LEASE AGREEMENT BY AND BETWEEN CFRI/CQ NORWOOD UPLAND, L.L.C., AS LANDLORD AND TECH TARGET, INC., AS TENANT DATED SEPTEMBER ____, 2008 UPLAND WOODS CORPORATE CENTER, NORWOOD, MASSACHUSETTS
BY
AND BETWEEN
CFRI/CQ
NORWOOD UPLAND, L.L.C., AS LANDLORD
AND
TECH
TARGET, INC., AS TENANT
DATED
SEPTEMBER
____, 0000
XXXXXX
XXXXX XXXXXXXXX XXXXXX, XXXXXXX, XXXXXXXXXXXXX
Table
of Contents
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1.1.
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Introduction
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1.2.
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Basic
Data
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1.3.
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Additional
Definitions
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ARTICLE
II PREMISES AND APPURTENANT
RIGHTS
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2.1.
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Lease
of Premises
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2.2.
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Appurtenant
Rights and Reservations
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2.3.
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Rooftop
Equipment
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2.4.
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Fitness
Center
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2.5.
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Cafeteria
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2.6.
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Adjustment
to Premises Rentable Area
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ARTICLE
III BASIC RENT
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3.1.
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Basic
Rent
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ARTICLE
IV TERM OF LEASE
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4.1.
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Commencement
Date
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4.2.
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Preparation
of the Premises
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4.3.
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Conclusiveness
of Landlord’s Performance; Warranties
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[
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4.4.
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Relocation
Expense Reimbursement
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ARTICLE
V USE OF PREMISES
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5.1.
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Permitted
Use
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5.2.
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Installations
and Alterations by Tenant
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ARTICLE
VI ASSIGNMENT AND
SUBLETTING
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6.1.
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Prohibition
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6.2.
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Excess
Payments
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ARTICLE
VII RESPONSIBILITY FOR REPAIRS AND CONDITIONS OF
PREMISES
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7.1.
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Landlord
Repairs
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7.2.
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Tenant’s
Agreement
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7.3.
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Floor
Load - Heavy Machinery
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7.4.
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Building
Services
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7.5.
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Electricity
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7.6.
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Interruption
of Services
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ARTICLE
VIII REAL ESTATE TAXES
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8.1.
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Payments
on Account of Real Estate
Taxes
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8.2.
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Abatement
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8.3.
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Alternate
Taxes
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8.4.
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Tax
Increment Financing Agreement
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ARTICLE
IX OPERATING EXPENSES
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9.1.
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Definitions
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9.2.
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Tenant’s
Payment
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ARTICLE
X INDEMNITY AND PUBLIC LIABILITY
INSURANCE
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10.1.Tenant’s
Indemnity
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10.2.Public
Liability Insurance
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10.3.Tenant’s
Risk
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10.4.Injury
Caused by Third Parties
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10.5.Landlord’s
Insurance
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10.6.Waiver
of Subrogation
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10.7.Landlord
Indemnity
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ARTICLE
XI LANDLORD’S ACCESS TO
PREMISES
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11.1.Landlord’s
Rights
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ARTICLE
XII FIRE, EMINENT DOMAIN,
ETC.
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12.1.Abatement
of Rent
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12.2.Right
of Termination
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12.3.Restoration
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12.4.Award
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12.5.Temporary
Taking
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ARTICLE
XIII DEFAULT
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13.1.Default
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13.2.Remedies
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ARTICLE
XIV MISCELLANEOUS PROVISIONS
AND
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14.1.Extra
Hazardous Use
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14.2.Waiver
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14.3.Covenant
of Quiet Enjoyment
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14.4.Landlord’s
Liability
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14.5.Notice
to Mortgagee
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14.6.Assignment
of Rents and Transfer of Titles
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14.7.Rules
and Regulations
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14.8.Additional
Charges
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14.9.Invalidity
of Particular Provisions
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14.10.Provisions
Binding, Etc.
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14.11.Recording
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14.12.Notices
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14.13.When
Lease Becomes Binding
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14.14.Paragraph
Headings
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14.15.Rights
of Mortgagee; Park Covenants
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14.16.Status
Report
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00.00.Xxxxxxxx
Deposit
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14.18.Remedying
Defaults; Late Payments
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14.19.Holding
Over
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14.20.Surrender
of Premises
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14.21.Brokerage
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14.22.Environmental
Compliance
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14.23.Exhibits
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14.24.Governing
Law
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14.25.Evidence
of Authority
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14.26.Representations
and Warranties of Tenant
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14.27.Landlord’s
Representations and Warranties
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14.28.Permitting
Matters
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14.29.Force
Majeure
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ARTICLE
XV TENANT OPTION TO
EXTEND
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15.1.Fair
Market Rent
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15.2.Option
to Extend
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ARTICLE
XVI RIGHT OF FIRST OFFER TO
LEASE
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ARTICLE
XVII RIGHT OF FIRST OFFER TO
PURCHASE
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EXHIBIT
LIST
Exhibit
A: The
Land
Exhibit
B: Floor
Plan
Exhibit
C: Landlord's
Work
Exhibit
D: Schedule
Exhibit
E: Cleaning
Specifications
Exhibit
F: Items
Included in Operating Expenses
Exhibit
G: Rules
and Regulations
Exhibit
H: Form
of Letter of Credit
Exhibit
I:
Property Title Policy
THIS INSTRUMENT IS A LEASE,
dated as of September ___, 2008, in which the Landlord and the Tenant are the
parties hereinafter named, and which relates to space in a building (the
“Building”) located at Lot 4 in the Upland Xxxxx Corporate Center, Norwood,
Massachusetts. The parties to this instrument hereby agree with each
other as follows:
BASIC
LEASE PROVISIONS
1.1.
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Introduction
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The
following sets forth basic data and, where appropriate, constitutes definitions
of the terms hereinafter listed.
1.2.
|
Basic
Data
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Landlord: CFRI/CQ
Norwood Upland, L.L.C., a Delaware limited liability company
Landlord’s Original Address:
c/x Xxxxxxxxxx Companies, Xxx Xxxxxxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxxxxxxx
00000
Tenant: Tech
Target, Inc., a Delaware corporation
Tenant’s
Original Address:
Before the Commencement
Date: 000
Xxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, XX 00000
From and After the Commencement
Date: The Premises.
Building: An
approximately one hundred ninety-eight thousand six hundred forty-one square
foot (198,641 sq. ft.), four (4) story building to be located at Lot
4 in the Upland Xxxxx Corporate Center, Norwood, Massachusetts.
Basic Rent per square foot of the Premises
Rentable Area per annum:
Year 1
through Year
5: $28.75
Year 6 through Year
10: $30.75
Basic
Rent may be adjusted and/or abated pursuant to Sections 2.6, 4.2, 8.4 and
12.1.
Premises Rentable
Area: Approximately one hundred thirteen thousand seventeen
(113,017) square feet, of which one hundred two thousand five hundred
ninety-five (102,595) square feet are located on the third floor and portions of
the first, second and fourth floors of the Building (the “Phase I Premises”),
and the remaining ten thousand four hundred twenty-two (10,422) square feet is
located on fourth floor of the Building (the “Phase II Premises”), as measured
in accordance with the Measurement Method (subject to adjustment pursuant to
Section 2.6).
Permitted
Uses: General
office uses, as well as uses that are ancillary to general office use such as
data centers, training rooms and an employee break kitchen.
Parking
Space: Parking
spaces shall be provided based upon a ratio of four (4) spaces per one thousand
(1,000) square feet of the Premises Rentable Area, subject to the terms of
Section 2.2 below.
Escalation
Factor: 57%,
subject to adjustment in accordance with Section 2.6
Scheduled Completion
Date: December 31, 2009.
Initial Term: Ten (10) years,
commencing on the Commencement Date and expiring at the close of the day in the
last day of the 120th month following the Commencement Date.
Security Deposit: $737,402.00,
subject to adjustment pursuant to Section 14.17.
Base Operating Expenses: Base
Operating Expenses shall be the actual Operating Expenses for the Property for
calendar year 2010 (provided that, if during any
portion of calendar year 2010, less than 95% of the Building Rentable Area was
occupied by tenants or if the Building was in operation for only a portion of
such year, actual operating expenses incurred shall be reasonably extrapolated
by Landlord to the estimated operational expenses that would have been incurred
if the Building were in operation for the entire year and 95% occupied for such
year, and such extrapolated amount shall, for the purposes hereof, be deemed to
be the Base Operating Expenses).
Base Taxes: Base Taxes shall
be the fiscal year 2011, subject to the provisions of Section 8.4
below.
Public Liability
Insurance: $2,000,000 per occurrence (combined single limit)
for property damage, personal injury or death.
1.3.
|
Additional
Definitions
|
Building Rentable
Area: Approximately 198,641 square feet, measured in
accordance with the Measurement Method.
Business Days: All
days except Sunday, New Year’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Christmas Day (and the following day when any such day occurs
on Sunday).
Commencement
Date: As defined in Section 4.1.
Default of
Tenant: As defined in Section 13.1.
Escalation
Charges: The amounts prescribed in Sections 8.1 and
9.2.
Landlord’s
Work: As defined in Section 4.2.
Measurement
Method: ANSI/BOMA Z65.1 (1996), Standard Method of Floor
Measurement for Office Buildings.
Normal Business
Hours: As defined in Section 7.4.a.
Operating
Expenses: As determined in accordance with Section
9.1.
Operating Year: As
defined in Section 9.1.
Park
Covenants: That certain Declaration of Covenants, Easements
and Restrictions recorded in the Norfolk Registry of Deeds on February 10, 2005,
in Book 22094, Page 439, to which this Lease shall be subject, as more
particularly described in Article VIII hereof. For purposes hereof,
“Park” shall mean the Upland Xxxxx Business Park, as more particularly described
in the Park Covenants.
Premises: The portion of the
Building as shown on Exhibit B annexed
hereto (excluding the portion of Exhibit B associated
with the Building’s roof)
Property: The land
parcel as described in Exhibit A and the
Building to be constructed thereon (including adjacent
sidewalks). Landlord reserves the right, from time to time, to adjust
the boundaries of the Property.
Rent: Annual
Basic Rent, Escalation Charges, and all other amounts payable by Tenant
hereunder.
Tax Year: As
defined in Section 8.1.
Taxes: As
determined in accordance with Section 8.1.
Tenant’s Delay: As
defined in Section 4.2.
Tenant’s Plans: As
defined in Section 4.2.
Tenant’s Removable
Property: As defined in Section 5.2.
Term of this
Lease: The Initial Term and any extension thereof in
accordance with the provisions hereof.
ARTICLE
II
PREMISES
AND APPURTENANT RIGHTS
2.1.
|
Lease
of Premises
|
Landlord
hereby demises and leases to Tenant for the Term of this Lease and upon the
terms and conditions hereinafter set forth, and Tenant hereby accepts from
Landlord, the Premises.
2.2.
|
Appurtenant
Rights and Reservations
|
Tenant
shall have, as appurtenant to the Premises, (i) the non-exclusive right to use,
and permit its invitees to use, in common with others, public or common lobbies,
hallways, stairways, and elevators and common walkways, driveways and drive
aisles necessary for access to the Building, and if the portion of the Premises
on any floor includes less than the entire floor, the common toilets, corridors
and elevator lobby of such floor; but such rights shall always be subject to
reasonable rules and regulations from time to time established by Landlord
pursuant to Section 14.7 and to the right of Landlord to designate and change
from time to time areas and facilities so to be used; provided the same does not
adversely effect Tenant’s access to the Premises or use of the Premises for the
Permitted Uses; and (ii) parking spaces based upon a ratio of four (4) spaces
per 1,000 square feet of the Premises Rentable Area on the surface parking
areas, on a non-exclusive, first-come, first-served basis. With
respect to parking spaces, Landlord reserves the right to institute a tag or
sticker system to monitor compliance by Tenant and others of use of the parking
spaces. Tenant shall comply with all rules and regulations set forth
by Landlord from time to time regarding the parking area including, without
limitation, rules and regulations regarding guest parking. Landlord
shall have no obligation to police the parking area or to insure the safety of
Tenant’s automobiles. The Building shall be designated a non-smoking
area and Tenant will comply, and will use diligent efforts to cause its
employees and invitees to comply, with Building regulations regarding
non-smoking areas. In the event that Landlord obtains permits for and
constructs parking within Lot 4 as shown on the plan referenced in the attached
Exhibit A,
whether at the time of its initial development or thereafter, such that the
total number of parking spaces for the Building exceeds the ratio of four (4)
spaces per 1,000 square feet of the Building Rentable Area, Landlord agrees that
all such excess parking spaces shall be added to the number of spaces allocated
to Tenant hereunder; provided, however, the foregoing shall in no event be
deemed to obligate Landlord to construct any excess parking for the
Building. The parties acknowledge that such excess parking described
in the immediately preceding sentence relates only to ground level parking
spaces within Lot 4 as shown on the plan referenced in the attached Exhibit A, and not to
any structured parking, or to any surface parking constructed on land which may
be later incorporated into the Property that Landlord may later elect to
construct. The parties acknowledge that Landlord reserves the right
to construct a structured parking facility on the Property, and to add
additional land into the Property on which may be constructed additional surface
parking; provided that, in such event, (a) Tenant’s allocated number of
parking spaces shall neither be reduced nor shall be increased thereby, and
(b) Landlord may temporarily relocate Tenant's allocated number of parking
spaces to a convenient location during such construction. Landlord
further confirms that Landlord’s reserved right to alter the boundaries of the
Property shall not reduce the parking allocated to Tenant
hereunder.
Excepted
and excluded from the Premises are the ceiling, floor and all perimeter walls of
the Premises, except the inner surfaces thereof, but the entry doors to the
Premises are a part thereof; and Tenant agrees that Landlord shall have the
right to place in the Premises (but in such manner as to reduce to a minimum
interference with Tenant’s use of the Premises) utility lines, pipes and the
like, in, over and upon the Premises, provided that Landlord shall, if it is
reasonably feasible, place such utility lines, pipes and the like behind the
walls, above the ceilings and below the floor of the Premises. Tenant shall
install and maintain, as Landlord may require, proper access panels in any hung
ceilings or walls as may be installed by Tenant following completion of the
initial improvements to afford access to any facilities above the ceiling or
within or behind the walls of the Premises.
2.3.
|
Rooftop
Equipment
|
Landlord
hereby grants to Tenant a license to use, at Tenant’s sole cost and expense (but
without any obligation to pay any additional rent therefor) a portion of the
roof of the Building in the location shown on Exhibit B for the
installation of a satellite dish or dishes (or other communications equipment)
to be used exclusively in the conduct of Tenant’s business in the Premises and
not for lease or license to third parties, and for the installation of HVAC
equipment exclusively servicing the Premises, with conduits connecting such
equipment to the Premises in a vertical chase mutually designated by Landlord
and Tenant (collectively, the “Rooftop Equipment”). Tenant shall
install the Rooftop Equipment at its sole cost and expense, in accordance with
the provisions of Section 5.2 of this Lease. Tenant shall repair any
damage to the roof caused by the installation, operation, or removal of the
Rooftop Equipment, compensate Landlord for any impairment of Landlord’s roof
warranty resulting therefrom, and remove all Rooftop Equipment at the end of the
Term of this Lease unless Landlord expressly waives the requirement of such
removal. Landlord assumes no responsibility for interference in the
operation of Tenant’s Rooftop Equipment caused by other telecommunications
equipment installed elsewhere in or on the Building or elsewhere on the
Property. The obligations of Tenant hereunder shall survive the
expiration or termination of this Lease.
2.4.
|
Fitness
Center
|
Landlord
shall provide a fitness center on the first floor of the Building for use in
common by Tenant and other Building occupants (the “Fitness
Center”). The Fitness Center shall be constructed in accordance with
the specifications set forth in Exhibit C, which
specifications shall include exercise equipment, showers, lockers, and a
changing area. Landlord shall have no obligation to provide staffing,
laundry or other services for the Fitness Center, other than routine
maintenance, repair and cleaning (in accordance with Exhibit E), and
replacement of equipment as needed from time to time.
2.5.
|
Cafeteria
|
Landlord
shall provide a full service cafeteria on the first floor of the Building for
use in common by Tenants and other Building occupants (the
“Cafeteria”). The Cafeteria will be staffed by a food service
operator, which shall be consistent with food service operators used in other
suburban office buildings in the Boston area, the cost of which shall constitute
an Operating Expense hereunder. Tenant shall have the non-exclusive
right to use the Cafeteria for employee meetings and other gatherings during
non-operating hours of the Cafeteria, provided that Tenant shall be responsible
for all cleaning, trash removal and any repairs required by such
use.
2.6.
|
Adjustment
to Premises Rentable Area
|
a.
|
Landlord
shall, before the Commencement Date, obtain an exact measurement of the
Building and the Premises in accordance with the Measurement
Method. Such measurement shall be made by Landlord's architect
(with Tenant’s input) at the cost and expense of
Landlord.
|
b.
|
If
the Premises Rentable Area as so measured is more or less than the
Premises Rentable Area as set forth in Section
1.2:
|
i.
|
Basic
Rent shall, retroactively to the Commencement Date, be recomputed by
multiplying the Basic Rent set forth in Section 1.2 by a fraction, the
numerator of which shall be Premises Rentable Area as determined by such
measurement and the denominator of which shall be the Premises Rentable
Area set forth in Section 1.2:
and
|
ii.
|
The
Escalation Factor shall be recomputed to be the percentage determined by
dividing the Premises Rentable Area by Building Rentable Area, each as
determined by such measurement.
|
c.
|
Any
payment due either party as a result of such recomputations shall, if due
from Tenant, be paid within fifteen (15) days of such recomputation, or if
due from Landlord, be credited against the first amounts of Basic Rent due
after such recomputation.
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d.
|
In
the event of any adjustment pursuant to this Section, Landlord and Tenant
shall promptly execute a written statement setting forth the recomputed
Building Rentable Area, Premises Rentable Area, Basic Rent and Escalation
Factor.
|
ARTICLE
III
BASIC
RENT
3.1.
|
Basic
Rent
|
a.
|
Tenant
agrees to pay to Landlord, or as directed by Landlord, commencing on the
Commencement Date, without offset, abatement (except as provided in
Article 12.1), deduction or demand, the Basic Rent. Such Basic
Rent shall be payable in equal monthly installments, in advance, on the
first day of each and every calendar month during the Term of this Lease,
at Landlord’s Original Address, or at such other place as Landlord shall
from time to time designate by notice. Until notice of some
other designation is given, Basic Rent and all other charges for which
provision is herein made shall be paid by remittance payable to Landlord,
at Landlord’s Original Address, or at such other place as Landlord shall
from time to time designate by notice. Notwithstanding the
foregoing, Landlord and Tenant agree that Tenant shall not be required to
pay Basic Rent or Escalation Charges with respect to the Phase II Premises
until the date that is the third (3rd)
anniversary of the Commencement Date; provided, that, commencing on the
date that is eighteen (18) months after the Commencement Date (the “Tax
and Operating Expense Payment Commencement Date”), Tenant shall pay to
Landlord an amount equal to the Taxes (hereinafter defined) and Operating
Expenses (hereinafter defined) with respect to the Phase II Premises for
(i) the last six (6) months of Year 2 of the Initial Term, and (ii) Year 3
of the Initial Term (the “Initial Tax and Operating Expense
Payments”). The Initial Tax and Operating Expense Payments
shall be made monthly and at the time and in the fashion herein provided
for the payment of Basic Rent. For the avoidance of doubt,
Landlord and Tenant acknowledge and agree that commencing on the date that
is three (3) years after the Commencement Date (the “Phase II Premises
Rent Commencement Date”), Tenant shall be required to pay Basic Rent and
Escalation Charges with respect to the Phase II Premises in accordance
with the terms of this Lease.
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b.
|
Basic
Rent for any partial month shall be prorated on a daily basis, and if the
date for commencement thereof is a day other than the first day of a
calendar month, the first payment which Tenant shall make to Landlord
shall be equal to a proportionate part of the monthly installment of Basic
Rent for the partial month from such date to the last day of the month in
which such date occurs plus the installment of Basic Rent for the
succeeding calendar month. In addition to any charges pursuant
to Section 14.18, Tenant shall pay a late charge equal to 5% of the amount
of any Basic Rent payment not paid within five (5) days of the due date
thereof more than once in any twelve (12) month
period.
|
c.
|
The
foregoing covenants of Tenant are independent covenants and Tenant shall
have no right to withhold or xxxxx any payment of Basic Rent, additional
rent or other payment, or to set off any amount against the Basic Rent,
additional rent or other payment then due and payable, or to terminate
this Lease, because of any breach or alleged breach by Landlord of this
Lease; Tenant hereby acknowledges and agrees that it has been represented
by counsel of its choice and has participated fully in the negotiation of
this Lease, that Tenant understands that the remedies available to Tenant
in the event of a default by Landlord may be more limited than those that
would otherwise be unavailable to Tenant under the common law in the
absence of certain provisions of this Lease, and that the so-called
“dependent covenants” rule as developed under the common law (including,
without limitation, the statement of such rule as set forth in the
Restatement (Second) of Property, Section 7.1) shall not apply to this
Lease or to the relationship of landlord and tenant created
hereunder.
|
ARTICLE
IV
TERM
OF LEASE
4.1.
|
Commencement
Date
|
The
Commencement Date shall be the later to occur of:
a.
|
The
Scheduled Completion Date; or
|
b.
|
The
day following the date on which the Phase I Premises are ready for
occupancy as provided in Section
4.2.
|
Notwithstanding
the foregoing, if Tenant’s personnel shall occupy all or any part of the
Premises for the conduct of its business (which shall not include Tenant’s (or
its agents) activities related to the preparation of the Premises for occupancy
and use) before the Commencement Date as determined pursuant to the preceding
sentence, such date of occupancy shall, for all purposes of this Lease, be the
Commencement Date.
4.2.
|
Preparation
of the Premises
|
a.
|
Landlord
and Tenant have approved the plans and specifications attached hereto as
Exhibit B
and Exhibit
C (the “Plans”). Landlord shall exercise all reasonable
efforts to complete (x) the work (“Landlord’s Work”) as specified in the
Plans necessary to prepare the Premises for Tenant’s occupancy and all
necessary ancillary parts of the Building required for Tenant’s use and
enjoyment of the Premises, as set forth in Exhibit C, (y)
the Fitness Center and (z) the Cafeteria, in accordance with the schedule
attached hereto as Exhibit D by
the Scheduled Completion Date. If Landlord's Work has not been
substantially completed by the Scheduled Completion Date, this Lease shall
nevertheless continue in full force and effect and Landlord shall continue
to use diligent efforts to substantially complete Landlord's
Work. Landlord shall perform Landlord's Work at its sole cost
and expense, and in a lien free manner; provided that Landlord shall have
the right to bond over any liens filed against the Premises or the
Building. Any increase in the cost of Landlord’s Work resulting
from a change by Tenant in any of the Plans after the date hereof shall be
paid to Landlord 50% upon the date of Tenant’s authorization to Landlord
to proceed with such change, and 50% upon substantial completion thereof
as certified by Landlord's architect. Tenant shall, if
requested by Landlord, execute a written confirmation of such excess costs
and Tenant’s agreement to any Tenant Delay occasioned thereby before the
time Landlord shall be required to commence work. Landlord
shall, at its expense, procure a certificate of occupancy or an equivalent
use or occupancy permit or approval issued by the local building inspector
in connection with its construction obligations hereunder prior to the
Commencement Date.
|
b.
|
Notwithstanding
the foregoing, Landlord and Tenant agree that the scope of and details of
Landlord’s Work with respect to the Phase II Premises shall be as set
forth on Exhibit
C attached hereto.
|
c.
|
The
Phase I Premises shall be deemed ready for occupancy on the first day as
of which:
|
i.
|
Landlord’s
Work has been completed except for items of work (and, if applicable,
adjustment of equipment and fixtures) which can be completed after
occupancy has been taken without causing undue interference with Tenant’s
use of the Phase I Premises (i.e., so-called “punch list” items) and a
certificate of occupancy or an equivalent use or occupancy permit or
approval has been issued by the local building inspector permitting the
use of the Phase I Premises for the Permitted Uses and a certificate of
substantial completion has been issued to Landlord and Tenant by
Landlord’s architect in connection with Landlord’s construction
obligations hereunder, and
|
ii.
|
Tenant
has been given notice of the date that Landlord’s Work was or will be
completed, such notice to be given by Landlord to Tenant at least ten (10)
days before the anticipated date of completion. The
determination as to whether the Phase I Premises are ready for occupancy
shall be made by Landlord's architect and shall be conclusive and binding
on Landlord and Tenant. Landlord shall complete within sixty
(60) days or as soon as conditions permit all “punch list” items and
Tenant shall afford Landlord access to the Phase I Premises for such
purposes. All telephone installation in the Premises shall be
the responsibility of the Tenant, except as set forth in Exhibit
C. Failure or delay of such installation shall not delay
the above completion date.
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d.
|
Thirty
(30) days prior to the Commencement Date, Landlord shall permit Tenant
access to the Phase I Premises for the purpose of allowing Tenant or its
contractors to prepare the Phase I Premises for occupancy and use,
including to install fixtures and wiring for security, data and telephone
services and similar work required to prepare the Phase I Premises for
occupancy when such access may be provided without material interference
with the remaining Landlord Work provided that any such work to be
performed by Tenant or its contractor’s during such period shall (i) not
interfere with the remaining Landlord Work, (ii) be coordinated with the
remaining Landlord Work in such a manner as to maintain harmonious labor
relations and not cause any work stoppage or damage to the Premises or the
Building and (iii) not interfere with Building construction or
operation. Tenant agrees not to employ or permit the use of any
labor or otherwise take any action which might result in a labor dispute
involving personnel providing services in the Building pursuant to
arrangements with Landlord.
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e.
|
If
a delay shall occur in the date the Phase I Premises are ready for
occupancy pursuant to paragraph (c) as the result of any of the following
(a “Tenant’s Delay”):
|
i.
|
Any
documented request by Tenant that Landlord delay in the commencement or
completion of Landlord’s Work for any
reason;
|
ii.
|
Any
change by Tenant in any of the Landlord's Work that, in Landlord's
reasonable judgment, causes a delay in Landlord's completion of Landlord's
Work;
|
iii.
|
Any
failure by Tenant to adhere to the schedule set forth in Exhibit D, except
for schedule delays mutually and expressly agreed upon by Landlord and
Tenant;
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iv.
|
Any
other act or omission of Tenant or its officers, agents, servants or
contractors;
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v.
|
Any
reasonably necessary displacement of any of Landlord’s Work from its place
in Landlord’s construction schedule resulting from any of the causes for
delay referred to in clauses i., ii., iii., or iv of this paragraph and
the fitting of such Work back into such schedule (which fitting Landlord
shall use reasonable efforts to do and give Tenant notice of the proposed
revised schedule); or
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vi.
|
Any
act or omission of Tenant in violation of paragraph (d)
above;
|
then
Tenant shall, prior to the Commencement Date, pay the Landlord as an additional
charge for each day of such delay equal to the amount of Basic Rent, Escalation
Charges and other charges that would have been payable hereunder had the
Commencement Date occurred before such delay. Tenant also shall pay
to Landlord within ten (10) days of invoice therefor, any additional
costs incurred by Landlord in completing the work to the extent that such costs
are reasonably attributable to Tenant’s Delay. Landlord will use
reasonable efforts to deliver notice to Tenant, if circumstances permit, of any
of the foregoing if Landlord has knowledge that such event may give rise to a
Tenant Delay.
f.
|
If,
as a result of Tenant’s Delay(s), Landlord’s Work is delayed in the
aggregate for more than ninety (90) successive days, Landlord may (but
shall not be required to) at any time thereafter terminate this Lease by
giving written notice of such termination to Tenant and thereupon this
Lease shall terminate without further liability or obligation on the part
of either party except that Tenant shall pay to Landlord the cost
theretofore incurred by Landlord in performing Landlord’s
Work.
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g.
|
If
the Phase I Premises are not “ready for occupancy” by January 1, 2010
other than as the result of a Tenant Delay or an event of Force Majeure (a
“Landlord Delay”), then for each day after such date that Landlord’s Work
is not “ready for occupancy” Tenant shall receive a credit against the
Basic Rent hereunder in an amount equal to the holdover rent and legal
expenses, in excess of its current rent (the “Holdover Costs”), actually
incurred by Tenant (as evidenced by rental invoices received by Tenant),
not to exceed the “Holdover Costs Cap” (as set forth in the chart below),
pursuant to Tenant’s lease with Intercontinental Fund III as successor to
Wellsford/Whitehall Holdings, L.L.C. dated November 25, 2003 (as amended
to date, “Tenant Prior Lease”), as
follows:
|
Period
that Phase I Premises are not “ready for occupancy”
|
Holdover
Costs Cap
|
January
1, 2010 through January 20, 2010
|
100%
of the Holdover Costs, but not to exceed $2,800 per day
|
January
21, 2010 through February 10, 2010
|
107%
of Holdover Costs, but not to exceed $3,000 per day
|
February
11, 2010 through February 28, 2010
|
111%
of Holdover Costs, but not to exceed $3,100 per day
|
March
1, 2010 through March 31, 2010
|
114%
of Holdover Costs, but not to exceed $3,200 per day
|
April
1, 2010 and after
|
114%
of Holdover Costs, but not to exceed $4,000 per
day
|
For the
avoidance of doubt, the parties agree that “Holdover Costs” shall only include
the payment of holdover rent and legal fees, in excess of its current rent,
actually incurred by Tenant in negotiating the holdover rent pursuant to the
terms of Tenant’s Prior Lease (up to the aforementioned Holdover Costs Cap) and
shall expressly exclude any operating cost payments, real estate tax payments,
or any other costs associated with Tenant’s operating within its premises under
Tenant’s Prior Lease.
h.
|
If
the Phase I Premises are not “ready for occupancy” by April 30, 2010 as
the result of a Landlord Delay, then Tenant may (but shall not be required
to) terminate this Lease by giving written notice of such termination to
Landlord and thereupon this Lease shall terminate without further
liability or obligation on the part of either
party.
|
i.
|
If
the Phase II Premises are not “ready for occupancy” (as determined
pursuant to the procedure set forth in Section 4.2(c), to the extent
applicable) by the date that is thirty (30) days after the Commencement
Date as the result of a Landlord Delay, then for each day after such date
that the Phase II Premises are not “ready for occupancy”, the Tax and
Operating Expense Payment Commencement Date and the Phase II Premises Rent
Commencement Date shall be delayed for one (1) day of each day of such
delay.
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4.3.
|
Conclusiveness
of Landlord’s Performance;
Warranties
|
Except to
the extent to which Tenant shall have given Landlord written notice, not later
than one hundred twenty (120) days after the Commencement Date (and not later
than the expiration of twelve (12) months after the Commencement Date as to
latent defects), of respects in which Landlord has not performed Landlord’s
Work, Tenant shall be deemed to have acknowledged that all Landlord’s Work has
been completed to Tenant’s satisfaction and that Tenant has waived any claim
that Landlord has failed to perform any of Landlord’s Work. Landlord
shall use diligent efforts to complete any punchlist items within sixty (60)
days after the Commencement Date, to the extent feasible. Landlord
shall correct any defects due to faulty workmanship or materials in Landlord’s
Work, provided Tenant shall have given written notice of such defects to
Landlord before the first anniversary of the Commencement Date. From
and after the expiration of such twelve (12) month period, Tenant shall be
entitled to the benefit of any applicable warranties obtained by Landlord from
third parties with respect to Landlord’s Work provided that Tenant shall be
solely responsible for enforcing such warranties directly against the party
providing the same. Landlord shall assign, to the extent permissible,
all warranties to Tenant for the Premises following said twelve (12) month
period.
4.4.
|
Relocation
Expense Reimbursement
|
In
addition to the performance of Landlord’s Work, following the Commencement Date
and the commencement of payment of Rent hereunder, Landlord shall reimburse
Tenant for its actual third party relocation expenses or system furniture
installation in an amount up to One Hundred Thousand Dollars ($100,000.00)
within thirty (30) days after receipt of paid invoices therefor.
ARTICLE
V
USE
OF PREMISES
5.1.
|
Permitted
Use
|
a.
|
The
Premises shall be used and occupied by Tenant only for Permitted Uses and
for no other purpose.
|
b.
|
Tenant
shall conform to the following provisions during the Term of this
Lease:
|
i.
|
Tenant
shall cause all freight to be delivered to or removed from the Building
and the Premises in accordance with reasonable rules and regulations
established by Landlord therefor;
|
ii.
|
Tenant
will not place on the exterior of the Premises (including both interior
and exterior surfaces of windows and doors) or on any part of the Building
outside the Premises, any sign, symbol, advertisement or the like visible
to public view outside of the Premises without the prior consent of
Landlord. Landlord will provide building standard lettering on
the entry doors to the Premises, and will maintain a tenant directory in
the lobby of the Building in which will be placed Tenant’s name and the
location of the Premises in the Building. Landlord hereby
agrees that no other tenant of the Building shall have the right to have
an exterior sign on the Building on Tenant’s side of the lobby, as more
particularly shown on Exhibit
H. Tenant shall be solely responsible for any costs or
expenses associated with its signage; provided, however, Landlord shall
provide Tenant with up to a $20,000 signage allowance, as more
particularly set forth in Exhibit
C.
|
iii.
|
Tenant
shall not perform any act or carry on any practice which may injure the
Premises, or any other part of the Building, or cause any offensive odors
or loud noise or constitute a nuisance or a menace to any other tenant or
tenants or other persons in the Building;
and
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iv.
|
Tenant
shall not operate any cooking apparatus (except for coffee making
equipment, a microwave oven, a standard size refrigerator and a sink) in
the Premises. Tenant may have vending machines in the
Premises.
|
5.2.
|
Installations
and Alterations by Tenant
|
a.
|
Tenant
shall make no alterations, additions or improvements (collectively,
“Improvements”) in or to the Premises without Landlord’s prior written
consent provided that subsequent to the completion of the Landlord’s Work,
Landlord’s consent shall not be required if such Improvements (i) are
non-structural, do not affect any Building systems, and do not exceed in
the aggregate a cost of Fifty Thousand ($50,000.00) Dollars, or (ii) are of a
decorating nature (i.e., carpeting, painting, wallpaper) irrespective of
the cost. With respect to Improvements requiring Landlord’s
consent, Landlord shall not unreasonably withhold, condition or delay its
consent for non-structural Improvements to the Premises. All
Improvements shall:
|
i.
|
Be
performed in a good and workmanlike manner and in compliance with all
applicable laws;
|
ii.
|
Be
made only by contractors or mechanics approved by
Landlord;
|
iii.
|
Be
made at Tenant’s sole expense and at such times and in such manner as
Landlord may from time to time reasonably designate;
and
|
iv.
|
Become
part of the Premises and the property of
Landlord.
|
b.
|
All
articles of personal property and all business fixtures, machinery and
equipment and furniture owned or installed by Tenant solely at its expense
in the Premises (“Tenant’s Removable Property”) shall remain the Property
of Tenant and shall be removed by Tenant at any time before the expiration
of this Lease, provided that Tenant, at its expense, shall repair any
damage to the Premises and the Building caused by such
removal.
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c.
|
Notice
is hereby given that Landlord shall not be liable for any labor or
materials furnished or to be furnished to Tenant upon credit, and that no
mechanic’s or other lien for any such labor or materials shall attach to
or affect the reversion or other estate or interest of Landlord in and to
the Premises. Whenever and as often as any mechanic’s lien
shall have been filed against the Property based upon any act or interest
of Tenant or of anyone claiming through Tenant, Tenant shall forthwith
take such action by bonding, deposit or payment as will remove or satisfy
the lien. Landlord shall have the option, but not the
obligation, of removing, bonding over or paying such lien if Tenant has
not done so within ten (10) days following Landlord’s notice to Tenant of
the filing of the same, and any amounts paid by Landlord therefor shall be
paid to Landlord within fifteen (15) days after invoice therefor as
additional rent hereunder.
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d.
|
Tenant
shall not be obligated to remove at the end of the Term of this Lease (i)
any Improvement unless Landlord specifies an Improvement for removal at
the time Landlord consents to such Improvement (Landlord hereby agreeing
that alterations consistent with a general office build out and the
initial improvements in the Premises shall not require removal by Tenant),
or (ii) any improvements built by Landlord as part of the initial fit-up
of the Premises which would customarily be considered standard tenant
improvement (collectively referred to herein as “Building Standard Office
Improvements”).
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ARTICLE
VI
ASSIGNMENT
AND SUBLETTING
6.1.
|
Prohibition
|
a.
|
Tenant
covenants and agrees that neither this Lease nor the term and estate
hereby granted, nor any interest herein or therein, will be assigned,
mortgaged, pledged, encumbered or otherwise transferred and that neither
the Premises nor any part thereof will be encumbered in any manner by
reason of any act or omission on the part of Tenant, or used or occupied
or permitted to be used or occupied, by anyone other than Tenant, or for
any use or purpose other than a Permitted Use, or be sublet (which term,
without limitation, shall include granting of concessions, licenses and
the like) in whole or in part, without, in each instance, having first
received the express written consent of Landlord which, in the case of any
subletting, will not be unreasonably withheld subject to the following
conditions: (i) Tenant is not then in default under this Lease,
(ii) the proposed sublease is not to any party then occupying any space in
the Park, or, until the first (1st)
anniversary of the Commencement Date, to any party with whom Landlord has
a written proposal to lease space in the Building outstanding for sixty
(60) days or less, (iii) the prospective subtenant or assignee is of the
type and quality suitable for a first-class office building, and (iv) any
such sublease shall be subject to all the other provisions of this Article
VI. Tenant’s request for Landlord’s consent shall be in writing
and shall contain the name and address of the proposed sublessee, the rent
and other sums to be paid thereunder, the effective date of the proposed
sublease and the other major business terms thereof, and the term and area
of any proposed sublease. In all other cases, Landlord’s
consent may be withheld in its sole discretion. Landlord shall
respond to any request for consent as to which Landlord’s consent is not
be unreasonably withheld within ten (10) business days of request
therefor, and to other such requests within twenty (20) business days of
request therefor. The foregoing restrictions shall not be
applicable to (i) an assignment of this Lease or a subletting of the
Premises by Tenant to an entity controlling, controlled by or under common
control with Tenant or (ii) an assignment of this Lease to an entity that
succeeds to Tenant’s interest in this Lease by reason of merger,
acquisition, consolidation or reorganization (collectively such entities
are referred to herein as, “Affiliates”), provided that Tenant shall,
before the effective date of such assignment to an entity described in the
foregoing clause (ii), provide to Landlord evidence reasonably
satisfactory to Landlord that, as of the date of such assignment, the
assignee shall have a net worth equal to the greater of the net worth of
Tenant as of the date of this Lease or as of the date of the
assignment. It shall be a condition of the validity of any
assignment, whether with the consent of Landlord or to an Affiliate, that
the assignee agrees directly with Landlord, by written instrument in form
satisfactory to Landlord, to be bound by all the obligations of Tenant
hereunder including, without limitation, the covenant against further
assignment and subletting. No assignment or subletting shall
relieve Tenant from its obligations hereunder and Tenant shall remain
fully and primarily liable therefor. Notwithstanding the
foregoing, Tenant shall be entitled to sublease portions of the Premises,
without Landlord’s consent (but Tenant shall deliver Landlord written
notice of such subleases), to vendors or other third parties having a
substantial business relationship with Tenant; provided that such
subleasing (xx) does not involve any improvements or modifications to the
Premises, including, without limitation, the installation of demising
walls, (yy) does not result in Tenant earning a profit from the sublease
of such space, and (zz) does not exceed more than 10,000 rentable square
feet of the Premises in the
aggregate.
|
b.
|
If
this Lease be assigned, or if the Premises or any part thereof be sublet
or occupied by anyone other than Tenant, Landlord may, at any time and
from time to time, collect rent and other charges from the assignee,
subtenant or occupant, and apply the net amount collected to the rent and
other charges herein reserved, but no such assignment, subletting,
occupancy or collection shall be deemed a waiver of this covenant, or the
acceptance of the assignee, subtenant or occupant as a tenant or a release
of Tenant from the further performance by Tenant of its obligations
hereunder. The consent by Landlord to an assignment or
subletting shall in no way be construed to relieve Tenant or any successor
from obtaining the express consent in writing of Landlord to any further
assignment or subletting. No assignment or subletting and no
use of the Premises by a subsidiary wholly-owned by Tenant or controlling
corporation of Tenant shall affect Permitted
Uses.
|
c.
|
Landlord
Option.
|
i.
|
Right
to Cancel. Notwithstanding any contrary provision of this
Section 6.1, in connection with either (x) a proposed assignment
(other than to an Affiliate) at any time during the Term, or (y) a
proposed subletting (other than to an Affiliate) during the final
twenty-four (24) months of the Term, if the request is to sublet more than
fifty (50%) percent of the Premises, Landlord shall have an option to
cancel and terminate this Lease by notice to Tenant in the case of
assignment, or in the case of subletting, with respect to such portion of
the Premises which is the subject of the proposed
sublease. Landlord may exercise said option in writing within
twenty (20) business days after Landlord’s receipt from Tenant of (I) a
request to so assign or sublet, or (II) a term sheet setting forth all
material business terms upon which Tenant intends to so assign or sublease
the Premises, and such cancellation or termination shall occur as of the
date set forth in Landlord’s notice of exercise of such option, which
shall not be less than thirty (30) days nor more than ninety (90) days
following the giving of such
notice.
|
ii.
|
Cancellation. If
Landlord exercises Landlord’s option to cancel hereunder, Tenant shall
surrender possession of the portion of the Premises which is the subject
of the option on the date set forth in such notice in accordance with the
provisions of this Lease relating to surrender of the Premises at the
expiration of the Term. In such event, (i) Basic Rent,
Escalation Charges and any other sums due hereunder with respect to the
surrendered portion of the Premises after the date of cancellation shall
be abated on a pro rata basis, and (ii) in the case of subletting,
Landlord shall have the right to construct a demising wall and perform
such other space reconfiguration measures as are necessary between
Tenant’s remaining Premises and the premises for which the Lease was
cancelled.
|
iii.
|
No
Deemed Consent. The acceptance by the Landlord of the payment
of Basic Rent, Additional Rent or other charges following an assignment,
subletting or assignment prohibited by this Section 6.1 shall not be
deemed to be a consent by the Landlord to any such subletting or
assignment, nor shall the same constitute a waiver of any right or remedy
of Landlord.
|
6.2.
|
Excess
Payments
|
If:
i.
|
The
rent and other sums received by Tenant on account of a sublease of all or
any portion of the Premises exceeds the Basic Rent and Escalation Charges
allocable to the space subject to the sublease (in the proportion of the
area of such space to the entire Premises) plus actual out-of-pocket
expenses incurred by Tenant in connection with Tenant’s subleasing of such
space, including brokerage commissions to a licensed broker and the cost
of preparing such space for occupancy by the subtenant (the “Tenant
Costs”), Tenant shall pay to Landlord, as an additional charge, 50% of
such excess, monthly as received by Tenant;
or
|
ii.
|
Any
payment received by Tenant on account of any assignment of this Lease
exceeds the actual out-of-pocket expenses incurred by Tenant in connection
with such assignment, including brokerage commissions to a licensed broker
and the cost of preparing space for the assignee (the “Tenant Costs”),
Tenant shall pay to Landlord, as an additional charge, 50% of such excess
when received by Tenant.
|
ARTICLE
VII
RESPONSIBILITY
FOR REPAIRS AND CONDITIONS OF PREMISES;
SERVICES
TO BE FURNISHED BY LANDLORD
7.1.
|
Landlord
Repairs
|
a.
|
Except
as otherwise provided in this Lease, Landlord shall keep in good order,
condition and repair and in accordance with the requirements of applicable
law the roof, public areas (including common areas), exterior walls,
exterior glass, floor slabs, the Building HVAC system (but not any special
tenant HVAC system) and structure of the Building (including plumbing,
mechanical and electrical systems), all insofar as they affect the
Premises, except that Landlord shall in no event be responsible to Tenant
for the condition of glass in and about the Premises or for the doors
leading to the Premises, or for any condition in the Premises or the
Building caused by any act or neglect of Tenant, its invitees or
contractors (in which case Tenant shall promptly effect such repairs or,
at Landlord’s option, Landlord may effect such repairs and charge the
entire cost thereof to Tenant as additional rent provided, however, that
if, after Tenant pays the cost of such repair, Landlord receives from its
insurance carrier proceeds with respect to the cost of such repairs,
Landlord shall reimburse Tenant for the cost of such repairs up to the
amount actually received by Landlord with respect to the same). Landlord
shall not be responsible to make any improvements or repairs to the
Building other than as expressly in this Section 7.1 provided, unless
expressly provided otherwise in this
Lease.
|
b.
|
Landlord
shall never be liable for any failure to make repairs which, under the
provisions of this Section 7.1 or elsewhere in this Lease, Landlord has
undertaken to make unless Tenant has given notice to Landlord of the need
to make such repairs, and Landlord has failed to commence to make such
repairs within a reasonable time after receipt of such notice, or fails to
proceed with reasonable diligence to complete such
repairs. Landlord shall make repairs in emergency situations as
quickly as possible in the
circumstances.
|
7.2.
|
Tenant’s
Agreement
|
a.
|
Tenant
will keep neat and clean and maintain in good order, condition and repair
the Premises and every part thereof, excepting only those repairs for
which Landlord is responsible under the terms of this Lease, reasonable
wear and tear of the Premises, and damage by fire or other casualty and as
a consequence of the exercise of the power of eminent domain; and shall
surrender the Premises, at the end of the Term, in such
condition. Without limitation, Tenant shall maintain and use
the Premises in accordance with all directions, rules and regulations of
the proper officers of governmental agencies having jurisdiction, and
shall, at Tenant’s own expense, obtain all permits, licenses and the like
required by applicable law. Tenant shall be responsible for the
cost of repairs that may be made necessary by reason of damage to common
areas in the Building by Tenant, Tenant's independent contractors or
Tenant's invitees.
|
b.
|
If
repairs are required to be made by Tenant pursuant to the terms hereof,
Landlord may demand that Tenant make the same forthwith, and if Tenant
refuses or neglects to commence such repairs and complete the same with
reasonable dispatch, after such demand, Landlord may (but shall not be
required to do so) make or cause such repairs to be made and shall not be
responsible to Tenant for any loss or damage that may accrue to Tenant’s
stock or business by reason thereof. If Landlord makes or
causes such repairs to be made, Tenant agrees that Tenant shall forthwith,
on demand, pay to Landlord the cost thereof as an additional charge
hereunder.
|
7.3.
|
Floor
Load - Heavy Machinery
|
a.
|
Tenant
shall not place a load upon any floor in the Premises exceeding 100 lbs.
(live load) per square foot of Premises Rentable Area. Landlord
reserves the right to prescribe the weight and position of all business
machines and mechanical equipment, including safes, which shall be placed
so as to distribute the weight. Business machines and
mechanical equipment shall be placed and maintained by Tenant at Tenant’s
expense in settings sufficient, in Landlord’s judgment, to absorb and
prevent vibration, noise and annoyance. Tenant shall not move
any safe, heavy machinery, heavy equipment, freight, bulky matter or
fixtures into or out of the Building without Landlord’s prior consent,
which consent may include a requirement to provide insurance in such
amounts as Landlord may deem
reasonable.
|
b.
|
If
any such safe, machinery, equipment, freight, bulky matter or fixtures
requires special handling, Tenant agrees to employ only persons holding a
Master Rigger’s License to do such work, and that all work in connection
therewith shall comply with applicable laws and
regulations. Any such moving shall be at the sole risk and
hazard of Tenant, and Tenant will exonerate, indemnify and save Landlord
harmless against and from any liability, loss, injury, claim or suit
resulting directly or indirectly from such
moving.
|
7.4.
|
Building
Services
|
a.
|
Landlord
shall, on Business Days from 8:00 a.m. to 6:00 p.m. (except on Saturdays
only from 8:00 a.m. to 1:00 p.m.) (“Normal Business Hours”), furnish
heating and cooling as normal seasonal changes and the Massachusetts State
Building Code may require to provide reasonably comfortable space
temperature and ventilation for occupants of the Premises under normal
business operation at an occupancy of not more than one person physically
located in the Premises at any time per 150 square feet of Premises
Rentable Area and an electrical load not exceeding approximately twelve
(12) xxxxx per square foot of Premises Rentable Area. If Tenant
shall require air conditioning, heating or ventilation outside the hours
and days above specified, Landlord shall furnish such service and Tenant
shall pay therefor such charges as may from time to time be in
effect. In the event Tenant introduces into the Premises
personnel or equipment which exceeds the standards set forth above or in
any other way interferes with the Building system’s ability to perform
adequately its proper functions, supplementary systems may, if and as
needed, at Landlord’s option, be provided by Landlord, at Tenant’s
expense. Except in the case of emergency or a scheduled closing
of the Building, Landlord shall provide to Tenant (subject to reasonable
security procedures which may be imposed by Landlord) access to the
Building, an elevator and the loading dock twenty-four hours per day,
seven (7) days per week.
|
b.
|
Landlord
shall also provide:
|
i.
|
Hot
water for lavatory purposes and cold water (at temperatures supplied by
the Town of Xxxxxxx) for drinking, lavatory, and toilet
purposes. If Tenant uses water for any purpose other than as
set forth in the preceding sentence, Landlord may assess a reasonable
charge for the additional water so used, or install a water meter and
thereby measure Tenant’s water consumption for all purposes. In
the latter event, Tenant shall pay the cost of the meter and the cost of
installation thereof and shall keep such meter and installation equipment
in good working order and repair. Tenant agrees to pay for
water consumed, as shown on such meter, together with the sewer charge
based on such meter changes, as and when bills are rendered, and in
default in making such payment Landlord may pay such charges and collect
the same from Tenant as an additional charge hereunder. All
piping and other equipment and facilities required for use of water
outside the Building core will be installed and maintained by Landlord at
Tenant’s sole cost and expense.
|
ii.
|
Cleaning
and janitorial services to the Premises, provided the same are kept in
order by Tenant, in accordance with the cleaning standards set forth in
Exhibit E
attached hereto.
|
iii.
|
Except
in the case of scheduled maintenance, emergencies and scheduled Building
closings, passenger elevator service from the existing passenger elevator
system in common with Landlord and other tenants of the Building shall be
available twenty-four (24) hours a day, seven (7) days a
week.
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7.5.
|
Electricity
|
a.
|
Landlord
shall supply electricity to the Premises to supply a requirement not to
exceed approximately twelve (12) xxxxx per square foot of Premises
Rentable Area and Tenant agrees in its use of the Premises not to exceed
such requirement and that its total connected lighting load will not
exceed the maximum from time to time permitted under applicable
governmental regulations. Except as set forth in Exhibit C,
Landlord shall purchase and install all lamps, tubes, bulbs, starters and
ballasts for all original fluorescent tubes within the
Premises. All other bulbs, tubes and lighting fixtures for the
Premises shall be provided and installed by Landlord at Tenant’s cost and
expense. In order to assure that the foregoing requirements are
not exceeded and to avert possible adverse affect on the Building’s
electric system, Tenant shall not, without Landlord’s prior consent,
connect any fixtures, appliances or equipment to the Building’s electric
distribution system other than standard office equipment including,
without limitation, personal computers, printers, photocopiers and fax
machines.
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b.
|
Landlord
shall install at Landlord’s expense a submeter which shall measure
electric consumption (including electricity consumed in connection with
the operation of the variable-air-volume (VAV) boxes used to heat and cool
the Premises for after normal business hours operation) in the Premises,
to be charged in accordance with Section 7.4.a above; provided, that
Tenant shall not be charged a separate administrative fee with respect to
the submetering. Tenant shall pay as additional rent all
amounts billed by the applicable utility company when due directly to the
utility company. If, for any reason, such utility charges are
not separately metered or submetered at any time during the Term, Tenant
shall pay as additional rent all reasonably allocated charges attributable
to the furnishing of electricity to the
Premises.
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c.
|
In
the computation of Operating Costs, only the cost of electricity supplied
to those portions of the Building other than those intended to be leased
to tenants for their exclusive use and occupancy, or used by the Building
for its own offices, i.e., only those areas which are so-called common
areas, shall be included.
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7.6.
|
Interruption
of Services
|
a.
|
Subject
to the last paragraph of this Section 7.6, Landlord reserves the right to
stop the service of heating, air-conditioning, ventilating, elevator,
plumbing, electricity or other mechanical systems or facilities in the
Building, if necessary by reason of accident or emergency , or for
repairs, alterations, replacements, additions or improvements which, in
the reasonable judgment of Landlord, are desirable or necessary until said
repairs, alterations, replacements, additions or improvements shall have
been completed. The exercise of such right by Landlord shall
not constitute an actual or constructive eviction, in whole or in part, or
relieve Tenant from any of its obligations under this Lease, or impose any
liability upon Landlord or its agents by reason of inconvenience or
annoyance to Tenant, or injury to, or interruption of, Tenant’s business,
or otherwise, or entitle Tenant to any abatement or diminution of
rent. Except in case of emergency repairs, Landlord
will give Tenant reasonable advance notice of any contemplated stoppage of
any such systems or facilities pursuant to the foregoing and will use
diligence to complete any such repairs, alterations, replacements,
additions or improvements promptly. Landlord shall also perform
any such work in a manner designated to minimize interference with
Tenant’s normal business
operations.
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b.
|
If
Landlord shall fail to supply, or be delayed in supplying any service
expressly or impliedly to be supplied under this Lease, or shall be unable
to make, or be delayed in making, any repairs, alterations, additions,
improvements or decorations, or shall be unable to supply, or be delayed
in supplying, any equipment or fixtures, and if such failure, delay or
inability shall not constitute an actual or constructive eviction, in
whole or in part, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord or its agents by reason of
inconvenience or annoyance to Tenant, or injury to, or interruption of,
Tenant’s business, or otherwise, or entitle Tenant to any abatement or
diminution of rent.
|
|
Notwithstanding
the foregoing, if for any reason, other than the actions of Tenant and
events of Force Majeure, Landlord does not provide any or all of the
following services, or does not provide them in the manner described
herein (by temporary service or otherwise): (i) HVAC, (ii) electric
current, and (iii) water, which services are deemed essential to the
conduct of Tenant’s business (hereafter, the “Critical Service(s)”), and
in the manner provided for therein, for more than ten (10) consecutive
business days, then following notice from Tenant to Landlord of such
failure, interruption or reduction, Tenant may xxxxx the monthly
installments of Basic Rent, Escalation Charges and any other sums due
hereunder, on a per diem basis, for the period of interruption,
beginning on the eleventh (11th) business day after such notice and ending
when the Critical Service(s) is/are fully
restored.
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ARTICLE
VIII
REAL
ESTATE TAXES
8.1.
|
Payments
on Account of Real Estate Taxes
|
a.
|
For
the purposes of this Article, the term “Tax Year” shall mean the twelve
(12) month fiscal year in which the Building is first assessed as a
completed building and each twelve (12) month period thereafter
during the Term of this Lease; and the term “Taxes” shall mean real estate
taxes assessed with respect to the Property for any Tax
Year. “Taxes” shall exclude (a) federal, state or local income,
franchise or estate taxes and (b) interest and penalties assessed by
reason of Landlord’s failure to pay such real estate taxes when due
(provided that Tenant makes payment to Landlord of such real estate taxes
when due, otherwise Tenant shall be responsible for that portion of
interest and penalties attributable to its late payment). If
any special taxes or assessment shall be levied against the Building,
Landlord shall elect to pay such special tax or assessment over the
longest period of time allowed by
law.
|
b.
|
In
the event that for any reason, Taxes shall be greater during any Tax Year
than Base Taxes, Tenant shall pay to Landlord, as an Escalation Charge, an
amount equal to:
|
i.
|
The
excess of Taxes over Base Taxes, multiplied
by,
|
ii.
|
The
Escalation Factor, such amount to be apportioned for any fraction of a Tax
Year in which the Commencement Date falls or the Term of this Lease
ends.
|
c.
|
Estimated
payments by Tenant on account of Taxes shall be made monthly and at the
time and in the fashion herein provided for the payment of Basic
Rent. The monthly amount so to be paid to Landlord shall equal
to one-twelfth (1/12) of the amount required to be paid (if any) by Tenant
pursuant to Paragraph b. above for the preceding Tax
Year. Promptly after receipt by Landlord of bills for such
Taxes, Landlord shall advise Tenant of the amount thereof and the
computation of Tenant’s payment on account thereof (it being agreed that
Landlord will provide a copy of such bills at Tenant’s
request). If estimated payments theretofore made by Tenant for
the Tax Year covered by such bills exceed the required payments on account
thereof for such Tax Year, Landlord shall credit the amount of overpayment
against subsequent obligations of Tenant on account of real estate taxes
(or refund such overpayment if the Term of this Lease has ended and Tenant
has no further obligation to Landlord); but if the required payments on
account thereof for such Tax Year are greater than estimated payments
theretofore made on account thereof for such Tax Year, Tenant shall make
payment to Landlord within thirty (30) days after being so advised by
Landlord. Landlord shall have the same rights and remedies for
the nonpayment by Tenant of any payments due on account of such Taxes as
Landlord has hereunder for the failure of Tenant to pay Basic
Rent.
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8.2.
|
Abatement
|
If
Landlord shall receive any tax refund or reimbursement of Taxes or sum in lieu
thereof with respect to any Tax Year, then out of any balance remaining thereof
after deducting Landlord’s expenses reasonably incurred in obtaining such
refund, Landlord shall pay to Tenant, provided there does not then exist a
Default of Tenant, an amount equal to such refund or reimbursement or sum in
lieu thereof (exclusive of interest) multiplied by the Escalation Factor and
adjusted for any partial year; provided, that in no event shall Tenant be
entitled to receive more than the amount of any payments made by Tenant on
account of real estate Tax increases for such Tax Year pursuant to Paragraph b.
of Section 8.1.
8.3.
|
Alternate
Taxes
|
a.
|
If
some method or type of taxation shall replace the current method of
assessment of real estate taxes, or the type thereof, the Tenant agrees
that Tenant shall pay an equitable share of the same computed in a fashion
consistent with the method of computation herein provided, to the end that
Tenant’s share thereof shall be, to the maximum extent practicable,
comparable to that which Tenant would bear under the foregoing
provisions.
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b.
|
If
a tax (other than a Federal or State net income tax) is assessed on
account of the rents or other charges payable by Tenant to Landlord under
this Lease, Tenant agrees to pay the same within ten (10) days after
billing therefor, unless applicable law prohibits the payment of such tax
by Tenant. Landlord shall have the same rights and remedies for
nonpayment by Tenant of any such amounts as Landlord has hereunder for the
failure of Tenant to pay Basic
Rent.
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8.4.
|
Tax
Increment Financing Agreement
|
The
parties acknowledge that the Basic Rent payable hereunder has been calculated
with the assumption that Taxes per Rentable Square Foot of the Premises will be
$3.00, and that there will be a credit under a Tax Increment Financing Agreement
with the Town of Xxxxxxx (“TIF Agreement”) with respect to the Premises of $.65,
for a net of $2.35 included in the Basic Rent. In the event of an
increase in the credit under the TIF with respect to the Premises, the Basic
Rent shall be decreased by the same amount. In the event of a
decrease in the credit under the TIF with respect to the Premises, the Basic
Rent shall be increased by the same amount. For example, if during
the first five (5) years of the term, the TIF credit is $.55 per Rentable Square
Foot of the Premises (rather than $.65), Basic Rent will increase to $28.85 per
Rentable Square Foot, and if the TIF credit is $.75 per Rentable Square Foot of
the Premises, Basic Rent will decrease to $28.65 per Rentable Square
Foot. Tenant acknowledges that in no event shall the obligations of
Tenant hereunder be conditioned upon the existence of TIF
Agreement. Landlord and Tenant shall each use reasonable efforts at
their own expense to satisfy the requirements of the TIF Agreement applicable to
them.
ARTICLE
IX
OPERATING
EXPENSES
9.1.
|
Definitions
|
For the
purposes of this Article, the following terms shall have the following
respective meanings:
Operating
Year: Each calendar year in which any part of the Term of this
Lease shall fall.
Operating
Expenses: The aggregate costs or expenses reasonably incurred
by Landlord with respect to the operation, administration, cleaning, repair,
maintenance and management of the Property including, without limitation, those
items enumerated in Exhibit F annexed
hereto, provided that, if during any portion of the Operating Year for which
Operating Expenses are being computed, less than 95% of the Building Rentable
Area was occupied by tenants, actual operating expenses incurred shall be
reasonably extrapolated by Landlord on an item basis to the estimated
operational expenses that would have been incurred if the Building were 95%
occupied for such Operating Year, and such extrapolated amount shall, for the
purposes hereof, be deemed to be the Operating Expenses for such Operating
Year.
9.2.
|
Tenant’s
Payment
|
a.
|
In
the event that Operating Expenses for any Operating Year shall be greater
than Base Operating Expenses, Tenant shall pay to Landlord, as an
Escalation Charge, an amount equal
to:
|
i.
|
The
excess of the Operating Expenses for such Year over and above Base
Operating Expenses, multiplied by,
|
ii.
|
The
Escalation Factor, such amount to be apportioned for any Operating Year in
which the Commencement Date falls or the Term of this Lease
ends.
|
b.
|
Estimated
payments by Tenant on account of Operating Expenses shall be made monthly
and at the time and in the fashion herein provided for the payment of
Basic Rent. The monthly amount so to be paid to Landlord shall
be sufficient to provide Landlord by the end of each Operating Year a sum
equal to Tenant’s required payments (if any) on account of Operating
Expenses for the preceding Operating Year. Promptly after the
end of each Operating Year, Landlord shall submit to Tenant a reasonably
detailed accounting of Operating Expenses for such Operating Year, and
Landlord shall certify the accuracy thereof. If estimated
payments theretofore made for such Operating Year by Tenant exceed
Tenant’s required payment on account thereof for such Operating Year,
according to such statement, Landlord shall credit the amount of
overpayment against subsequent obligations of Tenant with respect to
Operating Expenses (or refund such overpayment if the Term of this Lease
has ended and Tenant has no further obligation to Landlord); but, if the
required payments on account thereof for such Operating Year are greater
than the estimated payments (if any) theretofore made on account thereof
for such Operating Year, Tenant shall make payment to Landlord within ten
(10) days after being so advised by Landlord. Landlord shall
have the same rights and remedies for the nonpayment by Tenant of any
payments due on account of Operating Expenses as Landlord has hereunder
for the failure of Tenant to pay Basic
Rent.
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c.
|
Tenant
shall have the right, no more often than once in an Operating Year in
which an Escalation Charge is payable hereunder, exercisable, in the case
of the first Operating Year, within one hundred eighty (180) days, and
thereafter within one hundred twenty (120) days, following the delivery to
Tenant of the accounting referred to in Paragraph 9.2(b) and upon
reasonable prior notice to Landlord, to inspect Landlord’s books and
records relating to Operating Expenses and Taxes for the Operating Year
covered by such accounting. Only employees of Tenant, or Tenant’s
certified public accountant or other professional firms retained by
Tenant, may conduct any such inspection, which inspection shall occur at
such place and time (during normal business hours) as Landlord may
reasonably designate. Tenant shall pay for all reasonable
expenses incurred by Landlord in connection with, and relating directly
to, Tenant’s inspection of Landlord’s books and records, provided that if
such audit discloses an overpayment by Tenant of more than five percent
(5%), Landlord shall reimburse Tenant for its reasonable third party costs
incurred in connection with the audit. In any event, Landlord
shall reimburse Tenant the amount of any
overpayment.
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ARTICLE
X
INDEMNITY
AND PUBLIC LIABILITY INSURANCE
10.1.
|
Tenant’s
Indemnity
|
To the
maximum extent this Agreement may be made effective according to law (but
subject to M.G.L. Chapter 186 §15, if applicable), Tenant agrees to indemnify
and save harmless Landlord from and against all claims, actions or proceedings
of whatever nature to the extent arising from any act, omission or negligence of
Tenant or Tenant’s contractors, licensees agents, servants or employees or
arising from any accident, injury or damage whatsoever caused to any person, or
to the property of any person, occurring after the date of this Lease until the
end of the Term of this Lease and thereafter, so long as Tenant is in occupancy
of any part of the Premises, in or about the Premises, or arising from any
accident, injury or damage occurring outside of the Premises but on the
Property, where such accident, damage or injury results or is claimed to have
resulted from an act or omission on the part of Tenant or Tenant’s agents or
employees or independent contractors. This indemnity and hold
harmless agreement shall include indemnity against all reasonable costs,
expenses and liabilities incurred in or in connection with any such claim,
action or proceeding brought thereon, and the defense thereof.
Landlord
may make claims for indemnification hereunder by giving written notice thereof
to Tenant. If indemnification is sought for a claim or liability
asserted by a third party, Landlord shall endeavor to give written notice
thereof to Tenant promptly after it receives notice of the claim or liability
being asserted, but the failure to do so shall not relieve Tenant from any
liability. Such notice shall provide a copy of any written document which may be
the basis for the claim for indemnification. Tenant shall be entitled
to direct the defense of such claim with counsel selected by it (subject to the
consent of Landlord, which consent shall not be unreasonably withheld) as long
as Tenant is conducting a good faith and diligent defense. Landlord
shall at all times have the right to fully participate in the defense of a third
party claim or liability at its own expense directly or through counsel;
provided, however, that if the named parties to the action or proceeding include
both Tenant and Landlord, and Landlord is advised that representation of both
parties by the same counsel would be inappropriate under applicable standards of
professional conduct, Landlord may engage separate counsel at the expense of
Tenant. If such good faith and diligent defense is not being or
ceases to be conducted by Tenant, Landlord shall have the right, at the expense
of Tenant, to undertake the defense of such claim or liability (with counsel
selected by Landlord), and to compromise or settle it, exercising reasonable
business judgment. If the third party claim or liability is one that
by its nature cannot be defended solely by Tenant, then Landlord shall make
available such information and assistance as Tenant may reasonably request and
shall cooperate with Tenant in such defense, at the expense of
Tenant. In the event that Landlord is indemnified by Tenant, and
Landlord actually receives insurance proceeds with respect to the same matter
for which Landlord was indemnified, then Landlord shall promptly remit said
insurance proceeds to Tenant (up to the amount of the indemnification payment
actually received by Landlord from Tenant).
10.2.
|
Public
Liability Insurance
|
Tenant
agrees to maintain in full force from the date upon which Tenant first enters
the Premises for any reason, throughout the Term of this Lease, and thereafter
so long as Tenant is in occupancy of any part of the Premises, a policy of
general liability and property damage insurance under which Landlord (and such
other persons as are in privity of estate with Landlord as may be set out in
notice from Landlord to Tenant from time to time) and Tenant are named as
insureds, and under which the insurer agrees to indemnify and hold Landlord, and
those in privity of estate with Landlord, harmless from and against all cost,
expense and/or liability arising out of or based upon any and all claims,
accidents, injuries and damages set forth in Section 10.1. Each such
policy shall be non-cancelable and non-amendable with respect to Landlord and
Landlord’s said designees without thirty (30) days prior notice to Landlord and
shall be in at least the amounts of the Public Liability Insurance specified in
Section 1.2, and a duplicate original or certificate thereof evidencing broad
form contractual liability, independent contractor’s hazard and completed
operation coverage and waiver of subrogation shall be delivered to
Landlord.
10.3.
|
Tenant’s
Risk
|
To the
maximum extent this Agreement may be made effective according to law, Tenant
agrees to use and occupy the Premises and to use such other portions of the
Building as Tenant is herein given the right to use at Tenant’s own risk; and
Landlord shall have no responsibility or liability for any loss of or damage to
Tenant’s Removable Property. The provisions of this Section shall be
applicable from and after the execution of this Lease and until the end of the
Term of this Lease, and during such further period as Tenant may use or be in
occupancy of any part of the Premises or of the Building.
10.4.
|
Injury
Caused by Third Parties
|
To the
maximum extent this Agreement may be made effective according to law, Tenant
agrees that Landlord shall not be responsible or liable to Tenant, or to those
claiming by, through or under Tenant, for any loss or damage that may be
occasioned by or through the acts or omissions of persons occupying adjoining
premises or any part of the Premises adjacent to or connecting with the Premises
or any part of the Property or otherwise.
10.5.
|
Landlord’s
Insurance
|
Landlord
shall take out and maintain throughout the Term of this Lease commercial general
liability insurance for the Building and all risk replacement cost fire and
casualty insurance in amounts customarily carried by landlords with respect to
similar buildings in the area with such policy limits as Landlord may reasonably
consider appropriate. Upon request by Tenant, Landlord shall provide
a certificate evidencing the foregoing insurance.
10.6.
|
Waiver
of Subrogation
|
Any
insurance carried by either party with respect to the Property or property
therein or occurrences thereon shall include a clause or endorsement denying to
the insurer rights of subrogation against the other party to the extent rights
have been waived by the insured before occurrence of injury or
loss. Each party, notwithstanding any provisions of this Lease to the
contrary, hereby waives any rights of recovery against the other for injury or
loss due to hazards covered by such insurance to the extent of the
indemnification received thereunder.
10.7.
|
Landlord
Indemnity
|
Landlord
shall defend with counsel reasonably approved by Tenant (Tenant hereby approving
WilmerHale LLP as such counsel), all actions against Tenant, any partner,
trustee, stockholder, officer, director, employee or beneficiary of Tenant
(herein, "Indemnified Parties") with respect to, and shall pay, protect,
indemnify and save harmless, to the extent permitted by law, all Indemnified
Parties from and against, any and all liabilities, losses, damages, costs,
expenses (including reasonable attorneys' fees and expenses), causes of action,
suits, claims, demands or judgments of any nature arising from (a) injury to or
death of any person, or damage to or loss of property, on or about the Premises
or on adjoining sidewalks, streets or ways, arising from the negligence or
willful misconduct of Landlord or its employees, contractors or agents, except
with respect to an Indemnified Party, to the extent caused by its negligence or
willful misconduct, or (b) a breach of the representations set forth in Section
14.27.
ARTICLE
XI
LANDLORD’S
ACCESS TO PREMISES
11.1.
|
Landlord’s
Rights
|
Landlord
shall have the right to enter the Premises upon twelve (12) hours prior notice
(except in case of emergency) at all reasonable hours for the purpose of
inspecting or making repairs to the same, and Landlord shall also have the
right, upon at least six (6) hours prior notice to Tenant, to make access
available at all reasonable hours to prospective or existing mortgagees or
purchasers of any part of the Property. Landlord shall have access to
the Premises to show the same to prospective tenants only during the last twelve
(12) months of the Term upon six (6) hours prior notice to Tenant.
ARTICLE
XII
FIRE,
EMINENT DOMAIN, ETC.
12.1.
|
Abatement
of Rent
|
If the
Premises are damaged by fire or other casualty in the Building, Basic Rent and
Escalation Charges payable by Tenant shall xxxxx proportionately for the period
in which, by reason of such damage, there is substantial interference with
Tenant’s use of the Premises, having regard to the extent to which Tenant may be
required to discontinue Tenant’s use of all or a portion of the Premises, but
such abatement or reduction shall end if and when Landlord shall have
substantially restored the Premises to the condition in which they were before
such damage pursuant to Section 12.3 hereof. If the Premises are
affected by any exercise of the power of eminent domain, Basic Rent and
Escalation Charges payable by Tenant shall be justly and equitably abated and
reduced according to the nature and extent of the loss of use thereof suffered
by Tenant.
12.2.
|
Right
of Termination
|
If the
Premises or the Property are substantially damaged by fire or casualty (the term
“substantially damaged” meaning damage of such a character that the same cannot,
in ordinary course, reasonably be expected to be repaired within twelve (12)
months from the time that repair work would commence, as evidenced by an
estimate prepared by a reputable, independent contractor), or, if as a result of
any exercise of the right of eminent domain more than thirty percent (30%) of
the Building or the Property is taken or a material portion of the parking is
taken or there is a material, adverse impact on access to the Property
(collectively, a “Taking”), then either party shall have the right to terminate
this Lease (even if Landlord’s entire interest in the Premises may have been
divested) by giving to the other party notice of such party’s election so to do
within sixty (60) days after the occurrence of such casualty or the effective
date of such Taking, whereupon this Lease shall terminate thirty (30) days after
the date of such notice with the same force and effect as if such date were the
date originally established as the expiration date hereof. It shall
be a condition to Landlord’s exercise of its termination right under this
Section 12.2 that Landlord terminate the leases of all tenants of the Building
which are similarly affected by such fire, casualty or taking.
12.3.
|
Restoration
|
If this
Lease shall not be terminated pursuant to Section 12.2, Landlord shall
thereafter use due diligence to restore the Premises to proper condition for
Tenant’s use and occupation, provided that Landlord’s obligation shall be
limited to the amount of insurance proceeds available therefor (including the
applicable deductible, which shall constitute an Operating Expense
hereunder). If, for any reason (including, without limitation,
insufficiency or unavailability of insurance proceeds), such restoration shall
not be substantially completed within twelve (12) months from the time that
repair work would commence in the case of damage by fire or casualty or from the
effective date of the Taking, as applicable (which twelve (12) month period may
be extended for such periods of time as Landlord is prevented from proceeding
with or completing such restoration for any cause beyond Landlord's reasonable
control, but in no event for more than an additional three (3) months), Tenant
shall have the right to terminate this Lease by giving notice to Landlord
thereof within thirty (30) days after the expiration of such period (as so
extended). Upon the giving of such notice, this Lease shall cease and
come to an end without further liability or obligation on the part of either
party unless, within such thirty (30) day period, Landlord substantially
completes such restoration. Such right of termination shall be
Tenant’s sole and exclusive remedy at law or in equity for Landlord’s failure so
to complete such restoration.
12.4.
|
Award
|
Landlord
shall have and hereby reserves and excepts, and Tenant hereby grants and assigns
to Landlord, all rights to recover for damage to the Property and the leasehold
interest hereby created, and to compensation accrued or hereafter to accrue by
reason of such taking, damage or destruction, and by way of confirming the
foregoing, Tenant hereby grants and assigns, and covenants with Landlord to
grant and assign to Landlord, all rights to such damages or
compensation. Nothing contained herein shall be construed to prevent
Tenant from prosecuting in any condemnation proceedings a claim for the value of
any of Tenant’s Removable Property installed in the Premises by Tenant at
Tenant’s expense and for relocation expenses, provided that such action shall
not affect the amount of compensation otherwise recoverable by Landlord from the
taking authority.
12.5.
|
Temporary
Taking
|
In the
event of a taking of the Premises or any part thereof for temporary use, (i)
this Lease shall be and remain unaffected thereby and Basic Rent shall not
xxxxx, and (ii) Tenant shall be entitled to receive for itself such portion or
portions of any award made for such use with respect to the period of the taking
which is within the Term; provided that if such taking shall remain in force at
the expiration or earlier termination of this Lease, Tenant shall then pay to
Landlord a sum equal to the reasonable cost of performing Tenant’s obligations
under Section 14.20 with respect to the surrender of the Premises and, upon such
payment, shall be excused from such obligations.
ARTICLE
XIII
DEFAULT
13.1.
|
Default
|
If at any
time subsequent to the date of this Lease any one or more of the following
events (each of which being agreed to constitute substantial defaults hereunder
and being referred to herein as a “Default of Tenant”) shall
happen:
a.
|
Tenant
shall fail to pay the Basic Rent, Escalation Charges or other charges
hereunder when due and such failure shall continue for five (5) Business
Days after notice to Tenant from Landlord;
or
|
b.
|
Tenant
shall neglect or fail to perform or observe any other covenant herein
contained on Tenant’s part to be performed or observed and Tenant shall
fail to remedy the same within thirty (30) days after notice to Tenant
specifying such neglect or failure, or if such failure is of such a nature
that Tenant cannot reasonably remedy the same within such thirty (30) day
period, Tenant shall fail to commence promptly to remedy the same and to
prosecute such remedy to completion with diligence and continuity but in
no event shall such period exceed ninety (90) days;
or
|
c.
|
Tenant’s
leasehold interest in the Premises shall be taken on execution or by other
process of law directed against Tenant;
or
|
d.
|
Tenant
shall make an assignment for the benefit of creditors or shall file a
voluntary petition in bankruptcy or shall be adjudicated bankrupt or
insolvent, or shall file any petition or answer seeking any
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief for itself under any present or future
Federal, State or other statute, law or regulation for the relief of
debtors, or shall seek or consent to or acquiesce in the appointment of
any trustee, receiver or liquidator of Tenant or of all or any substantial
part of its properties, or shall admit in writing its inability to pay its
debts generally as they become due;
or
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e.
|
A
petition shall be filed against Tenant in bankruptcy or under any other
law seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under any present or future
Federal, State or other statute, law or regulation and shall remain
undismissed or unstayed for an aggregate of sixty (60) days (whether or
not consecutive), or if any debtor in possession (whether or not Tenant)
trustee, receiver or liquidator of Tenant or of all or any substantial
part of its properties or of the Premises shall be appointed without the
consent or acquiescence of Tenant and such appointment shall remain
unvacated or unstayed for an aggregate of sixty (60) days (whether or not
consecutive);
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f.
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Or
if Tenant dissolves or is dissolved or liquidated or adopts any plan or
commences any proceeding, the result of which is intended to include
dissolution or liquidation;
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g.
|
Then
in any such case:
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i.
|
If
such Default of Tenant shall occur before the Commencement Date, this
Lease shall ipso facto, and
without further act on the part of Landlord, terminate;
and
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ii.
|
If
such Default of Tenant shall occur after the Commencement Date, Landlord
may terminate this Lease by notice to Tenant, specifying a date not less
than ten (10) days after the giving of such notice on which this Lease
shall terminate and this Lease shall come to an end on the date specified
therein as fully and completely as if such date were the date herein
originally fixed for the expiration of the Term of this Lease (Tenant
hereby waiving any rights of redemption under M.G.L. c. 186, or
otherwise), and Tenant will then quit and surrender the Premises to
Landlord, but Tenant shall remain liable as hereinafter
provided.
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Nothing
contained in this Lease shall, however, limit or prejudice the right of Landlord
to prove for and obtain in proceedings under any federal or state law relating
to bankruptcy or insolvency or reorganization or arrangement, an amount equal to
the maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, the damages are to be proved, whether or
not the amount be greater than the amount of the loss or damages referred to
above.
13.2.
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Remedies
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a.
|
If
this Lease shall have been terminated as provided in this Article, or if
any execution or attachment shall be issued against Tenant or any of
Tenant’s property whereupon the Premises shall be taken or occupied by
someone other than Tenant, then Landlord may, without notice, re-enter the
Premises, either by summary proceedings or otherwise, and remove and
dispossess Tenant and all other persons and any and all property from the
same, as if this Lease had not been made, and Tenant hereby waives the
service of notice of institution of legal proceedings to that end in the
event that Tenant has vacated the
Premises.
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b.
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In
the event of any termination, Tenant shall pay the Basic Rent, Escalation
Charges and other sums payable hereunder up to the time of such
termination, and thereafter Tenant, until the end of what would have been
the Term of this Lease in the absence of such termination, and whether or
not the Premises shall have been re-let, shall be liable to Landlord for,
and shall pay to Landlord, as current damages, the Basic Rent, Escalation
Charges and other sums which would be payable hereunder if such
termination had not occurred, less the net proceeds, if any, of any
re-letting of the Premises, after deducting all expenses in connection
with such re-letting, including, without limitation, all repossession
costs, brokerage commissions, legal expenses, attorneys’ fees,
advertising, expenses of employees, alteration costs and expenses of
preparation for such re-letting. Tenant shall pay such current
damages to Landlord monthly on the days which the Basic Rent would have
been payable hereunder if this Lease had not been
terminated.
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c.
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At
any time after such termination, whether or not Landlord shall have
collected any such current damages, Landlord may demand, as liquidated
final damages and in lieu of all such current damages beyond the date of
such demand, and Tenant shall pay to Landlord an amount equal to the
excess, if any, of the Basic Rent, Escalation Charges and other sums as
hereinbefore provided which would be payable hereunder from the date of
such demand (assuming that, for the purposes of this paragraph, annual
payments by Tenant on account of Taxes and Operating Expenses would be the
same as the payments required for the immediately preceding Operating or
Tax Year) for what remained, over the Term of this Lease if the same
remained in effect, over the then fair net rental value of the Premises
for the same period.
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d.
|
In
case of any Default by Tenant, re-entry, expiration and dispossession by
summary proceedings or otherwise, Landlord
may:
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i.
|
Re-let
the Premises or any part or parts thereof, either in the name of Landlord
or otherwise, for a term or terms which may at Landlord’s option be equal
to or less than or exceed the period which would otherwise have
constituted the balance of the Term of this Lease and may grant
concessions or free rent to the extent that Landlord considers advisable
and necessary to re-let the same;
and
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ii.
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May
make such reasonable alterations, repairs and decorations in the Premises
as Landlord in its sole judgment considers advisable and necessary for the
purpose of re-letting the Premises; and the making of such alterations,
repairs and decorations shall not operate or be construed to release
Tenant from liability hereunder as aforesaid. Landlord shall in
no event be liable in any way whatsoever for failure to re-let the
Premises, or, in the event that the Premises are re-let, for failure to
collect the rent under such re-letting. Tenant hereby expressly
waives any and all rights of redemption granted by or under any present or
future laws in the event of Tenant being evicted or dispossessed, or in
the event of Landlord obtaining possession of the Premises, by reason of
the violation by Tenant of any of the covenants and conditions of this
Lease.
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e.
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If
a Guarantor of this Lease is named in Section 1.2, the happening of any of
the events described in of this Section 13.1(d) or (e) with respect to the
Guarantor shall constitute a Default of Tenant
hereunder.
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f.
|
The
specified remedies to which Landlord may resort hereunder are not intended
to be exclusive of any remedies or means of redress to which Landlord may
at any time be entitled lawfully, and Landlord may invoke any remedy
(including the remedy of specific performance) allowed at law or in equity
as if specific remedies were not herein provided
for.
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g.
|
All
costs and expenses incurred by or on behalf of Landlord (including,
without limitation, attorneys’ fees and expenses) in enforcing its rights
hereunder or occasioned by any Default of Tenant shall be paid by
Tenant.
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h.
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Nothing
contained in this Lease shall limit or prejudice the right of Landlord to
prove for and obtain in proceedings for bankruptcy or insolvency by reason
of the termination of this Lease, an amount equal to the maximum allowed
by any statute or rule of law in effect at the time when, and governing
the proceedings in which, the damages are to be proved, whether or not the
amount be greater, equal to or less than the amount of the loss or damages
referred to above.
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ARTICLE
XIV
MISCELLANEOUS
PROVISIONS AND
TENANT’S
ADDITIONAL COVENANTS
14.1.
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Extra
Hazardous Use
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Tenant
covenants and agrees that Tenant will not do or permit anything to be done in or
upon the Premises, or bring in anything or keep anything therein, which shall
increase the rate of property or liability insurance on the Premises or of the
Building above the standard rate applicable to premises occupied for Permitted
Uses; and Tenant further agrees that, in the event that Tenant shall do any of
the foregoing, Tenant will promptly pay to Landlord, on demand, any such
increase resulting therefrom, which shall be due and payable as an additional
charge hereunder.
14.2.
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Waiver
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a.
|
Failure
on the part of Landlord or Tenant to complain of any action or non-action
on the part of the other, no matter how long the same may continue, shall
never be a waiver by Tenant or Landlord, respectively, of any of the
other’s rights hereunder. Further, no waiver at any time of any
of the provisions hereof by Landlord or Tenant shall be construed as a
waiver of any of the other provisions hereof, and a waiver at any time of
any of the provisions hereof shall not be construed as a waiver at any
subsequent time of the same provisions. The consent or approval
of Landlord or Tenant to or of any action by the other requiring such
consent or approval shall not be construed to waive or render unnecessary
Landlord’s or Tenant’s consent or approval to or of any subsequent similar
act by the other.
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b.
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No
payment by Tenant, or acceptance by Landlord, of a lesser amount than
shall be due from Tenant to Landlord shall be treated otherwise than as a
payment on account. The acceptance by Landlord of a check for a
lesser amount with an endorsement or statement thereon, or upon any letter
accompanying such a check, that such lesser amount is payment in full,
shall be given no effect, and Landlord may accept such check without
prejudice to any other rights or remedies which Landlord may have against
Tenant.
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14.3.
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Covenant
of Quiet Enjoyment
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Tenant,
subject to the terms and provisions of this Lease, on payment of the Basic Rent
and Escalation Charges and other charges hereunder and observing, keeping and
performing all of the other terms and provisions of this Lease on Tenant’s part
to be observed, kept and performed, shall lawfully, peaceably and quietly have,
hold, occupy and enjoy the Premises during the term hereof, without hindrance or
ejection by any persons lawfully claiming under Landlord to have title to the
Premises superior to Tenant; the foregoing covenant of quiet enjoyment is in
lieu of any other covenant, express or implied.
14.4.
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Landlord’s
Liability
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a.
|
No
owner of the Property shall be liable under this Lease except for breaches
of Landlord’s obligations occurring while owner of the
Property. The obligations of Landlord shall be binding upon the
assets of Landlord which comprise the Property but not upon other assets
of Landlord. No individual partner, trustee, stockholder,
officer, director, employee, member or beneficiary of Landlord shall be
personally liable under this Lease and Tenant shall look solely to
Landlord’s interest in the Property in pursuit of its remedies upon an
event of default hereunder, and the general assets of Landlord and of the
individual partners, trustees, stockholders, officers, employees, members
or beneficiaries of Landlord shall not be subject to levy, execution or
other enforcement procedure for the satisfaction of the remedies of
Tenant.
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b.
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Except
as otherwise expressly provided in Section 7.6(b), with respect to any
services or utilities to be furnished by Landlord to Tenant, Landlord
shall in no event be liable for failure to furnish the same when prevented
from doing so by strike, lockout, breakdown, accident, order or regulation
of or by any governmental authority, or failure of supply, or inability by
the exercise of reasonable diligence to obtain supplies, parts or
employees necessary to furnish such services, or because of war or other
emergency, or for any cause beyond Landlord’s reasonable control, or for
cause due to any act or neglect of Tenant or Tenant’s servants, agents,
employees, licensees or any person claiming by, through or under
Tenant.
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c.
|
In
no event shall Landlord ever be liable to Tenant for any indirect or
consequential damages suffered by Tenant from whatever
cause.
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14.5.
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Notice
to Mortgagee
|
After
receiving notice from any person, firm or other entity that it holds a mortgage
which includes the Premises as part of the mortgaged premises, no notice from
Tenant to Landlord shall be effective unless and until a copy of the same is
given to such holder (provided Tenant shall have been furnished with the name
and address of such holder), and the curing of any of Landlord’s defaults by
such holder shall be treated as performance by Landlord.
14.6.
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Assignment
of Rents and Transfer of Titles
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a.
|
With
reference to any assignment by Landlord of Landlord’s interest in this
Lease, or the rents payable hereunder, conditional in nature or otherwise,
which assignment is made to the holder of a mortgage on property which
includes the Premises, Tenant agrees that the execution thereof by
Landlord, and the acceptance thereof by the holder of such mortgage shall
never be treated as an assumption by such holder of any of the obligations
of Landlord hereunder unless such holder shall, by notice sent to Tenant,
specifically otherwise elect and that, except as aforesaid, such holder
shall be treated as having assumed Landlord’s obligations hereunder only
upon foreclosure of such holder’s mortgage and the taking of possession of
the Premises.
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b.
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In
no event shall the acquisition of title to the Property by a purchaser
which, simultaneously therewith, leases the entire Property back to the
seller thereof be treated as an assumption by operation of law or
otherwise, of Landlord’s obligations hereunder, but Tenant shall look
solely to such seller-lessee, and its successors from time to time in
title, for performance of Landlord’s obligations hereunder. In
any event, this Lease shall be subject and subordinate to the lease
between such purchaser-lessor and seller-lessee; provided that Landlord
shall obtain a commercially reasonable subordination, non-disturbance and
attornment agreement with respect to any purchaser-lessor of the
Property. For all purposes, such seller-lessee, and its
successors in title, shall be the Landlord hereunder unless and until
Landlord’s position shall have been assumed by such
purchaser-lessor.
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c.
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Tenant
hereby agrees that, except as provided in paragraph b. of this Section, in
the event of any transfer of title to the Property by Landlord, Landlord
shall thereafter be entirely freed and relieved from the performance and
observance of all covenants and obligations
hereunder.
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d.
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Tenant
hereby agrees not to look to the mortgagee, as mortgagee, mortgagee in
possession, or successor in title to the property, for accountability for
any security deposit required by the Landlord hereunder, unless said sums
have actually been received by said mortgagee as security for the tenant’s
performance of this Lease.
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e.
|
Tenant
shall not pay rent more than one month in
advance.
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14.7.
|
Rules
and Regulations
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Tenant
shall abide by rules and regulations set forth on Exhibit G hereto and
any other rules and regulations established by Landlord from time to time, it
being agreed that such rules and regulations will be established and applied by
Landlord in a non-discriminatory fashion, such that all rules and regulations
shall be generally applicable to other tenants, of similar nature to the Tenant
named herein, of the Building. Landlord agrees to use reasonable
efforts to insure that any such rules and regulations are uniformly enforced,
but Landlord shall not be liable to Tenant for violation of the same by any
other tenant or occupant of the Building, or persons having business with
them.
14.8.
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Additional
Charges
|
If Tenant
shall fail to pay when due any sums under this Lease designated as an additional
charge, Landlord shall have the same rights and remedies as Landlord has
hereunder for failure to pay Basic Rent.
14.9.
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Invalidity
of Particular Provisions
|
If any
term or provision of this Lease, or the application thereof to any person or
circumstance shall, to the extent, be invalid or unenforceable, the remainder of
this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Lease shall
be valid and be enforced to the fullest extent permitted by law.
14.10.
|
Provisions
Binding, Etc.
|
Except as
herein otherwise provided, the terms hereof shall be binding upon and shall
inure to the benefit of the successors and assigns, respectively, of Landlord
and Tenant and, if Tenant shall be an individual, upon and to his heirs,
executors, administrators, successors and assigns. Each term and each
provision of this Lease to be performed by Tenant shall be construed to be both
a covenant and a condition. The reference contained to successors and
assigns of Tenant is not intended to constitute a consent to assignment by
Tenant, but has reference only to those instances in which Landlord may later
give consent to a particular assignment as required by those provisions of
Article VI hereof.
14.11.
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Recording
|
Tenant
agrees not to record this Lease, but each party hereto agrees, on the request of
the other, to execute a so-called Notice of Lease in form recordable and
complying with applicable law and reasonably satisfactory to Landlord’s
attorneys. In no event shall such document set forth the rent or
other charges payable by Tenant under this Lease; and any such document shall
expressly state that it is executed pursuant to the provisions contained in this
Lease, and is not intended to vary the terms and conditions of this
Lease. Upon termination of this Lease, Tenant shall execute an
instrument in recordable form acknowledging the date of
termination.
14.12.
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Notices
|
Whenever,
by the terms of this Lease, notices shall or may be given either to Landlord or
to Tenant, such notice shall be in writing and addressed as
follows:
If
Intended for Landlord:
Address
to Landlord at Landlord’s Original Address (or to such other address or
addresses as may from time to time hereafter be designated by Landlord by like
notice).
If
Intended for Tenant:
Address
to Tenant at Tenant’s Original Address (or to such other address or addresses as
may from time to time hereafter be designated by Landlord by like
notice).
All such
notices so addressed shall be effective (i) when delivered, if hand delivered,
or (ii) one (1) day after deposit with a recognized overnight delivery service
or (iii) three (3) days after deposit with the U.S. Postal Service if mailed by
registered or certified mail, postage prepaid, return receipt
requested.
14.13.
|
When
Lease Becomes Binding
|
The
submission of this document for examination and negotiation does not constitute
an offer to lease, or a reservation of, or option for, the Premises, and this
document shall become effective and binding only upon the execution and delivery
hereof by both Landlord and Tenant. All negotiations, considerations,
representations and understandings between Landlord and Tenant are incorporated
herein and this Lease expressly supersedes any proposals or other written
documents relating hereto. This Lease may be modified or altered only
by written agreement between Landlord and Tenant, and no act or omission of any
employee or agent of Landlord shall alter, change or modify any of the
provisions hereof.
14.14.
|
Paragraph
Headings
|
The
paragraph headings throughout this instrument are for convenience and reference
only, and the words contained therein shall in no way be held to explain,
modify, amplify or aid in the interpretation, construction or meaning of the
provisions of this Lease.
14.15.
|
Rights
of Mortgagee; Park Covenants
|
a.
|
This
Lease shall be subject and subordinate to any mortgage from time to time
encumbering the Property, whether executed and delivered before or
subsequent to the date of this Lease, in accordance with the provisions of
this clause (a). Tenant shall execute such instruments of
subordination in confirmation of the foregoing agreement as such holder
may request, provided that Landlord shall obtain a commercially reasonable
subordination, non-disturbance and attornment agreement with respect to
this Lease from any mortgagee of the Property. In the event
that any mortgagee or its respective successor in title shall succeed to
the interest of Landlord, then this Lease shall continue in full force and
effect and Tenant shall and does hereby agree to attorn to such mortgagee
or successor and to recognize such mortgagee or successor as its
Landlord.
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b.
|
This
Lease is subordinate to that certain Declaration of Covenants, Easements
and Restrictions recorded in the Norfolk Registry of Deeds on February 10,
2005 in Book 22094, Page 439, which Landlord may hereafter amend from time
to time without the consent of Tenant, provided such amendment does not
materially derogate from any rights of Tenant
hereunder.
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14.16.
|
Status
Report
|
Tenant
shall from time to time, upon not less than fifteen (15) days prior written
request by Landlord, execute, acknowledge and deliver to the Landlord a
statement in writing certifying that this Lease is unmodified and in full force
and effect and that there are no uncured defaults of Landlord or Tenant under
this Lease, that Tenant has no defenses, offsets or counterclaims against its
obligations to pay the Base Rent, Escalation Charges and other charges hereunder
and to perform its other covenants under this Lease and that there are no
uncured defaults of the Landlord or Tenant under this Lease (or, if there have
been any modifications that the same is in full force and effect as modified and
stating the modifications and, if there are any defenses, offsets,
counterclaims, or defaults, setting them forth in reasonable detail), and the
dates to which the Base Rent, Escalation Charges and other charges hereunder
have been paid. Any such statement delivered pursuant to this Section
14.16 may be relied upon by a prospective purchaser or mortgagee of the Premises
or any prospective assignee of any mortgagee of the Premises. Failure
of Tenant to respond to such request within such time shall be deemed an
acknowledgment by Tenant that the facts recited in such request are
correct. Landlord shall provide to Tenant such statements from
Landlord upon request of Tenant in accordance with the terms of this Section
14.16.
14.17.
|
Security
Deposit
|
a.
|
Form of Security
Deposit. Tenant shall deliver to Landlord, concurrent
with Tenant’s execution of this Lease, the Security Deposit amount
identified in Section 1.2 above, in the form of (i) cash, or (ii) an
unconditional, clean, irrevocable, fully assignable standby letter of
credit (the “LOC”), in the form attached hereto as Exhibit H ((i)
or (ii) shall be referred to herein as the “Security
Deposit”). If the Security Deposit is in the form of a letter
of credit, the LOC shall be issued by a commercial bank having assets in
excess of $100,000,000.00, and which LOC may be presented for payment in a
location in Boston, Massachusetts. On thirty (30) days notice,
Landlord may require that the LOC be replaced with an LOC issued by a
different institution if the then issuing bank’s assets fall below
$100,000,000.00 in value, and failing such replacement, Landlord may draw
upon the LOC and hold the proceeds as described below. The LOC
shall have a term of not less than one (1) year, shall provide for
automatic renewals, and at the end of the Term shall have an expiration
date not earlier than sixty (60) days after the scheduled expiration date
of the Term. Tenant shall pay all expenses, points and/or fees
associated with obtaining the LOC and with any transfer thereof, and any
such expenses or fees shall constitute additional rent payable by Tenant
hereunder. At Landlord’s election from time to time, the LOC shall name
Landlord and its mortgagee as
co-beneficiaries.
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b.
|
Landlord’s Holding of
the Security Deposit. Landlord shall hold the Security
Deposit throughout the term of this Lease as security for the performance
by Tenant of all obligations on the part of Tenant
hereunder. In the event that the Security Deposit is in the
form of cash (or in the event Landlord draws upon the LOC and holds the
amount in lieu of applying said amount drawn), Landlord shall hold the
same, in a separate interest bearing account (provided that Landlord shall
not be obligated to deposit the Security Deposit in anything other than a
standard money market account and shall have no liability to Tenant with
respect to the terms or interest rate for such account), and any interest
earned thereon shall be deemed to be a part of the Security
Deposit. Landlord shall have the right from time to time
without prejudice to any other remedy Landlord may have on account
thereof, to apply such deposit, or any part thereof (or draw upon all or
any part of the LOC), to Landlord’s damages arising from any Default on
the part of Tenant. If there is then existing no Default of
Tenant, Landlord shall return the Security Deposit, less so much thereof
as shall have theretofore been applied in accordance with the terms of
this Section 14.17 (and less such amount as may have been returned to
Tenant in accordance with the provisions of subparagraphs (d) and (e)
below), to Tenant on the expiration or earlier termination of the Term of
this Lease and surrender of possession of the Premises by Tenant to
Landlord at such time. The use, application or retention of the
Security Deposit, or any portion thereof, by Landlord shall not prevent
Landlord from exercising any other right or remedy provided by this Lease
or by law. The parties agree that Landlord shall not first be
required to proceed against the Security Deposit and the Security Deposit
shall not operate as a limitation on any recovery to which Landlord may
otherwise be entitled. If any portion of the Security Deposit
is applied (or drawn upon in the case of the LOC), Tenant shall, within
ten (10) days after written demand therefor, reinstate the Security
Deposit to the amount then required under this Lease, and Tenant’s failure
to do so shall be a Default under this
Lease.
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c.
|
Transfer of the
Security Deposit. If Landlord conveys Landlord’s
interest under this Lease, the Security Deposit, or any part thereof not
previously applied, shall be turned over by Landlord to Landlord’s
grantee, and, if so turned over, Tenant agrees to look solely to such
grantee for proper application of the deposit in accordance with the terms
of this Section 14.17, and the return thereof in accordance
herewith. This provision shall also apply to subsequent
grantees and transferees. Tenant shall execute any documents
reasonably necessary to effectuate such a transfer. The holder of a
mortgage shall not be responsible to Tenant for the return or application
of any such deposit, whether or not it succeeds to the position of
Landlord hereunder, unless such deposit shall have been received in hand
by such holder.
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d.
|
One Time Reduction of
Security Deposit. On the date that is the fourth (4th)
anniversary of the Commencement Date, the Security Deposit shall be
reduced by an amount equal to one (1) months’ Basic Rent; provided that on
such date (i) the Lease is in full force and effect and Tenant is not in
default hereunder, (ii) Landlord has not previously given a notice of
default under this Lease, and (iii) Tenant’s “Current Ratio” (as described
below) is greater than or equal to the “Threshold” (hereinafter
defined). If on such date the Security Deposit shall not be
reduced because one or more of the conditions set forth in clauses (i),
(ii) or (iii) is not satisfied as of such date, Tenant shall not, subject
to subparagraph (c) below, be entitled to a reduction in the Security
Deposit. If the Security Deposit is reduced pursuant to the
foregoing provisions, Landlord shall (x) if the Security Deposit is in the
form of cash, return the amount of such reduction to Tenant on or before
the date that is thirty (30) days after Tenant’s written demand for such
sums, or (y) if the Security Deposit is in the form of the LOC, cooperate
with Tenant to have the LOC amended or reissued to reflect such
reduction.
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e.
|
Increases and
Decreases in the Security Deposit Due to Finances of
Tenant. In the event that Tenant’s “Current Ratio” (i.e.
current assets over current liabilities) as set forth in Tenant’s
quarterly filings with the Securities and Exchange Commission (provided,
that if Tenant is no longer a public company, then the Current Ratio shall
be as set forth in Tenant’s certified financial reports, which shall be
reasonably acceptable to Landlord) decreases below 2.50 (the “Threshold”)
at any time during the Term of this Lease, then Tenant shall increase the
Security Deposit by an amount equal to one (1) months’ Basic Rent (at the
rental rate then payable under this Lease) for each “Milestone” below
which Tenant’s Current Ratio falls. The “Milestones” are 2.50,
2.00, 1.50, 1.00, 0.50, and 0.00. Notwithstanding the
foregoing, in no event shall Tenant be required to increase the Security
Deposit to an amount greater than the amount equal to six (6) months’
Basic Rent (at the rental rate then payable under this
Lease). If the Security Deposit is increased pursuant to the
foregoing provisions, Tenant shall deliver such increased amount to
Landlord on or before the date that is ten (10) days after Landlord’s
written demand for such sums; provided that if the Security Deposit is in
the form of the LOC and Tenant is delayed in delivering an amended or new
LOC to reflect such increases, Tenant may satisfy the requirements of this
subparagraph (e) by delivering cash to Landlord in the amount of such
increases, such cash to be held by Landlord in accordance with the terms
of this Section 14.17 pending the issuance of an amended or new
LOC.
|
For
example: if Tenant’s Current Ratio decreases below the 2.50 Milestone to 2.30,
then Tenant shall be required to increase the Security Deposit by one (1)
months’ Basic Rent. Thereafter, if Tenant’s Current Ratio decreases
below the 2.00 Milestone to 1.60, then Tenant shall be required to increase the
Security Deposit by an additional one (1) months’ Basic
Rent. Thereafter, if Tenant’s Current Ratio decreases below the 1.50
Milestone to 1.45, then Tenant shall be required to increase the Security
Deposit by an additional one (1) months’ Basic Rent, and such trend shall
continue for every time Tenant’s Current Ratio drops below a Milestone, until
such time as the Security Deposit is equal to six (6) months’ Basic
Rent.
If, at
any time after Tenant’s Current Ratio has dropped below a Milestone
necessitating an increase in the Security Deposit pursuant to this subparagraph
(e), Tenant’s Current Ratio increases above a Milestone (and Tenant is not in
default hereunder), then the Security Deposit shall be reduced by an amount
equal to one (1) months’ Basic Rent (at the rental rate then payable under this
Lease) for each Milestone above which Tenant’s Current Ratio increases;
provided, however, in no event shall the Security Deposit be less than two (2)
months’ Basic Rent (at the rental rate then payable under this Lease); provided,
however, if Tenant has not achieved the one time Security Deposit reduction
described in subparagraph (d) above then in no event shall the Security Deposit
be less than three (3) months’ Basic Rent (at the rental rate then payable under
this Lease). If the Security Deposit is reduced pursuant to the
foregoing provisions, Landlord shall (x) if the Security Deposit is in the form
of cash, return the amount of such reduction to Tenant on or before the date
that is thirty (30) days after Tenant’s written demand for such sums, or (y) if
the Security Deposit is in the form of the LOC, cooperate with Tenant to have
the LOC amended or reissued to reflect such reduction.
For
example: if Tenant’s Current Ratio has decreased below the 1.50 Milestone to
1.45 (Tenant being required to increase the Security Deposit by three (3)
months’ Basic Rent as set forth above), and thereafter, Tenant’s Current Ratio
increases to above the 1.50 Milestone to 1.60 (and Tenant is not in default
hereunder), then the existing Security Deposit amount shall be reduced by one
(1) months’ Basic Rent.
14.18.
|
Remedying
Defaults; Late Payments
|
If Tenant
shall at any time default in the performance of any obligation under this Lease,
Landlord shall have the right, but not the obligation, to enter upon the
Premises and to perform such obligation notwithstanding the fact that no
specific provision for such substituted performance is made in the Lease with
respect to such default. In performing such obligation, Landlord may
make any payment of money or perform any other act. In the event of
the exercise of such right by Landlord, Tenant agrees to pay to Landlord
forthwith upon demand all such sums, together with interest thereon at a rate
equal to 3% over the prime rate in effect from time to time, as published in the
Wall Street Journal (but in no event less than 18% per annum or more than the
maximum rate allowed by law), as an additional charge. Any payment of
Basic Rent, Escalation Charges or other charges payable hereunder not paid when
due shall bear interest at a rate equal to 3% over the prime rate in effect from
time to time, as published in the Wall Street Journal (but in no event less than
18% per annum or more than the maximum rate allowed by law) from the due date
thereof, as an additional charge.
14.19.
|
Holding
Over
|
Any
holding over by Tenant after the expiration of the term of this Lease shall be
treated as a daily tenancy at sufferance at a rate equal to 150% of the Rent
provided herein (prorated on a daily basis) and shall otherwise be on the terms
and conditions set forth in this Lease as far as applicable.
14.20.
|
Surrender
of Premises
|
Upon the
expiration or earlier termination of the Term of this Lease, Tenant shall
peaceably quit and surrender to Landlord the Premises in neat and clean
condition and in good order, condition and repair, together with all
alterations, additions and improvements which may have been made or installed
in, on or to the Premises before or during the Term of this Lease, excepting
only ordinary wear and use and damage by fire or other casualty for which, under
other provisions of this Lease, Tenant has no responsibility of repair or
restoration. Tenant shall remove all of Tenant’s Removable Property
and (i) to the extent specified by Landlord pursuant to Paragraph 5.2, all
Improvements made by Tenant and (ii) with respect to improvements made by Tenant
not requiring Landlord’s consent; and Tenant shall repair any damages to the
Premises or the Building caused by such removal. Notwithstanding
anything in this Lease to the contrary, Tenant shall have no obligation to
remove Building Standard Office Improvements from the Premises. Any
of Tenant’s Removable Property which shall remain in the Building or on the
Premises after the expiration or termination of the Term of this Lease shall be
deemed conclusively to have been abandoned, and either may be retained by
Landlord as its property or may be disposed of in such manner as Landlord may
see fit, at Tenant’s sole cost and expense.
14.21.
|
Brokerage
|
Landlord
and Tenant warrant and represent that they have dealt with no real estate broker
in connection with this Lease except Colliers Xxxxxxxx & Grew and Xxxxx
& Xxxxx Company. The party who breaches this warranty shall
defend, hold harmless and indemnify the other from any loss, cost, damage or
expense, including reasonable attorney fees, arising from the
breach. Landlord shall pay the commissions of Colliers Xxxxxxxx &
Grew and Xxxxx & Xxxxx Company in accordance with separate written
agreements.
14.22.
|
Environmental
Compliance
|
Tenant
shall not cause any hazardous or toxic wastes, hazardous or toxic substances or
hazardous or toxic materials (collectively, “Hazardous Materials”) to be used,
generated, stored or disposed of on, under or about, or transported to or from,
the Premises (collectively, “Hazardous Materials Activities”) without first
receiving Landlord’s written consent, which may be withheld for any reason and
revoked at any time. If Landlord consents to any such Hazardous
Materials Activities, Tenant shall conduct them in strict compliance (at
Tenant’s expense) with all applicable Regulations, as hereinafter defined, and
using all necessary and appropriate precautions. Landlord shall not
be liable to Tenant for any Hazardous Materials Activities by Tenant, Tenant’s
employees, agents, contractors, licensees or invitees, whether or not consented
to by Landlord. Tenant shall indemnify, defend with counsel
acceptable to Landlord and hold Landlord harmless from and against any claims,
damages, costs and liabilities, arising out of Tenant’s Hazardous Materials
Activities. For purposes hereof, Hazardous Materials shall include
but not be limited to substances defined as “hazardous substances,” “toxic
substances,” or “hazardous wastes” in the federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended; the federal
Hazardous Materials Transportation Act, as amended; and the federal Resource
Conservation and Recovery Act, as amended (“RCRA”); those substances defined as
“hazardous wastes” in the Massachusetts Hazardous Waste Facility Siting Act, as
amended (Massachusetts General Laws Chapter 21D); those substances defined as
“hazardous materials” or “oil” in Massachusetts General Laws Chapter 21E, as
amended; and as such substances are defined in any regulations adopted and
publications promulgated pursuant to said laws (collectively,
“Regulations”). Before using, storing or maintaining any Hazardous
Materials on or about the Premises, Tenant shall provide Landlord with a list of
the types and quantities thereof, and shall update such list as necessary for
continued accuracy. Tenant shall also provide Landlord with a copy of
any Hazardous Materials inventory statement required by any applicable
Regulations, and any update filed in accordance with any applicable
Regulations. If Tenant’s activities violate or create a risk of
violation of any Regulations, Tenant shall cease such activities immediately
upon notice from Landlord. Tenant shall immediately notify Landlord
both by telephone and in writing of any spill or unauthorized discharge of
Hazardous Materials or of any condition constituting an imminent hazard under
any Regulations. Landlord, Landlord’s representatives and employees
may enter the Premises at any time during the Term to inspect Tenant’s
compliance herewith, and may disclose any violation of any Regulations to any
governmental agency with jurisdiction. Nothing herein shall prohibit
Tenant form using minimal quantities of cleaning fluid and office supplies which
may constitute Hazardous Materials but which are customarily present in premises
devoted to office use, provided that such use is in compliance with all
applicable laws and subject to all of the other provisions of this Section 14.23.
Landlord hereby confirms and agrees that Tenant shall have no liability
for the environmental condition of the Premises, the Building or the Property
prior to the Commencement Date (except as may arise from any entry by Tenant
prior to that date).
Not later
than February 27, 2009 Landlord shall cause a Phase I Environmental Site
Assessment ("Phase I ESA") with respect to Lot 4 and Lot B on plans entitled
“Definitive Subdivision Plans for Upland Xxxxx, Upland Road, Norwood, MA “ to be
conducted in accordance with ASTM Standard E 1527-05, and shall provide Tenant
with a copy of the Phase I ESA along with a reliance letter addressed
to Tenant. Landlord shall investigate any "recognized
environmental conditions" identified therein, shall promptly remediate any
hazardous substances and petroleum products found to be present on or about the
Premises, and shall provide Tenant with evidence of any such
remediation.
14.23.
|
Exhibits
|
Exhibits
A, B, C, D, E, F, G, H and I attached hereto are hereby incorporated by
reference as fully as if set forth herein in full.
14.24.
|
Governing
Law
|
This
Lease shall be governed exclusively by the provisions hereof and by the Laws of
the Commonwealth of Massachusetts, as the same may from time to time
exist.
If Tenant
is an entity, Tenant shall, simultaneously with the delivery to Landlord of this
Lease, deliver to Landlord a Secretary’s Certificate or similar instrument
evidencing that the execution of this Lease by Tenant has been properly
authorized and that the individual executing this Lease on behalf of Tenant is
authorized to do so.
14.26.
|
Representations
and Warranties of Tenant.
|
Tenant
(and, if Tenant is a corporation, partnership, limited liability company or
other legal entity, such corporation, partnership, limited liability company or
entity) hereby makes the following representations and warranties, each of which
is material and being relied upon by Landlord, is true in all respects as of the
date of this Lease, and shall survive the expiration or termination of the
Lease. Tenant shall re-certify such representations to Landlord
periodically, upon Landlord’s reasonable request.
a.
|
If
Tenant is an entity, Tenant is duly organized, validly existing and in
good standing under the laws of the state of its organization, and is
qualified to do business in the state in which the Premises is located,
and the persons executing this Lease on behalf of Tenant have the full
right and authority to execute this Lease on behalf of Tenant and to bind
Tenant without the consent or approval of any other person or
entity. Tenant has full power, capacity, authority and legal right
to execute and deliver this Lease and to perform all of its obligations
hereunder. This Lease is a legal, valid and binding obligation of
Tenant, enforceable in accordance with its
terms.
|
b.
|
Tenant
has not (1) made a general assignment for the benefit of creditors, (2)
filed any voluntary petition in bankruptcy or suffered the filing of an
involuntary petition by any creditors, (3) suffered the appointment of a
receiver to take possession of all or substantially all of its assets, (4)
suffered the attachment or other judicial seizure of all or substantially
all of its assets, (5) admitted in writing its inability to pay its debts
as they come due, or (6) made an offer of settlement, extension or
composition to its creditors
generally.
|
c.
|
Tenant
is not in violation of any Anti-Terrorism Law (hereinafter
defined).
|
d.
|
Tenant
is not, as of the date hereof:
|
i.
|
conducting
any business or engaging in any transaction or dealing with any Prohibited
Person (hereinafter defined), including the governments of Cuba, Iran,
North Korea, Myanmar and Syria and, including the making or receiving of
any contribution of funds, goods or services to or for the benefit of any
Prohibited Person;
|
ii.
|
dealing
in, or otherwise engaging in any transaction relating to, any property or
interests in property blocked pursuant to Executive Order No. 13224;
or
|
iii.
|
engaging
in or conspiring to engage in any transaction that evades or avoids, or
has the purpose of evading or avoiding, or attempts to violate any of the
prohibitions set forth in, any Anti-Terrorism
Law.
|
e.
|
Neither
Tenant nor any of its affiliates, officers, directors, shareholders,
members or lease guarantor, as applicable, is a Prohibited
Person.
|
If at any
time any of these representations becomes false, then it shall be considered a
material default under this Lease.
As used
herein, "Anti-Terrorism Law"
is defined as any law relating to terrorism, anti-terrorism,
money-laundering or anti-money laundering activities, including without
limitation the United States Bank Secrecy Act, the United States Money
Laundering Control Act of 1986, Executive Order No. 13224, Title 3 of the USA
Patriot Act, and any regulations promulgated under any of them. As used
herein "Executive Order No.
13224" is defined as Executive Order No. 13224 on Terrorist Financing
effective September 24, 2001, and relating to “Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism",
as may be amended from time to time. "Prohibited Person" is defined
as (i) a person or entity that is listed in the Annex to Executive Order No.
13224, or a person or entity owned or controlled by an entity that is listed in
the Annex to Executive Order No. 13224; (ii) a person or entity with whom
Landlord is prohibited from dealing or otherwise engaging in any transaction by
any Anti-Terrorism Law; or (iii) a person or entity that is named as a
"specially designated national and blocked person" on the most current list
published by the U.S. Treasury Department Office of Foreign Assets Control at
its official website, xxxx://xxx.xxxxx.xxx/xxxx/x00xxx.xxx
or at any replacement website or other official publication of such list. "USA Patriot Act" is defined
as the "Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001" (Public Law 107-56),
as may be amended from time to time.
14.27.
|
Landlord’s
Representations and Warranties
|
a.
|
Landlord
is duly organized, validly existing and in good standing under the laws of
the state of its organization, and is qualified to do business in the
state in which the Premises is located, and the persons executing this
Lease on behalf of Landlord have the full right and authority to execute
this Lease on behalf of Landlord and to bind Landlord without the consent
or approval of any other person or entity. Landlord has full
power, capacity, authority and legal right to execute and deliver this
Lease and to perform all of its obligations hereunder. This
Lease is a legal, valid and binding obligation of Landlord, enforceable in
accordance with its terms.
|
b.
|
To
Landlord’s knowledge, the status of the title of the Property is as set
forth in the title policy attached hereto as Exhibit
I.
|
c.
|
The
Building, and Landlord's Work in the Premises, shall be constructed in
accordance with all applicable federal, state, and local laws, ordinances
and regulations, free of all mechanics and materialmen's liens (subject to
Landlord’s right to bond over the same in accordance with Section 4.2(a)
above).
|
d.
|
Landlord
has no knowledge of any matters related to the environmental condition of
the Property, other than as set forth in (1) the “Phase II Environmental
Site Assessment 0 Xxxxxx Xxxx Xxxxxxx, Xxxxxxxxxxxxx,” prepared by GZA
GeoEnvironmental, Inc. in August 2003, and (2) the letter prepared by GZA
GeoEnvironmental, Inc. dated June 30,
2008.
|
14.28.
|
Permitting
Matters
|
The
obligations of Landlord hereunder are conditioned upon the securing by Landlord
of all governmental permits and approvals required for the construction of the
Building, on terms and conditions satisfactory to Landlord in its sole
discretion (“Permits”). In the event that Landlord has not secured
the Permits by the outside date therefor set forth in Exhibit D, Landlord
may terminate this Lease by written notice to Tenant, whereupon this Lease shall
terminate and neither party shall have further recourse hereunder.
14.29.
|
Force
Majeure
|
For
purposes of this Lease, “events of Force Majeure” shall include: Acts of God,
war, civil commotion, fire, flood or other casualty, labor difficulties,
shortages of labor, materials or equipment, government regulations, unusually
severe weather, or other similar causes beyond a party’s reasonable
control.
ARTICLE
XV
TENANT
OPTION TO EXTEND
15.1.
|
Fair
Market Rent
|
Whenever
any provision of this Lease provides that the Fair Market Rent shall be
calculated, it shall mean the fair rent for the Premises as of the commencement
of the period in question under market conditions for comparable office space in
the South Shore market, as well as such annual increases in rent for the period
in question as are reasonably consistent with then current market conditions.
Fair Market Rent shall be determined by agreement between Landlord and Tenant,
but if Landlord and Tenant are unable to agree upon the Fair Market Rent within
twenty (20) days after the date on which Tenant delivers notice of its exercise
of its option to extend under Section 15.2 below, then the Fair Market Rent
shall be determined by appraisal made as hereinafter provided by a board of
three (3) reputable independent commercial real estate brokers, each of whom
shall have at least ten (10) years of experience in the eastern Massachusetts
rental market for comparable properties and each of whom is hereinafter referred
to as "appraiser". Tenant and Landlord shall each appoint one such appraiser and
the two appraisers so appointed shall appoint the third appraiser. The cost and
expenses of each appraiser appointed separately by Tenant and Landlord shall be
borne by the party who appointed the appraiser. The cost and expenses of the
third appraiser shall be shared equally by Tenant and Landlord. Landlord and
Tenant shall appoint their respective appraisers within fifteen (15) days after
the expiration of such twenty (20) day period, and shall designate the
appraisers so appointed by notice to the other party. The two appraisers so
appointed and designated shall appoint the third appraiser within fifteen (15)
days after their appointment, and shall designate such appraiser by notice to
Landlord and Tenant. The board of three appraisers shall determine the Fair
Market Rent of the space in question as of the commencement of the period to
which the Fair Market Rent shall apply and shall notify Landlord and Tenant of
their determinations within thirty (30) days of their appointment. If the
determinations of the Fair Market Rent of any two or all three of the appraisers
shall be identical in amount, said amount shall be deemed to be the Fair Market
Rent of the Premises. If the determinations of all three appraisers shall be
different in amount, the average of the two values nearest in amount shall be
deemed the Fair Market Rent. Notwithstanding the foregoing, if either party
shall fail to appoint its appraiser within the period specified above (such
party referred to hereinafter as the "failing party"), the other party may serve
notice on the failing party requiring the failing party to appoint its appraiser
within five (5) days of the giving of such notice and if the failing party shall
not respond by appointment of its appraiser within said five (5) day period,
then the appraiser appointed by the other party shall be the sole appraiser
hereunder. Tenant shall have the option, exercisable by written notice to
Landlord within ten (10) days after determination of Fair Market Rent hereunder,
to rescind its exercise of its option to extend under Section 15.2 below, in
which event this Lease shall expire at the end of the then current Term. If
Tenant does not timely deliver such notice of rescission, the determination of
Fair Market Rent by the appraisers hereunder shall be final and binding upon the
parties.
15.2.
|
Option
to Extend
|
Tenant
shall have the right and option to extend the Term for two (2) additional
successive periods of five (5) years each (each, an “Extension Term”),
commencing the day after the expiration of the Initial Term or prior Extension
Term, respectively, and ending on the fifth (5th)
anniversary thereof, provided that Tenant shall give Landlord notice of Tenant’s
exercise of such option no more than fifteen (15) months and no less than twelve
(12) months prior to the expiration of the Initial Term or the first Extension
Term, respectively, and provided further that Tenant shall not be in default
beyond any applicable notice or cure periods at the time of giving such notice
or at the commencement of the Extension Term in the performance or observance of
any of the terms and provisions of this Lease on the part of the Tenant to be
performed or observed. Prior to the exercise by Tenant of such
option, the expression “Term” shall mean the Initial Term as the same may have
been extended, and after the exercise by Tenant of such option, the expression
“Term” shall mean the Term as it has been then extended. All of the
terms, covenants, conditions, provisions and agreements in this Lease contained
shall be applicable to the then extended Term, except as hereinafter set
forth. If Tenant shall give notice of its exercise of this option to
extend in the manner and within the time period provided aforesaid, the Term
shall be extended upon the giving of such notice without the requirement of any
further action on the part of either Landlord or Tenant. If Tenant
shall fail to give timely notice of the exercise of such option as aforesaid,
Tenant shall have no right to extend the Term of this Lease, time being of the
essence of the foregoing provisions. The Basic Rent payable during
each Extension Term shall be the greater of (a) 100% of the Basic Rent for the
last year of the Initial Term or prior Extension Term, respectively, or (b)
ninety-five percent (95%) of the Fair Market Rent determined in accordance with
Section 15.1 above. Landlord shall provide a refurbishment allowance
to Tenant in the amount of Fifteen ($15.00) Dollars per square foot of the
Premises Rentable Area for the first Extension Term if the same is exercised by
Tenant in accordance with the terms hereof. This option shall be
personal to Tenant and its Affiliates, and shall not be exercisable by any other
party.
ARTICLE
XVI
RIGHT OF
FIRST OFFER TO LEASE
Tenant
shall have a right of first offer as to space in the Building which becomes
available from time to time on the terms set forth herein, provided that
(a) the Lease is in full force and effect, and (b) Tenant is not in
default, beyond any applicable notice and cure periods, in the performance or
observance of any of the terms and provisions of this Lease on the part of the
Tenant to be performed or observed, and (c) Landlord shall have no obligation to
make any offer to Tenant hereunder if, at such time as an offer would otherwise
be required to be made hereunder, there are 364 or fewer days remaining in the
Term, as the same may have been extended at such time. Such offer
shall be on such terms and conditions as Landlord shall elect in its sole
discretion. Landlord shall provide written notice of the availability
of the space to Tenant. If Tenant fails to accept Landlord’s offer on
the terms set forth therein within fifteen (15) days from delivery of Landlord’s
notice, Landlord shall have the free right to lease such space to any third
party on such terms as it may elect in its sole discretion, provided, however,
that if the rent and other economic consideration in any contemplated lease for
such space to a third party is less than ninety percent (90%) of the rent and
other economic consideration under which such space was offered to Tenant,
Landlord must again present an offer to Tenant with respect to such space on
such lower terms in accordance with the provision hereof, for the same length of
term as offered to the third party (provided that the same shall not
vest in Tenant any right to extend the Term of this
Lease). In addition, (a) Landlord shall reoffer any space
to Tenant which has not been leased by Landlord to a third party within twelve
(12) months after the date Landlord has offered such space to Tenant hereunder,
and (b) if a third party has leased a portion of space declined by Tenant
hereunder, Landlord shall reoffer the remaining space to Tenant
in accordance with this Article XVI within thirty (30) days after
Landlord has executed a lease with such third party.
Time is
of the essence of the foregoing provisions. Tenant shall be entitled
only to accept Landlord’s offer as to the space set forth in the offer and no
lesser portion thereof. In the event that Tenant provides timely
written acceptance of Landlord’s offer, the parties shall enter into an
amendment to this Lease which incorporates the offered space into the Premises
on the terms set forth herein. This right shall be personal to Tenant
and its Affiliates, and shall not be exercisable by any other
party.
ARTICLE
XVII
RIGHT OF
FIRST OFFER TO PURCHASE
Landlord
hereby grants to Tenant a right of first offer to purchase the Property, in the
event that Landlord elects to sell the same to an unaffiliated third party, on
the terms set forth herein. If at any time during the Term of this
Lease, Landlord elects to engage in such a sale of the Property to a third
party, and if at such time (a) this Lease is in full force and effect,
(b) Tenant is not in default, beyond any applicable notice and cure
periods, in the performance or observance of any of the terms and provisions of
this Lease on the part of the Tenant to be performed or observed and (c)
Landlord shall have no obligation to make any offer to Tenant hereunder if, at
such time as an offer would otherwise be required to be made hereunder, there
are 364 or fewer days remaining in the Term, as the same may have been extended
at such time. Landlord shall offer to sell the Property to Tenant on
such terms and conditions as are determined by Landlord in its sole discretion
(a “Purchase Offer”). The foregoing covenant shall not prohibit
Landlord from marketing the Property at the same time Tenant is considering a
Purchase Offer from Landlord, provided that Landlord shall not enter a binding
agreement to sell to a third party until Tenant rejects or is deemed to have
rejected such Purchase Offer. If Tenant rejects the Purchase Offer by
notice to Landlord or does not accept such Purchase Offer by written notice to
Landlord within five (5) business days after the date the Purchase Offer Notice
is delivered to Tenant, the Purchase Offer shall conclusively be deemed to have
been rejected by Tenant; thereafter, Landlord shall be free to sell the Property
to other parties upon such terms and conditions as shall be satisfactory to
Landlord in its sole discretion; provided, however, that (a) if the
consideration in any contemplated sale to an unaffiliated third party is less
than ninety percent (90%) of the total consideration for which the Sale Property
was offered for sale to Tenant, Landlord must again present an Purchase Offer
Notice to Tenant on such lower terms, and (b) if Landlord does not enter into a
Purchase and Sale Agreement for the Sale Property with a third party within
twelve (12) months of the date of the Purchaser Offer Notice, or, having timely
entered into such a Purchase and Sale Agreement, Landlord does not consummate
the sale to the third party within eighteen (18) months of the date of the
Purchase Offer Notice, then Landlord must again present a Purchase Offer Notice
to Tenant in accordance with the requirements of this Section 2.5 prior to any
sale to a third party.
Notwithstanding
any provision hereof to the contrary, in no event shall Tenant’s rights
hereunder apply to any transfer of the Property by Landlord to any party
directly or indirectly controlling, controlled by, or under common control with
Landlord, to any portfolio transaction involving the sale of properties which
include the Property by Landlord or any party having a direct or indirect
interest in Landlord (including the sale of the entire Upland Xxxxx Corporate
Center), to any financing transaction involving the sale and leaseback of the
Property to a party directly or indirectly controlling, controlled by, or under
common control with Landlord, to any transfer of the Property as part of an
exchange transaction under Section 1031 of the Internal Revenue Code of 1986, as
amended, to any foreclosure sale of the Property or any deed in lieu thereof, or
to any option to purchase, right of first refusal, right of first offer or
similar agreement.
If Tenant
timely accepts a Purchase Offer pursuant to the provisions hereof, Tenant and
Landlord shall use good faith efforts to negotiate with and execute and deliver
to each other within 21 days following Tenant’s acceptance of the Purchase
Offer, a Purchase and Sale Agreement drafted by Landlord to reflect the terms
set out in the Purchase Offer Notice (a “P&S). The P&S shall
include (a) a thirty (30) day due diligence period during which Tenant may elect
to terminate the P&S in its sole discretion (b) a right on the part of
Tenant to inspect the physical condition of the Property, subject to
commercially customary indemnity and insurance requirements, and (c) an
obligation on the part of Landlord to deliver to Tenant Landlord’s then current
title insurance policy, survey and environmental reports. The
property shall be sold to Tenant under the P&S in its then “As
Is,” “Where Is” condition, with all faults and without representation, warranty
or guaranty of any kind by Landlord to Tenant, except to the extent otherwise
provided in the Purchase Offer. In the event that despite good faith
efforts of both parties, Landlord and Tenant are unable to reach agreement on
the terms of the P&S and the same is not executed and delivered by both
Landlord and Tenant within said 21 day period, Landlord shall be free to sell
the Property to other parties upon such terms and conditions as shall be
satisfactory to Landlord in its sole discretion. Time is of the
essence with respect to the provisions hereof.
IN WITNESS WHEREOF, Landlord
and Tenant have caused this Lease to be duly executed, under seal, by persons
hereunto duly authorized, in multiple copies, each to be considered an original
hereof, as of the date first set forth above.
LANDLORD:
|
TENANT: | ||
CRFI/CQ
Norwood Upland, L.L.C., a Delaware limited liability company
By:
CFRI Norwood Upland, L.L.C., a Delaware limited liability company, its
managing member
By:
CRI Property Trust, a Maryland real estate investment trust, its sole
member
|
TECH TARGET, INC., a Delaware corporation | ||
/s/
XXXXX XXXXX
|
/s/
XXXX XXXXXX
|
||
Name:
Xxxxx Xxxxx
|
Name:
Xxxx Xxxxxx
|
||
Title:
Treasurer
|
Title:
Treasurer and Chief Financial Officer
|
EXHIBITS
Exhibit
A: The
Land
Exhibit
B: Floor
Plan
Exhibit
C: Landlord's
Work
Exhibit
D: Schedule
Exhibit
E: Cleaning
Specifications
Exhibit
F: Items
Included in Operating Expenses
Exhibit
G: Rules
and Regulations
Exhibit
H: Form
of Letter of Credit
Exhibit
I: Property
Title Policy
EXHIBIT
A
THE
LAND
Those
certain parcels of land located on Upper Road, Norwood, Norfolk County,
Massachusetts, shown as Lot 4 and Lot B on plans entitled “Definitive
Subdivision Plans for Upland Xxxxx, Upland Road, Norwood, MA” prepared by Xxxxx
Engineering Group, dated September 1, 2004, revised through November 17, 2004,
recorded with the Norfolk Registry of Deeds in Plan Book 532, Plans
98-104 of 2005.
EXHIBIT
B
FLOOR
PLAN
EXHIBIT
C
LANDLORD'S
WORK
EXHIBIT
D
SCHEDULE
EXHIBIT
E
CLEANING
SPECIFICATIONS
A.
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Premises
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Daily on Business
Days:
1. Empty and
clean all waste receptacles and ash trays and remove waste material from the
Premises; wash receptacles as necessary.
2. Sweep and
dust mop all uncarpeted areas using a dust-treated mop.
3. Spot
vacuum all rugs and carpeted areas.
4. Hand dust
and wipe clean with treated cloths all horizontal surfaces including furniture,
office equipment, window xxxxx, door ledges, chair rails and counter tops,
within normal reach.
5. Wash
clean all water fountains.
6. Upon
completion of cleaning, all lights will be turned off and doors locked, leaving
the Premises in an orderly condition.
Weekly:
Vacuum
all rugs and carpeted areas.
Quarterly:
Render
high dusting not reached in daily cleaning to include:
1.
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Dusting
all pictures, frames, charts, graphs and similar wall
hangings.
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2.
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Dusting
all vertical surfaces, such as walls, partitions, doors and
ducts.
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3.
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Dusting
all pipes and high moldings.
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B.
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Lavatories
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Daily on Business
Days:
1. Sweep and
damp mop floors.
2. Clean all
mirrors, powder shelves, dispensers and receptacles, bright work, flushmeters,
pipes and toilet seat hinges.
3. Wash both
sides of all toilet seats.
4. Wash all
basin, bowls and urinals.
5. Dust and
clean all powder room fixtures.
6. Empty and
clean paper towel and sanitary disposal receptacles.
7. Remove
waste paper and refuse.
8. Refill
tissue holders, soap dispensers, towel dispensers, vending sanitary dispensers;
materials to be furnished by Landlord.
9. A
sanitizing solution will be used in all lavatory cleaning.
Monthly:
1.
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Machine
scrub lavatory floors.
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2.
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Wash
all partitions and tile walls in
lavatories.
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C.
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Main
Lobby, Building Exterior and
Corridors
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Daily on Business
Day:
1. Sweep and
wash all floors.
2. Wash all
rubber mats.
3. Clean
elevators, wash or vacuum floors, wipe down walls and doors.
4. Spot
clean any metal work inside lobby.
5. Spot
clean any metal work surrounding building entrance doors.
Monthly:
All
resilient tile
floors in public areas to be treated equivalent to spray buffing.
Quarterly:
Windows
washed inside and outside — weather permitting.
D.
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Exercise
Rooms & Showers
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Daily on Business
Day:
1. Clean and
sanitize shower floors, counters, fixtures, toilet seats, bowls &
urinals
2. Clean all
mirrors, glass and metal surfaces
3. Disinfect
all exercise machines and door hardware
4. Vacuum
carpeting
5. Remove
all trash and replace liners
6. Refill
any and all dispensers
7. Wash and
sanitize exterior of rubbish containers
8. Wash and
maintain all floor drains
9. Clean and
wash all glass doors
Weekly:
1. Wash
all walls and tile surfaces
2. Vacuum
all horizontal surfaces and air vents
Bi-Weekly:
1. Pressure
wash all shower surfaces
Quarterly:
1. Shampoo
all carpeted surfaces
2. Wash
all walls
Bi-annual:
1. Clean
all glass surfaces
E.
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Café,
Patio
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Daily on Business
Day:
1. Replace
chairs, tables, umbrellas etc. in an orderly organized fashion.
2. Open
umbrellas each morning and close at night weather permitting.
3. Remove
trash and replace liners twice a day or when necessary
4. Spot
clean floors as necessary during the day and wash at night
5. Wash
tables twice a day or as necessary, wipe down chairs
6. Clean and
disinfect all tables nightly
7. Spot
clean all walls
8. Vacuum
all carpeted areas
9. Dust and
wipe down all horizontal surfaces
10. Wash and
maintain all floor drains
11. Spot
clean all metal and glass surfaces
12. Clean all
glass doors
Weekly:
1. Pressure
wash and scrub all floors, grout and brick patio areas
Bi-weekly:
1. Wash
all surfaces
Quarterly:
1. Strip
all floor surfaces
2. Shampoo
all carpeted surfaces
Bi-annual:
1. Clean
all glass
F.
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Miscellaneous
Services
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Tenant
requiring services in excess of those described above shall request same through
Landlord, at Tenant’s expense.
Initialed
for Identification:
LANDLORD:__________________________ TENANT:
EXHIBIT
F
ITEMS
INCLUDED IN OPERATING EXPENSES
Without
limitation, Operating Expenses shall include:
1.
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All
expenses incurred by Landlord or Landlord’s agents which shall be directly
related to employment of personnel, including amounts incurred for wages,
salaries and other compensation for services, payroll, social security,
unemployment and similar taxes, workmen’s compensation insurance,
disability benefits, pensions, hospitalization, retirement plans and group
insurance, uniforms and working clothes and the cleaning thereof, and
expenses imposed on Landlord or Landlord’s agents pursuant to any
collective bargaining agreement for the services of employees of Landlord
or Landlord’s agents in connection with the operation, repair,
maintenance, cleaning, management, security, and protection of the
Property (including, without limitation, the cafeteria, fitness center,
and/or common vending area, if any, provided by Landlord), and its
mechanical systems including, without limitation, day and night
supervisors, property manager, accountants, bookkeepers, janitors,
carpenters, engineers, mechanics, electricians and plumbers and personnel
engaged in supervision of any of the persons mentioned above; provided
that, if any such employee is also employed on other property of Landlord,
such compensation shall be suitably prorated among the Property and such
other properties.
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2.
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The
cost of services, materials and supplies furnished to the Building or
tenants thereof or used in the operation, repair, maintenance, cleaning,
management, security, and protection of the Property (including, without
limitation, a cafeteria and/or common vending area, if any, provided by
Landlord).
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3.
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The
cost of replacements for tools and other similar equipment used in the
repair, maintenance, cleaning, security, and protection of the Property
(including, without limitation, a cafeteria and/or common vending area, if
any, provided by Landlord), provided that, in the case of any such
equipment used jointly on other property of Landlord, such costs shall be
suitably prorated among the Property and such other properties and of
establishment of reasonable reserves relating to operation and maintenance
of the Property.
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4.
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Where
the Property is managed by Landlord or an affiliate of Landlord, a sum
equal to the amounts customarily charged by management firms in the Boston
area for similar properties, but in no event more than five percent (5%)
of gross annual income of the Property, whether or not actually paid, or
where otherwise managed, the amounts accrued for management, together with
amounts accrued for legal and other professional fees relating to the
Property, but excluding such fees and commissions paid in connection with
services rendered for securing or renewing leases and for matters not
related to the normal administration and operation of the
Building.
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5.
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Premiums
for insurance against damage or loss to the Building from such hazards as
shall from time to time be generally required by institutional mortgages
in the Norwood area for similar properties, including, but not by way of
limitation, insurance covering loss of rent attributable to any such
hazards, and public liability
insurance.
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6.
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If,
during the Term of this Lease, Landlord shall make a capital expenditure
(other than a capital expenditure for the structure of the Building) which
is not otherwise properly includable in Operating Expenses for the
Operating Year in which it was made, there shall nevertheless be included
in such Operating Expenses for the Operating Year in which it was made and
in Operating Expenses for each succeeding Operating Year during the useful
life of the capital expenditure the annual charge-off of such capital
expenditure. Annual chargeoff shall be determined by dividing
the original capital expenditure plus an
interest factor, reasonably determined by Landlord, as being the interest
rate then being charged for long-term mortgages by institutional lenders
on like properties within the locality in which the Building is located,
by the number of years of useful life of the capital expenditure; and the
useful life shall be determined reasonably by Landlord in accordance with
generally accepted accounting principles and practices in effect at the
time of making such expenditure.
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7.
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Costs
for electricity, water and sewer use charges, and other utilities supplied
to the Property and not paid for directly by
tenants.
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8.
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Betterment
assessments (including interest charged thereon) provided the same are
apportioned equally over the longest period permitted by
law.
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9.
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Amounts
paid to independent contractors for services, materials and supplies
furnished for the operation, repair, maintenance, cleaning and protection
of the Property.
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10.
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Amounts
allocated to the Property under the Park
Covenants.
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For
purposes hereof, the following items may not be included as an Operating
Expense:
1.
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To
the extent paid for by insurance proceeds actually received by Landlord,
expenses for repairs or other work which is caused by fire, windstorm,
casualty or any other insurable
occurrence;
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2.
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Expenses
for painting, renovating, redecorating, or other expenses to renovate
space for new tenants or space vacated by any
tenant;
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3.
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Expenses
incurred in leasing any space or procuring new tenants, including, without
limitation, legal fees, lease commissions paid to agents of Landlord or
other brokers, or advertising
expenses;
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4.
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Interest
or principal payments on any mortgages; lease payments for any prime,
underlying, or ground lease; or depreciation of the
Building;
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5.
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Cost
of utilities or services payable by any tenant directly to the provider(s)
of such utilities or services;
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6.
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Any
cost or expense incurred by Landlord for performing any work, or providing
any utilities or services, including cleaning services, as the case may
be, for any tenant (including Tenant) under a lease with such tenant which
level of said work or services, as the case may be, exceeds the level of
building standard work or services;
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7.
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Any
cost or expense of any nature whatsoever which Landlord incurs in
connection with the operation of the Building which is specifically
charged directly to the tenant on whose behalf it is incurred (including
Tenant and whether or not the same is finally paid), or for which Landlord
is otherwise compensated, or which Landlord actually recoups, by way of
set off, reduction of recovery allowed, or
otherwise;
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8.
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Any
expenses for repairs or maintenance the cost of which is actually paid for
by warranties or service contracts;
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9.
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Any
expenses incurred by Landlord in connection with the construction of the
Building or the Property, or incurred with any repair of the structure of
the Building required to be performed as the result of any defects in the
construction of the structure of the
Building.
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Initialed
for Identification
LANDLORD:_______ TENANT:
EXHIBIT
G
RULES
AND REGULATIONS
The
following Rules and Regulations have been formulated for the safety and well
being of all Tenants of the Building and to insure compliance with all municipal
and other requirements. Strict adherence to these Rules and
Regulations is necessary to guarantee that each and every Tenant will enjoy a
safe and undisturbed occupancy in the Building in accordance with the
lease. Any continuing violation of these Rules and Regulations by a
Tenant, after notice from the Landlord, shall be sufficient cause for
termination of the lease, at the option of the Landlord.
1.
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The
sidewalks, entrances, loading dock, atrium, elevators, vestibules,
stairways, corridors, or other parts of the Building not occupied by any
Tenant shall not be obstructed or encumbered by any Tenant or used for any
purpose other than ingress and egress and to from the
Premises. The Landlord shall have the right to control and
operate and public portions of the Building and the facilities furnished
for common use of the Tenants, in such manner as the Landlord deems best
for the benefit of the Tenants generally. Landlord shall
administer the schedule for use of the Cafeteria during non-meal service
hours in an equitable manner, provided that the Tenant hereunder shall
have the first priority use thereof within the context of the scheduling
protocol (for example, if tenants of the Building are permitted to
schedule use of the Cafeteria up to two (2) weeks in advance, the Tenant
hereunder shall be permitted to schedule use of the Cafeteria up to three
(3) weeks in advance.)
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2.
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No
drapes, blinds, shades or screens shall be attached to or hung in, or used
in connection with, any window or door of the Premises, without the prior
written consent of the Landlord.
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3.
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No
bicycles, vehicles or animals, birds or pets of any kind shall be brought
into or kept in or about the Premises, and no cooking (except for the use
of toasters and microwave ovens) shall be done or permitted by any Tenant
on the Premises. No Tenant shall cause or permit any unusual or
objectionable odors to be produced upon or penetrate from the
Premises.
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4.
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No
inflammable, combustible or explosive fluid, chemical or substance shall
be kept upon the Premises.
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5.
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No
additional locks or bolts of any kind shall be places upon any of the
doors, nor shall any changes be made in existing locks or the mechanism
thereof to the doors leading to the corridors or main
halls. All entrance doors shall be kept closed during business
hours except as they may be used for ingress or egress. Each
Tenant shall, upon the termination of his tenancy, restore to the Landlord
all keys either furnished to, or otherwise procured by such Tenant and in
the event of the loss of any keys so furnished, such Tenant shall pay to
the Landlord the cost thereof.
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6.
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No
furniture, equipment or other bulky matter of any description shall be
received into the Building or carried in the elevators except in the
manner and during the times approved by Lessor. Lessee shall
obtain Lessor’s determination before moving said property into the
Building. All moving of furniture, equipment, and other
material within the public areas shall be under the direct control and
supervision of Lessor who shall, however, not be responsible for any
damage to or charges for moving the same. Lessor shall have the
sole right to determine if Lessee’s property can be safely transported in
the elevators.
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7.
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The
Landlord reserves the right to exclude from the Building at all times any
person who is not known or does not properly identify himself to the
building management or security service. Landlord may, at its
option, require all persons admitted to or leaving the Building between
the hours of 6:00 PM and 7:00 AM, Monday through Friday, and on Saturdays
after 1:00 PM to register. Each Tenant shall be responsible for
all persons for whom they authorize entry into or exit out of the
Building.
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8.
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The
Premises shall not, at any time, be used for lodging or sleeping or for
any immoral or illegal purposes.
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9.
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Canvassing,
soliciting and peddling in the Building is prohibited and each Tenant
shall cooperate to prevent the
same.
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10.
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Landlord
does not maintain suite finishes which are non standard, such as
bathrooms, wallpaper, special lights, etc. However, should the
need for repairs of items not maintained by Landlord arise, Landlord will
arrange for the work to be done at Tenants’
expense.
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11.
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All
Tenants and visitors are expected to observe all safety features and
traffic laws in the park which
include:
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·
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A
speed limit of 20 m.p.h.
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·
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All
stop signs are to be obeyed
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·
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Automobiles
are not be left in the roadway at
anytime
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·
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Automobiles
are not to be left in the parking lot overnight or
weekends.
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·
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Automobiles
should be parked within marked lanes. Reserved parking and
parking for the handicap signs should be
respected.
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12.
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Landlord
may, upon request by any Tenant, waive the compliance by such Tenant of
any of the foregoing Rules and Regulations, provided
that:
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(i) No waiver
shall be effective unless signed by Landlord or Landlord’s authorized
agent.
(ii) Any such
waiver shall not relieve such Tenant from the obligation to comply with such
Rules or Regulations in the future unless expressly consented to by Landlord,
and;
(iii) No waiver
granted to any Tenant shall relieve any other Tenant from the obligation of
complying with the foregoing Rules and Regulations unless such other Tenant has
received a similar waiver in writing from Landlord.
Initialed
for Identification
Landlord:________________
Tenant:_________________
EXHIBIT
H
FORM
OF LETTER OF CREDIT
IRREVOCABLE STANDBY LETTER
OF CREDIT
LETTER
OF CREDIT NO.:
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[INSERT
NUMBER]
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DATE
OF ISSUE:
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[INSERT
DATE]
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APPLICANT:
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TECH
TARGET, INC.
000
XXXXXXXX XXXXXX
XXXXX
000
XXXXXXX,
XX 00000
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BENEFICIARY:
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CFRI/CQ
NORWOOD UPLAND, L.L.C.
X/X
XXXXXXXXXX XXXXXXXXX
XXX
XXXXXXXXXX XXXXX
XXXXXXXXX,
XX 00000
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AMOUNT:
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$737,402.00
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EXPIRATION
DATE
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[INSERT
DATE]
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PLACE
FOR PRESENTATION OF DOCUMENTS:
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[INSERT
LOCAL ADDRESS]
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WE HEREBY
ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN FAVOR OF THE BENEFICIARY
FOR THE ACCOUNT OF THE APPLICANT AVAILABLE BY YOUR DRAFTS DRAWN ON US AT SIGHT
IN THE FORM OF ANNEX I AND ACCOMPANIED BY THE FOLLOWING DOCUMENTS:
1.
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THE
ORIGINAL OF THIS STANDBY LETTER OF CREDIT AND ALL AMENDMENT(S), IF
ANY.
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2.
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THE
WRITTEN STATEMENT PURPORTEDLY SIGNED BY THE BENEFICIARY STATING
THAT:
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“BENEFICIARY
IS ENTITLED TO DRAW UNDER THIS LETTER OF CREDIT PURSUANT TO THE TERMS OF
THAT CERTAIN LEASE AGREEMENT BETWEEN CFRI/CQ NORWOOD UPLAND, L.L.C. AND
TECH TARGET, INC. DATED __________ WITH RESPECT TO PROPERTY LOCATED IN THE
UPLAND XXXXX CORPORATE CENTER IN NORWOOD,
MASSACHUSETTS”
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PARTIAL
DRAWINGS MAY BE MADE UNDER THIS LETTER OF CREDIT.
IT IS A
CONDITION OF THIS STANDBY LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY
EXTENDED WITHOUT AMENDMENT FOR ONE (1) YEAR PERIODS FROM THE PRESENT EXPIRATION
DATE HEREOF, UNLESS, AT LEAST 30 DAYS PRIOR TO ANY SUCH EXPIRATION DATE, WE
SHALL NOTIFY YOU IN WRITING BY CERTIFIED MAIL AT THE ABOVE LISTED ADDRESS THAT
WE ELECT NOT TO CONSIDER THIS IRREVOCABLE LETTER OF CREDIT RENEWED FOR ANY SUCH
ADDITIONAL PERIOD. UPON RECEIPT BY YOU OF SUCH NOTICE, YOU MAY DRAW
HEREUNDER BY MEANS OF YOUR DRAFT(S) ON US AT SIGHT, SIGNED BY THE BENEFICIARY,
ACCOMPANIED BY A STATEMENT, SIGNED BY THE BENEFICIARY, STATING
THAT:
“AS OF
THE DATE OF THIS DRAWING, THE BENEFICIARY HAS NOT RECEIVED A SUBSTITUTE LETTER
OF CREDIT OR OTHER INSTRUMENT ACCEPTABLE TO THE BENEFICIARY AS SUBSTITUTE FOR
BANK LETTER OF CREDIT NO. [INSERT L/C NO.]”
NOTWITHSTANDING
THE ABOVE, THE FINAL EXPIRATION DATE SHALL BE NO EARLIER THAN SIXTY (60) DAYS
AFTER THE EXPIRATION DATE OF THE TERM OF LEASE.
THIS
LETTER OF CREDIT IS TRANSFERABLE. YOU MAY TRANSFER THIS LETTER OF
CREDIT TO YOUR TRANSFEREE OR SUCCESSOR AT NO COST TO YOU OR YOUR TRANSFEREE BY
YOUR DELIVERY TO US OF THE ATTACHED ANNEX II DULY COMPLETED AND EXECUTED BY THE
BENEFICIARY AND ACCOMPANIED BY THE ORIGINAL LETTER OF CREDIT AND ALL AMENDMENTS,
IF ANY. APPLICANT SHALL BE RESPONSIBLE FOR THE PAYMENT OF ANY
TRANSFER FEE AND ANY OTHER REQUIREMENTS RELATIVE TO THE UCP 500 (AS HEREINAFTER
DEFINED) AND U.S. GOVERNMENT REGULATIONS.
IN THE
EVENT THIS LETTER OF CREDIT IS TRANSFERRED, THE TRANSFEREE SHALL BE THE
BENEFICIARY HEREOF AND DRAFTS AND DOCUMENTS PURSUANT HERETO MUST BE EXECUTED BY
A REPRESENTATIVE OF THE TRANSFEREE.
ALL
DRAFTS, ACCOMPANYING DOCUMENTS AND OTHER COMMUNICATIONS REQUIRED OR PERMITTED
UNDER THIS LETTER OF CREDIT MUST BE MARKED: “DRAWN UNDER BANK LETTER
OF CREDIT NO. [INSERT L/C NO.]”
ALL
DRAFTS AND ACCOMPANYING DOCUMENTS MAY BE REPRESENTED AT, AND ALL COMMUNICATIONS
WITH RESPECT TO THIS LETTER OF CREDIT SHALL BE IN WRITING AND DELIVERED TO, OUR
OFFICES AT [INSERT ADDRESS OF A BANK LOCATION ACCEPTABLE TO
BENEFICIARY].
THIS
LETTER OF CREDIT SETS FORTH IN FULL THE TERMS OF OUR UNDERTAKING, AND SUCH
UNDERTAKING SHALL NOT BE IN ANY WAY MODIFIED, AMENDED OR AMPLIFIED BY REFERENCE
TO ANY DOCUMENT, INSTRUMENT OR AGREEMENT REFERRED TO HEREIN OR IN WHICH THIS
LETTER OF CREDIT IS REFERRED TO OR TO WHICH THIS LETTER OF CREDIT RELATES, AND
ANY SUCH REFERENCE SHALL NOT BE DEEMED TO INCORPORATE HEREIN BY REFERENCE ANY
DOCUMENT, INSTRUMENT OR AGREEMENT. BANK SHALL HAVE NO OBLIGATION TO
INVESTIGATE THE FACTUAL REPRESENTATIONS CONTAINED IN A DRAW
REQUEST.
WE HEREBY
ENGAGE WITH YOU THAT ALL DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF
THIS CREDIT WILL BE DULY HONORED IF DRAWN AND PRESENTED FOR PAYMENT AT THE
OFFICES SPECIFIED ABOVE ON OR BEFORE THE EXPIRATION DATE OF THIS LETTER OF
CREDIT.
EXCEPT SO
FAR AS OTHERWISE EXPRESSLY STATED, THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS
AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF
COMMERCE PUBLICATION NO. 500 (THE "UCP 500”).
[SIGNATURE]
ANNEX
I
DATE:
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REF.
NO.
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AT
SIGHT OF THIS DRAFT
|
|
PAY
TO THE ORDER
OF US$
|
|
US
DOLLARS
|
|
DRAWN
UNDER BANK,
STANDBY LETTER OF CREDIT NUMBER NO.DATED
|
|
TO:
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(BENEFICIARY’S
NAME)
|
AUTHORIZED
SIGNATURE
|
ANNEX
II
DATE:
|
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TO:
|
RE:STANDBY
LETTER OF CREDIT
NO.ISSUED
BY
L/C
AMOUNT:
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LADIES
AND GENTLEMEN:
FOR VALUE
RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS
TO:
(NAME OF
TRANSFEREE)
(ADDRESS)
ALL
RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT
UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS
TRANSFER.
BY THIS
TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE
TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS
AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS,
WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING OR
HEREAFTER MADE ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO THE TRANSFEREE WITHOUT
NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED
BENEFICIARY.
THE
ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO
ENDORSE THE TRANSFER (IN THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE
TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.
SINCERELY,
|
(BENEFICIARY’S
NAME)
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SIGNATURE
OF BENEFICIARY
|
SIGNATURE
AUTHENTICATED
|
(NAME
OF BANK)
|
AUTHORIZED
SIGNATURE
|
EXHIBIT
I
PROPERTY
TITLE POLICY