Counsel, Dept. of
Administration
B. "Tenant"First Technology Federal Credit Union
a Federally chartered corporation
C. Address of Tenant:1335 Terra Bella Avenue
Mountain Mew, CA 94043-1835
Attn: GeneralCounsel
D. Tenant FederalTax lD:23-7062675
Lease Premises": All space to be occupied by Tenant as shown on Exhibit "A",
attached hereto and made a part of this Lease, containing the approximdte
square footage of net rentable area and being located at the building known as
Building 2 (the "Building") at the campus commonly known as 11321 West
Chinden Boulevard, Boise, ldaho (the 'Property"). Landlord reserves the right to
require Tenant to relocate the ATM machine located in the lobby, as shown on
Exhlblt A, to an altemative location provided by Landlord during any construction
that Landlord may conduct, upon 45 days' notice. Unless othenrise agreed by
the parties, Tenant shall be responsible for the relocation, including the cost.
"Lease Term": The Lease Term for the Lease Premises shown on Exhlbit "B"
shallcommence on the Execution Date (the'Commencement Date") and expire
on March 31 , 2019 (the 'Expiration Date'), subject to Section 42 below.
'Rent': Rent shall be per rentable square foot per year, which is inclusive of all
operating expenses for repairs, maintenance and janitorial, and all real estate
E.
F
tr.
HEWL\53929\t36641 9.1
taxes, but exclusive of any costs related to telephone services, datia services or
afier-hours heating, ventilating or air conditioning expenses ("Excess Costs').
Rent is shown on Exhibit "B".
H."Tenarit's Proportionate Share': For the purpose of allocating Tenant's pro rata
share of Excess Costs attributable to the Lease Premises, Tenant's
Proportionate Share shall be a ftaction, the numerator which is the total number
of the rentable square feet of the Lease Premises and the denominator which is
the total of the rentable square feet of Buildings at the Propefi. Notwithstanding
the foregoing or anything contained elsewhere in this Lease to the contrary, if
any Excess Costs result from services provided solely to any one or more of the
Lease Premises, then Tenant shall pay 100% of such Excess Costs related to
the Lease Premises.
"Tenant's Representatives": Tenanfs employees, agents, representatives,
contractors, vendors, customers, guests and invitees.
"Landlord's Representatives": Landlord's employees, agents, representatives,
oontraclors, vendors, customers, guests and invitees.
GRANTING CI-AUSE. Landlord, in consideration of the covenants and agreements to
be performed by Tenant and upon the terms and conditions hereinafter stated, does
hereby lease, demise and let unto Tenant, and Tenant in consideration of the covenants
and agreements to be performed by Landlord and upon the terms and conditions in this
Loase, does hereby take and lease from Landlord, the Lease Premises, subject to all
laws, statutes, codes. rules, regulations and zoning ordinances promulgated by any
govemmental authority having jurisdiction now in afiect or adopted in the future
(collectively, the 'Law"), to have and to hold for the Lease Term (except as the
Commencement Date and the Expiration Oate may be adjusted as herein provided.)
This Lease is expressly contingent on Landlord taking title to the Property.
INTENTIONALLY DELETED.
INTENTIONALLY DELETED.
CONDITION OF THE LEASE PREMISES. Landlord and Tenant acknowledge that
Tenant is cunently in possession of the Premises, and as such, Tenant shall accept (or
has accepted) possession of the Lease Premises on an 'AS lS, WHERE lS" basis, in
whatever physical condition the same may be, and Landlord makes no representations
or wananties of any kind or nature, express, implied, or otherwise, or any covenants of
any kind or nature, with regard to the condition of the Lease Premises or with respect to
the fitness thereof for Tenant'S intended uses or the quali$ of or manner of any services
provided or to be provided by Landlord, and any such representations, wananties or
covenants are hereby expressly disclaimed. Without limitation of the foregoing, Landlord
shall have no obligation to construct or pay for any tenant improvements to the Lease
Premises or make any repairs or modifications thereto for the benefit of Tenant in
connection with entedng into this Lease.
HEWL\53929\1 3664 1 9. t -2-
J
2.
3.
4.
5.
USE.
A.
B.
c.
D.
Tenant shall use the Lease Premises for general office, computer data
processing uses and banking related services. Tenant shall comply with the
rules and regulations of Landlord with respect to access to and use of the
Building and the Lease Premises by Tenant and Tenant's Representatives.
Tenant and Tenant's Representatives' access and entry shal! further be subiect
to Landlord's Building hours, holiday closures and emergency situations. Tenant
shall have the right to install automated teller machines ("ATM") or electronic
kiosks, subject to the terms and conditions of this Lease, and if so installed,
Tenant and Tenant's Representatives shall have access to ATMs located in the
Building on a 24x7 basis, 365 days per year, subject to Landlord's reasonable
security requirements. Access to the Lease Premises and Building outside of
Landlord's normal business hours shall be coordinated through Landlord's
security personnel. ln the event of Building closures (except due to emergency),
Landlord shall endeavor to provide advance notification to Tenant at least thirty
(30) days prior to the closure date.
Tenant shall not do nor permit anything to be done in or about the Lease
Premises nor bring or keep anything therein which will in any way increase the
existing rate or affect any fire or other insurance upon the Building or any of its
contents (unless Tenant shall pay an increased premium as a result of such use
or acts), or cause a cancellation of any insurance policy covering the Building or
any part thereof or any of its contents, nor shall Tenant sell or permit to be kept,
used or sold in or about the Lease Premises any articles which may be prohibited
by a standard form policy of fire insurance.
Tenant shall not do or permit anything to be done in or about the Lease Premises
which will in any way obstruct or interfere wlth the dghts of other tenants or
occupants of the Building or injure or annoy them or use or allow the Lease
Premises to be used fur any unlaufirl or objectionable purpose, nor shall Tenant
cause, maintain or permit any nuisance in or about the Lease Premises. Tenant
shall not commit or suffer to be committed any waste in or upon the Lease
Premises.
Tenant shall not knowingly use the Lease Premises or knowingly permit anything
to be done in or about the Lease Premises that will in any way conflict with the
Law. Tenant shall at its sole cost and expense promptly comply with the Law and
with the requirements of any board of fire undenrriters or other similar body now
or hereafter constituted relating to or affecting the condition, use or occupancy of
the Lease Premises, excluding structural changes not relating to or affecting the
condition, use or occupancy of the Lease Premises, or not related or afforded by
Tenant's improvements or acts. The judgment of any court of competent
jurisdiction or the admission of Tenant, in any action against Tenant, whether
Landlord be a party thereto or not, that Tenant has violated the Law and with the
requirements of any board of fire undenrriters or other similar body now or
hereafter constituted relating to or affecting the condition, use or occupancy of
the Lease Premises, excluding structural changes not relating to or affecting the
condition, use or occupancy of the Lease Premises, or not related or afforded by
Tenant's improvements or acts, shall be conclusive of the fact as between
Landlord and Tenant.
HEWL\53929\1366419.1 -3-
b.
7
Notwithstanding the foregoing, Landlord shall have the right to establish
Administrative Rules respecting the use of the Lease Premises and the related
Gommon Areas, and Tenant shall comply with Administrative Rules. A violation
of the Administrative Rules shall constitute a default by Tenant under this
Sublease, .subject to the notice and cure provisions of Section 19.H.
?dministrative Rules' shall mean rules of the ldaho Department of
Administration goveming the Buildings and Common Areas adopted pursuant to
the ldaho Administrative Procedure Act, ldaho Code title 67, chapter 52, and
rules adopted by the Landlord for the Lease Premises.
COMMON AREAS. The'Common Areas" of the Building shall be those parts which are
for the common use of, or made available for use by, all tenants of the Building,
including common entrances; halls lobbies, foyers, elevators, stairways and access
ways and ramps, delivery passages, drinking fountains, public toilets, parking lots,
service buildings, loading and unloading areas, trash areas, roadways, parkways, drives,
watkways, green spaces, parks, fountains or other facilities related to the Building
owned, operated or maintained, in whole or in part by Landlord. The Common Areas
shall be subject to Landlord's reasonable management and control. Tenant and Tenant's
Representatives and invitees, shall have the non-exclusive right to use the Common
Areas, such use to be in common with Landlord, other tenants of the Building and other
persons entitled to use the same. Tenant shall be allowed access to the Building and
Common Areas for maintiaining Tenant's ATMs.
RENT.
A.$gl. Tenant agrees to pay equal monthly installments of Rent in advance at the
address indicated in Paragraph 1 above, or such other address as Landlord may
from time to time notiff Tenant at the rate indicated on Exhlbit B. Such monthly
installments shall be payable on or before the first (1st) day of each calendar
month (without demand, set-off or deduction) commencing as of the
Commencement Date. Rent for any fractional month at the beginning or end of
the Lease Term shallbe prorated on actualdays.
Excess Costs. Excess Costs shall mean any and all costs and expenses
incuned related to telephone lines and servicos, data lines and services or after-
hours heating, ventilating or air conditioning expenses. Tenant shall pay
Tenant's Proportionate Share of Excess Costs directly to Landlord within ten (10)
days following receipt of an itemized invoice from Landlord.
Late Charqe. ln the event that any monthly installment of the Rent or any Excess
Costs or any other payment required to be made by Tenant under this Lease is
not received within five (5) days after the due date, Tenant agrees to pay a late
charge (the'Late Charge") in the amount of 37o of the amount due and unpaid. lf
the Late Charge is not permltted by applicable Law, then it shall be deemed to be
reduced to the maximum amount permitted by applicable Law. lt is hereby
underctood and acknowledged that the Late Charge shal! constitute liquidated
damages and such liquidated damages shall be solely for the purpose of
reimbursing Landlord for the additional costs and expenses Landlord presently
expects to incur in connection with the handling and processing of late payments
of amounts due and payable under this Lease. Landlord and Tenant agree that
in the event of any such late payment by Tenant, the damages resulting to
B
C
HEWL\53929\1 3664'r 9. 1 A.
8.
Landlord wil! be difficult to ascertain precisely, and that the Late Charge
constitutes a reasonable and good faith estimate by the parties of the extent of
such damages, if the payment of any amount due and payable is not paid by
Tenant within 30 days after the due date thereof, Tenant shall additionally pay
interest on such unpaid amounts at the rate being the greater of, (i) 10% per
annum or (ii) the Prime Rate plus 5% (in no event will interest be in excess of the
highest interest rate provided by law) which interest shall accrue from the due
date to the date of payment. lf applicable law is ever judicially interpreted so as
to render the interest under this Lease usurious, or contracted for, charged,
taken, reserued or received with respect to this Lease, then it is Landlord's and
Tenant's express-intent that all excess amounts therefore collected by Landlord
be credited on the applicable obligation (or, if the obligation has been or would
thereby be paid in full, refunded to Tenant), and the provisions of this Lease
immediately shall be deemed reformed and the amounts thereafier collec{ible
reduced, without the necessity of the execution of any new document, so as to
comply with the applicable law, but so as to permit the recovery of the fullest
amount othenrise called for under thls Lease.
D.Non-Waiver of Riohts. lf Landlord, at any time or times, shall accept payment of
any sum due to Landlord hereunder after the same shall become due and
payable, such acceptance shall not excuse delay upon subsequent occasions, or
constitute, or be construed as, a waiver of any of Landlord's rights hereunder.
AFTER HOURS HVAC. The Building HVAC may be zoned by floor or section of the
Building. lf Tenant desires after-hours HVAC (hours in excess of 7:00 a.m. to 6:00 p.m.,
Monday through Friday), and the HVAC system is not specifically dedicated to the Lease
Premises, Tenant shall provide Landlord with no less than 24 hourc prior written notice.
lf Tenant is utilizing HVAC in the Lease Premises, Tenant shal! be charged Tenant's
Proportionate Share of the Landlord's then cunent after hours rate based upon the
actualelectrical usage costs from tha supplying utility company, and allother reasonable
costs incuned by Landlord in providing any such additionalservice. Notwithstanding the
foregoing, if Tenant elects to have Landlord provide after-hours HVAC on a portion of a
floor or zoned area which is shared with another tenant(s) in the Building and such other
tenant(s) has not requested afier hours HVAC, Tenant shall be responsible for the costs
for the entire floor or zoned area of the Building.
TENANT IMPROVEilIENTS AND ALTERATIONS. All improvements ("Tenant
lmprovements') and alterations of any kind whatsoever ('Alterations") made by or on
behalf of Tenant shall be subject to the provisions of this Lease and further subject to the
prior wriften consent of Landlord and any and all other requirements by Landlord at the
time of Tenant's written request. Tenant shall be responsible for the payment of all
Tenant lmprovement and Alterations costs, including, but not limited to, allsoft costs (i.e.
engineering and architectural fees) and all Tenant lmprovements and Alterations shall
remain the personal property of Tenant, be insured by Tenant and Tenant shall be solely
responsible for the maintenance, repair, replacement and removal of same. At the
expiration or earlier termination of this Lease. Tenant shall sunender the Lease
Premises in as good condition and repair as when received at the Commencement Date,
reasonable wear and tear, damage ftom fire or other casualty not due to Tenant's acts or
omissions and repairs which are Landlord's obligations hereunder excepted. Tenant
shall upon expiration or earlier termination of this Lease, remove all of Tenanfs personal
properly, including, but not limited to, fumiture and movable trade fixtures, and shall
HEWL\53929\1366419.1 -5-
I
10.
11.
12.
13.
remove all Tenant lmprovements and/or Alterations made by or on behalf of Tenant.
Tenant shall repair any and all damage resulting from such removal and restore the
Lease Premises to the condition existing prior to such Tenant lmprovements and/or
Alterations, all at Tenants sole cost and expense. The foregoing shall apply regardless
of whether the Tenant lmprovements and/or Alterations were made during the term of
this Lease or during the term of any other lease or agreement by and between Tenant
and Landlord. Tenant shall upon expiration or earlier termination of this Lease, deliver ail
keys to the Lease Premises to Landlord.
FINANCIAL STATEMENTS. Tenant will provide to Landlord financial statements of
Tenant certified by a certified public accountant, reasonably approved by Landlord.
Such financial statements, including profit and loss statements, will be provided on an
annual basis commencing either pdor to or in conjunction with the Commencement Date
and Tenant shall continue to deliver the financial statements annually throughout the
Term of this Lease, or any renewal and extension period. The financial statements shall
be prepared in accordance with generally accepted accounting principles consistently
applied and certified by the Chief Financial Officer of Tenant to be a fair and true
presentation of Tenant's cunent financial position. Additionally a cunent, accurate,
complete and detailed financial statement or annual report audited by an independent
certified public acc,ountant shall be provided to Landlord, Landlord may, at Landlord's
option request interim certified financial statements as Landlord may require related to
any accounting, financing or legal requirement. Tenant agrees that its failure to strictly
comply with this Clause shall constitute a material Event of Defauft by Tenant under this
Lease.
PARKING. ln addition to the Lease Premises, Landlord hereby grants to Tenant for so
long as this Lease remains in effect, reasonably adequate parking space for Tenant, its
employees, guests and invitees. Such parking shall be on a non-exclusive, first come,
first serve basis.
ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Lease or further sublet
all or any part of the Lease Premises without the prior wriften consent of Landlord which
may be withheld without cause. Tenant shall not be in default under the terms and
conditions of this Lease at the time of any request for consent or through the period of
time prior to the consent. Any request by Tenant for Landlord's consent to a specific
assignment or Lease shall include a) the name of the proposed assignee, sublessee, or
occupant, b) the nature of the proposed assignee's, sublessee's or occupant's business
to be canied on ln the Lease Premises, c) a copy of the proposed assignment or Lease,
and d) such financial information and such other information as Landlord may
reasonably request concerning the proposed assignee, sublessee or oocupant or its
business. Any assignment or Lease appnoved by Landlord shall be subject to this Lease
and a condition of approval shall be Tenant and such assignee or sub-Tenant executing
and delivering an agreement covenanting to assume the obligations of Tenant under the
Lease. Additionally, for purposes of this Lease, the following transactions relating to
Tenant shall specifically be deemed an assignment of this Lease and shall require
approval or consent by Landlord, and may result in the right to terminate or alter this
Lease, based upon the above: any merger (including, without limitation, a
reincorporation merger), consolidation, reorganization, stock exchange, one or more
sales or transfers of stock, by operation of law or otheruise, or creation of new stock, by
which an aggregate of more than 50o/o of Tenant's stock shall be vested in a party or
parties who are non-stockholders as of the date hereof; and the sale or transfer of
HEWL\53929\1366419.1 -6-
substantially all of the assets or other similar or related transaction in which Tenant is the
surviving entity or, if Tenant is not the surviving entity, the surviving entity which
continues to conduct the business conducted by Tenant prior to consummation of the
transaction. The foregoing related to sale or transfer of stock shall not apply if Tenant's
stock is listed on a recognized security exchange. For the purpose of this Paragraph,
stock ownership shall be determined in accordance with the principles set forth in
Section 544 of the lntemal Revenue Code of 1954, as amended. lf the Rent being
charged or any other concessions granted under any assignment or Lease exceeds the
Rent charged under this Lease, any excess amounts shall be shared equally between
Landlord and Tenant.
ln addition to the foregoing, with respect to the Lease Premises prior to assignment of all
or a portion of Tenants interest in the Lease, Subtenant shall also seek and receive
approval of the ldaho State Board of Examiners as required ldaho Code section 67-
1027. The approval signature of the Leasing Manager, Division of Public Works,
Department of Administration, is a required signature on any Lease assignment. Tenant
shall provide all reasonable documentation requested by Landlord prior to consent to
any assignment.
TENANT'S INSURANCE. Tenant shall, at its sole cost and expense, obtain and
maintain commercial general liability insurance, including blanket contractual liability
coverage, with limits of not less than $5,000,000.00 combined single limit for personal
injury and property damage; comprehensive automobile liability insurance covering all
owned, non-owned and hired vehicles with limits of not less than $1,000,000.00
combined single limit for personal injury and property damage; and statutory workers
compensation and employers liability coverage with limits of not less than $250,000.00,
and naming Landlord as additional insureds, as their respective interests may appear.
The lnsurance policy shall be written by good and solvent insurance companies qualified
to do business in the state where the Lease Premises is located and satisfactory to
Landlord. On or before the Commencement Date of the Lease Term, and within 30 days
prior to the expiration of any such policy, Tenant shall deliver to Landlord a duplicate
policy or certificate of insurance evidencing such coverages. Such insurance policies
shall provide for no cancellation or material alteration without 30 days' prior written
notice to Landlord.
WAIVER OF SUBROGATION. Landlord and Tenant waive all dghts to recover against
each other for any loss or damage to their respective tangible personal or real property
(whether owned or leased) from any cause covered by insurance maintained by each of
them, including their respective deductibles or self-insured retentions. Landlord and
Tenant will cause their respective insurers to issue appropriate waivers of subrogation
rights endorsements to all property insurance policies maintained by each party. Each
party shall give the other party written notice if a waiver of subrogation is unobtainable,
or obtainable only at an additional expense. lf the party receiving such notice agrees to
reimburse the other party for such additional expense, the other party shall obtain such
waiver of subrogation. lf a waiver is unobtainable or if a pafl elects not to pay the
additional expense of a waiver, then neither party nor their insurers shall waive such
subrogation rights.
INTENTIONALLY DELETED.
14.
15.
16.
HEWL\s3929\'t 366419. 1 -7-
17. ENTRY BY LANDLORD . Landlord and Landlord's Representatives shall have access
to the Lease Premises and shall have the right to enter the Lease Premises during
norma! business hours, or at any time in the event of an emergency, to inspect, clean or
make repairs, alterations or additions as may be necessary, or to show the Lease
Premises to prospective purchasers, lenders or, during the last 90 days of the Term or
any renewal or extension term, to prospective tenants, and Tenant shall not be entitled
to any abatement or reduction in Rent or any other charges by reason thereof, nor shall
any such entry be deemed to be an actual or constructive eviction. Notwithstanding the
foregoing, Tenant shall be permitted to designate certain portions of the Lease Premises
as confidential or vault areas, to which Landlord or Landlord's Representatives and its
representratives shall not have a@ess (except in an emergency situation) unless
accompanied by an authodzed representative of Tenant.
18. CONSENTS. Except as specifically set forth herein, Landtord agrees that whenever its
consent or approval is required hereunder, or where something must be done to
Landlord's satisfaction, it shall not unreasonably withhold or delay such consent or
approval; povided, however, that whenever the consent or approval of the landlord
under a superior lease, or the mortgagee under a mortgage shall withhold its consent or
approval for any reason whatsoever, Landlord shall not be deemed to be ac{ing
unreasonably if it shall also withhold its consent or approval.
19. TENANT'S DEFAULT. The following events shall be deemed to be'Events of Default
by Tenanf' under this Lease:
A. Failure to pay any monetary obligation within 10 days of receipt of written notice;
B. Abandonment or vacating of the Lease Premises without the payment of Rent;
C. 'lf Tenant's net worth is materially reduced from the amount as of the date of
execution hereot to a level below "Adequately Capilalized" as defined by the
Nationa! Credit Union Association;
Tenant makes an assignment for the benefit of creditors or institutes a
proceeding under state or federal bankruptcy laws (or successor laws) which
assignment or proceeding is not discharged within 30 days of filing;
A writ of attachment or execution is levied on the Lease or a receiver is
appointed with authority to take possession of the Lease Premises, which
attachment, execution or receiver is not removed within 15 days of filing or
appointment of a receiver;
Tenant rejects this Lease after filing a petition in bankruptcy or insolvency or for
reorganization or arrangement under Federal bankruptry laws or under any State
insolvency act;
Any waranty, representation or statement to Landlord in connection with the
Lease is false or misleading in any material respect when same is made or
fumished;or
Failure to perform any other provision, except for events deemed to be Events of
Force Majeure, if the failure to perform is not cured within 15 days afier the
D
E
F
G.
H
HEWL\53929\1366419.1 -8-
20.
receipt of Landlord's written notice thereof; provided, however, if the default
cannot reasonably be cured wi0rin 15 days, Tenant shall not be in default if
Tenant @mmences to curc the dehult within the 15 day period and diligently and
in good faith continues to cure said default.
REIIIEDIES OF LANDLORD. Upon the occunence of any Event of Default by Tenant,
Landlord shall have th6 option to pursue any one or more of the following remedies, and
any other remedy available at law or in equi$ for such Event of Defauh:
A. Terminate the Lease by written notice to Tenant, in which event Tenant shall
sunender the possession and use of the Lease Premises to Landlord as of the
specified termination date, and all Rent and any additional rent shall be
accelerated and be immediately due and payable. This Lease shallterminate in
all respects except for the provisions hereof regarding Landlord's damages and
Tenant's liabilities arising prior to, out of and following the Event of Default and
the ensuing termination, and the provlsions hereof which by their terms survive
termination:
B.Using lawful means, enter upon and take possession of the Lease Premises
without terminating this Lease and without being liable for prosecution or claim
for damages and remove or expel Tenant or any other person who may be
mcupying the Lease Premises or any part thereof. Landlord may then relet;
upon terms and conditions determined in Landlord's sole discretion, all or any
portion of the Lease Premises, but Landlord shall not be required to relet to any
tenant to which Landlord has a reasonable objection. !f Landlord elects to enter
and relet the Lease Premises, Landlord may at any time thereafter elect to
terminate this Lease, provided, however, no re-entry or taking possession of the
Lease Premises by Landlord shall be construed as Landlord electing to terminate
this Lease, unless a written notice is given to Tenant;
Sue periodically to recover damages during the period conesponding to the
portlon of the Lease Term for which suit is instituted; or
With or without re-entering and taking possess of the Lease Premises, and with
or without further notice, do whatever Tenant is obligated to do pursuant to this
Lease. Tenant shall reimburse Landlord upon demand for any expenses that
Landlord actually incurs in complying with the terms of this Lease on behalf of
Tenant.
lf Tenant defaults, Landlord shall be entitled to recover damages, including, but not
limited to, the total of all payments of Rent and any and all additional rent or any other
amounts owing and unpaid as of the date of the default the costs of re-entry and
reletting, including, wlthout limitation, the cost of any clean-up, refurbishing, removal of
Tenants property and fixtures (which shall be stored for Tenants benefit at Tenant's
sole expense); other expenses caused by Tenant's failure to quit the Lease Premises
and to leave same in the required condition; reasonable attorney's fees; court costs;
advertising costs; and the difference between (i) the annual Rent and all of Tenant's
other obligations under this Lease and (ii) the actual annual Rent received by Landlord
from the Lease Premises for the period commencing with the date of the def;ault and
continuing through the Expiration Date.
c.
D.
HEWL!S3929\'I 3564 1 9. 1 -9-
Pursuit of any of the above stated remedles by Landlord after a default by Tenant shall
not preclude pursuit of any other remedies provided in this Lease or applicable !aw, nor
shall pursuit of any remedy constitute forfeiture or waiver of any payment due to
Landlord. No waiver by Landlord of any violatlon or breach of any of the terms,
provisions and covenantrs herein contained shall be deemed or construed to constitute a
waiver of any other violation or breach of any of the terms, provisions and covenants
herein contained. Forbearance by Landlord to enforce one or morc of the remedies
herein provided upon an Event of Default by Tenant shall not be deemed or construed to
constitute a waiver of any other violation or default.
21. INDEMNIFICATION.
Tenant's lndemnification. Tenant shall indemniff, defend and hold Landlord and
Landlord's Representatives harmless, from any and all liabilities, responsibilities
or claims to Tenant, or any person claiming by, through or under Tenant, arising
from (a) Tenanfs use and occupancy of the Lease Premises; or (b) the conduct
of Tenant's business; or (c) from any activi$, work or thing done, permitted or
suffered by Tenant in or about the Lease Premises, the Building or the Property,
or (d) any breach or default in the performance of any obligation to be performed
by Tenant under the terms of this Lease or arising from any act. neglect, fault or
omission or Tenant or Tenanfs Representatives, and ftom and against all costs,
reasonable attorneys' fees, expenses and liabililies incuned in or about such
claim or any action or prcceeding brought, excluding consequential and punitive
damages. ln case any action or proceeding shall be brought against Landlord by
reason or any such claim, Tenant, upon receipt of notice from Landlord shall
defend the same at Tenant's expense. This indemnification shall survive the
expiration or earlier termination of this Lease.
B. Landlord'slndemnilication. lntentionallyDeleted.
LIMITATION OF LIABILITY OF LANDLORD. ln the event Landlord shall be liable to
Tenant for any matter relating to or arislng in connection with this Lease, whether based
upon an action or claim in contract, equity, negligence, intended conduct, tort or
othenrise, the amount of damages recoverable against Landlord for all events, acts or
omissions shall in no event include, nor will Landlord be liable for, any amounts for loss
of profits, income or savings or indirect, consequential, speculative or punitive damages
of any pafi, including thhd parties. Further, no cause of action may be asserted against
Landlord later than the earlier of a) the applicable statute of limltations for notice of such
cause of action, or b) two (2) years following the date after the date on which the cause
of action shall have accrued. Landlord and Tenant expressly acknowledge that the
limitations contained in this Paragraph have been the subject of aclive and complete
negotiation between the parties and represent the parties' agreement.
ln addition to the foregoing, notwithstanding anything to the contrary in this Lease, the
provision of the ldaho Tort Claims Act, Title 6 ldaho Code Chapter 9 shall limit the
liability of governmental entities, as deflned therein, for damages, costs, and attorney
fees on account of bodily injury or personal injury and property damage, or other loss
arising out of its negligence or othenrvise wrongful acts or omission and those of its
employees acting within the course and scope of their employment or duties.
A.
22.
HEWL\53929\1366419.1 .10-
23.BUILDING COMPLIANCE. Tenant will be solely responsible for the compliance of the
Lease Premises with the Law pertaining to accessibility and accommodation for persons
with disabilities, including the removal of architectural and transportation bariers, if
ne@ssary, related to the use and occupancy of Tenant of the Lease Premises. ln
addition, Tenant acknowledges and agrees not to use the Lease Premises in violation of
any federal, state or local law, ordinance or regulation relating to health and safety.
24. HAZARDOUSMATERIALS.
A.Tenant shall not transport, use, store, maintain, generate, manufacture, handle,
dispose, release, or discharge any Hazardous Material (as hereinafter defined)
upon or about the Lease Premises or the Building, nor permit Tenant's
employees, agents, contractors and other occupants of the Lease Premises to
engage in such activities upon or about the Lease Premises or the Building.
However, the foregoing provisions shall not prohibit the transportation to and
fiom, and use, storage, maintenance, and handling within, the Lease Premises or
the Building of substances customarily used in similar buildings provided: (i) such
substances shall be used and maintained only in such quantifies as are
reasonably neoessary for Tenant's permitted use of the Lease Premises, shictly
in accordance with the any and all applicable laws, statutes, @des, ordinances,
rules or regulations (the "Lau/') and the manufacturers' instructions therefor; (ii)
such substances may be disposed of, released, or discharged at the Lease
Premises if permitted by and in compliance with the Law and shall be transported
to and from the Lease Premises in compliance with the Law and as Landlord
shall reasonably require, (iii) if the Landlord's trash removal contractor requires
that any such substances fiom the Lease Premises be disposed of separately
from ordinary trash, Tenant shall make arrangements at Tenant's expense for
such disposal directly with a qualilied and licensed disposal company at a laufrrl
disposal site (subject to reasonable scheduling and approval by Landlord), and
shall ensure that disposal occurs frequently enough to prevent unnecessary
storage or accumulation of such substances in the Lease Premises, and (iv) any
remaining such substances shall be completely, properly and lawfully removed
by Tenant from the Lease Premises and the Building upon expiration or earlier
termination of this Lease or Tenant's right to possession.
The term "Hazardous Materials" for purposes hereof shall mean any chemical,
substance, material, or waste, or oomponent thereof. whether in a solid, liquid or
gaseous state, which is now or hereafter listed, defined, or regulated as a
hazardous or toxic chemical, substiance, material, or waste, or component
thereof, by any federal, state, or local goveming or regulatory body having
jurisdiction, or which would trigger any employee or community 'right-to-knou/'
requirements adopted by any such body, or for which any such body has
adopted any requirements for the preparation or distribution of any material
safety data sheet, issued by the manufacturer therefor, written information
conceming the removal, transportation, and disposal of the same, and such other
information as the requestlng party may reasonably require or as may be
required by the Law, including, without limitation, (a) the Resource Conservation
and Recovery Act of 1976, 42 U.S.C. S 6901 et seq, as amended from time to
time, and regulations promulgated there under: (b) the Comprehensive
Environmental Response, Compensation and Liabillty Act of '1980, 42 U.S.C. S
9601 et seq, as amended from time to time, and regulations promulgated there
B
HEWL\53929\1366419.1 -11-
under; (c) Federal Water Pollution Control AcUClean Water Act, 33 U.S.C. S
1251 et seq.; (d) Clean Air Act, 42 U.S.C. S 7901 et seq.; (e) Toxic Substances
ControlAct, 15 U.S.C. S 2601 et seq.; (0 the Hazardous Materials Transportation
Act, 49 U.S.C. SS 1801 et seq.; arid in the regulations adopted and publications
promulgated pursuant to said laws; and in any revised or successor code thereto.
c.Tenant shall indemnify, defend (using counsel approved by Landlord) and hold
harmless Landlord, their respective directors, officets, employees and agents,
and any sucoessors to Landlord's interest in the Lease Premises, and to the
Building (including the Lease Premises) and the Property, and, their directors,
officers, employees and agents, ftom and against any and all liability (i) including
all foreseeable and all unforeseeable consequential damages, directly or
indirectly arising out of the use, generation or storage of Hazardous Materials by
Tenant in or about the Lease Premises and (ii) including, without limitation, the
cost of any required or necessary repair, cleanup, or detoxification and the
preparation of any closure or other required plans, to the full extent that such
action is attributable, directly or indirectly, to the presence or used, generation,
storage, release, or threatened release or spill of Hazardous Materials by any
penton in, on or around the Lease Premises or the Building or the Property.
Tenanfs obligations pursuant to the foregoing indemnity shall survive the
expiration or earlier termination of the Lease Term.
25. lntentlonallvDeleted.
26. SIGNAGE. All signage shall be subject to the prior written consent of Landlord. All
plans and specifications for signage shall be subject to the prior approval of Landlord.
Such plans and specifications shall be in sufficient detail as Landlord may request and in
conformance with any size, location, color or other requirements which Landlord or
applicable law may require.
27. LOCKS AND SECURITY SYSTEIUS. Tenant shall be permitted to install, or use in
substitution, combination, cipher or proximity locks on interior and/or exterior Lease
Premises doors, and to install electronic securi$ systems, including, but not limited to,
pass card door lock systems and camera surveillance systems, allsubiect to compliance
with Law. Tenant shall be responsible for the cost of any installation, maintenanoe or
removal of any such locks or systems. All such equipment and devices shall remain the
personal property of Tenant and shall be removed by Tenant at the expiration or earlier
termination of this Lease. Tenant shall repair and restore any damage caused by such
installation, maintenance and removal. Notwithstanding the foregoing, Landlord shallbe
provided with means of access to the Lease Premises, subiect, however, to the
provisions of Paragraph 17 hereof.
28. HOLDING OVER. !f Tenant shall holdover in the Lease Premises after the Expiration
Date of the initial Term or any renewal or extension term, such holding over shall be
under the same terms and conditions of this Leass except that the same shall constitute
a tenancy ftom month to month at a rental equal to one hundred fifty percent (150%) of
the Rent payable for the last month of the Term or applicable renewal or extension term.
It any such holding over shall cause Landlord to be in hotdover under the any superior
lease, Tenant shal! indemniff and hold Landlord harmless from any and all costs and
penalties, of any kind whatsoever, that may be incurred by Landlord arising out of or
related to Tenant's holding over. No holding over by Tenant or acceptance of any Rent
HEWL\53929\1366419.1 -12-
30.
or other amounts by Landlord shall constitute an acceptance by Landlord of such holding
over.
29. TNTENTIONALLY DELETED.
SUBORDINATION AND ESTOPPEL. This Lease may be made subject and
subordinate to any mortgage, deed of trust ground lease or other instrument
encumbering, now or hereafter placed on the Building or the property where the Building
is located. Tenant shall execute any reasonable, mutually agreed subordination non-
disturbance and attornment agreement reflecting such understanding wilhin 10 days of
receipt of such document from the requesting party. Within 10 days of receipt of written
request, Tenant shall execute and deliver to Landlord an estoppel certificate sefting forth
such matters relating to this Lease as may reasonably be requested by Landlord.
31.FORCE irAlEURE. Neither Landlord nor Tenant shall be deemed to be in breach of
this Lease by reason of failure to perform any of its obligations hereunder (except
Tenanfs obligation to be any and all rent or any other amount due and payable under
this Lease) if, while and to the extent that such failure is due to acts of God, acts of the
public enemy, acts of govemmental authority, or any other circumstances for which it is
not responsible and which are not within its control; provided that this provision shall not
apply to failures by Tenant to pay renta! fees or other charges or to make any other
money payments required by this Lease or to Landlord in making reimbursements to
Tenant or refunding or paying any other money payments to Tenant as required by this
Lease.
32. lntentionallvDeleted.
33. NOTICES. All notices and demands which may or are to be required or permitted to be
given by either party to the other hereunder shall be in writing and shall be deemed
given when actually received, or if refused, when delivery was attempted. All notices and
demands by Landlord to Tenant shall be sent by (a) Federal Express or some other
bonded, national, professlona! ovemlght courier; (b) United States Mall, certified or
registered mail, retum receipt requested, postpaid; or (c) sent by telecommunication
("Fax") during norma! business hours in which case it shall be deemed delivered on the
day sent, provided an original is received by the addressee after being sent by a
nationally recognized ovemight courier within 1 business day of the Fax, addressed to
Tenant at the address indicated in Paragraph 1 above or to such other person or place
as Tenant may from time to time designate in a notice to Landlord. All notices and
demands by Tenant to Landlord shall be sent in the same manner as set forth above to
the address set forth in Paragraph 1 above or to such other percon or place as Landlord
may from time to time designate in a notice to Tenant.
34.LEGAL INTERPRETATION. This Lease shall be govemed by, and construed in
accordance with, the laws of the state where the Lease Premises is located. lf any
clause or provision of this Lease is illegal, invalid or unenforceable under present 6r
future laws, then it is the intention of the partes that the remainder of this Lease shall not
be affected, and that, in lieu of each affected clause or provision, there be added a
clause or provision as similar as possible to the affected clause or provision which is
legal, valid and enforceable. Words of any gender shall be construed to include any
other gender, and words in the singular number shall be construed to include the plural,
unless the context otherwise requires. The headings of the paragraphs have been
HEWL!53929\1 36641 9.'l -13-
inserted for convenience only and are not to be considered in any way in the
construction or interpretation of this Lease. Except as othenrise herein expressly
provided, the terms of this Lease shall apply to, inure to the benefit of, and be binding
upon, the parties and their respective assigns, suooessors and legal representatives.
Any suit or venue for any cause of action arising from or relating to this Lease shall be
brought in the county of the state where the Lease Premises is located.
35. AMENDMENTS. No agreement hereafter made shall be effec{ive to change or modfi
this Lease in whole or in part unless such agreement ls in writing and slgned by both
parties hereto, nor shall any custom, practice or oourse of dealing between the parties in
the administration of the terms hereof be construed to waive or lessen the right of any
party to insist upon the perfonnance by the other party in strict accordance with the
terms of this Lease. The approval signature of the Leasing Manager, Division of Public
Works, Department of Administration, is a required signature on any amendment.
36. INTENTIONALLY DELETED.
ENTIRE AGREEMENT. lt is expressly agreed by Landlord and Tenant, as a material
consideration for the execution of this Lease, that there are and were no
representations, understandings, stipulations, agreements or promises pertaining thereto
not incorporated in writing herein.
BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the
benefit of Landlord and Tenant, respectively, and to their respective heirs, personal and
legal representatives, successorc and assigns, subiect to any contrary provisions herein.
AUTHORIZATION. .Landlord and Tenant are each authorized to enter into this Lease,
and at the request of either pafi shall fumish upon demand, a corporate resolution,
proof of due authorization of partners or other appropriate documentation reasonably
requested by either pafi evidencing such authorization.
COUNTERPARTS. This Lease and all amendrnents and supplements to it may be
executed in counterparts, and all counterparts together shall be construed as one
document.
37.
38.
39.
40.
41.PARTIES BOUND. The preparation and submission of a draft of this Lease by either
party to the other party shall not constitute an offer, nor shall either party be bound to
any terms of this Lease or the entirety of this Lease, until both parties have fully
executed a final document and an original signature document has been received by
both parties. Until such time as described in the previous sentence, either party is free
to terminate negotiations without any obligation to the other party.
OPTION TO EXTEND. Provided that Tenant is not in default under the Lease, and no
event or omission has occuned which with the passage of time or the giving of notice, or
both, could constitute a default under the Lease, and provided furthbr that Tenanfs
interest in the Lease has not been assigned or any portion of the Lease Premises
(except as expressly permitted under the Lease), Tenant shall have the right, at Tenant's
option, to extend the Lease for one (1) additional period of three (3) years (the "Renewal
Term"). The option to extend shall be exercised by Tenant giving written notice of the
HEWL\153929\1 36,641 9. I
42.
-14-
exercise to Landlord at least twelve (12) months prior to the expiration of the Term. The
Renewal Term shall be upon the same terms, covenants and conditions as set forth in
the Lease with respect to the Ierm, except that Rent payable during the RenewalTerm,
if exercised, will be as set forth on Exhibit "8" attached hereto, as of the date of
commenoement of the Renewal Term, subiect to an annual escalation of three percent
(3olo) as provided in Exhibit'B'.
43. TIME. Time shall be of the essence of this Lease.
IS|GNATURES ON NEXT PAGEI
HEWL\5$29\1366419.1 -1 5-
lN WTTNESS WHEREOF, this Lease is executed as ol the date first written above.
LANDLORD:IDAHO DEPARTMENT OF
TION
By /. AdJr-ra
TENANT:
Printed Name: Robert L. Geddes
Title: Director
FIRST TECHNOLOGY TEDBRAL CREDIT
UNION
By
Printed Name:_
TitIE:
HEWL\53929\1366419.1 16-
lN WTNESS WHEREOF, this Lease is executed as of the date first wrttten above.
LATIDLORD: IDAHO DEPARTMENT OF
ADMINISTRATION
By:
Printed Name
Title:
TENANT:FIRST CREDIT
By:
Printed Name
Title:
,., |:!':':i : " -
'','jjri ':'.
hunutPts tilgltrrr-
$psla;+ext U)*Yorn
1IP DK-2MTONS
HEWL\53929\1366419.1 -16-
".d
.: '..!
EXHIBITA
SITE PLAN At{D SQUARE FOOTAGE CHART
See Attached
HEWL\t3929\l366Cl9.l
FTFCU a
525 SF
North
Room
\r
ATM
LOBBY
ncluded)
Back Office Area
754 SF
1,400 sF
!P.oI
oo
ooEo!oo-ofa
o
@
134 SF
Storage
i
I
I
i
Original
4th
Amend
5th
Amend Total
wiring closet 4t
Teller area with ATM Lobby
1400Support Office area
Eack Office area 754
Storage Room L34
8.5% Add-on for Building Common 201
Conference Room 0 525
Storage Room 0 0 t29
Total 2s30 525 t29 3184
EXHIBIT B - SCHEDULE OF RENT
11211 Chlnden Boulevard. Boise ldaho: Bulldlno 2
2.659 souare feet
525 square feet
Term PSF Monthlv Rent
Effective Date
-3t31t2018
$1.82 $4,842.60;
4t112018-
3131t2019
$1.88 $4,987.88
One 3-Year
Lease Ootion
41112019-
3t31t2020
$1.93 $5,137.52
411t2020-
3t31t2021
$1.99 $5,291.64
4t1t2021-
3t31t2022
$2.0s $5,450.39
Tgrm PSF Monthlv Rent
Effective Date
-3t31t2018
$1.82 $956.14
4t1t2018-
3131t2019
$1.88 $984.82
One 3-Year
Lease Ootion
4t1t2019-
3131t2020
$1.93 $1,014.36
41112020-
3131t2021
$1.99 $1,044.80
4t1t2021-
313112022
$2.0s $1,076.'t4
HEWLU3929\t366419.t
ESTOPPEL CERTIFICATE FOR
}IEWLETT PACKARD ENTEFJRISE COMPAI.{Y
Decernber 18,2017
HP Inc,
1501 Page Mill Road
Palo Alto, CA 94304
Attn: Jenny McClister, Esq.
E Mail : j [e-mail]
Re: I1321 Chinden Boulevard, Boise, Idaho; Building 2
Ladies and Gentlemen:
Reference is made to that certain Lease, dated as of August l, 2015, between FIP
Inc. (formerly known as Hewlett-Packard Company) ("Landlord"), and Hewlett
Packard Enterprise Company (herein refened to "FIPE'or "Tenanf'). A copy of
the Lease, and all amendments and assignments thereto preceding the date hereof
are attached hereto as Exhibit A. At the request of Landlord in connection with
that certain Purchase and Sale Agteement and Joint Escrow Instructions dated
November 28,2A17 ("PSA") between Idaho State Building Authority ("ISBA") and
Landlord and Assignment and Assumption of Leases to be entered into between
Landlord, and the Department of Adminishation ("DOA"), the Tenant hereby
certifies to Landlord, ISBA, DOA, and each of their respective successors and
assigns as follows:
1, IIPE is the tenant under the Lease.
2. The Lease is in full force and effect and has not been amended,
modified, supplemented or superseded except as indicated in Exhibit A.
3. As of the execution date of this Estoppel Certificate, to the best of its
knowledge, there is no defense, offset, claim or counterclaim by or in favor of the
Tenant against Landlord under the Lease or against the obligations of the Tenant
under the Lease, except as may be indicated on Exhibit B hereto. The Tenant has
no renewal, extension or expansion option, no right of first offer or right of first
refusal and no other similar right to renew or extend the term of the Lease or expand
the property demised thereunder exoept as may be expressly set forth in the Lease.
HEwlu3e2e\r3sassz.z ESTOPPEL CERTIFICATE BUILDING 2
L
4. The Tenant is not aware of any default now existing of the Tenant or
of Landlord under the Lease, nor of any event which would constitute a default of
the Tenant or of Landlord under the Lease, except as may be indicated on Exhibit B
hereto.
5. The Tenant has.not received notice of a prior transfer, assignment,
hypothecation or pledge by Landlord of any of Landlord's interest in the Lease,
except as set forth in Exhibit A.
6. The monthly Base Rent due under the Lease is currently $33,561 and
the Tenant also pays $3,247 .00 for real estate taxes, $8,006,00 for Facilities
Management service charge, and $43,714.00 for utilities, and $722.84 for
incremental power per the Second Amendment and $1,312.00 per the License
Agreement, which equals $90,562.84 total. The foregoing monetary obligations
have been paid through December 31,2017.
7. The term of the Lease corrmenced on August l, 2015 and expires on
July 31, 2018, unless sooner terminated or unless extended pursuant to the provision
of the Lease. Landlord has performed all work required by the Lease for the
Tenant's initial occupancy of the premises demised under the Lease.
8. The Tenant has deposited the sum of $0 with Landtord as security for
the performance of its obligations as tenant under the Lease, and no portion of such
deposit has been applied by Landlord to any obligation under the Lease, except as
set forth on Exhibit C hereto.
9. There is no &ee or reduced rent period pending under the Lease, nor is
Tenant entitled to any Landlord's contribution, except as may be expressly set forth
in the Lease.
[Signatures on following page]
t
t
1
I'
;j
t
i
i'
HEwl\53ee\r3sassz.z ESTOPPEL CERTIFICATE BUILDING 2
The above certifications are made to Landlord, ISBA and DOA knowing that they
will each rely thereon in executing the PSA and Assignment and Assumption of
Leases, as applicable.
Very truly yours,
HEWLETT PACKARD ENTERPRISE COMPANY
By:
Name:
Title:
HEwr-\i3e2e\r 3scse2.z ESTOPPEL CERTIFICATE BUILDING 2 SIGNATURE PAGE
t
tE)GIIBIT A - LEASE
IATTACHEDI
HEWL\5392AI354592.2 ESTOPPEL CERTIFICATE BUILDING 2 EXHIBIT A
LEASE
This kase (this nkase') is entcred into betrrccn HEWLBTI-PACI(ARD COMPANY, a
Delaware corporation (nlandlord') and HEWLETT PACI(ARD ENTERPRISIE COMPANY, a
Delaware corporation CTcnant") as of August 1,2015.
l- hcmises. Landlord hercby lcases to Tenant and Tenant hercby leasss fiom
Landlor{ upon the tcrms and conditions set forttr hereiq ccrlain premiscs consisting of
approximatoly 38,93a Bquarc feet (the 'Ptrmisos") withitr the building (the "Building") owned by
Landlord, commonly known as 11321 Chinden Boulevar,( Bois€,Idaho, as shown on Exhibit A
hercto. [n connection with its use of the Premises, subject to Landlord's rpasonablc nrles and
regulations, Tenarrt shall also have the aooexclusive right (a) to ingress and egress to the
Premisss over the sidewalks, drivewafs, strc€ts and highways adjoining the Prcrnises, to the
extent onrned or contolled by Landlord, and (b) to use the hallways, stainvays, rtstrooms,
kitchens, htak rooms and other areas of the Building that may be reasonably necessry for
Tenant's usc ofthe Premircs (the 'Sharcd Artas"), as shorm on Exhibit A hercto.
2. T@. The term of this Lease (the "Term") shall commence on August l, 2015
(the "Commencement Date") and end on July 31,201t (the'Expiration Date) unless this Lease
[s soongr temimted pursuEnt to itc t€rms,
3. Rcnt. Tenant shall pay Landlord as rent ("Base Renf) for thc Premises on a gross
basis for eash month during the Tcrrr, atr amowt equal to the rcnt for the Premise,s scheduled on
Exhibit B. at an annual escatation of three perc€.nt (370). Such amounts shall be due and payable
within thirty (30) days of delivery by Landlord of aa invoice therefor, without any deduction or
offsot and without prior notioe or dernand, at the ad&ess indiaated by Landlord from timo to time.
Rcnt for aoy period which is for less than one (l) month of the Term shall be a pro rata portion
of the monthly installment. All amounts rcquired to be paid by Tenant under this Lease other
than Base Rent shall be deemed Additional Rent (which, collectively with Base Rent shall be
deemed "Rent"). Notruithstanding the provisions of the first hilo sentcnces of this.section, in the
event the Term extends or is oxtended by agreement of the partios bcyond the Bxpiration Date
unlass the parties othernise expressly agree in writing, Base Rent shall be an amow$ equal to 95olo
of ttrc fair market value at lhe time of renewal with annual escalation of three percent (370). In
such even! the parties shall negotiale in good faith to determine tlrc fair mrket value of the
hemises. In the event the parties arc unable to agre€ upon the fair market value prior to the
Expiration Date, the fair market rent shall be determined by three appraisers selected and
governed by the rules of the Amsrioan Arbiration Association.
4. Use: Csmplience $tilb Laryg: RulFs, Tenant may use the hemiscs only for the
uses made of the Premises by Tenant irnmcdiately prior to the Commencement Date. Tenant
shall promptly observe and comply with all laws B,ith rospeot to Tonant's use of the Premises;
providcd, howwcr, that Tenant chall not be required to comply with any laws requiring the
constnrstion of alteratioru in the Premises, unless due to Tenant's particular use of the Prcmises,
Tenant in its uso ard occupancy of lhe Prcmises shall not commit waste, nor overload the floors
or structur€, nor do or permit anything to be done in" about or with rcspect to tlre Promises wlrich
would (a) injue the Prernises or.@) vibratg shake, overload, or impair the effioient operation of
Laase - 80102
rr:
1
the Premises or the building systems locatd therein. Tenant shall comply with atl reasonable
rules and regulations promulgatod from time to time by Landlord.
5. Insurance, I-andlord shall obfiain and kecp itr futl forcc and effect, at [andlord's
sole cost, a pollsy of "all risk" property insurance insuring the Prcmiscs. Tenant shall obtain and
keep in full force and effect, at Tenant's sole cost, a commetcial genaal liability polioy of
instrance pmtccting Tenant against claims for bodily injury, personal injury and property
damage bascd uponb involving or arising out of Tenanfs use or occupancy of the hemises and
all areas appurtcnant thereto. Such insuaoce shall be on an occurrEnoe basis providing single
limit coverage in an amount not less than $5,000,000 per occrrrrenoe. Thc policy shall include
covorage for lia'bility assumed undq this Lease as an "insurtd oonEact" for the performance of
Tenant's indemnity obliptions ruder this Lease, and shall nanre Landlord as an additional
in$[Ed. In addition, Tenant shall obtain and keep in full force and effecf at Tenarrfs sole cost, a
policy of "all risk" property insurancc innting Tenant's perEonal property in thc Premiscs.
Tenant shall deliver certificates evidencing such insurmco to Landlord prior to th€
Connnencemcnt Date. Each ntch innrrance policy shall be in a form and from an insurance
company reasonably acceptablc to landlord"
6. Tores. Landlord shall pay beforc delirquency all rcal property taxes on the
Building. Tenant shall pay bcfore dclinqucncy all taxes imposed agaimt Tenanfs personal
prcpcrty.
7. Release and Waiy-cr of S.ubrosetiol, Notwithstanding anything to the contrary
helein, Landlord and Tenant hercby release eaoh othsr, and their rcspective ogmb, employeeq
subtcnants, and contractors, tom all liabitity for damage to any Foperty that is caused by or
rezults ftom a risk whioh is actually insurd against or whish would normally be coverpd by 'all
risk' property inswanc.c, without rcgard to thc negligence or willful misconduct of thc entity so
released.
8. Indemnity. Bach party shall defcnd, indemnify, protect and hold hamrless the
other fiom and against any and all liability, loss, claim, damage and cost (inchding rpasonabls
attorneys' fces) to thc extent due to the negligence or willful misconduct of the indemniSing
party or its agents, employces or conhactors or the indernni&ing partfs violation of the tsrms of
this [rase. This indemnification shall survive the termination of this L"ease.
9. Hgznrdous Materials. Termnt shall noL without the prior written consent of
Landlor4 use, storE. hansport or dispose of any Hazardous Material in or about thc hemiscs,
exc€pt for Hazardous Materials of a type and in amounts used by Tenant immediately prior to the
Commencement.Date, Tenant, at ib sole cost, shall comply with all laws relating to its use of
Hazardous Materials. If Hazardous lvlaterials store4 usd disposed oi emittcd, or released on or
about the Building by Tenant or its agents, employecs or contraptors result in contamination of
the Building or the water or soil thcrerrder, then Tenant shall promptly take any and all astion
necessary to clean up such contamination as required by law. Tenatrt shall indemni&, defen{
protect and hold Landlord and its ofrcers, directorq crnployecg successors and assigrrs harmless
from and against, all losses, damages, olaims, costs and liabilities, including reasonable
attorneys' fees and costs, arlsing out of Tonant's use, discharge, disposal, storage, transporr,
release or emission of Hazardors Materials on or about the Building drning the Terrn in violation
of applicablc law. "Hazardous lv{aterials" shall mean any material or substance that is now or
Loasc - 3olo2 2
hcreaffer designated by arry ap,plicable govcrnmental auttrority to be, or regulatod by any
applicable governmental authority as, radioactive, ioxic, ho"ardous or otherwise a danger to
health, reproductioa or the environment.
10. Repairs. Tenant accepts tre Premises in "ss isn condition. Tenant shsll maintaiu in
good onder and condition the Premises; provided, however, that Tcnant shall in no event be
rcquired to perform any repairs and maintemance (a) necossitated by the acls or omissions of
Landlord or its agents or employees, (b) to any of the Building systrms servicing thc Prernises or
any stuctural portions of the Premisea, or (c) urhich could be propcrly hoatod as a capital
cxpenditune under generally accepted accoutting principlos as in effect from time to time. Exccpt
for obligations which aro Tenant's responsibility pursuant to the precading sentcnce, L,wrdlord
shall maintain ttrc Building in good, working order.
I l. Alterations. No alterations or improvements $all be rnade to the Prsmises without
the prior writtsn conscnt of Landlo'rd which may be withheld in Landlod's sole discretion. All
work pcrfomred in connestion wittr alrcrations shall comply within all laws and applicable
requiremcnts of insuance caniers ard shall be pedormed in a good and workmanlike manner by
a licensed contractor approved by Landlord. Tenant shall keep the Building frec of any liens
arising out of work performed by or for Tenant. All alterations that cannot be rernoved without
material damage to the Premiscs shall bc dcsned part of the Prsmiscs upon installation. Unless
Lmdlord waives such rightatthetime itcoasc* to any alteration, L,andlord shall have the right
o require Tenant to rernove sny alterations it constructs in the Prcmises upon the ternrination of
this Lease.
12. Scrvloes. Landlord shall provide to Tenant certain seryices as stat€d in Exhibit C
at the lcvels provided imrnediately prior to the Commencement Date. Landlord shall no!
however, be liable for the intemrption of any such services or utilities for causes beyord
Landlorrd's reasonable conhol. tandlord may provide other sewices to Tenant pursuant to a
separate facility serviccs agrcement or tansition seryiccs agreement betwpcn ttre portics, To thc
extent requested by Landlord or Tenant, following the end of FY2016, ttre parties will perfonn
an annual roview of the services p,rovide( and the corrcsponding fees rplated tlrereto. If tlle
pafiies mutually agree in good faith that an addition to or redustion of seniccs is $,aranted or
the fees for any services requires adjustnent the parties will amend Bxhibits B and C
accordingly. The parties will not be requircd to perform a review morc than once in any twelve
month period.
13. Damage. If the Premises are damaged by aoy peril, I*ndlord shall restore the
Premises to substantially the same condition as existed immediaGly priorto such damagc, unless
this lrase is terminatcd by Landlord or Tenant as set forth below. Lsrdlord shall have the right
to terminate this L,ease, which option may be exercised by delivery to Tenant of a written notice
within thirty (30) days aftcr the date of such damage, in the wqrt that (a) the Prsruis€s ar€
damaged by a peril both not covered by the type of insurancc Landlord is requir€d to carry under
this Lease and not actually covered by valid and collectible insurance canied by Landlord to
such an extetrt thar the estimated cost to rBstore the Premisss excceds five percent (570) of the
then actual replacemcnt cost thcroof (and Temant does not agee to pey ths uninsurcd amount); or
(b) the darnage to thc hemiscs cannot rrasonably be rcstored within one hundred eighty (180)
days. If the Premises are damaged due to any peril, Tenant shsll be entitled to an abatemeut of dl
Rent to the extent of the intetference with Tenant's use of thb hemises oocasioned thereby. If the
Lease - BOl02 3
r-
damagc resutting therefrom cannot be (or is not in frc$ rcpaircd within one hundred eighty (180)
days following the occurrencc of such event, then Tenant also shall be entitlod to terminete this
l*ase by delivery of written notice of tcrmination to Landlord at any time prior to restoration of
tbe Prcmises.
14. Condemnation. If all or any part of the Premises is taken by tbe exercise of the
power of eminent domain or a voluntary hansfer in lieu thereof (a nCondemnationn), this Lease
shall terminate as to the part of the Premises taken. If the Prernisos cannot be rrstored within one
hundred eighty days (180) days of the Condemnation and made reasonably suitable for Tonant's
continued ocsupancy, then Tcnant shall hnve thc right to tcrminate this l*asc by delivcry of
written notice to Landlord within ddlty (30) days of such Condemnation. If this Lease is not
tenninatcd following a Condemnatio& Landlord shall makc all repoin and alterations tlrat are
reasonably rccessary to make the portion of the Premises not taken a complde architectural unit
reasonably suitablc for Tenant's oocupancy, and Rent shall be r€duced in proportion to the
reduction in utility to the Preinises following the Condemnation. Tenant shall be entitled to
rcceive auy Condemnation procccds specifically allocated for the unamortized vatue of
alterations instatld in the Premises at Terunfs exponse, Tenant's rclocation oosts and lost
goodwitl. The balance of the award shall be the property of Landlord.
t5. Assigment and Subletting. Tenant may not assigl this Lcasc, sublct the Prcmises
or p€miit ary use of the Premises try mothrr party (collectiwly, "'l'rarsfern), without thc pdor
nritten coflrcnt of Landlord, wttich coilrcnt may be wittrheld in L^ardlord's sole and absolute
discretion. An assignment, changp of contol, or trmsfer by operation of law or oth€ndsc in
connection with a m€rger, consolidation reorgonization, stock salc or other like transaction shall
also oonstitute a Transfer requiring Landlord's consent hereunder. landlord's conscnt to one
Transfer shall not constiful,e consent t'o a subsequcnt trarrsfer.
t 6. Dpfault Tenant shall be in default of its obligations under this kase if any of the
following events occur: (a) Tenant fails to pay any Rent when due, when such failure continues
for five (5) days after written notice tom l^srdlord to Tenant of a delinqtrercy; (b) Tenant fails
to perfomr any term, cov€nant or condition of this Lease (except ttrose requiring palurent of RenQ
and fails to cure such breach wi&in thirty (30) days after delivery of a written noticc specifying
the nature of the brcach; pmvided, howevor, that if more than thirty (30) days reasonably are
requir€d to remedy the failurc, thon Tonant shall not be in default if Tenant comm€nces the cure
within the thirty (30) day.period and thercaftor dilieentty endeavors to complete the cure; (s)
Tenant makes a gencral assignment of its assets for the bemefit of its creditors, including
attachmcnt of exooution on, or the appointnent of a custodian or receiver with respcct to a
substantial par{ of Tenant's prop€rty or any property essential to the mnduct of its btuiness; or (d)
a petition is filed by or against Tonant mdor the bankruptcy laws of the United Statcs or any
other debtors' relief law or statute, urless such pctition is disnrissed within sbry (60) days after
filing.
17. Rcmcdias. In the event of any default by Tenanl Landlord shall have the
following remedies, in addition to all other rights and rcmedies provided by any law or othsmrise
providcd in this Lease, to whioh Landlord may resort cumulatlvely or in the altsmative:
a. Landlord may, at Landlord's electiorL keep &is Lease in effect and enforce by an
action at law or in equity all of its rights and reinedies rmder this Lease, including
4
Ii::
Lea6e - soloz
(i) the right to recover thc Rcnt and other suns as they bccorne due by appropriate
legal actioU (it) the right to malce payments required of Tenant or perform
Tenant's obligations and be reimbursed by Tenant for the cogt thereot (iii) the
remedies of injunctive relief ard specific performance to compel Tcnant to
perfonn its obligations udcr this [,easc, and (iv) t]re right to rrcover the Rent as it
become.s due under this Lease.
b. Landlord may, at Landlord's eleclion, terminate this Lcasc by gtving Tenant
writlffr noticc ofterminatiorU in rryhich event this Lease shall terminate on the datp
set forth for termination in sush notice. fuiy such termination shall not relieve
Tenant from its obligntion to pay sums then due lamdlord or ftom any claim
against Tenant for damages or Rent previously accrued or thsr acsruing. In thc
event Landlord terminarcs this l.ease, Iancllold sball be entitled, af landlorrd's
election, to damages in an amount as perrritted under applicabla Law, including,
without limitation: (i) the woylh at the time of award of thc amormt by which thc
unpard Rcnt for tho balance of tha term after the time of award occeeds the
amount of such rental Loss that Tenant prcves eould be reasonably avoide{
computed by discounting such amormt at the discount rate of tlre Federal Reserve
Bank of San Francisco at the time of award plus one percent (1%); and (ii) any
other amount necessary to compensate Landlord for all defiiment proximately
causd by Tenant's failuro to perform Tenont's obligCtions under this Lease, or
wtrich in the ordinary oou$e of things would be likcly to result ttrercfrom.
18. Rieht tqCqr-e qcfg!ilJp. If Tenant fails to pay any sum of money to landlord, or
fails to perform any other act on its part to be pcrformed houmder, then Landlord may, but shall
not be obligated to, after passage of any applicablc notice and cue periods (except in the case of
an emergency, in which case no cure period is required), make such paymcnt or pcrfotm such act
All suoh stms paid, and all roasonable costs and expenses of performing any uroh act, shall be
deemed Additiooal Rent payable by Tenmt to Landlord upon demand.
19. SF,rtpndori-HoLdqvg. Prior !o expiration of ttris Lease, Tenant shall rcrnove all of
its personal property and shalt sunender the Premises to Landlord broom clean" in the same
condition as exists on the Commencement Date, reasonable wear and tear, alterations lhat
tandlord Egre€s in uniting may be surrendcred, casualty and condemnation, cxcepted. If
Premises 0r€ not so sur€nder€d, then Tenant shall be liable to l*ndlord for all costs incunrd by
Iandlord in retuming the Prymises to the required condition. In the event that Tenant doos not
surender the Premises upon the expiration or earlior terminstion of this lraso as required above,
Tcnant shall indemni$, defen{ protect and hold harmless Landtod from and against all loss,
cost, claim, danage and liability resulting from Tenanfs delay in surrendering ttre Premises and
pay t andlord holdover rent in an amount equal to orc hundred fifty percent (150%) of tbe Rent
payable under this kase &ring the last month of the Term.
20, Furniture anJ Equipment. tandlord hereby tblls, conveys and grants Tenant
possessiory'ownership of the movoable fumihrre, work stations, equipment, and systems (the
"Personal Propert/) locatod in tre Premircs for the sum of One Dollar (S1.00) plus other
consideration, oxccpt as othc,r:rrise provided on Exhibit D. Iandlord makes no represenbtions
with respect to lhe Personal Property which is provided "as is". Ixndlord shall have no
obligation to make any alBrations or rcpairs lheroto. Subject to the tenns urd oonditions of this
Lease - BOO2 6
i.
Lease, Tonant (i) shall rcmove all Persorul Property, and (ii) shall remove any additional
cquipment or funriture brougbt in the Premises by the Tenanf in each carc ftom the Prtmises on
or prior to the expiration of thc Tcrm or such earlier date that this Lcasc is tcrminated or the
Tenant's right to possession is terminated
21. Estoupel Cefificates. Within t€n (10) calendar days after receipl of written
dcmand by either party, the othor party shall sxecute and deliver to the roquosting parry an
estoppel cerdficate (a) ceniffing thct this Lease is rmnodified aod in fu[ foree and effect or, if
modified, the naturp of such modificuion; (b) acknowldsng, to the best of the responding
party's knowledge, that there 8re no mcurad defaults on the part of the requesting party; md (c)
ccrtifying suoh other information as is reasonably required by the requesting party.
22. S.ubordinetigg. This Lease is subject and subordinate to all present and futurc
ground leases, underlying leases, mortgagcs, doeds of trust or other encrunbrrances, and all
renewals, modifications ard rcplaccments thereof affccting any portion of the Building
(collectively, the 'Mortgages"). Notnrithstanding trs foregoing such subordination to futur€
Mortgages shall be conditioned upon Tenanth roceipt of a recognition agreement fnom the holder
of thc applicable Mortgage in form reosonably accepuble to Tenant.
23, Landlord's Right to Enter. Provided Landlord complies with dl of Tenanfs
reasonable security measurcs Landlord or its agents tnay, Upon reasonahle notiee (excopt in ttn
casc of emergency), enter the Premises at any reasonable time for the purpose of lnspeodng thc
same, suppllng uny service to b€ provided by landlord to Tenant making neccssary alterations
or repairs or for any other prrpose p€rmited under this [-ease.
24, Iato Charge. If Tenant fails to pay to Iandlord any amout due hcreunder within
five (5) &ys after the due date T€msnt shall pay Landlord upon demand a late charge equal to
five percent (57o) of thc delinqrrnt arnount accruing from thc due dalc. In addition, Tcuart shall
pay to I.,anrllord interest on all amounts due, at the rate of prime plus two percent (2%) or the
maximum rate allowed by lau whiolrever is less, ftom the due date ro and includiug the date of
the payment,
25, Notioes. fuiy notice given undor this l*ase shall be in writing and shall bc hand
delivere4 emailed (with delivery confirmation r€quelted and a hard c,opy to be delivened the
following day by ovemight mail) or mailcd (by ovemight courier), addressed as follows:
(a) if to Tenant: (D do MacMunnis, Inc., 1840 Oak Aveilre, Suite 300, Evanston, IL' 50201, Attention: Ilaam Ismail, and (ii) 3000 Hanover St., Palo Alto, California, Attr:
DirEctor of Real Estate; and
(b) if to Landlord: (D do MacMunnis, lnc., 1840 Oak Avenue, Suite 300, Evanston, IL
60201, Attention: Ikram Ismoil, and (ii) l50l Pege Mill Road, Palo Alto, Callforaia, Attn:
Director of Real Estate.
Any notice shall be deemed to have been given when hand delivered or emailcd or, if mailed,
oue (l) business days after mailing.
26. Effect of Conveyurce. As usod in this Lease, tho tenn ulandlord" means the
owner of the Building, or the holder of a leasehold interqgt in the Building pursuant to a suporior
leasc. In the event of any assignment or tansfer of the Premises by Landlord, Landlord shall be
Lcase - BOIO2 0
and hereby is entirely relieved of all covonants aod obligations of Landlord accnring afler the
d*e of suctr hansfer, and it shall be deemed and constuod that any fransferee has asgumed and
shall carry out all covenanb and obligations thereafter to be performed by Landlord herpundcr.
27, Parking. Tenant shall have tho right to uge throughout the Term one hundred
seventy-four (174) pa*ing spaces in the Buildingh parking lot.
28, Signage. Landlord may, in tandlord's sole and absoluto discretion, upon request
by Tenant, provide T€mant with directory signage and other signage (taking into consideration
Tenant's Pro Rata Share of the Building), in accordance with a desig, and at a location that is
mutually acc€ptable to Landlord and Tcnant and in accordance with applicablc laws,
29. Mechanic's Lieus. Te,tant will not permit any mechanic's or malerialmen's or
other liens to stand against thc Prcmises for any labor or matertal furnished Tenant in oonnec{ion
with work of any clumcter pcrformed on the Prcmises by or at the direction of Tenant. tandlord
will not permit any such liens for work or malerial funrished Landlord to strand agginst the
Premises. However, landlord and Tenant shall respectively have tho right to contest the validity
or amount of any suoh lien, but upon the final del€mination of zuch questions shall immediately
pay any adverce judgment reoded with dl proper costg and charges and shall havo the lien
rpleased at the oontestant'B own expcnsc. If Landlord or Tenant desirqs to contest my such lien,
thcn prior to comnrencing srrch contcst ir will furnish the othcr p:uty with a bond, ilrequcstcd by
the other, to secure the payment of zuch obligation.
30. Force Mqieure. Performanoe Delays, ln the eveut that either party her€to shaU be
dclayed or hindered in or prrvcntod fiom &e performance of any of its rrspeotive obllgations
under the Lcase, by rtasoa of (i) the desuuction, in whole or in part of any building or
imprcvernent forming a part of the Prcmisas, or (ii) snikes, or (iii) lockoutq or (iv) labor troubles,
or (v) war, uilrether declared or undeclared or (vi) riot, or (vii) Act of God, or (viii) embargoes,
or (ix) delays in uansportation" or (x) inabtlity to procure matcrials and/or labor, or (xi) failwe of
powcr, or (xii) rcsrnictive governmental laws or regulations, wbether valid or nol or (xiii)
insurrection, or (xiv) any other reason othcr than finansial, beyond the reasonable contnol ofsuch
party, and not the fault of the party so delayed or hindered in or prevented from performing work
or doing acts otherwise required under this I.paso, then pcrformance of such work or doing of
such ssts shall be oxoused for the period ofthe delay, and the period for the performance ofsuch
wort or doing sucb acts shall be fitended for a period equivalent to the period of such delay;
provlded, however, that the provisions of this Section shall mt operate so as to fiouso or release
Tenant fiom the prompt payment of rent or other sums required to b€ paid by Tenant to l*nd&ord
or to otlrer payces anyrvhere hereunder. Nothing herein shall relieve the party relying on such
delay cvent from exercising commercially reasonable efforts to mitigde the efrect of any such
delay.
31. Disprrte Rcsolution. All disputes wtrich uise under this kase shall be resolved in
accordance with the terms and provisions of the Separation Agrecment (as dcfined below).
32. Sepgf.ation A$l.tcmcnI. Refercose is made to that certain Master Sepration and
Disribution Agleemont intended to be entered into by srd between Hcwlctt-Paclund Company
and Hewlett Packard Enterprise Company with rcspco't to thc scparation of its asscts (thc
"Separation Agreemenf). As batween Landlord and Tcnant" nothing contained in this Lease
shall limit or alter the rights and obligations of the parties under the Separation Agrcoment.
Le,as€ - BOl02 7
I
33. Miscellaneous. This t ease shall in all respects be govemed by urd construed in
accordance with the laws of the state in which the Premises are located.If any teTm of $is [.€ase
is held to be invalid or une,nforceable by any court of compctent jurisdictioru then the rcmaindcr
of this Lease shatl remain in full force and effect to the fullest extent possible under the law, and
shall not be affected or impaired- This kase may not be amended except by the written
agreement of all parties haeto. Time is of the esscnc,e with respeot to the performance of wery
provision of this kase in which time of performanoe is a factor. This l*ase shall, subject to the
provisions regarding assignmcnt and subletting, apply to and bind the rcspective hoirs,
sucicessors, sxecutors, administators and assigns of Landlord and Tcnant The language in all
parts of this Lease shall in all casps be construed as a whole according to its fair meaning and
not suiotly for or against either tandlord or Tenant The oaptions used in this Lease are for
convenienoc only and shall not be considered in the constnrction or inErpretation of any
provision hereof. Whcn a party is requircd to do something by this Leasg it shall do so at its sole
sost and expcnse without right of reimbursem€nt from tbe other party unless specifio provision is
made therefor, If eithor paty brings any aotion or legal proceeding with respect to this Lease the
prcvailing party Ehall be entitled to recover rcasonablc attomeys'and expertsr fe€s aod court costs.
Whenever one party's conscnt or approval is required to be given as a condition to the othcr
paf,ty's right to take any action pusuant 0o this lrase, unless another standard is expressly sct
forth, such consent or approval strall not be umeasonably withheld, conditioned or dclayed. This
Lease muy be t-rccuted in counterparts. Any c"rccutcd copy ol'this Lease, incl:'ding facsimile
or .pdf copies, shall be de€md an original for all purpos€s. In the event that a Seivice Lcvel
Agreement between the partics is in effcct with respt to the Premises, the parties intend that all
elements of Base Rent papble herpurder shsll be paid to Landlord pursuant to the Sewice kvel
Agreement. Accordingly, insofar as Tenant has paid all elemcnts of Base Rent undcr thc Service
Level Agreement such payme,nt shall constitut€ payment of Base Rent hereunder.
[remaindcrof pag" intentionally left blank]
Loasc - BOl02 I
IN WITNESS WHEREOF, the parties have executed this l,ease as of the day first above written.
I"ANDI,ORD:
HEWLETT-PACKARD COMPANY si r/;.: /3L-* ft6
Name:
ct
(9 ir\
TENANT:
HEWLETT PACKARD BNTERPRISE
COMPANY
Name:
Title:^
c\ *T;L .- ( <rc-!i 1')'\e,,1 i.1
J
.;t
t6a!e - BOI@
THE PREMTSES, INCLUDING
Leass . BOl02
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IEXHIBIT B
GROSS MARKET RENT SCHEDULE
Leass - BOIO2
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EXI{rBIT C
LIST OF SERVICES
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Loas€ - 80102
ItqrLtP.ctld
Ghange Justlficatlon Form
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EXCLUDED FURNITURE AND EQUIPMENT
None.
Leaeo - BOl02
E)GCI'TION VERSION
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (this "Amendment") is entered into between HEWLET:I-
PACKARD COMPANY, a Delaware corporation ("Landlord') and HEWLETT PACKARD
ENTERPRISE COMPAhIY, a Delaware corporation ("Tenant') as of "4qa:f S*tL,2015. /e-
Capitalized terms used but not otherwi'se defined herein shall have the m"eaning given in the
kase (as defined herein).
A.
"Lease').
B,
provided.
RECITALS
Landlord and Tenant entered into that certain Lease dated August 1,2015 (the
Landlord end Tenant wish to make certain changes to the Lease as herein
NOW, THEREFORE, for good and valuable consideration, the roceipt and sufficiency of
which is hereby acknowledged, the parties heieto covenant and agree as follows:
l. Amendments to l=,eg_s!. Section 20 of the Lease is hereby amended by restating
such section in its entirety as follows:
"Fumrllrrp and Equipment. Upon expiration of this Lease, Tenant shall have the
right to purchase from landlord such moveable furniture, work stations, equipment and
systems (the "Personal Property') that is located in the Premises, except as othenrrise
provided on Exhibit D. Subjeot to the terms and conditions of this L,ease, Tenant (i) shall
remove all Personal Property, and (ii) shall remove any additional equipment or furniture
brought in the Premises by the Tenan! in eaoh case from the Premises on or prior to the
expiration of the Term or such earlier date that this l,ease is terminated or the Tenant's
right to possession is terminated. Tenant and Landlord acknowledge and agree that (i)
Tenant shall have the right to use the Personal Property during the Term in as-is
condition and at Tenant's own risk and (ii) Landlord shall not be responsible for the
condition, repair or replacement of such Personal Property."
2. Effective Date. This Amendment shall be effective as of August 1,2A$.
3. Miscellaneous. This Amendment shall in all respects be governed by and
construed in accordance with the laws of the state in which the Premises are located. If any term
of this Amendment is held to be invalid or unenforceable by any court of competent jurisdiction,
then the remainder of this Amendment shall remain in full force and effect to the fullest extent
possible under thc law, and shall not be aflected or impaired. This Amendment may not be
amended except by the written agreemont of all parties hcreto. This Amendment may be
executed in counterparts. Any executed copy of this Amendment, including facsimile or .pdf
copies, shall be deemed an original for all purposes.
3558657.v1\
[remainder of page intentionally lefi blankJ
1
IN WITNESS WHEREOP, the parties have executed this Amendment as of the day first above
written.
LANDI./ORD:
COMPANY
tt1,4[.-- iL
"J
\it\ir !\ cf\
/r l"^^.....{\..\-#l-TENAITTT:
HEWLET'| PACKARD ENTERPRISE
COMPANY
Name:
Title:
Leas€Arnerdmsnl- BO(}2
IN WITNESS WHEREOF, the parties have executed this Amendment as of the day first above
written.
I,ANDI,ORD:
HE WLETT-PAC KARD COMPAI.IY
Name:
TENANT:
HEWLETT PACKARD ENTERPRTSE
COMPANY
Name:
Title:
{ze/,{
L6a$ Am€rdm€fit - BOl04
t
{
I
t'
I
I
tIEXHIBITD
EXCLUDED FURNITURE AND EQUIPMENT
None.
SECO}TD AiNENDMENT TO LEASE
Thls Second Amendment to tease ('Amendmcnt'), dated as of August 1, 2015, as h 8nd
between HP lnc., which emtty ls formerly known as Hqdett Pactard crmpany, a Et€laware corporetion
('Landlord') snd Hewl6tt Packard Enterprbe Compeny, s Delaurare corpcratlon (Tenanf), for Premires
loc8tld in the Euildirg knorn as 11321chlnden Boulewrd, Bolse, ldaho,
Gpitallzed terms used ln thls Amendment but not otherwlsc deflned hercln thall have the meanlng
ghrcn ln the Leasc.
REOTATS
A. landhrd and T€nant entered lnto that certaln hase dated August ! 2015 (the 'lnitial lcsse"i
ard together with any or all prior amendments, the 'Lease"); and
B, Landlord aod Tenant anrended the lnltial Lease by r First Amtndrneot to [cas€ dated
2O 2015; and
C. Tenant has requested approvEl of lrndlotd to implement certaln tenant lmprwements ln
tfie Prcmlses and tandlord has approved those lmprorements subisct to certaln condftiom;
ard
D. tandbnd and Tenant deslre to amend the Lease at s€t forth hsrell.
Now, therefore, In onslderatlon of the foregoing recltals and other good and vohable
conslderason, the Gcclpt ofwhkh is hcreby acknowledged, landtord and Tenant hereby agrce as
folows;
1, Tenant has the opprora! of Lrndlord to make certain tensnt knprolrements to outfit exlstlng
ledscd space lnto a managed compute spece.
2. [andlord's apprwal of such tenant lmplo\rsments sr€ qlbf ect to thc condltions balow!
r. Tenant udll pay landord an iocteasc ln the amount of Addltlonal Rent ln thc amount of
$Zz.s4 per month to covcr estlmated lncaemeotrl power qost5.
b, Tenant to prurlde tandlord as-bulh drawings and spedficatlons wtthln 50 d.ys aft€r
subsrantlal compLtlon.
c, Tenant ls mspon$ble fo, op€ratlons, malntenance, lnd tepair ofthe tenant
lmpro/ements
d. Tenant is responslHe lor restoration to retum to original condidod at end of lease.
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3. Erdriut B of tlle Leare is deletcd and rephced rrlth the rerd-d EdrlHt B, whktr ls rttadrEd
hereto, rcf,ecdng the ne{, Rent Schedule lndudhrg thc hocesrd Mdhhnrl Rem smount
dectibad abor€,
4. Tenant's ,mpror€ment doEll ls atHred hemto as E:drlbit C - Tcnant Plan,
Except as erqressly amend,ed hercby, alt othcr terms and condltions of tha Lease shall renratn ln full
forceandeffoct. ShouldanyproddonofthisArnendmertco{rfldwhhrnyprwldonsoftheleose,tto
provlslon of thB Amendment shaB control,
Thls Amendment mry be ocartcd lh onc or more counterparts all ofrvhlch together shatl
constihrte one and the same areemert
This Anrendment sfiall not be6me e{fucthre or Hndl6 until ste€uted bry both prrths.
H wffNESS WHEREOF, landlord rnd Tcnant har/e cxecuted tib Amendment efuhe es of the date
first above writte[
TANDLORD:
HP INc.
Byl
Print€d Name:
D.tc:t,/7/.Zu/6
mr;W" d5.ffi/z l2,trJffiictru ,,ui,K
TENAITIT:
}IEIII,I,.EII.PACTARD E}TTERPRISE COMPA}IY
Printed t
Dste:'_USfS Beal Estrte Manater-
By:
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Exhlblt C -Tenant Plans
tandlord o(Erd th€ odstlnS 4" conduits lnto a locked tand lord owned demarcation ]ocatbn. Further,
Tenant to run two 15' conduits from thls new demark to the space dcnotcd as BU-IDF at location (6 ln
Buildlrg 2 Lower. Tenant wlll provde drawlrgs once the U- ldentllles the spae ln the Eulldlng.
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cunent seMcr entry from the street (clrcled ln red).
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L|CENSETAgREEMENT
, HP lnc. b Heuvleft Packard Enterpdse Gompany
This License provides for Services (the 'servicas") and use of Facllttlee (the 'Facillties') from
HP, !nc. C'HPlo orthe "Licensof) to Hewlett Packard Enterprlse Company fHPE" orthe
"Llcensee"). The Faciltties being located at 11321 Chlnden Blr/d, Boise , ldaho, commonly
knovyn as Boise building BOl02 {tha 'Premiees'), are described ln Sedion 1. Services and
Faclfities are granted to HPE ln conslderation of and subjec't to the fotlorving terme and
conditlons.
Llceneeo has a llcense to use of the bllowlng Fadlites located at the Premisee and
described in Exhibit B:e. Locker room facilities of BOl02, 452 Square Feet
b. Mothe/s Room, 125 Square Fest
Liensee shall pay a monthly fee for use of the Fa<ilitie.s and for the SeMces provided
ae describod ln Exhibit A for accese and use oJ BOl02 Locker rooms. Such amounts
shall be due and payable withln thlrty (30) days of delivery by Liceneor of an invoice
therefore, vuithottt any deduction or ofhet and without prior notlce or demand, at the
address indicabd by Licensee from time to time. fur adminishative fee equal to five
peroent (5%) of such Ees will be lncluded in the monthly lnvoice.
Llcensee shall conflne its actlvitrles to the Facilifies located at the Premisee and shall not
use the facilities for anything othsr than their intended use.
This llense may be termlnated by either party with two (2) months priorwritten notloe.
Notnithstanding the foregoln(;, HPI can tenninale this agreement immediately if (f )
Licensee is in breach of any of its oHigatlons afterfailure to cure suclr breacfi within 15
days of wrttten notics by HPl, or (2) Uoensee ls in breach wr'th mallcious intent of any
materialterm.
5.Llcensee shall not commlt or permlt any act on the Prcmises, or use the Premises in any
waythat:a, Obstruc'ts or interferes with the rlghts of other usere of the Premiees;b. Consfitutee the commiesion of umete (ie wasteful of propedy, oeMces, or harmful
to HPE'g lmagn or repuhtion) orthe msintenanoe of a nulsance on the Premlses;
or
c, Molates HPI's appllcable eecurity orsafety regulatlons and requlrements.
HPI acknowledges that HPE is selfiinzured and doee not have to provide certlflcEtes of
ineurance, ln the event HPE shallno longer be mff-insured, HPE ehall girrc notice to
HPI at the bllodng addess. HPI shall determlne llmits of lrsurance and HPE shall
provide certificates of insurance to HPl.
HP lnc.
c/o CBRE Advisory and Transaction SeMces
6055 Primacy Parloray Building ll, Suite 300
Mamphis, TN 38119
3.
4.
6.
And
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10.
HP lno.
Lega! Department, Global Fundlone, Mailcode PAL05: K54
1501 Page MlllRoad,
PaloAtto, CA,94304
Attn: Real Estate Attomey
HPI shall have no responsibilily or liability of any kind for loss or damaga to personal
property of Licensae or of memberc of Licenses's party as a result of HPI providing
Servlces or HPE'e use of the FacllitieE. Lloeneea hereby releas€s HPI and itE
employees and agenb from all such daims for loes or damage,
Each pdrty shalldefend, indemnfi, protec't, and hold harmless the otherfrom and
againet any and all losses, claims, llabllltles, damagcs, costs, and expenges, lncluding
but not limited to costs of ault and reasonable atomeys'fees, arlslng out of or in any uaay
related to the negligence or wtllful miscondud of the indemnrfying party or its agentrs,
employees or contmctore orthe indamnlfying partye vlolation of the terms of this
agreement. This indemniflcation shall survive the termination of this agrcemenl
HPI's sole obligation purcuant tro thle Llcense is to utilize reasonable efforts to provide
SeMcee and make the Facilities available to Liconsee. Under no circurnstancas,
however, shall HPI inorr any llabllity for its fallure or lnablli$, for any cause, to provlde
Services.ormake Facillties availablo to Llcensee. HPI may entertho Facilities at any
tlme to dgtermine whether Licensee is cornplying wtth thls Llcense orto perform any
other acts HPI de'ems neoessary, provided HPI complies wlth all of Liceneeos
reasonable aecurlty measuree.
This Licensa is nonasslgnabb, otherthan any petent, subaidiary, or affiliated company
Llcensee must provide a 30 day witten notice of any assignment. Any merger,
consolidation, or r€organlzation would not requlre notioe.
Thls License shall not create any ag€ncy, employment, or other relatlonshlp betvueen
HPI and Liensoo other than licensorand llcensee.
HPI has made no representatlons orwarranties of any klnd, whother express or lmplied,
as to the quallty of the Services and Facilitles or the suitabllity of tp Servlces and
Facilities for Licensee's activities. Licensee acoeptrs the SeMces and Facilities as they
arc currently provided and exist and agrees to use the Premlses and Campus at tts sole
risk, "aB lsn, and subject to all defects (wheher patent or latent). HPE will comply wlth
HPI's rules regarding the use and operation of the Facilitles, which rules may be
amended in HPI's sole dbcretlon. Servlcee provided to andlor Facilities aocess, or use,
by Llcenaee may be modified at HPI's sole dlscretion. HPlshallgive Licensee 60 days
advance notlce prlorto any modiflcatlon of SeMms provided or Facilltiee acoeas or use.
Upon 60 days priorwritten notice to HPl, the Lioensee may ceaee or modlff the lewl of
any SoMce recelved. Sudr ceeeation or modilicatlon willresult in a pro rata adjustment
to the fees pald ae descrlbed ln ExhibitA.
This Lioenea contains tha entke agrcement of the parties, and may not be amended
excopt by a wdtten insbument signod by both HPI and Licensee.
This License Agreement shall only complimant and may not suporsede and entircly
replace any previous agreaments beturcen HPI and HPE. Thle agreement ls efbctlve
April 1,2017.
11.
12.
13.
14.
15.
16.
Acceoted and aoreed tottio ]9fl a"v ot /(kt(h-,2017
HP lno.
A Delaware corporetbn A
Name: TJ
Its: AMS RealEstate Manager
Company
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Name: Bob Brackin
fta./f)*Vi /,c{7ftr1/d.
i77,4797,i' I 77*, >*rncy6
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FJfiibit A
LJcense AgwnnnC- Monthly Fee Sclredutre of Locker Room Accesg and Usage:
UCE TSEAGREEIAENT COS7S (HP, BIIJ,STO HPE-Eolca- BOl02)
Ratec Efrecfive UllNlT through 0713112018
1
Seruices Monthly Charge
BOl02 Locker Rooms Base Gost $497.00
IFM Services $11s.N
Utilities 8f/,8.(n
Real Estate Tax w.00
Monthty total $1,il2(n
Exhibft B to Llcense Agrcenrent- Defined Space andAccess
HPE Use of HPI BOl02 Locker Room and MotheCs Room Facilities
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Aflr*ment
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EXHIBIT B _ OFFSETS/DES'AULTS
$0.00 - No offsets/defaults
7
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Hrwl\53ee\r3srss2: ESTOPPEL CERTIFICATE BUILDING 2 E)(HIBIT B
E)GIIBIT C _ SECURITY DEPOSIT,IF ANY
$0.00 - No security deposit
l&t5303 3.docx
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HE\ry1\53929\I35*SS2: ESTOPPEL CERTMICATE BUILDING 2 DCIIBIT C
ESTOPPEL CERTIFICATE
ENTER}RISE SERVICES LLC
t(2017
HP Inc.
1501 Page Mill Road
Palo Alto, CA 94304
Attn: Jenny McClister, Esq.
E Mail : [e-mail]
Ladies and Gentlemen:
Reference is made to that certain Lease, dated as of August l, 2015, between HP
Inc., (fonnerly known as Hewlett-Packard Company) ('Landlord"), and the
undersigned tenant (herein referred to as the "Lease"). A copy of the Lease, and all
amendments and assignments thereto preceding the date hereof are aftached hereto
as Erhibit A. At the request of Landlord, in connection with that certain Purchase
and Sale Agreement and Joint Escrow Instructions dated November 28,20t7
C'PSA") between Idaho State Building Authority ('ISBA") and Landlord, and
Assignment and Assumption of Leases to be entered into between Landlord, and the
Deparbnent of Adminishation (.'DOA'), the undersigned as of the date hereof,
hereby certifies to Landlord,ISBA, DOA, and each oftheir respective successofir
and assigns as follows:
1. The undersigned is the tenant under the Lease.
2. The Lease is in full force and effect and has not been amended,
modified supplemented or superseded except as indicated in Exhibit A.
3. There is no defense, offset claim or counterclaim by or in favor ofthe
undersigned against Landlordunder the Lease or against the obligations of the
undersigned trnder the Lease, excep as may be indicated on Exhibit B hereto. The
undersigned has no renewal, extension or expansion optiorq no right of first offer or
right of fust refusal and no other similar right to renew or extend the term of the
Lease or expand the property demised theretmder except as may be e4pressly set
forth in the Lease.
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nEwl\53ee\r35osor.r ESTOPPEL CERTIFICATE BUILDING 4
4. The undersigned is not aware of any defaultnow existing of the
undersigned or of Landlord under the Lease, nor of any event which with notice
would constitute a default ofthe undersigned or of Landlordunderthe Lease,
except as may be indicated on Exhibit B hereto. Nonivittrstanding the foregoing,
such statement is to the actual knowledge of Tenant.
5. The undersigned has not received notice of a prior transfeg
assignment, hypothecation or pledge by Landlord of any of Landlord's interest in
the Lease, except as set forth in Exhibit A.
6. The monthly Base Renl due under the Lease is currently $145,198.00,
and the undersigned also pays $14,049.00 for real estate ta(es, $15,551.00 SL
service charge, and $36,128.00 for utilities, for a total of $210,926.00. The
undersigned has paid the foregoing monetary obligation through December 31,
2017.
7. The term of the Lease commenced onAugust 1, 2015 and expires on
July 31, 2020,unless sooner terminated pursuant to the provisions of the Lease.
Landlord has performed all work required by the Lease throughthe date hereoffor
the undersiped's initial occupancy of the premises demised under the Lease.
8. The undersigned has deposited the sum of $0 with Landlord as
security for the performance of its obligations as tenant under the Lease, and no
portion of such deposit has been applied by Landlord to any obligation under the
Lease except:NONE.
9. There is no free or reduced rent period pending under ttre Lease, nor is
Tenant entitledto any Landlord's contribution, except as may be expressly set forth
in the Lease.
[Signatures on following page]
rrgwlu3e2e\r3sosor.r ESTOPPEL CERTIFICATE BUILDING 4
The above certifications are made to Landlord, ISBA and DOA, current as of the
date hereof, knowing that they will eaoh rely thereon executing the PSA and
Assignment and Assumption of Leases, as applicable.
Very truly yours,
ENTERPRISE SERVICES LLC
By:
Name:
Title:
Kerry Calkins
u.s.Sites Real Estate Manager
HEwI,u3s2e\l3sosor.r ESTOPPEL CERTIFICATE BUILDING 4 SIGNATURE PAGE
EXHIBIT A
LEASE
[AITACHED]r'
HEWL\5399\135656'.1 ESTOPPEL CERTIFICATE BUILDING 4 DGIIBIT A
EXETBTT B - OFFSETS, DEFAULT
None.
HEwl\s3e2e\r3sosor.r ESTOPPEL CERTIFICATE BUILDING 4 DGIIBIT B
LEASE
This Lease (this okasc") is entiered into betrveen HEWLETT-PACKARD COMPANY, a
Delawarc corporation ("[andlord) and ]IEWLETT PACKARD ENTERPRISE COMPA]'IY, a
Delaware corporation (nTctuttf') as of Attgust 1, 2015.
l. Pregfsps. Landlord hereby leases to Tenanf and Tenant hcroby leases fi,om
tandlonC, upon the terms and cottditions sct forth herein, certain premises corsisting of
approximately 168,446 squarc feet (the "Plemiseg") within the building (the "Building*) owncd
by Landlord, commonly known as I1341 Chindon Boulevard Boise, Idatro 83714, os shown on
Exhibit A hereto. In connection with its use of the Premises, subject to Landlord's reasonable
rules and regulations, Tenant shEll also have the nonexclusive right (a) to ingess and egress to
the Premises over the sidcwalks, driveways, sbrots and highways adjoining the he,rrises, to the
ext€nt owned or controlled by Landlord' and (b) to use the hallways, stairways, reshooms,
kitchens, break rooms and other areas of the Buildiag that may be reasorrably nccessary for
Tenant's use ofthe Prtmises (the 'Shared Areasn), as shown on Exhibit 4 hercto.
2. Tenn. The term of this Lcase (the uTermu) shall commence on August l,2015
(the "Commomcement Datellgr.d end on July 31, 2020 (the "Expiration Daie') mless this Leasc
is sooner terminatcd pursuant to its terms.
3. Bent. Tenont shall pay LEndl,ord as rent ("Base Rent') for the Prcmises on a gross
basis for each month dudng the Term, an amount equal to the rent for the Premises scheduled on
Exhibit B, at an annual escalation of three p€rcent (3%). Such arnounE shall be duc and payable
within thirty (30) days of delivery by Landlord of an invoice therefor, without any doduction or
offset and withont prior notice or demand, at the address indicated by l"andlord from timc to time.
Rerrt for any pcriod rrytioh is for Isss than one (l) month of the Term shall be a pro rala portion
of the monthly installment. All amorurts required to be paid by Tenant under this Lcase other
than Base Rent shall be deemed Additional Rent (rvtich" collectively with Base Rent, shall be
deemed nRcntu). Notwithstanding the provisions of ttre first two senteuces of this seotion, in the
event the Term extends or is extendod by agreement of the parti$ beyond the Expiration Dato
unless the parties othenpise exprcssly agree in writing, Base Rent shall be ar amount equal to 957o
of the fair market value at the time of rpnewal with arnual escalation of three percent (37o). In
such evsnt, the parties sball negotiate in good faith to detcrminc the fair mrket value of the
Premises. In the event the parties are unable to agree upon tlre fair market value prior to &o
Expirarion Datg dre fair market rent shall be determined by three appraisers seledcd and
govemed by the rules of the American Arbiration Association.
4, Use: Compliance With LAnvsl Rules. Tenant may us6 the Premises only for the
uses made of the Prenoises by Tenant immediately prior to the Commencement Date. Tenant
shall promptly observe and comply with all laws with respect to Tenant's use of the Premises;
provided, however, that Tenant shall not bc required to comply with any laws rcquiring the
oonslruotion of altsrations in thc Premises, unless due to Tenanfs particular us of the Premise,s.
Tenant in its use and occupancy of the Fremises shall trot commit w[ste, nor overload the floors
or stucture, nor do or permit anything to bc done iru about or with respect to the Prpmises which
would (a) injure the Prernises or (b) vibrate, shake, overload, or impair the effiolent operation of
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Leaso - BOl04
the Prernises or the building systems located therein. Tenant shalt comply with all reasonable
rules and regulations promulgated from time to time by Landlord.
5. Iupurance. Ixndlord shall obtain and keep in full foroe and effecl at landlord's
sole cosl, a policy of 'atl risk" property insurance insuring the Prsnises, Tenarrt shall obtain and
keep in ftrll force and offect, at Tenant's sole cost a commeroial general liability policy of
insurance protecting Tenant against claims for bodity injury, personal injury and property
damage bascd upon, involving or mising out of Ten*nfs use or occupancy of the Premises and
all areas appurtenant thereto. Such insurance shall be on an occuf,r€nce basis providing single
limit covcrage in an amount not less than $5,000,000 por oocur€nce. the pohcy shall include
coverage for liability assumed rurdcr this l.case as an "insured contact" for the performance of
Tenant's indemnity obligations under this l*aee, and shall name l^andlord as an additional
insured. In additioq Tenant shall obitain and kecp in full force and effect, at Tenant's sole cost, a
policy of "all riskd property insurance insuring Tenant's personal property in the Premises.
Terunt shall deliver certificates evidencing such inEurance to Landlord prior to the
Commencement Date. Each such insuranoe policy shall be in a form and from an insurance
company reasonably acceptable to Landlord.
6. Tmpq. Landlord shall pay bofore delinquency all real prop€ily ta,res on tho
Building. Tenant shall pay beforc delinquenoy all taxes imposed against Tenarrt's personal
pioperty.
7. Release and Waiver of S-ubJogalion. Notwithstanding anything to the contrary
herein, Landlord and Tensnt hereby release each other, and their respective agents, employees,
subtenants, and consactors, from all liability for damage to any property that is causod by or
rcsults from a risk which is actually insured qgainst or whiqh would normally bc covered by "all
risk" property insurance, without regard to the negligence or willfirl misconduct of the entity so
released.
8. I+demniB. Each party shall defen4 indemniff, protect and hold harmless the
other fiom and against any and all liability, loss, claim, damage and cost (including reasonable
attorneys' fees) to the exlcnt due o the ncgligence or willftl missonduct of the indonrniSing
party or its ageirts, employees or oonhactors or the indemnirying party's violation of the terms of
thir [rase. This indemnification shall survive the termination of this Lease.
9. Hg?flEdpus Marsridg. Tenant shall not without the prior written consent of
Landlord, use, store, transport or dispose of any Hazardous Materisl in or about the Premises,
except for Hazrdoru Materials of a type and in amounts used by Tenant immediately prior to the
Commelrcement Date. Tenant, at its sole cost stralt comply with all laws reladng to its use of
Hazardous Materialg. If Hszadous Materials stors4 used, disposcd of, emitted, or releascd on or
about the Building by Tenant or its agents, employees or contractors resttlt in contamination of
the Building or the u,ater or soil thereunder, then Tenant shall promptly take any and all action
ncccssary to clean up such contamination as required by law. Tenant shall indemn$, defend,
pmtect and hold Landlord and its offrcers, directors, employees, suooc.ssors and assigns hamrlcss
from and against, all losses, darnages, claims, costs and llqbilitie,s, inoluding reasonable
attomeysr fees and costs, arising out of Tenanth use, discharge, disposal, storage, transport,
release or emission of Hazadous Materials on or about the Building during tho Term in violation
of applicable law, "Hazardous Msterislsn shall mean any material or substance that is now or
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Leas€ - BOl04
h€reaftor designatcd by any ap,plicable govemmental authority to be, or regulated by any
4plicable govemmental aufrority as, radioactive, loxic, hazardous or otherwise a danger to
hcalttr, reproduotion or thc envinrnment.
I0. Repairs. Tenant accopts tho Premises in "as isn condition. Tpnant shall maintain in
good ordct and condition the Premisesl provided, bowever, that Tenant shall in no event be
required to pcrfomr any repairs and maintenance (a) necessitated by the acts or omirsions of
Landlorrd or its agents or cmployees, (b) to any of the Buildlng systsms sorvicing the Premises or
sny stnrotuxat portions of tho Premises, or (c) wttich could be prop€rly tr€ated as a capiul
expenditure under gonerally acceptcd accounting principles as in effect from time to time. Except
for obligations whioh are Tenanfs rcsponsibility pursuant to the preceding scntence, [anrdlord
shall maintain the Building in good, working order.
I l. Alterations. No altsrations or improrreme,nts shall be made to the Premises without
the prior witten consent of Landlord which may be withheld in landlord's sole disoretion All
work performed in connection with al&rations shall comply within all taws and applicable
requirements of insurance carriers and shall be performed in a good and workmanlike mamer by
a lioensed oontactor approved by Laadlord. Teaant shall keep the Building free of any liens
arising out of work perforrned by or for Tenant. AII alterarions that cannot be rpmoved without
material damage to &e Premises shall bc dcemed part of the hemises upon iru*allation. Unless
L'an-iIIorE waives suctr riglrt at the tirie it consents to any altwdtiort, lanffordshull lrave ttre right
to require Tenant to rEmove any altcrations it constucts in the Prcmises upon the tennination of
this Lcase,
12. SSrvims. tandlord shall provide to Tcnant certain services as stated in Exhibit C
at the lcvels provided immediately prior to the Commencement Daie. Lerrdlord shall not,
however, be liable for the intemrption of any such sorvices or utilities for causes beyond
Larxllord's reasonablc control. t andlord may provide other servic€s to Tenant pursuant 0o a
separate facility servims agrecment or transition s€rvic€s agrc€nent baween the parties. To the
e$ent requested by Landlord or Tcnant following the end of FY2016, the parties will perfomr
an urnual review of the services provided, and fhe corresponding fees rclated thereto. [f the
parties muhrally agrec in good faith that an addition to or reduction of services is warrantcd or
ths fees for any services requires adjustnent, thc parties will amend E&ibits B and C
accordingly. The parties will not be requircd to psrform a rcview more than once in any tnrclve
month period.
13. Damage. If the Premises at€ darnaged by any peril, Landlord shall restorc the
Premisqs to substantially thc same condition as existed immediately prior to such damage, unless
this Lease is terminated by ["andlord or Tenant as set forth below. Iarrdlord shall have the right
to terminate this Lease, which option may be exerpised by delivery m Tenarrt of a written notice
within lhirty (30) days after the dats of suc,h damage in the evont that (a) the Premises arp
damoged by a peril both not covered by the t1rye of insrrance landlord ls required to oarry under
this kase and not actually covered by valid and collectible insurance canied by Landlord to
sush an extent that the estimated cost to restore the Premises exceods five percent (5%) of the
then actual replacemcnt cost thereof (and Tenant does not agree to pay the uninsuled amount); or
(b) tho damage to the Premises cannot reasonably be restored within one hrmdred eighty (180)
days. If tho Premises are damaged due to any peril, Tenant shall bo entitled to an abatement of all
Rent to the extent of the interferem€ with Tcnant's use of thc Prcmlses occasioned thorcby. If the
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L6ase - BOIO4
damagc resutting there&om cannot be (or is not in fact) rcpaired within one hundred eighty (180)
days following the occulrence of such evont, then Tenant also shall be entitled to terminate this
I*ase b,y delirrcry of wrinen notice of tennination to Landlord at any timc prior to testoration of
the Premises.
14. Condpmnation. If all or any prt of the Premises is taken by the orercise of the
pow6r of eminemt domain or a volunhry transfer in lieu trereof (a "Condemnation"), this lrase
shall terminate as to the part of thc Premises taken. If the Premises cannot be restorcd withln one
hundrpd eighty days (t 80) days of the Condemnation gnd made reasonably suitable for Tenant's
continued occupancy, then Tenaat shall have the right to terminate this Lease by delivery of
written notice to Landlord withitr thirty (30) days of suctr Condernnation. If this Lease is not
terminated following a Condemnatiog tandlord shall make all repairs and alterations that are
reasonably neoossary to make the portion of the Premis€s not taken a complete architeshrat unit
reasonably suitable for Tcnant's occupascy, and Rent shall be reduced in proportion to the
rcduction in utility to the Premises following the Condemnatiou. Tenant shall be entitled to
receive any Condemnation proceeds specifically allocafed for the unamortized value of
albrations installed in the Premises at Tenant's expense, Te,nant's relocation costs and lost
goodwill. The balancc of the award shall be the properry of Landlord.
15. Assignm$l and Subl€fiing. Tenant may not assi$ this Lease, sublet the Prernises
of pcrmil any use of the Premiiieii'by-anothei patty (collectively, '.Transfer), withotrl dte prior
writ3cn consent of Landlord, which consent may be withlreld in l,andlord's sole and ahsolute
discretion, An assignment, change of control, or transfer by opemrion of law or otherwise in
connection with a m€rgor, consolidatiorS reorganization, stoek sale or othcr like batrsaction shall
also constitute a Transfsr requiring Landlord's consent hereunder. Landlord's consont to one
Transfer shall not constitute consent to a subsequent bansfer.
16. Default. Tenant shall be in defautt of its obligations under this Lease if any of &e
following events ooflr: (a) Tenant fails to pay any Rent when due, ufren such failurp continues
for five (5) days after written notice from Landlord to Tenant of a dolinquenoy; (b) Tenant fails
to parform any terr5 covenant or condition of 0ris Leasc (except those requiring payment of Ren$
and fails to crro sush breach within thirty (30) days after delivery of o written notice speci$ing
the natrrrc of the breaoh; provided, however, that if mote than thirty (30) days rcasonably are
rcquircd to remedy the failure, then Tenant shall not be in dcfault if Tenatrt oommerces the cue
wittrin the thirty (30) day period and theroafter diligently endeavors to complcte thc oure; (c)
Tenant makcs a general assignment of its assets for the benefit of its creditors, including
attachment o[, execution on, or the aprpoinhcnt of a custodian or rccciver with rcspect to a
substantial part of Tenant's property or aoy Fopefty essential to the conduct of its business; or (d)
a petition is filed by or against Tenant urder the bankruptcy laus of the United States or any
other debtors' relief law or stahrto, unless such petition is dismissod wittrin sixty (60) days after
filing.
17. Remedies. In the event of any default by Tenanl, Landlord shall have the
following rpmedies, in addition to all other rights and remedies pmvided by *y law or otherwise
provided in this L€ase, to which Landlord may resort cumulatively or in the alteinative:
& Landlord may, at Landlord's elcction, keep this Lease in effect and onforce by an
aotion at law or in equity all of its rights anO remcdies under this Lease, inoluding
1
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Lease - Bol{r4
(i) the right to recover the Rent and otlrer sums es they become due by appropriate
legal action, (ii) the rigltt to make payments required of Tenant or perform
Tenant's obligations and bs reimbursed by Tenant for the cost thertof, (iii) the
remedies of injunctive rcliof and specifio perfomranco to compel Tensrt to
perform its obligations rmder this Lcase, and (iv) the right to rccover the Rent as it
bccomcs due undcrthis Leasc.
b. landlord may, at Landlord's electior; terminate this L€ase by giving Tenant
writtcn notice of tetmination, in which event this t-ease shall tcrminate on the date
set forth for termination in such notice. Any such terrnination shall not relieve
Tenant from its obligation to pay sums then duc tandlord or fiom any claim
against Tenant for dmrages or Rent previously accrued or then acc.ruing. In the
event Landlord terminatcs this [,ease, Landlord shall be entitled, at tandlord's
election, to damsges in an amourt as permitted under applicable Law, inoluding,
without limitation: (D tlrc worth at the time of award of the amounl by whioh ttre
unpaid Rent for the balance of the Erm affer the time of award orceeds the
amoult of such rcntal lose that Tenant proves oould be reasonably avoided,
computed by discounting such amount at the discomt ratc of thc Fdcral Reserve
Bank of San Francisco at ffre time of award plus one peruent (l%); and (ii) sny
othef amo-uot-ntaedsary tia aomBenqStg Landlord for all detimp_Ut.p-fo;imetely
causod by Tenant's failuro to porfomr Tsnant's obligations undor this Lease, or
which in the otdinary aourse of thiugs would be likely to result thereftom.
18. fught to Cure DofaunE. If Teuant lhils to pay any sum of money to landlonl, or
fails to perform any other act on its part to be performed hereurdor, then Landlord may, but shall
not be obligeted to, after passage ofany applicable notice and cure pcriods (except in tho casc of
an emergency, in which case no cure period is rcquired), rnake such payrnent or porform such act.
Al[ such sums paid, and all reasonablo costs and expensos of porforming any such act, rhall be
desmed Additional Rent payable by Tcnant to [andlord upon demand.
19. Sunpnder: Hgld0t ef, Prior to expiration of this Leate, Tenant shall rcmove all of
its personal property and shalt surrender thc hemises to Landlord broom clean, in the same
condition as exists on the Commemcement Date. reasonabls wear and tear, alterations that
Landlord agrees in writing may be surendered, casualty and condemnation, excepted. If
Premises arc not $ surrendsred, then Tenant shall be liable to Landlord for all costs incurred by
Landlord in returning thc Premlses to the required aondition. In thc event that Tenant does not
sunender the Premlses upon thc cxpiration or earlier termination of this [*asc as required above,
Tenant shall indemniff, defend, protpct and hold harmlcss Imdlord ftom and agginst all loss,
cost, claim, damege and liability rosulting from Tenant's delay in zurrnndering the Premises and
pay Landlord holdover rcnt in an amount equal to one hudred fifty percent (150p/6) of the Rent
payable under this Lease during the last montr of the Term.
20. T"u.Elgugand,Equipmont. Landlord hereby sells, conveys and grants Teunt
possession/ownership of the moveable firmihre, work stations, equipmont, and rysEms (the
"Psrsonal Propcrty'') located in the Frenrises for tho sum of One Dollar ($1,00) plus other
considerationr oxcept as otheru,ise provided on EXhlbit D. Landlord makes no representations
with respect to the Porsonal Propcrfy which is provided "as is". Landlord shall have no
obligation to malre any alterations or repairs thcreto. Subject b the brms and conditions of this
5
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Lsaso - BOIO4
kase, Tenant (i) shall rcmove all Personal Property, and (ii) shall remove any additional
equipment or furniturp brougftt in the Premises by the Tenant in each casc &om the Premiscs on
or prior to the expiration of the Term or such ear{ier date that thls Lease is terminated or the
Tenurt's right to possession is terminatcd.
21. ESoppl Qgttificates, Wittrin t€n (10) calerdar days after rcceipt of written
demand by either party, the othor party shall execute and deliver !o ths requesting party an
estoppel certificate (a) certifing that this t*ase is unmodilied and in fu[ force and effect or, if
modified, the nature of such modifioation; (b) aoknowledgrng, to the best of the responding
partyrs knowlodge, that ttrcre are no uncured defaults on ttc part of the requesting pqrty; and (c)
certiSing such other information as is rcasonably rcquircd by the requcsting party.
?2. S-ubordination. This kase is subject ard subordinate to all present and future
ground leases, underlying leases, mortgpges, decds of tnxt or other encumbrarces, md all
renewals, rnodifications and replacoments tbereof atreoting any portion of the Building
(collectively, the 'Mortgages"). Notwithstanding the foregoing, such subordination to fuUxe
Mortgages shall be conditioned ryon Tcnant's rcceipt of a reeagnition agreement ftom the holder
of the applicable Mortgage in form reasonably aoccptable to Tenanl
23. tandtg{Clq.Rieht to Bntcr. Provided Iandlord complies with all of Tenant's
rcasonable sectnity measurts,,Landlord.or.its agants moy, upon reasonable notice (cxcept in the
case of emergency), entcr the Pr,emises at any reasonable time for the purpoee of inspeoting 0re
same, zupplyrng any service to be provided by Landlord to Tenant making necessary altcratiou
or repairs or for any other puqnse permised under this I,case.
24, Late Charge, If Tenant fails to pay to Landlord any amount due hereunder within
five (5) days after the due date, Tenant shall pay Landlord upon demand a late charge equal to
flrve percent (5%) of the delinquont amount accruing from the duc date. In additioru Tenant shall
pay to Landlord interest on all amounts due, at lhe rato of prime plus two percent (270) or the
mildmum rate allowed by law, whichever is less, from thc due date to ald incltrding the date of
the paymenl
25. Notices. Any notice given tder this Lease shall be in writing and shall be hand
dellverc4 emailed (with delivery confirmation rcqucsted and a hard copy to be delivered the
following day by ovemight mail) or mailed (by overnight courier), addressed as follows:
(a) if to Tenant (r) c/o MacMunnis, Inc., 1840 Oah Avenue, Suib 300, Evanston, IL
60201, Attention: Ikram Isrnail, ad (it) 3000 Hanover St, Palo Alto, California, Ath:
Director of Real Estate; and
(b) if to landlord: (0 c/o lv{acMunnis, Inc., 1840 Oak Avenue, Suite 300, Evanston, IL
60201, Attsntion: Ikram Ismail, and (ii) 1501 Page Mill Road, Palo Alto, California, Atto:
Director of Real Estat€.
Any notice shall be deemed to have been given when hand delivered or emailed or, if mailed
one (l) business days after mailing.
26. Effect of Conveyange. As used in this L€ase, the tcrm nlandlordtr meaos the
owner of the Building, or the holder of a leasehold iaterest in the Buildlng pursuant to a superior
lesse. In the event of any assignment or tansfer of the Premises by Landlord, Landlord shall be
I
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Loass - BOl04
and hereby is entirely relievod of all covenants urd obligptions of Iandlord accnring afier the
date of such transfer, and it shall be desmed and conshilod that any ransferee has assumcd and
shall carry out all covcnants and obliga$ons thereafter to be pe,rforured by t andtord hercunder.
27. Parking. Tenant shall have the right to uae thmughout the Terrr seven hundred
fifty-eight (758) pa*ing spaces in thc Building's parking lot.
2E. Sigraee. Landlord may, in Landlord's sole aod absolute discretion, upon rcquest
by Tenant, provide Tenant with directo,ry signage and other slgrage (tsking into consideration
Tenant's Pro Rata Share of the Building), in accordance with a dasign and at a location that is
mutually acceptable to Landlord and Tenantand in acoordance with applicable laws.
29. Mjrhanic's Ltens, Tonant will not permit any mechanic's or materialmen's or
other liens to stand against tho Premises for any labor or rnaterial furnished Tenant in connectiou
with work of any oharacter performed on the Prcmises by or at the direction of Te,nunt. landlord
will not pennit any such liens for work or malerial fumished Landlord to Etand against the
Prcmises. However, t^andlord and Tenant shall rerpectively have &e right to aoutest the validity
or amount of any such lien, but upon the final determlnation of such questions shall immediately
pay any adverse judgmont renderpd with all proper costs and charges and shall have the lien
released at the contestant's o\trm oxpenss. Iflandlotd or Tenant desires to contcst any such lien,
tlren prior to commencing swh contest it will furnish the othcr partl'u.ith a bond, if requested by
the other, to secure the payment of zuch obligatlon.
30. Forq_e Majeure. Performancc Delays. In ttre event that either party herpto shau bo
delayed or hindercd in or prwerrted fiom the perfomrance of any of its respective obligations
under the teasc, by reamn of (i) the destuction, in whole or in part, of any building or
imprcvernent forming a part of the Premises, or (ii) strikes, or (iii) lockoutg or (iv) labor troublcs,
or (v) war, whether deolared or undeclared, or (vi) riot or (vi) Act of God or (viii) embargoes,
or (ix) delays in hansportadon, or (x) inability to procure materials and/or labor, or (xi) failure of
power, or (xii) restrictive governmental laws or regulations, whether valid or not or (xiii)
insuncotion, or (xiv) any other rcason other than financial, beyond the reasonable conhol of such
party, and not the fault of the party so dclayed or hindered in or prcvented from perfonning work
or doing acb othenrise required uder this [.ease, then perfonrranco of such work or doing of
such acts shall bc excused for the pedod of the delay, and &e period for the pcrformanco of such
work or doing such aots ehall be extended for a period cquivalent to the period of such delay;
provided" however, that the provisions of this Section shall not operete so as to et(cuse or nrleaso
Tenant from tbe prompt paynrent of rent or other sums required to be paid by Tenant to Landlord
or to other payees anyrhere hereunder. Nottring hercin shall relieve the parry relymg on suc,h
delay event from exercising commercially reasonable efforts to mitigate the effeot of any such
delay.
3l . Diflutc Resolution. All disputes which arise under this Lease shall be resolved in
accordance with thetcrms and provisions of the Separation Agreemoot (as defined below).
32. $gpraration Aseement. Reftrcnce is made to that certain Master Separation and
Distribution Agreement intcnded to be entered into by and between Hewlett-Packard Company
and Hewlett Packad Enterprise Company with rcspeot to the separation of its assets (the
"Separation Agreement"). As between Landlord and Tenant, aothing containcd in this Lease
sttall limit or alter the rights and obligations of the parties under the Separation Agreement,
r
LcaBE - BOIO4 7
33. Miscellanqops. This Lease shall in all respeots be govemed by and construed in
accordance with the laws of the state in which the Premises ars located. If any term of this l,ease
is held to be invalid or wrcnforceable by ary cout of competem juridiction, then the reruaindcr
of this l-ease shall rtmain in full forpe and effect to the fullest extent possible under the law, and
shall not be affected or impaired. This Lease may not be amcnded except by thc written
agraemcnt of all parties hereto. Time is of the essenco with respect to the perfonnanoe of every
pnrvision of this L,ease in which time of performance is a factor. This Leasa shall, subjact to thc
provislons regarding assignment urd subletting, apply to and bind the respectivc heirs,
flrccessors, executors, administrators and assigns of Landlord and Tenaot. The langrr,age in all
parts of this [rase shall in all oases be construcd as a wtrolo according to its fair meaning, and
not strictly for or against eith€r Landlord or Tenanl The captions used in this tease are for
convenience only and shall not be considcrcd in the construction or interpretation of any
provision hercof. When a party is required to do something by this kase, it shall do ro at its sole
cost and expense without right of reinbursem€nt from the other prty unless spccific provision is
made th$efor. If either party bringp any action or legal procccding with rospect to this Lease, the
prevailing party shall be entitled to r€covor rcasonable attomeys' and experts' fees and court costs.
Whenever one par6/s consent or approval is required to be given as a condition to the other
party's right to take any astion pursuant to this [-Base, unle.ss another stadard is exprassly set
fortlr, such consent or approval shall not be urcasonably witlrheld, conditioned or delaycd- This
lrase may bcexecutsd incounterpartsi Any exectrted copy of this Lease, insluding frssimilc
or .pdf mpies, shall be deemed an original for all purposes. In the event that a Service [.€vel
Ageement betw'een &e parties is in e,ffeot with respeot to the Premises, the parties intend that dl
elements of Base Rent payable hereunder sttall be paid to tandlord pursuant to ths Service Lcvel
Agreement- Accordingly, insofar os Tenant has paid all elemenB of Bas€ Rent uuder the Servioe
[evel Agreement, such paymart shall constitute payment of Base Rent hereunder.
[remainder of page intentionally left blank]
Lcase - BOl04
I
6
lN WITNESS WHEREOR the parties have exegutcd this Lease as of the day first above written.
I.AI{DLOBD:
HEWLETT.PACKARD COMPANY (}\
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TENANT;
t,- qb(i\$ r.liru
HEWLETT PA*ARD ENTERPRISE
COMPANY
I'itle:
Lease - 80104
IN WITNBSS WHBREOP, the parties havpexecuted this lrssc asof the day firsl above unittcn,
I,ANDI,ORD:
HEWLSTT.PAC KA RD COMPANY
Name:
TEIYANT:
HEWLETT PACKARD SNTBRPRISE
COMPANY
Nams:
l'hlcr
Leora-EOlOtl
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EXHIBIT A
THE PREMISES, INCLUDING SHARED AREAS
Lsasg - BOl04
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EXHIBITB
GROSS MARKET REN'I' SCHEDULE
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EXHIBTT B
CROSS MARKET RENT SCHEDULE
Leeso - BOIO4
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EXHIBTT C
LISTOF SERVICES
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Lease - BOI(N
Hrylrtl Parf,ad Sne Serlrlcs! lb0ng
Ghange Justlllcatlon Form
ADDrwal Dato
Supplls
ShRetuaE
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E)C{IBIT D
EXCLUDED FI.'RNITURE AND EQUIPMEN'T
None.
:
L0a80 - BOl04
E)(ECUTION VERSION
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (this "Amendment") is enterpd into between IffiWLETT-
PACKARD COMPANY, a Delaware corporation ("Landlord) and IIEWLETT PACKARD
ENTERPRISE COMPANY, a Delawarc corporation ("Tenant") as of A+Eo:f lt*L,2015. #-
Capitalized terms used but not otherwise defined herein shall have the nileaning given in the
L,ease (as defined herein).
A.t'[,ease').
B.
provided.
RECITALS
Landlord and Tenant entered into that certain l.ease dated August 1, 2015 (the
landlord and Teirant wish to make certain changes to the Lease as herein
NOW TIIEREFORE, for good and valuable consideration, the reoeip and suffrciency of
which is hereby acknowledged, ttre parties heieto covenant and agree as follows:
l. Amendments to [,case. Section 20 of thc l,case is hereby amended by restating
such section in its entirety as follows:
"Furniture and Eguipment. Upon expiration of this Loase, Tenant shall have the
right to purchase from Landlord such moveable furniture, work stations, equipme,lrg and
systems (the '?ersonal Property') that is located in the Prcmiscs, except as othcnrisc
provided on Exhibit D. Subjoct to the terms and conditions of dris Lcase, Tenant (i) shall
romovc all Pcrsonal Property, and (ii) shall remove any additional equipment or fumiture
brought in thc Premises by the Tenant, in each case from the Premises on or prior to the
expiration of the Term or such earlier date frat this Lease is tenninated or the Tenant's
right to posscssion is terminated. Tenant and Landlord acknowledge and agree that (i)
T€,lrant shall have the right to use the Personal Property during the Term in as-is
condition and at Tenanfs own risk and (ii) Landlord shall not bc rcsponsible for the
condition, rcpair or replacement of such Personal hopefi.'
2. Effective Date. This Amendment shall be effective as of August l, 2015.
3. M+qella$e9yg. This Amendment shall in all respects be governed by and
constnred in accordance with &e laws of the state in which the Premises are located. If any term
of this Amendmont is held to be invalid or unsnforcoable by any court of compctent jurisdiction,
then the remainder of this Amendment shall remain in full force and effest to the fullest extent
possible undor the law, and shall not be affected or impaired. Ttris Amendment may not be
amsnded except by the written agreement of all parties hereto. This Amendment may be
executed in counterrparts. Any executed copy of this Ame,ndment, including fassimile or .pdf
oopies, shall be doemed an original for aII purposes.
3668657-tr1\
[remainder of page intentiotnlly lefi blankJ '
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IN WITNESS MIEREOF, the parties have executed this Amendment as of the day first above
written.
LANDLORD:
HEWLETT-P COMPANY
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Narne:,-t 1i'j.,r,"' ,'
C r'r & ._-l-rl_
/) j t j. -..,1(-. 1Li\ J' lG.rf:TENANT:
HEWLETT PACKARD ENTERPRISE
COMPAI.IY
By:
Name:
Title:
Loase Amendment - BOl04
4.,
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IN MTNESS WHERBOF, the parties have executed this Amendment as of fre day first above
written
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HEWLETT-PACKARD COMPANY
Name:
Title:
TENAiIT:
HEWLETT PACKARD ENTERPRISE
COMPANY
Name:
Title:
a/zc/,{
L€8se Amerdmslt- BOO4
EXHIBIT D
EXCLUDBD FI.JRNITURE AI{D EQUIPMENT
None.
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ASSIgNlUgr{r OF LEASE
THIS ASSIGNMENT OF LEASE (*ris "AssigrrmenP) is ddcd for referenco purposes as of
Decemb€r l,2016 and is made bctvrccn Hewlett Paclsd Enteryrise Coqpaay, a Delawue
corporafion ("ASigEq.{]) and HP Enterprise Services, LLC, a Delawre limited liability compmy
("Assig€').
RECXTALS
This Assignment is made with reference to the frllowing facts and with the following intpntions:
A. Hewlelt-Paclurd Company, or ie predecessor in intenest, as landlord ('L,andlord'), md
Assignor or a prcdoccssor in intrrest to Assignor, as bnant entered into that ccrtain lcase datcd as
ofAugust l, 2015 (dte *l&ggg'), whereby Landlord lcased to Assignor ccrtain prernises locatcd at
11341 Chinden Boulevard, Boises ldaho (the *Prem!ges:).
B. Assigno,r wishes to assign all of its right title and interest und* the lease to Assigrce, and
Assigncc wishes to aocept such assigrrment
NOW' THEREFORE, for good and valuable considemtion, tho receip and suffrcieircy of which
arc hereby acknowledged; the parties hereby agrce as follows:
Assirrun€n! Assigrror hereby assigng transfers and conveys to Assigneg and Assipee
heroby acc€pb such assignrnent and assumes all of Assignor's obligations and rig[rts in,
under and to the l.ease and the Prerfses. In addition to the foregoing and notwithstanding
anythipg to the contary contained herein, Assipec hereby erpressly assrmres all liabilities
and obligations wlntsoever (whether known or unknonm, whether asserted or unasse,rted,
whether absolute or contingeNrg whefrrer.accnred or unaccrud whethor liquidated or
unliquidated, and whether dus or to become due) arising on, prior to ot after the date hercof
under the lrase. The parties achowledge and agree that Assignor will not be released
from its liability to Landlord under the Lease following the assignment of this Lease
contemplated herein.
Etre$ivs D-qte. This Assignment shall be effective on the luer of (a) the Dishibution Dde
(as such term is defined in the Separation Agreement) or O) if Landlord's consent is
required under the l-ease to the assignment ofthe Lease as described herein, such date that
Assigrror reccives Landlord's writ€n consent (the Etrective Date ).
Govoning Law. This Assignment slrall be governed by, and shall b€ construed in
accordance with the domestic laws of the juridiction in which the subject premises under
the applicable Lease is loc*ed (the *Applicable Jrnisdiction'), without giving effect to dry
ohoice of law or conflict of lan, provision (whatrer of the Apptcable Jurisdicrion or my
other jruisdiction) thal would cause the application of the laws of any jurisdiction other
than the laws ofthe Applicable Jurisdiction.
2.
3.
trase Alsignm{t - HEIV12BOI04002
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Bindtng Etregt This Assignment shall intrle to the bsnefit of, and shall bE binding uport
tho parties hereto and fieir reqpeotive sucoes{lots and permited as.sips.
Severability. If any provision of this Assignment or ffre applicetion of any suoh provision
to my person or cirotrmstanoe shall be held invalid, illegal or rme,nforceable in any rospoct
by a court of compotent juisdiction, such invalidity, illegality or unarforcoability shall not
aftot any other provision of this Assignment
Counterparts. Facsimile. This Assignment may be exeouted in one or morc.counterparts,
all of whictr shall be considered one and the same agreement and shall becorne effective
whe,lr one or morp such courrterparts have besn signed by each of the partics and delivered
to the other party. This Assigrrment, to ffre extent sigred and delivered lry means of a
frcsimile machine electronic mail or ofter elecnonio metro4 $all be neated in all mmnerr
and respects as an original contact and shall be considcred to have the sanrc binding legal
effects as if it were the original signed versiqr thereof dslivered in p€rson , No parly henfio
shall raise the use of a facsimile maohine, elcctronio mail or other electronio method to
dsliver a sigprwo or tlrc fact th* any signatrne or conhast was tansmited or
communicated th$ugh the uso of frcsimile machine, electronic mai[ or other electronio
method as a defense to the formation of a conhact and each such party forever waives any
such defense.
Fur&er AssuaqI,Bs. At any tims o,r fiom time to timo after the date hercof; at thb request
of Assigrror or Assignee and without firttrer considercion, eaoh party h€reto and its
rcspoctive suooossorc or assigns, strall orecute and deliver, or strall cause to bs oxeouted
and delivered, suoh othor insfiume,nts of assumption and take such other aotions as the other
party hercto may reasonably rcquest to effest the assignmert to aod assumpion by
Assignee of each ofthe Leases as contemplafied hereSy.
Separation Agreemetl Reference is made to ftat c€rtain Scparation and Distuibutiont
Agreement dated as of May 24, 2016 by and betn een Hewlet Packard Enterprisc Company
('FIPEC) and Everett Spinco, Ino. witr rospect to the rwrganization of HPEC' s assets (the
"separation Agreement"). As betrnreeo Assignor and Assipee, nothing contained in this
Assignment shall limit or alErthe rights and obligations ofthe parties under the Separation
Agreemenr
[remaindm of page intentionally Ieft blank]
Lc8s. Asslgnmrot - HEM2BO04002
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IN UIITNESS WHEREOF, the perties hereto hsve executed tris Assignment intpnding it
to be effoctive as oftre Effective Datc.
ASSIGNOK
Hewleffi Paekard Enterprise Cornpany
By:
Title:
A$SIGI\EE:
HP Enterprise Scrvices, LIJC
By:
Narne:
Title:
kasc Arsignncr* - HEM2BOI0{OG!
EXHIBIT B - OFFSETS, DEFAULT
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HEwrrs3e2e\r35eser.r ESTOPPEL CERTIFICATE BUILDING 4 DGIIBIT B
L/INDI,ORI}IS CONSENT TO ASSIGNMENT
WHEREAS, Hp,tNC. (formerty r(nown as Heudefi-PackadSfsisl
f-r-\%rt*;
flandbrd"),
and HEWLEf,T PACKARD EhITBRPRISE COMPANY (the "Tenanf), artcrcd &at ccrtain
[,eas€, dsd August I,2015, (as amondo4 modifiod and/or srpplenrcabd, thg "Leare), witl
rqspect to the rcal$operty dcscribed thqch (thc."Iremtoer) with m addrEs of ll34l Clfu&
Boulernrdo BoisE ldaho 83714;
WHEREAS, f*rot intends b hansfrr all of its rigbt, title, and inEre$ (&c
"Asdgnnenf) in tho Prqniso tmda tre L€ase to HP Enerpdse Serviccs LLC fA$nee");
WHEREAS, Tenant is rcqucting landlord's wrifrcm @nsont to {re Assignment prior to
qrecution and offootiveness of tho samg ald 6is Landlord's Consent to Assignment is intended
to s€rYo as such consent
NOU TIIEREFORE, the landlord agr€es as follornn:
l. tandlod aonsonts b the Assigntnetq and agrees that srch Assignrnmt doos not
comtitrE a breach ofthe Irc or gfue rise to any ooil&rstual rcnredy by L,andlord themrnder.
2. This Lsrdlord's Consctf to Assignmmt constiUes all cqrsnt from Landlord thd
may be rpquired in connostion wift fte ASsignmcnt, prrsuant to Section 15 of tho Lease or
othenlise.
3. The l"€aso i8 in full force and e,frect and a truo amd coroct copy of dre [,ease and
all amondmonta and modifications ttrereo is attachod as EXhibit A'.
4. This oonsent shalt not releese or dlscfiarge Tenant from any liability, whether
past, present or future, under the lease or a]ter the primary liability of the Tenant to pay
the rent and perfirm and comply with all of the obligntions of Tenant to be performed under
the Lease (induding payment otallbills rendercd by Landlord br charyes incuned bythe
Tenantfor Base Rent ard AdditionalRent, includrng operating expensos and servioes and
materials supplHl to tle Premisas.)
5. This corrsent shall not be constued as consent to any further assignment or
subbtfing or cfrange of contnolor any otrertype of transfur in intereets in connec'tion
with a sab, divestment, spinoff, other disposition of assetrs or othenrise.
HEM2POCOT@l
IN WIfl{BSS WHEREOF, fte Landlord has exocuEd flris landlotd's Cons€nt to
Assignmcnton lociv , u' .201L
By:'--- rfrJ r'r'r
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Tftle:
By:
Title:A$fiA
Hn 2m0r00l
ESTOPPEL CERTIFICATE
SY-IGS ENTERPRISES, INCORPORATED
Decama(K L2017
HP Inc,
l50l Page Mill Road
Palo Alto, CA 94304
Attn: Jenny McClister, Esq.
E Mail: j [e-mail]
Ladies and Gentlemen:
Reference is made to that certain Lease, dated as of June t7,2A15, between HP Inc.,
(fonnerly known as Hewlett-Packard Company) ("Landlord"), and the undersigned
(herein referred to as the "Leose"). A copy of the Lease, and all amendurents and
assignments thereto preceding the date hereof me attached hereto as Exhibit A. At
the request of Landlord, in connection with that certain Purchase and Sale
Agreement and Joint Escrow Instructions (the "PSA") dated November 28,2017
between Idaho State Building Authority ('ISBA') and Landlord and that certain
Assignment and Assumption of Leases to be entered into between Landlord, and the
Department of Administration ("DOA"), the undersigned hereby certifies to
Landlord, ISBA, DOA, and each of &eir respective suocessors and assigns as
follows:
1. The undersigned is the tenant under the Lease.
2. The Lease is in full force and effect and has not been amended,
modified, supplemented or superseded excep as indicated in Exhibit A.
3. There is no defense, offset claim or counterclaim by or in favor of the
undersigned against Landlord under the Lease or against the obligations of the
undersigned under the Lease, except as may be indicated on Exhibit B hereto. The
undersigned has no renewal, extension or e4pansion option, no right of first offer or
right of first refusal and no other similar right to renew or extend the term of the
Lease or expand the property demised thereunder except ari may be expressly set
forth in the Lease.
4. The undersigned is not aware of any default now existing of the
undersigned or of Landlord under the Lease, nor of any event which with notice or
the passage of time or both would constitute a default of the undersigned or of
Landlord under the Lease, except as may be indicated on Exhibit B hereto.
SYKES ENTERPRISES ESTOPPEL CERTIFICATE
Page I ofS
F
HEWL\53929\1354588.2
5. The undersiped has not received notice of a prior tansfer,
assignmen! hlpothecation or pledge by Landlord of any of Landlord's interest in
the Lease, except as set forth in Exhibit A.
6. The monthly Base Monthly Rent due under the Lease is curre,ntly
$296,097.t9 and has been paid through and all additional rent due and
payable under the Lease has been paid
7. The term of the Lease corlmenc€d on June 18, 2015 and expires on
June 30, 2020, unless sooner terminated or unless extended pursuant to the
provision ofthe Lease. Landlord has perforrred all work required by the Lease for
the undersigned's initial occupancy ofthe premises demised under the Lease.
8. The undersigned has not deposited any funds with Landlord as
security for the performance of its obligations as Tenant under the Lease, and no
portion of such deposit has bgen applied by Landlord to any obligation under the
Lease, except as set forth on Exhibit C hereto.
9. There is no frre or reduced rent period pending under the Lease, nor is
Tenant entitled to any Landlord's contribution, except as may be expressly set forth
in the Lease.
The above certifications are made to Landlord ISBA and DOA knowing that they
will each rely thereon in executing the PSA and Assignment and Assumption of
Leases, as applicable.
Very truly yours,
SYKES ENIERJRTSES, INCORPORATED
By:
Name:
Title:
SYKES ENIERPRISES ESTOPPEL CERTIFICATE
Pagc 2 ofS
HEWL\53929\I354588.2
EXHIBIT A
LEASE
[ATTACHED]
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SYKES ENTERPRISES ESTOPPEL CERTIFICATE
Page 3 of 5
HEWL\5399\r354588.2
colrMENcEmENT DATE Ac, JTEEMEilT
WHEREAS, dr or about Junc 17. 2Of 5 HEYT TETTfACKARD COilIPANY, a Dehrrvare corporation
ffandlord'),and Sykes Enbrprisos, lncorporetad, a Fbkla Corpoation ('Tenanf). cntered hto that
certain Lease Agreement (the 'Lease) br Lease Premb€s c.ootainlng approxlmalely 167,459 rentable
square feet (the "Lease Premiser) of Bullding 8 sibated al 11331 W. Ctfrden, Boise, ldaho; and
WHEREAS, pursuanl to Term Commencement Dste of the teffie, Landord and Tenant deeire b
cenifyh ffiting lho commencement Datefurhe LeaseTem.
NOrl, THEREFORE, BE lT RESOLVED THAT, for and In cmsideratlon of the covenants and
agroements hereln and for other good and valuable consideration, receipl and sufficiency wlrbh are hereby
csnfessed set torlh the b[ovtting:
All defined tems used hereln sttall have the seme meani€ as defined in lhe Lease.
The undersigned has accepted possesslon and enter€d lnb orcupancy of the Lease
Premises d€sqibed in the Lease.
Pursuant to the Lease. Landtord and Tenartr hsreby cailitty lhato The Lease Signaltre/Efiedive Dde b June 17n,2015. The Lease Cornmenoemer* Date ls June 18t,2015. The Rent Cornmencernent Date is July l. 2015. The Lease Expiralion Date is Jrrle 3o[,2020
The Leme b in fu1l force and effed and has nd been modlfied or amerded (uriless
othorwise desdibed hercin).
EFFECTIVE AS OF Auqust 11.2015.
A.
B.
c.
D.
LANDLORD:
HEWLEIT.PACKARD COIIiPANY
By:
u"*., Ro(Wf E 6tficx,l/
Title;6
TENANI:
SYKES EiITERPRISES TilCORPORATED
Title: Ex€qithF VkF Presldont
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fri Hewlett-Packard Company
c/o MacMunnis,lnc.
1840 Oak Avenue
Suite 300
Evanston, lL 60201
LEASE
THIS LEABE ls mde by and bdr reen HEWLETT-PAGKARD COilPAilY, a Odau/are
corporaton ("Lendb{") and $ykcs Entcrprilcq lncorporsd a FlorHa corporatlon ('Tenant"), to be
effscfive as of June q 2A15 (lhe "Efi:cllvo Dde").
Artda'l
REFERENCEg
All referencss kr lhis Loaso (subJect to any further darilicatlons cmtainsd In thls Lease) to the
Hlowlry torms shdl haw the follortlng meaniqgs or refer to the resp€ctlve addrsss, person, date, tme
pebd, amount percentrage, calandar year or flscal y€ar as balo{u sd fdlh:
Property: That cedaln rcal property sfuabd ln the City of Boise,
County Ada Stat6 of ldatrc as slrorn on the Slte Plan
attracfpd horsto as E4tlbft rA', commonly knorn aa the
tl€wlett-Packard Bolse Campus. The Prcp€rty indudes,
trulhout llmltaton, lhe Premlaes, the Common Areas, snd
the Buildirg, all as descrlbed bdor.
&rlldlng: That certaln tlvee (3) sby btlHlng ln wlrldr lhe Prsrises
are locatod comrnmlyknovn ae BulHlng 8, wtrlch &rlHlrg
b strorn ortllned m Efll[-!fl horoto (tho "BrdEirg"),lmated at 113:ll W. Chfdgt, Bobe, ldaho 83713. tho
Par0es agree that the Buf,ding oonbins 167,450 rentahe
square feet"
Tenant's Address for Notlce:
Sykes Enlerprises lncorporated
400 Nsth Aehley Drlve, Sulte 2700
Tmrpa Fbrlda 33602
Attn: RcnraH PeAgukra
Sykes Enlerprbee lrrcorporaH
400 Notth Aettey Drlve. Sults 2700
Tarpr, Florlda 33602
Ath: LegalO'opqrtm€fi
Hetdefi-Padtard Cqnpany
c/o MacMumb, lrrc.
1840 Oqk Av6nue, Sulte 300
Evansbn,lL 60201
Ath: HP Lease AdmlnilsFatkm
Wlh a copy to:
Landlord's Mdregtos for Ndoes:
And
l'hvrbtt-Packard Cmrpany
3000 Hanorcr Streot
Pdo Alto, Callfornh 9{iilX
A[n: Fmrrciro Pedrara, Eeq.
Term Commenoernent Dats:Tho fty afls the daF on whhtt thls l.eee ls tully
executed and dellverEd by the partles,
flNo1052.2
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Lease Term:
Rent Commencement Date:
Lease Expiratlon Date:
Option to Exbnd:
Tsnant's Serurlty Depoelt:
Late Charge Amount
Tenant's ReWlred Liability
Coruage:
Broker(s):
Common Aroas:
Fhre (5) yeare plus tlra rarnCnder of any partlal month as
sd rorth ln th6 dolinlfitrl cf 'Leage Exphadon Date' belorn.
The frst to occur of: (l) Tenant's occupancy of all or any
poftlon of the ftembes fur ttre cordud d buslness
fiereln, or (ll) the frst day of lhe Hlontlrp mon$ aller tre
Term Corn menernent Dde.
Tho ffft (5h) anr*vereary d the Term Commencement
Dab pbs lhe ramaffi of lhe hst month ln whlch suctr
annlvercaryHlo such hat tha Leasc Exdratlon Dat6 stull
fall on the l*t day d snch month.
Tup (2) addl0onal parbds of ftn (5) yaars eacfr at 1fr)%
of falr market rant of Prembes (see Secton 2.1C)
Wahrcd.
Fi\,e Percent (5%) d he Ddlrquent Amount.
$1,000,fi10 for eadr oocur€noq $2,000,000 in the
aggregat€, and $3,il)0,0fl) umbrdla for each omunerrce.
CB Rkfterd Ellis, lnc. repruenUrq Landlord only("!.rndbrd! Brctrfl; lntennountah Commercial Red
Estab and CBRE, lnc. tEpresontir€ Tenant only
(collecttvely, "Tsnanfr Brclo/).
The "Gommon AIGaE'gha[ mean and lrplude (l) wlthln
th€ Buildkq, the gromd floor elwator lobby, the
mechanlcel and elecfficd roms, the rkers, the demark
rcom, ard strh o$ter podlons of he Buildirg as may be
desfinated by Lardlud hsn tme to Ume as oommon
areas for the &ilding;ard (D ontslde d the Bulldlrp, the
stroets, drlveways, wdl<uays and partlng areas as may
be designaled by Lardlord from lkne to llmo as common
areas senring the Bu$dlng; pmrrlded, howw€r, hat (i)
Tenant's uge theraof shall be subFct to (A) all Prlvate
Rosfictuns (m delined ln Sedion 13.12(p) bektw) nor or
hetufter affec{hg tho Property, ard (B) all Rules and
Regulatlons fixtt or lmrsf,er ostsbllsh€d by Landlord ln
accordance wlth this LoeE€. @mmon Areas shall not
include, and Tenanl shall nol have any rlght to use,
Landlcrd's Campus amenlths reeerv€d for use by
Lardlord's empbpeo end hvits only, lncluding hrt not
limited to the reoreatbn amenltes. Tenant shdlnot have
aooeos to or any rlsht lo u8s any por0on of the roof of the
Brtlldhg, ard allTenart acoess to, arrd rlght to use d, any
Lardlordontolled medranlcal or dectlcal rooms wilhln
the Bufldlng shaff be subJect to Landlord's remonaUe
requlrements and limitatlons.
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Premises:The Premises shall cofisbt of: the Bulldlng, consistlng d
approxlmatety 187,459 rentable square feet and, ftr
puposw of this Leaso agtsod to contaln aald number d
mnhHa squara feet. Tha Premlaes are morE partlarlady
d€scrlbod on Exhlblt "8" attached h€r€b and
lrccporated hereln.
100% (wttbh ls the pacentagn obtalned by dMding the
rentable squafis fuotage ol the Pramlees (167,459) by the
b{rBl 167,459 rentabbsquare fed of the Bundhg).
2016Bae€ Year:
Base Monthly Rent:The "Br3o illodfily Ront" for the Pramlsos shall be T'eo
Hundred Seventy{.lina Thoueand One Hundred Dollars
($279,100.@) pq npnttr (belng $20.00 per rentable
sqgar€ foot per year for the Premlses). On firsl day of the
13!1 ful month of the Lease Term, and on eac*r
annlversary thereaffer, he Base Monthly Rart for the
Prernlsee ehall be lncreaeed by three percent (3%)ln
accordance with Soclion 3.1 bolo$/.
Permltted Use:Tha 'Pwmiltad tbc'cf he Premlses shall conelst only of
general ffice ard cafi cenbr use in cornfliarrce with
Lans.
Exhibits:The term "Erhablts' shall maan the Exhlblte of thb Leass
uirloh are descrlbed as follofls:
Exhlbfr "A'- Slte Plan shoring the Property and
delineating tle Buildlng in which the Premises am locabd.
Exhlblt'A.1"
Ac@ss'
- Slte Plan showlng'DesQnated Exbmal
Exhlblt "A-?' - Deleted lntentlonally
Exhibit ..B - Floor Plar dellnoatlng he Premlses
EdrlUt ..e'- Tenant Estoppel Certificate
Exhlblt "Dl- lnhial Rutes and Regulations
Elh!ffE -Tenant Alteration Conskuctlon Rules
Tenant lmprwementAllorance: l'lone.
Ailldc 2
PREI'ISES, TERffI AND POSSESSIO]I
2.1 A. Dsnrlrc of Prunhrr. Lardlord hereby lcacos to Tenant and Tenant hereby
leages frorn Landlord for Tenant's ourn u8e ln the mndud d Tenante business, fq lhe Lease Term and
upor lhe terma and subioct to the conditions of hE Lease, the Premlsee. Tenant'g lease of he Prembes,
toSother wlth the non-exduslve llcenee to use the Common Areas granted ln Sectbn 2.1(B) belout,
Tenants Share:
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BubFct to lh€ term6 and condlUone of hle Lease.Notwithstandlng any trovlsion of thls Lease to the
conhary, Landord hereby resonnes to itsclf ed lts des$nees all righls of accoss, use and occupancy of
the Buildlng's roof, ad Tenant shall have no rlght of access to or use d tha Bulldlng's roof. Tenant shall
have the rlgttt b use of the Buldlng's rlsers and condults (lrrludlng tho rbers and cmduhts locatad ln the
Prernise) and the Building's damark room as prwHed ln Sectlon 2,1(B) below..
B. Ucc of Gommon Arcs; Reeervatlon. Subjec-t to the tems and condltbns of
lhb Lease, durlng the Leese Tefln Tenant shall have the non-o<cfusfue llcense to uso the Cornmon
Areas, together with Landlord and lB employees, agents, contractos, iruit€es and deslgnees, and the
tenants and other ocq.pants of tu Bulldlng. The foregolng llcene€ shall be subJect to the terms and
condit&rns set forlh in thls Loaas, the Prlvata Resblctftcns and the Rules and Regulatlons. and shall
termlnate cononrently srlth ths expiration or soornr tomlnaton of lhle L€ase. Tenant acknorledges aod
agroee that he Common Areas shall at all tlm€E be subJec-t to lhe excbsive management and contol of
Landlord. Wltho{rt limiUrg the foregping, Landlord resery€s the dght from lime to Ume to use any of the
Common Arsas, and hs rcof, rlaers and condulh of lhe Bulldlng, for telecommunlcalbns c any other
p,{Jrposes, ard to do or canse to be done any of the folloMng: (1} make drangeo, addltlons,
lmproremants, repaks and/or replacaments ln or to lhe Proporty (sxduding lhe Premloos) lndudlrrg,
wlthout limltiatlon, (x) changea ln the locatlon, slze, shapa and number of driveways, entrances, loadirg
and unloading aleas. ingrces, gSeos, dkEctlon of traffio, landscaped areas, walkways. publlo and privato
Bhoets. plazas, cd.lr$rds, lransportation facllltalion areas and cqrmon amas, parklng spaoBs, perkhg
lob and other parklrg areas, (y) prdtiUtlng parklns or paseage of motor vehbhr ln areas previursly
d$bnat€d for sucfi and dunging the baation of o<oftrsively markod paftirry spaoos, and (z) ergardFrg
or decreaslng the slze of the Prop€rty {includlng, u,ilfiout limihtion, the Common Areas or arry portlon or
element ttereof) lndudlng, wihout llmhhfun, adding to or deletlng h.{ldln$ ftom lhs Property; (2) dme
temporarfly any of lhe Common Areas wttih engaged ln maklng repails, improlenrents or alterations to
the Property or to such extent, in Landlords oplnion, as may be necessary to pravenl a dedicatlon lhereofs the accrual of any rlghb d any Peraon or the publlc ther€ln; (3) hm a oo{flmon erea aseoclatlon or
assodations under covenants, cordlllons and restrh0ons to ovn, mmage, operate, mahhln, rcpalr ard
replace all o any pordon of lhe landacaplng, driveways, walkuay:1, parking areas,.ptblic and private
sheets, dazas, cour[/ads. kanspqtalion facllltaton ereas and other cornmon areas located outslde of
the Building and hcluds lhe common arsa assessments, fees and bxes drarged by he assodatlon(s)
and Uta cost of maintalnlng, managing, adminbterlng and operating the associatSon(s), in Building
Operatlrp Expenseo as prwided In Sec-tion 13.12(e) behw; and (a) perbrm euch o[her ads ard make
such other drangre with respeot to the Propedy (excludingithe Pramlses) as Landlord may deem
approprlate. Landod agrees to use comm€rcially raasonaUe e,fforb to perform 0re aboredescribed
acts so as not to materially and adversely lmpelr Tenant's use of the Prenrlse kr accordarrce wltr this
Leasa; provided, horflEver, thst performance of the abore-deecrlbod acts shall not sublect Landlord to any
lhbility rrcr shall it enUue Tenant to any compensatlon or b any dlminution or abatement of Renl, and
suctr acts shall mt be desmsd a conatuc,llve or acbal evictlon or a breach of the @v€nant of gdel
enJoyment. Amenlties olher than In the Bulldlng that are reserved on the Property for use by Landloed's
ernployeee and lnvltees only, lrcldlng but not llmiH to the recreathn amonHioo, shdl mt be deemed
Cornmqt Arsas avallable for Tenanfs use. Tenanfs use of the Comrnon Ares sltuated outsHc cf the
Buildlng, as othenrlse llmlted or restrictod by any pwlslon of tf{s Leasq shall ba llmited to the
ontranoac, lntemal roads, deslgnated parkhg areas, sHerrmlks, and the exterlor Common Areae
knmediately strroundlrg the Bulldirp. Tenant shafi have he r(fit to use lhe ffra stralrs connectlng the
floors of fie Premlses as convenlence stalrs. Tenant may use sEhe ln thdr as{s corditbn, if prac,tlcal,
glrren lhe location(s) of he Prembeo, and ln acc,ordance with Landlord's searity rcquirernents fur the
&riHing. Upon Tenants submlssion of sufflclsnt lnformatlon, Landlord will mnsHsr Tsnant's request fo
ttle rlght to lnslall an lntemal oecurlty Blr$tem to lle Bullding elaks and tle such system into the Bullding's
seorrfty and Class E systams. Tenants eaarlty system may not be connec*ed to the Bulldlng securlp
systenr wtihotrt l-andlord's apprcval. Tenant shall also have the dSil b mess and use tha rlsor Epaelt
of the Bu[dlng and he Bulldlng demark rmm for Tonants tel€commurtcatlonr r€qulI€ nents, al no cost to
Tenanl, suUect to Landlord's reasomble raqulremcnlt and limltdions.
C. Loace Term. SubJect to Seotion 2.f (G) belovr, the term of trls Lease etull begln
on the Term Commoncement Date and shall end on lhe Laase ExplraUon Dats, unhss sooner termlnated
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ln accordance wih tha tarme qf thle Leasa (arrch period baing sordlmes refenad to herein ffi lhe"L.sc Trrm'). Rent shall be payabh as set forh in Articla 3 bdcnr. Notwilhstanding the
oommenoement of lhe Hm of ttls Lease, Tenanl shall prwlde reasonaHe eooeBs to Landlord to facllltab
l-andlord's parformanoe d arry mainlenance, repelrs or ottrcr vrmrk requked h cornecllon wflh fte
otp$atlon of lhe prcvlous lease of the Premieee or wtriclr is required by the prwbbns of thls Lease h
connsctlon wih the commencament of lhe term of thb Lease and Tenante occupancy of the hembee for
lhe Permltted Use.
D, Renowal Optlons. Tenant ehall have the opton to extend the Lease Term fu
tu,ro (2) addiUonal terms oil ffve (5) years each ("Renewal Opdoilr") by delirleilng notice to Landlord ln
wrltng, no later lhan nlne (9) months prior to the end d Ure apflhable Lease Term, dTerra{'s lntent to
exerclse lts annentrenelvd option. Any oterclsod rsrewale shall be on the same larms eB setfurlh ln thls
Leasq exopt lhat Base Monthty Rent shall be revised b be one hundred percent (100%) of the Market
Rate (as defin€d bdo,v).
E. Dctamlnadon of llarftet Ra!e. Wthln flfte€n (15) dap ater Landhd receivee
Tenanfe notrco lhat lt ls exerclslng a Renaml Op[on ("Exercl:c Nodco"), Lardlord will notify Tenant of
Landlord's good faitt dstermlnatlon of the Market Rats, Wlthln fifiean (15) days after Tenants recelpt d
Landlord's determlnation, Tenant wlll nolfi Landlord wtretfrcr Tenant accopts or rolacls BaH
det€rmlnaton, or lnstead elects to walw Tenant's reneud rbht. ln he event Tsnant falle to nollfy
Lardlord withln the foregoirg fifteen (15) day perlod, Tanant wlll be dsemed to harre aocapted Landlord's
det€rminadon. lf Tenant ndlfies Landlord of Terranfs objection to Lardbrd's determinaton, and has not
dected b walv€ Tenante renewal rlght, the arbltratlon prcoess herslnafier set hrth wlll determlre the
Mark€( Rate. Wilhln ten (10) days afl6r the otphation of fi€ bregdrE ffben (t5) day petiod, emh party,
at thelr oirn et(pBnss, will notfy the olher of its sdes{on d a reel estale broker wlth not less than len (10)
yearc' exp€rlencc ln commerclal leaslng transactbns in the Bdoe, ldaho area and wtro has leessd e
mlnlmum of 5 mlllon aquare hel of dice spacs, esctr of whom wfll ddermlne and pronp{y report (and ln
no event labr than he fofitfiffh (aslh) day follorlng Landlord's recept of lhs Exerslse Ndic6) to both
Landlord and Tenant ln nrldng his a her det€rmlnation d ths Markd Rab. lf hs hlghr d the Market
Retes reported by he brokers ls no mor€ fian ffve (6%) p€roent more than the loflsr rate, tho Merkd
Rate wllt be an average of such amountg, However, lf the hlgher amcunt le more than 1067o of lhs knnr
emounL then wltrln ten (10) dayt afler recelpt of both reporls, Landlord ard Tenarrt will ftin0y appolnt a
trhd broker meetng the aforcsaid crfterla (or tf Landlord and Tenant are unable lo agree on such broker,
each party will klenUfy a third broker accephble to lt, and the pailos wlll determlne by coln fllp wtrlch
broker rlffi becorne Ore thkd brokr), and hs lhkd brcker will deternine 0ra Markd Rate by selecling
elther Lardlord's Market Rate detsminalion or Tenarfs Market Rate debrmhaton accordirg to
whictrarer of the tuo valuatlons as set ffih ln the leports from Landlord's broker or Tenanfs broker,
reopectlvely, h closer to lhe acdual Market Rate in he oplnlon of such thlrd broker. The thlrd hoker witl
haw no dtscretion other than to select onc or the olhr report as atueeaH. Th€ costs of such thlrd
broker vrdtl be slared equally by landlord and Tenant. The parties u,fl u,ort bgpther and coordlnate
efiorts to oHaln such thlrd broks/s report ln unldng no later than glxty (60) days followlrrg the dab of
Landlord's lecelpt qf tho Exarclsa Notlce.
F. Definltbn of "tarkct Rrto". The apflknble faf market value rental ratG (tho
'Illarkgt Rilc') le hat rate, determlned on the basb of a 'fdl seryhe" rent slruclurc comparable to thal
set fortr ln thls Les€ ln terms of rnatbrs such as hlormal Building Horns, chargoe for efier-horrs I-MAC
ssvlces, and hvd of servlcee prwhlett by Landlod, chtrg€d for space of oqnparable ehe, locatlon and
cordition in conparabb oftico buildinge locobd ln the Bols€, Haho market further taking into
conskteratlon and maklng adJuslment for at relevant faclors establlshlng clmlladty and dhslmllatl$
b€trireen tre conrperakIe lease and the lease to Tenant of the Prembes under tre Renerual Optlrn. The
ddermkration of Market Rate shall lnclude equlbble adlustnents for all cormesslone available ln lhe
market at the tFne Tenant exeroises tts renqiral optlon lrrcluding, but rnt limlted to, bnant improvement
allorvances, commicslons lo tenant brokers end other leaelng lnducements.
G. Dallvcry of Pocaeerlon. Tenant stull not be entlUed to use or possees all or
arry part of tre ftenrlees unUl lhs date Landlord ddh,Brs possseslon of ftemises trc Tenant Suffi to
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dalap resulling frcrn Force Mapure, Landlad shall use reasonable effoft to'delirrs posseesion of the
Premises to Tenant (udth Landlotd's Work substanUally complete) drthin one (1) day after lha Effec-tivo
Date. l.lotwithslanding anything to the confary herein, Landlord's lallure to ddlver possesslon d the
Premheq to Tenant a provided abova shall nol constihrle a breach or defeult under thls Lease ard shall
ln no event maks l-andlord llable ln damages or othenplse to Tenant and Tenanfs sde rcrnedy for such
hllure shall be to termlnate thls Lease as prorld€d bololv.
lf Landbrd doas not dellver poesesslon of lhe Premlses h Tenant (wlth
Lardbrd's Work subetantally cornplete) by 5:(E p.m. Mountaln Time on the lhlrteth (30th) day aflBr the
Effettue Bate, ficn Tcnant may termlnate this Leaso by written notre lo Landlord (lha "ilon.DellvoryTerrnlnatlon Nothr") prwlded such termination rctice ls ddivered to Landbrd by 5O0 p.m. PDT on lhe
brtielh (4fih) day der lhe EffBclivs Date and Landbrd haa not dellvemd possession of the Premisos to
Tanant (with Landlord's Wo* substantlally complete) bofom dollvery of the l,lon0ellvery Termlnathn
Nolice to Landlord. lf Tenant fails to dellver the lt{on-DdMery Terminatlon Nolhe to Landlord (a} by 5:00
p,m. PDT on the tulie{h (40th) day after the Efiective Date, or (b) prbr to Landlord's ddivery of
pcsesslon of fte Premlses (wlth Landlord's Work eubstanthlly comflete), whi*evor shatl flat occrr,
Tenant's right to termlnato thls Leese under this paragraph shdl lapse and be of no furth$ force s effcct.
H. Dolotod lntontionally.
2.2 Landlordb Wor*l Acceptance by Tcnsrt. Landlord tm diecloeod to Tonanl and
Tenant le aiero, hat Landlord's operatbns at the Propaty (but nol ln the Bulldlqg) lnclude vadans
laboratorigs, and lhe use, sbmge, tansporl, tnndling, dlscharge and disposal of Hazadous Materlals ln
quantllbs approprlate for Landlord's use of the Property. By accoptlrB possetclon, occupyhg or uslng all
or any pad of he Rembes for any purpooe, Tenant shall be deemd lo have accepted the sarne and
acknowledged that the Prrembes wsre ln lhe condhion called fur by thb Leme, wnh fE sole ocsptlon of:
(i) labnt d€fertt ln the Premls€o plumbing, elecblca! and machanical qlstems, provided lhal Tenant must
notify Landlord of any suctr lssu€s wlthin ona (f ) year d th€ Renl Gommencement Oate; and (ll)
Landlord's obllgatione expraosly set hrth ln this Lsas€. Exmpt as may elgrssly be sst forth in lhls
Le€se, Landlord shall not be obllgnted to prwide or pay fur any lmptoremsnt, allsation, remodeling or
r&rrblshment uprk or servfc€s related to $te lmprowment, albration, remoddlng or refurblshment of the
Prcmlses, and Tenant shall lase and accept the Premls€B ln thsir AS{S'WHERE{S'condltlon on the
date Lardlord tendss pcsesslon th6r6of to Tenant subJec* to all exlstlng Laws, Prhate Reslrictions,
eaeements and otter mafiers d pnHlc record respecling the use or occupancy of th€ Prcperty or any part
thereof. turyfumitwe, furnlshlngs or egulpment orned by Landlord and lefr in plae in lhe Premlses as cf
the Term Conmefioemont Date for use by Tenarrt shat be ddivered to Tenant in th€lr -AS lS, WHERE
lS'condition as of the Term Commenoexnent Date.
Landlord shall ceuso only lhe folloring work ('Landlordb Wo*') to be perfurmed at
La6lod's sole oesns€ (unless otherwise lndlcated bdor): landlord's Wqk shalt conslsl sohly of
Landlord d€lir/€rkE the Buldlng (i) in'brmmdoan'condllbn; (il) in confumance wlth allep$hable [aws,
indudlng, w,iltrout lknltatlon the Amerbans wih Disabilltleg Ac't and ary stst6, cdJnty or local equivalent
regulations, ard all Larlre goternlng flre ard llfe safuty bsues; and 0ll) fse of latant defeots, with tte rod,
ttre Bulldlng structure, and all Buildirtg plumblng, elec,trical and medpnlcal systems ln good norkirg
condltbn..
Landlud shall have no obligation to obtaln or msinhin any permlte, approvale or
autholizallons frorn trs Clty of Bois€, ths Strate of ldaho, or any othergovsrmental authoity requfed to
ugo, oporate or malntaln any Tenant property or buslnoss operatione ln the Premises. Landlod makes
rp represenlauons or iranantloa, expriss or lmplhd, as to the sultab0ity, adequacy, or fltnoss of any ltem
of Laldlord's Work for Tenanfs lntended uso or Fnposes or any other uses or pJlposes, and Landlord
shall have no liabllty whateoever for any falbre or malfunc{on of any ilem d Landlord's Work, Excapt as
apecificafiy sgt forth in thls Sectlon 2.2, th. ilems of Landlord's Work, lf any, shall be dellvered to Tanant
in a strlctly 'AS lS' I,VHERE lS" \,lth all farlts' condltlon and udttpnt any express or lndied uanarty
from Landord (or any of Landlord s aganb, employee ard/or repreoantatives) of eny klld. Tenant shalt
be responslble for cleanlng, lmurlng, repalrlng and maintaining any ard dlsuctr }tems. Tenanl ehall not
q80r052.2
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remors any such lterns ftun tha Premhes wilhout Landlord's fior writlen oon6ent, unlees such remoral
is required to peftm repaks thereon" Except as speclffcdly sot forti ln thls Seofon 2.2, Landlord shall
have no duty to rcpah or rnalntain such itans, nor shall Landlord mdntah lnsuranca carcrage fc suoh
Iterns. Except as speclf,cally set forlh ln lhb Sectlon 2.2, Tenant henby assumes all rlsk of damrup b
propeily or lnJury b perrons In mnnedion with $e use, mainHtancea repalr d eufi items and Temnt
hereby walves dl clalms ln respoct her€d agalnst Ladlord. Upon lhe exph.tlon or any earller
termlnalhn d lhie Lease, Tenant shall sunetder euch iterns to Landlord ln as good conditlon and repalr
as racelved, reasonable wear md tEar, casualty and condemnation excepted.
Othor lhan Landlord's Work, Landlord shall have no obfigathn to renovate, improve, aller
or oth€nirlso fil.up thg Fromlseg fur Tenant'e us€ s occupansy, and all othef renanetlons, lmpovernents,
alteratlcns and flt+p vrdth respect to the Prenlset deemad naoessary or deslrable by Tenant shall be
performed by Tenant at lts sde expsnse in accordarpa wilh Artlcle 6 beloti/.
2.3 Suncnder of Possesslon. At the oqhatlon or Eooner tsrminaUon of this Lease, Tenant
stlal! deftv€r up ard sunender to Landlord lhs Prcrnises, ln good repir and worklng order, reasonablo
wear and lear and damago due to casudty ox@td. ln addlllon, at fie exptutlor or soon€r temlnathn
of thls Lesq Tenant shall remove frorn the Propsrty all of Tenant slgne, all talecommunlcallons cabllng
and wiring (whether in existencs on thE Term Commsrcament Date or lhareafter instdled by or on behalf
of Tenant ln accordatrca wllh lhe provlslons of lhis Lease), all raised floorilg, all dedhated fire
supprasslon systems and dedlcated HVAC sptems installed by or on behalf of Tanant, ard all of
Tenant'B Prop€rty (as deflned belovv), and shall vacate and sunender lhe Prembes to Landlord ln the
same condirllon (orcept for changos approrred in wriling by Landlord dudng the Lease Term),'broom-
d€ffi', as exbted upon dalivery of he Premises to Tenanl reconable wuar and tear and damage dre to
casualty orcepted. As used hereln, 'Tonarl'B Propergf shall mean dl of Tenanfs equlpment (whether
such equlpmsnt ls olrned or leased, and lncludlng all telecommunicalims cabling and wiring lnstalled by
or for Tsnant, wfierEver located), lnventory, lmde ft&rres, mowable furnlture, oupplies, wall decqatlons
and clhsr pereonal property. Tenant shall repalr a[ damagB to the Propqty r€$rlting ftom the remoral ol
Tenant's Property and tha other llnes, systuns and equlpment whose rernoval is requlred undsr lhls
Lease, and shall patcfi and rdrdsh, to Landlcd's reasolable satlefadlon, all psnahatlons made by
Tenant or any Tanant Party to tfie fioor, uralls or cdling of the Premises (wlh the exception of Lsndlord's
Work), whcthar such perrctratiorrc were made with Landlord's approt al or not. Additlonally, Tenant shall,
prlor to [re expkatlon or $xxror termlnetion of this Lease, remore any impovements and allerations
deslgnated fur ramovd by Landlord purguant to Sec'tlon 6.1 belor, and Tenant shall repak all dama0p to
the Property rasulting from such rernoval. lf Tenant fails to perform iE remor/al and repair obllgatlons
under thls Sec{on 2.3 by lln explratlon or sosrer tsmination d lhis Lease, Landlord may, at Tenant's
e!(penre, nemovo Tanant's Property and/or any ctlrcr of Tenant's lmprwements end alteretlons not so
remored and make such repalrs and replacemenE nol so made. Tenant shall be lhHe to Landlord for dl
coets and exp€nsos lrruned by Landlud ln returning the Premlsss ard Proparty to lhe requilEd conditbn
and rhall pay to Landlord ths amount of all cosb so lrrcuned wllhln thhty (30) daf d Landlord's billing
Tsnant fur same. Any coots rcmalning unpald afler the explralion of such thirty (30) day perlod shall
firereafter besr lnterost at the Ddault Rate untl paH. Tenant's obligations under thls Sectlon 2.3 shall
survlne the expirallon or soonor tormlmtlon of tils Lease.
2.4 Delsted lntentonallY,
2,5 Deleted lntentlonallY.
Arfbb g
REIIT; 1ATE CHARGES
3.1 8ue tlonthly Rent. Cornmsnaing on lhe R6nt Comrnoncernent Date and coilinulng
throqghout &o Lsaso Term, Tenant etull pay to Landlord, wihout dget (o$€pt as expresely eet forftr ln
lhls Lease), deduclion, countardalm or prior demand ths,6tor, in advanoe on hs first day of each
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calendar month, the amount s6l for$ aa Basa iltlonlhly Rant in Article 1 (the'8ae Honthly Rcnf'), as
the eame ehdl be lrrcteaeed pureuanl to the following: Beglnnirg wlth lhs installment of Base Monlhly
Rent due on the Renl Commencsnent Dale, and for the mmainder d the Term d me Leffie, the Base
llonthly Rent shall be as set forh in Arthle 1. Nohillthstandlng anythhg to lhe confary contaiud h hls
Leasa, Tenant ahall bs enli[ed to a credit ln the amount d Tttro€ Hundred Twentpillns Thorsard Eight
Hurdred Thhttfsk Dollars ($329,838.00) agalnst the ffrst lnstallments d Base Monffrly Renl ooming due
under thb Lease.
3.2 Addldonal Ront Commencirq on lhe January 1, n17 and contlnulng Orroughout Ere
remalnlng Lease Term, ln addlUon to he Basc Monlhly Rent and to tho exteil mt ruqrdrad by Landlord to
be contradsd fu and pald dlrsctly by Tanent Tenant shdl pay to Landod ae addltlional rent (the
"Addltlonal RentE) the followlng amounts:
(a) An amount equal to Tenanta Share d Bulldlng Oporadng Expenses for
any Expense Year in exoess of &rilding Operatlng Expenses ior ttp Base Y6ar (lhe "OpEx lncrease").
Bulldlng Operatlrc Epeness for lhe Base Yec, and for all subsequent Expense Years shall b€ bas€d
upon the fu[dlrg belng 95% ocanpled, and ther&re shall be "groemd up" lnespeclive of adual
Br.rlldlng Operathg Expensee, pro#ed Landbrd shall not collec{ moro lhan lsndlord acfually spends as
a rasult of sr.rcfi gnoes-up. The arnount by utlddt the Bulldlrq Operatlru Expensa br any glven Expense
Year exceed the Bulldlng Operatng Expenses fu the Bas€ Year ls somelknes rd6r€d to hereh as lh€
"Bulldlng Opordng Erpcnro lncreaso'. ln repect of any Eeelse Year that ls portly wlhln and
parily witront the Leere Term, Tenanfe Shas cf he Bulldlng Opedng Expenses lncreasa shall be
prorated to ooneepond to tlral porton d the Expense Year occunlng wlthln lhe Leasa Term. Landlord
res€n€s the rlgtrt to changB from tlma to Umo the methods of blllhg Tenant br any glven tuilding
Operatlng Exponses or lhe perlodlo basis on whioh such expenses are H[ed, prorlded that Landlordgiv* Tenant at least thlrty (30) days advance ufltten nodce of any sudr change and provldsd fudher that
Landlord shall not lnelllute arry euc+r charges more lhan twlce (as to each lbrn) durlng anycalendar year.
&lldlng Opqatlng Expenses shall b€ delermlned ln amordance wlth GAAP standards at all times dulng
the LeoeeTsm.
(b) Landlord's share of he consUeratlon recefued by Tenant upon cerlaln
asslgnmenls aM suHeases as requlnrd by Artsls 7:
(c) Any legaltsc and costs that Tenant ts obligat€d to pay or relmburse to
l-andlord pLrsuant to hh Lease; and
(d) Any other c{arges, interest, reimbursernonls or other sums due Landlord
FJrsuent to the terme d lhlo Lease.
The parlleo admowledge lhat the Bullding b part of a multl-tultsing prolect consbtng of oths
bulldlngs ard such otpr bulldlngs as Landlqd may elect to corsbuct and lnolude as part of the Property
fmnr time to timo (collecthdy. he '(Xher BulHlqgp'), and tnt cerlaln of the costs and expense
hqrr€d ln oonnscton u,llh the Hoporty (1.e. the Pmperty Malnlenanoa costB, Landlod's lnsurance
CGts, Real Proporty Tax€s. and l-andlord's tlllllties Cosh) may be ghsred among the Bulding and/or
suoh Other Bulldhgs, while ceilain other coeta and expenses whlch ale solely afiributabls to lhe Buildlng
and such Ottrer Bulldings, as applloaHg shal be allocatod dlreolly to lln Buildlng ard Other &.rlldings, as
the me may be. Tha pardes agrea that any sudr allooaton of Propsty Opera0ng Expenses among the
Btrilding and Commm Arees on the one hand, and OE Oher Buildkgs and ofurior erees d tha Property
on the other, shal be reaonably and equltebly dotorrthod by Lardbrd, based on the ratlo of the numberd renbHe squat fuot contalnad wtthh lhe Prcmises (167,4Sr) lo the toEl numbor of rentable square
fuat contained ln the Pemls€8 and the Othor Bufldlngs (1,544,530), or on euch oth€r reasonable and
equltable bash as Landord mayftom time to time debmhe ln lts remonabb dlscroton.
3.3 Striemcnt of Erilmated Increae. Durrg any Exporse Yea. Landlord may glve
Tenant a wrltten staternent (the "Edimatc Stetemnt') oontair{ng Landlord's eellmate (ths'E!Umah")
of the Bulldlng Opeaffng Expenses lncreaso for the entlre then+un€nt Expenss Year (the "Erllmated
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lncmaae'). lf pursuanl to any Esilmate Statemsnt an Estmtrd lnoease ls staled fq lhe thon-srnsnt
Expense Ymr, Tenanl shall pay, wlth lts next lnstsllment of Bage Monthly Rant due, () a sum equal to
one&elfth (1/1Ah) d suc*t Eetimated lncroaoe multlplled by the number of months then elapced
wnmenclng wllh the llrst day of tha then-ctnent Exp€nse Year, and (ii) ln advance, ma-turelftr (1l12lh)
of the Estknated lnorease In respect of the thenflnent monlh, and (lll) thereafur, untll a dlfierent
EsUmats Stabmont ghall be eubmltted to Tenant as abore provHed, aach lrntallment d Tenant'e Share
of otoass Bullding OperaUng Expenses for the applioatile Expanse Year shefl be lncreaeed by an amannt
equal to one-titelfrh (1/1Ah) of the Estimated hcrease. The fallurc of Landlord to timely furnleh an
Estmate Staternont for any Erpense Year ehall not prwent or prefudice Landlord from ddng so at any
subsequenl tlme subj€ct to ttp time periods behuu and it shall not dhendee pr{udlce Landlord ln the
erforcement of any of lts rlghts under thls Artlde 3 irrcluding, withqrt llmltation, lts rlght to collect any
Addltional Rent due ulder SecUon 32 abova eubfect to lhe tlme pdbds belorv. The provlslons of this
Secllon 3.3 shall sulfue the expiratlon or toonor iennlnation of thk Loaso. Landlord shall not glve
Tenanl more lhan thres (3) Estlmate StaEmente h any one (1) Expense Year.
3.4 Shtem.nt of Actual BdHlqg Opcretlng Exponroc; Year€nd Adluchrsntc.
Landlord shdl uee reaeonablo sfiorts b give to Tenant on or before lhefrstday of JulyfollowirB the end
of each Expense Yo*, a statement (the 'Oporatlng Statomcnt') r/rlhlch shell sEte the ac-tual BuiHing
Operatlng Expenses pald or lncuned for lhe precedlng Exp€nse Year, gossed up to assume the Building
ls 95% ocanfied, lnespec*lve of the ac*ual amounts paH by Landlord (provided Landlord shall not oollect
more than the aotual amounts pald) and wtilch shall state lhe amq.rtl ol he aotual Bulldlng Operahg
Expenses lncrease, I any, wifl respect to the preceding Expons€ Yea (olher than lfra Base Year), lf any
such Opera&B Statement shall shorrt an olerpayment or underpaynot (as a rcsult of any Eslimabd
lncreaser rocelvod by Landlord purBuant to Sectut 3.3 abovs dtrlrU the pecedlng Expeneo Year) ol
Tenarrfs Share of the Bulldlng Operatlng Expensas lncrease for lhs preceding Expenso Year, (l) any
dr€rpeyment sMl, at Landlord's option, be rcfundad to Tenant or crsdited agdnst the next paynent(e) of
Addltbnal Rent due ftom Tenant undar Sec'tlon 3.2(a) aborc provHed, horever, if suoh refrrnd hae nol
been tully peid or qedlted prlor to the exphaUon of the Lese Term, landlcd ehall refund to Tenant the
unpald or unapptled balance of such credll, as the case may be, within thlrty (30) days afler the otplratlond the Leasc Term, wlrlch 6l[atlon shall survlve [n ogiration or earlis termlnatlon of thb Lease, and
(li) tp full amqrnt of any underpayment shall be pald to Landlord by Tennt wlhln thirty (30) days after
sr.toft Operaling Statement shall trave been dolfuored to Tenant. The provlslons of thls Sectlon 3.4 shall
survive the exdration or sfiln€r terrnlnation of this Lease.
3.5 Letl Gharge and Default lrtsrut Tenant acknoudedgos lhat lhe laG payment by
Tenant of any monlhly installment d Base MmOily Rent or any Addltlonal Rent will cawe Landlord to
incur oertaln costs atrrd Expsnses not corttemplated under lhb Lease, tn exact amamb of whicfi are
extrenrely diffidit or lmpracUcal to fix. Such cosb and experses will indude, without limihlbn,
administration and cdlecthn costs and proceeslng and accorntlng exponsss. Therefore, if any
imtrallment of Base ilhnthly Rent ls not recelved by Landlord from Twnnt wllhln ten (10) days afler lhe
same beoqnas dr.E, Tenant shall lmmedlately pay to Landlord a one-lhe lab c*rarge h an amount eqral
to the Late Chargs Amoln[ and tf any Addaltoftal Rent b not recslved by tandbd wffirln ten (10) days
aftsr the sarne b€comes due, Tenant shall lmmedlaHy pay to l-ardlotd a late drarge ln an amount equal
to the Late Chagp Amounl Lardlord and Tenant agrce that sald Late Chargs Amount represents a
resonable estimate of such costs and expensm and ls fdr oompensatbn to Landlord fu he anUclpded
loes Landord uould suffer by rereon of Tenant's falup to make limdy palm€nt. ln no event shall lhls
provlslon fur a late charge be deamed to gra$t to Tenart a grace pedod of extension d Ume wlthln whlch
to pay any Renl inetallment or prevent Landlord fron oteroislng any righta remedy avellable to Landlord
upon Tenant's fallure lo pay each Rent lnstallment due under thls Leasa when due, includng the rlght to
t€rmhab thls Lease. lf any Rent remalns delinquent for a perlod ln excess of ten (10) days lhen, in
addltlon to urcA hle drargp, Tenant shall pay to Landord lntereet on any Rent that ls not so paid fmm
saE tenth (lOb) aay at the-Defau[ Rats untii paH.
3.6 Pay,mcnt of Rcnt. All Rent shall be paid h lauftd money of the Unlted Stataa, w[hout
any abaternent (orcept as oxproesly set fslh ln thls Leese), reduc,llo& counterdalm or offeet (exoept as
expressly set forllr ln thls Lease) fr any rsaEon wtratsoever, to Landlod { such addreoe as Lffidlod
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may d€slgn ile ftom [me lo Ume. Ladlord lnitally deeignates he fdlourlng addrcsses fc recelpt of Rent
paymonts: Hewletlfaokard Company, c/o MacMunnis, !nc., 1&40 Oak Avenuo, Sulte 300, Evaneton,llhois 60201. Tenanfs oblignllon to pay Base Monlhly Ront and aU Addltional Rent shall be
approptietdy prorated at ths commencsnent and exphaUon of the Lease Term. The fallure by Tenant to
pay any Addlllonal Rent as requhed Brrsuant to thls Lease whan due shall be troated lho same as a
fallure by Tenant to pay Base Monthly Rent wten due, and Lardlord shdl harrc the same rlghts and
remedlas agalnst Tenant as Landlotd trtould have had Tenant falled to pay the Base Monthly Rer* wtren
due.
3.7 ftep.ld Rcnt, Tenant shall, within the tlme period set forlh in Article 1, pay to Landlord
the annunt set forth ln Artlde 1 as (Prepald Rcnf'as Eepayment d rent for crdlt agalnst he ffrst full
monlh payrnent of Base Monthly Rent due lrcreurder, plus any lnltlal parlial montffs Base Mmthly RenL
S.8 Tsnant's Audlt Rfihts, lf Tenant dlsputes he amornt of Buldkrg OperaUrg Expenses
set forlh in the Operatlng Statement ddivered by Landlord to Tenant for a parlbuhr Expense Year,
Tenant shall haw tha rlghl at Tenent'8 cost, after reasonable prior uritten ndice given to Landlord within
one hundrsd twonty (120) daye after Tenanfs receipt of an Operating Statement to have Tenant'e
authorized employsss or ag€nt6, irrcluding any Accountant as Bet forth belour, revlgw betveen 9:00 am
srd 6:fi) pm, at the ofrceo of Landlord ln Bobe, Haho, where Lardlsds books and rscords for lhe
Property are tept. Landlord's books End records conaennlng the Buildirg Operathg Expenses set forlh ln
suc*r Operatirg Statement; provkled, how6v€r, Tenant shall have no right to conduc-t sucfi revierv, have
an audlt perbrmed by the Acco.lnbnt as desoibed below, or obJecd to o othendse dlspute tfre amount of
the Buildlng Operatlng Expenses eet forth ln any such Operating Statemonl unlsss Tenant notilles
Landlord ln wrlling of such oblecfion and dlepute, comdet€s ouch rwlew, and wlthln nlnety (90) days after
Tenant exercises lts atdlt rlghts h acccdanca wih tho provlslors of thle SeciJon, has the Accountant
oommence and crrndete such audlt (the'Rsvlew Perlod"); provided, furtrer, that notwltrstarding any
sucfr timdy obpctbn, dispute, revlchr,, and/or audlt and as a conditbn pacedent to Tenanl's exerclse d
Its right of objection, dlspute. revlew and/or audit as set forth ln lhlg Secton 3.8, Tenant shdl not be
psmitted to rry{thhotd peyrnont of, and Tenant ahall timdy pay to Landord, the amount of Addltlonal Rent
shown ln the Operaflng Statement as belng due ftom Tenant. Furthermorg Tenant adrnodedges that
Landlord's conbacts wih oertaln servlce prwldets prohlblt thosa contrsB lrom belng shared wlth
tenant6, ard that euch contracts therafore shall mt be provlded to Tenant durlng an audl[ but thls
exclusbn shall not operate to deny Tenant accees to any relevant lnvoblng arlslng ftom euch conhacls I
not llkoryEe confUenthl. ln connedlon wlth any euch rwla,v by Tenan( Landlord and Tensnt shell
reasonably cooperate v,rlth egch olher so fiat sudr review can be perfomed pursuant to a mutually
accap$le sdndule, in an ex@ltlom manner and wi[tout undue interference wlt]r Landlord's operaUon
and managnrnent d h€ Bulldlng. lf Tenant deeires to have suctl audlt conducted by an hdependent
certified public accotrntlng flrm whle}t has not prevlosly repreaented elthor party, and whbh ls sdected
by Tenant and reasonSly approred by Landlotd (the "Accountant"), th€n the resultr of such eudit by
th6 Accounhnt conducted ln accordance wtlh the provlsbns d hle Soc,tlofl 3.8 ehall b€ flnal and blndlng
upon Landlord and Tenant (absent fraud or mathematical enor). lf tuoh eudlt revsels that Landlod's
Operatlng Sbtement has wedrarged Tenant or Tenant ha underpald Lendlord, wlthin lhkty (30) days
after lhe results d suoh audlt are made avallable to Landbrd, Landlord or Tenant shall rslmhree tha
ovor or understated amount, as appllcable. Tenant agrees to pay the cost of suoh audtt unless the audlt
revealed that Landlord's calculation of Tenant's Share of Bulldlng Opording Expenses was overstated by
ffve percent (5%) or mae. ln whlch case Landlord shall pay lhe cots of such audlt. The failurc of Tenant
b tlmdy obled theroto and requeet an audlt arxl/or the failure of Tenant to tlmely have th€ AccounEnt
conduc-t and ornplete the ar.tdit as prodded aborc shall be condusivdyd€amBd Terunfs apryovalof the
Operatlng Staterner[ In queedon and the amount of &r[ding Operating Expense ehorn thereon (ard tha
amolnt due frqn Ternnt as shorn thereln). ln oonnec{on wllh any revbw and/or audlt conducted by
Tenant pursuant to thls Sec$on 3.8, Tenant shall keep, and cause all of Tenanfs employees and agenG
and the Accountant to keep, all of Landlord's books ard recorde and the zudlt, ard the results thercof,
strictly conlHern-al, and ln conneclftcn lherewlth, Tenant shall cauae suctr employcee, agBnls and the
Accountant to ex€cute Buch contldsntlallty sgreemonB as l-andord may reasonably requlre trbr to
conducllng aoy such ranlal and/or audll.
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Ar{ldc 4
USE OF PRETII8E8 AND COTUOT{ AREAS
4.1 Permltlod Uac. Tenant ehall not uee tre Pnemlees, nor permit lhe same b be used, for
r other lhan the Ponnltod Use set futh ln Arllde I above. Tenant shdl not use, nor psrmit
Party to use, any portlon of the Common Areas excepl to the ortent expressly permitted
any purpooe
any Tenant
under Sec'tlon 2.1(B) abore.
4.2 Gcncral Llmltatlone on Use. Terunt shall not do or parmlt any{hing to be done in the
Premlses, or do or permlt any Tenant Party to do on any other part of ttre Property, wtrich (a) lnterferes in
any materhl respect wilh he uEe, occupancy or quiel enJoyment of any olher tsnant or octupent
(lnclrding Landlord) of lhe Propety; or (b) @erdlzss the sbuc{ural intssrity of.the Bulldlng tr Gauselr
damage b any part of fie Prqmlsoo or any othar part of the Property (except for damage to the Premlsee
that b a nocessary componett of Alterations that Tenant b permltbd to mako to the Premlses under the
tsnrs of Secforr 6.1 belo\r, subiec{ to Tonant'B repalr and lrdemniicalion obllgtbns under lhls Lease).
Tenant shall nc,t operato any equlpment udhla Ue Prembes wtrkh does or could (l) lnJure, vibrate or
shake lhe Prcmisos or Buldltrg, (il) damago, oretuad or lmpalr lhe eficlent operation of any electrical,
plumbhrg, haallng, venlflatlng or ek condllhnhg systems wltrln or senridng lhe Pramlses or Bulldlng, or
(lll) damagp or lmpak the sfiiclenl operation d the eprlnkler systan (lf any) wllhin or servlciing the
Prembes or Bullding. Tenant shall not plae any loads upon the lloce, ualls, cdllng or rcof systems
uddch ould endanger the str.stural lnbgrlty of the Buildlng c damage lls f,oors, foundations or
supporling Btructral compoflsnto. Except s may be permltted underSecUm 6.1 belor, Tenantshall not
install any equignent or antennae or maka any penetration of the 6rt6rb uralls or roof of lhe Bullding.
Tenant ghdl not place any €xploshro, flammaHe or harmful fluids q waste mater"als in any of he
drainage sysbms of the BuIdirB or the Pnoperty. Tenant shall not 6dn or dlscharge any flulds in the
landscaped areas or acrpss the paved areas d trhe Property. Tenant shall not tlse any cf he C,ommon
Areas for storega of ltg rmtedah, supplies, Inventory or equhment and all such ltems shall be stored
withln the Prcmlsos. Tenant shall not mmmit nor permit to be conrnfttod (by any Tenant Pady) any
uaste or nulsance in or about lha Premlses or any other part d the Prcpsty. Tonant shall not do or
permit anytrlng to be done on the Premlses, r do or pormlt any Tenant Party to do m any other part of
the Property anythlng, that constilutes a vldatlon of any prmit, approval, aulhorlzatlon or LawB lncluding,
any permll, approral or althorlzatlon rdated to ilazardous Mat€rials, air emlselons, slotm water
dlscturge, s€wagp dlscharg€ or waler dlscfialgo (lncludlrq any perml, 4pronl or authorization ln favor
of or held by Lsndlord).
Tenant shall not use heat{pneratrg madtlnes or machinee oltpr than normal dflce mmhlrcs
(sucfr as d€Bkbp computors, laptop computers, cornputer ss'vtsrsr communlcations equpmcnt
photocoplers, cornputer prlnters, scantl€r8, fax macfilnee and postage met*t), or equlpmant or lbhtlng
(other than building standard ligHs), h ttte Premlses, lhat may afrect fu tempenature oherwlse
malntralned by the ak cordittonlng syetem or hcrcase he noed fot uats normally funrlshed for lhe
Premises by Landlord pursuent to the terms of Sectlm 5.2 bdoir. Tenant's office equlpment electrlc
loads shafl not exceed 4 watg per usable square foot of the Prernlses (e,rdudlng lighting and alr
condlUonlrg).
Landord rcpresents hat Tenanfs cell c€nter operatk n ls nd a prohiblt€d use d tho Premlsee
and does not conrpete wlh L"andlord's operathns. Tenant ackndrrledgw and agrees that lhe Premlses
ehall not be med for any purpo$ or client whlch compebe tJrdth Landkrd's businoos oporatlons in sales
and/or sawlces related to conputer systems and equlpment, lmaglrg and plnUng, andls accessories
and supflies ralabd Opreto.
4.9 ltolac and Embrlons. AII nobe gonerated by Tenant in lts uso of the Pr€mlsss shall be
conllned or muffed eo that lt doas not lnterfere wilh or dlsrupt the bushesses of any d the othor Elants,
occupants (lrdudlng Landlord) tr us€rs of tte &tllding. All dust, fumes, vapors, odfis and olhcr
emlssbns genoratcd by Tenanl's usa of lhe Premlse stdl compty wlh all lsr,w and shall be dlsslpated
and octra,rsted fom tte Prsnlses h accordance with dl Laws and sourd €orhoflmental pracdccs and so
as not to d€ata eny hed[r or aafefly hazarG or dlsrupt or lntsrfure wfrt lhe opera0ons d usos of any of
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the otpr tenants, ocorpants (lncludlng Landlord) or us€ls of the Property s caus6 any damage lo suc*r
Persons or to the Property.
4,4 Prcmber Condltlon; Wlndow Coverlnp. Tanail shall keep lhe Premlsea ln a cleaq
safe and neat condllkrn. lf the Prernhas have wlndoum, Tenant shall not r€movo bllnds ftonr euch
wkdors or otheruise nilnow or modlfy any wlndow coverlngs orls0ng or instdled by Landlord ln the
Premises.
4.5 Parklng. Tenant ohall not at any time park any auhmobfle (lrrcluding any SUV or trudr)
or other vetticle on the Common Areas or any other part of the Property, or permlt any Tenant Party lo do
tho same, o<cept to ths exbnt thla Sectbn 4.5 expressly permib T€nant or any Tenant Party to park ln
the BulldlrB 8 Parkhg Lot, Commenchg on lhe Term Corrnenoement Date ard oonllnulng unlll the
o<plratlon or 8oonsr t€rmlnatlon of thls Lease, Landbrd haeby granE to Tenant and any Tonant Party
the axdusive ridrt to uso without addltional charge throughout the L€esG Term all pafl<lng speces kr the
&rlHing 8 Pa*lrg Lot wtrich shall be a rninimum of six (0) parklng sp*6s ps,r ona lhousand (1,000)
renEble Bquare f€ot of the Premlss for Tenant Pany parkhg ("Temnt Parklng"), a0 sublect to and ln
accordance wllh ho terms of thls Lease. Tenant acknowledges ald agrcet &at he Tenant Pa*|ry
spaoos Tenanfs emdoye€s arc eriUUed to uae under lhe tsrms dthbSscdon 4.5 are unreserwd paklng
spao6 looabd ln the &rlldlng I Parklng Lot, and Tenanl's and iB empbyees'and vbltors'rlght to use
such parkiq spaaes h cordlUoned upon Tenant abHlrg by all reasomble rules and regulations wtrich
are presaibed by Landlord from lime to Ume for the orderly operalbn and use of the Bulldlng I P*klrg
Lot (lhe "Parklng Rulcr"), and Tenant shall cause lts employees, vletors and all other Tenanl Partles to
comply wlth such Pa*lrp Rulas. ln the event of a conf,lct beftreen lhe Parklng Rulos, thls Section 4.6
and/or any dher Secllon of thls Lease, such confllcts shdl be resdved as follo,vs: thls Ssctofl shall
govern orer he Parking RJes and any other Sec0on of his Lease, and lhls tease shall gtn,ern over he
Parklng Rulas. The dghb granbd to Tenant in thb paragraph shall terminate automdically and wlttput
no0ce upon lhe expkatlon or sooner ternlnation of Etis Lease.
Tenant shall not permlt anyone other than a Tenant Party to park in the tullding I Lot. Tenant
slull not park on the Gommon Areas or any other part of the Roperty, or perrnit any Tenant Party to do
the same, any recreational vehicles or non-operaUng vehhles. Teilant assumee full responelbllity for
conrplbnce by eaoh Tenant Party wrlh the provlskrns of thls Sec.tlon 4.5 and he provislons d Scctlon 5.7
bolotr. lf Tenant or any Tenant Party parks or othemlse locabs anyvehbb on the Property ln vlolalion
of sucfr pror/bbns, then Landbrd may, upon writen notlce to Tsnant givlng Tenant one (l) day b ramore
sudl vtshiclds), charse Tenant, as Addltlonal Rent and Tenant agrees to pay, es Addltlonal Rent, Fifry
Ddlars ($5O.OO1 per day for each day or padlal day lhat e*h sufi vehlde ls so parksd wlhln the
Property. Sairl cfrargs ls ln addi0on to, and not in lleu of, any other remedkx available to Landlod under
thle Lease or olhenrlse, and may be changed ln Landlod's sole discrethn upm ten (10) day urltten
notico b Tcnant. Landhd rasoruas the rlght to grant easemontB, licenses ad other aocess and use
rlgfrb to any othe Persons for use of ths Bullding 8 Parking Lo[ prolHed that sudt grants do not
materldly intsfere with Tenant's parklng rlghts sel iorth ln thls Sectim ,1.5, krdudlng, wlhout llmltatlon,
lhe requlred mlnimum pa*lng ratlo.
ff requhed by Apdicable La',w (as deflned ln SecUon 13.12(b), belour), Lardlord may astSn any
pa*ing spacast make al or a porllon d tuch spqleo reented andlor hottute an attendant asslsted
tandem parkkrg program and/or valet parklng prcgram. Landlord speciftcally rasenna lho rlght, from tlme
to tlme, to drarue lhe sbe, conflguratlon, deelgn, layout, localion ard ell o0rer aspects of ltte Buldhg I
Partdng Lot. Wilhout llmltlng the gnnerality of he foregoing, Landlord may r€droo lhe parklng avallable in
a lot or lots sltuatcd on ons slde of lhe Buildlng, prodded that Lardhrd correllpondingly lncreasee the
perklng avalhbie to Tenant ln the parkirq lot or lob on anolher slde of and adFcent to the'Bulldlng.
Subject to [re other provbbns of thls Leass, Landlord agnBss not to volunbrlly reduce the number of
unreserved perklng spaoar made avallable to Tenant under thb S€ctbn 4.5 bslow a ralio of eix (6) p€f
one thaneend (1,000) rentable sqJar€ feel of the Prcmlsee e:c€Pt es may be rcqulred by Larv or ln the
event of any casualty, condemnation or Force MaJeure evenl that resuhs ln lhe loss d parkhg area withln
[re Bulldin! 8 Parklng Lot. Fur$rennorc, Tenent acknowledges and agrees that Landlord, from time to
ttne, may,
-w{tront lncunlng any liablllty to Tenant and wfrhout ary abatanent of Rent under this Lease,
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006010r2.2
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temprarlly close-off s resflct ace,eos to the Bulldlng 8 Parklrq Lc( provided lhat Landlord tempc'arty
relocateo Tenant's parkhg spaoso to dhs parklng structuros andhr surfece parklns areas wlthln a
raascrable dlstance from f:a Bulldirq. Landhrd may ddegate lts responslblllUes herdJrder to a parklng
op€rator ln whbtr case such parklrU operator shall have all lhe rlghts d conhol attrhuted hereby to
Landlord. Tha unreserved parklng spaceB made available to Tenant purEuant to tlSs S€clbn 4.5 are
prwUed sdely for use by Tenant Parlies, and the rlght to use sudr sprcea shall not be eold, asslgned,
subllceneed or othervlse transfened by Tenant wlthorlt Landlord's plor wrltten concent, whlch may be
dhh€ld by Lardlord ln lts eole dlscretlon. Landlord shall not bo liable tur any loos, harm, lnjury or
damage caused to Persons (lndudlng, wlthout limilation, any Tenant Party) uslng the Bulldlng 8 Parking
tuea or to sutomob[es or their contents or any other property th€fiaon, o(cspt to he o<tent caused by
Landlord's groes negtlgenc,s or udllful mlsmnducl, and Tenant agrees that ancept as set furlh
immedbdy aborc, such Pe6ons, vohbles, oontenb ard property shall be ln the Bullding 8 Parklng Area
at tlp sole risk of Tenant and such Persons. Tenant acknodedgos ard agrues that any parklng Fsoss,
cards, badgps or keys (if any) provlded to Tenant to allorr for uae cf fre Bulldhg 8 Parklng Area are the
property of Landhd and shall be fleUrned to Landlord upon lho oqhatlon (x sotxrcr tennination of his
Lease. lnoperaUva p8$6, cards, badges or keys will be replaced at no charge, but lost pasoes, cards,
bqdg€s or kep wlll be replaced al a commerdally rcasonable co6t estaHbhed by Landlord from 0me to
tlme.
4,6 Slgnr. Tenant sh€ll not plrce or install on any porlion of the Premlser any slg'n,
advertiaement, banner, placad, or pldure which is visibb ftoln ouhlde the Premlses unlees and unll
Landlod shall trave approved ln writing, in its sde discretion, tho locatm, slze, conlant, dclgn, method
of atbdrment and m6t6rlal to bo used in the maklng d suctt slgn- E<ept as prwilled h the preceding
ssntenca, Tenant shall not place or lnetall on any portim of the Bulldhg ot 6ny other pafi of the Prop€rty
any glgn, adrrertieement, bannetr, placard, or pichrc unlesa and un$ Lendbrd shall have apprwed in
v,,riting, in its sole dlscnetlcn, lhe locauon, size, contenl deslgn, method of attachment ard materbl to be
used ln the making d such sigrr. Any sign or sfins wttich Tenant may desire to be lnstallod, if and when
approved by Landlord, sMl be lnstall€d at Tenanfo sole coat and elgense and only ln strlct compllance
with Landlord's appoval, uslng a Person apprwed by Landlwd to lmtall same. Landbrd may nemova
any signs (*rhbh have nd been approved ln unltlng by Landlod), adrettlsements, banns6, plrcards or
plctures so daed by Tenant on or wlthin the Premlses, the exlarh of tu Building or any olher parl of
lhe Property and dlargn b T€nant lho oost of sudt rernoval, togoher wfth any clsts lncuned by Lardlord
to repah any damage ozused thereby, lruCudlng any cost incuned to restre lhe surfaoe (upon whl& auctr
sign was so ahted) to ltg odglnal condldon. Ienant shall remorc dld Tenant's slgrs ln the Premises,
repdr any damage causad thereby, and r€Bbre lha surfacs upon whldr the slgn uas affrcd to lts orlglnal
conditbn, all to lsndlord's reasonable sallsfaction, upon the oqiratbn or sotxrcr termination of thls
Leasa The dghb and oHlgodons of the partfuc' under the lmmedhtef pecedlng two (2) ssntences shall
snwlw the expiratlon ttr ailnrier termlnation of lhls Laase. i.lohdhotandlng anything to the conUary
her€ln, the etse, appearance, ard location of any eignt comtuc{ed r lnshlhd on the Pnoperty shall be
subFct lo th6 raquiomonts cf all apfllcable Lare and any Prlvate Restrbtbns. Tenant shall be entitled
to place company slgnage on the Bullding monument signagp afaa lnar tn Buildlng enky doors at the
rrvest end of tre BrIldlng. Tenanl shall not have any lisllng on the Roffiy monument $1!n or any ohe
slgn tn or about tre &rlldlrg other than the Building moflument sign refererrced ln the lmmedhtely
praceding senterrco.
4.7 Gompllanca wlth Laws and Prlvate Rocblctlom. Tsunt shall ablde by and shall
prompgy obserye and oompty wllh, al its sole expensa, all Laun end Prlvete Resblctons reepecting the
conduct of Tenant'e buclnass al the Premises, wortd&g conditions or sdcty at the Premlses,'lMustdal
hlglene at the Premleos, envlronmontel mattofs at the Prsnises, or lhe repair, maintenanoo, us'6 or
oo6Jp61tcy d tre Premhes, Bulldlng or Proffiy lncludlng, wlthout llmltathn, all Laua pverning the use,
storqe, trandlirB, releasa, disdrarge, tramporlation or dlsposal of Hazardous ilaterlale, ard ghall
deftrd, krdemnlfy and hdd Landlord harmlese fronr and agalnst any Adverse Consequences resultlrB
fiorn Tenants fallure to abide, obaele, or comply wiEt sttch Lans or Prhab RssEbtions. The provlslons
of this Section 4.7: (l) shall not be deemed to limit Landlord's compliance obllptbns under Secilon 2.2;
and (ii) shall survlvs the explratlon or Booner termlnaflon of lhis Lease,
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4.8 Compllanco wllh lnsurance Rcqulruncnb. With reopsct to any lnsurance pdlcles
requhed or permltted to be carrlad by Landlord ln eocordance wlth 0t€ pro'/'islons d lhle LeaB6, Tsnant
shall not corduct rpr permlt any Tenant Party to conduct any actfullies nor keep, store or u6e any ltem or
hing wilhln ffre Pramhes, the Bullding, the Gommon Ar6as or the Prcpqty wtrloh (a) ls prohlblted urrder
ths tenne of any such @hies, (b) ls reasonably likely to result ln the lemlnation of the coverage alforded
under any of euch polloles, (c) ls reasonably llksly to glve to the lrsunncs canier lhe rigfrt to cancel any
of such polldes, q (d) le reeeonably llkely to cause en ancnrase ln the rates (orer standard ratea) darged
for the coverage afforded under any of euch pollcies recognlzlng lhat Tenant wlll uss Hazardous Materials
in aeordarm with lhls Lease. Tenanl ehall comply wlth all regulremenls of any insuranoe company,
lnsurarrce undenrtrller, or Bosrd of Fire Underurlters that are necessary b malnlaln, al standard rates, lhe
insurance covoragps caniod by elher Landlord or Tenant pursuant to lhis L6ase.
4.9 landlod'a Rlht to Enter. Landlord shall be permtM, upon prbr wrllten notlce of at
least twentpfour (24) hars lo Tenant (except that no mtbe shall be tequhad ln casE d emergency or
frre povlslon of regular cleanlng servhes to the Premises), at any time arrd frorn Ume,to-tlme durlng or
after Nomal Businoss Hours, to enter lhe Prcmhes, and to lnue government ernployeee or
repreentatives and Landlords agents, employees ard cantactors, enter lhe Premlsee for the purpose of
(a) lnspecling he same; (b) determlnlng Tenant's comSlarrce wlth he terms d lhb LsaBo: (c) shoMng
the Premisee b prcspactive pwchasere, morQEg€os or bnants (wilh resp€ct trc tenants, only durlrq the
last nine (9) months d the Lease Tenn); (d) making dleralhns, addtlons, restoratlons or repahr and
having acc€6s trc ul$lUes and servlcee (ircluding dl ducts, oondulls, rhers, and aoceBs panels (if any),
whlch Tenant shafl not obsUwt); (e) provldlng deanlng s€rvloos to he Premls€s as requlred by the terms
of thls Lease; (0 performtng any othar obl[athn of Landlord rcqulred by the termo d thls Lease; or (g)
perfcmlng any of Tenant's obligations after wrltlen rptlcs when Tenant has falled to do so withln the
appllcable cure perlod, lf any, aet forfi in thb Lease. Landlod shall also have the rlght to entar he
Premlses durir€ or after Normel Buslness Hours for Brrpos€s d supplykq any malntenanoe or saMces
agrocd b be supplhd by Landlord ln thls Lease. i,lone of the for€gdog ontrl€s lnto the Premlses shall
under any drctmstarces be conslrued or deemed to be a forclble or unlaufill enby into, or a detalner ot
lhe Prmrlsos, or an evidion, ac{ual or conelrucllve of Tenant from the ft,embes or any portion lhereof,
and Tenant 8ha[ not be sntltH b oornpensatlon or any dimlnution or abalement d Rent for any
inconrrenlenoe, nuisarrce or discornfort cauaed thereby. Leldbrd, ln exercising ils dghts under this
Sdion 4.9 shall, to he exteot reasonably practcaHs under the circumstanceor uso roasonable frorts to
mlnlmlze lnterlerenco wlth Tenant'e opaatlono ln the Pre*nises, provHed hat ln an emsrgoncy Landlordq Persons authortzed by it may entor and use the Premlses s,lthoul t€gtrd to mlnimlzlng interfur$ce.
tfurlng such Umee as Landhrd, lts agenE or oonhactors are preeent ln he Premlses pursuant b the
pmvisions d frls Lease, Tenant shall (and shall cauee oech Tenafit Parly b) reaaonably cooperate wlth
Landlord, lts agpnts and contractors so as b facllltate lhe exscise by sudt persorc of Landlord's rlghts,
or the perfunnance by euch persons of Landlond's obligEtbns, urdet firls Lease and shall not lnterfere
ther€with
4.10 tlre ol Gommon Aruar. Tenant shdl at all times keep the Common Areas tr6e and
dear of Tenant's and/or any Tenant Pa(y's materials, equpnent deHs, Uaoh (except wlthin deslgnated
existing erdoced trash areas), inoperable vehicleg, and dhar lteme whhh are nd spedltcally poml[ed
by Landlord to be stored or located thereon by Tenant. lf unauthqized Fersone are uslng any of the
Common Ar6s by neason of. r under claim of, he ereress s fndbd au$ortty or consent d Tenant,
lhen Tenant upon demand of Landlord, shall resfain, to the fullet edent lhen allowed by Law, suoh
unauthorlzd use. Lardlord res€rves the right to grant @sements eld eess dghb to others for use of
the Conrmon Areas and shall not be llable to Tenant for any dimlnufon an Tilant's right to use th€
CommonAreasrearesull
4.11 Envlronmantal Prctoctlon.
(a) As usd hereln, the lerm "Haardou tlat€rlabl shall maan any toxh
or ]razardq.s urbstanca, material or uraab or any polutant or lnfec0ous, fungEl or radloactlve mat€dal,
induding, hrt not flmltsd to. thoee subotanceo, materlalg or wastos rusiated ffirfl or ln lhc future under
any of t[re fulbnring stahrt€s or regulatbns, ard any of those eubstanoes lncluded w{lhin the deflnlllone of
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'hazerdorc substance', 'hazardous matelals', 'hazardous waste','hazadous chemiel substance or
mlxtttrB', 'lmmlnenUy hazardous chemlcal subetance or mlxtureo, 'toxic subshnce6', nhazatdous alr
filutanl", 'toxic pdlutanf, or 'solid uaste' ln the (l) Compretrnsfue Envlronmental Response,
Compensatlon and Llabllity Act of 1980, as amsnded by tre Superfund Arnendments ard Reauthorlzalbn
Act d 1986, 42 U.S.C. SS S01. el eeq., (il) Resanrce Coreemathn and Recovery Act of 1976, 42 U.S.C.
SS 6m1, €d seq., (lll) Federal Water Pollullon Conln* Act 33 U.S.C. $S 1251, et seq., (tu) Glean Air Acl,
42 U.S.C. SS 7401, et seg., (v) Toxlc Substance Control Act, 14 U.S.C- SS 2601, et seq., (vi)
Hazardas ll|atcrbls Transportation Act, 49 U.S.C. SS 1801, et eeq., {vll) statutet adopted fiorn time to
tlme by the State of ldaho; and (vlll) any regnrlatlors, rules, decrses or qders issued ptrreuant to any ofsaid Laws or replacamenls or ameodments [tereof. "Hazerdous Hatedds" shall abo lnclude
substanoes, materlals, wasteo or emlsslons wttich are, or in lhe fufure become, regnrlated under Laws for
the protection of human health or tha envkonment and ehall also lndude, wlthor.rt limltation, (A)
trichloroethylene, tebachlorethy'ene, perchlorodhylene ard olher ddorlnated sdvents, (B) sude oil.petrdeum products or fracllons thereot (C) asb€stos, (D) pdychlorinated blphenyls, (E) flammable
explosives, (F) urea formaldehyde, and (G) radloacilvo materials and msts.
(b) Tonant shall oomfly with all Laue 0ndudlng wltho.rt llmltauon all
rccordkeeping and reportlng requdremente) rdating to the etorage, use, handlirq, lransportation, rslsaee,
discharge or dlsposal of Heardu.ls Materials by Tenant or any Tenant Party, and shall also comply wllh
Landlord's exheust, etorm unater and uraste uater dlacharge and reporthg requlremenls ("Landlod'r
Dlechargo Requlrcmmtr"). Without limltation of the foragolng, Tenant shall not cause or contrlhlte to
any viobti,on of any permll approval or other govemmental authorizatlon or resJhoment applioable to
Landlord rdating to the Premlaes, Bulldlng or any olher part of the Propefi Tenant shdl not store, use.
handle, transpqt or dlspose of any Hazardous Materlals, 6xc6pt for [pes and quanti$es of Hazardors
Materlals consistfft wlth the typeo and quantities of Hazardous Mabrials $pically used in lhe normdq)urs€ of Tenant's opeallons purlBuant to Tanant'g Psrmittsd Use (the "Pcrmltted llaterlalc"), provlded
hat Permltted Materials (a) wlll al no fime ondst o{ or conhin infEdioue agenb, explosirres,
nanomaterlals, nanopartldes, mdioactive materlals or radloactfue particles, (b) will at all Umc be used,
stored, handled, transported and dirposed of by Tenant in compliance wllh all apdlcable Larc, and (c)
will not vlolate any of he olher terms or prwlsions of Bris Lease tr oause an applhable llmll for tre
Building to be orcseded. Landlord may withhold its conseril to all other g/pes or quantizes of Hazardous
Materlals ln Lendlord's sole and absolute dbcreUon, prwlded such l-bzardous MaterHs are at all timss
used. stof€d, handled, lransported and diapoeed of ln comflhnce wifi all applicable Laws (tte(Perml(ed ltstotiab"), ln no event shell Tenant dlscharge or permitany Tsnant Party to dlsdrarge any
Hazardous Mabrials lnto lho othaust, plumbing or solvagts slrctems ol lhe Building or any o&rr part of
the Pmperty. Tenant shall properly dispos€ d, ln com$ianoe w{lh LauB and Landlord's Dsoharge
Requkemenb, all tlazardos Materiale, and all equlpmenl or items containing Hazardous Materlals.
Tenant shail not phce or diepose or allour any Tenant Party to place w diepoe€ d any Hazardor
Materlals or equlpment or items contalnlng Hazardous iiatedals in tsash receptades at the Prernbee a
elsetvtrere on the Property. Tenant ehdl prwlde Landlotd with a lbt d and codes of all materlal s#ty
data sheets and other documentation rcqulrsd under any applhable Lanls in connedlon w{th Tenant's
use, sbrage, handllng or dlsposal of Permlted ivlatedals as ard when such documentalion ls pro&ed to
any regulatory aulhority and at suoh olher time or Umes as Lsrdlord may request, Tenanl shall prompUy
prwtse b Landlord, upon Landlord's request, any ard all coopeation, lnforinaton and records Ebt€d to
Tenant's Fhzardous Materbls, equlpfltont and operatbs as Landord may requlre to comply wllh
Landlord's oillgntbns under laur or any govsnmental permlt, aulhorkatlcn or approval appllcable to the
Property. Tenant shall also canse lts appropiate ernployee or employees to attend any fakrlng seslona
conduoted by Landlord with regard to Landlotd'e obrm water eytEn, and Tonant shall also train its
ernployeeo and conbadonB wlth regard to the raquiremsnts cf Landhd's stom water eyetem. Tenant
ehal be eoldy r€spons[re for and shall defend, lrdemnfi and hld La]dlord harmhss fiom and against
all Adverse Comequenceo arlsing out of or ln connectbn wilh Ote uso, storag€. handllng, transporlathn,
ralease or dlspoed of Hazardans Matarlals by Tenanl or any Tenant Party or Tenanfr fullure to comply
wllh any provieion of [rla Sec-tlon 4.11. Wlthout llmlUng the foregolng, if any Hazardous Malerials stored,
ueed, trandled, transported, rdeased or dlspooed of by Tenant or any fenant Pa(y (oollectlvdy, "Tcnant
Hazardoue ti.t!rLb") results ln contamlnatbn or deteriorallon of ah, water or soil at or under the
Premlses, Bulldlng or Property, then Tenanl shall prompily ttotlfy Landlod and take any and all actons
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necossary to abate and clean up uch contaminalion or detedoratlon ln oompllancs wlth all appllcable
Laws and olhenvioe b Landlord'a satisfactbn (but tho furegolng ehall ln no evont be deemed to conslltute
permission by landlod to allow the pr€senc€ d srrctr Hazardous Mataiale).
(c) Upon the exdration or Boster tsrmlnatlon of this Leaee, Tenant, at its
sde e:g€nse, shall cause all Hazardous Matsdals release, al on, ln or about lhe Premhae, &.rilding or
any other psrt d the Property by Tenant tr eny Tenant Party, and al! lrstdlatims (wtrdher lnterior or
o(Hlor) mada by or on behalf of Tenant relatlrB to the storage, use, dlsposal or transportation ol
Hazardous Matethls, b be rernoved fiom the Property and trampoted for uae, slorago or dlsposal in
compllance with dl appllcable Latns. Prlor to the epiratlon or soonq terminalion of thls L€ase, Tenant
shall obtah ftom all appropftte gowrnmentel euthorltles all permlts, approvals and degrancos
necessary for the closure of Tenant s operalions at ths Prembe.
(d) lf at any Um€ durirq the teaee Term Landlord has a reasonaUe basls hr
suspecting ths prssence d Ha*dous Materials {other than Permlted Materlals) h ttp Premlsee or ln
connectlon wlh th€ purchaee or llnanclng d he Bullding, then, subjecl to reasmaHe prlor rrrrltten notioe,
Landlord thall have fte dght (but not the obllgation) b enter 0e Pr€mls€s to @rduct tests to determlne
whether thore has been any rdease of Hazardous Materisls in the Pomises. Such teotlng by Landord
shall be at Landlord's sda upense unleos Landlord hm a reesonablo basls for suspec-ting and conftrns
the presence of Hezad6us Materlals (other than Permitted Materlala) ln the Premlses that has been
caused by Tenant or any Tenant Party.
(e) Terrant agr€ss at all times to cooperats with lto reasonable
requlrements and recommendations of gwemmental agencbs egulating he protecUon of he
erwkonment as lt prtains b Tenant's rce of the Premlseo.
(0 l-andlord hereby rsprssonts and rrorants tc Tenant that durlng
Landlord's ovnershlp of the Bu[dlng, the Bulldlng has been used eolely for oflice use. vdrich lrrc'ludes the
use of those typ€ and quantitleo d Hazardous Materhls typbelly used ln the normal GflJrsG of offbe
opcrations. Lardlord shall bo sobly rmponslble for and shall dsf€rd, lndemnifi and hold Tenant
harmless frcnr and against a[ Adverse Coneequencae arlsing out of or ln conneL{on wlth the uss,
sttrago, handllng, hanspoilatbn, retease or dltpoal of Horardous Materbls wlthin the Building by
Landlont or any emfloyee, agpnt or contrdor of Landlord prior to the Tsnn Commerrcement Date, or
tandlord's fa$ure hersafrsr to comply wlth any pro&lon of this Seotbn 4.11. Wlthout llmllhg the
foregplng, lf any llazardoue Materiale sbred, used, handled, transported, releas€d or dlspooed of by
Lardlord or arry emplryre, agerrt or conbactor of Landlord (cdlecffwly, "t ndbrd l{ardou!ildrrleb") results in contamlnatiol or deterioratlon of alr, water or toil at or under or aromd lhe
Premises or fuildlng for whlch rernediaUon is lhen requlred urder applhable Laws, then Landlord ahall
promptly notfi Tenant and take any and all actlms necessary to abate and olean up euch contraminalion
or deterioratlon ln mmpllarrce with all appllcable Laws ard otheruise to Tenanfs reasonaHe satlsfactlon
(but the forasolng shall ln no srent be deom€d lo constltute permlsslon by Tenant to allor the prss€{loe
of sr.rch Haadotr Mabrials).
(S) The prorlslone of lhls Ssstlon 4.11 shdl survive the expkatlon or s@ner
termination of lhls Lease.
4.12 fuguHlons. Lardlord shall haw &te dght from tlme to time to eetebllsh reasonabl€
rulee and regulatlms (indudlng amendments and/o ddltlone thereto)repectng the us€ of the Premlses
and Common Areas and olherwlse for ha care and ordedy manag€ment of tp Property (collectvely the,,Ruloa and ReguHlonr"), prodded hat same ghall not lncrease Tensrts frranclal obllgatbns under
thb Lese, materially affed Tenanfs rights or P€mlt€d Use ullder hb Lease. Upon and aftsr the
fifteenth (15') day afrer dsfiv€ry d a oopy of such Rules and Regulatims to Tenant, Tcnant shall comply
wlth (ard cauee dl Tenant Partlee o oomdy with) surcfi Rulea and Regulatlone. Wlthqrt lknltng the
folegolng Tenant shaI cooperate wlth Landlqd's set0ng, inapecton and malntananoe of fira/life safety
equipmsnt and systems at Ure Premh€s and ehall compU wlth rclated rulee and dlrectivas, induding for
exemple. as to the evacua0on of tha Building whon flre/llfe safety danns ar€ trlggpred. A vblatlon by
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Tenant d suoh Rules and Regulatlons shall constltute a default by Tenant under tHe Lease, subJect tohe nolbe and cure provislone d Secilion 12,1(f) below. lf trere is a cordlld beh,veen the Rules and
Regulatlons and any provlslon of thls Lease, he pmvlslon d trb Leese shall prerrall. lendlord shall not
under any cFcumstancas be rasponslble or liabla to TenanL any Tenant Party or anyone else for any
vlolallon of he Rules and Reguhdons by any dher ternnt, occupantd user of trhe Property. A copy of
the lnitlal Rules and Regulailons estrabllshed by Landlord ls atacted trereto as Exhlblt 1D".
4.13 Rcs$vttloru. Landlord rossryss h€ rlght from tlme tr tlme O grant without the consenl
or lolnder of Tenant, suot easements, r[hts-of-way and dedications that Landlord deems necassary, and
to ceuss the recordatlon of prcel maps and rcstrlctlons, provided, hoi€\rer, Landlord agrgss to do so ln
8 menner that doas not unreasonably lnterfere wlth Tenant's a@Bss to or egr€ss ftom the Prernlses ln
accondancs u,lth hb Lease, Tenant agreee to execute any documents rcasonably requested by Landlord
lo effecluate any such oasoment rbhB, dedicaljons, maps or restidions.
4.11 Amcrloans wlth Dlsabllhiea Act. Except as provided below, Landlord shall be sdely
responshle for ensuring that thE Common Areas comply with tre nguirvnents of applhaHe bulldhg
codee ard the Ameticans with Dieablll$€s At{ (and all regulations prornrdgated therannder) (collecUvely,
th€ "AOA"). Tenant sha[ be solely responslble for ensurlng that UE Prembes comply wlth he
rsquiraments of applbable fulHlng codes and ft€ ADA. lf Tenant's partieular uee d tre Premlaes or
applicaUq lu aoy pennll or govalmental apprwal or the making of any alteratons or lmprovements to
thc Premlses by Tenant or any Tenant Party or any olhu part d lhe Pnoperty by Tcnant or any Tenant
Party shai tsiggar any obligation under applioable buildlng oodes or the ADA to upgrade or othembe
modit arry part of the Common Ar€ae, Tenant shall raimburse Landlord br lhe cost of suct requh€d
upgrade end/or ottrsr modlflcations r€guired by Laws wihln lhlrty (30) days after receipt of Landlord's
involce lherefor.
Artch 5
REPAIRS, iIAINTENANCE, SERVICES AIrID t TlLmES
5.1 Repalr and ltlaiilenance. Exoopt in tre case of damage to or destuctlon d he
Premlse q any other part d ttre Proporty caused by an act of God or other perll or rezulllrg from
condemrullon, ln whlch oase the prwhlons of Artde 10 or Article 11, as the case may be, shell confol,
th€ Frtes shall haw the follotdng obllgations and responsbilAks with respect to tha repsh and
malnterunce dthe Retnbas and Property.
(a) Tenald's Obligallons. Tenant shdl. at its sole oxpe,rse, keep and
maintsin ln good order, oondltbn and repah (i) all lnterlo portions d the Premlses includlng, uvithout
limltation, all electlcal wiring, cabllng, @nnectorc and fixUres located inside the Premlses and all htsior
walls, floors. ca$lngs, interior plate glass and dmrs locatsd wlthln the PrEmlses; (ii) all cabllng, elec[ical
wirlng, and @nn€otors, vrfiercver locatod, used to operate or olherwise sewlng on an exclusive baele any
equlpment madrlnery, flxtur€s, or other Tenante Proporty located wihin the Premlses or elseurhere on
the Property; (lll) any slteratlone, modiffcallons a lmprovantents mad6to lho Prcrnlses by Tunnt and all
Syatcrns ad Equlpment lnstalled by. on behatf of, or excluclvely fu Ienant and (lv) Tenant'a Property.
ln additbn, Tsrant dlall, at lts eole exponse, (a) provide janltorhl servloes to the Premiges ard (b) repair
all damago to the Premlses or any other part of the Property caused by lhe actMUes of Tenant or any
Tenant Pafi includlng but nd llmlted to otceaslve wear and tear, abuse and vandallsm, prqnptly
fdlorvlrp rrrrltten notce from Landlord to so rapalr such damage. tr Tenant sha[ fall to perfurm he
requimd mahtenance or fiall to make repalra requlred of lt pursuant b thls Section 5,1(a), wllhln tuonly
(20) days after Landlord prcvides Tenant with ncilloe d lhe rcquled mdnterwue or repains, hsn
Landlord may, al lts dectlon and whhout waMng any other nemedy lt may otherwise have under thls
Lease q at law or ln equlty, perform suofi maint€nanca or make gldr repaks ard charge to Tenant, as
Addltimd Rent" 0te costs rcasonaHy so lncuned by Landlord for sanc. A[ ghss rd0rln or a part d the
Prarnill€s ls at tre sole dsk d Tanant ard any hoken ghse shall promp$ be replaed by Tenant at
Tenante exp€nse wtlh glass of ihe same kind, size and quallty. All contadore and subcontsactors
engaged by Tenant to perform mahtenance or repaFs m the Prernlsolr or any olher part of the Property
shall be subJec[ to Landbrd's pfhr wrltten approrral, rct to be unreasonaUy wlthhdd, condluoned or
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delaysd for contrac,torg or subconlractorc performkg wa* lhet will not affec't any rbuctural componants of
Urc Buildlng or eny Syttsms and Equlpment, and wtrich may bs ri,thheld ln Landlords sole discre[on for
any wuk that may affet any etructural componenh d sre &rilding u any Systems and Equipmenl
(b) Landlord's Obllgatbns. Lsrdlord shall, at all tmes durlng the Lease
Tem, in a manner consbbnt wlh th€ standard maintalned by Landlord on the Tenn Commencament
Date, mdntaln ln gmd mndltlon and ropair: the fanndaUon, lloor slabe, roof stuctrrg load-bearlng, and
exterior walls of lhe Bulldlng; all exterior Buildlng windors; and all Systerns and Equlpment conelruded
or lrslallsd by Landlord on the Propedy other han Sy:terns and Equlpment lnetallod by, on behalf of
Tenant; provlded, hourever, that Tenant shall, at lts mle el(peose, repalr all damage lo the Prembes or
any oflrcr parl of the Property oaused by the ac{vltbs of Tenant or any Tenant Party. The provlslons of
Sris Subseclion (b) shall ln no way limit the right of l-andlord to charge to T6nant, aa Addltlonal Rent
pursuant to Arllcle 3 above (to the extent permllted under Artlde 3), the coots lncursd by Landlord in
ffiorming sudl maintenance ardlor maklng such repaire. There slull be no abatement of Renl and no
liablllty of Lardhd by reason of any lnlury to or intsference with Tenent's business arislng frorn he
making of any repalre, albratons m improvements in or to any portion of ha Building or Proparty.
5.2 Standad Tenent Servlcer. SubJect to Force MaJeure events, PreAnarped Shutdoln
Wlndoils, and lhe effoct of applicable Lawe, Landlo,rd shdl provide the fof,ortng servlces, unless
olherwhe irdlcated bdo,:
(a) During Normal Bualness Houro, Landlord shall povide heating and alr
conditbning to the Premlsss sufficlent to malnhln an irdoor alr tempffiture hereln between 8' - 72"
Fahrenhelt.
(b) Landlord shall provlde eleclrhal wfiing and related fadlldes so that
elec-tricity for normal offca uee may be supplied to tha Premlsos. Tstant shall not use ebcfb[y, nahral
gas, wabr or olher utllitbs or servlcee in the Premlses ln quantities that otceed normal ofllce usa
consFtent with Tenant'a Pcrmlttod Use, and at no time shall use d dectiic cunsnt ln the Premlsos
excoed he capacity of exlstlm fe€d€rs and risers to or wlrhg in the Premhc. Landlord shdl provlde
decblcalwlrtng and related factities eo thet electrlcity may be supplM to hs Premlss ln tfe amounts
prorided as d lhe Tenn Commencement Dab based on 4 watls per usable squar€ foot ln the Premlees
(exdudlng llgfitng and air condltlonlng). lf Tenant requires more ebsHcd capaclty ftan ls pmvlded to
the Premlses on he Term Cornmencement Date, Temnt may proposc modiEoatkns to the eleclrlcal
system serulng he Premlses to be made at Tenanfs sola ml and expense as en alteratlon under
Sstbn 6.1, belorr, subJect to 8ll of the terms and madtions thet€of, hduding wlthort llmltratlon Landlord
consent, and rcmoval requlnements, lf Tanant @nsumes more declrhfty than 4 watb per usable squarefot (excludlng llghtlng and air conditlonlng), Tenant shall pay the ost of suctr oxcoss electrlclty
oonsumptbn (ac detarmFpd by submeter lnetalled at Tenant's cost or as reason*ly determlned by
Landlord) to t-adbrd as Addltlonal Rent pursuant to Sectbn 3.2(d) abote. Landlord shdl have m
obl[eton to upgrade or modfi the e]ecHcal system serulng tho Premises or Buflding. Wlhout llmlhtion
of Landlord'e oher rlghb and remedles for Tgnanl's fallutp b observeor comply with the requlrements ol
thls Sec0on 5.2(b), shordd Tenant's use of ges, uater, decbicity andlor other ullllleo or sgn lcos exceed
the normat levds for ofice use as dettrmined by Landlord in its sde discrdlon, hen Tanant shall pay
Lardlord, as Addl$ooal Rent hereund€r, the cost of such otceeslve use (as reaeonably determlned by
tardlord) wittrln lhlrty (30) days after Tenant's receipt of each Landlord lrvolcc thor€fior. ln addlllon to the
cost of purctraslng tlp water, gas, ehc'tridty of otter utllity ft,orrt the provHer thereof, Landlord may
cfiarge Tenant for (l) the cost of lrctalling, operatlng, repalrhg and mdntalrilng any equlpment that
Landlord may dect b lnstrall to allcnr fior such excess usa, and (ll) tn cmt of lncreasod urcar and tear on
Buillding equlpnent caused by suci exces use (to lhe odent Landlord can rsasonably demonsbate such
increased uroar and tear). Landlord may also install dwbes, at Tenant's oxpenset to separately m€tor or
sub.meter any suctr exoBss use. Landlord mak€s no representsllonr or wananties, express or lmdled,
as to the adequacy or fihess of the declricity, gaq water or otter ulilities eewlng lhe Premlses or any
olher part of the Roperty. With respect to all tdephons, datia, cable, satelllte and olh€r ulilfry servlces
(olher than elec.trldty) supdled to the Premlses, Tenant shall conlrac{ directly with, and pay all chargps
and fces (for the utllity or seMce provlded) dlr€cty to, the applicsble utllity oompany or servica pro/lde?.
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Tenant ahall lndemnlfu, d€fund and hold Landbrd harmless frrqn and against all Adverse Consequences
eufi€red or lncuned by Landbrd ae a result dTonants falluo to imCy pay any utflity company or soMce
pro/der wfth nhich Tenent contracts dkec{y. As part of Property l,lalntenance Coats or Landlord's
t UlltlsE Coets (as reasonably determined by Landlord), Landlord shall rcplace lamps. sbriers and
ballasts for Building ehrdard llghtng flxtures wthln the Premlees and Common &eas. Hoirsv€r, Tenant
ehall replace afl lampo, sHtors and ballaab for nor8ulldhg standard lisilfrg fixtures withln the
Prembee. Tenant shdl have he right b frtall lts orn back-up generator or other back-up porcr
equlpnent at an on-gade locatlon to ba determlned by Landlord. Lardlord ehall provlde the space fior
suoh equlpmont at no coet to Tenant for he en0re Leaee Term, holudlng any renewal th€reof. Generator
des(7n, lnatdlalion, opardions. mainboance, rsnoral and restoratiofl shall be at Tenant's cost and ln
accorderrca wilh all Laws and Landlord's roasonabla requlremenb, Any such gsnerator and all
assodated plping and equlpment (hdudkp, withqrt llml'tation, fuEl lank(s)) mey be remored by Tenant
upon lhe exphatbn or earller lermlnalisn of this Loase and shall, in all events be remorcd by Tenant
upon th6 qplratbn or eadier terminalion of thh Lease lf Landlord so requests such ramoral by wrilten
notlce glven to Tenant at any llme. Such rgnord shall ba perfomed by Tenant at lts sole cost and
e)(ponsB. and ln accordance with Ute provlslom d thls Lease, all appllcable Laws, and Landlord's
reasmaHe rsquiremenb.
(c) Landlord ehall provlda reasonaHe amountg of dty rnator ftom Sp regular
Br.rilding outets fur tollet and for drlnklng purposes.
(d) Landlod shdl prcvlde Lenet perimeter card acess cyttem for fE
Brllding and prorlde lock and kayed lodset to the Premises, prulded that Tenant shall be sddy
responslble for its card acoess slrslem, if applicable, and for security syrtems wllhin the Prernlses.
Tenant ahafl na'ils in' or other,rdse oonnect lb Premlses rearlty asoess card readers to Landlord's
Bullding secur[y syttam.
(e) Landlord shall operate all elevatqs wl[rln lhe elavator banks seruhing
the Bulldlng at all limee durlng Normal Buslness Hours, and at alt ohsr tirnes at least one (1) passenger
elevalor h eadr devator bank. Landlord shail p€rform all work necessary to cause the ol€vabrs to serue
all froore of the Prcmises, lrdudlng any bdo,v gnade space.
0 Lardlord stnll provlde all other serirlcos typlca[y supplled by landlords
operatlng Clss A offrca buildings ln tho lmmedlate subrnarket eryt BulHlng janitorlal eervic€s. ln
addlfon to the olher sorvlcos sot futth herein, lhese seMces shat hclude windorv uashlng ard trash
remand.
5.3 Afisr Hourc HVAG. lf Tenant doetros to u66 heat or a[ condllbning in the Premlses
durlng hols other than Normal Buslnees Hors, (i) Tenant shall ghle Landlord (or its deslgnae)
telophonb rtotcs or mlloe vi,a compuler codee or notlce vlo such oher mans s Landlord may deslgnate
in unlting to Temnt of Tenanfs dehed use at least 48 hours ln advarco d tho time Tonant dealres auch
teat or air condltlonlng to oommorrce oporEtion, (ll) Landlord shall suppty such hest d alr cordltlonlng to
the Pramis€s al a cost to Tenant of $50.00 per hor per floor (with a iour (4) hanr mlnimum pro/ston of
sucfi after{ronrs heat ard air enditlortng), and (iii) Tenant shall pay su*r oo6t wlthln ftirty (30) days afrer
bl!firp, as Additbnal Rent. In addltlon, Tenant shall ba responslble, at lts sole cct and exp€nse, for tho
malntenance, repalr, sub,metsrlng and all ooats of operallom fc any srryplernentd units that Tenanl
us66 exdqsively for lts Prgmlse, ti,tulher ths Bame are cunon0y exbtrg h the Prsmis€s or are hereafier
hstalled by or fu lhe beneltt of Tenant'
5.4 Addltlonal $ervlcea; Amedtlec. Landlord shall abo heva lhe right, btx not lhe
obl1p1on, to provide any ddtlonal seruices reguested by Tenant lncluding, wlthout llm}taUon,
lockrmlthhg, lamp ref,acemant tsnftorial senrir€, and addlond repake and maffienanca, pfixlded lhat
Tenant shall pay to Landlord as Addilional Rent hereunder, wlthln ftHy (30) dayE of bllllng, LaMlod's
co6t8 h pcrforrnirg sudt addltional senrles if requested by Tenant and agreed to by Landlod plur a
reasonable adnlnlstration fee. Tenant acknorl@cs and agrees that Landhrd ls obllgated to prodde
orly tha standard tenant ssrvbos descrlbd ln Sedlon 5.2 abore on lhe brms atd oonditlons set forh in
(xxot0522
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Sec{ion 5.2 abore, and that Landlsd has made no repres€ntalbrp, uananlles or prornlses whatso€ver of
any addlt'onal cErylcoe or amenllbs to be pwlded by Landlorrd nof ty ln the future under lhls Lease.
Tenant recogntreo lltat Landlord may, at Ladlord's sole optbn, ded b provlde addiUonal seruices or
amenltles for ths tananb and olhor ocoupants of the Buildlng (lndudirc Landlord) ftom time to time, and
hercby agress that Landlord's dlsconUnuance d any otrer addltional e€rviceo or amenltbs hat Landlord
may dect to pmvlde shall rpt constlUte a default of Landlord under trb Lsqee nor entite Tenanl to any
abatement d or raduotlon ln Rant.
5.5 $htttdoryn Wndorus; Evrqntloru; Energy and Resourca Gomumptlon. Lardlord
may temporarily shut dom heatlng and coollng to lhe Premlses $d/or Bulldlng ln sder to conduct
perbdb or em€rgsncy mechanical or eledrlcal malnEnanca or repair activiUes. Excapt ln the caso of
omergoncy (where no ncflce shall bo r€quked), Lardlord shall gilve Tenant at least ttirty (30) dap pdor
unltten notlca of any suctr shut dovvn, wtrloh notice shall lncluda the estimated duration of frre shut down.
The furallon of any such shul do^rn, wtrich ehal! not 6xc€€d twanty-for (24) conseoiWe hurra (excefl in
he case of emergency), shall be rdenad lo herein as the (PrArrangcd Shutdown Wndo{r",
Furlfrermore, Lsdlord shall make all commerdally reasonable efforts b phase the Pre"Ananged
Shutdqrn Wlrdotr by staggerlrg the shutdoin as to fie floors of the Premlses to be aflsctod or the
eqrlpment that le bdng shut dourr, ln oder to mlnlmize dieruptlon of Tenant's operations in the Premlses.
ln addltbn, Landlord may conduct Buildlng errEouatlon ex€rds€s once per ysar or such great number of
Umes a$ may be rcqulred by Law or by Landlord'a Building safety program thon in effecl. ln tho event of
an enacualion orcrdse, Tenant shall cause all persons in lhe Premlses to prornpdy vacate the mme and
e)dt the BuildirB vla the exlt routes slmm on the odt dlagrams posEd on the Bu$dkrg walle, and shall
cause all Tenant Parties who have emcuated the Premises to wait d a seb dbtarree fom the Bulldhg
untll Landlord's personnd have sounded the'all-cleaf slgnlfylng lhat the Building rnay be reocorpled. ln
additon, Landlord rnay voluntarily cooperate or comply with the efforts or dhec-tives of golemmenlal
agencbs and/or utility supplers ln reduclng on€rgy or ottrs Fqxrurce oonsumpton wlthin the Property,
prorHd ln ths case of rurely optlonal mperatbn c cornplianco on ha part of Landlod such measuree
do not matsially dlminlsh lhe servlc$ lo be prwHed by Landlord under Secton 5.2 above r materially
and adversely affec't Tenants business operations for a Permltted Use. Tenant shall not be entlted to
termlnale lhh Lease or to any reducton ln or abatement of Rsrt by reason of $mh compllance or
cooperathn, Tenant ag?ees at all times to reasonably cooperate wtth tandlord and to abHe by all
reasonable rules estaHlshed by Landlod (a) ln order lo maxlrnlze tho efncbnt operallon of the elecflcal,
heating, ventllating and air cordltlonlng slrsBns arrd all other enetgy o drcr rsaflrroe consumption
sptems vulth the Property, and/or (b) ln order to comply wlth fie requkements or reoommerdatione of
ufility suppllers and government]al agoncies rcgula0ng the coneumptlon of errergy andr other lesouroas.
5.6 lnterruption of UtHltb. The fallure, intemrption, rationlng or oths curtallrnant or
cessaton in ttra supply of haating, ooolirg, electrldty, water, gns. chllhd wator or oher utlll$ or Bulldlng
servir:a to the Prembes tr any other pal d the Proporty (other ttnn by: (i) reason of Landlord's lallurc to
pay lts bllls for ttrch utflity servbss which h tum causes the utlllty company to cease provtsbn of he utlity
ssvlca; or (I) any lntenupUon oaused by $e negN[Errce or willful misconduc{ of tandlord or any l-andlcd
Party) shall rpt enti0e Tenant to any cornpengallon or to any dlmlnuUon s abatement d RcG and sucfi
acts ghall not b6 dosrned a constructive or aotual odctlon or a breach of he oovenant of quiet enjoyrnent.
Lardlord's obligdlons under Soctlons 5.2(a) and 5.2(b) above shall not requlre ft to utlllze any baclt-up
gBnerator(s) ofltsd or operated by Lardlord on tha Property lo provlde the ssvices descdbed ln eudr
Sectlons grren lf the supply of eloc{rlc cunent to the Buildlng ftom uUllty companles b halted, htemtpled,
or othenillse curtaled. Lardlord makes no reprasenta0one or uranantles) express or lmplled, as to the
amlability, adequacy c quality of baok+p gensrator pou,Br to Tenant
5.7 Sccuritf Accecr. Subpct to (i) all of tha terms and conditbna ol thls Lease, (ll) Foce
Maleure 6vents, (lli) Landbrd's Rules and Rsgulations wlth resped b ldentUloallon of Persone enterlng
the ftoperty or any pan thereof (krdudlrU the Bulldlng) and dhq procodures regula0rp lhE manner in
whbfr access ls gained to the Propelty or any part lhareof 0rdudhg the Buildlng), and (lv) lhe
requiremenb of applhable Laws and Prlvats Resblctons, Tenant shall be allored mcess b the
Premhos tumnty-forr (24) hors per day, saren (7) days per week, drrlng the Leasa Term. Tenont'e
aoc€Bs to the Premlsa shall be limited to the paimetw entry polnts ard internal roads, drlveuays ard
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drlve aldeo wihln ttp Proporty shorn on Exhhlt rA-1" herdq ag EXtr!!ll-E!: may be hereafter
rwlsed by Lardlod ln lE reasonable dlscretlon (h€ "D6bnded Extarnal Aceor"). Tenant shell
comply wih, and shall cause eaoh Tenar[ Pany to oomply wllfi, tl€ socunty protocols establlahed by
Landlord fo aocess to the exterlor perlmete of the Propedy and Bulldlng. I,ldther Landlord nor any of lts
agents, employees 6 oontrac{ss shall be lhble in damageo or offiEfi,ylse for any hadvertent enrn or
mistake reopcctlng lhe admleslon to or excluslon from lhe Prop€rty or any part thored (krcludlng lhe
Premises aod Bullding) of any Tenanl Party or other furson. Notrriltrshndlrq anyhlng to the conlrary
her€ln, ln oese of lnvaslon, act of terror, mob, rbt, crlmlnal activlty or Invesligation, publlc excltement or
other cornmolbn, Landlord nsserves tha rlght to pr€vent ac@s8 lo the Prop€rty or any part thereof
(includtng the Prcmlees and Bulldlng) by any means lt daems approgiate for the eafety and protectlon of
lileand property.
Tenanl acftnovledgas that Oe Premlsee, Bulldlng and Common Areae are localed withln a larger
corporato camprs owned and operated by Landlotd at wtrich sensiUve and crlUcal buslness operallors
are being conducled and that nolhlng ln thls Lease shall be deemed to g|ve Tenant or any Tenant Party
th€ rlsht to enter or uE€ any portlon d the Proporty orcept llp Premises and Common Areas.
Accordingly. Tenant shall not 6nter or use, or permit any Tenant Party to €ntor of use, any potlon of lhe
ftoperty €xo6pt the Premlses and Common Araas In accordance with tho torms cf ttils Lcese, and
Landlord shall have On right lo remove ftom lha Property, tvlthout lhHllty to Tenant or any Tenant Pady,
any Tenant Party who enters or atbmpts to enter any portlon of the Pmperty other lhan the Promlses and
Common Areas ln accordanoe wlth the terms d hb Lease.
No{rrltrstandlrg anythl@ to fie contrary hereh, Tenant acknoivledges and agnee that Lendlord
has no duty ri,tratsoorrsr to provlde security foi tho Property or any pxt trered (lncludlng lhe BulHlrtg or
Premlses), except as expressly provlded ln Secllon 5.2(d), ard that tandlord do6s nc[ represent wanant.
coyenant or provide any dher as$ffarns hat any aeanrity m€aswes or eenrlces rxrfl or hereafter
prwkled by or on bdralf of landhd will be adequate to prcbd Tenant tr any Tenant Party or any
property of Tenant or any Tenant Party from loos, damage, lnJury or ham, and Tenant hereby rdmsss
Lardlord (erd any Persons hked by Landlord to prwidc eccurlty senlces to the Bulldlng or Property) of
and torrr, any and all Adverge Coneequences, uipther ln contract M or on any ottu basls, for any
inJury to m any damage or loss sustalned by Tenant or any Tenant Party, or any damage lo Tenanl's
property, reardting from or attrlbutable ln wfiole or ln part to the lnadequacy or imuffclency of securi$
perso,rmel eenrhat or procadures belng pmvided or lmpbmented by or on behalf of Lardlord, prwHed,
lpriever, that sucfr release shall not apply to Landord's or its agents', employees' or conhac-tors' wlllftd
mlscottdttct
Sublec{ to Tenanfs complhnce wlth Artlde 6 belour, and poddecl Tenant'g security sysbm to the
Prernises does not oonned to Landlord'r seofity Eyotem or interfere wih lhe proper opora0on of
Landlord'a saanrty system, Landlord shall rcasonabry coop€rats wlth Tenanl b permlt Tenant to lnotall at
Tenenfs sde cort and ele€nso lls own oeority eystem ln coordlnationwlth Lardlords systcrn.
lf raquested by Lardlord, Tenant shall provHe Landlord wlth a lht of all Tenant employees that
wlll be nrcrklng ln he Prgmls€s on a rcgular basls and for wtrorn Tenar{ requests a photo Henllfution
badgo and accas card.
Tenant shail srfr and oxit the Bulldlrg mly throuph the enty doors sf the Bulldlng. Bebre and
gffer Nonnal Budnoss Hourc. Tenanl'e accoBe with respsct to the entry doors of lhe Bulldlng 8 Lobby and
lhe enfy doorg d lhe Premises shall be hrough 0rE access card Esd€rs locabd cublde strct doors.
Upon the eetratlon or soon€r tormlnatlofl of lhls Lease. Tenant shall rcturn b Landlord all
badges, agogss cards and keys ae may have been glven to Tenant foraccess b the Proporty of any part
lhereof). Landlord shall have no [ablltry whatsoever to Tenant or any Tenant Perty fa any failure or
mdfunctinn dhe AiHf€'s and/or Premls€o'cad orolh* aooess sysbm,
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Articb6
ALTERATIONS AtrlD lilPROIrEUENrs
6.1 By Tcnant Tenant shall not md<e any alteratbns to or modiffcatlons of the Prornlses or
construcl any lmptovemontB w{thln lhe fremlseg untll Landlord shallhave frrct approred, in writlng, the
plans and specificatiom lherefor, uttrich approval shdl not be unroasonably withheld or ddayed by
Landlord (provHed Landlord shafi have a mlnlmum of ten (10] days to respond to eech Tenant ruqueot for
appmval), sxcept as to plans and speclllcatlons for Prohibited Alterations (deflned bdow), the approral of
wlilcfi may be wlhheld by Landlord in its sole discretbn. As used hereln, 'PtohlbltGd Alteratlons"
mean any alteratkms, modificatons or lmprorements that may affed tho sfuclural components of tre
&ildlng or the Systems and Equipment or whlch can be seen from (or may adversely afiect any area)
ottslde thG Premlses. Emh requost for alteratlons, modlfioations or irprovemenls shall lnclude Tenant
pnoddlng to Landlord such daslgn documentation as Landlord may, in ib sde dl.:orsllon requlrc or
r€qu€st, all in accordarrce with Landlord's CAD standards. Landlord's failure to respond to any Tenant
requeet for approval withln frfteen (15) dap follordng Lardlord's recalpt of such shall not mnslituie either
Landlord's approval or disapprwal d the same. lf Ledlord ghrcs lts approrral, sudr approval shall state
whetlrcr Landlord wlll requlre Tenarl lo remove he su$ect alterauons, modlfbatims or lmporements by
lhe explraUon or earlbr termlnation of this Lease, and only lf ft so sbtes, at that tima, Tenant shall be
obllgated to remove lhe sublect altffillons, moditioatlona c lmprwemenB by the explratlon or earller
termlnatbn d his L€ase, All suoh modlflcatbns, altcratlons or lmprolements, onc6 8o approved, shell be
mde, coflstruc[ed or lnstalled by Tenant, et Tsnanfe exponso (lnduding all pennh fees and
governmental charges relatod tharelo), uslng reputable, duly licens€d and quallffed contracbrc and
contractoio acooptable to Landlotd in Landlord's reasonable dbcretion in substanlht complhnce witr tlre
Landlord-approved plans ard specifications lherafor. All vuork undeilaken by Tenant shdl be done ln
accordance wlth afl Laws and in a good and workmanlike manner uslng new mabilals (or, lf appropriate,
refurblsh€d materials of good quallty). Tenant shall not commenoe the maklng of any such alteratiorp or
modillcatbns or lhe conslrucUon cf any such lmprovemenls until (a) dl requlred governmantal approvde
and permlts shall have been obtalned, (b) a[ requlremanle rsgnrding insurance lmpeed by thb Lease
have been satisfied, (o)Tenant shall have given Landlod at least ttree (3) busaneos dap plor nrltten
notico of its intention to commenc€ such tivork so that Landlord may post and flle noUces of notl
responslbflity, (d) if requested by Landlord, Tenanl shall have obtained speclal furm builderrs risk
lnsurance or lnstallatlon fioater, for the full replacement cost of the alEration, modlflcatbn or improvement
to coler any perls relatirB to the proposed uork not covered by lnsutanoe canled by Tenant or Tenant's
general contrador prrsuant to Artlcle 0, (e) Tenant shall have oblained a payment and performance bond
or somo dt€nrate form of $eoldty saUsfactory to Landlod ln an amotrt suflicbnt to ensure the llen{rap
completion of sudr alteraUons, modlffcations and improvements ard namirg Landlord as a cooil3gee,
and (f) Landlord shall hav€ recelved from Tenant a llst of the nan€e, addressss end phone numbers of all
contractorc ard subconlrmtors that Tenant propos€s to use in the performance of such work. ln no errent
shall T€nant make any alteraUons, moditpations or lmprovements whatsoevsr to he Cocrrnon Areas
(exoept as set forh in Seollon 2.18 rcgardlng Tenant's riser spaca access) or the exterhr of lhe Bulldhg
lncluding, witfrut llmlffion, any cuts or panebatlons in the lloor or exteilor walls of the Premlser. Any
core drlllirg or other umrk permltted by tandlod lhat creates excesslve nolse s vlbratlon that Tenanl
deshec to pshrm shall be performed other than during f,lonnal Busin€ss l-lours. As usod ln this Artide 0,
the term 'alterations, modlftcatlons or irnprolements'strall exdude, wlltput limitatlon, the lnstellaUon of
addllhnal dsctrical ouilels, ororhead lighting flulurcs, dralns, slnks, psrtitio{rs, doonvays, or lhe llke,
Promptly after compledon of any aheratbns, modtflcetlone c lmprovemente to the Prernises, Tenant shall
delivs lo Landbrd, at no coet to Landlod, a reproduclble coPY of any reasonaUy requlred 'es bullt'
dranvlngs h hardcopy, r€produdblo, or electronlc comprter asslsted design files as may be requlred by
Landlqd of the ssne, and if Landlotd should requsst, evHence d paylnoot contr*tm'aflidavlb and fu]|
and f,nal wairrem of all llens fur labor, ssvlcas or materials used in lhe construc{ion of euch alterallons,
modlflcatlons or improvements. Tsnant shall pay for dl owrhead, gersral cordltbns, ftee ard othsr
costs and exp€nsos cf any alteratlons, modillcatlons or improvements to the Premlses, prorided,
hourev€r. that Landlord shall not be enlitled to any conetudlon management or aupeMolon fees or any
other fees related to Tfiant'o altqrations, modiflcatons or lmprooments TtrE 'Constructlon Rules' set
furtr ln E$lblt'E' shatl apply wiUr regard to any authorized Tenant Alleratlons. ln lhe event of any
confilct boturaan lhls Leaso and the'Gonslructlon Rules', tha "Cotstnrtbn Fhrles'shall control.
F.
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Er'E::L_t--i,
I
0060r0122
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All work performed by Tenant or any Tenant Party shall be performod so as not to lntorf€re ln any
materlal respect with (a) the other tanants, ocarpants (includlng Landlod) or usars of lhe Buildlng or thelr
usa or occupancy of the Building or Common ArBa6, or (b) tfp o,unors, tonants, occupants or ugers of
any nalghborlrg rcpertlos. Tenar* shall take all precautionary sleps roeonably necessary to protect its
prop€rty, equipment and faclHtbs and he property, equpmenl arrd fadtltles of others afiected by ahy of
lhe wo* or actfullbs to be performed by Tonant or any Tenant Party, Erd'shall make adequate provision
for fre safety and convefllencs of he tsnants, o@upanls (lndudirg Landlord) of Ure Bultslng. Tenant
shall cause all dust noise and olh€r str€ats of the actlvltles and uork being performed by Tenant or any
Tenanl Party to be controlled by use of the best accepted methods for contml of such adverse effects ln
ocapied multl.tenant bulldlngs. Tenant ehall not permlt any Tenanl Party to post any slgns on the
Property wllhoul Landlord's prlor wrllten consen( and Landlord shall have sole and absolute dlscreton as
lo the edstence, slze and location of any sucfr slgns, ercapt as regulred by applicable Laws wlth respscl
to Ote Premisss, sucfi as building permits.
6.2 otnncrlhip of lmprovernents. All modifications, albratione or lmprorerrents made or
add€d to the Premisee by or for TenanL wtrhh shall not lnclude Tenants fade fxtures (Tenants trade
ft<&res to lldude, without llmlhton, Tenant's generator, unlntonuptable pourer supply sttsterns, and any
supflemottal heating, venlllatlon, and dr condlUonlng systerns lnstelled by or on behalf of Tenant), shall
be deemed real property and a parl of lhe Premlses hmodhtely upon lhe con*buollon or lnstellallon
Sr€rcot and Tenant shall not attempt to grant a seanrity lnt€rest in any sudr lbms to eny Person. Any
$rch modlflcations, alteratlons or lmprovernenB, once compbted, shal rpt be albred or remoled frorr
the Premises durlng the Lease Term u,lthout Landlord's urltten appromlfret obtalnod ln accordance rrvltr
the pwislons of Sec'tion 6.1 aborte. At the explration or sq)nor tennlnatlon of thls Lease, all suoh
modifrcatlono, alteratlons or lmprorcrnents shall automaUaally become lhe property of Landlord and shall
be sunendered to Landlord as part of lha Premiscs as required pufiuant to Section 2.3 above, unless
Landlord shall r€qulre Tenant to remove any of sucfi modificalbns, altsations a improtrements in
accordane wlth ho prwislons of Sec'lion 6.'t above, ln whioh case Isnant shell so remove lhe same.
Lardlord shall have no obllgation to rdmburse Tenant for all q any portioo of frp coot or value of any
such modilicalions, dterations or improvemonts so sunendered to Lardlrd. All modlllcatlons, alteratlons
or lmprovemerts wtrlch are instelled or conslructsd on or attached b the Premisss by Landlord or at
Landlord'e cxponse shall be deemed real proper! and a part of he Prembos and shall be property of
Landlord. N l[hUng, phrmbhg, electrical, heallng, vanUlaUrq and dr cordltlonlng fixtures (other than
dedlcated HVAC unih instralled by or on behatf of Tenant) partilioning, windor coveings, rvdl coverlngs
and floor coverlrps lnetalled by or for Tenant shall be deemed lmprorerrenls to fre Pr€mbss arrd not
lrade llxlures of Tenant. Tenanl shall be permlfied to rsrnove, st Toflsrfg sole expsns€, any securlty
cameras, seorrlty system and/or rdated equipment lnstalled upon the Premlee by Tenant (colledivdy,
'Tenanfs Secudty Equlpmrnt") ptorided lhal such removal does not damage any secr.rrity systoms
servlng the BuiHing and Tenant prompty repairs dl damage to the Premlses c Brrilding resulUng fiurr
sudr remoral. Tenant's repalr obllgaUon under he preceding sentence shsll suMve the exphatkm or
sooner tsmhatlon d thls Lsasg.
6.3 Allsratiom Requlrad By Laur. Tenant shall meke all modillcatlons, altera0ons ard
lmprov,emenb to lhe Premhes, at lts sole coat that are requked by any Latrn as a result ln nrtrolE or ln
part d (a) Tenants partlcular uss or oocuparrcy d the Pramloes, (b) Tcrnnfs applkxtion fu any permlt or
gorrcnmental approval, or (c) the maklng of any modlfhalione, allerstlons or lmproemsntB to or wltHn
the Premisea or any other patt of the Proparty by or for Tenanl ln ddltlon, if Landlord ls requlred to
make any modlflcatons, alterations or lmpro\rsments to the Bulldlng o ary oth* part of the Propsty as
recult ln rvhole or ln part of (a), (b) or (c) aborc, Tenant ahall rcimbune tfidlord for the reasonable cost
theroof rvflhin thilty (30) dayt of Landlottrs lnvolce thersfor. Excopl as prqvHed ln the precedirB
sontence, lf at any time during lhe Laasa Term Lardord shall be !€qrJhed by any govemmental authorlty
b make any modlli{laUons, alteratlons or lmpro\r€meflts to the Buildirq or the Propaty, lhe cet lncuned
by Landlord ln making such modlfrcatbne, albrallons of lmprovemelts ehall be ons6ered a Property
Malntenarrca Coet ln accordance wlth Sectlon 13.12(q) below'
0.4 Llens. Tenant shall keep the Roperty ta6 fiom any $ens arising ort of uvork or genices
perfcmed, or mabrlals purcfiaued, by a on behalf of Tenant, and fenant shall pay when due all bllls
00@t0tx2
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arlshg out of eny work parformed, materiale fumlshed. or obligatms lncuned by Tenant or any Tenant
Party relaUng b tho Propqrly. lf any such clalm of lien ls rscorded or ffed agalnit Tenants lnterest ln lhis
Loase or the Propgrty, Tbnant shsll bord agalmt, dlsdrarge or othenruise cauga srrch tien to be enthely
released wthln thlrty (30) deys afier Tenant recefues ndlce that the sailo has baon rscorded or fflsd.
Tenant's fallure to do so ehall conetitjt8 en Ewnt of Defsult und* the lqms ol lhls Leae.
Arflels 7
AS$reNMENT AIID SUBLEASI?{G BY TEilATIT
7.1 8y Teiunt. Exmpt as otherwlse provlded ln Secllon 7.9 belov, Tenant shall not sublet
the Premlseg o any portlon thereof or aes[n, dedge, encumber s olhcnrdse transfer all or any part of lts
intoret ln thls Lease, whether voluntarty or by operatbn of Law, wfthon Landlord's prlor wrltten oonosnl,
whlch shaff no{ be unreasonably wlthhdd, condllioned or delayed es to any proposed asslgnment
(provlded srrcfi assQnmsnt is notfior the purpce of seouring the paymml of any dabt or tho performance
of any obliption) of Tenants lnterost ln lhls Lease to a P€rson that wlll occupy the Prernls€s or to any
proposed sublease of all or any part d the Premhes to a Person that will ocoupy the porlim o{ lhe
Premises so sublel, but whlch may be wllhh€ld in Landord's sole discratlon as to any other transfers for
lhe purpose d sscuring the peyment of any debt or the performance of any oHQation (lndudlry any
pledge, asslgnmenl or encumbranoe for the purpoce of seo.rlng tho paymsnt of any deH or the
performance of any obligethn). Any attempted subleaslng, aslgnment, pledSe, encumbrarrce or other
transfer wilhant Landlords prlor urltten consent ae requlred hereln, at Landod's ddlon, shallconstitrte
an Event d Dafault under the tenne of lhls Lease. Tho accaptance d renl by Landlord from any Person
othor than Tsnanl, or the aecaptarrce of Rant by Landlord torn Tenmt wlth knorledgs of a violaton d
the pro/lslons of thb Arilcla 7, strall not be desmed to be a ualver by Lardlord of any prwblon of thls
Article 7 or this Lease or to be e consant b any sublet0ng by Tcnant or arry asslgnmen[ pledge,
errcumbrane or olher transfer of Tenant's lnterest h trls Lease. WhhqJt llmltlng lhs drcumslanoes ln
whbh lt may be reesonable for Lardlord to withhold lts consent to a propced essignmont of Tenants
Interesl in lhis toase or to a proposed eublease of all or any part d he Prembes, Landlord and Tenant
ad<norledge and agree that it shall be reasonabla for tandlord to uJtthhold ib consent in any of the
fdlottring irctances:
(a) The propos€d Transferee (as deflned below) b a governm€ntal agency
or possessos dlplomatic or sanereign lmmunlty;
' (b) ln Landlord's reaeonable Jr.rdgmsnt, the Transfsroe h or will be engged
ln a buein€gs or a6fiv{ty at the Premisos, or th6 Premlses wll! be ueed in a mannor, tlnt (1) is not in
keeflng wlth lhe then standar(s of the Buildlng, (2) ls not br the P€nnmed Use (eu$eot to Suboectlon
(m) bekrrr), or (3) vlolates any restriclions sot fodh ln hls Lease or in any mor[age and/or deed of tnust
eftoctlng the Buildlng orlhe Property
reasonaHe credlt
(c)
standarde
(d) The reputation and charactor of lhe proporcd Transferee do not m6ot
tha reeonabt6 standads of Landord;
(e) ln Landbrde reasonaHe ludgmont fie propoeed occuparrcy would
lmpooe an sddltional mabrhl burden upon any d lhe Systems and Equiprnent or Landlords abl$ty to
prwkle senrhm to the othor tenanh or occtpanb (lndudlng Landlord)d the Bul6krg;
(0 The propmsd Tremfer€o (or any d lts Afflbtes) has, in the fnre (5)prs pria b h€ asslgrunant or eublease. f[ed hr bankruptoy proteotlon, has bson the sub]ec't of an
lnvoluntary bankruptcy, o hre been dFdged insolvent'
The financlal worth of the prcposed Transfieree doee not med tre
of Landlord;
1.
F
m6010522
-2+
Landlord prevhus matorid dehult by or b ln litSaUon
(h) The use of lhe Premlsss by the goposed Transferae will violate any t.
E:YI;
ar-t
i.
1..!:
i
t
!i.
i
i
i
j
applkxbto Law;
evallaHe ln lhe Bdldhg for
(o Affiliateor (2) a Persoo
months
The propead asslgnmenl or sublease fails to include all of the terme
(k) An Event of Default shall then er(ist
() lf Landlord is Horvletl-Paokard Company (or a corpczte successor), the
assignee or subtenant is a competltor of Landlord indrding, wlttrout llmitaton, lBM, Dall
(m) lf the Transfsree propsas to changa thc Permilted Use and Landlord
dlsapprwes such uso, h Landlord's sole and absolute dhcmtbn.
7.2 llergor,
oth6r roorganlzatlon of Tenant,
contrdllng
of the assets of Tenant, shall
excepL and wlthont llmltlng the proloions of Seotion lhat he forqolng shall
sale or otler transfor ln the aggregate over
stock of Tenant if that stock is lraded on lhe
lhe Lease Tenn ofa
Neur Yonk Stock
Unlted Slates The
means the of and the rlght to vote stock more
lf Tenant ls a
invduntary or by oporation of Law,partner,shall
deemed
nc{ Eaded on the
naflonally recognized United States' stock exchanp,
bva
ssnior trvtrlch prwkle lnformatlon:tlrc names of all of Tenant's
shareholderc or other ovvnerB onmlng more fheen of lhe orbtandlng
lnbrests and lnteresls at lho sharBs are not
place of
buslness;rcgnrdlng a material ohange ln ths corporate struc-turo d
and (e)
7.3
lnterest in lhls Lcase to any Person or to stiblet the Premlses or any porllon thor€of to
if l-andlord's consent h requird,
b so sublel"gncumber or othenrise tranafer, at l€ast
of any part cf lts lnterest
in this or any porlJon thereof,
days in advaree cf sttch date, speoffig ln detall
lndudlng the name of the proposed Transfvse, he
-25-
00601052:
current
and turo (2) prlor years'flnanclal statemantr (lncfudlng a balance shest lncome sEtement and stetemenl
of cash f,ou, a[ prepared in accordanoe wlth generally accepted accamUng prlndplee or Eudr oftar
aocomtkq standad or m€thoddogy I'dstorlcally ucad by the Trancble and reasonaUy acceptable to
Lardlord) d such proposed Transferee, the prcpoeed form cf docrumentg b be used ln effactua0ng such
harNsfur or sublettlng and such other infurmation m Landbrd may oasonably requmt. Landlord shall
have a period of ffieen ('15) days folloirlng rmelpt of such notice and ths requlred lnbrmatbn withln
sfilch b do sre of the foflorlqg; (e) coneant ln wrlUng to such reguested Eamfer or subletllng subJect b
Tenant's compllanca wfth the condltbns ssl forth ln Sectlon 7.4 br/ou, or (b) refuse lo conscnt to sucfi
requested Eansfer or sublettlng. Durlng such fifteen (15) day pelod. Tsnant cownanb and agreer tc
supply to Latrdlod, upon request, all neceosary or role\rant infonnalbn whhh Landlord may rmsonaUy
requast respeotlrrg such propoaed transfer or subleting and lhe proposed Transfuree. Any karnfur of
Tenanfs lntorst ln trls Lease or artilettlng d tha Premisc or any pail thertof ln vlolallon of this Arlhb 7
sha[, at Lendord's sole optlon, be voH and of no effec't ab lnltlo.
7.4 Condltlons b Landlod'r Gonsent. lf Landlord's consent is required and Landlord
rilec$ to oons€nt, or shafi have been ordered to so cons€nt by a court of competent lrledictlon pursuant
to any prorisio olher than Sectlon 7.9. tc sudl requested famfur or subletting, sucfi consont shall be
exprcssly conditlonEd upon the oocurenoe of €a& of he condltims belou, s6l forlh, and any pwported
transfer or srDleffng made or odsrod prbr to he full and oomplete satbfadlon of sach of ttn folkrulrp
condltions shdl be vold and of no eff€ct. The cordltlons are as follow:
(a) Landlord havlng reasonably approved in form and substance the transfer
or sublease agreement
(b) Each ass[nee havlng agreed ln wrltkrg sathfac{ory to Landlryd and for
the orpress ben€fit of Landlord, to assumo, be bomd by, and p€rhrm Tenants oHigations urder his
l-ease.
(c) Each subbsses havlng agreed, in nr[ing sallsfactory to Landlord and tur
the expraea benaflt d Ladlord, to be bound by and subject to the terms ard condltlono of thb Lea$.
(d) No Event of Ddault shall cxlsl on tha day cf Landlord's consent or the
day on wtlhh lha assignment a suUeaso hkos dect.
(e) Tenant travlng reimburaed to Landord all reasonable ccts and
reasomble afromeys' Ees aohmfly incured by Landlord ln conpnctlon wlth tho processlng and
doormentatlon of any srrctr rcqtested sublettng or asslgnment, up b a maxlmum of Two Thousand
Hlars (S2,0(l().00) per cach requedhr laldlord's @nsent.
dupllcate odglnalof
agrosmonts.
(fl Tenant havlng dellvered to Landlotd a complete and fully-executed
such sublease a$eement or asalgnment agreement (as applicaHe) and all rdated
(S) Tenant haMng pald, or havlng 4reed ln wrlhg to pay as to tutrre
paymente, to Landlord flfty percent (50%) of all asslglment consHerdlon or exoaas rentals to be paid to
Teirant or b any othor party on Tenanfa behalf or for Tsnant'e b€n€lit fa suoh asslgnment or subletling.
7.5 Acclgnment Gondderdlon and Excaas Rerilab ftftnod. For purposes of lhls Arlhle
7, lhe term'a*lgnment consHeratbn' shdl maan all onsideraflon to be paid by lhe assignee to Tenant
or to any olher pa*y on Tenanfs behalf or for Tenant'e benent as coslderalhn fq srch ass[nmont,
affer Oeduahg any rcasonable brdreragp commlsslofls paid by Tsnant ln oonnectlon wlh the asslgnment
and any raasonable atlcrneys' fees incuned by Tenanl to negoUate and document th€sslgnment; and
tho tsnn "excess rentBls' shall mean dl conslderatlon to be paid by the subleoses to Tenant or to any
other party on Terrant s bshalf or for Tenart'c bereflt for lhe subloase of all or eny porton of the Prembes
in excees d the Base Monthly Rent and thc amounts due urder Sedion 3.2(a) above for the portlon eo
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{xxo1052.2
r.:
:...
a.
subleesd for lhe same perlod, afler deduotlng any reasonable brokerage commiesions pald by Tenant ln
Gonn€cton wlth the subleasa and any reaonable allornayB'lbes lncurrcd by Tenant to nagrctlate and
document the subbase. Tenant egfee8 lhat fi€ podbn of any cslnment consftreratlon ard/or exces
rsntals arisfp fiom arry asslgnmerrt or eublettlng by Tenant lhat h to be paU to Landlord pursuant to trls
Arllda 7 now is and shall then be lhe prop{ty d Landlord and not the prcperty of Tenant,
7.6 Paymentr. All paymeots requlrcd by ttrls Arlide 7 to be made to Landlord shall be made
in cash ln full as and when thay become due. At the flme Tenant or Tenanls aeslgnee or sublsssse
makc each suoh payment to Landlord, Tanant shall deliver to Landlcd a lrue, conect and ltemlaed
statement ln reasonable detall showlng the method by whlcfi the amcnrnt due Landlord wae cakxllated
and certllled by Tenant as fue and conocl.
7.7 Good Faith. Tho rlghh granted to Tenant by this Artida 7 are grantod ln conslderatlon d
Tenanfs exptoss cownant lhat all pertinent allocatlons whlch are made by Tenant bdween the renhl
vdue of he Premises and the value d any of Tenaot's persond prop€rty wtrich may be conveyad or
leased gemrally concurrently wltt atd wtrld may reasonably be oonshdered a part d the same
transrction as he permilted ase[nment or sublefrlng shall be made hkly, hones{y and ln grood fallh. lf
Tensnt ehaill br@ch this covenant Landlord may lrnmedtately decke Tenant b be ln default urder the
terms of this Lese ard tormlnet€ thls Leage andlor orercise any olh6r rlghb ard remedles Landlord
wurld have under lhis Lease in the case ol a mahdd dgfault by Tenant urder thls Lease.
7 -g Efbct of Landtord'a Gonaant. l.lo asslgnment or olher bansfer, arrd no subletting, even
rfltlh the cqrsont of Landlord or prrsuant to Section 7.9, shall rdieve Tenant of ite personal and prlmary
obllgntlon to pay Rsnt and to perform dl of fte oher obllgations to be performed by Tenant hereurder.
Consent by Landlord to ono or mtxo asslgnmonts of Tenan(s lnter€ot In [rls Lease or to ons or mora
subleases of lhe Premises or any part lhered shall not be deeined b be a consent to any subsequer{
assfirment or subleases. lf tfirdbd shall hsve been ordered by a oourt of competent Jurlsdlcilon to
consert to a requeeted aesignment or suble*ting, or such an assignment or subteaoe shall heve been
order€d by a cor.nl of oomp€tent lutisdictlon over the obJectlon of Landlord, and provided that such cder
uvas nol pursuant to Sectlon 7.9, such asslgnmant or sublease shall rmt be blndlng between ttre asslgnee
(or sublessee) and Landlord untllsuch times as all condltlons set forh In Sec,ton 7.4 abow have been
fully satlsfied (to tha a,xtent not than satlsfled) by the asslgnse or suUessos, lnduding, wldrout llmitatbn,
the paynrent to Landlord d a0 a$eed ass(lnment orklerations and/or exoess renhls then due
tardlord.
7.9 Asslgnmont and SuHemlng t{lthout Landlord'a Gonaent. Notwllhstanding any olher
provlshn of thh Leasg Tonant may asslgn or subleass all or any podon of the Premises to e subsHiary
or Affilhte of Ternnt or lo any corporation or o0rer entlty resulting fiqn an acquisitbn of a merger o
consofidatlon with Tenat ('Tcnant Affillrte"), wlthout rsquiring Landbrd's conscnl so long as: (l) not
less than ten (10) buslnegg days pdor to tho offedhro dat€ of such tanslbr, Tonant noli0es Lardlord in
rrrnltlng of such transfer and prwides Lstdlord wlth (A) dooum€ntation establhhlng to Laldlord's
reasonable salishc-tlon ttlat the proposod asslgnee or lransfer€e b ttpn a Tcnant Affillate and (B) I @py
of lte propooed hanstur agrmment; (ll) tha Tenant Affillab's use ls cottslstent wltr lhe Permltted Use; (ili)
promflly ffiloulng the effeclhr€ date of auch transfer, Landiord thliwrs to Tenant a countenart of ttp
fufu-o<eculed banstur qr€em€nt, and (lv) Tenanl rcrnalns fully llahile fcr dl Tenent obligatlons under thb
Leaae rcgnrdless dsttch tarsfur.
7.10 Fore hrcuncd ln Asalgnmcnt Aftor Bankruflcy ol Tonrnl. NotwlthEtandlng anythlng
in this Lease to ttre oor{rary ln the erlent hls Lease Is asslgn€d to any psrty pursuar* to applhabb Larvs
after the fllrp of any bankruptcy by, for or agalnst Tanant no such asignment shan be vald or fuhte
unless and unlil all past due Rent (lnduding tate charges and dehult htercs$ and costs and hee,
includlng atornep' and experts' fees, looJred by Landlord dhec'lly or indirecty as a result of Tenant's
bankruptcy are pald to Landlord ln full f,us htcrtet thereon at the Ddallt Rato.
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Arthle I
LM]TATK,il ON LAITIDLORD'S LIABILIW AND INDEililTTY
8.1 Umltatlon on Landlod's Lhlil[ty and Rcleare, Except as may olherwlse be
otpreosly set lbrth hr trls Leasg Landlord shall not be llable to Tcnant for, and Tonant trcreby releases
Landlord of and fron, any and all Adwrse Consequences, whether in contract, torl or on any other basls,
for any lnJury or harm to or any damage or loss sustalned by Tenant 6 any Tonant Party, a any damage
to Tenant's prcperty, resulffng ftom or atlributable ln wtrole or ln part to the conditlon of the management
of, the ropair or maintenance of, he protection of, the supply of serulces or u$lUee to, damage to or
destruction d tha Premlses or eny ottrer part of the Property includingl wlthout llmitathn (a) the fa[ure,
lntemrptlon, ratlonlrE or otts curta$rnent or cegsellon ln lhe supply of heatlrrg, cooltng, elecflcty, rrater,
gas, chllled uratsr or other uflllty or Bulldlng Borvlce to lhe Premlses or any other part of the Property,
exc€pt vyfien Landlord has faled to pay its blls br such utlllty servkes which ln tum causEs the utility
o(mpany to tum off the ullli$ eervbe; (b) vandalism of lhe Premisea by any Petron othar than Landbrd's
employees or forclble entry lnto he Premises or &rllding by Persons other than Landlord's anployees or
cmbactorc; (c) the peneffaUm cf uats ir*o or onto sny portion of the Prernlses or Bulldlng; (d) trc failure
to prwlde secudty c adequate laghting In or abanl the Premlses or anydfrcr part of lhe Propeily, (e) the
odstence of any des[n or construdlon d€fects s,lthkr the Bulldlng or Propaty; (fl the fallure of any
mechanlcal systom h or asving the Premlses or Building to func'tlon propady (such as he HVAC
systemsl (g) the blockage oI access to any pation of the Bullding o Properlg (h) Landlord's failure to
provlde eea.rrlty sewiceo, ststoms or measurgg (or lb provlalon d lnadequate securfty seMces, sllslems
or measuras) wlthln the ftopErly for lhe protectlon of lho PremisoB, any olher part of the Property,
Tenanfs property, Tenant or any Tenant Party; (l) [andlord's failuo to perlorm any malnEnance or
repahs to lhe Pnemises tr any olher part of the Property that thiB Lease may opressly obl[nte Landlord
to malntaln or repair until Terant shall haw flrst notified Landlord, ln urlllng, of the need for sudt
malntenanca or repaFs, and then only aftsr Landlsd shall have had a reasonable p€riod of tme fiollowlng
its re@t of such nolhe within which to perbrm auch malntenance or repahs; (J) steam, uaEr, raln or
snow, otr other thlng whlch may leak Ho. igeue or flow ftom any prt of lhe Premlses or BuiHirE
(lnc{uding tp plpes, plumblng uprks or spdnkler syelem (if any) ln or saving he Prcrnbes o Buildlng) or
ftom any other place, o<cept b &te edent caused by Landlord's gross negllgerrce or wiltful miscordrrct
(k) h€ condllion or arangernent of any d€cflc or other wlrlng or of sprinkler heads (if any); or (l) the
unauhorlzad inbusion or entsy lnto the PrEmlses by thkd perti€s; prwided, horttever that nolhlrq ln
dause (a) through (l) above shdl bo deerned to release Landlord frorn such lhbility to the extenl he 106o
or damage uas proximately caused by Landlord's gross nagllgence or wlllful mlscotduct, Hor€v€r, no
matter urhat the cause (lncludlng Lardlord's gtoos negllgnnce or wlllful mlsconduc't), under no
clroumstanceg shall Landlord bs liable for any lnjury to or lnterfararce wllh Tenanfs business, loss of
Tenan(s proflts or olhe flnandal loss or conaequontlal damagos of Tenant.
8.2 lndsnnlffcadon. Subieot to tho terrns of Sectlon 9.3 below, Tenant shall defend
Landlord and esch Lender fiom any clalms or demands madc agairct Landlord and/or any Lender. or
legal aotions, BulB or proceedlngs filed or ttrealened agpinct Landlord andor any Lender wlth respet lo
lhe vlolation of any Law, or the death, bodlly lnlury, personal lnJury, poperly damage euffered by any
Peraon ocornlng wtthln the Prernises or tesulllng fiom the use or occtpancy of Ore Prefltlsa or any other
part of the Property (induding the Bullding E Paiklng Lo! the Vlsftor Parklng Lot ard other Cornmon
Areas) by Tenant or any Tenant Party, or retulting ftorn the actlvl{es (whe$er or not negllgont) of Tsnsnt
tr any Tonant Party in or abo.rt the Prcmhes or any o8rcr part of lhe Propsty (lncludlng any pa*lng
areae and other Cqnmon Araas), ard Tenant shdl lndamnfl and hdd Landlord and any L6nd€r
harmbss ftrom and agslnst any Adverse Conseguences auffer€d or lncuned by Lardlord and/or any
Lerder rosultirp dhecfly or lrdiracdy ftom any of the forcgplng, e,Gspt b lhe e)Cent caused by tho
negllgence or wlllftl mlecorduct of Landlord or any of lts agertts, emflq/ees or cor{rectors. The
provlsions of lhis AAicb 8 shall suwlt/e lhe orplratlon or soonst termlnatbn of tris Leaee.
Aillcle 0
hISURANCE
9.1 Tenard'g lnsurillce. Tenantshall mahtaln lneurance complying wlth all of tha hllowirg:
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(a) Tonant shall procufie, pay for ard keep In full force and efiect, at all tmee
dudng the Leese Term, lhe fdlorkp:
(l) Commerclal general lhbltlty insr€nco Insufng Tenant agalnst
llablllty for pereonal lnlury, bodlly lnpry death and damage to propaty occunin6 rrrtthln lhe Premlsee, or
resultng frsn Tonantl use d occupancy of lhe Premlses, lhs Bulldlng, the Common Arees or the
Property, or resultktg ftom Tenant's actMties ln or abort the Promlsea or the Property, with correags in
an amount equal b Tenant's Requlrcd Lhblllty Coverage, rrr&ich lnsurance shalt conlain 'blanketcontractral liaHlit/ ard 'broad form property damage' covoragg lnsuring Temnt's psrbrmance of
Tenants obfigation to hd€mnfy Lendlord (subjsot to polrcy terme and condlUons) as contalned ln thlo
Lease.
(i0 Fire and proporly damago lnsuranco ln socallad'causss of los+
speclal form' lnsuring Tenant agalnst loss fisn physical damage to Tcnants personal property, lnrrenlory,
tade fixturss, equlpment altera0ons and knprovements wlthln or to lhe Premlsss wl0r coverage for lhe
full actual repl*emenl cost thereof wlth a dcdudble not to excead One Hundred Thousand Dollaro
($1 00,0flt) po occulrenss;
(lai) Buslness lncomdextra e:eense insurancc suffdent to pay Base
Monthly Rent and AddlUonal Rentfor a p€tlod of not less than six (6) months;
(fu) To Sn extsnt not lncluded ln the property losurance requhed under
(il) above, plab glass Insuranca (at acfual replacement coot) for all$ass located lnrlde the Premhes (1.e.,
not tha BulEk6's wirdour prwldlre views to lhe outelde);
(v) Worksrs' compensatlon lnsurance (statutory covarage) and
employst's lht lSty insurance havlrq covanrge of One Million Dollars ($1,000,000) par oocun€nce, or
such greabr amount as is neceesary to compf wit]r all applicable Larm; and
(vi) W[h respect b maklng of any alteralhns or modifrcations or the
consbuction of lmprovemenb or tlp llke undertaken by Tenant, oourse ol constructhn, 'bullders rlsk' or
instafla{on floabr, commerdal genaral liabfity, automoblle liability and rrcrkerg' compensatlon (to be
canbd by Tenant'e mntsactor), ln an amount ard urlth coverage reasonaHy setbhclory to Lendlord.
(b) Each pollcy of lEt lity insurance requircd b bo oardod by Tenant
pumuanl lo trls Artide 9: (l) eMl, otcept wlth rapect to insurance requinsd by Subsecdon (aXv) aborc,
name Tenart as lnsurd and name landlord, Landhrd's prcperty manager (lf deeEnated ln wrlUng by
Landlord), any Lender des[nated by tandord, and any other Penson easonably deslgnated by Landlord,
as addlUonal insurods, through a trlanket addltlonal lnsured €ndorg€m€nt whlch irrcludes coverage for
cornpleted opordims; (ll) ahall be primary hsurame prodding that the hturer shall be lbble for he full
amomt of he loss, up to and lndudlm he btal amount of liabllity set fortr ln the dedaration of coverage,
wlthant the rlght of contrlbulion fiom or prlor paymoil by any other lrsrnance coyeragp of Landlord; (lll)
ehall not conlaln any cross-lhbilily excluslons or lnha-insurad exduslons as betrcen lnsued pcrsorx, or
organizatbns; (fu) shall contaln shall a secallad 'sorerablllty' or ososc labllltf ondo{somont as udl as
srdorsem€nts dddng any emdoyee otdusbn on personat lnJury coverage; (v) stull bo carri€d tl,lth
companl€s reasonably acca@e to Landlod havlng a'Best's Flatlrq' of 'A' or better and a'Fhancid
Slze Catageq/ of at least 'X'; and (vl) shafi provH€ that euch pollcy rhall not be arbject to cancellatlon,
lapee a reducdon; exoept afler at least thkty (30) days prior wrltbn nothe b Landlord. Eacfi pollcy of
property lnsurance malnblnod by Tenaril wlth respect to the PremlsEs or the Roparty or any proporty
therein (l) shall provid€ that sudr polby shall not be subJect b carcellation, nomen€h,ial or reducton
(orremge or lirmlts) cD(c6pf afler at bsst thlrty (30) days prlor udtten notlce to Landhrd and (ll) shall
con1aln a uaiver and/or a permlesion to walve by the lnsurer of any rlght of aubrogaton agElnst Landord,
its partners, membgs. fficers, emfloyees, and stockholders wttlch mlght arlsa by reasr of any payrnent
under suctr pdir:y c by rcaeon of any acl or omisslon of Landlord or such other psreorts. The limlb ol h€
pdlobs of trsrranc€ requhed b be Gatflod by Tenant pursuant to thls futhle S shall not llmlt ths llabllity d
Tenant or relieve Tenant of any obllgafion under thls Leas€.
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and nom rme to o*",$1, **3lH,,srlu^I",$iltr1;H,i:Rr,,Hffi"iiffi'ffi ililh"il
eacn poilcy of lnsrnanca required to be oarrled by Tonant pursuanl to this Sectbn 9.1, a certfficate of the
lnsurer (wthh for pmpetty lnsurarra ahall be at laast ln the form d ACORD 27) cerlifying in fsm
reasonably salbfactuy to Larrdlord trat a pollcy hirs bccn lrsu€d, prunhrm pald, provldlng the covemge
requked by hls Sedlon 9.1 and contalnlng the provlslone spect{led herein. lf Landlod wlshes to revbsv a
copy d Tenanfa lnsurarrce pdlcles requlred hereunder, Tenant eha! make such coples avallsble at
Tenents thon headquarters bulldlrq for Landlord to ravlew wihln flw (5) bushees days after Landord's
wrlllen requsl. lf Tanant ehall fall to procure such polclet of lnsurancs, or to ddtuer such policbs or
cerlifl@tes, as and when requlred horannder, Landlord may, at its ogbn, ln addltlon to all of its oltcr
rlghts and remedles under thh Leasa, and wltrout regard to any nolhe and curs perMs eet forth ln
Secilon 12.1 bdar, upon three (3) fuslness day'e written no6oe to Tenant, prccur€ such pollcles for the
account dTenant, and the cost thereof ehall be paid to Landlord as Additional Rent withln thlrty (30) dala
after delivery d a Hlls therefor. Tenant shall prwide Landlord wllh odderrce of each rsnau,:d or
replacement of any such lnsurance wltldn ten (10) days d Landlord's uwltton dcmard lherefor addressed
to lhe atenti,ofl d Tenant's Rlsk Managernent Depailment. lf at any trne during the Lease Term the
amount of coverage or type d lnsurance whlch Tanant ls reqrked to csry under thls Arthle I ls, ln
Lardlord's rcasonable firdgment, less lhan or other lhan the amtrrnt or type of lnsurance typlcally
'rcquired by landlords of other multl-lenant office bulldlngs of compaaHe age and condltlon located In
Bolse, ldaho, Landlord shall have th€ rlght to resllre Tenanl to lncrese tha amounl or changE or add to
the insurance requFed of Tenant under this Artlde I ln order to conespord b the coreragm or tnes d
lnsuranca Walty requhed by landlords of dher mulU-{snant office buildingo of comparable age and
condltlon located ln Bolse, ldaho. ln no avent sha[ lhe future rcqufitment of ddttional lneunance sst
forth ln the precedlng sentence otceed the following limilalions tfrhout tfu consent of Tonanh (1)
monetrary lncremes shall not excead $5,000,000 and (2) addltional ooverage types ehall not be required
unless g@!ly requlred by moot landlords of other multi-tenant offce bulldlngo of comparabls ago and
condltion ln the Unlted State6.
9.2 Landbrd's lnruranca. Wilh respect to insurance mdntairmd by Landlotd:
(a) Lendlord shall maintaln, a8 th€ minimurn oorreragp requhed of it by lhls
Lease, fire ard property damage insurane in eo+8lled noauses of loss+pechl brm" lnswlrlg Landlord
(and sudr ofrars as Landlod may deslgnate) agalrst loss ftom physicd damage to lhe Bulldlng wlth
coverage d nol lcs lhan one hundred p€rc€nt (100%) of he replaoement ooet hareof. Such ffre and
property damagp lnsurance, at Landlord's electon but wittrout any requirement m Landlord's part to do
so, (i) may be written so as to exclude those perlls commonly otc{uded fron sudr cov€rag€ by Landlord's
then property damage lngurq: ard (ll) may be erdorsad to covs loes or damage oaueod by any
additional perls against wtrlch Landbrd may eled tro lnsure, hcluding terorlsm, polluUor or
contaminaton, earthquake and/or flood; and/r (lll) may provlde txrvetage for lcs of Rents for a pabd d
up to trruelve (12) months. Landlsd ehall not be requircd to odrse such insurarEo to corcr any d
Tenanl's Propery or any modifnatlons, alteratlons or lmprcvernents r eonetnnbd by or for Tenanl to or
wihh the Prernlses.
(b) L€ndlord shall malntain commercld gnnerd lleblfity lnsurancs insufing
Landlord (and strch others as ae deslgnat€d by Landlord) sgainst llabtlty for pstonel lnlwy, bodlly
injury, death, and damage to prop€rty occunlng ln, on or about of reufthg ftom he uso or oocupancy of
the Property, o any porlion thored, with comblrred sittgh limlt covcnage of et least Tuo Mllllon tlollae
($2,000,000.00). Lardlord may oarrysuch gt€ater oo\roraga as Landlord or Landlord'a Lender, lnsurance
broker, advleor or counsel may frun time to lime determlne is reasonably nocessary for Ore adesrte
protoction of Lardlord and the Property.
(c) Lsndlord may malnbin any othu hsr.rance whlch in the oflnlon d ils
lnaurance brokor, advisor or legal cqrntal ls prudenl to carry urder tho glven ciranmstances, prorlded
eudr lnsurarrce is commonly cenbd by ovners of plop€rty slmilarly situated end opoftiling under simfla
circumelancos.
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(d) With ree@ to any pollcy or pollcias of lnsurance malnEined by
Landlord heeunder, Landlord may obtaln suct lnsurance for the Brlding and/or Common Aflras
eeparately, or togetnr wlth other bulHlngs and lmprq€ments wtridr tendlord decb to lnsure togelher
under blanket poflcles of lrsurance. ln suct case, Tenant shall be llabb on]y fo Tenantb Share of swtr
portion of Sre pomlume fur such bhnket polid€o as are allocaUa to he Buildlry andlor Coeirmon Aroas,
as reasonaHy delennlned by the lnsurer or Landlord.
0,3 llufual Walver of Subrogntbn. l.andlord heoby rdeeses Tenant and ltr oflicars,
dkeotors, employeea and agentr, and Tenant hereby releasss Lsndlord and its offlcers, dkec'tors,
emploloeo and agents, from any and all liabilfty for loss, damage or hjury to the property d $te other ina about the Prqnlses o the Property uuhhh ls caueed by or resulls from a perl, whlcfr ls oovered by
propsrty insuranoe (a) acfually carlod and ln force at the time of the loes of th6 party sustalnlng euch loas
o (b) raqulrad by thle Artlcle I to be carried and in forcs at the Ume of lhe loss of the party susblnlng
such b6s. Landlord and Tenant each agraos that any fre and propdty damago lnsurance pollcy rcquked
to be canbd ll under tHs Mide I wlll indude such a clause or endorsement-
Arthb t0
DAI'AGE TO PREIIISES
'10.1 Lcndlord'g Duty to Rsetore. lf the Premisee, the Bulldlrg or the Common Areas are
damaged by any perllafrer he Term Commencoment Date, Landlord shall rsotore fie same, only as and
when requlred by hls Sectlon '10.1, unless hb Leage is tsmlnatad by Landlord pursuant to Sectlon 10.3
or by Tenanl pursuanl to Sectlon 10.4. lf his Lease b not so termlnalEd, then upon the lssuance of all
neoessary go/ornmental permlts, Landlord shdl commencs and pros€dtte, sublect to Force Majeure, the
rsstoratlon of tp Prernbes, Bulldlng or Comrnon Ar@s, as the case may be, to lhe odent then allowed
by Law, to gubstantlally the same condition ln whlcfr lt altbted as d lhe Term Commencement Date.
Lardtord's obllgatlon lo rsstore sha[ be llmiled to the improlements construct€d by Landlord.
Notntdthstanding arUffilng to tte contary lrrdn, Landlord slrafi have no obllgstion to testors any
alteratlons, modlflcatlons or lmprovemenE mde b the Premlses by or on behalf d Tenant or lo r66torG
any of Tenanfs Propedy, and no damagns. compensatlon or daim shall be payable by Landlord for
lnconwnlence, loss d business or annoyanoe suffered by Tenafi as a rasult of any repair or rosbration
d any portbn d the ftemlsaa or any othar pert d the Prop€rty perfonned by or on b€half of Landbrd.
Upor corrpletion of the regtoraton of the Premlso€ by Landbrd, Tenant shall forthplth replace or fully
repalr all of Tenants Propcrty and any alterations, moditioations or lrnprwernenb constructed by or on
behalf of Tenant to subotantlally the same conditlon as existed at ha tlma lmmedlably prior to auch
damage or detructbn or to such other condilions as Landbrd may, ln lts rcasonable dboetbn, then
approve ln wdtlng.
10.2 lmunnce Proceedr. All lnsurance Foco€de avdlable fiom any 0re and prcperty
darnage insuran@ oarrlsd by Landlord, tf any, shdl be paH to ard rcmaln the propcty of Landlord, tf tt$s
Leaesls terinlnabd prrsuant to elher Sec{hn 10.3 or 10.4 belour, all lnsurance proceeds avatable fronr
insuran6g carrlsd by Tenant shal b€ pald to ard become the property of Tenant. lf Stis Lease is not
terminated pursuant b eith€r Sectlon 10.3 or 10.4 bdot all lnsurance proceeds evallabb from insurance
canled by Tenant whbtr cover lcs b proporty that ts Landlord's propaty ehall b€ pdd to and become the
property of Landlord, and ell proce€de avafiable hom sudt lnsurance whk*t oover loes to properly whlcft
woutO onty bacome the property of Landlord upon the tenninaton of thts Leaso shall be pald to and
rcmain the property of Tenarrt. The detqrninatlon of Landbrd's prope*y and Tenanl's prop€fty sha0 be
made pursuantto Secdon 6.2 aborc.
10.3 Larrdtord'r Rlght to Termlnate. Landlord shall have the optlon b termlnate thls Lease
ln the evsflt any of the follonrlng o,ocursr w?thh optlon may be exefclsod only by ddlvery to Tenant of a
unitten notlcs of dectlon lo terminate wlthln elxty (60) days after the date of such damage or deelrucllon:
(a) The whole or a suilitantlal portion (1,e. fffiy percent 150%l or more of the
floor area) of 0rs Property (including premises oher than the Preml*es) ls rsndered unlenantable ln
l-andlord's good falth estimatlon, and Landlord elac{s to terminalo ths leaes of all other tenants of the
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simllerly affected by the and whoee laases give Landlord tha rlght to termlnate the
(b)
floor ls randered untenantable ln
(c) The Bullding b damaged by an unlnsurcd perll, ufilch perll Landlord was
not rsqulr€d to ln$Jrs agnlnel by reason of Secilon 9.2(a) above;
(d) The by any perl and. because oflhe Law: then ln
(ll) if reetored, cannot be used for theforce, the Bulldlrg (l) cannot be reetored co8t, or
Thlrtfthree porcent (33%) or more of the floor area) of fie Premlses ls
ln during the laet tuolve
by notlce d same to Landlord wilhln ftfleen I15l days of Tenant's recelpt
termination notice),
lf Landord termlnatee thls Lease In accordance with thls Sedion .l0.3, such termination shall be
terminallon notice, whldr date cannot be less than five (5) nor
10,4 Tenar*'r R[ht to Termlnate] lf the Premlses, the Bulding or the Common fueas arc
damaged by any peril and Landlord does b not entided to terminate
lhls Lease 10, th€n as stxln as reasonably praclicable urrder the clrcumstgnces,
to when the restoratlon work
terminats thls Lease ln
dellvery to Lardlord of a uriften of
Tonanl recelvos from Landlord such estmats of the time neoded to comptete such restoratlon (whhh
tennlnatlon shat be EfHhts on the date speclfied in suoh notoe ftom Tenanl wtrlch dato cannot be lest
than llw (5) nor more than $rkty (30) daye aflc the date Tenant deltuers its tennlnallon rptice to
Landlord):
lf lho tlmo eeumated to substantlally complete the restoration exceede
rendered untenantable
more of the fioor area) of lhe Premises is
the damage ocflrrs dudng tho laet turelve(r
to) The Eulldlng or Promises ls damaged by any peril ard, because of the
Laws then ln furce. the Premlses, if resld, c€nnot be ueed fior substantldly the same use belng made
thsreof before such damage.
ln ad<lition, lf the Premlses shall not have
b€en
wrltten $ven after lhe end of suoh unless
lf Tenant temlnates lhle Lease ln accordarrcs
wih the precsdlng sonlerrce. such shall be effecltue on lhe date in Tenant's
termlnaUon noUce, which dato cannc{ be le$ than flvs (5) nor
Tenant delfuers lts termination notloB to Landlord, Furllermore, lf after
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after lhe dato
determlnee ln good fafth thal reetoratlon cannot be completed wlth euch six (6) month period and gircs
written notk s to Tenant d the esUmated addltlonal tlme to complete lhs reetoraUon, Tenanl may
tsrmlnate $tb Lease by wrltbn nolbe to t ardlord dellvsrsd wlthln lhlrty (30) deys after Tenant's recdpt d
Landlord's wdten nolh€. lf Tenanl termlnates lhls Lease ln accordance rrdth the pracadlng hm (2)
$entenqes, such termlnatbn shdl be frective on he dab specilied in Tenants terminafon notlco, urfibh
date cannot be less than ffw (5) nor mqa than lhlrty (30) dayt after the dato Tenant ddirrers its
termlnatlon notice b Landlord. Tenant shall not havc lhe rlght lo ddMer a lermlnallon noffce efler lhe
applbable responoe perlod has explred.
1O.5 Wilylr. The provislons of ttls Arllcle 10 shall be conskiered an express agreement
goreming any instance of damry or destruction of the Building or the Premlses by llre or oher casuaky,
and any Laws norv or hereafter In force provldkp br such a conlingnncy in tho abssnce of express
agreement shall have no apdlcatbn, and the pattleo hereby walve the provlslons d any srrch Laun.
10.6 Abdemont d Rsnt. ln the weart of damage or destrudion of the Bulldlng or Sre
Premises by llre or other casualty, povided he damage w* nc,t caned hy the negllgtsnce or w{[fu|
mbcondud of Tenant or any Tenant Party, onfi the Base Monlhly Rsnt and Tenant's Share of Building
Operating E:<penses shdl be temporadly abated from and affer the date of he casualty untF Landlord's
restoratlon is comdels or this Lease ls tsmlnated ln accordance wlth Sedlon '10.3 or 10.11 abova Strch
abatement during erch pedod ehall be in proportlon ln the degree to uAl& Tenant's use of lhe Premlses
ls lmpaked bysuch damage.
10.7 Efftcl of Termlndbn. lf Tenant or Landlord shell tenninate lhis Lease in aocordarre
wlth th€ prwislons d thls AtlftCe 10, the leaea Term shall explre upon tha data speclff€d ln the applbaHe
termlnation provlsion of hls Atllde 10 as fully and completely as lf stdr date were lhe Lease E)Ahatlon
Date and Tenant shall forlhwih guit surrender ard vacate lhe Prefiis€s in accordanca with the terms ol
thls Lease wlthout prefudice, ixrusver, lo ellher partls rlghte agalnst the olher under tho provhlons
hereof ln efi€ct prior to such termination or wfilch by tfu o<press terms of Sris Lcaso survke termlnatlon,
and any Rent owing shall be pald up to he date of ErmlnaUon (lt being acknodedgred lhat lf the date of
the casualty shall not be the firet day of a month, he Rent shall be prorated on a por diern basls) and arry
paymants of Rent made by Tenant which were on account ol any perlod subsequent to sucfr date shall be
retumed to Tenant
Artlde ll
GONDEITNATIOI
11.1 Tenentb Right to Teratlnate. Except wlth reepect to ternporary taklngs, Tenant shall
have the optlon to termlnate thls Lease lf. as a resuft of any taklrp, (a) all of lhe Prernlse is tak€n, (b] a
portion of ths Prsmlsos ls taken and the parf of the Premlsea lhat remalna cannot, within a reaeonaUe
perlod of Ume, be made reaconably sultabb for he contlnued opera0on cf Tenanfe budnem, (c)
because of tre Lafls then ln force, lha Pramieee cannot be used fior subelantlaly lhe same use baing
mde lmmediably prlor lo such taking, or (d) more than fifty percenl (50%) of the parklng spacos in th€
fullding 8 Pa*lrB lot are taken and Landlofd ls unable to provide Tenant wlth substantldly he same
numbs of p*klng sprcss avalhble to Tenant urdar tho brms of lhls Lease lmmedlfrly prlor b the
hklng at a Iocatlon reasonaHy pmrknate to the &rilding. Tenant must exerdge such opUon wlhln a
reasonable p€riod d tlme. to be dsstlrc on the later to occur of (i) tha date that pGsebsion of tha
condemned portlon of the Premlaas that ls bken by the condernnor or (ll) the date Tenant vacated the
Premlses.
11.2 Lardlod'e Rlght to Tarmlnale. Except wlth r€spsd to temporary laklngs, Landlord
shall have lhe optlon to termlnate lhls Lease lf, as a rasult of any traken, (a) all of lhe Premleee ls taken,
(b) a portion cil he Premises ls taken and the part of the Prernbes hat remalns cannot, wlhln a
reasonaHe palod of time be mada reasonaHy eultabla for lhe continued operaUon of Tenant's buslness,
(c) because of ttp Laun then in fome, the Premlses may not be used for the same u8o belng made
bsfore such hklng, wfrether or nd rastored as requlred by Seclion 11.3 bdor, (d) lhirty thres porcent
(33%) or more of thefloor area contalned ln tre Building ls laken, or (e) if padriq spacos h the Euildlng 8
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Parklrq Lot are taken reducing lhe rnrmber of parkhg spsoes to less lhan lhe number reqrked by Law,
and Landlord ls unable to prwUe Tenanl wlth tha noaBosary parfirB spe6s at a location reasonably
proxlmate to the Bulding. Any oucft opUon to t€mlnate by Lardlord must ba exerclsad wilhln a
reasonaHe padod of tme to be etrectlve as of the date possession Is bken by th6 condemnor.
11,3 Redoratlon. lf any part d the Premises or Bulldkrg is taken and thls Lease ls not
terminated, lhen Landlotd shall, to lhe oxt€nt not prohhlted by tha Laws then ln forte, rapalr any damagp
occasioned thereby to lhs remalnder thereof to a cordltlon reasonably sultable fur Tenan(g contlnued
operalions and othcrwlm, to the er6nt praotbable. ln lhe manner and b the extent pmvlded In Sectlon
10.1. Notlulthslanding lhe foregt*tg, Landbrd, ln eftuctkrg such repalrs, ehall nA be required to spend
more than the amount d the condemnalion pmceeds recdved by Landbd. ff any part d the Prsnbes ls
taken, this Lease ls not tormlnated, and Landlord repalrs any damagp occasbned by such lakirp, (a)
Base Monlhly Rent and lhe amount due under Sec-tlon 3.2(a) abovo shall ternporarlly abatE during the
pedod d Landbrd's rspalrs ln proportion in the degree to whbh Tenant'6 use of tha Pmmls$ b impelrod
by Laodlord's rapairs to the Ptemlsss, and (b) bllotndng comdetlon dthe rapairs Base ltiontHy Rent and
Tenants Shate shall be reduced ln proportion to the reductlon ln sqmre tootag€ of the Premlsos due to
the taking.
11.4 Dlvislon of Condemnatlon Award, The snlirety of any award made for any taklng of
the Property or any pudon 0tcroof shall belong excfuslvely to and be pald excfusfuely to Landlord, and
Tenarfi hereby asslgrs to Landbrd all d [s rhfit, tlUe and int€rest in ard to any suc*r arvard; exoryt lhat
Tenarrt shdl have he right to flle any aeparate'clalm arallable to Tqtant for any hking d Tenantb
equipment personal property and flrilures belonging to Tenant and renrovabta by Tenant upon the Lease
Expiration Dab pureuant to lhe terms of thls Lease, for tha unamortH coet of leasehold lmponemeds
inetalled ln the Premiees at Tenanfs 6!gens,e, and for movlng €xpanses, so bng as such clalm does nc{
dimlnlsh the award avallable to Landlord, its ground lessor wlth respeot to he Prop€dy (lf any), o any
Lender, ard such chlm ls palraHe separately b Tenant. The righb of Landlord and Tenant regardlng
any condemnatlon shall be detormlned as prorrlied ln thlE Article 11, ad each party heraby wafues ths
provisiom of any Larrc now ln effec* or herelnafter enacted allouing ellher party to termlnato thig Lease
or othenilise allocate condsmnaUon arvards betvreen Landlord and Tenant in the evsrt of a tatJng of the
Premises.
l l.5 Abeteinent of Rcnt ln the event of a taklltg d the Prsrnlses wtrhh doee not rssult in a
termlnatftcn of his Lease, thsn, as of the date pogs€Egion h taken by the condernnlng authorlg, the Basg
Monthly Rsnt and Tenanfs Share shall be l€duoed ln the eame proportbn lhal tlte erea of lhat pert d the
Premises so hken (ess any addifron to lhe area of the Prembes by eason of any r€construc-llon) bears
to tho area of the Prernb€G lmmedhlety prlor to such takhg. lf this Lease ls termlnated puBuant to tHs
Arlhle 11, Rent shell be apporlloned as of tho dat6 posseesim cf tho Premlsa ls taken by the
condemning authoritY.
11.6 Taklng Dcfined. The term 'laklrB' or'taken' as w€d in thh Artlcle 11 ehall mcan any
bansler or conv€yenoo of all or any porllon d he Properly b a puUlc or quaslaublle agency or other
entlty havlng tha poimr of emlnent domain pursuanl to or as e reeuh of the serclse of sudr porer by
such an agpncy, includlng any lnverse condemnallon and/or any salg or tansfer by Landlod of all or any
portlon of the Property to such en agency under threat of cordemnathn or lhe exenise of such pouer.
Artlcb {2
OEFAULT AND REIIEDIES
121 Ev.ntl of Tcnands Drfrult Tenant shall b6 ln mabrid default ol ttr obllgntiona under
this Leasa ff any one or mor€ of the followlng events (lndMdually, an "Evant of Ddau['; colbdlvely
"Evenb of Defaulfl ) ocur:
(a) Tenant ehall have Ialled to pay any Base Monthly Rent or any Mdlllond
Rent when due, and such falure shall conUnue lor flve (5) da}a af,ar Landlord delivers wrltbn notlce of
srrch falfure to T€ilant; provlded, hovrmvr, tf Lardlord has ghrcn suoh unlten notioe on lt ,o (2) occasbns
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during the immdiately prsoedlng tu,elw (12) month porlod, frallure to pay any Base Monthly Rent or any
Addltlonal Rent ufren due ehall onstt ts an Ewnt of De#adt wl8tout any nolice required to be glven by
Landlord;
(b) Tenant shdl have vlolated any term a prwlsbn of Arllcle 7 and falled to
ctre the same wlthln ten (10) days afier recept of wrltten notlce of sudr vlolatlon from Landord;
[ :":f.f:'il':X* " execure and ddrver an eetoppd cerriricats
wllhln lhe 0me frame ep€dned h Secton 13.6 belour, and such hllure shall conllnue for five (6) days aftsr
r€celpt wrlfren nolhe d such failure to Tenant
(e) Tenant ghall have lalled to execute and ddlver any doorment o
lnstrument required to be ddlvered by Tenant under Sec'tbn 13.3 bobw wllhin the fime frames epecllied
in Secllon 13.3, and such fallure shall contnue fur live (5) dave aftr rcceipt of wtten nothe ol such
fallure to Tenant;
(f) Tanant shall harre fa[ed to comply whh or perform any brm, covenar{ or
oondtlon of thls laase (other than a dsfault described ln Suhec{ion (a), (b), (c}, (d) or (e) abore) that le
not cr.rred within hlrty (30) tlays afier wrltten notice fom Landlsd to Texrant spcclfrng ths nature of auch
defaulq prwHed, hoilever, that lf sucfi default cannot reasonaUy be qrrcd wlthln saH thhty (30) day
perM, ttren Tonant shall haw suph addltional tlme as m6y rsesonably bc necasaary lo crtre the breaoh
so long as Tenant commenceE cure of such default within he orlglnalhlrty (30) day pedod and ltrcreafter
dltlgently pureuc the same b complellon;
(g) Tenant tr any guaraotor of thls Lease sfiall have permltted or suffsed
lhe sequesfation or altachment of, a exeortlon on, or the appolntnsnl of a custodhn or recehrcr with
rcepect to, all or any substantlal pert of he property or a$6ts of Tenant (o suctt guarar[or) or any
property or asset essenlial to the conduct ofTenan{s (or such guaranb/s) businesr, and Tenant (or such
guarantor) shall have falled to obtaln a retlrn or releasa of lhe same wlthln $lrty (gl) daye tlrereaf,er, or
prir b sale pusuant to such sequetratlon, attactment or !evy, whbheve b earller;
(h) Tenant or any guarentor of trb Lease ehall have made a goneral
aaslgnment of all or a substanUal part of ils asseE for the benet[ of lts creditorc;
0 Tenant or any guarantor of thla Leaso shat have allowed (or canght) to
have 6nter€d ryhet lt a dooee or order whlcfr: (l) granb or conslltutes an order for rsllsf, appoinbnent
d a trustgo, or condemnation or a reorganization phn under the bankrup{cy Larc d the Unlled State5;
(li) apprroves as properlyflld a pelitlsr seeklng liquidatlon or reorganlzalbn urder sald bankruptcy Laurs
or any other deb@s rdd lar or glmlar straUte of he Unlted Stabs or any stab tharcof; or (iil) ohcnrlse
dpect6 the wlndlrg up or llquldatlon of Tenant; provlded, trowever, f any decee or order ttras snt€rsd
wlthout Tenant's consent (r orer Tenanl'6 obJedlon, Lardlord may not terminate thls Lsasc punuant to
thle Subsectlon lf such &ee or order ls msdnded or rwersod wlthln thlrty (30) ds),s aftq its ciginal
€nfy;
0 Tenant or any
protec{lon of any debtot'e rellef laq moatorium
sntry of a rbcreg orotd€r.
12.2 tfldlord'tRemcdlo'
guaranlor of thls Lease shall hsve avallEd ltself of thelal or other slmllar law wtrhh doe rrt{ require the prior
(a) ln the event of any default by Tenanl, and wihout limitlrq Lardlsd's
dght to indemniftcalkm as provlded ln Secffon 8.2 abore, Landlord shdl haw lhe fdlorlrg remedleq ln
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addltlon to all other rlghts and remedlas provlded by Law or oth€m&a prwHed ln thb Lease. to wtrictr
Landlord may r$ort cumulatrrely, or in lhe alternallve:
{0 landlord may, at lb dectlon, keep hb Leasa ln effect ard
onfonco, by an aclion at law or ln equlty, all of lb rbhts and rernedles under thls Leese lncluding, wlthout
limllatlnn, (i) lhe rlght to recover the Rent and other suma as lhey become due by approprlals l6gal
aotion, (ll) 0rE right b make paymenF required by Tenanl or perfum Tcnant's obligatloos and be
relmbtrrsed by Tenant for tte cost thoreof with lnter€Bt at the Default Rale frorn ha date he sum ls pald
by Landlord unUl Landlord b relmhrsad by Tenant, and (lll) the remedles of h|.ncUve reliet and specllic
performance to prevenl Tenantfrom violatng lhe terms of thls Leas€ arxUor to compel Tenant to perlorm
Its obllgatlons under this L€asa, as he case may be.
(10 Landlord may, at its sole opllon, t6rmimt6lhls Leaee, by notlce
to Tenant vuhereupon thls Lease shall termlnate as fully and completef as ff the date d Landlord's noticg
as afuresaid r*ere lhe date hereln orlglnally med fior the expiratlon of lhe LeasE Term, Tenant hereby
wahlng all statutory tights (irrcludlng, wllhout limihtlon, rlghis of re&mplbn, if any, to the oxtent euch
rlghts may be lawfrdly walved) ocapt thal Tenant shall contnue to be liable to Landlord as provided
hsreln. ln lhe evant of such brmination, Tenant shall imrusdiately aurrcnder the Premb€s to Landlord,
and lf Tenant falls to do so, Landlord may, wihart preiudke to any otlrer ramedy u,,hlch lt may luve for
possosshrn or anearagos ln Ront, snter upon and take possssdon of the Plwnlses and expel or l€mo/s
Tenant ln amrdance wilh all appllcable Laws and any other Person who may be ocorpyirp the Pnemlsestr any part th€r€d, wlfiout belng llaHe for prseantion or any dalm or damagae lherefor. Any
tennlnallon under this Subsectm slcll not relieva Tenant frorn lts oHlgatlon b pay to Landlord all Base
Monthly Rent and Addltbnal Rent then or thercaffer due, or any cflha sums due or hereafE acuulng to
Lardkrd, or from any claim against Tenar{ fa damagee prwlomly accrued or then or thereafler
accrulng. ln no event shall any one or more of the foflowlng ac$ons by Landlord, kr the abs€nce d a
wrlttan elscdon by Landlod to teminate hle Le*e mnstitute a terminatlon of this Lease.
(il0 Landlord may appolnt a recdwr or keeper ln order to protecl
Landlord's lntereot hereu nder.
(lv) Landhrd may take any actlon which is intended to miligate the
adverse effects of any brcach of Bils Lease by Tenanl, Indudlng, wlhout llmltatbn, any action takefl to
malnlaln ard prcoewe the Premlss or any ar:tlon taken to relet the PrEmlses or any prllon thereof ior
the account at Tenant.
(b) f fouoruing an Event of Default thle Leaes shall have been termlnated as
provkled in thls SecUon 12.2or olherwtse in accotdance with Laq or lf any executlon or attachment shall
be lssued agalnst Tenant or any of Tenant's property tflhoroupon lhe Premlses shall be traken or occt4fed
by someone ottrer lhan Tenant then Landlord may, without nollce (unlees rrctlce is requked by Laurc), re
€nt€r the PremEes, elther by summary prcceedln$ or any other lawful proceeding or msanst and
namo\6 ard dlspossess Tenant and all o[pr Percons tr any end all property from lhe same, as i[ the
Lease had not been mde. tf Tenant fails b rsrntnre lls property after written notlco frorn Landord,
Landlord may, at lta optlon, remove and store any of Tenants efieds, and thooe of any Persms dalming
by through and under Tenant at the €xPonse and rlsk of Tsnant.
(c) lf hb Leasa shall have beerr termlnahd as prwlded ln thls Seclion 122
or othenrlse ln accordance wlth Latir, at the dectlon d Landord exerc{sable at any Um€, Landbrd may
reoorer from Tenant all damages that Landlord may suffer or lncr by rsason of Tenanfs d€frrlt
lndudlng, wlthrut llmltatlon, a surn whbh, at the date of euch termina0orl tepresents the wlue of:
(l) lte otcess, lf any, of the Rent Mdltlonal Rent and all other
sums whlch urouH haw been peyeble urder this Lease by Tenant for the perlod commenclng sith he
day followlng the date of such termlna$on ald endlng wlth the date the Lease Term trculd haw nalurally
orplred had ttrls Lease not bean tsminated, olref lh€ aggfiegste reasonable rsntal value of ttrs kemls€g
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for Sp period conmencing with the day following the dats of suclr bmlnalion and ending wlth the date
the Laase Term urpuld have nalurally otplrcd had lhls Lease nol been termhated; plus
expongeS
reasonable
(li) the costs of rccorrerlng poes$slon of the Premlses and all olher
reasonably lncurned by Landlord dua lo Tenanfs delault lrrcluding, withant llmltaton,
attornep fees and coets; plue
([i) Sre unpald Renl, Addltional Rsnt, and other sums payable by
Tenant undcr thls Lease earned as of the date of termlnafion; plus
(iv) any other sums of money and damagm orvlng under lhis L6ase
by Tenant to Landlord on the date of tcrmlnation or in connec,tlon with he Pramlses;
all of which shall be deemed lmmedlately due and payable.
The amount of lhe excress ln clause (c)(l) above shall be dlscounted to prssont valuo al a rate per
annum of dSht percent (8%). ln delerminlng the 'aggr€gato reasoruble nental 'ralue of lhe Prernises'
pursuant to dauee (c)(l) abore, the partles agree lhat, at the 0ma Landlord sedre to anforce thb remedy,
all relanant factors shail be consHered lnch.lding, wlhout llmltaton, (a) tho length of time remainlng ln the
Lease Term, (b) the then cunent martet condltlons ln Bolse, ldaho, (c) the llkellhood of reletling the
Premiss€ for a perlod of tma equal to the remalnder of the Lease Tcrm. (d) llte not ffectlve rental raEs
ttnn being obtalned by landlords for spaoe of eim[ar slze and type in multi-tenant offlce h.rlldingo d
comparabla age and conditlon ln Boisq ldaho, (e) the rracancy lwds h lhe dflce qarket in Bobe, ldaho,
(f) arner* l€r/als of new constucton hat wfll be complebd during tre remalnder of the Lease Term and
horv &rls eonstruction uill likely affec-t vacanoy rat6 and rcntal rates, and (g) lnflallon.
All amounls due under thls Sectbn 12.2lcl shall not be desned a pendty but shall oonstitute
payment of llquidatcd damages, lt bdrq understood and acknowledged by Landlord and Tenant that
actual damagos to Landlord are el$emdy dlffcxrt, if not impwsiblo, to ascertaln and said llquldated
damagea ano e r@Eonable esilmate of actual damages.
(d) ln case of any Event of Detault deccrlbed in Secflon 12.1 aborre, re-
entry, oxplretion or dlspoe.session by surnmary proceedlngs or olher lautlUl proceedlngs, Landlord may (i)
rdet the Prcmlsee or any part or parts thereof, elthq ln lhe name of Larrdlord or otharwiso, for a term or
terms whbh may, at Lardhrd's optiorl b equal to or hse than a exceed he perbd whldr would
olhenrlse have conetltuted tho bahnoe of the L6eso Term d thls Lease and may grant r€asonable
oonceselons or fies rent b the ortsnt that Landlord coneHers advlsable and necessary to rclet lha same
aM (ll) may make Guch roasofiable alteratbng, repaks and decorationt In the Premisos as Lardlord ln lb
sols ludgment considars advisabb and necessary fol the purposos or releting fie Prcmlscs; and lhe
maklng of eudr allsrations, repalra and decoratlons shdl not operato or be mnstued to releaso Tenant
ftorn liability hereunder as abreald. Tonant kreby erpessly walves any and all rights of redenpllon
granted by or undar any presant or ftrtrre Lauo ln the event d Tenant belng evicled or dlsposseased, or
in th€ evont of Landlord obtalnlrp possesston of ths Premlses, by rsason of an Event of D,ehult.
(e) Any agreement by Landlord for fres. reduced (lnduding the Monlhly Rent
Credlt), or dlscornted Rent or olher draqes appllcable to lhe Prenbes, or for the gtulng or paylrE by
Landlord to or for Tenant of any c*h or olher bonus, lnducement or consl@ation for Tenanfs enhrirg
into thb Leaso, all of whlch conceesions arc hereinafter rsfunsd lo a "hrducsnent Provlslonr,r shall
be deemed onditioned upon Tenant's full and falthful performanco of a[ d lhs terms, covenanls and
condltlons cf this Lease to be performed or obseryad by Tenar* during the Lease Term. Upon the
oacurenca of an Evcnl of Defail. any sttch lnducement Pnwbbns shall automalbally be deemed
d€lstd ftom lhle Lease and of no furthgr brca or etrect anC any RenL other charge, bonus, credlt
(lnduding the Monthly Rent Credlt), conelderation or olher lnduoamenttherelofore ababd, given, credited
or pald by Landord under sudr an lnducement Prorlslon shdl be immedlatdy due and payafrb by
Tenanl to Lardlord, and recoverabla by krdlord as AddiUonal Renl due under thls Leas€,
notwlthstandlng arry subsaquent cilre of sald Evant d Defuult by Tenant. The accsptance by LaMlord d
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Rcnt or the cure of lhe Event of Default whioh lnitiated the operatlon of lhls $ection 12.2(e) shall nol be
deemed a waivs by Landlod of the provisions of thls Secdon 12,2(e) unless opeciflcally eo stated ln
uriUng by Landlord at &e llme of sufi aereptance.
12.3 Landbrd'g ffieult and Tcnanl'g Remedhr. lf Lardlord falls to perform its obllgalions
under ttis Lease, Landlord shdl not be in default under the terms of thh Lease unless and unUl Tenanl
shall have first glwn Lsnd.lord vvrltten notice cpecitying he nature of sudr faflure b perform lts obllgdlons
(a "Notlce of Landlotd l}dilrlf) and then only af,er Landlord shall haw hd thlrty (30) days followlng lb
reco$t of euch notlca within whbh b perform such obllgations; provHed, horrvover, lf (subjec{ to section
13.9) Landlord lails to do so wlthln sald thlrty (30) day perlod, Tenant shall povlde: (l) an addlUonal notfrr
of default dter receld of whlch, Landlord shafl have an addltional ten (10) day perbd to psrform such
obligetbns, and lf tandlord has still falled lo perform euch obligatiors afier suct ten (10) day perlod, (ii) a
ffnal mticc that Tonant has elec'ted b proceed ln any manner authorhd herstrnds in lhe event of e
Landlotd deilault, In the ever[ of Landbd's default as above set furlh, lhen, and only lhen, may Tenant
than: (l) praeed ln equlty or at law to oompel Landlord to perfurm lto obllgallons; (li) to recover damagae
proxlmately caused by suofr default (except as and to the extent Tenant has walved ils dght lo dameges
as prwided ln lhis l-ease); andor (lll) perfonn Landlord's obligtstlons and offset all reasonable cosB
lhereof agalnst Tenants Base Monthly Rent obligetions accruing theroafler. Furthermore, lf any Landlod
default prcvents or mat€rially lmpahs Terunfs use d one-half of a floc q mqc d tra Prcmises for morc
lhan ftre (5) consecutfue budrpss dayr ailler wrlten notice gav6n to Lsndlord, and Tenant sctualty
vacates one,half d a fioor or mot€ of the Premises by raason of sudr lmpakment for sudr period, than
prwided no Tenant Event d Default er&B at lhat time, and provlded hat Tenenl conlkrues to nd occupy
a half-floor or moro of the Premlscs b€oause of euch impalrmenl, tlren Bass Monthly Rent and Tenanfg
Share of Btfidlrq Operaffry Expenses ghall abate proportbnately h ha portlon of the Premiees so
afiBcEd and so rracated byTenant untll the impalrment ls qred or unlil Tenant reoccudes sudr portior ol
the Prernlses prftr to such cure. Notuvlthstandlrg anythlng to the contrary contalred ln thls Leasq
Lendlord shall not be r€qul,€d to uUltse any back+p generator(s) orurcd c operatad by Landlord on the
Property to provide lhe sendces dgsctlb€d in Sgctbn 5.2 even if lhe supply of elecffic cunsnt lo the
Bullding ftom utlllty companles ls halted, interrupled, or olhawlse qrrhlled.
12.4 Walver. Tenant hereby wafues, for ltself and all Penons clalming by, through, or under
it, any rlght of rcdemption, relnstatoment, or fu $e restoralion of tfu operdon of thh Lease unde arry
prqsent or fuh,rr€ Laun in case Tenant shall be lawfully dbpoesessed for any cause, or in oase Landlord
shall lawfully obtaln poeseeslon of the Premises as herein pwkbd.
Artble 13
GENERAL PROVISIOI'IS
13.1 Taxct on Tenrnt'c P.operty. Tenant shall pay belore ddlnquency any and all taxes,
sseesments, llcanse ts€G, us€ fees, permit fees and public chargoo of whatever nature or deoolption
levled, assdss€d c lmposed agalnst Tenant or Landlord arblng out of r based upon fiy of the follo{ing
(collectfuely, oTrnrrtb lntarect'): (a) Tenanfs intersst or estate h thls Loase, (b) Tenant's use or
ornership of Tenanfs Property, ard (c) alteratlons, modlfications a lmprovemento made to the Prembes
by, for or on betrdf of Tenant, b th6 oxtont he sama exoeed the Buildlng strandard, ard the tax
assaasment, fee or drarge attdbutablc to Tenanl h reasonably ascertalnable ftom the lnvohe, blll or
rsoords of ttre taxtng auttfflty. WitHn thlrty (30) dap follo'ving written demand by Lardlord, Tenant shall
funilsh Landlocd with reasonably eaUsfactory ovldence of gudt paymen6. lf any such tax$,
assessments, foes or puHic charges are lo/ed agalnst Landlord, Op Proper$ or any part harsof, or
Landlord's personal property, Landlord shal! harae the rlght to require Tenant lo pay guch ta:es,
ess€ssm€nts. feos ard chsg€o, and lf not pald and sallsfactory evidonce of peyment ls not delhrcred lo
Landlord at least thkty (30) days prlor to delinquencY, then Landlord $all have the dght to pay strch
Exes, asse88ments, feeo and c'harges on Tenant's behalf ard to lnrclce Tenant for the same. Tenar{
shdl withln thlrty (30) dap of the date it recslv€s an lnrcbe frsn Landord setting forh the amount of
such til(eg, gss€8smeflts, fees, or charges ao loried, pay lo Landlord, as Addltbnal Rent the amcrunt set
furth ln such lnvoice.
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13.2 lbldlng Otlcr. This Leaee shall e4lre wilhart notlce qr he lease Expira0on Date. Any
holdlng over by Tenant after the explraUon or aooner termlnatlon d this Lease shall nol const'tute a
reneuml or an ottenslon of thle Leass nor glve Tenant any rights ln or to &re Prembes. Any holdlng orer
to whlch Landlord may expresly @nsant in wrltlng shall be consWed to be a tenancy ftom month-to-
montr, on lhe same lerms ard csditlons tnreln spacllled lnsofer as applicaUe, exoept that the Baee
lvlonthly Rent shall be lncreasad to an smount equal to one hundred fifty peroent (f 50%) of the Base
Monthly Rent payable durlng the last full morrlh lmmediately precedlng lhe date of expkatlon or sqxt€r
termlnation of thls Lease. Tenant acknoilledgos that if Tenant holds orer without Landlord's consen!
Tenant shdl bc a tenant at sufferancs, and sudr holdlng owr ma!, cornprsnise or ottprwise afied
Landlord's abli$ to enter lnlo nsw loases wlth proepecUve tenants regardirg the Premises. ln addltlon trc
all other rights and remediss that Lardlotd has under thls Leass or at lew or in equlty (lncludlng, witnut
llmitatlon, lhe rlght to evbt Tenant and regnln posseoslon d the Premlees in accordance with all
applicable Laws), if Tonant fuils to surrerdsr the Premises on ttre oqiralbn or Booner lermination of this
Lease, Tenant shall defend, lrdernnfi and hold Landlord harmless from and against all Adwrse
Conoaquences resultlng from Tenant's failure to sunender ttre Premises (in he cordlllon rcqulred by this
Lease) on or bcfoe tte exphathn or soonef terminaUon of thls Leaee. Tenarfs obligations undsr thls
Seotlon 13.2 shall suMve the orphatlon or sooner lermlnetlon of fltls Lease. Notrrlthstandiryg ttle
foregolng, Tenant shall have th€ risht upon expiratirn of lha Lease, by provlding no less than shty (60)
daye' notlce prh to such expiralion, to exbnd lhe Lease Term fo a perlod d no more than orn (1)
month. provlded that th€ Base Monthly Rent shall be inoeased lo an amomt equal to one hundred
twentpflve percent (125%) of the Base Monttdy Reot payable durlry the tast full month lmmedlately
precediry ths date of such ext€nelon, and, ln suct event, lend]ord's dghts under 0ris Seclbn 13.2 shallnd apply unUl sudr extension perlod (i-e., up to orc month tullor/ing the oehatlon or earlier tsrrnlnation
of thh Lease) has explred.
133 Subordlnatlon. Landlord reprosents to Tenanl that as d lhs Effectlve Date no
mortgage, deed of hrst or ground leaee enqrmbers the Bu[dlng. Subied to Tenanfs nondlsturbance
rlghts set fudh in thls sedion, thls Lease is atd shdl be subJect and subordlnate to all present and, all
future, grourd lsases, undol$ng laassa, morlgngos and deeds of trust nrhloh afec{ the Bulldlng or lhe
froperty, and to all ronewals, modlficellone, consdidations, replacements ard ortensions lheresf, and lo
all advanceg made thereunder. How6ver, lf $e lessor under any sucfi ground lease or any Lender
holdim any such morlgap or deed of tsuat shall advlse Landlod thal it der:ires or requhes this L€ase to
be made pfur and superlor tlprsto, then, upon writbn regu€st d Landlord to Tenant, Tenant shallpompuy axecub, acknoarledge and ddiver any and all custornary q commercidly reasonable
documents or instrumsnts which Landlord and such legsor or Lender deems neceoeary to make this
Lease prior th€roto. Tenent hereby mrreents to Landlord's (a) grq.urd leasing the tend underlylng fie
Buildlng or tre Property or any parl thereof and/or (b) enournbering he Buildlng or the Property or any
part thered as searity for future loans on such terms as landlord shdl deslre. lf any lossor under any
sucfr future grotrnd leas€ or any Lender (or pro0pectve Lender) hdding (or to hold) any such frrture
mortgnge or deed of tust or otrer securlty lntereet shall desire or requFe frat thb Leasa be made subfect
to and subordlnate b euch fuUre g,onnd lease, morlgqe s deed d trust, or olhar seourlty lntereet, than
Tenant agtrees! B'lthln fiflsen (15) days after Landlotd's uritten request ltrrelbr, to execute, acknoruledge
ard ddtuer b Landlord any and all o.rstomary or commercially reaamable documents or hstruments
requked by Lardlord or by sudr lessor, proepectfue lessor, Lender q prtG;p€c,tlve Lender to assuro the
subordinatlon of thls Leaee lo such ground leasq mstgage, deed of truol or othor secudty lnslrumenl,
provlded sudl documents or lnstuments oontain the lessor's, prorpeclive lessor's, Lender's or
p?ospedlve Lende/e agneement not to dlstrb (subJect to tho t€tfiic and condltbns of this Leaea)
Tenants occupancy of the Prsnbes urder this Lease so long as Tenant b nol ln default undor thls
Lease. Tenant acknorledges and agreee lhat such documents o, lnetrum€nts may lndude euch
provlslons as the lessor, prospoctw lessor, Lendar or prospGodrrs Lender oustomarlly requires ln
connec.tlon wlth such documenb or lnstrumetG h comparable bansadlons lrrludlng, wlthul limitratbn,
prodslons that lhe lessor, prospoctlve lessor, Lender or proopoctlve Lendar sha[ not be bound by any
amendment, sunendsr or termlnafion d hb Lease rpt consenlod to ln unltkp by tho Lender, shall not be
burM by any obllgatlon to conshuct o. pay for any temnt lmproremeots or to make any other payments
to Tenant whlch wse required to be made prlor to the time suci Londcr s prospedlve Lender acquhed
tille to the Property shall not be sublect to any ofsets, defen3es or dalms exhllrp agalnst Landlod u any
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prlor landlord, shall not be llaHe for any acG or omisslons of Landlord or any prlor landlord, shafi not be
llable for any eeori$ deposlt not actually rec€ived by the Lender or hr any letter d credlt not assbnod
and physlcally sunendered to the Lendef, and shall not be llable fur any defaults oo the part of Landlord
oeunirB ptbr to the Ume the Lender or prospedfue Lender ecqulr€s lltle b the Prop€rty (or any part
thereof) putsuant to the enforcsfient of lts rlghts under lls morlgnge, deed of trust or oher searrity
inslrument as the case may be, tuugh Tenant doea not by thls 8€olion, and shall not be requlred to,
waivs lts eetf-help and ofrset righb urder S€dlon 12.3. Tanant vrnirns tho provlsbns of any ounent or
future statub, rule or law wttlch may gltre or BJrpgrt b glve Tenant any rlght or elactlon to tennlnate lhls
Lease and the obllgatlms of the Tenant herexrnder ln tho errent of any forecloaure proceedirg or eale.
Upon Tenant'E request, Landlord shall use commerclally r@sonebla effods to prorlde a nondistrrbance
agreament from any future grornd lesorc and holders of any morlgagees or desds of trust ('Superlor
Paily') ln a form reasonaHy aooephbl€ to the Superlor Party and Tenant. Such non-dlsfurbance
agreemenl shdl contain a clause thal ln the event cf a foreclosure or any olher forcad hansfer of
Landtord's lntersst by any Superbr Party, the Superior Party ahall le responslble for payment of any
unpald leaalng commbsUts and for oompleton of any Landlord's Work not comdated by Landlord. Non-
disturbanco agree{nents wllh any curent Superlor Parlles shall be dolh,€rsd slmultaneously nlth th6
execttion of this Lssse, A[ subodinatilrn, non-dlsfurbanca and altornment agreemenb wlll lndude
preservation of all of Tenanfs sdf-trelp and ofhd rights aet forlh ln thlg Lease.
13.4 Temnt'a Attomtmnt Upon Fomdoruls. Tenant shall, upon requ€st, atom (i) to any
purchassr of the Buildlng or the Property at any foredosure sab u plvate Bale conduct€d pursuant to
arry securlty lnstruments encumberlrB the tulldlng or the Property, (ii) fo any grantee or tansferce
deo[nated ln any deed gtuen h llw of foredosure of any seotlrity lrtersot encumberlng the Buildlrq or
the Property, or (iiD to the leesa under an underlyiag ground lease of lhe land undedying tlrc Bullding or
the Proprty, should such ground base be termlnated; provlded that such purchaser, granEe or lasor
shall recognlze Tenanl'e rQhts ulder hls Lease.
13.5 llortgagee Prctgotbn. ln the event d any defaull on the part of Landlord, Tenant wlll
give notice by reglsterod mall to any lessor under any underlytrp ground lease or Lender who dkectly or
through Landlord shafl have requesbd dTenant, ln writng, thal lt bs ptot/ded with such notlce pursuant
to this sectlon, and Tenant shallghrc such Lende{or lessor a reasonabls opportunity to trire the dafault
lnduding tlme to obtdn posseselon of the Premises by porer of eale or judichl foredosurc or dher
apprcplate legal proceedlngs if toasonably necessary to effoc* a cure; ptovlded, honnv€r, lhat lhe
foregolng shail not piohlbll Ten$t from exerciaing its rlght of self-help ln accordancs wlth ths prwblons
of Seclion 12.3 abore prbr to suc{t Lender or lessor taklng action b cure the ddault if erd to lhe ext€nt to
wtrloh such esff-halp lo necasary on lhe part of Tenant to ptavent immhent lnjury to p€rsons or damage
to property, or lo enable Tenant b conduct its normal buslness operatbm ln tho Premises..
13.6 Entoppet Gcrtlllcate. Tanant shall, wilhin fiffaan (15) dayr follorlng any Landlord
rrltten request thercfm, executo and deliver to Landlord an esloppelcertlficate substantially ln the brm
attached hereto as Erhlblt "C" hereto, (i) cod$rp that thb Le*e b unmodlfled ard in full force and
efiect, or, if modiffed, sEtlng the natue of auch modlficaton and corlifiing that thls Leaee, as so modilied,
ls h full forca and €ffoct, (ll) statng the date to which the Rent and olhr charges are pald ln advance, lf
any, (iii) ackrnwledgring that there ar€ not, b Tenants knovledp, rty uncured defzults on lhe part of
l*andlord hersunder, or spectfyirq such ddaulB lf any are dslnd, ard (lv) csrUUnS srrch othar
informatlon about thls Lease m may be reasonably rcquested by Landlod, lts Lender or prospective
lendgrs, lnrosbrs or purcfidt€rs of the Bufidlng or he Property. Landlord and Tenant lntend that any
stoppd oertillcate dellvered purcuant to lHs Seo-tion 13.6 may be relled upon by any Landa or
purchaser or prospeoWe Lender or purchaser of the Bu[dlng, lhe Proparty, or any hteest ln any d them.
137 Tcnant's Flnencld lrformaton. Tenant shall, wlthln fifteen (15) days after Lendlord's
r,rri[en raquest therefor, dellvor to Lardlord a copy of Tenanfs (and any guaranto/s, if any) moet recent
annual audlted linanclal stslomonta lf audlted ffnanohl slatemenls are avalleHe (includlng a balance
sheaq incdne stabment and statement of cash f,ow), and lf audlbd finanol-al BbtomenB ar€ not
anallable, Tenants moot recont unaudlted financial stabments (lrpkdfrg a balancs sheel, lncorne
shtement and statoment of caeh florv), all prcpared in accordance wlth grenerally acceptcd accounting
{x,6010522
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pirrciples), ad any such other lnformatlon reasonaHy requeted by Lardlord regardlng Tenantl
llnancial condltlon; provided, hot,vayBr, that Landlord may not request strcfi mabrlals mor€ den than
onoe per calendar year if Ure rcquest is not assmiatod wllh Landlord's propo*d sale or financlng of he
&rllding or Propqty, Landlod ehsll b€ srllded tro dlecloso sudr ftrandal slatements or other lnbmaUon
lo lE Lender. to any presed or prcpectfue prlnclpal of or lnvestor h tandlord, or to any prospecWe
lender or purchascr of ttp Pmperty or any porton lhereof or lnterest lhersln.
13.8 Trangfsr by Landlord. Landlord and ila Bucoessors ln lnterest ehell haw the rlght to
hansfer thelr lntorest ln the Property or any porlion thereof at any tlme and to eny P€rson. ln the event of
any such transf€r, Landlord oigilnally named hereln (and ln lhe case of any subsequent Uansfer, the
fansferor), fronr the dale of such trmsfier, (i) shall be relieved of allliabllity for the parfonnance d the
obllgnUons of Lardlord hereunder whlch may aocru€ afler the date of such tranefer so long as tho
fiansfs€€ agroes h wrltlng trc assurne the obllgstions of Landlord aocrulrq albr tho date d transbr, and
(ll) shall ba rellevad cf a[ liaHlity lbr the performanoe of lho ob]lgations d Ladlord hersunder vvh&:h have
accrued before the dab of hanefer lf tle transferee sgr€es to a8sums and perfom all such prior and
future obllgalhns of Landord hereunder. Tenant shall atonr lo any suoh transf€r€o. Afior UE date d
any such transfer, the tenn 'Lsndhrd' as used herein ehall mean the bansfereo of sucfi lnErest In lhe
Property or portlon therd; prorided, horaver, tut all lrdemnitles, tdeages and walvers in favor of lhe
bansferor Landbd drallsuMve and conlnue ln fullf,orce ard decl
13.9 Forco XqFm. The obllgatons of each of tha parties under this Leaso (other than lhe
obllgatlon, ln Tenantt case, to pay Rent or any other oharge or sum dJe hereunder) shall be ternporadly
excueed I such p6rty as prwenled or delayed in perfurming such obllgntlons by reason of any stlkee,
lockqrts or labor disput$; gtorronrment restrlctlons, regulatlone, corilrols, adlon or lnaction; cfull
commotirn; tororbt acts; cassatlon or lntemtpdan of the supply of dec,trblty, gas or other ullllties to the
Prop€rty by utilty comparies pmviding lhe same (other than by reeson of a party's fallure to pay fr such
utilitles lf dlrecty @ntrading fs such utilities); or extraordlnary weather. fire or other acts of God (each
such event being refered to herdn a8 "Forr klaleure"); provided, howovat, fiat Foroe Majeure shall
not lnclude lhe inabllity to pay morny. pneral econqrilc conditicns, restrbtions on the amllability of
credit or monoy, or other causes related to economic or business condltlofls gienerally or to the parlbular
financlal condition of a party. ff fhe happenlrg of any such Force Mafeure orent only partlally lmpairs the
perfqnranoe d a parly's obligatlons haernd€r, such pady shall conllnue to perform under this lease to
the fullest od€nt poeslble ln ligttt d such Force MaJeure event.
13.10 Nottc$. Any notice requlred or pennlted to bo glven urder thls Lease shall b€ h wrtting
and (l) scnt by Unlted State mdl, regbtered or certllhd mall, poelage prepaid, return rmelpt requeslod.
(ll) sent by Federal Express or slmilar nationally recognized ot/€rnlght courler sorulce, or (lii) transmltted
by facsimlle wlth a hard copy senl nrllhin one ('l) buslness day by any of the fotegptng means, and ln all
cases addrsssed as aet forlh in Artkde I (or euch olher address ss may be ryecilted by wrltien rptice ln
the b1owlrg manner), and sucfr nofice shall be deemed to have boeo glven on tre earlier of (a) actual
rccdpt (or retusal of ddlrrery or racaipt) or (b) one (1) hrelness day der acceptarns by the lndependent
servlco for ddlvery, if mnt by lndepandent meosengff or cqrrler servlce, or thrae (3) days after ma[lng lf
sent by Unltcd Shtos mall ln acoordance wilh thls Sedion 13.10. Any notbe gtuvt ln accordarce with
ttp fonrgolng shail b€ deemed rs@h,sd uporr ac{ual receft or left^ed tlo acoept dclvery. A nodce given
by coumd for Landlord or Tenant shdl be deernad a valld notlce lf addressed and rcnt ln accordance
wlth the provhione of this Seollon 13.10.
13.11 Attomcyr' Feea. lf eirher party shall brlng any ac{ion, erbltration proceedhg or legEl
proce6dhfg a[eSlnS a brea{h of any provbion of thle Lease, to recovsr R€nl, to termlnale this l-me, or to
enfqc€, prot€ct dotsmine or establlsh any torm or covolunl of ttls L66ae or dghts or dulleo hereunder
of elther p€rty', th€ praaillng pady shall be entlded to rccotrer from the nm4rwallirB party as ? Pad of
such aotlon or proceedlng, or ln a sepsrato adion for that purpose broLlght wllhin ono year from the
determlnation of such proceedlrrg, reatonable attornetra'fees actnlly hrcuned, expert wllness fee, @urt
costB and olherreasonable expensee incuned by the prevailirtg party.
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13.12 Ddnltbna. Arny tam that is gtuen a epaclal meaning by any pro&lon ln lhis Lease
shall, unleas othenrlse speclflcally slated, have such meaning wtrqevcr ured in his Leasc or h any
Addenda or amendmcnt hereto. ln ddilbn to the terms dcfined in Artlde I aborc, the follodng terms
shall haw lhefollouvlng meanings:
(a) Advcrrc Conaequencer, Th€ Hm "Adwnc Conrcqtencee" shdl
mean eny daims, demands, actlons, stdts. Judblal or adminlstraUve poceedlrps or otrdors, Judgmenta,llneo. penaltieg, damagas, liabllltlea, lmso3, cost6, and exp€nses (lncludlng, wlthout limltatlon, reasonable
atlorneys' fees and costs).
(b) Atnfltto, The term "AfiRlLtd', wlth respec* to any Peruon, shall mean
any entirty controlled by, controlllng, or under common contrd wlth sudr Percon.
(c) Brsc Ycrr. Th6 term "Base YsaP etrall mean 2016.
(d) Bulldlng 8 Partlng Lot The Erm'tsulldlng 8 Parklng Lot" shatt
mean a portion of the eurface partlng lot adJacant b he Buildlng, s GUch portlon is more partbularly
d€scdbed on Erhlblt "A" hareto.
(e) Bulldlng Operatlng Exponses. The brn 'Bufldlrp Operating Expense'
ahall mean, collectively, (l) all Property Opoatlng Expenees paid or lrurned by l-ardlord durlrg any
Expensa Yeat because of or in connectlon wlttr the ornershlp, maregsment, malntenance, repair,
ledecemen[ f6bra0on oi opeetbn ol eolely the Buffdirrg or any Common Aroas sltuat€d uvltrln lhe
Bulldhg, and (ll) he pstion of other Proptrty Operatlng Expenses peH or lncurred by Landlord dudng
arry E,tpeme Year becanse of or in conneclion wfth fE ownersJSp, managsmenl malntenance, repalr,
redacemant restoratlon or operatlon d any porlbn of he Property c[hsr than the Bulldlng and any
Common Aras sltuatod wilhin tha Bllldhg, wttlch are allocated by Landlord b the Bulldlng in
accordance with the provlslons of Section 3.2 sbovo.
0 Calendrr Ycar. Tho term "Cabndar Yead' shall mean each calendar
yuar ln which any portion of the Lease Term fa[g, lhrough and lndudlng the calendar year in nhhh tro
Lease Term ",plree' (d [inlentbnary omrt{edJ.
(h) Ihrault Rda The term "Ilcfardt Rrtr'ahall mean ten percent (10%)
por an.um or the maxlmum anterast rato permitted by appllcable lan, wtrichevm is less.
0) Erpanre Year. The term "Enpemo Yerlr. shall mean each Calendar
Year.
0 Lendlord'c lncunnce Goab. The tqm "Landlord'E lnrunnce
Cootrn shall m6€n the costs to Lardlord to catry and malntaln the polbles of flre and proporty damago
lnewanoe fu he Bulldlng and Common Areas and general llablllty and any ofter lnsuranca nqulred or
permlfi€d to be cer.ld by Landlord pursuant to Arthle g (lnoludlng envlronmental gnd tenorlsm lnsurenoe
lf typlcaly caftd by lndltrtional oyners d o,fter mulFtenant offnc bulldhgs of comparable age and
condltbn in Bobe, ldaho or if rcqulred by any Lcrrda), togsther wllh any deduc{ibb amq.mts pald by
Landlord upon thc oocunenoo of any irsued casualty o lose. lf Lardlod's calculatbn of Property
Operatng Expenses for lhe Base Year doas not lndude an amounl allocated to l-andord's Insurance
Coats for the 8es0 Year, then the amount of Landlord'g lnsuranco Costs fnst estaHlah6d by tandlord for
any aubsetpent E Oens€ Year shall be deemed to bo Landlord's lnsuranca Costs for he Base Yeer.
(k) lfldbrd's Utllltlos CoBts. The term "Landlord'r Utllffir Coote"
shall mcan a[ c]nrgos (incfudltq hxes on utilitls) for utllltlee tu the erildlng and Common Arc* (pold
or lncuned by t-endlord durirg any Erpensa Year lnoludlng, bul not llnltsd to, Landlord's coets of vrator,
ttriiEL
F:
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I
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i
i.
:
:
.
:
:
006010t22
42-
solirer, gas, and eledrlclty, and the cmts of heatlng, yenUhtion and ah conditloning ("HVAC',) (induding,
wlthout llmltaUon, the coet of eleclddty to op€rate $e HVAC alr hEmfierc senrlng $e Premlses and other
portions d the Bulldlng) ard ohsr ufilitbe (but exduding ths ost d eleotdeity and/o gas consumed by
Landlord ln thosa portlons cf ths Bulldkrg occupiod by Landord). Landlord'e Ullllties Cogts sha{ be
cdarlated assuming the Bullding ls one hundred porcent (100%) oorpled. Landlods Utlliltas CostB
shall lrrclude, wlthout limltatlm, any cost$ of utillties whbh ara allocatad b the &rilding ard/or Common
Areas und6r any dedaratbn. reskidlve covenanf, or olher lnsfirment perlaanlng to th€ slu lng of coets by
the Bulding end Common fueas or arry portlon ftereof, includlng any correnants, condltione or rcshic-lions
nouv otr hereafter recordcd against or affectl4g the Building and/or Common Arees. For purpoees of
determlnlng Lardlord's Utilities Costs hcunsd for he Base Year, Lardtord's Utilltes Costs for the B*e
Year shall not induds any one Ume spechl drarges, mote or fees or extraordinary drargBe or costs
lncuntd in lhe Base Year only. lncluding thooe attrlbubtrle to boycdts, embargoeo, strikes or other
shortages cf aeryhee or fuol. ln addllbn, lf ln any Expense Year subsequent to the BasB Year the
amount of landlord's Ulilities Cosh decreases due to a roducfion ln he ooet of prori.ding ulll]tleo to the
Bullding andlor Cornmon Areae for any tsaoon, lrduding wlthout lilnitalion, because of deregulatlon of ffre
utility lnduslry and/or redrctbn ln rales acfiievad in conUaats $dth ulfilies provlders, trqr for purposes of
the Expenss Year kr whlch such decrease in tandlords Uliliti* Cosb occunod and all subsequent
Expense Years, lha Landlord's tjtilltles Coets for the Base Year ehall be dgcr€esed by an arnount aqual
to such decreaso.
(l) Law. The term "Lawfl or "Lawr" shall mcan any iudichl declslons and
any statde, conslitrtisn, ordinance, code, msofutlon, rqulation, ruh, administrative or courl oder or
docree, partnit, autlrrylzatlon, approval, llcensc or olhsr raqulremenb of any munlclpal, cornty, state,
fodoral, or olher goremmental agpncy or aulhority havlng jurlsdlctiofl orer ltre partlos lo lhis Leasa, the
Premiees, tle Bulldlng or the Properly, or any of [rem, ln offect ellher at ths Term C,ommsncernenl Date
or at any llme wtrlla ttils Lease ehall bo ln efreot.
(m) Lendar. The tsrm 'rLond€l" shall mean the holder of any promlssory
note or other evidenoa of irdeblednese seoured by Landlord's lnterest in the Property or aty porlion
thereof.
(n) Normal Butln$c Hourt. The term T{ormal Euslnss Hourr'shall
mean Monday lhrorgh Frlday, 7:00 a.m. lo 6:il) p.m. and Saturdays 8:fi) a.m. b tOO p.m., axpre.ssly
exdudlng Sundays and llolidaya. As used herein, hs term sHoll&yro shall m6an New Year's Day,
Martln Lulher King's Erthday. Pr€BHents Day, Memsial Dan lndependene Day, Labor Day,
Thanlcgilvlng Day, Chrbtmas Day and any olher day rccognlzed as a troliday by he Unlted Statee Postal
Service,
(o) Person. The tem 'Petlon' shall mean any naturd person and any
@rporaUon, partnerchip, limited llabllity company, loH venture, assochtbn, agency or other entity.
(p) PrNafe Restrlctlong. The term "Prfir*e Roctrkcllona" shall mean any
and all recorded GwenanE, conditions, restriLtons, encumbrances, agte€m€nb, egssm€n$, rlghts of
way, and other recordad doanmenE or instsuments ,uv or hereafier affedlng the use or oo$Jpancy of the
Property or any part thercot flovUd, ho$Iovar, Privete Restrlcilfrrns shall not indude any insbuments
exectlted by Landlord after tha Tenn Commencernent Date and rsoorded agoinst Orc Propeny to the
extent such future instumants unreasonably intsrfue $rflh Tenant's &oesg to the hemlses tn
acoordance with this Leaee.
(q) Progsrty trCnt nsncc Coots. The term "Ploperty ifalntomnce
Coslr" shall mean all expenses, Gosb and amounk of every klrd and nature pald or lrrcuned by
Landbrd dr.rlng any Expense Yqr because d or ln connec{on wlth th€ ornershlp, management,
mainbnsnco, repair, replacamsnt, restoradon or oparaUon of tho Bulldng and/or lhe Conrmon Areas
(ocept Landlord'e lnsuranca Cosh, Landlord's Utlllffes Costs ard Raal Property Taxes) lncluding,
withont llmltnUon:
0060t052.2
't3
=
r-'
(0 tha cost of operallng, maintiaining, repalrlng, rerrcvating and mana$ng
the utility systema, mechanical systems, earttary and storm drainage systems,
and elevator sysbms In or servirg lhe Buildlng, ard the cost d euppllee and
€gulpm€nt and malntenance and asrrice conhacts in connection therewllh;
(li) the cost of lhenses, cerlificates, permits and inspections, and the cost of
contestlng the mlidlty or appllcablllty of any appllcable Laws whlch may affect
Bulldlng OperaUng E:tpenses, and tha costs lncursd in connection wlth
lmplementation and opemtlon (by Landlord or any oyyners' (r commm arsit
aseociation(s) formed wilh respect to lhe Buldlrg) of any transportatlon system
managem€nl program or slmllar program required by applicable Law;
(ill) the cost of operatlng, repaiing, malntalning and replaclng thc Systems
and Equlpmant or any part ther€ofi
(iv) the cost of landscaping, relamplng, supplles, lools, equlpment ard
matadals lncuned in connec'tbn with lhe manag€ment, operatlon, repah ard
maintenanco of lhe BulHing and/or Common Areas;
(v) the cost of parklng area repaiq restoralion, and maintenance;
(vi) amounts due under any equipment rental agreements pertalnlng to the
Bullding and/or Common Areae;
(vll) vyagesr ealaries and other compensation and beneffts of all Persons
engaged in the operaUon (whlcfi shall not lnclude troperty managem€nt servlces,
which are subject to (xlil) and (xvi) below), maintenance or securlty of ttre
Building and/or Common Araas, and employer's Sochl Security taxes,
unemployment taxes or insurance, and any dher taxes whloh may be loried on
such wages, salarles, compensatlon and beneffts; provided, howtsver, if such
emdo),ees provide sen/ce to lhe Butdlng ard/or Common Are6 on leee than a
full Ume bois, suctr salaries, mmpensallon and' benefits (and laxes and
Insurarrce thercon) shall be prorated baeed upon the time such emploloes are
engaged ln providing servlces to On Bullding andor Gornmon Aroas;
(vlll) payments under any eassment, llceme, operating a$esment
dedarallon, restrhtfue covenant, underlylng or grulnd lease (excluding rent
under a grcund lease), or hsttumsnt pertalning to tte sharlng of costs by the
Building and/or Common Areas;
(ix) the cost d window deanlng and trash romoval;
(x) to the extent nd a capltal improvement or capilal expenditure govemed
by dause (xvii) below, the coct of replacement of wall and floor covellngs, celling
tlles and lixtures in lobbhs, conHcs, reetrooms and other Common Areas or
public arcas or facilities;
(xl) to lhe edent not a capltal lmpmvernent or capilal expenditure governod
by clause (xvii) bdor, the cost of malntanance and replacement of curbs and
walkways, repalrs to the Bullding's roof and/or rcof membrane, replacament of
the Bulldingls roof or any other structual parls of the tullding;
fili) the coet of Janltorial sorvloe, alarm and security sewice, if any (conslstsnt
wlth he lewl of such sarvlcos being trovided ln multi-lenant office bulldlnge of
cornpar*le age and cmditlon located ln Bolse, ldaho);
L.".Ea+
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00601052.2
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(xlil) amounls due undsr any thlrd party management agreement entered into
by Landlord wilh resped b tha Bullding and/or Gommon Areas or any parl
thereof (lndudlng the cost d any managoment fee rdrldr ehall rpt exceed 3% of
tha gres renls of tha Bulldlng);
(xfu) assessmentt, fees or other payments due any orrn6rs'associatofl;
(xv) amortEation (includlng lnterest on lh€ unamorllzed cost) of the cost of
acqulrlng or the rentd op€nse of personal proporty used ln the maintenanca,
operatlon and repalr of the Bulldlng and/or Common Areas;
I#i*"n['f,ffi,;:T.1lfl T'-Y#Jil,lHS#:,?,,1$5J:,TJ#jlli
equal to thrce porcent (3%) d lhe groes renb receiwd by Landlord ftorn th€
Butdlng; and
(w[) the cost of any cap]lal knpromments, expendltures or ohor cosls (0 whloh are intended
as a labor-saving dodce or to eftd olher econombs &r the operatbn or malnbnanco of the Bulldlng
andor Common Areas to lhe otbnt hey reasonably rcduce euch costs, or (ll) made to the Bulldlng
and/or Common Areac or any podlon thereof after the Term Commenoement Date tfut ere roquired
undar arry applhabh l-aw, exc-ludlng lmprovemenls or alteraliona by Landkrd to oonec{ Landlord's prior
vldatlon of such Law, or (ll$ whldt aE necesssry, ln Landlord's sde good faith oplnion, to operab, lteep
and malntah Ure Buldhg and/or Commm Atee as a first cbss multi-tenant ofilce tulldlng; provkled,
hows\rer, that if any srrch coat d€scribed ln (l), (ll) or (lll) above, b a capital erqenditure, such coet shall
be amortized (includlng inbrest an the unamortzsd oost at ho par annum ret€ of six perc€nt (6%) over
Its useful llfe as determlned under generally ampted accountlrp pddples (GAAP). lf ln any Expanse
Year Landlord ls not furnlshlng any parllcular work or serr/f;co (the oost d wtrich, if performed by Landlord,
unuld be lncluded ln Proparty Malntenance Gosts) to a tenEnt who has undertaken lo perform such urcrk
or sewlexi ln lleu of the performance thoreof by Landlord, Propaty Malntenance Gosts shall be daamed to
be increEsed by an amannl equsl to the additional ftoperty Malnbnance CosB whlch would reasonably
have been lncured durlng such perlod by Landhd lf lt had at lts wn expense fumlshed such work or
senloe to such tenant,
"Property iialntcnancs Gosti'shall rpt lnclude lhe Hlordng, which shall contrd ln the event of
any conlllct wltt the dsnnltlon of 'Property Malntenancc Gosts' above a any other terms of hls Leaee:
(l) cosB of capllal repaks, capital replacemenls, or capltal improvoment3 to or fu the
Pnoperty, BulHlrlg s the Premlses or to or for any Comrnon Areas, other than lhse
daocdbed ln clause (xvll) of he precedng definltlon d'PropetyMalntenance Coets'(ll) cosb lncured ln connecUon wlfi lha slglnal conatndlon of lhe Property or EuiHing a ln
connec.tion wih any malor ohange ln the Proporty or Bulldlng, such as addlng or deletng
floore orcommq fueas;(iii) costs of repalr or rcplaoement of hs foundalion, atruclural elements, €xbrlor ualh and
the undeground uflftirx of or serulng the Propoty, Prcmlses or the Bulldlng;(lv) coets d the despn and construclbn d Landlord's Wort, Tenant lmprovaments to the
PrBrnh€B or ttu gomises of oths tenantsi(v) depreclalion, lnbrest and pftc{pal paym€nts on morQagns and other dsbt coste, lf any
ard amounts pald as grurd rontal or as rental fa the Property or Bullding by tho
Landlord;(vi) markeUng costs, legnl fees, spe plannors' feeo ard advertislng ard promotional
€xpenseo, and brokerage fees incun€d h comec-tlon with lhe orlglnal development
subaequent lmprovement, or orlginal or future leashg of the Proper$(vll) ooeb fff wfrloh any tenant directy conlraots yvlh locel provlders, costs for whict the
Landlord b relmburscd by any tilant s ocanpant of lha Property or by lrsurance by lts
c*rier or any bnanfs canier or by anyono else and oeensss ln mnnec,tlon wllh
servies or oher ben€frts wtrbh are not ofbt€d to Tenant or for ufibh Tenent is clwged
{1060t0r2.2
.{S
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t:,:
(viii)
(ix)
dirscily but whhh are prorHed b amther tanant or occupant of tha Property wilhout a
separate fiargo;
any bad debt loss. rent lo6s, d ras€n co br bad debts or rert loss;
Landbd'e gercral corporate orerhsad and general and admlnistralfue expensee and
other coste assooiated with tto operatlon of $o buslnoss of the endty whlctr conetltutes
he Landlord, as the €ame are dlstirgubhed from the oosb cf operation of the Proporty,
lncludlng parlnsshlp q corporats accounllng and legd malters, coeta of defendlng any
lauaults wlth any molgagee (ocept as the aql{ons of lhe Tenant may be at lssue), cosEd sdllng, syndlcaUng, flnanolng, mortgaglng or hypothecallng any d the Landlcd's
,nterast ln the Property or any portion thereof, and costs lncuned in connectlon wlth any
dlsputes. lncluding but not llmibd to any dlsputss bet$reen Landlord and lte dnployuas,
betu,een Lendlord and Property mansg€ment, or betueen Landlord ard othor t€nenB or
oco4ants;
the wagea and bendts of any emdope who does not dorote subshndally ell of hb or
her emfloyad tlne to the Bulldlng unless eudr uagee and bensfits are prorated to ref,ect
tlme spent on operaUng and managlng the Property Msd-vb time spent on mafters
unrdated to operatlng ard managlng the Property; prorlded, tltat ln no event shall
&lildhg Operating Expenses lndude wages and/or benellts a[rhutabb b paruonnol
above the lerci of on-sit€ Prorect Managor or ontlte fuftrt Erglneer or any
compensatlon pald to derks, attendants or othe pereors in commerchl concesslons
operated by the Landlord;
costs, lrm{udlng permlt, lbense and Inspection co8ts, lncuned wlth rcspod to the
lnstallatlon of bnant lmprorements made for new tenante in the Property or irrcuned in
rermrating or otlerwlse lmpmving, decorating, palnUm or radecofating vacant space for
tenanb or o&er occupants of lhe Pnoperty (exdudlrq, hou,rever, such costs rdallng to
any Gornmon fueas);
overhead and prollt incremenl pab to the Landlord s to subsidhdes or affilietes of tho
Landlord for csryice in lhe Property to the oilent the same exceeds lhe costs of sJch
Bervbos rsndorsd by qualllled, fittt<lass unaffliated lhid partles on a compelitive basis,
wlrldr pailies ronder senrlces at comparable properti$;
reflEls and oltpr related €xpeflses lncuned ln leaslng alr coilllioning sy:tems, sl€vator8s other equipment, he cost d whlch, lf purcimd, would be excfrrded ftom Property
Mainbnance costs as a capltal mst, o(capt equlpment rd atr,Gd b the Propary wtrldr
b used ln provldlng lanltorlal a slmilar services and, further e,(c€piling fiom hls excluelon
such equlpment ranted or leagsd to remedy or amellorate an emer€ancy condltlon at the
Property
cosls, olhgr lhan thos€ incuncd ln ordlnary maintenarrce and repolr, hr sorlflure,
paintkrgE, founlains or other objecls of art
fees and relmhrrsqments payable to Landlord (lndudlng lts afflllatss) for management of
0u Property whioh 'lould ordlnarly be induded in a managern€nt fee, ln ax0€6s of lho
manage{nont fee that a landlord umuld haw been required to pay to comparabh
lndeperdent eatabllahed managamont oompanies opemUng ottrer comparable prop€rtles
ln qnparable locaUons ;
costs to repeir a rebulld afier casudty loes (occludlrp dedudibles under insurance
pdiclee canbd by Landlord, whld deductiblas ehall bo lncludod ln Propefiy Malntenancs
Corts and whbh deduc$blee shdl not atceed S10.000 in any on€ Eteense Year);
any co8t8 eltprecaly exc{ud€d ftom Property Malntenarrce Costs elsewhere ln tha Lease;
rent for any offce spaco occupled by property marngsment personnd lo lhe extent lhe
slze or rental rate d sucfr office epac,e exceods tte Blao or fair market rcntal value of
orffice space mupled by managemont persornel of comparaUe properlloo ln the vhlnlty
d fire Property, rvittr djustment whqs appropriate fur the she of the appllcable proJect;
aH assesments and prornlumc whbh arn not spe<iflcally datged to Tenant becauee of
what Tenant has done, whhh can be pald by Landlod h instalknents, shall be pald by
Landlord ln lhe ma:rimum number d lnsbllments permltted by law (except b the extent
imonslstont w,llh ltre generd practllc€ of cornparabb properfec ln the vbinity of the
(xi)
(xt)
(xlli)
(x)
(xiv)
(xv)
(xvi)
(xvl)
(xvU)
(xlx)
Eh-.
a,
fl,60r0J2.2
-4$
(xx)
(rul)
Proporty) and shall be lncluded as Proparty Maintenance Gosts in lhe year In wtrlch the
*seosm€nt or pramlum lnstrallment ls aclually paid;
costs arlsing ftom the negligence or wlllful mlsoonduct d Landlord or lts agpn6,
omdolpas, vendors, conhactors, or pro/ders of mat€rbh or servic€s;
oosts lncnrrrod to comply wlth larte or regulatlons frr ffic{ as of he Term Cornmenoernenl
Date, lncludlng but not limlted b laws and regulatons rclating to handi'cep access or lhe
removalof Flazardous Mderlals ln exlelsnca ln the Building or on the Property prlor to lh
Term Commencernent Date by reason of [E ad or ombgion of Landlold or any of lls
employces, agents or contradors (and not othsru,iso) or ls bralght lnto the Buildlng or
onto the Property after tha date hereof by Landlor4 any Landlord Party, or any other
tenant of he Prcperty (excludlng Tcnant), ard is of suclr a natre that a Federal, State or
municlpal govemmenl gpvemmental authority, lf lt had krnwledge of lhe presence of
such Hazardous Materlals ln tha state and under th6 corditions that lt then otlsls ln the
Bulldlng or on the Property, would requlre the removal of sucfr Hazardous Matarials or
ttrwld requlrc dher remedhl or contalnmont ac{lon wth re8pect th€rBb pqruant to taws
in effeci as of the Tem Csnmencsnant Date (ln sre arcrrt that such coeb of compliarrce
are firt pald by Landlord and are lrBtead chargBd to Tenant or dllwtly by a gorernmenhl
authorlty, Landhrd agr€os that it will reimburso Tenard for suctr cfiarges);
Polltlcal confibutons ard dues pald to trade assochlbns q other professlonal
aseoclatiom (whhh do not lndude omers'assoobtlms);
lntereet, ffne, late fees, oollectlon coots, legal fess q pendtbs assessed as a reeult of
Landlord's fallure to make payments in a tmdy mamer or to comply wlth apdlcaUe
Laws, hcludlrg hoee regarding the paynent of taxes, or to comply wilh the tsrms of any
lease, mortgnge, deed of trusl, ground lease, prlvate restlctbn or other agreement;
Coets of acqulrlng or maintalning any ert work fur tha Building and/or Common Arcas;
and
Resen Es for repalrs, maintenancs and replacements bepnd cur6nl-lr6ar antclpabd
expensos-
(xxll)
(xxlll)
(r<xtu)
(ut)
(q) Property Operatlng Erpenmr. The Erm "Propcrty Operatlng Exporuea"
shall mean and lnclude all Real Prop€rty Taxe flus all Landlad's lnswance Costs plus a! Property
MainHtanca Costs phrs all Landlords Uflmhs Gosts, lnduding, wilhoutlfinltatlm, co6b and expsses
paH or hcunsd by Landlord in connecfion wlth servi:e, ulilitles or olher i.mcllom shared by the Bufldhg
ard dha portbns (whether lntsrlor or exterior) of the Property, Irududlng, without llmltatlon, nahral gas,
el*fiiclty, and olher costs for the Campus cenfal flant that provldes hoating urater tc tho bulldlng; storm
wetsr managgflen[ domeetlc wat€r, s€riIer, and inigFtion water; landscaplng; roaO repak; snow removal
ard street lishtleg. Tenant acknoflledges that certaln ftopcrty Operatirq Expenses may be lncuned by
Larurlord for part or all of the Property and Lardlord may allocab the applicable portlon to Bu$dlrry
Operatlng Expenses ln aocordance srlth lh€ provlslons d Sec-tlon 3.2 abovp.
(r) Reel Prcpefi Taxer. Tho km *Renl Propclly Tar" o, "n3.1Propsty TaxoE" shall eacfi mean (l) all taxee, assossments, levie and other chargea of any kind or
nalurc rfiatsoarrar, gensal and spedal, forcse€n erd unbreseen (lnduditB all lnetuments of prlndpal
and lntereet requlred to pay any genaral or special Essossm€nts for publlc lmprolernents and any
hctrases resultng from reassosements caused by any change ln ovmrshlp or n6vv constuotion), nor or
hereafter lmpooed by any gpvernmontal or qual-fwemmentd authorlty or spechl disflot havlng the
dlr€ct or indkect poror b tax or lgvy assegsmenb, wttlch are laried or assessad for wlutever r€ason,
and whether or not cxcluslvdy, against that portlon of the Property that indudes tha &rlldlng and/or
Gornmon Areas or any portlon ttnreof (indding any flxturoe, equipmert and oth€r property of Landlord
locatcd ln the BuiHing or on the Common Areas that ls lreated by lhe tsxirE authority ae reel propsrty) or
Tenanfs interest thereln, or tendlord's buslness of owning, leairu or managlng the Bulldlng and/or
Common Areas or the grooa rec€$pb, lncome o rentals ftom the Bu$dhg and/or Commm Areas. (il) all
drarges, levles or fece lmposed by any govemmental authorty against Landlord by resson of or based
upon lhe uee of or number of pa*iru spaoss wlthin the Gornmon Areas, the amotrnt of plUlo ssnkos or
public uUlltbs used c consumed (e.9. waler, gas, ebctrldty, Bqilagp or waste rvder dlaposel) et the
frt6010t22
47-
fuildlng and/a Common fueat, the number of Persons employed by latants of the Buildlng, he size
(whether measut€d ln arsa, volumq number d lenants or whetsv€r) or lle value d lhat portlon d tho
Property lhat lrcludes the Bulldlng and/or Common Areae, or he typscf ueo or usa c!flductad wllhln lhe
Building and/or Common Aroas, and all cosE and fess (lncfudlng reasonable attonnla' fees) reaeonably
lncuned by Landlord ln conteating any Real Proporty Tax and ln nagotatlng wlth publlc authoritles as b
any Red Property Tax, ]f. at any tme durtng lhe Leeae Term, the taxatlon or assessment of that portlonof th6 Property lhat lnc{udee the Bulldhg and/or Common Areas prevalllng as d lhe Term
Gommencement Dale ehall be altered so that ln lieu of or ln addlthn to any of the Real Propedy Tax
descrlbed abow there shdl be lanled, anarded or imposed (tJvtplher by reason of a charge ln lhe
m€thod of taxaUon or ass€Bsmsnl, creatlm d a nor tax a charge, or any othe cauae) an altamate,
substltute. or dditiond us,e or charge (l) on lhe valuo, slze, uso or occupancy of lhs Bu$ding and/or
Common Arees or Landlord's lntar€st thereln or (il) on or measursd by the gross recelpls, lnoome or
rontab from the Bulldlrg and/or Common Aroag, or on Landlorrd's buslnes of ovnlng, leaslng or
managlng the Bullding and/a Common tueas or (iii) computad ln any marmer wllh reapect to S:e
opemtlon d the Bulldlng and/or Common Ar€es, then any such tar( u chargg tpurerr€r deslgnated, shall
be lnduded wilhin the rneenlng of the terms "Real Prcperty Tax" or'fleal Propefiy Taxer' for
purpooes of thls Lease, lf hat portion ot hc PropGrty tnt lncludes the Bulldlng and Cornmon Arees le
part of a lager p*cel aeesssod as a single parcd for Real Propsrty Tax purposes, then Landlord shall, ln
its reasonable dbcrdlon, equltably aportbn lhe Real Proporty Taxeo beturcen lha Building and Common
Areas and he balance of such slngle parcd. lf any Rsal Property Tax is pardy baoed upon properiy tr
rants unrelated to the fuildirg and/or Common Ars, then only that part of strch Real Propady Tax thal
b falrly a[ocable b the Building and/or Commm Arsas shall be lncluded witrin the meanlng of tro terms
"Rcal Prcpuly Ta:C'or "Real Property Taxo."
No,twllhehnding lhe foragoing, (a) the terms "R€al Proporty Tar" or "Roal Propsrty Tax€E'
shall not lrdude ctate, hheri,hnce, tanshr, glfr, franchise or excise taxes of Landlord or the federal or
state lncome bx lmposed on Landlottl's lncome from all sorJltoes, foreign ornershlp or conlrol,
suocesston, recording, payroll or stamp hxes; or (b) or late paymant fues or lnterest on late lax psfnenE
if no Event of Default exlsb at the tlme Lendlord's payment b due.. Any Real Pmperty Taxee hal are
permlfted to be pald in inslallments ovsr a perbd of time (wlthwt the knpositlon of interest, penaltiae or
other ctrarge) shall bo deemed pald ln the ma:dmum rumber of pomltted hshllments and only the
mlnlmum number of installmenb required ln any given ysar may be induded in Property Operatlng
Expenses ftr any Expense Year.
(s) Rsnt. The term "RanP'shall mean collec{lvaly Base Monlt{y Rent and
all Addltlonal Rent
(t) Syatemc and Eqrlpment. The term nSyatemr ard Equlpmcnt" shall
moan any pbn[ madrlnery, ctd]hrs, transbrmera, &rctv$ork, cabb, tilfos, plpelhae and dher equlpmenl,
faclllUeo. and eyeEms deelgrnd to supCy heat wnllldon, ah condlhnlng, lumHlty, gas or any cilltu
servlcos or utlllles, or compr'Bing or seMng aB any ootnponont or portion of the electsbal, gas, Bteam,
mechanlcal, plumblng, sprlnkler, communlcations, alarm, securlty, or fueflife eafety syatems or equlpment,
or any other mechanlcal, electrlcal, electronlc, computor or olher sysbms or equlpment wttlch eerva the
Bullding and/or any other buUdlng on fte Ptopsrty ln ufrole or ln part.
{u) Trenrfeme. The tenn 'Tramfitrso' shall mean any aaelgnee of
Tenant's intereet ln this Lease, any suUecsee d all or any part of the Prernlees, any Person pocsesslrB a
securlty lntorest in Teflant's lnterest in ttds Laase and/or the Premlses, and any other hansferoe of
Tenanfs lnbrat ln thls Leese.
(v) Tenant Party. The term trTcnant hrtf' shdl m€an any agienl,
emplqpe, gueet, visitor or other lnvltee, sen ant, oothacbr, subcontractor, gubl€ssee, su@eosor tr
atslgn d Tenant
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(w) Landlord Palty. The term "Landlold Partf' ahall mean any agent,
emplqpe, guest, vlsllor or other invltee, senranl, conbactor, gubconbactor, sublessee, aucoassor or
assilyr of Lsndlord.
13.13 Gcneral Walwrg. One party's consent lo or approval of any act by the othe party
requlring the first part/s consent or approval shafl not be deem€d to urelve or rcnrder unnecessary he
first part/s consest to or appoval of any subseguenl slmlhr a€-t by lhe other party. No uaiver of any
prorlsion hercof. or any walver of any breach of any prwlslon herco( sha$ be effecllve unleos ln wrltlng
ard slgnd by ttre wafulng party. Th€ reodpt by Landlord or remittance by Tenant of any rent or paymenl
wllh or without knowledge of the breaoh of any olher prorrlsion hercof shall not b€ deem€d a walrrer of
any suctt broedt. i.lo waiver d any prwblon of thb Lease shell be d€omod a contnulng waiver unlecs
suoh waivs speclllcally statoe so ln trtrlting and ls slgned by bolh Len<llord and Tenant. No delay or
omission in the e:<erclse of any rlght r remedy accrulng to €i[}ar party upon any breach by lhe o{her
party under thlg L€ase shall lmpdr such rlght or remedy or be constued as a walver of any such breach
thsretofom or thersafter omunir6. The walvr by elther party of any breach ol any pmvision of thb
Leasa ehell not be daemed to be a ralaiver of any subsequent breari d the sama or any oltnr pmvlsions
herein contained.
13.14 llhccllencour. Except as may otherylse be atpressly oet forth h lhis Loase, Tenant's
@v€nant to pay Rent hereunder ls lndependent of Landlord's p€rfoma,rce of its covenants hsreunder,
end Tenant tpneby expressly waives he benefrt of any statute to lhe contrary. Should any provlslors of
thls Lease protr€ to be lnvalld or lllegal, such lnvalidity or lllegality slull ln no way afbot, lmpah or
lnvalidate any other prcvlslone hettd, and wdt remalnhg provlsiors chall remaln ln fuf force ard Btr€ct.
Time is of lhe esserce wlth mspect to the payment d Rcnt aM the p€rbrl[ance of every othe prwbbn
of thls Lease ln whlch tlme d perbrmarrce b a factor. Any copy of lhls L€ase that ls er<ecuEd by tha
partes shall be deemed an original for dl putposes. Thls Lease sltall, subJect to the provlsiwrs r€gardlng
assignment, apply to and bind the respective hdrs, ruccc€sot$, exocutort, admlnlgtrators and asslgm of
Lardlord and Tenant. The term'pargy' shall mean land]ord or Tenail as the conbxt implies. The term'indudlngf shall msan, if the ulorde \Mthqrt llmilaUon are not aheady referarroed, 'indudlng without
llmttallon'. lf Tenant onsists d more than one Per:on, then all members of Tenant shall b€ Jolntly and
severally llabb hereunder, Thb Lease shall be conskued and enfsced ln accordance wlth tha Lauu of
the State ln whlch the Premlsas ars looat€d. The captlms in this Lsae Ere for convenience only and
shall not be mnsbued ln the construc-tion or htenrelatlon d any povislon hreof. WhBn the contsxt of
thls Lease requlr€o, the neuter gendr lncludes &e mascullne, the femlnine, a partnershlp, corpordlon,
llmlted llablllty company, Joint venhrre, or other form of bttslness enlity, and lhe slngular lrrcludes tle
pbral. The terms 'mugt,''Bhall,'tvifr,' and "4tao'ara mandatory. The term 'ma/ ls permlssive. Wlren
a party ls requlred to do eometHng by thls Lsate, lt shall do so at ib ude cost and orpensa r,ylhout rlght
of refrnbursement frorn lho dlrcr party unless specifto ptot/lolon ls made lhetefor. ln lhis Lease, the ulods
"sde dlscr€tlon' or'eole and abeolute dlscrdlonn, wfren applied b a part/s exerclse of disore{on, means
lhat stnh party may oterclse its dlecrelion as lt deoms fft, whidr may be arbltray and unreasonable, ard
wtthout belng hald to any sterdd. Lendlord and T€nant shall bolh be deemed to have draflsd lhls
Lease, and the rule of constructlon that a doorm€flt ls to be construed aphet lhe drafliqg party ehall not
be employed in &re constructlon or inhrpr€tatlon d thls Leaeo. WhmTssnt is obllgated not to perform
any ac,t u ls rnt parmltted b perfurn any act, Tenanl is also oHklated lo restraln eech Tenanl Party, from
perfonnlrq such act. tGlther party slall bccorne s be deemed a paltrur or a folnt rrenturor of the ottrer
by reason dany of the prortslons of thb Lease.
13.15 Submlcaloll of Leue. Submlsslon d this lnstrument fcr examination or slgnaturs by
Tenanl doos not conslitub a reoenratlon d or an optlon for lease, and lt ls mt cfiscth/E as a leage or
olhenatse untllexefltlon and ddlvery by both Lardlord and Tenanl.
13.16 No Lhht, Alr or ltlew Earement Any diminution or shultlng off d llght, alr or via,v by
any str.rdure whlotr may bo €rscled on the Cornmon Arsm or any dhe part of trte Prop€rty, or lands
adtscent b the Propaty. shall ln no way affBct lhb Lease or knpoea any lhblllg on Landlord whatsoever.
No rights to any vlew o to llgtrt or alr orer any proporty, vrrhelh€r belonglng to Landlord or any other
p€rson, are $anted to Tonant by thle Leaee.
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13.17 Rlght to Leerc. Lardlord nos€rves the absolute r$ht to efiecl such olher tenancles ln
the Buildlng and/c any dher porilon of fte Propsty es Landlord ln the orercise d lts sde buslness
judgrnent eha! determlrr to best promote lts orn lntercsts or the lntcests d the Prcperty. Teflant does
not rely m the ffi, nor does Lardlord repf€sonl. that any specifr tonant or occupant or tps or number
of tenanb or ocanpants shall, durlng he Leae Tem, trspy eny space in the Bufldlng or Proparty.
13.18 No Consaquentlal or Punftlve Damagcs. SubJed to the rcxt sent€rra, ln no awnt
shdl elther Landlord or Tenant bB llaHe to he olher for, and each party hereby walver any daim against
lhe other for, any lndlre.I, consequential or punltive damages, induding loes of rar€nuos, prollts or
hJslnes opportunlU, arlslng under or ln connecUon wlth trls Leas€ lncludlng the other pad/s heach of
lhls Lease. Notwlthstardlng anythlng to lhe ontary horetr, Tenant shall remaln fully lhble for, and
Landlord doee nd walvE any dalm for, (A) any lost revenues or poffts (lnduding lost ,ente or r€ntal
opportunitles) reculting from Tenanfs failure b surrender the Pr€rnlses (ln lhe cudltion requked by thle
Laase) upon the expiraton or sorypr terminatlon of thh Lease or (B) any or all of the Rant payable under
thls Lease.
13.19 Relrt. All arpunb payable by Tenant lo or on b*ralf d Landlord under thls Lease,
whather or mt expEssly d8mminatod Baso Monlhly Rent Buildlng Opsaung ExFrc€s, Addlthnal Rent
or Rent, shallconslltub rentior tha purpoees of Sectlon 502(bX6) of the Unlted Stales Bankruptcy Code,
13.20 Jury Tdal Wahrer. LANOLORD AI{D TEI.IANT HEREBY WAIVE TRIAI BY JURY lN
ANY ACTION, PROCEEDING OR COUNTERCTAIM BROUGHT BY EITHER PARW AA{NST THE
OTHER ON ANY MATIERS IN ANY WAY ARISING OUT OF OR CONNECTED WITH THIS LEASE
INCLUUIre TENANTS USE OR OCCUPANCY OF THE PREMISES,
13.21 Real Ettato lnvatmnt Trurt lf the ownerehip of lha Property or Building ls wer ln a
Real Egtate lnrrectment Trust then Landlord and Tenanl agree that Base lbnhly Rent and all Addlllonal
Ronl paid to Landlord under lhis Lease shall qualify as 'renls from real property' wilhin 0te meanlng of
Secilon 856(d) of lhe lnternal Rarenue Code of 19E6, es emended (tha 'Coda") and he U.S.
Department of Treaaury Reguhtlons (lhe "Regulatlont"). Should the Code or the Regulations, or
lnterpretatlons of them by lhe lnternal Revenue Servlce contelned ln Revenue Rulings, be changod so
that any Base Mon0rly Rent andlor Addltlonal Rent hereunder no lorper quallfrw es orent ftom real
propoil1/ for lhe purpmes of Secton 858(d) of the Code and tho Regulallons, other han by rason of the
appllcatlon d Sedlon 856(dX2XB) or 856(dXS) of the Code or the Regulations. then Base lilonthly Rent
ardlor all Addltbrgl RBnt shall be adlusted so lhat lt wlll quallfy (provEed, hararer, hat any adlustmerG
re$kod pursuant to thh Sectlon shall be made so as to produce the eqlvalant (ln economlc terms) Base
ttJtonthly Rent and Addltlonal Rent as payable prlorto the adjustrnent).
19.22 Quht Enpyment. So long as Tenanl pa!,s all Base lrlonttily Rent and Addlllonal Rent
as and when requlred under the terms of lhle Laase and performs all c[h€r covenanls, oondl0ons and
agreemenb made by Tenant under thls Leaee as and when requlred under the terms of lhls Leaee
Tenant shall, subject to the terme and cmdlllons of ttls Lease and tho rlghts of any Lerdw(s), peacefully
harre and hold tre Premlsos dwing the Lease Term wilhout disturbance frorn Landlord or anyone clalming
thrurgh Landlord.
13.23 Gountorpartr, Thls Leaee may be otecuted ln one or more comtsrparb, €aclr of which
stnl! consttute an orlglnal and all of wtticfi shall bo one and he sameagreement
Arilcb 14
GORPORATE AUTHORITY
BROKERS AND ETTITIRE AGREEMENT
14.1 Gorporde Authorlty. lf Tenent ls a coryonatbn q llmlted llablllty company, Tsnant
repmsen6 and wenants trat lt is valldly fomed and duly auths{zed snd o<lellng and lhat Tmant has the
full rlgtt and legal autrority b enter lnto thls Lease, and that lhe Person exeanUng thls [sase on behsf of
Tenant ls duly auhoriz€d to do so and to blnd Tmant to the terms hercof. lf Landlord is a corporallon or
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limlted llabllfty oompany, Landlord reprasafitE and wamanb thet lt is rnlidly formed and duly authorlzed
and exlslirg etd that tandlord has the fun rbht and legral auhority to erte lnto thls Lease, and lhat tho
Pereon orecuflng thls Leese on behalf of Landlord b duly aulhoized tr do so and to bkrd Landlord to tha
terms heraof.
14.2 Bokorago Commlsslont. Tenanl represoflts and rarants that lt has not had any
deallngs with any rea! eetate kokers, leasing 4ente, llndors or salasmen, oilrer than th6 Brokors (aB
named ln Ardde 1), with reopect to its leasing of he Prembe€ pursuant lo Sris Lease, and that Tenant
shafl lndemnfi, debnd and hold Landlord hermbss ftom and againstany llability for the paynont of any
raal estate brokeragn @mrnissions, leasing commlssbns or finder's fte claimed by any other real oEtato
brokerc, leasing agsnls, finders, or saleemen to be eamed or due and payabla by reason orf Tenants
€reement or promise (lmdled or olherndsa) to pay (or to hana Landlord pay) euch a comrnlselon or
finder's fue by reason of Tenants leashg the Prsmlsss Brsuant to llis Lease. Landlod repreeents and
warrants thal lt har not hd any daalings with any real estEte brokers, leaslng agonls, ftrders or
aalesmen, oher than the Brokers (as named ln Article 1), wilh respe't to lts leaslng of the Pnemises
pursuant to lhls Lease, and lhat Landlord shall indemnifr, defend and hold Tenant hannless from and
agalnst any lhbility for 0p payment of any rcal cetate b,rokerage commbgions, leaslng commisslons or
flnda/s fees claimed by any olher real eetate brokers, leasing agentE, firders, or salesmen to be earned
or due and papble by reason ol Landlord's agroamcnt or proarlse (lrnplied or oth€r'ivlse) to pay (or to
have Tenant pay) srJdt a commbelon or firder'e fse by reason of Tenanfs leaslng the Premlses pursuant
to thls Lease, Landlord ehafl pay Landlord's Broker a commlseion ln connedion wlth lhls Lease prrsrant
to Landh,rd's mparate unitten qreernent wlth landlotd's Broker. Lardlod's Bloker shall pay Tenants
Broker a portion of seid commlsslon pursuant to landlord's Brokeds sepsrate urltten agneement wilh
Tenant's Broker.
14.3 Enllro Agreemcnt; ilodlflcadonc. Thls Lease and lhs Bfiibits (as described ln Artlcle
1), vrtrbh Exhilblts are by thls rgferenoe lncorporated hereln, constitute lhe entlre ereem€nt between the
padias concernlng the subJecl mattor horeof, and thore are no otta agreemmts, underetandlngo or
representations between the partles rslatlng to the loase or oocupamy of the Premisas by Tenant No
changps, modlfrcations or addltlons to this Lsase stell be €ffiedhrer ordho{u,lse blMlng upon the pertbs,
unless ln wrltlrg and alped by both Lardlord and Tenant,
14.4 Landtord'a Repreaentatbnr. Tenant ackno,vledges that nelther tandlord nor any of its
agents has made any representatlone or waranties, elpress or lmplied, rospoc|lrq tha PnemFee or any
other part d fire Property wtrlch are nclt orpreesly set forh in thls Lease. Tenant furtnr acknovledges
that nelther Landlod nor any of itr agonte tng mada any ftrpresonlialions or wanantho, expnoBs or
lmplled, s lo (i) wtretrt€f the Premlsos mey be used tur Tenants interded use under existing Lam, or (ll)
the sullability d tre Pamtses for llp conduct of Tenant's buslness or tre lltrme of the Premises for a
particular purposre, or (lll) the exact s$rafe footage of the Premises, aM that Tenant relleo sobly upon h\s
ovn investlgallona wlth repect to cuch matterB. Tenant expreosly weilves any ard a[ clairns for damage
by reason of any slatement, repres€ntralion, warranly, profiloo or dher agreemenl of l,.andlord or lts
agtsnts, lf any, not contairred ln thls Lease or in any Exhibit atlacfpd hsrcto.
14.5 Lsndbd Exculpatlon. lt is oer€sdy understood and agreed thal nohrtlhstranding
anythlng ln hb.Lease b ths conlrary. and ndilfihstandlng any appllcabh Laua lo ths confary the
llablllty of Landhfd and any recorrse by Tenant agalnst Landord slnll be lFnlted solcly and uclusively to
an amount wfrlch is 6qual!o the lnterest of Landlord in the fuildhg, and neither Landlord rxn any own€r,
stockhofier, dlrecior, offioer, member or p*tter d Lerdlord shall have any personal llabltty lhetefor, ard
Tenant hmby expesaly walves and releases suct personal llabllity m bdralf d itself and all Persons
clalmlng by, through or undo Tenant.
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00601052.2
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lN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the respective
dates belorv set hrth with the lntent to be legally bound thereby as of the Effective Date first above set
forth.
LANDLORD:
HEIi'LETT+ACKARD COTIPANY, A
Delaware corporation
Dated:J 2015 By:
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Name:
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By:
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fa$Ftf tr 0/5fi$/f/4//-f
TENANT:
SYKES ENTERPRISES, INCORPORATED
a FlorHa comoration
Dated:..Ju*€ l7 ,zots
T
Vice President
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lN WITNESS WHEREOF, Landlord ard Tenant heve execlbd thls Lease c of the tepective
dat6 bslory set hrlh wtth the lntent to be legaf,y bumd heraby as of th€ Efioctlvo Date first aboo s€t
forlh.
LANDLORD:
HEU'LETT.PACKARO GOMPANY, A
Oelaware corporalion
Dated:2015 By;
Name:
Tltle:
TET{ANT:
SYKES EI{TERPRISES, INCORPORATED
s Florlda corporation
Dated:2015 By:
Name:
Tltle:
fix101052-2
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(xiil) amounts due under any lhld perty managpment agreement ent€rBd into
by Landlotd wtth rospec{ to Sre Bufdirp and/or Common Areas or any part
lh€reof (including the cost of any managemonl fee wtrlc*r shdl not exceed 3% of
the groes rants of $re fuHdlrg);
(xiv) ass€ssments, fues or other paymonF dus any orunors' assochtion;
(xv) amortization (lncluding lnter6st on thc unamortzed cos$ of tte coet of
acquhlng or the renlal expenBe of personal piopsrty ue€d ln tlre maintenance,
operdon and repalr of tre Bulldlng and/o Common Auas;
(xvi) if Landlord self managBs the Building, or has an Affilate of Lardlord
mamga lhe Bulldlng, in lleu of he fees unds clause (xill) above, an amount
equal b three percent (3%) of the gross rentE received by Landlrrd Forn h€
Eullding; and
(xvli) the cost of arry capitalknprorcmerG, otpendltures or otlpr ccts (l) wtrlctr are intended
as a labs+arring dwlca or to frc;|. othar economies ln the operatbn or malntenancc of tho erming
and/or Common Aroas to ths etttmt hey rcasonably rcduco euch costs, a (ll) made to the Buildlng
and/or Commm Arees or any poftion lh€roof affer the Term Commerpanent Date that are rssJhed
under any appllcable Lau exdudlng lmprovements or alterations by Landlord lo ccrect t-ardlwd's prior
vkdatkon of such Law, or (lll) wttlch ar€ neoesearyr ln Lardlord's sole good fallh oplnlon, to operale, keep
and malntdn lhe BuMing ardor Common Areas as a frst class multi-tenant dlce bufidlrg; provided,
hoirsv€r, that lf any such cost descrbed ln (l), (ll) or (lll) abole, b a oapital expendlture, such co6t shall
be amor0zed (lncludlq lnterset on lhe unarnortlzed oost at fie psr annum rate d slx percent (6Yo) orar
Its useful life as d€brmlned under generally acoept€d accountlng prlnridee (GAAP). lf in any Expense
Year Landlord le not fumlehing any patlolar work or servlce (the cost cf whlch, lf performed by Landlord,
rrrould be lnduded ln Propedy Malntenance Cosb) to a tenant who has underlaken to perfoon such no*
or seMod ln lleu d the performance thersof by Lattdlord, Proffiy Malntenance Costs shall be d€omsd to
be increae€d by an amannt equd to the addltonal Property Malntenalo€ Costs whlch rmlH reasonaHy
havs been lnannad durlng suoh psriod by Landlord lf it had at i6 own e)eens6 fumished such work s
servlc€ to such tenant.
'Prcpefi illalntenancc Cootl'shall not indude the follqrlng, whlctr shall control ln the event of
any confliri wlh the definltlm of 'Property Maintenanca Costs' above or any olher terms of [ils Leaee:
0) oosts of caplial repahs, capltal replacements, or caplld lmprorements to or fur lhe
Property. Buildlng or the Prembes or to or fo any Common Araas, other than thooe
descdbed ln dause (xvll) dlhe precedlrg deflnltlon of'Property Malntenanco Goehf'(iD coots lncured h cormection wt[t tha odghal construcllon of the Property or &rildlng or ln
conectlon wUr any malo clungo ln the Property or Bullding, such as addlng or deleUng
foas or Common Arcas;(lll) coots of repalr or replaemsnt of the foundatlon, atnrctural elsments, exterlor walls and
lhe urdergmound utllUes d or seruing the Properly, Premlsee or the Buildlng;(tv) costs of the deslgn ard conaEudion d Landlord's Work, Tenant improrcments to lhe
Premlses or the premhes of c[hsr tcnants;(v) deprmlatlon, lnbrcet ard prlnclpal paymonts on mortgagps ard other debl costs, lf any
md amounts pald as grcund rcntal or as rcntel fs the Pmperty or BulldirB by the
Ladlord;(vl) marketing cmts, hgnl fees, spce planners' feea and adverlisirp and prundlonal
o(penseo, and brokeragB fees inoursd ln connecllon wlth the oriSlrd dorelopmenl,
subs€quent lmprorem€nt, ot orlglnal orlbture leaslng of Sre Property;(vli) cosb b wtilch any t$ant dir€cily conbact wilh local providers, costs for s,fihh th€
Landlord ls rslnbureod by any t€nant or occupant of lhe Property or by lnsuranca by Its
oanier or any tenanfs canier or by anpne els6 and expgnSer ln connedlon w{th
seryicas or ottrer bendts whlch are not fu to Tenant or for which Terrant ia ctraryod
r::F',h-'
E:,
:
:
00601052.2
-46-
(viii)
0x)
(x)
(xl)
(xii)
(xlli)
(xiv)
(n)
(rryi)
(ni0
(xvlll)
(xix)
directly but whlctt are provlded to anolher tenant or occupant of the Property wlthort a
separato chargp;
any bad dcbt loos, rent loos, or rcserves for bad debts or rsnt lms;
Landlord's ganeral corporab orrerhead and general and adminlstrative expemee and
ohor coBts assoclatod with lhe operauon of lhe buslnesg of the ensty $fikfi con8ltJtes
lhe Landlord, as the same are disthqubhed hom the costs of operaton of lha Propsty,
lncludlng partnershlp or corporato acmuntlng and legal matters, costs d defierrdkrg any
lawsults with arry mo(gage€ (except as the mlions of the Tenant may be at lssue), costs
of aelllng, syndlcaUng, f,nanclng, mo@aglng or hypothecatlng any of lhe Landlord'g
interest in the ftoperty or any portlon lhereof, ard omts lnamed in connection wllh any
disputes, lncluding but not llmited to any dlsputes betupen Landlord and lb emdoy€aq
betuaen Lendlord and Ptoperty manaqement, or bdlroen Landlold and other tonanb or
occupants;
the wagas and benefits of any employea who does rpt devde subetantially all of hls or
her employed tlme to the Bullding unless such uages and beneffts arc pn rat6d to reflec.t
tlme spent on operatlng and managlng the Properly vis,*.vb 0ma spenl on ma$er8
unrdated to operating and mamglng tho Ptop6rt)r; prorlded, lhat ln no event ohall
Bullding Operatng Expenses lnclude wages and/or benefiB aflribut*lo to personrrd
abow the lot/ts| of on-elte Project [ianagor or on-slto ProJec-l Engineer or any
compensation pald to clerks, attondants q other p€rsons ln commerclal conessions
opsreilsd by the Landlord;
coets, im{udlng permlt, lhsnse and lns@lon coots, lncuned wih respect to tha
lnetallalion d tenant lmprqremonts made for new lerants ln the Property or lncuned in
rerrcuatlrg or olherulse lmprodng, docoratlng. palnting or mdecorating vacant space for
tenanto or other oocrJpants of the Property (excludlng, horever, such costs relating lo
any Common Areas);
orerh€ad and profit increment pald to tho Landlod or to substsbdes or affillateo of he
Lardlord for senrlces in the Propefi to tre extent lha same exceeds the coels of such
seryices rendered by qualilled, flEt-class unaffiliated hhd p*ties on a competitfue basle,
which psrtles render servicoe at comparabb properlhs;
rentals and dtpr releted €xp€ns€xt incuned in leaslrg dr cordltkming s),sbm$, elevators
or other equlpment, the cosl of which, if purchased, would be oduded from Properly
Malntenalrce Costs as a capltal coet, oxcapt equlpment not affxed to the Property wtrldr
le ueed ln provldlng pnltorial or slmllar ssrvlces and, furlfnr exceptlng from lhls exclushn
such cqulpment rented or leased to rs{nedy or amollorats an emergpncy condllbo at lhe
Property
cools, otter than those lrurned ln ordinary malnlenance and repalr, fur sculpture,
palntlngs, fountaino or other objecte of art;
hes and relmhrsements peyable to Landlord (hcluding lb afftlbtea) for management of
the Property wtrldr ttouH ordnarlly be lnduded ln a rnanagernent fee, ln exes d the
managoment fee thet a landlord ruould have been requlred to pay b comparable
independent establlshed managemont conpanles operaUng otha cunparable properties
in comparabh toaa0om ;
costs to repair a tebulld after cesualty loss (excludirq deduclibles under insurance
pdlcles canied by Landlord, whlch deductlbles ehall bo inolded ln Proffiy Malntenance
Ccb and which dedrctlbles shall not exceed $10,fi)0ln any one Expense Yearl
any oonts dxprsesly excluded ftom Prqerty Melntenanca Coets eleevvhore ln the lease;
rcnt for any offir spaca ocoded by proparty managpment pereonnd to th6 Bxtent llte
glze or rental rate of such office space exceeds the slze or fak markat Ental vakJe of
office space occupled by managanent personnd of comparable properties ln he vblnlty
of lhe Property, with adfustment where approprlate for lhe elzo d the app[cable pnriect;
all assessrnonto and prerniums whk$ ars not epaclfbafly dnrgd to Tenant because of
what Tonant tlas don6, whlch aan be pald by Landlord ln installments, slull be pald by
Ladhd ln the maxinum number of hstallm€nts pemltted by law (except to the extent
lnconslstent with lho genral practice of cornparable properlles ln he vicinlty of lhe
I
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FE
E:.,
0060lut22
-f&
(xx)
(xxl)
Property) and ehall be lncluded ae Property Mainbnance Costs in [re ysar ln whldr the
assssmenl q pemlum hstrallment ls actrally pald;
costs arhlng from the neglfinnce or willful misconduct of Landlord or fts agents,
employeas, vEndors, conbaotors, or providera of materiah or services;
costs lncunsd to comdy wi&t laue or regulatione ln effect as of the Term C;ommencsmenl
Date, lncluding but not llmlted to hws and regulatiom rdatlng to handbap ams or lhe
ramoral of Hazardous Matgrlals ln exlet6nce ln tha &dldlr6 or on tha Propedy plor to the
Term Cornmenooment Date by r€ason of [re act or omhsion of Landlord or any of ]E
employees, agonl3 or conhactors (and not otherr,vEe) or ls brought Into the Bulldlrg or
onto ths Property afier he data hereof by Landlod, any Landord Parlg or any olher
lenant of the Prcpelty (ercludlng Tenant), and ls of sucfi a nature that a Federal, State or
muniolpal gov€mmont govornmmtal authaity, lf it had krnu,lodgn of lhe prasence of
such Flazadous Materlals ln the slate and under the condltlons that lt then exists ln lhe
Euilding or on tha Proporty, wuld raquirt lhe remoral d such llazadous Materlalg or
trvot{d require other remedlal or contalnment actlon with respect thercto pursuant to laws
in efuct as of ths Term Gornmerccmant Dato (ln the ovfft that sr.rch costs of compllance
are not pald by Landlord and ar€ instead chargad b Tenantor dFec{y by a gwemmenlal
authalty, Ledlord agrees that it willrelmburse Tenant fq such dnrgee);
Polltlcal contrlbutions and dues peld to trade *sodallons or other professlonal
assocJa$ons (whlch do not lnc-lude ownerE amociations):
lnteresl fine, late fees, collectlon costs, lsgal feee s penaltles asesseod as a result d
Landford'a fallure to make payments in a tlmdy maflter or b comply with appllcaHe
Laws, lnchdlng thce regarding the paymeril of bxes, or to comply $illh Ote torm6 of any
leas6, morQHgts, deed d tust, ground lese, plrrate restrlction or other agreenrent;
Cosls of acqulrlng or mdntainlng any art work fur lhe BuiHing and/or Common Areas;
and
Reaerves for repairs, mdntenance and replacemeds beyond crinont-y€ar antlcipated
expars€s.
(tql0
(:txlll)
(xxlv)
(xx\,)
{q) Property Operatlng Expures. The term'Plogerty Operdlng Expemeo
shdl mean and indude all Real Property Ta:<ec plus all Landlord's lnsuranca Costs plus all Property
Malnbnarrce Coots plua dl Lendlord's UUlitles Co6ts, hdldlng, wilhont llnitafon, coets and expemes
paid or incwred by Landlord ln connecUon with seruices. u$ittes or olherfundlons shared by the &rtdlng
and oilmr portions (whether lnterbr u o(cior) of the Property, lnduding, uithout limftbtlon, nilrral gas,
electdclty, and o$rer coets hr the Campus oenlral plant that provldm heaUng uiater to the fuIdin$ storm
water managpment, domeslic wator, E€lirsr, and inlgntlon water; landscapng; roed repak; snon rcmoval
and strect lightkrg. Tenant acknor{edges that ceilaln Prcperty Operating Expnses may be lrrcuned by
Lardlord for part or all of he Property and Landlord may allocate he apdlcaUe portion to Buildlng
Operating Expenses ln aooordarne wlth the provlsbns d Sectlon 3.2 above.
(r) Real Properly Tarce. Ths term "Red Propefi Tex" or "RealPmpcily Trxo!" shall each mean (l) all texes, assessments, levies and o0la charges of any klnd or
nahre whatsoor/Br, gon€ral and special forBsgsn and unforeseen (hdudlng all lnstrumsnts of principel
and lnterest requlred to pay any general or spoclal assetsmonB for puHic improrements and any
lncreases retu!0ng ftom reassosements caused by any change ln orna$rlp or new oonehrc{on), rplv or
hereder imposed by any golernmenhl or quaeigovemmental auihorty or spedal dbkbt havlry lhe
dlrect or indhect powor trc tax or levy assostrnente, wttbh se lwled or assessed fur whatever roas{xr,
ard whother or not exclusfuely, agalnat thal pdtion of lhe Properly that lnCtdes the BulHlng and/or
Common Areas or any portlon h€roof (indudkrg any llxtures, equlprnent and o0rer property of Landbrd
located ln fie Buildhg or on lhe Common Areae that is treabd by tn taxlng authorty as real propwty) or
Tenants lnterest heroln, or Lardlord's buslness d onning, laaelng or managlng the Building and/or
Commo,n Areaa or lhe gross rccalpts, lncome or rentals fr,orn th€ Buldng end/or Gornmm Areas, (ll) aB
charges, lanies or fueo lmpoeed by any golernmentral authorfly agnlnst Landlond by reason d or bassd
upon the use of or number of partlrq spaoes wittth the Conmon Alteas, $e amount of phlh servlcaa or
publlc utllltbs used or consumed (e.9. water, gas, eleclricity, sewags or waste uater disposal) at lhe
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EFFF.:
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006010522
17-
&rilding and/or Gommon fueas, the number d Persons emp]q@ by tonanh d the Bulldlng, the slze
(whether measured ln area, volumg number d tenants or whatever) or the rralue of that porllon of the
Pnoperty lhat lncludes he Buitding and/or Common Areas, or the typeof uso or usec corducbd wtthln lhe
Bulldirg and/or Common Araas, and all cogts and fees (lncfuding reaoonable attorneys' fuee) reaeonably
lncuned by Landlond ln conlseUng any Real Prcp€rty Tax and ln negotiatlrq with pnbllc authorlUes as b
any Real Property Ta(, lf, at any tlme durlng the Leaee Tenn, he taratloo or ass€ssment of that portbnof the Properly that lndudes the fulldkrg and/or Common Areas provalllng as d the T€rn
hmmencement Date shall be altered so that ln llau of or ln addlUon lo any of lhe Rcal Property Tax
descrlb€d above there ehall be lorled, awaded or lmpoeed (wtrdher by reason of a charge ln the
meffrod of ta:talion or aosessmen! qcaUon d a neru trax or charge, or any ottrer cause) an altemate,
atfialltrta. or addlUonal usa or charg€ (l) on the value, size, use or @cr,rpancy d lhe Bulldlng and/or
Common Areas or Landlord's lnterest tharoln or (li) on or measured by the grosr rccelpls, lncome or
rentals tolrr the Bulldlng and/or Common Arec, or on Landlord's buslness of orning, leaslng or
managlrg the BulHlng andlor Common Areas o (lll) oomputed in any manner wlth repesl to tre
operatlon of the Bullding and/or Common Ar€es, hen any such tax o charge, honover dee[nated, shatl
b6 lnolud€d wlhln lhe meanlng of the terme "Rral Proporty Tat' or "Red Prcporty Tucd for
purposes of this Leaso. lf fint portion ot the Propcty that lncludes the Bulldhg and Cornmon Areaa lepail of a largsr parc€l csssaed ae a single parcd lo Real Propety Tax purpos6, tlren Landlord shall, In
lb reasonaHe discrcdon, equitably apportlon lh€ Real Propedy Taxes belrreon the Bulldlng and Common
Areas and the balance of such single parcd. lf any Red Pmpaty Tax la parily basad upon property or
rents unrelated lo tho Bulldlng and/or Common Ar€as, then only that part of such Real Propaty Tar thet
ls falrly allocable b fne Bulldlng and/or Common Areas shall be lndud€d wlthln the rneanlng of the terms
"Rsal Pmpeily Tax'or "Red Pmpertyl Taxec."
Notwithatandlrg th6 for€gplng, (a) the tems "Reel Property Tlx" or rrReel Property Taxsc"
shall not lndude estrate. hherlanoe, tran6f€r, glft, ftanchbe or ocise taxes of Landbrd s tho fadenal or
state lnoome tax lmposed on Laodlord's lrrcome from dl 8orloo8, forelgn omeship or conlrol,
susession, reoordlng, payroll or stamp hxes; or (b) c lato payment fo€s or lntorset on late tax paymenE
if m Event of Default exlsls at the time Landlord's psyment ls due.. Any Real Property Taxes hat are
permltted to be pald in insldlments orer a perlod of Ume (u,ithou the impooltlon d lntergst penaftles or
dher charge) shall be daemed paid in the madmum number of pemllted lnstalhnents ard ooly tle
mlnlmum number of lnstallments requlred ln arry given year may be lnduded ln Property Operating
Expenses for any &pense Year.
(s) Rent. The term 'Rcn[," shall mean colhc{lvely 8ae Monthly R6nt and
allAdditlonal Rent.
(t) WsrE cnd Equlpmeilt Ths t€nn r8yrterr and Erylprnmf'shall
mean any plant mac*rlnery, chllbrs, transformers. ducl work, cablo, wiroo, dpdlnee and other Gqulpmant,
faclllfie, and splame designed to supply heat, vsntihtion, ak condltionlng, humldity, gas o any olher
services or utilltas, or comgislng or servlng as any oomponffit s porton of lhe electrlcal, gas, ateam,
mecfianlcd, plumblng, epinkler. oommunicalions, alatm, aearrity, orfre/lifesaHy eptems o equlpmen[
or any o,hcr mechanlcal, electlcal, decbonlc, comprter or olher sysbms or eqrlpment wtrich serue the
&lldlng and/or anyother bulldlrB on tha Prqerty bt whde or ln part.
(u) Trancferce. The tcrm "Tnnricnc' shall mean any aseignee d
T6nant'a htGrsst in lhis Leeso, any subl€s8€o of al or any part of lhe P]€miseo, any Person poesecdng a
securiW lnterest in Tenanl's lntcrest in thlg LeE$ andrbr the Prernises, and any other Fansferea of
Tenanl's lnbloet ln thls Leaso.
(v) Tcnant Party. lh€ term rTenart Padf' shall mean any agmt,
ernfloyte, guest, vlsfior or other lnvltee, servant conbactor, subconlrachr, BubleoEeo, fu@essor or
aeslgn ofTenant.
r.'
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qxo1052,2
-{8-
(w) Landlord Party. Tho tsrn 'Landtotd Parg' shalt mean any agenf
employee, guest, visltor or dher lrwitee, servant contrac{or, subcontractor, suHesseo, succegsor or
asslgn of Landlord.
13.13 Gerctal Walvuo. One pady's consent to or apgoval of any acl by lhe ottnr pffty
requirlng the nrsl party's consent or apprwal shatl not be deemed to rahre or render unnecessry the
Itrst par!/s cottent to or approval of any suboequent slmllar act by the other party, No uraiver of anyprwlsbn horcof, or any waivor of any huach of any pmvislon hereof, shall be effec0ve unless ln wrlllng
and signed by ths uralvlng party. The recelpt by Landlord or remlttarrca by Toant of any rcnt or peym€nt
wlth or withotlt knoudedge d ttp breaoh of any other prwlolon hersd shall not be deemed a wafuer of
any sudt brsach. No wafuer of any provlslon of hls Leas€ shall b€ deemed a continuing wafuer unlees
such walver epeclflcally stabs so ln writlng and ls algned by botlr Landlord and Tenanl l,lo dday or
omlssion ln the o(erobe of any rigfit or remedy accrulng to efthor party upon any braach by fre olher
party under thls Lease shall lmpalr suoh rlght or remedy or be conslrrred as a walver of any such breacfi
theratofora or thereafier occuning. The walwr by elthar party of any brcach of any provlslon of thls
Lease shall not be d€emsd to be a wafuer of any subse+rent breach of the Bamo or any other pruvlsions
herein contralrpd.
13,14 ilbcellaneoue. Excspt as may olhenrise be expressly set forth in lhis Lease, Tenant's
cownant to pay Rent hereunder ls lndependent of Landlord's perfomance of lb covenanE trcreunder,
and Tenant hereby otpreealy walves ths b€nafft d any stalute b lhe cortrary, Should any provlslons of
thls Leese prove to be tnvalld or illegal, such invalldlty or fiegall$ shaill in no way afreot, lmpalr or
lnvalEalo any dher prcvlslons hereof, and sudt remalnlng povlslons shall romaln ln full force and effect.
Tlme h d ths essence with respect to the paymont d Rent and the perlomance of every dw pro/slon
of this Lsase ln whlch Ume d perbrmance ls a factor. Any copy of ttrls Lease that ls o<ecuted by the
pailes shall be deemed an orlglnalfor all prposes. Thls Lease ahall, subJectto the provlslone rcgadhg
asslgnment, apply to and Und the r€spsc{lrre helrs, successors, oxeculorc, adminiskators and asslgns of
Landlord and Tenant. The term 'party' shall mean Landlord or Tenart ae lhe conlexl lmplbs. Tlp term'lnduding' shall mean, if the u,otds ltdthout limilatlon are nd dready refrenced, *indudlng witput
limitratlon'. lf Tenant corplsts of more than one Persofl, then all merberc of Tonant shall be jointly and
sewrdly liable hereunder. Thls Leaso shall be construed and enforced ln accordance with the Laws of
thg State ln whlcfr the Premlses are located. The captlms ln thls Leae arc for convenlence orrly arrd
shall not be construed ln lhe conskuclion or interpretatlon of any provlelon heroof. When the contod of
thls Lease requlres, the nwF gerder indudes the mascullne, lhe femlnine, a partrremhlp, corporallon,
limited llablllty oompany, pirt verrtum, or oher form of bwlnees eillty, and the slngular lncludes he
plural, The t6rm8 'mustn' "shall," 1rill,' and 'egree" are mandalory. The term 'may' ls permissive. When
a party is requbed to do somelhlng by thb Lease, ft ehall do so at lts sole coat and orpense wtthout right
of relmbursement ftom the otho party unless speciflc provlsion is made lherefor. ln hls Leasq the words
'sole dhcrelhn" or'colo and abeolute dlscr€tion', when appliad to a party'e exerclse of diecretbn, means
0rat such party may exerdse lb discration ae lt deems fft, whioh may be arbitrary and unreasoflable and
wihout belng hald b any strandard. Landlord and Tenanl shall both bo deamsd to hane drafred this
Leaso, and the rule of construotlst lhat a document ls to be oonslrued agnlnst the draftlng pafty shdl nc*
be emfloyed in the corslruclbn or interpretatlon of thls Leaae. Where Tenant b obligated not to perfurm
any act or E rd permited to perform any act, Tenanl is also obligated b pstraln eaoh Tenant Paty. fronr
performlng such act. Neiltref party shall bec!{it6 r be deemed a portner or a plnt vonturcr of the other
by reason of any of the provlclone of Etls Lease.
13.'15 Submhrlon of Le*e. Submieslon of lhls lnstument for examlnatbn or slgnaUre by
Tenant doee not oonelifute a reaeryatlon of or an opton for lease. and lt is not affeotive as a lease or
othenrdse un0l e,recutlon and ddlvory by both Landlord and Tenant.
13.18 No L[ht, Alr or Vlew Easoment Any dlmlnution ot shutting off cf light, air or vieru by
any stucture wfrlch may be erected on lhe Common Arsae or any dhe pat of lhe Property, or lands
adiacenl to tho Property, shdl ln no way aff€{d tris Lease or knpee eny llab[irty on Lendlord wtratsoevsr.
No rlghts to any vlar or to llgfrt or alr owr any property, whothor bebndns to Landlord or any other
paraon, ar6 grantsd to Tenant by lhls lcase.
I
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0060t0J2"2
.tS
13.17 Right !o Leare. Landlord resen 6s the abeoluto rlghl b effect such officr temncias ln
the Building and/or any other portlon of llm Rop€rty as Landlord ln the o<erdse of lts sde hrslrpos
Judgment shall determine to b€st promols lb qvn lnlercsh or the lnteresb d lhe Property. Tenant does
not rely on tfp fact nor does Lardlord represent hat any speclflc taant or occupant or type or number
of tenants or oca4ants shal!, durlng tte Lease Term, occupy any spaca ln the fullding or Property.
13,18 l{o Concequentla! or Punllfuo Demeg6. SubJec* to tho neld s€nlon6. ln no event
shall elther Lsndlotd or Tenant be llable to the otlur for, and ech psty hercby welveo any dalm agalnst
the other for, any lrdlr€ot, consequential or punltlve damagio, lrdudlng locs of revenuee, proffls or
business opportunl$ adslng under or ln connecdon wllh hls Lease hcluding 8ra o0ler parly's breach of
lhls Lees€. Notwlthstandlng anythlng to the contrary herein, Tenaot shall ramaln fully llable br, and
Landlord do6 not walve any clalm for, (A) any lost revenues or polits (lncludirp loet renls or rsntal
opportunltles) resulting tom Tenanfs fallure to Eun€rder ths Pr€rnlses (ln the condltlon required by thls
kasa) upon he oplratlon or sooner terminallon of this Leaso or (B) any or all of the Rant payable under
thb Lease.
13.10 Rsrt. All amounb pay€blo by Tenant to or on behdf d Landlord undcr thh Leaso,
wtredher or rot oeressly derpmlnated Ease MontIy R6nt, Bulldlng OpuatlrXg Expenses, Add&lonal Rent
or Rent, shall consthrte r€nt fc the purposeo of SecUon 502(b[6) of tlrc Unlted States Bankrupby Code.
13.20 Jury Tdd Walvsr. I-ANDLORD AND TEMNT HEREBY WAIVE TRIAL BY JURY lN
ANY AGTION, PROCEEDING OR COUNTERCI-AIM BROUGHT BY E]THER PARW AGAINST THE
OTHER CA{ ANY MATIERS IN ANY WAY ARISING OUT OF OR CONNECTED WTTH THIS LEASE
TNCLUDING TENANTS USE OR OCCUPANCY OF THE PREMISES.
13.21 Rod Ertate lnvcctmeht Trurt. lf the ownershlp d 0re Propwty or Buldhg is ever ln a
Reel Estate lnveetment Trust then Lardlord and Tenant agree that Base tvlonhly R€nt ard all Mdltiond
Rent paid to Landlord under hls Lease shall qudfi aa 'renls Forn rcal propert/ wlthin lhe meanlrrg of
Seclion 856(d) of the lnternal Revenue Code of 1986, as amended (he "Code") and the U.S.
Department of Treasury Regnthtlors (lhe "Regulatlonc"). Stnrild the Cade or the Rogulalions, or
lntsrpretatlons of hom by the lnternal Revenue Serybs contairred ln Ravenua Rullngs, be changed so
that any Base illonthly Rent and/or Addltlonal Renl hereurder no longer qualffiee as "rrnl ftonr real
propert!/ for he purpoeeo of Secilon 866(d) of tho Code and the Regula[ons, ottpr than by reason of the
applioatlon of Soc0on 856(dX2NB) or 85€(d[5) of the Code or the Ragdalbns, lhen Base Monthly Rent
and/or all Addltord Rent ehdl be adJustd so that lt wlll quallfy (provHad, htnvgv€r, that any adjustrnenb
reqrhed pursuant b thls Section shall be mada so as to producs lhe quivalent (ln oconomlc termo) Basa
i/bnthly Renl and Additlonal Rent as payabla prlor to the adfntment).
13.22 Qdet Enfoyment, So long as Tenant pay6 all Baao il[onlhly Rent and Additional Rent
as and when reqrlrcd under the terms of lhle Leaee and performs atr ollpr cownanB, cordlllons and
a$eom€nts made by Tenant under 0rls Lease as and wten requ*ed under lhe toms of thls Lease
Tcnant shalt, subJed to lhe terms end condltlons of thls Lease and tE rights d arry Lendo(a), peacatully
have ard hold the Pnemlees during ttc Leasa Tem wlthout dlshrbance from Landlord or anyone olaiming
through Landord.
'13.23 Counbrpaftr. This Laasa may be exeoled in one or rnone counterparte, each of wtrk*r
shall consfltute an or$nal and all d wftloft shall be ona and tre same agresrnont.
Artlcb 14
GORPORATEAUTHORITY
BROKERS ATTID ENTIRE ACREEI,ENT
14.1 Corpor{. Aulhodty. lf Temnt le a corporatlon c lknibd fiablllty company, Tenant
represents and wanants that ll b valHly Iormod atd duly athodad ard oGtng and that Tenant has the
fufi dght and legra! auhorlty to entsr lnto thls Leaee, and lhat the Peram execuling trls Leese qr behalf of
Tenant ls &rly authortsad to do so ard to blttd Tenant to the tcrma horsd. lf Lsndlord h a corpaaUon or
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limltad liability oompany, Landlord representc aId wananb that lt ls rali{y hrmed and duly zuhorlzed
and exlstlrp ard that Landlord has the full rlght end leggl anthority to entor lnto thlg Lease. and thal the
Person exmrtlng this Laase on behalf of Landlord b duly authorlzed to do so and to blnd Landlord lo ttp
terms herccf.
14.2 Bmkerrgn Commbclons. Tenant represonts and umrants thal lt has not had any
deallngs wlth any real estate brokers, leasing agonts, finders or selasmon, othar than the Brokers (as
named ln Arthle 1), wlth respeot to lE leaslng of lhe Prsnlees Btrsuant b tHs Lease, and that Tenant
shall lrdemnfi, defend and hold Lardlord harmlec tom and agalrrsl any lhbfflty for the paymant of any
real estrate brokarage commi$slons, leaslng commiasions or finder'e fees dalmed by any othe rsal estiata
brokerc, leasftU agenE, flndsrs, or salesman to be eamed or due and payable by reason of Tenanfs
agreemenl or prcmlse (lmdied or otheuise) to pay (or to hatre Landlord pay) suoh a commlesbn or
finde/s fee by reason of Tenanfs baslrp the Prernlses pursuant to lhls Loase. Landlord represents and
wanants that it has not had any deallnge wlth any roal €stat€ brd<ets, leaelng ag6nts, flders or
salesmen, o&er than the Brokere (as named h Adde l), wllh respect to lts leaslng of lhe Premlses
purstrant to thls Lease. end that Landlord shall indemnfi deilend and ho6 Tenant harmless fnom and
asahst any liablllty fu lhe peyment of any real estste brokarage commbsiurs, leastng cornmlsslons or
findor's fees dalmed by any other real estate btok€rs, leaslng ag€rils, ffndsp, or salqmert to be eamed
or due and payabb by reason of Landlord'c agreement or plunlse (implied or olhenillse) to pay (or to
have Tenant pay) st.ldr a osnmlssbn or frrde/s fee by reasm of Tenanfs leaslng the Prernisss purcuant
to thls Lease. Landlord shall pay Landlord's Bmker a ommlsahn h connectlon wl$ thb Lease purtuant
to Larrdlord'a segarate urltten agfeement with landlord's Broker. Lmdod't Brd(€r shall pay Tenanfs
Broker a portbn of sald commisglon purguant to Lendlord's &okeds separate mitten agreement wlth
Tenant's Broker.
14.3 Entlrc Agreement; Modificatbnc. Thls Lease and he Exhibfts (as dscribed ln Artlc{e
1), which Exhlbits are by thls rsfsronoe lncorporated hetpln, comtlMe fte erilire agreemenl betrveen the
partles concernlng the subject mafler hereof, and lhere aro no other agreemenls, understardlnga o
representatons behrwen the patles relatlng to he lease or rrccuparry of lhe Premlses by Tanant No
changes, rnodiflcations or addltlons lo thls Lease shall be effectiw, orolhenrvlBe blndlng upon [n pailies,
unless ln wltlng and signed by both Landlord ard Tenant.
14,4 Landbrd'r Repmrontatbm. Tenant acknorMgos that ndther Landlord nor any of lts
agents has mde any re{rseentatlons or wananths, expreEs or impli#, respecling the Romlsee or any
dher part cf tre Proparty w?rich ana not elgrassly set forh ln ll[s Lsas€. Ienant further rcknouledges
that nefther l€ndbd rur any of ib agents has mada any rspres€nlatlons o' rvamnlbs, exFress (r
lmplied, as to (l) rrfiotrcf he Pramis€s may bo umd fur Tenant's htendcd uss und6r exl$ng Laws, c (ii)
the sultablllty of ths Premhes for lhe con&rct d Tenanfs bualnoe r the fl[less d he Prcmlses fs a
parlloular pttrpose, or (iil) the exact equare footage of the Premlses, and thal Tcnant relbs sdely upon its
orvn lrwactkplloffi wtlh r€spoct to sucfi mattors. Tenant expressly waives any and all dalms for damage
by rcason of any statemenl, representation, waranty, promlse or dher agroement of Landlord or lts
agenb, if any, not contalned h thls Lease or ln any Exhibit attadted h€rsto.
14.5 t"stdlord Exculpntlon. lt is orpressly undeetood and agreed that nohrltlrstandlng
anylhllg ln thls.Loase to ttr contrarY, and nohrlthstrandirU any appllcabb Laws to the contrary, lhe
liaglty d l-andlqd and any recourse by Tenant agalnst Landlord shallbe llmlted sdely and axclusivdy to
an amount which ls equal to the lnteraet of Landlord ln lhe Bullding, and rplther Landlord nor any own€r,
stockholder, dlr6ctor, offiosr, m€mb6r or parlner of Landlord shall have any personal lhbIity therefur, and
Tenant hercby axpressly walvee and rdeas€s euch personal llablllty ot behalf d ltsef and all Peraons
daimlng by, throgh or utder TenanL
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lN WTNESS WHEREOF, Landlord and Tenant have executed thls Lease as of the respective
dates belor set forth with the intent to be legally bound thereby as of he Effeotive Date first above s€t
turth.
LANDLORD:
HEUYLETT+ACKARD GOiiPANY, A
Delaware corporatlon
Dated:Jth€ /7 ,,0,'u By:
Name:
Tite:/Y5/cs/f/d,fr'J
TENANT:
SYKES ENTERPRISES, INCORPORATED
a Florida corporaUon
Dated:Ju"rE t7 201 5 By:
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TiUe:Vice Presldent
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lN WITI{ESS WHEREOF, tandlord and Tenant have execubd thle Lease as of he respsc-Uve
dates bebrv set forh wlth the lnbnt b be legslly bourd trreby ae d the Etredlve Date ftrst above set
foflh.
LAT.IDLORD:
HEWLETT.PACKARD COi'PANY, A
Ddaware corporalion
Dated:2015 By:
Name:
TiUe:
TEi.IANT:
SYKES EIITERPRISES, INCORPORAIED
a Florida oorporalbn
Dated:2015 By:
Name:
Tltle:
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EXHlHtr"C"
FORM OF ESTOPPEL CERTIFICATE
20-
Ladies and Genllemen:
Refererrce ls mads to that certaln Leasa, dated as of 20- betw€n Hewlett-Pad€rd
Company ("Landlord"), and the unders'gned (hereh referred to as the "Lsase"), A copy of the Lease
[and all amendment theretol is[are] atlaohed hereto as Erhiblt A. At the request of Landlord in
connection wlth I State reasons for requesl for estoppd certificato_],
lhe undersigned hereby certilles to Landlord and to [*_*__State names of olher parties
requir;rrg certitication- I and each of yorr respective successors and assigrs as follows:
1. The underslgned is the tenant undor the Lease.
2, The Lease is in full force and effecl and has not been amanded, modified, supplemenled
or superaeded except as indlcatod in Erhlblt A,
3. There is no defense, offset, clainr or counterclaim by or in favor of the undersigned
against Landlord under the Lease or against the obligatons of the undersigned under ttp Leasq except
as may be indicated on Exhlbit B herelo. The undersigned has no renevval, extenglon or oxpansbn
option, no right of flrst offer or right of lirst refusal ard no other sirnilar right lo rBnew or extend lhe term of
the Lease or expand the property demlsed lhereurder excepl as may be expressly set forth irr the Lease.
4. The undelsigned ie not aware of any default now erlstlng of the undersigned or of
Landlord under the Lsase, nor of any event whlch wih notic,e or the passago of time or both would
constitute a default of the underslgned or of Landlord under the Lease, except aE nray be lndlcated on
Exhlblt B hereto.
5. The undersigned has no! received notice of a prior transfor, assignment, hlpothecation or
pledge by Landlord of any of Landlord's interest in the Lease, except as set forth in Exhlbft A-
6. The monthly rent due under the Lease is $and has been paid throtgh
and all additional rent duo and payable under the Lease has been paid lhrough
7. The term of the Lease commenced on and expires on
unless sooner terminated or unless extended pursuant to the provlsions of the
performed all work requlred by tho Lease for the undersigned's lnltial occupancy oflre dernised premises.
Lease.
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8. The undersigned has deposited the sum of $- wilh Landlord as security for
suci daposlt has been
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the peformance of lts oHigatlons as tenant under the Lease, and no porllon of
applled by Landord to any obllgation under the Lease.
9. There is no free or reduced r6nt pariod
contribrrtion, except as may be expressly set forth in the
pendhg, nor is Tenant onlilled to any Landlord's
Leaee.
The above certlficalions are mads to Landlord and finsert reference to lender, purchaser, or other
appropriate partyl knowlng that Landlord and Londer will rely lhereon in i.rccep(lng an assignment of the
Lease.
Very truly yours,
By:
Name:
TiUe:
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EXHIBIT "D':
TNITIAL RULES AND REGULATIONS
1. The sldewalks, entry passagEs, elevators (f lnstralled in the Building) and common
slakways shall not be obstructed by Tenant or any agen( gmdoyee, Bervants, contractor, subcontraclor,
gruest, vlsitrcr, Tenanl, invitee, sublessee. suooessor or assign of Tenant (each a "Teoent Party";
collectively, "Tenant Partios") or used for any other purpose than for irrgness and ggress ta and from tho
Premises. Tenant will not plaoo, or psrmlt any Tenant Party to place, ln lhe Buildhtg corrldors or public
stairways arry waste paper, dust garbage, tsash, reftrso or other thlng.
2. Tenant shall not uso, or permit any Tenant Parly to use, the washroom plumbing fixtureE
ard other water apparafus for any purpose othsr than thoee for whictr thoy wers constructed, and no
sweeplngs, rubbieh, Ege, aghes, feminine hlgione matetials or other subslances ehall be lhrown thereln.
The expense ol any olean up, damage or repairs resultlng by misuse <r blockage by Tenant or any
Tenant Party shall be bome by Tenant.
3. 'fqlant shall permit windorrr cleaners lo dean, durlng Nomal Buslness Hours, the
exterior surfaces of the whdotrs of the Premlses and the interior surfaces of the wirdows of lhe
Premises.
4. No anirnds (other than seeing eyedogEl shall be kspl ln or about the Propsrty by Tenanl
nor ehall Tenant operato or permit to be operated any muslcal or sound-producing inslrumsnls or devl@
or make (or, inslde tha Premlses only, permlt to be made) any noise inslde or oulsido the Premises wtrich
may be heard outside thE Premlses.
5. Tenant shall rrot pcrmit tho use of lhe Premises for residential purpos€s, or for the
slorage of personal effects rr articles olhsr than those ra;uired for business purposos.
6. All persons ontering and leaving the Building at any time other than dudng Normal
Businoss Hours shall register in the books whioh may be kept by Larrllord at or neer the nigfrt entmnce
and Landlord wlll have the rlght to prorent any Person from entering ttre Building or the Property unless
provided wlth a key or aoeess card to the pomlses to whbh such Pergon seeks entrance and the cunent
form of photo ldentiflcatlon (if any) lssued by Landlord to the employees of the Building tenanls. Any
uneecorled parsons farnd in the Buildlng at such tlmes withoul such keys and identlfication will be subject
to the surveillancs of the employees and agonts ol Landlord.
7.
Premises.
Tenanl shall not keep or permit to be kept any dangerous or exploelve materials in the
8. No spaca heatlng devtces of any kind shall be kepl or used in the Premis€s, exc€pl as
may be approved in wrltlng by Landlord.
9. Tenant shall not cook in the Premlees excepl for the use of coffee makers and food
warmed up in microwavee for consumplion by ernployees or guests of Tenan( and Tenant shall ensure
that odors do not emanate hom the Premises. Tenant shall not lnstall or permit lhe lnstallatlon or use of
any machlne dlspenslng goods for sale ln the Premises without tho prior writtsn appoval of Landlord
except for vendlng macfiines pro/ded by Tenant br the excluslve use of ils employeea
10. Tenant shall not brlng in or tiake out, posltion, construct, hstall or move any safe,
buslness mactine or other heavy office equlpment without flrst ooordhating lhe same wtth Landlord, All
damage done to the Bulldlng by Tenanfs moving or using any such heavy qulpment or other office
oqulpment or fumiture (lncluding sbt macfrines) shall be repalred at the sole expsme of Tenant. The
moving of all heavy equipment or other offlce equlpmonl or fumlture shall ocrur only at times consentedto by Landlord and the persons employed lo move the same in and out of ttre Buldlng must be
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reasonably acceptable to Landlord. Safes and other heavy offfce equipment (includirrg slol machinee) wlll
be mored throgrh the halls and corridors only upon steel bearlng plates or olher lransportaUon devlces
acc€ptabls to Landlord. No fre[hl or bulky matter of any description will be receivod anto he Bullding or
carrled in the elevators (lf installed in lhe Building) except during hours reasonably approved by Landlord.
11. Tenant shall give Landlord prompt r{ritten or email notlce of any requests for
malntenance or repair of items lhat are Landlord's obl@atlona, accident to or any dafecl in the plumblng,
heatlng, air-condltloning, vontllating, mechanlcal or dectrlqal apparalus or any other part of the Building of
whlch Tenanl obtains actual knorledge.
12. The parking of autornobiles shall be subject to the regulations of Landlord, which
rcgulations shall be deliverod to Tenant ln writing. Landlord shall nol, be rosponsible for damage to or
theft of any cer, its accessorios or conlgnts.
13. Tenant shall not maft, drill into or ifl any way deface the walls, celllngo, parlitions, floors
or other perts of lhe Premises or Bulldlng, except for alterations to the Premises permilted under the
terms of Tenant s Lease and lnstalled ln accordance with the terms of Tenanl's Lease.
14. Except with the prlor wrltten consent of Landlord (whlch consenl shall not be
unreasonably withheld, condltloned or delayed wllh respect to "touch-try cleaning' underlaken by Tenant
during Normal Business Hours only), Tenant shall not use or ertgage any Person or Persons oths lhan
the janltor or ianltoial contractor of Landlord for lhe purpose of any regular cteanlng of the Premlses;
provHed lhat the foregolng ehall not resutt ln any reduction of Building Ofierating Expenses payable by
Tenant under the Lease.
15. lf Tenant dealres any alectrlcal or communlcations wring, Landlord reaervss the righl to
dlrect qualified persons as to where and how the wlres 8re to be inlroduced (provided, howover, that such
dkeclion shall be commercially reasonable), and without such directions no borings or cutting for wires
shall take plaoe.
16. Tenant shall not place or cause to be placed any additional locks upon any doons ol the
Premises wtthout the apprcval of Landlod and subiect to any commercially reasonable conditions
lmposed by Landlord. Landlord shall not unreasonably wlthhotd its approval of suct additional locks,
provided th6t Tonant shall provlde Landlord with duplicale keys to any such additlonal lock installsd by
Tenanl after Landlord hae granted its approval. Addithnal kels may be obtained from Landlord at the
cost of lenant.
17. Tenant shall be entltled to have lts name shown upon a directory board in the Bulldhrg as
provlded in the Leate.
18. Tenant shall not inte.rfere with or obstruct any perimeter heaUng, atr-conditioning or
ventllating units.
19. Tenant shall not conducl (or permll any Tenant Party) any carwassirg in the Bulldlng.
20. Tenant shall take reasonabla cars of the rugs and drapes (lf any) in the Prernises and
shall anange for the carrying-out of regular spot cl€aning and shampocing ol carpotB and dry cleanlng of
drapes (whict are vislble from the extodor of the Premlses) in a rnanns reasonably aoceptable to
Landlord.
21. Landlord may periodlcally dose lanes, driveways and passages for the purpose of
preserrring Landlord's rights over such lanes. driveways and passages
22. Tenant shall nol placo any slgn, advertisemonl, notlce or other display on any part d the
exterior of the Building or Prembes without the prior mltlen consent of Landbd, which consent rnay be
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arbitrarily wilhheld by Landlord. Subject to any slgnage rlghts thal rnay exisl under Tenant's Lease,
Tenanl, upon request of.Landlord, shall promplly remove any sign, edvertisement, notice or other display
which Tcnant has placed or permitted to be placed whlch, ln ths reasonablo oplnlon of Landlord. is
obJec,tionable, and lf Tenant shall fail to do so, l*andlod may remove the sarn€ at the expense of Tenanl.
23. Landlord shall have the right to make such other and further reasonable rules and
rogulations and tb modifo the same ae in its Mgment may ftom time to time be needful for the sahly,
care, cleanllnsss and appearance of the Premlses or any other part of the Property and for lhe
preservathn of good ord6r lher6in, and tha same shall be kept and observed by Tenant and each Tenant
Party. Landlord al$o has the rlght to suspend or cancel any or all of the rules and regulaUons herein set
out or hereafter estaHlshed.
24. ln tho event of a conflict between th€ terms and conditions of lhe rules and regulalions
(including without linritation any subsequent modifrcallons {hereto) and the terms of lhe Leaso, the terms
ofthe Leas6 shall govorn and prevall.
25. Smoking is not permltted ln the Premises end lhe Building and is only allowsd in an
exlerior area to be determin€d by Landlord. Tenant shall kaep such smoklng area clean and tidy and all
smoking lnatedals shall be used and disposed of in an apptopdate manner.
Parkino Rulqg
Parkino and Drlv-iQo on Slte
All Bolse City and ldaho traffic Laws apply as posted or marked whilo on the Boise Site. Observance of
pedestrian crosswalks is mandatory and pedestrians preparing to cross the site roadways shall have the
right-of-way.
The followlng are parking lot etlguetts and precautions to take to saleguard yourself and others while
driving on sile ard in the pa*lng lots:r Pa* only in designated spaces. Do not park in no parkhg zones.. Vehhles must observe direction arno\rs while in lhe parking lols and musl park facing lnto
the designed marked parking stots.. Spot selection: Cenler your vehide in its parking space and pull all the way inlo space.
Make sure the spot is adequate for your car size"r Walch for drlvers backing out of blind apots.. Yield to bicyclisF and pedestrhns.o Observe the @al aspocts of driving in the parking lot; ie Posted speed limits, stop signs
and yleld signs.. Observe all temporary special hazard or event signage.. Use extra caution when driving at night or during adverseweather condlUons.
' Rsport Parklng lot concerns or safety issues.
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0060t052.2
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EXH|E|T:.F"
IENANT ALTERANOil CONSTRUCTION RULES
The follorving rules shall be implemenEd for lhe construction of any authoized Tenant
alterations, modifications or improvements (e,ollactivcly, "Alteratbns'). This process shall also
apply to ongoing lmprovements that Tenant determin€s appropriale.
Terpnt slull lrave the right to obtaln bids aod contract for the completlon d the Tenant
Allerations. Tenant shall have the right to hlre its own proJecUconstruction manager to overses
the oonstruction procgss, and to let and hold the conskuclion contracts with Landlord's
reasonable approval ol nranager.
Tenant will have the rlght to competitively bid ttre Tenanl Allerations construclion with soveral
mutudly acceptable qualiftad contractors and to select the contractor lo construct the Tenant
Alteratlons wlth Landlord's reasonable pre.approval of qualified biddsrs.
Landlord shall ba entited lo reasonablc apprwal rlghls on all contaclors, subcontractors,
englnears and projecUconstruction ,nenagers. ln addltlon, Landlord shall be permlted to provlde
a reasonable level of overeigttt (al lte 6oie cogt) lo onsure code compliance, shuctural integrity of
improvements and lmpact on other tenanG in the Bulldlng.
Landiord shall approve (or prwfiie speclflc written commeils rsgarding items not approved)
Tenant's plans and specilisatlons for the conslflJclbn of the Tenant Alleralions within len (10)
business days of recelpt. Any such approval shall not bo unreasonably withheld or conditionsd.
All conskuction matarials and methods nrust m6et or exceed the exisllng standad for lhe
Bulldlng and Landlord's reasonable approm!. All constructbn adivities, lncluding to but not
limlted to. access. materlal storage and handling. elevator usage, control of dust and debrls,
security, minimizing disruptions lo other occupanlB of the Butlding and lhe Property must be done
hr sccordanco with Landlord's requirements.
There will be no subcontractors specilied by Lanrllord unless the Landlord is willing to pay for any
inoreased cost. Landlord to rerrlerr and glve pre-approvaf of qualified mafor subcontractors
bidding the rnork.
Tenant shall use a contractor for its work hat has been approved the Landtord prior to
cornmEncement of any work, such approval nol to be unreasonably wlthheld, conditbned or
<tela!,ed. Tenanfs contractor shell be licansd, bondod, fully insural, and approved to operate in
th€ Slate of ldaho.
Landlord shall provide all utilities durlng the construction d the Tenant Alterations (i.e., dectrical,
HVAC, etc.) at no cost to Tenant with reasonable conetralnls lo prevent misuse.
No construction managsmant, coordination fes or other "mark ups" on Tenant Alterations shall be
payable to the Landlqd.
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E)CrrBrT B - OFFSETS, DEFAULTS
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SYKES ENIERPRISES ESTOPPEL CERTIFICATE
Page,l ofS
IIEWL\s3E29\1354588.2
T
EXHIBIT C - SECURITY DEPOSII, IF AFry
SYKES ENIERPRISES ESTOPPEL CERTIFICATE
Page 5 of5
HEWLU3929\1354588.2
Request for One Time Exemptlon from Competltion
from
ldaho Divislon of Purchaslng (DOP)
E-mall Completed Request Form to: @
IDAPA 38,05,U.A2.rc provides thot the admlnbtmtor moy exempt on ocquisition from competltive procurement lf the
odmlnlstrotor determlnes that blddlng b lmpmctlcol, dlsodvontogeous or unreosonoble under the clrcumstances, Emmples lnclude,
but ore not llmlkd to: speclol morket conditlons; property requiring speciol controcting proedures due to uniqueness; ond seruices
fur which compelitive solicftotion procedures ore impractlcal.
Background and Justlficatlon (ottoch odditionol sheets os neededl:
See attached.
Agercy @fiffcatlon: The informotion provlded obove ls true ond occurate to the best of my knowledge, ond supports the need for a
direct procurement ol the descrlbed goods or serules, ln the best lnterest of the Stote:
Age ncy Represe ntotive (sig notu re) :as-LOIS
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Approved
Relected
@oP.
DOP Admlnlstrator Slgnature:
DOP Admlnistrator Prlnted Name:
Agency Purchaslng Representatlve (Name):Rlc Johnston
E-maiUPhone:Ric. iohnston @adm.idaho.gov I 208-332-1937
Name ofAgency:Divlsion of Public Works/Facilltles Services
Request for the Purchase oft Preventative Maintenance - West Chlnden Campus
Cost (attach quote):Five Hundred Thousand (See attached Labor Cost)
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07-01-16
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| r'1 eaattlonal conditlons apply to thls approval.
,rr", 4-&b-/Y
Background and Justiflcatlon
The Division of Public Works, Facilitles Services Section (Facilities) requests an exemption from competltive
bidding for preventative malntenance and related property for the West Chinden Campus. The Department of
Admlnlstratlon took possesslon of the campus under a lease from the ldaho State Bullding Authority on
December 22,2018. Prior to taking possession, the Department made arrangements for the malntenance and
related services to be transitloned over a one year period through its sublease to the former owner, HP
lnc. Desplte this planning, the transition has not proceeded as anticipated. Facllities desires to directly contract
with the HP lnc. contractor. The contractor wlll use contractor staff who had been managing the Campus prior
to HP lnc.'s sale of the Campus.
Competitive bidding is impractical, disadvantageous and unreasonable under the circumstances of the West
Chinden Campus facility maintenance program. Any contractor not employing the hlstorical maintenance staff
does not know the Campus' complex systems and maintenance hlstory and is in no better positlon to manage
the Campus than the current Facllltles staff. Only a direct contract with the legacy maintenance provlder can
provide a transition to fu!!facilities maintenance through state personnel, outside vendors, or a combinatlon of
the two. A direct contract will allow Facilities to get up to speed on these complicated Campus' systems and the
past maintenance practices. During the initial portion of the contract, the Department will consider whether to
include addltional staff authorization in lts next fiscal year budget or to contract some or all of the services
through routlne sollcltation processes. As it monitors the work of the legacy malntenance staff, Facllitles wlll
also galn necessary insight into the qualifications for staff or subsequent contractors and make the hiring or
contracting process at the end of this contract more efficient and productive.
Labor Cost:
Labor Category FTE Hourly
Rate
Overtlme
iate Annual Regular
Hrs
Overtlme
Hours
2080 hrs.50 hrs. OT
Facilitles Supervisor 1 s3.83 70,73 S1u,960.40 s3,536.50
HVAC Mechanic 1 55.98 73.s6 s116.438.40 s3,678.00
General Malntenance Worker 1 32.66 42.97 s57,932.80 S2,14s.so
General Malntenance Worker 1 32.66 42.9t s67,932.80 $2,145.50
General Maintenance Worker I 32.56 42.9L Ssz,ggz.ao S2,145.50
subtotal Labor 5 S4s2,2os.zo S13,6s1.00
Other Dlrect Cost/Servlces
Other Dlrect Cost/SeMces Pass Through Mark-up LO%
Other Cost
Management Fee
one-time start-up costs t7,725.00 s17,725.00
TOTAL
07-01-16
s463.579.20