Carefirst Proposal email

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CareFirst of Maryland, Inc.
June 30, 2015
Page 9
15. Property Management
As the major tenant in the Building, CareFirst will expect the ability to reasonably approve the selection of the
Building’s property manager, if a change is to be made from the current property management company:
Merritt, and to have a reasonable voice in the Building’s annual operating budget. Please describe Landlord’s
plans for incorporating CareFirst’s preferences about the day-to-day operation of the Building into property
management decisions. Please describe how frequently the Landlord will be bidding the insurance and
various service contracts.
Landlord Response: The buildings will continue to be managed by Merritt Management
Corporation in same fashion as currently handled today. This will include CareFirst continuing
to have a reasonable voice in the day-to-day operation of the buildings, provided CareFirst
occupies seventy five percent (75%) or more of the building or park.
16. Security Deposit
CareFirst shall not be required to provide a security deposit.
Landlord Response: Agreed
17. Holdover
Please describe Landlord’s proposed holdover provisions, taking into consideration that CareFirst will not be
responsible for consequential damages at any time during Holdover.
Landlord Response: To remain as stated in the current Leases.
18. Short-Term Lease Extension
CareFirst requires the ability to extend it lease by six (6) months beyond the lease expiration date by
providing Landlord with nine (9) months written notice prior to the expiration of the Term. The rental rate
during the Lease Extension will be the rent then in effect at the end of the Lease Term. Please confirm
Landlord’s ability to offer such short-term extension.
Landlord Response: Not accepted
19. Subordination and Non-Disturbance
CareFirst’s lease shall be subordinate to any current or future lender or ground lessor only in the event that
CareFirst receives a fully executed non-disturbance agreement (“SNDA”), on terms acceptable to CareFirst,
which shall include the agreement of the lender to fund all Landlord allowances and other amounts
payable by Landlord under the Lease (or provide appropriate set-off) following a default by the Landlord
under the Lease or the loan. Such SNDA shall be fully executed concurrently with the lease. Please confirm
Landlord’s agreement to obtain such SNDA in accordance with industry standard, or otherwise reasonably
acceptable form.
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