Document:

Exhibit 10.1

 

77 CITYPOINT

WALTHAM, MASSACHUSETTS

 

LEASE DATED AS OF FEBRUARY 13th, 2008

 

THIS INSTRUMENT IS AN INDENTURE OF LEASE in which the Landlord and the
Tenant are the parties hereinafter named, and which relates to space in a
certain building (the “Building”) known as, and with an address at, 77
CityPoint, Waltham, Massachusetts.

 

The parties to this Indenture of Lease hereby agree with each other as
follows:

 

ARTICLE I

 

REFERENCE DATA

 

1.1           Subjects Referred To

 

Each reference in this Lease to any of the following subjects shall be
construed to incorporate the data stated for that subject in this Article:

 

	
   

  	
  Landlord:

  	
   

  	
  BP Fourth Avenue, L.L.C., 

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Landlord’s Original Address

  	
   

  	
  c/o Boston Properties Limited Partnership

  Prudential Tower

  800 Boylston Street, Suite 1900

  Boston, MA 02199-8103

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Landlord’s Construction Representative:

  	
   

  	
  Jon Randall or Ben Lavery

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tenant:

  	
   

  	
  Phase Forward, Inc., a Delaware

  corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s Original Address:

  	
   

  	
  880 Winter Street

  Waltham, MA

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s Construction Representative:

  	
   

  	
  John Pilkington at A/E/C Solutions

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Interim Plans Date:

  	
   

  	
  March 14, 2008

  

 

1

 

	
   

  	
  Tenant Plans Date:

  	
   

  	
  April 18, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Long Lead Item Release Date:

  	
   

  	
  May 2, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorization to Proceed Date:

  	
   

  	
  May 16, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Estimated Commencement Date:

  	
   

  	
  December 1, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Commencement Date:

  	
   

  	
  As defined in Section 2.4.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Outside Completion Date:

  	
   

  	
  June 1, 2009

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rent Commencement Date:

  	
   

  	
  Three (3) months after the Commencement Date.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Estimated Rent Commencement Date:

  	
   

  	
  March 1, 2009

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Term (Sometimes Called the “Original Term”):

  	
   

  	
  The period commencing on the Commencement Date and expiring on the
  last day of the one hundred twentieth (120th) calendar month after
  the Rent Commencement Date (plus the partial month, if any, immediately
  following the Commencement Date) (“Expiration Date”), unless extended or
  sooner terminated as provided in this Lease.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Extension Options:

  	
   

  	
  Two (2) periods of five (5) years each as provided in and
  on the terms set forth in Section 8.20 hereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Site:

  	
   

  	
  That certain parcel of land known as and numbered 77 Fourth Avenue,
  Waltham, Middlesex County, Massachusetts, being more particularly described
  in Exhibit A attached hereto.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Building:

  	
   

  	
  The Building known as and numbered 77 CityPoint, Waltham,
  Massachusetts.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premises A:

  	
   

  	
  The entire second (2nd), third (3rd) and sixth
  (6th) floors of the Building and certain portions of the first (1st)
  and fourth (4th) floors of the Building, all as shown on the floor
  plans annexed hereto as Exhibit D-1 and incorporated herein by
  reference.

  

 

2

 

	
   

  	
  Premises B:

  	
   

  	
  A portion of the first (1st) floor of the Building, as
  shown on the floor plan annexed hereto as Exhibit D-2 and incorporated
  herein by reference.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premises C:

  	
   

  	
  A portion of the fourth (4th) floor of the Building, as
  shown on the floor plan annexed hereto as Exhibit D-3 and incorporated
  herein by reference.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premises:

  	
   

  	
  Premises A, Premises B and Premises C, collectively (it being
  understood and agreed that wherever in this Lease the term “Premises” is
  used, it shall be deemed to refer to Premises A, Premises B and Premises C
  collectively and not to any of the foregoing spaces independently, unless the
  applicable language specifically and expressly indicates that the reference
  is intended to be made to one of the foregoing independently).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Number of Parking Spaces:

  	
   

  	
  To be provided at the rate of 3.4 spaces per 1,000 of Rentable Floor
  Area of the Premises, subject to the terms and conditions of
  Section 2.2.1 below.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premises A Annual Fixed Rent:

  	
   

  	
  (a) For Lease Years one (1) through five (5), at the annual
  rate of $5,921,800.50 (being the product of (x) $39.50 and (y) the
  “Rentable Floor Area of Premises A” (as hereinafter defined in this
  Section 1.1)), provided, however, that Premises A Annual Fixed Rent
  shall not commence until the Rent Commencement Date (as hereinabove defined
  in this Section 1.1).

  (b) For Lease Years six (6) through ten (10), at the annual
  rate of $6,521,476.50 (being the product of (x) $43.50 and (y) the
  Rentable Floor Area of Premises A).

  (c) During the extension option periods (if exercised), as
  determined pursuant to Section 8.20.

  

 

3

 

	
   

  	
  Premises B Annual Fixed Rent:

  	
   

  	
  (a) For Lease Years one (1) through five (5), at the annual
  rate of $180,400.50 (being the product of (x) $41.50 and (y) the
  “Rentable Floor Area of Premises B” (as hereinafter defined in this
  Section 1.1)), provided, however, that Premises B Annual Fixed Rent
  shall not commence until the Rent Commencement Date (as hereinabove defined
  in this Section 1.1). 

  (b) For Lease Years six (6) through ten (10), at the annual
  rate of $197,788.50 (being the product of (x) $45.50 and (y) the
  Rentable Floor Area of Premises B). 

  (c) During the extension option periods (if exercised), as
  determined pursuant to Section 8.20.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Premises C Annual Fixed Rent:

  	
   

  	
  (a) For Lease Years one (1) through five, at the annual
  rate of $477,972.00 (being the product of (x) $44.00 and (y) the
  “Rentable Floor Area of Premises C” (as hereinafter defined in this
  Section 1.1)), provided, however, that Premises C Annual Fixed Rent
  shall not commence until the Rent Commencement Date (as hereinabove defined
  in this Section 1.1).

  (b) For Lease Years six (6) through ten (10), at the annual
  rate of $521,424.00 (being the product of (x) $48.00 and (y) the
  Rentable Floor Area of Premises C). 

  (c) During the extension option periods (if exercised), as
  determined pursuant to Section 8.20.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Fixed Rent:

  	
   

  	
  The sum of Premises A Annual Fixed Rent, Premises B Annual Fixed Rent
  and Premises C Annual Fixed Rent (it being understood and agreed that
  wherever in this Lease the term “Annual Fixed Rent” is used, it shall be
  deemed to refer to Premises A Annual Fixed Rent, Premises B 

  

 

4

 

	
   

  	
   

  	
   

  	
  Annual Fixed Rent and Premises C Annual Fixed Rent collectively and
  not to any of the foregoing rental amounts independently, unless the
  applicable language specifically and expressly indicates that the reference
  is intended to be made to one of the foregoing independently).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Lease Year:

  	
   

  	
  For purposes hereof, “Lease Year” shall mean a twelve-(12)-month
  period beginning on the Rent Commencement Date or an anniversary of the Rent
  Commencement Date, provided, however, that (i) the first Lease Year
  shall include the period from the Commencement Date through the Rent
  Commencement Date (notwithstanding that this will result in a Lease Year
  containing more than twelve (12) months) and (ii) if the Rent
  Commencement Date does not fall on the first day of a calendar month, then
  the first Lease Year shall begin on the Commencement Date and end on the last
  day of the month containing the first anniversary of the Rent Commencement
  Date, and each succeeding Lease Year shall begin on the day following the
  last day of the prior Lease Year.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Base Operating Expenses:

  	
   

  	
  Landlord’s Operating Expenses (as hereinafter defined in
  Section 2.6) for calendar year 2009 (being January 1, 2009 through
  December 31, 2009).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Base Taxes:

  	
   

  	
  Landlord’s Tax Expenses (as hereinafter defined in Section 2.7),
  representing a fully-assessed building (which will be determined in
  conjunction with the Waltham Tax Assessor’s Office), for fiscal tax year 2010
  (being July 1, 2009 through June 30, 2010); provided that in the
  event that certificates of occupancy have not been authorized for issuance
  for both the Base Building Work and the Tenant Improvement Work by
  December 31, 2008

  

 

5

 

	
   

  	
   

  	
   

  	
  (unless either of the same have not been so authorized as the result
  of a Tenant Delay, as defined in Section 3.2(B) below), or the tax
  assessment for fiscal tax year 2010 is otherwise discounted by the Waltham
  tax assessor due to Tenant not having been in occupancy of the Premises
  (provided Tenant moves in within thirty (30) days following the Substantial
  Completion Date), then Base Taxes shall be Landlord’s Tax Expenses,
  representing a fully-assessed building, for the fiscal tax year next
  following the first January 1 after such certificate of occupancy is
  issued. By way of example only, if the applicable certificate of occupancy is
  issued on February 15, 2009, then Base Taxes shall be based upon fiscal
  tax year 2011, which begins on July 1, 2010, and which therefore is the
  first fiscal tax year next following the first January 1 after the
  certificate of occupancy is issued (being January 1, 2010).
  Notwithstanding the foregoing, in no event shall the Base Taxes be less than
  the average taxes, on a per square foot basis, for the fiscal year on which
  the Base Taxes are computed for the following properties in Waltham,
  Massachusetts: 201 Jones Road, 230 CityPoint, and 200 West Street.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tenant Electricity:

  	
   

  	
  Initially as provided in Section 2.5 subject to adjustment as
  provided in Section 2.8.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Additional Rent:

  	
   

  	
  All charges and other sums payable by Tenant as set forth in this
  Lease, in addition to Annual Fixed Rent.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rentable Floor Area of Premises A:

  	
   

  	
  149,919 square feet, subject to the provisions of Section 2.1
  hereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rentable Floor Area of Premises B:

  	
   

  	
  4,347 square feet, subject to the provisions of Section 2.1
  hereof.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rentable Floor Area of Premises C:

  	
   

  	
  10,863 square feet, subject to the provisions of Section 2.1
  hereof.

  

 

6

 

	
   

  	
  Rentable Floor Area of the Premises:

  	
   

  	
  165,129 square feet (being the sum of the Rentable Floor Area of
  Premises A, the Rentable Floor Area of Premises B and the Rentable Floor Area
  of Premises C), subject to the provisions of Section 2.1 hereof (it
  being understood and agreed that wherever in this Lease the term “Rentable
  Floor Area of the Premises” is used, it shall be deemed to refer to the
  Rentable Floor Area of Premises A, the Rentable Floor Area of Premises B and
  the Rentable Floor Area of Premises C collectively and not to any of the
  foregoing rentable floor areas independently, unless the applicable language
  specifically and expressly indicates that the reference is intended to be
  made to one of the foregoing independently).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total Rentable Floor Area of the Building:

  	
   

  	
  Agreed to contain 209,707 square feet.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Permitted Use:

  	
   

  	
  General office purposes and uses ancillary thereto (such as
  kitchenettes, executive bathrooms, server rooms, etc.) as from time to time
  permitted under the Zoning By-Law for the City of Waltham.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Initial Minimum Limits of Tenant’s Commercial General Liability:

  	
   

  	
  $10,000,000.00 combined single limit per occurrence on a per location
  basis, which can be achieved through a combination of primary and umbrella
  liability coverage.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Broker(s):

  	
   

  	
  DTZ FHO Partners One International Place Boston, MA 02110

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Security Deposit:

  	
   

  	
  $961,980.25 subject to and in accordance with the provisions of
  Section 8.21 below.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Guarantor:

  	
   

  	
  None.

  

 

1.2           Exhibits

 

There are incorporated as part of this Lease:

 

7

 

	
   

  	
  Exhibit A

  	
   

  	
  Description of Site

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B-1

  	
   

  	
  Base Building Plans and Specifications

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B-2

  	
   

  	
  Base Building Enhancements

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B-3

  	
   

  	
  Interim Plan Requirements

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B-4

  	
   

  	
  Tenant Plan and Working Drawing Requirements

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B-5

  	
   

  	
  Pre-Approved General Contractors

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit C

  	
   

  	
  Landlord’s Services

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D-1

  	
   

  	
  Premises A Floor Plan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D-2

  	
   

  	
  Premises B Floor Plan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D-3

  	
   

  	
  Premises C Floor Plan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit E

  	
   

  	
  Form of Declaration Fixing Specific Dates

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit F

  	
   

  	
  Form of Lien Waivers

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit G

  	
   

  	
  Form of Letter of Credit

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit H

  	
   

  	
  Broker Determination of Annual Market Rent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit I-1

  	
   

  	
  Impact Signage Conceptual Plan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit I-2

  	
   

  	
  Monument Sign Conceptual Plan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit I-3

  	
   

  	
  Building Signage Conceptual Plan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit J

  	
   

  	
  Roof Location for Emergency Generator

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit K

  	
   

  	
  CityPoint Project

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Exhibit L

  	
   

  	
  Form of Notice of Lease

  

 

1.3           Table of Articles
and Sections

 

	
   

  	
  ARTICLE I

  	
   

  	
  1

  
	
   

  	
  Reference
  Data

  	
   

  	
  1

  
	
   

  	
  1.1

  	
  Subjects Referred To

  	
  1

  
	
   

  	
  1.2

  	
  Exhibits

  	
  7

  
							

 

8

 

	
   

  	
  1.3

  	
  Table of Articles and Sections

  	
  8

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE II

  	
   

  	
  11

  
	
   

  	
  Building,
  Premises, Term and Rent

  	
   

  	
  11

  
	
   

  	
  2.1

  	
  The Premises

  	
  11

  
	
   

  	
  2.2

  	
  Rights to Use Common Facilities

  	
  18

  
	
   

  	
  2.3

  	
  Landlord’s Reservations

  	
  23

  
	
   

  	
  2.4

  	
  Habendum

  	
  23

  
	
   

  	
  2.5

  	
  Fixed Rent and Electricity Payments

  	
  23

  
	
   

  	
  2.6

  	
  Operating Expenses

  	
  24

  
	
   

  	
  2.7

  	
  Real Estate Taxes

  	
  34

  
	
   

  	
  2.8

  	
  Tenant Electricity

  	
  37

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE III

  	
   

  	
  40

  
	
   

  	
  Construction

  	
   

  	
  40

  
	
   

  	
  3.1

  	
  Base Building Work; Base Building
  Enhancements

  	
  40

  
	
   

  	
  3.2

  	
  Tenant Improvement Work

  	
  40

  
	
   

  	
  3.3

  	
  Substantial Completion

  	
  49

  
	
   

  	
  3.4

  	
  Tenant’s Remedies Based on Delays in
  Landlord’s Work

  	
  52

  
	
   

  	
  3.5

  	
  Quality and Performance of Work

  	
  53

  
	
   

  	
  3.6

  	
  Landlord’s Contribution; Tenant Plan Excess
  Costs

  	
  55

  
	
   

  	
  3.7

  	
  Arbitration

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE IV

  	
   

  	
  57

  
	
   

  	
  Landlord’s
  Covenants; Interruptions and Delays

  	
  57

  
	
   

  	
  4.1

  	
  Landlord Covenants

  	
  57

  
	
   

  	
  4.2

  	
  Interruptions and Delays in Services and
  Repairs, Etc.

  	
  61

  
	
   

  	
  4.3

  	
  Landlord’s
  Insurance

  	
  63

  
	
   

  	
  4.4

  	
  Landlord’s Indemnity

  	
  64

  
	
   

  	
  4.5

  	
  Leasing Restriction

  	
  64

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE V

  	
   

  	
  65

  
	
   

  	
  Tenant’s Covenants

  	
   

  	
  65

  
	
   

  	
  5.1

  	
  Payments

  	
  65

  
	
   

  	
  5.2

  	
  Repair and Yield Up

  	
  65

  
	
   

  	
  5.3

  	
  Use

  	
  66

  
	
   

  	
  5.4

  	
  Obstructions; Items Visible From Exterior;
  Rules and Regulations

  	
  68

  
	
   

  	
  5.5

  	
  Safety Appliances

  	
  68

  
	
   

  	
  5.6

  	
  Assignment; Sublease

  	
  68

  
	
   

  	
  5.7

  	
  Indemnity; Insurance

  	
  77

  
	
   

  	
  5.8

  	
  Personal Property at Tenant’s Risk

  	
  78

  
	
   

  	
  5.9

  	
  Right of Entry

  	
  79

  
	
   

  	
  5.10

  	
  Floor Load; Prevention of Vibration and
  Noise

  	
  79

  
	
   

  	
  5.11

  	
  Personal Property Taxes

  	
  79

  
	
   

  	
  5.12

  	
  Compliance with Laws

  	
  80

  
	
   

  	
  5.13

  	
  Payment of Litigation Expenses

  	
  80

  
	
   

  	
  5.14

  	
  Alterations

  	
  80

  
																	

 

9

 

	
   

  	
  5.15

  	
  Vendors

  	
  84

  
	
   

  	
  5.16

  	
  Patriot Act

  	
  84

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VI

  	
   

  	
  85

  
	
   

  	
  Casualty and
  Taking

  	
   

  	
  85

  
	
   

  	
  6.1

  	
  Damage Resulting from Casualty

  	
  85

  
	
   

  	
  6.2

  	
  Uninsured Casualty

  	
  87

  
	
   

  	
  6.3

  	
  Rights of Termination for Taking

  	
  88

  
	
   

  	
  6.4

  	
  Award

  	
  89

  
	
   

  	
  6.5

  	
  Allocation of Proceeds Following
  Termination

  	
  90

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VII

  	
   

  	
  91

  
	
   

  	
  Default

  	
   

  	
  91

  
	
   

  	
  7.1

  	
  Tenant’s Default

  	
  91

  
	
   

  	
  7.2

  	
  Landlord’s Default

  	
  95

  
	
   

  	
   

  	
   

  
	
   

  	
  ARTICLE VIII

  	
   

  	
  95

  
	
   

  	
  Miscellaneous
  Provisions

  	
  95

  
	
   

  	
  8.1

  	
  Extra Hazardous Use

  	
  95

  
	
   

  	
  8.2

  	
  Waiver

  	
  95

  
	
   

  	
  8.3

  	
  Cumulative Remedies

  	
  96

  
	
   

  	
  8.4

  	
  Quiet Enjoyment

  	
  96

  
	
   

  	
  8.5

  	
  Notice to Mortgagee and Ground Lessor

  	
  97

  
	
   

  	
  8.6

  	
  Assignment of Rents

  	
  97

  
	
   

  	
  8.7

  	
  Surrender

  	
  98

  
	
   

  	
  8.8

  	
  Brokerage

  	
  98

  
	
   

  	
  8.9

  	
  Invalidity of Particular Provisions

  	
  98

  
	
   

  	
  8.10

  	
  Provisions Binding, Etc.

  	
  99

  
	
   

  	
  8.11

  	
  Recording; Confidentiality

  	
  99

  
	
   

  	
  8.12

  	
  Notices

  	
  99

  
	
   

  	
  8.13

  	
  When Lease Becomes Binding

  	
  100

  
	
   

  	
  8.14

  	
  Section Headings

  	
  101

  
	
   

  	
  8.15

  	
  Rights of Mortgagee

  	
  101

  
	
   

  	
  8.16

  	
  Status Reports and Financial Statements

  	
  102

  
	
   

  	
  8.17

  	
  Self-Help

  	
  102

  
	
   

  	
  8.18

  	
  Holding Over

  	
  104

  
	
   

  	
  8.19

  	
  Non-Subrogation

  	
  104

  
	
   

  	
  8.20

  	
  Extension Option

  	
  105

  
	
   

  	
  8.21

  	
  Security Deposit

  	
  107

  
	
   

  	
  8.22

  	
  Late Payment

  	
  108

  
	
   

  	
  8.23

  	
  Tenant’s Payments

  	
  109

  
	
   

  	
  8.24

  	
  Waiver of Trial By Jury

  	
  109

  
	
   

  	
  8.25

  	
  Governing Law

  	
  109

  
	
   

  	
  8.26

  	
  Tenant’s Equipment

  	
  109

  
	
   

  	
  8.27

  	
  Building Amenities

  	
  113

  
	
   

  	
  8.28

  	
  Emergency Generator

  	
  113

  
	
   

  	
  8.29

  	
  Neighborhood
  Utilities and Telecommunications Lines

  	
  116

  
													

 

10

 

	
   

  	
  8.30

  	
  Waiver of Landlord’s Lien

  	
  117

  
	
   

  	
  8.31

  	
  Arbitration

  	
  117

  

 

ARTICLE II

 

BUILDING, PREMISES, TERM AND RENT

 

2.1           The Premises

 

Landlord hereby demises and leases to Tenant, and Tenant hereby hires
and accepts from Landlord, the Premises in the Building excluding exterior
faces of exterior walls, the common stairways and stairwells, elevators and
elevator wells, fan rooms, electric and telephone closets, janitor closets,
elevator vestibules, and pipes, ducts, conduits, wires and appurtenant fixtures
serving exclusively or in common other parts of the Building and if the Premises
includes less than the entire rentable area of any floor, excluding the common
corridors, elevator lobbies and toilets located on such floor. Tenant shall
have the non-exclusive right to use the loading areas, fan rooms, janitorial,
electrical, telephone and telecommunications closets, conduits, risers, shafts,
plenum  spaces and elevators serving such
Building, subject, however, to the extent Tenant is given prior written notice
thereof, Landlord’s reasonable rules and regulations relative to the
access to and use of such spaces.

 

The term “Building” means the Building identified on the first page,
and which is the subject of this Lease; the term “Site” means all, and also any
part of the land described in Exhibit A, plus any additions or reductions
thereto resulting from the change of any abutting street line and all parking
areas and structures from time to time located on the Site. The term “Property”
means the Building and the Site.

 

2.1.1        Tenant’s Continuing
Right of First Offer

 

(A)          For the period commencing on the first day of
the nineteenth (19th) full calendar month immediately following the
date of this Lease and continuing throughout the Lease Term, on the conditions
(which conditions Landlord may waive by written notice to Tenant at any time),
that as of both the time that any portion of the RFO Premises (as hereinafter
defined) becomes available for reletting (as hereinafter defined) and as of the
commencement date of Tenant’s leasing of such portion of the RFO Premises: (i) Tenant
directly leases from Landlord at least 113,000 square feet of rentable floor
area, (ii) no monetary or other material Event of Default of Tenant exists
and there have been no more than two (2) monetary or other material Event
of Default occurrences during the Lease Term, (iii) this Lease is still in
full force and effect, and (iv) Tenant has neither assigned this Lease nor
sublet more than twenty-five percent (25%) of the rentable floor area then
leased by Tenant (except for an assignment or sublease under Section 5.6.1
below and except for the Initial Second Floor Subleases, as that term is
defined in Section 5.6.6 below), Tenant shall have a right of first offer 

 

11

 

(“Right of First Offer”) to lease the RFO
Premises, as hereinafter defined.

 

For the purposes hereof, the “RFO Premises” shall be defined as any and
all space in the Building as and when such space becomes available for
reletting (as hereinafter defined).

 

(B)           When
any portion of the RFO Premises becomes available for reletting, as hereinafter
defined, Landlord shall notify Tenant (“Landlord’s RFO Premises Notice”) of the
availability of such space, which notice shall contain the size, configuration,
location and date of availability of such RFO Premises (which such date of
availability shall be (x) the day immediately following the date on which
the lease term of the then-current tenant of the RFO Premises expires, in the
event the RFO Premises becomes available as the result of a lease expiration,
or (y) ninety (90) days following the date of Landlord’s RFO Premises
Notice, in the event the RFO Premises becomes available as the result of a
termination of the existing lease prior to its scheduled expiration date), the
Annual Market Rent, and the other business terms upon which Landlord is willing
to so lease such space.  The net
effective rental rate set forth in Landlord’s RFO Premises Notice expressed by
the (i) Annual Market Rent for the RFO Premises quoted by Landlord, (ii) amount
of Base Taxes and Base Operating Expenses, (iii) free rent or “build-out”
period, if any, after the commencement of the lease term, (iv) tenant
improvement allowance, if any, and (v) length of the lease term, shall
hereinafter be referred to as “Landlord’s Offered Rental Terms.”

 

For the purposes hereof:

 

(1)           The “Annual Market Rent” shall be the annual
fair market rent for such space as of the date when the same becomes available
for reletting, based upon the use of such space as first class office space
utilizing properties of similar class and character within the Market Area
(which for the purposes of this Lease shall be defined as Waltham, South
Lexington, Needham, Newton and Wellesley).

 

(2)           Subject to the provisions of the immediately
following paragraph, RFO Premises shall be deemed “available for reletting”
when Landlord reasonably determines, subject to the provisions of the next
paragraph of this subsection (B), that the then current tenant or occupant of
the RFO Premises will vacate the RFO Premises at the expiration or earlier
termination of such tenant’s lease.

 

In connection
with the foregoing, Tenant acknowledges and agrees that Tenant’s Right of First
Offer shall be subject and subordinate to the existing extension rights of
Administaff Client Services, L.P. and Pittiglio, Rabin, Todd & McGrath, Inc.
(“PRTM”) (the “Existing Tenants”) under the terms of their existing leases with
Landlord in effect as of the date of this Lease (the “Existing Leases”).   Landlord agrees that it shall not have the
right to amend either of the Existing 

 

12

 

Leases to
provide the Existing Tenants with additional extension or expansion rights
unless such rights are subordinate to Tenant’s Right of First Offer; provided,
however, that notwithstanding the foregoing, if either of the Existing Tenants
shall fail to exercise any extension option within the applicable time period
for exercise set forth in its Existing Lease, Landlord shall nonetheless have
an additional period of seven (7) business days beyond the extension
exercise deadline in its lease as aforesaid within which to receive and honor
an extension exercise by such Existing Tenant of its Existing Lease before the
portion of the ROFO Premises leased by such Existing Tenant shall be deemed available
for reletting hereunder (it being expressly understood and agreed that (x) Landlord
shall have no right to provide either of the Existing Tenants with extension or
renewal rights beyond those provided to such Existing Tenants in their Existing
Leases  prior to the date hereof, without
first providing Tenant with an opportunity to exercise its Right of First Offer
hereunder and (y) the foregoing shall not preclude Landlord from providing
additional extension options to either the Existing Tenants or any future
tenant of RFO Premises in the event that Tenant has either declined or failed
to timely exercise its Right of First Offer with respect to the portion of the
RFO Premises at issue, whether or not such extension options are granted in the
original lease documents executed by such tenants after Tenant has passed on
such RFO Premises or in documents executed at a later date).

 

(C)           If Tenant wishes to exercise Tenant’s Right
of First Offer, Tenant shall do so, if at all, by giving Landlord notice (“Tenant’s
RFO Exercise Notice”) within ten (10) business days after receipt of
Landlord’s RFO Premises Notice.  Tenant’s
RFO Exercise Notice shall specify:

 

(i)            whether
or not Tenant disputes that the Annual Fixed Rent set forth in Landlord’s RFO
Premises Notice is the Annual Market Rent; and

 

(ii)           whether
it shall be leasing the RFO Premises for (1) the lease term specified in
Landlord’s RFO Premises Notice or (2) a lease term that is coterminous
with the Term of this Lease with respect to the original Premises (it being
understood and agreed that if less than thirty-six (36) months then remain in
the Lease Term at the time Tenant delivers the Tenant’s RFO Exercise Notice and
Tenant desires that the lease term with respect to the RFO Premises be
coterminous with the Lease Term with respect to the original Premises and if
such period is shorter than the lease term offered in Landlord’s RFO Premises
Notice, Tenant must simultaneously exercise its extension option under Section 8.20
with its exercise of its rights under this Section 2.1.1 and that if no
such extension option is then available to Tenant then the term with respect to
the RFO Premises shall automatically be as specified in Landlord’s RFO Premises
Notice) (the lease term as determined under 

 

13

 

subsection (1) or (2) being
hereinafter referred to as the “Designated RFO Lease Term”).

 

(D)          (1)           If
Tenant shall give Tenant’s RFO Exercise Notice that does not indicate a Rent
Dispute, the same shall constitute an agreement to lease the RFO Premises upon
all of the same terms and conditions in this Lease, except (i) to the
extent inconsistent with the provisions of this Section 2.1.1, (ii) to
the extent inconsistent with Landlord’s Offered Rental Terms and (iii) that
the Annual Fixed Rent shall be the amount specified in Landlord’s RFO Premises
Notice.  Although such agreement to lease
the RFO Premises shall be self-executing and binding on Tenant upon delivery of
Tenant’s RFO Exercise Notice, Landlord and Tenant shall exercise commercially
reasonable good faith efforts to enter into an instrument in writing
memorializing such leasing of the RFO Premises within sixty (60) days after
Landlord’s submission to Tenant of an amendment therefor and provided such
amendment is limited in scope to modifications of the Lease necessary to
memorialize Tenant’s lease of the RFO Premises.

 

                (2)           If
Tenant shall give Tenant’s RFO Exercise Notice that does indicate a Rent
Dispute, the parties shall negotiate in good faith for a period of twenty (20)
days (“Negotiation Period”) to reach agreement on the Annual Fixed Rent.  If the parties reach such agreement within
the Negotiation Period, then the same shall constitute an agreement to lease
the RFO Premises upon all of the same terms and conditions in this Lease,
except (i) to the extent inconsistent with the provisions of this Section 2.1.1,
(ii) to the extent inconsistent with the Landlord’s Offered Rental Terms
and (iii) that the Annual Fixed Rent shall be the amount so agreed to by
the parties pursuant to paragraph (3) below or by broker determination
pursuant to paragraph (4) below, as applicable.   Although such agreement to lease the RFO
Premises shall be self-executing and binding on Tenant upon the agreement of
the parties during the Negotiation Period upon the Annual Fixed Rent, Landlord
and Tenant shall exercise commercially reasonable good faith efforts to enter
into an instrument in writing memorializing such leasing of the RFO Premises
within sixty (60) days after Landlord’s submission to Tenant of an amendment
therefor and provided such amendment is limited in scope to modifications of
the Lease necessary to memorialize Tenant’s lease of the RFO Premises.

 

                (3)           If
Tenant shall give Tenant’s RFO Exercise Notice that does indicate a Rent
Dispute, and the parties do not reach agreement on the Annual Fixed Rent during
the Negotiation Period, then Tenant shall have the right, for a period of five (5) business
days after the expiration of the Negotiation Period, (i) to deliver to Landlord
a notice (“Tenant’s Rescission Notice”) rescinding Tenant’s RFO Exercise
Notice, or (ii) to deliver to Landlord a request (“Broker Determination
Request”) for a broker determination of Annual Market Rent in accordance with
the provisions of Section 8.20 and Exhibit H hereof.

 

(4)           If Tenant shall timely deliver the Broker
Determination Request, 

 

14

 

then the same shall constitute an agreement to lease the RFO Premises
upon all of the same terms and conditions in this Lease, except (i) to the
extent inconsistent with the provisions of this Section 2.1.1, (ii) to
the extent inconsistent with the Landlord’s Offered Rental Terms and (iii) that
the Annual Fixed Rent shall be the Annual Market Rent as determined by the
broker determination; and although such agreement shall be self-executing and
binding on Tenant upon delivery of the Broker Determination Request, Landlord
and Tenant shall exercise commercially reasonable good faith efforts to enter
into an instrument in writing memorializing such leasing of the RFO Premises
within sixty (60) days after Landlord’s submission to Tenant of an amendment
therefor and provided such amendment is limited in scope to modifications of
the Lease necessary to memorialize Tenant’s lease of the RFO Premises.

 

(5)           If Tenant timely gives Tenant’s Rescission
Notice, then Tenant’s RFO Exercise Notice shall be of no further force and
effect, and the provisions of subsection (E) below shall apply.

 

(6)           If Tenant fails to timely give either a
Tenant’s Rescission Notice or a Broker Determination Request, Tenant shall be
deemed to have given a Tenant’s Rescission Notice.

 

(E)           If
Tenant shall not timely exercise its rights under this Section 2.1.1 with
respect to the RFO Premises designated in Landlord’s RFO Premises Notice,
Landlord shall be free to lease such RFO Premises to any party.  If during the Term said RFO Premises again
becomes available for reletting, Landlord shall again offer to lease such RFO
Premises to Tenant pursuant to the provisions of this Section 2.1.1 and
the terms of this Section shall continue to apply to such RFO Premises.

 

If, prior to the time that Landlord leases any portion of the RFO
Premises which had previously been offered to Tenant pursuant to this Section 2.1.1
but with respect to which Tenant had declined or otherwise failed to timely
exercise its Right of First Offer (such portion of the RFO Premises being
hereinafter referred to as the “Declined RFO Premises”), Landlord and Tenant
shall subsequently agree that such Declined RFO Premises shall be leased to
Tenant (it being understood and agreed that Landlord shall be under no
obligation to re-offer such space to Tenant and Tenant shall be under no
obligation to lease such space from Landlord), Tenant shall be entitled to
require that the Annual Fixed Rent for such Declined RFO Premises be determined
by the broker determination process in the same manner as if Tenant had elected
to exercise its Right of First Offer when the Declined RFO Premises was initially
offered to Tenant by Landlord.

 

(F)           If
Tenant shall timely exercise its rights under this Section 2.1.1 with
respect to the RFO Premises designated in Landlord’s RFO Premises Notice and
if, thereafter, the then occupant of the RFO Premises with respect to which
Tenant shall have so exercised such right wrongfully fails to deliver
possession of such 

 

15

 

premises at the time when its tenancy is scheduled to expire, Landlord
shall use reasonable efforts and due diligence (which shall be limited to the
commencement and prosecution of an eviction proceeding within sixty (60) days
after the date on which the hold-over commences, but shall not require the
taking of any appeal) to evict such occupant from such space and to recover
from such occupant any Hold-Over Premium (as defined below) payable by such
occupant. In such event, the commencement of the term of Tenant’s occupancy and
lease of such additional space shall, in the event of such holding over by such
occupant, be deferred until possession of the additional space is delivered to
Tenant. The failure of the then occupant of such premises to so vacate shall
not constitute a default or breach by Landlord and shall not give Tenant any
right to terminate this Lease or to deduct from, offset against or withhold
Annual Fixed Rent or Additional Rent (or any portions thereof); except that (i) if
such hold-over exceeds sixty (60) days, then Tenant may, within ten (10) business
days after such date, cancel the exercise of its option to lease such portion
of the RFO Premises by giving to Landlord a written cancellation notice (the
“Initial Cancellation Option”) and (ii) if Tenant does not exercise the
Initial Cancellation Option and such hold-over exceeds three hundred (300)
days, then Tenant may, within ten (10) business days after such date,
cancel the exercise of its option to lease such portion of the RFO Premises by
giving to Landlord a written cancellation notice (the “Subsequent Cancellation
Option”) (provided, however, that in the case of both the Initial Cancellation
Option and the Subsequent Cancellation Option, if Landlord delivers such RFO
Premises to Tenant on or before the date thirty (30) days after Landlord
receives such cancellation notice, such cancellation notice shall be void and
without further force or effect).

 

Alternatively, in lieu of exercising the Initial Cancellation Option
but without limitation of Tenant’s right to exercise the Subsequent
Cancellation Option, Tenant shall have the right to require Landlord to pay to
Tenant the net (i.e. net of the costs and expenses, including, attorneys’ fees,
incurred by Landlord in obtaining such Hold-Over Premium) amount of any
Hold-Over Premium received by Landlord from such hold-over occupant relative to
periods from and after the sixty-first (61st) day of any hold-over,
when and if Landlord receives any such payment; provided, however, that if
Tenant does exercise the Subsequent Cancellation Option, it shall, as a
condition precedent to the effectiveness of such Subsequent Cancellation
Option, pay to Landlord as Additional Rent an amount equal to fifty percent
(50%) of the net Hold-Over Premium paid by Landlord to Tenant through the date
of exercise of the Subsequent Cancellation Option. For the purposes hereof, the
term “Hold-Over Premium” shall be defined as the amount (if any) which a
hold-over occupant of any portion of the RFO Premises is required to pay to
Landlord in respect of its hold-over in the premises (whether characterized as
rent, damages, or use and occupation) in excess of the amount of fixed rent and
other charges which the tenant under whom such occupant claims would have been
required to pay to Landlord had the term of such tenant’s lease been extended
throughout the period of such hold-over at the same rental rate as such tenant
was required to pay during the last month of its tenancy.

 

16

 

In the event that Tenant elects to cancel its exercise of its option
hereunder as the result of a holding over by the existing occupant of the
applicable portion of the RFO Premises, such portion of the RFO Premises will
not be deemed available for reletting until the space has thereafter initially
been leased to a third party, unless Landlord failed to comply with its
obligations to use reasonable efforts and due diligence to evict the existing
occupant as set forth in and limited by this Section 2.1.1(F) (in
which event Landlord shall be required to re-offer the RFO Premises to Tenant
prior to leasing the same to a third party).

 

(G)           Time is of the essence of this Section 2.1.1
and the rights granted to Tenant under this Section 2.1.1 are continuous
to be effective from time to time as and when Landlord shall determine that any
RFO Premises will become available for reletting and said rights may become
effective more than once during the Term.

 

(H)          Upon
Tenant’s written request made no more than twice in any calendar year during
the Lease Term, Landlord shall provide Tenant with written updates of the expected
availability of the leaseable areas in the Building and any buildings within
the CityPoint Project then owned by Landlord or its affiliates; provided,
however, that Landlord’s failure to provide such updates shall in no way be
deemed to be a default of Landlord under this Lease or otherwise give rise to
any liability on Landlord’s part unless such failure was in bad faith.

 

2.1.2        Tenant’s
Contraction Option.

 

Tenant shall have the one-time option of surrendering a portion of the
Premises consisting of the entirety of the sixth (6th) floor of the
Building (the “Reduction Premises”) and containing 36,174 square feet of
Rentable Floor Area (the “Rentable Floor Area of the Reduction Premises”). If
Tenant shall desire to surrender the Reduction Premises, Tenant shall provide
notice to Landlord its election to reduce the size of the Premises no later
than the end of the fourth (4th) Lease Year and such reduction shall
be effective as of the end of the fifth (5th) Lease Year (the
“Surrender Date”). As of the Surrender Date, (i) Tenant shall vacate the
Reduction Premises leaving the same in the condition required by this Lease
upon the expiration or earlier termination of the Lease Term, (ii) the
Reduction Premises shall be removed from the Premises demised to Tenant under
the Lease, (iii) the “Rentable Floor Area of the Premises” shall be
reduced by the Rentable Floor Area of the Reduction Premises and such reduced
Rentable Floor Area of the Premises shall be used for purposes of calculating
Annual Fixed Rent, Tenant’s Operating Expenses Payment, Tenant’s Tax Payment,
and Tenant’s Electricity Payment from and after the Surrender Date.

 

Prior to the Surrender Date Landlord and Tenant agree to execute an
appropriate amendment to this Lease to reflect the removal of the Reduction
Premises from the space demised from Landlord to Tenant under this Lease. In
addition, and as a

 

17

 

condition prerequisite to the reduction of the Premises, Tenant shall
deliver to Landlord on or before the Surrender Date an amount (the “Contraction
Fee”) equal to the Unamortized Part (as defined below) of Landlord’s
Transaction Costs (as defined below) in respect of the Reduction Premises. For
the purposes hereof:

 

(i)            The “Unamortized Part” shall mean the
amount which would remain unpaid as of the Surrender Date with respect to a
loan in an original amount equal to Landlord’s Transaction Costs incurred by
Landlord with respect to the Reduction Premises and which is amortized over the
Original Term at an interest rate of ten percent (10%) per annum and repaid
over the ten (10) year period commencing as of the Rent Commencement Date.

 

(ii)           “Landlord’s Transaction Costs” for the
Reduction Premises shall be equal to the sum of: (i) Landlord’s
Contribution in respect of the Reduction Premises, plus (ii) all brokerage
commissions incurred by Landlord in connection with the demise of the Reduction
Premises to Tenant (to be determined based upon a per square foot allocation of
Landlord’s overall brokerage commissions in connection with the execution of
this Lease).  Landlord shall, upon
request of Tenant, promptly after the amount of the Landlord’s Transaction Costs
has been determined, provide to Tenant a certified statement setting forth such
costs.

 

2.2           Rights to Use Common
Facilities

 

Subject to Landlord’s right to change or alter any of the following in
Landlord’s discretion as herein provided, Tenant shall have, as appurtenant to
the Premises, the non- exclusive right to use in common with others, subject to
reasonable rules of general applicability to tenants of the Building from
time to time made by Landlord of which Tenant is given notice (a) the
common lobbies, corridors, stairways, elevators, trash areas, parking areas,
loading areas, and other similar areas and facilities of the Building, and the
pipes, ducts, conduits, wires and appurtenant meters and equipment serving the
Premises in common with others, (b) common walkways and driveways
necessary for access to the Building, (c) if the Premises include less
than the entire rentable floor area of any floor, the common toilets, corridors
and elevator lobby of such floor, and (d) the Amenities set forth in Section 8.27
of this Lease (collectively, the “Common Areas”). No changes shall be made to
the Common Areas that would unreasonably interfere with Tenant’s access to or
use of the Premises for the purposes of this Lease or that would adversely
affect the quality of the Common Areas (including without limitation the
Amenities) serving the Building as of the Rent Commencement Date (subject to
the provisions of Section 8.27 below). 
Notwithstanding anything to the contrary herein, Landlord has no
obligation to allow any particular telecommunication service provider to have
access to the Building or to the Premises except as may be required by
applicable law and except that Landlord agrees to permit Verizon to have
telecommunications access to the Premises and the Building at no additional
charge for the purpose of providing telecommunications service to Tenant.
Except as otherwise expressly provided 

 

18

 

above, if Landlord permits such access, Landlord may condition such
access upon the payment to Landlord by the service provider of fees assessed by
Landlord in its reasonable discretion. Notwithstanding the foregoing, Landlord
will not unreasonably withhold, condition or delay its approval of any
telecommunications provider designated by Tenant to service the Premises, so
long as such provider is not utilizing the Site to provide service to third
parties other than Tenant.

 

Tenant shall have a non-exclusive right to use the fire stairwells in
the Building (the “Fire Stairs”) for the purpose of access between the floors
of the Building on which the Premises are located, at no additional rental
charge to Tenant, provided that (1) such use shall be permitted by, and at
all times be in accordance with, all applicable Legal Requirements (as that
term is defined in Section 3.4 below); and (2) Tenant shall comply
with all of Landlord’s reasonable rules and regulations adopted from time
to time with respect thereto. Tenant may, at its sole cost and expense, install
a key card locking system reasonably satisfactory to Landlord on all doors
between the Fire Stairs and the floors of the Premises and tie Tenant’s
security system into the Building security system, provided that in any event
such locking system must be configured in such a way so as to automatically
disengage in the event of an emergency. Tenant shall provide Landlord with a “master”
card key so that Landlord shall have access through each entry door. Tenant may
paint the Fire Stairs and install light fixtures therein and make such other
Alterations as Landlord shall approve, which approval shall be granted or
withheld in accordance with the terms of this Lease (provided, however, that
under no circumstances shall Tenant be entitled to install (x) carpeting
on the Fire Stairs or (y) lighting which does not meet the standards for
emergency lighting).

 

2.2.1        Tenant’s
Parking

 

(A)          Tenant
shall have the right, free of charge for the Term of this Lease, to use in the
parking areas on the Site throughout the Term the Number of Parking Spaces
(referred to in Section 1.1) for the parking of automobiles, in common
with use by other tenants from time to time of the Building, provided, however,
that Landlord shall not be obligated to furnish stalls or spaces on the Site
specifically designated for Tenant’s use (provided further that if Landlord
shall provide any other tenant in the Building with reserved parking spaces on
the Site, Landlord shall (i) offer Tenant reserved spaces on the same
basis as was provided to the other tenant, in proportion to the respective
rentable floor areas leased by Tenant and such other tenant, and (ii) so
long as Tenant occupies more rentable floor area in the Building that any other
tenant, give Tenant the first opportunity 
to select the location of its reserved parking spaces within the area(s) designated
by Landlord for reserved parking). In the event that the Rentable Floor Area of
the Premises increases or decreases at any time during the Lease Term, the
Number of Parking Spaces provided to Tenant hereunder shall be increased or
reduced proportionately (subject to the provisions of subsection (B) below)
in accordance with the parking ratio set forth in Section 1.1.

 

(B)           Tenant
has informed Landlord that Tenant may require parking at a ratio 

 

19

 

greater than the Number of Parking Spaces set forth in Section 1.1
(the “Original Parking Ratio”), and Landlord has estimated, based on projected
parking usage patterns, that the existing parking areas on the Site can
accommodate parking for up to 4.0 passenger vehicles per 1,000 square feet of
the Rentable Floor Area of the Premises initially demised to Tenant (the “Higher
Parking Ratio”). In connection with the foregoing, Tenant acknowledges that the
total number of actual parking spaces on the Site is sufficient to satisfy
parking at the Original Parking Ratio but not at the Higher Parking Ratio, and
that the availability of additional parking in an amount up to the Higher
Parking Ratio is dependent on the actual usage of the existing parking spaces
by the tenants of the Building. Landlord represents that Landlord has not
granted any other tenant or occupant of the Site the right to use parking
spaces in excess of the Original Parking Ratio, and that it will use
commercially reasonable efforts to enforce the terms and provisions of its
leases with other tenants of the Building in the event of any use by such
tenants of parking spaces in excess of the parking ratios provided to them. In
addition, Landlord shall not (i) grant any tenant or occupant at the Site
the right to use parking spaces serving the Building at a ratio in excess of
the Original Parking Ratio, (ii) voluntarily reduce the number of
available parking spaces at the Site unless expressly permitted in this Lease
or (iii) grant any other owners, occupants or users of the CityPoint
Project or other neighboring properties the right to park in the parking areas
on the Site (such as, by way of example only, using a portion of the parking
areas at the Site to satisfy any off-site parking obligations set forth in
another lease at the CityPoint Project or other development by Landlord or any
entity affiliated with Landlord), except to the extent that any of the
foregoing can be done without adversely impacting Tenant’s ability to utilize
the Higher Parking Ratio or causing a Parking Shortage (e.g., Landlord might be
permitted to provide a third party with the right to park on the Site during
off-peak hours or for a limited period of time, etc.)

 

Notwithstanding anything contained herein to the contrary (but subject
to provisions of the last sentence of the next paragraph of this subsection
(B)), Tenant shall not be deemed to be in default of its obligations under this
Lease if it shall utilize more than the Original Parking Ratio, so long as
Tenant does not exceed the Higher Parking Ratio; provided, however, that (x) the
right to utilize the Higher Parking Ratio shall be personal to Phase Forward, Inc.
(and any permitted assignee pursuant to Section 5.6.1) and shall not be
transferable to any assignee or subtenant and (y) in the event that the
size of the Premises shall increase at any time during the Term, Tenant shall
only be entitled to additional parking rights for such additional premises at
the Original Parking Ratio.

 

In the event that Tenant uses parking spaces in excess of the Original
Parking Ratio and such excess usage results in the existence of a Parking
Shortage (as defined in subsection (C) below), Landlord shall use
commercially reasonable efforts to (x) implement a managed parking program
for the parking areas on the Site (the “Managed Parking Program”) and/or (y) locate
additional parking areas in the vicinity of the Site and within the CityPoint
Project for use as satellite 

 

20

 

parking for the Building (the “Off-Site Parking”) (Landlord hereby
further agreeing to use commercially reasonable efforts to obtain Off-Site
Parking within such CityPoint Project as close to the Site as possible).  All costs associated with the Managed Parking
Program shall be payable by the tenants of the Building as part of Landlord’s
Operating Expenses under Section 2.6 below.  To the extent that Tenant is the sole user of
the Off-Site Parking and the sole cause of the Parking Shortage, all costs
associated therewith shall be payable by Tenant as Additional Rent within
thirty (30) days after receipt by Tenant of an invoice from Landlord therefore
(provided, however, that if Tenant is not the sole user of the Off-Site Parking,
or is not the sole cause of the Parking Shortage, then Tenant shall only be
required to pay its pro rata share of such costs as part of Landlord’s
Operating Expenses under Section 2.6 below).  Notwithstanding the foregoing, under no
circumstances shall Landlord be required to endeavor to obtain the Off-Site
Parking in the event of a Parking Shortage that occurs during the last three (3) years
of the Lease Term unless and until Tenant shall validly exercise its
then-current extension option under Section 8.20 below (it being
understood and agreed in connection with the foregoing that (x) Landlord
shall have no obligation to endeavor to obtain the Off-Site Parking in the
event that Tenant shall have no further rights to extend the Lease Term and (y) Landlord
shall nonetheless be required to use commercially reasonable efforts to
implement the Managed Parking Program to address the Parking Shortage
irrespective of the amount of time remaining in the Lease Term).

 

Tenant acknowledges and agrees that there may be a temporary disruption
in parking in connection with the conversion to a Managed Parking Program
and/or Off-Site Parking, and Tenant shall reasonably cooperate with Landlord
during such conversion (Landlord hereby agreeing to use commercially reasonable
efforts to minimize such disruption). 
Tenant further acknowledges and agrees that Landlord shall in no event
be deemed to be in default of its obligations under this Lease if it cannot
provide Tenant with parking in excess of the Original Parking Ratio, provided
that Landlord has used commercially reasonable efforts to implement the Managed
Parking Program and/or obtain the Off-Site Parking as set forth herein.  In addition, in the event there is a Parking
Shortage and Landlord has been unable to implement a Managed Parking Program
and/or provide Off-Site Parking despite the use of commercially reasonable
efforts as aforesaid, Landlord shall have the right to modify the configuration
of or access to the parking areas on the Site (e.g., by creating or designating
separate “pods” within the parking areas for parking by specific tenants) as
Landlord deems appropriate in its reasonable discretion to insure that Landlord
is able to fulfill its obligations under leases with other Building tenants and
Tenant to provide parking to such tenants and Tenant at the Original Parking
Ratio.  In the event that Landlord does
create separate “pods” as aforesaid, Landlord shall meet with Tenant beforehand
to discuss the proposed location(s) of such pods (Landlord hereby agreeing
to consult with Tenant in good faith regarding the location(s) of such
pods, provided that the final determination shall be made by Landlord in its
reasonable discretion).

 

21

 

(C)           For
the purposes hereof, a “Parking Shortage” shall be defined as a lack of
available parking spaces on the Site, as determined in accordance with the
following procedure:

 

(i)            In
the event that Landlord receives four (4) written complaints from tenants
of the Building (which shall include complaints by Tenant) over a period of two
(2) weeks indicating that they are unable to find parking spaces at the
Building, Landlord shall perform and complete a parking survey of the Site
within four (4) weeks of its receipt of the last such complaint.

 

(ii)           If
the parking survey indicates that fewer than seven (7) parking spaces on
the Site are available for tenant and visitor parking on more than four (4) Business
Days over a period of two (2) weeks, then Landlord shall attempt to ascertain
whether the cause of the problem is a particular tenant’s overuse of the number
of parking spaces provided to such tenant under the terms of its lease and
shall take reasonable measures to enforce the terms of such lease and rectify
the situation.

 

(iii)          In
the event that the overuse cannot be readily addressed by Landlord or is caused
by Tenant’s use of parking spaces in excess of the Original Parking Ratio, then
a Parking Shortage shall be deemed to exist and shall trigger Landlord’s
obligations under this Section 2.2.1 to use commercially reasonable
efforts to implement the Managed Parking Program and/or obtain the Off-Site
Parking.

 

(D)          Tenant
covenants and agrees that it and all persons claiming by, through and under it,
shall at all times abide by all reasonable rules and regulations
promulgated by Landlord with respect to the use of the parking areas on the
Site (which may include vehicle stickers and/or access card programs), provided
such rules and regulations are not inconsistent with Tenant’s rights under
this Lease and are of general applicability to the occupants of the Site. The
parking privileges granted herein are non-transferable except to a permitted
assignee or subtenant as provided in Section 5.6 through Section 5.6.5
or to a Permitted Occupant under Section 5.6.7 below (with the exception
of the right to use parking spaces in excess of the Original Parking Ratio,
which may not be transferred other than in connection with a transfer permitted
under Section 5.6.1 of this Lease). Further, Landlord assumes no
responsibility whatsoever for loss or damage due to fire, theft or otherwise to
any automobile(s) parked on the Site or to any personal property therein,
however caused, and Tenant covenants and agrees, upon request from Landlord
from time to time, to notify its officers, employees, agents and invitees of
such limitation of liability. Tenant acknowledges and agrees that a license
only is hereby granted, and no bailment is intended or shall be created.

 

22

 

2.3           Landlord’s
Reservations

 

Landlord reserves the right from time to time, without unreasonable
interference with Tenant’s use and upon reasonable prior notice to Tenant
(except in the event of an emergency): (a) to install, use, maintain,
repair, replace and relocate for service to the Premises and other parts of the
Building, or either, pipes, ducts, conduits, wires and appurtenant fixtures,
wherever located in the Premises or Building, and (b) to alter or relocate
any other common facility, provided that substitutions are substantially
equivalent or better. Installations, replacements and relocations referred to
in clause (a) above shall be located so far as practicable in the central
core area of the Building, above ceiling surfaces, below floor surfaces or
within perimeter walls of the Premises. In exercising its rights hereunder,
Landlord shall use reasonable efforts to minimize interference with Tenant’s
use of the Premises for the Permitted Use, consistent with the nature of the
rights being exercised.

 

2.4           Habendum

 

Tenant shall have and hold the Premises for a period commencing on the
date (the “Commencement Date”) that is the earlier of (a) the Substantial
Completion Date (as that term is defined in Section 3.3 below) (but in no
event prior to December 1, 2008), and (b) that date on which Tenant
commences occupancy of any portion of the Premises for the Permitted Use and
continuing for the Term unless sooner terminated as provided in Article VI
or Article VII or unless extended as provided in Section 8.20.

 

As soon as may be convenient after the determination of the
Commencement Date, Rent Commencement Date and Expiration Date, Landlord and
Tenant agree to join with each other in the execution of a written Declaration,
in the form of Exhibit E, in which said dates shall be stated. If Tenant
fails to execute or correct such Declaration within thirty (30) days after such
Declaration is submitted by Landlord to Tenant, the Commencement Date, Rent
Commencement Date and Expiration Date shall be as originally set forth in the
Declaration delivered by Landlord.

 

2.5           Fixed Rent and
Electricity Payments

 

Tenant agrees to pay to Landlord, or as directed by Landlord, at
Landlord’s Original Address specified in Section 1.1 hereof, or at such
other place as Landlord shall from time to time designate by at least thirty
(30) days prior written notice to Tenant, (1) (a) on the Rent
Commencement Date (defined in Section 1.1 hereof) and thereafter monthly,
in advance, on the first day of each and every calendar month during the
Original Term, a sum equal to one twelfth (1/12th) of the Annual
Fixed Rent (sometimes hereinafter referred to as “fixed rent”) and (b) on
the Commencement Date and thereafter monthly, in advance, on the first day of
each and every calendar month during the Original Term, an amount estimated by
Landlord from time to time to cover Tenant’s monthly payments for electricity
under Section 2.8 hereinbelow, and (2) on the first day of each and
every calendar month during each extension option period (if exercised), a sum
equal to (a) one twelfth (1/12th) of the Annual Fixed Rent as
determined in Section 8.20 for the applicable 

 

23

 

extension option period plus (b) then applicable monthly electricity
charges (subject to escalation for electricity as provided in Section 2.8
hereof). Until notice of some other designation is given, fixed rent and all
other charges for which provision is herein made shall be paid by remittance to
or for the order of Boston Properties Limited Partnership either (i) by
mail to P.O. Box 3557, Boston, Massachusetts 02241-3557, (ii) by wire
transfer to Bank of America in Dallas, Texas, Bank Routing Number 0260-0959-3
or (iii) by ACH transfer to Bank of America in Dallas, Texas, Bank Routing
Number 111 000 012, and in the case of (ii) or (iii) referencing
Account Number 3756454460, Account Name of Boston Properties, LP, Tenant’s name
and the Property address.  All
remittances received by Boston Properties Limited Partnership, as Agents as
aforesaid, or by any subsequently designated recipient, shall be treated as
payment to Landlord.

 

Annual Fixed Rent for any partial month shall be paid by Tenant to
Landlord at such rate on a pro rata basis, and, if the Rent Commencement Date
is a day other than the first day of a calendar month, the first payment of
Annual Fixed Rent which Tenant shall make to Landlord shall be a payment equal
to a proportionate part of such Annual Fixed Rent for the partial month from
the Rent Commencement Date to the first day of the succeeding calendar month.

 

Additional Rent payable by Tenant on a monthly basis, as hereinafter
provided, likewise shall be prorated, and the first payment on account thereof
shall be determined in similar fashion but shall commence on the Rent
Commencement Date (with the exception of payments on account of electricity,
which shall commence on the Commencement Date as set forth in the first
paragraph of this Section 2.5 and Tenant’s Operating Expenses Payment and
Tenant’s Tax Payment which shall be commence as set forth in Sections 2.6 and
2.7, respectively); and other provisions of this Lease calling for monthly
payments shall be read as incorporating this undertaking by Tenant.

 

Notwithstanding that the payment of Annual Fixed Rent payable by Tenant
to Landlord shall not commence until the Rent Commencement Date, Tenant shall
be subject to, and shall comply with, all other provisions of this Lease as and
at the times provided in this Lease.

 

The Annual Fixed Rent and all other charges for which provision is
herein made shall be paid by Tenant to Landlord, without offset, deduction or
abatement except as otherwise specifically set forth in this Lease.

 

2.6           Operating Expenses

 

“Landlord’s Operating Expenses” means the cost of operation of the
Building and the Site which shall exclude costs of special services rendered to
tenants (including Tenant) for which a separate charge is made, but shall
include, without limitation, the following: premiums for insurance carried with
respect to the Building and the Site (including, without limitation, liability
insurance, insurance against loss in case of fire or casualty and insurance of
monthly installments of fixed rent and any Additional Rent which may be due
under this Lease and other leases of space in the Building for not more than
twelve (12) months in the case of both fixed rent and Additional Rent and if
there be any 

 

24

 

first mortgage of the Property, including such insurance as may be
required by the holder of such first mortgage, provided, however, with respect
to insurance coverages required to be carried by a holder of a mortgage, such
coverages are of the type and amounts customarily required to be carried by
lenders of comparable class A, multi-tenant office buildings in the Market
Area); compensation and all fringe benefits, worker’s compensation insurance
premiums and payroll taxes paid to, for or with respect to all persons engaged
exclusively in the operating, maintaining or cleaning of the Building or Site
(and in the event such persons  are
also employed on other properties of Landlord or its affiliates, such
compensation shall be equitably prorated among the Building and such other
properties), water, sewer, electric, gas, oil and telephone charges (excluding
utility charges separately chargeable to tenants for additional or special
services and excluding costs to supply electricity to leaseable areas of the
Building, with the exception of any building management offices); cost of
building and cleaning supplies and equipment; cost of maintenance, cleaning and
repairs (other than repairs not properly chargeable against income or
reimbursable from contractors under guarantees); cost of snow removal and care
of landscaping; cost of operating, maintaining, cleaning and providing
utilities to any conference center, cafeteria, fitness center or other amenity
serving the Building (and excluding any costs to construct and initially
furnish such amenities or any subsidy for cafeteria operations unless
specifically agreed to by Tenant in writing); payments under service contracts
with independent contractors; management fees at reasonable rates for self
managed buildings consistent with the type of occupancy and the service
rendered, which management fees shall not exceed three percent (3%) of the
total Gross Rents for the Building (“Gross Rents for the Building” for the
purposes hereof being defined as annual fixed rent, Landlord’s Operating
Expenses, with the exception of the aforesaid management fee, and Landlord’s
Tax Expenses for the Building for the relevant calendar year); costs of
maintaining a regional property management office (allocated pro rata among all
properties owned by Landlord or its affiliates served by such regional property
management office) in connection with the operation, management and maintenance
of the Building; and all other reasonable and necessary expenses paid in
connection with the operation, cleaning and maintenance of the Building and the
Site and properly chargeable against income, provided, however, there shall be
included (a) depreciation for capital expenditures made by Landlord during
the Lease Term (i) to reduce Landlord’s Operating Expenses if Landlord
shall have reasonably determined that the annual reduction in Landlord’s
Operating Expenses shall exceed the annual depreciation therefor or (ii) to
comply with applicable laws, rules, regulations, requirements, statutes,
ordinances, by-laws and court decisions of all public authorities which first
become applicable to the Property after the Base Building Completion Date (the
capital expenditures described in subsections (i) and (ii) being
hereinafter referred to as “Permitted Capital Expenditures”); plus (b) in
the case of both (i) and (ii) an interest factor, reasonably
determined by Landlord, as being the interest rate then charged for long-term
mortgages by institutional lenders on like properties within the locality in
which the Building is located; depreciation in the case of both (i) and (ii) shall
be determined by dividing the original cost of such capital expenditure by the
number of years of useful life of the capital item acquired and the useful life
shall be reasonably determined by Landlord in accordance with generally
accepted accounting principles and practices in effect at the time of
acquisition of the capital item.

 

25

 

Notwithstanding the generality
of the preceding text, the following items shall be excluded or deducted, as
the case may be, from the calculation of Tenant’s share of Landlord’s Operating
Expenses:

 

(i)            All
capital expenditures and depreciation, including all costs that under generally
accepted accounting principles are properly classified as capital expenses,
capital improvements or capital repairs, except as otherwise explicitly
provided in this Section 2.6;

 

(ii)           Interest
on indebtedness, debt amortization, ground rent, financing and refinancing
costs for any mortgage or ground lease or overlease of the Building or the Site
and transfer taxes, recording costs and taxes, title insurance premiums, title
closer’s fees and gratuities and other similar costs incurred in connection
with the sale or transfer of an interest in Landlord or the Building;

 

(iii)          Legal,
auditing, consulting and professional fees and other costs (other than those
legal, auditing, consulting and professional fees and other costs incurred in
connection with the normal and routine maintenance and operation of the
Building and/or the Site), including, without limitation, those: (i) paid
or incurred in connection with financings, refinancings or sales of any
Landlord’s interest in the Building and/or the Site; (ii) relating to any
special reporting required by securities laws; (iii) relating to
negotiations or disputes with, or leasing to, tenants or prospective tenants; (iv) relating
to litigation (including costs of settlement judgments and payments in lieu
thereof); (v) the interpretation of leases or other occupancy agreements; (vi) the
enforcement of the provisions of any lease or other occupancy agreement
affecting the Building including without limitation this Lease; (vii) the
initial construction of the improvements on the Site; (viii) the review,
approval or other actions in connection with the sublease or assignment of
tenant leases (provided, however, that Tenant shall nonetheless be responsible
under Section 5.6.5(b) for any such costs relative to its own
requests for consent to a sublease or assignment); (ix) any action against
a present or former tenant or occupant under a lease or other occupancy
agreement, including, without limitation, eviction, distraint, levy and
collection actions; and (x) costs incurred as a result of the violation by
Landlord or any tenant of the terms and conditions of any lease;

 

(iv)         The
cost of any item or service to the extent reimbursed or reimbursable to
Landlord by insurance required to be maintained under the Lease or by any third
party;

 

(v)          The
cost of repairs or replacements incurred by reason of fire or other casualty or
condemnation other than costs not in excess of a commercially reasonable
deductible (currently $25,000.00) on any insurance maintained by Landlord which
provides a recovery for such repair or replacement;

 

26

 

(vi)         Any
advertising, promotional or marketing expenses for the Buildings;

 

(vii)        The
cost of any service or materials provided by any party related to Landlord
(other than the management fee), to the extent such costs exceed the reasonable
cost for such service or materials absent such relationship in buildings
similar to the Building in the vicinity of the Building;

 

(viii)       Payments
for rented equipment, the cost of which equipment would constitute a capital
expenditure if the equipment were purchased to the extent that such payments
exceed the amount which could have been included in Landlord’s Operating
Expenses had Landlord purchased such equipment rather than leasing such
equipment;

 

(ix)          Penalties,
damages, and interest for late payment or violations of any obligations of
Landlord, including, without limitation, taxes, Legal Requirements, insurance,
equipment leases and other past due amounts;

 

(x)           Contributions
to charitable or political organizations or trade associations such as BOMA or
NAIOP, and any entertainment, dining or travel expenses of Landlord’s employees
for any purpose;

 

(xi)          The
costs incurred to monitor, test, survey, clean-up, contain, encapsulate, abate,
remove or remediate any “Hazardous Materials” (as defined in Section 5.3),
including asbestos and mold, in the Buildings or on the Site required by “Hazardous
Materials Laws” (as defined in Section 5.3) and including costs to defend
against claims in regard to the existence or release of Hazardous Materials at
the Building or the Site;

 

(xii)         Any
and all costs incurred to install, repair, operate, maintain and replace the
subslab venting system installed in the Building as part of the Base Building
Work under Section 3.1 below (or any costs associated with modifying the
original subslab venting system or installing supplemental systems should it be
determined that the original system installed as part of the Base Building Work
was insufficient to mitigate air quality issues associated with conditions
existing at the Property as of the date of this Lease);

 

(xiii)        Wages,
salaries, or other compensation (including benefits and benefit plans) paid to
any executive employees above the grade of Regional Property Manager;

 

(xiv)        Amounts
payable by Landlord for withdrawal liability to a multi-employer pension plan
(under Title IV of the Employment Retirement Income Security Act of 1974, as
amended) due to complete or partial withdrawal that occurs during the term of
this Lease due to events within the control of Landlord (e.g., the sale of
Landlord’s interest in the Building);

 

27

 

(xv)         Costs
in connection with leasing space in the Building or to retain existing tenants,
including brokerage commissions, lease concessions, lease assumptions, rental
abatements, construction allowances granted to specific tenants and alteration
work performed by Landlord to prepare space for tenants, including any
utilities or services incurred in connection with performing such work;

 

(xvi)        The
cost of any work or service performed or rendered exclusively for any tenant of
the Building, including Tenant, and costs incurred in connection with the
making of repairs which are the obligations of another tenant of the Building;

 

(xvii)       The
cost of acquisition of any sculpture, paintings or other objects of art;

 

(xviii)      Any
amounts billed or billable to Tenant or any other tenant for any services
furnished to Tenant or any other tenant by Landlord or Landlord’s agents or
contractors for which a separate charge is made, including, without limitation,
the supply of overtime air-conditioning, ventilation and heating, and
above-standard cleaning services, or for services or work furnished to any
tenant to the extent such services or work are furnished in a more favorable manner
to such tenant than furnished generally to tenants of the Building as part of
Landlord’s Operating Expenses;

 

(xix)        Any
costs of maintenance, repairs or replacements required because of the negligent
or willful act or omission of Landlord, its officers, directors, servants,
agents, employees or contractors;

 

(xx)         Any
expenses to design and construct (including permitting fees, costs of insurance
and bonds, and costs of equipment and materials) the Base Building Work and the
Base Building Enhancements and any costs to correct any defects, latent or
patent, in any of the equipment or improvements which are a part of the Base
Building Work and/or the Base Building Enhancements (except to the extent
caused by Tenant’s use of the Premises for other than general office use);

 

(xxi)        Reserves
for bad debts or for future improvements, repairs or additions;

 

(xxii)       Any
above-standard cleaning (which shall include trash collection and removal),
including, but not limited to construction cleanup or special cleanings
associated with parties/events and specific tenant requirements in excess of
service provided to Tenant, and including the costs of initial cleaning and
rubbish removal performed for final completion of the Building, the Site or any
tenant space;

 

(xxiii)      The
costs of new services or substantial increases in existing services (such as a
substantial increase in security services) to the extent such new or increased
level of services are required solely as the result of the presence of a
particular occupant of the Building, such as for example, the costs of
providing additional security services due to threats against a particular
occupant of the Building;

 

28

 

(xxiv)      Costs
in connection with acquiring additional land or development rights or of
constructing any additional buildings within the Site (provided, however, that
the foregoing shall not be construed so as to limit or modify Tenant’s
obligation to pay the costs associated with the Off-Site Parking under Section 2.2.1
above);

 

(xxv)       Without
limitation of any other exclusions from Landlord’s Operating Expenses, costs
and expenses incurred by Landlord in curing, repairing or replacing any
structural portion of the Building (including the roof) within five (5) years
of the Actual Base Building Completion Date (as the term is defined in Section 3.1(B) below)
to the extent such cure, repair or replacement was made necessary as a result
of defects in the design, workmanship or materials of the Base Building Work);

 

(xxvi)      Costs
of initial landscaping of the Building or the Site;

 

(xxvii)     Costs
of the initial stock of tools and equipment for operation, repair and
maintenance of the Building and Site and all furniture, equipment and fixtures
for the Amenities;

 

(xxviii)    Costs
of mitigation or impact fees or subsidies imposed or incurred in connection
with the initial construction of the Building, or imposed or incurred solely as
a result of any tenant’s use of or occupancy of the Building or the Site;

 

(xxix)      Costs
incurred in connection with the operation of any retail or restaurant
operations for the Building, including without limitation, any operating
subsidy for the cafeteria (provided that the costs of operating, maintaining,
cleaning and providing utilities to the cafeteria may be included in Landlord’s
Operating Expenses);

 

(xxx)       Costs
incurred in connection with upgrading the Property to comply with laws, rules,
regulations or codes first applicable to the Property prior to the Commencement
Date; and

 

(xxxi)      Except
as expressly provided in this Lease with respect to the Managed Parking Program
and the Off-Site Parking and for so long as Tenant directly leases and occupies
seventy percent (70%) or more of the Total Rentable Floor Area of the Building,
costs of adding any new services or new building amenities not in place as of
the Commencement Date which are not either (1) consented to by Tenant in
writing or (2) actually utilized by Tenant’s employees irrespective of
whether Tenant has not consented to the same (e.g., if Landlord initiates a
shuttle bus service to public transportation and Tenant does not consent to the
same but Tenant’s employees use the shuttle bus on a regular basis) or (3) required
by applicable laws, rules, regulations or codes first applicable to the
Property after the Commencement Date, and further subject to the gross up of
Base Operating Expenses as hereinafter set forth.  Services or building amenities will not be
deemed to be “utilized by Tenant’s employees” unless either (i) Tenant notifies

 

29

 

Landlord in
writing that Tenant’s employees will utilize the service or amenity, or (ii) Landlord
provides Tenant with written notice that Tenant’s employees have been found to
be regularly or consistently using such service or amenity and, thereafter,
such use by Tenant’s employees continues on or after the date that is two (2) weeks
following Tenant’s receipt of Landlord’s notice.

 

Notwithstanding anything in this Lease to the contrary, to the extent
that Landlord provides or procures services for the Building together with
other buildings in the CityPoint Project or otherwise operated by Landlord or
any affiliate thereof, then the costs of such services shall be allocated
between the Building and such other buildings in a manner reasonably determined
by Landlord.  In no event shall Landlord
be entitled to retain more than one hundred percent (100%) of the Landlord’s
Operating Expenses actually paid or incurred by Landlord in any particular
calendar year.

 

 “Operating Expenses Allocable to
the Premises” shall mean the same proportion of Landlord’s Operating Expenses
for and pertaining to the Building and the Site as the Rentable Floor Area of
Tenant’s Space bears to the Total Rentable Floor Area of the Building.

 

“Base Operating Expenses” is hereinbefore defined in Section 1.1.  Base Operating Expenses shall not include (i) market-wide
cost increases due to extraordinary circumstances (as hereinafter defined),
including but not limited to Landlord’s Force Majeure (as hereinafter defined),
conservation surcharges, boycotts, strikes, or embargoes or shortages and (ii) the
cost of any Permitted Capital Expenditures required in order to comply with
applicable laws, rules, regulations or codes first applicable to the Property
after the Base Building Completion Date; provided, however, that if there are
elements of Building repair and maintenance which would have been included in
Base Operating Expenses except that they were covered under construction or installation
warranties at no additional cost to Landlord, the cost of such repair and
maintenance items shall be imputed into Base Operating Expenses.  When used in this Section 2.6, “Landlord’s
Force Majeure” shall mean any prevention, delay or stoppage due to
governmental regulation, strikes, lockouts, acts of God, acts of war, terrorist
acts, civil commotions, unusual scarcity of or inability to obtain labor or
materials, labor difficulties, casualty or other causes reasonably beyond
Landlord’s control or attributable to Tenant’s action or inaction.  For purposes of this Section 2.6, “market-wide
cost increases due to extraordinary circumstances” shall mean an actual,
material increase in a category of Landlord’s Operating Expenses under this
Lease in excess of the amount reasonably budgeted by Landlord for such expense
category in the Base Operating Expenses which is attributable to some
unanticipated event or circumstance occurring during the Base Year and that
affects the Market Area in general for a temporary period of time and where the
costs for such category(ies) subsequently returns, within not more than nine (9) months
after the calendar year used for calculating Base Operating Expenses, to
amounts that would otherwise have been consistent with the projected and normal
level of increases in such category(ies) of costs during subsequent years of
the Term.  In the event that the costs of
any new service, substantial increase in existing services or new building amenity
(other than the Managed Parking Program or the Off-Site Parking) is added to 

 

30

 

Landlord’s Operating Expenses (subject to the limitations of clause
(xxxi) above) after calendar year 2009, the amount of Base Operating Expenses
shall be equitably adjusted by adding an amount equal to the annual costs of
such new services or amenities or substantial increase in existing services
incurred during the first twelve (12) months following which such new service
or amenity or substantial increase in service is instituted or first effected
(in any event, discounted to reflect what such costs would have been in 2009).

 

“Base Operating Expenses Allocable to the Premises” means the same
proportion of Base Operating Expenses for and pertaining to the Building and
the Site as the Rentable Floor Area of Tenant’s Space bears to Total Rentable
Floor Area of the Building.

 

If with respect to any calendar year falling within the Term, or
fraction of a calendar year falling within the Term at the beginning or end
thereof, the Operating Expenses Allocable to the Premises for a full calendar
year exceed Base Operating Expenses Allocable to the Premises, or for any such
fraction of a calendar year exceed the corresponding fraction of Base Operating
Expenses Allocable to the Premises then, Tenant shall pay to Landlord, as
Additional Rent, the amount of such excess (“Tenant’s Operating Expenses
Payment”). Such payments shall be made at the times and in the manner
hereinafter provided in this Section 2.6. (The Base Operating Expenses
Allocable to the Premises do not include the tenant electricity to be paid by
Tenant at the time of payment of Annual Fixed Rent and for which provision is
made in Section 2.5 hereof, separate provision being made in Section 2.8
of this Lease for Tenant’s share of increases in electricity costs.) In no
event will Tenant be obligated to make any payments of Tenant’s Operating
Expenses Payment prior to January 1, 2010.

 

Not later than one hundred and twenty (120) days after the end of the
first calendar year or fraction thereof ending December 31 and of each
succeeding calendar year during the Term or fraction thereof at the end of the
Term, Landlord shall render Tenant a statement in reasonable detail and
according to usual accounting practices certified by a representative of
Landlord (an “Operating Expense Statement”), showing for the preceding calendar
year or fraction thereof, as the case may be, Landlord’s Operating Expenses and
Operating Expenses Allocable to the Premises. The first such Operating Expense
Statement from Landlord under this Lease shall also set forth the Base
Operating Expenses and the Base Operating Expenses Allocable to the Premises.
Such Operating Expense Statement to be rendered to Tenant shall also show for
the preceding year or fraction thereof as the case may be the amounts of
operating expenses already paid by Tenant as Additional Rent, and the amount of
operating expenses remaining due from, or overpaid by, Tenant for the year or
other period covered by such statement. Within thirty (30) days after the date
of delivery of such Operating Expense Statement, Tenant shall pay to Landlord
the balance of the amounts, if any, required to be paid pursuant to the above
provisions of this Section 2.6 with respect to the preceding year or
fraction thereof, or Landlord shall credit any amounts due from it to Tenant
pursuant to the above provisions of this Section 2.6 against (i) monthly
installments of fixed rent next thereafter coming due or (ii) any sums
then due from Tenant to Landlord under this Lease (or refund such portion of
the overpayment as aforesaid if the Term has ended and Tenant 

 

31

 

has no further obligation to Landlord).   Landlord’s failure to render or delay in
rendering an Operating Expense Statement with respect to any calendar year
shall not prejudice Landlord’s right thereafter to render the same with respect
thereto nor shall the rendering of an Operating Expense Statement for any
calendar year prejudice Landlord’s right thereafter to render a corrected
Operating Expense Statement for such calendar year, provided, however, that (1) if
Landlord’s delay in delivering an Operating Expense Statement or any subsequent
corrections thereto would result in a materially adverse impact on Tenant’s
stated earnings or require Tenant to restate earnings (either such event being
hereinafter referred to as an “Earnings Impact”), Landlord must render the
Operating Expense Statement in question (or any corrections thereto) within six
(6) months after the end of the calendar year in question, or Landlord
will not thereafter have any right to subsequently deliver an Operating Expense
Statement (or any subsequent corrections thereto) which would increase the
amounts owed by Tenant on account of Tenant’s Operating Expenses Payment such
that it would result in an Earnings Impact, and (2) Landlord shall in all
events render the Operating Expense Statement in question or any corrections
thereto within one (1) year after the end of the calendar year covered by
such Operating Expense Statement.

 

In addition, Tenant shall make payments monthly on account of Tenant’s
Operating Expenses Payment anticipated for the then current year at the time
and in the fashion herein provided for the payment of fixed rent. The amount to
be paid to Landlord shall be an amount reasonably estimated annually by
Landlord to be sufficient to cover, in the aggregate, a sum equal to Tenant’s
Operating Expenses Payment for each calendar year during the Term.

 

Notwithstanding the foregoing, in determining the amount of Landlord’s
Operating Expenses for the Base Year and any calendar year or portion thereof
falling within the Lease Term, if less than ninety-five percent (95%) of the
Total Rentable Floor Area of the Building shall have been occupied by tenants
at any time during the period in question, then, at Landlord’s election with
respect to years after the Base Year, but on a mandatory basis for the Base
Year, those components of Landlord’s Operating Expenses that vary based on
occupancy for such period shall be adjusted to equal the amount such components
of Landlord’s Operating Expenses would have been for such period had occupancy
been ninety-five percent (95%) throughout such period (it being understood and
agreed for the purposes hereof that, without limiting the generality of the
foregoing, management fees shall be calculated as if the Building was
ninety-five (95%) occupied for an entire year with all tenants paying full base
rent (without reduction for free rent periods) and payments on account of
operating expenses and real estate taxes (to the extent applicable for tenants
who either do not have base years in their leases or who have leases with base
years that have passed at the time of the calculation described herein)).

 

2.6.1        Examination of Landlord’s Books and Records

 

Subject to the provisions of this paragraph, and provided that Tenant
is not in default of any of its monetary or other material obligations under
this Lease and

 

32

 

has failed to cure the same after notice thereof from Landlord, Tenant
shall have the right, at Tenant’s cost and expense, to examine or cause to be
examined all of Landlord’s books, documentation and calculations used in the
determination of Landlord’s Operating Expenses, Base Operating Expenses,
Landlord’s Tax Expenses and Base Taxes under Section 2.7 below, and Tenant’s
Electricity Payment under Section 2.8 below (the “Documentation”).

 

1.            Such Documentation shall be made available
to Tenant at the offices, in the continental United States, where Landlord
keeps such records during normal business hours within a reasonable time after
Landlord receives a written request from Tenant to make such examination.

 

2.            Tenant shall have the right to make such
examination no more than once in respect of any period for which Landlord has
given Tenant a statement of the actual amount of Landlord’s Operating Expenses
or Landlord’s Tax Expenses, as applicable.

 

3.             Any
request for examination in respect of any calendar year may be made no more
than twelve (12) months after Landlord advises Tenant of the actual amount of
Landlord’s Operating Expenses or Landlord’s Tax Expenses, as applicable, in
respect of such calendar year and provides to Tenant the year-end statement required
above; provided, however, that Tenant shall have the right to make an
examination of Base Operating Expenses and/or Base Taxes at such time (if any)
Tenant makes an examination of Landlord’s Operating Expenses for calendar year
2010 or Landlord’s Tax Expenses for fiscal tax year 2011, as applicable,
notwithstanding that more than twelve (12) months have elapsed since the
delivery of Landlord’s year-end statement of Base Operating Expenses and/or
Base Taxes.

 

4.            Such examination may be made only by Tenant’s
employees or by an independent certified public accounting firm approved by
Landlord, or a qualified real estate professional approved by Landlord, which
approval in either case shall not be unreasonably withheld, conditioned or
delayed. In no event shall Tenant be permitted to utilize any examiner who is
being paid by Tenant on a contingent fee basis.

 

5.            As a condition to performing any such
examination, Tenant and its examiners shall be required to execute and deliver
to Landlord an agreement, in form reasonably acceptable to Landlord, agreeing
to keep confidential any information which it discovers about Landlord or the
Building in connection with such examination, provided however, that Tenant may
disclose such information (i) to Tenant’s employees, counsel and advisors
who have the need to know such information in order to provide Tenant with
advice in connection with such audit, (ii) actual or proposed successors,
assigns, subtenants, lenders or purchasers of Tenant and (iii) to the
extent required by applicable law or reporting requirements or by
administrative, governmental or judicial proceeding.

 

33

 

6.            If, after the audit by Tenant of Landlord’s
books and records pursuant to this Section 2.6.1 with respect to any
calendar year, it is determined that: (i) Tenant has made an overpayment
on account of Tenant’s Operating Expenses Payment or Tenant’s Tax Payment, as
applicable, Landlord shall credit such overpayment against the next installment(s) of
Annual Fixed Rent and Additional Rent thereafter payable by Tenant, except that
if such overpayment is determined after the termination or expiration of the
Term of this Lease, Landlord shall promptly refund to Tenant the amount of such
overpayment, less any amounts then due from Tenant to Landlord; and (ii) Tenant
has made an underpayment on account of Tenant’s Operating Expenses Payment or
Tenant’s Tax Payment, as applicable, Tenant shall, within thirty (30) days of
such determination, pay such underpayment to Landlord; and (iii) if the
amount of Landlord’s Operating Expenses or Landlord’s Tax Expenses, as
applicable, was overstated by more than five percent (5%) in the aggregate,
Landlord shall pay Tenant’s reasonable out-of-pocket cost for such audit.

 

7.            Any disputes under this Section 2.6.1
relating to amounts of Fifty Thousand and 00/100 Dollars ($50,000.00) or more
may be resolved by arbitration under Section 8.31 below.

 

2.7          Real Estate Taxes

 

If with respect to any full Tax Year or fraction of a Tax Year falling
within the Term, Landlord’s Tax Expenses Allocable to the Premises as
hereinafter defined for a full Tax Year exceed Base Taxes Allocable to the
Premises, or for any such fraction of a Tax Year exceed the corresponding
fraction of Base Taxes Allocable to the Premises then, on or before the
thirtieth (30th) day following receipt by Tenant of the certified
statement referred to below in this Section 2.7, then Tenant shall pay to
Landlord, as Additional Rent, the amount of such excess (“Tenant’s Tax Payment”).
Not later than ninety (90) days after Landlord’s Tax Expenses Allocable to the
Premises are determined for the first such Tax Year or fraction thereof and for
each succeeding Tax Year or fraction thereof during the Term, Landlord shall render
Tenant a statement in reasonable detail certified by a representative of
Landlord showing for the preceding year or fraction thereof, as the case may
be, Real Estate Taxes (as hereinafter defined) on the Building and the Site and
abatements and refunds of any taxes and assessments. Reasonable expenditures
for legal fees and for other expenses reasonably incurred in seeking the tax
refund or abatement may be charged against the tax refund or abatement before
the adjustments are made for the Tax Year to the extent such costs were not
already included in the calculation of Real Estate Taxes. Said statement to be
rendered to Tenant shall also show for the preceding Tax Year or fraction
thereof as the case may be the amounts of Tenant’s Tax Payment already paid by
Tenant as Additional Rent, and the amount of Tenant’s Tax Payment remaining due
from, or overpaid by, Tenant for the year or other period covered by the
statement. Within thirty (30) days after the date of delivery of the foregoing
statement, Tenant shall pay to Landlord the balance of the amounts, if any,
required to be paid pursuant to the above provisions of this Section 2.7
with respect to the preceding Tax Year or fraction thereof, or Landlord shall
credit any amounts due from it to Tenant 

 

34

 

pursuant to the provisions of this Section 2.7 against (i) monthly
installments of fixed rent next thereafter coming due or (ii) any sums
then due from Tenant to Landlord under this Lease (or refund such portion of
the over-payment as aforesaid if the Term has ended and Tenant has no further
obligation to Landlord).

 

In addition, payments by Tenant on account of Tenant’s Tax Payment
anticipated for the then current year shall be made monthly at the time and in
the fashion herein provided for the payment of Annual Fixed Rent, provided,
however, in no event will Tenant have any obligation to make any payment of
Tenant’s Tax Payment prior to July 1, 2010. The amount so to be paid to
Landlord shall be an amount reasonably estimated by Landlord to be sufficient
to provide Landlord, in the aggregate, a sum equal to Tenant’s Tax Payment, at
least ten (10) days, but not more than thirty (30) days, before the day on
which such payments by Landlord would become delinquent.  In no event shall Landlord be entitled to
retain more than one hundred percent (100%) of the Landlord’s Tax Expenses (as
defined below) actually paid or incurred by Landlord in any particular fiscal
tax year.

 

To the extent that Real Estate Taxes shall be payable to the taxing
authority in installments with respect to periods less than a Tax Year, the
foregoing statement shall be rendered and payments made on account of such
installments.

 

Terms used herein are defined as follows:

 

(i)           “Tax Year” means the
twelve-(12)-month period beginning July 1 each year during the Term or if
the appropriate governmental tax fiscal period shall begin on any date other
than July 1, such other date.

 

(ii)          “Landlord’s Tax Expenses
Allocable to the Premises” shall mean the same proportion of Landlord’s Tax
Expenses for and pertaining to the Building and the Site as the Rentable Floor
Area of Tenant’s Space bears to the Total Rentable Floor Area of the Building.

 

(iii)         “Landlord’s Tax Expenses”
with respect to any Tax Year means the aggregate Real Estate Taxes on the
Building and Site with respect to that Tax Year, reduced by any abatement
receipts with respect to that Tax Year.

 

(iv)         “Base Taxes” is
hereinbefore defined in Section 1.1.

 

(v)          “Base Taxes Allocable to
the Premises” means the same proportion of Base Taxes for and pertaining to the
Building and the Site as the Rentable Floor Area of Tenant’s Space bears to the
Total Rentable Floor Area of the Building.

 

(vi)         “Real Estate Taxes” means
all taxes and special assessments of every kind and nature and user fees and
other like fees assessed by any governmental authority on the Building or Site
which the Landlord shall become 

 

35

 

obligated to pay because of or in connection with the ownership,
leasing and operation of the Site, the Building and the Property (including
without limitation, if applicable, the excise prescribed by Massachusetts
General Laws (Ter Ed) Chapter 121A, Section 10 and amounts in excess
thereof paid to the City of Waltham pursuant to agreement between Landlord and
the City) and reasonable expenses of and fees for any formal or informal
proceedings for negotiation or abatement of taxes (collectively, “Abatement
Expenses”), which Abatement Expenses respecting Base Taxes shall be excluded
from Base Taxes. The amount of special taxes or special assessments to be
included shall be limited to the amount of the installment (plus any interest,
other than penalty interest, payable thereon) of such special tax or special
assessment required to be paid during the year in respect of which such taxes
are being determined. There shall be excluded from such taxes all mitigation or
impact fees or subsidies associated with the initial construction of the
Building and all income, inheritance, estate, succession, transfer, gift,
franchise, or capital stock taxes; provided, however, that if at any time
during the Term the present system of ad valorem taxation of real property
shall be changed so that in lieu of the whole or any part of the ad valorem tax
on real property there shall be assessed on Landlord a capital levy or other
tax on the gross rents received with respect to the Site or Building or
Property, or a federal, state, county, municipal, or other local income, franchise,
excise or similar tax, assessment, levy or charge distinct from any now in
effect in the jurisdiction in which the Property is located) measured by or
based, in whole or in part, upon any such gross rents, then any and all of such
taxes, assessments, levies or charges, to the extent so measured or based,
shall be deemed to be included within the term “Real Estate Taxes” but only to
the extent that the same would be payable if the Site and Building were the
only property of Landlord.

 

(vii)        If during the Lease Term
the Tax Year is changed by applicable law to less than a full twelve-(12)-month
period, the Base Taxes and Base Taxes Allocable to the Premises shall each be
proportionately reduced.

 

Landlord represents that (i) the Building and the Site constitutes
one tax parcel which does not currently include any real estate or improvements
other than the Building and the parking areas located on the Site, and (ii) there
are no tax exemption benefits contemplated or proposed for or affecting the
Base Taxes that will phase out during the Term of this Lease (as the same may
be extended).

 

2.7.1       Tenant’s Right to Contest Real Estate Taxes

 

So long as (i) this Lease is in full force and effect, (ii) no
monetary or other material Event of Default shall have occurred under this
Lease, (iii) Tenant shall directly lease more than fifty percent (50%) of
the Total Rentable Floor Area of the Building and (iv) Tenant shall
neither have assigned this Lease nor sublet more 

 

36

 

than twenty-five percent (25%) of the rentable floor area then leased
by Tenant (except for an assignment or sublease under Section 5.6.1 below
and except for the Initial Second Floor Subleases), after prior written notice
to Landlord, Tenant shall have the right to request that Landlord contest the
amount or validity of Real Estate Taxes by appropriate application or
proceedings.  If Landlord notifies Tenant
that Landlord does not elect or cause to undertake such an application and/or
proceeding, Tenant may then undertake the same; provided, however, that as a
continuing condition to such right, Tenant shall be required to make all of the
payments respecting the real estate taxes as and at the times required by Section 2.7,
notwithstanding any such contest.

 

Tenant further agrees that each such contest shall be promptly and
diligently prosecuted in good faith to a final conclusion except only as
provided herein.  Landlord agrees to
cooperate with Tenant in any such proceeding provided that the same shall be at
the sole cost and expense of Tenant. 
Tenant will pay and save Landlord harmless against any and all losses,
judgments, decrees and costs (including all reasonable attorneys’ fees and
expenses) in connection with any such contest and will, promptly after the
final settlement, compromise or determination of such contest, fully pay and
discharge Tenant’s obligations under Section 2.7, as the case may be,
together with all penalties, fines, interests, costs and expenses.  Further, any such contest by Tenant shall not
be discontinued unless and until Tenant has given to Landlord written notice of
Tenant’s intent to so discontinue and if Landlord shall not by notice to Tenant
(the “Assumption Notice”) within fifteen (15) days after receipt of Tenant’s
notice elect to assume, at Landlord’s sole cost and expense, the continued
prosecution and conduct of such contest. 
In the event Landlord shall give such Assumption Notice, Tenant shall
cooperate with Landlord in all respects as may be necessary for Landlord’s
continuation of such contest, but Tenant shall have no other obligation for the
prosecution and conduct of such contest.

 

Notwithstanding anything to the contrary set forth in this Section 2.7.1,
Tenant shall have not right to initiate any contest respecting Real Estate
Taxes if less than six (6) months of the tax period for which Tenant seeks
to challenge Real Estate Taxes fall within the last twelve (12) calendar months
of the Lease Term.

 

2.8          Tenant Electricity

 

(A)         Landlord shall, as part of Base Building Work,
cause check meters (“Main Check Meters”) to be installed and rendered
operational to measure tenant electric usage for the Premises. If a Main Check
Meter serves only the Premises or the entire floor leased to a tenant, it is
herein referred to as a “dedicated” Main Check Meter; if it serves the Premises
in common with other premises, it is herein referred to as a “shared” Main
Check Meter. Such Main Check Meter(s) shall only measure electricity used
for lights and electrical equipment utilized in the Premises, and fan-powered
and variable air volume boxes which are part of the HVAC system serving the
Premises. Any further equipment (including supplemental HVAC equipment)
installed by or for Tenant shall have separate check meter(s) (“Supplemental
Check Meters”) installed at Tenant’s 

 

37

 

expense. On each floor there shall be one or more Main Check Meter(s) serving
all of the floor such that the portions of the Premises located on full floors
shall be served by dedicated Main Check Meters, and on multi-tenant floors
Landlord may require that the tenants (at their sole cost and expense) install
Main Check Meters relating to their premises (to the extent there are no Main
Check Meters already installed serving only such premises) and Supplemental
Check Meters to separately meter special usage within tenant premises such as
computer rooms. With respect to any portion of the Premises that may in the
future not be separately check metered on a dedicated Main Check Meter,
Landlord will not unreasonably withhold its consent to Tenant to install
dedicated Main Check Meter(s) serving solely such portion of the Premises
at Tenant’s sole cost and expense.

 

(B)          Tenant’s share of the costs of electricity
shall be determined by Landlord on the following basis:

 

(i)            Landlord will cause the check meters
serving the Premises to be read periodically, but not less often than once
every six (6) months during the first two (2) years of the Term and
once every twelve (12) months thereafter. Tenant shall have reasonable access
to such check meters to read the same.

 

(ii)           For portions of the Premises served by
dedicated Main Check Meter(s), and for all Supplemental Check Meter(s) serving
the Premises, Tenant’s allocable share of electricity costs for the period (“Tenant’s
Electricity Payment”) shall be determined by multiplying the actual average
cost per kilowatt hour by the number of kilowatt hours utilized by Tenant for
such period as indicated by the dedicated Main Check Meter(s) and
Supplemental Check Meter(s) for Tenant’s Premises.

 

(iii)          For portions of the Premises served by shared
Main Check Meter(s), if any, the Tenant’s Electricity Payment shall be
determined by multiplying the cost per kilowatt hour by the number of kilowatt
hours utilized as indicated by such shared Main Check Meter(s), and multiplying
such total cost by a fraction, the numerator of which is the rentable area
leased to Tenant and the denominator of which is the total rentable area under
lease to tenants (inclusive of any vacant spaces where electricity is being used
on a regular basis) served by such shared Main Check 

Meter(s); provided, however, that if Landlord shall reasonably determine that
the cost of electricity furnished to the Tenant at such portion of the Premises
exceeds the amount being paid by Tenant, then Landlord shall deliver to Tenant
written documentation establishing Landlord’s basis for such determination and
Landlord may charge Tenant for such excess and Tenant shall promptly pay the
same upon billing therefor as 

 

38

 

Additional Rent under the Lease, subject to Tenant’s right to challenge
such determination pursuant to Section 2.6.1.

 

(iv)          Where part or all of the rentable area on a
floor has been occupied for less than all of the period for which adjustments
are being made, appropriate and equitable modifications shall be made to the
allocation formula so that each tenant’s allocable share of costs equitably
reflects its period of occupancy, provided that in no event shall the total of
all costs as allocated to tenants (or to unoccupied space) be less than the
total cost of electricity for such floor for said period.

 

(C)          Tenant shall make estimated payments on
account of Tenant’s Electricity Payment, as reasonably estimated by Landlord,
on a monthly basis. No later than one hundred twenty (120) days after the end
of each calendar year falling within the Lease Term, Landlord shall render
Tenant a statement in reasonable detail certified by a representative of
Landlord, showing for the preceding calendar year the Tenant’s Electricity
Payment. Said statement to be rendered to Tenant also shall show for such
period the amounts already paid by Tenant on account of Tenant’s Electricity
Payment and the amount of Tenant’s Electricity Payment remaining due from, or
overpaid by, Tenant for the period covered by the statement. If such statement
shows a balance remaining due to Landlord, Tenant shall pay same to Landlord on
or before the thirtieth (30th) day following receipt by Tenant of
said statement. Any balance shown as due to Tenant shall be credited against
Annual Fixed Rent next due, or refunded to Tenant if the Lease Term has then
expired and Tenant has no further obligation to Landlord. All payments by
Tenant on account of Tenant’s Electricity Payment shall be deemed Additional
Rent and shall be made monthly at the time and in the fashion herein provided
for the payment of Annual Fixed Rent. Tenant shall have the right to examine
Landlord’s records relating to Tenant’s Electricity Payment and to dispute the
amounts claimed to be owed by Landlord in accordance with the provisions of Section 2.6.1
of this Lease.

 

(D)          All costs of electricity billed to Landlord,
other than the costs of tenant electricity allocated pursuant to the procedures
established herein, shall be treated as part of Landlord’s Operating Expenses
for purposes of determining the allocation of those costs. Taxes imposed upon
the electricity furnished to the Building shall be included in the calculation
of electricity charges payable under this Lease, however, there shall not be
included in such electricity charges any tax
imposed upon Landlord on account of Landlord’s sale, use or resale of
electrical energy to Tenant or other tenants in the Building (i.e., no double
taxation due to the fact that Landlord is not a licensed reseller of
electricity).

 

(E)          Landlord shall be responsible for the
maintenance of the Main Check Meter(s) and Tenant shall be responsible for
the maintenance of the Supplemental Check Meter(s).

 

(F)          At any time following the completion
of Base Building Work, Tenant shall have the right, subject to Landlord’s
approval (not to be unreasonably withheld), to increase 

 

39

 

and/or shift the amount of electric power being drawn from the buss
duct on any full floor within the Premises, at Tenant’s sole cost and expense,
provided the total amount of power allotted to the Premises is not increased.
At such time as Tenant shall surrender any floor, or portion thereof to
Landlord as provided hereunder (including in connection with any space
recaptured by Landlord), Tenant, at its sole cost and expense, shall reinstate
all electric capacity on such floor as may have been reallocated or otherwise
decreased as a result of any Tenant’s use thereof such that the electric
capacity serving any such floor is not less than the electrical capacity for
such floor on the date such floor was delivered to Tenant. In connection with
the foregoing, it is acknowledged and agreed that electrical panels may need to
be installed within the Premises itself (as opposed to within the electric
closets or mechanical rooms outside of the Premises) in order to facilitate a
shift in the amount of electric amount being provided to any given floor.

 

ARTICLE III

 

CONSTRUCTION

 

3.1          Base Building Work;
Base Building Enhancements

 

(A)         It is acknowledged and agreed that Landlord
has, prior to the date hereof, substantially completed the work (the “Base
Building Work”) as defined in the Base Building Specifications and list of Base
Building Plans attached hereto as Exhibit B-1.  Landlord agrees to diligently pursue the
completion of any components of the Base Building Work that have not been
completed as of the date of this Lease and any delay in the Substantial
Completion of the Landlord’s Work (as both of such terms are defined in Section 3.3
below) as a result of Landlord’s failure to complete any outstanding item of
Base Building Work shall constitute a “Landlord Delay.”

 

(B)          In addition to the Base Building Work,
Landlord, at Landlord’s sole cost and expense, shall perform the modifications
to the Base Building Specifications described on Exhibit B-2 attached
hereto (the “Base Building Enhancements”) in a good and workmanlike manner,
using new and quality materials, in full compliance with all applicable Legal
Requirements.  In connection with the
foregoing, it is expressly understood and agreed that Landlord’s obligation to
perform the Base Building Enhancements at its sole cost and expense shall apply
solely to Premises A, and to the extent that Tenant requires Base Building
Enhancements in connection with the build-out of Premises B and/or Premises C,
such Base Building Enhancements shall be considered to be a part of the Tenant
Improvement Work (as defined in Section 3.2 below).

 

3.2          Tenant Improvement
Work

 

(A)         Plans.

 

(1)           Interim
Plans.  On or before February 29,
2008, Landlord shall deliver to Tenant and Tenant’s architect a complete set of
updated design drawings (with architects and/or contractors field notes, if
any, thereon) for the 

 

40

 

Building reflecting the Base Building
Work.  On or before the Interim Plans
Date, Tenant shall deliver to Landlord a full set of design development plans
for the work to be performed by Landlord to prepare the Premises for Tenant’s
occupancy (the “Tenant Improvement Work”), such plans and specifications to be
prepared by an architect, licensed by the Commonwealth of Massachusetts and
reasonably approved by Landlord (the “Interim Plans”). Provided that the
Interim Plans (x) contain at least the information required by, and shall
conform to the requirements of, Exhibit B-3 and (y) comply with
Landlord’s requirements to avoid aesthetic or other material conflicts with or
an adverse effect on the design and function of the balance of the base
building, Landlord shall not unreasonably withhold, delay or condition its
consent thereto; provided, however, that notwithstanding the foregoing,
Landlord’s determination of matters relating to any aesthetic design of
alterations or changes visible outside the Premises shall be in Landlord’s sole
discretion.

 

(2)           Tenant
Plans.   On or before the
Tenant Plans Date, Tenant shall deliver to Landlord a full set of construction
drawings for the Tenant Improvement Work in suitable form for filing with an
application for a building permit with the City of Waltham (the “Tenant Plans”).
Provided that the Tenant Plans (x) contain at least the information
required by, and shall conform to the requirements of, Exhibit B-4, (y) comply
with Landlord’s requirements to avoid aesthetic or other material conflicts
with or adverse effect on the design and function of the balance of the base
building and (z) are consistent with the Interim Plans, Landlord shall not
unreasonably withhold, delay or condition its consent thereto; provided,
however, that notwithstanding the foregoing, Landlord’s determination of
matters relating to any aesthetic design of alterations or changes visible
outside the Premises shall be in Landlord’s sole discretion.

 

                In connection with the foregoing, it is
understood and agreed that (i) Landlord must file for a building permit by
April 21, 2008 (the “Building Permit Application Date”) based on the
Tenant Plans submitted by Tenant on or before the Tenant Plans Date in order to
commence and complete construction of the Tenant Improvement Work within the
time periods contemplated by this Article III, even though Landlord’s
review of the Tenant Plans and the pricing of the Tenant Improvement Work will
not have been completed by such Building Permit Application Date, and (ii) any
delay in the performance of the Tenant Improvement Work caused by the need to
amend the application for a building permit as the result of modification to
the Tenant Plans after the Tenant Plans Date shall be deemed to be a Tenant
Delay (as that term is defined in subsection (B) below) for the purposes
of this Article III.

 

(3)           General
Matters.  In connection
with the foregoing, it is understood and agreed that Landlord’s approval under
this Section 3.2(A) is given solely 

 

41

 

for the benefit of Landlord, and neither
Tenant nor any third party shall have the right to rely upon Landlord’s
approval of the Interim Plans and/or the Tenant Plans (hereinafter collectively
referred to as the “Plans”) for any other purpose whatsoever other than for
satisfying the consent requirements under this Lease. Without limiting the
foregoing, Tenant shall be responsible for all elements of the design of the
Plans (including, without limitation, compliance with law, functionality of
design, the structural integrity of the design, the configuration of the
Premises and the placement of Tenant’s furniture, appliances and equipment),
and Landlord’s approval of the Plans shall in no event relieve Tenant of the
responsibility for such design. Landlord agrees to respond to all Plans within
sixteen (16) days of receipt thereof.  In
its approval of the Tenant Plans, Landlord shall specify those alterations,
additions and improvements that must be removed by Tenant at the expiration or
earlier termination of the Term. 
Landlord’s failure to so respond within said sixteen (16) day period
shall be deemed to constitute Landlord’s approval of the Tenant Plans and
determination that the alterations, additions and improvements shown thereon do
not need to be removed by Tenant at the expiration or earlier termination of
the Term.  If Landlord disapproves of any
Plans, then Tenant shall have the Plans revised by its architect to incorporate
all reasonable objections and conditions presented by Landlord and resubmitted
to Landlord.  Such process shall be
followed until the Plans shall have been approved by the Landlord without
objection or condition. Landlord shall respond to the resubmission of any Plans
by Tenant within five (5) days of Landlord’s receipt thereof (or ten (10) days  in the case of a major
redesign).  Landlord shall have no
obligation to perform the Tenant Improvement Work until the Tenant Plans shall
have been presented to and approved (or deemed approved) by Landlord.  In addition, Tenant shall, promptly execute
and deliver to Landlord any affidavits and documentation submitted to Tenant by
Landlord in order to obtain all permits and approvals necessary for Landlord to
commence and complete the Tenant Improvement Work on a timely basis (“Permit
Documentation”).

 

(B)          Construction Process.

 

(1)           Pricing.

 

(a)           Within seventeen (17)
days after its receipt of the Interim Plans, Landlord shall furnish to Tenant a
written estimate of all costs of the Tenant Improvement Work (the “Interim
Plans Estimated Costs Notice”).  In
preparing the Interim Plans Estimated Costs Notice, Landlord shall obtain
estimates from no less than two (2) of the general contractors listed on Exhibit B-5
attached hereto (it being understood and agreed that throughout the bidding
process contemplated by this subsection (B)(1), Landlord shall 

 

42

 

be obtaining separate bids for the Tenant
Improvement Work and the Base Building Enhancements).  The Interim Plans Estimated Costs Notice
shall include a copy of the estimates received from each of the general contractors.  In all events, Landlord and Tenant shall
cooperate with each other in good faith in order to expedite the estimate
process.  If the estimates submitted by
Landlord are not consistent with the Tenant’s budget (a copy of which has been
submitted to Landlord), Tenant shall have ten (10) days to review and to
modify the Tenant Plans as Tenant deems reasonably necessary to achieve pricing
that is consistent with Tenant’s budget.

 

(b)           Within twenty-four (24)
days after its receipt of the Tenant Plans, Landlord shall furnish to Tenant a
written statement of all costs of the Tenant Improvement Work (the “Tenant
Plans Costs Notice”) for Tenant’s approval.  
In connection with the foregoing, it is understood and agreed that
Landlord shall, after consultation with Tenant and Tenant’s Construction
Representative, make the determination in its reasonable discretion as to
whether to bid the Tenant Improvement Work project as a Guaranteed Maximum
Price “GMP” contract or a lump-sum contract based on the level of completion of
the Tenant Plans (i.e. if such Tenant Plans are sufficiently detailed so that
the project can be bid out at the subcontractor level).

 

(c)           In preparing the Tenant
Plans Costs Notice in the case of a GMP contract, Landlord shall solicit bids
from no less than three (3) of the general contractors listed on Exhibit B-5
attached hereto and shall require that all general contractor bids be based
upon such general contractor having solicited and received bids from no less
than two (2) licensed subcontractors with respect to all major sub-trades
(defined as subcontracts in excess of $50,000.00) forming a part of the Tenant
Improvement Work.  When bids are
solicited, upon the receipt of bids from each of the subcontractors, Landlord
or the general contractor selected to perform the Tenant Improvement Work (the “Contractor”)
shall prepare a bid format which compares each bid, and shall deliver such bid
format, together with copies of the bids themselves to Tenant (together with
Landlord’s designation of the bid Landlord intends to accept).

 

In preparing the Tenant Plans Costs Notice in
the case of a lump-sum contract, Landlord shall solicit bids from no less than
three (3) of the general contractors listed on Exhibit B-5.  When bids are solicited, upon the receipt of
bids, Landlord shall prepare a bid format which compares each bid, and shall
deliver such bid 

 

43

 

format, together with copies of the bids themselves to Tenant (together
with Landlord’s designation of the bid Landlord intends to accept).

 

(d)           Landlord shall have the
right to select the general contractor who will perform the Tenant Improvement
Work, subject to Tenant’s approval (not to be unreasonably withheld,
conditioned or delayed);  provided,
however, that Tenant may not object to the selection of any general contractor
who will be able to complete the Tenant Improvement Work on or prior to the
Estimated Commencement Date and whose bid for the Tenant Improvement Work does
not exceed the lowest received bid by more than ten percent (10%).  In the event that Tenant does not approve of
a general contractor selected by Landlord who can complete the Tenant
Improvement Work on or prior to the Estimated Commencement Date but whose bid
exceeds the lowest received bid by more than ten percent (10%), any delay in
the completion of the Landlord’s Work resulting from Tenant’s failure to
approve Landlord’s selected general contractor shall be deemed to be a Tenant
Delay hereunder.  In all events, Landlord
and Tenant shall cooperate with each other in good faith in order to expedite
the bid process.

 

(2)           Construction
Contract.  Promptly
following Tenant’s approval of the Contractor and the Tenant Plans Cost Notice,
Landlord shall enter into a construction contract (the “Construction Contract”)
with the Contractor for the performance of the Tenant Improvement Work on the
basis of a guaranteed maximum price or lump sum equal to the total amount set
forth in the Tenant Plans Cost Notice approved by Tenant (the “Approved Tenant
Plan Costs”).  Any and all costs to
perform the Tenant Improvement Work in excess of the Approved Tenant Plan Costs
in such Construction Contract shall be paid for by Landlord and not included in
the Tenant Plan Excess Costs unless such excess costs are the result of any Change
Order requested by Tenant or any Tenant Delay. 
Landlord and Tenant shall endeavor to use commercially reasonable value
engineering practices whenever possible in performing the Tenant Improvement
Work.  Landlord agrees to copy Tenant
(which copy may be via email to Tenant’s general counsel) on the first draft of
the proposed construction contract and to deliver to Tenant a copy of the final
Construction Contract executed between Landlord and the Contractor.

 

(3)           Tenant
Plan Excess Costs.

 

To the extent the Approved Tenant Plan Costs exceed the Landlord’s
Contribution set forth in Section 3.6, or the cost of the Tenant
Improvement Work exceeds the Approved Tenant Plan Costs as a result of 

 

44

 

Change Orders requested by Tenant or any Tenant Delay, such excess
costs are hereinafter referred to as “Tenant Plan Excess Costs” and shall be
paid by Tenant as Additional Rent in accordance with said Section 3.6.
Tenant shall notify Landlord in writing, within three (3) days of receipt
by Tenant of the Tenant Plans Cost Notice, of either its approval thereof and
its authorization to Landlord to proceed with the Tenant Improvement Work in
accordance with the Tenant Plans in the event Landlord had no objection to the
Tenant Plans, or changes in the Tenant Plans prepared by Tenant’s architect
which shall be responsive to any objections raised by Landlord. In the event of
the latter modification, Landlord shall, as soon as practicable after Landlord
obtains price quotations for any changes in the Tenant Plans, quote to Tenant
all changes in Tenant Plan Excess Costs resulting from said plan modifications
and whether Landlord approves the revised Tenant Plans. Tenant shall, within
five (5) days after receipt of Landlord’s revised quotation of Tenant Plan
Excess Costs submit to Landlord any revisions to the Tenant Plans required by
Landlord.

 

(4)           Long Lead
Item Release Date; Authorization to Proceed Date.

 

In connection with its review and approval of the Plans, Landlord shall
identify and notify Tenant of any items contained in the Plans which Landlord
then reasonably believes will constitute long lead items.  Landlord will give to Tenant Landlord’s best,
good faith estimate of the period(s) of any delay which would be caused by
a long-lead item.  On or before the Long
Lead Item Release Date, Tenant shall have the right to either (a) revise
the Tenant Plans to eliminate any such long-lead item or (b) authorize
Landlord to construct the Tenant Improvement Work in accordance with the
approved Tenant Plans including any such long-lead items (any such approved
long-lead items being hereinafter called “Tenant Approved Long Lead Items”).
Tenant acknowledges that certain Approved Long Lead Items may still delay
completion of the Tenant Improvement Work and thus result in a Tenant Delay
even if Tenant does authorize them on or before the Long Lead Item Release
Date.

 

Tenant shall, on or before the later date to occur of (i) the
Authorization to Proceed Date, and (ii) three (3) days following
Tenant’s receipt of the Tenant Plans Cost Notice, give Landlord written
authorization to proceed with the Tenant Improvement Work in accordance with
the approved Tenant Plans (“Notice to Proceed”).

 

(5)           Change
Orders. Tenant shall have the right, in accordance herewith, to
submit for Landlord’s approval change proposals subsequent to Landlord’s
approval of the Tenant Plans and Tenant’s approval of the Tenant Plan Excess
Costs, if any (each, a “Change Proposal”). 
Landlord agrees to respond to any such Change Proposal within such time
as is reasonably necessary (taking into consideration the information contained

 

45

 

in such Change Proposal) after the submission thereof by Tenant,
advising Tenant of any anticipated increase in costs (“Change Order Costs”)
associated with such Change Proposal, as well as an estimate of any delay which
would likely result in the completion of the Landlord’s Work if a Change
Proposal is made pursuant thereto (“Landlord’s Change Order Response”). Tenant
shall have the right to then approve or withdraw such Change Proposal within
five (5) days after receipt of Landlord’s Change Order Response. If Tenant
fails to respond to Landlord’s Change Order Response within such five (5) day
period, such Change Proposal shall be deemed withdrawn. If Tenant approves such
Change Proposal, then such Change Proposal shall be deemed a “Change Order”
hereunder and if the Change Order is made and such Change Order increases the
costs of the Tenant Improvement Work in excess of the Approved Tenant Plans
Cost, then the Change Order Costs associated with the Change Order shall be
deemed additions to the Tenant Plan Excess Costs and shall be paid in the same
manner as Tenant Plan Excess Costs are paid as set forth in Section 3.6.

 

(6)           Tenant
Response to Requests for Information and Approvals. Except to
the extent that another time period is expressly herein set forth, Tenant shall
respond to any request from Landlord, Landlord’s architect, Landlord’s contractor
and/or Landlord’s Construction Representative for approvals or information in
connection with the Tenant Improvement Work, within four (4) business days
of Tenant’s receipt of such request.

 

(7)           Time of
the Essence. Time is of the essence in connection with Landlord’s
and Tenant’s obligations under this Section 3.2.

 

(C)          Tenant Delay.

 

(1)           A “Tenant
Delay” shall be defined as the following to the extent it
results in a delay in the Substantial Completion of the Landlord’s Work:

 

(a)           Tenant’s failure to deliver the Interim
Plans to Landlord by the Interim Plans Date, or to deliver the Tenant Plans to
Landlord on or before the Tenant Plans Date, or to provide to Landlord any
Permit Documentation required to be submitted in connection with the application
for a building permit for the Tenant Improvement Work within three (3) business
days after submitted to Tenant by Landlord, or to give authorization to
Landlord to proceed with the Tenant Improvement Work on or before the later to
occur of (i) the Authorization to Proceed Date and (ii) three (3) days
following Tenant’s receipt of the Tenant Plans Cost Notice; or

 

46

 

(b)           Tenant’s failure timely to respond to any
request from Landlord, Landlord’s architect, Landlord’s contractor and/or
Landlord’s Construction Representative within the time periods set forth in Section 3.2(B)(6) above;

 

(c)           Tenant’s failure to pay the Tenant Plan
Excess Costs in accordance with Section 3.6;

 

(d)           Any delay due to Tenant Approved Long Lead
Items;

 

(e)           Any delay due to Change Orders or due to
Tenant’s failure to approve any change orders proposed by Landlord or the
Contractor which would not (i) materially affect the scope or quality of
the Tenant Improvement Work (it being acknowledged and agreed that for the
purposes hereof, the substitution of items of comparable quality to those shown
on the Tenant Plans shall not be deemed to materially affect the scope or
quality of the Tenant Improvement Work), (ii) delay the completion of the
Tenant Improvement Work beyond December 31, 2008 or (iii) materially
increase the costs to complete the Tenant Improvement Work.

 

(f)            Any delay resulting from Tenant’s failure
to timely approve a general contractor (where Tenant was being unreasonable in
withholding, conditioning or delaying its consent or where Tenant does not
approve of the general contractor selected by Landlord who can complete the
Tenant Improvement Work on or prior to the Estimated Commencement Date but
whose bid exceeds the lowest received bid by more than ten percent (10%)); or

 

(g)           Any other delays caused by Tenant, Tenant’s
contractors, architects, engineers or anyone else engaged by Tenant in
connection with the preparation of the Premises for Tenant’s occupancy,
including, without limitation, utility companies and other entities furnishing
communications, data processing or other service, equipment, or furniture.

 

In calculating the duration of any Tenant Delay, such duration shall be
based upon the actual number of days of delay in Substantial Completion of the
Landlord’s Work attributable to the causes described above.  Notwithstanding the foregoing, no event shall
be deemed a Tenant Delay unless Landlord has given Tenant written notice (the “Tenant
Delay Notice”) advising Tenant:  (x) that
a Tenant Delay is occurring and setting forth Landlord’s good faith estimate as
to the likely length of such Tenant Delay; (y) of the basis on which
Landlord has determined that a Tenant 

 

47

 

Delay is occurring; and (z) if readily ascertainable by Landlord,
the actions which Landlord believes that Tenant must take to eliminate such
Tenant Delay.  Landlord shall deliver to
Tenant a Tenant Delay Notice within five (5) business days after Landlord becomes
aware of such Tenant Delay or the periods prior to delivery of a Tenant Delay
Notice will not constitute a Tenant Delay hereunder and provided further that
Landlord agrees to exercise commercially reasonable efforts to immediately
notify Tenant of any act, omission or interference of Tenant, its agents,
employees or contractors in the performance of the Landlord’s Work which
Landlord intends to claim as a Tenant Delay so as to permit Tenant a reasonable
opportunity to promptly mitigate and/or eliminate such act, omission or
interference.  Except to the extent that
a specific time period for action is expressly set forth in this Article III,
Tenant Delays shall not include the normal and ordinary process of
communication between Landlord and Tenant during the design and construction
process or the exercise by Tenant of its rights under this Article III to
inspect the work and/or to dispute the achievement of Substantial Completion of
the Landlord’s Work.  Notwithstanding
anything herein or in this Lease to the contrary, Landlord may satisfy the
Tenant Delay Notice requirement by verbal notification to Tenant’s Construction
Representative at a regularly scheduled construction meeting attended by Tenant’s
Construction Representative so long as such notification satisfies the
requirements of clauses (x), (y) and (z) above and is subsequently
reflected in the written minutes documenting such meeting and circulated to the
attendees, including Tenant’s Construction Representative.

 

(2)           Tenant
Obligations with Respect to Tenant Delays.

 

(a)          Tenant agrees that no
Tenant Delay shall delay commencement of the Term or the obligation to pay
Annual Fixed Rent or Additional Rent, regardless of the reason for such Tenant
Delay or whether or not it is within the control of Tenant or any such
employee. Landlord’s Work shall be deemed substantially completed as of the
date when Landlord’s Work would have been substantially completed but for any
Tenant Delays, as reasonably determined by Landlord in the exercise of its good
faith business judgment and subject to the terms of this Article III.

 

(b)          Tenant shall reimburse
Landlord, as Tenant Plan Excess Costs, the amount, if any, by which the
Landlord’s Work is increased as the result of any Tenant Delay.

 

(c)          Any amounts due from
Tenant to Landlord under this Section 3.2(C)(2) shall be due and
payable within thirty (30) days of billing therefor, and shall be considered to
be Additional Rent. Nothing

 

48

 

contained in this Section 3.2(C)(2) shall limit or qualify or
prejudice any other covenants, agreements, terms, provisions and conditions
contained in this Lease.

 

(D)          Construction
Management Fee.

 

Landlord shall charge a construction management fee (the “Construction
Management Fee”) for its management of the Tenant Improvement Work in an amount
equal to the sum of (x) $325,000.00 and (y) four percent (4%) of the
so-called “hard costs” of the Tenant Improvement Work in excess of
$12,384,675.00 (being the product of (i) $75.00 and (ii) the Rentable
Floor Area of the Premises).  The
Construction Management Fee shall be payable by Tenant as Additional Rent on
the Commencement Date.

 

3.3           Substantial Completion

 

(A)          Subject
to any prevention, delay or stoppage due to Landlord’s Force Majeure (as
hereinafter defined) or attributable to any Tenant Delays, Landlord shall use
reasonable speed and diligence in the construction of the Base Building
Enhancements and the Tenant Improvement Work (hereinafter collectively referred
to as the “Landlord’s Work”) so as to have the same Substantially Completed (as
hereinafter defined) on or before the Estimated Commencement Date set forth in Section 1.1,
but Tenant shall have no claim against Landlord for failure to complete construction
of the Landlord’s Work except as expressly set forth in Section 3.4
below.  Notwithstanding the foregoing, it
is understood and agreed that Landlord shall have no responsibility for the
installation or connection of Tenant’s computer, telephone, other communication
equipment, systems or wiring (although Landlord will reasonably cooperate with
Tenant in order to facilitate the completion by Tenant of this work).

 

(B)           Landlord
will reasonably cooperate with Tenant and Tenant’s Construction Representative
in the performance of the Tenant Improvement Work to provide Tenant access to
the Premises both prior to and during construction and the right to attend all
job meetings between Landlord and Contractor for the Tenant Improvement Work
and to review subcontractor submittals and shop drawings.  Tenant shall have the right to have Tenant’s
Construction Representative or other qualified architect, engineer or
contractor inspect the quality of construction of the Tenant Improvement Work
and the compliance of the Tenant Improvement Work with the Tenant Plans,
provided such inspection is performed at a time mutually agreeable to Landlord
and Tenant and which will not cause any delay in the performance of the
Landlord’s Work.  Landlord agrees to
notify Tenant (which notice may be oral) of all job meetings held with the
Contractor and related to the scheduling, design, modifications, change orders,
or cost reporting or pricing of the Tenant Improvement Work.  Tenant shall have the right to review and
approve change orders to any portion of the Tenant Improvement Work proposed by
Landlord or Contractor, which such approval shall not be unreasonably withheld,
conditioned or delayed;  provided,
however, that Tenant’s approval of any change order which (i) materially affects
the scope or quality of the Tenant Improvement Work (it being acknowledged and
agreed that for the purposes hereof, the substitution of items of 

 

49

 

comparable quality to those shown on the Tenant Plans shall not be
deemed to materially affect the scope or quality of the Tenant Improvement
Work), (ii) delays the completion of the Tenant Improvement Work beyond December 31,
2008 or (iii) materially increases the costs to complete the Tenant Improvement
Work shall be in Tenant’s sole and unfettered discretion.

 

(C)           In
addition to and not in limitation of the insurance required to be maintained by
Landlord under Section 4.3 of this Lease, Landlord shall require the
Contractor and all contractors and subcontractors performing Landlord’s Work to
maintain at all times during the construction of Landlord’s Work commercially
reasonable insurance coverages comparable to those being maintained by
contractors on similar projects in the Market Area.  Landlord shall use commercially reasonable
efforts to cause the Contractor to name Tenant as a certificate holder and
additional insured on all insurance coverages required under the Construction
Contract (provided, however, that the failure or refusal by the Contractor to
thus name Tenant shall not be considered to be a default by Landlord of any of
its obligations under this Lease).  The
cost of such insurance documented as allocable to Tenant Improvement Work under
this subsection (C) shall be a part of the Approved Tenant Plan Costs.

 

(D)          Landlord
shall provide Tenant with at least thirty (30) days prior written notice of the
date Landlord anticipates that the Landlord’s Work will be Substantially
Complete (the “Anticipated Delivery Date”) and shall provide Tenant with
written notice of any revisions or changes to such Anticipated Delivery Date,
and if the Landlord’s Work is not Substantially Complete as of the Anticipated
Delivery Date set forth in Landlord’s notice, then the Substantial Completion
Date will not be deemed to have occurred unless Tenant has been provided with
at least fifteen (15) days prior written notice of a revised Anticipated
Delivery Date and the Landlord’s Work is actually Substantially Completed as of
such revised Anticipated Delivery Date. 
The “Substantial Completion Date” shall be defined as the date on which
the Landlord’s Work has been Substantially Completed. “Substantial Completion”
and “Substantially Completed” shall each mean the date on which (1) the
Landlord’s Work has been completed except for so-called “punch-list” items of
work and adjustment of equipment and fixtures the incompleteness of which do
not cause unreasonable interference with Tenant’s use of the Premises for the
Permitted Uses or Tenant’s right to lawfully occupy the Premises, and (2) permission
has been obtained from the applicable governmental authority (which such
permission may be evidenced by the signature(s) of the appropriate
municipal official(s) on the building permit for the Tenant Improvement Work)
to the extent required by law, for occupancy by Tenant of the Premises for the
Permitted Uses.  The above
notwithstanding the parties shall schedule a joint inspection of the Premises
at a mutually convenient time to confirm that the Landlord’s Work has been Substantially
Completed and to identify any minor details, adjustments or other items of the
Landlord’s Work which in accordance with good construction practice should be
performed after Substantial Completion thereof (collectively, the “Punchlist
Items”), if any, in writing; provided, however, such joint inspection shall
take place at least five (5) business days prior to the date Landlord has
notified Tenant (in accordance with the requirements of this Article III)
will be the Substantial Completion Date. 
If after such joint inspection, Landlord and Tenant 

 

50

 

disagree as to whether the Landlord’s Work is Substantially Complete or
as to the existence or nature of any Punchlist Items, and such dispute has not
been resolved within ten (10) days of the joint inspection, either party
shall have the right to submit such dispute to expedited arbitration under Section 3.7
hereof (provided, however, the during the pendency of any such dispute and/or
arbitration proceeding, the Substantial Completion Date shall be as determined
by Landlord, subject to adjustment upon the resolution of the dispute by the
parties or by arbitration).  After
Substantial Completion, Landlord shall proceed diligently to complete all Punch
List Items at Landlord’s expense within sixty (60) days after the occurrence of
Substantial Completion (except for items which can only be performed during
certain seasons or weather, which items shall be completed diligently as soon
as the season and/or weather permits).

 

Notwithstanding anything contained herein to the contrary, in the event
that Landlord is delayed in the performance of Landlord’s Work or cannot obtain
permission from the applicable governmental authority for the occupancy of the
Premises by reason of any Tenant Delay, then the Substantial Completion Date
shall be deemed to be the date that Landlord would have achieved Substantial
Completion or obtained such governmental permission, but for such Tenant Delay.
Tenant agrees that no Tenant Delay shall delay commencement of the Term or the
obligation to pay rent, regardless of the reason for such delay or whether or
not it is within the control of Tenant or any such employee.  Nothing contained in this paragraph shall
limit or qualify or prejudice any other covenants, agreements, terms,
provisions and conditions contained in this Lease.

 

(E)           When
used in this Lease “Landlord’s Force Majeure” shall mean any prevention, delay
or stoppage due to governmental regulation, strikes, lockouts, acts of God,
acts of war, terrorist acts, civil commotions, unusual scarcity of or unusual
inability to obtain labor or materials (to the extent that such scarcity or
inability is the result of conditions not prevalent in the market, and
otherwise unforeseen, as of the date of this Lease), labor difficulties,
casualty or other causes reasonably beyond Landlord’s control or attributable
to Tenant’s wrongful action or inaction; provided, however, that in no event
shall Landlord’s financial inability constitute a cause beyond Landlord’s
reasonable control. Landlord shall provide Tenant with written notice within
forty-eight (48) hours after the occurrence of any Landlord’s Force Majeure
event hereunder (together with Landlord’s good faith estimate of the projected
duration of such Landlord’s Force Majeure event), and shall also notify Tenant
as soon as such Landlord’s Force Majeure event has ended. In no event shall any
Landlord’s Force Majeure under this Section 3.3 (D) exceed a total of
ninety (90) days in the aggregate. In addition, it is expressly understood and
agreed that any casualty or Taking (as defined in Article VI below) that
occurs prior to the Commencement Date of this Lease shall be deemed to be an
event of Landlord’s Force Majeure and shall be governed by the provisions of
this Article III related thereto and not by the provisions of said Article VI.

 

(F)           Landlord
shall permit Tenant access for installing Tenant’s trade fixtures in portions
of the Premises prior to Substantial Completion when it can be done without
material interference with remaining work or with the maintenance of harmonious
labor relations.  Any such early access
by Tenant hereunder shall not in and of itself constitute 

 

51

 

acceptance by Tenant of the Landlord’s Work or achievement by Landlord
of Substantial Completion of the Landlord’s Work.  Landlord agrees to exercise commercially
reasonable efforts to provide Tenant with access to a clean and secure server
room (not to exceed 1,400 square feet of rentable floor area) and related IDF
closets, with electric power, lighting and 
heating, ventilating and air conditioning service supplied thereto and
operational therein, at least forty-five (45) days prior to the Anticipated
Delivery Date in order to allow for Tenant to access the same and install and
test its IT equipment prior to the Substantial Completion Date.  Any such access by Tenant shall be at upon
all of the terms and conditions of the Lease (other than the payment of Annual
Fixed Rent, Tenant’s Electricity Payment, Operating Expenses Allocable to the
Premises and Landlord’s Tax Expenses Allocable to the Premises) and shall be at
Tenant’s sole risk, and Landlord shall not be responsible for any injury to
persons or damage to property resulting from such early access by Tenant unless
resulting from or caused by the negligence or willful misconduct of Landlord or
Landlord’s agents, employees, affiliates or contractors.

 

(G)           If,
prior to the date that the Premises are in fact actually Substantially
Complete, the Premises are deemed to be Substantially Complete pursuant to the
provisions of this Section 3.3 (i.e. and the Commencement Date has
therefore occurred), Tenant shall not (except with Landlord’s consent and
provided Landlord proceeds with reasonable diligence to complete Landlord’s
Work) be entitled to take possession of the Premises for the Permitted Uses
until the Landlord’s Work is in fact actually Substantially Complete.

 

3.4           Tenant’s Remedies Based on Delays in
Landlord’s Work

 

If the Substantial Completion Date has not occurred by December 1,
2008 as a result of a Landlord Delay, then the Rent Commencement Date under
this Lease shall be postponed day for day on account of such Landlord
Delay.  If the Substantial Completion
Date has not occurred by February 1, 2009 (which date shall be extended
automatically for such periods of time as Landlord is prevented in delivering
the same by reason of Landlord’s Force Majeure (subject to the limitations
thereon set forth in Section 3.3(D)) or any Tenant Delay (without limiting
Landlord’s other rights on account thereof), the Annual Fixed Rent and payments
on account of Operating Expenses Allocable to the Premises and Landlord’s Tax
Expenses Allocable to the Premises shall be abated, from and after the Rent
Commencement Date, by one (1) day for each day beyond February 1,
2009 (as so extended) that the Substantial Completion Date is delayed.

 

If the Substantial Completion Date has not occurred on or before April 30,
2009 which date shall be extended automatically for such periods of time as
Landlord is prevented in delivering the same by reason of Landlord’s Force
Majeure (subject to the limitations thereon set forth in Section 3.3(D))
or any Tenant Delay (without limiting Landlord’s other rights on account
thereof), the Annual Fixed Rent and payments on account of Operating Expenses
Allocable to the Premises and Landlord’s Tax Expenses Allocable to the Premises
shall be abated, from and after the Rent Commencement Date, by two (2) days
for each day beyond April 30, 2009 (as so extended) that the Substantial
Completion Date is delayed.

 

52

 

If the Substantial Completion Date shall not have occurred by the
Outside Completion Date (which date shall be extended automatically for such
periods of time as Landlord is prevented in delivering the same by reason of
Landlord’s Force Majeure (subject to the limitations thereon set forth in Section 3.3(D))
or any Tenant Delay (without limiting Landlord’s other rights on account
thereof), Tenant shall have the right to terminate this Lease effective as of
the tenth (10th) business day after receipt by Landlord of a notice from Tenant
given on or after the Outside Completion Date (as so extended) indicating
Tenant’s desire to so terminate; and upon the giving of such notice, the Term
of this Lease shall cease and come to an end without further liability or
obligation on the part of either party as of the expiration of the aforesaid
ten (10) business day period, unless the Substantial Completion Date shall
in fact have occurred on or before such expiration date.

 

The foregoing rent abatements and right of termination shall be Tenant’s
sole and exclusive remedies at law or in equity or otherwise for the failure of
the Substantial Completion Date to have occurred within the time periods set
forth above.

 

3.5           Quality and Performance of Work

 

(A)          All
construction work required or permitted by this Lease shall be done in a good
and workmanlike manner and in compliance with all applicable laws, ordinances,
rules, regulations, statutes, by-laws, court decisions, and orders and
requirements of all public authorities (“Legal Requirements”), all Insurance
Requirements (as defined in Section 5.7 hereof) and, with respect to the
Tenant Improvement Work, with the Tenant Plans. Without limiting the generality
of the foregoing, it is acknowledged and agreed that Landlord shall be
responsible, at its sole cost, for ensuring that the construction of the
Landlord’s Work and the Base Building Work complies with all provisions of the
Americans With Disabilities Act in effect and applicable to the Building and
the Site as of the date of the Substantial Completion Date (with respect to the
Landlord’s Work) and as of the date of this Lease (with respect to the Base
Building Work).  Any work performed by or
on behalf of Tenant under this Lease shall be coordinated with any work being
performed by or on behalf of Landlord and in such manner as to maintain harmonious
labor relations.

 

(B)           Each
party authorizes the other to rely in connection with design and construction
upon the written approval or other written authorizations on such party’s
behalf by any Construction Representative of the party named in Section 1.1
or any person hereafter designated in substitution or addition by notice to the
party relying. Each party may inspect the work of the other at reasonable times
and shall promptly give notice of observed defects. Tenant acknowledges that
Tenant is acting for its own benefit and account and that Tenant will not be
acting as Landlord’s agent in performing any work that may be undertaken by or
on behalf of Tenant under this Lease, and accordingly, no contractor,
subcontractor or supplier of Tenant shall have a right to lien Landlord’s
interest in the Property in connection with any such work.

 

(D)          Landlord
warrants to Tenant that: (a) the materials and equipment furnished in the
performance of the Landlord’s Work and the Base Building Work will be of good 

 

53

 

quality; (b) the Landlord’s Work and the Base Building Work will
be free from defects not inherent in the quality described in the applicable
plans and specifications therefor; and (c) the Landlord’s Work and the
Base Building Enhancements and all components thereof shall be weather-tight
and otherwise in good working order and condition and shall comply with all
Legal Requirements as of the Substantial Completion Date (with respect to the
Landlord’s Work) and as of the date of this Lease (with respect to the Base
Building Work). Any portion of the Landlord’s Work or the Base Building Work
not conforming to the foregoing requirements will be considered defective.
Landlord’s warranty hereunder shall not apply to the extent of damage or defect
caused by (1) the negligent acts or omissions or the willful misconduct of
Tenant, its employees, agents, contractors, sublessees or permitted occupants
under Section 5.6.7 below (hereinafter, the “Tenant Parties”), (2) improper
operation by any of the Tenant Parties, or (3) normal wear and tear and
normal usage.

 

The foregoing warranty (x) with respect to the Landlord’s Work
shall commence on the date on the Substantial Completion Date and shall expire
on the day immediately preceding the first anniversary of the Substantial
Completion Date, and (y) with respect to the Base Building Work shall
commence on the date on which Landlord has completed the Base Building Work and
expire on the date which is eleven (11) months after the commencement of the
warranty on the Base Building Work (either such period, as applicable, being
hereinafter referred to as the “Warranty Period”), provided that in any event
Tenant is required to deliver notice to Landlord of any defects at least thirty
(30) days prior to the expiration of the applicable Warranty Period (the “Warranty
Notice Period”) in order to permit Landlord to take action to enforce Landlord’s
warranty rights with respect to the Landlord’s Work and/or the Base Building
Work, as applicable, provided, however, that Landlord shall exercise
commercially reasonable efforts to enforce Landlord’s warranty rights with
respect to any notice delivered by Tenant after the Warranty Notice Period.
Landlord agrees that it shall, without cost to Tenant, correct any portion of
the Landlord’s Work and/or Base Building Work which during the applicable
Warranty Period is found not to be in accordance with the warranties set forth
in this subsection (D).  All defective
items shall, subject to Tenant Delays and provided that Tenant has afforded
Landlord with reasonable access to the Premises subject to the terms and
provisions of Section 5.9 below in order to undertake the work described
herein, be completed by Landlord within a reasonable period of time to be
mutually agreed upon by Landlord and Tenant given the nature of the defect at
issue after Landlord’s receipt of a written notice from Tenant setting forth in
reasonable detail the nature of the defect and Tenant’s assessment of why it
believes such defect is covered by the warranties set forth herein (Landlord
hereby agreeing to use reasonable efforts to minimize interference with Tenant’s
use and enjoyment of the Premises, consistent with the fact that Landlord is
undertaking to remedy the defective work). 
The foregoing warranty and the expiration of the applicable Warranty
Period shall not serve to limit Landlord’s obligations  under this Lease, including without
limitation, Article IV and Exhibit C nor reduce or eliminate any of
the limitations on or exclusions  from
Operating Expenses set forth in Section 2.6, and Landlord covenants that
the Premises shall be delivered to the Tenant on the Commencement Date with all
base building systems identified in Section 4.1 in good and proper working
order for new, Class A buildings in 

 

54

 

the Market Area and with the Building (including the roof and façade)
weathertight.

 

(E)           Except
to the extent to which Tenant shall have given Landlord notice of respects in
which Landlord has not performed Landlord’s construction obligations under this
Article III within the applicable Warranty Notice Period, Tenant shall be
deemed conclusively to have approved Landlord’s construction and shall have no
claim that Landlord has failed to perform any of Landlord’s obligations under
this Article III.  Notwithstanding
the foregoing, Landlord agrees that upon and after the expiration of the
applicable Warranty Notice Period, Landlord shall, at Tenant’s request and at
Tenant’s sole cost and expense, enforce and exercise on behalf of Tenant any
and all construction and manufacturers’ warranties and guaranties with respect
to the Landlord’s Work and/or the Base Building Work, as applicable, to the
extent still in force and effect at the time of Tenant’s request. The provisions
of this subsection (E) shall not relieve Landlord of any obligation which
Landlord has to make repairs or to perform maintenance pursuant to Article IV
of the Lease nor limit any rights and remedies Tenant may have at law or in
equity against the Contractor or any other party (other than Landlord)
performing work or supplying materials in connection with the Landlord’s Work
and/or the Base Building Work.

 

3.6           Landlord’s Contribution; Tenant Plan
Excess Costs

 

(A)          As an inducement to
Tenant’s entering into this Lease, Landlord shall provide to Tenant an
allowance in an amount not to exceed Eight Million One Hundred Four Thousand
Three Hundred Fifty and 00/100 Dollars ($8,104,350.00) (“Landlord’s
Contribution”) to be used and applied by Landlord towards the cost of the
Tenant Improvement Work. For the purposes hereof, the cost of the Tenant
Improvement Work shall include the cost of leasehold improvements and
architectural and engineering fees, mechanical, electrical and plumbing plans,
telephone and computer systems and tel/data cabling installation (provided,
however, that the amount of Landlord’s Contribution that may be applied towards
the reimbursement of architectural and engineering fees, mechanical, electrical
and plumbing plans, telephone and computer systems and tel/data cabling
installation shall be capped at an amount equal to the product of (i) $15.00
and (y) the Rentable Floor Area of the Premises initially demised to
Tenant), but shall not include any of Tenant’s other personal property, trade
fixtures or trade equipment.  Tenant
agrees that, as part of the Tenant Improvement Work, each floor of the Premises
shall be improved to an average value of at least $40.00 per square foot of the
Rentable Floor Area of the Premises located on such floor.

 

(B)           Landlord
shall be under no obligation to apply any portion of the Landlord’s
Contribution for any purposes other than as provided in this Section 3.6.
In addition, in the event that (i) Tenant has received notice from
Landlord that it is in default of its obligations under this Lease and such
default remains uncured, or (ii) there are any liens which are not bonded
to the reasonable satisfaction of Landlord against Tenant’s interest in the
Lease or against the Building or the Site arising out of any work performed by
Tenant or any litigation in which Tenant is a party, then, from and after the
date of such event (“Event”), Landlord may suspend funding the remaining
balance of the Tenant Allowance until the condition giving rise to the Event
has been cured or otherwise 

 

55

 

rectified to Landlord’s reasonable satisfaction. Further, the Landlord’s
Contribution shall only be applied towards the cost of leasehold improvements,
and, except as expressly provided in subsection (A) above, in no event
shall Landlord be required to make application of any portion of the Landlord’s
Contribution towards Tenant’s personal property, trade fixtures or moving
expenses or on account of any supervisory fees, overhead, management fees or
other payments to Tenant, or any partner or affiliate of Tenant.  In the event that the costs of the Tenant
Improvement Work are less than the Landlord’s Contribution, Tenant shall not be
entitled to any payment or credit nor shall there be any application of the
same toward Annual Fixed Rent or Additional Rent owed by Tenant under this
Lease.

 

(C)           To the extent, if any,
that there are Tenant Plan Excess Costs, Tenant shall reimburse Landlord, as
Additional Rent, within twenty-one (21) days after the receipt of a Funding
Request (as hereinafter defined) from Landlord, the Tenant Plan Excess Costs in
the proportion that the Tenant Plan Excess Costs bear to the total cost of the
Tenant Improvement Work.  Landlord shall
submit disbursement requests (each, a “Funding Request”) to Tenant not more
than once during each calendar month along with, for each payment, a payment
request, which shall be substantially in the form of an Application for Payment
on AIA Document G702 and G703 (it being acknowledged and agreed that individual
contractors often make slight modifications to these AIA Documents) certified
by the Contractor seeking that percentage of the Tenant Plan Excess Costs (less
the applicable holdback amount specified in the Construction Contract for such
work) which corresponds to the percentage of completion of the Tenant
Improvement Work which has been achieved as of the date of such payment
request.  With respect to the first
Funding Request, Landlord and/or the Contractor will submit to Tenant with such
first Funding Request insurance certificate(s) or policy(ies) (or
endorsement(s) to existing policy(ies)) evidencing that all coverages
required under the Lease are in effect with respect to the Premises and the
Tenant Improvement Work.  With respect to
the final Funding Request, Landlord and/or the Contractor shall submit Tenant
with such final Funding Request (i) evidence of insurance as described in
the immediately preceding sentence, (ii) a copy of the document evidencing
the permission of the applicable governmental authority to the extent required
by law for the occupancy of the Premises for the Permitted Uses (which such
permission may be evidenced by the signature(s) of the appropriate
municipal official(s) on the building permit for the Tenant Improvement
Work).  With respect to all interim
Funding Requests, Landlord and/or the Contractor shall submit to Tenant with
such Funding Requests, (a) lien waivers or releases in anticipation of
payment for the Tenant Improvement Work from the Contractor and all major
subcontractors with respect to which payment is being requested, and (B) a
certificate from the Contractor (if not already included in the AIA G702 or AIA
G703 documentation submitted to Tenant) specifying the percentage of completion
of the Tenant Improvement Work which has been achieved as of the date of such
certificate.  Tenant shall have the right
to have Tenant’s Construction Representative or architect, if Tenant so elects,
inspect the Tenant Improvement Work to confirm completion of the work
represented by the Funding Request, provided that any such inspection occurs
within five (5) business days after receipt of the applicable Funding
Request, subject to delays caused by Landlord’s failure to provide access to
the Retained Premises at reasonable times to Tenant’s Construction 

 

56

 

Representative or architect for
such inspection (which such five (5) business day period shall be included
within the twenty-one (21) day period within which Tenant has to fund the
applicable portion of the Tenant Plan Excess Costs).

 

(D)          Landlord shall, upon
request from Tenant or Tenant’s Construction Representative, deliver to Tenant
copies of any and all operation and maintenance manuals covering the fixtures,
equipment and machinery constituting a part of the Landlord’s Work.

 

3.7           Arbitration

 

Any disputes relating to provisions or obligations in this Article III
or arising from the performance of the parties under this Article III
shall be resolved by arbitration, under the Construction Industry Rules of
the American Arbitration Association (the “AAA”), and subject to the provisions
of Mass. General Laws, c. 251, with hearings conducted as expeditiously as
practicable and with no undue delay, and in no event later than sixty (60) days
after the date of demand, in Boston, Massachusetts. Prior written notice of
application by either party for arbitration shall be given to the other at
least ten (10) days before filing of any demand for arbitration hereunder.
Any award of an arbitrator rendered hereunder shall be subject to confirmation
and entry of judgment thereon in any court of competent jurisdiction sitting in
Suffolk or Middlesex Counties, Massachusetts, and the parties hereby consent to
the jurisdiction of such court. The costs and administration expenses of each
arbitration hereunder and their apportionment between the parties shall be
borne equally by the parties, and each party shall be responsible for its own
attorneys’ fees and expert witness fees. In connection with the foregoing, it
is expressly understood and agreed that the parties shall continue to perform
their respective obligations under this Lease during the pending of any such
arbitration proceeding hereunder (with any adjustments or reallocations to be
made on account of such continued performance as determined by the arbitrator
in his or her award).

 

ARTICLE IV

 

LANDLORD’S COVENANTS;
INTERRUPTIONS AND DELAYS

 

4.1           Landlord Covenants

 

4.1.1        Services
Furnished by Landlord

 

Landlord shall furnish to the Premises and the Building the services,
utilities, facilities and supplies set forth in Exhibit C in all events at
least equal to those customarily provided by landlords in comparable Class A,
high quality, multi-tenant office buildings in the Market Area, subject to
escalation reimbursement in accordance with, and as limited by, Section 2.6.

 

57

 

4.1.2        Additional Services Available to Tenant

 

Landlord shall furnish, at Tenant’s expense, reasonable additional
Building services which are usual and customary in similar office buildings in
the Market Area upon reasonable advance request of Tenant at reasonable and
equitable rates from time to time established by Landlord, subject to the
provisions of Exhibit C of this Lease. 
Tenant agrees to pay to Landlord, as Additional Rent, (i) the cost
of any such additional Building services requested by Tenant and (ii) the
cost of any additions, alterations, improvements or other work performed by
Landlord in the Premises at the request of Tenant, within thirty (30) days
after being billed therefor. Landlord agrees that Tenant may install, at Tenant’s
sole cost and expense (but subject to payment from Landlord’s Contribution
subject to and in accordance with Article III hereof but only to the
extent such installation is part of Tenant’s Work) in accordance with, and
subject to, the applicable provisions of this Lease (including Article VI
hereof) an additional or supplemental heating, ventilating and air-conditioning
system (a “Supplemental HVAC System”). The costs of installation, maintenance
and operation of the Supplemental HVAC System (including all costs associated
with the installation, maintenance and operation of any equipment required in
order to generate chilled water) shall be borne by Tenant. All facilities,
equipment, machinery and ducts installed by Tenant in connection with the
Supplemental HVAC System shall be subject to Landlord’s prior approval, which
approval shall be granted or withheld in accordance with the provisions of Article VI
hereof. Tenant agrees to cooperate fully with Landlord and to abide by all
reasonable regulations and requirements which Landlord may prescribe in
accordance with this Lease for the proper connection, functioning and
protection of the Supplemental HVAC System.

 

4.1.3        Repairs and Maintenance

 

Except as otherwise provided in Article VI and subject to the
escalation provisions of Section 2.6 (including the exclusions from
Landlord’s Operating Expenses set forth in said Section 2.6), Landlord
shall (i) make such repairs and/or replacements (as appropriate) to all
structural and non-structural portions and components of the roof systems
(including roof membranes) and the mechanical, electrical, plumbing, sprinkler,
fire/life safety, access control and the heating, ventilating and air
conditioning (“HVAC”) systems serving the Premises and the Building (but
exclusive of any specialty installations installed or requested by Tenant that
exclusively serve the Premises which shall be maintained at Tenant’s sole cost
and expense), the Common Areas and the Structural Elements (as hereafter
defined), all as may be necessary to keep them in good and operable condition
consistent with the level of maintenance and repair customary for comparable,
first-class office properties in the Market Area, and (ii) maintain the
Property (exclusive of Tenant’s responsibilities under this Lease) in a first
class manner comparable to the maintenance of similar first-class office
properties in the Market Area. The term “Structural Elements” shall mean the
structural components of the Building, including without limitation the roofs,
foundations, exterior structural walls, floor/ceiling slabs, exterior glass and

 

58

 

mullions, columns, beams, shafts, elevator cabs and other load-bearing
elements of the Building.

 

4.1.4        Signage

 

(A)          Premises
Signage. Landlord shall provide and install, at Landlord’s expense, letters
or numerals on the main entrance door to the Premises to identify Tenant’s name
and Building address; all such letters and numerals shall be in the building
standard graphics and no others shall be used or permitted on the Premises. In
addition, Tenant shall have the right, at its sole cost and expense and subject
to Landlord’s right to reasonably approve all graphics, to install letters or
numerals on all other entrance doors to the Premises to identify Tenant’s name
and Building address and that of its subtenants and Permitted Occupants.

 

(B)           Lobby
Signage. Landlord shall, during the Term of this Lease, provide Tenant with
a listing of Tenant’s name on the Building Directory and, at Tenant’s request,
the name of Tenant’s subtenants.  The
initial listing of Tenant’s name shall be at Landlord’s cost and expense.  Any changes, replacements or additions by
Tenant to such directory shall be at Tenant’s sole cost and expense. In
addition, Tenant shall have the non-exclusive right to include Tenant’s name
and logo on “Impact Signage” to be installed by Landlord at Landlord’s cost and
expense in the main lobby of the Building as shown on the conceptual plan
attached hereto as Exhibit I-1.  At
Tenant’s request, Landlord will consider in its sole discretion permitting any
subtenant of Tenant’s subleasing a full floor or more of the Premises to
install, at Tenant’s sole cost and expense, Impact Signage in the main lobby of
the Building, provided that Landlord shall be under no obligation to permit the
same unless Tenant leases the entirety of the Total Rentable Floor Area of the
Building (in which event Tenant shall be entitled to utilize all available
Impact Signage in the Building and to provide the same to its subtenants as it
deems appropriate, subject to Landlord’s reasonable approval of the design and
location of such subtenant Impact Signage).

 

(C)           Monument
Signage. Landlord shall use reasonable efforts to obtain all necessary
permits to install monument signage (the “Monument”) at the entrance to the
Building.  If Landlord receives the
required permits, Landlord shall install the Monument, and Tenant shall have
the non-exclusive right to have its name and logo on said Monument (“Monument
Signage”) substantially in accordance with the conceptual plan attached hereto
as Exhibit I-2; provided that if any material changes are made to the
Monument from what is shown on Exhibit I-2, the location of Tenant’s
Monument Signage shall always be in a similar position of prominence as that
shown on said exhibit.  The initial
listing of Tenant’s name and logo, after reasonable approval by Tenant, on the
Monument shall be at Landlord’s cost and expense; provided, however, any
changes, replacements or additions to the Monument Signage after initial
installation requested by Tenant shall be done at Tenant’s sole cost and expense
and shall be subject to Landlord’s approval in Landlord’s reasonable discretion
(so long as such changes, 

 

59

 

replacements or additions are consistent with Exhibit I-2).

 

(D)          Building
Signage. Tenant shall have the right, at its sole cost and expense, to
design and install one (1) identification sign with Tenant’s name and logo
on the exterior façade of the Building (the “Building Signage”), subject to
applicable zoning requirements and other applicable laws and to Tenant
obtaining all necessary permits and approvals therefor (Landlord hereby
agreeing to cooperate with Tenant, at no cost or expense to Landlord, in Tenant’s
obtaining of such permits and approvals). To the extent permitted by applicable
zoning laws, such Building Signage may be illuminated in the manner described
on the conceptual plan attached hereto as Exhibit I-3. Tenant’s right to
Building Signage shall be exclusive so long as Tenant shall directly lease and
occupy at least 100,000 square feet of rentable floor area in the Building and
Landlord shall not grant or permit other tenants or third parties or Landlord
(including any affiliates of Landlord) the right to maintain exterior signage
on the façade of the Building.  The
Building Signage shall be substantially in accordance with and in the location
shown on Exhibit I-3; provided, however, that the final design thereof
shall be subject to Landlord’s approval in Landlord’s reasonable discretion so
long as the final design and location thereof is not materially different than
that shown on the conceptual plan attached as Exhibit I-3.  In the event that, at any time during the
Term, Tenant ceases to directly lease and occupy less than 75,000 square feet
of rentable floor area in the Building, Tenant shall, upon Landlord’s written
request and at Tenant’s sole cost and expense, remove the Building Signage
installed by Tenant pursuant to this Section 4.1.4 (D) in accordance
with the provisions of subsection (E) below.

 

In the event that Landlord or any of its affiliates, parent companies
or subsidiaries constructs a new building on property adjacent to the Site that
materially obstructs or otherwise adversely impacts the visibility of the
Building Signage, Tenant shall have the one-time right, at its sole cost and
expense and subject to all terms and provisions of this Section 4.1.1 as
are applicable to the Building Signage (including, without limitation, Landlord’s
approval rights and all applicable occupancy thresholds), to relocate the Building
Signage to another location on the exterior façade of the Building.

 

(E)           Conditions.
Notwithstanding the foregoing provisions of this Section to the contrary,
within thirty (30) days after the date on which the Term of this Lease is
terminated due to a Tenant default, then Tenant shall, at its cost and expense,
remove the Monument Signage, the Impact Signage and the Building Signage and
restore all damage to the Monument and the Building caused by the installation
and/or removal of such Monument Signage, Impact Signage or Building Signage.
Such removal and restoration shall be performed in accordance with the terms
and conditions governing alterations pursuant to Section 5.2 herein. The
right to the Building Signage granted pursuant to this Section 4.1.4 is
personal to Phase Forward, Inc. and any Permitted Transferee (as that term
is defined in Section 5.6.1 below). 
The right to the Monument Signage and Tenant’s Impact Signage 

 

60

 

may be transferred (x) to any Permitted Transferee and (y) subject
to Landlord’s reasonable approval, to any other approved assignee or subtenant,
but no more than one (1) time during the Lease Term. So long as Tenant
meets the occupancy requirements of subsection (D) above related to the
right to maintain the Building Signage, Landlord shall not name the Building
after or change the address of the Building to include the name of any
corporate or business entity without Tenant’s prior written consent in Tenant’s
sole discretion.

 

4.2           Interruptions and Delays in Services and
Repairs, Etc

 

(A)          Except as may be
expressly set forth in subsection (C) below Landlord shall not be liable
to Tenant for any compensation or reduction of rent by reason of inconvenience
or annoyance or for loss of business arising from the necessity of Landlord or
its agents entering the Premises for any of the purposes in this Lease
authorized, or for repairing the Premises or any portion of the Building
however the necessity may occur. In case Landlord is prevented or delayed from
making any repairs, alterations or improvements, or furnishing any services or
performing any other covenant or duty to be performed on Landlord’s part, by
reason of any cause reasonably beyond Landlord’s control, including without limitation
the causes set forth in Section 3.2 hereof as being reasonably beyond
Landlord’s control, Landlord shall not be liable to Tenant therefor, nor,
except as expressly otherwise provided in Article VI, shall Tenant be
entitled to any abatement or reduction of rent by reason thereof, or right to
terminate this Lease, nor shall the same give rise to a claim in Tenant’s favor
that such failure constitutes actual or constructive, total or partial,
eviction from the Premises.

 

(B)           Landlord reserves the
right to stop any service or utility system, when necessary by reason of
accident or emergency, or until necessary repairs have been completed;
provided, however, that in each instance of stoppage, Landlord shall exercise
reasonable diligence to eliminate the cause thereof. Except in case of
emergency repairs, Landlord will give Tenant reasonable advance notice of any
contemplated stoppage and will use reasonable efforts to avoid unnecessary
inconvenience to Tenant by reason thereof.

 

(C)           Notwithstanding anything
to the contrary in this Lease contained, if due to (i) any repairs,
alterations, replacements, or improvements made by Landlord, (ii) Landlord’s
failure to make any repairs, alterations, or improvements required to be made
by Landlord hereunder, or to provide any service required to be provided by
Landlord hereunder, or to remediate any Hazardous Materials (as that term is
defined in Section 5.3 below and provided such Hazardous Materials were
not used, stored or disposed of at the Property by Tenant or its agents,
employees, subtenants or contractors), or (iii) failure of electric
supply, water and/or sewer service, all elevator service, HVAC service or all
access to the Premises, any portion of the Premises becomes untenantable so
that for the Premises Untenantability Cure Period, as hereinafter defined, the
continued operation in the ordinary course of Tenant’s business is materially
adversely affected (including, without limitation, as the result of the
Premises being rendered inaccessible as the result of any of the circumstances
described in subsections (i), (ii) or (iii) above), then, provided
that Tenant ceases to use the affected portion of the Premises during the
entirety of the Premises Untenantability Cure Period by reason of such
untenantability, and that such 

 

61

 

untenantability and Landlord’s
inability to cure such condition is not caused by the fault or neglect of
Tenant or Tenant’s agents, employees or contractors, Annual Fixed Rent, Operating
Expenses Allocable to the Premises and Landlord’s Tax Expenses Allocable to the
Premises shall thereafter be abated in proportion to the impact on the
continued operation in the ordinary course of Tenant’s business until the day
such condition is completely corrected. For the purposes hereof, the “Premises
Untenantability Cure Period” shall be defined as five (5) consecutive
business days after Landlord’s receipt of written notice from Tenant of the
condition causing untenantability in the Premises, provided however, that the
Premises Untenantability Cure Period shall be ten (10) consecutive
business days after Landlord’s receipt of written notice from Tenant of such
condition causing untenantability in the Premises if either the condition was
caused by causes beyond Landlord’s control or Landlord is unable to cure such
condition as the result of causes beyond Landlord’s control.

 

(D)          Notwithstanding anything
to the contrary herein contained, if due to (i) any repairs, alterations,
replacements, or improvements made by Landlord, (ii) Landlord’s failure to
make any repairs, alterations, or improvements required to be made by Landlord
hereunder, or to provide any service required to be provided by Landlord
hereunder, or to remediate any Hazardous Materials (as that term is defined in Section 5.3
below and provided such Hazardous Materials were not used, stored or disposed
of at the Property by Tenant or its agents, employees, subtenants or
contractors), or (iii) failure or inadequacy of electric supply, water and/or
sewer service, all elevator service, HVAC service or all access to the
Premises, any material portion of the Premises becomes untenantable for a
period (“Untenantability Period”) of five (5) consecutive months (which
five (5) month period shall be extended by the period of time, which shall
not exceed an additional one (1) month, that Landlord is delayed in curing
such condition as the result Landlord’s Force Majeure) after Landlord’s receipt
of written notice of such condition from Tenant, then, provided that Tenant
ceases to use the affected portion of the Premises during the entire period of
such untenantability, and Landlord’s inability to cure such condition is not
caused the fault or neglect of Tenant, or Tenant’s agents, employees or
contractors, then Tenant may terminate this Lease by giving Landlord written
notice as follows:

 

(1)           Said notice shall be
given after the expiration of the Untenantability Period.

 

(2)           Said notice shall set
forth an effective date which is not earlier than thirty (30) days after
Landlord receives said notice.

 

(3)           If said condition is
remedied on or before said effective date, said notice shall have no further
force and effect.

 

(4)           If said condition is
not remedied on or before said effective date for any reason other then Tenant’s
fault, as aforesaid, the Lease shall terminate as of said effective date, and
the Annual Fixed Rent and Additional Rent due under the Lease shall be
apportioned as of said effective date.

 

62

 

(E)                                 The
remedies set forth in this Section 4.2 shall be Tenant’s sole remedies for
the events described herein. The provisions of this subsection shall not apply
in the event of untenantability caused by fire or other casualty, or taking
(which shall be subject to the terms and conditions of Article VI below)

 

4.3           Landlord’s Insurance.

 

Landlord shall carry at all times from and after the commencement of
construction of the Landlord’s Work and continuing throughout the Term of this
Lease, (i) commercial general liability insurance with respect to the
Building in an amount not less than $10,000,000.00 combined single limit per
occurrence, and (ii) insurance against loss or damage to the Building
covered by the so-called “all risk” type insurance coverage with customary
exceptions, in an amount equal to one hundred percent (100%) of the full
replacement cost thereof (which such property insurance shall include so-called
“Builder’s Risk” coverage). Further, Landlord may also maintain such insurance
against loss of Annual Fixed Rent and Additional Rent for up to twelve (12)
months (or such longer period of time as Landlord’s mortgagee may require) and
such other risks and perils as Landlord deems proper. Any and all such
insurance (x) may be maintained under a blanket policy affecting other
properties of Landlord and/or its affiliated business organizations, (y) may
be written with deductibles as reasonably determined by Landlord (which such
deductible is currently $25,000.00 and which Landlord hereby covenants and
agrees shall not exceed $75,000.00 during the Original Term of this Lease) and (z) shall
be subject to escalation reimbursement in accordance with Section 2.6.

 

Nothing contained herein shall be construed so as to require Landlord
to maintain terrorism or environmental pollution liability insurance or
insurance covering mold in the Building (it being acknowledged, however, that
Landlord does in fact maintain such coverages as of the date of this Lease);
provided, however, that in the event the Landlord originally named herein shall
sell, transfer, assign, convey or ground lease its interest in the Property to
an unaffiliated third party, such new owner and any subsequent party succeeding
to the original Landlord’s interest as Landlord under this Lease shall not be
entitled to charge to Tenant at any time during the Term as part of Operating
Expenses Allocable to the Premises any costs of terrorism or environmental
pollution liability insurance in excess of one hundred ten percent (110%) of
the costs being paid by Tenant on account of such coverages during the last
full calendar year immediately prior to the conveyance by the original named
Landlord.

 

In the event that Landlord does not carry terrorism and/or
environmental pollution liability insurance during calendar year 2009 but
subsequently does maintain the coverage(s) that was not so maintained in
2009 during any other Lease Year during the Term, Base Operating Expenses shall
be equitably adjusted by adding an amount equal to the amount that would reasonably
have been payable by Landlord for such coverage(s) in 2009.

 

63

 

4.4           Landlord’s
Indemnity.

 

Subject to the limitations of Section 8.4 below and to the
provisions of Section 8.19 below, to the maximum extent this agreement is
effective according to law and to the extent not resulting from any act,
omission, fault, negligence or misconduct of Tenant or its contractors, agents,
licensees, invitees, servants or employees, Landlord agrees to defend with counsel
first approved by Tenant (counsel appointed by Landlord’s insurance carrier
shall be deemed approved by Tenant and for any other circumstances such
approval shall not be unreasonably withheld or delayed) indemnify and save
harmless Tenant and Tenant’s beneficiaries, partners, subsidiaries, officers,
directors, agents, trustees and employees (collectively, the “Tenant Parties”)
from and against any claim arising from any injury to any person occurring in
the Premises, in the Buildings or on the Site from and after the date that
Landlord commences construction of the Landlord’s Work and until the expiration
or earlier termination of the Lease Term, to the extent such injury results
from the negligence or willful misconduct of Landlord or Landlord’s agents,
employees or contractors provided, however that in no event shall the aforesaid
indemnity render Landlord responsible or liable for any loss or damage to
fixtures or personal property of Tenant and Landlord shall in no event be
liable for any indirect or consequential damages; and provided, further, that
the provisions of this Section 4.4 shall not be applicable to the holder
of any mortgage now or hereafter on the Site or the Buildings (whether or not
such holder shall be a mortgagee in possession of or shall have exercised any
rights under a conditional, collateral or other assignment of leases and/or
rents respecting, the Site and/or Buildings) except to the extent otherwise
agreed by such holder in any Subordination, Non-Disturbance and Attornment Agreement
by and between Tenant and such holder.

 

4.5           Leasing
Restriction

 

Provided that, on the condition that and only so long as (i) the
Tenant originally named herein (or its Permitted Transferee engaged in the same
line of business as the Tenant originally named herein) directly leases from
Landlord at least 100,000 square feet of rentable floor area in the Building, (ii) this
Lease is still in full force and effect, and (iii) Tenant has neither
assigned this Lease nor sublet more than twenty-five percent (25%) of the
Premises then leased by Tenant (except for an assignment or sublease under Section 5.6.1
below and except for the Initial Second Floor Subleases), (a) Landlord
shall not hereafter directly enter into a lease of other space in the Building
with Medidata Solutions Worldwide (“Medidata”), or any of Medidata’s
successors, parent or holding companies, subsidiaries, divisions or affiliates
(but only to the extent any of the foregoing are engaged in the same line of
business as Medidata and are in direct competition with the Tenant originally
named herein or any Successor Entity to which this Lease is assigned or the
Premises sublet under Section 5.6.1 below), and (b) Landlord agrees
to include in all leases entered into after the date hereof (the “Future Leases”)
the same clause as is contained in Section 5.6.2(h) below (the “Assignment
and Subletting Restriction Clause”) which would allow Landlord to withhold its
consent (and Landlord shall so withhold its consent) to a proposed assignment
or sublease that would be in violation of the restrictions of this Section 4.5.
Landlord further represents that the PRTM Lease and the lease between Landlord
and Administaff Client Services, L.P. dated 

 

64

 

September 18, 2007 (the “Existing Leases”) do contain the
Assignment and Subletting Restriction Clause. 
Landlord shall use commercially reasonable efforts to enforce the terms
of the Assignment and Subletting Restriction Clauses in the Existing Leases and
the Future Leases, but in no event shall Landlord be liable to Tenant (x) for
the failure of other occupants of the Building to comply with the Assignment
and Subletting Restriction Clause so long as Landlord has withheld its consent
and used commercially reasonable efforts to enforce the same as aforesaid or (y) to
the extent that a court of competent jurisdiction determines that the
Assignment and Subletting Restriction Clause is invalid and/or unenforceable.

 

ARTICLE V

 

TENANT’S COVENANTS

 

Tenant covenants and agrees to the following during the Term and such
further time as Tenant occupies any part of the Premises:

 

5.1           Payments

 

Tenant shall pay when due all fixed rent and Additional Rent and all
charges for utility services rendered to the Premises (except as otherwise
provided in Exhibit C) and, as further Additional Rent, all charges for
additional services rendered pursuant to Section 4.1.2.

 

5.2           Repair
and Yield Up

 

Except as otherwise provided in Article VI and Section 4.1.3
and excepting only reasonable wear and tear and damage by fire or taking under
the power of eminent domain, Tenant shall keep the Premises in good order,
repair and condition and with all glass in windows (except glass in exterior
walls unless the damage thereto is attributable to Tenant’s misuse) and doors
of the Premises whole and in good condition with glass of the same type and
quality as that injured or broken, and at the expiration or termination of this
Lease peaceably yield up the Premises and all construction, work, improvements,
and all alterations and additions thereto in good order, repair and condition,
reasonable wear and tear and damage by fire or other casualty only excepted.
Prior to such yielding up, Tenant shall first remove (i) all goods and
effects of Tenant, and (ii) to the extent specified by Landlord by notice
to Tenant given at least sixty (60) days prior to such expiration or
termination, the wiring for Tenant’s computer, telephone and other
communication systems and equipment whether located in the Premises or in any
other portion of the Building, including all risers, and (iii) all
Required Removables (as defined in Section 5.14 below) and, to the extent
specified for removal by Landlord at the time Landlord approves of the same
under Article III above or Section 5.14 below, all other alterations
and additions made by Tenant, and in all events repairing any damage caused by
such removal and restoring the Premises and other affected areas of the
Building or the Site and leaving them clean and neat. Tenant shall not permit
or commit any waste. 

 

65

 

Subject to the provisions of Section 8.19, Tenant shall be
responsible for the cost of repairs which may be made necessary by reason of
damage to common areas in the Building or to the Site caused by Tenant, Tenant’s
agents, contractors, employees, sublessees, licensees, concessionaires or
invitees.

 

5.3           Use

 

Tenant shall
use and occupy the Premises for the Permitted Use only, and shall not injure or
deface the Premises, Building or the Site nor permit in the Premises or on the
Site any auction sale, vending machine, or inflammable fluids or chemicals, or
nuisance, or the emission from the Premises of any objectionable noise or odor,
nor to operate in the Premises in such a way as to result in the leakage of
fluid, nor use or devote the Premises or any part thereof for any purpose other
than the Permitted Use, nor permit any use thereof which is inconsistent with
the maintenance of the Building as an office building of the first class in the
quality of its maintenance, use and occupancy, or which is improper, offensive,
contrary to law or ordinance or liable to invalidate or increase the premiums
for any insurance on the Building or its contents or liable to render necessary
any alteration or addition to the Building. Landlord represents that to the
best of its actual knowledge as of the date of this Lease, the use of the
Premises for office use will not invalidate Landlord’s insurance or increase
the premiums therefor.

 

If Tenant
abandons or vacates the entire Premises for a period of in excess of one
hundred eighty (180) days, Landlord shall have the right, on not less than ten (10) days’
prior written notice thereof to Tenant, to enter into the Premises in order to
turn the lights on in the vacated portion(s) of the Premises during
nighttime hours from dusk until 10:00 p.m. at the same level as if the
Premises were fully occupied, and Tenant shall pay for all electricity charges
related thereto.  Vacancy or abandonment
shall not be deemed to be an Event of Default by Tenant hereunder.

 

Further, (i) except as otherwise set forth herein, Tenant shall
not, nor shall Tenant permit its employees, invitees, agents, independent
contractors, contractors, assignees or subtenants to, keep, maintain, store or
dispose of (into the sewage or waste disposal system or otherwise) or engage in
any activity which might produce or generate any substance which is or may
hereafter be classified as a hazardous material, waste or substance
(collectively “Hazardous Materials”), under federal, state or local laws, rules and
regulations, including, without limitation, 42 U.S.C. Section 6901 et
seq., 42 U.S.C. Section 9601 et seq., 42 U.S.C. Section 2601 et seq.,
49 U.S.C. Section 1802 et seq. and Massachusetts General Laws, Chapter 21E
and the rules and regulations promulgated under any of the foregoing, as
such laws, rules and regulations may be amended from time to time
(collectively “Hazardous Materials Laws”), (ii) Tenant shall promptly
notify Landlord of any incident in, on or about the Premises, the Building or
the Site that would require the filing of a notice under any Hazardous
Materials Laws, (iii) Tenant shall comply and shall cause its employees,
invitees, agents, independent contractors, contractors, assignees and
subtenants to comply with each of the foregoing and (iv) Landlord shall
have the right to make such inspections (including testing) as Landlord shall
reasonably elect from time to time to determine that Tenant is complying with
the foregoing.  Notwithstanding the
foregoing, Tenant may use Hazardous Materials and 

 

66

 

other substances typically used by Tenant for the conduct of the
Permitted Uses, provided that Tenant uses, stores and disposes of such
Hazardous Materials and other substances in the manner which they are normally
used, and in compliance with all Hazardous Materials Laws and other applicable
laws, ordinances, bylaws, rules and regulations, and Tenant obtains and
complies with all permits required by Hazardous Materials Laws or any other
laws, ordinances, bylaws, rules or regulations prior to the use or
presence of any such substances in the Premises.

 

                                                Landlord
represents and warrants to Tenant that, except as set forth in that certain MCP
Environmental Summary Letter dated November 5, 2007 from Sanborn, Head &
Associates, Inc. (a copy of which has been provided to Tenant), to the
best of Landlord’s actual knowledge as of the date of this Lease there are no
Hazardous Materials in the Building or on the Site which are or would be
required to be removed or otherwise abated in accordance with applicable
Hazardous Materials Laws.  Subject to the
limitations of Section 8.4 hereof, Landlord shall use reasonable efforts
to remove or abate, as required by applicable Hazardous Materials Laws and
without inclusion in Operating Expenses, (x) Hazardous Materials on the
Site or in the Common Areas, the Structural Elements or the base building
systems of the Building and (y) Hazardous Materials that are present in
other areas of the Building as the result of the actions of Landlord, its
employees, agents or contractors. 
Notwithstanding the foregoing but without limitation of Tenant’s rights
under Section 4.2 of this Lease, Landlord’s obligation to remove or abate
Hazardous Materials pursuant to this Section 5.3 shall not apply to (i) requirements
of Hazardous Materials Laws resulting from the use of Hazardous Materials, or
additions, alterations or improvements in the Premises (other than the Landlord’s
Work and the Base Building Work), by Tenant or anyone claiming by, through or
under Tenant, or (ii) Hazardous Materials which are in the Building or on
the Site because of the action or inaction of any tenant or occupant in the
Building, including Tenant, or any employee, agent or contractor thereof, or (iii) any
tenant space in the Building, including the Premises, and any additions,
alterations and improvements therein, unless in the case of this clause (iii) such
Hazardous Materials (1) existed in, at or on the Premises, the Building or
the Site prior to the Commencement Date or migrated to the Premises, the
Building or the Site from another property or (2) are present as the
result of the action or inaction of Landlord, its affiliates, employees, agents
or contractors.  In connection with the
foregoing, Landlord hereby agrees to use best efforts to enforce the terms of
its leases with other tenants of the Building in the event of a violation of
Hazardous Materials Laws resulting from the action or inaction of any tenant or
occupant of the Building or any employee, agent or contractor thereof;
provided, however, that, subject to Section 4.2, in no event shall
Landlord be liable to Tenant for any violation of Hazardous Materials Laws by
any tenant or occupant of the Building.

 

Subject to the limitations of Section 8.4 hereof, Landlord agrees
to defend with counsel first approved by Tenant (counsel appointed by Landlord’s
insurance carrier shall be deemed approved by Tenant and for any other
circumstances such approval shall not be unreasonably withheld or delayed),
indemnify and save Tenant harmless from liability, loss and damage to persons
or property and from any claims, actions, proceedings and expenses in
connection therewith resulting from the failure of Landlord to fulfill its 

 

67

 

obligations under this Section 5.3 or any breach of Landlord’s
representations and warranties under this Section 5.3; provided, however,
that in no event shall the foregoing indemnity render Landlord liable for any
loss or damage to Tenant’s Property and Landlord shall in no event be liable
for indirect or consequential damages.

 

5.4           Obstructions;
Items Visible From Exterior; Rules and Regulations

 

Tenant shall not obstruct in any manner any portion of the Building not
hereby leased or any portion thereof or of the Site used by Tenant in common
with others; nor without the prior consent of Landlord and except as otherwise
expressly set forth in this Lease, shall Tenant permit the painting or placing
of any signs, curtains, blinds, shades, awnings, aerials or flagpoles, or the
like, visible from outside the Premises; and Tenant shall comply with all
reasonable Rules and Regulations of general applicability to tenants of
the Building now or hereafter made by Landlord, of which Tenant has been given
notice and which are not inconsistent with any of Tenant’s rights under this
Lease, for the care and use of the Building and Site and their facilities and
approaches; Landlord shall not be liable to Tenant for the failure of other
occupants of the Buildings to conform to such Rules and Regulations. All rules and
regulations shall be applied and enforced on all tenants in a
non-discriminatory manner, except where differing circumstances justify
different treatment.

 

5.5           Safety
Appliances

 

Tenant shall keep the Premises equipped with all safety appliances
required by any public authority because of any use made by Tenant other than
normal office use, and shall procure all licenses and permits so required
because of such use and, if requested by Landlord, Tenant shall do any work so
required because of such use, it being understood that the foregoing provisions
shall not be construed to broaden in any way Tenant’s Permitted Use.

 

5.6           Assignment;
Sublease

 

Except as otherwise expressly provided herein, Tenant covenants and
agrees that it shall not assign, mortgage, pledge, hypothecate or otherwise
transfer this Lease and/or Tenant’s interest in this Lease or sublet (which
term, without limitation, shall include granting of concessions, licenses or
the like) the whole or any part of the Premises. Any assignment, mortgage,
pledge, hypothecation, transfer or subletting not expressly permitted in or
consented to by Landlord under Sections 5.6.1-5.6.5 shall be void, ab initio;
shall be of no force and effect; and shall confer no rights on or in favor of
third parties. In addition, Landlord shall be entitled to seek specific
performance of or other equitable relief with respect to the provisions hereof.

 

5.6.1        Notwithstanding
the foregoing provisions of Section 5.6 above and the provisions of Section 5.6.2
and 5.6.4 below, but subject to the provisions of Sections 5.6.3 and 5.6.5
below, Tenant shall have the right to assign this Lease or to sublet the
Premises (in whole or in part) to any other entity (the “Successor Entity”) (i) which
controls or is controlled by Tenant or Tenant’s parent corporation, or (ii) 

 

68

 

which is under common control with Tenant, or (iii) which
purchases all or substantially all of the assets of Tenant, or (iv) which
purchases all or substantially all of the stock of (or other membership
interests in) Tenant or (v) which merges or combines with Tenant, provided, that to the extent Tenant does not remain in
existence after an assignment to or other transaction with a Successor Entity,
the Successor Entity has a net worth (on a pro forma basis using generally
accepted accounting principles consistently applied after giving effect to the
merger, consolidation or purchase of assets, stock or other membership
interests) reasonably sufficient to perform the obligations of the tenant under
this Lease (the foregoing transferees referred to, individually or
collectively, as a “Permitted Transferee”). Except in cases of statutory
merger, in which case the surviving entity in the merger shall be liable as the
Tenant under this Lease, Tenant shall continue to remain fully liable under
this Lease, on a joint and several basis with the Permitted Transferee.  If any parent or subsidiary of Tenant to
which this Lease is assigned or the Premises sublet (in whole or in part) shall
cease to be such a parent or subsidiary, such cessation shall be considered an assignment
or subletting requiring Landlord’s consent.

 

5.6.1.1    Notwithstanding
the provisions of Section 5.6 above, in the event Tenant desires

 

(a)                                  to assign this Lease,
or

 

(b)                                 to sublet (i) such
portion (the “Sublease Portion”) of the Premises as (x) contains by itself
at least fifty percent (50%) of the total Rentable Floor Area of the Premises
or (y) would bring the total amount of the Premises then being subleased
(inclusive of the Initial Second Floor Subleases but exclusive of subleases
permitted pursuant to Section 5.6.1 above) to fifty percent (50%) or more,
or (ii) any Sublease Portion for a term equal to all or substantially all
of the remaining Term hereof (any such sublease satisfying clauses (i) or (ii) being
hereinafter referred to as a “Major Sublease”),

 

Tenant shall give Landlord either (x) a Proposed Transfer Notice
(as defined in Section 5.6.3 hereof) in the event Tenant already has a
specific assignment or sublease transaction or (y) a notice stating that
Tenant is contemplating entering into an assignment or Major Sublease (either
such notice being hereinafter referred to as a “Notice of Intent to Transfer”)
and Landlord shall have the right at its sole option, to be exercised (1) within
thirty (30) days after receipt of Tenant’s Notice of Intent to Transfer, or (2) within
fifteen (15) business days after receipt of Tenant’s Proposed Transfer Notice
(such response time period, as applicable to the type of notice received from
Tenant, being referred to herein as the “Acceptance Period”), to terminate this
Lease, in the case of a proposed assignment, or to terminate this lease with
respect to the Sublease Portion in the case of a proposed Major Sublease, as of
a date specified in a notice to Tenant, which date shall not be earlier than
thirty (30) days nor later than ninety (90) days after Landlord’s notice to
Tenant.  Notwithstanding the foregoing,
in the event a 

 

69

 

proposed sublease which, when combined with other subleases of the
Premises then in effect (inclusive of the Initial Second Floor Subleases but
exclusive of subleases permitted pursuant to Section 5.6.1), reaches the
fifty percent (50%) of the Premises threshold set forth above for Landlord to
recapture, Landlord may only recapture for the then proposed sublease and, to
the extent not exempted from Landlord’s rights under this Section 5.6.1.1,
future proposed subleases but may not recapture or terminate this Lease as to
any subleases of the Premises previously entered into by Tenant.  In the case of an assignment, upon the
termination date as set forth in Landlord’s notice, all obligations relating to
the period after such termination date (but not those relating to the period
before such termination date) shall cease and promptly upon being billed
therefor by Landlord, Tenant shall make final payment of all Annual Fixed Rent
and Additional Rent due from Tenant through the termination date.  In the case of a Major Sublease, all
obligations relating to the Sublease Portion for the period after such
termination date (but not those relating to (x) the period before such
termination date or (y) portions of the Premises other than the Sublease
Portion), shall cease and Landlord shall, at Landlord’s sole cost and expense,
remove or close off and secure, in compliance with applicable laws, any
internal stairways, doors, or corridors which connect the terminated portion of
the Premises from the remainder of the Premises and shall, if applicable,
install any corridors and/or demising walls required to separate and demise the
terminated portion of the Premises from the remaining portion of the
Premises.  In the event that Landlord
shall not exercise its termination rights as aforesaid, or shall fail to give
any or timely notice pursuant to this Section, the provisions of Sections 5.6.2-5.6.5
shall be applicable.  This Section 5.6.1.1
shall not be applicable to an assignment or sublease pursuant to Section 5.6.1
or to the Initial Second Floor Subleases. 
For purposes of this Section 5.6.1.1, a sublease shall be deemed to
be for substantially all of the remaining Term of this Lease if such sublease
would expire with less than six (6) months remaining prior to the
expiration of the Term (taking into account any extension options previously
exercised by Tenant and/or available to Tenant if Tenant notifies Landlord that
Tenant expects to exercise an available extension option).  Notwithstanding anything herein to the
contrary, if Landlord fails to exercise its rights under this Lease with
respect to a Notice of Intent to Transfer within the Acceptance Period,
Landlord will not thereafter have the right to exercise its rights under this Section 5.6.1.1
with respect to a Proposed Transfer Notice for any portion of the space
identified in Tenant’s previous Notice of Intent to Transfer provided Tenant’s
Proposed Transfer Notice is received within the one hundred fifty (150) day
time period set forth in Section 5.6.2(2) below.

 

In the event Landlord exercises its option to terminate this Lease as
to the portion or, if applicable, the entire Premises as and to the extent
permitted under this Section 5.6.1.1, then Tenant may rescind its request
for Landlord’s consent to such transfer by notice to Landlord within ten (10) business
days following receipt of Landlord’s election to terminate whereupon Landlord’s
election to terminate this Lease as to the applicable portion of the Premises
proposed to be transferred shall be null and void.

 

70

 

5.6.2        Notwithstanding
the provisions of Section 5.6 above, but subject to the provisions of this
Section 5.6.2 and the provisions of Sections 5.6.3, 5.6.4 and 5.6.5 below:

 

(1)           in
the event that Tenant shall have provided Landlord with a Proposed Transfer
Notice and Landlord shall have either (x) elected not to exercise the
termination right as set forth in Section 5.6.1.1 or (y) failed to
give any or timely notice under Section 5.6.1.1, then (i) for a
period of ninety (90) days after the receipt of Landlord’s notice stating that
Landlord does not elect the termination right, or (ii) for a period of
ninety (90) days after the expiration of the Acceptance Period, in the event
Landlord shall not give any or timely notice under Section 5.6.1.1, as the
case may be, Tenant shall have the right to assign this Lease or sublet the whole
or any part of the Premises in accordance with the Proposed Transfer Notice
provided that, in each instance, Tenant first obtains the express prior written
consent of Landlord, which consent shall not be unreasonably withheld, delayed
or conditioned; or

 

(2)           in
the event that Tenant shall have provided Landlord with a Notice of Intent to
Transfer and Landlord shall have either (x) elected not to exercise the
termination right as set forth in Section 5.6.1.1 or (y) failed to
give any or timely notice under Section 5.6.1.1, then so long as Tenant
shall provide Landlord with a Proposed Transfer Notice meeting all of the
requirements of Section 5.6.3 below (i) within one hundred fifty
(150) days after the receipt of Landlord’s notice stating that Landlord does
not elect the termination right, or (ii) within one hundred fifty (150)
days after the expiration of the Acceptance Period, in the event Landlord shall
not give any or timely notice under Section 5.6.1.1, as the case may be,
Tenant shall have the right to assign this Lease or sublet the whole or any
part of the Premises in accordance with such Proposed Transfer Notice provided
that, in each instance, Tenant first obtains the express prior written consent
of Landlord, which consent shall not be unreasonably withheld, delayed or
conditioned; or

 

(3)           in
the case of a proposed sublease that is not subject to the provisions of Section 5.6.1.1
(exclusive of subleases for which Landlord’s consent is not required pursuant
to Section 5.6.1), Tenant shall have the right to assign this Lease or
sublet the whole or any part of the Premises in accordance with a Proposed
Transfer Notice meeting all of the requirements of Section 5.6.3 below,
provided that, in each instance, Tenant first obtains the express prior written
consent of Landlord, which consent shall not be unreasonably withheld, delayed
or conditioned.

 

It is understood and agreed that Landlord’s consent shall be deemed
given hereunder in the event that Landlord shall fail to respond to a Proposed
Transfer Notice meeting all of the requirements of Section 5.6.3 below
within fifteen (15) 

 

71

 

business days after receipt thereof from Tenant.

 

Without limiting the foregoing standard, Landlord shall not be deemed to
be unreasonably withholding its consent to such a proposed assignment or
subleasing if:

 

(a)                                  the proposed assignee
or subtenant is a tenant in the Building or elsewhere on the Site or is in
active negotiation with Landlord or an affiliate of Landlord for premises in
the Building or elsewhere on the Site or is not of a character consistent with
the operation of a first-class office building (by way of example Landlord
shall not be deemed to be unreasonably withholding its consent to an assignment
or subleasing to any governmental or quasi-governmental agency or to a
so-called “call center”). Notwithstanding the foregoing, Tenant may sublease
all or a portion of the Premises (the “Subleased Premises”) to a tenant of the
Building or elsewhere within the area delineated as the “CityPoint Project” on Exhibit K
attached hereto (the “Subtenant”) if such Subtenant’s need, as to the size of
premises and length of term, cannot then (i.e., at the time that Tenant
requests Landlord’s consent to such Subtenant) be satisfied by Landlord or its
affiliates within the Building or the CityPoint Project; or

 

(b)                                 in the case of a
proposed assignment, the proposed assignee does not possess adequate financial
capability to perform the Tenant obligations as and when due or required; or

 

(c)                                  the assignee or
subtenant proposes to use the Premises (or part thereof) for a purpose other
than the purpose for which the Premises may be used as stated in Section 1.1
hereof; or

 

(d)                                 the character of the
business to be conducted or the proposed use of the Premises by the proposed
subtenant or assignee shall (i) be likely to materially increase Landlord’s
Operating Expenses beyond that which Landlord now incurs for use by Tenant; (ii) be
likely to materially increase the burden on elevators or other Building systems
or equipment over the burden prior to such proposed subletting or assignment;
or (iii) violate or be likely to violate any provisions or restrictions
contained herein relating to the use or occupancy of the Premises.  Notwithstanding the foregoing, if Landlord
objects to a proposed assignee or subtenant on the grounds of subsection (i) or
(ii) of this Section 5.6.2(d), Tenant may overcome such objection by
agreeing to pay the amount of such increase; or

 

(e)                                  there shall be
existing an Event of Default (defined in Section 7.1); 

 

72

 

or

 

(f)                                    any part of the
rent payable under the proposed assignment or sublease shall be based in whole
or in part on the income or profits derived from the Premises or if any
proposed assignment or sublease shall potentially have any adverse effect on
the real estate investment trust qualification requirements applicable to
Landlord and its affiliates; or

 

(g)                                 the holder of any
mortgage on property which includes the Premises having approval rights over
such proposed assignment or sublease of a full floor or more (or equivalent
square footage if the subleased premises is not all located on the same floor)
does not approve of the same (where such holder has approval rights pursuant to
the terms of the mortgage); or

 

(h)                                 due to the identity or
business of a proposed assignee or subtenant, such approval would cause
Landlord to be in violation of any covenant or restriction contained in another
lease or other agreement affecting space in the Building, provided, however,
that the foregoing basis shall not apply unless Tenant is leasing less than
75,000 square feet of rentable floor area in the Building.

 

Notwithstanding the foregoing, so long as Tenant remains fully and
primarily liable to Landlord, Tenant’s right to sublease the all or any portion
of the Premises shall not be restricted by Landlord (x) due to the
financial condition of the subtenant or (y) by any rent hurdle or other
rental threshold that Landlord may deem needed in order to consent to a
proposed sublease.

 

5.6.3       Tenant
shall give Landlord notice (the “Proposed Transfer Notice”) of any proposed
assignment or sublease, and said notice shall specify the provisions of the
proposed assignment or subletting, including (a) the name and address of
the proposed assignee or subtenant, (b) in the case of a proposed
assignment pursuant to Section 5.6.2, such information as to the proposed
assignee’s net worth and financial capability and standing as may reasonably be
required for Landlord to make the determination referred to in Section 5.6.2
above (provided, however, that Landlord shall hold such information
confidential having the right to release same to its officers, accountants,
attorneys and mortgage lenders on a confidential basis), (c) all of the
terms and provisions upon which the proposed assignment or subletting is to be
made (including, in the case of a sublease, the portion of the Premises
proposed to be sublet and the term of such sublease), (d) in the case of a
proposed assignment or subletting pursuant to Section 5.6.2, all other
information necessary to make the determination referred to in Section 5.6.2
above and (e) in the case of a proposed assignment or subletting pursuant
to Section 5.6.1 above, such information as may be reasonably required by
Landlord to determine that such proposed assignment or subletting complies with
the requirements of said 

 

73

 

Section 5.6.1.

 

If Landlord shall consent to the proposed assignment or subletting, as
the case may be, then, in such event, Tenant may thereafter sublease or assign
pursuant to Tenant’s notice, as given hereunder; provided, however, that if
such sublease or assignment shall not be executed and delivered to Landlord
within ninety (90) days after the date of Landlord’s consent, the consent shall
be deemed null and void and the provisions of Section 5.6.1.1 and 5.6.2
shall again be applicable.

 

5.6.4        In
addition, in the case of any assignment or subleasing as to which Landlord may
consent (other than an assignment or subletting permitted under Section 5.6.1
hereof), such consent shall be upon the express and further condition, covenant
and agreement, and Tenant hereby covenants and agrees that, in addition to the
Annual Fixed Rent, Additional Rent and other charges to be paid pursuant to
this Lease, fifty percent (50%) of the “Assignment/Sublease Profits”
(hereinafter defined), if any, actually received by Tenant shall be paid to
Landlord. The “Assignment/Sublease Profits” shall be the excess, if any, of (a) the
“Assignment/Sublease Net Revenues” as hereinafter defined over (b) the
Annual Fixed Rent and Additional Rent and other charges provided in this Lease
(provided, however, that for the purpose of calculating the Assignment/Sublease
Profits in the case of a sublease, appropriate prorations in the applicable
Annual Fixed Rent, Additional Rent and other charges under this Lease shall be
made based on the percentage of the Premises subleased and on the terms of the
sublease). The “Assignment/Sublease Net Revenues” shall be the fixed rent,
additional rent and all other charges and sums actually received by Tenant
either initially or over the term of the sublease or assignment plus all other
profits and increases actually received by Tenant as a result of such
subletting or assignment, exclusive of amounts paid to Tenant for the purchase
or lease of personal property or equipment of Tenant (except to the extent such
amounts exceed the fair market value or rental value of the same), after
deducting the reasonable costs of Tenant incurred in such subleasing or
assignment (the definition of which shall be limited to rent concessions,
architectural fees, attorneys’ fees, moving expenses, brokerage commissions and
alteration allowances associated with the subleasing or assignment at issue, in
each case actually paid, and in the case of an assignment only and only to the
extent that the assignee has paid consideration specifically on account of the
same, the unamortized costs of leasehold improvements paid for by Tenant in
excess of Landlord’s Contribution), as set forth in a statement certified by an
appropriate officer of Tenant and delivered to Landlord within thirty (30) days
of the full execution of the sublease or assignment document, amortized over
the term of the sublease or assignment.

 

All payments of the Assignment/Sublease Profits due Landlord shall be
made within thirty (30) days of receipt of same by Tenant.

 

5.6.5        (a)                                  It
shall be a condition of the validity of any assignment or subletting of right
under Section 5.6.1 above, or consented to under Section 5.6.2 above,
that 

 

74

 

both Tenant and the assignee or sublessee enter into a separate written
instrument directly with Landlord in a form and containing terms and provisions
reasonably required by Landlord, including, without limitation, the agreement
of the assignee or sublessee to be bound directly to Landlord for all the
obligations of the Tenant hereunder, including, without limitation, the
obligation (a) to pay the rent and other amounts provided for under this
Lease (but in the case of a partial subletting pursuant to Section 5.6.1,
such subtenant shall agree on a pro rata basis to be so bound) and (b) to
comply with the provisions of Sections 5.6 through 5.6.5 hereof. Such
assignment or subletting shall not relieve the Tenant named herein of any of
the obligations of the Tenant hereunder and Tenant shall remain fully and
primarily liable therefor and the liability of Tenant and such assignee (or
subtenant, as the case may be) shall be joint and several. Further, and
notwithstanding the foregoing, the provisions hereof shall not constitute a
recognition of the sublease or the subtenant thereunder, as the case may be,
and at Landlord’s option, upon the termination or expiration of the Lease
(whether such termination is based upon a cause beyond Tenant’s control, a
default of Tenant, the agreement of Tenant and Landlord or any other reason),
the sublease shall be terminated.

 

(b)                                 Tenant
shall pay to Landlord as a fee for Landlord’s review of any proposed assignment
or sublease requested by Tenant and the preparation of any associated
documentation (other than the Initial Second Floor Subleases, for which Landlord
agrees to waive such fees), within thirty (30) days after receipt of an invoice
from Landlord, as Additional Rent, an amount for each such request equal to the
greater of (i) One Thousand and 00/100 Dollars ($1,000.00) and/or (ii) if
Landlord reasonably determines that a third-party consultant is needed or
expedient to review such request, then Tenant shall reimburse Landlord for the
reasonable third-party out-of-pocket costs incurred by Landlord in hiring said
third party to review such request, up to a maximum of Five Thousand and 00/100
Dollars ($5,000.00) in connection with any single request for consent.

 

(c)                                  If
this Lease be assigned, or if the Premises or any part thereof be sublet or
occupied by anyone other than Tenant, Landlord may upon prior notice to Tenant,
at any time and from time to time after the occurrence of an Event of Default
hereunder, collect rent and other charges from the assignee, sublessee 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 a waiver of the provisions of
Sections 5.6 through 5.6.5 hereof, or the acceptance of the assignee, sublessee
or occupant as a tenant or a release of Tenant from the further performance by
Tenant of covenants on the part of Tenant herein contained, the Tenant herein
named to remain primarily liable under this Lease.

 

(d)                                 The
consent by Landlord to an assignment or subletting under any of the provisions
of Sections 5.6.1 or 5.6.2 shall in no way be construed to relieve Tenant from
obtaining the express consent in writing of Landlord to any further 

 

75

 

assignment or subletting.

 

(e)                                  On
or after the occurrence of an “Event of Default” (defined in Section 7.1),
Landlord shall be entitled to one hundred percent (100%) of any
Assignment/Sublease Profits.

 

(f)                                    In
addition to the other requirements set forth in this Lease and notwithstanding
any other provision of this Lease, partial sublettings of the Premises shall
only be permitted under the following terms and conditions: (i) the layout
of both the subleased premises and the remainder of the Premises must comply
with applicable laws, ordinances, rules and/or regulations and be approved
by Landlord, including without limitation all requirements concerning access
and egress; and (ii) in the event the subleased premises are separately
physically demised from the remainder of the Premises, Tenant shall pay all costs
of separately physically demising the subleased premises.

 

(g)                                 At
no time during the Lease Term shall there be more than ten (10) subleases
outstanding.

 

(h)                                 Without
limiting Tenant’s obligations under Section 5.14 and except as provided in
Section 5.6.1.1 of this Lease, Tenant shall be responsible, at Tenant’s
sole cost and expense, for performing all work necessary to comply with Legal
Requirements and Insurance Requirements in connection with any assignment or
subletting hereunder, including, without limitation, any work in connection
with such assignment or subletting.

 

5.6.6        It
is acknowledged and agreed that Tenant may initially sublease all or some
portion of the Premises located on the second (2nd) floor of the
Building for sublease terms expiring on or before the later date of (a) December 31,
2011, and (b) three (3) years following the Commencement Date (any
such subleases being hereinafter referred to as the “Initial Second Floor
Subleases”).  Notwithstanding anything
contained in Sections 5.6-5.6.5 above to the contrary, it is understood and
agreed that (i) the provisions of Section 5.6.1.1 and Section 5.6.4
above shall not apply to the Initial Second Floor Subleases and (ii) Landlord
shall not be entitled to withhold its consent to any of the prospective Initial
Second Floor Subleases on the grounds that Landlord or its affiliates may also
be negotiating to lease space within the Building or the CityPoint Project to
such proposed subtenant.

 

5.6.7        Tenant
shall have the right, without the consent of Landlord (but upon reasonable
prior notice to Landlord), to permit the use or occupancy of space in the
Premises by any affiliate, subsidiary or other related entity of Tenant or,
with respect to a portion of the Premises that is not separately demised and
consists of not more than 25,000 rentable square feet of the Premises in the
aggregate for periods of less than one (1) year at a time, by persons who
have an ongoing contractual or other business relationship with Tenant
providing for cooperative or collaborative 

 

76

 

research and development such that such occupants have a reasonable
need to work in proximity with Tenant (such persons who shall be permitted to
occupy portions of the Premises pursuant to this Section 5.6.7 being
referred to individually as a “Permitted Occupant”, or collectively as the “Permitted
Occupants”); provided that (x) the Permitted Occupants shall use the
Premises in conformity with all applicable provisions of this Lease, (y) such
occupancy will terminate automatically upon the expiration or earlier
termination of this Lease and (z) Tenant shall remain fully liable for the
acts or omissions of the Permitted Occupants in the Premises and at the
Property.

 

5.6.8        At
the written request of Tenant, Landlord will approve or disapprove of a
proposed transferee prior to receiving a final, executed copy of the proposed
assignment, sublease and other contractual documents, provided that (i) Landlord
has been provided with sufficient information to make such decision, and (ii) any
approval by Landlord of a proposed transferee shall be conditioned upon
Landlord’s subsequent approval of the actual signed assignment, sublease or
other contractual documents that are entered into to effectuate the proposed
Transfer. Notwithstanding the foregoing, Landlord’s approval shall be null and
void and deemed withdrawn if Tenant does not, within ninety (90) days of Tenant’s
initial request for Landlord’s approval, enter into an assignment or sublease
upon substantially the same economic and other material terms as were set forth
in the documentation previously delivered to Landlord.

 

5.7           Indemnity; Insurance

 

(A)                              Indemnity.
Subject to the limitations of Section 8.4 below and to the provisions of Section 8.19
below, to the maximum extent this agreement is effective according to law and
to the extent not resulting from the negligence or willful misconduct of
Landlord or its employees, agents or contractors, Tenant shall defend with
counsel first approved by Landlord (counsel appointed by Tenant’s insurance
carrier shall be deemed approved by Landlord and for any other circumstances
such approval shall not be unreasonably withheld or delayed), save harmless,
and indemnify Landlord and Landlord’s managing agent, beneficiaries, partners,
subsidiaries, officers, directors, agents, trustees and employees (“Landlord
Parties”) from any liability for injury, loss, accident or damage to any person
or property, and from any claims, actions, proceedings and expenses and costs
in connection therewith (including without limitation reasonable counsel fees) (i) arising
from or claimed to have arisen from (a) the omission, fault, willful act,
negligence or other misconduct of Tenant or Tenant’s contractors, licensees,
invitees, agents, servants, independent contractors or employees or (b) any
use made or thing done or occurring on the Premises not due to the omission,
fault, willful act, negligence or other misconduct of Landlord or its
employees, agents or contractors, or (ii) resulting from the failure of
Tenant to perform and discharge its covenants and obligations under this Lease.

 

(B)                                Insurance.  Tenant shall 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, commercial general liability insurance or comprehensive
general liability insurance written on an occurrence 

 

77

 

basis with a broad form comprehensive liability endorsement under which
Tenant is the named insured and Landlord and Landlord’s managing agent (and
such persons as are in privity of estate with Landlord and Landlord’s managing
agent as may be set out in notice from time to time) are named as additional
insureds with limits which shall, at the commencement of the Term, be at least
equal to those stated in Section 1.1 and from time to time during the Term
shall be for such higher limits, if any, as are customarily carried in the
Market Area with respect to similar properties, and worker’s compensation
insurance with statutory limits covering all of Tenant’s employees working in
the Premises. Tenant shall deposit with Landlord on or before the earlier of
the date Tenant enters the Premises or the Commencement Date and concurrent
with all policy renewals, certificates for any insurance Tenant is required to
maintain under this Lease, in a form reasonably acceptable to Landlord and
bearing the endorsement that the insurer will endeavor to provide Landlord with
thirty (30) days’ written notice prior to cancellation of the policies. In
addition, in the event Tenant hosts a function in the Premises, Tenant agrees
to obtain and maintain, and cause any persons or parties providing services for
such function to obtain, the appropriate insurance coverages as determined by
Landlord (including liquor liability, if applicable) and provide Landlord with
evidence of the same. All insurance required to be maintained by Tenant pursuant
to this Lease shall be maintained with responsible companies qualified to do
business, and in good standing, in the Commonwealth of Massachusetts and which
have a rating of at least “A-” and are within a financial size category of not
less than “Class VIII” in the most current Best’s Key Rating Guide or
such similar rating as may be reasonably selected by Landlord if such Guide is
no longer published.

 

5.8                                 Personal
Property at Tenant’s Risk

 

Tenant covenants that all of the furnishings, fixtures, equipment,
effects and property of every kind, nature and description of Tenant and of all
persons claiming by, through or under Tenant which, during the continuance of
this Lease or any occupancy of the Premises by Tenant or anyone claiming under
Tenant, may be on the Premises or elsewhere in the Building or on the Site,
shall be at the sole risk and hazard of Tenant, and if the whole or any part
thereof shall be destroyed or damaged by fire, water or otherwise, or by the
leakage or bursting of water pipes, steam pipes, or other pipes, by theft or
from any other cause, no part of said loss or damage is to be charged to or be
borne by Landlord, except that Landlord shall in no event be indemnified,
released, or held harmless or exonerated from any liability to Tenant or to any
other person, for any injury, loss, damage or liability to the extent of
Landlord’s negligence or willful misconduct or to the extent such indemnity,
hold harmless or exoneration is prohibited by law. Further, Tenant, at Tenant’s
expense, shall maintain at all times during the Term of this Lease business
interruption insurance and insurance against loss or damage covered by
so-called “all risk” type insurance coverage with respect to Tenant’s fixtures,
equipment, goods, wares and merchandise, tenant improvements made by or paid
for  by Tenant (if such tenant
improvements are removable by Tenant at the end of the Term of this Lease) and
other property of Tenant (collectively “Tenant’s Property”). Such insurance
shall be in an amount at least equal to the full replacement cost of Tenant’s
Property. Tenant shall maintain all of its equipment, furniture and furnishings
in good order and repair. In addition, during such time as Tenant is performing
work in or to the 

 

78

 

Premises, Tenant, at Tenant’s expense, shall also maintain builder’s
risk insurance for the full insurable value of such work.

 

5.9           Right
of Entry

 

To permit Landlord and its agents at reasonable times and upon
reasonable prior notice (except in the event of an emergency) (i) to
examine the Premises and if Landlord shall be entitled and shall so elect, to
make any repairs or replacements Landlord may deem necessary; (ii) to
remove, at Tenant’s expense, any alterations, additions, signs, curtains,
blinds, shades, awnings, aerials, flagpoles, or the like not consented to in
writing; and (iii) to show the Premises to prospective tenants during the
fifteen (15) months preceding expiration of the Term (or twenty-four (24)
months, if Tenant has no further extension options) and to prospective
purchasers and mortgagees at all reasonable times. Landlord agrees to use
commercially reasonable efforts to conduct any such entry under this Section 5.9
in such a manner and at such times so as to minimize any unreasonable
interference with Tenant’s business operations in the Premises, consistent with
the reasons for such entry (Landlord hereby agreeing to use commercially
reasonable efforts to schedule any such access hereunder during Tenant’s normal
business hours and in the presence of a representative of Tenant when feasible,
except in the event of an emergency).

 

Notwithstanding anything to the contrary set forth above, Tenant may
designate certain areas of the Premises as “Secured Areas” should Tenant
require for the purpose of securing certain valuable property or confidential
information.  Landlord may not enter such
Secured Areas except (i) in the case of an emergency, (ii) in the
event of a Landlord inspection (it being understood and agreed that prior to
commencing any non-emergency inspection of the Secured Areas, Landlord shall be
required to demonstrate reasonable grounds therefor and provide Tenant with two
(2) business days’ prior written notice of the specific date and time of
such Landlord inspection) or (iii) in connection with Landlord’s provision
of regularly recurring services to the Premises required under this Lease
(including, without limitation, cleaning services).

 

5.10         Floor
Load; Prevention of Vibration and Noise

 

Tenant shall not place a load upon the Premises (exclusive of Tenant’s
equipment installed on the roof of the Building pursuant to Sections 8.26 and
8.28 below) exceeding an average rate of 100 pounds of live load per square
foot of floor area (partitions shall be considered as part of the live load);
and shall not move any safe, vault or other heavy equipment in, about or out of
the Premises except in such manner and at such time as Landlord shall in each
instance authorize; Tenant’s business machines and mechanical equipment which
cause vibration or noise that may be transmitted to the Building structure or
to any other space in the Building shall be so installed, maintained and used
by Tenant so as to eliminate such vibration or noise.

 

5.11         Personal
Property Taxes

 

Tenant shall pay promptly when due all taxes which may be imposed upon
Tenant’s 

 

79

 

Property in the Premises to whomever assessed.

 

5.12         Compliance
with Laws

 

Tenant shall comply with all applicable Legal Requirements now or
hereafter in force which shall impose a duty on Landlord or Tenant relating to
or as a result of the use or occupancy of the Premises; provided that Tenant
shall not be responsible for compliance with any Legal Requirements requiring (a) structural
repairs or modifications to any element of the Building, including without
limitation the roof, exterior and load bearing walls, foundation and structural
floor slabs, or (b) repairs or modifications to any utility or building
service equipment, or (c) installation of new building service equipment,
such as fire detection or suppression equipment, even if any of the foregoing
items described in clauses (a), (b) or (c) relate to areas located
solely within the Premises, unless any of the same are required due to (i) Tenant’s
particular manner of use of the Premises (as opposed to office use generally)
or (ii) any additions, alterations or improvements performed by or for
Tenant. Tenant shall promptly pay all fines, penalties and damages that may arise
out of or be imposed because of its failure to comply with the provisions of
this Section 5.12.

 

5.13         Payment
of Litigation Expenses

 

In the event
of litigation or other legal proceeding between Landlord and Tenant relating to
the provisions of this Lease or Tenant’s occupancy of the Premises, the losing
party shall, upon demand, reimburse the prevailing party for its reasonable
costs of prosecuting and/or defending such proceeding (including, without
limitation, reasonable attorneys’ fees).

 

5.14         Alterations

 

Except as may be expressly set forth herein, Tenant shall not make
alterations and additions to the Premises except in accordance with plans and
specifications therefor first approved by Landlord, which approval shall not be
unreasonably withheld. However, Landlord’s determination of matters relating to
aesthetic issues relating to alterations, additions or improvements which are
visible outside the Premises shall be in Landlord’s sole discretion. Without
limiting such standard Landlord shall not be deemed unreasonable for
withholding approval of any alterations or additions (including, without
limitation, any alterations or additions to be performed by Tenant under Article III)
which (a) in Landlord’s opinion might adversely affect any structural or
exterior element of the Building, any area or element outside of the Premises,
or any facility or base building mechanical system serving any area of the
Building outside of the Premises, or (b) involve or affect the exterior
design, size, height, or other exterior dimensions of the Building, or (c) will
require unusual expense to readapt the Premises to normal office use on Lease
termination or expiration (Landlord hereby agreeing that it will not withhold
its consent to the installation of internal staircases on the grounds that the
same require unusual expense to readapt, provided that Landlord may nonetheless
withhold such approval on other grounds or condition approval on the Premises
being restored at the end of the Term to its condition prior to the installation
of such internal staircases) or

 

80

 

increase
the cost of construction or of insurance or taxes on the Building or of the
services called for by Section 4.1 unless Tenant first gives assurance
acceptable to Landlord for payment of such increased cost and that such
readaptation will be made prior to such termination or expiration without
expense to Landlord, or (d) enlarge the Rentable Floor Area of the
Premises, or (e) except with respect to the Tenant Improvement Work, are
inconsistent in Landlord’s judgment with alterations satisfying Landlord’s
standards for new alterations in the Building.

 

Landlord’s
review and approval of any such plans and specifications and consent to perform
work described therein shall not be deemed an agreement by Landlord that such
plans, specifications and work conform with applicable Legal Requirements and
requirements of insurers of the Building and the other requirements of this
Lease with respect to Tenant’s insurance obligations (herein called “Insurance
Requirements”) nor deemed a waiver of Tenant’s obligations under this Lease
with respect to applicable Legal Requirements and Insurance Requirements nor
impose any liability or obligation upon Landlord with respect to the
completeness, design sufficiency or compliance of such plans, specifications
and work with applicable Legal Requirements and Insurance Requirements nor give
right to any other parties. Further, Tenant acknowledges that Tenant is acting
for its own benefit and account, and that Tenant shall not be acting as
Landlord’s agent in performing any work in the Premises, accordingly, no
contractor, subcontractor or supplier shall have a right to lien Landlord’s
interest in the Property in connection with any such work.

 

Within
thirty (30) days after receipt of an invoice from Landlord, Tenant shall pay to
Landlord as a fee for Landlord’s review of any work or plans (excluding any
review respecting initial improvements performed pursuant to Article III
hereof for which a fee has previously been paid but including any review of
plans or work relating to any assignment or subletting), as Additional Rent, an
amount equal to the sum of: (i) One Hundred Fifty and 00/100 Dollars
($150.00) per hour, plus (ii) if Landlord reasonably determines that a
third-party consultant is needed to review such work or plans, then Tenant
shall reimburse Landlord for the reasonable third-party out-of-pocket costs
incurred by Landlord in hiring said third party to review Tenant’s plans and
Tenant’s work.

 

In the case of all alterations, additions and improvements (“Alterations”),
Tenant shall deliver reasonably detailed plans and specifications to Landlord
at the time Tenant seeks Landlord’s approval. All Alterations shall become
a part of the Building upon the expiration or earlier termination of this Lease
unless and until Landlord shall specify the same for removal as hereinafter set
forth. If Tenant shall make any Alterations that are considered Required
Removables (as hereinafter defined), then Landlord may elect, provided Landlord
so elects at the time Tenant requests Landlord’s consent to such Alterations,
to require Tenant at the expiration or sooner termination of the Term of this
Lease to remove the same and restore the Premises to substantially the same
condition as existed prior to the installation of such Required Removables. For
the purposes hereof, “Required Removables” shall mean all cabling and wiring,
interconnecting/internal staircases, data centers in excess of 3,000 square
feet of rentable floor area (either singly 

 

81

 

or
collectively), non-core restrooms (and any horizontal plumbing lines associated
with such restrooms), locker rooms, showers and cafeterias or full-service
kitchens (but not the type of kitchenettes typically found in first-class
office buildings) installed by or on behalf of Tenant.  Landlord hereby agrees to make such election
at the time that Landlord approves Tenant’s plans for such Alterations.  All of Tenant’s Alterations and installation
of furnishings shall be coordinated with any work being performed by Landlord
and in such manner as to maintain harmonious labor relations and not to damage
the Building or Site or interfere with construction or operation of the
Building and other improvements to the Site and, except for installation of furnishings,
shall be performed by contractors or workers first reasonably approved by
Landlord. Tenant, before its work is started, shall secure all licenses and
permits necessary therefor; deliver to Landlord a statement of the names of all
its contractors and subcontractors and the estimated cost of all labor and
material to be furnished by them; and cause each contractor to carry worker’s
compensation insurance in statutory amounts covering all the contractor’s and
subcontractor’s employees and commercial general liability insurance or
comprehensive general liability insurance with a broad form comprehensive
liability endorsement with such limits as Landlord may reasonably require, but
in no event less than $2,000,000.00 combined single limit per occurrence on a
per location basis (all such insurance to be written in companies approved by
Landlord and naming and insuring Landlord and Landlord’s managing agent as
additional insureds and insuring Tenant as well as the contractors), and to
deliver to Landlord certificates of all such insurance. Tenant shall also
prepare and submit to Landlord a set of as-built plans, in both print and
electronic forms, showing such work performed by Tenant to the Premises
promptly after any such alterations, additions or improvements or installations
are substantially complete and a set of schematic plans, in both print and
electronic forms, promptly after any wiring or cabling for Tenant’s computer,
telephone and other communications systems is installed by Tenant or Tenant’s
contractor; provided, however, that if the work is not of a nature where
as-built plans would customarily be prepared, Tenant shall only be required to
prepare and submit the type of plans that would customarily be prepared in
connection with such work. Without limiting any of Tenant’s obligations
hereunder, Tenant shall be responsible, as Additional Rent, for the costs of
any alterations, additions or improvements in or to the Building that are
required in order to comply with Legal Requirements as a result of any work
performed by Tenant. Landlord shall have the right to provide such rules and
regulations relative to the performance of any Alterations and installations by
Tenant hereunder and Tenant shall abide by all such reasonable rules and
regulations and shall cause all of its contractors to so abide including,
without limitation, payment for the costs of using Building services. Tenant
agrees to pay promptly when due the entire cost of any work done on the
Premises by Tenant, its agents, employees, or independent contractors, and
whether or not Tenant is contesting any such items or costs, not to cause or
permit any liens for labor or materials performed or furnished in connection
therewith to attach to the Premises or the Buildings or the Site and immediately
to discharge any such liens which may so attach. Tenant acknowledges and agrees
that Landlord shall be the owner of any Alterations in the Premises or the
Building to the extent paid for by Landlord.

 

82

 

Notwithstanding the
provisions of the immediately preceding paragraph, Tenant shall have the right,
without obtaining the prior consent of Landlord but upon notice to Landlord
given at least ten (10) days prior to the commencement of any work (which
notice shall specify the nature of the work in reasonable detail), to make
Alterations to the Premises where:

 

(i)            the same are within the interior
of the Premises within the Building, and do not affect the exterior of the
Premises and the Building;

 

(ii)           the same do not affect the roof or
any structural element of the Building and do not materially, adversely affect
the mechanical, electrical, plumbing, heating, ventilating, air-conditioning
and/or fire protection systems of the Building;

 

(iii)          either (a) such Alterations
do not require the issuance of a building permit by the appropriate municipal
authority or (b) the cost of said Alterations does not exceed One Hundred
Thousand and 00/100 Dollars ($100,000.00) for any given project; and

 

(iv)          Tenant shall comply with the other
provisions of this Lease and if such work increases the cost of insurance or
taxes or of services, Tenant shall pay for any such increase in cost;

 

provided, however, that Tenant shall, no later than ten (10) days
after the making of such changes, send to Landlord plans and specifications
describing the same in reasonable detail and provided further that Landlord
may, by notice to Tenant given no later than thirty (30) days subsequent to the
date on which the plans and specifications are submitted to Landlord, require
Tenant to restore the Premises to its condition prior to such alteration,
addition or improvement upon the expiration or earlier termination of the Lease
Term.

 

Upon
and subject to the terms of this Article, Tenant may construct internal
staircases between floors within the Premises and Tenant shall have the right
to select the location of such internal staircases subject to Landlord’s
approval which shall not be unreasonably withheld so long as the same shall not
adversely affect the structural integrity of the Building.

 

5.14.2      Tenant’s
Security System

 

Tenant
may install a security system within the Premises, provided such system and its
installation (i) shall be subject to Landlord’s prior written approval,
which shall not be unreasonably withheld, conditioned or delayed (provided
Landlord may deny consent to any system which is not compatible with the
Building’s overall security and fire safety and life safety systems), (ii) shall
be in accordance with all applicable Legal Requirements, and (iii) shall
be performed at Tenant’s sole expense, and shall otherwise be installed in
accordance with the provisions 

 

83

 

governing
Alterations under this Lease. Landlord agrees to cooperate with Tenant and
Tenant’s security system vendor to tie-in and coordinate the Building’s access
control system with Tenant’s security system such that card keys issued by
Landlord or Landlord’s contractor to Tenant or Tenant’s employees will permit
access both to the Premises and to the front entry door to the Building and the
back entry door in the loading dock area of the Building (it being understood
and agreed that Landlord reserves the right to limit or prohibit access to the
back entry door if Landlord determines in its reasonable discretion that such
access is causing a potentially unsafe condition), but will prohibit other
parties from using Building access cards issued by Landlord or Landlord’s
contractor from accessing the Premises with such cards.

 

5.15         Vendors

 

Any
vendors engaged by Tenant to perform services in or to the Premises including,
without limitation, janitorial contractors and moving contractors shall be
coordinated with any work being performed by or for Landlord and in such manner
as to maintain harmonious labor relations and not to damage the Building or the
Property or interfere with Building construction or operation and shall be
performed by vendors first approved by Landlord.

 

5.16         Patriot Act

 

(A)                              As an
inducement to Landlord to enter into this Lease, Tenant hereby represents and
warrants that: (i) Tenant is not, nor is it owned or controlled directly
or indirectly by, any person, group, entity or nation named on any list issued
by the Office of Foreign Assets Control of the United States Department of the
Treasury (“OFAC”) pursuant to Executive Order 13224 or any similar list or any
law, order, rule or regulation or any Executive Order of the President of
the United States as a terrorist, “Specially Designated National and Blocked
Person” or other banned or blocked person (any such person, group, entity or
nation being hereinafter referred to as a “Prohibited Person”); (ii) Tenant
is not (nor is it owned, controlled, directly or indirectly, by any person,
group, entity or nation which is) acting directly or indirectly for or on
behalf of any Prohibited Person; and (iii) from and after the effective
date of the above-referenced Executive Order, Tenant (and any person, group, or
entity which Tenant controls, directly or indirectly) has not knowingly
conducted nor will knowingly conduct business nor has knowingly engaged nor
will knowingly engage in any transaction or dealing with any Prohibited Person
in violation of the U.S. Patriot Act or any OFAC rule or regulation,
including without limitation any assignment of this Lease or any subletting of
all or any portion of the Premises or the making or receiving of any
contribution of funds, goods or services to or for the benefit of a Prohibited
Person in violation of the U.S. Patriot Act or any OFAC rule or
regulation. In connection with the foregoing, it is expressly understood and
agreed that (x) any breach by Tenant of the foregoing representations and
warranties shall be deemed an immediate Event of Default by Tenant under Section 7.1
of this Lease (without the benefit of notice or grace) and shall be covered by
the indemnity provisions of Section 5.7 above, and (y) the
representations and warranties contained in this subsection shall be continuing
in nature and shall survive the expiration or earlier 

 

84

 

termination
of this Lease.

 

(B)                                As an
inducement to Tenant to enter into this Lease, Landlord hereby represents and
warrants that: (i) Landlord is not, nor is it owned or controlled directly
or indirectly by, any person, group, entity or nation named on any list issued
by the Office of Foreign Assets Control of the United States Department of the
Treasury (“OFAC”) pursuant to Executive Order 13224 or any similar list or by
any law, order, rule or regulation or any Executive Order of the President
of the United States as a terrorist, “Specially Designated National and Blocked
Person” or other banned or blocked person (any such person, group, entity or
nation being hereinafter referred to as a “Prohibited Person”); (ii) Landlord
is not (nor is it owned or controlled, directly or indirectly, by any person,
group, entity or nation which is) acting directly or indirectly for or on
behalf of any Prohibited Person; and (iii) from and after the effective
date of the above-referenced Executive Order, Landlord (and any person, group,
or entity which Landlord controls, directly or indirectly) has not knowingly
conducted nor will knowingly conduct business nor has knowingly engaged nor
will knowingly engage in any transaction or dealing with any Prohibited Person
in violation of the U.S. Patriot Act or any OFAC rule or regulation,
including without limitation, the making or receiving of any contribution of
funds, good or services to or for the benefit of a Prohibited Person in
violation of the U.S. Patriot Act or any OFAC rule or regulation. In
connection with the foregoing, is expressly understood and agreed that (x) any
breach by Landlord of the foregoing representatives and warranties shall be
covered by the indemnity provisions of Section 4.4 above and (y) the
representations and warranties contained in this subsection shall be continuing
in nature and shall survive the expiration or earlier termination of this
Lease. Notwithstanding anything contained herein to the contrary, for the
purposes of this subsection (B) the phrase “owned or controlled directly
or indirectly by any person, group, entity or nation” and all similar such
phrases shall not include (1) any shareholder of Boston Properties, Inc.,
(2) any holder of a direct or indirect interest in a publicly traded
company whose shares are listed and traded on a nationally recognized stock
exchange or (3) any limited partner, unit holder or shareholder owning an
interest of five percent (5%) or less in Boston Properties Limited Partnership
or the holder of any direct or indirect interest in Boston Properties Limited
Partnership.

 

ARTICLE VI

 

CASUALTY
AND TAKING

 

6.1           Damage
Resulting from Casualty

 

In
case during the Lease Term the Building or the Site are damaged by fire or
other casualty, Landlord shall within sixty (60) days after the occurrence
thereof notify Tenant in writing of Landlord’s reasonable estimate of the
length of time necessary to repair or restore such fire or casualty damage from
the time that repair work would commence (“Landlord’s Restoration Estimate”).  If Landlord’s Restoration Estimate exceeds
two hundred ten (210) days from the time that repair work would commence (and,
so long as Tenant leases seventy percent (70%) or more of the Total Rentable
Floor Area of the 

 

85

 

Building,
the Premises is materially damaged), Landlord may, at its election, terminate
this Lease by notice given to Tenant within ten (10) business days after the
date of Landlord’s Restoration Estimate specifying the effective date of
termination, provided, however, that Landlord shall only be permitted to
terminate this Lease on account of such damage if Landlord terminates the
leases of all other tenants in the Building similarly affected by the casualty
(where Landlord has a termination right thereunder). The effective date of
termination specified by Landlord shall not be less than thirty (30) days nor
more than forty-five (45) days after the date of notice of such termination.

 

If
the Premises is materially damaged and Landlord’s Restoration Estimate exceeds
two hundred ten (210) days from the time that repair work would commence,
Tenant may, at its election, terminate this Lease by notice given to Landlord within
ten (10) business days after the receipt of Landlord’s Restoration
Estimate, specifying the effective date of termination. The effective date of
termination specified by Tenant shall not be less than thirty (30) days nor
more than forty-five (45) days after the date of notice of such termination.

 

In addition, in case during the final
eighteen (18) months of the Lease Term, the Premises are damaged by fire or
casualty and if Landlord’s Restoration Estimate exceeds one hundred fifty (150)
days from the time that repair work would commence, Tenant may, at its
election, terminate this Lease by notice given to Landlord within ten (10) business
days after the receipt of Landlord’s Restoration Estimate, specifying the
effective date of termination. The effective date of termination specified by
Tenant shall be not less than thirty (30) days nor more than forty-five (45)
days after the date of notice of such termination.

 

Unless
terminated pursuant to the foregoing provisions, this Lease shall remain in
full force and effect following any such damage subject, however, to the
following provisions.

 

If
the Building or the Site or any part thereof are damaged by fire or other
casualty and this Lease is not so terminated, or Landlord or Tenant have no
right to terminate this Lease, and in any such case the holder of any mortgage
which includes the Building as a part of the mortgaged premises or any ground
lessor of any ground lease which includes the Site as part of the demised
premises allows the net insurance proceeds to be applied to the restoration of
the Building (and/or the Site), Landlord promptly after such damage and the
determination of the net amount of insurance proceeds available shall use due
diligence to restore the Premises and the Building in the event of damage
thereto (excluding Tenant’s Property) into substantially the same condition as
existed prior to the fire or other casualty and a just proportion of the Annual
Fixed Rent, Tenant’s estimated electricity charges (if applicable), Tenant’s
Operating Expenses Payment, Tenant’s Tax Payment and Tenant’s Electricity
Payment according to the nature and extent of the injury to the Premises shall
be abated until the earlier to occur of (i) the date the Premises is
substantially restored to the extent required under this Lease and Tenant has
had a reasonable period of time (in no event to exceed thirty (30) days after
Landlord has completed its restoration obligations as aforesaid) to perform its
restoration obligations 

 

86

 

hereunder
and to install its furniture, fixtures and equipment, which Tenant agrees to
undertake in a reasonably expeditious manner, and (ii) the date Tenant
commences business operations in the Premises.

 

Notwithstanding
anything herein contained to the contrary, Landlord shall not be obligated to
expend for such repair and restoration any amount in excess of the net
insurance proceeds.  If such net
insurance proceeds are not allowed by such mortgagee or ground lessor to be
applied to, or are insufficient for, the restoration of the Building and if
Landlord does not otherwise elect to restore the Building, then Landlord shall
give prompt notice to Tenant terminating this Lease, the effective date of
which termination shall not be less than sixty (60) days after the date of
notice of such termination.

 

Unless
such restoration is (x) commenced within six (6) months from the date
of the casualty or taking (except to the extent such restoration work could be
completed within the one (1) year period described in subsection (y) below,
notwithstanding the fact that it did not commence within six (6) months
from the date of the casualty or taking), such period to be subject, however,
to extension where the delay in commencement of such work is due to Force
Majeure (but in no event beyond ten (10) months from the date of the
casualty or taking) and (y) is completed within one (1) year from the
date of the casualty or taking, such one (1) year period to be subject,
however, to extension where the delay in completion of such work is due to
Force Majeure (but in no event beyond eighteen (18) months from the date of the
casualty or taking), Tenant, as its sole and exclusive remedy, shall have the
right to terminate this Lease at any time after the expiration of such
six-month or one-year (as extended) period, as the case may be, until the
restoration is substantially completed, such termination to take effect as of
the thirtieth (30th) day after the
date of receipt by Landlord of Tenant’s notice, with the same force and effect
as if such date were the date originally established as the expiration date
hereof unless, within thirty (30) days after Landlord’s receipt of Tenant’s
notice, such restoration is substantially completed, in which case Tenant’s
notice of termination shall be of no force and effect and this Lease and the
Lease Term shall continue in full force and effect. When used in this Article VI,
“Force Majeure” shall mean any prevention, delay or stoppage due to
governmental regulation, strikes, lockouts, acts of God, acts of war,
terrorists acts, civil commotions, unusual scarcity of or inability to obtain
labor or materials, labor difficulties, casualty or other causes reasonably
beyond Landlord’s control or attributable to Tenant’s action or inaction;
provided, however, that (1) in no event shall Landlord’s financial
inability constitute a cause beyond Landlord’s reasonable control and (2) in
order for Landlord to claim the benefit of any delay due to Force Majeure,
Landlord shall be required to use reasonable efforts to minimize the extent and
duration of such delay and to notify Tenant of the existence and nature of the
cause of such delay within a reasonable time after the delay first commences.

 

6.2           Uninsured
Casualty

 

Notwithstanding
anything to the contrary contained in this Lease, if the Building or the
Premises shall be substantially damaged by fire or casualty as the result of a
risk not covered by the forms of casualty insurance at the time maintained by
Landlord or required to be maintained by Landlord under this Lease and such
fire or casualty damage 

 

87

 

cannot,
in the ordinary course, reasonably be expected to be repaired within ninety
(90) days from the time that repair work would commence, either party may, at
its election, terminate the Term of this Lease by notice to the other party
given within sixty (60) days after such loss; provided, however that Landlord
may not terminate this Lease on account of an uninsured casualty and shall restore
the Premises, the Common Areas and the Site in accordance with the terms of
this Lease, if and to the extent such damage would have been covered by the
insurance coverages required to be carried by Landlord under this Lease. If
either party shall give such notice, then this Lease shall terminate as of 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. Landlord agrees that
if neither party elects to terminate the Lease pursuant to this Section 6.2,
Landlord shall restore the damage in accordance with the provisions of Section 6.1
hereof (including, without limitation, Tenant’s termination rights contained
therein).

 

6.3           Rights of
Termination for Taking

 

If
the entire Building, or such portion of the Premises as to render the balance
(if reconstructed to the maximum extent practicable in the circumstances)
unsuitable for Tenant’s purposes shall be taken by condemnation or right of
eminent domain, Landlord or Tenant shall have the right to terminate this Lease
by notice to the other of its desire to do so, provided that such notice is
given not later than thirty (30) days after Tenant has been deprived of
possession. If either party shall give such notice, then this Lease shall
terminate as of 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.
In addition, if twenty-five percent (25%) or more of the parking areas serving
the Building shall be taken by condemnation or right of eminent domain and
Landlord is unable to provide Tenant, within ninety (90) days after the
effective date of such taking, with a substitute location for parking (at the
Original Parking Ratio) within a reasonable proximity to the Building, then
Tenant may terminate this Lease by notice to Landlord of its desire to do so,
provided that such notice is given no earlier than ninety (90) nor later than
one hundred twenty (120) days after the effective date of such taking.

 

Further,
if so much of the Building shall be so taken that continued operation of the
Building would be uneconomic as a result of the taking, Landlord shall have the
right to terminate this Lease by giving notice to Tenant of Landlord’s desire
to do so not later than thirty (30) days after Tenant has been deprived of
possession of the Premises (or such portion thereof as may be taken); provided
that in the event of such termination, Landlord shall also terminate all other
tenant leases in affected portions of the Building that contain similar
termination rights. If Landlord shall give such notice, then this Lease shall
terminate as of 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.

 

Should
any part of the Premises be so taken or condemned during the Lease Term hereof,
and should this Lease not be terminated in accordance with the foregoing
provisions, and the holder of any mortgage which includes the Premises as part
of the mortgaged premises or any ground lessor of any ground lease which
includes the Site as part of the demised premises allows the net condemnation
proceeds to be applied to the restoration 

 

88

 

of
the Building, Landlord agrees that after the determination of the net amount of
condemnation proceeds available to Landlord, Landlord shall use due diligence
to put what may remain of the Premises into proper condition for use and
occupation as nearly like the condition of the Premises prior to such taking as
shall be practicable (excluding Tenant’s Property but including Tenant’s
Alterations to the extent compensation therefor has been considered in Landlord’s
award and has not been recovered by Tenant pursuant to Section 6.4).
Notwithstanding the foregoing, Landlord shall not be obligated to expend for
such repair and restoration any amount in excess of the net condemnation
proceeds made available to it. If such net condemnation proceeds are not
allowed by such mortgagee or ground lessor to be applied to, or are
insufficient for, the restoration of the Building and if Landlord does not
otherwise elect to restore the Building, then Landlord shall give prompt notice
to Tenant terminating this Lease, the effective date of which termination shall
not be less than sixty (60) days after the date of notice of such termination;
provided, however, that Landlord shall only be permitted to terminate this
Lease on account of such taking if Landlord terminates the leases of all other
tenants in the Building similarly affected by the taking (where Landlord has a
termination right thereunder).

 

If
the Premises shall be affected by any exercise of the power of eminent domain,
then the Annual Fixed Rent, Tenant’s Operating Expenses Payment and Tenant’s
Tax Payment shall be justly and equitably abated and reduced according to the
nature and extent of the loss of use thereof suffered by Tenant; and in case of
a taking which permanently reduces the Rentable Floor Area of the Premises, a
just proportion of the Annual Fixed Rent, Tenant’s Operating Expenses Payment,
Tenant’s Tax Payment and Tenant’s Electricity Payment shall be abated for the
remainder of the Lease Term.

 

6.4           Award

 

Landlord
shall have and hereby reserves to itself any and all rights to receive awards
made for damages to the Premises, the Building and the Site and the leasehold
hereby created, or any one or more of them, accruing by reason of exercise of
eminent domain or by reason of anything lawfully done in pursuance of public or
other authority. Tenant hereby grants, releases and assigns to Landlord all
Tenant’s rights to such awards, and covenants to execute and deliver such
further assignments and assurances thereof as Landlord may from time to time
request, and if Tenant shall fail to execute and deliver the same within
fifteen (15) days after notice from Landlord, Tenant hereby covenants and
agrees that Landlord shall be irrevocably designated and appointed as its
attorney-in-fact to execute and deliver in Tenant’s name and behalf all such
further assignments thereof which conform with the provisions hereof.

 

Notwithstanding the immediately preceding paragraph, if and
to the extent that any improvements shall be taken pursuant to the power of
eminent domain, shall have been separately paid for by Tenant when made, shall
not be restored and for which a separate award shall not be made by the taking
authority but the determination of the award takes into account such
improvements, Tenant shall be entitled out of the award to an amount equal to
Tenant’s unamortized cost of such improvements. Tenant’s unamortized cost of
any of such improvements shall be determined from Tenant’s federal income tax
returns 

 

89

 

and shall exclude any contributions to such cost by Landlord
whether effected by deductions from rent, special allowances, payments for
Annual Fixed Rent or Additional Rent or otherwise.

 

Nothing
contained herein shall be construed to prevent Tenant from prosecuting in any
condemnation proceeding a claim for the value of any of Tenant’s usual trade
fixtures installed in the Premises by Tenant at Tenant’s expense and for
relocation and moving expenses, provided that such action and any resulting
award shall not affect or diminish the amount of compensation otherwise
recoverable by Landlord from the taking authority.

 

6.5                                 Allocation of
Proceeds Following Termination

 

In the event that this Lease is terminated (x) by Landlord under Section 6.1
or 6.3 above or (y) by Tenant under the provisions of the seventh (7th) paragraph of Section 6.1
or the first (1st) paragraph of Section 6.3
above, Tenant shall be entitled to receive out of the Proceeds or Award Balance
(as hereinafter defined) the Book Value of the Tenant Improvement Work (as
hereinafter defined); provided, however, that if the sum of the Book Value of
the Tenant Improvement Work and the Book Value of the Landlord’s Contribution
(as hereinafter defined) exceed the Proceeds or Award Balance, then the Book
Value of the Tenant Improvement Work and the Book Value of the Landlord’s
Contribution shall be proportionately reduced to an amount which, when added
together, shall equal the Proceeds or Award Balance and in such event Tenant
shall be entitled to receive out of the Proceeds or Award Balance the amount of
the Book Value of the Tenant Improvement Work as so reduced.  To the extent that the sum of the Book Value
of the Tenant Improvement Work and the Book Value of the Landlord’s
Contribution is less than the Proceeds or Award Balance, Landlord shall be
entitled to the entire excess balance thereof.

 

For the purposes hereof:

 

(i)            The “Proceeds
or Award Balance” shall be the amount, if any, by which the net insurance
proceeds or net condemnation award (as applicable) exceeds the total of (a) the
portion of the proceeds or award allocable to the Site (i.e. as if the land
were unimproved), plus (b) the replacement cost of the Building (exclusive
of the Tenant Improvement Work), plus (c) all amounts payable to Landlord’s
mortgagee or ground lessor on account of such casualty or taking, plus (d) in
the event of a termination by Tenant under the provisions of the seventh (7th) paragraph of Section 6.1,
all amounts expended by Landlord towards the restoration of the Tenant
Improvement Work prior to the date of Tenant’s notice of termination.

 

(ii)           The “Book Value
of the Tenant Improvement Work” shall be the then unamortized portion of all
Tenant Plan Excess Costs, calculated on a straight-line basis over the Original
Term and determined as of the date of the casualty or taking.

 

90

 

(iii)          The “Book Value
of the Landlord’s Contribution” shall be the then unamortized portion of the
Landlord’s Contribution, calculated on a straight-line basis over the Original
Term and determined as of the date of the casualty or taking.

 

ARTICLE VII

 

DEFAULT

 

7.1           Tenant’s
Default

 

(a)                                  If at any time subsequent to
the date of this Lease any one or more of the following events (herein
sometimes called an “Event of Default”) shall occur:

 

(i)            Tenant shall
fail to pay the fixed rent, Additional Rent or other charges for which
provision is made herein on or before the date on which the same become due and
payable, and the same continues for five (5) business days after written
notice from Landlord thereof; or

 

(ii)           Landlord having
rightfully given the written notice specified in subdivision (i) above
twice in any calendar year, Tenant shall thereafter in the same calendar year
fail to pay the fixed rent, Additional Rent or other charges on or before the
date on which the same become due and payable; or

 

(iii)          Tenant shall
assign its interest in this Lease or sublet any portion of the Premises in
violation of the requirements of Sections 5.6 through 5.6.5 of this Lease and
the same continues for fifteen (15) business days after written notice from
Landlord thereof; or

 

(iv)          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; or

 

(v)           Tenant’s
leasehold interest in the Premises shall be taken on execution or by other
process of law directed against Tenant; or

 

(vi)          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 

 

91

 

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

 

(vii)         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 such petition is of such a nature that Tenant
cannot reasonably dismiss or stay the same within such sixty (60) day period,
Tenant shall fail to commence promptly to dismiss or stay the same and to
prosecute such remedy to completion with diligence and continuity), 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) (or
if such appointment is of such a nature that Tenant cannot reasonably vacate or
stay the same within such sixty (60) day period, Tenant shall fail to commence
promptly to vacate or stay the same and to prosecute such remedy to completion
with diligence and continuity), then, and in any of said cases
(notwithstanding any license of a former breach of covenant or waiver of the
benefit hereof or consent in a former instance),

 

Landlord
lawfully may, immediately or at any time thereafter, and without demand or
further notice 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 Lease Term (Tenant hereby waiving
any rights of redemption), and Tenant will then quit and surrender the Premises
to Landlord, but Tenant shall remain liable as hereinafter provided.

 

(b)                                 If this Lease shall have
been terminated as provided in this Article, then, to the extent permitted by
applicable law, Landlord may, without notice, re- enter the Premises, either by
force, summary proceedings, ejectment 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 

 

92

 

service
of notice of intention to re-enter or to institute legal proceedings to that
end.

 

(c)                                  In the event that this Lease
is terminated under any of the provisions contained in Section 7.1 (a) or
shall be otherwise terminated by breach of any obligation of Tenant, Tenant
covenants and agrees forthwith to pay and be liable for, on the days originally
fixed herein for the payment thereof, amounts equal to the several installments
of rent and other charges reserved as they would, under the terms of this
Lease, become due if this Lease had not been terminated or if Landlord had not
entered or re-entered, as aforesaid, and whether the Premises be relet or
remain vacant, in whole or in part, or for a period less than the remainder of
the Term, and for the whole thereof, but in the event the Premises be relet by
Landlord, Tenant shall be entitled to a credit in the net amount of rent and
other charges received by Landlord in reletting, after deduction of all
expenses incurred in reletting the Premises (including, without limitation,
remodeling costs, brokerage fees and the like), and in collecting the rent in
connection therewith, in the following manner:

 

Amounts
received by Landlord after reletting shall first be applied against such
Landlord’s expenses, until the same are recovered, and until such recovery,
Tenant shall pay, as of each day when a payment would fall due under this
Lease, the amount which Tenant is obligated to pay under the terms of this
Lease (Tenant’s liability prior to any such reletting and such recovery not in
any way to be diminished as a result of the fact that such reletting might be
for a rent higher than the rent provided for in this Lease); when and if such
expenses have been completely recovered, the amounts received from reletting by
Landlord as have not previously been applied shall be credited against Tenant’s
obligations as of each day when a payment would fall due under this Lease, and
only the net amount thereof shall be payable by Tenant. Further, amounts
received by Landlord from such reletting for any period shall be credited only
against obligations of Tenant allocable to such period, and shall not be
credited against obligations of Tenant hereunder accruing subsequent or prior
to such period; nor shall any credit of any kind be due for any period after
the date when the Term of this Lease is scheduled to expire according to its terms.

 

Landlord
agrees to use reasonable efforts to relet the Premises after Tenant vacates the
same in the event this Lease is terminated based upon an Event of Default by
Tenant hereunder. The marketing of the Premises in a manner similar to the
manner in which Landlord markets other premises within Landlord’s control
within the Building shall be deemed to have satisfied Landlord’s obligation to
use “reasonable efforts” hereunder. In no event shall Landlord be required to (i) solicit
or entertain negotiations with any other prospective tenant for the Premises
until Landlord obtains full and complete possession of the Premises (including,
without limitation, the final and unappealable legal right to 

 

93

 

relet
the Premises free of any claim of Tenant), (ii) relet the Premises before
leasing other vacant space in the CityPoint Project, or (iii) lease the
Premises for a rental less than the current fair market rent then prevailing
for similar office space in the CityPoint Project.

 

(d)           (i)                                     Landlord may
elect, as an alternative, to have Tenant pay liquidated damages, which election
may be made by notice given to Tenant at any time after such termination and
whether or not Landlord shall have collected any damages as aforesaid, as
liquidated final damages and in lieu of all other damages beyond the date of
such notice. Upon such notice, Tenant shall promptly pay to Landlord, as
liquidated damages, in addition to any damages collected or due from Tenant for
any period prior to such notice and all expenses which Landlord may have
incurred with respect to the collection of such damages, such a sum as at the
time of the giving of such notice represents the amount of the excess, if any,
of the total rent and other benefits which would have accrued to Landlord under
this Lease from the date of such notice for what would be the then unexpired
Lease Term if the Lease terms had been fully complied with by Tenant over and
above the then fair market cash rental value (in advance) of the Premises for
the balance of the Lease Term, both discounted to present value using six
percent (6%) as the discount rate.

 

(ii)                                  For the
purposes of this Article, if Landlord elects to require Tenant to pay damages
in accordance with the immediately preceding paragraph, the total rent shall be
computed by assuming that Tenant’s share of excess taxes, Tenant’s share of
excess operating costs and Tenant’s share of excess electrical costs would be,
for the balance of the unexpired Term from the date of such notice, the amount
thereof (if any) for the immediately preceding annual period payable by Tenant
to Landlord.

 

(e)           In case of any
Event of Default, re-entry, dispossession by summary proceedings or otherwise,
Landlord may (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,
abatements or free rent to the extent that Landlord reasonably considers
advisable or necessary to re-let the same and (ii) may make such
alterations, repairs and decorations in the Premises as Landlord in its sole
judgment considers advisable or necessary for the purpose of reletting 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 re-letting.

 

(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 

 

94

 

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. Further, 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.

 

7.2           Landlord’s
Default

 

Landlord
shall in no event be in default in the performance of any of Landlord’s
obligations hereunder unless and until Landlord shall have failed to perform
such obligations within thirty (30) days, or such additional time as is
reasonably required to correct any such default, after notice by Tenant to
Landlord properly specifying wherein Landlord has failed to perform any such
obligation. Except to the extent expressly provided in this Lease, Tenant shall
not assert any right to deduct the cost of repairs or any monetary claim
against the Landlord from rent thereafter due and payable, but shall look
solely to the Landlord for satisfaction of such claim.

 

ARTICLE
VIII

 

MISCELLANEOUS
PROVISIONS

 

8.1           Extra Hazardous
Use

 

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 insurance on the Premises or on the Building above
the standard rate applicable to premises being occupied for the use to which
Tenant has agreed to devote the Premises; 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 Additional Rent thereunder.

 

8.2           Waiver

 

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 its 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 subsequent similar act by
the other.

 

95

 

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 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.

 

8.3                                 Cumulative
Remedies

 

Except
as expressly provided in this Lease, the specific remedies to which Landlord
may resort under the terms of this Lease are cumulative and are not intended to
be exclusive of any other remedies or means of redress to which Landlord may be
lawfully entitled in case of any breach or threatened breach by Tenant of any
provisions of this Lease. In addition to the other remedies provided in this
Lease, Landlord shall be entitled to the restraint by injunction of the
violation or attempted or threatened violation of any of the covenants,
conditions or provisions of this Lease or to a decree compelling specific
performance of any such covenants, conditions or provisions.

 

8.4                                 Quiet Enjoyment

 

This
Lease is subject and subordinate to all matters of record. So long as an Event
of Default by Tenant is not in existence under this Lease, Tenant shall
lawfully, peaceably and quietly have, hold, occupy and enjoy the Premises
during the Term (exclusive of any period during which Tenant is holding over
after the expiration or termination of this Lease without the consent of
Landlord), without hindrance or ejection by any persons lawfully claiming to
have title to the Premises superior to Tenant, subject, however, to the terms
of this Lease; the foregoing covenant of quiet enjoyment is in lieu of any
other covenant, express or implied; and it is understood and agreed that this
covenant and any and all other covenants of Landlord contained in this Lease
shall be binding upon Landlord and Landlord’s successors, including ground or
master lessees, only with respect to breaches occurring during Landlord’s or
Landlord’s successors’ respective ownership of Landlord’s interest hereunder,
as the case may be.

 

Further,
Tenant specifically agrees to look solely to Landlord’s then equity interest in
the Building at the time owned, or in which Landlord holds an interest as
ground lessee, or the profits and proceeds thereof, for recovery of any
judgment from Landlord; it being specifically agreed that neither Landlord
(original or successor), nor any beneficiary of any trust of which any person
holding Landlord’s interest as trustee, nor any member, manager, partner,
director or stockholder, nor Landlord’s managing agent, shall ever be
personally liable for any such judgment, or for the payment of any monetary
obligation to Tenant. The provision contained in the foregoing sentence is not
intended to, and shall not, limit any right that Tenant might otherwise have to
obtain injunctive relief against Landlord or Landlord’s successors in interest,
or any action not involving the personal liability of Landlord (original or
successor), any successor trustee to the persons named herein as Landlord, or
any beneficiary of any trust of which any person holding Landlord’s interest is
trustee, or of any manager, member, partner, director or stockholder 

 

96

 

of
Landlord or of Landlord’s managing agent to respond in monetary damages from
Landlord’s assets other than Landlord’s equity interest aforesaid in the
Building, but in no event (except as otherwise expressly set forth herein)
shall Tenant have the right to terminate or cancel this Lease or to withhold
rent or to set-off any claim or damages against rent as a result of any default
by Landlord or breach by Landlord of its covenants or any warranties or
promises hereunder, except in the case of a wrongful eviction of Tenant from
the Premises (constructive or actual) by Landlord continuing after notice to
Landlord thereof and a reasonable opportunity for Landlord to cure the same. In
no event shall Landlord or Tenant ever be liable to the other for any indirect
or consequential damages or loss of profits or the like; provided that the
foregoing shall not limit or alter any procedural right or remedy of Landlord
under this Lease nor shall the same apply to the obligations of Tenant with
respect to any hold-over by Tenant after the expiration or earlier termination
of this Lease.

 

8.5                                 Notice to
Mortgagee and Ground Lessor

 

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, or that it is
the ground lessor under a lease with Landlord, as ground lessee, which includes
the Premises as a part of the demised premises, no notice of a default from
Tenant to Landlord shall be effective unless and until a copy of the same is
given to such holder or ground lessor, and the curing of any of Landlord’s
defaults by such holder or ground lessor within a reasonable time thereafter
(including a reasonable time to obtain possession of the premises if the
mortgagee or ground lessor elects to do so) shall be treated as performance by
Landlord. For the purposes of this Section 8.5 or Section 8.15, the
term “mortgage” includes a mortgage on a leasehold interest of Landlord (but
not one on Tenant’s leasehold interest).

 

8.6                                 Assignment of
Rents

 

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 or ground lease on property
which includes the Premises, Tenant agrees:

 

(a)                                  That the execution thereof
by Landlord, and the acceptance thereof by the holder of such mortgage or the
ground lessor, shall never be treated as an assumption by such holder or ground
lessor of any of the obligations of Landlord hereunder, unless such holder, or
ground lessor, shall, by notice sent to Tenant, specifically otherwise elect;
or upon foreclosure of such holder’s mortgage and the taking of possession of
the Premises, or, in the case of a ground lessor, the assumption of Landlord’s
position hereunder by such ground lessor.

 

In
no event shall the acquisition of title to the Building and the land on which
the same is located by a purchaser which, simultaneously therewith, leases the
entire Building or such land back to the seller thereof be treated as an
assumption by such purchaser-lessor, 

 

97

 

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 subject to the
provisions of Section 8.4 hereof. In any such event, this Lease shall be
subject and subordinate to the lease to such purchaser provided that such
purchaser agrees in a written non-disturbance agreement reasonably acceptable
to Tenant to recognize the rights of Tenant under this Lease, including the
right of Tenant to use and occupy the Premises upon the payment of rent and
other charges payable by Tenant under this Lease and the performance by Tenant
of Tenant’s obligations hereunder and provided that Tenant agrees to attorn to
such purchaser. 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.

 

8.7                                 Surrender

 

No
act or thing done by Landlord during the Lease Term shall be deemed an
acceptance of a surrender of the Premises, and no agreement to accept such
surrender shall be valid, unless in writing signed by Landlord. No employee of
Landlord or of Landlord’s agents shall have any power to accept the keys of the
Premises prior to the expiration or earlier termination of this Lease. The
delivery of keys to any employee of Landlord or of Landlord’s agents shall not
operate as a termination of the Lease or a surrender of the Premises.

 

8.8                                 Brokerage

 

(A)          Tenant warrants and represents that
Tenant has not dealt with any broker in connection with the consummation of
this Lease other than the broker, person or firm, if any, designated in Section 1.1
hereof (the “Broker”); and in the event any claim is made against the Landlord
relative to dealings by Tenant with brokers other than the Broker, Tenant shall
defend the claim against Landlord with counsel of Tenant’s selection first
approved by Landlord (which approval will not be unreasonably withheld) and save
harmless and indemnify Landlord on account of loss, cost or damage which may
arise by reason of such claim.

 

(B)           Landlord warrants and represents that
Landlord has not dealt with any broker in connection with the consummation of
this Lease other than the Broker; and in the event any claim is made against
the Tenant relative to dealings by Landlord with brokers including the Broker,
Landlord shall defend the claim against Tenant with counsel of Landlord’s
selection first approved by Tenant (which approval will not be unreasonably
withheld) and save harmless and indemnify Tenant on account of loss, cost or
damage which may arise by reason of such claim. Landlord agrees that it shall
be solely responsible for the payment of brokerage commissions to the Broker
for the Term of this Lease.

 

8.9                                 Invalidity of
Particular Provisions

 

If
any term or provision of this Lease, or the application thereof to any person
or 

 

98

 

circumstance
shall, to any 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.

 

8.10         Provisions Binding, Etc

 

The
obligations of this Lease shall run with the land, and 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 subletting or assignment by Tenant.

 

8.11         Recording; Confidentiality

 

Landlord
and Tenant agree not to record the within Lease, but simultaneously with their
execution and delivery of this Lease to execute and deliver a Notice of Lease
in the form attached hereto as Exhibit L. In no event shall such document
set forth 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.

 

Tenant
agrees that this Lease and the terms contained herein will be treated as
strictly confidential and except as required by law (or except with the written
consent of Landlord) Tenant shall not disclose the same to any third party
except for Tenant’s employees, brokers, agents, partners, lenders, accountants
and attorneys and like parties who have been advised of the confidentiality
provisions contained herein and agree to be bound by the same. In the event
Tenant is required by law to provide this Lease or disclose any of its terms, Tenant
shall give Landlord prompt notice of such requirement prior to making
disclosure so that Landlord may seek an appropriate protective order. If
failing the entry of a protective order Tenant is compelled to make disclosure,
Tenant shall only disclose portions of the Lease which Tenant is required to
disclose and will exercise reasonable efforts to obtain assurance that
confidential treatment will be accorded to the information so disclosed. In
connection with the foregoing, it is acknowledged and agreed that Tenant will
be required by applicable governmental regulations to disclose this Lease in
its public filings with the United States Securities and Exchange Commission
and, therefore, this Lease (and any amendments thereto) will be available to
the public without the requirement of any further notice to Landlord under this
Section 8.11.

 

8.12         Notices

 

Whenever,
by the terms of this Lease, notice shall or may be given either to Landlord or
to Tenant, such notice shall be in writing and shall be sent by (i) registered
or certified 

 

99

 

mail,
postage prepaid or (ii) recognized overnight courier service providing
evidence of delivery, charges prepaid or (iii) delivery by either of the
foregoing methods or by hand in the case of any notices required to be given
under Article III of this Lease:

 

If
intended for Landlord, addressed to Landlord at the address set forth in Article I
of this Lease (or to such other address or addresses as may from time to time
hereafter be designated by Landlord by like notice) with a copy to Landlord,
Attention: General Counsel.

 

If
intended for Tenant, addressed to Tenant at the address set forth in Article I
of this Lease except that from and after the Commencement Date the address of
Tenant shall be the Premises with a copy to Tenant, Attention: General Counsel
at the same address (or to such other address or addresses as may from time to
time hereafter be designated by Tenant by like notice).

 

Except
as otherwise provided herein, all such notices shall be effective when
received; provided, that (i) if receipt is refused, notice shall be
effective upon the first occasion that such receipt is refused, (ii) if
the notice is unable to be delivered due to a change of address of which no
notice was given, notice shall be effective upon the date such delivery was
attempted, (iii) if the notice address is a post office box number, notice
shall be effective the day after such notice is sent as provided hereinabove or
(iv) if the notice is to a foreign address, notice shall be effective two (2) days
after such notice is sent as provided hereinabove.

 

Where
provision is made for the attention of an individual or department, the notice
shall be effective only if the wrapper in which such notice is sent is
addressed to the attention of such individual or department.

 

Any
notice given by an attorney on behalf of Landlord or by Landlord’s managing
agent shall be considered as given by Landlord, and any notice given by an
attorney on behalf of Tenant shall be considered as given by Tenant, and each
such notice, as applicable, shall be fully effective.  Any notice required to be given under Article III
of this Lease shall be considered fully effective upon receipt of such notice
by the parties’ respective Construction Representatives as designated in Article I
of this Lease (provided that copies of all such notices are simultaneously
delivered to the parties as set forth in the first grammatical paragraph and
the two immediately following subparagraphs of this Section 8.12).

 

Time
is of the essence with respect to any and all notices and periods for giving
notice or taking any action thereto under this Lease.

 

8.13         When Lease Becomes Binding

 

Employees
or agents of Landlord or Tenant have no authority to make or agree to make a
lease or any other agreement or undertaking in connection herewith. 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 

 

100

 

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 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 or Tenant shall alter, change or modify any of
the provisions hereof.

 

8.14         Section Headings

 

The
titles of the Articles throughout this Lease 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.

 

8.15         Rights of Mortgagee

 

This
Lease shall be subject and subordinate to any mortgage now or hereafter on the
Site or the Building, or both, and to each advance made or hereafter to be made
under any mortgage, and to all renewals, modifications, consolidations,
replacements and extensions thereof and all substitutions therefore, provided,
however, that in consideration of and as a condition precedent to Tenant’s
agreement to subordinate this Lease with respect to mortgages hereafter placed
on the Site shall be the receipt by Tenant of a commercially reasonable
non-disturbance agreement from and wherein the applicable mortgagee expressly
recognizes the rights of Tenant under this Lease (including the right to use
and occupy the Premises and to lease additional premises at the Building) upon
the payment of rent and other charges payable by Tenant under this Lease and
the performance by Tenant of Tenant’s obligations hereunder. In confirmation of
such subordination and recognition, Tenant shall execute and deliver promptly
such instruments of subordination and recognition (an “SNDA”) as such mortgagee
may reasonably request subject to receipt of such instruments of recognition
from such mortgagee as Tenant may reasonably request. The SNDA shall be in the
customary form required by such mortgagee as amended by such commercially
reasonable changes as Tenant may reasonably require. In the event that any
mortgagee or its respective successor in title shall succeed to the interest of
Landlord, then, this Lease shall nevertheless 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. If any holder of
a mortgage which includes the Premises, executed and recorded prior to the date
of this Lease, shall so elect, this Lease and the rights of Tenant hereunder,
shall be superior in right to the rights of such holder, with the same force
and effect as if this Lease had been executed, delivered and recorded, or a
statutory notice hereof recorded, prior to the execution, delivery and
recording of any such mortgage. The election of any such holder shall become
effective upon either notice from such holder to Tenant in the same fashion as notices
from Landlord to Tenant are to be given hereunder or by the recording in the
appropriate registry or recorder’s office of an instrument in which such holder
subordinates its rights under such mortgage to this Lease.

 

Landlord
hereby represents that as of the date of this Lease, there is no mortgage or
ground lease currently encumbering the Building or the Site.

 

101

 

8.16         Status Reports and Financial
Statements

 

Recognizing
that Landlord may find it necessary to establish to third parties, such as
accountants, banks, potential or existing mortgagees, potential purchasers or
the like, the then current status of performance hereunder, Tenant, on the
request of Landlord made from time to time, will within fifteen (15) business
days after such request furnish to Landlord, or any existing or potential
holder of any mortgage encumbering the Premises, the Building, and/or the Site
or any potential purchaser of the Premises, the Building, and/or the Site, (each
an “Interested Party”), a statement of the status of any matter pertaining to
this Lease, including, without limitation, acknowledgments (which may be
limited to Tenant’s actual knowledge), that (or the extent to which) each party
is in compliance with its obligations under the terms of this Lease. Any such
status statement  delivered by Tenant
pursuant to this Section 8.16 may be relied upon by any Interested Party.

 

In
addition, within fifteen (15) business days after Landlord’s request, Tenant
shall deliver to Landlord or any Interested Party designated by Landlord,
financial statements of Tenant and any guarantor of Tenant’s obligations  under this Lease, as reasonably requested
by Landlord, including, but not limited to annual audited financial statements
for the prior fiscal year to the extent available and maintained by Tenant,
except that so long as Tenant’s stock is publicly traded on a national exchange
(or publicly listed in an equivalent manner, such as on NASDAQ) that requires
its financial statements to be publicly disclosed, Tenant shall have no
obligation to deliver any financial statements to Landlord.  In the event that Tenant is not publicly
traded or listed as aforesaid, any audited financial statements delivered by
Tenant pursuant to this Section 8.16 may be relied upon (to the extent
commercially reasonable to do so) by any Interested Party.

 

Landlord
shall keep any non-public information provided by Tenant pursuant to this Section 8.16
confidential, and shall not disclose the same other than (i) to Landlord’s
officers, employees and consultants (or to any of the Interested Parties) or (ii) to
the extent required by applicable law or by any administrative, governmental or
judicial proceeding.

 

At
Tenant’s request, Landlord shall similarly within fifteen (15) business days
after Tenant’s request, furnish to Tenant a commercially reasonable statement
with similar types of information as set forth above, which statement may be
relied upon by any actual or prospective assignee, subtenant, lender or
purchaser of Tenant.

 

8.17         Self-Help

 

(A)          If Tenant shall at any time default in
the performance of any obligation under this Lease beyond any applicable notice
and cure period, Landlord shall have the right, but shall not be obligated,
after five (5) business days’ prior written notice of Landlord’s intention
to do so (except in the case of emergency in which case no notice shall be
required) to enter upon the Premises and to perform such obligation
notwithstanding the fact that no specific provision for such substituted
performance by Landlord is made in 

 

102

 

this
Lease with respect to such default. In performing such obligation, Landlord may
make any payment of money or perform any other act. All sums so paid by
Landlord (together with interest at the Default Rate (as defined in Section 8.22
below)) and all costs and expenses in connection with the performance of any
such act by Landlord shall be deemed to be Additional Rent under this Lease and
shall be payable to Landlord immediately on demand. Landlord may exercise the
foregoing rights without waiving any other of its rights or releasing Tenant
from any of its obligations under this Lease.

 

(B)           In the event that Landlord shall be
in default in the performance of any of Landlord’s obligations under this Lease
(with the exception of Landlord’s obligations to perform the Base Building Work
and the Base Building Enhancements under Article III above) beyond the
expiration of the applicable notice and cure periods provided in Section 7.2
above, then if Landlord or the holder of any such mortgage (at the option of
such mortgagee) fails to (i) commence to cure such default within the time
periods specified in said Section 7.2 and (ii) thereafter prosecute
such cure to completion with due diligence given the nature thereof, then
thereafter at any time prior to Landlord’s or such mortgagee’s commencing such
cure or subsequent to Landlord or such mortgagee commencing such cure if
Landlord or such mortgagee has not prosecuted such cure to completion with due
diligence given the nature of such cure, Tenant may, but need not (and without
limitation of any other rights and remedies to which Tenant may be entitled
under this Lease, at law or in equity on account of such default of Landlord),
perform such obligation and charge the reasonable cost thereof to Landlord;
provided, however, that in the case of emergency repairs (i) such notice
by Tenant to Landlord and such mortgagee need not be in writing, and (ii) Tenant
may make such emergency repairs and charge the reasonable cost thereof to
Landlord if either Landlord or such mortgagee has not made such emergency
repairs within a reasonable time after such notice. All sums so paid by Tenant
(together with interest at the Default Rate) and all costs and expenses in
connection with the performance of any such act by Tenant shall be payable to
Tenant immediately on demand. If Landlord fails to reimburse Tenant for the
sums paid by Tenant within thirty (30) days of Tenant’s demand therefor (such
demand to include reasonable evidence of the costs so incurred by Tenant), and
Landlord has not, within ten (10) business days of its receipt of Tenant’s
demand, given written notice to Tenant objecting to such demand and submitting
the same to arbitration under Section 8.31 below (or if Landlord has
timely disputed Tenant’s demand, has submitted such dispute to arbitration in
accordance with said Section 8.31 and has thereafter failed to pay Tenant
the amount of any final, unappealable arbitration award against Landlord within
thirty (30) days after the issuance thereof) then subject to the last sentence
of this paragraph, Tenant shall have the right to offset the amount of such
sums demanded by Tenant against the Annual Fixed Rent and Additional Rent
payable under this Lease until offset in full. Notwithstanding the foregoing,
Tenant shall have no right to reduce any monthly installment of Annual Fixed
Rent by more than ten percent (10%) of the amount of Annual Fixed Rent which
would otherwise have been due and payable by Tenant to Landlord, unless the
aggregate amount of such deductions over the remainder of the Lease Term (as
the same may have been extended) will be insufficient to fully reimburse Tenant
for the amount demanded by Tenant, in which event Tenant may effect such offset
by making deductions from each monthly installment of Annual Fixed Rent in 

 

103

 

equal
monthly amounts over the balance of the remainder of the Lease Term.

 

8.18         Holding Over

 

Any
holding over by Tenant after the expiration of the Term of this Lease shall be
treated as a tenancy at sufferance and shall be on the terms and conditions as
set forth in this Lease, as far as applicable except that Tenant shall pay as a
use and occupancy charge an amount equal to (A) for the first one hundred
eighty (180) days Tenant holds over after the expiration of the Term, the
greater of (x) 150% of the Annual Fixed Rent and Additional Rent
(calculated on a daily basis) at the rate payable under the terms of this Lease
during the previous twelve (12) months of the Term, and (y) the fair
market rental value of the Premises and (B) thereafter, the greater of (x) 200%
of the Annual Fixed Rent and Additional Rent (calculated on a daily basis) at
the highest rate payable under the terms of this Lease and (y) the fair
market rental value of the Premises, in each case for the period measured from
the day on which Tenant’s hold-over commences and terminating on the day on
which Tenant vacates the Premises. In addition, Tenant shall save Landlord, its
agents and employees harmless and will exonerate, defend and indemnify
Landlord, its agents and employees from and against any and all damages which
Landlord may suffer on account of Tenant’s hold-over in the Premises after the
expiration or prior termination of the Term of this Lease; provided, however,
that the foregoing indemnity shall not apply to any indirect or consequential
damages incurred by Landlord during the first sixty (60) days of any holding
over in the Premises by Tenant. Nothing in the foregoing nor any other term or
provision of this Lease shall be deemed to permit Tenant to retain possession
of the Premises or hold over in the Premises after the expiration or earlier
termination of the Lease Term. All property which remains in the Building or
the Premises after the expiration or termination of this Lease shall be
conclusively deemed to be abandoned and may either be retained by Landlord as
its property or sold or otherwise disposed of in such manner as Landlord may
see fit. If any part thereof shall be sold, then Landlord may receive the
proceeds of such sale and apply the same, at its option against the expenses of
the sale, the cost of moving and storage, any arrears of rent or other charges
payable hereunder by Tenant to Landlord and any damages to which Landlord may
be entitled under this Lease and at law and in equity.

 

8.19         Non-Subrogation

 

Any
insurance carried by either party with respect to the Premises 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 prior to 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 (or which would have been covered had such
party carried the insurance required to be carried by it under this Lease) to
the extent of the indemnification received under such insurance policy (or
which would have been received had such party carried the insurance required to
be carried by it under this Lease) and to the extent of any deductible
maintained by such party in excess of $25,000.00; provided, however, that the
waiver and release set forth in this Section 8.19 shall not apply to the
commercial general liability insurance required to be carried by the 

 

104

 

parties
under this Lease.  In addition, this
waiver of rights by the parties shall apply to, and be for the benefit of, the
Landlord Parties and the Tenant Parties, as applicable.

 

8.20                           Extension
Option

 

(A)          On the conditions (which conditions
Landlord may waive by written notice to Tenant) that both at the time of
exercise of the option to extend and as of the commencement of the Extended
Term in question (i) there exists no monetary or other material Event of
Default (defined in Section 7.1), (ii) this Lease is still in full
force and effect, and (iii) Tenant has not then sublet more than fifty
percent (50%) of the Rentable Floor Area of the Premises (except for a
subletting permitted without Landlord’s consent under Section 5.6.1 hereof
or any occupancy by Permitted Occupants), Tenant shall have the right to extend
the Term hereof upon all the same terms, conditions, covenants and agreements
herein contained (except for the Annual Fixed Rent which shall be adjusted
during the option periods as hereinbelow set forth) for two (2) periods of
five (5) years as hereinafter set forth. Each option period is sometimes
herein referred to as an “Extended Term.” Notwithstanding any implication to
the contrary, Landlord has no obligation to make any additional payment to
Tenant in respect of any construction allowance or the like or to perform any
work to the Premises as a result of the exercise by Tenant of any such option.

 

(B)           If Tenant desires to exercise the
applicable option to extend the Term, then Tenant shall give notice to Landlord
(the “Extension Exercise Notice”) not earlier than twenty-four (24) months
(except to the extent that delivery of an earlier Extension Exercise Notice is
required in order for Tenant to lease additional space at the Building or at
230 CityPoint for a term co-terminous with this Lease) nor later than fifteen
(15) months prior to the expiration of the Term (as it may have been previously
extended) exercising such option to extend. 
Within thirty (30) days after Landlord’s receipt of the Extension
Exercise Notice, Landlord shall provide Landlord’s quotation to Tenant of a
proposed Annual Fixed Rent for the applicable Extended Term (“Landlord’s Rent
Quotation”); provided, however, that if Tenant delivers the Extension Exercise
Notice to Landlord at any time prior to the date which is eighteen (18) months
prior to the expiration of the then-current Term, Landlord shall not be
required to provide Landlord’s Rent Quotation until that date which is
seventeen (17) months prior to the expiration of the then-current Term.  If at the expiration of thirty (30) days
after the date when Landlord provides such quotation to Tenant (the “Negotiation
Period”), Landlord and Tenant have not reached agreement on a determination of
an Annual Fixed Rent for such Extended Term and executed a written instrument
extending the Term of this Lease pursuant to such agreement, then Tenant shall
have the right, for a period of ten (10) business days after the
expiration of the Negotiation Period, (i) to deliver to Landlord a notice
(“Tenant’s Rescission Notice”) rescinding Tenant’s Extension Exercise Notice,
or (ii) to deliver to Landlord a request (“Broker Determination Request”)
for a broker determination of Annual Market Rent (the “Broker Determination”)
for such Extended Term, which Broker Determination shall be made in the manner
set forth in Exhibit H.  If Tenant
timely gives Tenant’s Rescission Notice, then Tenant’s Extension Exercise
Notice shall be of no further force and effect. 
If Tenant timely shall have requested the Broker Determination, then the
same shall constitute an agreement to extend the Term upon all 

 

105

 

of
the same terms and conditions in this Lease, except the Annual Fixed Rent for
such Extended Term shall be an amount equal to ninety-five percent (95%) of the
Annual Market Rent as determined by the Broker Determination.  If Tenant fails to timely give either a
Tenant’s Rescission Notice or a Broker Determination Request, Tenant shall be
deemed to have given a Tenant’s Rescission Notice.

 

(C)           Upon the giving of the Extension
Exercise Notice by Tenant to Landlord exercising Tenant’s applicable option to
extend the Lease Term in accordance with the provisions of Section 8.20(B) above,
but subject to Tenant’s right to give a Rescission Notice as set forth in Section 8.20(B) above,
then this Lease and the Lease Term hereof shall automatically be deemed
extended, for the applicable Extended Term, without the necessity for the
execution of any additional documents, except that Landlord and Tenant agree to
enter into an instrument in writing setting forth the Annual Fixed Rent for the
applicable Extended Term as determined in the relevant manner set forth in this
Section 8.20; and in such event all references herein to the Lease Term or
the Term of this Lease shall be construed as referring to the Term, as so
extended, unless the context clearly otherwise requires, and except that there
shall be no further option to extend the Lease Term beyond the second Extended
Term. Notwithstanding anything contained herein to the contrary, in no event
shall Tenant have the right to exercise more than one extension option at a
time and, further, Tenant shall not have the right to exercise its second
extension option unless it has duly exercised its first extension option and in
no event shall the Lease Term hereof be extended for more than ten (10) years
after the expiration of the Original Lease Term hereof.

 

(D)          Notwithstanding anything contained
herein to the contrary, Tenant shall have the right to exercise its
then-applicable option to extend the Lease Term with respect to less than the
entirety of the Premises then being leased by Tenant provided that (i) Tenant
in its Extension Exercise Notice designates the portions of the Premises
proposed to be surrendered by Tenant effective as of the commencement of the
applicable Extended Term (the “Surrendered Premises”), which such Surrendered
Premises must be comprised of then leased contiguous space on floors 2, 3, 4
and/or 6 of the Building (e.g., Tenant must surrender an entire floor or the
entire area on a floor partially leased by Tenant first, rather than the
equivalent square footage over a series of floors) and be in a commercially
rentable configuration (it being acknowledged and agreed that Tenant shall pay
all costs and expenses associated with subdividing and separately physically
demising the Surrendered Premises from the remainder of the Premises, if
necessary), (ii) Tenant must directly lease and occupy at least 75,000
square feet of rentable floor area both at the time it exercises its option to
extend and as of the commencement of the applicable Extended Term, and (iii) the
terms and provisions of this Section 8.20 shall remain unmodified and in
full force and effect with respect to those portions of the Premises not thus
surrendered by Tenant (the “Remaining Premises”). If Tenant shall exercise its
extension option with respect to less than the entirety of the Premises as set
forth herein, (x) Tenant shall vacate the Surrendered Premises leaving the
same in the condition required by this Lease upon the date which would have
been the expiration date of the then-current Lease Term (had Tenant not
exercised its option to extend with respect to the Remaining Premises), (y) the
Surrendered Premises shall be removed from 

 

106

 

the
Premises demised to Tenant under the Lease, (iii) the “Rentable Floor Area
of the Premises” shall be reduced by the Rentable Floor Area of the Surrendered
Premises and such reduced Rentable Floor Area of the Premises shall be used for
purposes of calculating Tenant’s payments for Annual Fixed Rent, electricity,
real estate taxes and operating costs from and after the commencement of the
applicable Extended Term. In addition, Landlord and Tenant agree to execute an
appropriate amendment to this Lease to reflect the removal of the Surrendered
Premises from the space demised from Landlord to Tenant under the Lease.

 

8.21                           Security
Deposit

 

(A)          Concurrently with the execution of
this Lease, Tenant shall pay to Landlord a security deposit (the “Security
Deposit”) in the amount of Nine Hundred Sixty-One Thousand Nine Hundred Eighty
and 25/100 Dollars ($961,980.25), in the form of a Letter of Credit. Landlord
shall hold the Security Deposit, throughout the Term of this Lease (including
the Extended Term, if applicable), as security for the performance by Tenant of
all obligations on the part of Tenant to be performed under this Lease. Such
deposit shall be in the form of an irrevocable, unconditional, negotiable
letter of credit (the “Letter of Credit”). The Letter of Credit shall (i) be
issued by and drawn on a bank reasonably approved by Landlord and at a minimum
having a corporate credit rating from Standard and Poor’s Professional Rating
Service of BBB- or a comparable minimum rating from Moody’s Professional Rating
Service, (ii) be substantially in the form attached hereto as Exhibit G,
(iii) permit one or more draws thereunder to be made accompanied only by
certification by Landlord or Landlord’s managing agent that pursuant to the
terms of this Lease, Landlord is entitled to draw upon such Letter of Credit, (iv) permit
transfers at any time without charge, and (v) provide that any notices to
Landlord be sent to the notice address provided for Landlord in this Lease. If
the credit rating for the issuer of such Letter of Credit falls below the
standard set forth in (i) above or if the financial condition of such
issuer changes in any other material adverse way, Landlord shall have the right
to require that Tenant provide a substitute letter of credit that complies in
all respects with the requirements of this Section, and Tenant’s failure to
provide the same within ten (10) days following Landlord’s written demand
therefor shall entitle Landlord to immediately draw upon the Letter of Credit.
Any such Letter of Credit shall be for a term of two (2) years (or for one
(1) year if the issuer thereof regularly and customarily only issues
letters of credit for a maximum term of one (1) year) and shall in either
case provide for automatic renewals through the date which is sixty (60) days
subsequent to the scheduled expiration of this Lease (as the same may be
extended) (the “LC Expiration Date”) or if the issuer will not grant automatic
renewals or will not grant them through the LC Expiration Date, the Letter of
Credit shall be renewed by Tenant each year or prior to the earlier expiration
date, as the case may be, and each such renewal shall be delivered to and
received by Landlord not later than thirty (30) days before the expiration of
the then current Letter of Credit (herein called a “Renewal Presentation Date”),
so that Landlord is holding a valid Letter of Credit through the LC Expiration
Date. In the event of a failure to so deliver any such renewal Letter of Credit
on or before the applicable Renewal Presentation Date, Landlord shall be
entitled to present the then existing Letter of Credit for payment and to
receive the proceeds thereof, which proceeds shall be held as Tenant’s security
deposit, subject to the terms of this 

 

107

 

Section 8.21.
Any failure or refusal to honor the Letter of Credit shall be at Tenant’s sole
risk and shall not relieve Tenant of its obligation hereunder with regard to
the security deposit. Upon the occurrence of any Event of Default, Landlord
shall have the right from time to time without prejudice to any other remedy
Landlord may have on account thereof, to draw on all or any portion of such
deposit held as a Letter of Credit and to apply the proceeds of such Letter of
Credit or any cash held as such deposit, or any part thereof, to Landlord’s
damages arising from such Event of Default on the part of Tenant under the
terms of this Lease. If Landlord so applies all or any portion of such deposit,
Tenant shall within seven (7) days after notice from Landlord deposit cash
with Landlord in an amount sufficient to restore such deposit to the full
amount stated in this Section 8.21. While Landlord holds any cash deposit
Landlord shall have no obligation to pay interest on the same and shall have
the right to commingle the same with Landlord’s other funds. Neither the holder
of a mortgage nor the Landlord in a ground lease on property which includes the
Premises shall ever 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
or ground Landlord.

 

In
the event of any sale, transfer or leasing of Landlord’s interest in the
Building, Landlord shall transfer the Letter of Credit (or shall either
transfer, or otherwise take an adjustment at closing for, any cash security
deposit then being held by Landlord) to the purchaser, transferee or lessee
and, upon such transfer of the Letter of Credit (or transfer or closing
adjustment for cash security deposit, if any), Landlord shall thereupon be
released by Tenant from all liability for the return thereof and Tenant shall
look solely to the new landlord for the return of the same.

 

(B)           Tenant not then being in default and
having performed all of its obligations under this Lease, including the payment
of all Annual Fixed Rent, Landlord shall return the deposit, or so much thereof
as shall not have theretofore been applied in accordance with the terms of this
Section 8.21, to Tenant on the expiration or earlier termination of the
Term of this Lease (as the same may have been extended) and surrender possession
of the Premises by Tenant to Landlord in the condition required in the Lease at
such time.

 

8.22                           Late Payment

 

If
Landlord shall not have received any payment or installment of Annual Fixed
Rent or Additional Rent (the “Outstanding Amount”) on or before the date the
same first becomes payable under this Lease (the “Due Date”), the amount of
such payment or installment shall incur a late charge equal to the sum of: (a) two
percent (2%) of the Outstanding Amount for administration and bookkeeping costs
associated with the late payment and (b) interest on the Outstanding
Amount from the Due Date through and including the date such payment or
installment is received by Landlord, at a rate (the “Default Interest Rate”)
equal to the lesser of (i) the rate announced by Bank of America, N.A. (or
its successor) from time to time as its prime or base rate (or if such rate is
no longer available, a comparable rate reasonably selected by Landlord), plus
two percent (2%), or (ii) the maximum applicable legal rate, if any. Such
interest shall be deemed Additional Rent and shall be paid by Tenant to
Landlord upon demand.

 

108

 

Landlord
agrees to waive the late charge due hereunder for the first late payment by
Tenant under this Lease per calendar year, provided that Landlord receives such
payment from Tenant within five (5) business days from the Due Date.

 

8.23         Tenant’s Payments

 

Each
and every payment and expenditure, other than Annual Fixed Rent, shall be
deemed to be Additional Rent or additional rent hereunder, whether or not the
provisions requiring payment of such amounts specifically so state, and shall
be payable, unless otherwise provided in this Lease, within ten (10) days
after written demand by Landlord, and in the case of the non-payment of any
such amount, Landlord shall have, in addition to all of its other rights and
remedies, all the rights and remedies available to Landlord hereunder or by law
in the case of non-payment of Annual Fixed Rent. Unless expressly otherwise
provided in this Lease, the performance and observance by Tenant of all the
terms, covenants and conditions of this Lease to be performed and observed by
Tenant shall be at Tenant’s sole cost and expense. Except as otherwise provided
in Section 2.6.1 above, if Tenant has not objected to any statement of
Additional Rent which is rendered by Landlord to Tenant within one hundred
twenty (120) days after Landlord has rendered the same to Tenant, then the same
shall be deemed to be a final account between Landlord and Tenant not subject
to any further dispute.

 

8.24         Waiver of Trial By Jury

 

To
induce the other party to enter into this Lease, each party hereby waives any
right to trial by jury in any action, proceeding or counterclaim brought by either
Landlord or Tenant on any matters whatsoever arising out of or any way
connected with this Lease, the relationship of the Landlord and the Tenant, the
Tenant’s use or occupancy of the Premises and/or any claim of injury or damage,
including but not limited to, any summary process eviction action.

 

8.25         Governing Law

 

This
Lease shall be governed exclusively by the provisions hereof and by the law of
the Commonwealth of Massachusetts, as the same may from time to time exist.

 

8.26         Tenant’s Equipment

 

Tenant
shall be permitted, at its sole cost and expense, to install (x) equipment
for telecommunications, data transmission and other similar technologies (the “Telecommunications
Equipment”) and (y) equipment for the Premises’ additional or
supplementary HVAC system, fans, and other equipment reasonably necessary for
Tenant’s use and occupancy of the Premises (the “HVAC Equipment” and
collectively with the Telecommunications Equipment, the “Tenant’s Equipment”)
in a location or locations on the Site. The Telecommunications Equipment may be
located on the rooftop of the Building in a location to be mutually agreed upon
by Landlord and Tenant in good faith and in their reasonable discretion.
Landlord will determine whether or not the 

 

109

 

HVAC
Equipment may also be located on the rooftop of the Building at such time as
Landlord reviews the specifications therefor as contemplated by this Section 8.26.
The exact specifications of the Tenant’s Equipment, and the method of
installing the Tenant’s Equipment, shall be subject to Landlord’s prior written
approval, which shall not be unreasonably withheld or delayed. Tenant and
Tenant’s contractors shall have reasonable access to the roof in order to
inspect, service, repair, maintain and replace any Tenant’s Equipment located
thereon, subject to Landlord’s reasonable rules and regulations of which
Tenant has been given prior notice relative to the access to and use of the
rooftop. Tenant shall use Landlord’s roof contractor for the installation of
flashing for any rooftop penetrations necessary for the placement of the Tenant’s
Equipment on the rooftop of the Building.

 

Tenant’s
use of the Tenant’s Equipment shall be upon all of the conditions of the Lease,
except as modified below:

 

(a)           It is
understood and agreed that Tenant shall be responsible, at its sole cost and
expense, for installing all necessary connections (the “Connections”) between
the Tenant’s Equipment and the Premises. In addition to complying with the
applicable construction provisions of this Lease, Tenant shall not install or
operate the Connections in any portion of the Building until (x) Tenant
shall have obtained Landlord’s prior written approval, which approval will not
be unreasonably withheld or delayed, of Tenant’s plans and specifications for
the placement and installation of the Connections, and (y) Tenant shall
have obtained and delivered to Landlord copies of all required governmental and
quasi-governmental permits, approvals, licenses and authorizations necessary
for the lawful installation, operation and maintenance of the Connections.
Landlord shall inform Tenant at the time of its review of the Connections
whether Landlord will require the same to be removed by Tenant upon the
expiration or earlier termination of this Lease.

 

(b)           Tenant shall
have no obligation to pay Annual Fixed Rent, Tax Excess or Operating Expense
Excess in respect of the Tenant’s Equipment or the Connections provided that
the same are used solely to provide service to Tenant’s business operations in
the Premises (as opposed to being utilized by the telecommunications carrier to
provide service to other tenants of the Building and/or the CityPoint Project).

 

(c)           Except as
otherwise set forth in this Lease, Landlord shall have no liability to Tenant
for the installation and subsequent operation of the Tenant’s Equipment. To the
extent Landlord grants other third parties the right to install equipment on
the roof of the Building, any agreement with a third party granting the right
to install telecommunications equipment subsequent to the date of this Lease
shall contain language prohibiting interference with Tenant’s Equipment then
existing and shall provide Landlord with a termination right if such
interference is not remedied after a reasonable period of time. If measurable
interference shall occur, Tenant shall provide notice thereof to Landlord and
Landlord shall use reasonable

 

110

 

efforts to cause the same to be remedied, however, if despite such
efforts the same are not remedied within a period reasonably necessary to cure
such interference, Landlord shall exercise the termination right set forth in
its agreement with such interfering party.

 

(d)           Landlord shall have no
obligation to provide any services to the Tenant’s Equipment, provided,
however, Tenant shall have the right to access telephone/data closets and
shafts and conduits in the Building, plenum areas and other pathways in the
Building, in order to connect the Tenant’s Equipment to the Premises, and
Tenant shall have the right to connect Tenant’s Equipment to existing base
building utility systems, subject to Landlord’s right to reasonably approve
such connections and to Landlord’s reasonable rules and regulations of
which Tenant has been given prior notice relative to the access to and the use
of such areas within the Building. Tenant shall, at its sole cost and expense
and otherwise in accordance with the provisions of this Section 8.26,
arrange for all utility services required for the operation of the Tenant’s
Equipment.

 

(e)           Tenant shall, at its sole
cost and expense, be solely responsible for all maintenance and repair to the
Tenant’s Equipment and the Connections.

 

(f)            Tenant shall have no right
to make any changes, alterations, signs, or other improvements to the Tenant’s
Equipment or the Connections without Landlord’s prior written consent, which
consent shall not be unreasonably withheld or delayed.

 

(g)           Tenant shall be responsible
for the cost of repairing any damage to the Building or the Property caused by
its use of the Tenant’s Equipment and the Connections or any work related
thereto.

 

(h)           Except for assignees of this
Lease or subtenants of all or a portion of the Premises, no other person, firm
or entity (including, without limitation, other tenants, licensees or occupants
of the Building) shall have the right to connect to the Tenant’s Equipment
other than Tenant.

 

(i)            To the maximum extent
permitted by law, Tenant’s use of the Tenant’s Equipment and the Connections
shall be at the sole risk of Tenant, and Landlord shall have no liability to
Tenant in the event that the Tenant’s Equipment and the Connections are damaged
for any reason, except to the extent arising from the negligence or willful
misconduct of Landlord or its agents, employees or contractors.

 

(j)            Tenant shall comply with all
applicable laws, ordinances and regulations in Tenant’s use of the Tenant’s
Equipment and the Connections.

 

(k)           The Tenant’s Equipment and the Connections shall not
interfere with the maintenance, use, occupancy or operation of the Building by
Landlord or any

 

111

 

other
tenant, occupant or licensee of the Building, including, without limitation,
interference with any communications equipment, telephones, radios, CATV, MATV,
televisions, HVAC systems, elevators or computers currently in place or
hereafter installed in connection with the Building. In the event any such interference
is not cured by Tenant within thirty (30) days after written notice thereof
from Landlord to Tenant, Landlord shall have the right to require Tenant to
relocate or remove the Tenant’s Equipment causing such disturbance.

 

(l)            Landlord shall have the right,
upon no less than ninety (90) days’ notice to Tenant and at Landlord’s sole
cost and expense, to relocate the Tenant’s and the Connections to another
location on the roof of the Building reasonably acceptable to Tenant provided
that such relocation does not adversely affect Tenant’s use of Tenant’s
Equipment and Landlord makes temporary arrangements for Tenant’s Equipment to
continue to operate during such relocation. Landlord and Tenant shall cooperate
with each other in good faith to schedule such relocation work on nights and
weekends so as to minimize interference with Tenant’s business operations. Any
such relocation by Landlord shall not independently (in the absence of another
cause) be deemed to constitute a service interruption under Section 4.2
above.

 

(m)          In addition to the
indemnification provisions set forth in this Lease which shall be applicable to
the Tenant’s Equipment and the Connections, Tenant shall, to the maximum extent
permitted by law, indemnify, defend, and hold Landlord, its agents, contractors
and employees harmless from any and all claims, losses, demands, actions or
causes of actions suffered by any person, firm, corporation, or other entity
arising from Tenant’s use of the Tenant’s Equipment and the Connections.

 

(n)           Landlord shall have the
right to designate or identify the Tenant’s Equipment and any related
components or conduits with or by a lease or license number (or other marking)
and to place such number (or marking) on or near such Tenant’s Equipment.

 

(o)           It is expressly understood
and agreed that the Tenant’s Equipment shall remain the property of Tenant and
that Tenant shall be required to remove the same upon the expiration or earlier
termination of this Lease and to repair any damage caused by the installation
or removal of the Tenant’s Equipment.

 

Landlord
shall use commercially reasonable efforts to insure that the placement and
operation of other telecommunications equipment on the rooftop of the Building
does not interfere with the use and operation by Tenant of the Tenant’s
Equipment and the Connections and shall impose and enforce upon other tenants
or occupants of the Building installing telecommunications equipment on the
roof requirements similar to those contained in subsection (k) above;
provided, however, that Landlord shall not be liable to Tenant if any such
interference actually occurs, so long as Landlord is using commercially
reasonable efforts as aforesaid.

 

112

 

8.27         Building
Amenities

 

(A)          Landlord shall, as part of
the Base Building Work, initially construct, fixture and furnish a conference
center, full-service cafeteria serving breakfast and lunch (to be operated by
Rebecca’s or an operator of similar quality) and a building fitness center with
full men’s and women’s locker rooms, restrooms and showers (each an “Amenity”
and collectively, the “Amenities”), and Tenant shall have the right to use such
Amenities, free of charge, in common with other tenants of the Building
entitled to use thereof throughout the Term hereof.  The finishes and equipment for the fitness
facility will be of similar quality to other fitness centers built and managed
by Boston Properties in its other suburban assets (i.e. 230 CityPoint,
Waltham-Weston Corporate Center). Landlord shall institute and administer a
scheduling procedure for use of the conference center by tenants in the
Building.  During the Term, Landlord
shall repair, maintain, insure and clean the Amenities consistent the level of
repair, maintenance, insurance and cleaning of similar amenities in other first
class multi-tenant office buildings in the Market Area.

 

(B)           So long as Tenant directly
leases and occupies at least 100,000 square feet of rentable floor area in the
Building, Landlord shall consult with Tenant in good faith regarding the
initial selection of, as well as the ongoing contract with, the cafeteria
operator; provided, however, that the final decision as to all matters
regarding the selection of and contract with such cafeteria operator shall be
made by Landlord in its reasonable discretion.

 

(C)           So long as Tenant directly
leases and occupies (together with its Permitted Occupants and approved and
permitted subtenants) at least sixty percent (60%) of the Total Rentable Floor
Area of the Building, Landlord shall not make any material changes to or
discontinue operation of the Amenities without Tenant’s prior written consent,
which consent shall be in Tenant’s reasonable discretion. Notwithstanding the
foregoing, so long as Tenant directly leases and occupies (together with its
Permitted Occupants and approved and permitted subtenants) at least 70,000
square feet of rentable floor area in the Building, Landlord shall not (i) change
and/or discontinue the Building fitness center or (ii) modify the food
service in the cafeteria so that it serves only pre-made foods, without Tenant’s
prior written consent, which consent shall be in Tenant’s reasonable
discretion.

 

(D)          Tenant shall have the right,
at its sole cost and expense and subject to Landlord’s reasonable approval as
to location and décor elements, to install, decorate and maintain a holiday
tree in the main lobby of the Building from the day after Thanksgiving through
New Year’s Day.

 

8.28         Emergency
Generator.

 

Tenant
shall be permitted, at its sole cost and expense, to install a gas-fired
emergency generator, not to exceed 154 inches long x 60 inches wide x 80 inches
tall in dimension and 8,000 pounds (the “Emergency Generator”) on the roof of
the Building, in the location described on Exhibit J attached to this
Lease and incorporated herein by

 

113

 

reference.
The exact specifications of the Emergency Generator, and the method of
installing the Emergency Generator on the roof, shall be subject to Landlord’s
prior written approval, which shall not be unreasonably withheld or delayed (it
being understood and agreed that Landlord’s approval of any Emergency Generator
that exceeds the specifications set forth above shall be in Landlord’s sole
discretion). Tenant and Tenant’s contractors shall have reasonable access to
the roof in order to inspect, service, repair, maintain and replace the
Emergency Generator, subject to Landlord’s reasonable rules and
regulations applicable to access to and use of the rooftop provided that Tenant
has been given prior notice thereof. 
Tenant shall use Landlord’s roof contractor for the installation of
flashing for rooftop penetrations necessary for the placement of the Emergency
Generator.

 

Tenant’s
use of the Emergency Generator shall be upon all of the conditions of the
Lease, except as modified below:

 

(a)                   It is
understood and agreed that Tenant shall be responsible, at its sole cost and
expense, for installing all necessary connections (the “Generator Connections”)
between the Emergency Generator and the Premises. In addition to complying with
the applicable construction provisions of this Lease, Tenant shall not install
or operate the Generator Connections in any portion of the Building until (x) Tenant
shall have obtained Landlord’s prior written approval, which approval will not
be unreasonably withheld or delayed, of Tenant’s plans and specifications for
the placement and installation of the Generator Connections, and (y) Tenant
shall have obtained and delivered to Landlord copies of all required
governmental and quasi-governmental permits, approvals, licenses and
authorizations necessary for the lawful installation, operation and maintenance
of the Generator Connections. Landlord shall inform Tenant at the time of its review
of the Generator Connections whether Landlord will require the same to be
removed by Tenant upon the expiration or earlier termination of this Lease.

 

(b)                   Tenant shall
have no obligation to pay Annual Fixed Rent, Tax Excess or Operating Expense
Excess in respect of the Emergency Generator or the Generator Connections.

 

(c)                   The Emergency
Generator shall be used solely to provide back-up power in the event of an
outage for Tenant’s lights and plugs and business equipment in the Premises and
dedicated heating, ventilation and air conditioning systems serving the
Premises, but not for the purposes of running any life-safety systems or
equipment (it being understood and agreed that such dedicated HVAC systems may
not function during such an outage, even if connected to the Emergency
Generator, to the extent that the base building systems are not functioning).

 

(d)                   Landlord shall
have no liability to Tenant for the installation and

 

114

 

subsequent operation of the
Emergency Generator.

 

(e)                   Landlord shall
have no obligation to provide any services to the Emergency Generator;
provided, however, Tenant shall have the right to access shafts and conduits in
the Building plenum areas, and other pathways in the Building, in order to
connect the Emergency Generator to the Premises, subject to Landlord’s right to
reasonably approve such connections and subject to Landlord’s reasonable rules and
regulations applicable to access to and use of such areas provided that Tenant has
been given prior notice thereof.  Tenant
shall, at its sole cost and expense and otherwise in accordance with the
provisions of this Section 8.28, arrange for all utility services required
for the operation of the Emergency Generator.

 

(f)                    Tenant shall,
at its sole cost and expense, be solely responsible for all maintenance and
repair to the Emergency Generator and the Generator Connections. In connection
therewith, Tenant shall provide Landlord with evidence on an annual basis of
the existence of a maintenance contract for the Emergency Generator with a
service provider reasonably acceptable to Landlord.

 

(g)                   Tenant shall
have no right to make any changes, alterations, signs, or other improvements to
the Emergency Generator or the Generator Connections without Landlord’s prior
written consent, which consent shall not be unreasonably withheld or delayed.

 

(h)                   Tenant shall be
responsible for the cost of repairing any damage to the Building or the
Property caused by its use of the Emergency Generator and the Generator
Connections or any work related thereto.

 

(i)                    Except for
assignees of this Lease or subtenants of all or a portion of the Premises, no
other person, firm or entity (including, without limitation, other tenants,
licensees or occupants of the Building) shall have the right to connect to the
Emergency Generator other than Tenant.

 

(j)                    To the maximum
extent permitted by law, Tenant’s use of the Emergency Generator and the
Generator Connections shall be at the sole risk of Tenant, and Landlord shall have
no liability to Tenant in the event that the Emergency Generator or the
Generator Connections are damaged for any reason, except to the extent arising
from the negligence or willful misconduct of Landlord or its agents, employees
or contractors.

 

(k)                   Tenant shall
comply with all applicable laws, ordinances and regulations in Tenant’s use of
the Emergency Generator and the Generator Connections.

 

115

 

(l)                    Landlord shall
have the right, upon no less than ninety (90) days’ notice to Tenant and at
Landlord’s sole cost and expense, to relocate the Emergency Generator and the
Generator Connections to another area within the Property reasonably acceptable
to Tenant and provided such relocation does not adversely affect Tenant’s use
of the Emergency Generator and Landlord makes temporary arrangements for the
Emergency Generator to continue to operate during such relocation.  Landlord and Tenant shall cooperate with each
other in good faith to schedule such relocation work on nights and weekends so
as to minimize interference with Tenant’s business operations. Any such
relocation by Landlord shall not independently (in the absence of another
cause) be deemed to constitute a service interruption under Section 4.2
above.

 

(m)                  In addition to
the indemnification provisions set forth in this Lease which shall be
applicable to the Emergency Generator and the Generator Connections, Tenant
shall, to the maximum extent permitted by law, indemnify, defend, and hold
Landlord, its agents, contractors and employees harmless from any and all
claims, losses, demands, actions or causes of actions suffered by any person,
firm, corporation, or other entity arising from Tenant’s use of the Emergency
Generator and the Generator Connections.

 

(n)                   Landlord shall
have the right to designate or identify the Emergency Generator and any related
components or conduits with or by a lease or license number (or other marking)
and to place such number (or marking) on or near such Emergency Generator.

 

(o)                   It is expressly
understood and agreed that the Emergency Generator shall remain the property of
Tenant and that Tenant shall be required to remove the same upon the expiration
or earlier termination of this Lease and to repair any damage caused by the
installation or removal of the Emergency Generator.

 

8.29         Neighborhood Utilities and Telecommunications Lines

 

Landlord
shall use commercially reasonable efforts to cause the existing overhead
utility and telecommunications wires located on Fourth Avenue adjacent to the
Site to be placed underground in a manner consistent with the image of the
Building as a first-class office building. All costs related to design,
obtaining necessary permits and approval and installation of the duct work
below grade shall be borne by Landlord (or other third parties, as appropriate)
and shall not be deemed to be part of Landlord’s Operating Expenses under Section 2.6
above.

 

Notwithstanding
the foregoing, it is understood and agreed that Landlord’s inability to cause
the overhead wires to be placed underground shall not constitute a default by
Landlord under this Lease, provided that Landlord has used commercially
reasonable

 

116

 

efforts
as aforesaid. In connection with (but not in limitation of) the foregoing,
Tenant acknowledges that the decision as to whether or not to place the
overhead wires underground will be made largely by municipal authorities and
third parties such as abutting landowners and utility and telecommunications
companies, over whom Landlord has no control. Landlord shall not be deemed to
have failed to use commercially reasonable efforts for the purposes of this Section 8.29
in the event that such municipal authorities and/or third parties refuse to
grant the necessary permits and approvals or impose unreasonable conditions
that make the relocation of the overhead wires commercially impractical or
unfeasible.

 

8.30         Waiver of
Landlord’s Lien

 

From
time to time upon Tenant’s reasonable written request, Landlord agrees to
furnish Tenant or any vendor or other supplier under any conditional sale,
chattel mortgage or other security arrangement, any consignor, any holder of
reserved title or any holder of a security interest, with a waiver of Landlord’s
lien upon Tenant’s trade fixtures, furnishings, signs, equipment, machinery,
inventory and personal property in or on the Premises.

 

8.31         Arbitration

 

Any
disputes (i) under Section 2.6.1 above as to whether Tenant has
overpaid or underpaid Operating Expenses Allocable to the Premises, Landlord’s
Tax Expenses Allocable to the Premises, and/or Tenant’s Electricity Payments
relating to matters in excess of Fifty Thousand and 00/100 Dollars ($50,000.00)
and/or (ii) under Section 8.17(B) above as to whether Landlord
is required to reimburse Tenant for costs incurred by Tenant in connection with
the exercise of its self-help rights and/or (iii) under Section 8.27
above as to whether or not Tenant was acting reasonably in withholding its
consent to a proposed change in or discontinuance of any of the Amenities shall
be submitted to arbitration in accordance with the provisions of applicable
Massachusetts state law, as from time to time amended. Arbitration proceedings,
including the selection of an arbitrator, shall be conducted pursuant to the
rules, regulations and procedures from time to time in effect as promulgated by
the American Arbitration Association. Prior written notice of application by
either party for arbitration shall be given to the other at least ten (10) days
before submission of the application to the said Association’s office in
Boston, Massachusetts. Any award of an arbitrator rendered hereunder shall be
subject to confirmation and entry of judgment thereon in any court of competent
jurisdiction sitting in Suffolk or Middlesex Counties, Massachusetts, and the
parties hereby consent to the jurisdiction of such court. The costs and
administration expenses of each arbitration hereunder and their apportionment
between the parties shall be borne equally by the parties, and each party shall
be responsible for its own attorneys’ fees and expert witness fees. In
connection with the foregoing, it is expressly understood and agreed that the
parties shall continue to perform their respective obligations under this Lease
during the pending of any such arbitration proceeding hereunder (with any
adjustments or reallocations to be made on account of such continued
performance as determined by the arbitrator in his or her award).

 

117

 

EXECUTED
as a sealed instrument in two or more counterparts each of which shall be
deemed to be an original.

 

	
  WITNESS:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
  /s/ Madeleine C. Timin

  	
   

  	
  BP FOURTH AVENUE, L.L.C.,

  
	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Boston Properties Limited Partnership,

  
	
   

  	
   

  	
   

  	
  its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Boston Properties, Inc.

  
	
   

  	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ David C. Provost

  
	
   

  	
   

  	
   

  	
  Name:

  	
   David C. Provost

  
	
   

  	
   

  	
   

  	
  Title:

  	
   Senior Vice President,
  Leasing

  
								

 

 

	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
  PHASE FORWARD, INC., 

  
	
   

  	
   

  	
  a Delaware corporation

  
	
  By:

  	
   /s/ Ari Buchler

  	
   

  	
   

  
	
  Name:

  	
   Ari Buchler

  	
   

  	
  By:

  	
   /s/ Rodger Weismann

  
	
  Title:

  	
   Secretary

  	
   

  	
  Name:

  	
   Rodger Weismann

  
	
   

  	
   

  	
  Title:

  	
   Senior Vice President and
  Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   Hereto duly authorized

  

 

118

 

EXHIBIT A

 

DESCRIPTION OF SITE

 

77
Fourth Avenue (Parcel 20)

 

A
certain parcel of land located in the City of Waltham, in the County of
Middlesex and the Commonwealth of Massachusetts bounded and described as
follows;

 

Beginning
at a point on the westerly line of Fourth Avenue marked by a stone bound and
being the northeastern corner of the parcel described; thence

 

	
  S
  23° 46'59" W

  	
   

  	
  a
  distance of three hundred thirty-eight and twenty-three hundredths feet (338.23') by the westerly line of Fourth
  Avenue to a point; thence

  
	
   

  	
   

  	
   

  
	
  Southwesterly

  	
   

  	
  and
  curving to the right along the arc of a curve having a radius of  sixteen and no hundredths feet (16.00'), a length of sixteen and
  sixty- three hundredths feet (16.63')  by the westerly line of Fourth
  Avenue to a point; thence

  
	
   

  	
   

  	
   

  
	
  Southwesterly

  	
   

  	
  and
  curving to the left along the arc of a curve having a radius of sixty and no
  hundredths feet (60.00'), a length of seventy-eight and fifty-six hundredths
  feet (78.56') by the westerly line of Fourth Avenue to a point; thence

  
	
   

  	
   

  	
   

  
	
  S 40° 11' 12" W

  	
   

  	
  a distance of fifty-eight and forty-three hundredths feet (58.43') to
  a point; thence

  
	
   

  	
   

  	
   

  
	
  Southwesterly

  	
   

  	
  and curving to the left along the arc of a curve having a radius of
  two hundred ten and no hundredths feet
  (210.00"), a length of one hundred fifty and seventy-nine
  hundredths feet (150.79') to a point; thence

  
	
   

  	
   

  	
   

  
	
  S
  10° 01'24" W

  	
   

  	
  a
  distance of three hundred thirty-eight and thirty hundredths feet (338.30')
  to a point; thence

  
	
   

  	
   

  	
   

  
	
  N 79° 58'36" W

  	
   

  	
  a distance of thirty-five and ninety-four hundredths feet (35.94') to
  a point, thence

  
	
   

  	
   

  	
   

  
	
  N 05° 49'41" E

  	
   

  	
  a distance of three hundred seventy and eighty-four hundredths feet
  (370.84') to a point; thence

  
	
   

  	
   

  	
   

  
	
  Northeasterly

  	
   

  	
  and
  curving to the left along the arc of a curve having a radius of  seven hundred
  twenty-five and no hundredths feet (725.00'), a length of one hundred and eighty-seven hundredths feet
  (100.87') to a point; thence

  

 

 

	
  N
  02° 08'36" W

  	
   

  	
  a
  distance of one hundred thiry-nine and forty-four hundredths feet (139.44')
  to a point; thence

  
	
   

  	
   

  	
   

  
	
  Northeasterly

  	
   

  	
  and
  curving to the right along the arc of a curve having a radius of seven
  hundred twenty-five and no hundredths feet (725.00'), a length of one hundred
  forty-four and fifty-two hundredths feet (144.52') to a point; thence

  
	
   

  	
   

  	
   

  
	
  Northeasterly

  	
   

  	
  and
  curving to the left along the arc of a curve having a radius of seven hundred
  seventy five and no hundredths feet (775.00'), a length of one hundred
  thirteen and forty six hundredths feet (113.46') to a point; thence

  
	
   

  	
   

  	
   

  
	
  N
  00° 53'22" E

  	
   

  	
  a
  distance of two hundred eight and eighty-four hundredths feet (208.84') to a
  point; thence

  
	
   

  	
   

  	
   

  
	
  Northeasterly

  	
   

  	
  and
  curving to the right along the arc of a curve having a radius of fifteen and
  no hundredths feet (15.00'), a length of thirty and thiry-five hundredths
  feet (30.35') to a point; thence

  
	
   

  	
   

  	
   

  
	
  S
  63° 09'49" E

  	
   

  	
  a
  distance of three hundred forty-two and sixty-nine hundredths feet (342.69')
  by the southerly line of Fourth Avenue to a point; thence

  
	
   

  	
   

  	
   

  
	
  Southeasterly

  	
   

  	
  and
  curving to the right along the arc of a curve having a radius of fifty and no
  hundredths feet (50.00'), a length of seventy-five and eighty-eight
  hundredths fee (75.88') by the southerly line of Fourth Avenue to the point
  of beginning.

  

 

 

Shown
as Parcel 20 on a plan entitled “Plan of Land in Waltham, Massachusetts” dated
February 28, 2000, prepared by Vanasse Hangen Brustlin, Inc., recorded with
Middlesex South Registry of Deeds as Plan No. 628 of 2000, and containing
186,733 square feet or 4.287 acres of land according to said Plan.

 

 

 

 

EXHIBIT B-1

 

BASE BUILDING PLANS AND SPECIFICATIONS

 

1.             PROJECT DESCRIPTION

 

A
seven (7) story first class office building with structured parking
garage.

 

2.             FOUNDATIONS

 

The
structure will be supported on a foundation of concrete spread footings with
concrete foundation walls.

 

3.             STRUCTURE

 

A.            The structure will be
designed in accordance with the following live loads:

 

1.             Wind and seismic load in
accordance with State Building Code.

 

2.             Floor live load 100 lbs. (including
partitions).

 

3.             Mechanical equipment rooms –
actual weight of equipment.

 

4.             Roof – 35 lbs. per square
foot minimum and in accordance with governing building codes, plus allowances
for specific drifting and equipment loads.

 

B.            The structure will consist
of steel frame with a braced frame and composite steel and concrete floor; with
substantially column free floors from core to perimeter wall.  Floor to floor heights will allow for a
typical suspended ceiling height in the office areas of 9’0” A.F.F.

 

C.            Structure will be
fireproofed where required by the Building Code.  Structural assemblies requiring fireproofing
will be sprayed with a  fireproofing
system as provided by W. R. Grace & Co. or equal.

 

D.            Fire exit stairs will be
standard steel pan stair assemblies with painted steel handrails and concrete
fill.

 

E.             Miscellaneous iron items
(canopy framing, elevator sill angles, ladders, railings, loose lintels,
expansion plates, toilet partition support frames, etc.) will be provided as
needed.

 

1

 

4.             ROOFING AND WATERPROOFING

 

A.            The roofing system will be
one of the following; a mechanically fastened, heat welded thermoplastic system
such as manufactured by Sarnofil Roofing Systems, Inc., or an EPDM roof.

 

B.            Roof insulation will be
rigid fiberglass board, applied with staggered joints conforming to
requirements of the State Energy Code and acceptable for use with the system
specified.

 

C.            Compatible roof walkway pads
shall be provided for equipment access and servicing.

 

5.             EXTERIOR WALLS

 

A.            The exterior wall system
will consist of a combination of the following; aluminum curtain wall, metal
panels, precast concrete and stone.

 

B.            Exterior entrance doors will
be similar in construction to building window systems.

 

C.            Exterior wall system to be
designed in accordance with the Building Code.

 

6.             INTERIOR FINISHES

 

A.            Main Lobby

 

	
  Floors:

  	
   

  	
  Granite flooring as
  dictated by the design.

  
	
   

  	
   

  	
   

  
	
  Walls:

  	
   

  	
  Feature
  walls will be a combination of stone and wood panels accented with veneer
  plaster.

  
	
   

  	
   

  	
   

  
	
  Ceilings:

  	
   

  	
  A
  combination of gypsum board and 4’x4’ ceilings panels.

  

 

B.            Toilet Rooms

 

	
  Floors:

  	
   

  	
  Thin
  set ceramic tile. Carpet in vestibules, Granite thresholds at door openings.

  
	
   

  	
   

  	
   

  
	
  Walls:

  	
   

  	
  7’
  high ceramic tile on wet walls. Painted drywall on other walls.

  
	
   

  	
   

  	
   

  
	
  Ceilings:

  	
   

  	
  Acoustical
  ceiling tile.

  
	
   

  	
   

  	
   

  
	
  Lavatory
  Counters:

  	
   

  	
  Granite
  or other solid surface material with under-mount china lavatories.

  

 

2

 

C.            Interior side
of exterior walls below the finished ceiling will be finished with 5/8” drywall
or exposed foil-faced insulation above 9’. 
Windowsills will be plastic laminate.

 

D.            Exit stair
treads and landings will be sealed concrete. 
Stairwell walls will be painted drywall.

 

E.             Door frames
will be 16 gage hollow metal.  Doors will
be 18 gauge, flush, 1-3/4” thick hollow metal at all areas.  All doors and hardware shall comply with
regulations of the Architectural Access Board.

 

F.             Interior core
drywall surfaces will be 5/8” drywall prepared to receive one coat of primer
and one coat of latex satin eggshell paint. 
Interior hollow metal surfaces will receive one coat of primer and two
coats of semi-gloss enamel. 
Architectural woodwork and wood doors will receive a sealer and clear
polyurethane finish.

 

7.             SPECIALTIES AND EQUIPMENT

 

A.            A uniform building graphics
system, consisting of a building identification sign and a building directory
will be provided.

 

B.            Metal toilet enclosures will
be ceiling mounted and of steel panel construction with baked enamel
finish.  Toilet enclosures will be
similar or equal to those manufactured by Accurate Partitions.

 

C.            Toilet room accessories will
be similar or equal to those manufactured by Bobrick Company, all in accordance
with regulations of Architectural Access Board.

 

D.            All exterior windows will be
equipped with solid horizontal blinds.

 

8.             VERTICAL TRANSPORTATION

 

Elevators
in the office area will be geared, 3,500# cars with a speed of 350 fpm.  Elevator Cab Finishes: Stone border and base
with carpet inset, wood paneling with stainless steel trim to match elevator
doors and control panel. Metal ceiling canopy with recessed accent lighting.

 

9.             PLUMBING

 

A.            Domestic water
system will be supplied by metered service from a public water main, with
operating pressure augmented by pressure boosting equipment, if required.  Water piping will be Type L copper tubing;
hot water piping will be insulated. 
Electric domestic water heaters serving 1 to 6 floors with a
recirculation system will be provided for toilet room hot water.

 

Water
heaters shall be UL approved and have ASME approved storage tank

 

3

 

where
required by local code.

 

B.            Sanitary system will drain
to public sewer, and will serve all fixtures and equipment.  Sanitary piping will be no hub cast iron or
galvanized steel.  Stubouts for tenant
plumbing requirements will be provided on two opposite sides of the core area.

 

C.            Storm water drainage system
will serve all roofs, areaways and plazas, and will drain through concealed
pipes into city storm water system. 
Storm water drainage piping will be service weight, no hub cast iron or
galvanized steel; horizontal runs will be insulated.

 

D.            Plumbing
fixtures will be as manufactured by American Standard, Kohler, Crane, or
equal.  Water closets to be wall-carrier
mounted.

 

E.             The building will have one
water cooler per floor, specified for lead-free fabrication, compliant with ADA
accessibility guidelines (Hi lo fountain).

 

F.             Frost-free hose bibs will be
provided as required for exterior maintenance.

 

10.           FIRE PROTECTION SYSTEM

 

A.            Fire standpipes will be
supplied from a public water main with operating pressure augmented by pressure
boosting equipment, if required. 
Standpipes will be cross connected with siamese connections and hose
bibs for Fire Department use only. 
Piping larger than 2” dia will be Schedule 10 black steel pipe, piping 2”
dia or less will be treaded schedule 40 black steel; riser piping shall be
schedule 40 black steel pipe; all piping, valves and equipment will be
Underwriters’ Laboratories approved and labeled.  Temper switches will be provided on all main
control valves.  All hose outlet threads
and connections will conform to local Fire Department criteria.

 

B.            Automatic sprinkler system
will be supplied from a public water main with operating pressure augmented by
pressure boosting equipment, if required. 
The system will be designed so that all occupied space in the building will
be fully sprinklered at a head density in accordance with light hazard
occupancy in office space.  The Base
Building provides distribution piping and sprinkler heads for common areas such
as mechanical rooms, toilets, etc. and general coverage (15’ x 15’ grid) with
upturned heads in Tenant areas.  Each
floor’s loop will be individually valved off the riser and drained.  Provide concealed heads at lobby, elevator
lobbies and toilet rooms.  The location
of base building grids will be coordinated to accommodate tenant’s improvement
work.

 

C.            Alarm and detection system
are described under Section 12, Electrical Systems.

 

4

 

11.           HEATING, VENTILATING AND AIR
CONDITIONS

 

A.           HVAC systems will be
designed in accordance with the following performance criteria and anticipated
load.

 

B.

1.             The HVAC systems will be
capable of maintaining indoor conditions no higher than 78°, 50% RH when
outdoor conditions are no higher than 88oF DB and 74oF WB, and no lower than
72oF DB when the outdoor conditions are no lower than 9oF DB.  No provision for humidification is provided.

 

2.             Outdoor air will be
introduced to the building at a minimum rate of 20 cfm per person, assuming one
person per 150 square feet floor area.

 

3.             Internal heat gain will be
calculated on the basis of sustained peak loading conditions of one person per
150 square feet of gross usable floor area and a combined lighting and power
load of 5.0 watts per gross usable square foot area (for medium pressure duct
design).

 

4.             Heated supply air
temperature will be 95oF to 110oF.

 

5.             Cooled supply air
temperature will be 55oF to 58oF.

 

6.             Measured sound levels in the
building when unoccupied and the system is operating at full load will not
exceed the levels given below:

 

Lobbies
and corridors:        NC50

 

General
offices:                     NC45

 

All
other offices:                  NC40

 

C.            The following describes the
HVAC system:

 

1.             The base building system
will consist of a roof top air handler with gas fired morning warm-up.

 

2.             Variable air volume controls
with fan powered VAV boxes with electric coils at the perimeter and VAV fan
powered boxes without coils for interior zones.

 

3.             Heating shall be via fan
boxes with electric coils at the perimeter.

 

4.             Toilet room and mechanical
room exhaust systems and associated ductwork and fans. Electric rooms located
on each office floor will be ventilated using general exhaust.

 

5.             Automatic temperature
control system consisting of direct digital controls 

 

5

 

(DDC) and appurtenances. 
Connections of VAV units, fans and associated systems, and tie into the
central control system.

 

6.             Stair pressurization supply
air, smoke vestibule supply and exhaust systems and stair relief system.

 

7.             Acoustical duct lining for
all return and transfer ductwork in mechanical equipment room and LP supply
ductwork 10’-0” downstream of VAV box. 
Supply ductwork beyond lined ductwork shall be insulated with 1-1/2”
duct insulation.  Ductwork shall be fully
lined or insulated.

 

8.             Air distribution system
consisting of ductwork, volume dampers, fire dampers, registers, diffusers and
linear diffusers for core areas only.

 

9.             Diesel fired emergency
generator, diesel storage tank, exhaust pipe, ductwork, etc.

 

10.           Cabinet unit heaters to heat
stairways in some limited locations.

 

11.           Certified testing and
balancing to insure proper system operation.

 

12.           ELECTRICAL

 

A.            Electrical systems will be
designed in accordance with the following anticipated loads:

 

1.             Lighting power requirements
will be calculated on the basis of 1.5 watts per square foot of building area.

 

2.             Tenant convenience outlet
power requirements will be calculated on the basis of 4.5 watts per square foot
of building area.

 

3.             Power requirements for HVAC
and other fixed building equipment will be determined by the actual equipment
installed.

 

B.            The electrical power
distribution system will receive low tension power at 480/277 volts, 3 phase, 4
wire from the transformers provided by the utility company, and will
incorporate one or more main switchboards and all subsidiary panelboards
(power, lighting, equipment) as required. 
The distribution system will supply power as follows:

 

1.             480 volts, 3 phase to all
motors 1⁄2 horsepower and larger.

 

2.             277 volts, single-phase to
all fluorescent (and other discharge-type lamp) lighting fixtures.

 

6

 

3.             120 volts,
single-phase to all incandescent lighting fixtures.

 

4.             120 volts,
single-phase to all general convenience receptacle outlets.

 

5.             120 volts
single-phase; 208 volts, single-phase; 208 volts, 3-phase to specific use “solid
connection” or receptacle outlets, as determined from the requirements of the
appliances assigned to the outlets.

 

C.            Metering will
be accomplished in one of two ways.

 

1.             Utility meters
at main switchboards and Owner specified check meters on the floors to verify
tenant consumption.  These check meters
to be solid-state, 1% accuracy and networked to a central computer.

 

D.            Three-phase,
dry type transformers (480 volt delta to 208/120 volt wye) will be used to
provide power of voltages not available from direct connection to the main
service.  Transformers will be the
self-cooled indoor type with Class H insulation and steel enclosures.

 

E.             The emergency
electrical power system will consist of:

 

1.             Diesel powered
emergency generator(s) sized to meet the power demands of all Base
Building emergency equipment.

 

2.             An emergency
power distribution system supplying the fixtures illuminating egress passages
and stairs, exit signs, elevators , fire alarm system, fire pump, (if required)
and stairwell pressurization fans.

 

3.             An automatic
transfer switch, which will connect the emergency power distribution system to
the standard building distribution system or the emergency generator, as
required.

 

F.             The automatic
fire detection and alarm system will be electronically operated double-supervised,
connected to the Fire Department, and provided with a battery backup.  All components of the fire alarm system (fire
command station, manual alarm stations, alarm indicators, automatic smoke and
heat detectors, fan control relays, etc.) will be Underwriters’ laboratories
rated, and the system will comply with all requirements of the NFPA, ADA,
governing building code and local authorities. 
Activation of a manual alarm station or an automatic detection device
(waterflow switches, smoke detectors, etc.) will:

 

1.             Sound the
evacuation signals and flash the alarm lamps throughout the building.

 

2.             Printout the
device in alarm at the fire command center.

 

7

 

3.             Summon the
municipal fire department.

 

4.             Activate smoke
exhaust fans and/or shut down the HVAC system to prevent spread of smoke as
appropriate.

 

Battery
back-up failure or any disruption of the system wiring will sound an alarm at
the system control panel.

 

G.            The base
building will provide an area in the basement for the tenant’s
telecommunications vendor.  Three
dedicated 4” sleeves will be provided for tenant’s use.  The sleeves will be located on each floor in
the base building telecommunications closet.

 

13.           To clarify the
delineation from Base Building to tenant work, the following criteria apply:

 

A.            The Base
Building sprinkler system will consist of general coverage (15’ x 15’ grid)
with upturned heads to meet minimum code requirements for light hazard
occupancy.  All relocation and/or additional
heads and associated piping shall be tenant work.  (Sprinkler work in multi-tenant elevator
lobbies and common corridors will be Base Building work).

 

B.            Except as
modified in Exhibit B-2, Base Building HVAC system extends up to vertical
riser in base building shaft.  Tenant
work includes medium pressure distribution ductwork, all downstream secondary
ductwork, interior and exterior boxes, controls, registers, grilles and
diffusers.

 

C.            Except as
modified in Exhibit B-2, Base Building electrical system extends up to the
bus duct in tenant electric room sized to accommodate tenant electrical design
load of 6.0 watts/SF for lighting and power.

 

D.            Tenant Work,
which is not included in Base Building, would normally cover the following:

 

a.             Ceiling high
and , except on multi-tenant floors, demising partitions

 

b.             Tenant entrance
doors and interior doors

 

c.             Acoustical
ceilings

 

d.             Carpet or other
floor covering

 

e.             Interior finish
on exterior wall

 

f.              Light fixtures

 

g.             Single pole
switches

 

h.             Wall-mounted
duplex outlets

 

i.              Wall-mounted
telephone outlets

 

j.              Final sprinkler
head layout, fixture upgrades, quantities above Base Building, and all piping
associated with changes

 

k.             Except as
modified in Exhibit B-2, Interior and exterior VAV boxes, all Registers,
Diffusers and Grilles (RDG) with medium pressure and 

 

8

 

distribution ductwork. Medium pressure supply ductwork shall have duct
sound attenuators and external duct insulation throughout.

 

l.              All electrical
work on Tenant’s meter

 

m.            Fire alarm
stations and exit signs required by code (but such items shall be included in
Base Building to the extent located in core areas)

 

n.             Elevator lobby
finishes on single tenant floors (elevator frames and doors are brushed
stainless steel)

 

9

 

EXHIBIT B-2

 

BASE BUILDING ENHANCEMENTS

 

1.             Landlord shall
provide a level floor slab with variation no greater than 1⁄4” within a 10’ x 10’
area.

 

2.             Landlord’s core
and perimeter shell walls and interior columns shall be provided finished and
taped from deck to 6” above level of the finished ceiling.

 

3.             Landlord shall
provide HVAC medium distribution means (via ring duct) which meets Tenant’s
requirements and which is coordinated with the Tenant’s architects and
engineers. Duct design and configuration to be based on a mutually approved
plan prepared by the Tenant. Tenant shall reimburse Landlord for additional
costs which are incurred above and beyond a typical ring.

 

4.             Landlord shall
provide a comprehensive per floor electrical service within the Premises that
includes step-down transformers, meters and distribution panels that support no
less than six (6) watts per rentable square foot of floor area exclusive
of base building loads. Equipment shall be located within common area
electrical riser rooms and closets.

 

1

 

EXHIBIT B-5

 

PRE-APPROVED GENERAL CONTRACTORS

 

1.             J. Calnan &
Associates

 

2.             Commodore
Builders

 

3.             Lee Kennedy Company

 

4.             Shawmut Design
and Construction

 

5.             StructureTone, Inc.

 

1

 

EXHIBIT C

 

LANDLORD SERVICES

 

I.              CLEANING

 

Cleaning
and janitorial services shall be provided Monday through Friday (starting at or
after 6:00 pm EST), exclusive of holidays observed by the cleaning company and
Saturdays and Sundays.

 

A.            OFFICE AREAS

 

Cleaning
and janitorial services to be provided in the office areas shall include:

 

1.             Vacuuming, damp
mopping of resilient floors and trash removal nightly.

 

2.             Dusting of
horizontal surfaces within normal reach (tenant equipment to remain in place),
including but not limited to, tenant furniture systems (minimum once per week).

 

3.             High dusting
and dusting of vertical blinds and light fixtures to be rendered as needed
(minimum once per week).

 

B.            LAVATORIES

 

Cleaning
and janitorial services to be provided in the common area lavatories of the
building shall include:

 

1.             Dusting, damp
mopping of resilient floors, trash removal, sanitizing of basins, bowls and
urinals as well as cleaning of mirrors and bright work (nightly).

 

2.             Refilling of
soap, towel, tissue and sanitary dispensers to be rendered as necessary.

 

3.             High dusting to
be rendered as needed (minimum once per week).

 

C.            MAIN LOBBIES,
ELEVATORS, STAIRWELLS AND COMMON CORRIDORS

 

Cleaning
and janitorial services to be provided in the common areas of the building
shall include:

 

1.             Trash removal,
vacuuming, dusting and damp mopping of resilient 

 

1

 

floors and cleaning and sanitizing of water
fountains (nightly).

 

2.             High dusting to
be rendered as needed (minimum once per week).

 

D.            WINDOW CLEANING

 

All
exterior windows shall be washed on the outside surfaces at least once per
year, and on the inside surfaces at least once per year.

 

II.            HVAC

 

A.            Heating,
ventilating and air conditioning equipment will be provided with sufficient
capacity to accommodate a maximum population density of one (1) person per
one hundred fifty (150) square feet of useable floor area served, and a
combined lighting and standard electrical load of 3.0 watts per square foot of
useable floor area. In the event Tenant introduces into the Premises personnel
or equipment which overloads the system’s ability to adequately perform its
proper functions, Landlord shall so notify Tenant in writing and supplementary
system(s) may be required and installed by Landlord at Tenant’s expense,
if within fifteen (15) days Tenant has not modified its use so as not to cause
such overload.

 

Operating
criteria of the basic system shall not be less than the following:

 

(i)            Cooling season
indoor temperatures of not in excess of 73 - 79 degrees Fahrenheit when outdoor
temperatures are 91 degrees Fahrenheit ambient.

 

(ii)           Heating season
minimum room temperature of 68 - 75 degrees Fahrenheit when outdoor
temperatures are 6 degrees Fahrenheit ambient.

 

B.            Landlord shall
provide heating, ventilating and air conditioning as normal seasonal changes
may require during the hours (the “Building Hours”) of 8:00 a.m. to 6:00 p.m.
Monday through Friday and 9:00 a.m. to 1:00 p.m. on Saturdays (legal
holidays in all cases excepted). Landlord and Tenant will cooperate with each
other in good faith to operate the heating, ventilating and air conditioning
systems on Saturdays only in those portions of the Premises that are actually
occupied on such days.

 

If
Tenant shall require air conditioning (during the air conditioning season) or
heating or ventilating during any other time period, Landlord shall use Landlord’s
best efforts to furnish such services for the area or areas specified by
written request of Tenant delivered to the Building Superintendent or the
Landlord within a reasonable amount of time preceding the extra usage. Tenant
may request such after hours service on 

 

2

 

a
zone-by-zone basis.  Landlord shall
charge Tenant for an amount equal to the sum of (x) the actual costs
charged to Landlord by the utility company to provide such service and (y) a
reasonable additional charge for depreciation of equipment, manpower and
administrative fees, and Tenant shall pay the same to Landlord, as additional
rent, upon receipt of billing therefor.

 

III.           ELECTRICAL
SERVICES

 

A.            Landlord shall
provide electric power for a combined load of 6.0 watts per square foot of
useable area (exclusive of base building HVAC equipment load) for lighting and
for office machines through standard receptacles for the typical office space.

 

B.            In the event
that Tenant has special equipment (such as computers and reproduction
equipment) that requires either 3-phase electric power or any voltage other
than 120, or for any other usage in excess of 6.0 watts per square foot,
Landlord may at its option require the installation of separate metering
(Tenant being solely responsible for the costs of any such separate meter and
the installation thereof) and direct billing to Tenant for the electric power
required for any such special equipment.

 

C.            Landlord will
furnish and install, at Tenant’s expense, all replacement lighting tubes, lamps
and ballasts required by Tenant. Landlord will clean lighting fixtures at
Tenant’s request and expense.

 

IV.           ELEVATORS

 

Landlord
shall manage the operation of the passenger elevators in the Building so that
there is sufficient elevator service at all times to meet the demands of the
Building occupants in a manner consistent with other comparable first-class
office buildings in the Market Area, provided that (1) there shall not be
less than three (3) elevators serving the Premises during Building Hours,
and (2) at least one (1) passenger elevator servicing the Premises
shall be operational and available on a 24 hour, seven (7) day a week
basis. Only one (1) passenger elevator may be used as a freight elevator
at any given time (and if only one (1) passenger elevator is then in
service, such elevator may nonetheless also be used as a freight elevator but
only during non-Building Hours). There shall be no additional charge for use of
any freight elevator in the Building (including any passenger elevator serving
as a freight elevator).

 

V.            WATER

 

Provide
hot water for lavatory purposes and cold water for drinking, lavatory and
toilet purposes.

 

 

3

 

VI.           SECURITY;
ACCESS

 

Landlord
will provide a Building perimeter access control system at least one (1) designated
entry door of the Building, including loading areas and provide Tenant with
access/key cards for Tenant’s employees at no additional charge. Tenant shall
have the right to integrate Tenant’s access control system for the Premises
with Landlord’s access control for the Building to allow for single card use by
Tenant’s employees for both the Building and the Premises.

 

Tenant
shall have access to the Premises on a twenty-four hour per day, seven (7) day
a week basis, subject to Landlord’s reasonable rules and regulations
relative to such access and to events beyond Landlord’s reasonable control.

 

Landlord
will provide, through a third-party security services contactor, random
security patrols of the building perimeter and parking areas during
non-Building Hours, and, upon request from Tenant’s employees, an escort for
Tenant’s employees to their vehicles in the parking areas during non-Building
Hours (it being acknowledged and agreed that (x) this escort will be
provided by the roving security guard assigned to patrol the Site and other
properties owned by Landlord and its affiliates and accordingly that there may
be a variable waiting period between the time that the call is placed and the
time that the security guard arrives on the Site, and (y) the obligation
to provide an escort service shall not apply to any mortgagee or subsequent
third-party holder of the landlord’s interest in this Lease).

 

VII.          SNOW REMOVAL

 

Snow
removal and treatment of ice will be performed by Landlord or its contractor in
a manner that is comparable to such service provided at other Class A,
high quality, multi-tenant office buildings in the Market Area.

 

VIII.        BUILDING
ILLUMINATION

 

Landlord
will illuminate the Building at night in a manner that is consistent with the
LEEDS certification of the Building.

 

4

 

EXHIBIT H

 

BROKER DETERMINATION OF ANNUAL MARKET RENT

 

Where
in the Lease to which this Exhibit is attached provision is made for a
Broker Determination of Annual Market Rent, the following procedures and
requirements shall apply:

 

1.             Definition of
Annual Market Rent. “Annual Market Rent” shall mean the annual fair
market rental value of (i) the RFO Premises in connection with Tenant’s
Right of First Offer under Section 2.1.2 of the Lease, or (ii) the
Premises in connection Tenant’s exercise of its extension options under Section 8.20
of the Lease, as applicable.  Such annual
fair market rental value determination (a) may include provision for
annual increases in rent during said Extended Term if so determined, (b) shall
take account of, and be expressed in relation to, the payment in respect of
taxes and operating costs and provisions for paying for so-called tenant
electricity as contained in the Lease, (c) shall be based on comparable
office use within the Market Area and (d) shall take into account all
relevant factors as determined by the brokers selected in accordance with the
provisions hereof.

 

2.             Tenant’s
Request. Tenant shall send a notice to Landlord in accordance with Sections
2.1.1, 2.1.2 or 8.20 of the Lease, as applicable, requesting a Broker
Determination of the Annual Market Rent, which notice to be effective must (i) make
explicit reference to the Lease and to the specific section of the Lease
pursuant to which said request is being made, (ii) include the name of a
broker selected by Tenant to act for Tenant, which broker shall be affiliated
with a major metropolitan Boston commercial real estate brokerage firm selected
by Tenant and which broker shall have at least ten (10) years experience
dealing in properties of a nature and type generally similar to the Building
located in the Market Area, (iii) state Tenant’s determination of Annual
Market Rent, and (iv) explicitly state that Landlord is required to notify
Tenant within thirty (30) days of an additional broker selected by Landlord,
together with Landlord’s determination of Annual Market Rent.

 

3.             Landlord’s
Response. Within thirty (30) days after Landlord’s receipt
of Tenant’s notice requesting the Broker Determination and stating the name of
the broker selected by Tenant, Landlord shall give written notice to Tenant of
Landlord’s selection of a broker having at least the affiliation and experience
referred to above and Landlord’s determination of Annual Market Rent.

 

4.             Determination
by Landlord’s Broker and Tenant’s Broker. Landlord’s broker and
Tenant’s broker shall have thirty (30) days to agree in writing on whether
Landlord’s determination of Annual Market Rent or Tenant’s determination of
Annual Market Rent more closely reflects the actual Annual Market Rent. Upon

 

1

 

such
agreement, the determination so chosen shall be the Annual Market Rent.

 

5.             Selection of
Third Broker. If Landlord’s broker and Tenant’s broker are not
able to agree within such thirty (30) day period, then within ten (10) days
thereafter the two (2) brokers shall select a third such broker also
having at least the affiliation and experience referred to above.

 

6.             Determination
by Third Broker. Within thirty (30) days after the selection of the
third broker, the third broker shall decide in writing whether Landlord’s
determination of Annual Market Rent or Tenant’s determination of Annual Market
Rent more closely reflects the actual Annual Market Rent. Upon such decision,
the determination so chosen shall be the Annual Market Rent.

 

7.             Costs. Each party
shall pay the costs and expenses of the broker selected by it and each shall
pay one half (1/2) of the costs and expenses of the third broker.

 

2Exhibit 10.1

 

Centro NP LLC

420 Lexington Avenue, 7th Floor

New York, New York  10170

 

As of February 14, 2008

 

Bank of America, N.A.

Hearst Tower

214 North Tryon Street

Charlotte, North Carolina  28255

 

Re:                               Amended
and Restated Revolving Credit Agreement, dated July 31, 2007, by and among
Centro NP LLC (the “Borrower”), the lenders party thereto (each, a “Lender”,
and, collectively, the “Lenders”), and Bank of America, N.A., as agent
for the Lenders (in such capacity, the “Administrative Agent”, and
together with the Lenders, the “Lender Parties”) (as previously amended,
and as the same may hereafter be further amended, restated, supplemented or
otherwise modified from time to time, the “Loan Agreement”); First
Amendment to Amended and Restated Revolving Credit Argeement, dated as of December 16,
2007, by and among the Borrower, the Lender Parties, the Centro Parties
referenced in the Loan Agreement (being, for avoidance of doubt, (i) CPT Manager Limited, as responsible entity of
the Centro Property Trust  and (ii) Centro Properties Limited) and the
Subsidiary Guarantors referenced in the Loan Agreement (the “First Amendment”);
and Letter Agreement, dated as of January 14, 2008, by and among the
Borrower, the Guarantors and the Lender Parties (the “January 14 Letter
Agreement”, and collectively with the First Amendment and the January 14
Letter Agreement, the “Existing Agreements”).

 

Ladies and Gentlemen:

 

The
purpose of this letter agreement (as amended, restated, supplemented or
otherwise modified from time to time, this “Agreement”, and collectively
with the Loan Agreement and all related agreements and ancillary documents, the
“Loan Documents”) is to set forth the terms and conditions of the
agreement by and among the Borrower regarding the Borrower,  Super
and Super’s respective direct and indirect subsidiaries (including, without
limitation, the Borrower, but excluding Joint Venture Entities (as defined in
the Bridge Loan Agreement as defined below)) (collectively, the “Super
Entities”) and the Lender Parties to extend the Maturity Date. This
Agreement (i) is dated as of the date indicated above (the “Execution
Date”), but, subject to satisfaction of the conditions to effectiveness set
forth in Section 14 below, shall be and hereby is effective retroactive to
December 16, 2007 (the “Effective Date”), and (ii) amends and
restates the Existing Agreements in their entirety. Any capitalized terms used
herein that 

 

 

are not otherwise defined
shall have the meanings ascribed to them in the Loan Agreement.

 

As used herein, the term “Other Bank/Noteholder Group Lenders” means, collectively, the lenders under the following
facilities (collectively, the “Other Bank/Noteholder Group Facilities”):  (i) the
Australian Credit Facility (as defined in Bridge Loan Agreement), (ii) the
notes (the “2007 NPA”) issued pursuant to that certain Note Purchase and Guarantee Agreement, dated as of August 15,
2007, among CPT, the guarantors identified on the signature pages thereto
and the holders of certain 6.34% Guaranteed Senior Notes, Series E, due August 15,
2015 and certain 6.43% Guaranteed Senior Notes, Series F, due August 15,
2017 (as previously amended and as the same may hereafter be amended, restated,
supplemented or otherwise modified from time to time, the “2007 NPA Documents”), (iii) the notes (the “2005
NPA”) issued pursuant to that certain Note Purchase
and Guarantee Agreement, dated as of August 15, 2005, by and among CPT,
the guarantors identified on the signature pages thereto and the holders
of certain 4.98% Guaranteed Senior Notes, Series A, due August 15,
2012, certain 5.21% Guaranteed Senior Notes, Series B, due August 15,
2012, certain 5.31% Guaranteed Senior Notes, Series C, due August 15,
2017 and certain 5.41% Guaranteed Senior Notes, Series D, due August 15,
2020 (as previously amended and as the same may hereafter be amended, restated,
supplemented or otherwise modified from time to time, the “2005 NPA
Documents”), (iv) the facility (the “Bridge Facility”)
evidenced by that certain Amended and Restated Loan Agreement between Super
LLC, certain lenders party thereto (the “Bridge Lenders”) and JPMorgan
Chase Bank, N.A., as agent for the Bridge Lenders (in such capacity, “JPM”),
dated as of August 1, 2007 (as previously amended and as the same may
hereafter be further amended, restated, supplemented or otherwise modified from time to time, the “Bridge Loan Agreement”),
and (v) the facilities
(collectively, the “KeyBank Facilities”) evidenced by (I) that
certain Unsecured Master Loan Agreement, dated September 28, 2007,
by and among Centro GA America LLC, the lenders thereto and KeyBank National
Association (“KeyBank”), as agent (as previously amended and as the same
may hereafter be further amended, restated, supplemented or otherwise modified
from time to time, the “KeyBank Loan Agreement”), (II) that certain Secured Term Loan Agreement, dated November 10,
2005, by and between Centro GA America LLC and KeyBank (as previously
amended and as the same may hereafter be further amended, restated,
supplemented or otherwise modified from
time to time, the “Galileo Loan Agreement”), and (III) that certain
Credit and Reimbursement Agreement, dated October 23, 2003, by and among
Centro GA America LLC, Galileo Sub LLC and KeyBank (as previously
amended, and as the same may hereafter be further amended, restated,
supplemented or otherwise modified from
time to time, the “Credit and Reimbursement Agreement” and, collectively
with the KeyBank Loan Agreement and the Galileo Loan Agreement, the “KeyBank
Facilities Documents”). As used herein,
the term “U.S. Bank Group Lenders” means, collectively, the Lender
Parties, the Bridge Lenders, and KeyBank, as lender and/or agent, as
applicable, under the KeyBank Facilities. As used herein,
the term “Other Bank/Noteholder Group Facility Documents” shall
mean, collectively, (A) the documents evidencing the Australian Credit
Facility (the “Australian Credit Facility Documents”), (B) the
Bridge Loan Agreement, (C) the KeyBank Facility Documents, (D) the
2005 NPA Documents, and (E) the 2007 NPA Documents. As used herein, the
term “Centro 

 

2

 

GA Entities”
shall mean Centro GA America LLC and its direct and indirect subsidiaries. As
used herein, the term “Australian Guarantor Entities” shall mean any
direct or indirect wholly-owned subsidiary of each Centro Party that has
provided or will provide a guaranty in respect of the Australian Credit
Facility, the 2005 NPA, and/or the 2007 NPA, and any of their respective direct
or indirect wholly-owned subsidiaries. The Borrower, the Guarantors, and each
of the Lender Parties hereby agree as follows:

 

1.                                       Extension
of Maturity Date; Extension Fee and Default Interest; Increased Margin; No
Additional Borrowings; Professional Fees; Retainer.

 

(a)                                  Each
of the Lender Parties hereby agrees that the Maturity Date shall be extended
from December 31, 2007 to the date that is the earlier to occur of:  (i) September 30, 2008, and (ii) the
date on which a Trigger Event Notice (as defined below) is delivered in
accordance with Section 3 hereof, or the date on which a Trigger Event
under Section 3(a) occurs (the time period elapsing between December 31,
2007 and the dates described in clauses (i) and (ii) being referred
to herein as the “Extension Period”, and the date on which the Extension
Period expires or terminates being referred to herein as the “Termination
Date”).

 

(b)                                 (i)                                     The
Borrower agrees to pay to the Lender Parties an extension fee under the Loan Documents in the amount of
$3,292,952 (the “Extension Fee”), which shall be payable to the Lender
Parties based on their respective Commitment Percentages.

 

(ii)                                  The Extension Fee shall be deemed fully
earned on the Effective Date, but the Borrower shall not be required to remit
payment of the Extension Fee to the Lender Parties until the Termination Date. The
Extension Fee shall be deemed to be an absolute obligation of the Borrower
under the Loan Agreement (collectively, such obligation and all other present
and future obligations and liabilities, whether deemed principal, interest,
additional interest, fees, expenses or otherwise of the Borrower to the
Administrative Agent and the Lender Parties, including, without limitation, all
obligations under (A) the Loan Agreement, (B) the Notes (including,
without limitation, the Revolving Credit Notes and the Swing Loan Note), (C) the
Letters of Credit, and (D) all other Loan Documents shall be referred to
herein as the “Obligations”), and shall be due and payable on the
Termination Date without further notice or demand made by the Lender Parties to
the Borrower and/or the Guarantors. From and after the Termination Date, the Borrower shall pay default interest on any portion
of the Extension Fee that remains unpaid and any other outstanding Obligations,
in each case pursuant to the applicable terms of the Loan Agreement.

 

(iii)                               For the avoidance of doubt, notwithstanding anything
to the contrary in this Agreement or any other Loan Document, the Extension Fee
shall be payable solely upon the terms and conditions set forth above, and no
separate fee of any nature or purpose similar to the Extension Fee is intended
by the Lender Parties to be payable by the Borrower in connection with this
Agreement or any other Loan Document. Notwithstanding the immediately preceding

 

3

 

sentence, if at any time during the Extension Period any Other
Bank/Noteholder Group Lender  (A) requires
payment of any Existing Bank/Noteholder Group Extension
Fee (as defined below), the Extension Fee shall become immediately due and
payable to the Lender Parties at the same time any such Existing
Bank/Noteholder Group Extension Fee is so paid to such Other Bank/Noteholder
Group Lender, or (B) assesses or requires payment of any Additional
Bank/Noteholder Group Extension Fee (as defined below), the amount of the
Extension Fee shall be increased by the amount equal to the product of (x) the
percentage by which the total extension fees payable to the applicable Other
Bank/Noteholder Group Lender has increased (measured as a percentage of
outstanding obligations under the applicable Other Bank/Noteholder Group
Facilities) as a result of any Additional
Bank/Noteholder Group Extension Fee, multiplied by (y) the then
outstanding amount of the Obligations  (any such increase in the Extension Fee, an “Additional
Extension Fee”) and shall become due and payable to the Lender Parties at
such time as the Additional Bank/Noteholder Group Extension Fee is paid to such
Other Bank/Noteholder Group Lender. In no event shall any Existing
Bank/Noteholder Group Lender Extension Fee be paid, or any Additional
Bank/Noteholder Group Extension Fee be paid, to the applicable Other
Bank/Noteholder Group Lender on any date prior to the Termination Date without
the concurrent payment of the Extension Fee and/or the Additional Extension
Fee, as applicable to the Lender Parties. As used herein, the term “Existing
Bank/Noteholder Group Extension Fee” shall mean any extension fee under or
in connection with any of the Other Bank/Noteholder Group Facilities that has
been provided for in writing and disclosed to the Lender Parties on the
Execution Date (which disclosure shall be deemed satisfied if same is set forth
in the Other Bank/Noteholder Group Extension Agreements (as defined below)). As
used herein, “Additional Bank/Noteholder Group Extension Fee” shall mean
any extension fee under or in connection with any of the Other Bank/Noteholder
Group Facilities other than any such extension fee that is paid, assessed or
otherwise provided for in writing and disclosed to the Lender Parties on the
Execution Date (and, for the avoidance of doubt, any fee payable to any Other
Bank/Noteholder Group Lender in connection with any new credit facility
provided by such Other Bank/Noteholder Group Lender on or after the Execution
Date shall not constitute an Additional Bank/Noteholder Group Extension Fee).

 

(c)                                  From and after
the Effective Date, the Applicable Margin, whether applied to a LIBOR Loan, a
Prime Rate Loan, or a Letter of Credit Commission Fee, shall be increased to
1.75% per annum (the “Increased Spread”); provided, however,
that from the Effective Date through the Execution Date, the Borrower shall
only be obligated to pay the Applicable Margin in effect prior to giving effect
to the First Amendment in cash, and the differential between the Applicable
Margin and the Increased Spread (the “Deferred Amount”) shall accrue on
a daily basis (through and including the Execution Date) and be capitalized on September 30,
2008 (or, if a Trigger Event occurs, on the Termination Date), with no further
interest or fee accrual on the Deferred Amount from and after the Execution
Date until the date the Deferred Amount is so capitalized) and become due and
payable on the Termination Date; and provided, further, that on
and after the Execution Date, the Borrower shall be obligated to pay all
interest accrued under the 

 

4

 

Loan Agreement and Letter of Credit Commission
Fees (calculated using the Increased Spread, but excluding the interest due and
payable on the Termination Date as referenced above) in cash, which interest
shall accrue (but not be compounded) on a daily basis and be paid on the first
Business Day after the end of each month (or, if a Trigger Event occurs, on the
Termination Date), and otherwise in accordance with the applicable terms of the
Loan Agreement. Upon the occurrence of a Trigger Event, the first proviso of
the immediately preceding sentence shall no longer apply and all interest shall
instead be due and payable pursuant to the applicable terms of the Loan
Agreement (as modified by this Section 1(c)) after an Event of Default has
occurred. Further, if and to the extent the interest rate spread applicable to
any of the Other Bank/Noteholder Group Facilities exceeds 1.75% per annum, the
Applicable Spread shall be automatically adjusted mutatis  mutandis
so as to equal such increased amount, without any further action whatsoever by any party.

 

(d)                                 Notwithstanding
anything to the contrary set forth in the Loan Documents, from and after the
Effective Date, the Borrower shall not request and the Lenders shall have no
obligation to make any extensions of credit under the Loan Agreement, including
the making of any Loans or Letters of Credit (but excluding the one-time
extension (commencing as of the Effective Date) of any Letters of Credit
previously issued and outstanding, subject to the other terms and conditions of
the Loan Agreement).

 

(e)                                  The Borrower
hereby agrees to pay all reasonable professional fees and expenses incurred by
the Lender Parties on or prior to the Execution Date in connection with the
matters relating to this Agreement and the other Loan Documents (including,
without limitation, any such fees and expenses incurred by the Lender Parties’
respective legal and financial advisors relating to any transactions in respect
of any Super Entity prior to the Effective Date, whether or not any such
transactions were consummated), to the extent such fees and expenses are
accrued and unpaid as of the Execution Date. Subject to its receipt of summary
invoices (it being understood and agreed that the presentment of such summary
invoice shall not constitute a waiver of the attorney-client privilege or any
other applicable privilege), on or prior to the Execution Date, the Borrower
shall remit payment of such invoiced fees and expenses by wire transfer to the
Administrative Agent’s counsel pursuant to wire transfer instructions to be
provided by the Administrative Agent’s counsel to the Borrower, which transfer
shall be actually received by the Administrative Agent’s counsel on or prior to
5:00 p.m. prevailing eastern time on February 20, 2008. From
and after the Execution Date, the Borrower hereby agrees to pay promptly all
reasonable out-of-pocket fees and expenses of the Lender Parties incurred in connection
with the matters relating to this Agreement and the other Loan Documents on
an ongoing basis, including, without limitation, in respect of any financial
advisor to the Administrative Agent and the Lender Parties’ respective legal
counsel (which fees and expenses shall not be and shall not be deemed to be
subject to any maximum amount on account of anything set forth in the Budget,
the Retainer Agreement, or any other document contemplated under this
Agreement), in each case within seven (7) Business Days of presentment of
any summary invoice (it being understood and agreed that the presentment of
such summary invoice shall not constitute a waiver of the attorney-client
privilege or any other applicable privilege) by (A) the 

 

5

 

financial advisor to the
Administrative Agent or (B) any Lender Party or its respective legal
counsel; provided, however, that the Borrower shall only be
required to reimburse fees and expenses of one financial advisor providing
advice in respect of this Agreement and the Loan Documents and all other
matters relating hereto and thereto). As used herein, “Lender Party Expenses”
shall mean all fees and expenses payable by the Borrower pursuant to this Section 1(e).

 

(f)                                    Promptly
following the execution of this Agreement, the Borrower shall provide a cash
deposit in the amount of $100,000 (the “Retainer”) to the Administrative
Agent, to be held by the Administrative Agent in a separate account (the “Retainer
Account”) and used to pay Lender Party Expenses. The Administrative Agent
shall be entitled to apply any or all of the Retainer to payment of any Lender
Party Expenses that have not been paid by the Borrower as and when required to
be paid pursuant to Section 1(e) above. At any time that the balance
held in the Retainer Account is less than $100,000, the Borrower hereby agrees
to provide the Administrative Agent with additional funds sufficient to restore
the balance in the Retainer Account to $100,000 promptly following the request
of the Administrative Agent.

 

2.                                       Application of Prepayments.

 

(a)                                  Each of the Lender Parties agrees
that, solely during the Extension Period, except as expressly provided herein,
such Lender Party shall not demand payment or the turnover of amounts due under
or in respect of the Loan Agreement (other than interest that is otherwise due
in accordance with the Loan Agreement, as amended hereby), or exercise any
right to net or set-off any amounts due, in each case under the Loan Agreement
or applicable non-bankruptcy law. Without limiting the foregoing, solely during
the Extension Period, except as provided in Section 2(b), (i) the
Borrower shall not be required to make any mandatory prepayments of principal
that would otherwise be required to be made to one or more of the Lender
Parties pursuant to the Loan Agreement, and (ii) any proceeds generated
from the sale of, or a condemnation or casualty with respect to, any property
owned by a Super Entity that is not a Combined Pool Property (as defined below)
shall be retained and held by such Super Entity (other than as permitted by the
Budget (as defined below)), and no portion of such proceeds shall be
transferred to any other entity or person except Borrower or one of its wholly-owned
subsidiaries, until such time as such proceeds may be applied to outstanding
obligations of the Super Entities in the manner agreed to by all of the U.S.
Bank Group Lenders; provided, notwithstanding the fact that the
definition of “Super Entities” does not include Joint Venture Entities, the
foregoing restrictions with respect to the use of proceeds shall apply to any
proceeds that are received by any Super Entity from any Joint Venture Entity; provided,
however, nothing in this clause (ii) shall prohibit (w) any
Super Entity from using any such proceeds to prepay any loan secured by such
encumbered property owned by a Super Entity that is not a Combined Pool
Property, where prepayments of the loan secured by such encumbered property are
contractually required upon receipt by the applicable Super Entity of proceeds
of a sale of, or a condemnation or casualty with respect to, such property), (x) any
Super Entity from distribution to BPR Shopping Center, LLC such proceeds to be
used by it to prepay or repay indebtedness under the Preston Ridge Facility (as
defined below), in accordance with the terms and 

 

6

 

provisions of the
documentation associated therewith, (y) the relevant Super Entity from
using, in the case of a casualty event with respect to a property that is not a
Combined Pool Property where the insurance proceeds payable to such Super
Entity are less than 50% of the appraised value of such property immediately
prior to the casualty event, any such insurance proceeds received by such Super
Entity to reconstruct, rebuild or repair any such property, or (z) the
relevant Super Entity from using any such proceeds to satisfy any cash
obligations arising from the redemption of preferred stock units issued by
Excel Realty Partners L.P. at any time on or prior to December 31, 2008 in
an amount not to exceed $85,000,000. Provided no Trigger Event or Event of
Default shall occur during the Extension Period, each of the Lender Parties
agrees not to charge any default rate of interest during the Extension Period.

 

(b)                                 Any
proceeds generated from the sale of, or a condemnation or casualty with respect
to, any property owned by a Super Entity that is a Combined Pool Property shall
be remitted by such Super Entity to Administrative Agent and applied by
Administrative Agent to any outstanding obligations under the Loan Agreement
until such time as all such obligations thereunder have been paid in full and
all commitments under the Loan Agreement have been terminated; provided,
however, notwithstanding the foregoing, the relevant Super Entity may
use, in the case of a casualty event with respect to a property that is a
Combined Pool Property where the insurance proceeds payable to such Super
Entity are less than 50% of the appraised value of such property immediately
prior to the casualty event, any such insurance proceeds received by such Super
Entity to reconstruct, rebuild or repair any such property.

 

(c)                                  Except
as provided in Section 2(b), unless the Lender Parties provide their prior
written consent, any prepayments in respect of the Loan Agreement that are
received by the Administrative Agent during the Extension Period shall be held
by the Administrative Agent in an interest-bearing account and not applied to
any of the Obligations, notwithstanding anything to the contrary set forth in
the Loan Agreement; provided, however, upon any termination or
expiration of the Extension Period in accordance with the terms hereof, the
Administrative Agent shall apply all such prepayments in accordance with
applicable provisions of the Loan Agreement (it being understood and agreed
that, exclusively for purposes of sharing such prepayments among the Lender
Parties, all such prepayments shall be deemed to have been received by the
Administrative Agent after an Event of Default has occurred).

 

3.                                       Termination
of Extension Period Upon or After Trigger Event. The Extension Period shall
terminate upon delivery of written notice by the Administrative Agent to the
Borrower (which written notice shall be delivered by the Administrative Agent
to the Borrower unless the Administrative Agent is otherwise directed by all of
the Lender Parties) (each, a “Trigger Event Notice”) upon the occurrence
of any of the following events, at any time during the portion of the Extension
Period from and after the Effective Date (each, a “Trigger Event”)
(which Trigger Event, either individually or collectively, shall be deemed to
be an Event of Default) (provided that, notwithstanding the foregoing, the
termination of the Extension Period upon the occurrence of any Trigger Event
described in Section 3(a) below shall be automatic and 

 

7

 

not require the delivery
of any written notice to the Borrower or the Guarantors, or any other action of
the parties hereto):

 

(a)                                  the
commencement of any voluntary or involuntary bankruptcy case or proceeding, or
the appointment of any trustee or the commencement of any receivership, winding
up or similar proceedings, by or against any Centro Party and/or each of their
respective direct and indirect majority-owned subsidiaries that are
consolidated with such Centro Party, excluding the Super Entities and the
Australian Guarantor Entities (collectively, the “Relevant Centro Entities”),
and/or any of the Super Entities under title 11 of the United States Code, as
amended, or otherwise, or any other similar law of any foreign jurisdiction,
including, without limitation, any provision of the 2001 Corporations Act, as
amended by the Corporations (Amendment) Insolvency Act 2007 in effect in
Australia (as the same may be further amended);

 

(b)                                 if
(i) any Other Bank/Noteholder Group Facility Document is terminated or
modified in any manner adverse to the Centro Parties and/or the Super Entities,
(ii) any Other Bank/Noteholder Group Extension Agreement (or any other
similar agreement entered into after the Execution Date governing material
indebtedness of the Centro Parties and/or the Super Entities) (x) terminates
or lapses in accordance with its terms, (y) is amended or modified in any
manner adverse to the Centro Parties and/or the Super Entities, or (z) is either in form or substance at the time of
execution of such agreement unsatisfactory to the Lender Parties in any
material respect, (iii) any of the Centro Parties and/or the Super
Entities terminate or modify in any manner adverse to the Centro Parties and/or
the Super Entities the transactions contemplated by any Other Bank/Noteholder
Group Extension Agreement (or any other similar agreement entered into after
the Execution Date governing material indebtedness of the Centro Parties and/or
the Super Entities), or (iv) any event of default (after delivery of
written notice, if any, and the expiration of any applicable grace period, but
only to the extent not waived in writing prior to the delivery of a Trigger
Event Notice) occurs under any loan agreement or other material financing
agreement or contract to which any of the Centro Parties and/or the Super
Entities is a party that is material to the financial condition or business
affairs of the Centro Parties or the Super Entities, in each case taken as a
whole;

 

(c)                                  the
occurrence of any material violation of any of the terms of this Agreement by
the Borrower or any Guarantor;

 

(d)                                 the
occurrence of any Event of Default or an event of default (after delivery of
written notice, if any, and the expiration of any applicable grace period, but
only to the extent not waived in writing prior to the delivery of a Trigger
Event Notice) on or after the Effective Date under any of (i) any Other
Bank/Noteholder Group Facility Document, (ii) that certain revolving
credit facility in the amount of $80,000,000 (the “Preston Ridge Facility”)
proposed to be provided by the Lender Parties to BPR Shopping Center, LLC on or
after the Execution
Date and secured by a first mortgage lien on the property known as the
Centre at Preston Ridge, Frisco, Texas (the “Preston Ridge Property”), (iii) any
other existing credit facility or other similar agreement on an aggregate basis
in excess of $10,000,000 to which any of the Centro Parties and/or the Super
Entities is a party (but only if any obligations thereunder have been
accelerated, 

 

8

 

whether automatically or
by written notice, as applicable, following the occurrence of an event of
default (after delivery of written notice, if any, and the expiration of any
applicable grace period) but only to the extent not waived in writing prior to
delivery of a Trigger Event Notice) under such credit facility or other similar
agreement), or (iv) any material contract to which any of the Centro
Parties or the Super Entities is a party is terminated as a result of a breach
thereof and such termination could reasonably result in the incurrence of
liability by such entity on an aggregate basis in excess of $10,000,000;

 

(e)                                  acts
of fraud, intentional misrepresentations, criminal or willful misconduct or
gross negligence by any of the Relevant Centro Entities or the Super Entities,
respectively;

 

(f)                                    any
payment of cash or other property by any Super Entity, respectively, in respect
of any indebtedness or other obligations of any Super Entity (other than with respect to payments required to be
made pursuant to the terms of the Loan Agreement, the Bridge Loan Agreement,
the KeyBank Facilities Documents, the other credit facilities existing as
between any of the Super Entities, Centro GA America LLC or subsidiaries of
CWAR 14 LLC and KeyBank, or the documents evidencing the Preston Ridge
Facility), or making any Restricted Payment (as defined in the First Amendment),
declaring or making any dividends, distributions or other transfers by any
Super Entity to any of the direct and indirect parent entities (and their
respective trustees and subsidiaries that are not Super Entities) of the Super
Entities (the “Centro Entities”), (including for avoidance of doubt the
making of any Restricted Payment by Borrower to Super) making any upstream
loans, or the payment of any management or similar fee, to any Centro Entity,
except (i) as expressly provided in this Agreement, or (ii) with the
prior consent of the Lender Parties; provided, however,
notwithstanding the fact that the definition of “Super Entities” excludes Joint
Venture Entities (as defined in the Bridge Loan Agreement as in effect on the
date hereof), the foregoing restrictions on Restricted Payments or dividends or
distributions and the other payments listed in this clause (f) shall apply
to any proceeds from a Joint Venture Entity that are received by any Super
Entity from any Joint Venture Entity; and provided, further, that
the Super Entities shall be permitted to make payments to parties other than
the Lender Parties in accordance with the budget annexed as Exhibit A
hereto covering the period from the Execution Date through and including April 30,
2008 (the “Initial Budget”) and/or the Subsequent Budget (as defined
below), as applicable (the Initial Budget and the Subsequent Budget, are
together referred to herein as the “Budget”); and provided, further,
that, with the consent of US Bank Group Lenders holding an aggregate of at
least sixty percent (60%) of the Loan Amount (as defined in the Bridge Loan
Agreement as in effect on the date hereof) and the outstanding principal
balance of the Preston Ridge Facility, the KeyBank Facilities and the Loan
Agreement (including the face amount of any letters of credit outstanding
thereunder), the Initial Budget may be amended at any time upon the request of
the Borrower; and provided, further, that notwithstanding
anything contained in any Loan Document to the contrary, including, without
limitation, Section 11.1 of the Loan Agreement, any Trigger Event arising
as a result of payments made by a Super Entity which, but for the noncompliance
of such payments with the Budget, would not have violated this Section 3(f) may
be waived with the consent of US Bank Group Lenders holding an aggregate of at
least sixty percent (60%) of the Loan Amount (as defined in 

 

9

 

the Bridge Loan Agreement
as in effect on the date hereof) and the outstanding principal balance of the
Preston Ridge Facility, the KeyBank Facilities and the Loan Agreement
(including the face amount of any letters of credit outstanding thereunder) (it
being understood and agreed that, for the avoidance of doubt, other than solely
as set forth in the immediately preceding sentence, all terms and provisions of
the Loan Documents concerning the respective rights of the Lender Parties to
waive an Event of Default shall remain unchanged in all respects and are not
impacted in any manner whatsoever by anything set forth in this Agreement); provided,
further, that notwithstanding the foregoing, no such amendment to the
Budget or waiver of non-compliance therewith shall be binding on the Lender
Parties without their consent to the extent they relate to payments, including
Restricted Payments, made to Super that are not contemplated by the Initial
Budget (prior to any amendment thereto).

 

(g)                                 without
the prior written consent of all of the Lender Parties, if any Relevant Centro
Entity and/or any Super Entity that is not an obligor or guarantor as of January 12,
2008 in respect of existing indebtedness or obligations of any Centro Entity
and/or Super Entity, as applicable (each, an “Obligor”) outstanding as
of such date (“Centro Existing Indebtedness”) or is a released guarantor
in respect of any of the guarantees set forth in Part I of Exhibit B  shall become obligated as a co-obligor,
guarantor, surety or otherwise (including, without limitation, by reason of
granting any liens or security interests upon any of its respective assets or
property of any nature whatsoever) on or after such date in respect of some or
all of the Centro Existing Indebtedness of any Centro Entity, or shall become
at any time after the Execution Date an obligor, co-obligor, guarantor, surety
or otherwise with respect to any indebtedness the proceeds of which are used in
whole or in part to repay any Centro Existing Indebtedness; provided, however,
for the avoidance of doubt, any Obligor that executed a written agreement on
any date prior to January 12, 2008 pursuant to which it became obligated
with respect to any revolving credit facility or similar agreement shall not be
deemed to have become obligated with respect to indebtedness or obligations of
any entity described in this Section 3(g) solely as a result of the
borrowing and re-borrowing of monies under such revolving credit facility or
similar agreement or the call on any letter of credit; and provided, further,
that no Trigger Event shall be deemed to have occurred as a result of the
execution and delivery by (i) the applicable Centro Entities in respect of
the guarantees listed on Exhibit B hereto in connection with the
Australian Credit Facility, the 2005 NPA, and the 2007 NPA, respectively (the “Additional
Guarantees”) and the Further Additional Guarantees (as defined in the Other
U.S. Bank Group Extension Agreement applicable to the Bridge Loan Agreement),
in each case subject to and in accordance with the terms of Section 4(i) of
this Agreement, (ii) the relevant Super Entities and Centro GA Entities of
the Payment Guarantees (as defined below), and (iii) CPT and the
applicable Centro Entities in respect of the loan and guarantees described in Section 5(d);

 

(h)                                 without
the prior written consent of all of the Lender Parties, if any Super Entity
grants, suffers the imposition of or permits (whether voluntary or involuntary)
any liens or security interests upon any of its respective assets or property
of any nature whatsoever in favor of any person, entity, partnership,
corporation or creditor other than the Lender Parties, except for (i) Permitted
Encumbrances (as defined in the 

 

10

 

Bridge Loan Agreement but
excluding subparagraphs (g) and (l) thereof), (ii) any liens or
security interests to be granted to the U.S. Bank Group Lenders in accordance
with Section 3(i) below, and (iii) any liens or security
interests securing the debt permitted by subclause (i)(E) of Section 4(e) hereof;

 

(i)                                     the
failure by the Borrower (or any successor entity) to use its reasonable best
efforts to cause each of the relevant Super Entities and the Centro GA
Entities, as applicable, to execute and deliver, as promptly as possible
following the Execution Date (with a targeted delivery date on or prior to March 15,
2008, but in any event subject to the March 31, 2008 date set forth in Section 3(l) below),
(i) to Administrative Agent to secure all obligations (but not more than
$322,000,000 of principal amount of Loans and Letters of Credit thereunder)
under the Loan Agreement (the “Bank of America Secured Loan Amount”), (A) valid
and enforceable first lien mortgages, deeds of trust and deeds to secure debt (the
“Bank of America Security Instruments”), in substantially the form
provided by JPM to the Borrower on February 13, 2008 (the “Approved
Security Instrument Form”), encumbering the properties owned by certain
Super Entities and identified on Exhibit C hereto (collectively,
the “Combined Pool Properties”) and (B) a valid and enforceable
second lien deed of trust (the “Bank of America Preston Ridge Security
Instrument”), substantially in the Approved Security Interest Form,
encumbering the Preston Ridge Property (which shall be subordinated to the
deeds of trust securing the Preston Ridge Facility pursuant to intercreditor
terms described in Exhibit D hereto), (ii) to JPM to secure
$350,000,000 of the Obligations (as defined in the Bridge Loan Agreement) (which
shall be subordinated to repayment of the Bank of America Secured Loan Amount
pursuant to intercreditor terms described on Exhibit D hereto) (the “Bridge
Secured Loan Amount”), as evidenced by the Severed Notes (as defined
below), (A) valid and enforceable second lien mortgages, deeds of trust
and deeds to secure debt (the “Bridge Loan Security Instruments”),
substantially in the Approved Security Interest Form, encumbering the Combined
Pool Properties (which shall be subordinated to the Bank of America Security
Instrument pursuant to intercreditor terms described on Exhibit D hereto),
and (B) a valid and enforceable third lien deed of trust (the “Bridge
Loan Preston Ridge Security Instrument”), substantially in the Approved
Security Interest Form, encumbering the Preston Ridge Property (which shall be
subordinated to the Bank of America Preston Ridge Security Instrument and the
deed of trust securing the Preston Ridge Facility pursuant to intercreditor
terms described on Exhibit D hereto), and (iii) to KeyBank to secure
all obligations outstanding under the KeyBank Loan Agreement (the “KeyBank
Secured Loan Amount”), valid and enforceable first lien mortgages, deeds of
trust and deeds to secure debt (the “KeyBank Security Instruments” and
collectively with the Bank of America Security Instruments, the Bank of America
Preston Ridge Security Instrument, the Bridge Loan Security Instruments and the
Bridge Loan Preston Ridge Security Instrument, the “Security Instruments”),
substantially in the Approved Security Instrument Form encumbering all
properties identified on Exhibit E hereto (collectively, the “KeyBank
Properties”); provided, however, that, simultaneously with
the delivery of the Security Instruments to the applicable U.S. Bank Group
Lender (or at the direction of such U.S. Bank Group Lender, Fidelity National
Title Insurance Company (the “Title Company”), which the Borrower shall
engage to record the Security Instruments), the Borrower shall deliver such
funds as are necessary (as determined by the applicable U.S. Bank Group Lender
in 

 

11

 

consultation with the
Borrower and the Title Company) to pay any mortgage, intangibles or other
recording taxes that may be due in connection with the recording of same; and provided,
further, that any security instrument encumbering a property located in
New York or Virginia shall state that the amount secured thereby shall be
limited to (i) in the case of the Combined Pool Properties, 100% of the
appraised value (pursuant to appraisals in the possession of the Administrative
Agent) (as reasonably determined by the applicable U.S. Bank Group Lender by
allocating the applicable secured amount among the Combined Pool Properties) of
the applicable property, and (ii) in the case of the KeyBank Properties,
100% of Gross Asset Value (as defined in the KeyBank Loan Agreement), as
reasonably determined by KeyBank (for the avoidance of doubt, Exhibit F
hereto describes certain documentation and items that are required and are not
required to be delivered by the Borrower to the applicable U.S. Bank Group
Lenders concurrently with the delivery of the Security Instruments);

 

(j)                                     the
failure by the Borrower (or any successor entity) and the Guarantors, as
applicable, to use its reasonable best efforts to cause (i) each of the
relevant Super Entities that own each of the Combined Pool Properties
(including, without limitation, Borrower) to execute and deliver, as promptly
as possible following the Execution Date (with a targeted delivery date on or
prior to March 15, 2008, but in any event subject to the March 31,
2008 date set forth in Section 3(l) below) an unconditional payment
guaranty, substantially in the form attached hereto as Exhibit G, in favor
of (A) Bank of America with respect to the Bank of America Secured Loan
Amount secured by the Bank of America Security Instruments (except for
Borrower, which is already obligated as Borrower, in respect thereof and except
to the extent such Super Entities are already Guarantors), and the Bank of
America Preston Ridge Security Instrument, respectively, and otherwise in form
and substance reasonable acceptable to the Administrative Agent (it being
understood that the Administrative Agent may request that any such guaranty be
in the same form as the  existing
Subsidiary Guarantors have previously executed), and (B) JPM with respect
to the Bridge Secured Loan Amount secured by the Bridge Loan Security
Instruments and the Bridge Loan Preston Ridge Security Instrument,
respectively, and otherwise in form and substance reasonably acceptable to the
Lender Parties and consistent with the intercreditor terms annexed as Exhibit D
hereto, and (ii) each of the Centro GA Entities that own each of the
KeyBank Properties to execute and deliver, as promptly as possible following
the Execution Date (with a targeted delivery date on or prior to March 15,
2008) an unconditional payment guaranty in favor of KeyBank with respect to the
KeyBank Secured Loan Amount secured by the KeyBank Security Instruments, and otherwise
in form and substance reasonably acceptable to KeyBank (collectively, the “Payment
Guarantees”);

 

(k)                                  the
failure by the Borrower (or any successor entity) to (i) use its
reasonable best efforts to execute and deliver to JPM, as promptly as possible
following the Execution Date (with a targeted delivery date on or in advance of
March 15, 2008, but in any event subject to the March 31, 2008 date
set forth in Section 3(l) below), with respect to each of the Notes
(under the Bridge Loan Agreement), two promissory notes evidencing the
severance of the applicable Note into one promissory note in respect of the
portion of such Note allocable to the Bridge Secured Loan Amount and an
additional 

 

12

 

promissory note in
respect of the remaining portion of such Note (collectively, the “Severed
Notes”);

 

(l)                                     the
failure by the relevant Super Entities and the relevant Centro GA Entities to
execute and deliver to each of the applicable U.S. Bank Group Lenders at the
same time, on or prior to 10:00 a.m.
(prevailing New York time) on March 31, 2008, the Security
Instruments, the Payment Guarantees and the Severed Notes (and all other
ancillary documents related thereto that are required to be delivered pursuant
to this Agreement), each of which shall have become valid, effective and
enforceable against each such Super Entity and Centro GA Entity in accordance
with their respective terms;

 

(m)                               the
failure by the Borrower to deliver an operating budget with respect to the
Super Entities covering the period from May 1, 2008 through and including September 30,
2008 (the “Subsequent Budget”) to the Lender Parties by no later than
5:00 p.m. (prevailing New York time) on April 23, 2008, which
Subsequent Budget shall be prepared in a manner consistent with historical
practices and otherwise acceptable in form and substance to the Administrative
Agent and the other Lender Parties in their reasonable discretion;

 

(n)                                 the
issuance of equity interests by any Relevant Centro Entity and/or any Super
Entity to any entity or person (other than to another Centro Entity or Super
Entity under commitments it has entered into which have been disclosed to the
Lender Parties prior to the Execution Date);

 

(o)                                 the
Borrower or any other Super Entity shall become contractually obligated to
enter into, or enters into, any guarantee pursuant to the terms of the
Australian Credit Facility, the 2005 NPA, and/or the 2007 NPA; or

 

(p)                                 the
failure by the applicable Centro Entities, on or prior to April 30, 2008,
to enter into agreements with the lenders (collectively, the “Australian
Bank/Noteholder Group Lenders”) under each of (i) the Australian
Credit Facility, (ii) the 2005 NPA, and (iii) the 2007 NPA
(collectively, the “Further Extension Agreements”), which Further
Extension Agreements shall (x) extend the corresponding scheduled maturity
date under each such facility to a date that is no earlier than September 30,
2008, (y) be in form and substance reasonably acceptable to the Lender
Parties.

 

The
Administrative Agent shall use reasonable efforts to provide written notice to
the Borrower and the other Lender Parties of the occurrence of any Trigger
Event of which it has knowledge (without any requirement of due or reasonable
inquiry); provided, however, that, notwithstanding the foregoing,
providing such written notice is not required to establish the occurrence of a
Trigger Event, and the failure by the Administrative Agent to deliver any such
written notice shall not interfere with or impair (or be deemed to interfere or
impair) in any manner whatsoever the automatic occurrence and effect of a
Trigger Event in accordance with the terms hereof.

 

4.                                       Covenants
of the Borrower and the Guarantors. The Borrower and, as applicable, the
Guarantors, each agree to comply with the following covenants at 

 

13

 

all times during the
Extension Period and upon and subsequent to the occurrence of any Trigger
Event:

 

(a)                                  the
Borrower shall provide to the Administrative Agent and the Lender Parties (i) by
no later than 5:00 p.m. (prevailing New York time) on March 7, 2008,
a revised two-year cash flow report with respect to the Super Entities in form
and substance reasonably acceptable to the Lender Parties, (ii) by no
later than 5:00 p.m. prevailing New York time on April 15, 2008, a
strategic business plan to be prepared by the Super Entities in consultation
with the financial advisor to JPM, which strategic business plan shall cover
such matters relating to the Super Entities and other U.S. entities as may be
reasonably requested by and shall be in form and substance reasonably
acceptable to the financial advisor to JPM; and (iii) by no later than
5:00 p.m. (prevailing New York time) on March 31, 2008, the Strategic
Plan (as defined in the Australian/Noteholder Bank Group Extension Agreement
pertaining to the Australian Credit Facility (as defined below)), which shall
be in form and substance satisfactory to the Administrative Agent and the
Lender Parties by the later of (A) 5:00 p.m. (prevailing New York
time) March 31, 2008 and (B) five (5) Business Days after the
same is delivered to the Administrative Agent and the other Lender Parties;

 

(b)                                 at
all times, the Borrower shall, and shall cause the Super Entities to, use cash
on hand and the proceeds of loans made under the Preston Ridge Facility in
compliance with and pursuant to the Budget and the documents evidencing the
Preston Ridge Facility, and provide to the Lender Parties, on an ongoing basis,
(A) weekly cash flow forecasts for each of the Borrower, Super and Centro
NP Residual Holding LLC, each on a consolidated basis, covering consecutive
thirteen-week periods, with the first such forecast to (x) relate to the
thirteen-week period commencing on the Execution Date, and (y) be provided to the
Lender Parties by no later than 5:00 p.m. (prevailing New York time) on February 26,
2008, (B) weekly analyses reflecting actual disbursements versus budgeted
expenditures of the Borrower, on a consolidated basis, with the first such
analysis to (x) relate to the one-week period commencing on the Execution
Date, and (y) be provided to the Lender Parties by no later than 5:00 p.m.
(prevailing New York time) on February 26, 2008, (C) the most recent
quarterly and monthly financial statements for the Borrower, on a consolidated
basis, including, without limitation, balance sheets and statements of income,
in each case in reasonable detail and prepared in a manner consistent with
historical reporting practices, and (D) the most recent organizational
chart for the Super Entities and the Centro Entities, updated monthly,
detailing ownership of assets by legal entity in reasonable detail (which
detail shall include, but not be limited to, explanatory annotations
describing, among other things, any material changes to the organizational
structure of the Super Entities and the Centro Entities as compared to the
organizational structure depicted on the most recently provided organizational
chart) and in form and substance satisfactory to the Lender Parties, (the
materials provided for in clauses (C) and (D) above shall be provided
to the Administrative Agent as promptly as possible after such materials are
completed by the applicable Super Entities and the Centro Entities, and in any
event, in the case of clause (C), within twenty-eight (28) days after the end
of each monthly period and forty-five (45) days after the end of each quarterly
period, and in the case of clause (D), within twenty-eight (28) days after the
end of each monthly period);

 

14

 

(c)                                  the
Borrower and the Guarantors shall, and shall cause each of the Centro Entities
and the Super Entities to, at all times cooperate fully with the Lender Parties
and their respective agents and professionals (legal and financial), including,
without limitation, in connection with any financial review or appraisal of the
businesses, assets or financial condition of the Super Entities and/or the
Centro Entities, and to provide such Lender Parties and their agents and
professionals with all reasonably requested information, in all cases at the
expense of the Super Entities, including any reports (including cash flow
reports and forecasts and related analyses) or other due diligence provided by
the Centro Entities to the Australian Bank/Noteholder Group Lenders in
accordance with the Australian/Noteholder Bank Group Extension Agreements (as
defined below) or otherwise provided to the advisors to such lenders during the
Extension Period;

 

(d)                                 upon
the prior request of any Lender Party, the Borrower and the Guarantors shall
grant such Lender Party and its professionals (including, without limitation,
its lawyers, accountants and appraisers) during business hours reasonable
access to, and shall as promptly as practical schedule meetings and conference
calls with, management personnel and any financial advisors or restructuring
consultants retained by the Centro Entities and/or the Super Entities, it being
understood and agreed that the obligations of the Borrower and the Guarantors
under this Section 4(d) shall survive any expiration or termination
of this Agreement;

 

(e)                                  except
as expressly set forth herein or with the prior consent of all of the Lender
Parties, the Borrower and the Guarantors each agree that it shall not make, and
shall cause each of (i) the Super Entities, as applicable, not to make,
any principal payments (including, without limitation, any voluntary payment in
respect of interest) on account of any obligations arising during the Extension
Period in respect of any indebtedness due or owing to any person (other than
the Lender Parties), except to make (A) payments provided for in Section 3(f) hereof,
(B) payments provided for in the proviso set forth in clause (ii) of Section 2(a) hereof,
(C) payments provided in Section 2(b) hereof, (D) payments
required under the loan agreement and documents comprising the Preston Ridge
Facility, and/or (E) in connection with any refinancing of existing
indebtedness provided that the aggregate amount of secured indebtedness
associated with any such new financing, exclusive of any costs and expenses
associated with such refinancing, is not in excess of the principal amount of
the loan being repaid with such proceeds; and (ii) the Centro Entities, as
applicable, not to make any principal payments on account of the Australian
Credit Facility, the 2005 NPA, and/or the 2007 NPA; provided that the
applicable Centro Entities shall be permitted to make “Permitted Payments”, as
such term is defined in the Australian Bank/Noteholder Group Extension Deeds,
excluding any principal payments in respect of the Australian Credit Facility,
the 2005 NPA and/or the 2007 NPA under clause (b) thereof, required to be
made by the applicable Centro Entities;

 

(f)                                    except
as expressly set forth herein and other than (i) Permitted Encumbrances
(excluding subparagraphs (g) and (l) thereof) and (ii) liens and
security instruments granted to a lender providing financing that is to be
secured by a property that is then encumbered, provided that any such liens
relate to the property that is the 

 

15

 

subject of any such new
financing, and the aggregate amount of secured indebtedness associated with any
such new financing (exclusive of any costs and expenses relating to such new
financing) is not in excess of the principal amount of the loan being repaid
with such proceeds, or with the prior written consent of all of the Lender
Parties, the Borrower and the Guarantors each agree, and to cause each of the Super
Entities, not to grant, suffer the imposition of or permit (whether voluntary
or involuntary), any liens or security interests upon any of its respective
assets or property of any nature whatsoever in favor of any person, entity,
partnership, corporation or creditor (other than the Lender Parties);

 

(g)                                 except
as expressly set forth herein, each Guarantor shall cause its proportionate
share of the net proceeds resulting from any sale, merger, consolidation,
refinancing, equity or debt issuance, recapitalization, restructuring or other
monetization event of any nature relating to any of its direct or indirect
subsidiaries to be distributed to such Guarantor and held by such Guarantor in
a segregated account, provided that each such Guarantor shall not withdraw any
funds from such segregated account until such Guarantor, the U.S. Bank Group
Lenders and the Australian Bank/Noteholder Group Lenders agree as to the manner
in which such net proceeds are to be applied; provided, however,
that the proceeds received by CPT which are to be deposited into a segregated
account and which relate to its equity notes or units which have been
encumbered as of the Effective Date under a mortgage in favor of Australia &
New Zealand Banking Group Limited as security for the facility referred to in
point 1 of Part A of Schedule 2 of the amended and restated extension deed
for the Australian Credit Facility dated as of the Execution Date shall be
reduced by any amounts due and owing on account of the obligations secured by
such mortgage; provided, further, references to the net proceeds
received by any Guarantor under this Section 4(g) are to proceeds
received by such Guarantor after the application of all outstanding
indebtedness (including, but not limited to, contingent and non-contingent
liabilities and indebtedness owed on account of existing guaranty obligations)
owed by (i) the applicable subsidiary effectuating the relevant
monetization event as referred to above, and (ii) entities holding direct
and/or indirect interests in such subsidiary;

 

(h)                                 the
Centro Parties each agree, and agree to cause each of the Relevant Centro
Entities, not to pay or disburse any cash in connection with the exercise of
the Existing Put Options (as defined in the amended and restated extension deed
for the Australian Credit Facility dated as of the Execution Date);

 

(i)                                     [intentionally
omitted];

 

(j)                                     in
respect of the revolving credit facility evidenced by the KeyBank Loan
Agreement, the parties thereto hereby agree that all unused revolving credit
commitments under the KeyBank Loan Agreement shall terminate and the Super
Entities shall no longer be permitted to borrow (or repay and reborrow) any
additional funds or obtain new letters of credit thereunder as of the date on
which this Agreement becomes effective, it being understood and agreed that
such termination shall survive the expiration or termination of this Agreement;
provided, however, that the applicable 

 

16

 

Centro GA Entities may
renew outstanding letters of credit under the KeyBank Loan Agreement from time
to time;

 

(k)                                  except
as expressly set forth herein or with the consent of the Lender Parties, the
Borrower and the Guarantors each agree that, during the Extension Period, it
shall not enter into or consummate, and shall cause each of the Super Entities
not to enter into or consummate, any transaction outside of the ordinary course
of business (including, without limitation, intra-company transactions), and
the Borrower agrees that it shall not incur, and shall cause each of the Super
Entities, (i) not to incur any indebtedness not permitted by the terms of
the Loan Agreement, in each case other than transactions as to which the Lender
Parties have provided prior written consent, or (ii) with respect to any
Super Entity that is or will be party to the Security Instruments and the
Payment Guarantees, not to incur any funded indebtedness (other than in respect
of the Preston Ridge Facility) or to transfer any real property owned by such
Super Entity that is intended to be encumbered by the Security Instruments
prior to such encumbrances being made;

 

(l)                                     the
Borrower and the Centro Parties shall (i) provide the Lender Parties with
updates on the progress of negotiations in respect of all material transactions
contemplated by the Centro Entities to refinance or restructure any outstanding
indebtedness, and (ii) notify the Lender Parties with respect to the
occurrence of a Trigger Event promptly after becoming aware of the existence of
any circumstances giving rise to such Trigger Event; and

 

(m)                               Notwithstanding anything to the contrary contained herein, each “Borrower,”
each member of the “Group,” each “Controlled Entity” and each of the “Super
Entities” and “Centro GA Entities” (each as defined in the extension deed in
respect of the Australian Credit Facility (as defined in the Bridge Loan
Agreement) and dated on or about the date hereof), collectively, the “Company” and each a “Company Entity”) shall not consummate any sale, assignment or
disposition of any real property interest or equity interest owned by such
Company Entity, or raise additional new equity or capital, or engage in any
refinancing transaction that results in proceeds in an amount in excess of the
original debt (exclusive of costs and expenses relating to such refinancing)
prior to April 30, 2008; provided, however, that to the
extent any property owned by a Company Entity is subject to a binding contract
of sale as of the Execution Date, the applicable Company Entity shall be permitted
to consummate the sale, assignment, or disposition of such property in
accordance with the terms of such contract of sale (each, a “Permitted
Property Sale”). All proceeds generated from any Permitted Property Sale
shall be retained and held by the Company Entity that sold, assigned or
disposed of the applicable property, and no portion of such proceeds shall be
transferred to any other entity or person prior to April 30, 2008.

 

5.                                       Undertakings
of the Lender Parties.

 

(a)                                  The
commitment of the Lender Parties under the Loan Agreement (as modified by this
Agreement) shall terminate upon termination or expiration of the Extension
Period.

 

17

 

(b)                                 Except
as expressly permitted herein, each of the Lender Parties agrees that, during
the Extension Period, it shall not declare any Event of Default under the Loan
Agreement in respect of any condition existing or circumstances giving rise to
an Event of Default that arose prior to the Effective Date.

 

(c)                                  Each
of the Lender Parties hereby consents to, and waives any Event of Default or
Trigger Event that might otherwise arise as a result of, (i) the execution
and delivery by Centro Super Residual 1 LLC (“Residual 1”) of a certain
Allonge to the existing Super LLC Subordinated
Intercompany Note, dated as of August 2, 2007, made by the Borrower to
Residual 1 pursuant to which such note is transferred to Centro Super
Residual 2 LLC (“Residual 2”),
such Allonge to be in the form attached in Exhibit H hereto, and (ii) the
execution and delivery by of the Borrower and Residual 2 of a certain
Amended and Restated Super LLC Subordinated Intercompany Note, in the original
principal amount of $26,500,000 (but under which $25,000,000 remains
outstanding), which amended and restated
note amends and restates the note referred to in the foregoing clause (i) in
its entirety, such amended and restated note to be in the form attached in Exhibit H
hereto.

 

(d)                                 Each of the Lender
Parties hereby consents to, and waives any Event of Default or Trigger Event
that might otherwise arise as a result of, the BoA Indebtedness and the
applicable documentation related thereto, including the BoA Guarantees, as such
terms are defined in the Australian Bank/Noteholder Group Extension Agreement
related to the Australian Credit Facility.

 

(e)                                  Each
Lender Party agrees to provide information and cooperate as reasonably
requested by the Borrower in connection with the Borrower’s obligations under
this Agreement to provide the Security Instruments, Payment Guarantees and the
Severed Notes, in each case at the Borrower’s sole cost and expense.

 

(f)                                    Each Lender
Party agrees and acknowledges that if a Collateral Non-Compliance Certificate
(as defined in the letter agreement dated as of the date hereof with respect to
the Bridge Loan Agreement (the “Super Extension Agreement”)) is timely
delivered in accordance with Section 4(i) of the Super Extension
Agreement, the Security Instruments, the Payment Guarantees, and any other
security interest granted or as contemplated by Section 3(i) (and all
other ancillary documents related thereto), in each case to which the Lender
Parties become parties by reason of the transactions contemplated hereby, shall
be automatically, unconditionally and absolutely released, discharged and
terminated and shall be null and void ab  initio effective from
the date on which the Collateral Non Compliance Certificate is delivered. Each
Lender Party makes this agreement and acknowledgment in consideration for the
agreement by the Australian Bank/Noteholder Group Lenders to allow the
automatic release of the Category 2 Additional Guarantees as set forth in Section 4(i) of
the Super Extension Agreement. Each Lender Party agrees to take all actions
reasonably required by the Borrower (at the Borrower’s sole cost and expense)
to effect the release, discharge and termination of the liens and guarantees as
contemplated in the immediately preceding sentence. The Lender Parties agree
that the Australian Bank/Noteholder Group Lenders are intended to benefit from
this section 5(f).

 

18

 

(g)                                 The
Administrative Agent acknowledges and agrees, on behalf of the Lender Parties,
not to accept any of the Security Instruments, Severed Notes, or Payment
Guarantees to which it is a party, unless and until, after reasonable inquiry,
it receives confirmation from JPM and KeyBank, respectively, that Super and the
relevant entities related to the Bridge Loan Agreement and the relevant
borrowers have delivered the Security Instruments and Payment Guarantees to be
provided to JPM and KeyBank pursuant to Section 3(i) hereof.

 

6.                                       No
Waiver of Rights or Remedies; No Post-Bankruptcy Applicability. Each of the
Lender Parties and each of the Super Entities agrees that other than as
expressly set forth herein, nothing in this Agreement or the performance by the
parties of their respective obligations hereunder (a) constitutes or shall
be deemed to constitute a waiver of any of the parties’ rights or remedies
under the terms of the Loan Documents or applicable law, all of which are
hereby reserved, including, without limitation, all rights and remedies in
connection with any bankruptcy, administration or receivership proceedings in
respect of a Super Entity or a Centro Entity (in each case, as to which the
Extension Period provided for herein shall automatically terminate) or (b) shall
modify, impair or limit any of the rights of any Lender Party, whether pursuant
to the Loan Documents, at law, in equity or otherwise. Upon termination of the
Extension Period, all defaults and Events of Default in existence under the
Loan Agreement shall be in effect without further action or notice, and the
Lender Parties reserve their rights thereafter to pursue all rights and
remedies available under the Loan Documents and applicable law.

 

7.                                       Acknowledgements,
Representations and Agreements of the Borrower and the Guarantors.

 

(a)                                  The
Borrower and the Guarantors each understand the temporary nature of the
provisions of this Agreement, and acknowledge and agree that no Lender Party
has any obligation to expand or extend any of the terms hereof.

 

(b)                                 The
Borrower and the Guarantors each agree that they will provide prompt notice to
each of the Lender Parties of (i) any event that constitutes grounds for
the termination of this Agreement within one (1) Business Day of receipt
of becoming aware of any such grounds, and (ii) any written notice of
default received by any Super Entity or Centro Entity from any lender party to
any loan agreement or other material financing agreement, within three (3) Business
Days of actual receipt of written notice of such event that would have a
material adverse effect on the business or financial affairs of the Centro
Entities or the Super Entities, in each case taken as a whole.

 

(c)                                  Except
as provided herein, the Borrower and the Guarantors each agree that no
dividends or distributions shall be made by the Super Entities in respect of
their respective ownership interests, and no purchase, redemption, sinking fund
or 

 

19

 

retirement of such
ownership interests or of any warrants, options, or other rights with respect
to such ownership interests; provided, however, that the Super
Entities shall be entitled to redeem up to $750,000 of Class A preferred
units during the Extension Period to the extent redemption is required pursuant
to the underlying documentation evidencing such Class A preferred units.

 

(d)                                 The
Borrower and the Guarantors each hereby acknowledge, confirm and agree that (i) it
has no grounds for disputing the validity or enforceability of the Loan
Documents or any of its Obligations thereunder, or the validity, priority,
enforceability or extent of the Lender Parties’ security interest in or lien
against any item of collateral thereunder in any judicial, administrative, or
other proceeding, either during or following the termination or expiration of
the Extension Period, and (ii) the Lender Parties have and shall continue
to have valid, enforceable and perfected first priority liens upon and security
interests in the collateral previously granted to the Lender Parties pursuant
to the Loan Documents and related agreements.

 

(e)                                  [intentionally
omitted]

 

(f)                                    The
Borrower and the Guarantors each hereby acknowledge that (A) time is of
the essence with respect to the satisfaction of all of their respective
obligations under this Agreement, including, without limitation, their
respective obligations under subclauses (i), (j) and (k) of Section 3
hereof, the execution and delivery of the Security Instruments, the Severed
Notes and the Payment Guarantees by the applicable Super Entities and the grant
of the Additional Guarantees and the Further Additional Guarantees subject to
and in accordance with the terms and conditions set forth in Section 4(i) hereof,
and (B) the acknowledgements of the Borrower and the Guarantors as set
forth in clause (A) of this Section are material inducements to the
Lender Parties’ willingness to enter into this Agreement.

 

(g)                                 The
Borrower and the Guarantors each hereby represent and warrant that the
execution and delivery of the Security Instruments (and certain related
deliveries required to be provided, as set forth on Exhibit F
hereto), the Severed Notes and the Payment Guarantees, and the performance of
all obligations of the applicable Super Entities and/or the Centro Entities
party thereto including, without limitation, the payment by Borrower of all
mortgage and related tax obligations associated with the Security Instruments,
in each case as contemplated by this Agreement, shall not contravene, result in
any breach of, or constitute a default under any existing contractual or other
obligation of any of the Super Entities and/or the Centro Entities.

 

(h)                                 The
Borrower hereby acknowledges and agrees that, upon execution and delivery
thereof, the Security Instruments and the Payment Guarantees (to the extent
required to be delivered to the Lender Parties) shall be deemed to be Loan
Documents. The Borrower further acknowledges and agrees that it shall cause the
Super Entities to comply with the terms of the Security Instruments and such
Payment Guarantees, and that any material failure to perform or breach of its
obligations thereunder, or any repudiation of any Loan Document, shall
constitute an Event of Default.

 

20

 

(i)                                     The
Borrower agrees to provide promptly (and in any event, within one (1) Business
Day after receipt) to each of the U.S. Bank Group Lenders and the Australian
Bank/Noteholder Group Lenders a copy of any Collateral Non-Compliance
Certificate received by it.

 

8.                                       Representations
and Warranties by All Parties.  Each
of the parties hereto hereby represents and warrants that each of the following
statements is true, accurate and complete as to such party as of the Execution
Date:

 

(a)                                  such
party has carefully read and fully understood all of the terms and conditions
of this Agreement;

 

(b)                                 such
party has consulted with, or had a full and fair opportunity to consult with,
an attorney regarding the terms and conditions of this Agreement;

 

(c)                                  such
party has had a full and fair opportunity to participate in the drafting of
this Agreement;

 

(d)                                 such
party is freely, voluntarily, knowingly and intelligently entering into this
Agreement;

 

(e)                                  in
entering into this Agreement, such party has not relied upon any representation,
warranty, covenant or agreement not expressly set forth herein and in the Loan
Agreement and other documents delivered in connection therewith;

 

(f)                                    this
Agreement has been duly authorized and validly executed and delivered by such
party and constitutes each such party’s legal, valid and binding obligation,
enforceable in accordance with its terms;

 

(g)                                 each
party is executing this Agreement and agreeing to be bound on account of the
Loan Agreement; and

 

(h)                                 such
party is duly organized, validly existing and in good standing under the laws
of its jurisdiction of formation and has the full power and legal authority to
execute this Agreement, consummate the transactions contemplated hereby, and
perform its obligations hereunder.

 

9.                                       Release.  In consideration of the time and effort to be
expended by each of the Lender Parties in connection with the matters described
in this Agreement, the grant of the relief provided for hereunder and other
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the Borrower and each of the Guarantors, the Borrower and each
of the Guarantors, each on behalf of itself and the other Super Entities and
Centro Entities, respectively, and its and their respective present and former
agents, principals, officers, directors, employees, attorneys, subsidiaries,
parents, affiliated entities and predecessor and successor firms (collectively,
the “Releasors”), each hereby irrevocably and unconditionally releases
and forever discharges each Lender Party, its respective affiliates and the
officers, directors, employees, agents and advisors of each Lender Party and
its respective affiliates 

 

21

 

(collectively, the “Indemnified Parties”) from any and all
claims (“Claims”, which shall be defined to include actions, causes of
action, rights, debts, obligations, damages, liabilities, losses, liens, fees,
costs, expenses, assertions of lost revenues or business opportunities,
controversies, promises, and demands) in law or at equity, known or unknown,
ascertained or not ascertained, suspected or unsuspected, that the Releasors
ever had, now have, or shall or may have, solely to the extent such Claims
arise in connection with or concern any discussions, meetings or information
exchange contemplated under the Loan Agreement and/or this Agreement through
the Execution Date.  The provisions set
forth in this Section 9 shall survive any termination or expiration of
this Agreement.

 

10.                                 Indemnification.  This Agreement and the transactions
contemplated under this Agreement shall constitute part of the Loan Agreement
for purposes of indemnification and the indemnification provisions provided
therein shall extend to this Agreement
and the transactions contemplated hereunder. 
The provisions of this Section 10 shall not limit the
indemnification rights of any party under the Loan Agreement.

 

11.                                 Reaffirmation of Guarantee Obligations by the
Guarantors.  Each Guarantor hereby unconditionally
reaffirms its respective continuing guaranty obligations to the Administrative
Agent and the Lenders under the applicable Guaranty and agrees that the
transactions contemplated by this Amendment shall not in any way affect the
validity and enforceability of such guaranties or the Loan Documents or the
applicable Guaranty or reduce, impair or discharge their obligations
thereunder.

 

12.                                 Sharing of Information.  The Borrower and the Guarantors each agree to
allow each of the Lender Parties to participate in conversations and meetings
and exchange confidential information regarding any of the Centro Entities
and/or the Super Entities (including without limitation, relating to
transactions and potential transactions under the Loan Agreement and/or other
material financing agreements, or the business, operations, financial condition
or prospects of the Centro Entities and/or the Super Entities) with each of the
other Lender Parties, any other lender to the Centro Entities and/or the Super
Entities, any advisors to any of the Centro Entities and/or the Super Entities,
and/or any other entities or persons participating in or contemplating
transactions with any Centro Entity and/or Super Entity.  All such conversations and meetings and
exchanges of confidential information shall be subject to Section 11.16 of
the Loan Agreement, as modified by the immediately preceding sentence.

 

13.                                 Counterparts.  This Agreement
may be executed in one or more counterparts and by different parties hereto on
separate counterparts, each of which, when so executed, shall constitute one
and the same agreement.

 

14.                                 Effectiveness;
Conditions Precedent.

 

(a)                                  This
Agreement shall become effective upon the date that the parties hereto execute
and deliver signature pages to this Agreement.

 

22

 

(b)                                 The
following items shall be conditions precedent to the effectiveness of this
Agreement:  (i) each U.S. Bank Group
Lender (other than the Lender Parties) shall have executed and delivered to the
applicable Super Entities and/or Centro Entities an agreement (such agreements, collectively, the “Other
U.S. Bank Group Extension Agreements”, each of which Other U.S. Bank Group
Extension Agreements is annexed hereto as Exhibit I and Exhibit J,
respectively) containing terms and conditions substantially similar in
all material respects to this Agreement (which, for the avoidance of doubt,
shall extend the maturity dates of such other loan obligations to at least September 30,
2008), in each case in form and substance satisfactory to the Administrative
Agent in all material respects; (ii) each
Australian Bank/Noteholder Group Lender shall have executed and delivered to
the applicable Centro Entities an agreement (such agreements, collectively, the
“Australian Bank/Noteholder Group Extension Agreements” and collectively
with the U.S. Bank Group Extension Agreements, the “Other Bank/Noteholder
Group Extension Agreements”, each of which Other Bank/Noteholder Group
Extension Agreements is annexed hereto as Exhibit K and Exhibit L,
respectively)) containing terms and conditions substantially similar in all
material respects to this Agreement (which, for the avoidance of doubt, shall
extend the maturity dates of such other loan obligations to at least April 30,
2008), in each case in form and substance satisfactory to the Administrative
Agent in all material respects; and (iii) the Centro Entities and the Super Entities shall have
delivered such other documents, instruments and agreements as the
Administrative Agent may reasonably request (it being acknowledged that clauses
(i), (ii) and (iii) shall be satisfied upon delivery by each
U.S. Bank Group Lender (other than the Lender Parties) and each Australian Bank/Noteholder Group Lender of
its executed signature pages to the applicable documents).

 

15.                                 Successors; Assigns.  This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective successors and permitted assigns.

 

16.                                 Severability.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

 

17.                                 Exculpation.  The person signing this
Agreement on behalf of Borrower is signing strictly in his/her corporate
capacity and not in an individual capacity. 
The Lender Parties shall not assert, seek or obtain, and there shall be
no personal liability against the person signing this Agreement, other than
with respect to, or arising by virtue of, fraud, intentional misstatement or
gross mismanagement.

 

18.                                 GOVERNING LAW.  THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

19.                                 SUBMISSION
TO JURISDICTION; DESIGNATION OF AGENT FOR RECEIPT OF SERVICE OF PROCESS.  THE BORROWER AND THE GUARANTORS AND THE
LENDER PARTIES EACH AGREE TO SUBMIT TO THE 

 

23

 

NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
LOCATED IN THE BOROUGH OF MANHATTAN AND THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY OR ON BEHALF OF EITHER PARTY WITH RESPECT TO ANY MATTER WHATSOEVER
RELATING TO OR ARISING OUT OF THE MATTERS CONTEMPLATED BY THIS AGREEMENT.  IN ADDITION, EACH GUARANTOR FURTHER AGREES TO
DESIGNATE THE BORROWER AS AGENT FOR RECEIPT OF SERVICE OF PROCESS ON BEHALF OF
EACH GUARANTOR, AND TO WAIVE ANY CLAIM OR DEFENSE BASED ON THE ACCEPTANCE OF
SERVICE ON ITS BEHALF BY THE BORROWER.

 

20.                                 WAIVER
OF TRIAL BY JURY.  THE BORROWER, THE
GUARANTORS AND THE LENDER PARTIES EACH HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE (TO THE EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT
AND AGREE THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A
JURY.

 

21.                                 Loan
Documents.  This Agreement shall
constitute an amendment to the Loan Agreement, and shall be deemed to be a Loan
Document.  Nothing contained herein shall
be deemed to modify, alter, amend or revise any term, condition or provision of
the Loan Agreement except as specifically set forth herein.  On and after the Effective Date, each
reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”
or words of like import referring to the Loan Agreement, and each reference in
the other Loan Documents to the “Loan Agreement”, “thereunder”, “thereof” or words
of like import referring to the Loan Agreement shall mean and be a reference to
the Loan Agreement as amended hereby.

 

22.                                 Amendments
and Waivers.  Any amendment or waiver
of this Agreement shall not be effective unless in a writing signed by the
parties hereto.

 

24

 

	
  BORROWER:

  	
  CENTRO
  NP LLC, a Maryland limited liability company  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  	
  NEW PLAN REALTY TRUST, LLC a Delaware limited

  liability company  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXCEL REALTY TRUST - ST, LLC, a Delaware limited
  liability company  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NEW PLAN FLORIDA HOLDINGS, LLC, a Delaware
  limited liability company  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CA NEW PLAN ASSET PARTNERSHIP IV, L.P., a
  Delaware limited partnership  

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CA New Plan Asset, Inc., a Delaware
  corporation, its sole general partner 

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  	 

	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXCEL REALTY TRUST-NC, a North Carolina general
  partnership  

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NC Properties #1 Inc., a Delaware corporation, its
  managing partner 

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
																		

 

25

 

	
   

  	
  NP OF TENNESSEE, L.P., a
  Delaware limited partnership  

  
	
   

  	
   

  
	
   

  	
  By:

  	
  New Plan of
  Tennessee, Inc., a Delaware corporation, its sole general partner 

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  POINTE ORLANDO DEVELOPMENT COMPANY, a California
  general partnership 

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  ERT Development Corporation, a Delaware corporation,
  general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  ERT Pointe Orlando, Inc., a New York
  Corporation, general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President 

  
	
   

  	
   

  	
   

  
	
   

  	
  CA NEW PLAN TEXAS ASSETS, L.P., a Delaware
  limited partnership  

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CA New Plan Floating Rate SPE, Inc., a Delaware
  corporation, its sole general partner 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HK NEW PLAN EXCHANGE PROPERTY OWNER I, LLC, a
  Delaware limited liability company  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  HK NEW PLAN EXCHANGE PROPERTY OWNER II, L.P., a
  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  HK New Plan Lower Tier OH, LLC, a Delaware limited

  
	
   

  	
  liability company, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
																		

 

26

 

	
   

  	
  NEW PLAN OF ILLINOIS, LLC, a Delaware limited
  liability company  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name:

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW PLAN PROPERTY HOLDING COMPANY, a Maryland
  real estate investment trust  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW PLAN OF MICHIGAN, LLC, a Delaware limited
  liability company  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW PLAN EXCEL REALTY TRUST, INC., a Maryland

  corporation  

  
	
   

  	
  By: 

  	
  /s/ John Hutchinson 

  
	
   

  	
  Name: 

  	
  John Hutchinson 

  
	
   

  	
  Title: 

  	
  Vice President

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  CENTRO PROPERTIES LIMITED  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Brian Healey

  
	
   

  	
  Name: 

  	
  Brian Healey

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Elizabeth Hourigan 

  
	
   

  	
  Name: 

  	
  Elizabeth Hourigan 

  
	
   

  	
  Title: 

  	
  Company Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CPT MANAGER LIMITED, as Responsible Entity of
  the Centro Property Trust  

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Brian Healey

  
	
   

  	
  Name: 

  	
  Brian Healey

  
	
   

  	
  Title: 

  	
  Director

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  By: 

  	
  /s/ Elizabeth Hourigan

  
	
   

  	
  Name: 

  	
  Elizabeth Hourigan 

  
	
   

  	
  Title: 

  	
  Company Secretary

  
																	

 

27

 

	
  CONSENTED AND AGREED TO

  	
   

  
	
  THIS 14th
  DAY OF FEBRUARY, 2008:

  	
   

  
	
   

  	
   

  
	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Michael W. Edwards

  	
   

  
	
  Name:
  Michael W. Edwards

  	
   

  
	
  Title:
  Senior Vice President

  	
   

  
			

 

28

 

Exhibit A

 

Initial Budget

 

29

 

Exhibit B

 

Released Guarantees and Additional Guarantees

 

 

Exhibit C

 

Combined Pool Properties

 

 

Exhibit D

 

Intercreditor Terms

 

 

Exhibit E

 

Key Bank Properties 

 

 

Exhibit F

 

Deliverables in Connection with Security
Instruments

 

1.               Assignment
of Leases (in form to be agreed upon and only where necessary) and UCC’s will
be provided and recorded/filed

 

2.               Legal
opinions as to due execution, legal authority and other customary opinions with
respect to corporate formalities will be provided

 

3.               Current
organizational documents pertaining to the Super Entities that own the
properties to be encumbered

 

4.               Copies
of existing diligence items including, but not limited to, existing property
surveys and title policies, will be provided

 

5.               Legal
opinions as to enforceability under law of the states in which the applicable
mortgaged properties are located will not be required

 

6.               Title
insurance will not be provided

 

7.               Updated
appraisals and reliance letters will not be required

 

8.               Updated
environmental and engineering reports and reliance letters will not be required

 

9.               Updated
Surveys will not be required

 

10.         Tenant
Estoppel Certificates and SNDA’s will not be required

 

11.         Updated
zoning reports will not be required

 

12.         UCC
searches will not be required

 

13.         No
property transfers or single purpose bankruptcy remote owner entities will be
required

 

14.         Non-consolidation
opinions and bankruptcy remoteness will not be required

 

 

Exhibit G

 

Form of Payment Guarantee

 

 

Exhibit H

 

Allonge and Amended and Restated Note (Preston
Ridge)

 

 

Exhibit I

 

Extension Agreement Related to Bridge Loan
Agreement

 

 

Exhibit J

 

Extension Agreement Related to KeyBank Facilities

 

 

Exhibit K

 

Extension Agreement Related to Australian Credit
Facility

 

 

Exhibit L

 

Extension Agreement Related to 2005 NPA and 2007
NPA

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