Office Building Lease (2005)Full Document 

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                              OFFICE BUILDING LEASE
                                       FOR

                                   SYTEL, INC.

                              WESTMORELAND BUILDING
                                    Suite 400
                            Bethesda, Maryland 20817

                        CHARLES E. SMITH MANAGEMENT, INC.
                               2345 Crystal Drive
                                  Crystal City
                            Arlington, Virginia 22202

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                                TABLE OF CONTENTS

                         SPECIFIC AND GENERAL PROVISIONS

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<S>   <C>                                                                      <C>
 1.   SPECIFIC PROVISIONS ..................................................     1

 2.   RENT .................................................................     4
       2.1 Base Annual Rent ................................................     4
       2.2 Additional Rent .................................................     4
             (a) Real Estate Taxes .........................................     4
             (b) Operating Expenses ........................................     4
             (c) CPI .......................................................     4
             (d) Changes in Landlord's Fiscal Year .........................     4
       2.3   Additional Rent Estimates and Adjustments .....................     4
       2.4   Rent Adjustment Limit .........................................     5
       2.5   Survival of Rent Obligations ..................................     5
       2.6   Pro Rata Share ................................................     5
       2.7   Prorated Rent .................................................     5
       2.8   Applications of Rent ..........................................     5
       2.9   Late Payment Fee ..............................................     5
      2.10   Other Tenant Costs and Expenses ...............................     5

 3.   CONSTRUCTION OF PREMISES AND OCCUPANCY ...............................     6
       3.1   Tenant Plans, Construction and Rent Liability .................     6
       3.2   Possession ....................................................     6
       3.3   Occupancy Permits .............................................     6

 4.   SUBLETTING AND ASSIGNMENT ............................................     6
       4.1   Consent .......................................................     6
       4.2   Recapture of Premises .........................................     6
       4.3   Excess Rent ...................................................     7
       4.4   Tenant Liability ..............................................     7

 5.   SERVICES AND UTILITIES ...............................................     7
       5.1   Building Standard Services and Utilities ......................     7
       5.2   Overtime Services .............................................     7
       5.3   Excessive Electrical Usage ....................................     7
       5.4   Excessive Heat Generation .....................................     7
       5.5   Security ......................................................     8

 6.   USE AND UPKEEP OF PREMISES ...........................................     8
       6.1   Use ...........................................................     8
       6.2   Illegal and Prohibited Uses ...................................     8
       6.3   Insurance Rating ..............................................     8
       6.4   Alterations ...................................................     8
       6.5   Maintenance By Landlord .......................................     9
       6.6   Signs & Advertising ...........................................     9
       6.7   Excessive Floor Load ..........................................     9
       6.8   Moving & Deliveries ...........................................     9
       6.9   Rules and Regulations .........................................     9
      6.10   Tenant Maintenance & Conditions of Premises Upon Surrender ....    10
      6.11   Tenant Equipment ..............................................    10
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<S>   <C>                                                                      <C>
7.    ACCESS ...............................................................    10
       7.1   Landlord's Access .............................................    10
       7.2   Restricted Access .............................................    10

8.    LIABILITY ............................................................    10
       8.1   Personal Property .............................................    10
       8.2   Criminal Acts of Third Parties ................................    10
       8.3   Public Liability ..............................................    10
       8.4   Tenant Insurance ..............................................    10

9.    DAMAGE ...............................................................    11
       9.1   Damages Caused by Tenant ......................................    11
       9.2   Fire or Casualty Damage .......................................    11
       9.3   Untenantability ...............................................    11

10.   CONDEMNATION .........................................................    11
      10.1   Landlord Rights to Award ......................................    11
      10.2   Tenant Right to File Claim ....................................    12

11.   BANKRUPTCY ...........................................................    12
      11.1   Events of Bankruptcy ..........................................    12
      11.2   Landlord's Remedies ...........................................    12

12.   DEFAULTS & REMEDIES ..................................................    13
      12.1   Default .......................................................    13
      12.2   Remedies ......................................................    13
      12.3   Landlord's Right to Relet .....................................    13
      12.4   Recovery of Damages ...........................................    13
      12.5   Waiver ........................................................    13
      12.6   Anticipatory Repudiation ......................................    14
      12.7   Tenant Abandonment of Premises ................................    14

13.   SUBORDINATION ........................................................    14
      13.1    Subordination ................................................    14
      13.2    Estoppel Certificate .........................................    14
      13.3    Attornment ...................................................    15
      13.4    Mortgagee Rights .............................................    15

14.   TENANT HOLDOVER ......................................................    15
      14.1    With Landlord Consent ........................................    15
      14.2    Without Landlord Consent .....................................    15

15.   SECURITY DEPOSIT .....................................................    16

16.   QUIET ENJOYMENT ......................................................    16

17.   SUCCESSORS ...........................................................    16
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<S>   <C>                                                                      <C>
18.   WAIVER OF JURY TRIAL .................................................    16

19.   REASONABLENESS OF LANDLORD AND TENANT ................................    16

20.   PRONOUNS & DEFINITIONS ...............................................    16

21.   NOTICES ..............................................................    16
      21.1   Addresses for Notices .........................................    16
      21.2   Effective Date of Notice ......................................    16

22.   EXHIBITS; SPECIAL PROVISIONS .........................................    16
      22.1   Incorporation in Lease ........................................    16
      22.2   Conflicts .....................................................    17

23.   CAPTIONS .............................................................    17

24.   ENTIRE AGREEMENT; MODIFICATION .......................................    17

25.   SEVERABILITY .........................................................    17
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     This Lease, made this ______ day of ________, 199_, between ELIZABETHEAN
COURT ASSOCIATES III LIMITED PARTNERSHIP, a Maryland limited partnership,
(hereinafter referred to as "Landlord"), and SYTEL, INC., a Maryland
corporation, (hereinafter referred to as "Tenant").

     Landlord, for and in consideration of the covenants and agreements set
forth hereinafter, leases to Tenant, and Tenant leases from Landlord, the
premises described, for the use set forth and for the term and at the rent
reserved herein.

1.   SPECIFIC PROVISIONS

     1.1 Demised Premises

          (a) Space Description: Suite 400, as presently constructed.

          (b) Floor Area: Approximately 11,554 square feet (Washington D.C.
                          Association of Realtors Standard Floor Area Measure in
                          effect at the time of execution of this Lease).

          (c) Building: WESTMORELAND BUILDING

          (d) Address: 6430 Rockledge Drive
                       Bethesda, Maryland 20817

     1.2 Term of Lease: Five (5) years and Six (6) months, commencing on
December 1, 1995 ("Lease Commencement Date"), and expiring on May 31, 2001, both
dates inclusive.

     1.3 Base Annual Rent: Two Hundred Ten Thousand Eight Hundred Sixty and
52/100 Dollars ($210,860.52), payable in equal monthly installments of Seventeen
Thousand Five Hundred Seventy-One and 71/100 Dollars ($17,571.71), hereinafter
referred to as "base monthly rent", for the first Lease year. Thereafter, see
Section 26.1.

     1.4 Base Year: "Base Year" shall mean fiscal year of Landlord ending
December 31, 1996.

     1.5 Additional Rent: Payable in equal monthly installments, commencing on
December 1, 1996, consisting of the following:

          (a) Tenant's pro rata share equal to Eight and Eight Tenths Percent
(8.80%) of any increase in Real Estate Taxes over the Base Year Real Estate
Taxes; and

          (b) Tenant's pro rata share equal to Eight and Ninety-Seven Hundredths
Percent (8.97%) of any increase in Operating Expenses over the Base Year
Operating Expenses; and

          (c) Not Applicable.

     1.6 Security Deposit: Seventeen Thousand Five Hundred Seventy-One and
71/100 Dollars ($17,571.71).

     1.7 (a) Date Tenant approved Preliminary Plans to be furnished: Not
Applicable.

          (b) Working days to prepare Working Drawings and cost estimate: Not
Applicable.

          (c) Working days to substantially complete construction of demised
premises: Not Applicable.

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     1.8  Standard Building Operating Days and Hours:

          8:00 AM to 6:00 PM Monday - Friday
          8:00 AM to 1:00 PM Saturday

     1.9  Use of Premises:

     General office use and light assembly of computer parts in keeping with the
     quality and nature of this first class office building.

     1.10 (a) Address for Notices to Tenant:

               Sytel, Inc.
               6430 Rockledge Drive
               Suite 400
               Bethesda, Maryland 20817

          (b)  Address for Notices to Landlord:

               Elizabethean Court Associates III Limited
               c/o Charles E. Smith Management, Inc.
               2345 Crystal Drive
               Arlington, Virginia 22202

     1.11 Special Provisions:

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<S>                                           <C>
     Rent                                     Section 26
     Acceptance of Space                      Section 27
     Landlord's Contribution                  Section 28
     General Contractors                      Section 29
     Parking                                  Section 30
     Reasonableness of Landlord and Tenant    Section 31
     Construction of Premises and Occupancy   Section 32
     Access to Premises                       Section 33
     Subletting and Assignment                Section 34
     Services and Utilities                   Section 35
     Use and Upkeep of Premises               Section 36
     Access                                   Section 37
     Liability                                Section 38
     Landlord's Insurance                     Section 39
     Damage                                   Section 40
     Condemnation                             Section 41
     Hazardous Materials                      Section 42
     Bankruptcy                               Section 43
     Defaults and Remedies                    Section 44
     Tenant's Holdover                        Section 45
     Security Deposit                         Section 46
     Limitation of Liability                  Section 47
     Notices                                  Section 48
     Renewal Option                           Section 49
     Right of First Offering                  Section 50
     Nondisturbance                           Section 51
     Sprinklers                               Section 52
     Americans with Disabilities Act (ADA)    Section 53
     Exterior Signage                         Section 54
     Execution of Document                    Section 55
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     1.12 Exhibits to Lease:

          Exhibit "A" - Not Applicable
          Exhibit "B" - Not Applicable
          Exhibit "C" - Building Rules and Regulations
          Exhibit "D" - Not Applicable

     IN WITNESS WHEREOF, Landlord has caused this Lease, comprised of Specific
Provisions, General Provisions, Special Provisions and Exhibits to be signed and
sealed by one or more of its Officers, General Partners, Trustees, or Agents,
and Tenant has caused this Lease, as described above, to be signed in its
corporate name by its duly authorized officer and its corporate seal to be
hereto affixed and duly attested by its Secretary.

WITNESS:                                LANDLORD: ELIZABETHEAN COURT ASSOCIATES
                                        III LIMITED PARTNERSHIP

                                        By: Westmoreland Building Corporation,
                                        General Partner


/s/                                     BY /s/ Anne D. Camalier
------------------------------------       -------------------------------------
                                           Anne D. Camalier
                                           President


ATTEST:                                 TENANT: SYTEL, INC.


/s/                                     BY /s/ Jeannette H. Lee
------------------------------------       -------------------------------------
                                           Jeannette H. Lee
                                           President & CEO

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                               GENERAL PROVISIONS

2.   RENT

     2.1 Base Annual Rent. Tenant shall pay the first monthly installment of
Base Annual Rent upon execution of this Lease. Tenant shall pay the remaining
monthly installments of Base Annual Rent specified in Section 1.3 in advance
without deduction or demand, on the first day of each and every calendar month
throughout the entire term of the Lease, as specified in Section 1.2, to and at
the office of Landlord's Agent, Charles E. Smith Management, Inc., 2345 Crystal
Drive, Arlington, Virginia 22202, or to such other person or at such other place
as Landlord may hereafter designate in writing.

     2.2 Additional Rent. For purposes of computing additional rent hereunder,
the Base Year as used in this Section 2 is stipulated in Section 1.4. If dollar
amounts for Base Year real estate taxes and operating expenses are stipulated
under Section 1.4, such dollar amounts shall be used in calculating additional
rent for the purposes of this Lease and shall prevail regardless of actual
historical dollar amounts for the Base Year. Commencing on the date specified in
Section 1.5, and continuing throughout the term of this Lease, Tenant shall pay
to Landlord as additional rent each of the following:

          (a) Real Estate Taxes. Tenant's pro rata share, as indicated in
Section 1.5(a), of any increase in real estate taxes during each fiscal year of
Landlord over the Base Year real estate taxes. The term "real estate taxes"
shall mean all taxes, general and special, levied or assessed on the land and
the building improvements of which the Demised Premises is a part, and on any
land and/or improvements now or hereafter owned by Landlord that provide the
building or the Demised Premises with parking or other services.

          (b) Operating Expenses. Tenant's pro rata share, as indicated in
Section 1.5 (b), of any increase in operating expenses during each fiscal year
of Landlord over the Base Year operating expenses:

               (i) The term "operating expenses" shall mean any and all expenses
incurred by Landlord in connection with the servicing, operation, maintenance
and repair of the building and related interior and exterior appurtenances of
which the Demised Premises is a part, and the cost of any services incurred in
order to achieve a reduction of or to minimize the increase in operating
expenses, including without limitation, management fees, capital expenditures
for equipment or systems installed to reduce or minimize increases in operating
expenses and capital expenditures required by any governmental ordinance, or
depreciation or amortization based on the useful life expectancy of such
equipment or systems or expenditures, the cost of contesting the validity or
amount of real estate taxes, and periodic increases in ground rent payments
under any ground Lease existing at the execution of this Lease. Certain of these
expenses may be apportioned among two or more buildings in the same complex or
locality owned by Landlord and/or managed by Landlord's Agent.

               (ii) Operating expenses shall not include any of the following,
except to the extent that such costs and expenses are included in operating
expenses as described in Subsection 2.2(b)(i) above: capital expenditures and
depreciation of the building; painting or decorating of tenant space; interest
and amortization of mortgages; ground rent; compensation paid to officers or
executives of Landlord; taxes as measured by the net income of Landlord from the
operation of the building; increases in real estate taxes; and brokerage
commissions.

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