Washington-Seattle-Quadrant Lake Union Center Lease - The Quadrant Corp. and Getty Images inc.
LEASE
THE QUADRANT CORPORATION, LANDLORD
GETTY IMAGES, INC., TENANT
DATED NOVEMBER 30, 1999
<PAGE> 2
LEASE
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
1. BASIC LEASE TERMS .............................................................................................
2. PREMISES ......................................................................................................
3. TERM ..........................................................................................................
3.1 Commence ................................................................................................
3.2 Expire ..................................................................................................
4. TENANT IMPROVEMENTS; EARLY POSSESSION; DELAYED DELIVERY OF POSSESSION ........................................
4.1 Tenant Improvements .....................................................................................
4.2 Early Occupancy .........................................................................................
4.3 Landlord Delay ..........................................................................................
4.4 Tenant Delay ............................................................................................
5. RENT ..........................................................................................................
5.1 Rent ....................................................................................................
5.2 Manner of Payment .......................................................................................
5.3 Rent Commencement .......................................................................................
6. PREPAID RENT AND SECURITY DEPOSIT .............................................................................
6.1 Deposit .................................................................................................
6.2 Use of Deposit to Cure ..................................................................................
6.3 Return of Security Deposit ..............................................................................
6.4 Treatment as Security Deposit ...........................................................................
6.5 Landlord's Obligation Regarding Deposit .................................................................
7. USE OF PREMISES ...............................................................................................
7.1 Use .....................................................................................................
7.2 Prohibited Uses .........................................................................................
7.3 No Nuisance .............................................................................................
7.4 Telecommunications Providers ............................................................................
8. ADDITIONAL RENT FOR OPERATING EXPENSES ........................................................................
8.1 Tenant Payment ..........................................................................................
8.2 Tenant's Share ..........................................................................................
8.3 Definitions .............................................................................................
8.4 Determination of Operating Expenses .....................................................................
8.5 Reconciliation ..........................................................................................
8.6 Upon Lease Termination ..................................................................................
8.7 Landlord Rights .........................................................................................
9. MAINTENANCE AND REPAIR RESPONSIBILITY .........................................................................
9.1 Maintenance Obligations .................................................................................
9.2 No Obligation For Alteration ............................................................................
9.3 Tenant Waiver ...........................................................................................
10. COMMON AREAS ..................................................................................................
10.1 Use of Common Areas .....................................................................................
10.2 Definition of Common Areas ..............................................................................
11. UTILITIES AND SERVICES ........................................................................................
11.1 Furnishing of Utilities and Services ....................................................................
11.2 Additional Services .....................................................................................
11.3 After Hours .............................................................................................
11.4 Separate Meters .........................................................................................
11.5 Failure .................................................................................................
12. LIMITS ON LANDLORD'S LIABILITY ................................................................................
12.1 Circumstances Beyond Control ............................................................................
</TABLE>
i
<PAGE> 3
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
12.2 Unreasonable Period of Failure ...........................................................................
12.3 Tenant Caused ............................................................................................
12.4 No Abatement of Rent .....................................................................................
12.5 No Interference ..........................................................................................
13. ALTERATIONS AND ADDITIONS BY TENANT; LIENS AND INSOLVENCY ......................................................
13.1 Alterations and Additions by Tenant ......................................................................
13.2 Liens and Insolvency .....................................................................................
14. INSURANCE; INDEMNITY ...........................................................................................
14.1 Tenant Waiver ............................................................................................
14.2 Indemnity ................................................................................................
14.3 Landlord's Responsibility ................................................................................
14.4 Tenant's Insurance .......................................................................................
14.5 Policies .................................................................................................
14.6 Landlord's Insurance .....................................................................................
14.7 Proceeds .................................................................................................
14.8 Waiver of Subrogation ....................................................................................
14.9 Notification of Accidents ................................................................................
15. DESTRUCTION ....................................................................................................
15.1 Election to Restore ......................................................................................
15.2 Rent Abatement ...........................................................................................
15.3 Repairs to Tenant Installations ..........................................................................
15.4 No Compensation ..........................................................................................
16. CONDEMNATION ...................................................................................................
16.1 Termination of Lease .....................................................................................
16.2 Election of Termination ..................................................................................
16.3 Reduction of Rent ........................................................................................
16.4 Award ....................................................................................................
16.5 Landlord Authority .......................................................................................
17. ASSIGNMENT AND SUBLETTING ......................................................................................
17.1 Landlord Consent Required ................................................................................
17.2 Deemed Assignment ........................................................................................
17.3 Recapture ................................................................................................
17.4 Additional Requirements ..................................................................................
17.5 Assignment with Bankruptcy ...............................................................................
17.6 Sale .....................................................................................................
17.7 Binding ..................................................................................................
18. DEFAULT ........................................................................................................
18.1 Definition of Default ....................................................................................
18.2 Tenant Notification ......................................................................................
18.3 Landlord Default .........................................................................................
18.4 Rental Concession ........................................................................................
19. REMEDIES IN DEFAULT ............................................................................................
19.1 Landlord Remedies ........................................................................................
19.2 Tenant Payment of Costs ..................................................................................
19.3 Termination ..............................................................................................
19.4 No Termination ...........................................................................................
19.5 Landlord Election to Make Tenant Advances ................................................................
20. ACCESS .........................................................................................................
21. SURRENDER OF PREMISES; HOLD-OVER TENANCY .......................................................................
21.1 Surrender of Premises ....................................................................................
21.2 Hold-Over Tenancy ........................................................................................
22. COMPLIANCE WITH LAW ............................................................................................
23. RULES AND REGULATIONS ..........................................................................................
24. PARKING ........................................................................................................
25. ESTOPPEL CERTIFICATES ..........................................................................................
26. SUBORDINATION ..................................................................................................
</TABLE>
ii
<PAGE> 4
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
27. REMOVAL OF PROPERTY ..........................................................................................
28. PERSONAL PROPERTY TAXES ......................................................................................
29. NOTICES ......................................................................................................
30. CONDITION OF PREMISES ........................................................................................
31. HAZARDOUS SUBSTANCES .........................................................................................
31.1 Tenant Obligations .....................................................................................
31.2 Tenant Indemnity .......................................................................................
31.3 Landlord Inspection ....................................................................................
31.4 Survival ...............................................................................................
32. SIGNS ........................................................................................................
33. GENERAL PROVISIONS ...........................................................................................
33.1 Attorneys' Fees ........................................................................................
33.2 Governing Law; Venue ...................................................................................
33.3 Cumulative Remedies ....................................................................................
33.4 Exhibits; Addenda ......................................................................................
33.5 Interpretation .........................................................................................
33.6 Joint Obligation .......................................................................................
33.7 Keys ...................................................................................................
33.8 Late Charges; Interest .................................................................................
33.9 Light, Air, and View ...................................................................................
33.10 Measurements ...........................................................................................
33.11 Name ...................................................................................................
33.12 Prior Agreements; Amendments ...........................................................................
33.13 Recordation ............................................................................................
33.14 Liability ..............................................................................................
33.15 Severability ...........................................................................................
33.16 Time ...................................................................................................
33.17 Waiver .................................................................................................
33.18 No Waste ...............................................................................................
33.19 Force Majeure ..........................................................................................
33.20 Quiet Enjoyment ........................................................................................
34. AUTHORITY OF PARTIES .........................................................................................
35. FINANCIAL STATEMENTS .........................................................................................
36. COMMISSIONS ..................................................................................................
</TABLE>
EXHIBITS TO THIS LEASE:
<TABLE>
<S> <C>
Exhibit A-1 Premises
Exhibit A-2 Legal Description of Property
Exhibit A-3 Legal Description of Business Park
Exhibit B-1 Work Letter for Waterside Building
Exhibit B-2 Work Letter for Park View Building
Exhibit C Exclusivity Agreement
Exhibit D Operating Cost Exclusions
Exhibit E Allocation of Non-Metered Operating Expenses Between Office and Retail Spaces for Park View Building
Exhibit F Form of Non-Disturbance and Attornment Agreement for Waterside and Park View Buildings
Exhibit F-2 Form of Non-Disturbance and Attornment Agreement for Plaza Building
Exhibit G Janitorial Schedule
Exhibit H 24 Hour/7 Day Areas
Exhibit I Form of Memorandum of Lease
Exhibit J List of Environmental Reports
</TABLE>
iii
<PAGE> 5
LEASE
LEASE, dated November 30, 1999, is made by and between THE QUADRANT
CORPORATION, a Washington corporation ("Landlord"), and GETTY IMAGES, INC., a
Delaware corporation ("Tenant").
1. Basic Lease Terms. This section sets forth certain basic terms of this
Lease for reference purposes. This Section is to be read in conjunction with
the other provisions of this Lease; provided, however, to the extent of any
inconsistency between this Section and the other provisions of this Lease, this
Section shall control.
<TABLE>
<S> <C> <C> <C>
LEASED PREMISES TERM
(See Section 2) (See Section 3)
Business Park Quadrant Lake Union Target Commencement Date September 1, 2001
Center Rent Commencement Date 45 Days after the
Commencement Date
Building Names Park View Building and (See Section 5.3)
Waterside Building Target Expiration Date August 31, 2013
Length of Term 144 Months
Addresses determined Not yet issued; to be Renewal Options Two 5-Year Extensions
(See Section 1A.3)
Rentable Sq. Ft. 116,440 RSF
(See Section 1A.4) (Park View Building)
62,332 RSF
(Waterside Building)
RENT; PREPAID RENT;
SECURITY DEPOSIT
(See Sections 1A.4, 5 and 6) PERMITTED USE (See Section 7)
Base Monthly Rent (Park View Building) General Office Use, Production Shipping,
Mos. 1-48: $230,454/Mo. NNN 24-Hour Per Day/7-Day Per Week Call and
($23.75/RSF/Year NNN) Support Center, Photography Studio, Storage
Mos. 49-96: $258,594/Mo. NNN and other similar types of uses reasonably
($26.65/RSF/Year NNN) related to Tenant's current day-to-day business
Mos. 97-144: $290,130/Mo. NNN operations as of the date of this Lease.
($29.90/RSF/Year NNN)
OPERATING EXPENSES (Section 8)
Base Monthly Rent (Waterside Building) Tenant's Share 100% of Waterside Building
Mos. 1-48: $125,963/Mo. NNN 100% of Office Space in
($24.25/RSF/Year NNN) Park View Building
Mos. 49-96: $141,026/Mo. NNN
($27.15/RSF/Year NNN) Additional Rent $65,498
Mos. 97-144: $157,908/Mo. NNN (Park View Building)
($30.40/RSF/Year NNN) $35,062
(Waterside Building)
Prepaid Rent -- none (Based on estimate of
$6.75/RSF/Year for 2001)
Security Deposit see Sections 6 and 1A.19
PARKING (See Sections 1A.10 and 24)
267 Stalls (Park V)
</TABLE>