HomeMy WebLinkAbout2011 Resolution No. 039RESOLCT!ON NO . .1!}_
SERl ES Of-20 11
CO NTRAC J' NO, .JJ -:J.. DI( <1 Aou...d loeMc_
CON TRA CT NO, J. 8 -.1 o I I M._._,, 41/-~~,
A RESO LUT ION SUP PORT ING THE EN GLEWOOD/MCLE LL.'\J,; R.ES J,RV OtR
FOUNDA T ION (EMRF) LEA SE OF A POR T ION OF TI{[ MCLELLAN :PR OPER TY TO
BEN JAMIN :'RANKLIN ACADEMY PRO JECT DEVELO PMENT, LLC.
Wl·U,R.EAS, the Engk wood/Mcl.ellan Re servo ir Founda tio n (EM R.F) was formed to oversee
th e dcvc lopm cnl oftbe McLcllan Rcsc rvo lf pro pc11 y; and
\Vl u::.REA S, the Eng lewood C ity Co uncil :;uµportcd the Eng lcwood/McL cll an Rcsen.·o Lr
Fou ndation ir. the ncgo ll ation of a lease of :-1 por1i on of McLclla n prope rty \VJ th Bc nja:ni n
r-,an kl in Academy Proj ect Deve lopm ent , LLC. by the passage of Rcsol11t1 on No . 89, Se rie s 20 I 0
;i nd Rcso luti1.m No . 3 7, Sc:1 iL:s of 201 1, <1m1
WHER.E 1\S, the Lease is for ap prox imat ely :0.1 acres or th e Eng lewoc,d/McLe ll an Re servo ir
Fo undat ion pro pcny : and
WHf:R.EAS, Benjamin Fra nkl in Acad emy Pro;ec t Dcvc lopmcr,t, LLC submit ted a Letter of
lnte rcs t whic h was prc.v 1ously submmc d to the Englewood City Co unc il: 2nd
WHEREAS, EMRF Boa rd of Directors ha, una ni1 ao,1sly a;,proved the lease wnh Be n,1 am111
Frankli n Acmiemy ProJeCI Development, LLC,
NOW , 17-fEREr-ORF., BE IT RESOLVED BY T HE CIT Y COUNC IL OF T iffi CITY f-
ENG LEWOOD. COLO RADO. T l-IA T :
Sec t ion I. T he: Ci ty Co unci l of the City or En gle\\ood. Co lorad o, hereby support s the Groun d
Lease of prope11y bers•een the Englewoo d/McLc ll ao Rese rv o1r fo un dnuoa a nd Benjamin
Franklin Academy l'roJCCI l)evcl o pm en t, LLC, as show n on Exhibit A atta ch ed hereto .
ADO PTED AND APPROV!:D this 2 1st day of' .vi arch, 20 11.
i , l...ul 1a ishi;1 /\. Ell b , Ci ty Cle1 k fo1 q~~ll y or Eng lcwo
aoove is 1 true copy of Resolutio n No . .,)+ Series or20 I
GROUND L EASE
hchvccn
DE l·'J AMJN PRANl<LIN A CAnli:MY 1'110,IC C'r OE VELOPME NT, LLC
"' Tenant
and
E ~:C:LEWOOD/M C U ,LAN RES ERVOIH FOUNDATION
as L n11 d lord
d oted ,is uf Mar c h 22,201 I
OROJ ,1~Dl8 1G,Ot53/( 1.!l2767 ) TOOO
TAIILE OF CONTl~NTS
ARTl'CLE I fo'undamc nt nl Lease Term s ..................................................................................... 1
ARTI C LE 2 Gro un d Lease of Premises ...................................................................................... 2
Defin iti ons ........ .
Premi ses
Condi ,ion of Premi ses: Tcna111 He lease ............................... .
Ii npro vc111 cnl s ... ,, .............................. .
·ritlc to hr.prov cm cnt s, Fixtures aod Persona l Propert y ..
........ 2
4
........ 5
. ...... 5
.. ......................... 5
2.1
2.2
2 .J
2.4
2.5
2.6
2.7
2 .8
Eus em~ms ..................... . .. ............................................................. 6
Lan dlo rd 's Coopern1inn .. .. ..... 6
Posse ss ion .................................... .. ··········· ................ 6
ARTICLE 3 Lease Tenn and Conditions l'l'eced<nl. ................................................................. 6
3 .1 Te rm; Effoctivc Dat e; Comme ncemen t Date ............ .. . ............................... 6
3 .2 E<ten si oa Op ti on. ...... ...................... .......................... .. ................................ 6
ART IC LE 4 Rent ........................................................................................................................... 7
4 .1 Cnnst nt cli on Rent.. .. ............. 7
4 .2
4.3
4 .4
Dase Reul .................. .
R,,nt Adjus tmems ..
Payme nt s
... 7
. ..... 8
.. 9
4.5 Ne , Leas e.. .. .. 9
ART ICLES Tn~cs ......................................................................................................................... 9
5.1
5.2
Rea l Es1a1 c Ta.,cs ..
Prorali on of Taxes
5.3 Personal Property Tnx es.
ARTI CLE G Util iti es .................................................................... .
6.1 U1ili1 y Usage
....... 9
....... 10
. ....... 10
.. ... II
........ I t
Al< l"I C L li: 7 Use, S 11 hlcl 1i11 ~, :mil Assi~11111c11t .......................................................................... I I
·1.1 c.J,:e...... . .................... . ! I
7.2 As ,:iB1111 1cnl nnd Su ld <:tlin g.. ... . .......... I I
II HTH :1.1,: H Jl11t cnti u11 all )' 0111il l1:<IJ .....•..................................................••.............................. LI
ll lffl C l,I'. (1 M cc h :111ic s I ,ic us ..................................................................................................... 13
9 .1 l .icw,,. . ... I 1
l'rulctt i~,1 of l...£mdlorcl1s In tere st ir, Prcmi :-:c?:. . ..... 13
1\l i'l 'l(:1~1: 10 l1ul cn111i1 y und Jn s11,·11 11ce .................................................................................... l J
1 0 .1 lnclc mnil y
I 0 .2 Ap pcai ,111,I lh.:l~:111 1 ...
I OJ l11 :-.ura 11 cc.
...... 13
. .. I '
.14
lll!'l'ICLE 11 IJ:,111:i ~c or ll c.sl n1 dio11 ...................................................................................... 16
Alff I (;Lil 12 l•:111i11 1:111 tlrn11ai11 .................................................................................................. 17
12.1 Dc;i nition uf'J'ak in[ and S11h:,l;rn ti:il Ta kinf~.
12.2 'l'cn:int 'i: qieht ~ l lp1111 T :1 ~i 11r, 11 r S,1h:.l:1111 i.1i Ta~in g.
12.3 Tenant 's Rig ht:-: Upo n Les :; Th:11 1 ~uh-;t:1 111.;tl ·1 aki :lg.
I :~Jl Ri ght:; lJpu n Temporary Takin g.
12.5 Awi.ml.
17
17
..18
. ..... 11:
..... i 8
Al<T I CL1,; 1.1 l)cfault ................................................................................................................. 18
l."\.I F.vc11 1s of Tcn:11 11 ',: Def null. ......
I '.1.2 Landl ord•, Rc,m:di c.s ..
13.J L;,11dl11nl's Default
l]A Allorncys 1 Fee~ ..
11 .) Wa ive r 1if r.n11s c11 11en ti11I n:1111:ie,t•.s
. ................... I~
. ... 19
....... ??
. ... 23
... 23
A lfr'C LE 14 Covc11 :111t CJf Q11i<'I Rujoymcn t ............................................................................. 23
A ll'l'I C LE 15 S11burclin ation Landlord 's Right 10 Mn r tg:ig c and C onvey l'rcmi<c, ........... 23
0\0•1/ ~oeiR l 6.0:58/41 t,27C,7 .3 rDO!I
Al('J .JCLI!: I fi Transfers by Landlord ........................................................................................ 24
ARTI CL~~ 17 Mi sccllancr111s ....................................................................................................... 24
I '/.I No n• Waiv er of Default.
17 .2 Rec ording .
17.3 Notice ........
17.4 Succ essors and Assigns .
17.5 Parti al Invalidit y ..
I '/.6 lnt erp reta ''•an ......
17.7 Headings, Ca pt io ns, and l(cferci:ccs ..
17.8 Gove rning Law .
17 .9 E.-..i;:c ut io 11 of Documen ts.
17.10 rorce Majeurc .................... ..
17.11 Reosooab lc Co nse nt... ................. ..
17 .12 Authority ............ ..
17.13 E•:!oppel Ce rtificate.
17.14 Holdin g Over .........
.................................. 24
. .... 24
.. .................. 25
.. .... 25
.. ... 25
. ........... 26
.. .......... 26
.. ................... 26
.. ............ 26
. ............ 26
.. ... 26
.. ..... 27
.. ......... 27
ARTICLE 18 L,·:ischold Financing ............................................................................................ 27
18.1 Mortgag e hy Tenan1.. .. ..2'1
18.2 No ti ce To and Righ ts Of Lease ho ld Mort gagees .
A RTlr.I ,11. 19 Rcpre.<c ntation., of l .:111dlord and Tenant ....... .. ........................................... 11
19.I
19 .2
ExhibitA•l
b hibitA •2
Exhibit B.J
Exhibit B·2
Exh ibit C
Representati ons of Land lord
Representation s of Tenant.
Legal Descr ipti on of Premi ses
Site Plan of Prem is es
Legal Desc ri pti on ofTcnn inatio n fla re~(
Drawi ng ofTcmunnt ion Par cel
Memorandum of Le ase
OB04 /!>0 J8t60J~ll/41f.27G 7J 1001
......... ) I
........ 33
A•I
A·2
13.1
B·2
C·l
c ·noUNO LEASE
Thi s Gl<OIJN II I ,tMilc (th , ".Lca<i'') is :11ad c ,is or the 22 nd d:1 y or Ma rch, 2tll I
("1,:rfrdi,•c Ualc"), hy "'"I hc1wec11 l•:NG U •:WO()O/MCl .,J,:LLAN 1rns1mvo1 II
F( >I JNOATION , a Co l orml c lhlllprofi ! ccir;,11r:11 i11t1 CC ~"). :uKI rlEN.IAM I N 11'1~/\N I\LI /\'
/\('t\ D EM\' l'rtO.ll~CT l>EVli:I.OPM l ~N'I , I.I .C, at l!n\1 l in1ik:d li :,bili ly com p1111y ("~").
W IT N l(SS l£T II:
FM an il in r.n n~id r rn linn of li ll! 1m1lua l covc11:1 11l s hcn:in co ntai ned and other gJod
an<I va luah}c consi dcmlion, th e receipt au ci m1fri cicucy of whi ch .ire hereby ncknowlcdgc;d , the
p111t t\::: 111 :r.:.t o ~g rcc tu 111 ,: tern ~ urn.I curn.l ilitm s as hcr~:i11;1flcr pro vided:
A 1rr1 C1,1 ,; I
li'111 1d :1111 cn f :t l l..1 1:i,>;t: 'l 'c n11 1:
r'o, co nvcni cn,:;.c, lhi.•; Arti c..k I ::11111 111.11 i1.1.;s ·:t..:11 ui1, fu :1d :11 ncntal n :o uomic a 11cl hu shc~~
l c rms of thi s 1.c n:,c .
l(ffeclil'c Dale :
P1 ·c m i~l!.~:
Tenn:
O ption :
M,1rch 7.7., 20 11
/'h:1 1 cc ,·1·,in 1\.:a l pro 1Jt.:··1y dc i;criln:d C\ll l~xh ihil A-1 nu nc hi,;d
hc.:rc to and 1n t..111pu 1.1 tcd l11,;1~i11 liy tlii .-. ri.;rt;n.:iu..:l!, consistin g of
10.135 11crcs at the St111 lhwl'!-I c1 1rne r o f l'lnz:\ I hi ve anci
G1cc11sl1 o rough D,i v~. I lii~h l:im l.'> H1111ch, CO.
f!NG LEWO, )1)/MCL U .I.AN I< ['SEil VOii{ FOUNDA .i°ICJN
I 000 Englewood l'mkwa )'
l.!11glcwu11d, C11 l0r.1da KO i iil
/\Hcntio n: l'n;si cl cnt
l knj ami n Fr1111ldi11 /\c;1de111y l'wjc<:1 l lc vdo p111 :.:11 1, I I .C .
1.·/iJ 1-l ighM .ir k Schnol Dcv ck1pm cnl,
6900 So uth 90 0 Eus t, Suite 200,
Mid vnlc, U111h 8404 ·1
.'\ttc11ti on: Glc1111 Hi le man
Tlu cc Humh cd (JOO) mon ths from 1hc Bnsc Rcut SIUrt Dille
1111d any rcncwn l terms a~ provi ded in tbi .~ l....c nsc.
Fiv e (5) renewa l opl ions of teu (10) years car:h.
neut : a.
b.
c.
d.
e.
g.
Effective [lmr, unt il th e la st day of th e month followi ng
th e iss uance of a Ce nificct e of Occupancy, or
Se ptember 30,20 1 I , which eve r occurs fir st $4 ,000imo
Next 12 mon th s $108,000 ,u111w1Uy, $ 9,000 ,00 /mo
!\ex t 12 month s $12 1,000 annually, $10,083.3 3/111 0
Next 12 mon ths $148 ,000arurnnlly , $12,333.3 3/mo
Nc,11 2 month s $1 75,000annuall y , $14 ,5 83 ,33/rn o
Next 12 montlt s $189,000 wm ua lly , $1 5,750 ,00/mo
(Provided Tenant does exercis e its ri ght under Sectio n
2,2.C)
Next 12 months $202,000 annua ll y, $16,83 3.33/mo
It , Next 12 months $216,000ann ua ll y,$18,000,0011110
Ne,,t 12 month s $229,000 ann ua ll y , $19.008.333/mo
nnd tlt ercafr crndj us tcd witl1 th e Cons umer Price Ind ex wi th n
minimum increas e of I% a.1d maximum of 3 % over prerinu s
yea r le as e amount n.s provided in Arti cle 4 .
Thi s is a Net Lease.
ARTICLE2
Ground Lease of Premises
For purpo ses of thi s Leusc, th e following term s s hall hav e tl1 e fo ll owing
mean ings:
A. "Adj ustm ent Date" shall have th e mea ning set forth in Section 4.3 .D .
B. "Appro ve d Sublease" shall have th e meanin g set fo rth in Sect ion 7J .
C. "/\sscss men ts" sha ll have the mean in g set fort h in Secti on 19.19.1.K.
D. "Base Rent " shall huve th e mea ning se t fo t1h in Sec ti o n 4.2.
E. "Base Re nt Sta rt Date" shall ha vr the meaning se t fo rth in Sc~tiu11 4.2.
F. "Ouildin gs" shall mean the build ings whi ch may be construc ted by th e
T1.:m111t on th e Prem ises.
G. "Casu alty " shall ha ve the mea111ng sc i lonh in 11 I.
H. "Cons truction Rent " shall ha ve th e mean ing set fo rth in Se el ion 4.1
I. '·Cons tru c ti on Ren t Pe ri od" shall have the me aning se t fort h in Sec tion
0110 s1 /!t0lll l f.O l ~8/.:11U1fi 7.3 1)09
J. "Default" or "Event ofDcfoult " shell h"vc the 111c,111111g i;ct liirlh in I 1.1.
K. "Defau lt Ratt:" i;holl mean int ere st .iccru mg ;1 1 Ili c rail: equa l 10 Ili c Pri111 L
l{nt c plu s three percent (3%). which rnl e s lmll bt· :u liu:-.1 1:d \,•ith cneh ch nn gi.. iu the I 1ri 11 1i;
Rntc. l-l c,w cvcr, i n HO cv1:111 shall th e JJ cfnult R:1 h: In; less 1hm 1 ll :n pc n:;c.:n! ( 1 fl'½,) pc1
11111111111 . For pnq,o.(a.:s of l hi s Lcm:c, "Prim:: l{nh :'· ::h:1II 11 1c :m lht ;iri m c r11 1t: :rs pir hli::l ... :d
i11 t l:c \Va ll ~IIT~ct .l nunrn l l l'l}w. ;J 1i1m: r:1k p .dd1 shctl hy !Ill! Wa ll Stna;I .l uurn;il
hcc0m ei: un:wnilublc, Lnmll urd s lwl ! ui:c Lh :: prim e rn lc us ;11111l1unccd 01 pu blishccl .\,y
!aic h oth er orgnn iz.n ti on or pu hli c:1liur1 <1.-. rca :m nahly ck:k:n 11i 11 i.:d Uy Ltu H.ll ord lo he
c<•mpn rnh lr.: lu th e pri111 1; r.it c m1\•, puhli s h1::d in the Wall Stri..:1,.:t .Toun,al
I.. "E!Tccl ivc [)me•· shall mc:111 March 2Z , W 11.
M . "E 11viro11 111 ~nt1.1I Lnw" sh:111 have the mcm 1in1; :;d fi1rll 1 in ~cc1 ion 19, 1..1 .
N "Excusab le Delay" sh:1II 111ca11 an y uf lhc li dln,vi 11 ;! e vl n\•; tha l pre vents,
(l rla:m, f'C'tard s o r hinclcrn :t part y'i: pl:r fo1rnam,;c: ()f'i(i. dlll ics l1 c1-.;111 11 lc:1 :,d of fi od : fi rr:
carlhq1 :akl:: llood; c,:p losio n; w:ir ; i1 :v 1is i 1111 , ins 111Trcl um; ritil ; 1111 ,b vi,1k:11 cc; ~:abot ag1:;
v:111 1l:1Ji !-;111 : 1n:•bil it y tu pm::urc or gcnc:·al slim ti 1uc of'la l>u1, 1;q11 ipn1 1,.:11 1, fil ci lit ics,
nrntc ri nl!-: cu· r:u ppli c:.: in !he op en mnrk ct; foi lurc of 1rn1 1-;JH1rlnti1J 11 ; !:I I il.1.;.,;; lc1 cl\out~; an y
111 11 tcri11l cl cl ny c;i u :,;\;d hy I 1111cl lorcl wi1 l11111t f;iul l t11'Te 11 :1111 ; or :my d e la ys drn: 1n causes
l1l,:}'01td the con\ro l o l'Lnrnllord an d willwnl i1 ~: f:11111 or 11q;h·
I'. 11 fm pn1Vl ;!llt:nt s" shnll 11 c1111 1.hL· lh,ililin f~f• :ri d ;,ny o tlic1 imp ro vc mcnl b
con::t rm.:kd n11 Ili c Pn:1 11i s l'S .
(). "l11i tin l Tc1111'' sha ll 11 1c;111 1h n~,~ humln.:d (100) mont hs fio m !he B,1 sc
H cnt S 1:1r1 f'ln t1 : iis more sp ::c ili c:dly Uc!:c.:1iht:d i n 8<:ct ion 1 .1.
R. "l .:11 u.Jl ord'' i!; l111 1;lcwoodl:vl cLc.llan lk,-;c rvu ir F1,und,1 Li1111
8 . 11 Lcw.;c hol d Murli;a gc" shall ha ve lli l· 11 1L'.l 111ing si.:t fo rt h in 18 .1.
T. "Lcus choltl Mon ~ageu" s hull have 1l1 l' mea ning se t forth in 18.J.
U. "l.cnsc Year" sh"II have th e mea n ing st:I forth in Sec ti o n 3.1.
V . "M cmor:111dl1m or Lease" sh~II hav e !h e mci ming se t for th in 17.2.
W "Mon etary Dclitu ll " shall have th e 111c111:;:.iJ ,ct fo rth ;11 Sect ion I ·t I
X. "No11 -Moncl a ry Dcfi 11 1lt" ~;imll have th e mcani nr, <.:r.l fi,r1h i11 Sc cti1111
Y . ·'Perm illc:f E>:ccptiorn," shall m c:ln the titl i.: excepti o n~ se t frmli 0 11
Exh ibi t D atlached he reto .
Z. ·1Prcm iscs " shall li uve lh i; 1rn:ani11 g scl forth in 2.2 .
UUU1/!.I J .. H lltJ Ul )ll/.llllSJlbi.J i OOJ
AA. "Real Estate Taxe s" shall mean all taxes, however named, assessed ,
levied, or collected, whe th er on an 2d valo rcm basis or oth er taxi ng method on th e
Pr emi ses, lmp rovt!menl s, Bu ildin gs , ond assessments for land , bettcrment n, and
improve men ts th at arc levied or assessed on the Premise s o r the Improvemen ts by any
lawfu l mnl10rity , as finally determined i11 acco rdanc e wi th law , net of any a pplicable
ab atements, refund s, or rebates .
BB . "Related Entity of Ten ant's Deve lopm ent Partner" shall mean an entity
Tt:mmt's Dc,,elopmcnt Pnrt nc r ow ns, co ntrols, is con trolle d by, or is unJ cr com mon
co ntrol.
CC. "Reul" sl mll 111ca11 th e a 111u1111t set fonh in A rti 1;lc 4 .
DD . "Si te Plan" as refe rred to in Scction 2.2 .A and atl cc hed hereto as fxhihit
EE . "Tem.nt" is Benj amin Frm tk!in Acudemy Projec t Developm ent , LL C, and
its pc.nnittcd s uccessors <.'T ass igns.
FF . "Tenant's Development Partne r" shall mean a ccmr,any th at has en tered
or will enter into a devel opment agreement with Ten ant or Tenant 's aflil ial e for th e
purch:1 se1 development , const ru ct ion , :ind operatio a of charter sch ools.
GO. "Termina tion Parce l" sha ll mean th e parce l of land containing 2.675
ac res referr ed to in Section 2.2.C .
2.2 Premi ses.
A. Lease of Pr emises . In consi dcra ti oa of lhe covenants and agreements
conta in ed herein , and for othc, va lu abl e cons id eratio n, Landl ord hereby leases to Tenan t
and Tenant he reby lca5es from Land lorc.l, upon the folluwi11 g lerrn s, s tipu lation s,
prm•is'o ns, and conditi ons , th at ccnain rea l prope rt y con.sisting of! 0 .13 5 acres loc ated al
th e Soat hwe sl co mer of Plaza Dri ve and Grecnsb oro ugh Drive, Highlands Ranch ,
Dougla s Co w11y, Colorad o, CO Lu ce nt Boul eva rd and Plnm Valley Lane, more
particu larl y describ ed in Ex hibit /\·I atta ched hereto and incorp orated herein by thi s
re fe re nce ("'Premi ses"). ·nic locu tio n of the Premi ses is sho wn on Exhibit A-2 hereto
(t he "~ite Pl an ").
B. Titl e. La ndl ord hr.reby warr an ts to Ten alll tl rnl ii hos good, mark eta ble
and insura ble fe e simple titl e 10 th e Premise s, fre e and clear of any m o rtgag es, pledges,
li ens , and oth er encumb ra nces, subj ec t onl y 10 the Perrnillcd Exceptio n s.
C. Partia l Term ination Righ!._Th c Tenant sha ll have the ri gh t, up on wri ucn
no:ice to Land lord no later thnn April I, 2016 , tu rernc ve from th e Lease a porti on of th e
Premi ses, con sist ing of2.675 acre,, described on Exibit B-1 and de pi c ted on~
atuched heret o and incorporated herein by th is referenc e ("'Te rminati on Parce l"). Th e
removal of the Termination Parcel fro m the terms of the Lease shall be effect ive. as of
I I :59 PM tlt c last day of tho 60'h month follo win~ th e Base Rent Start Da le. As•
condition of Te nant 's rie,ht to remo ve 1hc Ter min ation Pmccl , Trnant s hall cxecu1 e an d
0 30l/~0l81 6 .0 l ~6/~11127 67 ., 1009
deliver to La ndl ord nn Ame ndmr111 to lhe Mcmoran:lut n of Len se, in reco1<l nhl c form ,
111n cncl ing lh c desc ription l')fth c Prcmi scs.J n th e event Tcn;rn t exc rc isc:11 i1s I i1 _;ht tu
1i.;111 u vc 1\i : Tc1rn inativ11 Pored , th e Uusc lt c nt :,h ull hi; udju slt:d us p iovi cli.:tl 111 ~Cl :l ion
4 .2
l~xe epl as 111h1:rwi se c:x pn·1:s .y prov id ed l1 crci11 , 1h1.: Pn.:1uisv: arc be ing lca!:L·d i11
I heir U!i-i i: conch tion . Ex cc pl fo r l..:rnc ll ord'r, rcp1 c~c nt n1ions 11r<I w:11·rnnt ic1: cx p1c:mly :-.ct li,r1li in
tlii :,. l.,l:ll ~c , 'l\:na1n ht,;1d,y waivcs , 1dc.i s1.:s, llC ttuit s a nd furc vc~ disc luir gc s I ,a rn ll urd ui a l its
o nit.:er~, c\ircctt irs , ~h:irch o ld crs. cmp loyc:cs, a~C tll 5, s ucccssm s :i nti a~"i n\i , o fo11d fr o111 any nmJ
11 11 ,.._1,il s, ca1 1scs o r :1ctior., cl11i1 ns, dcm a1 uls, da111a gc s (a ctua l rn d pu11i ti\'e). losses. c,1~ls,
li :i h i iti,~'i . a11il expenses, inc hH.!ing ntt orn c y-:' fr.<'~, n f smy killf l 0 1 rn1 1lll't , h law o r in equit y,
k1111 \vn or l!ll knu wn, whic h T e nu nt sha ll or may ha ve or a c,1uiru or po.;:;C;,!; in uny w11y direc tly or
11 1(1i1 c<.;t ly cmmcc tc d with , based upo n, or nri s in g out uf I .n 11:llrn cl':; 11 : c, 111 :1i111 r..:11m1cc , le asi ng,
11w1 1cnd 1ip, 0 1>cr ati oi1 1 nnd demoliti on Cl f imr ,ovc111c 11 1s 11p c111 1l 1l: l'1 c1111 scr: p 11 ,11 tu 1hc 1•:lll·c11vc
;);1 lc l.1 f thi s I .cr:!=i c; or (ii ) the condit io n (inc 1ud i11g c11 vii o 111m:11l 11 I cn 111fiti1111 mu l s ln:cl111 al
:i 111c::~:), stri tut;, q ua lity , or nature of lh c P:-cm i i:c!.. Exccpl a!. 0 1l 11;1wi •::: 1:1qu r~d y p 10 \1id<·d
hc1 ci 11 , it is th e inte nt io n of this Lcnsc tl 1111 any 11 11 d a ll , C!:1>o m:ih il ih 1.m 1111,I 11 hl iG,:i lio n:1 of
l..nncll u rC1 nml uny ancJ a ll ri ght s or cl11 in1s of'T e111111t uga in sl I .,111dlo1d i t:, s1 1\;l:e•::;11 1 s :11 1<.I m-::i gns
and :1l'f1lim cs , ar ising hy virt ue of lhc phys icu\ cl111tli tion of the l'rc mi sc s, nr c 1,y lh 1:,; rcl cwm
dccli 1n.:d null :in ti vo id m id u fno prc~l:nt nr fu111 n.: c ff Cct :i s It> M 1d 1 ;lal'lics .
2 .4 .IJ)]jlf'O \I C!llCII IS.
·:·cn:1111 , al it.; :;o lc cc,:;t nod ,::-.pl.!11:1c, with iti: nwn fl 11cc: ,,r lh11sr..: o l"it~ l.!Oll lt ,1c l urs1
r1111y u 111 !>t11 H,I l111 p n 1 v1.;11 1c 11 ts u 11 lh1..: P1 1;11 1i!i•.:!t, P1 irn lo c111 11 111c 11 i;~111c 11 111 l't.a ,11 ::l ri1c ti n u1 Tc ll lll ll
s hall p ro vid e Landlord wi ll, cv idcm:c Pl lhc ava1 l11 bil ·1y n r :;11 1 fic1c 111 fund !. I pny lo r :he
c:.:timn tc c.l cost nf co nstru ction , i11cluclin f.! n:,rd cos ts a:ul so ft co!:ls, whit , cvi dcrn.-c sh,11 1 bl'
re as onably sati!;far.to ry to I .. 1ndl o rd. All nflhc lmp rnv1 :111cn1s "II ,II c fl1 ,, 'y i11 ;ill res pect s wi th
all :1p p licab lc govc m mc n1al req uircm cnl t;. L:mc.Jl o1d :tc know lc<l gc:; thu, ·1 11 11 11 1 1n uy subl ca :;c
pv:t i,11 1s of the P1 c111 is cs lo s ubl e11a111 :-: lo the cx lc111 p:;n 11 i1u.:il l1crcrn 1dt:r1 \~h o may co ns tru c t :hcit
own I m provcmcnls. However, the parti es ag,rcc th at 11 otw1t hsta11 d111~ s uch nrmngc mcnt~. Te nant
,;ha ll r e m ai n res ponsible to La ndl ord to snti sfy the o bli gallon s of Tcnm ll unde r the Leas e with
n :,..p1 ·c:t lo such po:1 iom:. of the Premise s.
2 .5 Tit le to Im ,rovc mcnl!i Fix turcr. n1H U.'£rn orn1I PromalY,
Notwith slamlinu 11 11 ythi11 g to th e con tra ry in thi s Lease , all Im prov ement s, nll
!'ix tu rcs incorpora te d in the l'1c i:1 iscs owned by Tenan t, a nd 'J'cnn nt's Pro pert y (defin ed lat er)
loc aled in . on , or ,il th e Prcmi~cs or oth erwi se constit uting p:1rt of th e Premi ses sha ll durinc th e
Tc:-1n be own ed by, and be.long 10 1 J'cnrmt All ht:11 c fi ls :md burd ens of ownt:rship o f' 1hc
foreg o in g, including, witho ut lim ilntio n, liHc, Cl .:p1 cc iati on, tn.x c rcdiis, nn<l ;tl l 1J lhcr tu x i1c 111 s ,
shall be u n<.I remain in Tcrn~1\l d uri ng th e Tenn . Upo n e xp ira tion of the Term , ony
Impro vement~. fi xtu res inco rporated in the Premis es or l'cna ut's Pro pert y re ma inin g on the
Premi ses shall be the so le prope11y of Lan d lord . Lnnd lo rd acknow lcd~cs tha t Te nan t shn ll have
th e rig ht, 5ubject to th e 1erms nf thi s I .<•:t c.,:, to i.d l nnd lt·.ase Im rrovcmcnts: to Tcnnnl 's
Deve lo pment Par tne r without L:u1J lord '!1 co nse nt ond thn t Tenant':; Devc lc pm cn t Pnrt nc r shnll
11110 .t/Sll)t ll l fi (':\Slll'IU/761 .J lL\19
hnve the right to enter the Premises for th e purpo se oi co ndu ct ing periodic insp ec t, ns 1111d oth r
purp oses M provided in a 1y developrr.ent agreement :in d re lnted docum entati on bt.:hv ec n Tc11 ru 11
and Tenan t's Deve lop mr.nt Par:ncr. ·
2.6 Easement s .
Landl ord and Ten ant ag ree , upo n the rcusor u,blc requ es t of' d tJtcr pn,,y to th is
Le:.ise, the appli cab le gov ernment al nge ncy, ora public utility, to exec ute clo •111110 n t:; whi cli 11 rc
rca sonn bly required to create utility easeme nts , tem porary co 11slru ctio11 ease r mall s, or 1.1 lhe 1
easeme nt s req uired to con struct th e JmprovemenL'i , 1miin 1ain an d servi ce rlu; l 111pmvc111c11 1~ ur
any oth er imp ,ovcmcnts to be developed on th e adjoi ning hmd s owned by Lr111 dlv1d , p1v viJ •J
sc ch easeme nts do no t unrea so na bly interfere "itl, ei th er part y's use ofth "i r pro pt rt )', Eac h
party will und ertake to obta in the co nse ut of it s mortga gee, if uny, to nny cnscmcnts required
undc:r ti Us 1mrngrapl 1.
2.i Land lord's Cooperati on.
Prov id ed u,erc is no cos t or liab il it y to Land lo rd , La ndlord ugrccs to cc,o p<:ratc
witlt Tenan t in connec tion wit h obtaining an y per mi ts and approval s fro m a ny ap pli cabl e
guvc nunental author ity that Tenant may clccm ncl:css ai y 0 1 J csi111blc in l;U llJl t::L l iu 11 wi1h
Tenan :'s operations on the Prem ises and Lan dl ord ag re es to e xec ut e nny dnc um cn ts th at urc
reasonabl y required by the gove rnm en tal authority in connect ion wit h suc h pe rm its nnd
appro va ls.
2.8 Possession .
Land lord shall deliver possession of th e !'rcmi scs to Tenan t on th e
Com mencem en t Date (as hereinafte r define~).
ARl'I CLE3
Lease Ter m and Conditio ns Pr cccdcnl
3.1 J'crrn ; l;Jfcctivc Da,!e; Comms .D.l<!'Jl c t
TI1c lea se tcr111 ("l11 it ial Tc r111 11
) shall cu m1111.:n\:.t.: u111l1 c ErTt:t.;l i vc Dall!
("Comn1t:nccmc nt Date"). Unless ex tended as provided lx ''"V, th e Initia l Term shall expire ut
11 :59 p.m. on th e las t day of the three -hu nd redth month fo ll owin g th e Base Rent Start Dat e , but
in no event Inter th an September 30, 2036 . For pu 111oses of thi s Lcu sc, the term "L ease Year"
~hall mean c:i ch twe lve ( 12) mon!h period begin ning w1 th e fir st da y of til l! mo nth fo ll ow in g lhc
iss uance ofa Ce rtificate ofOccupa!!cy, bu t in no even t lat er th an October 1 , 2 011 , and the firs t
day of th e same month of e.ich yea, th ereafter .
3.2 Exte nsi on Op ti on.
Tenant shall have an op tion 10 ex tend the lea se fo r live (5) uddilional consecu tiv e
temis, each con sisting of ten ( I 0) yea rs . Enc h ext ens ion op tion shall be on th e same term s and
condit io ns as se t fort h herein (th ere shall be nn op ti ons be yond th e op tions granted in th:s Sec tion
2), exce pt th e Bo se Ren t sha ll be adjusted fo r in crcu.:;c5 in the Cm,•;iun cr Price In de x as prov idc:ci
in Sec tion 4.2. Tenan t shall have t'1c right to exe rcise its opti ons by oro vidi ng L:mcl lord wrill en
DB04/!,DJ8I£ 0l'lll/4 1IP7fi7; n n11
n11ti e e exerc isi ng it s o ption to extend not less then one hu ndred cigh1y ( 180) dnys prior to the
c~pirntion of the then current term . As n condition of Tcnnnt ri ght lo cx crc i.o;c o:1c ur mnrc
up tin11 s to C.\lc.:ml th e h.:n 11 . .it 11.c ti11 1t.: ufthc giv ing of its noti c e n f cxcrdsc th ere :-:lwll lH: rn 1
1m c 11rccl l}vcnt of Default
4. I Lt,n!-:tn1 !.!tion _Rent.
A lff lCJ.1 ,: ,1
l(cnl
'l'cnanl sh<1II pay Four ·n,ousn nd Do ll ars ($4 ,(lOO.OO ) rcnl per mo11 1h
("Cv1 1s trn c1i o 11 Rent") du ri ng the co11 .'l tn1 ction peri od , acc11 1ing fr om the Co111111 c11ccmcn1 D;i tc
und c o nti1 rn ing unti l the iirs t 10 oc::o:· (n) the Inst dn y of the mnnth fOll owing '.he issuance of :i
Cc, Ii 11cu lc or Oecup:mc} or (b) Scpl ombcr JO , 20 11 C'Con slrnc lion ll cnl Period"); wh ic h
C,u1~truct ion Rent shal l he p:1ya bl c on or befo re 1h c twcn ly-f:fih (7'l 111) dn y cir l·acl1 c alc 11d,11
11t1i11tli , in arrears, co1mncnc in1; on the twcnty -fiftl1 (2 51h) dny of th e li n:1 l'ull l:al c11 d11r mo1 11h cf
tl1~· Co1t sl111 cti on Ren t l\:r iod . For r..:xamplc , if lh c C01n mc11cr..:n 1c.:11t 1),11<: J:: :v1 rnd i 22. 20 1 l ,
Tc1u11 1t s hnll mukc the lirs l paymcnl ofth e Co nstruction Rcn l o n ilpril 25 ,201 I and suc h
pa)'mcn t sha ll ine l11d c the Conslru cti1111 Ren, fo r ,\pri l 201 1 :in d the period frmn 11:c
C:11m111ci1 ecmcnl Dale through Mu rch )I , 20 1 1.
4 .2 ll w:e R£:.u.L.
Conun cncin g the Ji r:,t d11 y o f'U1 ~ <.:Hh.:nd ~1r 111011 th fo llo wing th e cud o r Liu.:
Con ~:truclio11 Rent l't:rio d ('"Bm;c J.:cnt St:,rt D:i lc"), Base Hc 111 ~hall :tt:cruc :is full,,w i.: :md shall
hc p:,y;ihll: in Lli 1itr..:d S1 :itc.-. I >o llar-; <'11 Il l' \11.;(o rc ·.1a .. 1wc11 ly-fil"lh (25 111) day of c1 :d 1 <:Hk:nd:ir
nio1L h , i 11 :irn.:ars , crn11 111cm:in g '.he tw cn tv -fi fl b (25 h) dny of th e fi rst ~ilc nd;ir mu n th fo llowing
t l 1i..: r.;11d < ,r lht: Crn1s tn1 clinn l{l:nl l'crirn::
Months 1-1 2 follow i11 g Du se Renl :,;1:,n Dal e
Mont as 13-2 4 foll owing Ba se Rc nl Start Dale
Monlhs 2~-:l6 fo l lowi 11 e n nsc ncr,t ~tnrt Dnte
Montlw J?-118 fi1 llo wing ll :H;c llort Star t Dote
tl!!!!.lli!l
$ I UX ,0 (10
$1 2 1,000
$148 ,000
$ I 75,000
$ I 89,000
Ma 111hl y
$9,0 00.00/mo
$10.0 83.3 3/m o
$12.333 /33/ino
$14 .583 .33/1110
$15,750.00/11111
(Prov icl i;d Tenant docs JHll exe rcis e II~: lig ht IO lc 1111i nalc th e l...ci1S<.: as to th e Tcrmin:itio r\ Pared
as de scribed i11 Sec tion 2 .2.C)
Mom,is 6 1-72 follo wia g Ra s.: llcni Siar! fla te
Months 73 -84 f, !lowing Bas e Renl Stan Date
0NYl/!>038 16 0 1Sl!/•11 !1.2 11i1.3 T009
$202,000 $16,8 J:l .33/mo
$216,000 $18 .000 .00/mo
Months 84-95 fo ll owi ng Base Rent Start Da te $229 ,000 $ I 9.008.33/mo
Mont hs 96 -3 00 (or comm enci ng Month 6 1 fo ll o wing Base Rc ut Sturt Du te if
Tc nnnt exercised its right to terminate the Lease ns to th ~ Tennin otion Par ce l)--Rent s h:i ll hr.
adjusted as prol'idcd in the following Secti on 3.
In th e r.vr.n t Tenant ha.c; elec ted to tcnni nn te the Lease as to th e Tcnnim1ti on Parcel,
as provided in Sec tion 2.2 .C, the Base Rent , comme ncing the 6 1" month fol lowing the Ba se Rent
Start Date, shall be $189,000, in creased by th e in crease in th e CPI Ind ex (defined Inter) fr om the
pri or Lc,1sc Ycu r, with a minim um increa se of 1% an d maxi mum in c reuse of J¾ over the
previ ous Le ase Year amount, and the reaft er sha ll be increased as above provided .
4 . l Renl Adrnstmcnt s.
Co rmn er.cing on th e first day of th e ni11 ~1y seventh (9701 ) m onllt fo ll owi ng th e
Base Rent Starl Dat e (o r th e fir st dny of th e s ix ty fir st (6 1st) month follow ing th e Base Rent if
Te nant has elected to terminate th e Lease as to the Tennination Parcel.I, and as of the fi rsi day of
L~e month each twelve( 12) months therea fter (in eac h case , the "Adjusim cnt Date"), the Base
l(ent sha ll be increased t,y ,u, iu uuuut eq ual to Ll1 c perceutage increas e iu the C PI lmlc x (as
defi ned be1 w) from th e imm edi~tcl y preced in g ycnr, provided , however, such im~rcnse shall in
no event be less th an on e percent (1%) no r rnore th an L1ree percen t (3%) of the Base Rent of the
preceding )'Car. In tile ev ent the Temmt exercises its fi rs t exten sion option ns pro vid ed in Section
3. 2, the Dase rent co mmen cin g as of the first day of Lcnsc Year 26 (fi:-st day of the 301 st month
of this Lease) shall be increased by an amount equ al to th e perce ntage inc rease in the CPI Index
(as defined be low) from the Effec ti ve Date of thi s LcnSI! lo the fi rst month of Lease Year 26;
prov ided, howe ,·er, in no event shall the Dase Kent in Lease Year 26 bo less than the Bas e Rent
for the prece din g Lease Year. Commen cing with Lc:,.sc Year 27 and co ntinuing with eac h yen r
th erea ft er during any ex tens ion option , the Ba se Rent shall be increased as of the Adj ustment
Date by an amount equal to 1hc percen tage increase in th e CPI Ind ex (as define d below) fr om the
immcdia1 cly prc ;:cding year, prov itl t:<l, huw r:vr.r, such increase:: shall in no cvc11 t be less than one
pe rce nt (1%) nor more than three per cen t (3%) ofthr Base Rent of th e prec eding year.
As used her ei n, the "CP I In dex•· shall mean :
i. The Consumer Price In dex for nil Urban Consumers , Denv er, Bou lde r,
Metro Area -All It ems Index (CPJ-U, 198?.-84 equal s 100), publi shed by the
Urtit ed State s Departmen t of Lubor, Bureau of Labor Stati sti cs. If th e CPI In dex is
publi shed wi th oumb crs iss ued oth er thnn on a mon thly basis, th e CPI Index shall
be the CP I Inde x numb er published for th e dat e closest to the Com men cement
Date or th e applicublc Adjusuncnt Da te .
ii If th e CPI lrulex is di scontin ued , th e CP I Index adjust ment shall he made
usin g co mparable stati stic s on th e cost of livi ng for th e De nv er, Bo uldr.r
metropol itan area as com puted and pub lished by any agency of the Uni ted Stat•cs
Government or by 3 rcsponsihlc financial pcriod ica! or recogn ized 11uthori ty
selected in the reasonab le di scret ion of Landlord .
(1f,04/!,0Jl 16 .01!18 /4 18~167.; TOO;
4 .4 Ptiym cu t:..
Jla ,;c l{cn l s hall he 1wy;1h lc in mont hly imt11 IIJ 1H:11 ;!:, in ;11 tv;111 i;c 011 the twe1 11y-f ifth (2)11,)
d:1y of cm.:h cal cml:ir 1:1oi llh , al lh \: :ul d1c,;s giv en (or 1,:mdlorc! in Ar1 it:.li : 1 7 ln.:1cuf', a~ s11cl1
;u ld1 css ma y hr cl ,:in~t:d i 11 ;1cconlan cl' wit h /\rticl c 17 The Ha-.e He n! i:ha ll hr :idjn slL:d :1 1:
prm·i cl u d ah ovc i 1: Secti on :1.1.
Thi s l .. t::1 s~ i:; :t 1<.:t lc11sc . l:'.xa:pl as may he. ex press ly 1m 1vi dut! uth cr wisc i11 I his
I .cw,l:, :1 II t:11~;t s i 11 ~1l l'l'Lal i n uH 1nc r.linn w it h the 1:011 sln1 t:l io11 , 1•1 11.:ra Lion , m,,i 11 h.:11 :1ni.:c ;1 11d l\:w:i11 g
or the: l111pmvcm c11t i: :in d all co ~:t s in c urred i11 co11111..!c lion with u11d i11 1c l:il ion t:1 the Prc 111i::cs
:;hall bt: pa id hy l \:11a 11l. l~n .cpl :1 s may Uc cxp1cs:-;ly prn vidt.:d ,,thcrwisc in tlli i: Lease , L;111d lord
~:1 1:111 ha vti 110 uhligmion to 1nakc nny rcpui 1~, 1c pln cc nc11'.!'-11r 1cne wa l.s 1,f :i r y :ci11 d1 n:i tl m:: ,ir
dc::cr ipt ion \\lu.l :-:ocvcr to the Impro veme nt s or the l'n.:mi:;c~.
,ll!TI C U C S
'l'n x,·.s
A. IJ L11111 g, th e 1cn n or11i 1s Lcm>c;, Tc1::ml shall ass wnc.. Jl :i :,. hear , am.I
d ischu rg c un y :111d a ll Hea l Esla lc T :1xcs wit h res pect lo th~ Prcm i~c s, n1 1111 y 1u·•rt there.o f,
and all o1hcr lil :..-:c!-in nny m;m nc1· :1ppli1.:,1hlt.: to ur assessed a(;ai nst lhc l'rc111 i:1c:t (.'I'
Builcl i11gs or rmy pnrt th crco r, or ni;uins t m1 y of th e nmc hin cry, (i x1t1r s, cqt1ipmc 11t , ur
t,thc1 property or 1tc11 rn . 'J'c1rn n1 sha ll poy 11!1 Re ul Es lnll.: Tuxes tlircc!ly to tl rn tu xing
,rnth oritics nnd Ten ant s hnll be en.:dih.:d all rc imhurscmcnls nn nccc 11111 1 uf.:1ba tcrn cnts ,
refun ds, or rcbrites of Rc nl l~r.late. Taxe s du 1i1t(:! th l: lcrrn of tli i,-Lease 1.,11 1d lnrc l here-b y
n 11tl 111ri i'r.:."-Tr.non! t o fi le Hnd pursue any pro tes t of th z va b aticm o f lhl; Jln:mi !ici; an d
,,b:i~cnwnl pi.:tilio ns fo r nhntcmcnt of tnxcs for nny reason , il S Tenan t 111,:y d ci;11 ! lo lie
,q,p1o piiall:. L;:mllurd ag rees lt' cx c:::ute ,1n y Con n ofagrcc 1mmt os 111 ,ty be nec essa ry in
c o 1111 cc.ti m11l 1crcwith .
B. h: th e C\'Cfll lh c Prem ises arc now inclu ded in :i larccr tax p.irc.:cl owned
by Land lord , I .;.mdl orcl s h:111 t uk c ~uc\1 a:1i o11s ;is 11111y be ncccm;n ry to ma ke the Prcm isi..:s
a ;,o pm atc Ta x l1un.:cl. Tenunt s hnll co o:,crilt C with Landl ord in suc h ,1c1i o11 .
C. In the event there is .i s pecia l ass c!ismeut wh ich is m d mlc:1 wi lh 111 the
d c1initi o11 or Real Es ta te Taxes herein, nnd s uch asscss mi.:nl may b1.: pai c.l in periodic
in::i til llmcnts, Tenan t sh all pay such in suc h p1..:riod ic ini:t :1ll numt ~ cir may prc p:1y ,1r n:tin.:
th e 1n in c ip al ind ebted nes s on :my spec ial oss~s sirn.:nt tind Tc1rn nt s h .i ll be res ponsib le
on ly for those installm e nt s relatin g to th e perio d i11c iudcd withi n \h e h :n 11 or thi s Lcnsc,
b asc<l upon the maximum number of instn llm en ls in which th e sa me rnny he paid . In the
cvcn l of an y pro posed spcc inl ass es smcn l would provide for paymen1 ex tendi ng beyond
th e lcnn of thi s Lease (excludi ng und extension pe riod), un less Tcnnn 1 agrees 10 pay for
UU()4/!)0J6 16 01~8/4J 8l .1VI.J 1110!.l
all of such nss c.«mcnl. I .;i ndlnd shall havr 1hr right 10 partic ipntr in the proces s of
approvi ng or reje cting such assess ment .
D Landlord !:h:tll coopera!c with Tennnt 50 tha.t aJ! invo ices for Real Es totc
Taxes shall b~ se nt dire ctl y by th e taxing authority to Te nant .
E. Land lord agrees h) submit to Tcml.U! any iu vu it.:l'S for Rea l Es tate Taxes
n.n d noli ces o: speci al assessmen ts with respec t to th e Premises which arc .sc nl to
La nd lord wit hin thi rty (30) day£ after rece ipt by Landl ord . Land lord shall furni sh
Tcnnnl witl, co pie s of all No ti ces of Va luut 1on of the Prem ises which arc sc m to
Land lord wi thin ten ( I 0) days aft er rr;:.:e ip t the:cof and in sufficient t ime to ullow Tc11a11 t
10 dclcnni nc whet.her or not to co ntest any increase in Rea l Es tate Tax es or val uation . If
Tenant desire s to contes t such increa se , T, nnnt shall protest s uch ·1a luatio n or fil e an
aba tement peti tion w11hin app li cab le statu 10:-y time periods. Lsnd !o rd shall fully
coopera te wit h T enan t in nny !'.iuc h proceedi ng.
F. Lan dlord acknow ledges that the Pre mi ses may be eli gible fo r 1ax-exc mp1
sta tu s with th e loca l taxing auth oriti es that levy and co lle ct Rea l Estate Ta xe 1 and 1hn1
Tenan: (o r it s subtenant s) shall have th ~ right to apply fo r e tax ~xen,pti on in c01mectio n
widt th e operat ion of a charter sc hoo l on the Premi ses. Pro vided there is no cost or
li abi lit y to Landl ord, Lnndlord shall cooperate with Tenant in oblllining tax -exem pt
status fo r the Premises. If th e Premises are determin e~ to be e,empt from Real Es tat e
Taxe s by th e loca l tax ing aut hority as a resu lt ri f lh e ope rat io n of n c h a.rte r sc hoo l at th e
Premises, Landlord shall pass thro ugh to Tenan t such reducti on in the Real Es 1nte
Taxes, an d Tenan t shall nol have lo pay any Real Es tate Taxes so lo n g as such
t.:xcmp tiun n.:mains in phtt.:c.
5.2 l'roration of Tax es.
If the Tenn shlll ex pire o o any d ate other th an Dece mber 31st o f any year, the
am ount pa yable by Tenant during th e caknd:tr year in which s uch 1cnnin ati o n occ urs shall be
promt cd on the b1 sis wh ich th e num ber of d9ys from tl,e co mmen cemen t of s u id tux fi scal year
to and including said 1er min a1ion date be ars to 365. /\ si mil ar prorn1i o n sha ll be made fo r the tax
fi scal ye..ir in which the Te nn co mmence s.
5.3 Pers onal Prop erty Taxes .
Ten ant shall pa y all laxes charged agai nst trade fixture s, furn is hin gs, eq uip ment
or ,my oth er perso nal pro pe rt y belonging 10 Tenant. Le ssee may co 11t es 1 any such persona l
property laxe s, as ses sments or va lualion£; provi ded, however , Te nant shall do so wi thin the lim e
period pcnni tt e<l by app licab le stntutc 5.
10
r,~O .c./',l"!U,16 .015&,'41 SZ 767 l Tn09
AlfflCI..E6
IJtilitirs
ii. I .Ll.!ill.lY lJ .':agc, J'c11mll :•:.h al l a-:s1 11 rn :. hear. pa y, and di xch:ng l' :i s it:-; .~~1 !c :11111
Sl:;>aratt..: o bli gatio n ;,II nf'thc app li cuhl c diargi.:S !Ur all ulillt1 cs co nsumed 1111 l1 1l; l'rt..:111 1'.;~:s.
F.>.cc p l i11 the event of an cmc rgcnt y, nc ilhcr l .1111dl111d 11m Tt:11a 11 t s hall t.1k1· an\ m:li c,11 wl 11cll
!:lnll i11 1t·rr11p1 c,r i:11r.r fr:rr wiLh uny ele ctri c, g;1 s , w:.tL:r, :-:cw;.1uc. ,J t tclc,Jham: !-:t.:1 vi e..: 10th::
Prc mi::c~ o r to the a <ljoining prupc,ty ownc t! hy J.undl ord .
Alffl CLE 7
Us~, "ublc lli11 ~, anti As.~ig11111 t:nt
7 I lli~..1 Tena nt may use urn.I occ upy the Prcn:isc s lilll'in g the '1\:r m oftht· f .. ca:;c f<.1 r
al l I;, wli1I 11scs in accordan ce with till' rcquirc111c11l s o f' I hi s I .rns c ;:ntl n:1y cuve1wn ts, cond ilin11..;
:ind rc::tri c l ious 11nw o f rcc Nd , or hr.rn aflcr nmcn:lrd N i11 1pos,:d wiih 1'11 : p r in r ,_.,,r itten crn )'-:1·11 1 111'
l\:n,,11 1, wl1 id 1 c11 11:J cnt !il1 all 1mt h1,; u11rca i:onahl.v ,v ith 11t.:'.d CH' dd .1yc d.
7.2 f.}_filijg11m c111 atu l S uhl clt i11g.
/\. Tenant shall ll :iv c 1h e nght tu sub lcl :11/ or any p:irl o f th e l1rcm1 sc.'-w
assign th is 1.,c mH: 11pon l ,:111cl ionl ',,;; prior written c,inx nl wh icl1 ~;Jiall nu t he 1111rcaso nahl y
wi thh el d .
B . Notwi th~t:md i11 g rn1yth ing to the conlrary con l:iin ccl in S uhi:ec lion A
ab o vi.!, .111d pn•v idcd 11u u11 La 11cd E vcn! uf lkfod t 1hc11 cxisls, Tcu nn l :,;hall h.1v1..: Ili c 1;~~111
to :1s~a gn the Lcni;c and rmy llll !)l'OV ~mc ut:-; with 0 ul J .amllord'i; prior wriat..:n consent lO
any culily who 1) 11s~11 mcs tli c 1)h \ ig;1t in11 s •Jf th e 'I c11ant under (hi s I.case,?.) 1.:mcll nrd is
p111vidcd wi(h i1 co py n flhc ai :.;;1g nrn cn1 m d as.•:1111 .ntio n.1) .,uch c illil y h:,:, net liq uid
a:-::-:e ts of 11ot lcs i: tl1 :111 two )'L'ars' Rt.:nl as o f th..: c11d l•f th c c.i lc :Hlar 1111111th pn.:cc cl in r, tl1 c
111c,11lh during whic h 1!11)' :r.1L:h 1:1s:-;ig:1mcnt bccomc3 c:t'cctivc; ,i11 d 4) s u1.,;h c ntit :· lms ,\
bo ok net \.V Ol'fh of not lcsJ; than o ne ycurs' RL:nl ill 1t 1c t.:ntl of thc ca lendar 1nu111 h
prccedin!J th e nwnth during which any such m:s ign mcnt beco mes effec t i ve. Al\. w;ed
herein , th e term ncl liquid nsscts s hnll 111 r nn (;1 ) 1111pl cdf!Cd ;md unrcstriclecl cas h1 (h)
1111µlc~clcccl nncl un rc.c;lric t(:d lm11k dcrnsi l!-., money rn ar kc l f'lmd c; :md 11cgnti:1 hlr.
ccrt i fic.1tc s o f deposit which m :iy l>c wi thd rawn without pc:nah y on dema nd or wi th in
1lii r1y (30 ) ch1y~ un cr th.:nwnd, nml (c) LI~ Go vernmen t 11nd/or other readi ly murkctobk
11nrc~tr ictcd sccuri tics va lued at c urrent mrir l<ct value. 111 the ev en ! Tcmmt assi gns the
Lcdsc as provided in th e foreg oing sc 1,tcn t;e , Tenant s hall be imm cd int e ly and
aul rnnali ca lly rckascd fr om all o f it s ob ligati ons under thi s Lease from an:! after the
cffcd ivL· date of s uch J\~s ig111 11e 11I rmd A!:S\1 111pti o 11 .
C . Notwi th stun<l ing uny th ing to th ::: L:Olltrn ry con lai1.::d in S uhscct ion A
abuvc , Temrnl s hnll hav e tl1c rig ht lo ass ign th 1..: !f •si.; rnu ! ;111}' 111 ;)JUW1111 ;111 ~ wi tho ut
Land lord's prio r writt en consent to Tenant's 1Jcvc 1c ,p mcnl 11:H'.llc!· or a l{c la tcd l!ntil y of
Tc nanC s Dcv clopm ei~t P:11 111cr, JHu,1 i(h:'l I ) no u11 r urcd Even t of Dcfa11lt th i;n cx is L'i , 2)
Tc nnn t 's Dl·velnp mcn l Pmlm :r/r~da1t·.<l F.nt ity ofDcvc lnpmcnl P,ir!m:r ass 11111 r\,; 111,~
ob ligation!: of the Tcnnn t und e r thi s L.rase, 3) L11hl lord is pro,1id cd wnh :1 cop)' of th e
as~ig n 111 cn t .md 11ss ump ti on) nnd 4) T ..:nant1s Dl·vc.:lu 1,mcnt Partn er ha s c.:xcc ulcd ,1
I !
{'1 00-l/!i0JR16.0 l !i8/J 1827 (,1.3 TOl 9
cons tru cti on comp leti on guaran1y inn fonm muluolly agreeable 10 Tenant 's
lJc\'e lopme nt Pann er an d La ndl ord . In the event Te nanl ass igns th e Lease us pro vided in
1he foregoing sen len ce, Tenant sha ll be immedia1e ly and ou lomo ticoll y releas ed from all
of its obl ig ation s un •Ja lh is Le ase from and nfler the cfTcctivc date of such As signmcnl
and Assumpli o:o .
D. Notwithslanding anything lo !h e co nlrary co nt ained in Subscc lion A
nbovc 1 Te nant shitll h:1 ve th e right lo as sign th e Lease and nny Improvements wi t•1 ou1
Landlord's priOJ \'Tittell co11 se11t to a sc hoo l occ upyi 11 g uml upcri.l tin g from the Premise s,
pro\'ided I) no uncured Even ! of Defaull then exisls, 2) a ccrl ifi cale ofncc 11pa ucy has
been issued fo r thi: lmpnwements, 3) th e schoo l a.ss urn es !h e obliga ti ons of 1he Tenant
und crthis Lease, aad 4) u uid lord is provid ed wi1h a copy of the assignm ent and
assumption . In the cv~nt Tenant assig ns the Lease as provid ed in the foregoing
se nten ce, Tenan1 shall be immcdia1cly and automatica ll y released from all of its
ob li ga 1io 11 s un dcrthis Lease from and nfie r the cffeclive dale of such Assi gnm enl and
Assumption .
E. Noh1ilhs1w1ding nny1hin& IC !h e con lrar)' con lainccl in Sub sec ti on A
nbovc, Tcualll sliall l1avc the right lu as si gn lh t: Lease am] any Improvements witho ut
Landlord's prior written conse nt to the original Tenant of thi s Lease (i.e., Rcnj arn in
Frank lin Ac.idemy Proj,:ct Devel op ment , LLC) or its affiliates, provided I) no ,mcurcd
Even! of Default then cxisls, 2) a cert ifi cate of occupancy has been issued for !he
Improve men ts , 3) !he original Tenant or its am li ate assumes !h e ob li go 1ions of the
Tenant wid er 1his Lease and 4) Landl ord is provided with a co py of th e assignment and
assumption . In the eve nt Tenan1 assigns the Le ase ns provided in the foregoing
scn lcncc , Tc nanl sh all be immed iate ly and autoum licully released from all of its
obligatio ns under this Lease fr om and after the effective dal< of suc h Ass ignm enl and
Assumption.
F Notwilh stand ine anything lo lhc co nlrary r-0 n1 ai ncd in Su bscc 1ion A
above, Tcnanl shal l hav e 1he ri ght 10 sublet the Premises and any Improvements 10 th e
following panics wiL,o ut Land lord 's prio r wrincn conseni provided no uncured Event
of Default then exis t~ nn d th e :mbtcmrnt nc .. .o wlcdgcs that its ri ghts urc s ub_icc t to th e
knns of 1hi s Lcase :
u) A schoo l occupying nnd opera ting from the Pn:mi scs, prov ided
Landlort is pr0vided wi th a co py of 1he sub lease.
U) Tu th t vrigi11i..il Tc11a11t uf lhi s Least:. (i.e ., Bc njar11i11 FrankJ in
AcJdcmy Projecl Development , LL(:) or its affiliate in !h e even! !he 1.cn sc: has
been assigned lo Te nan t's Development l'urtn er as provided in Section 2.0.b)
above , pr ovided Landlord IS provided with n co py oflhc su bl ease .
G. Any assignm ent or sublelling shall be cffec1ive only upon delivery 10
La ndlord of an inslrumenl effec 1ing an ass ignmenl or sub leuing of thi s Le ase by Tcnan l,
c,ccutcd by Ten ant and the ass ignee or su b le ssee . Eac h ass ignee sh al I agree to assume ,
be bound by. and perform all 1err.1s, covena nts . and cond iti ons of1 hi s Lease ,o be kep i
and pe rfom1 e<i by Tenanl and whi ch ari se nfter 1he effcc1 ivc dale of 1he as signm en1.
12
011n11/'i01111c..0 11,1J,:1a ~1,1 .1 ruo?
1\rl('.r executi on o f"tlu.: assigmrn.:m ur s uh)c11 se , Tenant will fo 1wanl II co111pk:1 r.:tl t:l•µy
tlierco r to Land lo rd .
,\l!TICLIJ:H
I l111 e 11liur1ally ()111illl:1!J
AllTICLlc 9
M cc ha II ic s Lieus
9. 1 Lie n;,. Ten:m l ch all promp tl y JKI)' when ciuc th e entir.; cos t or all work don t 10 the
l'rt:m i::cs by or at the requ csl o r Tc11a11t mu! Tcnm1t shall kccp tb e Premi ses free of I icns fur lalirn
,1r 111:-itmiak Shm1 ld rn echnn ics ', mnte rinlm cn 's, or oth er li ens he filed a~n i1 t:l tlH.: Premises ,
T c na111 sh nil cu:J8C the ii cn to h~ cnr~c ck~d imd disdmrgcd of record, or shnl! lik~ a bnn d in
s11hstitutio11 of lhc ~ nu :ch:\11 ic'.'; lien in ;iccnrd;mc.e wi th .the j)fflVi .:;ion s of"('olnracln Rcv ist:d
Slnl u le ]8 -22 I'.\ 1, !d..t ,\'t:{J~, withi n fiH·!y.fi vc ('1.5) clay:: ol' Te11un l ':: n:t:~:ipl of' l h 1t icc of' ~m;b li en.
1-Jo t w ill t aanding Ili c f1,n:goi 11 g, T .. :11 ,1111 111:t)' cu11 k s l, i11 go ud foi !h a11 d wi ll1 IL:,1Sn 11 ulilt.: d ili gc,,:m.:c.
lhc \·:.,li dity 01 · t111 y !i l11 ~h lien or clai med li en, prov1clcd that ·1•c:m11 t slm l I givc,,: lo 1.a nd !rnd ~:ud1
:a.:c 11rit y ns Lnn1llon l 111:t)' n:aso 11 :1bly n;qucsl lo en s ure th e p;1ymc11 t ol'nny amounts clnim ccl. If
thc Tc11ant ccm tc ~a s :, li c11 or ..:.\:1i 111 c.-d i;,.-n , llil!ll Lm fitli1l cic tcn11 i11 ::li o11 of':lw lien or clai n1 ed lien
1h c 'l'e nunt shall i.:.i 11sc th e lic.;n 111 Ile rcl c.;ai;cd 1111d 1 in (he c v cn l o f m1 ;1d ·1c :·sc j udi;mcnt , :m{i !)fy
Sll Gh j 11<.l ~mcnt .
Nothin g in 1his I .r.asr. sim ll In : r:n n .o,;l n11'.d ;1s ~ivi ne, T r.n;1 1U or ;my rnhcr pr.rson an y
right , powcl' or m11ho1 :ty It• net w; agen t ,,fo r to con:rncl fo r, or pe rmit th e nmc.k:ring or, any
:-;i.;:·viccs or 1J1c '.'u rni sb in g o/'any ma ler i:1\s in s w .. :h 111a111 n:r as wou ld gi ve rise.; io !ht.: fi li ng of :my
mc.:cl1 ~mi cs' li ens or other daims :1gui11s l th e !er u ~· th e l1 rcmis cs 01 th e 1111prnvc111c:1ls th c rcrn l.
Lm1dlord shall have the right at all 1""so11 nblc times to post, nnd keep pos ted, on th e l'rcmi scs
any 110 ticcs whi ch Landl ord m11y de ~m necessary for the protc cti ,n of J.an dlorcl nnd it~ inter es t in
th t.: Pre mis es nnd th e i:n provcmcnt". th ereon from !lh:ch 11 11 ic:-;' lie n~ nr oth er cl.1 in1s.
ARTI CLE 10
Ind emnity anti I11 s11ran cc
10 .1 lmiL·mn ity . From :mci nfl cr th e Effcr.li v~ l);i tc.nn<l co111 11 rnin(j il l ;dl times
thc.;1 ca l'tcr d ur in g 11,c.; Te nn l1 crc.:o f:
/\. ·rc nm 1l ass uinc!-i 11 11 ri~k or lus s, d:11rn1t~~. or destru cti on to th e Prc1 n i!iC S,
Im prove ment s, Buil din gs ;md co11tc11t s, or to :my oth er properly brou gh t upon th e
Prc mi!:r.s , lm 11rov cmc11t s. and 13ui lclin g hy Tc 11an1 , or by any nl hcr perso n, wi th or
w1lh 0\1l the c~nsc nt ur know ledge of Tcrn 111l. T(.;n:rn t here by incl emnifics and ag1 ·c<:s 10
protccl aruJ J cf1.;11d La11dlord from all such loss, dnnrngc, ur clc.s tru cti o11 in cl ud ing clc1im s
nnd caus es of net ion w:sc rlc<I agai nst Land lord .
B. Tenant shall ind emn ify and save harm less Landl ord from any mid all
clni ms, losses, damages, or expenses: on occount of inj uri es to or cl cnt h o f n.ny 1md a ll
13
OI\OI\/SOJn t 6.0158/o118 27 67.J TOO'J
perso ns wh omsoever while on th e Premi ses, und an)' and all loss or de stru ction of er
damri gr to the Pr ~rnises, th e Im provement s, lhc Ruild ing und any content~ and pc rs onul
property located up on th e Premi ses and 01111cd by, rented tu, or in the ca re, custody, or
con trol of th e parti es heret o, or any of Tenant's sub tenant s, ari sin g or growing out of, or
in nny manne r conn ected with : (i) any use and occ upanc y of th, Premises bv Tenant or
any s ubt enun ts for a Permitted Use or otherwi se : (i i) ca use d or occas ione d, i~ whole or
in part , by rnuso n of or arisi ng durin g tJ1c prese nce upon the Premi ses of th e pe rso n or
th e propcn y of th e Te nar.l, it s offi cers, employees, age nts, subtenants, renl e.rs ,
custom ers, invit ees, li ce nse es, se rv ant s, coa tract ors , sub con tractors~ mutcrio lm cn,
su pp liers, wo ckmen , laborers, an d the emp loyees an<l agents of each of th e fo regoi ng. or
any and all oth er perso ns, invited or otherwise, with or wit hout Tenant 's coruenl, whi le
on th e Pr emi ses ; (iii) nri si nr, ou t ofor rcs ullin g fro m Tenant 's deve lopm ent, sale or
marketing of ,he Premi ses and /or th e Improveme nts; and ( iv) any plans or designs for
th e Improv ements prepared by or on behal i of Tenant.
C. Tenant hereby indemnifi es and saves harm less Land lord and any of it s
officers, members, contracto rs and ag ent s fro m any and nll c laims , losse s, damagc-s, ur
ex pen ses , on account of inj urie s 10 or death of nn y and all perso ns whomsoever, an <l any
,u,d all loss or destruction of or dama ge to any real or persona l property odjnccnt to th e
Prc:n ises, c-aused by Tenant or any of it s emp loyee s, manage rs , men1ber s, offi cers,
contracto rs , subcontractors. malcrinlm cn, supplier s, workmen , la borers, subtenan ts,
rente rs, li ce nsees, se rvant s or age nts .
D. Th e foregoi ng inde mn iti es sna il not apply to an y injuries, death , claims,
losses, damages and expen ses to the ext en t arisinr, as a res ul t of any negli ge nce or
intentio na l acts of Landlo rd or its omcers, employe es, cont ract ors or agents.
E. Landlord hereby indemnities and saves harmless Tenant, to th e exte nt
pcnnincd by law, from any and all cl ai ms , losses, dam ages, or ex pe nses, on acco unt of
injuri es 10 or death of any and all perso ns whoms oever wh ile on the Premises, and any
and all loss or des truction cf or dama ge to lh e Prcr.1i ses, the lmprove m en!S, th e Auil din g
and a,;1 con tents and per soaa l propc ny locat ed upon the Premi ses and owned by , re nted
to , or in the ca rt. ctts lody, or co ntro l ofrhc panics here to, or any of Tenant 's s~bt enan ts.
uris ing from th e neg li ge nce or will ful miscond uct of Land lord, it s o fficcrs , employees, or
age nt s.
I 0 .2 fumcar a1~d Defend .
La ndlord and Tenan t further agree, that if it is th e ind emnifying pany , th at ii will
appear nod defend at its own expense . in th e name and 011 be half of th e inde mnified pa:1 y, all
claim s or sc its for injuries to or dea th of persons or loss or des tru cti on of or dam age lo prop ert y
aris ing or grow in g out of or in any manner co nn ec ted wit h or ca used or occ asioned by or in
co ru1ecti o n wi th its ind e11111it ics set fo rth in O. I 0.1 above .
I 0 .3 Insurance .
/J.. Prope n·/.J2!!.Q!!!M . Du ri ng th e per iod of construct ion. Tenan t shall keep or
re quire it J gen eral co ntructor to kt.~Cp, n pol icy of bu i ld ers risk in sura nee cov crir.g loss or
14
U00<1 /S0 38 l6.01!fi/4 18 2 /G7.3 1009
dmnngc to the Imp rovemen ts fo r the I\J II rcp lncc mcnt cost of all such construc:ion,
n~mm g Tenant's Leaseho ld Mortgagee, if any, as n loss pa yee. Durin g the Term and :il l
op licm pcri ri ds, Tcn anl shall kee p m full force and effect a po licy of11II ri sk, spec ia l fi11111
nr 1~q 11 i v:,l ~11I form prnprn-ly iip:urn nr.~ coveri 11 ~ loss ur d;11na gc tu l h l· Jl r cn1i -:c!, i n Ilic
.un ou111 n r1 :1c full 1cpllH:c 111 l!1 11 cost of'thc B\l il<lin g :i nd other imp1ovc n1 u1 1t:. 1111 tltc
Pm pc rly. in 1111 mno 11 11t n! lcn:ll ('CJ\1111 to th e: hnrd eu::t ~ nfcrnwtructio n. wi th ii 1bl11,~:ihk.
th:l l i.•: commc1cin lly tc ri ~o nnbk. i n li gh t f1 :T c 1,:11 1t '~ fiun:u;i.i l !;{1r.;11gl h 1 11:1111il 1g 'I c 11:11 ,t's
I.cusd1 olt1 Mun gagcc, if1111 y, ns u los!-: pa yee .
U. Liabi lit y !r!lill.'J!!J<;f. Durin g the Tenn , Te na nt shall kee p in lull fo rce
c.:omincrdul genera l liubil it y insura11 1;e or g:1rngc liob1li ty insurance (co ll ectivcl~'t °CGL .1'),
with bcdi !y injury and property damuAc cove ra ge wi1h respect to the l'rcmises and lJ11 si11os•
opcra too hy Tenant , wh ich shnll name L.1n dlorcl and, al I Jmd lord's wrill cn n,111 0,1,
l..:ind lo rd's Cir!.1 Mortgng ze os ndditiom1I i11 :mrccl~ as 1hcir respecti ve int erest~ 111:1y npp~ar .
· !'he limi ts uf nuch COL poli c) :;h:111 hi! not :c:::1 :lum .$?.,000 1fl0(1.00 crn uhi m:tl •;ing lc lim il
fi ir bod ily injury an d property dmrn 1gc, w it h :1 dcclu clili lc Iha ( is cu11111 1l·11..-i:il iy 1i.;i1s rn1.11J k in
I ight ofTc1 1a11 t's fi n:u,cin l strcne,1h . 'Ilic CCi L p.,li cy crnnbim;cl sin1ilc limi t frn hr,dily injury
and prop erty dam ugt; rcqui1 \!mcnt may he incrcuscd l>y l...:mcll onl, hu1 nnl 111nrc lhan <.111 cc in
any three (3) yc ur pl!r i ,ti, to a cnn1111c1t..:ia ll y prn clL::11 :ind l\:1tsonub !c ,1 11 10 11111, h,1:;cd upo n l he
t hen cwrc1u ge:m:ral li:1hility insurnm~c condi lio11s pwva ilini; m the 111 cll 11poli 1a11 lk 1wc r
111 :i r!,ct .
C Wn l'I,:':-'\'!:' Compem::do,\ lnm11·;1 m·t:, "fq !he t:X\Cl'l r..:cp1in·d by 11 :w , T rn 1011!
~;hall main tain work crn' t:ump1,au:alicm i11 '.a 11·111:t:<.· e-o vcri ng it:; cmpl ny ;.'.t:~ in stah 1tory limil s,
na,ning T ,;11 .1n11 s Lc,1:,-c hnld Morlg:ig cc1 i i a ny, ~1s a Ins :-. 1,a~'!...a.:.
I)_ ill!!lli!l.!llil u lJil!!ilil.l'., Tenan t shall m:1im:t i11 :11 all l!l n,;~; dur ing llu.: Term
g a:·ai;c lia bility in~uranc.c cr-vcring lia bi lity ai is ing out o l ll 1c u1,i.: ul (i) all J'c11a11l OWIK<l
veh icl e:;, (ii) al~ vehicl es hi r.::d or lcus<.·d by Tcua nl mlC I (iii} ail non·owncd :111<.I bon·owt d
vc!1iclt:s,
E. &!m.9.[~. All in sL rnil ce req uired hy lh i, 8cc tiou sh:ill br. will,
i llSlll\.m, lkensed or otherwi se perm itted lO ~o nd uc l lm si:1css in th e. state in whh.·.h lh e
P rc in i:.c!: ore lnc ~ncd . /\ny in:;ur;mr.e hcre u:t dl'r may be provided under Lilnnkct poli:.:ics nl'
i 11su 11111 t.:.e . During til e las t two lcosc ye ars of m1y cxt.;1 ,:-;io11 fulluwi11g tltc r.:x pir,tti on of
1hc Fir st Cxtcn1,io11 Op1 io11, :ii i propi.:ny ins ur:mi.:c rnai 11 1ain cd by Tenant pur s urm t lo
s 11 bp nrng,rap h 1~ o ! thh; Scct1on sha ll 11.11nc 'l"c na11 t as ms urccl and La nd lord as mldi lional
insmcc.l , ::is thcfr inlc rc:i ls may appea r i11 :1t:cordan cc with s~ctio n 11 J, n11cl, so lu11g ns 1!1l!
Premis es arc mon gu •cd \H H"S lllmt l o n mortgattc o f which Tc11n 11t ha s rc1,;ci ve::tl wri tt en nn1 ic<·,
s hall hr. su bj ect In n st:mrlnrcl mnr1 c agt,·. cl nn~,: in f:1vnr ofl..:111 J lord 's first 11101~1g:igci.:. /\II
insur:m cc maintained by Tcnnnt puwu .mt lo !.:Ubp:1r:1gr.1ph 13 of this Secti on sl1:1II nnmc
Tc1111:1t as in:.urc<.I und ( .andlo rd us 1.1ddi ti on:1 I in s ured, .is the ir inlcrcsts 1nay :1ppcm, and , !iU
loug ns tl1 c Prcn,i scs n,~ 11 1u1tgai;l!d p111 su.111l lu ~ 111 u1 lgag,: <1f which rc11m 1t lm1, 1t ccivi;d
w ti ttcn not ice, slmll he s ubj ec1 to u slancln rd 1110 11gagcc cluusc in H:vor or La11d lo1d ':; fi rs t
m ortgagt:.e .
F. l'olicv Pro visio ns . All po licies of insurance (oil ier t:mn sd l~ins urn nce)
cnumerntcd abo ve shall be provided by in suran ce ca rriers hav in g at p~licy eom mcrn :r.1111·1 11 "
IS
1);)()41[,0JR l G.ClSf/'11 11?767.3 T009
Best rati ng of no t less thall A-VIII : provi ded, howeve r, that if the rutitig of any s uch in su re r
falls below such leve l, such rating reduc tion shal l not consti tute a riefa ult he reunder
provi ded al l ren ewals of s11ch pol ici es sh al l be with caniers with a Best rating of no t less
th 11n A-VIII at th e time o f suc h renewa l. An inr.reHsrd cove rage o: L'umbre llu" policy ma y
be provided and utilized by eitl,cr party lo increa se the coverage provided by individual or
blanket poli ci es in lowe r amount s, and the aggrega te coverage pr01·ided by 11 11 such po li cies
with res pec t to th e Premi ses and Tenan t's li abi li ty hereunder shall be sati sfa ctory prov irlcrl
th at such po li cies oth erw ise co mpl y with the pr01is ions o ftl1i s Sec tion 11 .
G. \V civer of Right of Recove o • and Subrogation. Wit h r espec t to any loss
covere d by insurance or required to be cove red by ins uran ce hereunder, Landlo rd and
TcnaHl here by waive any and all ri ghts of recovery against each oll!e r for any )05:, or
damage to the Premi ses or the co ntents contained ther ei n, or for los, of inco me on account
offire or other casual!)'; and each party's afo resaid policies or in sumnc e shall , to the extent
avail ahle, contain rippmp ri all! pmv is ions rer.oe ni 1ine !hi s mu n ml rclcnse and ,i.-aivin g all
ri ghts of su broga tion by the respective insurn~cc ca rr iers.
H. E"i dence of In surance . On or before th e Commen cement Dale , Tenant shall
cau S<' lo be iss ued to Landl ord cert ificates of insurJnce evidc nci ng compliance wi th the
app licnb lc covc nnnl-s oftlli s Arti cle JO. Eac h suc h ccrtiucalc shall pro v ide that nt least tlii11y
(30) da ys' no tice of cance ll atio n shal l be given lo the certificate hold er.
ARTI CLE II
Damage or Destruction
I I. I Subj ec t to Landl ord's ri ght as provided in Secti on 11.2. if:he Premises or any of
the Imp rov em ent s arc da nrngcd or des troyed durin g the Initia l Tern, or ,my extend ed 1cm, ns
pro Yid ed in Sect ion 3.2 l>y a fire or other cas ualt y (''Cu.s ual ty"), this Le ase shall continue in
effec t, and Te nant shall cont inu e to pay tl1e Ren l witho ut abatement. Tenant shall remove and
dispos e of nil hazardous 1,iaterinl s in occo rd ai1c~ with applicable legal requirements and take
such ac tion ns may be requi r\.!d und er appli cabl e muni ci pal ordinances and other law!-. mies and
regulati ons with res pec t to any d,unagc or des truct ion of the Tenant's Im provements. Tena nt
shal l not have any ob liga ti on to re pair w1dlor rebuil d th e Tenant's Improv ements da maged by
ftrc or oth er cn:mrl h)' or cau :;e . Tt'-u::i nt !i hnll promptly provi de a sight ba rrier and shnll rcmC1v c all
deb ri s fr om th e damaged ?01iion of the Tenant's Improvemen ts end use dili gent effo rt s lo place
th e Prem ises in nn orderly and safr condi tio n. If reque sted by Lm1dlord sho uld Tenant el ec t not
to rebui ld, Temmt sholl , 3 1 it s so le cos t and c:,,:pense, raze and r~rno vc any remaining porti on o f
th e Tenant's Impr ovement s and fill and grade th e Pre mi ses in a safe and sig htl y manner as
existed <m the Comm encement IJ atc. or seed such porti on of th e Pre mi ses as desi gnated by
I.and lord .
11 .2 In the .:vc m 'J'cnu nt d l.:l:ts l u re pair and /or rchuild 1hc lrn provc m ~ut s, if th•: i.:os t of
such repair or restora1i on shall be le ss tl 1an th e in su ran ce proceed s pai d as a res ult of th e
Casu alt y, Tena nt shall be enti tl ed to retain the balan ce of such proceeds to th e ex tent not req u ired
10 be upp lieJ Lu uny Leaseho ld Mortgage . Tcna11t slmll cu 111p lelc ull wurk pi omptl y aft er th e
occ urrence of th e Cas ualty . All re plir and /or re storat ion work shall be performed in a good an d
wor~manlike marmer and shall be subject lo all prov ision s of this Lea se appl icable to
cons!mc tion uf the l m11ruvcrn cnts .
16
0 0o,\/!0)1:1 1ti UISJl,'4 18 21{,7,3 1009
l I .J In lh c even! a Casua ll y occur i and th e Tena nt el ects not 1t1 re pai r an d/or rebu il d.
Tc1..,nl shall give wriltcn notice to Lnndl o:·d within on e hundred lwcr:ly (120) dnys c,f th c d a11: n l'
Ili c C asu all y of su ch electi on, L.andlord shall hav e lh c opti on, exercised l,y wrill cn no ti ce lo
Tc 11:111 t o n o r before the. earli er of(i,) om· l11m d1 cc1 twe nty (110) cl a ys tollo w in g wiill t·.n nnti c1·
fro 111 T c nrmt o r it!: elec tion not to repa ir mid/o r n:builcl : o:· (b) tw~1 hundred !orl y (2'1 0) d:1yi;
f;))bwing th e <lnt c o f the Ca sualt y ifTu11111111 11 1:; fui l ccl l o cm 1m1 c 1H.:c rcp i1ir o r l'chuilding hy ::11 i.:h
lii lll: (i11 wld cl1 cusc 'J\;n:ull slin ll lii.: cl cc,rn:d Lo ha v1 : c lcc tt.:d 110 1ll11 cpa it o , rd lllild , lu (i)
<.:n minuc lhc Lcu)..c to the encl o f th~ th en cm rnm 11.mn, in whi ch case there ~hnll he 11 0 ah:1l1 :1 11 c 11t
of 1.;nt, :11 1d th c insur;,nct· pmcccds s h::11 b~ pn id tn ·rcnnnt except to the exte nt n:t~11in.:d In p;1yl1I I
and d 1sv harg~ any l..cascht1 !cl Mo1tg11 gc; [l l'OV icl etl how1..wer if th e C as unl ly o ccur:; :h1ri 11g '.hl: 1;i ._,
tw o (2 l ycm·, or 1l1c tl H.:n cu rTcnt term nnd Tcnunt has r lcctc<.I or is deemed t,) hav e clcc lt.:d 11 01 to
n:pai ·r n ;· rehnild, frJH\111 s h:1II h 1: c1 11i1lc ri to retain ll u: h:ila nr:~ of s rn :h pm rr.crl s In th e cx l~nl n01
req uired to be applie d t u 1u1y Lease hold Mortg ngc; !:t1ch procct"ds shnll hi.; use d to pa y the prc~l:nt
vulo i.: o f any Rent r('m a ining durin g the 1cnn of the: I ,rn 1::c an d 1hr c.o :;\ of removin g fl f the
I h 1ikl i11 i;s H1 1d h11 pro vi.:1111.:nt s, clc11 rini:; :.i f t,~bri s, ll:t ll ov ing !i,unclilli ons ;md 10otings , nmJ
1 csL 1r i n g 1•f th e rrc1:1isc s to !iUh!ilt111li 11 ll y the ct,nd iti on llm 1 c>;:sh.·d at the cni nmc11cc111 cnt of the
I .l·a•:c.;.~ lo lhL~ cx lL;lll tht.;n.; arc any 1\'111 :11 11i 11 g pn1l:Cl"lh:, such pro l:ccd s be long tn the ·1 cnnnt. In
th e .;v c 11t tl 1c Cas ualt y occ111'i; d t1ring thc lm:t t wo (2) yea rs of th e ll 1cn cUI Tcnl term an d Tena nt
l1i1 s c h!dcd o r is dccmc<l lo hnvc clcc 1ccl 11nt lo rc11air or n~bu ild . Tcmml shnll be o'J li gat cd.
rcg:1n !lc-•ss of th (• avnilnh ili1 y or i:u ffi cicncy nf :my ins11 ra11 Cl' procL~r d s, 10 rc 111 11ve tlu ~ l'uildi ng:.
a nd I mpmvcmcnt ~, c lmw d ubri .s , rcmovt. foundati 1111s a 11d fllt>t in gs, an :1 rc~:h1 rc lh l· Prc mi s1.:~ tu
~:11 hs1;111li11ll y lh e cond it ion that cx istc:rl nl tl u.: <.:u111 1m·n cc mc111 o f 1hc L\:w-a;.
Al!TI C l.ll 12
Ji:minc11t l)011rni11
12.1 'kli 11 ilin n ,,,I J akin;; and S11 hsta11tial l':r lo 11~.
For th e pu rpo se o f thi s Lc m;c , a 11Tak in1t sha ll mean any co11rl cnmnt1 o n or
1:xcrc i~c l)f th e power o f emin ent ll o1n11in by any u11U 1u rit y vc:acd witl1 s ucl 1 power or any oil ier
t:1ki11 g fOr p11bli r. use, indorli ng n priv:i lr. p111·,:ha st: ir: I ic11 of r.o ncir.rnn ation by rm rmthorit y ves ted
,N ith the powe r o f emin ent dom nin , th e "Da te o f Tnkiui ' !i hnll mcn n th e carli i;r o f th e cin tc upon
whi ::h titl e to th e l1rcmiscs or ony porti on I hereo f or uny 1i ght np purt cna nl thcrclo so taken is
VL:S tcd i11 the c u11dc111 11 ing m11ho 1ity u:· th 1.: Ll alt,; u1w 11 whid 1 pu:-;s css iun u flhc P1 .:ll!isc~ ur till)'
p,,rt io n 1hcrcuf is ta ke n by th e co ndcin11 ing auth or it); ,:nc l "Subs l::mti~ll y All of th e Premi ses"
shnl! 11 w Cl 11 so 1n 11cil o f tl,c Prc1ni sl~•; or th <.: ri ght s np pt 1rl emmt th ereto ns, when take n, lea ves th e
u11 l:1ke11 por ti on uns uil ii blc in Tc n;atl '!; ICil '.w nab lc o pi11irrn fnr th e co ntinu ed feas ibl e and
c 1:c1nnm i c ope ra tion of" th e Premises hy Tc n:uit fn, Ilic sam e pt1r po s~s ns immcdintel) prior to
s uch Ta k ing or a~ co 11t i.:1npl:1 kd herein.
12.2 ·I·c:1 1n:11 ':; Ri ,;!_1 1:; Upim Tak i11 i.; 111 8 11b:.tnnt i~l ·1·:1ki ng
l·'.nch pnrt y 11grt.;.c:; t<, furni s h th e o th 1;1 u co py uf m1 y nolicc of a lhl'catc11ccl or
pro pose d T ui:ing rcc civc<l by s ud 1 party . In du; C'(l:111 u r ,1 'fti ki1 1g of Suhs la11l ii.1ll y All o r the
l'rc mi s cs , this Le ase s ha ll termin ate and hoth L~n J lord a nd Tenant s hall be reli eved fro m all
furl h<>r o bli gati ons hcrcu:r der fr om and aft er ,he Dal e o f Ta~ill [!. All !l ase Renl and ulh cr s ums
pJy ab le by Tcnnnl here und er sha ll be appo rti one d un d pa id lh ro cgh an d inc lu dhg the Oa 1c o f
17
ooo,1r,u1 n 16.01sa1,,ie 21u1.J roo!,
Taking, nnd ncilhcr Landlord nor Tenant sha ll have any rights in any compens.11i on or damng e~
payable t o th e other in connection with such Taking .
12.3 Tenan t's Right s t lpnn Le ss Than Subs um1j11 I Tak..i!Js,
In the cvcut of II Tiling of less than Substan tia lly All of the Premi ses, R11sc Rent
and other charges sha ll be red uce d fairly and equitably in accordance with the portion
condemned or tuken, effecti ve as of the Date of Tak in g, and Tenant sha ll make all necessary
restoratium; tu tJ1 ~ l111provcmcnts so that the portions of the Impr ovements not 1akt!n constitute a
comple te ar chit ectural unit, and the proceeds of the award attribu table 10 the value of the
I mprovcments Taken shall be retained by Tenant.
12.4 RighLs Upon Temoorary Taking .
Notwithstanding the foregoing, in the even t of a Taking of the Premise s oruny
po rti on th ereof, for temporary use (specifical ly on e not exc ee ding one hundred eigh ty (180)
day s in ,lurnti onJ, with out ti1c taking of th e fee simple titl e th ereto , thi s Lcn sc s~all remain in full
fo re,: and effe ct, nnc l there shall be no abatement of Rent during such peri od. All awards ,
damage s, compensation and proceeds payable O)' th e condcmnor by reason of such Taking for a
temporary use relating to the Premises for periods prior to the cxpirn ti on uf th e Lcusc sha ll be
pnyahl e tn Tenant. All such awards, damages , compensation and proceeds for periods after th e
expiration of the Lease shall be payable to Landlord. Anything contained in this Section 12.4 to
th e contrary nutwilhstanding, a temporary Taking for any period in cxo..:ss ufunc hum.Ired dghty
(!RO) days may, at Tenant's option, be deemed a pem1anent Taking and sha ll he governed by
Sections 12.2 or\2.3 above , as applicable .
12.5 Award .
(a) The awarJ paid by the condemning uuthorit)'· (other than a Taking for a temporary
use) shall be all ocated 011 a pro rata basis between the fai r market value of the Premises and the
Improvement s as detem1 ined by the condemning aut hority or a court of competent j urisdiction .
(b) Landl ord and Te nant sha ll each ha ve th e right to represent their respec tive
mtere sts in each pro ceeding or negotiation with respcc \ to a takin g or intended tak in g by power
of co nd emn at ion and to mak< ful I prnnf nf th eir claims . Tenan t sh&ll have the sole righ t to
contro l the defe nse, prose'cution i; 1d sett lemen t of its claim to the extem the condemnation
proceeding or negotiation affects Tenan t's leaseho ld int ere st hereunder and /or th e Improvement s,
suhj ect to th e c.onscnt of any Leaseho ld Mortgagee . Landlord shall have the sole right to control
the defense, pro secution and settlement of its claim to the extent the co ndemnati on proceeding or
negotiation atli:cts Landlord's revcrsionary interest in \he Premises nod/or Improvements.
L:mdlord and Tenant enc h agrees to en·cutc ~nd ,tel ivcr tn th e oth er any in stnu::1ents that may be
reasonably req uired to efTectuate or fac ilit ate the prov isious of thi s Lease relating tu
con dcmuati cn.
ARTICLE 13
Defnult
13 . I Eve nt s of Tenant's Default.
t S
OD0.1/!.0.!lll f,.OlS!/~IS ;7(.7 ,) tll09
Any nf th ~ fol ln win£ occ'J1 r rr.nr.c..';, co rnl iti nns o r nets hy 1'cnnnt shnll (."O nslit uk :m
"Evcm ofD cfou h11 tmcl cr lhi :; l.1;.1:;c:
A. Fail ure lo l1uy l{c11 1;.J Jn.:m;i1 (i) Tc n:ml's fnil urc to nrnk c nny pa ymc nl of'
mn ncy n.:q 11i1 1.:d hy 1'1 1s Lease (inr.:l ml ine witl10 u1 li rn ili1ti on H:.'.s c Hc nl 01· Rea l Er.t;11 c ·1·:1xc~:)
(s:1h.ic;ct to Tcn.111 \'s rig ht of goo d fo ilh con tcs l wit h res pr.;cl 10 l~cal Eslnll.: Ta >.1.:S, a~; ~cl forl lt
i11 nnd ns limi\ccl hy /\rticl o 5), within ten (I 0) d11ys aner the rec eipt or w, itt cn noti ce from
I ,a nd Ion \ to Tcnual thnt s um ~ is overdue ("Monet uni Ucfnuh"), in wh ic h cw r.111 ,o.;11 ch
dd inqu cnt ,1moun t sh:111 ucc1uc in tc rci;t at 1l1c Defa ult R.1 te; or (ii) Tt.~nont 's fu}l11rc 10
ol,scrvc or pc1fo nu ,ui y other mate ri al pro vision of th is Lease with in thi rty ()0) d11 ys nf\cr
1 ccci pt o:· writt en 11 oticc fr n111 I ..n nd lord to Tcmm t spcci (yin g ~ucil dcfaull and dcm rmdi ng
lh .11 1hr. sa me he cu1rd ("N11 n-Mun cfon1 Default")~ prov id ed th al , i r such dcfuult cannot
with du e dili ge nce he wholl ) cured with in such lhii ty (JO) day pelioJ , Tew.mt :-i li..ill li a vl:
(;UCh longe r pe riod :i~; is rr..Jso nnbly ncccss ;u·y lo cure Ili c <!r.fm:lt , so long as Tcn:mt pmcccd:i
prn mpi l y 10 comm ence tl1c cure nf' sr.mc wi1hi n ~;11r.h lh ir ly (10) <i ny p1:1ind :uul dili ei:11:l y
pro::c cul t:!i th e cure 10 co mplet ion. In 110 l :\'cnt :;h 11 ll l.,1 111d lorcl bi~ requ ired to giw more than
one mr.icc 11f :, n1 011 ::1ary dcfau l1 dtu ing 1111y twelve (12) mo nth period, am t in ~he cvr.:nt one.~
!a1ch no tice has been give n, Tcna 11t shull he in dcfrn,lt if' a11 y 1xty111 c111 is nu! m:1dc when du e,
no notic e shall he rcq uir::d, an d intt.:rcs t !:ball (fl c, uc .ii the J)i;fo u!I ]{ tl\c crn rnn c1"1C i11 g ten
(10) th1 ys fr o m the dHlc s uch pi.)'111\.'lll wH:-.du.; 1111 1il p.,ic.l.
ll n a11 kl'IU!lliY Any pc1 i1inn is 'l ied hy or ne:i i l'sl T r n:1 11 1 u11dcr m1y 1,;cction or
cl mplCI' of the Fcdc ml Dn11ln 11ptcy Cod<.:, 11nd, in th i.: cu~c of' a pcli iion fi !L:d ;1g:i ins t T cnru 11 1
such peti tion !!: nnt di smis.~c<I within nim.:ly (:,JO) dny:-. :1fic 1 1hc cln lcn f f:uch fi li 11~.
C. ~o!vc1·t:)' '1'(.'1t:in 1 l1t:c111H l.!:-. in::nl~,.mt ,,,. tr : 11::fo rs prop(:rty ii ; fmud or
t...ll:dit u:-.;
D. A~s i 1 111 m:11t few Bcnr.ri of '.f1.~l lih ,rs . Ten ant inn kc.1: a n ass ig11 nw:1t for the
bc:,cfi t of credito rs.
f"·'.. Jic C\;ivcr'il!!Jl . A 1ccc i vc r is ap poin ted fo r :my o f Tcmml 's nss~ts :mcl s rn.:h
r.;crivc r:.:hi p i :: not dit:111 h:~c.d wit hi n ninety (90) dny3 th crcafl cr.
1:. Attatl.uHYl_l t. This Lcnsc or Tl•,nant 's interes t in th e Premises or an y pa 11
thereof is ta ken hy ;1tt achmc11t, r xcc ulion or other proc:c ~s of law, •u1d such al1 2chmcnt ,
. c xcc 11ti o11 or other proc ess h;is not been rdca scd wil1 1iu 11i11 c.ty (90) d~1y s thcu.:ufic r.
fi. l ,icn. Tc tl/lnl r11i ls 111 11htai11 :i rc :leasl'. of an y lir.n t1gn in s t th e: Premi se s as
req uired un der th e tcnns oft hi :.; f..c n5c, unl ess Tcmm.t is contcst in ~ such li en in a1.:cord1111cc
wi th th e term s of th e Lcnsc .
In th e even t th e ·1·cnant conti11l 1cs to pny Rc11l as rcqu irt.:<l untl c r tl1 c lcn11:: c1 f"ll1 !!. lc.1:,;1.:, nc ,
E,·1..:nt o f De fault shul l occur so le ly a:i c1 res ult of 'J'c11a111 's han krnp !cy, im ulvi.;11cy1 W:is 11:;rnn c11t fo r
bc m.:li t o f its creditors , or the np pomtrnc m of a rece iv er for any of'Tc.:1rn 111 '.s a~sc ts.
13.2 Lu ndlo rd 's ll cmcdics.
19
Suhjccl lo 01 e provi sions of' Scc1 ion 18 of thi s Lease, afte r the occ urrence of An
Eve nt of Defa ul t by Tcnnnl, Land lord shall have the ri ght lo inst itute fr om li me to tim e an act;on or
acti ons (i ) to recovi.:r tJm m.1gt:s (cxt.:l usive of ~011 s~4uc utial ur sp•;d i.tl U1urn1 !;~1)), (ii ) for injun cti ve
and/or oth er equi tub le reli ef, end (iii ) in th e eve n! of Monclary D,fitul l only, lo re cov er po ssess ion
of the Pre mises and tem1inale thi s Lease .
A. Mone tary Defaull . In th e event ofa Mu.1e1ary Default :
(i) Cou 1jpue Lc;1~. Landlord may, at it s opti on, continu e thi ~ J .c;tse in
full fo rce and effec t~ without term inatin g Tenant 's rig ht to possessio n of th e Premi ses, in
whi ch eve nt Landlord shall have the ri ght lo co ll ec t Hase Rcnl and oth er charges whe n du e,
in clud ing any sum s due for any opli on peri od for which an extension option ha s been
exerc ised, logc01cr wilh Lan dlord 's rea son abl e al10meys' fe es and interest at 01 e Default
RH tc fr om th e date such paym ent was due until th e d..i lc paid by Tenant . In the alt e,nati vc,
Landl ord shall ha ve. th e righ t, at it s opti on, to ma.1-.e an y pay rnent , such a.s taxes, oth erwise
requ ;rcd to be made by Tenant , in whi ch event such paym ent sh all not be dee med a cure of
Tc nanl ·:; dcftmlt , und Tenant ;,hall rcimbu n;c.• Lan dlord for uny such payment, togeth er wi th
rcasun abk allomcys' foes and iule.res l al the De fault Rule fr on'l the dale Lan dlord notifie s
Te nant that Landlord made su ch paym ent to th e dat e IA'llldlord receives such reimbursement.
Landl ord shall hal'c 01c righ t lo peacea bly re-e nte r the Pren1i ses, wi thout such re-e ntry be in g
deemed a tennin atio n of O,e Lease or an acceptance by Landl ord of a sUITcn dcr thereof.
Landlord shall also have O,e righ t, al it s op ti on, from tim e 10 time , with out termi nating thi s
Le ase, tn rclct th e Pre mi ses, or any part th ereof, with nr with out legal procc.s!i, as th e agen t,
and for the acco unt , of Tenant upon such term s and conditi ons as Landlord may deem
advi sable, in which event tbe rents received on such relctting shall be applied (i) first to the
reas onable and actual exp enses of such rcl etting and collccii on. in cluding without limit atio n
necess ary renovation an d alt erati ons of th e Premi ses , reason abl e and actu al atto rn eys' fees
.i1 1d any rct1s onabk and actual rea1 c.::state co mmi ssions an d w nsuhi11g fees paid, and (i i)
01 erea fi er toward pa yment of all s11nis due or 10 become due to Landlord hereund er. If a
rnfli cient amount lo pay such ex pen ses nnd sums shall nol be rea li zed, in Landlo rd's
exercise of comm crciali )' re asonab le l',fTorts to mi tigate its dama ges (which Land lord he reby
agrees lo make), !hen Tenan t sliall pay Landl ord any such ddicicncy monthl y, and Landlord
may br ing ru1 ac tion or ac ti ons therefor as such monthl y defi ciency shnll ari se and ncern c.
Landlord shall t1Cll. in any eve n½ be requi red to p:iy Te nan t any sum s received by L:mdlord
0 11 :1 rcl ctting of th e Premi ses in excess or the rem pro vided in thi s Lease , but su ch excess
shall re duce any ac cni cd pre.sen ! or future obligati ons ofTenrU1l hereund er. Landl ord 's re-
entry and rcl ettin g of th e Premi ses with out tcnnina tion of thi s Lease shaJI no t prcr.lu de
Lan dlo rd from subs equ entl y lcnn inatin g lh is Lease as set fot1h be low.
(ii ) Tc nninntr Lease . L;mdlord mny tcm 1inat e this Le ase by wrill en
not ie" 10 Tenant specifyin g a date th erefo r (tl1 c ''Tcnninmi on Date"), whi c h shall be no
soo ner than thiny (30) days fo ll owin g receipt of such noti ce by Tenant, and tl1i s Leas e shall
the n lem1 'na1e on tl ie dale so specified as if such dale had bee n ori ginal ly fix ed as th e
ex pirati on date of the Tcm1 , µrovi ded tl1al defa ult has nol bee n wholly cu red pri or lo the
Tcnnin atio n Da te. In the event that defaul t hus bc:c11 wholl y curc<l pr ior lu th e Terminat ion
IJatc, thi s Lea se wi ll con tinu e in full fo rce ond effe ct. In ti ,c eve nt of suc h lem1inali o:i ,
La ndlord sha ll be ent itl ed le rec over from Tenan l all of lhe fo ll owing as damages .
20
(A) Th e ·•wo rth at th e time of the uwu rtl paym ent" 1,defi ncd
lx:lowJ o f nny olJli guti on which Im.~ m.:cru cx l p1ior to the date of tcn ni natio n.
(U) T \1\: "wo rlh 11 1 tht· tim e of tl K~ uward p ,1y111 c111 " 11 f ll1 c
:111 11 i .1111 hy wl1 ic lt th e 1111p:1i d 1\0':c HL:i 1t t1 :1d a l. odwr d1:u-e ·:s wh id 1 w1 11 1l1 i haw acr'n1,:d
;inl:t 1t-m1 in :11i11 n nn li l flu : ri1ne nl'u w:nd pa)'llll'll t cxccl!d i: ·.h e· mn 1,u11 1 o !':11 1y ::um ~: (nt 1 1\f'
rcldl ing costi-and c.1:pc-nscs) ;1i.:l ,1:1ll y n:e,~ivcd by l.:u 1d lo rd fro m 1111 : Pn:111 irn .. ·.;,. 11fh:t
lt..:rmi n.i tion.
(l'.) The "wor th ul lhc time of the awar<I pn y111 cn 1·· o f thl'
11111011 111 by wh ich th e Base Rent nnd nl ! ot he r charges w l1ici1 wou ld ha ve .!CC l'll:!d n l 1cr 11 1.~
I imc o f the nwo rd 11aym cnt fo r the rcmni ning term of this Lease exceeds the Fa ir Ma rk el
Hcnt (4 1 r♦MR 11 ), de termi ned in th e mwm er set fi irth Uclnw, fhr th..! rc 111aini11 ~ term uf thi s
Louse. ·11,c FMR , os used in th is Lea se. shall be the la ir markcl rr11 t of th e Premises, 11e1
of m,td:ct hrok crnec ,·rn n miss !nm; ar1<I r.on•:u lli 11 l', frc:c... :i s or l°ll' li11u: uf the awnrd for ,1
ll'l m eq ual to th e rcma i1:i11 ~ l..:1m 0 ('1l1i .~ Lc:i !:ic :a1h!:cq ue nt lo the tim e o f the nwnn l
pu ymcnt (n~umi ni; thi:; lcn !;c hod not been tcrmin:1tcd) on m 1 ";H is " ha-;is, ilS C1 ·(c1 rni nt!d
b y a lice nsed M t\! .1 pp rn bc1 :it..:lci;tcd liy J.m.d l:i rd. A t Tcnanf s o pti on, Tenan t mny
se lec t an nclcl itional liix:nscd MAI 1,pp rn is~r to ,;s lim;l\c !·Ml{ .rn d ·1 c nant 's n;J pru isc r uiu.l
J ,:mcll o:·d 's apprn iscr !:hal l se lec t II thi rC MA I 11p prn isc.r to e"li 1rn 1k 1h r. FMR , hi which
case Ll 1c FMR shall he th e n1cil i11 n of the lhrn c app rn i:;als. Tc 11111 1t shall hc11 r the eus l of
th e..: a;JJm 1i:;al pro t.:css.
/\s u-.~d in thi s Section 13 .2, l.1 e tun n, ''worth u( th e tim e of the aw:inl 11 :,ymcnt ",
~hn ll he co mp uted by 111l owing sim ;Jh: i111c1c:-.t .it ,m ;,cc mal i.1tc eq ual tu thu Dc l1 u11l R:i u; ror
;ms t J ue obli gation s, :111d a di:a.:rn m~ rnlc 1o nc~ presen t vah:c at the time of the c.w,m.!
;,aym cn t 0[ eight pc:cc.:nt (8%) per :u111u11 1 on Jt1 lici1 >.1 tc<l fu ture ol,li g,:1t io 1is or 1'C VC1tucs, :-i nd
:ni tiga ti on a mo unt s, with no intc.rc st or di sco u11t1 on the an:oun t of th e obli~ntio11s pay11blc
on the cate cf such calc ulat ion . In 1hc c1•e n1 th is Lea,., sha ll be lcm 1i 1111tcd as prov ided
,1bo ve, by summnry proceed ings or othc rwi!-,c , J •1111cllord , its a~ca ls, s1~r v;mt ~ or
rc pn·scntativcs m~y immcdintcly or nt ;my time thcrca fi cr pL'.iccal,)y re c11 1cr and 1·cs umc
po:.:scr;mo n of th e Jll'c1ni ~:c~ ru1d, nt Tc11n 1:t1!i cx 1>c11st;, rcnwvc ull pcr~ons nnd pro pc 11y
ilu:rcfrom: by s u111m.:u-y di spossess ion pmcccd i11 gs. Laud lun..1 s hal l m:vi;r l>t! en tit led to
1l i•;p<>S}:css ·r ~na 1i t of the l'rcmiscs pu rs unnl 10 u1 1y ''loc k-o ut'' or ot her nonjud ic ia l re !nedy.
(ii,) l(cintl!n 1·se 111cnl o[!,,ui 1II L1rd's Costs in \:_xi:_rcisi ng RQ1ric dies.
I .u ndl nrcl 11 rny 11.;cuvi;r fru 1n 'J'c 1m nl. .u 1d ·rcnant "hall pay to Landl ord opon ct emrn1,l 1 11s
Adtl ili u:1al Rent, mich rn m:onahlf• mu l :1c:l11 nl CX jl ('.11 ,:r•s m: La ndlord may im:m in 1·cco vlff i11 g
pos~css ion uf' th !.! Prc 111iscs . pl aci11g 11 1..: same in gu<,d orde r mu.I •~o ndition nm ! rc pniri ng 1111,;
:.t1111c fo r rd ett i:1b, 1111d ull other rcu :;011 111,lc .111d nctual cxpe n,,:;cs , comm ission~ Hllll d 1a1 gc:-:
incu11 ct.! by l .;uid lonl i1 1 cxcrci!'i i11 g m1y 1c111ctly pi ov itlcd herei n urns a rc:.mll uf rn 1y l·:vi;lll
of De f11 nh hy Te nant here.u nder (incl uding wi1ho11 t timitnt ion rcus cnublc a!lorn cy,· tees),
prov ided ,n at ,r, no event slull Tenent be ohligat cd to cu:npc!'salc La ndlord for nny
spcc uln~1vc or co nseq uemial damngcs ca uscd by Tc1mn1's fa ilure to per fo rm :ts o bli ga ti cms
und er thi s Lease .
2 1
l)J()r,1!,t)JU IU.0l:.O"/'lltlZ 767.)Tl)OIJ
A. Remedies Arc Cl1mulaJive . Th e vnri0 us rie,hts nnd remedil~s reserved to
Landlord herein are cumulative, and Landlord may pursue an y and all s uch rights and
remedies, in 11ddition 10 any other rights or remedies available at law or in equity, whether at
the same time or otherwise (to U1c extent not inconsistent wiU1 spe cific pro visions of thi s
Lease). Notwithstanding anything herein to the contrary, Landlord expressly waiv es its
right to forcibly d:sposscss Tenant from the Premises, whether pcacl!abl y or olbcnvisc,
without judi cia l pro cess, such tlmt Land lord sha ll not be entitle,! to any "commercial
lockou t" or any othc-r provi sions of ap pl ica ble law which pennil landlords to dispossess
tenants from commercial properties without th<.· bene fit of judicial review.
C. Mitigation of Uanrngcs, In the event Landlord clecls to tenninate th e Lease
.1nd seek ctanrn gcs from Tenant ns provid ed herein, J .:mdl ord will llse reas on abl e efforts to
miti gate it s damar,<,s. Landlord shall have the option bul not the obligation lo li st th e
Premises for lease with a real es tnt c broker. fn tl1c event Landlord elects not to so list the
properly but inslcm: dec ts to itself market the Prop erty for lease, suc h e lectio n shall not be
deemed to constitute a failure by Landlord to mitigate . Landlord will not be obligated 10
accept le ~~ than Lln.! ~i1t::11 L:urrcnt nmrkct n:ut fur the Prembc~; deviate from its th en
established guiJeline; for lenams including wiU1ou1 limitation use , experience, reputation.
and crcditwor1hincss; lease less than all of the Premises; extend the lem1 of thi s Lease; or
expend nny money on behalf of a new te nant. Tenant will not hc1vc any independent,
,.ffinnal ivc claim against Landlorcl on account of Landlord's failure lo miti ga te its damages;
however, such fnilure ro mi tigate may be nsscrled by Tenant as a defense ton c lai m by
Landlord to th e extent allowed by law.
D. Waiver of Landlord's Lien. lmdlord hereby waivesa.ny statutory liens and
ru,y rights of distress \\0th resp ec t io the Tenant's Prop e.rty (as deftned below) from time to
lime located o:i the Premises. "This Lease doc s not gnnt a cont ractu al lien or any other
security intere st to Landlord or in favor of Landlord with respect to Tenant's l'ropcny.
I .nndlord fhrther agrees, without cost to Te nant, to execute nnd deliver such instnunen ts
reaso :i ab ly requested by Tenant from iime to lime to ev idence lhe aforesa id waiver of
Landlord. As used herein the tenn "Tenant's Propcrty 11 sha ll mean all mo"able panition s,
business and trad e fixtures, machinery and equipment, automobiles, com1101crs, furniture,
satelli te dish(s), signagc, com municati ons equ ipment and office eq uipme nt , nn<l all fumiti:rc ,
fumi shing.s an<l ulhcr urticlc.s ofpcrsunu l property uwncd by Tenant and luciltctl in lh c
Prem ises.
E. A )li cnbilitv of Article ) 8. Nut'.vit,sta.ndi..11g anything to the con trary
conL1 incd in this Lease, all of Landlord 's remedies set fonh in Section 13 .2 shall be subje ct
lo U,e provisions of Art ic le 18 of thi s Loose. If any provision of Section I 3.2 is in conflict
wi th nny provision s of Article 18, th e teems of A'1 iclc 18 s hnll control.
13.J Landlord 's Default.
In the event Land lo rd shall at ony time be in dcfauil in the obser vance or perfonnnnc<
of any of th e covcnnn.s an d agreements required to be performed and observed by Landlord
hereunde r and an y such default sh all continue for a per io d of forty five (45) days after written
notice lo L,md lord (or if s uc h dcfaull is in carable of being cured in a reasonab l e manne r within
fo , ty r, ve (45) cla ys and if Landlord has no t commenced 10 cure the same ·.v ith i n sa id fony five
22
OB04 /!10l8 1,.01S.8,'418.7G7.J TOO!)
('15) day pcrio~ and thcrc nftc r dili ~ently pros ecu tes the Satoe t.1 com pletion), uml Landlord sb:o ll
1101 Lhcrc afler cure such dcfuult , 'l'enwll shnll l,c ent itl ed, ut its d cttio11 , to hri11 i; suit fnr the
cu ll i..:c t ion of :my nm oun ts fo r whi ch Landl ord m:t y be in dcfo ult , or fti rthc ll crfon n:111~ or any
nll n.:r c cw cn:111 1 1x aurccmcn t dc volvin i; u po n l.nnd!o!'t!, i11 11t.ldi1 1on tu a ll rcn1 cd il's nlherwi•:e
pr ov ided in thi s Lea se and olhc"W1sc 11vail :1hl l' a1 law or in \~q uit y u1hlc1 thC.' l:nv s t d lhl: I l111 l lal
S1:1 1r,c; m :hr S ink o f r :11 lrnadc1.
I J.'1 A uornm.:_Ef:£&
1.n the event tl mt ei th e r 1.nncl lo r<l or 'l\·.nant 001:uncn'-,;l.!S i lll)' ~uit fw llil: Cll lk ctin1t
of .1 ,1y m11ounts fu r whi ch tl1 e utl1 1:r 11111 y Ut: iu dc:':ni ll or lo:-th c pcrform anc.:c o f an y 01hc.
co vl~1m :11 or agre ement hereunder, th e pre vailing part y in :my su ::.h act ion shall be awarded it:-:
co!-tr; an d expense s, includin g, but not limikd to , nl: nt (orn ~ys' fo es und expenses incurred in
cnfi ,rc ini.t :mc h ob li gations nnd/or coll ec tin g m1ch :m1e11111l s, frorr. th e other parl)' to such m:1ion.
l l :S \\111ivcr o fCom:l~(l mn1i:1I l)iJJ lli !ililli..
Inn event sl1 al l either I .:n11 ih ll',l 11r • ·1:na11 1 ha\·c 1lu; ri gh t to rcc<,vcr consc quc1 ti;·I
d:u 11;1gcl.i uf' ;111 y I-i nd from the o:hcr. Exccp l :is lim it ed hc rc i11:ih 1v t.:, :i ll righti: and l'l!llic<lic:, n::1y
h.1 c.-<c rcii:c <I anti ,:m fo 1ccd c;oncun cntl y :md whc 11 evc.:r ,mtl :io; olbn r1s I.and lord or Tc11i11 1i :-;11all
drell l 11ece.•:s 111·y.
A l(TC l-lc I~
t :u,•c 11 a 11I of lJ.11id IL11j11 y111 c11 1
L:111 dlurd .1g:·cc~ :h at Ten ant !t li:ill qrnct!y .md pca:;cah ly hol d, pos!:c s.:, and cuj c,y
lhc l'rc mi ~cs, wi tho ut an y hi1lClr:mu: OI 11 1ol cst ali o11 l>y tl1 c ;tgl'nl ~ (11' cm1>l oy1.:cs ,,f r nn 11,,rd, :im l
fort hc r, Lonci lnnl sh:111 , an ti any ad.liti 1111:1I c,:ccp1in11 s r..rrntcd hy Tc.n!'l nl or 1.:rc.1lcd by Lu11 dlu 1d
and a pproved by 'J'cn :i nt, dcfi.:nd th ~• titl e lo the Pna ni st:i. :ind !h e nt.c an d occup,mr.y tlf lh c :.;,1111c:
hy 'l'(.;ll rt lll :.1gai n::t the luwf'u l cl :11111.1 o f nil pcrsC1 ns wh oso:;vcr, exce pt th ose clai 111 i11 ~ b_v o:-
lhrN1g ll 'l'crnmt.
Alff!(;LI( IS
Subonlina ti on; l .andlo rd 's ltight to Mortg:1~t.· aml Con,·cy l'rcm i!<:cs
Lnnd lord may 111 011gngc its in tcresi in th t.: Prem ises, prov ided such mortga ~c
c"<p 11..:.-..s ly provi dc..:s thut th e ~ig hl s and i111c 1csts o f th e mortgngce 1hcrcu11J cr an! su'ij cr.t to the
1 iglit s and in tc..:r,.;sls c1f Tcm111 1 ht:n:1:nd1 :r 111 •<1 , p1 nvicl 1~d that Te 11 ~mt is nut in cl d alllt foll owing the
c~pira ti on of nny .1p;1licn':.>k cmc p i..:1 io cl s 1:11dc.:r any provh;ion of th e Lco:;c nncl Tenon\ (or its
p:.:rmiuccl f.uhlc:;::;cc ) ii.: lim n in po:;::csli i<rn of'1h c Premise:;, the mort gage e shu ll agree nut tu
tc1 mi nutc th e f......::1sc ur oth i..:r wisc cl istu rh T~11111 1l ':; 1 ighl of' pusscss ion in accord ance wi th the
ter ms an d cond iti ons 11f ll u.: I .c ai:c. r.:ho ulc l I ,r ncl lurd sel l, ~Olt\f cy, 111· tra nsfe r ils int t:rcst in 11,c
J•re 1111 scs or :,,houl d an y mo1l gagl't.' n l LunOlu rd suc1.a:ctl tu l.umllo n:I':; interest thi ough
forci.:losurc or de ed in lieu thc l\:uf. Tenant shall mt orn io .:;uch succccdi nl! p:11 ty as it s l:,1td lu1 d
unch::r thi s Lease pro :nµtl y up on uny such success ion, pro vided such s ucc..:t·,l ing par ty JLl.is umcs all
of L:.rnd lord1 s dutie s nnd ohli gRlin m; 11 11dcr thi s Lease. Sl 1c h s11ccecdin g p:i rty shall nut hr li obl c
fo r an y of l..a11<ll ord 1 s oblignti om and dutie ~ hereunder prio, to its os~umpti o n nf Umdlord's
<l 1J tii..:~ nnd oblig ot·,.,"s hereunde r The su bo rdinatio n o:·this Lea se to'ihc 111 0 1tgagc o f Landlord ,
and tlu: agree ment of Ternm l tu utl urn lU any mortgagee of Lnndl ord wh o succeed s 10 Limdlord 's
23
ltt,0111JU J tilV Ul~U,'C 18Z 7f.7 .? T009
in terest through foreclo sure or deed in lieu thereof, arc contli 1ioacd upor. th,, mortgagee
providing Te on nl "ith a written non-di sturbance agree ment, with commerci a ll y reaso nable
lc nm,, pursuant to whi ch suc h mortgagee agrees not to dist urb Tenant 's possts:;iu 11 uf tlu::
Premises under and pursuant to the tenn s of this Lease (so long as TenRnt is not in defaul t
hereu nder fo'lowing the exp ira tion of any applicab le cure per iods) in U,e event s uch mo rtgagee
acqu ires title to the Premises through foreclosure (judiciul or non-judiciai), deed in lieu o f
fo rec losu re or otherwi se.
ARTICL E H;
T1 ·1rnsfcr, by Landlord
No tran sfer or sa le ofLnndlord's inte rest hereund er shall re lease Lan dlord from
any of its ob ligations or dutie s hereunder prior th ereto. Landl ord shall he released of any
ongoing ohl igat ions hereund er from and aft er th e da te of such transfe r mxt only upon th e wri tte n
ass ump tion of all such ob li ga tion s and dut ies by th e transferee of' Lamllo rd. Notwithsrnnding
anything contained herein to the co nt rary , in no even t shall Land lord have th e ri gh t lo tran sfer. in
any mann er what soeve r, or lo st::1 1 its interest hereund er prior lo delivery of possc .:;si on of tf.e
Prem ises to 'fem!.~•
ARTICLE 17
Miscdl.an cou s
17.1 Nc>n-Wniver of Default . No acqu ie sce nce by either pa rt y to any default by
the oth er party shall ope rate as a waiver of its rights with res pect to any other breach or default,
wheth er of th~ s~mr. nr ;my other cove:1ant or co ndition .
17.2 Record ing .
This Lease shall not be re corded . The parties shall exec ute, acknowledge, and
de li ver to each o ther dupl icate originals ofa shon fn""' or mem orandum of this Lease
("Memorandum of Lease ") in substan ti ally th e form of Exhibit C attache d h ereto and
in co rporated herei n, descr ibin g the l'rcmiscs and selling fo rth thr Tenn of thi s Lease. The
rC4..~nrcling sh:i.1! be at Te nant 's ex pense In lh e even! Tcn:inl reco rds this 1.r.nse (rath er th :rn 11
Memorandum of Lease ) wi Ut out the prior writt en approval of Landlord , th is Lease sha ll
aut omatically be deemed tenn inat cd ·and of no 'uniter force or effe ct.
17.3 Noti ce.
Auy notice, request, offer , approval , co nse nt, or other commu n.i cation requi red or
permitt ed to be g1vcu by or on behalf of ei th er party to th e other shall be giv en )r conmmnicnlcd
in writing by pers onal deli very , rep utubl e ov('rnighl co uri er serv ice which kce:p s re cc ipl s nf
del iv eri es (i.e ., Fed era l Ex press), or Unit ed Sta tes ccn ifi ed mail (re tunt rece ipt req ue sted with
postage full y prepaid ) or express mail serv ice add ress ed lo th e oth er part y as follow s:
If to Tenant :
0 1104/50).lll ;; 01$S/HR2lG? :l TOO!)
Benjamin fomk lin Academy Project Dev e lopme nt,
LLC
c/o H ighMar k Sc hool Developme nt ,
6900 St ut h 900 East, Su it e 200
Midvo lc, Utah 840 47
24
With cop ies to:
With copies to :
Arn i
/\tl cnti on . .J len n I lilc rn :111
Suell &. Wi hr,cr I..L.I '.
I ~ West . \,ut h Tern pie, Sui le 1200
Sall l.al ,c Cit y, l!l nh 8/4 10 1
/\tt c11 tio11 : I .~:t:1.:1 Fv,:11 M~•1, n sq .
EnglcwoorVM cLcl.:m H.t:sc n •c,ir )ic 1111 1tlali1u1
I 000 Englewood i'm l:w:iy
Englewoo d. Co lor,1do 80 I t (I
/\ttc11 Li1m : Pres iden t
City of Englewoo d
I 0011 Euu lcwou d P·1rkway
E·1glcwo:od, Co lormJo 80 I I I:
A 11c11 tio1 :: Ci:y l\tlornl:y
I \r:n :uha11111 Wt ·i w;li ic :11: I'(:
3'.'0 17'1 1 Strcc\ '18 11' l11Hir
D~nvcr, Co lrnm l,, Ml202
l\l(c11t it111 , 11. Mi;;hal~I Mi l k:!, l ·:•:q
1,r al s 11 d 1 ulh cr ad<l n.:ss a:-i n111y be s pc.:c1ficc l lh,111 timc le timl' in \\0riti11g by ei th er pa rly. 1\II
s uch 11 o ti ccs li crc,.11 1der sh:i ll he tl ccrn e(I to li :,v c bcc il giv en on th e dat e pcrso11a ll y dcli vc n;:d or
lh c elu te nm rkcd on :ht: n:turn l't:l:ci p l. un l<·si; dclh·l~IY is rcf11 sc.:d or t::111 1101 h1: 1nad1:, in whk-:1 l'a.'i ~:
th e 11:1 IP. o f p,1 t;l1n :1rk sh:11 1 I•:: 1l1:,:1rn :cl 1111; datl' llt •licl' l1:ts hcc11 gi-.•c n.
17 4 S w.:c~ssors illlli\filill..!.filh
1\11 cov:.m:mt:;, prom i:.cs, co nditi ons. rcp rr:,c ntati ons, ,md agrc1,;mc:nts herein
cnn 'n i114,;d sh:i ll be bindin g upon 1 np pl y 10, rn1 d i nlll e lu th e hc 11c f1t of'lh t:. Panics hereto an d lhdr
l'cspc c _tivc heirs , exec ut ors, adm lni strators, s ucc~s sor!; (im.:luding :-.1 1b l ~nm1t s)1 a nti perm itt ed
:i :-.::i ~n s.
175 tartinl ln vn licli!.Y,
if any prov :s io u of thi s Lea se or th e :\ppli cation th ereof lo any pc n;;:-m m
drc111 n~l nncL: shnll In nn y cr l cnt h1 : h,:ld i11v:11i c!, th e n..:11 111indcr of thi s Lcnsc or the~ appl icat ion ol
s uc h pr(1v h;icm tn pcn:ons or 1.:i rc um s ta11,:ct: oth er lh nn thos e ru; to wl1ich it ir; held invnl id shall
11111 be affecte d th crcby 1 nnd each prov i:dnn of thiti Lc usc ~;hall be val id and c11fo rccc1 bh.: tu tl.c
f'u lh . .:s l ex h:11 1pc1111 ilt ctl hy ldw .
17.G lntcrpretati o.!),
In interpreting th is Leas e 111 it s ent irety, :my at.lditions wril!·., or typed 1h c1cun
sha ll be give n eq ual weight , and th ere slrnll be 110 i11fe rn 11 cc, by o~c rat io n or law or ot herwi se ,
that a ny prov ision o f thi s Lease sha ll be co nstrn ," nga insl e:l hcr par ty herc :o . This l.c,,s,•. sl:al l
25
IJUOII J:,u3t1Jr,.01!,is 1•11 )2 /';,"/,l lC0 9
be constru,,d wi thout regacd to any presumption or othe r rule n:quiring construction against the
Parties ca usi ng this Lease to be draficd.
17 .7 Headines. Captions and References.
The section captio ns contained in thi s Lease are fo r convenience only and do not
in any way limit or amplify any term or provision hereof. The use of the terms "hereof,"
"hereunder," and '1hcrci n" shall refer to this Lease ns a whole, inclusive of the E:,;;ibits, cx cc p1
when noted oth erwise. The terms 11 includc," "inc lud es," and "i ncludin g" incorpora te the
meaning "without limitati on." The use of the masculine or neuter genders herein shall include
the masculi11 c1 feminine , and oeut cr genders and the si ngu lar form shall includ e Llic plural when
the contcx\ so requires .
17.8 Go\'cming Law.
Thi s Le ase shall be co nstrued under the laws of th e State of Colorado.
17 .9 Execution of' Documents.
La ndlord and Tenant shall eac h cooperate with the other and execute such
documents as the other part y may reasonably requi re or request so as to enab le it to conduct its
operations, so lo ng as the requested conduct or execut ion of documents docs not derogate or alter
the po•.vc rs, rights, duties, and responsibi litie s of the re sp ective Parties.
17 .10 Force Majeurc.
Whenever a party is requ ired to perform an act und er this Lease by a cenain time .
unl ess specificall)' prov ided otherw ise in this Lease , such party may extend the deadline in the
event of Excusable Delay. In the event a party elects lo so exte nd n deadline . such party shu ll
first give written notice to th e other pany within twenty (20) days following the conunenccment
of the Excusable Delay setting fonh the eve nt giving ris e to the Exc usable Delay. The part y
electing to extend tl1e de adline shall within twenty (20) days fo ll ow ing the end of U1e Ex~usablc
Dela y giv e an nddi1in nal written notice to the other rarty setting fonh th e number of days the
period has been ex tended as a resu lt oftbc Excusable De lay and th e details of such delay .
17 .11 Reaso nah lc Consent.
\!otwithstand in g anythin g to the con1rary co ntained in thi s Lease, in all ~1st:~
where r.onsent or approva l sha ll he required pur.suant to this Lr.a se, the giving of each consent or
approva l sha ll not be unrea sonably withheld o r delayed by the puny from whom such consent is
required or req ue sted .
17 .12 Autho rit v,
No 2.gree ment , inclurline hut not limited to an ng recmcnl to amend or modify thi s
Lease or to accept surrender of the Premises, shall be deemed binding upon eithe r party , unless
in writing and signed by an oflicc r of the party against whom the agreement is. to be enforced o r
by a person designated in wr itin g by such party as so authorized to act. No paymen t by Tenant
or rece ipt br Landlord ofa iesscr amo unt than the Rent herein stipulated shall be dee med to be
26
OBO,:/SO~fl1fi .015B/4U1Hfi7,) lOO'J
ntli c r thnn on nccount of th e ea rlie st :j lipu lated Rent , m1 r slm l! ;my cmlursc mcnt or stmcm cm 01:
;I•Iy c hcc~ or an y letl :r ncco mpanyin g :my check ,,1 1my 11 n:11; of l{cn l be dL'.cmed an :u:c nnl anti
~:t l1 s l.1 e li on unl ess cx p1c s~ly n~rccd to hy Landlord a clmg 1hn1 its a11lh111 ized rL:p re~c nt:ui vl!, and
I .-111dl11nl may .icccpl $l1Ch check or p:iym i.;nt witluml p11 ~j11cl c:L, lo l..:111,ll on l 's riHIH tn .-c,:nvcr tin·
h d :111 ~c nf "-Uch l~c ut or pu n:m: :111y o tl,ur rem ed y lheu :1v:1 il:i bh: lU Ln:Hlln rd .
E;id, p:irty ngrccs, f:·om time lo tim e , wi1hin lwcn ly (2 0) day s fo ll owi n~ wriucn
n.:quc<:t from th1,; o the r parl y, to execu te a nd de live r un cs toppc l slating that thi s 1.c a.c;c i!i in fi:tl
f'o r..,c and :fiCc t, and if mncl ific<I or nm cnde<i , sell ing fo rth suc.:h mod ific ;1tion or ..ime ndm cnt, ti nt
1w tlcl:11111 cx i~t?;, or if a default , ::ct1i11 g fo:1h the sumc , nnd such oth er fo ct11 a l mm tcrs r gn:·<l in g
11 11.: L1.·a :;c us muy be rcmm ual,ly 1c4rn.:s tc d1 µrov lcJcd such cstn ppcl do es 1ml n bli gat e th e party to
;11.:lc11 owl cdgc ur consent to :my modificat io ns or intcrprc l;1 li f'n~ of I his l..:.:asc no t prev iou s Iv
:q:n,c cl 11prn1 by bot h pm1 ics in wri tint:-
1 7 I' l·h lcl ini. Ovc :·.
~;lu m l<l Tena nt hold ove r, w1f ho11 l l..;,1nd lwd's c,rnsc nt, afl l:r th e l.c.1:-:c ti.:rm !ms
expired ;u ni co ntinu e to p;1y Hclll, Tc 11a11f slmll bceomc :1 1no nth lo month l~lll llll 1111 ly . In no
c, cnl sha ll such huld ov1,;r eo nstil l1tc an extens ion o f' the term or thi .~ l.c.:;1 sc D ur in~ :-:ud1 hold
over. lh c Re nt ::ha ll he .1 11 nn10 1111 1 cq 1111 I In on e lnu ulrcd fiHy pcrccnt (I 50¾) of th u Rt!nt th.:ring
tltc l:L,:t month o f, h,: term of th e !.,c :1r.~. togeth er with ~II ot her umount.<. payn hl c by 'f'c ni..ln t under
tl 1c lc nl is t i!' tl1 c Lc...:asc . Nw 1c o f tl,c h . .:n,1 :-11f'tl 1is 1•;111 11.",rn ph or the 110\d in & over by ·1 ennn t i;lrn l l
1.;o m:li tu ~c ,1 waiv ~r o f :in y righ 1:; of' l .. m1c.llord lo lcn1111 :atc lh c I .c l1,;c ut any ti 111 c ,nu.I lo rc--c nlcr
:111d lak e puss cs:;io11 of' the Premi se ~;. Tc...:11an1 slml l rcim bu1sc L 1111 ll unl aud i11d t·11 1:,i fy 1.:mci lmd
ae,ai ma all ,l nmaecs i11c 11rn·d by 1.a ndlc,rd rci.1 1l tin l{ fro 111 :1ny dela y by ·rc11 ant in !:.1rrc nd cri 11g
p11i:::c!:i:ion or th e P rcrii:iC:i .
Alffl C J.I~ IX
I icascho ld ll'i11 1111cinc
I R.1 Morw:1pr. hy Tr.nm11
Tcn :int mny, fro m time to ti me, hypothcc atc, mortgage , pled ge , or alicm1 lc the
l1 n111 c1v i.;111c11 1s ,111d/u r Tc11a 111's lcusc hol d estate and righ ts hcrcundcr. Such lien shull be rc fcrrct1
lo here in as a '"1,e:oschoh l Mortgage" and lh o hold er or ho ld ers o/"any such lien shall be referred
to he re in .i s a "Leasehold Morti,:,agc c." The Lcnsc hulU Mor le,a g,cc '!-. in tercs l in the Premi ses and
lhi s Lt>:.1sc shall be subordinat c,juniol' and subj ec t to Lnndlurd '~ owncr;,hip of the Prcmis1.:s ;md
inl crcst in lhis 1,cus c. A Lt:11schol d Mmlt;H~C shn ll c11c11 rnbc 1 no inlr.:n;s t i11 ll1 1,; Pn.:m iscs uthc:·
than ·r c nn11 1·s interest in Ihc l..c1.1s c and th e Jm pruvcmcnts loca ted 011 lhc l'l'cm i!;c$, inclucl ing ;my
personal p1o p1;1t y n l'Ten unt , a nd any ~ublc:1scs of portions of the Premi ses. A l.cttsc h )Id
Mt,rlgagcc or i1 s ass ign s ma y enforce such lir.:n a nti ,u:q11i rn 1i 1le lo lh c. lc:1 s,:hold c st:i tc in an)'
k,wful wuy mu l, pend ing fo rcclos~irc of Sut,;h li en, th e Lc :t~eho lc.! Mortg..igcc 111 ny tak e possess ion
o f nnc.l operate the Pre:ni ses, performi ng all oblignti o11 s pcrfu11rn.1blc by Tcmmt, a nd upon
forec losure of such lien by powerof sale ,judicial foreclosure, or aeq u1 sit1011 o l"thc lease hold
estal c hy dee d in lieu of foreclo sure, th e Leasehold Mor tgugcc may sell 1111cl ass ign the lcasc hnlcl
cslal e hereby created . Not with stnndin g ·1nything here in con tnine-<l to th e contrary, the Leaseho ld
27
o n0'1 /~0JA lC..01 58/4tar/G7.3 t009
Mortgagee or any per.;on or entity acquiring such lea sehold estate shnll be liable 10 per fo rm Ute
obligations impo sed on Tenant by this Lease only during the period such person has ownership
of saic leasehold estate or po ssessio n of the l'rcmise s; provided funhcr that , except n, expressly
provided l1erein , in no eve nt shall Lru1dlord',. right s be impaired to exercise its remedie s
following an Event ofDcfuult prio r lo Lcw,c!tL1 ld Mortgagee's vosscssion or ow m .. ·;;hip .
Lnndlord cgrees to provide an csioppcl lo any Leasehold Mongagee upon wrinen request
th erefo r, prov ided such es topp cl doe s not obligate Landlord to acknowledge or consent to any
modifications or interpretation s of this Lease nol previously agreed upon by both parties in
writing r::xcepl as otherv.1is r. prcwicl eri in Scr.tion 2.1. hclow.
18 .2 Nmice To and Rights Of Lea.sehold Mongaeccs .
A. When giving notice 10 Tenant wi th rospe ei to any default hereunder,
Landlo rd slmU also se rve a co py of such nol icc upon fill y Lc aschukl Mortgagee who shall
have given I .a nd\ord a wrincn notic e specifying its name and address. No su ch noti ce
shall be effec,ivc against ru1y Lease hold Mortgagee unles s and umil served on any
Lc asq hold M011 gagce as herei n prorided. In the even t Tenant shall Ilcfault in the
perfonnance of any of the term s, covenants, agreeme nts . and conditio ns of this Lca.r.c to
be pcrfonned on Tenant 's part, any Leaseho ld Mortgagee shall have the right , wilhin the
grace period availahle to Tenanl for curing such default or such additional time as may be
granted 10 any Lcn scho ld Mortgagee herein, to cure or make good, such defoul1 or 10
cause the same to be curerl or made good, whether the same consis ts of the failure to pay
rcnl or the failure 10 perform any other obligation , and Landlord shall accept such
pcrforn1ant<:s on tlte part of any Leaseh old Mortgagee as though the same had been done
or perfonned by Tenant.
B. 111 tl,c case ofa Mone1ary Oefuult by Tenanl , Landlor:I will take .no action
10 effect a tem1 ination of this Lease by re aso n the reof unle ss such default has continued
bey ond sixty (60) day s after Landlord shall have served a copy of such notice upon
Tenant and any Leasehold Mon gagee who has given Landlord notice as provided in
0.18.2 .A above , it bei ng th e int ent hereof nnd the 11ncl crsta ncting ,if th e parties that nny
Leasehold Mortgage e sha ll be allowed not le ss than thirty (30) days io ad,Iition to any
grace period grant ed lo Tenanl unde r this Leas e 10 cure any Monetary Default ofTen.1n!
C. In the ca se of an y Nc.n-Monetary Default by Ten ant, a Leaseho ld
Mort gagee shall be allowed , in ad di1io;1 10 any grace period granted lo Tenant, an
additional time us hcrcinnftc r :,;pecificd to cure such Non -Monctnry Default within whi r.h
either: ·
o) If such default is o Non -Monetary defoull or is o therwi se
susceptible of bein g cured by 1hc Leasehold Mongngee witl1out obtaining
possession of1hc Pr emi ses, to commence and dil igentl y proceed 10 cure such
Nun-Mu11e1ary Defuull wi1hi11 l11i1t y (30) day s following the expiration o f any
grace peri od gr.uned to Tenant or thirty (30) day s after Landl ord shall have served
a copy of Tenant 's default upon the Leasehold Mortgagee , whichever is later, or if
such default can 1101 reaso nabl y be cu red within lhiny (30) days, 10 commence
such c ure with in thirt y (30) days followi ne th e cx pirn1ion of any grace period
granted to Tenant or thiny (30) days after l..aadlo rd shall hav e serv ed a copy of
n11naA01~16.01S8/41R1767 .J T0:>9
Tenant's default up:>n th e Loascho ld Mort gagee , whicl,cvcr is late r, and lo
dil igently µ,osc,culc the cure lo ,·ompletion;
b) If such dc.fuul1 is u no1Hnn11clnry tlt.:fnu ll and is no: sus cl~plihh: of
bci ni; c ured hv th e IJcu ~c l1 old Mnrlt:ai;c c wi1 ho u1 ob t.iin in& po sse:is i1111 11 f 1h r.
Premises, lo e11m111cm·u proceedings to ohl:tin po!-scssi o n of th e Pr ~111i !11~:: wi!li in
thirty (JO) cb y:: fo ll ow ing th o oxp i111ti o11 of ,my g 1acc pe rio d 1,;r:mlc<1 to 'l\.:na11l ur
1hi r1y (JO) d ny s 11llcr l~111dlunl shall h11vc se rved a copy ofTe11:1111's dclilult up on
th e Lc :i schcild Mortgagee, which ever 1s In ter. nn<l dili gent ly proscc utc su c h ncti on
IC! co mplet ion (incl 11tl inc possess ion by a rt·ct.:ivc r) an d to curt; ~uch cir.fnn11 with in
1hi r1 y (1 0) d ays fo ll owing posses~ion or the.-ap poi nlmcnt o f o rcctivcr in th e ca~c
ora (li.;fau lt which i :; sw:c cp tihh. ofhcing cnrccl witt:in thirty (JO) day s wli e u lhl!
I A.:usc holU Murlgugcc has obtain ed pos ses sion th crc0f. If suc h defau lt ca n nl't
reasonably be c ure d within thi rty (30) days li:ll owinA poss ession or ap1>o i111 111c1:1
o f n rece ive r. to commen ce such cu re within thi1iy (J O) d:i }s fo llowin e pn~~t'-'i~inn
or .ippointmcn t o f H rcc civ~I' :md to diligcnll y prm:ccutc the cure to comph.:t io n.
1 lowcvcr. Lcas1.,;hol cl Morlgni;cc 1s ril;;ht 11, c ure :, :1un -:no11 ctm y <lcfo ult -.1,all in 1w
cvc 111 exte nd lal t.:r I hat th e cxpi 1n1iol\ or nin e (9) n~on th s fo llo wi 11g lhc <lute
L~nd lorcl scl'•cd a copy ofTcnnnt's defa111i upo n !he Lcasdwld Mo1(gagce.
pro vicl cc l howev er, during the cure pcnotl I .cast~IH ,lrl Mor1 e:1gt~l~ ~hnll lw 1.:p m
c:111sc to be kept ct11TCllt :,II n~onct:iry ol>l.gnliun: clue 1mt 1cr tb., LCll:;c,
I>. In til e cvc..:111th:111\ii s l.,casl: i:-; tn1 ni11au.:d by Lnndlord 011 m:co unt ufany
deruull, I .a nd lo rd shull giv e prompt nolic c t:1c re11 r 10 eac h Leas eho ld Mol'lgngco w:10 hns
Aiv cn 1H1liec to he nolificcl . J'.m 1dlul'I I, wi1hin thirt y (J O) day s nflcr recei ving a wl'i tt cn
n:«1111;,<;I lh crc l(.r . wl1 :ch sh:111 bu ti ivcn wit hin six1y ((.0) d:1ys aflcr s ucl1 lenni11 aliirn1 wi ll
e xe cute uncl cl d ivcr n r:cw lcm1c o f the Pr umisc s lo th..: Lcascl w ld Mo:·1g.1r,cc M it s
11 u111 i11 cc ur tu lhl~ i>t:n.:hm;c :·, ass igi··:~. or trr.11sfcn.:c1 as tl1 c c:1$! m11y be, for tl1 c rc111a:ndl.!r
of the te rm of this Lcusc, co ntain ing the sa me covenants, agreemen ts , terms, provi sions.
1111d limitati ons as are con tnin ed here in, provided !hat !he J .ca.sc hnl d Mnrl engc.c shall (i)
pay 10 Landl ord . sim ullan co usly with th e delivery of s u:h ne" lease, all un paid 1e111nl du e
under this Le ase up to ancl im:(uding th e <intc of the co 111111c11c..:1:1111,;1ll uf thi.: tenn of such
new Ic~sc and all cxpe11ses includi nUi without li mit ntio u, rc r:so rn 1lJ lc ;1tto mcys· fees nacl
cli shurscm c nt s and co url custs inc urred by Landl ord in l:O nn cction wil h 1hc default l,y
Tc uan l nm! the tzr111in;1ti on and th e prcpar ntion nf the new lt~.t sc , ,u ;d (ii ) th e Lea se hold
Mortg:i ~c c i;h:i ll conu ncncc nnd diligc11 tl y proce ed lo c ure oll dcfuu lt s ex isting under th i~
J ,cusc wl1i ch i1 re susce ptibl e to cu 1c. No ll 1i11 g in tl1 is I .1.:usc shall nbligntc any Lcn sc ho lcl
Mort gagee to t.:nt cr into :1 new lea s:; wi th Lumll orcl.
I:.. Lnn dl ord ac~:nowl cdgi.:s 11ml ai;rcts tl rn t lhe cure uf cc rl;_i i11 No n.Mnn cl:try
Dcfm dt s nrny rc.,111irc possessi on or co nt rol of the Prc1 ni se!;, J11d th e pm1npl urnl di l 1i;l,1ll
exercise of its ri ghts a nd remedi es under th e Leaseho ld Mo11 gt1 gc tu u lit ,1i11 Mich
poss essio n or co nt ro l shnl l co nstit ute diligent nc tion by L cil sc lwld Mortgn gcc to cu 1c the
default . If Leasehold Mort gage e eunno 1 reasonab ly remedy u Non -Mun cln ry Defn uli
until after Leasehold Mortg,gee o btain s either pns«css ion nf the Pre mises, Landl ord may
not terminate or cnnccl the Lease or assert II p~rtia l ur total evicti on hy reaso u of such
Non -Monetary Default unti l the exp ira ti on of t rcn suuul>le periut.! 11:.;c::s~my 10 o btni n
ei ther possession of th e Premi ses and remedy such non -mon etary defaull. The lime
29
0 00.,/!i0l01G.0 1'.;0/4102lG7.) TOO:)
available to u Leasehold Mortga gee to initiate foreclosur e proc eedings as aforesaid shall
be dee med extended by the num be r of days of del ay of occasioned by judicial restriction
against such initiation or occasioned by other circurn stunces bey ond the Leasehold
Mort gagee's con trol. Notwithstanding an y provision of thi s subpard gr aph E to the
contrary, Landlord shall ha ve the ri ght to lcnninnt c or cancel thi s Lease or to assert a
partial or tot al evict ion in accordance with the tenns of thi s Lease at any time after the
e.,piration of nine (9) month s following lhc date Landlord serve d a copy of Tenant's
default upo n th e Leaseho ld Mortgagee, provided howeve r, during the cure perio d
Lea se hold Mortg agee sha ll keep or ca use lo be kept cu rrent all mon et ary oblignlions clue
under the Lease.
F. No twithstand in g anyt hing to the contrary contained in thi s Le ase ,
Leas ehold Mortgagee shall have no obligation hereund er to remedy any default, act or
o mi ss ion ofTenant under th e Lea se. Furthennorc , Lea5eho ld Mortgagee shall hav e no
obli ga ti on to cure any No n-Mone tary Defa ul t or oth er eve nt ur ob li gat ion of Tenant
which is a perso nal obligati on of Tenant and ca nnot be cured hy I .e asehold Mortgagee.
G. During th e per iod that a Le ase hol d Mortg agee shall be in po ssess ion of
the Premises and/or du ring th e penden cy of any foreclosure proceedings instituted by a
Leasehold Mortgagee, the Le asehold Mortg agee sh all pay or cause to be paid all charges
of wh atsoever nature payab le: Uy Tc:mml l1~rcumJt:r whicl1 have:: betn uccruc:t.l aml are
unpaid and which will thereafter accrue durin g said period . Followin g the acqui sition of
Tenant's leasehold estate by the Leasehold Mortgagee. or its dcsiPnee, either as a result of
foreclosure or acccp,auce of an ussigi u11 ent in lieu of forecloswc'. ~•e ! .easeho ld
Mortgag ee or party acquiring title to Tenant's lease hold estat e, whereon L:.ndlord's right
,,., efTec; a terminati on of th is Lease base d up on th e default iri que stion shall be deem ed
wuived . Alty defuul< not susce ptible of be ing cured by th e Leasehold Mortga gee or party
acqu ir ing titl e to Tenan t's leas ehold es tate shall be an d shall be deeme d to have been
wa ived by Land lo rd upon compl etion oft·•e forec !osure proceedings or acquisition of
Te mu,t 's int eres t in this Lease by any purchas er (who may , but aced not be, the
Le ase hold Mortgagee) at the foreclo sure sa le, or who otherwise acquires Tenan t's interest
from tht Leasehold Mortgagee or by vi rtu e of a Leasehold Mortgagee 's Exerci se of its
rc:rncdic s . A11y such purch ase r, or successor ofpurchn..scr , shall not be li able to perform
tbe ob li gations im posed on Tenant by this Lease in cun ed or ac cru in g after such
purchaser or successor no longer has ownership of the leaseho ld estate or po ssess ion of
th e Premi ses.
H. No thi ng herein shal l prec lud e Landlord from e<ercising any of
Land lord 's ri gh ts or re medies wi th res pect to any other defoull by Tenant durin g any
period of any such forbearance , su bjec t to tbe ri ghts of any Leasc hc,ld Mortgagee as
hedn pro vided.
I. In the event two or more Leasehold Mortgagees each exercise their ri gh ts
hereu nd er and there is a conllict whi ch rend ers it imp oss ible to comply wi th all su ch
requ ests, the Le.ase hol d Mortgagee whose lea.se ho ld mnrteoee would he sen ior in priority
if th ere were a forecl os ure shall prevail. Jn th e event any Lea se hold Mortgagee pays any
renta l or other sums du e hereunder which rclaie to pe riods oth er than during it s ac tual
30
0D0-4/~0JO:C..0!58/4 1H7G'.7.3 100?
ownership of the lcnsc hold cs tntc , such Lenc.c hnld Morl gngcc shall he st1b1 ogn tcd tn any
and all rights which may be nssc rtc cl ngninsl L;inc ll tu'd with respect 10 such pe riod ,,r 1i111c
J. Upon th e rcnsonublc requ est of' an y l.c;i sdwld Morlgngee, Lancllu nl and
'l'cnnnt shall coupcrn tc in inc ludi ng i:1 th i); l.c :1 St! hy s11i 111hlc :11n cnd 1ncnt or s~p matt·
:1gr·c1!n,c nl from time to t i mu rtlly pruv i r.io n fo l' th e purp ~:ii.: ti f' im ;1 lc 1ncnti11g thl~
protec tive prov is io ns co ntni nccl in th is l.c.i sc for tin; hc ndi t ;_,f's uc h Lc:1scl 1old M n n gugc1:
in allowing such l..cn sch oh l Mo rl ga11c:c reasonab le mcum; to protect or i,rc"c rvc lh c lien or
,t s pw11oscd Lcw:cho lcl T ,us t Deed on the oecurrcncc of a default un der the term s or t:10
Ll:W>C . l.,:rn tll nrd ancl Tern.m l shnll cxccuh:, tlcl ivr.r, :m e! :t dmowl cclgc :iny :uncnd mc11 1 or
~c p:,ra tc agn.:cmi.:nl 1\:aso:1ably necessary to effect nny ~uch rct1uirc nicnt ; provided ,
h oweve r, th.il any such nmcn dmcnt OJ sc pmatt.: ugrct.:111<.:111 shull 1101 i11 any way off eel 1hc
t cnn or renta l under thi s Leas e no r oth c.:rwi~c in :rny nrn lcri al n:spcct adverse ly affect any
r ight s of Landlord under th is 1.e usc.
K . Tt~n:m t shall rr:imbur::c L:,ndlord :111y :1 llrn 11cys ' feet; o r o lh cr di rect out of
p ocket co:;t~ i11 cu rrcd in crn m1.:c tio11 \' .. ilh uny lcrn,1,; ,111 ,c ml 11 11.:11 t:• rn l,tl u.:1 ducu 1m.:11 t:i tiw1
rn re view in cu 11111.:c ti u11 wit h Tc11m 1t 's p1oprna:d 1.cnschol c! Mrnlg:igc .
L. l'rov,clcd th ere is 110 cos t or li nhi lil )' to Lan dlord, Lun :ll ord siiall
rcnso nal.,l y cuopc r.i k with Te nant in con m:ctin11 w it h :my ac111:il or prop ose d lcnst..·l wlc!
I a mt or any oth er potential sm ircc of finan cing :i vui l:ib lc lo Tcnrmt. By wny ol' cx 111nplc
hut not limitnliu11 1 Lautll o rd :;lmll promptly provide. infurnmtirn1 rclulcd 10 this Lease as
r easona bly rd1ucslcd by th e ucll rn l 0 1· polc:ll iul Jin anci nt; $Ourcc or necc~:su ry for Tc 1m:ll
to co mplete uny app li cati on fo r such finan ~in u: withi n twen ty (20) days after bein g
requested Uy a current or propo scct I .c:i sc hn ld Murt~:igcc cx ccu\c :m d <l cli\'e r u 1~~11dl ord
w1 cs loppc l on comm crci :dly rc:1son abl c ter m~; nntl execute r: stun dr.rd "owner's
;1ffid;1vil'' for th e bene fit of 'J'cna11 l's till r.: u >111p;i 11y and wcvide suc h Land lord
o rg~m iz.ation doc :uucn ts, consen ts or reso lutions ris m:1y be reasonab ly required by
Tenant's titJ c company in co nn ec ti on with a1 ,y title insu rance Pl•li cic~ issued to Tr.n:m1 or
irs I .c:\t:~hnld Mnrtene,ce in co nn cc:ion with lh c Premi ses .
M . If any rirospcct ivc LcJschol d Morlg:i gcc req uires m1y 11 mUiCi cu ti ons to
11i ;s 1..cusc as n condi tion to providingu lo an to Tena nt , Londlord shall not unreu so11nbly
"it hholcl its co ns :11 t to such moditi ea1ions , prov id ed that l-1ndl ord shall not be requ ire:!
to con scn l to any J-i uch modi fi t:al io11 pr.:r t:ii nine tn th e Base Rent, th e Tenn, or un y oth er
11111 tcri11 l ccum.1 111ic prov ision of thh; L~U/ic 1 no r to nny moclifica ti on which would
1,1 ;11 cri.illy dcc rcnsc Lu 11d lord's I igl\l s or 111 ah.:ria ll y i11 crc;asc Li111dlor:j 's bu rdcnl-i n r
ohl ign ti on s hcr:.!und t:r 11 s rcnsv m1 Ul y d~1crmi n1.~d by Lrmdlorcl .
ART ICLJi 19
lt c p r c~c 11t :1fi o 11s of Lnndlul'<I :11111 Tc u:111(
l 9.1 !Ll.:ur.csc nt uti ons u f Lnndlord. Ex cep t as oth erwise dis cln scd 0 11 Sdn:dul c I
111tll chctl here to, Landlord represents and warrants to Ten ant tha~ as o f the Eflcclive Date :
JI
D0O.V~JUG 015U/41C.?767,) re®
A. Landlord is a non-profit corporation validly organized and existing under
the laws of the State of Colorado. L.indlord has the full righ~ power and au ~1ority to
enter i11tu this Agrccnu::111 ru1d to pcrfo n11 LandlorJ 's obl igations hercu11der.
B. Th is Agreement (i) has been duly authorized , executed , and delivered by
Landlord, and (ii) is the binding obligation of Land lo rd.
C. Landlord has not grnnled , otl,er than to Tenant, any outstunding option ,
righ t of fir s! refusa l or any preemptive right with resp ect to the pw-chase of all or any
portio n of tl1e Premises.
D. To the best of Landlord 's kn ow ledge , the Premi ses iuid use and
occu pancy thereof is not in vi o lation of any laws and no Y.'Tittcn notice of such violation
has been rec eived by Landlord and is not the subject of any exi st ing, pendin ~. or
thr ea tened investi gatio n or inquiry by any governmental authority or s ubj ec t 10 any
reme dia l obligations under any la ws pertaining lo or relating to hazardous materia ls or
oth er cnvirorunental co nditi ons.
E. To the be st of Landlord's knowled ge, there arc no unrecorded ea sements
or rights-of-way affecting any or all of the Premises .
F. ,,; laws uit has been filed against Landlord regard ing th e Premises .
G. There are no other leases, ag rce.mcnts or contracts in existence rela tin g 10
the Premises, includ ing , without limitation, tenant leases, service contracts, or ·
mana gemen t agreeme nt s.
H. Landlord hns re ceived D(' notice from any insurance compnn y with
respect to the cancellation of any poli cJ c,·nceming the Premi ses or reh:sa l of the
insuran ce company to insure the Pr emis es.
I. The re u,c no oral agreements affec ting th e Premises.
J. There is no litigation pendiag witl, respect 10 lhe Premises rel ati ng lo an y
Envi:oruncmn l Lnw vi olation s. Exc ept as clisclos ed in writing by Lnndlord , no not ice of ·
an £nvirornn enlal Law violation or other written communication las been received by
Landlord from n go\'emmenlal agency or any 0U1cr person or cntit~ al lcgin g or
sug~esting an Environmental Law violntion on the Premises. TI,c :e rrr. "En,·ironmental
Law ," as used in thi s Agre eme nt, shall include : (I) Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended by the Supc rftmd
Amendments and Reauth ori zation Act of 1986 , 42 ll.S.C.A. §9601 , et seg .
("CE RCLA "'); (2' Sol id Was te Disposal Act, as amended by the Resource Co nserva tion
and Rec overy Act of 1976, as amended by the Hazardous ar,u 5olid Waste Am endm en ts
o f 1984, 42 U.S.C.A. §6901 , cl sc4.; (3 ) Federal Waler Poliulion Control Act of I 972 , as
am ended by the r.tean Water Act of 1977, as amended, 33 U.S .C.A . § 125 1, et seq .; (4)
Toxic Subst2.nccs Control Act of 1976, as amended, I 5 U.S.C.A . §2601 , el se q.; (5)
Emergenc y Planning and Community Righ t-to-Know Act of" 1986, 42 U.S .C.A . § 11001 ,
ct seq .; (6) Clean Air Act of 196 6, as am ended by the Clean Air Act ,\mendments of
1990. 42 U.S.C .A. §740 1, et se q.: (7 ) NationHI Env ironmcnral Pol icy Act of 1970. as
32
DO0J/50381:t 0l !>~/4 182" t\7 l rr,09
amcn,lccl, 42 U.S.C.A . §432 1, ct seq.; (8 ) Rivers nnri Hnrhnrs Ac t o f 1899, as nn>cru lc~,
J3 U.S.C ./\. §4 01, ct scq .;(9) Endangered S pecies Ac t o f 197), a nnr cndc d , 16 IJ 8 .C:./\.
~ I SJ I , cl sc4 .; (I 0) Oc c upat iorrul Sa fe ty nml 1-lcnlth /\ct of 1970 , as rr rn cnd ctl , 29
U.S.C.A. §6 5 1, ct seq.; ( 11) Sale 1J ri11ki11g W:rt cr Ar t of I 97 ~, '"' :rnr c nd ccl. ~2 IJ XC:./\
§1 00(1). cL seq ,; and ( 12) all :rppli c ah lc :a1111 tl arcl s, nrlcs. polici es 11ml otlr cr i,:nv c r11111 c11t .rl
n:q11irc.11 u:11 I..:.
K. T iu.n u arc 1u1 agrc u1m.:11t :;, co111 111itmc11t!l o r undcr!.i ln11d ii11.r,; li_y or betwee n
l.undl o nl an d 1111y 1hi1 d pm ly 1n 11 i;u;ie 1l tu which {i ) Lumll on.l agn.:c s to mukc th e l'1cmi:-:c ::
par! of ~11 y s1lcci al .1 s:-c s.1•Hn c nt s, s pcc inl di stri cl, or loxing district ("Ass1:s sn1c11i s"), 1,r (ii )
I .;111dl,,rd or its s uccc ssors in int e rest ;i re rcQl l ircd tu sc:J, grn 11t or dedic ate ;,11y 11:1rl t>f ll w
Prem ises or to grant any cascmc11l 1 wutcr rir,h1s , richt:H ,f-wny. 10:1 cl or li rcn::c IC\r ingrt.:-:i:
and egress or oth!!r use in respect to any p:1rt of th e Prcm ii:cs. wh ether on ac.coq 11t l1 f the
di.:vclopmcnt of ndjJccnt or nc nrby rcol J)ropcrt y or olh.;1 wi se. L.,111d lord h,,s 110
knowledge of nny /\ss essrn cnt s be ing contcmpl ntcd.
L. l..:111dlord ha ~ 11 11 l:1111wlt.::l~c of an y f,1c11 u 11 ulitio11, 0 1 ai:tion , p n.::;cn l,
c:rnl cmp lut cd. ur llm:;:tc11 c~I. which wo uld or mny result i11 1hc 1crrni11:11 1n11 n r imp,1ir mc11t
of :11;ccs-: tn anti fro:n th e Pre mi ses as i:u ch :uxcsi.: prc!:c ntl y c >:ii:11 :, :incl Lm1dl ord i:; n t in
violation o r 1111 y i.:,1 sc1n i:11(s1 rit;ht s -c1 f'-wny, r.rm diti on::, ...:ovcrnrnt ~; and I cst1ic1i,,11 s.
licc11scs. or 01hc r :1~n:c mc11t s hurcl cnin g 1.l1 c l'rcm i:-:cs.
M . I ,:11 :<ll 11nl IIWlll> 11,c Prc 111i :R•'• rn.:c 111\ll cl cur 111' illl)' IIH1r1,~a~t:. (11 th:cd or
11).2 B.i:J>rc:-:c n t:1liom: of /'c 11 :mt
A. Tc 1mnt i..; i1 liinit cd liHbilit y company vnli dly org:llli i.cd and cxi slill J;;
nnric r ti1e luws of the Stat e of Utah Tenant hns the full rig ht , 1x1wc r a nd authority to
cni cr into this A grcc mr:nt mu l lo perfo rm Ten ant 's o bligations h<;rc undcr.
B. Thi s /\grcc:rn znl (i ) h11 :i bee n duly 111 11hor i7..cd, cx~c ut cd, nn d deli vc1cl l by
·l'c ,mnt , and (ii) is the bindin g obligati on ofTcnnnt.
C. Tenant's Covc11n11 t us to l·la1.1rdo1L~ or Toxic Materia ls.
i. Tcnnnt hereby covc 1innts !lw t Tenant shall nol cn11 sc or 1H:rmi1 :11 1)
"H :11.a nlous S11l1stanccs 11 (w; hc1cin11ft cr defined) lo be pl.iced, hel d , locn tcd ur
disposed of in, on or nt the:. P remi se!-or nn y pan th .;rcof c;,~cc p l in m;.cu rd11mx wil l!
a ll up;>licnblc la ws, ~tatut cli , unli na nc c..-;, and regula tions.
ii. rcrn:mt here by H~t l!C~ tCI ind emnify LmHlll rel :111d ho ld Lnndlon l
ha rml ess from and a~ai nst :u1y :md nil losses , liahi litics , tl a111aucs, inj11ri r s ,
e x.pcnses, i11cluding rcaso nahle allomeys ' fees, co sls of an y settl emen t or
judgment un<l cl ai rns of n11 y and every kind whatso ever pai d, i11c :.irrcd rn )ufTcn.;t l
by , or asse n ed aga inst, Landlord by any person or entity or governmental agen cy
as a result of the escape, seepage, leakage, spillage, discharge, emi ssion,
J 3
L1lJ U1/:;0J81(,0l~n/41n?7G7.J TDO'J
discharging or release from, the Premises of any Hazardous Substance, provided,
iluwcvcr, that the foregoing indemnity is limilc::<l tu 111attc1s arising sole!)· from
Tenant's violation of the covenant contained in the preceding subparagraph 2.C.i.
iii. f or purposes of Lhi s Lc:asc, 11 H~Z11n.luus Substances'' sha ll mean
and ir.cludc those elcme111S or compound s which are contained in the list of
hazardou s substances now or her ea fter adop ted by the United States
Environmental Protection Agen cy (the "_EPA") or the list of toxi c pollut ants
designated by Conpress or th e EPA or which arc now or hereafter defined as
hv.nrdous, toxic, potlutants , infec.tiou s or radioactive by any other Fedctnl, suit e
or loc al statut e, law , ordinance, code, rule, regul atio n, ord er or decree regulating,
relating lo, or imposing liability or stnndards o f co nduct concerning, any
hazardous , toxic or dangerous waste, sub stan ce or materi al, as now 1r at any tim e
hcrcsftcr in effect. "Hazardous Substances," for th e purposes o[this Paragraph
16, shall include petroleum products , asbestos, and polychlorinatcd biph cnyls, and
undc:rground slorng(' tanks unlr.s s installcrt, maint~incd, nnd closed in compliance
with all applicable law s.
iv. In lhe cw:nt Hazard ous Substances we present on the Premises in
vio lati on of Tenan t's covenant in tl1is subparagmph C, and Tenant foils to clean up ,
remove, reso lve , minimize the impact of, or otherwise rcm ed inte such contamination
in compliance with aJI applic ab le lnws and regulations and to obtain a uno further
ac tion 11 or si milar closure letter from the governmental authorities with juri sdictio n
ove r such Hv..ardous Substances permitting th e development and use of the
Premises as contemplated herein \\ithout further remediati on (collectively,
11 Remediate," which tenn shall include obtaining suc h app rovals as are requ ired
from applicabk gove rnment al authorities prio r to tl,e co mmen cement of
Remediation activities on th e Premises), then Landlord shall have the right , but not
the ob ligation , after thirty (30) days prior written noti ce to Tenant and Tenant's
failure to Rcmediatc. or, if Ten ant cannot Rcmcdiate within tl1i1ty (30) days. th en
upo n Tenant's failure to commence preparation ofa plan to Remediate within such
thirt y (30) day period and diligent!)' pursue th e approval of such pl an nnd . the
comp leti on of the remediation work au th or ized by the approved pl an to comp let ion ,
to enter upo n tlt e Premi ses to Remediatc such contamination Notwithstunding the
fm ego,ng, in na event shall Tenant be afforded more than two (2) years allcr the
approvnl of Tenant's remediation plan by the appropriate governmenta l agency or
agencie s, or any shorter time required for tl1e completion of such remed iation b)' the
age ncies in grw1tin g suc h appro val, to co mplete sucb remediatic>n. Tenant agrees to
con un cncc preparation of such plan promptly up on receipt of not ice tl1at such
H:izardous Substances are present, to apply for app roval of such plan promptl y, and
to pur.;ue such approval dilige.ntly. All rea so nable cos ts and expenses incurre d by
Landl ord in the exercise of any such rights, which costs and expen ses resu lt from
Tenan t's viulalion uf tl1c covc11ants co1 1tai11 ed herein , sba ll be deemed Addition r1l
Rent under this Lease and shall be payab le by Tenant upon demand.
D. Broker. Tenant uck.t tuw lcdgcs that it has retaine d RE/MAX Mas te rs,
Inc., Jay Hannon (coll r.r.tivcly th e "Rrok e,") as its real estate agen t and broker and agrees
to pay such Broke r any and all compe nsati on due it a i a result of thi s transac tion .
0804 /S,0]Blfi.Jl!i8/41R176?.l T009
Landlord hus ugrccd lo rei mbu rse Te nant n porti on of such cc,mp c1,.'rn lion in ncc:o rd.111 cc
with n lctt l'r agreeme nt cxcc ulcd prior to thi s Lcn sc Except for foy Hmnmon act in!' us 11
brok er assoc iut c 0 11 bclrnlror llE/YIAX Mas te r,:, In c., eac h party hereby illll t:innil ic,: :i llll
nur.:.:cs to holcl the other p~1rty hnrm lcss from 1111 d11111 ;1ecs , cl :1 i1ns, li ahilirii :!:, 1r 1·J.'.11c.:usc•:,
i11 ::luding rcasonublc nml 11ct11 nl :1t lnmcys ' foe . .:~ (through ail lcvclr, of pn 1cl:cdi11 1(i:), n.:sulti1 1g
from ony clail m liinl 111 11y ht: •t~;sc rlcd against IIH: olhcr 1m1ty by noy r cnl L:Sl ;11t; hrnlo;r o r
fi11dcr wi ll! whom th e inclc mrn fyin g Jl.11'1)' e ith er hn s t•r is pm portcd lo hav e d1,;;11l ,
1il c111:iimk:r "r tlii s pa ge intcntiomdl y Jell blnn k]
35
r1no~1,;0J8l6015~/4 ~&2 167.3 10<»
N WI TNESS WH ERE OF. this Lease has bee n executed as of the da te wrillen above .
0B011r,.0)816 019/418,167 1 T('I0Q
L,\'..J DLORD :
ENr.LEWOOU/MCLELLAN RCSERVOIR
FOU~'DATI ON, n r.olorud o no nprofit corporati on
T:NANT:
BENJAMIN FRANKLrN ACADEMY PROJECT
DEVELOPMENT, LLC, a U tah li mit ed liability
co mpan y.
36
EXHHHTA-1
A PART Of T/--RGE L 1-A" AS RECORDED IN BOOK IT/7 AT PAG E 1404 , DO UGLAS
COUNTY l~ECt.>i<.D S, ALSO BEING LOCATBD 11'" THR NORTHWEST ONE-OuARTElR
(NW 1/4) (W SECTION 4, TOWNSHIP G SOUTH, RA.N GB 68 WEST OF 'f'HE 6"
PRlNCIPAL MERfDIAN , COlJNTY or DOUGLAS, STATE OF COLORADO, BEING
MORE l'ARTI CUl.NU, Y DESC!UBEIJ AS FOLLOWS ::
BEGINNING AT THE WEST ONf!-QUARTER CORNER OF SAID SECTION 4; T1-IENCE
N00"JS' I 9"W, /\LONG THE WEST wm n, SAID NORTHW EST ONE-QUAIU'ER OF
SA ID SEC TI ON 4, A DISTANCE u:' ,.3 '/•, i'l:iffTO APO!NT ON sou n-1 JUGHT-OF-
WAY EASEMCNT LfNE OF PL/.:··,-;:•:v _,,\'.;RECORDED AT llECllPTION NO.
2007045572, DOUGLAS COUNTY 1:1,CORUS,'l1iENCE ALONG SAID SOUTH RIGHT-
OF-WAY EASEMENT UNI' '11-ffi FULLOWING HVP. (5) C:OllRSF.S :
I. S53°49' SO"E, A DISTAN CE OF 42.28 FEET;
2. N36 ° 10' I 0", A DJSTANCE OF 12.00 FEET;
J. S53°49 'l0"E, A DI STANCE OF 760.93 FEET;
4. ALONG THE AR C OF A TANGENT CURVE TO THE RJGHT, H.WlNG A
CENTilAL ANGLE OF 2 1'34 '35", A RADIUS OF 800 .00 F EET, AND AN ARC
LENGTH OF 301.26 FEET;
5. S32 '15 '!5"8, A DIS TANCE OF 153.77 FEET
TO A POfNT ON THE SOUTI I LINE OF SAID NORTHWE ST ONE-QUARTER OF
SECTION 4: TH ENCE S89 ' (1'0l"W, ALONG SAID SOTJTII LINE A DISTANCE OF
933.57 FEET TO THE l'OINT0F DEG rN N l NG.
CONTAINING AN AREA OF 10.13 5 ACRES (441,467 SQUAR E FEET) OF LAND , MORE
OR LESS .
I
111
1'1
I
I
111
1'1,
I
l-V~L::lR:1H::::X~'.•I ___________ ;
EXHIBIT B-1
PARCEi. DESCRI PTION (1 \S -ME~3URED)
/, PART OF "PARCEL 1-A' AS RECORDED IN BOOK 11n AT PAGE 1404, DOU8 1.AS COUNTY
RE.COnDS . ALSO BEING LOCATED IN 11-iE NORTHW EST ONE-Q UARTER (~W 1/l) OF SECTION
4. TOWNSIIIP 6 SOUTl-i, RANGE 66 WEST OF THE sn• PRINC IPAL MF.RIO IAN. COUNTY OF
DOUGLAS, STATE OF GO LOclADO, BE ING MORE PART ICUL~.RLV DESCRIBE D AS FOLLOWS :
,(
COMMENCING AT THE WEST CNE -OUARTER CORNER OF SAID SECTI ON .4; ~NCE
N09'40 '01"E, Al ONG THE SOUTH LIN E OF SA ID NORTHWEST ONE -OUA!JT.~-'2F''MID
SECTION '-, A OISTANCF OF 50 2.01 FE ET TO THE f.QNl' OF BEGINNING: T~E~CE ~9)10'0\'E
CO Nl'INUING ALONG SAID SOl/TH LI NE, A DISTANCE OF 431.56 FEET ,T1ll,t~~J ON TH E
SO U I H RIGl-l f ,OF,WAY EAS El,IENTLINE OF PLAZA OR IVE, AS AECOHD~D-A-/'li,f:~EPTION NO .
2'.!070~5572, DOUGLAS GOU~TV RECOH DS, THENCE ALONG SA ID'so""1:1 ~ RIGHT ·O '-WA•
CAS WENT LINE TH: FOLLOW ING "fllREE (3) CO UR SE S: . 'r-\·•·•1-1<,,. •·
,.¾, '
1. N32"15'15"W,A DIST~:E OF 163.77 FEET ; .( .I' \_,
2. ALONG THE ARC OF A TANGENT CURV E TO THE,j(!1;;J", ~~ING A CE NT RAi. ANGI E OF
21 '34'35', A RADIUS OF A00 .00 FEET, AND AN ARC l,lil\\glfitJ.-301 .26 FEET ;
3. N53°49'60'W,A DISTAN:E OF lBS .02 FEET ; ~ ·•\ 'r·
Tfl ENCE S00 'IE'59'E , A DISTANCE OF ,,G9.4G ~c±r 'i;Q THE fOINT OF BEGINNING .
~ ~ ;~ .. -
CONTA l~IN J NI AREA OF 2.676 ACR ES{~C.fi!i2•S00ARE FEET) OF LAND . MORE OR LESS .
/~ •;~)
THc BEARING S ARE BASED ON TH~QllJH i,!NE OF THE NORTHWEST ONE -OIJ/\RTER (NW 'lo)
OF SECTIO N 4, TOWNSHIP p, ~OUTH > ~ANG E GB WEST OF TIIC OF TtlE G ™ f'HINCIPAL
MERIDIAN . BF.I NG A GRID BE·~~~O OF ;9'40'01''\V, SI\ID SOl/Tl-i LINE IS MONUMENTED ijy
FOUND 3-1/4' ALUM :NU¥e-~·!l,te.~~~D 'COOT PLS 22103 2003" AT THE WEST ON E-OUAATEA
,:;IV,) CORN EA AND_t.~·114't~LCJK11NUM CA? IN A RANGE BOX STAMPED 'COOT PLS 10734
1990' AT THE CE':Q",~H,_0~§,-,ll□AATER (C '/4) CORNEn . THE GRID B:ARING WAS oaTAINE D
r-RO M A GLOB~ PO~T:ONING SYSTEM (GPS) SURVE Y BAS ED ON THE CO~ORAf)Q HIGH
ACC URACY ~FERENO E NETWOn K (CliARN). THE GRID BEARI NG IS NA003 {1 992 ) •
CO LORA11's;·~TAlE PLANE CENTRA L ZONE (502), I . • -• .,
PREP,vi'Ep BV : ,-
JA"(l;J .. k-f."Al'flWEI.I ., P ,I, s. 200~7
FOR'AiJB'oN BEHALF OFTliE LUND PARl":SEASHIP, INC .
12265 W; 01\YAUD AVE. SJ IT E 130
LAK "IVOOD, COLORADO eo22a
_1
ll\JH IHWt'.81 L:Ol<llff<
!;I , htltl ~. t u•~ 11!olll'{,,
::1 1 ,1-t/J' Ai.UM 1:111 • u, r nu,
~I ~q IOJ I ·,t AUl'H I A'I ',11 IW.f,
CXHIUll U-1
2f10' 100·
I 1
u' ;:ou·
I I
l\ l:Nr/Lf:~~:i~~ A~;:~1:1,1 l1N \ '
fll:/11:IIVOI// IDIJMM'r111n
IP/:(; ND 0909~Wl, Ill(, 1711, /'fl WI~ e. /W ll :f:'/ Ill , t><JUUtMiG Dt lfJJ rnwom,r.
~ I ;,;:~:' ;,:~(:{,::;~:;:;:i\~, ¼,!
,-:I 1w 1. Nr1 t110!JS(;r.,1.fllr 1171,l'fl 1,1n, 0 ;
J ·,
IIOUl'.:J 1t ~f;f)I /N /l l/r r.01111:; i:/
I I 11:: rYJ l!III I IS I\ GfV.l'lllt. IJl'l'l!:11.JN {N lllf PARi.[I 0t :r:cut11 H)
OM ll ll l\l\M:tlH1 II <iN. OI.SCIW'110 N AN O IS tltH !N(CNtll.:O 10
A-=21'JfJr,"
,,--ll ~HII0.00'
l•·JO \.lG'
\
N.tn ti1:,"w
15~.'17' -··· •·-·\ ..
11 ... t:1 Ulll ~1ll (Vf ( 11! l\i Ill our1<rMH/l:; l\'.l l>rflNfll 11-1 r.1(:, \fl ',! l q fl
'J0 0 rio.'"4 1n,OJ!lll I PAl l l (ll·I W l l:H f.:,.,-;-
'};61\1.11:" F • 20tr DOOi < 1 /'l'I , PACJI'. 1'10~
LI/\Tc:-3J 1612011 l)(JlJGLAS COLJN '1 Y lffC0 1U)!;
NW 1"1 Sl:C. II, r, GS .. ltGO w., 6111 r .M.
OOUGI.A8 (;OUN I V COI.OW\00 I/IV/I, lllltl/fl/Jl/,U/'1!1 lo IH/111'111'/Nfl
1•:\',~1<:i ,0 l 0l \dw9 \i';;ch1b1t11 \llmn1:1r1d ~r. l.o t.tlYrg, J/lfi/20 11 12:15:03 PM, I :1, J AC
RECORDING REQUE STEIJ 8 Y AND
WHEN RECO RDllD RETU RN TO ·
H. MichRel Millnr, E:.q .
Berenbaum Weinshicnk PC
l 10 17th S~cct, 48" Floor
Dc11vcr, Colorado 802 02
EXBIDIT C
~-~-~~-~~~~~-.. ---·-----·-------(Sp.,cc Above for Re corders Use On ly)
MEMORAND UM OF LEASE
·rttIS MEMORANDUM OF U·:A Se ("Mcmuru.wJu,11 ") i~ 11111dc wid cnlcrcd into 11s or
March 22 , 20 11 , by and between Englewood/Md...elian Rescrv oi; Foundation , a Colorad o non•
profil corr,orction (''Landlord"), Md Oenjomin Franklin Academy Project Do,·cl op mcnt, LU.', D
U1al1 limited liablliry company ("fcnant"). ,.
1. LP.ASE, Lmdlord and Tenant ~ntered into that ccrtnin Oround Le ase
dated as of Mnrch 22, 20 I I ("Lea,~'J,
2. TERM. The Lc.lM i:.-c;cfcctJvc a., of March 22, 2011 . Tho Initial Term is
for three hundred (300) monl.11 s, eo mmoncing from th o Bnso R11nt Sta.'1 Da re , but in any ovont
shall end no later than 11 :59 p.m. on September 30 , 2036, all in accordMce with the provis ion s
set forth in Lease, all o:" whi ch provision s ure speclfica\ly made a port hereof as though fully w1d
comp letely sci fo rt h herein. All cap ituli7.cd le rm s usd in this MemorRnd um sho ll have the
mean ing set forth in th e Leuo un le ss otherwi sr defined herein . Tenont ha s oplion9 lo c~tcnd
the Lease for five {5) udditional ,011s1.."l.:Uli\'c tr · .. s, c1u;h cousi :itlng often (l 0) yen ~s.
3. PReMISES . Land lC1 1 ~ ,was e~ to Te r1 an:, and Tenant leRses from
La nd lord, ths: certnin renl JJropcrty co :uistin~ oflon C ("Premises") lu cawd in Do uglu County 1
State of Co lorado, ns de scri bed on l~xhlbit A nt tachod heret o and made a pru-l hereof by this
rcfi.:rcm.;c , to ge ther wilh ulf rights of ing ress and cgreis ru1d ell otJ1er righ1s nrr11rtP.nnn t In snirl
Prcmi$c s in cluding, \'t1 thout limitntioo, tbe right to use the Im proveme nts to b:. constructed b)'
Tcnnnl on the Premi:t cs fu r th e purp usn:; co11tcmp!11tcd in the Lease, 11l1 of wbi :h right,; nr c more
p11nicularly descril,cd b the Lco:;e.
4. use . Rcforcncc is pnniculnrly 11\ndc to Article 7 of the Lcn!ic wherein
Tenant is grunted the ri ght [o uso the Prcniises for nll lnwful purpose s in occo rde.nce wi 1h the
rcquircn:cnt:i of th u Les i:o and a.ny CO\.'Cfllll'!.~, conditi ons !nti rc stri::ti ons now of recmd, or
hcrcafler amended or imposed with th e prior wriUen co nsent of Tenant, which conscnl !!hall nol
be unreasonably wllhhcld ur dclnycd.
5. PURP OS E OF MEM ORANDUM OF Ll:,AS E. This Memora11dum is
prepared for the purpo se ofrccordin~ ar.d in .no way modifies the express 11.nd pnrtl culo r
previsions of the Lons,. In 1hc rve nl ofnny conflict h!:twccn tho te m1s s!I forth in this
Mc:norondum ond lh e lcrm s of the Lc 11sc., th ,: term:; of lho Leose shntl coo tro l for oll pmpolcs .
Pa ge I of3
IN 11'1'11'/ESS \\I I IEREOF , thi , Mc ,nora ndu:n o f Lease has hccn cxeci:tcd as o f
th e date (ir s: wrincn abov,:,
LAN DL ORD:
ENGLE WOO D/MCLELLAN R.ESERV O:R f'OUNDA 'I ION,
n Co lora Jn 110 11-p ro fi1 cr,rp orn ti on
By :_--·---·--
Nn mc :. ________ _
Its: ____ _
BENJA.vl [N •R/\NKLIN ACADE MY PR OJE CT
DEVELL 0 ME NT, I.LC,
a Utah lim r, ocl liabil it y co mpan y
Dy:
Name :
l ls
ST A TE OF COLOlll\.)O
COUNTY OF ARAPAHOE
)
) ss
)
Th e fnn :coing Me morandum of Lea se was ackn owle dged be fo re me th is dav of
Ma rch,20 11 ,by""C""_,----------~-,---"' --of
Eng lcwood/McLcilan Rc st:-rvuir Pu 1111<la tiu11 , ii Colorao ') non-profit corpornt i on .
WITN ESS my hand and offic ial ~eal.
My co 111111 iss ioo expi res: ___________ _
STATE OF UTAH
COUNTY OF ______ _
Notary Public
)
) ss .
)
Th e foregoing Memorandum of Le as e was ackn ow ledged befo re m e th is _ da y of
March, 20 11, by __________ as ____________ of Benja min
Frankl in !\cndcm y l'roj cct [)evc lnpmcnt, LLC, a Utah lim ited li abi lity co mpan y .
WITN ESS my ha nd and oft ,cial seal.
My commi ssion cx pirc5: ___________ _
Nornry Pub lic
EX'HIBlT A-l
A PART OF "PARCEL I-A" AS RECORDED fN DOO!( 177 7 AT PAGE 1404, DOUGLAS
COUNTY RECORDS, ALSO BEING LOCATED INTHE NORT!fV/ESTONEj,UARTER
(NW 1/4) OF SECTION 4, TOWNSHIP 6 SOUTH, RANOE GS WCST OF TI[E 6'
PRINC IPAi . MF.RffilAN, COUN TY OF DOUGLAS, STA TE OF COLORADO, BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS::
BEGINNING A 1' THB \VEST ONE-QUARTER COFNER OF SAlf) SP.CT I ON 4; THENCE
N00°35' 19"\V, ALONO THE WEST LINB OF SAID NORTHWEST ONE-QUARTER OF
SArD SBCTION 4,'A DISTANC30P 818 .7~ FEET TO A POJNTON SOUTH RIGHT-OF-
WAY P..ASEMENT L!NE Of PLAZA DRJVB, AS RECORDED AT RECEPTION NO .
2007045572, DOUGLAS COUNrY RECORDS, THENCE ALONG SAID SOUTH RIG:!T-
01'-WAY EASEMENT LINE '11-IE FOLLOWING FIVE (5) COURSES :
I. S53°4 9 '50"E, A DISTAN CE OF 42.?.R FF.ET;
2. NJ6°10'10", A D!STA.NCEOF 12 .00FEET;
3. S5J 0 49 '50"E, A DISTANCE OF 760 .93'FEET;
4. ALONG THE ARC OF A TANGENT CURVE TO TllllRlGI-IT, HAVJNGA
CF.NTRAI. ANGLE OF 21°34'35", A RADIUS OF 800.00 FEET, A1''D AN ARC
LENGTH OF 301.26 FEET;
5. Sl2°15'15"E,A DISTANCE Or' 15,.77 FEET
TO A POINT ON THE sot.rrn LINE OF SAID NO RTI-rwEST ONE-QUARTER OF
SECTION 4; 11-IENCE S89"40'01"W, ALONO SAID SOUTif LINE A DISTANCE OF
9i3 .5 7 FEET TO THE POW: OF BEGINNING.
r.GNTAl!'I ING AN AREA OF 10.135 ACRES (44 1,467 SQUARE FEEl') 01' LAND, MORE
OR LESS.
EXHIBIT D
I. R~s ervations contained in th e Patcnl
Fron t: The Unit ed Stat es o f Am eri ca
Rec ordin e r>at e: May 22, 189 0
Recordin g No : Book P at Pag e 80
Which am ong othe r thin gs recit es as fo ll ows :
S ubject to any vested m1 rl accrued water rights for minin g, agricullurnl , manufa cnr;ng, or
oth e r pu rposes and rights lo dit ches and re se rvo irs used in connection with such wa ter
ri ghts, as ma y be recog nized and acknowled ge d by loca l custom s, laws and decisi ons or
th e cou rt s; and al st• subj ect to th e rig ht of th e proprie tor of a vein o r lo,ic ,o ex tra ct and
remove his ore th e refrom sho ul:J th e sa me be fou nd to pen etrate or int ersec t th e premis es
hc1c uy J;ldllt ed, eS pro vided by law .
2. Utility easement gran ted Publi c Service Com pan y of Co lorado as recorded February 27 .
1964 in Book 155 at Page 344 , Quit Claim Deed recorded August 12, 19 70 in Book 208
.,t Page I I 4, re leas ed a por:ion "f the prope rt y wh ile al so :ese rv ing said right o f way.
). Ea se ment for water pipeline s rel ated facilities gran ted to !he Cit y a nd Co unty of Denver,
acting by and throu gh its Board of Water Commissior.er s, recorded Octo be r 17 , 1972 in
Boo k 237 at Page 305.
4. Any tax, li,:n, fee, or assessme nt hy reason of in clus ion of the Land in th e Cherry Cre ek
So il Co nse rvatio n Distri ct and th e Wes! Plum Cree k So il Ero sion Distri ct, as ev id ence d
by instrum ent (s) recorded October 3, 1960 at Recept ion No. 10926 3 .
S. Term s, co nd iti ons, prov is ion s, ag rermc111s and ohliga 1ions con ta ined in the \Vat cr fli gh t
Co ntrnct as se t forth belo w :
Kccordi ng Date: l'eb niary 21, I 886
Rec ordin g No.: 13ook Q at Page 22 9
6. AJ,y tax, lien , fee , or assc smcnt by reason o f in clu sion of th e Land in the Hi ghla nds
Ra nch Metropo lit an District No . 3, a;; evi dc ,. cd IJ y in stru mem (s J re corded Decembe r 30 ,
199 1 :i t Bov k 10 18 at Pace 9'12 .
7. Easemc ni (!) for th e purpns els' '!J, \,\ . 1.h .. Ju\,' .:&~Id rights in ci den tal th ere to. as granlc-:U i11 a
<lu cumc:nt :
Gran ted to : Public Serv ice Co mpany ui" Cv :om do
Purpo se : ut ility lin ts am! ,ela ted foc il itics
Rec o rd ing natc : May I , 20 09
Re co rd ing No : 2 009032 225
8. !\grecmcnt Regard ing Prop erty Res trictions , date d IJe ce mb cr 18, 2007 and recorded
Dece mb er 19, 2007 at Re ce pn on No . 200 7097731. as amend ed b) Ame ndm ent to
Acrecmc nt Reg:irding Pro per ty Res tri ctions da ted July 26, 20 10, recorded July 27 , 20 I 0
al Rece ption No. 20 1004 "434, and by S cond Amendm ent to A£•e ernen t Re gard ing
Properly Rcs tn c11 ons, dated March __ , 20 11 , and 1cco rd ed __ , 20 11 at Recepti on
No . __ _
COUNCIL COMMUNICATION
D.ilc: Agenda 11cm: ! Subjecl:
Morch 21 , 201 1 11 C ii · Reso lu1ion o f support fo r i 's\Rf t o ent er into a
1 lease of ap;:,ro ximately 10 1 acres to Ben Franklin
I Aca dem)' Proj ec t D evel~p nenl, LLC.
Initiated By:
Enelewood M el ell ,1 11 RPc;Prvnir Fn;ind ?.ti on
I Slaff Source:
M 1ch.1e l Fl~h ert y, FMR F Rn.=ud 1\-lem hPr
CO UNCIL GOAi. ANO PREVIOUS COUNCIL ACTION
In 1999 , City Coun ci l au1hori1.ed the creat ion of th e Englewooo Mclell an Res e,vt,ir Fo unda1i on
(EMR F; for th e purpos o f fac il 1ta1 in g th e clev elo pm enl of I rope rt y adj ace nl to 1h e Ci ly's /vlcLella 11
Re serv oir . On D ecem ber 17, 2007, Co un cil suppo·ted EMR F in th e sa le of appro,i11a1e ly 11 acres
of High lan d s Ranc h Pl anni ng Area (PA) 85 10 RTD fo r $3.2 .11 ill ion . On Decembe r I, 2008, City
Counc.:·I sup pvnc d EMR F in lea!>ing Jpp1ox i111 dl ely 12.8 ac res of PA64 l o n · Denve1. On Decembe,
6, 2C10, City Council, by reso lut ion, supported EMRF in its •nitial negotiations wi th Ben Franklin
,\cademy Proj ec t Developmen t, LLC , ior 4 .9 ac,es of PA 82 Ea st . And on February 22, City Co uncil
dpproved (: seco nd res olu tion of support fe r nego tiati o n of a lease of 10.1 ac res o f an alternate
location in PA 85 .
RECOMMENDED ACTION
E~ \RF recommends City Council approve o reso lutio n supportin g tl1 e EMRF 10 ente, int o a lease
with 1he Ben Frank lin Academy Pro jecl Develo pmen t, LLC, o f app rox imat ely 10.1 acres o f EMR~
property wi t hin H ighl and s Ranch Plan ning Ar ea 85.
BACKGROUND
In 1999, Ci ty Co un cil auth or iz ed, thr ough Ordinance 41, the c 1ea1io n of th e Englewooc Mclellan
Rese rvoi r Founda ti on, a non-profi t corporation charg ed with furlh er ing :he deve lopment of th e
Mcl.ell!tn Re se ,voir property and tra nsfe rr ed th e prope rty to EMRF . The fo ll owing goc1 ls fo r
deve lopment were es labli shed by Ci ty Co un cil in O rdirance 4 1.
I. Pro tec t the qua lit v of th e Ci ty 's stored wate r ,at tv1 clell an Reservo ir.
2. Pro tec t the rese rvoir eco system.
3. Es tab lish and ma ximize a fulure Ieng-te rm income stream 10 benefit th e City.
4. Main:ain th e qual ity of the Highlin e Ca nal re cre ational faci li ties and the we tl ands
ue tw~~n C-47 0 a.1t! Cuu 1,ty Line Road.
5. Minimize de velopment impacts on th e re~eivo ir
6. E.,hance the qu ali ty of life of the neighbo,hood of which it is r,art .
7. h han ce ,he quali ty of life ior resid ents oi the Ci ty of Eng lewoo d.
D11ri11 g 11,., r:,,,.,, 11t 1ve Sess io n of Feb1 u ary 7, 2011, f.MRF Direr1ois info rmed City Council o f the
c h,1nge c,f p tope l'l )' un dw c n1 1,ul er,11i o11 for le a si ng 10 th e Fr,1n~lin Ch arte r Sc.:huol. Th e ch dngr. of
loc.1i ion w;,•; ,c~Cc !;!.i it J 1ecl du t. to the I c,jec.lion ui 1!ie p rev n us l\1 prcncsed sit e plan by O o u r,lc'!s
Crn11 11 y. Th e cl e:vdopc1 hn d md•c..il tt.:d a w illil\g rw:;-: to p 1occcd wnh ni:.-go ti:i t ior ~ ()n the :llterni'l tivc
•.i lc . 011 Fe l1 11 1,•1y 22 , Co ,uu 11 .1 p1 J1t~vcdr1 1L!!:>1""J lu1 ion ;w1l 1rJ r w 1i.; rMRr Di rec:tc1r!i to e nl c r mlo su ch
n l!got1n u o ns, 1,vh 1ch h:wE: resu li ed 111 t his lt i;1,;e ;1H rr-ie m c n1.
/\pp ·n•1 ,d 0f t 1is reso l11t1on ac k1 1ov1 lt:dges Ci ty CcJlJIH ii'~ .... 111,p t:1 1 01 1h c 1i.~.i sc: ,1!;1eu,11 c nt h t..:1 weL·11
Uv\l~I· tmd ·1en Fra n kli n AcMfo my Pro jec t Dcvc loprn ent, Lll.
Fl'sAN CIAI. IMl'ACf
l~<:n 1.1I il 1:.c 1 l H! w ill ln i1ia l e rl1in n g ti 1e 6•m o nt h co1P,lrn u i1111 peiiu d ~,t 11 •~ r .i l t: u f $4 ,000/11 1u11 tli . Th,.
,,r.n u,d b 1:,e 101 ta l rn te w ill psc al.11~ from$ I UU,OUO i n Ye ar I t•) S ll\9,000 i11 Yea r 5, for a11
,1 ui:re~.1 1., 101.1I .,f $765,000. D ependi1 g on the ,.chuol 's abili ty tu expa nd 11, s11 ir len1 po pulati on,
rcv(~111 JC 1n Y c;;u s 6 thro ugh U w ill w ta1 $6-1 7,0fln, w il h ,111 n11 ,1I r.:~c..ilt1 l i,Jns /i;i ~c d o n 1h e Co n sumer
11 nr~ I 1 d1'l '< 1l u•11.•.1hN
U ST o r ATT'ACI IMr.NTS
l\esoh1 11 ,111