TOWER PLACE OFFICE LEASE
by and between
TOWER PLACE, L.P.
a Georgia Limited Partnership
and
RMS TITANIC, INC
a Florida corporation
March 27, 2000
Atlanta, Georgia
<PAGE>
TABLE OF CONTENTS
ARTICLE I FUNDAMENTAL PROVISIONS, EXHIBITS AND DEFINITIONS...................4
1.1 FUNDAMENTAL PROVISIONS.............................................4
1.2 EXHIBITS...........................................................5
1.3 DEFINITIONS........................................................5
ARTICLE II GRANT AND TERM.....................................................7
2.1 PREMISES...........................................................7
2.2 TERM...............................................................7
ARTICLE III RENT..............................................................7
3.1 BASE RENTAL........................................................7
3.2 BASE RENTAL ADJUSTMENT.............................................7
3.3 OPERATING EXPENSES INCREASE........................................7
3.4 GENERAL PROVISIONS REGARDING RENT..................................8
3.5 INITIAL INSTALLMENT................................................9
3.6 SECURITY DEPOSIT...................................................9
3.7 LANDLORD'S SECURITY INTEREST.......................................9
ARTICLE IV RIGHTS AND DUTIES DURING LEASE TERM................................9
4.1 PREPARATION OF THE PREMISES........................................9
4.2 SERVICES..........................................................10
4.3 LIABILITY OF LANDLORD.............................................10
4.4 REPAIRS BY LANDLORD...............................................10
4.5 RIGHTS OF LANDLORD TO ENTER PREMISES..............................10
4.6 AGREEMENTS OF TENANT..............................................11
4.7 SIGNS.............................................................11
4.8 BUILDING NAME.....................................................12
4.9 HAZARDOUS MATERIALS...............................................12
4.10 INSURANCE.........................................................12
4.11 LIENS.............................................................13
ARTICLE V ASSIGNMENT AND SUBLETTING..........................................13
5.1 ASSIGNMENT AND SUBLETTING.........................................13
ARTICLE VI DEFAULT AND REMEDIES..............................................14
6.1 EVENTS OF DEFAULT.................................................14
6.2 REMEDIES..........................................................14
ARTICLE VII DESTRUCTION OR DAMAGE; CONDEMNATION.............................15
7.1 DESTRUCTION OF OR DAMAGE TO PREMISES..............................15
7.2 EMINENT DOMAIN....................................................15
7.3 DETERMINATION OF TIME REQUIRED TO REBUILD.........................15
7.4 PARTIAL DESTRUCTION OR TAKING.....................................16
ARTICLE VIII ADDITIONAL PROVISIONS...........................................16
8.1 ADDRESSES - NOTICES...............................................16
8.2 MANAGER...........................................................17
8.3 SURRENDER OF PREMISES.............................................17
8.4 HOLDING OVER......................................................17
8.5 BROKER............................................................17
8.6 WAIVER OF RIGHTS..................................................17
8.7 WAIVER OF HOMESTEAD AND EXEMPTION; BANKRUPTCY OF TENANT...........17
8.8 NO ESTATE IN LAND; RELATIONSHIP OF THE PARTIES....................18
8.9 RECORDING.........................................................18
8.10 GOVERNMENTAL REGULATIONS..........................................18
8.11 SUBORDINATION AND ATTORNMENT:.....................................19
8.12 ESTOPPEL CERTIFICATION............................................19
8.13 SEVERABILITY......................................................19
8.14 CAPTIONS..........................................................20
8.15 SUCCESSORS AND ASSIGNS............................................20
8.16 SALE OF BUILDING..................................................20
8.17 TRANSFER OF TENANTS...............................................20
8.18 GOVERNING LAW.....................................................20
8.19 TIME IS OF ESSENCE................................................20
8.20 LIMITATION OF LIABILITY...........................................20
8.21 EXECUTION.........................................................20
8.22 MULTIPLE TENANTS..................................................20
8.23 FORCE MAJEURE.....................................................20
8.24 QUIET ENJOYMENT...................................................20
8.25 ATTORNEYS' FEES...................................................20
8.26 ALTERATIONS IN COMPOSITION OF COMMON AREAS........................20
8.27 PARKING...........................................................21
8.28 SPECIAL STIPULATIONS..............................................21
8.29 AUTHORIZATION.....................................................21
<PAGE>
SPECIAL STIPULATION..........................................................23
EXHIBIT "A"..................................................................24
EXHIBIT "B"..................................................................25
EXHIBIT "C"..................................................................26
EXHIBIT "D"..................................................................27
EXHIBIT "E"..................................................................28
EXHIBIT "F"..................................................................29
EXHIBIT "G"..................................................................31
<PAGE>
TOWER PLACE OFFICE LEASE
THIS TOWER PLACE OFFICE LEASE (this "Lease") is made as of this 27 day of
March, 2000, by and between TOWER PLACE, L.P. ,a Georgia Limited
Partnership (herein called "Landlord"), and RMS Titanic, Inc., a Florida
Corporation (herein called "Tenant").
ARTICLE I
FUNDAMENTAL PROVISIONS. EXHIBITS AND DEFINITIONS
1.1 FUNDAMENTAL PROVISIONS: The following is a summary of certain
fundamental provisions of the Lease:
(a) Landlord: Tower Place, L.P., a Georgia Limited Partnership;
(b) Tenant: RMS Titantic, Inc., a Florida Corporation
(c) Premises: Suite 1225
(d) Building: 3340 Peachtree Road N.E., Tower Place, Atlanta, Georgia;
(e) Stipulated Square Footage (Premises): Approximately 2,759 rentable
square feet;
(f) Stipulated Square Footage (Building): 609,334 rentable square feet;
(g) Base Rental: Subject to adjustment in accordance with the provisions
of Section 3.2 hereof, Sixty four thousand eight hundred and thirty
six, 56/100 DOLLARS ($64,836.56) per annum, payable monthly in advance
in equal installments of Five thousand four hundred and three dollars,
04/100 DOLLARS ($5,403.04) per month;
(h) Initial Installment: Five thousand four hundred and three dollars,
04/100 DOLLARS ($5,403.04);
(i) Security Deposit: Five thousand four hundred and three dollars, 04/100
DOLLARS ($5,403.04);
(j) Base Year: Calendar year 2000;
(k) Tenant's Share: .45 percent (.45%);
(l) Anticipated Commencement Date: April 18, 2000; the actual Commencement
Date shall be determined in accordance with the provisions of Section
2.2 and confirmed in the Commencement Date Agreement;
(m) Expiration Date: Five (5) years and (0) months after the Commencement
Date (unless the Commencement Date occurs on other than the first day
of a calendar month, in which case the Expiration Date shall be the
last day of the calendar month in which foregoing date occurs);
(n) Tenant's Address Prior to Commencement Date: for Notices: RMS
Titantic, Inc. 17 Battery Place Suite 203 New York, NY 10004
Following Commencement Date:
Tower Place
Suite 1225
3340 Peachtree Road, NE
Atlanta, Georgia 30326
Attn: Arnie Geller
(0) Manager: Regent Partners, Inc., a Georgia Corporation;
(p) Landlord's Broker: Regent Partners, Inc., a Georgia Corporation;
(q) Tenant's Broker: Frank M. Darby Company, a Georgia Corporation
<PAGE>
(r) Maximum Number of Parking Spaces Available to Tenant as of the
Commencement Date: Seven (7).
It is understood that the foregoing is intended as a summary of certain portions
of the Lease and is intended for convenience only. If there is a conflict
between the above summary and any provisions of this Lease hereafter set forth,
the latter shall govern and control.
1.2 EXHIBITS: The following exhibits are attached to this Lease, are by
this reference incorporated into the Lease and made a part hereof and are to be
construed as part of this Lease:
Special Stipulations
EXHIBIT "A" - Floor Plan(s) of Premises;
EXHIBIT "B" - Legal Description - Tower Place Complex;
EXHIBIT "C" - Commencement Date Agreement (form);
EXHIBIT "D" - Operating Expenses;
EXHIBIT "E" - Work Schedule;
EXHIBIT "F" - Rules and Regulations; and
EXHIBIT "G" - Estoppel Certificate
1.3 DEFINITIONS: The following terms, as defined below, are used
generally in this Lease, in addition to other terms defined herein:
(a) Base Rental means the annual rental provided in Section 1.1 (g)
above which is payable pursuant to Section 3.1 and as same may be adjusted
in accordance with the provisions of Section 3.2;
(b) Base Year means the calendar year stipulated in Section 1. 1 (j);
(c) Building means the 29-story office building located in the Tower
Place Complex and having a street address of 3340 Peachtree Road N.E.,
Atlanta, Georgia, together with any additions, replacements or alterations
to same;
(d) Commencement Date means the date on which the Lease Term begins as
determined in accordance with the provisions of Section 2.2 and as
memorialized by Landlord and Tenant in the Commencement Date Agreement. The
Anticipated Commencement Date is as set forth in Section 1.1(1) above;
(e) Commencement Date Agreement means the agreement to be executed by
Landlord and Tenant to memorialize the Commencement Date. The Commencement
Date Agreement shall be in the form attached as Exhibit "C", with the
blanks appearing thereon completed in accordance with the provisions
hereof;
(f) Common Area or Common Areas means all areas, whether improved or
unimproved, within the exterior boundaries of the Tower Place Complex which
are now or hereafter made available for the nonexclusive use, convenience
and benefit of Landlord and Tenant and other tenants of the Tower Place
Complex, their employees, agents, customers, invitees and licensees,
including, without limiting the generality of the foregoing, malls,
walkways, driveways, curbs, gutters, sidewalks, corridors, loading zones,
service areas, signs, courts, paving, lighting and landscaped and planted
areas. The meaning of "Common Area" or "Common Areas" may be expanded,
contracted or otherwise altered in accordance with the provisions of
Section 8.26;
(h) Estimated Operating Expense Increase means Landlord's estimate of
(a) the amount by which the Operating Expenses for an Expense Increase Year
will be in excess of the Operating Expense Base multiplied by (b) Tenant's
Share;
(i) Estimated Operating Statement means a statement rendered to Tenant
setting forth: (A) Landlord's reasonable estimate of the projected
Operating Expenses for the then-current Expense Increase Year, (B) a
computation of the Estimated Operating Expense Increase due for the
then-current Expense Increase Year, (C) a computation of the monthly
Estimated Operating Expense Increase installments to be paid by Tenant
pursuant to the Estimated Operating Statement, being one-twelfth (1/12) of
the amount determined pursuant to clause (B) above, and (D) a computation
of the amount due Landlord, or credit due Tenant, in respect of the lapsed
months of the then-current Expense Increase Year;
(j) Expense Increase Year means each calendar year, commencing with
the calendar year following the Base Year, falling, in whole or in part,
within the Lease Term;
(k) Expiration Date means the date provided or determined as set forth
in Section l.l(m) above;
(1) Initial Installment means the amount stipulated in Section l.l(h),
equal to one monthly installment of the initial Base Rental, which has been
paid by Tenant to Landlord under the provisions of Section 3.5;
<PAGE>
(m) Landlord's Broker means the entity designated in Section 1. l(p);
(n) Landlord's Mortgage means any or all mortgages, deeds to secure
debt, deeds of trust or other instruments in the nature thereof which may
now or hereafter affect or encumber Landlord's title to the Tower Place
Complex, the Building or the Premises, and all modifications, renewals,
consolidations, extensions or replacements thereof;
(0) Lease Term means that period of time beginning on the Commencement
Date and ending on the Expiration Date, as same may be extended or renewed
in accordance with any renewal or extension option expressly provided by
this Lease;
(p) Manager means any entity appointed by Landlord to manage the
Building and/or perform all or certain of Landlord's obligations under this
Lease. The Manager as of the date hereof is stated in Section 1.1 (0);
(q) Operating Expense Base means, subject to Section 3.3(d) hereof,
Operating Expenses for the Building for the Base Year;
(r) Operating Expense Increase means the payments to be made by Tenant
to Landlord in the amounts, at the times and in the manner provided for by
Section 3.3;
(s) Operating Expenses are defined in Exhibit "D", which is attached
hereto, and are subject to Section 3.3(d)hereof;
(t) Operating Statement means a statement setting forth (1) the
Operating Expenses for an Expense Increase Year, (2) a computation of the
total Operating Expense Increase payable by Tenant for such Expense
Increase Year, (3) an accounting for Estimated Operating Expense Increase
payments, if any, made during such Expense Increase Year and (4) the amount
of Operating Expense Increase then payable to Landlord, or the credit in
respect thereof to which Tenant is entitled, for such Expense Increase
Year, taking into account (with respect to any such credit) any increase in
Estimated Operating Expense Increase payments due Landlord pursuant to any
Estimated Operating Statement also rendered with respect to the
then-current Expense Increase Year;
(v) Premises means that space in the Building described in Section
l.l(c) and more particularly identified by diagonal lines or shaded area on
the floor plan(s) attached as Exhibit "A" to this Lease;
(w) Rules and Regulations mean the agreements of Tenant concerning the
operation and/or use of the Building and/or the Tower Place Complex
contained in the attached Exhibit "F", as same may be modified or replaced
from time to time by Landlord in its sole, but reasonable, discretion;
(x) Security Deposit means the amount stipulated in Section 1. l(i),
which sum has been deposited by Tenant with Landlord under the provisions
of Section 3.6;
(y) Tenant's Broker means the entity, if any, designated in
Section 1.1 (q);
(z) Tenant's Share means that number, stated as a percentage,
determined by dividing the number of rentable square feet in the Premises
(which, for purposes of this provision, Landlord and Tenant stipulate to be as
set forth in Section 1.1 (e) as of the date hereof) by the number of rentable
square feet in the Building (which, for purposes of this provision, Landlord and
Tenant stipulate to be as set forth in Section l.l(f) as of the date hereof).
Therefore, Tenant's Share shall be as stated in Section 1. l(k) as of the date
hereof;
(aa) Total Rent means, collectively, the Base Rental and the Operating
Expense Increase;
(bb) Tower Place Complex means that certain mixed-use development
situated on the property more particularly described in Exhibit "B"
attached hereto, which development includes, without limitation, a
twenty-nine (29)-story office building, a five (5)-story office building,
retail facilities, a six (6)-story hotel, surface and deck parking and
associated plazas, plazas, sidewalks and other Common Areas, facilities and
improvements, as same may be altered, enlarged or reconfigured from time to
time. The Building is a portion of the Tower Place Complex; and
(cc) Work Schedule means Exhibit "E" which is attached to this Lease.
ARTICLE II
GRANT AND TERM
2.1 PREMISES: Landlord, for and in consideration of the rents,
covenants, agreements and stipulations herein contained to be paid, kept and
performed by Tenant, has leased and rented, and by these presents leases and
rents the Premises to Tenant, and Tenant hereby leases the Premises from
Landlord upon all the terms and conditions hereof. No easement for light or air
is included in the Premises or given by this Lease. The Premises shall be used
for the purpose of general office use and for no other purposes.
2.2 TERM: Tenant takes and accepts the Premises from Landlord upon the
terms and conditions herein contained, to have and to hold the same for the
Lease Term, unless this Lease terminates earlier. The Lease Term shall begin on
the Commencement Date, which shall be, subject to the provisions of the Work
Schedule, the earlier of the Anticipated Commencement Date or the date upon
which initial improvements to the Premises, if any, to be made by Landlord in
accordance with the Work Schedule have been substantially completed. To the
extent any improvements are to be made by Landlord in the Premises in accordance
with the Work Schedule, such improvements shall be deemed to be "substantially
completed" when Landlord, in its reasonable judgment and in consultation with
its architects and/or contractors, certifies to Tenant that (i) such
improvements have been substantially completed and (ii) any certificate of
occupancy necessary for Tenant's occupancy of the Premises in accordance with
the provisions of this Lease has been duly issued.
ARTICLE III
RENT
3.1 BASE RENTAL: Tenant covenants and agrees to pay to Landlord the
Base Rental stipulated in Section l.l(g), as same may be adjusted in accordance
with Section 3.2 below. The Base Rental (as so adjusted from time to time) shall
be payable monthly in advance in equal installments (initially as set out in
Section 1.1 (g), but as hereafter adjusted in accordance with Section 3.2) on
the first (1st) day of every calendar month during the Lease Term, prorated as
appropriate for partial months. If the Lease Term commences on other than the
first day of any calendar month, the first installment of Base Rental shall be a
prorated amount based upon the actual number of days in such month and shall be
due and payable on the Commencement Date.
3.2 BASE RENTAL ADJUSTMENT: The amount of the Base Rental shall be
increased as of January 1 of each calendar year of the Lease Term to equal the
initial Base Rental stated in Section 1. l(g) plus an amount equal to the
product obtained by multiplying (i) such initial Base Rental amount stated in
Section 1. 1(g) by (ii) the Percentage Increase determined as of the date of
adjustment; provided, however, that Base Rental (as previously adjusted) shall
never decrease by virtue of this Subsection. Landlord shall notify Tenant in
writing of the new annual Base Rental amount and the new monthly installment
amount thereof at least three (3) days prior to the date on which the increase
in Base Rental becomes effective or, if Landlord is not reasonably able to
determine such amounts by such time, promptly following the time when such
amounts can reasonably be determined. Tenant covenants and agrees to pay to
Landlord the adjusted Base Rental in equal monthly installments on the first day
of each and every month for the pertinent calendar year after notification of
the adjusted Base Rental from Landlord. Failure or inability of Landlord to
notify Tenant prior to the pertinent January 1 adjustment date, however, shall
not affect Tenant's obligation to pay Base Rental as adjusted for each and every
month of the relevant calendar year and, if Tenant has not been notified of the
adjusted amounts of Base RentaI prior to January 1 of the calendar year in
question, Tenant shall continue to pay Base Rental at the rate in effect prior
to the date of adjustment until notified of the new amounts, after which time
Tenant shall (x) make further payments of Base Rental thereafter arising as so
adjusted and (y) pay to Landlord in a lump sum any difference arising with
respect to Base Rental payments made by Tenant for the calendar year in question
prior to the date of Tenant's receipt of such notice. SEE SPECIAL STIPULATION
NO. 1.
3.3 OPERATING EXPENSE INCREASE:
(a) Tenant covenants and agrees to pay to Landlord, as
Operating Expense Increase for each Expense Increase Year during the Lease Term,
a sum computed by subtracting the Operating Expense Base from the Operating
Expenses shown on the Operating Statement for the Expense Increase Year in
question, and multiplying the result by Tenant's Share. Under no circumstances
shall Tenant be entitled to any refund of or credit against Operating Expenses
for any Expense Increase Year should Operating Expenses ever be less than the
Operating Expense Base. Within one hundred twenty (120) days after the
expiration of each Expense Increase Year, Landlord shall furnish Tenant with an
Operating Statement. The Operating Expense Increase shall, except as provided in
paragraph (b) of this Section 3.3, be due from Tenant thirty (30) days after the
rendering of the Operating Statement for such Expense Increase Year.
(b) Landlord may render an Estimated Operating Statement for
any Expense Increase Year. If and when so rendered from time to time, Tenant
shall pay to Landlord in advance on the first day of each calendar month the
monthly Estimated Operating Expense Increase installments provided for in such
Estimated Operating Statement, such payments to continue until another Estimated
Operating Statement is rendered. Upon the rendering of an Operating Statement
for any Expense Increase Year for which Estimated Operating Expense Increase
installments were paid by Tenant, Tenant shall, within thirty (30) days
thereafter, pay to Landlord the sum of (x) the excess, if any, of the Operating
Expense Increase due for such Expense Increase Year over the monthly Estimated
Operating Expense Increase installments paid by Tenant in respect of such
Expense Increase Year and (y) the excess, if any, of the Estimated Operating
Expense Increase installments due for the current Expense Increase Year, as
shown on the current Estimated Operating Statement, over the Estimated Operating
Expense Increase installments then being paid by Tenant multiplied by the number
of months which shall have elapsed, in whole or in part, since the commencement
of the current Expense Increase Year. If Tenant's Estimated Operating Expense
Increase installments for the prior or current Expense Increase Year shall
exceed the Operating Expense Increase due for the prior Expense Increase Year or
the Estimated Operating Expense Increase due for the current Expense Increase
Year, respectively, such excess shall first be credited against any amounts
shown due on the Operating Statement and the Estimated Operating Statement and
the balance, if any, shall be credited against the next succeeding installment
or installments of Operating Expense Increase or Estimated Operating Expense
Increase becoming due hereunder; provided, however, that if the Lease Term shall
expire or this Lease shall terminate prior to full application of such credit,
any balance due Tenant shall be refunded to Tenant by Landlord if Tenant is not
in default under this Lease (and, if Tenant is in default hereunder, such
balance shall be held as additional security for Tenant's performance, may be
applied by Landlord toward the cure of any such default and shall not be
refunded until any such default is completely cured by Tenant).
(c) Operating Expense Increase shall be prorated on a daily
basis for any Expense Increase Year not wholly failing within the Lease Term.
(d) Tenant acknowledges that certain Operating Expenses will
vary depending on overall occupancy levels in the Building. If the average
occupancy level of the Building was less than ninety-five percent (95%) of the
total rentable square footage of the Building during the Base Year or any
Expense Increase Year, the actual Operating Expenses for the Base Year or
Expense Increase Year in question, as applicable, shall be adjusted to equal
Landlord's reasonable estimate of Operating Expenses had ninety-five percent
(95%) of the total rentable square footage of the Building been occupied.
Landlord and Tenant further acknowledge that the Building is part of the larger
Tower Place Complex, and that certain of the costs of management, operation,
maintenance, repair and security of the Tower Place Complex from time to time
shall be allocated among and shared by two or more of the improvements in the
Tower Place Complex (including the Building). It is also understood that certain
<PAGE>
costs incurred with respect to various facilities surrounding the Building may,
from time to time, be allocated (if appropriate) entirely to the Building. The
determination of all such costs and their allocation shall be made by Landlord
in accordance with sound accounting principles. Accordingly, the term "Operating
Expenses", as used in this Lease with respect to the Building, shall from time
to time include some of the costs, expenses, and taxes enumerated in Exhibit "D"
to this Lease which were incurred with respect to and allocated to or shared by
the Building in accordance with the foregoing. Notwithstanding the foregoing or
anything else contained in this Lease to the contrary, Tenant understands and
agrees that its rights to use other portions of the Tower Place Complex of which
the Building is a part (including the Common Areas) are those available to the
general public and that this Lease does not grant to it additional rights of
use. Specifically, but without limitation, nothing in this Lease affords Tenant
any rights of parking within the Tower Place Complex except as may be expressly
provided in Section 8.27 hereof.
3.4 GENERAL PROVISIONS REGARDING RENT:
(a) The provisions of this Article concerning the payment of
Operating Expense Increase shall survive the expiration or earlier termination
of the Lease Term as to any and all sums due Landlord up to the date thereof,
including Operating Expense Increase due for the last Expense Increase Year, or
portion thereof, falling within the Lease Term, which sum shall be paid promptly
by Tenant in accordance with the terms of this Article III. Within one hundred
twenty (120) days following the expiration or earlier termination of the Lease
Term, Landlord shall render a final Operating Statement, certified by Landlord,
and Landlord and Tenant shall adjust the Operating Expense Increase payment or
credit due Landlord or Tenant, as the case may be, for the last Expense Increase
Year of the Lease Term, all in accordance with the foregoing provisions of
Section 3.3.
(b) It is understood and agreed that Tenant's payments of
Operating Expense Increase shall not be deemed payments of rental as that term
is construed in relation to governmental wage and price control or analogous
governmental actions affecting the amount of rental which Landlord may charge
Tenant. Notwithstanding the foregoing, in the event that such governmental
actions or controls prevent the application of all or any part of the provisions
of this Article III regarding the payment of Operating Expense Increase, Tenant
hereby agrees to pay as monthly rent hereunder the monthly Base Rental plus
one-twelfth (1/12) of the Operating Expense Increase which was due for the
Expense Increase Year preceding the year of the institution of such actions or
controls, but in no case to exceed the maximum rent permitted by such actions or
controls.
(c) Tenant covenants and agrees to be liable for and to pay in
a timely manner all taxes and assessments levied or assessed against personal
property, furniture and fixtures placed by Tenant in the Premises. Further, and
in addition to the Base Rental and Operating Expense Increase, Tenant shall
reimburse Landlord, within the thirty (30) days after written demand, for any
and all taxes payable by Landlord (other than net income taxes), whether or not
now customary or within the contemplation of the parties hereto, (i) upon,
measured by or reasonably attributable to the cost or value of Tenant's
equipment, furniture, fixtures, or personal property located in the Premises, or
any leasehold improvements made in or to the Premises by or for Tenant,
regardless of whether such improvements were constructed by Landlord or Tenant
and regardless of whether title to such improvements shall be in the name of
Landlord or Tenant; (ii) upon, measured by or reasonably attributable to the
Total Rent payable hereunder, or any component thereof, levied by any
governmental body with respect to the receipt of such Total Rent; (iii) upon or
with respect to the possession, leasing, operation, management, maintenance,
alteration, repair, use or occupancy by Tenant of the Premises or any portion
thereof; and, (iv) upon this transaction or any document to which Tenant is a
party creating or transferring rights, an interest or an estate in the Premises.
In the event that it shall not be lawful for Tenant so to reimburse Landlord,
the monthly Base Rental payable to Landlord under this Lease shall, to the
maximum extent permitted by law, be revised to net Landlord the same net Base
Rental after imposition of any such tax upon Landlord as would have been payable
to Landlord prior to the imposition of any such tax. Tenant shall also be solely
liable for any taxes, including rental, sales and use taxes, assessed directly
against Tenant by any governmental authority.
(d) It is understood and agreed that Base Rental and Operating
Expense Increase shall be due and payable as provided herein, without setoff or
deduction whatsoever. Base Rental, Operating Expense Increase and each and every
other charge, fee, cost or expense which Tenant is obligated or liable to pay
to, refund to or reimburse Landlord shall, for the purposes of the default
provisions of this Lease, be deemed additional rental due from Tenant, and
Tenant's failure to so pay, refund or reimburse when due shall entitle Landlord
to all the remedies provided for herein and at law or in equity on account of
failure to pay rent.
(e) Base Rental, Operating Expense Increase and other sums due
hereunder shall be paid in legal tender at Manager's address set forth in
Section 8.1, or to such other address as may be specified by Landlord by notice
given from time to time as provided in such Section 8.1. No payment by Tenant or
receipt by Landlord of a lesser amount than the monthly installment of Base
Rental or any other component of Total Rent due under this Lease shall be deemed
to be other than on account of the earliest Base Rental or other such component
of Total Rent due hereunder, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment of Total Rent (or any portion
thereof) be deemed an accord and satisfaction, and Landlord may accept such
check or payment without prejudice to Landlord's right to recover the balance of
such Total Rent or to pursue any other remedy provided in this Lease or under
applicable law.
(f) Delay by Landlord in providing Tenant with any statements
regarding Operating Expense Increase shall not relieve Tenant from the
obligation to pay Operating Expense Increase upon the rendering of such
statements.
3.5 INITIAL INSTALLMENT: Simultaneously with the execution of this
Lease, Tenant has paid to Landlord, and Landlord hereby acknowledges the receipt
of, the Initial Installment. Such sum shall be applied by Landlord to the first
monthly installment(s) of Base Rental as they become due hereunder. In the event
Tenant fails to take possession of the Premises in accordance with all the terms
hereof, such sum shall be retained by Landlord for application in reduction, but
not in satisfaction, of damages suffered by Landlord as a result of such breach
by Tenant.
3.6 SECURITY DEPOSIT: Landlord acknowledges that it has received the
Security Deposit from Tenant, simultaneously with the execution of this Lease.
The Security Deposit shall be security for the full and faithful performance and
observance by Tenant of the covenants, terms and conditions of this Lease,
including, without limitation, the payment of Total Rent, on the part of Tenant
to be kept and performed. No interest shall be payable on the Security Deposit,
and the Security Deposit need not be held in a segregated account and may be
commingled with Landlord's separate funds. It is agreed and acknowledged by
<PAGE>
Tenant that the Security Deposit is not an advance payment of rent or a measure
of Landlord's damages in the case of default by Tenant. Upon the occurrence of
an Event of Default under this Lease, Landlord may use, apply or retain the
whole or any part of the Security Deposit to the extent required for the payment
of all or any part or component of Total Rent or any other sum as to which
Tenant is in default or for the payment of any other injury, expense or
liability resulting from any Event of Default. Use, application or retention of
the Security Deposit by Landlord shall not prohibit or limit Landlord's exercise
of any other remedies Landlord may have for Tenant's default. Following any such
application of the Security Deposit, Tenant shall pay to Landlord on demand an
amount necessary to restore the Security Deposit to its original amount. In the
event that Tenant shall fully and faithfully comply with all of the terms,
provisions, covenants and conditions of this Lease, the Security Deposit shall
be returned to Tenant within thirty (30) days after the Expiration Date and
after delivery of possession of the Premises to Landlord in accordance with the
terms hereof. Upon every sale or lease of the Building, Landlord shall be
released from all liability for the return of the Security Deposit, and Tenant
shall look to the new landlord for its return, so long as the transferring
Landlord assigns or transfers the Security Deposit to the acquiring landlord or
provides the acquiring landlord a credit for same. The Security Deposit shall
not be assigned or encumbered by Tenant, and any such assignment or encumbrance
shall be void.
3.7 LANDLORD'S SECURITY INTEREST: In addition to any landlord's lien
arising at law or by statute, Landlord shall have, at all times, and Tenant
hereby grants to Landlord a valid security interest, to secure payment of Total
Rent and other sums of money becoming due hereunder from Tenant, and to secure
performance by Tenant of any covenant, agreement or condition contained herein,
in and upon all goods, wares, equipment, fixtures, furniture, improvements and
other personal property of Tenant presently or which may hereinafter be situated
in the Premises, and all proceeds therefrom, and such property shall not be
removed therefrom without the consent of Landlord until all arranges in Total
Rent as well as any and all other sums of money then due to Landlord hereunder
shall first have been paid and discharged and all of the covenants, agreements,
and conditions hereof have been fully complied with and performed by Tenant.
This provision shall be considered a security agreement and, in consideration of
this Lease, upon the occurrence of an Event of Default by Tenant, Landlord may,
in addition to any other remedies provided herein, exercise all remedies granted
a "Secured Party" under the Uniform Commercial Code in force in the State of
Georgia. Without limitation, Landlord may enter upon the Premises and take
possession of any and all goods, wares, equipment, fixtures, furniture,
improvements, and other personal property of Tenant situated on or in the
Premises, without liability for trespass or conversion, and sell the same at
public or private sale, with or without having such property at the sale, after
giving Tenant reasonable notice of the time and place of any public sale or of
the time after which any private sale is to be made, for cash or on credit, or
for such price and terms as Landlord deems best, at which sale the Landlord or
its assigns may purchase unless otherwise prohibited by law. Unless otherwise
provided by law, and without intending to exclude any other manner of giving
Tenant reasonable notice, the requirement of reasonable notice shall be met if
such notice is given in the manner prescribed in Section 8.1 of this Lease at
least five (5) days before the time of sale. Landlord may also, at its option,
foreclose the lien created hereby in the manner and form provided for the
foreclosure of security instruments or in any other manner permitted by law. The
proceeds from any such disposition, less any and all expenses connected with the
taking of possession, holding and selling of the property (including reasonable
attorneys' fees and other expenses), shall be applied as a credit against the
indebtedness secured by the security interest granted in this Section 3.7. Any
surplus shall be paid to Tenant or as otherwise required by law, and Tenant
shall pay any deficiencies forthwith. Upon request by Landlord, Tenant agrees to
execute and deliver to Landlord a financing statement or statements (and
continuation statements as necessary) in form sufficient to perfect the security
interest of Landlord in the aforementioned property and proceeds thereof under
the provisions of the Uniform Commercial Code in force in the State of Georgia.
Any statutory or common law lien for rent is not hereby waived, the security
interest herein granted being in addition and supplementary thereto.
ARTICLE IV
RIGHTS AND DUTIES DURING LEASE TERM
4.1 PREPARATION OF THE PREMISES:
(a) Tenant acknowledges that it has inspected the Premises,
that Landlord has made no representations or warranties whatsoever respecting
the condition thereof or otherwise and that, except as may be expressly provided
to the contrary in the Work Schedule, Landlord has no obligation or duty to make
any alterations, improvements or repairs whatsoever in and to the Premises to
make same ready for Tenant's use and occupancy and Tenant takes and accepts the
Premises in their present "as is" condition. By occupying the Premises, Tenant
shall be deemed conclusively to have accepted the Premises as complying fully
with Landlord's covenants and obligations.
(b) Initial improvements to the Premises, if any, shall be
governed by the Work Schedule.
(c) If the installation of improvements in the Premises causes
an increase in the ad valorem taxes levied or assessed on the Building, Tenant
shall reimburse any such increase to Landlord within thirty (30) days following
written demand by Landlord as contemplated by Section 3.4(c).
(d) Within thirty (30) days after the Commencement
Date, Tenant will execute and deliver to Landlord the Commencement Date
Agreement.
4.2 SERVICES: Landlord agrees to provide to Tenant, as Landlord deems
reasonably necessary, the following services (the cost of which, unless
specifically required to be paid for directly by Tenant, shall be included
within Operating Expenses):
(a) General cleaning and janitorial service during the times
and in the manner such janitorial service is customarily furnished in similar
office buildings in the metropolitan Atlanta, Georgia, area;
(b) Heating, air-conditioning and elevator service daily on
Mondays through Fridays, inclusive, from 8:00 A.M. to 6:00 P.M. and on Saturdays
from 8:00 A.M. to 1:00 P.M., with New Year's Day, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day, Christmas Day and other days observed
generally as holidays by a majority of the privately-owned businesses in
Atlanta, Georgia excepted. At least one elevator per elevator bank shall be
operated at all other hours and on all other days. Should Tenant desire either
heating or air conditioning at other times, Landlord agrees to provide same upon
written request by Tenant delivered to the Building's Manager during normal
business hours at least twenty-four (24) hours prior to the time when such
<PAGE>
service is desired. Any additional service so provided shall be at Tenant's
expense at such hourly rates as may be determined from time to time by Landlord,
which charge Tenant shall promptly pay upon being billed therefore. Landlord
reserves the right to prohibit the use of heat generating machines and equipment
unless and until Tenant makes arrangements, acceptable to Landlord, to install
and maintain supplementary air-conditioning equipment in the Premises at
Tenant's cost and expense, and the costs of operation of such shall be paid by
Tenant on the Base Rental payment dates at such rates as are established by
Landlord; provided, however, that the maintenance of such supplementary
air-conditioning equipment shall be solely Tenant's, and not Landlord's, duty
and responsibility;
(c) 110 volt electric current for lighting and for usual and
normal electric power for office space, all from existing electric circuits
designated by Landlord for Tenant's use. Landlord reserves the right to meter
the Premises or any portion thereof separately, and if the Premises (or any
portions thereof) are so separately metered, Tenant shall pay for all
electricity furnished to the Premises which is so separately metered. Tenant
shall not, without Landlord's prior written consent, use any equipment,
including, without limitation, electronic data processing machines, punch card
machines, duplicating machines, main frame computers, photocopiers, printers or
any other machines which use electric current in excess of 110 volts, which will
increase the amount of electricity ordinarily furnished for the use of the
Premises as general office space or which require clean circuits or other
special distribution circuits. If Tenant desires additional 110 volt electrical
power beyond that supplied by Landlord as provided above, electric current in
excess of 110 volts, or other special power requirements or circuits, then
Tenant may request Landlord to provide such supplemental power to the Premises,
which request Landlord may grant or withhold in its reasonable discretion. If
Landlord furnishes such power or circuits, Tenant shall pay Landlord, on demand,
the cost of the design, installation, and maintenance of the facilities required
to provide such additional or special electric power or circuits and the cost of
all electric current so provided at a rate not to exceed the actual cost to
Landlord for such current. Landlord may require separate electrical metering of
such supplemental electrical power or circuits to the Premises, and Tenant shall
pay, on demand, the cost of the design, installation, and maintenance of such
metering facilities. In no event shall Tenant have access to any electrical
closets in the Building, it being agreed that any electrical engineering design
or contract work shall be performed by Landlord or an electrical engineer and/or
electrical contractor designated by Landlord at Tenant's expense;
(d) Common use restrooms and toilets with hot and cold running
water; and
(e) Drinking water available on each floor of the Building.
4.3 LIABILITY OF LANDLORD: Landlord shall not be liable to Tenant in
any manner whatsoever for failure to furnish or delay in furnishing any service
or services provided for in this Lease and no such failure or delay shall
constitute actual or constructive eviction of Tenant or operate to relieve
Tenant from the prompt and punctual performance of each and all the covenants to
be performed herein by Tenant. Landlord shall also not be liable to Tenant for
damage to person or property caused by defects in, or repairs to, the cooling,
heating, electric, water, elevator or other apparatus or systems or by water
discharged from sprinkler systems, if any, in the Building; likewise, Landlord
shall not be liable to Tenant for the theft, mysterious disappearance, or loss
of any property of Tenant whether from the Premises or any part of the Building
or Tower Place Complex. Landlord agrees to make reasonable efforts to protect
Tenant from interference or disturbance by third persons, including other
tenants; however, Landlord shall not be liable, and Tenant shall not be relieved
from its obligations hereunder, for any such interference or disturbance,
whether caused by another tenant or tenants of Landlord, or by other persons.
4.4 REPAIRS BY LANDLORD: Landlord shall have no duty to make any
repairs or improvements to the Premises except structural repairs and repairs to
the Building's base electrical, mechanical and plumbing systems necessary for
safety and tenantability, the necessity for which (i) Landlord is notified in
writing by Tenant, and (ii) is not brought about by any act or neglect of
Tenant, its agents, employees or visitors. Landlord shall not be liable for any
failure to make repairs or to perform any maintenance required hereunder unless
such failure shall persist for an unreasonable time after written notice of the
need of such repairs or maintenance is given to Landlord by Tenant in accordance
with Section 8.1 of this Lease. Tenant waives the right to make repairs at
Landlord's expense under any law, statute or ordinance now , or hereafter in
effect.
4.5 RIGHTS OF LANDLORD TO ENTER PREMISES: Tenant shall not change the
locks on any entrance to the Premises. Upon Tenant's written request to
Landlord, Landlord agrees to make a reasonable change of locks on behalf of
Tenant and at Tenant's sole cost and expense. Landlord and its agents, employees
and contractors may enter the Premises at such times as Landlord deems
reasonably necessary or desirable to inspect and examine same, to make such
repairs, additions, alterations, and improvements as Landlord desires to make to
the Building, including, without limitation, the erection, use and maintenance
of pipes and conduits, to supply janitorial service and any other service to be
provided by Landlord to Tenant hereunder, and to exhibit the Premises to
prospective purchasers or tenants. In the event of emergency, or if otherwise
necessary to prevent injury to persons or damage to property, such entry to the
Premises may be made by force without any liability whatsoever on the part of
Landlord for any resulting damage. Landlord may also take any and all needed
materials into and through the Premises that may be required to make such
repairs, additions, alterations, and improvements, all without being liable to
Tenant in any manner whatsoever. During such time as such work is being carried
on, provided such work is carried out in a manner so as not unreasonably to
interfere with the use and occupancy of the Premises by Tenant, Total Rent (nor
any portion thereof) shall in no way abate, and, regardless of Landlord's fault,
Tenant waives any claim and cause of action against Landlord for damages by
reason of loss or interruption to Tenant's business and profits therefrom
because of the prosecution of any such work.
4.6 AGREEMENTS OF TENANT: Tenant agrees that it shall:
(a) at its own expense and except for the obligations of
Landlord expressly stated in Section 4.4 of this Lease, keep the Premises in
good repair and tenantable condition and indemnify Landlord against any loss,
damage, or expense arising by any failure of Tenant so to do or due to any act
or neglect of Tenant, its employees, agents or visitors;
(b) make no alterations or additions of any kind in or to the
Premises or the Building without first obtaining Landlord's written consent; all
such work, including additions, fixtures and leasehold improvements (but not
including moveable office furniture and equipment and other personal property of
Tenant), made or placed in or upon the Premises or the Building either by Tenant
or Landlord shall be and become Landlord's property at the end of the Lease
Term, all without compensation or payment to Tenant, and shall remain upon and
in the Premises, during and at the termination of the Lease Term;
<PAGE>
(c) not use the Premises for any illegal purpose or violate
any statute, regulation, rule or order of any governmental body, nor create or
allow to exist any nuisances or trespasses, nor do any act in or about the
Premises or bring anything onto or into the Premises which will in any way
increase the rate of insurance on the Premises or reduce the value of the
Building or its attractiveness to other tenants, nor will Tenant deface or
injure the Premises or commit or allow waste to be committed on any portion
thereof or overload any floor of the Premises;
(d) at its sole expense comply, as to its use of the Premises,
with all statutes, regulations, rules, ordinances and orders of any governmental
body, department or agency thereof, and abide by and observe the Rules and
Regulations;
(e) indemnify and hold Landlord harmless from and against any
and all loss, cost, damage, expense, or liability whatsoever, including, without
limitation, court costs and reasonable attorneys' fees, imposed on Landlord by
any person whomsoever, caused in whole or in part by an act or omission of
Tenant or its agents, employees, invitees, licensees, contractors, subtenants or
assignees (the provisions of this Subsection to survive expiration or
termination of this Lease with respect to any act or omission occurring prior to
such expiration or termination);
(f) report immediately in writing to Landlord any defective
condition in or about the Premises known to Tenant, and a failure so to report
shall make Tenant liable to Landlord for any expense or damage to Landlord
resulting from such defective condition;
(g) pay interest to Landlord on demand, at the rate of one and
one-half percent (11/2%) per month or the maximum rate permitted by law,
whichever is lower, on any installment of Total Rent not paid when due, accruing
from the due date until paid;
(h) pay to Landlord on demand, in the event that Landlord
elects to accept a payment of any part of the Total Rent which is not received
by Landlord within five (5) days of its due date, a late charge in an amount
equal to the greater of Fifty Dollars ($50.00) or five percent (5%) of the total
outstanding amount due (which late charge represents an agreed upon charge for
Landlord's administrative expenses in processing late payments, and is not a
payment for the use of money or a penalty); provided, however, nothing contained
herein shall be deemed to require Landlord to accept any payment of Total Rent
received by Landlord after the due date;
(i) pay to Landlord a processing and handling fee of Fifty
Dollars ($50.00) for any check of Tenant's which is returned to Landlord because
of insufficient funds, as liquidated damages to compensate Landlord for its
additional administrative costs and expenses in handling such items, it being
agreed that the exact amount thereof would be difficult or impossible to
ascertain;
(j) cooperate with Landlord in complying with all regulations
of the United States Department of Energy and of any governmental agency having
jurisdiction of the Building and/or Tower Place Complex, relating to the
conservation of energy, including, without limitation, any regulations requiring
the production of information regarding the consumption of energy within the
Building and/or Tower Place Complex, and Tenant shall indemnify and hold
Landlord harmless from and against any loss, cost, damage, or liability arising
out of any violation of any such regulations by Tenant, its employees, agents,
contractors, invitees, licensees, subtenants and assignees; and
(k) install telephone service to the Premises only from the
telephone circuits designated by Landlord in writing as those serving the
Premises; if Tenant requires additional telephone service capacity for the
Premises, such capacity must be provided by a telecommunications provider
approved by Landlord, at no cost to Landlord, and the design and installation of
such supplemental capacity shall be subject to the reasonable approval of
Landlord.
4.7 SIGNS: Tenant shall obtain the written approval of Landlord prior
to placing and maintaining, or causing or permitting to be placed and
maintained, any sign, advertising matter or other thing of any kind, on the
exterior of the Premises, or any decorating, lettering or advertising matter on
any exterior door to the Premises. Tenant shall not affix or attach anything to
windows in the Premises or, without Landlord's prior written consent in each
instance (which may be given on such condition as Landlord may reasonably
elect), place signs or similar matter on the Premises which will be visible from
outside the Premises. All exterior and elevator lobby signs shall, unless
Landlord otherwise specifically consents in writing, conform to uniform Building
sign specifications promulgated by Landlord and Landlord shall provide and
install same at Tenant's cost and expense.
4.8 BUILDING NAME: Tenant acknowledges that the Building is part of the
Tower Place Complex known generally as "Tower Place." Tenant covenants and
agrees to cause all directory listings, advertising and all other printed or
written material containing Tenant's address at the Premises accurately to refer
to "Tower Place" or any other name given the Building and/or Tower Place Complex
by Landlord in accordance herewith; however, Tenant shall not, without the prior
written consent of Landlord, use the name Tower Place or any other name given
the Building or Tower Place Complex, or any other deceptively similar name, or
any associated service mark or logo of the Building and/or Tower Place Complex
for any purpose other than Tenant's business address and Tenant, under no
circumstances, shall use the word "Courtyard" in any signage or advertisement.
Upon written notice to Tenant, Landlord reserves the right, from time to time
and at its sole option, to name or change the name of the Building and/or Tower
Place Complex and to change the street address of the Building.
4.9 HAZARDOUS MATERIALS:
(a) Tenant hereby covenants that, from and after the date
hereof and thereafter during the Lease Term, Tenant shall not cause or permit
any "Hazardous Substances" (as hereinafter defined) to be placed, held, located
or disposed of in or about the Premises or the Tower Place Complex or any part
of either and that neither the Premises nor the Tower Place Complex, nor any
part of either, shall ever be used by Tenant or persons claiming under Tenant as
a storage site (whether permanent or temporary) for any Hazardous Substances.
For purposes of this Section 4.9, "Hazardous Substances" shall mean and include
those elements or compounds which are contained in the list of hazardous
substances adopted by the United States Environmental Protection Agency (EPA) or
the list of toxic pollutants designated by Congress or the EPA or which are
defined as hazardous, toxic, pollutant, infectious or radioactive by any other
federal, state or local statute, law, ordinance, code, rule, regulation, order
or decree regulating, relating to or imposing liability (including, without
limitation, strict liability) or standards of conduct concerning, any hazardous,
toxic or dangerous waste, substance or material, as now or at any time hereafter
in effect (collectively "Environmental Laws").
<PAGE>
(b) Tenant hereby agrees to comply with all Environmental Laws
with regard to its use and occupancy of the Premises and to indemnify Landlord
and hold Landlord harmless from and against any and all losses, liabilities,
including strict liability, damages, injuries, expenses, including reasonable
attorneys' fees, costs of any settlement or judgment and claims of any and every
kind whatsoever paid, incurred or suffered by, or asserted against, Landlord by
any person, entity or governmental agency for, with respect to, or as a direct
or indirect result of Tenant's failure so to comply or the presence in, or the
escape, leakage, spillage, discharge, emission, or release from, the Premises of
any Hazardous Substance (including, without limitation, any losses, liabilities,
including strict liability, damages, injuries, expenses, including reasonable
attorneys' fees, costs of any settlement or judgment or claims asserted or
arising under the Comprehensive Environmental Response, Compensation and
Liability Act, any so-called federal, State or local "Superfund" or "Superlien"
laws or any other Environmental Law); provided, however, that the foregoing
indemnity is limited to matters arising solely from Tenant's violation of the
covenant contained in Subsection 4.9(a) above.
(c) In the event Landlord suspects, in its reasonable opinion,
that Tenant has violated any of the covenants contained in this Section 4.9, or
that the Premises, Retail Complex or Tower Place Complex are not in compliance
with the Environmental Laws for any reason as to which Tenant is responsible
hereunder, or that the Premises, Retail Complex or Tower Place Complex are not
free of Hazardous Substances for any reason as to which Tenant is responsible
hereunder, Tenant shall take such steps as Landlord requires by written notice
to Tenant in order to confirm or deny such occurrences, including, without
limitation, the preparation of environmental studies, audits, surveys or
reports. In the event that Tenant fails to take such action, Landlord may take
such action and shall have such access to the Premises as Landlord deems
necessary, and the costs and expenses of all such actions taken by Landlord,
including, without limitation, Landlord's attorneys' fees, shall be due and
payable by Tenant upon demand therefor from Landlord as additional rent
hereunder. If any lender or governmental agency shall ever require testing to
ascertain whether or not there has been any release of hazardous materials, then
the reasonable costs thereof shall be reimbursed by Tenant to Landlord upon
demand as additional charges if such requirement applies to the Premises. In
addition, Tenant shall execute affidavits, representations and the like from
time to time at Landlord's request concerning Tenant's best knowledge and belief
concerning the presence of hazardous substances or materials on the Premises.
Further, Landlord reserves the right at any time and from time to time to enter
the Premises following reasonable advance notice thereof to Tenant (except in
cases of emergency) in order to perform periodic environmental studies, audits,
surveys and reports and in order to determine whether Tenant is in compliance
with the terms of this Section 4.9.
(d) The obligations and liabilities of Tenant under this
Section 4.9 shall survive the expiration or earlier termination of this Lease or
other enforcement of Landlord's remedies under this Lease.
4.10 INSURANCE:
(a) Tenant agrees that it shall carry fire and extended
coverage insurance insuring Tenant's interest in its improvements and
betterments to the Premises and any and all furniture, equipment, supplies, and
other property owned, leased, held or possessed by it and contained therein, in
an amount equal to the full insurable values thereof (it being understood that
no lack of inadequacy of insurance by Tenant shall in any event make Landlord
subject to any claim by virtue of any theft of or loss or damage to any
uninsured or inadequacy insured property).
(b) Tenant shall also procure and maintain throughout the
Lease Term business interruption insurance in an amount that will reimburse
Tenant for direct or indirect loss of earnings attributable to all perils
insured against under this Section or attributable to the prevention of access
to the Premises by civil authority, and sufficient to reimburse Tenant for Total
Rent in the event of a casualty to, or temporary taking of, the Building or the
Premises.
(c) Tenant shall also procure and maintain throughout the
Lease Term a policy or policies of insurance, insuring Tenant, Landlord, Manager
and any other persons designated by Landlord, against any and all liability for
injury to or death of a person or persons and for damage to property occasioned
by or arising out of any construction work being done on the Premises, or
arising out of the condition, use, or occupancy of the Premises, or in any way
occasioned by or arising out of the activities of Tenant, its agents, employees,
or licensees in the Premises, or other portions of the Building or Tower Place
Complex, in amounts not less than $1,000,000 with respect to injuries to or
death of any one person, $1,000,000 with respect to any one casualty or
occurrence and $1,000,000 with respect to property damage, or such higher annual
policy aggregate limits as Landlord may reasonably require from time to time
during the Lease Term. Tenant shall also carry or procure any other form or
forms of insurance or any changes or endorsements to the insurance required
herein as Landlord or any Mortgagee (as hereinafter defined) or lessor of
Landlord may reasonably require, from time to time, in form or in amounts.
(d) Landlord and Tenant shall each have included in all
policies of insurance respectively obtained by them with respect to the Building
and/or the Premises a waiver by the insurer of all right of subrogation against
the other in connection with any loss or damage thereby insured against. So long
as both Landlord's and Tenant's policies then in force include such mutual
waiver of subrogation, Landlord and Tenant, to the fullest extent permitted by
law, each waive all right of recovery against the other for and agree to release
the other from liability for, loss or damage to the extent such loss or damage
is covered by valid and collectible insurance in effect at the time of such loss
or damage. If such waiver of subrogation shall not be obtainable or shall be
obtainable only at a premium over that chargeable without such waiver, the party
seeking such waiver shall notify the other thereof in writing, and the latter
shall have ten (10) days in which either (i) to procure on behalf of the
notifying party insurance with such waiver from a company or companies
reasonably satisfactory to the notifying party or (ii) to agree to pay such
additional premium (in Tenant's case, in the proportion which the rentable area
of the Premises bears to the area covered by the insurance policy of Landlord in
question).
(e) All insurance policies procured and maintained by Tenant
pursuant to this Subsection 4.10 shall be carried with companies licensed to do
business in the State of Georgia reasonably satisfactory to Landlord and shall
be non-cancelable except after thirty (30) days' written notice to Landlord and
any designees of Landlord. Such policies or duly executed certificates of
insurance with respect thereto shall be delivered to Landlord prior to the date
that Tenant takes possession of the Premises, and renewals thereof as required
shall be delivered to Landlord at least thirty (30) days prior to the expiration
of each respective policy term. If Tenant shall fail to procure or maintain any
insurance required of Tenant hereunder, Landlord may, at its sole option, but
shall not be required to, procure and maintain the same at the cost and expense
of Tenant, and Tenant agrees to reimburse Landlord for same as additional rent
due hereunder within fifteen (15) days after receiving notice of the amount
thereof from Landlord.
<PAGE>
4.11 LIENS: No work performed by Tenant in the Premises, whether
pursuant to this Lease or otherwise, whether in the nature of erection,
construction, alteration, addition, improvement, remodeling or repair, shall be
deemed to be for the immediate use and benefit of Landlord, and no mechanic's,
materialman's or other lien shall be allowed against the estate of Landlord by
reason of any consent given by Landlord to Tenant to improve the Premises.
Tenant shall pay promptly all persons furnishing labor or materials with respect
to any work performed by Tenant or its contractor on or about the Premises and
Tenant shall discharge of record within twenty (20) days following the filing
thereof, by payment or bonding, any mechanic's lien filed against the Premises,
the Building or the Tower Place Complex for work or materials claimed to have
been furnished to Tenant.
ARTICLE V
ASSIGNMENT AND SUBLETTING
5.1 ASSIGNMENT AND SUBLETTING:
(a) Tenant shall not, without the prior written consent of
Landlord, assign, hypothecate, or otherwise transfer this Lease or any interest
hereunder, or sublet the Premises or any part thereof, or permit the use of the
Premises by any party other than Tenant. Landlord's consent or refusal to
consent to a proposed assignment or sublease must be an action which is taken
reasonably and in good faith. For the purposes of the immediately preceding
sentence, Landlord shall be deemed to be acting reasonably and in good faith in
determining whether to consent to a proposed assignment or sublease when
Landlord considers such factors as, without limitation, the identity and
business reputation of the proposed assignee or subtenant, the relationship of
the proposed assignee or subtenant to the tenant mix in the Building and/or the
Tower Place Complex, the type or nature of the proposed assignee's or
subtenant's business, the creditworthiness of the proposed assignee or
subtenant, and any agreement or leasing restrictions with existing tenants or
other third parties that prohibit or restrict Landlord from leasing to the
proposed assignee or subtenant. Tenant agrees to pay to Landlord as additional
rental, on demand, a Four Hundred Dollar ($400.00) administrative processing fee
in connection with any request by Tenant for consent to a proposed assignment or
subletting and, in addition, reasonable out-of-pocket costs incurred by Landlord
(including, without limitation, attorneys' fees) in connection with any request
by Tenant for Landlord to consent to any assignment or subletting by Tenant. All
monies so paid shall be non-refundable in any event, regardless of whether
Landlord consents to the proposed assignment or subletting. Any assignment or
sublease shall not nullify these provisions, and all later assignments or
subleases shall be made likewise only after the prior written consent of
Landlord is obtained in each instance.
(b) No sublease or assignment by Tenant shall relieve Tenant
of any liability hereunder. Without limiting the foregoing, if, with the consent
of Landlord, this Lease is assigned or the Premises or any part thereof is
sublet or occupied by any party other than Tenant, Landlord may, after default
by Tenant, collect rent from the assignee, subtenant or occupant, and apply the
net amount collected to the Total Rent herein reserved, but no such assignment,
subletting, occupancy, or collection shall be deemed (i) a waiver of any of
Tenant's covenants contained in this Lease, (ii) the acceptance by Landlord of
the assignee, subtenant, or occupancy as Tenant hereunder, or (iii) the release
of Tenant from further performance by Tenant of its covenants under this Lease.
(c) The occupancy of the Premises by any successor firm or
entity of the Tenant or by any firm or entity into which or with which the
Tenant may become merged or consolidated shall be deemed an assignment of this
Lease requiring the prior written consent of Landlord.
(d) Notwithstanding the giving by Landlord of its consent to
any assignment or sublease with respect to the Premises, no such assignee or
sublessee may exercise any expansion option, right of first refusal option, or
renewal option under this Lease, nor shall any such party have the benefit of
any specific signage or other similar privileges or rights which may be provided
to Tenant under this Lease except in accordance with a separate written
agreement entered into directly between such assignee or sublessee and Landlord.
After a permitted assignment or subletting, the original Tenant shall have no
right to exercise on behalf of a permitted assignee or sublessee as to the space
assigned or sublet any expansion option, right of first refusal option or
renewal or extension option.
(e) Should Landlord permit any assignment or subletting by
Tenant and should the monies received as a result of such assignment or
subletting (when compared to the monies still payable by Tenant to Landlord) be
greater than Landlord would have received hereunder had not Landlord permitted
such assignment or subletting, then fifty percent (50%) of the "Gross Profit",
less reasonable amounts for brokerage commissions and or Tenant improvements
shall be payable by Tenant to Landlord, it being the parties' intention that
Landlord, in consideration of Landlord's permitting such assignment or
subletting, shall receive fifty percent (50%) of any Gross Profit from any such
assignment or subletting. Further, should the assignment or subletting giving
rise to the Gross Profit less reasonable amounts for brokerage commissions and
or Tenant improvements be arranged by Landlord (or its Manager) on Tenant's
behalf (it being understood that neither Landlord nor its Manager shall have any
obligation to arrange for same), one hundred percent (100%) of the Gross Profit
shall be paid to Landlord.
ARTICLE VI
DEFAULT AND REMEDIES
6.1 EVENTS OF DEFAULT: The occurrence of any of the following shall
constitute "Events of Default" (each an "Event of Default"):
(a) Any part, portion or component of the Total Rent, or any
other sums payable under this Lease, or otherwise, not received when due;
<PAGE>
(b) The Premises are deserted, vacated, or not used as
regularly or consistently as would normally be expected for similar premises put
to the same or similar purposes as set forth in Section 2.1, even though Tenant
continues to pay Total Rent;
(c) Any petition is filed by or against Tenant under any
section or chapter of the Federal Bankruptcy Code, and, in the case of a
petition filed against Tenant, such petition is not dismissed within sixty (60)
days after the date of such filing;
(d) Tenant becomes insolvent or transfers property in
fraud of creditors;
(e) Tenant makes an assignment for the benefit of
creditors;
(f) A receiver is appointed for any of the Tenants assets
; or
(g) Tenant breaches or fails to comply with any term,
provision, condition or covenant of this Lease, other than the payment of Total
Rent, or any of the Rules and Regulations.
6.2 REMEDIES:
(a) Upon the occurrence of an event of default, Landlord shall
have the option to do and perform any one or more of the following, in addition
to, and not in limitation of, any other right or remedy available to Landlord at
law or in equity or elsewhere under this Lease if the events of default
described in Subsections 6.1(a) or (b) are not cured within five (5) days after
written notice by Landlord of such default, if the events described in
Subsection 6.1(g) are not cured within twenty (20) days after written notice of
such default (unless such default gives rise to immediate threat to person or
property, in which case such event of default shall immediately entitle Landlord
to its rights and remedies) or if any of the other events of default are not
cured immediately:
(i) terminate this Lease, in which event Tenant
shall immediately surrender the Premises to Landlord, but if Tenant shall fail
to do so, Landlord may, without further notice and without prejudice to any
other remedy Landlord may have for possession or arrearages in Total Rent, enter
upon the Premises and expel or remove Tenant and Tenant's effects, by force if
necessary, without being subject to prosecution or liable for any claim for
damages therefore; and Tenant agrees to indemnify Landlord for all loss and
damage which Landlord may suffer by reason of such termination, whether through
inability to relet the Premises, or through decrease in rent, or otherwise (such
agreement to survive any such termination of this Lease); and/or
(ii) terminate Tenant's right of possession of the
Premises without terminating this Lease, and enter the Premises as the agent of
Tenant, by force if necessary, without being subject to prosecution or liable
for any claim for damages therefore, and relet the Premises as the agent of
Tenant without advertisement and by private negotiations and or any term
Landlord deems proper, and receive the rent therefor, and Tenant shall pay
Landlord upon demand any deficiency that may arise by reason of such reletting,
but Tenant shall not be entitled to any surplus funds generated by such
reletting;Tenant shall reimburse Landlord for all costs of reletting the
Premises, including, but not limited to, advertising expenses, commissions, and
the cost of improvements reasonably required in order to relet the Premises;
and/or
(iii) as agent of Tenant, do whatever Tenant is
obligated to do by the provisions of this Lease and enter the Premises, by force
if necessary, without being subject to prosecution or liable for any claims for
damages therefor, in order to accomplish this purpose; Tenant agrees to
reimburse Landlord immediately upon demand for any expenses which Landlord may
incur in thus effecting compliance with this Lease on behalf of Tenant, and
Tenant further agrees that Landlord shall not be liable for any damages
resulting to Tenant from such action, whether caused by the negligence of
Landlord or otherwise; and/or
(iv) collect as liquidated damages and not as a
penalty, and in addition to all Total Rent and other amounts previously due and
unpaid under the terms and conditions of the Lease, the accelerated present
value of the Total Rent, and all other sums provided herein to be paid by Tenant
during the remainder of the Lease Term (the "Rent Balance"), less the Net Rental
Value of the Premises, as hereinafter defined; the term "Net Rental Value" shall
mean the fair rental value of the Premises for the remainder of the Lease Term
reduced to present value, less the Landlord's costs, expenses and attorneys'
fees in connection with the preparation of the Premises for reletting and for
the reletting itself; provided, however, the parties agree that in no event
shall the Net Rental Value exceed the Rent Balance; the parties further agree
that the damages caused by the Tenant's default would be difficult or impossible
accurately to estimate and that this measure of damages is a reasonable
pre-estimate of the Landlord's probable loss resulting from Tenant's breach;the
acceptance of the liquidated damages set forth in this paragraph shall not
constitute a waiver of any failure of Tenant thereafter occurring to comply with
any term, provision, condition or covenant of this Lease.
(b) If Landlord exercises any of the remedies set forth in
Section 6.2(a) or under Georgia law, in addition to all other costs and expenses
Landlord shall be entitled to recover under this Lease, Landlord shall also be
entitled to recover:
(i) the cost of performing any other covenants which would
have otherwise been performed by Tenant;
(ii) the amount of any rental abatement or other rental
concession provided by Landlord to Tenant;provided, however, that
in no event shall Tenant's liability hereunder exceed the Total
Rent due under this Lease;
(iii) all sums expended by Landlord, and not previously
reimbursed to Landlord by Tenant,in connection with improving or
repairing the Premises to Tenant's specifications; and
(iv) all costs and expenses incurred by Landlord in
connection with the termination of this Lease and eviction of
Tenant.
<PAGE>
ARTICLE VII
DESTRUCTION OR DAMAGE: CONDEMNATION
7.1 DESTRUCTION OF OR DAMAGE TO PREMISES: If because of fire, the
elements, or Act of God, the Premises or the Building is either destroyed or
damaged so as to render the Premises wholly unfit for occupancy, or if, in the
judgment of Landlord, the damage resulting cannot be repaired within sixty (60)
days from such damage, then at the option of Landlord to be exercised by giving
written notice to Tenant within sixty (60) days following the date of such
damage, this Lease shall terminate on the date of such election, and Tenant
shall immediately surrender the Premises to Landlord. In such event, and
regardless of whether Landlord elects to terminate this Lease, Tenant shall
continue to owe and pay Total Rent up to but not beyond the time of such
surrender, but Total Rent shall abate in proportion to the number of square feet
of rentable area of the Premises rendered unusable by such damage. Under no
circumstances shall Landlord be liable to Tenant for inconvenience, annoyance,
loss of profits, expenses, or any other type of injury or damage resulting from
the repair of any such damage, or from any repair, modification, arranging, or
rearranging of any portion of the Premises or any part or all of the Building or
for termination of this Lease as provided above. Tenant assumes the risks of any
and all damage to its personal property in or on the Premises and from any
casualty whatsoever.
7.2 EMINENT DOMAIN: If all of the Premises or the Building is taken, or
if such a part of either is taken so as to render the remainder thereof
unsuitable for Landlord's or Tenant's purposes, for any public or quasi-public
use by eminent domain or by private purchase in lieu thereof, this Lease shall
terminate at the option of either Landlord or Tenant on the date that the
condemning authority actually takes possession of the part condemned. If this
Lease is not so terminated, or upon a taking not within the scope of the
foregoing, Total Rent shall abate for the period of such taking in proportion to
the area of the Premises taken. In no event shall Tenant have any right or claim
to any part of any award made to or received by Landlord for such taking, or
against Landlord or the condemning authority for the value of any unexpired term
of this Lease, and Tenant hereby assigns any such claim to Landlord. Nothing
herein contained, however, shall preclude Tenant from claiming, proving and
receiving from the condemning authority a separate award for the value of any of
Tenant's personal property taken which Tenant could have rightfully removed from
the Premises hereunder and for relocation and moving expenses, so long as the
Landlord's award is not thereby reduced.
7.3 DETERMINATION OF TIME REQUIRED TO REBUILD: Within ten (10) business
days following any casualty described in Section 7.1, or any taking described in
Section 7.2, Landlord shall give Tenant a notice stating (a) Landlord's estimate
of the portion of the Premises rendered untenantable as a result of such
casualty or taking and (b) Landlord's estimate of the time required for
restoration. If Landlord and Tenant do not agree within ten (10) days after the
casualty or taking as to the length of time which would be required for
restoration, the issue shall be submitted, promptly, by both parties, or either
party, to the president or principal officer of the Atlanta, Georgia, Chapter of
the American Institute of Architects (or successor thereto) whose determination
shall be binding upon the parties. Landlord and Tenant shall share equally in
the cost of obtaining the opinion of said person.
7.4 PARTIAL DESTRUCTION OR TAKING: If the Premises are damaged as a
result of a casualty described in Section 7.1 or a taking described in Section
7.2 but this Lease is not terminated as a result of such casualty or taking, all
rental shall abate in proportion to the amount of the Premises which shall have
been rendered unusable; provided, however, that Tenant's obligation to pay Total
Rent shall not cease or abate if the damage to the Premises or the Building was
caused through the negligence or willful misconduct of Tenant, its agents,
employees, contractors, invitees, licensees, subtenants, or assignees. Further,
in such a case, Landlord will promptly, at its sole cost and expense, restore,
replace or rebuild the same as nearly as possible to the structural and
architectural condition existing immediately prior to such casualty or taking
and as expeditiously as practicable but within a period beginning on the
earliest date upon which the time required for restoration has been determined
and any options of Landlord or Tenant to terminate this Lease, if any, have
expired, and having a length not exceeding one hundred twenty-five percent
(125%) of the length of time required to rebuild as determined pursuant to
Section 7.3 as the same may be extended pursuant to Section 8.23, whereupon full
rental shall recommence. If the damage or seizure affects more than twenty-five
percent (25%) of the area of the Premises, or such a fraction that would leave
the remainder of the Premises untenable and Landlord fails to complete such
restoration, replacement or rebuilding within such period, Tenant shall be
entitled at any time up to the earlier of ten (10) days following the expiration
of the time permitted for restoration or the actual date of completion of
restoration, replacement or rebuilding, by notice to Landlord, to terminate this
Lease as of a date not more than sixty (60) days following the date of such
notice. Notwithstanding anything herein contained to the contrary, Landlord
shall have no obligation to repair any improvements to the Premises constructed
by Tenant or Tenant's agents or contractors or, if constructed or installed by
Landlord, any improvements required to be insured by Tenant in accordance with
the provisions of this Lease (unless insurance proceeds for repair are made
available to Landlord) and Tenant shall, upon substantial completion by Landlord
of its repairs required hereunder, promptly and diligently and at its sole cost
and expense, repair and restore any improvements to the Premises made by Tenant,
as well as Tenant's contents, to the condition thereof prior to such destruction
or damage.
ARTICLE VIII
ADDITIONAL PROVISIONS
8.1 ADDRESSES-NOTICES:
(a) Except for legal process which may also be
served as provided by law, all notices required or desired to be given with
respect to this Lease shall be in writing and shall be delivered (a) by
certified or registered mail, return receipt requested, with proper postage
prepaid and addressed to the party as set out below, or (b) by hand delivery to
the address set out below. Any such notice or demand shall be effective and
deemed delivered and received on the date given by hand delivery, or on the date
of deposit with the United States mail in the manner aforesaid for notices given
by registered or certified mail; provided that the period of time in which a
response to a mailed notice must be given or taken shall run from the date of
receipt as indicated on the return postal receipt. Rejection or other refusal to
accept or the inability to deliver because of changed address of which no notice
was given shall be deemed receipt of the notice, demand or request sent. Any
<PAGE>
party may change its address for notices to any other location within the
continental United States by notifying the other parties of the new address in
the manner provided herein for the giving of notices, with such change to become
effective ten (10) days after notice of the change of address is given. For the
purposes hereof, notices to Tenant shall be sent to the addresses set out in
Section 1.1 (n). Notices to Landlord and Manager shall be sent to the following
addresses:
(i) To Landlord:
Tower Place, L.P.
c/o Regent Partners, Inc.
3348 Peachtree Road, NE
Suite 1000
Atlanta, Georgia 30326
Attn: Debra Cobbs
(With a copy of any notice sent to Landlord sent also
to Manager at Manager's address set forth as provided
herein); and
(ii) To Manager:
Regent Partners, Inc.
Tower Place
3348 Peachtree Road, NE
Suite 1000
Atlanta, Georgia 30326
Attn: Property Manager
(b) Tenant hereby designates and appoints as
its agent to receive notice of all dispossessory or distraint proceedings the
person in charge of or occupying the Premises at the time such notice is given,
or, if there is no such person, then such service of notice may be made by
attaching it on the main entrance of the Premises.
(c) In the event that Landlord gives notice to Tenant
of the name and address of any holder of a Landlord's Mortgage (such holder
being herein referred to as a "Mortgagee"), Tenant agrees to send to any such
Mortgagee, by certified mail, a copy of any notice of default given by Tenant to
Landlord. Tenant further agrees that if such default is not cured by Landlord,
the Mortgagee shall be allowed thirty (30) days in which to cure the default or,
if the default cannot be cured within the thirty (30)-day period, to begin
diligently pursuing such cure. Nothing herein contained shall in any way
obligate the Mortgagee to cure or pursue the cure of any such default.
8.2 MANAGER: Landlord shall have the right to delegate any and all of
its obligations under this Lease to an entity engaged in the operation and
management of office buildings in the metropolitan area of Atlanta, Georgia (any
such entity herein referred to as "Manager"). Such delegation shall not,
however, relieve Landlord of any such obligations. The initial Manager is as
stated in Section 1.1(0) and such Manager's address is set out in Section 8.1(a)
above. Landlord may designate a replacement Manager at any time and from time to
time by notice to Tenant.
8.3 SURRENDER OF PREMISES: Upon the expiration or other termination of
the Lease Term, as the same may have been extended, Tenant shall promptly quit
and surrender to Landlord the Premises (and the keys thereto), together with all
improvements belonging to Landlord, free of debris, broom clean, ordinary wear
and tear excepted, and Tenant shall remove all of its personal property required
or permitted to be removed hereunder; provided, however, that Tenant shall not
be permitted to remove any movable furniture, personal property, or equipment
from the Premises at any time, including at the end of the Term or any renewal
thereof or other sooner termination of this Lease, if Tenant is then in material
default under this Lease. All such property not promptly removed by Tenant shall
be deemed abandoned by Tenant, and title to the same shall pass to Landlord
under this Lease as by a bill of sale.
8.4 HOLDING OVER: Should Tenant remain in possession of the Premises
after the expiration or other termination of the Lease Term, Tenant shall be a
tenant at sufferance (absent a written agreement to the contrary signed by
Landlord) at a rental rate equal to one hundred and fifty percent (150%) of the
Total Rent then applicable hereunder, and otherwise on the same terms and
conditions as herein provided as applicable to a tenancy at sufferance. In
addition, Tenant shall indemnify and hold harmless Landlord from all loss or
damage which may result from Tenant's holding over. Without limiting the
foregoing, Tenant shall indemnify Landlord against all claims made by any other
Tenant or prospective Tenant against Landlord resulting from such delay by
Landlord in delivering possession of the Premises to such tenant or prospective
Tenant. Nothing herein shall be construed as constituting Landlord's consent or
approval to any such holdover, nor operate to preclude or inhibit the exercise
by Landlord of all of its rights and remedies hereunder or available under
applicable law to dispossess or evict Tenant. There shall be no renewal of this
Lease by operation of law.
8.5 BROKERS: Except with respect to Landlord's Broker (whose commission
Landlord shall pay) and Tenant's Broker, if any, (to whom Landlord's Broker is
obligated to pay a portion of such commission in accordance with a separate
written agreement between Landlord's Broker and Tenant's Broker), Tenant and
Landlord each represents and warrants to the other that no broker, agent,
commission salesman or other person has represented the warranting party in the
negotiations for and procurement of this Lease and of the Premises, and that no
commissions, fees or compensation of any kind are due and payable in connection
herewith to any such person or entity. The individual(s) executing this
Agreement on behalf of Tenant hereby swear to and for the benefit of Landlord,
any lender of Landlord holding a lien or security title interest in and to all
or any portion of the Building, any attorney certifying title to the Building
and any title insurance company insuring title to all or any portion of the
Building that (a) except for Tenant's Broker, if any, (i) all fees, commissions,
compensation or other amounts payable to any and all real estate brokers engaged
by Tenant in connection with the Lease have been paid in full, or (ii) the
rights of any and all real estate brokers engaged by Tenant to file any lien,
notice of lien or claim of lien under O.C.G.A. Section 44-14-600et seq. have
been waived in writing by such broker, and (b) except for the commission payable
by Landlord to Tenant's Broker, in accordance with the separate written
agreement between Landlord's Broker and Tenant's Broker, if any, all fees,
commissions, compensation or other amounts payable to Tenant's Broker in
connection with this Agreement have been paid in full. Each party further
<PAGE>
warrants that any compensation arrangement with the parties excepted from the
foregoing warranty has been reduced to writing in its entirety in a separate
agreement signed simultaneously with or before this Lease by the party against
whom the commission or compensation is charged. Each party agrees to indemnify
and hold the other harmless from and against any claim for any such commissions,
fees, or other form of compensation by any such third party claiming through the
indemnifying party, including, without limitation, any and all claims, causes of
action, damages, costs and expenses (including attorneys' fees) associated
therewith.
8.6 WAIVER OF RIGHTS: No failure or delay by Landlord to exercise any
right or power given it or to insist upon strict compliance by Tenant with any
obligation imposed on it, and no custom or practice of either party hereto at
variance with any term hereof shall constitute a waiver or a modification of the
terms hereof by Landlord or any right it has herein to demand strict compliance
with the terms hereof by Tenant. This Lease contains the sole and entire
Agreement of Landlord and Tenant and no prior or contemporaneous oral or written
representation or agreement between the parties and affecting the Premises shall
have legal effect. No representative, agent or employee of Landlord has or shall
have any authority to waive any provision of this Lease unless such waiver is
expressly made in writing and signed by an authorized representative of
Landlord.
8.7 WAIVER OF HOMESTEAD AND EXEMPTION: BANKRUPTCY OF TENANT:
(a) Tenant hereby waives and renounces all
homestead or exemption rights which Tenant may have under or by virtue of the
Constitution and Laws of the United States, Georgia, or any other State as
against any debt Tenant may owe Landlord under this Lease, and hereby transfers,
conveys, and assigns to Landlord all homestead or exemption rights which may be
allowed or set apart to Tenant, including such as may be set apart in any
bankruptcy proceeding, to pay any debt owing by Tenant to Landlord hereunder.
(b) Tenant acknowledges that this Lease is a lease of
nonresidential real property and therefore agrees that Tenant, as the debtor in
possession, or the trustee for Tenant (collectively, the "Trustee") in any
proceeding under Title 11 of the United States Bankruptcy Code, as amended (the
"Bankruptcy Code"), relating to bankruptcy, shall not seek or request any
extension of time to assume or reject this Lease or to perform any obligations
of this Lease which arise from or after the order of relief. Further, Tenant
agrees as follows:
(i) If the Trustee proposes to assume or
to assign this Lease or sublet the Premises (or any portion thereof) to any
person or entity which shall have made a bona fide offer to accept an assignment
of this Lease or a subletting on terms acceptable to the Trustee, then the
Trustee shall give written notice to Landlord and any Mortgagee of which Tenant
has notice, setting forth the name and address of such person or entity and the
terms and conditions of such offer, no later than twenty (20) days after receipt
of such offer, but in any event no later than ten (10) days prior to the date on
which the Trustee makes application to the Bankruptcy Court for authority and
approval to enter into such assumption and assignment or subletting. Landlord
shall have the prior right and option, to be exercised by written notice to the
Trustee given at any time prior to the effective date of such proposed
assignment or subletting, to accept an assignment of this Lease or subletting of
the Premises upon the same terms and conditions and for the same consideration,
if any, as the bonafide offer made by such person or entity, less any brokerage
commissions which may be payable out of the consideration to be paid by such
person or entity for the assignment or subletting of this Lease.
(ii) The Trustee shall have the right to
assume Tenant's rights and obligations under this Lease only if the Trustee: (i)
promptly cures or provides adequate assurance that the Trustee will promptly
cure any default under the Lease; (ii) compensates or provides adequate
assurance that the Trustee will promptly compensate Landlord for any actual
pecuniary loss incurred by Landlord as a result of Tenant's default under this
Lease; and, (iii) provides adequate assurance of future performance under the
Lease. Adequate assurance of future performance by any proposed assignee or
subtenant shall include, at a minimum, assurance that: (a) any proposed assignee
or subtenant shall deliver to Landlord a security deposit in an amount equal to
at least three (3) months' Base Rental accruing under the Lease; (b) any
proposed assignee or subtenant shall provide to Landlord an audited financial
statement, dated no later than six (6) months prior to the effective date of
such proposed assignment or sublease with no material change therein as of the
effective date, which financial statement shall show the proposed assignee or
subtenant to have a net worth equal to at least twelve (12) months' Base Rental
accruing under the Lease, or, in the alternative, the proposed assignee or
subtenant shall provide a guarantor of such proposed assignee's or subtenant's
obligations under the Lease, which guarantor shall provide an audited financial
statement meeting the requirements of this subpart and shall execute and deliver
to Landlord a guaranty agreement in form and substance acceptable to Landlord;
and, (c) any proposed assignee or subtenant shall grant to Landlord a security
interest in favor of Landlord in all furniture, fixtures, and other personal
property to be used by such proposed assignee or subtenant in the Premises. All
payments of Total Rent required of Tenant under this Lease, whether or not
expressly denominated as such in this Lease, shall constitute rent for the
purposes of Title 11 of the Bankruptcy Code.
(iii) For the purposes of the Bankruptcy
Code relating to (i) the obligation of the Trustee to provide adequate assurance
that the Trustee will "promptly" cure defaults and compensate for actual
pecuniary loss, the word "promptly" shall mean that cure of defaults and
compensation will occur no later than sixty (60) days following the filing of
any motion or application to assume this Lease; and (ii) the obligation of the
Trustee to compensate or to provide adequate assurance that the Trustee will
promptly compensate Landlord for "actual pecuniary loss" shall mean Landlord's
damages upon default, including but not limited to payments of past due Total
Rent, including (without limitation) interest at the rate provided for in
Section 4.6(g), all attorneys' fees, and all related costs and expenses of
Landlord incurred in connection with any default of Tenant and in connection
with Tenant's bankruptcy proceedings.
(iv) Any person or entity to which this
Lease is assigned pursuant to the provisions of the Bankruptcy Code shall be
deemed, without further act or deed, to have assumed all of the obligations
arising under this Lease and each of the conditions and provisions hereof on and
after the date of such assignment. Any such assignee shall, upon the request of
Landlord, forthwith execute and deliver to Landlord an instrument, in form and
substance acceptable to Landlord, confirming such assumption.
8.8 NO ESTATE IN LAND: RELATIONSHIP OF THE PARTIES: This Lease creates
the relationship of landlord and tenant between Landlord and Tenant. No estate
shall pass out of Landlord, and Tenant has only a usufruct which is not subject
to levy and sale. Further, nothing contained herein shall be deemed or construed
by the parties hereto, or by any third party, as creating the relationship of
principal and agent, or of partnership, or of joint venture, between the parties
hereto, it being understood and agreed that no provision contained herein, nor
any acts of the parties hereto, shall be deemed to create any relationship
between such parties other than the relationship of landlord and tenant.
<PAGE>
8.9 RECORDING: This Lease shall not be recorded by Tenant without
Landlord's consent endorsed hereon.
8.10 GOVERNMENTAL REGULATIONS:
(a) Tenant waives the benefits of all existing
and future rent control legislation and statutes and similar governmental rules
and regulations, whether in time of war or not, to the full extent permitted by
law.
(b) Except as provided in paragraph (c) of this
Section 8.10, if, in order to maintain the Building as an office building, or
otherwise, or the Premises for the use stipulated in Section 2.1, Landlord shall
be required by any governmental authority to repair, alter, remove, construct,
reconstruct, or improve any part or all of the Premises or the building, such
action shall be performed by Landlord but shall in no way affect Tenant's
obligations under this Lease. Tenant waives all claim for injury, damage or
abatement of rent because of such repair, alteration, removal, construction,
reconstruction, or improvement; provided, however, that if such action by
Landlord renders the Premises untenantable, or if Landlord cannot reasonably
complete such acts within sixty (60) days after notice to it to perform such
acts by the governmental authority, either Landlord or Tenant, by written notice
to the other delivered not later than seventy (70) days after the date of notice
to Landlord by such governmental authority, may terminate this Lease, in which
event Total Rent shall be apportioned and paid up to and including the date the
Premises become untenantable if terminated by Landlord, but up to and including
the date of termination if terminated by Tenant.
(c) Without limiting the provisions of Section 4.6(d), Tenant
shall, at Tenant's sole cost and expense but subject to Landlord's prior written
approval, which approval shall not be unreasonably withheld, make each and every
alteration or addition to the Premises required to bring the Premises into
compliance with the requirements imposed by the Americans with Disabilities Act,
(42 U.S.C. Section 12101 et ~q,) and any regulations promulgated pursuant
thereto ("ADA Requirements") effective from time to time during the Lease Term,
and any period of holding over by Tenant if:
(i) the requirement for such alteration or addition arises
as a result of:
(l) any alteration or addition by Tenant; or
(2) any violation by Tenant of any ADA Requirements; or
(3) a special use of the Premises or any part thereof by
Tenant or any assignee or subtenantof Tenant
(including, but not limited to, use for a facility
which constitutes, or, if open to the public generally,
would constitute, a "place of public accommodation"
under the ADA Requirements); or
(4) the special needs of the employee(s) of Tenant or any
assignee or subtenant of Tenant; or
(ii) the ADA Requirements would otherwise make Tenant,
rather than Landlord, primarily responsible for making such alteration or
addition.
8.11 SUBORDINATION AND ATTORNMENT:
(a) Except as provided in Subsection (c) below
and subject to the provisions of subsection (d) below, this Lease and all rights
of Tenant hereunder are and shall be subject and subordinate to the lien of
Landlord's Mortgage.
(b) While Subsection (a) of this Section
8.11 is self-operative, and no further instrument of subordination shall be
necessary, Tenant shall, in confirmation of such subordination, upon demand, at
any time or times, execute, acknowledge and deliver to Landlord or a holder of
Landlord's Mortgage any and all instruments requested by either of them to
evidence such subordination.
(c) Tenant shall, upon demand, at any time or times,
execute, acknowledge, and deliver to Landlord or to a holder of Landlord's
Mortgage, without expense, any and all instruments that may be necessary to make
this Lease superior to the lien of Landlord's Mortgage.
(d) Tenant shall, at the option of any holder of
Landlord's Mortgage or any other purchaser at a foreclosure sale who shall
hereafter succeed to the rights of Landlord under this Lease (the "Purchaser"),
attorn to and recognize such Purchaser as Tenant's landlord under this Lease
from and after the foreclosure and for the balance of the Lease Term and shall
promptly execute and deliver any instrument that may be necessary to evidence
such attornment. Upon such attornment, this Lease shall continue in full force
and effect as a direct lease between such Purchaser and Tenant, subject to all
of the terms, covenants and conditions of this Lease; provided, however, that
the Purchaser (including its successors and assigns) shall not be (i) liable for
any act or omission of any prior Landlord under the Lease, (ii) subject to any
offsets or defenses which Tenant might have against any prior Landlord under the
Lease, (iii) bound by any Base Rental or other payments which Tenant might have
paid for more than the current month to any prior Landlord under the Lease, or
(iv) bound by any amendment or modification of the Lease made after the date of
the foreclosed Landlord's Mortgage without the prior written consent of the
Mortgagee thereunder. The provisions of this subsection (d) shall survive any
termination of this Lease resulting from a foreclosure of Landlord's Mortgage.
(e) If Tenant fails at any time to execute,
acknowledge and deliver any of the instruments provided for by Subsections 8.
11(b), (c) and (d) above within ten (10) days after Landlord's demand so to do,
Landlord, in addition to the remedies allowed by Article VI, may execute,
acknowledge and deliver any and all of such instruments as the attorney-in-fact
of Tenant and in its name, place and stead, and Tenant hereby irrevocably
appoints Landlord, its successors and assigns, as such attorney-in-fact.
<PAGE>
8.12 ESTOPPEL CERTIFICATE: At any time and from time to time, Tenant,
on or before the date specified in a request therefor made by Landlord, which
date shall not be earlier than ten (1O) days from the making of such request,
shall execute, acknowledge and deliver to Landlord a certificate in
substantially the same form as the Estoppel Certificate which is attached hereto
as Exhibit "G" and incorporated herein by reference. Each certificate delivered
pursuant to this Section may be relied on by any prospective purchaser or
transferee of Landlord's interest hereunder or of any part of Landlord's
property or by any holder or prospective holder of Landlord's Mortgage, or a
mortgage or prospective mortgage of any part of Landlord's other property.
8.13 SEVERABILITY: Each clause and provision of this Lease shall be
valid and enforced to the fullest extent permitted by applicable law; however,
if any clause or provision of this Lease is or becomes illegal, invalid, or
unenforceable because of present or future laws or any rule or regulation of any
governmental body or entity, effective during its term, the intention of the
parties hereto is that the remaining parts of this Lease and the application of
such clause or provision to persons or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby, unless
the amount of Total Rent payable hereunder is thereby decreased, in which event
Landlord may terminate this Lease. Should any of the provisions of this Lease
require judicial interpretation, it is agreed that the court interpreting or
construing the same shall not apply a presumption that the terms of any such
provision shall be more strictly construed against one party by reason of any
rule of construction that a document is to be construed most strictly against
the party who itself or through its agent prepared the same, it being agreed
that the agents of all parties have participated in the negotiation and
preparation of this Lease.
8.14 CAPTIONS: The captions used in this Lease are for convenience only
and do not in any way limit or amplify the terms and provisions hereof.
8.15 SUCCESSORS AND ASSIGNS: The provisions of this Lease shall inure
to the benefit of and be binding upon Landlord and Tenant, and their respective
successors, heirs, legal representatives and assigns, subject, however, in the
case of Tenant, to the provisions of Article V.
8.16 SALE OF BUILDING: In the event of any sale or sales of the
Building (and the property on which same is situated) or of any lease thereof,
the Landlord named herein above shall be and hereby is entirely freed and
relieved of all covenants and obligations of Landlord hereunder accruing
thereafter, and it shall be deemed without further agreement that the purchaser,
or the lessee, as the case may be, has assumed and agreed to carry out any and
all covenants and obligations of Landlord hereunder during the period such party
has possession of the Building. Should the entire Building and the property on
which same is situated be severed as to ownership by sale and/or lease, then the
owner of the entire Building or the lessee of the entire Building that has the
right to lease space in the Building to tenants shall be deemed the "Landlord".
Tenant shall be bound to any succeeding Landlord for all the terms, covenants
and conditions hereof and shall execute any attornment agreement not in conflict
herewith at the request of any succeeding Landlord. The provisions of this
Section 8.16 shall apply to each and every sale, lease or other transfer of the
Building or the property on which same is situated, or both, during the Lease
Term.
8.17 TRANSFER OF TENANTS: This Section 8.17 shall only be effective at
such times and from time to time as the Premises contain a rentable area of
3,200 square feet or less. Landlord hereby reserves the right, at its sole
option and upon giving at least ninety (90) calendar days written notice in
advance to Tenant, to transfer and remove Tenant from the Premises from time to
time to any other available space in the Tower Place Complex of substantially
equal area, which space shall, once Tenant has been relocated therein, be deemed
the "Premises" for purposes of this Lease. Landlord hereby agrees to bear the
expense of such transfer and removal, as well as the expense of any renovations
or alterations which are necessary to make the new space conform substantially
in layout and appointment with the Premises. Failure of Tenant to cooperate with
Landlord pursuant to this provision and to remove itself from the Premises shall
permit Landlord to enter the Premises and to remove Tenant and its property
therefrom and to relocate Tenant and its property in the new space provided by
Landlord pursuant to this provision, all without being liable to Tenant in any
manner whatsoever for such acts, except for the expenses which are expressly
provided in this Section 8.17 to be paid by Landlord.
8.18 GOVERNING LAW: The laws of the State of Georgia shall
govern the interpretation, validity, performance and enforcement of this Lease.
8.19 TIME IS OF THE ESSENCE: Except as otherwise specifically
provided herein, time is of the essence of this Lease.
8.20 LIMITATION OF LIABILITY: Landlord's obligations and
liability to Tenant with respect to this Lease shall be limited solely to
Landlord's interest in the Building, and Tenant shall look solely to Landlord's
interest in the Building for satisfaction of Tenant's remedies. Neither Landlord
nor any partner, officer, director, or shareholder of Landlord or of any partner
of Landlord shall have any personal liability whatsoever with respect to this
Lease.
8.21 EXECUTION: This Lease may be executed in any number of
counterparts, each of which shall be deemed an original and any of which shall
be deemed to be complete in itself and shall be admissible into evidence or used
for any purpose without the production of the other counterparts.
8.22 MULTIPLE/ TENANTS: If Tenant is composed of more than one
individual or entity, then all are jointly and severally liable for the due and
proper performance of Tenant's duties and obligations arising under or in
connection with this Lease.
8.23 FORCE MAJEURE: Landlord shall be excused from the performance of
any of its obligations for the period of any delay resulting from any cause
beyond its control, including, without limitation, all labor disputes,
governmental regulations or controls, fires or other casualties, inability to
obtain any material or services, or acts of God.
8.24 QUIET ENJOYMENT: Provided that Tenant fully and timely performs
all the terms of this Lease on Tenant's part to be performed, including payment
by Tenant of all Total Rent, Tenant shall have, hold and enjoy the Premises
during the Lease Term without hindrance or disturbance from or by Landlord;
subject, however, to all of the terms, conditions and provisions of this Lease,
Landlord's Mortgage and any and all ground leases, restrictive covenants,
easements, and other encumbrances now or hereafter affecting the Premises, the
Building or the Tower Place Complex (if applicable).
<PAGE>
8.25 ATTORNEYS' FEES: If any rent or other amount owing by Tenant to
Landlord under this Lease is collected by or through an attorney at law, Tenant
agrees to pay an additional amount equal to fifteen percent (15%) of such sum as
attorneys' fees.
8.26 ALTERATIONS IN COMPOSITION OF COMMON AREAS: Landlord reserves the
right in its sole discretion to redesign, change, rearrange, alter, reconstruct,
modify, expand, reduce or supplement any and all of the facilities designed for
the common use and convenience of all tenants of the Tower Place Complex and/or
the Building, including, without limitation, parking areas, driveways and other
the Common Areas, so long as access to the Premises is not materially adversely
affected thereby. In furtherance, and not in limitation, of the foregoing,
Landlord shall have the right to erect additional stores or other structures in
the Tower Place Complex, or to add to or otherwise modify buildings and
facilities now or hereafter existing in the Tower Place Complex, and, in
connection with any such activity and construction, to erect temporary scaffolds
and other aids to construction on the exterior of the Premises, provided that
access to the Premises shall not be denied Tenant and that there shall be no
encroachment upon the interior of the Premises. Landlord shall have the right to
close the Common Areas or any portion thereof (including, without limitation,
all roadways, driveways, accessways, sidewalks and parking areas and facilities
now or hereafter within the Tower Place Complex) at such time and in such manner
as is necessary or appropriate, in Landlord's sole opinion, to prevent their
deduction as public rights-of-way or streets, and to do and perform such other
acts in, to and with respect to the Common Areas as at the time in question
accord with good and generally accepted standards of operation of mixed-use,
high-rise developments.
8.27 PARKING: Tenant shall have the right on the Commencement Date to
lease parking spaces in the parking facilities of the Tower Place Complex
available to tenants therein (as same may be modified from time to time) up to
the maximum number of parking spaces stipulated in Section 1.1 (r). All of such
spaces shall be unassigned and shall be leased at the posted monthly rental
rates in effect therefor from time to time. If less than the maximum number of
spaces allowed hereunder are leased by Tenant as of the Commencement Date or at
any time thereafter, Tenant shall forfeit permanently any rights to spaces not
so leased. Landlord and Tenant agree and Tenant acknowledges that rates for
spaces in the parking facilities of the Tower Place Complex may vary according
to the location of spaces in the facilities and according to whether or not
spaces are reserved or unreserved. Tenant further acknowledges and agrees that
Landlord may designate certain spaces within the parking facilities of the Tower
Place Complex as reserved or assigned spaces for the benefit of Landlord,
visitors to the project or tenants therein, other tenants, couriers and delivery
services and other persons. Tenant shall comply and cause its employees to
complete and sign the Tower Place Parking Application. Tenant must comply with
all rules and regulations established by Landlord and/or the operator of the
parking facilities as provided in the Tower Place Parking Rules and Regulations,
including, without limitation, any card, sticker or other identification system,
whether now or hereafter in effect, and agrees to pay to Landlord a fifteen
dollar ($15.00) or as modified from time to timedeposit for each parking card
issued. All parking privileges granted pursuant to this Section 8.27 are
non-assignable and nontransferable by Tenant; provided however, that parking
privileges may be assigned or transferred by Tenant in conjunction with a
transfer, assignment or subletting allowed by Article V of this Lease. Tenant
agrees to pay, as additional rent, the sum of $15.00 for any parking cards which
become lost, mutilated or destroyed.
8.28 SPECIAL STIPULATIONS: The Special Stipulations, if any, attached
hereto are made a part hereof by this reference, and to the extent they conflict
with any of the foregoing provisions, they shall control.
8.29 AUTHORIZATION: As a material inducement to Landlord to enter into
this Lease, Tenant, and each party executing this Lease on behalf of Tenant,
intending that Landlord rely on each such representation and warranty,
represents and warrants to Landlord that:
(a) the execution, delivery and full
performance of this Lease by Tenant do not and shall not constitute a violation
of any contract, agreement, undertaking, judgment, statute, regulation,
governmental or court order or other restriction of any kind to which Tenant is
a party or by which Tenant is or may be bound;
(b) Tenant has executed and entered into this Lease
free from fraud, undue influence, duress, coercion
or other defenses to the execution of this Lease;
(c) this Lease constitutes a valid and binding
obligation of Tenant, enforceable against Tenant in
accordance with the terms of this Lease;
(d) Tenant is duly organized, validly existing and in
good standing under the laws of the state of
Tenant's organization and has full power and authority to enter into this Lease,
to perform Tenant's obligations under this Lease in accordance with the terms
hereof, and to transact business in the State of Georgia; and
(e) the execution and delivery of this Lease by the
individual or individuals executing this Lease on behalf of Tenant, and Tenant's
performance of its obligations under this Lease, have been duly authorized and
approved by all necessary corporate or partnership action, as the case may be,
and Tenant's execution, delivery and performance of this Lease are not in
conflict with Tenant's bylaws or articles of incorporation (if a corporation),
agreement of partnership (if a partnership), or other charters, agreements,
rules or regulations governing Tenant's business, as any of the foregoing may
have been supplemented, modified, amended, or altered in any manner.
[SIGNATURES BEGIN ON FOLLOWING PAGE]
IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed
under seal as of the date first above written.
LANDLORD:
TOWER PLACE, L.P.
a Georgia Limited Partnership
By: REGENT PEACHTREE HOLDINGS, INC.
a Georgia Corporation, its sole General Partner
By: ____________________________________
Name: David B. Allman
Its: President
Attest: _________________________________________
Name: C. Lowell Ball
Its: Secretary
(CORPORATE SEAL)
TENANT:
RMS TITANIC, INC.
a Florida corporation
By: ___________________________________
Name: Arnie Geller
Its: President & CEO
Attest: _________________________________________
Name: G. Michael Harris
Its: Secretary
(CORPORATE SEAL)
