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HomeMy WebLinkAboutLEASE FOR THE UNISYS SUBSTATION FOR THE RICHMOND COUNTY SHERIFF'S OFFICE LEASE AGREEMENT This Lease Agreement ("Lease") is made as of the Effective Date (hereinafter defined), by and between Discovery Plaza, LLC, a California limited liability company, having an address for purposes hereof at 101 Hodencamp Rd, Suite 200, Thousand Oaks, CA 91360 ("Landlord"), and Richmond County Sheriffs Office, having an address for purposes hereof 400 Walton Way, Augusta, GA 30901. The Effective Date shall be the date upon which this Lease is last executed and/or initialed by Landlord and Tenant. 1. Basic Lease Provisions and Definitions. (a) Building: Discovery Plaza Building 1 Seventh Street Augusta, Georgia 30901 (b) Rentable Square Footage of Building 118,395 RSF (c) Premises: Suite 103 (d) Rentable/Leaseable Square Footage of Premises: 2,018 sq ft/ 1,716 sq ft (e) Initial Term of Lease: Five(5)years (f) Commencement Date: One hundred twenty(120)days after the Effective Date of this Lease, subject to the provisions of Section 3 below (g) Base Rent: Years Annual Rent Monthly Rent 1-5 $0.00 $0.00 (h) Rent Commencement Date: Rent and Additional Rent shall commence upon the occurrence of the Commencement Date (i) Additional Rent: Operating Expenses, PILOT Payments (j) Tenant's Prorata Share: 1.70% (k) Renewal Options: One(1)option of five(5)years 2. Premises; Common Areas. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises described in Sections 1(a), (c), and (d)above and depicted in the floor plan attached hereto as Exhibit "A" an made a part hereof (the "Premises "). In addition, Tenant, its employees, representatives, agents, cus mers, guests and invitees shall have the right to use all driveways, parking areas, sidewalks, lobbie elevators, hallways, restrooms, and other common facilities and areas (collectively, "Common Areas") in r about the Building, jointly with other tenants and their respective employees, representatives, agents, customers, guests and invitees. Tenant and its employees, representatives, agents, customers, guests and invitees shall not use any of the Common Areas in a manner which obstructs or interferes with the reasonable use thereof by others. Landlord will maintain the Common Areas in a clean, safe and sanitary condition and provide all necessary janitorial service, snow removal, maintenance and repair, and utilities to all Common Areas. 3. Term. The term of this Lease shall commence on the Commencement Date and continue until the expiration of the period specified in Section 1(e) above after the Rent Commencement Date (the "Initial Term" and, together with any renewals or extensions thereof, the "Term"); provided, however, that if the Rent Commencement Date is any day other than the first day of a calendar month, the Initial Term shall include the partial month in which the Rent Commencement Date occurs plus the period specified in Section 1(e) above, and the first lease year shall include such partial month plus the succeeding twelve (12) months. Notwithstanding anything to the contrary contained herein, the Commencement Date shall be the later of: (i)the date specified in Section 1(f)above; and (ii)the date on which Landlord delivers the Premises to Tenant with Landlord's Work (hereinafter defined) substantially complete and with a valid certificate of occupancy or its equivalent allowing Tenant to conduct its business in the Premises. Upon determination of the actual Commencement Date, the parties shall execute a confirming agreement in substantially the same form as Exhibit "B" attached hereto and made a part hereof. 4. Construction of Premises. (a) Landlord's Work. On or before the date specified in Section 1(f), Landlord, at its sole cost, shall complete the work described in Exhibit "C" attached hereto and made a part hereof ("Landlord's Work"). On or before the date specified in Section 1(f), Landlord shall also complete the work described on Exhibit C-1 (Tenant Upfit). The cost to complete the work in Exhibit C-1 (Tenant Upfit) shall be paid by Landlord and reimbursed by Tenant to Landlord over the Initial Term of the Lease in accordance with the conditions on Exhibit C-1. 5. Rent. Beginning on the Rent Commencement Date, Tenant shall pay to Landlord the base rent("Base Rent") and additional rent("Additional Rent") specified below(collectively"Rent"). (a) Base Rent. Tenant shall pay Base Rent in the amount specified in Section 1(g)above, which shall be$0.00 for the duration of the Initial Term and Renewal Option. (b) Additional Rent. (i) Operating Expenses. Tenant shall pay to Landlord on a monthly basis an amount equal to one-twelfth (1/12) of Tenant's Prorata Share of Landlord's good faith estimate of the operating and maintenance costs of the Premises, Building and Common Areas, as more fully described in Exhibit "D" attached hereto and made a part hereof ("Operating Expenses"), for each calendar year. Operating Expenses shall also include Real Estate Taxes (defined below) and Insurance Costs (defined below). Tenant's Prorata Share of Operating Expenses is estimated to be a total of $4.00 per rentable square foot of the Premises for the first calendar year of the Term. Landlord shall have the right, to be exercised no more than once per calendar year, to adjust in good faith Landlord's estimate of Operating Expenses for such calendar year. Landlord shall provide Tenant with written notice of such revised good faith estimate in reasonable detail (including a detailed line item breakdown for each anticipated Operating Expense to establish the basis for the estimated amounts) and thereupon, such revised estimate shall be retroactive to the first day of that calendar year. Within thirty(30) days after receipt of Landlord's revised good faith estimate, Tenant will remit an appropriate payment (or receive an appropriate credit) for the amount owed (or overpaid)for any prior months. Within one hundred twenty(120) days after the end of each calendar year, Landlord shall provide Tenant with a written statement, in reasonable detail, describing the actual Operating Expenses for the prior calendar year and Tenant's Prorata Share thereof ("Operating Expense Statement"). Each Operating Expense Statement shall be accompanied by reasonable supporting documentation. Any difference between Tenant's Prorata Share of the actual Operating Expenses for a calendar year and the monthly estimated payments made by Tenant for the same calendar year shall be adjusted between Landlord and Tenant by an appropriate payment or credit being made within sixty (60) days after the receipt of Landlord's Operating Expense Statement. The adjustment requirements of this Article shall survive the expiration or other termination of this Lease. Landlord shall maintain and make available to Tenant, for a period of one (1) year subsequent to the rendering of each annual Operating Expense Statement referred to above, records in reasonable detail evidencing or relating to the actual Operating Expenses incurred by Landlord for the calendar year covered by each such Operating Expense Statement. At Tenant's request, Landlord shall permit Tenant, or its representatives, to examine and audit such records during Landlord's regular business hours. Tenant shall keep all information gained from such audit confidential and shall use such information only in dealing directly with Landlord. Should Tenant have a good faith dispute as to the determination of actual Operating Expenses for any calendar year, and should such dispute not be resolved between Landlord and Tenant within sixty (60) days after Landlord's receipt of written notice thereof from Tenant, then either party may submit the dispute for arbitration to a reputable firm of independent certified public -2- accountants mutually selected by the parties. The decision of such firm shall be conclusive and binding on Landlord and Tenant. The cost of such arbitration shall be borne by the party against whom a decision is rendered, unless the arbitrator shall otherwise decide. (ii) Real Estate Taxes (PILOT Payments). Landlord shall timely pay all payments in lieu of taxes (PILOT Payments) due in conjunction with the IRB Bond Program the Building has been placed into, and/or assessments levied, assessed or imposed upon the Building, Common Areas and underlying real property which are due and payable during the Term of this Lease ("PILOT Payments"), including annual fees due on the IRB Bond. Tenant shall reimburse Landlord for Tenant's Prorata Share of PILOT Payments on a monthly basis as a part of Operating Expenses. Notwithstanding anything to the contrary contained herein, Tenant's reimbursement of PILOT Payments shall not include any penalties or interest imposed for late payment, nor shall it include any PILOT Payments which are due and payable prior to or after the Term hereof. If any PILOT Payments are payable in installments, Tenant's Prorata Share shall only include those installments that are due and payable during the Term of this Lease. PILOT Payments shall not include any inheritance, estate, succession, transfer, gift, franchise, corporation, income, or net profit tax that is or may be imposed on Landlord. (iii) Insurance Costs. Tenant shall reimburse Landlord on a monthly basis for Tenant's Prorata Share of the cost of the commercial general liability insurance and casualty insurance ("Insurance Costs") that Landlord is required to obtain and maintain pursuant to Section 10(c) below. (c) Tenant shall pay all Rent in advance to Landlord at the address specified in Section 26(g) (or such other address as Landlord shall designate in writing) on or before the first day of each calendar month. If the Term does not commence on the first day of a calendar month or expire or terminate on the last day of a calendar month, the Rent for such partial month shall be prorated accordingly. 6. Use. Tenant shall use the Premises for the operation of a Sheriffs sub-station and in compliance with all applicable federal, state and local laws, codes, rules and regulations ("Laws"). There shall be no detainment of prisoners, suspects, interrogation, or similar activities not consistent with the operation of a Class A office environment. Tenant shall be obligated to continuously operate in the Premises during normal business hours throughout the term if this Lease. There shall be no abandonment of the Premises by Tenant during the term of this Lease. If the Tenant abandons the Premises, or otherwise ceases to use the Premises for the operation of a Sheriff's sub-station during the term of this Lease, the Tenant shall, upon demand by the Landlord, pay to the Landlord the remaining amount owed to the Tenant Upfit expenses detailed on Exhibit C-1. Any sums remaining due to the Landlord shall accrue interest at the rate of ten percent(10%)per annum until paid in full. 7. Utilities and Services. (a) Landlord. Landlord shall furnish the following utilities and services to or for the benefit of the Premises: (i) Water and sewer service in the Common Area restrooms. (ii) Snow and ice removal from the parking areas, drives, sidewalks and other Common Areas. (iii) Garbage removal from the dumpster(s) serving the Building at least once per week. (iv) Window washing services for the exterior windows of the Building. (v) Heating, ventilation and air conditioning ("HVAC") service sufficient to maintain a temperature range at all times in the Premises between 70° F and 75° F. (vi) If the Premises are on the second floor of the Building or higher, Landlord shall furnish elevator service to such floor, in the elevator location most convenient to the Premises. The costs associated with the utilities and services listed above to be provided by Landlord are included as part of Operating Expenses to the extent permitted by Section 5 above. All bills for utilities and -3- services shall be paid by Landlord when due, and Tenant shall not be responsible for paying any late charge or interest due to late payment. (b) Tenant. Tenant, at its expense, shall be responsible for the following utilities and services to or for the benefit of the Premises: (i) Phone, internet, data service. (ii) Inside janitorial service. (c) Electricity to the Premises. In addition to Base Rent and Operating Expenses, Tenant shall reimburse Landlord monthly for its electrical usage in an amount equal to $2.00 per square foot per year($336.33). 8. Maintenance and Repair. (a) Landlord. Landlord shall maintain and promptly make all necessary repairs and replacements to the Building and Common Areas, including without limitation, the foundation, structure, exterior walls, exterior windows, exterior doors, roof, ceilings, gutters, downspouts, plumbing, electrical, HVAC (excluding any supplemental air conditioning units installed by Tenant) and other Building systems, parking areas, driveways, sidewalks and landscaping. Landlord's obligations shall extend to the Premises to the extent any of the foregoing items are located within or serve the Premises. The cost of all such maintenance, repair and/or replacement shall be included as part of Operating Expenses to the extent permitted by Section 5 above. (b) Tenant. Tenant, at its sole expense, shall maintain the interior of the Premises, excluding those items that are Landlord's responsibility pursuant to Section 8(a)above. (c) Compliance with Laws. Landlord represents and warrants to Tenant that as of the Commencement Date and throughout the Term of this Lease, the Premises, Building and Common Areas are and shall remain in compliance with all applicable Laws, including without limitation the Americans with Disabilities Act of 1990. Tenant shall use and maintain the Premises in compliance with all applicable Laws during the Term hereof, excluding those items that are the responsibility of Landlord hereunder. 9. Alterations. Tenant, at its sole expense, shall be entitled to install such equipment and trade fixtures in the Premises as it deems necessary or appropriate for the conduct of its business, so long as such installation in no way impairs the value of or causes damage to the Premises, Building or Common Areas. Such equipment and trade fixtures shall remain the personal property of Tenant and may be removed by Tenant on or before the expiration or termination of this Lease, provided that Tenant, at its sole expense, shall immediately repair any damage resulting from such removal. Tenant, upon prior notice to Landlord, shall be entitled to make such alterations and improvements to the Premises as Tenant deems necessary or advisable for its business so long as such alterations and improvements are nonstructural in nature, do not affect the Building systems, do not affect the exterior of the Building or any Common Areas, and are made in compliance with all applicable Laws. Landlord shall not charge any supervisory fees in connection with any such alterations and improvements by Tenant. Tenant shall not permit any mechanic's liens to be filed in connection with such work. Within thirty(30) days after Tenant receives written notice of the filing of any such mechanic's lien, Tenant shall cause such lien to be released or discharged. 10. Indemnification and Insurance. (a) Indemnification. Each party shall indemnify, defend and hold harmless the other party (its affiliates, officers, directors, employees and agents) from and against any and all claims, actions, losses, damages, liabilities and expenses, including reasonable attorney fees, in connection with loss of life, personal injury and/or damage to property arising from: (i) the negligent or intentional acts or omissions of the indemnifying party, or (ii) the failure of the indemnifying party to comply with or perform any of its obligations under this Lease in any material respect. -4- (b) Tenant's Insurance. Tenant is self-insured. (c) Landlord's Insurance. Throughout the Term, Landlord shall maintain commercial general liability insurance with coverage limits of at least $2,000,000.00 for liability resulting from injury and/or death, and at least $1,000,000.00 for liability resulting from damage to property, occurring in or about the Premises, Building and Common Areas. In addition, Landlord shall keep the Premises, Building and Common Areas insured against fire, windstorm, and other casualty, under an all risk policy of insurance, written in standard form, in the full replacement value thereof. (d) Waiver of Subrogation. Notwithstanding anything to the contrary herein, Landlord and Tenant hereby waive any claim, right, and/or cause of action that either may have or acquire against the other, its officers, directors, employees and agents, for damage or destruction of property, whether real, personal, or mixed, of any kind or nature, arising from fire or other casualty which is or should be covered under the insurance required under this Lease, and shall secure such waivers of subrogation or other endorsements as shall be necessary to ensure that any insurer of such property is bound by such waiver. 11. Assignment and Subletting. This Lease is assignable by Landlord to any subsequent owner of the Building and underlying real property. Tenant shall have 15 days processing time before recognizing any assignment of the Landlord's interest. Tenant shall have the right to assign this Lease or sublet any portion of the Premises to any entity that is a parent, subsidiary or affiliate of Tenant without obtaining Landlord's consent, provided that Tenant shall remain fully and primarily liable for all Lease obligations and the Use of the Premises does not change. Otherwise, Tenant shall not assign this Lease or sublet any portion of the Premises without first obtaining Landlord's prior written consent, which shall not be unreasonably withheld or delayed. 12. Access to Premises. (a) Landlord. Upon reasonable prior notice to Tenant, Landlord and its representatives shall have the right to enter the Premises at all reasonable times during regular business hours to inspect the same, to maintain and repair the Premises and the Building, to post such reasonable notices as Landlord may desire to protect its rights, and during the ninety(90)days immediately preceding the expiration of the Term (provided Tenant has not exercised any available renewal options), to exhibit the Premises to prospective tenants, and to place upon the doors or in the windows of the Premises ordinary"for rent" or "for lease" signs. Notwithstanding the foregoing, Landlord shall have the right to enter the Premises at any time in response to an emergency situation unless such entry will interfere with legitimate law enforcement investigations or hinder law enforcement duties. An emergency situation is a condition which threatens the Premises or Building with the probability of imminent substantial damage or destruction. (b) Tenant. Tenant shall have access to the Premises, with all utilities and services available to it, twenty four(24) hours per day, seven (7)days per week, fifty two(52)weeks per year. 13. Damage and Destruction. Within thirty (30) days after the partial or total destruction of the Premises, Landlord shall provide written notice to Tenant of Landlord's good faith estimate of the date by which the damage will be fully repaired. If the estimated repair time is greater than two hundred seventy (270) days following the date of damage, either party shall have the right to terminate this Lease by providing written notice thereof to the other party within ten (10) business days after Tenant's receipt of Landlord's initial notice. If this Lease is not terminated pursuant to this Section 13, Landlord shall proceed with reasonable diligence to repair the damage and restore the Premises to the condition that existed prior to the damage. During the period of repair, all terms and conditions of this Lease shall remain in full force and effect, except that Tenant's Rent shall be equitably abated in proportion to the portion of the Premises which is unfit or unavailable for Tenant's use and occupancy. If this Lease is not terminated pursuant to this Section 13 and Landlord thereafter fails to commence the repairs within forty-five (45) days after the date of damage, or fails to complete such repairs within thirty (30) days after the estimated completion date set forth in Landlord's notice, Tenant may terminate this Lease upon written notice to Landlord. 14. Eminent Domain. If any part of the Premises is taken by eminent domain, or voluntarily transferred in lieu of or in settlement of eminent domain proceedings, this Lease shall terminate as to the portion of the Premises taken or transferred, as of the date title vests in the transferee. If any portion of the Premises, Building or Common Areas is taken or transferred which adversely affects Tenant's ability -5- to conduct its business operations at the Premises, Tenant shall have the right to terminate this Lease, effective as of the date title vests in the transferee. In the event of any such taking or transfer, Tenant shall have no claim against Landlord, but this provision shall not preclude Tenant from recovering damages against the condemning authority or transferee to the extent permitted by applicable Laws. 15. Default. (a) Tenant's Default. The occurrence of any of the following shall constitute an event of default under this Lease: (i) Tenant fails to pay any monies due to Landlord within ten (10) days after receipt of written notice of nonpayment from Landlord. (ii) Tenant files or is subjected to a petition in bankruptcy, makes an assignment for the benefit of creditors, or has a receiver appointed over its property or business at the Premises. (iii) Tenant fails to perform any of its other obligations under this Lease and said failure shall continue for a period of twenty(20)days after receipt of written notice of default from Landlord (provided such default can be cured within twenty (20) days and if not, then within a reasonable time thereafter, provided Tenant commenced such cure within twenty (20) days and thereafter diligently pursues such cure to completion). (b) Landlord Remedies. In the event of a default by Tenant, Landlord shall have the following rights and remedies: (i) Landlord may terminate this Lease and upon an order from a court of competent jurisdiction, re-enter the Premises and remove Tenant, or other occupants claiming under Tenant, and their property. (ii) Landlord may bring suit for past due Rent and all other damages incurred by Landlord as a result of Tenant's default. (iii) Landlord may, upon the reletting of the Premises, collect from Tenant the difference, if any, between the Rent contractually due from Tenant under this Lease and the rent contractually due Landlord from any such new tenant. (iv) Landlord may, but shall not be obligated to, cure such default and collect from Tenant the reasonable costs incurred in doing so. (v) Landlord shall have any and all other rights and remedies available to it under this Lease, at law or in equity. (c) Landlord Default. If Landlord fails to perform any of its obligations under this Lease, and said failure shall continue for a period of twenty (20) days after receipt of written notice of default from Tenant (provided such default can be cured within twenty (20) days and if not, then within a reasonable time thereafter, provided Landlord commenced such cure within twenty(20) days and thereafter diligently pursues such cure to completion), Tenant shall have the right to take such remedial action or complete such maintenance or repairs as may be necessary to place the Premises in good, safe and sanitary condition. In that event, Landlord shall promptly reimburse the costs incurred by Tenant in curing such default upon receipt of an invoice from Tenant, which shall be accompanied by reasonable supporting documentation. If Landlord fails to reimburse Tenant within thirty (30) days after receipt of Tenant's invoice, Tenant, in addition to all other available rights and remedies, shall have the right to deduct such unpaid amount from the next installment(s)of Rent due to Landlord until reimbursed in full. (d) General. In all instances of default, the non-defaulting party shall use reasonable efforts to mitigate its damages. All rights and remedies of Landlord and Tenant enumerated herein shall be cumulative and shall not be construed to exclude any other rights or remedies available under this Lease, at law or in equity. No waiver of any right or remedy by a party on one occasion shall constitute a waiver of the same right or remedy on future occasions. In the event of an emergency, the cure periods set forth -6- in Sections 15(a)(iii) and 15(c) shall be shortened to a period of time reasonable under the circumstances. An emergency situation is a condition which threatens the Premises or Building with the probability of imminent substantial damage or destruction or which creates an imminent risk of personal injury. Notwithstanding anything contained herein to the contrary, if the Tenant defaults prior to the expiration of the initial term of this Lease, the Tenant shall, upon demand by the Landlord, pay to the Landlord the remaining amount owed to the Tenant Upfit expenses detailed on Exhibit C-1. Any sums remaining due to the Landlord shall accrue interest at the rate of ten percent(10%) per annum until paid in full. 16. Subordination and Nondisturbance. (a) Subordination and Nondisturbance. Landlord shall have the right to place upon the Building and underlying real property any mortgages which Landlord or its lender(s) deem advisable. Such mortgages shall have priority over this Lease and Tenant's rights hereunder. At Landlord's request, Tenant shall execute any and all instruments necessary to subordinate this Lease to any such mortgages, provided that each such mortgagee executes a non-disturbance agreement which provides that so long as Tenant is not in default of this Lease, Tenant's right to possession of the Premises and other rights under this Lease, including, without limitation, any options to renew, rights of first refusal, and right to terminate, shall not be affected or disturbed by the mortgagee in the exercise of any of its rights or remedies against Landlord, nor shall Tenant be named as a party defendant to any foreclosure of the lien or mortgage. Furthermore, Tenant shall, within thirty(30) days after receipt of a request therefor, execute and deliver to Landlord an estoppel certificate setting forth the name of Tenant, the date of this Lease, a description of the Premises and the Rent payable therefor, certifying that this Lease is in full force and effect, and certifying that Landlord is not in default of this Lease or specifically enumerating any outstanding events of default by Landlord. (b) Attornment. In the event that Landlord's mortgagee or any other person acquires title to the Premises pursuant to the exercise of any remedy provided for in its mortgage, Tenant agrees to attorn to such transferee as its new landlord, and this Lease shall continue in full force and effect as a direct lease between Tenant and such transferee, upon all of the terms and conditions contained herein. 17. Environmental. (a) Landlord. To the best knowledge of the Landlord, there are no hazardous or unsafe substances (including asbestos) in, on or under the Premises, Building or Common Areas or the underlying real property, and agrees to indemnify, defend and hold harmless Tenant, its affiliates, and their respective officers, agents and employees, against any and all claims, damages, costs, liabilities and/or expenses, including attorneys' fees, resulting from a breach of Landlord's representations and warranties or from the presence of any hazardous or unsafe substances in, on or under the Premises, Building, Common Areas or the underlying real property, as of the Commencement Date. (b) Tenant. Tenant agrees that no hazardous or unsafe substance will be discharged or released by Tenant or its employees or agents in, on or under the Premises, Building, Common Areas or the underlying real property in violation of any applicable Laws. Tenant shall indemnify, defend and hold harmless Landlord, its affiliates, and their respective officers, agents and employees, against any and all claims, damages, costs, liabilities and/or expenses, including attorneys' fees and remediation costs, resulting from a breach by Tenant of any of its obligations contained herein. 18. Signage. Tenant, at its sole cost, shall be entitled to install the following signage: (a) suite entry signage; (b) a sign on the Building directory; and (c) a sign on the exterior monument sign serving the Building. All signage shall be in compliance with all applicable Laws and Landlord shall approve all signage prior to fabrication and installation. 19. Parking. At no additional cost, Tenant shall be entitled to the nonexclusive use of the following parking spaces: (a) six (6) parking spaces within the parking deck underneath the building the Building; and (b)six(6) parking spaces on the 6 acre parking lot east of the building (Depot Property). - 7- 20. Rooftop Access. Throughout the Term of this Lease, Tenant shall not make any penetrations into the roof, or installations of equipment on the roof of any kind without Landlord's written consent. 21. Intentionally Deleted. 22. Intentionally Deleted 23. Option to Renew. Landlord hereby grants to Tenant the right and option to extend the Term of this Lease for one (1) additional period of five (5) years ("Renewal Term"). In the event Tenant desires to exercise this option to renew, it shall so notify Landlord no later than five (5) calendar months prior to the beginning of the Renewal Term, and upon the giving of such notice, this Lease shall automatically be extended for that Renewal Term. The terms and conditions of this Lease as are then in effect shall govern during each Renewal Term, except for Base Rent which shall be as follows: Renewal Term: Years Annual Rent Monthly Rent 1-5 $0.00 $0.00 24. Intentionally Deleted. 25. Relocation. At any time after the Lease Date and continuing throughout the Lease Term, Landlord shall be entitled, upon not less than sixty (60) days written notice to Tenant, to cause Tenant to relocate from the Premises to another space similar in size (a "Relocation Space") within the Building. Landlord shall (i) pay all out-of-pocket expenses reasonably incurred by Tenant and paid to professional movers in physically packing and moving Tenant's personal property and equipment to the Relocation Space, (ii) furnish the Relocation Space with improvements comparable (or at Landlord's option, better) in quality than those in the Premises, and (iii) pay all reasonable expenses for Tenant's new stationery and business cards. Such a relocation shall not terminate or otherwise affect or modify this Lease, except that (a) from and after the date of such relocation, "Premises" shall refer to the Relocation Space into which Tenant has been moved, rather than the original Premises as herein defined 26. Miscellaneous. (a) Late Charge. All Rent not paid within five (5) days after receipt of written notice of nonpayment from Landlord shall bear interest from the due date at the "prime rate" of interest as published in the Money Rates section of the Wall Street Journal, changing automatically and simultaneously with each change in the prime rate. (b) Holding Over. If Tenant shall continue in possession of the Premises beyond the natural expiration date of the Lease (as extended), such continued possession shall be considered an extension of this Lease from month to month until terminated by either party as of the end of any calendar month on not less than thirty (30) days prior written notice, and during such month to month tenancy, all terms and conditions of this Lease shall remain in full force and effect. (c) Quiet Enjoyment. So long as Tenant is not in default of this Lease, Tenant shall at all times during the Term have the peaceable and quiet enjoyment and possession of the Premises without any interference or hindrance from Landlord or any person(s)claiming by or through Landlord. (d) Rules and Regulations. Landlord shall have the right from time to time to prescribe reasonable nondiscriminatory rules and regulations pertaining to the use, entry, operation, and management of the Premises, Building and Common Areas. Tenant agrees to comply with such rules and regulations, provided, however, that such rules and regulations shall not contradict or abrogate any right or privilege herein granted to Tenant. (e) Force Majeure. If either party shall be delayed in the performance of any act required hereunder by reason of strikes, lockouts, inability to procure labor or materials or governmental approvals, riots, insurrections, wars, catastrophic events or other reasons beyond the reasonable control of such -8- party, then performance of such act shall be extended for a period equivalent to the period of such delay. Delays due to lack of funds shall not be deemed delays beyond the reasonable control of such party. (f) Authority. Landlord hereby represents and warrants that it owns the Building and underlying real property in fee simple. Each party represents and warrants that it is fully authorized to execute this Lease without obtaining the consent of any third party. (g) Notices. Any notice or consent required or permitted hereunder shall be in writing and shall be personally delivered or sent by United States certified mail, return receipt requested, or by a reputable overnight courier service which provides proof of delivery, addressed to the parties as set forth below or at such other address as may be specified from time to time in writing given to the other party. Notices shall be effective when received, refused or returned unclaimed. Tenant: Richmond County Sheriffs Office 400 Walton Way Augusta, GA 30901 Landlord: Discovery Plaza, LLC 101 Hodencamp Rd, Suite 200 Thousand Oaks, CA 91360 (h) Commission. Landlord and Tenant each represent and warrant that there were no real estate brokers or agents involved in this transaction, other than JordanTrotter Commercial Real Estate, LLC ("Broker"), who is representing the Landlord, but not receiving any commission or fees on the Lease. (i) Binding Effect. All the terms and conditions of this Lease shall be binding upon and inure to the benefit of legal representatives, successors, and assigns of the parties. (j) Modification. This Lease shall not be amended or modified in any respect except by a writing which is duly executed by all parties. (k) Construction. The language used in this Lease was mutually negotiated by the parties and shall not be construed for against either party. The headings in this Lease are for convenience only and are not to be construed as a part of this Lease or in any way defining, limiting, modifying or amplifying the provisions hereof. Time is of the essence of this Lease and of every term, covenant, and condition hereof. (I) Surrender. Upon the expiration or termination of this Lease, Tenant shall surrender the Premises in substantially the same condition as existed at the Rent Commencement Date, ordinary wear and tear and damage by casualty excepted. Tenant shall not be required to remove any alterations or improvements installed by or for Tenant in compliance with the terms of this Lease. (m) Severability. If any provision of this Lease is rendered void or invalid by the decision of any court or by the enactment of any Law, such provision will be deemed to have never been included herein and the balance of the Lease shall continue in full force and effect. (n) Entire Agreement. This Lease constitutes the entire understanding between the parties. Any representation, obligation, term or condition not contained herein is not binding on the parties. -9- TENANT: Richmond County Sheriff's Office By, i ®� A ? Name: Its: V'°7i<z Date: Witness for Tenant: LANDLORD: Discovery Plaza, I/ By: Mr. Moshe Silagi Its: General a. iana r Date: Witness for Landlord: - 10 - EXHIBIT"A" PREMISES Mum GHIA Pr, I i I Mb. fi • il 1• M E-.= ----- inumun _ r -------___ OD . a,v-§ r._______,. __ 7 1- Zt4 I. - ®I Z a I IU o LLJIle I— LL l.. 1 1 Z 's /-.711 1® w Premises I 1 I— �- __- ',/ y — II llp11WiW - I /A/ j 11 --_ii PIM 1---- - — — III 1 III'ihIIII ?-=14!) I I I --I I --k-, t': k,.. I -)1,, 6/ , .I / `® I Y 1 ow i 0 1 CP.s I e zF CA C 'b ' < .0111 1113.41[1113.41[ wn �lli1I3 w m p L. Z J 0 7 ■nuym gr::::i r ■IIIIIIIIIII III!,jIIII • - 11 - . __ I. I , RI- , _ , , -1 ,.. 1 I I ,, , , i I I � I I 1 ay • 1:17 g e+-oPremises An , 3 M 1,10 VF 361V na 31' '..'• I. i 3 N I A it e ..zve- 3r I a MAO Ur 1Y z+RIIII .z 31Ei t N M {4q R i ii e ii ,, _.""t ri_ _ ! „.,... • 1a T ii gg' 5 1,:M111:3 t RD RD 1 R, .1 i 'r _1 70 0 0 it H 3 � �, kI - 12 - EXHIBIT"B" COMMENCEMENT DATE AGREEMENT Pursuant to Section 3 of the Lease, Landlord and Tenant hereby agree and confirm the following dates and information as follows: 1. The Premises have been accepted by Tenant as being substantially complete in accordance with the Lease. 2. The Commencement Date is 3. The Rent Commencement Date is 4. The Initial Term of the Lease shall expire on 5. Tenant's first renewal option, if any, must be exercised by • Tenant's second renewal option, if any, must be exercised by The provisions of this Exhibit "B" are not intended to void or modify any provision(s) of the Lease other than those specifically addressed and agreed to herein, and any construction to the contrary is expressly denied and negated. Tenant: By: Its: Date: Landlord: By: Its: Date: - 14- EXHIBIT"C" 1. LANDLORD'S WORK Landlord shall provide, at no cost to Tenant and with no reimbursement from Tenant, the following (collectively "Landlord's Work") to the Premises (installed per all applicable code requirements). Landlord shall be responsible for all plans, drawings, inspections, and permits needed to accomplish Landlord's Work. All Landlord's Work shall be complete prior to Premises being turned over to Tenant. HVAC: Landlord to furnish 7.5 tons of HVAC to the Premises in a main trunk line. All distribution duct lines, registers, grills, etc shall be the responsibility of the Tenant during Tenant's Upfit. ELECTRICAL: Landlord will provide electrical service system to the Premises. Service to be 200 amp, 120/208 V, three phase. The wiring of interior offices for power receptacles, phone, and data connections shall be the responsibility of the Tenant as part of Tenant's Upfit. Tenant will provide all interior light fixtures as part of Tenant's Upfit. PLUMBING: Landlord has constructed common area restrooms adjacent to the Premises and no plumbing will be brought into the Premises. FIRE PROTECTION: Landlord will provide a fire sprinkler system for the Premises (if required by code for tenant's use) including the following: (1) Distribution piping brought to the Premises with all off-site alarms and alarm monitoring in place (interior sprinker lines, piping, and heads are part of Tenant's Upfit described on Exhibit C1). WALLS: Landlord to construct the perimeter walls of the Premises, completed with sheetrock, sanded/mudded, and ready for paint, including entry doors from the common areas. The construction of interior partition walls and all finish work on such walls shall be the responsibility of the Tenant as part of Tenant's Upfit. CEILING: All interior ceilings will be provided by Tenant as part of Tenant's Upfit. FLOORS: Landlord will provide clean and level subfloor with slab. Floor coverings over the slab shall be the responsibility of the Tenant as part of Tenant's Upfit. HANDICAPPED ACCESSIBILITY: All means of ingress and egress as well as all site improvements and Landlord's Work shall meet local and national handicapped codes including all ADA requirements at the Landlord's expense. - 15- EXHIBIT"C-1" Tenant Upfit Tenant shall be responsible for all interior upfit to the Premises not specifically included in the Landlord's Work on Exhibit C. This upfit work shall include(but not limited to)construction of interior walls, wall coverings, floor coverings, ceilings, interior lighting, fire sprinkler lines and heads, interior HVAC ductwork and distribution, furniture, wiring of electrical, phone, and data ports. As a courtesy to Tenant, Landlord will perform, using Landlord's general contractor(RW Allen or other GC selected by Landlord), and pay all expenses for the aforementioned Tenant's Upfit for Tenant. The cost of Tenant's Upfit is $110,721, based on the floor plan on Exhibit A and on the attached specifications. The cost of the Tenant's Upfit shall be reimbursed by Tenant to Landlord in full over the Lease Term. Commencing on the Delivery Date, the Tenant shall make equal monthly installment payments to the Landlord in the amount of$2,231.55/month as reimbursement for Landlord's cost to complete the Tenant's Upfit. Should the cost of the Tenant's Upfit change during construction due to changes requested by Tenant, the monthly reimbursement amount shall be adjusted as well to reflect the change. The formula for calculating the monthly reimbursement payment shall be established as follows: $110,721 RW Allen Tenant Upfit cost $11,000 Architectural Design Fees +$12,172 Project Management Fee to Landlord (10%) =$133,893 Total Cost of Tenant Upfit +60 months of Lease Term =$2,231.55 monthly reimbursement payment This monthly reimbursement payment is in addition to the other charges itemized in in this Lease.All other costs not specifically addressed as part of the Landlord's Work or included in Tenant's Upfit shall be the sole responsibility of the Tenant. Should Tenant adjust the floorplan, specifications of the finishes, or other scope items during construction not included in the RW Allen cost estimate that cause the cost of the Tenant Upfit to increase or decrease, the monthly reimbursement calculation shall be adjusted as well using the same formula above prior to the Commencement Date. - 16- OW CMOP Landlord - Cl - C2 Riverwalk Augusta Rm./Allen August 25,2016 FLOOR AREA(SF): 2,500 TOTAL COST: 5206,550.00 COST/SF: 5102.34 WORK DIVISION Landlord Cl C2 TOTAL $!SF °/O 1 GENERAL CONDITIONS $667.00 $1.127.00 $1,794.00 $0.64 0.63% 2 SITE WORK 3 CONCRETE $1,164.00 $1,164.00 $0.42 0.41% 4 MASONRY 5 METALS $1,164.00 $1,164.00 $0.42 0.41% 6 WOOD&PLASTICS $527.00 $790.00 $1,317.00 $0.47 0.46% 7 THERMAL&MOISTURE $2.503.00 $116.00 $175.00 $2,794.00 $1.00 0.98% 8 DOORS&WINDOWS $1,397.00 $5,588.00 $9,778.00 $16,763.00 $5,99 5.85% 9 FINISHES $21,430.00 $25,986.00 $38,391.00 $85,807.00 $30.65 29.94% 10 SPECIALTIES $303.00 $303.00 $606.00 $0.22 0.21% 11 EQUIPMENT 12 FURNISHINGS 13 SPECIAL CONSTRUCTION 14 CONVEYING SYSTEMS 15 MECHANICAL SYSTEMS $61,401.00 $10,212.00 $14,408.00 $86,021.00 $30.72 30.02% 16 ELECTRICAL $23,290.00 $20,081.00 $45,749.00 $89,120.00 $31.83 31.10% 17 MISC.I OTHER I TOTALS: $112,349.00 $63,480.00 $110,721.00 $286,550.00 $102.34 100.00%1 Landlord Cl C2 -.111 GRAND TOT L r 286,550.00 $102.34 I SF LANDLORD ABSORBS THIS COST BUILD OUT COST FOR DDA BUILDOUT COST FOR SHERRIFF - 17- Scope of Work 1 Clarifications V Upfits for Downtown Development Authority (C1) and Police SubStation (C2) August 12, 2016 Our Budget Estimate includes the following: 1) The only general conditions costs included are for final cleaning. No overhead costs are included as long as the project takes place while we are on site. 2) Builders Risk insurance. 3) Building permit and plan review fees. 4) Hollow metal door frame, wood doors, and hardware at an allowance amount of $1,200 per opening. 5) Metal stud and drywall partitions. Perimeter walls and walls between Cl and C2 will extend to the deck above. 6) 2x2 Armstrong Dune#1774 ceiling tile and 15/16"grid. 7) Carpet and rubber base in all spaces at an allowance amount of$40/SY installed. VCT in electrical and storage rooms. 8) Painting of all wall surfaces. 9) New finishes in affected corridor between C2 and restrooms. 10) One fire extinguisher per space. 11) Fire protection. 12) Packaged roof top units with 4 tons for Cl and 7.5 tons for C2. Units located on second floor roof. If both projects take place we can offer a deduct of$7,500 for the shared cost of crane and boom trucks to set the RTU's. 13) Basic electrical lighting and power. Includes new bucket,transformer,and panels to provide power from basement to each space so that they can be metered separately. 14) Fire alarm. 15) Project contingency of 5%. Our Budget Estimate DOES NOT include the following: 16) Design or engineering fees 17) Owners Protective Insurance 18) Demolition 19) Cabinets 20) Signs, door signs 21) Appliances 22) Plumbing 23) Low voltage cabling or systems(phone, data, security,AV) 24) Work outside of the tenant spaces other than noted above. - 18- EXHIBIT"D" OPERATING EXPENSES Operating Expenses shall be those expenses incurred during the year in connection with the operation, cleaning, maintenance and repair of the Premises (where applicable), Building and Common Areas, based on sound property management principles and consistent with the standards of a first class office building. The Operating Expenses shall include, but not be limited to, the costs of cleaning, lighting, repairing, maintaining, operating and managing all common area improvements, lobbies, and parking facilities; snow removal, landscaping, security; total compensation and benefits for any building managers; supplies, fire protection, utility charges, licenses and permit fees. Notwithstanding anything contained herein to the contrary, the following costs shall be excluded from Tenant's Prorata Share of Operating Expenses: 1. principal, interest, points, premiums, fees or other debt costs or expenses associated with any secured or unsecured loans of Landlord; 2. rent or other payments under any ground lease or leases; 3. costs for the investigation, handling, removal, other remediation or monitoring of any hazardous or toxic waste, substances or materials; 4. costs associated with the original construction of the Building or Common Areas or any new construction, expansions, demolition, renovation or reconstruction of the Building or Common Areas; 5. costs incurred in developing and leasing the Building, including, without limitation, architectural fees, engineering fees, space planning fees, broker commissions, advertising, promotional or marketing costs and attorney and other professional fees; 6. costs associated with designing, permitting, building out, renovating or redecorating any other tenant space or rentable space in the Building; 7. costs resulting from the noncompliance of the Premises, Building or Common Areas, with any applicable Laws (excluding noncompliance directly caused by Tenant's activities within the Premises); 8. costs resulting from Landlord's violation of any lease at the Building or arising from claims, disputes or defaults with or by any other tenant or person; 9. penalties, interest or other fees or charges relating to any late or delinquent payments by Landlord; 10. bad debt write-offs or reserves of any kind; 11. costs for any goods or services provided by Landlord or any relative or affiliate of Landlord, to the extent such costs exceed the fair market cost of such goods or services if rendered by qualified, unaffiliated third parties in arms length transactions; 12. any capital expenditures, and any charge for depreciation or amortization in connection therewith; 13. salaries for any employee of Landlord at or above the grade of building manager or similar position; 14. any of Landlord's general overhead and administrative costs, including, without limitation, legal and accounting fees, wages and fringe benefits, and the costs of any supplies or services, which are not directly related to the operation of the Building; 15. costs resulting from any negligence or willful misconduct of Landlord or its employees, agents or contractors; 16. costs for which Landlord is reimbursed by any tenant or third party, or by insurance carried by Landlord, tenant or any third party, or by self-insurance; and 17. management and/or administrative fees to the extent that, in the aggregate, they exceed ten percent (10%) of the total amount of Operating Expenses (excluding any such management and/or administrative fees). - 19-