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ADT BUILDING | LEASE ABSTRACT
Insurance:
During the term of the Lease, Landlord or, if applicable, Tenant shall maintain the following insurance: (i) Property Insurance with a de-
ductible of no more than $2,500,000; (ii) Commercial General Liability with a minimum combined single limit of not less than $1,000,000
and excess/umbrella liability insurance with limits of not less than $10,000,000; and (iii) Other Insurance to the extent not covered by
subsections (i) and (ii) above. Tenant, throughout the Term, shall, at its own expense, provide or cause to be provided and kept in force:
(i) Commercial general liability insurance applicable to the Premises and its appurtenances and covering the Tenant’s business opera-
tions, (ii) special form property insurance, including flood and earthquake, written at replacement cost value and covering all of Tenant’s
trade fixtures, equipment, furniture, leasehold improvements and personal property, (iii) workers’ compensation insurance as required
by the state, (iv) business interruption insurance. The insurance required by Tenant may be achieved through the use of a blanket policy.
Renewal Option:
Tenant shall have one (1) option to renew this Lease for a period of five (5) years with written notice received by Landlord not later
than two (2) years prior to initial lease expiration (i.e., September 30, 2021). All terms and conditions as contained in the Lease
shall remain the same except that the Base Rent for the Renewal Term shall be 95% the “prevailing market rate” for similar space in
comparable buildings (taking into consideration the duration of the terms for which space is being leased, location and/or floor levels
within the applicable building, rental concessions, build-out allowances and other relevant factors) for a lease term commencing on the
Renewal Term commencement date.
Termination
Option:
Tenant shall have the one-time right to terminate this Lease effective as of October 1, 2018, provided that: (i) Tenant provides Landlord
with written notice of its intent to terminate no later than October 1, 2017, and (ii) Tenant pays to Landlord, contemporaneous with its
termination notice and in immediately available funds, an early terminal payment in an amount equal to
$4,752,774.00 ($27.72 PSF).
Sublease:
There is a sublease in place between ADT and Unified Physician Management, LLC, for 20,954 RSF (12.2% of RBA) located on the
second floor of the West Building. The Term of the Sublease commenced on July 1, 2014, and terminates on September 30, 2023. The
starting rental rate was $29 PSF (gross), which increases at a rate of 3.0% per annum, compounded on each anniversary date of the
Commencement Date.
If Sublandlord has not delivered notice to Subtenant by September 30, 2022, that Sublandlord is in written negotiations with Landlord
for the Sublease Premises, then, and then only, may Subtenant enter into negotiations directly with the Landlord for continued use of
the Sublease Premises.
There is also a Termination Option for both the Subtenant and the Sublandlord, as follows: (a) Provided Subtenant is not in default,
Subtenant shall have the one-time right to terminate the Sublease effective July 31, 2021, by delivering written notice to Sublandlord
of its intention to terminate at least 9 months prior. Subtenant shall pay, thirty days after confirmation of termination fee, two months
gross rent plus all unamortized leasing commissions, documented tenant improvement costs and all discounted rent, amortized at
7% per annum. (b) Sublandlord shall have the right to terminate the Sublease on October 31, 2018, by delivering written notice of
such intention to terminate at least 9 months prior. Sublandlord shall simultaneously pay to Subtenant an early termination fee equal
to Subtenant’s unamortized costs incurred by moving into the Sublease Premises plus three months of the gross rental rate then
currently payable by Subtenant for the Sublease Premises.
Tenant Overview
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