Document:

Exhibit
10.20

 

LEASE

 

between

 

TWO TWENTY TWO BERKELEY
VENTURE, as LANDLORD

 

and

 

HOUGHTON MIFFLIN COMPANY,
as TENANT

 

 

Dated as of December 16,
1991

 

 

BASIC LEASE INFORMATION

 

	
  Date:

  	
   

  	
  December 16, 1991

  	 

	
   

  	
   

  	
   

  	 

	
  Tenant:

  	
   

  	
  Houghton Mifflin Company

  	 

	
   

  	
   

  	
   

  	 

	
  Address:

  	
   

  	
  One Beacon Street

  Boston, MA 02108

  	 

	
   

  	
   

  	
   

  	 

	
  Landlord:

  Address:

  	
   

  	
  Two Twenty Two Berkeley Venture

  c/o Hines Interests Limited Partnership

  500 Boylston Street, Suite 1800

  Boston, MA 02116

  	 

	
   

  	
   

  	
   

  	 

	
  Location of Leased

  	
   

  	
  Floors three (3) through eleven (11), as Premises:

  shown on Exhibit A, of the Building located

  on the Land described in Exhibit A-1

  	 

	
   

  	
   

  	
   

  	 

	
  Net Rentable Area:

  	
   

  	
  263,923 square feet

  	 

	
   

  	
   

  	
   

  	 

	
  Term Commencement Date:

  	
   

  	
  March 1, 1992

  	 

	
   

  	
   

  	
   

  	 

	
  Scheduled Completion Date:

  	
   

  	
  March 1, 1993

  	 

	
   

  	
   

  	
   

  	 

	
  Estimated Outside

  Completion Date:

  	
   

  	
  December l, 1993

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Scheduled Rent

  Commencement Date:

  	
   

  	
  March 1, 1994

  	 

	
   

  	
   

  	
   

  	 

	
  Term Expiration Date:

  	
   

  	
  The thirteenth (13th) anniversary of the

  Rent Commencement Date

  	 

	
   

  	
   

  	
   

  	 

	
  Options to Extend Term:

  	
   

  	
  Either  (A)

  	
  One (1) two year option

  
	
   

  	
   

  	
  or

  	
   

  
	
   

  	
   

  	
  (B)

  	
  One (1) five year option,

  and one (1) subsequent option

  for, as determined by

  Landlord pursuant to Section

  9.01, either five years or

  ten years

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Base Rent

  	
   

  	
  Years 1 - 10: $12.27 per square foot per

  year of Net Rentable Area leased

  Years 11 - 15: $15.55 per square foot per year

  of Net Rentable Area leased

  	 

 

2

 

	
  Tenant’s Proportionate

  	
   

  	
  The ratio, expressed as a percentage, of the Net
  Share:

  Rentable Area of the Leased Premises to the

  greater of (i) ninety-five percent (95%) of the

  total Net Rentable Area of the Office Section,

  or (ii) the Total Leased Net Rentable Area. As

  of the date of this Lease, based on 95% of the

  total Net Rentable Area of the Office Section,

  the Tenant’s Proportionate Share is 58.67%

  

 

3

 

INDEX

 

	
  SECTION

  NUMBER

  	
   

  
	
   

  	
  Basic Lease Information

  
	
   

  	
  Schedule of Exhibits

  
	
   

  	
  ARTICLE
  l.   LEASE

  
	
   

  	
   

  
	
  1.01

  	
  Lease

  
	
   

  	
  ARTICLE
  2.   TERM; USE; RENT

  
	
   

  	
   

  
	
  2.01

  	
  Term

  
	
  2.02

  	
  Use

  
	
  2.03

  	
  Rent

  
	
  2.04

  	
  Operating Cost

  
	
  2.05

  	
  Impositions

  
	
  2.06

  	
  Computation
  of Operating Cost and Impositions

  
	
   

  	
   

  
	
  2.07

  	
  Adjustment
  for Variation Between Estimated and Actual Operating Cost and Impositions

  
	
   

  	
   

  
	
  2.08

  	
  Notice of Adjustments

  
	
  2.09

  	
  Operating Cost for 1994

  
	
   

  	
  ARTICLE
  3.   LANDLORD’S COVENANTS

  
	
   

  	
   

  
	
  3.01

  	
  Basic Services

  
	
  3.02

  	
  Extra Services

  
	
  3.03

  	
  Graphics and Signage

  
	
  3.04

  	
  Repair Obligation

  
	
  3.05

  	
  Peaceful Employment

  
	
  3.06

  	
  Restricted Uses

  

 

4

 

	
  SECTION

  NUMBER

  	
   

  
	
   

  	
  ARTICLE
  4.   TENANT’S COVENANTS

  
	
   

  	
   

  
	
  4.01

  	
  Construction of
  Tenant Improvements

  
	
  4.02

  	
  Taxes on Personal Property

  
	
  4.03

  	
  Repairs by Tenant

  
	
  4.04

  	
  Waste

  
	
  4.05

  	
  Assignment or Sublease

  
	
  4.06

  	
  Alterations and Surrender

  
	
  4.07

  	
  Compliance
  with Laws and Insurance Standards

  
	
  4.08

  	
  Entry for Repairs and
  Leasing

  
	
  4.09

  	
  No Nuisance

  
	
  4.10

  	
  Subordination

  
	
  4.11

  	
  Estoppel Certificate

  
	
  4.12

  	
  Tenant’s Remedies

  
	
  4.13

  	
  Rules and Regulations

  
	
  4.14

  	
  Personal Property at
  Tenant’s Risk

  
	
  4.15

  	
  Payment of Landlord’s
  Expenses

  
	
  4.16

  	
  Window Coverings

  
	
   

  	
  ARTICLE
  5. CASUALTY and EMINENT DOMAIN

  
	
   

  	
   

  
	
  5.01

  	
  Casualty Insurance

  
	
  5.02

  	
  Liability Insurance

  
	
  5.03

  	
  Tenant’s Insurance

  
	
  5.04

  	
  Indemnity and Exoneration

  
	
  5.05

  	
  Waiver of Subrogation
  Rights

  

 

5

 

	
  SECTION

  NUMBER

  	
   

  
	
  5.06

  	
  Condemnation and Loss
  or Damage

  
	
  5.07

  	
  Damage Due to Fire and
  Casualty

  
	
   

  	
  ARTICLE
  6.   DEFAULT

  
	
   

  	
   

  
	
  6.01

  	
  Events of Default

  
	
  6.02

  	
  Remedies upon Default

  
	
  6.03

  	
  Damages upon Termination

  
	
  6.04

  	
  Computation
  of Rent for Purposes of Default

  
	
  6.05

  	
  Rights of Landlord in
  Bankruptcy

  
	
  6.06

  	
  Interest on Late Payments

  
	
   

  	
  ARTICLE
  7.   APPRAISAL

  
	
   

  	
   

  
	
  7.01

  	
  Appraisal of Fair
  Market Net Rent

  
	
   

  	
  ARTICLE
  8.   MISCELLANEOUS

  
	
   

  	
   

  
	
  8.01

  	
  Holding Over

  
	
  8.02

  	
  Amendments and
  Modifications

  
	
  8.03

  	
  Transfers by Landlord

  
	
  8.04

  	
  Severability

  
	
  8.05

  	
  Notices

  
	
  8.06

  	
  No Joint Venture

  
	
  8.07

  	
  Successors and Assigns

  
	
  8.08

  	
  Applicable Law

  
	
  8.09

  	
  Time of the Essence

  
	
  8.10

  	
  Submission Not an Option

  
	
  8.11

  	
  Brokerage

  
	
  8.12

  	
  Waiver of Jury Trial

  

 

6

 

	
  SECTION

  NUMBER

  	
   

  
	
  8.13

  	
  All Agreements Contained

  
	
  8.14

  	
  Cumulative Remedies

  
	
  8.15

  	
  Failure to Enforce

  
	
  8.16

  	
  Notice of
  Lease; Other Notices and Agreements

  
	
  8.17

  	
  Moving Expense
  Reimbursement

  
	
  8.18

  	
  Release of
  Existing Lease Obligations

  
	
  8.19

  	
  Hiring Practices

  
	
   

  	
  ARTICLE
  9.   OPTIONS TO EXTEND THE TERM

  
	
   

  	
   

  
	
  9.01

  	
  Grant and
  Exercise of Options to Extend

  
	
  9.02

  	
  Election to
  Reduce the Leased Premises

  
	
  9.03

  	
  Rent During Extended Term

  
	
  9.04

  	
  Lease Continues in Effect

  
	
   

  	
  ARTICLE
  10.   OPTIONS TO EXPAND THE LEASED
  PREMISES

  
	
   

  	
   

  
	
  10.01

  	
  Grant of Initial Option
  to Expand

  
	
  10.02

  	
  Grant of Options to Expand

  
	
  10.03

  	
  Exercise of Options to
  Expand

  
	
  10.04

  	
  Rent for Expansion Space

  
	
  10.05

  	
  Condition of Expansion
  Space

  
	
  10.06

  	
  Expansion Space
  Part of Leased Premises

  
	
   

  	
  ARTICLE
  11.   FIRST RIGHT TO LEASE

  
	
   

  	
   

  
	
  11.01

  	
  Exercise of First
  Right to Lease

  
	
   

  	
  ARTICLE
  12.   ADDITIONAL OPTIONS

  
	
   

  	
   

  
	
  12.01

  	
  Parking

  

 

7

 

	
  SECTION

  NUMBER

  	
   

  
	
  12.02

  	
  Storage Area

  
	
  12.03

  	
  Antenna or Satellite Dish

  
	
  12.04

  	
  Security

  
	
  12.05

  	
  Exhibits

  
	
   

  	
  ARTICLE
  13.   DEFINITIONS

  
	
   

  	
   

  
	
  13.01

  	
  Definitions

  
	
  Signatures

  

 

8

 

SCHEDULE OF EXHIBITS

	
   

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Leased Premises

  
	
   

  	
   

  
	
  Exhibit A-1

  	
  Description of Land

  
	
   

  	
   

  
	
  Exhibit A-2

  	
  Description of 500 Boylston Parcel

  
	
   

  	
   

  
	
  Exhibit B

  	
  Work Letter

  
	
   

  	
   

  
	
  Exhibit C

  	
  Storage Area

  
	
   

  	
   

  
	
  Exhibit D

  	
  Building Rules and Regulations

  
	
   

  	
   

  
	
  Exhibit E

  	
  Net Rentable Area of Floors in the Building

  
	
   

  	
   

  
	
  Exhibit F

  	
  Berkeley Entrance Graphic

  
	
   

  	
   

  
	
  Exhibit G

  	
  Paving Graphic

  
	
   

  	
   

  
	
  Exhibit H

  	
  Location of Tenant Directory Board

  
	
   

  	
   

  
	
  Exhibit I

  	
  Janitorial Service to Leased Premises

  
	
   

  	
   

  
	
  Exhibit J

  	
  Impositions on the Building as of the date of the
  Lease

  

 

9

 

THIS LEASE is entered
into as of the date hereof  between  Landlord and Tenant.

 

ARTICLE 1

 

LEASE

 

1.01. Lease.
Landlord leases to Tenant and Tenant leases from Landlord the Leased Premises,
and as appurtenant to the Leased premises, the right to use in common with
others entitled thereto, the Common Areas, the Project Common Areas, the
Loading Docks and the Parking Section, all upon the terms, covenants and
conditions set forth herein.

 

ARTICLE 2

 

TERM; USE; RENT

 

2.01. Term.
Except as otherwise provided herein, this Lease shall commence on the Term
Commencement Date, and shall continue in full force for the Term. Except as
otherwise provided herein, Landlord’s obligations under this Lease shall
commence upon the date hereof. Tenant’s obligations under this Lease shall
commence upon the Completion Date (except as expressly otherwise provided
herein with respect to obligations arising earlier), unless Tenant shall have
taken occupancy of all or any portion of the Leased Premises for the conduct of
its business on an earlier date, in which case such obligations shall commence
on the date of such occupancy, but only with respect to any floor or portion
thereof so occupied by Tenant. Notwithstanding the foregoing, Tenant’s
obligation to pay Gross Rent shall commence upon the Rent Commencement Date,
unless subsequent to the Scheduled Rent Commencement Date but prior to the Rent
Commencement Date Tenant shall have taken occupancy of all or any portion of
the Leased Premises for the conduct of its business in which case Tenant’s
obligation to pay Gross Rent shall commence upon such occupancy, but any such
obligation shall commence only with respect to any floor or portion thereof so
occupied by Tenant, Landlord agrees to use reasonable efforts to Substantially
Complete the Leased Premises by the Scheduled Completion Date, failing which,
Landlord shall continue to use reasonable efforts to Substantially Complete the
Leased Premises unless and until this Lease shall have been terminated pursuant
to this Section 2.01 (which agreement shall hereinafter be referred to as
“Landlord’s Delivery Covenant”). If the Leased Premises are not Substantially
Complete by the

 

10

 

Scheduled Completion Date for any reason, Landlord shall not be liable
for any claims, damages or liabilities by reason thereof, but the Rent
Commencement Date shall be delayed by two (2) days for each day of such delay
in Substantial Completion, unless and to the extent such delay was caused by
Force Majeure or any Tenant’s Delay (in which case the Rent Commencement Date
shall not be so delayed). Landlord shall use reasonable efforts to give Tenant
notice of the occurrence of any event which may cause a delay in the Completion
Date beyond the Scheduled Completion Date, and the estimated length of any such
delay. In any event, if landlord fails to give Tenant written notice within
three (3) Business Days of the occurrence of any such event, then any Tenant
Delay caused thereby shall not be deemed to have commenced until the date such
notice is given. Landlord shall also provide Tenant with thirty (30) days prior
notice of the date when Landlord reasonably expects to achieve Substantial
Completion, based upon the progress of the work. Tenant will commence occupancy
of the Leased Premises after the Completion Date, with occupancy of no less
than seventy five percent (75%) of the Leased Premises (including the executive
offices of Tenant) by the first anniversary of the Completion Date. If Landlord
has not commenced construction of the Initial Tenant Improvements by the date
which is one hundred and twenty (120) days prior to the Outside Completion
Date, then for so long as such failure to commence construction shall continue,
Tenant may give Landlord notice of its intent to terminate this Lease if such
construction is not commenced within the next thirty (30) days following such
notice, and, if construction is not commenced within such period, then Tenant
may terminate this Lease by notice to Landlord given within thirty (30) days
following the expiration of the initial thirty (30) day period. So long as
Landlord is not in default of Landlord’s Delivery Covenant, this right of
termination shall be Tenant’s sole remedy in the event construction is not
commenced as aforesaid. If the Leased Premises are not Substantially Complete
by the Outside Completion Date, then for so long as the Leased Premises are not
Substantially Complete, Tenant may give Landlord notice of its intent to
terminate this Lease if Substantial Completion does not occur within the next
thirty (30) days following such notice, and, if Substantial Completion does not
occur within such period, then Tenant may terminate this Lease by notice to
Landlord given within thirty (30) days following the expiration of the initial
thirty (30) day period, Tenant shall have the continuing right to terminate
this Lease at any time before Substantial Completion occurs in the same manner
as provided in the immediately preceding sentence. So long as Landlord is not
in default of Landlord’s Delivery Covenant, this right of termination shall be
Tenant’s sole remedy in the event Substantial Completion does not occur. If
Tenant gives Landlord notice that Tenant desires to terminate this Lease under
the terms

 

11

 

of the previous three sentences of this Section 2.1, then, as a
condition to such termination Tenant shall reimburse Landlord for all
previously uncompensated Tenant Extra Costs; such termination shall not be
deemed effective unless such costs and expenses are paid in full. In the event
Tenant provides Landlord with such notice of termination and this Lease is
terminated in accordance with the provisions of this paragraph, Tenant shall
not be liable to Landlord for any Tenant Extra Costs incurred by Landlord after
the date of such notices. If Substantial Completion does not occur within
eighteen (18) months after the Estimated Outside Completion Date (as extended
by any period of delay to the extent resulting from Landlord’s failure to
fulfill Landlord’s Delivery Covenant), then Landlord shall have the right to
terminate this Lease by notice to Tenant.

 

2.02. Use.
Tenant shall use the Leased Premises solely for the Permitted Use and for no
other use or purpose, except as permitted by Landlord pursuant to Landlord’s
written consent (which consent Landlord may withhold in its absolute and sole
discretion).

 

2.03. Rent.
All obligations of Tenant to make payments to Landlord under this Lease shall
constitute Rent. Tenant shall pay the Rent at the times and in the manner
hereinafter set forth. All Rent shall be paid in lawful money of the United
States, Gross Rent shall be paid commencing on the Rent Commencement Date and
continuing thereafter in twelve (12) equal monthly installments (subject,
however, to an adjustment of the portion thereof representing Tenant’s
Proportionate Share of the Estimated Operating Cost and Tenant’s Proportionate
Share of the Estimated Impositions in accordance with Section 2.08) on the
first day of each calendar month during each year of the Term and any
extensions thereof, in advance without demand, and all Rent shall be paid
without any reduction, abatement counterclaim or set-off (except as expressly
set forth in Sections 3.01(b), 5.06(b) and 5.07(e)), at the address for
Landlord specified on the Basic Lease Information sheet or at such other
address as may be designated in a notice by Landlord from time to time. If the
Rent Commencement Date occurs on other than the first day of a month, then
Gross Rent provided for such partial month shall be equitably prorated on such
date of commencement. If the Term terminates on other than the last day of a
calendar month, then Gross Rent provided for such partial month shall be
equitably prorated on such date of termination.

 

2.04. Operating Cost.

 

(a)               Operating Cost
shall mean all expenses and costs of every kind and nature incurred by Landlord
in its reasonable business judgment which Landlord shall pay or

 

12

 

become obligated to pay because of or in connection
with the management, maintenance, preservation or operation of the Building
(determined in accordance with generally accepted accounting principles,
consistently applied) including, but not limited to the following:

 

(1)              Expenses of the
operation, maintenance and security of the Building, including compensation in
the form of wages, salaries, and other compensation and benefits (including
payroll taxes, federal, state and local unemployment taxes and social security
taxes), insurance, welfare and retirement benefits, and related expenses and
benefits of all on-site employees (not exceeding the level of property manager)
and off-site employees (but only to the extent such employees are involved
directly in the operation, maintenance, management and preservation of the
Building, and with respect to off-site employees above the level of the
property manager directly responsible for the Building, only so long as Hines
Interests Limited Partnership or an affiliate thereof is managing the Building;
it being agreed that the manner in which Landlord allocates the expenses for
such off-site employees and categories to which such expenses are allocated
will not change from the manner utilized by Landlord as of the date of this
Lease and Landlord agrees to certify that such manner and categories have not
changed (the “Allocable Share Certification”) in connection with the delivery
by Landlord to Tenant of the statement of the Operating Cost and Impositions
pursuant to Section 2.06) but excluding employees and other personnel to the
extent they are engaged in the initial development and construction of the
Building;

 

(2)              The Building’s
allocable share of the cost incurred by Landlord in Greater Boston for
Landlord’s office and management office operation for the Building (provided,
however, that if such office is located outside the Project, such allocable
share shall not exceed the allocable share of the cost which would have been
incurred had the office been located within the Project);

 

(3)              All tools, supplies
materials and equipment used in the operation and maintenance of the Building
(the “Building Equipment”), including rental fees for the same, if such items
are not purchased and

 

13

 

amortized, or, if Landlord in its reasonable business
judgement determines that it is ultimately less costly to purchase than to
rent, then the cost of such Building Equipment, as amortized by Landlord in
accordance with requirements governing the amortization of such Building
Equipment under the Internal Revenue Code, together with reasonable financing
charges (the reasonableness of such financing charges to be determined with
reference to the rates then being offered by institutional lenders for such
financing);

 

(4)              Utilities, including
water and power, sewer, gas, heating, lighting, air conditioning and
ventilating the entire Building (provided, however, that should any tenant in
the Building, including Tenant, have special needs or uses requiring the use of
any such utility beyond the ordinary for a typical tenant in a first-class
office building like the Building, as determined by Landlord in its reasonable
judgment (which, in the case of electrical usage, is established pursuant to
Section 3.01(a)(v) and (vi)), Landlord shall monitor such additional usage by
the installation of meters or by other reasonable means, exclude the cost of
such additional usage from the Operating Cost and bill the tenant directly
therefor);

 

(5)              All maintenance,
janitorial and service agreements or costs for the Building, including, without
limitation, alarm service, landscaping, window cleaning, escalator and elevator
maintenance, rubbish and snow removal, pest control, equipment maintenance or
servicing or maintenance or cleaning for sidewalks, Building exterior, roof and
service areas (provided, however, that the additional cost for any such
services beyond the ordinary for providing such services to typical tenants in
a first-class office building like the Building or which are made necessary by
the special needs or uses of any party, including Tenant, as determined by
Landlord in its reasonable judgment, shall not be included in the Operating
Cost but shall be billed directly to such party);

 

(6)              A management cost recovery
in connection with the operation of the Building; Tenant’s share to be three
percent (3%) of all Gross Rent, excluding such cost recovery;

 

14

 

(7)              Legal and accounting
services for the Building, including the costs of audits by certified public
accountants; excluding, however, the cost of dispute resolution auditing of the
Operating Cost or Impositions pursuant to leases with tenants in the Building,
costs incurred as a result of the negligence or willful misconduct of Landlord
or Landlord Responsible Parties, costs incurred in proceedings against any
specific tenant, and costs incurred in connection with the financing,
refinancing, leasing, development and/or construction of, the Building;

 

(8)              All insurance
premiums and costs applicable to the Building and Landlord’s personal property
used in connection therewith, including but not limited to, the premiums and
cost of fire, casualty and liability coverage and rental abatement or business
interruption insurance;

 

(9)              Repairs (including,
where necessary, replacements which do not constitute capital improvements)
together with reasonable financing charges until the full cost of such repairs
is repaid to Landlord by tenants in the Building (the reasonableness of such
financing charges to be determined with reference to the rates then being
offered by institutional lenders for such financing) and general maintenance
(except for repairs the cost of which is paid for by, or would have been paid
for by, the proceeds of insurance which Landlord is required to carry pursuant
to Section 5.01 of this Lease or which are paid for directly by Tenant or other
third parties, and except for alterations to the extent attributable to tenants
of the Building);

 

(10)        Capital improvements made
to the Building, including replacements as amortized by Landlord in accordance
with requirements governing the amortization of such capital improvements under
the Internal Revenue Code, together with reasonable financing charges (the reasonableness
of such financing charges to be determined with reference to the rates then
being offered by institutional lenders for such financing) subsequent to the
Completion Date which (i) are designed to and will improve the operating
efficiency of the Building,

 

15

 

or (ii) may be required by governmental authorities
pursuant to applicable laws, ordinances or regulations subsequent to the
approval of the Initial Tenant Improvement Plans (other than those which are
required for the exclusive benefit of an individual tenant or tenants and not
relating to the general use or operation of the Building); provided, however,
that the amount of such amortization and financing charges for items in (i)
above shall not exceed in any year the amount of costs reasonably determined by
Landlord to have been saved in such year by the expenditure either through
direct reduction or minimization of increases which would have otherwise
occurred, and provided further that with respect to (ii) above, Landlord shall
take reasonable steps to comply with such governmental requirements in the most
economical manner.

 

(b)              Notwithstanding any
other provision herein to the contrary, in the event that the Building is not
fully occupied during any year of the Term, an adjustment shall be made in
computing those items constituting components of Operating Cost which vary
depending on the level of occupancy of the Building for such year so that
Operating Cost shall be extrapolated and computed as though the Building had
been fully occupied during such year; provided, however, that in no event shall
Landlord collect in total, from Tenant and all other tenants of the Building,
an amount greater than one hundred percent (100%) of the actual Operating Cost
during any year of the Term.

 

(c)               Notwithstanding the
foregoing, Operating Cost shall not include any costs and expenses excluded
expressly by the provisions of subsection (a) above or any costs and expenses
relating to:

 

(1)              the management, maintenance,
preservation or operation of (i) the Parking Section, (ii) the Commercial
Section, to the extent constituting leasable space for tenants of the
Commercial Section, and (iii) the Common Areas to the extent reasonably
allocable to the Parking Section or the Commercial Section;

 

16

 

(2)              any special needs or
uses of tenants with respect to storage areas resulting in extraordinary costs
or expenses in connection with maintaining, repairing and operating such
storage areas;

 

(3)              leasing commissions
or tenants inducements associated with leasing activities;

 

(4)              costs or
improvements to any tenant’s leased premises or otherwise exclusively for the
benefit of an individual tenant;

 

(5)              principal, interest,
late charges or other payments on loans (except as provided in (a)(3), (a)(9)
or (a)(10) above), ground rent, rent paid for the right to locate Project
Common Areas or Loading Docks outside of the Building, or payments on equity
obligations;

 

(6)              costs of repairing,
replacing or otherwise correcting defects in the design or construction of the
Project, or design or construction defects in any leasehold improvements in
rentable areas of the Building;

 

(7)              leasing commissions,
attorneys’ fees, costs and disbursements and other expenses, any of which are
incurred in connection with negotiations or disputes with tenants or
prospective tenants, except with respect to disputes with other tenants the
resolution of which is reasonably likely to result in a material benefit to the
tenants of the Project (other than costs incurred in connection with the lease
termination and eviction of any tenant);

 

(8)              depreciation and
amortization of the Project or equipment, except as provided in (a)(3) and
(a)(10) above;

 

(9)              expenses in
connection with services of a type which Tenant does not receive under this
Lease but which are provided to another tenant;

 

(10)        fines, penalties or
indemnification obligations incurred due to violations by Landlord or Landlord
Responsible Parties of any governmental rule or authority, or any agreement
made in connection therewith with a governmental entity, and any costs

 

17

 

of remedying such violations or defending the
prosecution thereof (except for the costs of remedying such violations to the
extent such costs are permitted Operating Costs pursuant to Section
2.04(a)(10));

 

(11)        all amounts paid to
principals, subsidiaries, affiliates or other parties related to Landlord for
services for the Project in excess of the amount payable for comparable
services provided by a party who is not a principal, subsidiary, affiliate or
otherwise related party;

 

(12)        costs and expenses to the
extent related to the ownership (as distinguished from operation and maintenance,
including the charges contemplated by (a)(2) above) of the Project;

 

(13)        ny particular items and
services for which Tenant otherwise reimburses Landlord by direct payment over
and above Base Rent and Tenant’s Proportionate Share of Operating Cost;

 

(14)        advertising, marketing,
promotional and like expenditures;

 

(15)        costs of refinancing the
Project;

 

(16)        interest or penalties
resulting from delinquent payments by Landlord, provided such delinquent
payments are not caused by Tenant;

 

(17)        repairs or other work
occasioned by fire, windstorm or other casualty to the extent covered by
insurance required to be carried by Landlord hereunder, or by the exercise of
the right of eminent domain, or voluntary conveyance in lieu thereof, to the
extent reimbursed by condemnation proceeds;

 

(18)        Landlord’s costs of
electricity and other services to the extent they are separately chargeable to
tenants as an additional charge or rental over and above the regular
installments of rent payable under the lease with such tenant;

 

18

 

(19)        costs incurred by Landlord
which are considered capital improvements and replacements under generally
accepted accounting principles (“GAAP”) including contributions to replacement
or contingency reserves created by Landlord, except as provided in (a)(3) or
(a)(10) above;

 

(20)        any compensation paid to
clerks, attendants, or other persons in commercial concessions operated by
Landlord; and

 

(21)        costs for the purchase of
sculpture, paintings, or other objects of art, and any royalties payable in
connection therewith; and

 

(22)        the cost of any curative
action required, or any repair, replacement or alteration made, by Landlord (or
by a third party, the cost of which is imposed upon Landlord) to remedy a
condition or damage caused by or resulting from the negligence or willful
misconduct of Landlord or Landlord Responsible Parties, and, except to the
extent such costs are permitted Operating Costs pursuant to Section
2.04(a)(10), the costs of complying with governmental or insurance requirements
to the extent caused by a condition existing as of the date the Initial Tenant
Improvement Plans are approved unless and to the extent caused by Tenant.

 

2.05. Impositions. Impositions shall mean all real estate or
personal property taxes, possessory interest taxes, so-called “linkage
payments” made by Landlord with respect to the Building pursuant to that
certain Development Impact Project Agreement dated as of June 28, 1985, as
amended by that certain First Amendment to Development Impact Project Agreement
dated as of May 11, 1988 and as the same may be further amended (provided that
if any further amendment increases the amount to be paid by Landlord, such
increase shall not constitute an Imposition), or similar charges, business or
license taxes or fees, service payments in lieu of such taxes or fees, annual
or periodic license or use fees, excises, assessments, levies, fees or charges,
general and special, ordinary and extraordinary, unforeseen as well as
foreseen, of any kind (including fees “in-lieu” of any such tax or assessment)
payable over the longest permitted period (provided no extra costs are incurred
as a result thereof), which are assessed, levied, charged, confirmed or imposed
by any public authority upon the Land, the Building, its operations or the Rent
(or any portion or component thereof) including in the year paid, all
reasonable fees and costs incurred by Landlord in seeking to

 

19

 

obtain an abatement or reduction of, or a limit on any increase, in any
taxes, regardless of whether any abatement, reduction or limitation is
obtained, but excluding (i) inheritance or estate taxes imposed upon or
assessed against the Building, or any part thereof or interest therein, (ii)
taxes computed upon the basis of the net income derived from the Building by
Landlord or the owner of any interest therein, (iii) that portion of the items
enumerated in this Section which is allocable to the Commercial Section or the
Parking Section of the Building and (iv) any involuntary payments which
Landlord may agree to make with respect to the Building after the date hereof.
Attached hereto as Exhibit J is an itemization of the Impositions for 1991 and
the respective amounts thereof, on an annualized basis, which currently relate
to the Building. Landlord represents that it is not aware of any other
Impositions affecting the Building as of the date hereof; however, Landlord and
Tenant acknowledge that said itemization of Impositions may change during the
Term hereof. Upon the written request of Tenant, Landlord will either (x)
institute such proceedings as it may, in its reasonable business judgment,
consider appropriate to seek an abatement of the Impositions, or (y) permit
Tenant to institute such proceedings as it may, in its reasonable business
judgment, consider appropriate to seek an abatement of the Impositions,
provided that if Landlord reasonably believes that there is not a reasonable
probability of success (without regard to the impact of such proceedings upon
any building other than the Building), Landlord may refuse to permit Tenant to
institute any such proceedings.

 

2.06. Computation of Operating Cost and
Impositions.

 

(a)               Landlord shall,
within a reasonable period of time following each calendar year, give Tenant a
statement of the Operating Cost and Impositions during such calendar year
(prepared by a certified public accountant), which shall be accompanied by a
computation of Tenant’s Proportionate Share of such Operating Cost and
Impositions and an Allocable Share Certification. Landlord agrees to use
reasonable efforts to provide Tenant, within one hundred and twenty (120) days
after each calendar year, with either such statement or a written explanation
of why such statement is not available, but Landlord’s failure to provide
Tenant with either such statement or such written explanation within said
period shall not release either party from the obligation to make the
adjustment provided for in Section 2.07. Notwithstanding the foregoing,
Landlord shall have no right to collect an adjustment under Section 2.07 for a
given calendar year should Landlord

 

20

 

fail to deliver such statement within three hundred
and sixty (360) days after such calendar year. Tenant shall have the right, for
one hundred and eighty (180) days following the presentation of such statement
by Landlord, to examine and audit Landlord’s books and records with respect to
the Operating Cost and/or Impositions for such calendar year (it being agreed
that Tenant shall not have the right, beyond that otherwise provided herein, to
audit the books and records which establish the basis for the Allocable Share
Certification). If the results of such audit indicate that Tenant has overpaid
its share of Operating Cost or Impositions for such calendar year, Tenant shall
give notice to Landlord of the results of the audit within said one hundred and
eighty (180) day period (the “Overpayment Notice”), which notice shall be
accompanied by a copy of the audit together with a statement in reasonable
detail of the reasonable cost of such audit, and thereupon Landlord may elect
to either (i) pay to Tenant the amount of such overpayment, plus, if Tenant has
overpaid its share of Operating Cost or Impositions for such calendar year by
more than three percent (3%), the reasonable cost of such audit, within thirty
(30) days of the Overpayment Notice or (ii) submit the issue to the dispute
resolution procedure set forth in subsection 2.06(b) by notice given to Tenant
within thirty (30) days of the Overpayment Notice (the “Dispute Resolution
Notice”). In the event that Landlord delivers its statement of Operating Cost
and Impositions for the calendar year more than one hundred and twenty (120)
days after the end of the calendar year and in the event that Tenant has
overpaid its share of Operating Cost or Impositions for such calendar year,
then if Tenant complies with the provisions of the immediately preceding sentence
and if Tenant is not otherwise in default hereunder beyond any applicable grace
period, Landlord shall pay Tenant, together with the amount of Tenant’s
overpayment interest to Tenant on the amount of such overpayment calculated
from the first day of the calendar year following such calendar year to the
date of repayment to Tenant at the then prime rate of the Bank of Boston, or
any successor institution thereto.

 

(b)              Landlord and Tenant
shall each within thirty (30) days after Landlord gives the Dispute Resolution
Notice to Tenant appoint a person to act as the expert on its behalf and notify
the other of such appointment. Each expert shall have at least ten (10) years
experience in the operation of first-class commercial office

 

21

 

buildings. If either party shall fail to so appoint an
expert within said thirty (30) day period, the expert appointed by the other
shall determine the issue. In the event that the two experts are appointed
within said thirty (30) day period, the experts so chosen shall meet within ten
(10) business days after the second expert is appointed to determine Tenant’s
Proportionate Share of Operating Cost or Impositions, as the case may be.

 

If the two experts are unable to agree within ten (10)
business days after such first meeting, they shall appoint a third expert, who
shall be a competent and impartial person with qualifications similar to those
required of the first two experts. In the event the two experts are unable to
agree upon such appointment within five (5) business days after the expiration
of said ten (10) day period, then either party, on behalf of both, may request
the appointment of such qualified person by an officer of the American
Arbitration Association in Boston.  The
expert appointed by each party shall state in writing his or her determination
of Tenant’s Proportionate Share of Operating Cost or Impositions, as the case
may be, supported by the reasons therefor, with counterpart copies to each
party. The experts shall arrange for a simultaneous exchange of such proposed
determinations.  The role of the third
expert shall be to select which of the two proposed determinations most closely
approximates his own determination, and the third expert shall have no right to
propose a middle ground or any modification of either of the two proposed
determinations. The determination chosen by the third expert shall constitute
the decision of the experts and shall be final and binding upon the parties.
This provision for determination shall be specifically enforceable to the
extent such remedies are available under applicable law, and either party shall
have the right to enter judgment thereon, unless otherwise provided by
applicable law.  Landlord and Tenant
shall each pay for the fees and disbursements of any expert appointed by it and
shall share equally in the fees and expenses of any third expert.

 

In the event of a failure, refusal or inability of any
expert to act, his or her successor shall be appointed by him or her, but in
the case of the third expert, his or her successor shall be appointed in the
same manner as provided for appointment of the third expert.

 

22

 

2.07. Adjustment for Variation Between
Estimated and Actual Operating Cost and Impositions. If the Operating Cost
and/or the Impositions for any calendar year exceed, respectively, the
Estimated Operating Cost and/or the Estimated Impositions, Tenant shall pay to
Landlord Tenant’s Proportionate Share of such excess within thirty (30) days
after presentation of Landlord’s statement pursuant to Section 2.06. If the
Operating Cost and/or Impositions for any calendar year are less than,
respectively, the Estimated Operating Cost and/or the Estimated Impositions,
then Landlord shall pay to Tenant Tenant’s Proportionate Share of such
difference with the presentation of Landlord’s statement pursuant to Section
2.06. Should the Rent Commencement Date occur or the Term of this Lease
terminate at any time other than on the first day of a calendar year, Tenant’s
Proportionate Share of the Operating Cost and/or the Impositions shall be
prorated for the exact number of calendar days occurring in the partial year in
question, and in the case of any termination, the provisions of this Section
2.07 shall survive such termination.

 

2.08. Notice of Adjustments. Commencing with the
calendar year during which the Rent Commencement Date occurs and prior to each
subsequent calendar year during the Term, and otherwise from time to time as Landlord
deems appropriate, Landlord shall give Tenant notice of Tenant’s Proportionate
Share of the Estimated Operating Cost and Tenant’s Proportionate Share of the
Estimated Impositions set forth in reasonable detail, Tenant shall thereafter
pay Landlord, in accordance with the provisions of Section 2.03, Tenant’s
Proportionate Share of such Estimated Operating Cost and such Estimated
Impositions. For any calendar year, or portion thereof, for which Landlord does
not provide Tenant with the notice referred to in this Section 2.08, Tenant
shall pay Tenant’s Proportionate Share of the Estimated Operating Cost and
Tenant’s Proportionate Share of the Estimated Impositions at the rate for the
previous calendar year, subject, however, to the annual adjustment described in
Section 2.06 and Section 2.07.

 

2.09. Operating Cost for 1994. Notwithstanding anything
in this Lease to the contrary, the Operating Cost for the calendar year 1994
shall in no event exceed the amount set forth in this Section 2.09. As of the
date hereof, the Tenant’s Proportionate Share of Operating Cost which will be a
part of the Gross Rent is $6.71 per square foot of Net Rentable Area. Of this
$6.71, electricity charges, water and sewer charges, insurance premiums, and
management cost recovery of three percent (3%) thereon is $2.63 per square foot
of Net Rentable Area. The balance of the Tenant’s Proportionate Share of
Operating Cost is $4.08 per square foot of Net Rentable Area. In the 1994
calendar year, Tenant’s Proportionate Share of Operating Cost with respect to
all Operating Cost, other than the costs incurred by Landlord as part

 

23

 

of Operating Cost constituting electricity charges, water and sewer
charges, insurance premiums and management cost recovery of three percent (3%)
thereon shall not exceed the sum of (a) $4.08 per square foot of Net Rentable
Area and (b) the product of (i) the percentage increase in the United States
Department of Labor, Bureau of Labor Statistics Consumer Price Index (All Urban
Consumers, All Items, 1982-1984 equals 100) between Calendar Year 1991 and
Calendar Year 1994 and (ii) $4.08 per square foot of Net Rentable Area. If such
Index is discontinued or revised, the average rate of inflation shall be determined
by reference to the index designated as the successor or substitute index by
the government of the United States.

 

ARTICLE 3

 

LANDLORD’S COVENANTS

 

3.01. Basic Services. Landlord or its affiliates shall operate
the Building to a standard of quality consistent with that of first-class
office buildings in Boston, Massachusetts and shall:

 

(a)               Furnish Tenant
during the hours contemplated hereunder during Tenant’s occupancy of the Leased
Premises:

 

(i)                 Water used by the
building standard cooling, drinking and sanitation systems, domestic hot and
cold water and water for maintenance and janitorial services, such water to be
available at all times.

 

(ii)              During Business
Hours, central heat, ventilation and air conditioning which, subject to
applicable laws, ordinances, rules and regulations (but not any voluntary
standards) shall be sufficient during the season in question to meet the
following temperature requirements under load conditions which do not exceed
occupancy of one (1) person per one hundred (100) square feet of usable area
and power consumption for lighting and electrical equipment at a rate of four
(4) watts per square foot of usable area, with no humidity control and assuming
the use of appropriate blinds on all windows to shade the Leased Premises: (1)
a minimum temperature of 72 degrees Fahrenheit inside, plus or minus 2 degrees,
with a minimum

 

24

 

temperature outside of 0 degrees Fahrenheit, and (2) a
maximum temperature of 76 degrees Fahrenheit inside, plus or minus 2 degrees,
with a maximum temperature outside of 91 degrees Fahrenheit (dry bulb) or 75
degrees Fahrenheit (wet bulb).

 

(iii)           Maintenance, repairs,
structural and exterior maintenance (including glass and glazing for the
exterior of the Building and for the Winter Garden), painting and electric
lighting service for the Project Common Areas and the Common Areas in the
manner and to the extent customarily provided by landlords in first-class
office buildings in Boston, such maintenance, repairs and service to be
provided at such times as Landlord may reasonably determine.

 

(iv)          Janitorial service to
the Leased Premises in accordance with Exhibit I, after Business Hours on
Business Days (except as otherwise set forth in Exhibit I).

 

(v)             Electricity for
typewriters, voice writers, calculating machines, low consumption duplicating
machines, low consumption electronic data processing equipment, and other
machines of similar low electrical consumption (it being agreed that Tenant’s
total consumption for such items shall not exceed one (1) watt per square foot
of Net Rentable Area per month at one hundred and twenty (120) volts). The
electricity shall be provided from a central bus duct which shall have the
capacity to deliver two (2) watts per square foot of two hundred and
seventy-seven (277) volt single phase electricity and two (2) watts per square
foot of one hundred and twenty (120) volt single phase electricity.

 

(vi)          Initial lamps, bulbs,
starters and ballasts for building standard fixtures used within the Leased
Premises, replacement bulbs (including the replacement of such bulbs) for
building standard fixtures used within the Leased Premises for one year
following the Tenant’s initial occupancy of the Leased Premises for the purpose
of conducting its business, and electricity for lighting such fixtures.

 

25

 

(vii)       Security for the Building
consistent with the operation of a first-class office building in downtown
Boston, which as of the date hereof includes security personnel during Business
Hours and a card access system during non-Business Hours. Notwithstanding the
foregoing, Landlord shall have the right to alter specific aspects of said
security, so long as the level of security provided at all times during the
Term is comparable or exceeds the level provided as of the date of this Lease.

 

(viii)    Public elevator service
serving the floors on which the Leased Premises are situated, including (x)
during Business Hours, three (3) elevators in the low rise bank of elevators,
five (5) elevators in the high rise bank of elevators, and a freight elevator
and (y) after Business Hours, elevator service as reasonably determined by
Landlord consistent with the standards of a first class office building, but in
no event less than one (1) elevator in the low rise bank of elevators and one
(1) elevator in the high rise bank of elevators during such hours.

 

(ix)            Access to, and the
right in common with other tenants of the Building to use, the Loading Docks,
subject to Landlord’s reasonable rules and regulations.

 

(b)              Landlord shall not
be liable for injuries to persons or damage to property, nor shall Landlord be
deemed to have evicted Tenant, nor shall there be any abatement of Rent (except
as expressly set forth in this Section 3.01(b)), nor shall Tenant be relieved
from performance of any covenant on its part to be performed hereunder by
reason of (i) deficiency in the provision of Basic Services (except to the
extent caused by the negligence or willful misconduct of Landlord or Landlord
Responsible Parties), (ii) breakdown of equipment or machinery utilized in
supplying services or (iii) curtailment or cessation of services due to causes
or circumstances beyond the reasonable control of Landlord or Landlord
Responsible Parties. Landlord shall use reasonable diligence to make or cause
to be made such repairs as may be required to machinery or equipment within the
Building or the Project Common Areas to provide restoration of services and,
where the cessation or interruption of service has occurred due to

 

26

 

circumstances or conditions beyond the Building
boundaries, to cause  the same to be
restored, by diligent application or request to the provider thereof. Landlord
also agrees to use reasonable efforts to avoid unnecessary inconvenience to
Tenant by reason thereof and agrees, where reasonable, not to perform such work
during Business Hours. In the event Landlord fails to provide or cause to be
provided any one or more Basic Services, and such failure causes the Leased
Premises, or a portion thereof, to be rendered untenantable for the purpose of
conducting Tenant’s business operations, and such condition shall continue for
any three (3) consecutive Business Days after Tenant’s notice thereof to
Landlord or such condition shall occur on any five (5) Business Days during any
thirty (30) day period after Tenant’s notice thereof to Landlord, Tenant shall
have the right to abate the portion of Gross Rent which corresponds to the
portion of the Leased Premises rendered untenantable.

 

3.02. Extra Services. Landlord shall provide to Tenant at
Tenant’s sole cost and expense at standard Building charges in effect from time
to time (which, in the case of services described in subparagraphs (a), (b) and
(e) below shall be reimbursed by Tenant at Landlord’s actual cost, and which in
all cases shall be reasonably consistent with amounts charged by Landlords of
other first class office buildings in the City of Boston providing such extra
services) and subject to the limitations hereinafter set forth, the following:

 

(a)               Heating,
ventilation, or air conditioning provided by Landlord to Tenant (i) during
hours other than Business Hours, (ii) on days other than Business Days, said
heating, ventilation or air conditioning to be furnished solely upon the prior
written request of Tenant given with such advance notice as Landlord may
reasonably require (but not exceeding two (2) Business Days);

 

(b)              Chilled and/or
condenser water required by reason of any electrical, data processing or other
equipment or facilities or services required to support the same, in excess of
that which would be required for Building Standard Improvements;

 

(c)               Repair and
maintenance which is the obligation of Tenant hereunder which Tenant requests
Landlord to perform and Landlord agrees to perform;

 

27

 

(d)              Additional cleaning
and janitorial services beyond those specified in Exhibit I;

 

(e)               Additional electricity
above the standards specified in Sections 3.01(a)(v) and (vi), as determined by
reference to a separate meter or meters measuring Tenant’s electrical
consumption, which shall be included in the plans to be prepared in accordance
with the Work Letter and installed as part of the Initial Tenant Improvements;

 

(f)                 maintenance and
replacement of initial lamps, bulbs, starters and ballasts (except as provided
in Section 3.01(a)(vi));

 

(g)              Except as otherwise
contemplated by this Section 3.02, any Basic Service in amounts which exceed
the amounts required to be provided under Section 3.01(a), but only if Landlord
elects to provide such additional or excess service.

 

3.03. Graphics and Signage. Landlord shall provide, at
Landlord’s expense, Tenant or Building identification on the main entrance of
the Building in the locations shown as 2 and 3 on, and otherwise in accordance
with, Exhibit F and in the granite paving on Boylston Street in accordance with
Exhibit G and Landlord shall provide, at Tenant’s expense, Tenant
identification on the main entrance of the Building in the location shown as 1
on, and otherwise in accordance with, Exhibit F and in the granite paving on
Berkeley Street and St. James Avenue in accordance with Exhibit G. The
referenced graphics shall remain a part of the Building as long as an Event of
Default has not occurred and is not continuing under Section 6.01 of this
Lease, and Tenant and/or any Tenant Affiliates are in occupancy of at least
seventy-five percent (75%) of the Net Rentable Area included in the Leased
Premises on the Term Commencement Date. Landlord shall provide on the Building
directory board in the main lobby of the Building a space for Tenant’s name and
space for up to one (1) name per floor occupied by Tenant in the Building.
Landlord shall provide space on the Building directory board in the main lobby
of the Building to any subtenant or assignee of Tenant permitted under the
provisions of Section 4.05 hereof, equivalent to the space to which such
subtenant or assignee would have been reasonably entitled if the subtenant or
assignee had entered into a lease with Landlord directly for the same premises
demised pursuant to the sublease or assignment with Tenant. So long as Tenant
and/or any Tenant Affiliates are in occupancy of at least seventy-five percent
(75%) Of the Net Rentable Area included in the Leased Premises on the Term
Commencement Date, Landlord shall provide Tenant, at Tenant’s

 

28

 

option and at Tenant’s expense, a directory board solely for tenant in
the main lobby of the Building, of the same quality and character as the main
directory in the location shown on Exhibit H. So long as Tenant and/or any
Tenant Affiliates are in occupancy of at lease fifty percent (50%) of the Net
Rentable Area included in the Office Section of the Building, Landlord agrees
that (a) except for retail tenants having frontage on Berkeley street, no other
tenant or other occupant of the Building or project shall have a sign or other
identification on the exterior of the Berkeley Street side of the Building
(including the sidewalk in front thereof), and (b) no other tenant or other
occupant of the Building or Project will be permitted to have a sign or other
identification in the first floor front lobby of the Building unless Tenant
shall be offered the option to maintain a sign of equal or greater quality,
character and prominence. All signs, notices and graphics of every kind or
character, visible in or from the Common Areas or the exterior of the Leased
Premises shall be subject to Landlord’s prior approval, which Landlord shall
have the right to withhold in its absolute and sole discretion.

 

3.04. Repair Obligation. Subject to the provisions of
Article V, Landlord shall be obligated to maintain, repair and, as necessary,
replace, (or to cause to be maintained, repaired or replaced), consistent with
maintaining the Building as a first class office building, only the following:
(i) the structural portions of the Building, (ii) the exterior walls of the
Building (which shall include walls facing the Winter Garden as if the same
were exterior walls), including glass and glazing, (iii) the roof, (iv)
mechanical, electrical, plumbing and life safety systems located in the
Building, whether within the Leased Premises or otherwise, (v) the Common Areas
and the Project Operational Common Areas, and (vi) any damage caused to the
Leased Premises by any act or omission of Landlord or Landlord Responsible
Parties. If, within ten (10) Business Days after notice from Tenant, Landlord
shall fail or refuse to either (a) commence diligently work of repair which
Landlord is required to perform pursuant to clause (vi) of this Section 3.04,
or (b) provide Tenant with an explanation of why such work of repair has not
been commenced, then, so long as such work does not affect the items referred
to in items (i) through (v) of this Section 3.04 and does not affect other
tenant’s of the Project, Tenant shall have the right, but not the obligation,
to perform such work and all reasonable costs incurred by Tenant in performing
such work shall be repaid by Landlord within (10) days of Landlord’s receipt of
an invoice therefor. If Tenant shall fail or refuse to commence diligently work
of repair which Tenant is required to perform pursuant to Section 4.03 within
ten (10) Business Days after notice from Landlord (except in cases of
emergency, in which event no prior notice shall be

 

29

 

required), or Tenant does not thereafter diligently pursue such work of
repair to completion, then Landlord shall have the right, but not the
obligation, to perform such work and all costs incurred by Landlord in
performing any such work for the account of Tenant shall be repaid by Tenant to
Landlord upon demand, together with an amount equal to ten percent (10%) of
such costs, to reimburse Landlord for its administration and managerial effort.
Landlord agrees to use reasonable efforts to avoid unnecessary inconvenience to
Tenant by reason of any work performed pursuant to Landlord’s repair
obligations contained in this Section 3.04.

 

3.05. Peaceful Enjoyment. So long as Tenant pays the Rent
and performs all of Tenant’s covenants and agreements contained in this Lease
after any required notice and within any applicable cure periods, Tenant shall
peacefully have, hold and enjoy the Leased Premises.

 

3.06. Restricted Uses. Landlord agrees that it will not enter
into a lease for space in the Building under which the tenant thereunder is
permitted to use the premises so leased for offices of any agency or bureau of
the United States or any state or political subdivision thereof without the
prior written approval of Tenant, unless Landlord determines in its reasonable
business judgment that such use is consistent with the operation of the
Building as a first class office building in Boston.

 

ARTICLE 4

 

TENANT’S COVENANTS

 

4.01. Construction of Tenant Improvements.
All additions to or improvements of the Leased Premises, including, without
limitation, the Initial Tenant Improvements, shall become the property of
Landlord upon termination of this Lease and shall be surrendered to Landlord
upon termination of this Lease by lapse of time or otherwise, subject to
Tenant’s rights and obligations of removal with respect thereto in the same
manner as provided in Section 4.06, unless Tenant has notified Landlord and
Landlord has agreed in writing prior to installation thereof to allow some or
all of the Tenant Improvements to remain the property of Tenant.

 

4.02. Taxes on Personal Property. In addition to,
and wholly apart from its obligation to pay Tenant’s Proportionate Share of
Operating Costs and Impositions, Tenant shall be responsible for and shall pay,
prior to delinquency, any taxes imposed upon, levied with respect to or
assessed against Tenant’s Personal

 

30

 

Property, or the value of the Tenant Improvements, or any other tax,
charge, levy or fee imposed in substitution therefor. To the extent that any
such taxes are not separately assessed and billed to Tenant, but are reasonably
allocable to Tenant and billed to Landlord, Tenant shall pay the amount thereof
as invoiced to Tenant by Landlord.

 

4.03. Repairs by Tenant. Except to the extent of Landlord’s
responsibility hereunder for such maintenance and repairs, Tenant shall be
obligated for maintenance and repair of the Leased Premises, to keep the same
in good order, repair and condition, reasonable wear and tear and damage by
casualty or condemnation excepted. Tenant’s obligation shall include, without
limitation, the obligation to maintain and repair all walls, floors, ceilings,
windows, doors and fixtures (except for windows located on the exterior of the
Building or overlooking the Winter Garden, the structural portions of the
Building and the mechanical, electrical, plumbing and life safety systems
located in the Building, unless the damage thereto is caused by the negligence
of Tenant or any Tenant Responsible Party, in which event such maintenance or
repair shall be performed by Landlord and Tenant shall pay to Landlord the
costs of such maintenance or repair), and to repair all damage caused by Tenant
or any Tenant Responsible Party to the Building, subject however to the
provisions of Section 5.05 below. At the request of Tenant, Landlord shall
perform the work of maintenance and repair constituting Tenant’s obligation
pursuant to this Section 4.03 at Tenant’s sole cost and expense and as an extra
service to be rendered pursuant to Section 3.02(c). Any work of repair
performed by or for the account of Tenant by persons other than Landlord shall
be performed by contractors reasonably approved by Landlord and in accordance
with the provisions of Section 4.06 below. Nothing herein contained, however,
shall be deemed to impose upon Tenant the obligation for performance of work of
maintenance and repair required to be performed by reason of Landlord’s
negligence or willful misconduct or those of any Landlord Responsible Party.

 

4.04. Waste.
Tenant shall not commit waste or allow any waste or damage to occur in any
portion of the Leased Premises.

 

4.05. Assignment or Sublease.

 

(a)               In the event Tenant
assigns this Lease or sublets the Leased Premises or any part thereof to a
Tenant Affiliate, then Tenant shall give Landlord notice of such assignment or
sublease no later than the consummation of such assignment or sublease, unless
it is not reasonably possible to give notice by such time,

 

31

 

in which event Tenant shall give Landlord notice
thereof as soon as reasonably practicable thereafter, Landlord’s approval shall
not be required, but Tenant shall, at the time of such notice, provide Landlord
with a copy of all executed documents effecting such assignment or sublease.

 

(b)              Subject to the
provisions hereof, Tenant shall have the right to assign or sublet the Leased
Premises, or any portion thereof, to a person or entity other than a Tenant
Affiliate on the earlier of: (i) the second anniversary of the Term Commencement
Date, or (ii) the date on which 95% of Net Rentable Area of the Office Section
in the Building is initially leased. In the event Tenant intends to assign this
Lease or sublet the Leased Premises or any part thereof to a person or entity
other than a Tenant Affiliate, then Tenant shall give Landlord notice of such
intent.

 

(1)              If Tenant and/or any
Tenant Affiliates are in occupancy of at least seventy-five (75%) of the Net
Rentable Area included in the Leased Premises on the Term Commencement Date,
any such assignment of this Lease or subletting of the Leased Premises shall be
subject to Landlord’s right to consent or withhold consent thereto as
hereinafter provided, and Tenant shall provide Landlord with (i) the name of
the proposed assignee or sublessee, (ii) such information as to the financial
responsibility and standing of the assignee or subtenant as Landlord shall
reasonably require, (iii) such of the relevant terms and provisions upon which
the proposed assignment or subletting is to be made as Landlord shall
reasonably require, (iv) any additional information or documents reasonably
requested by Landlord. Landlord shall have a period of ten (10) days following
the receipt of any additional information (or twenty (20) days from the date of
Tenant’s original notice, if Landlord does not request additional information)
within which to notify Tenant whether or not Landlord consents to the proposed
assignment or sublease. Landlord’s right to withhold consent to any such
proposed assignment or sublease shall be limited to one or more of the
following reasons: (x) the use of the Leased Premises by the proposed assignee
or sublessee would not constitute a Permitted Use, (y) the character and
business reputation of the proposed assignee or sublessee is

 

32

 

inconsistent with the character of the Building as a
first-class office building, or (z) the proposed assignee or sublessee is not
of sound financial condition as determined by Landlord in the reasonable exercise
of its business judgement. If Landlord should fail to notify Tenant whether or
not Landlord consents to the proposed assignment or sublease within said
period, Landlord shall be deemed to have consented thereto. In no event shall a
failure by Landlord to approve or disapprove a proposed subtenant or assignee
cause a termination of this Lease.

 

(2)              If Tenant and/or any
Tenant Affiliates are in occupancy of less than seventy-five (75%) of the Net
Rentable Area included in the Leased Premises on the Term Commencement Date,
Tenant’s notice to Landlord of its intention to sublet or assign space shall be
accompanied by (i) a summary of the proposed business terms (including, without
limitation, financial terms) on which Tenant intends to assign this Lease or sublet
said space, (ii) the location of the sublet space, if a proposed sublease, and
(iii) any additional information or documents as Landlord may reasonably
require. Landlord shall have a period of ten (10) days following the receipt of
any additional information (or twenty (20) days from the date of the Tenant’s
original notice, if Landlord does not request additional information) within
which to notify Tenant of Landlord’s election either (i) to terminate that
portion of the Leased Premises so affected by Tenant’s desire to sublet or the
entire Leased Premises if Tenant’s desire is to assign this Lease or (ii)
permit Tenant to market said space. If Landlord should fail to notify Tenant of
its election within said period, Landlord shall be deemed to have allowed
Tenant to market said space. If Landlord cancels this Lease as to a portion of
the Leased Premises as provided above, Landlord and Tenant shall enter into a
modification of the Lease so as to equitably reflect the effects of such
cancellation of the space. If Landlord cancels this Lease as to the entire
Leased Premises as provided above, Landlord and Tenant shall execute such
documents as are reasonably necessary to memorialize such cancellation. If
Landlord shall allow Tenant to market said space, when Tenant has

 

33

 

located such assignee or sublessee, the Tenant shall
notify Landlord in accordance with the provisions of subparagraph (1) above and
the other provisions thereof shall apply.

 

(3)              Notwithstanding
anything in this Lease to the contrary, Tenant shall not assign this Lease, nor
sublet the Leased Premises or any portion thereof, to any person or entity who
is then a tenant or subtenant in the Project or who has executed a lease or
sublease to occupy space in the Project, unless at the time Tenant requests
Landlord’s consent to assign this Lease or sublet space (i) ninety-five (95%)
or more of the total rentable area of the Project is subject to leases which
have not been terminated by either Landlord or the tenants thereunder the terms
of which extend at least three (3) months beyond the commencement date of the
proposed assignment or sublease, or (ii) Landlord reasonably determines that it
will be unable to accommodate the proposed assignee’s or sublessee’s need for
space anywhere within the Project within three (3) months after the
commencement date of the proposed assignment or sublease.

 

(4)              Any other assignment
or sublease without the consent of Landlord (which may be withheld in
Landlord’s sole and absolute discretion) shall be prohibited.

 

(c)               Any rent or other
consideration realized by Tenant in connection with any sublease or assignment
(except pursuant to Section 4.05(a)) in excess of the Rent payable hereunder,
after amortization (over the term of such sublease or assignment) of all
reasonable costs incurred by Tenant in connection with such subletting or
assignment (including, without limitation, brokerage commissions, legal fees,
tenant inducements, and reasonable financing charges (the reasonableness of
which is to be determined with reference to the rates then being offered by
institutional lenders for such financing)), shall be divided and paid as
follows: (i) so long as after such assignment or subletting Tenant and/or any
Tenant Affiliate shall occupy not less than seventy-five percent (75%) of the
Net Rentable Area included in the Leased Premises on the Term Commencement
Date, fifty percent (50%) of the excess shall be paid to

 

34

 

Tenant and fifty percent (50%) to Landlord; and (ii)
in all other cases, twenty-five percent (25%) of the excess shall be paid to
Tenant and seventy-five percent (75%) to Landlord.

 

(d)              In any subletting
undertaken by Tenant, other than subletting to Tenant Affiliates or where
Landlord agrees to the contrary, Tenant shall seek to obtain rent at the market
rate for the space so sublet.  In any
assignment of this Lease, other than an assignment to a Tenant Affiliate or
where Landlord agrees to the contrary, Tenant shall seek to obtain from the
assignee consideration reflecting rent at the market rent for the space subject
to such assignment. Tenant shall not be obligated to obtain rent at the market
rate for the space so sublet or assigned.

 

(e)               In the case of each
assignment or sublease: (i) Tenant and the assignee or subtenant, as the case
may be, shall execute an assignment or sublease which shall include terms that
do not materially differ from those previously disclosed to Landlord; (ii)
promptly, but in any event within five (5) Business Days after the execution
thereof, an executed copy of the assignment or sublease shall be delivered to
Landlord; (iii) the terms and provisions of any sublease whereby the sublessee
occupies less than seventy-five percent (75%) of the Net Rentable Area included
in the Leased Premises on the Term Commencement Date shall specifically
prohibit the assignment of the interest of the sublessee, or the sub-subletting
of all or any portion of the Leased Premises covered by the sublease without
the prior written consent of the Landlord, which consent shall not be
unreasonably withheld; (iv) no assignment or sublease shall affect the
continuing primary liability of Tenant (which, following assignment or
sublease, shall be joint and several with the assignee or subtenant, as the
case may be; however, Landlord shall have no obligation to name any such
assignee or sublessee, in connection with enforcing any of Landlord’s rights
against Tenant hereunder); (v) no consent by Landlord to any of the foregoing
in the specific instance shall operate as a waiver in any subsequent instance;
(vi) no assignment or sublease shall permit the assignee, sublessee or any
other person or entity having an interest in the possession, use, occupancy or
utilization of the Leased Premises, to receive or to pay rental or payment on
account of the use, occupancy or utilization of the Leased Premises based in
whole or in part on the net

 

35

 

income or profits derived by any person or entity from
any property leased, used, occupied or utilized (other than an amount based on
a fixed percentage or percentages of receipts of sales); and (vii) no
assignment shall be binding upon Landlord, unless Tenant shall deliver to Landlord
an instrument in form and in substance reasonably satisfactory to Landlord and
in recordable form which contains a covenant of assumption by the assignee with
respect to the period following the effective date of the assignment running to
Landlord and all persons claiming by, through and under Landlord, but the
failure or refusal of the assignee to execute such instrument of assumption
shall not release or discharge the assignee from its primary liability as
Tenant hereunder.

 

(f)                 No assignment or
sublease by Tenant shall relieve Tenant of any obligation under this Lease. Any
assignment or subletting which conflicts with the provisions hereof shall be
void.

 

(g)              If Tenant has
obtained Landlord’s consent to assign this Lease or sublet all or any portion
of the Leased Premises, and Tenant has failed to execute an assignment or
sublease within six (6) months following the date of Landlord’s consent (which
is referred to in Section 4.05(b) above), Tenant shall again be obligated to
notify Landlord of any intent to assign this Lease or sublet all or any portion
of the Leased Premises, and Landlord shall again have the right to approve any
proposed assignment or sublease under Section 4.05(b)(1) and (2) above and, if
applicable, to terminate this Lease as to all or a portion of the Leased
Premises in accordance with Section 4.05(b)(2) above.

 

4.06. Alterations and Surrender. Tenant shall not
make or allow to be made any Tenant Alterations in or to the Leased Premises
without obtaining the prior written consent of Landlord, which consent shall
not be unreasonably withheld with respect to proposed alterations and additions
which (i) comply with all applicable laws, ordinances, rules and regulations,
(ii) are compatible with the Building and its mechanical, electrical, HVAC and
life safety systems, and do not excessively burden the capacity of such
systems; (iii) do not materially interfere with the use and occupancy of any
other portion of the Building; and (iv) do not affect the structural integrity
of the Building, Specifically, but without limiting the generality of the
foregoing, Landlord’s right of consent shall encompass plans and specifications
for proposed alterations or additions, construction

 

36

 

means and methods, the identity of any contractor or subcontractor to
be employed on the work of alterations or additions, and the time for
performance of such work. Tenant shall supply to Landlord any documents and
information reasonably requested by Landlord in connection with its consent
hereunder. Notwithstanding the foregoing, nonstructural Tenant Alterations
which do not impact the Building’s mechanical, electrical, HVAC and life safety
systems and which otherwise satisfy the criteria set forth in (i) through (iv)
above, and the other provisions hereof, shall not require Landlord’s consent if
the cost thereof does not exceed twenty-five thousand dollars ($25,000),
provided, however, that Tenant shall nonetheless provide written notice of the
proposed alteration, together with plans and specifications therefor (or such
other information in lieu of plans and specifications as Landlord may
reasonably require) at least ten (10) Business Days before undertaking any such
work.

 

Notwithstanding that the same may constitute Building Common Areas,
Tenant may paint or decorate that portion of the Building’s fire stairwells
located between floors constituting the Leased Premises, subject to the prior
written consent of Landlord (which shall not be unreasonably withheld).

 

All Tenant Alterations permitted hereunder shall be made and performed
by Tenant without cost or expense to Landlord, and the work necessary therefor
shall be handled in such a manner as to maintain harmonious labor relations and
not interfere with or delay the work of any contractor employed by Landlord;
provided, however, that Tenant and Landlord shall each use reasonable efforts
to avoid any interference between their respective contractors. Tenant’s
contractors, subcontractors and labor shall be subject to reasonable rules and
regulations of the site. If any contractors, subcontractors or labor employed
by or on behalf of Tenant in connection with such Tenant Alterations cause any
dispute, strike or unrest with or amongst other contractors, subcontractors or
labor who may then or thereafter be engaged to work at the Project, Tenant
shall, within two (2) Business Days after written notice to do so by Landlord,
either eliminate the problem or remove the person(s) causing the problem, and
after said two (2) Business Day period, Landlord shall have the right to deny
access to the Project to such person(s). Tenant shall reimburse Landlord upon
demand for any and all costs or expenses incurred by Landlord as a result of
such dispute. Tenant shall take such steps as may be necessary to avoid the
filing, perfection or enforcement of any lien for labor or materials against
the Land or the Building by reason of work performed by or on behalf of Tenant,
and shall cause any such lien to be discharged of record by payment, deposit,
order of court of competent jurisdiction, bonding or other manner reasonably

 

37

 

acceptable to Landlord as soon as is reasonably possible but in no
event more than ten (10) Business Days after the first to occur of (i) the date
on which Tenant receives actual notice of the filing thereof, or (ii) the date
on which Landlord gives notice to Tenant of the filing thereof (except where
such lien is filed as a result of the failure of Tenant to pay any contractor,
subcontractor or labor any amount owing to such contractor, subcontractor or
labor when due, or other fault of Tenant, in which case Tenant shall cause such
lien to be discharged as soon as is reasonably possible). Landlord agrees to
make reasonable efforts to cooperate with Tenant as reasonably necessary to
discharge such lien.

 

Such Tenant Alterations when made to the Leased Premises, together with
all Initial Tenant Improvements, shall become the property of Landlord upon the
termination of this Lease and shall be surrendered to Landlord upon the
termination of this Lease by lapse of time or otherwise; provided, however,
that this clause shall not apply to Tenant’s Personal Property and shall not
apply to any Initial Tenant Improvements or Tenant Alterations specified by
Tenant in a notice given to Landlord and approved by Landlord in writing prior
to effecting the same, or which as a condition of approval Landlord specifies
that Tenant remove, and all of Tenant’s Personal Property together with any
Initial Tenant Improvements or Tenant Alterations so specified by Landlord or
Tenant shall be removed by Tenant, at Tenant’s expense, prior to the expiration
of the Term. At the expiration or termination of this Lease, Tenant shall
peaceably yield up the Leased Premises clean and neat, subject to and in
accordance with the requirements of Section 4.04 (and the obligations of Tenant
provided for in this sentence, and the balance of this paragraph shall survive
any expiration or termination of this Lease). Title to all Tenant Alterations
and Initial Tenant Improvements not removed by Tenant pursuant to the
immediately preceding sentence on or prior to the termination of the Term shall
automatically be conveyed and transferred by Tenant to Landlord upon such
expiration or termination, and shall be deemed abandoned by Tenant and shall
thereupon become the property of Landlord. Tenant shall execute such
documentation confirming and ratifying such conveyance and transfer as Landlord
shall reasonably require. Tenant shall repair at its sole cost and expense, in
a manner reasonably acceptable to Landlord, all damage caused to the Leased
Premises or the Building by removal of Tenant’s Personal Property and such
Initial Tenant Improvements or Tenant Alterations as Tenant shall remove or be
required to remove as a condition of approval from the Leased Premises.

 

38

 

4.07. Compliance with Laws and Insurance
Standards. Tenant shall not permit any portion of the Leased Premises to be
occupied or used for any business or purpose which is inconsistent with the
operation of the Building as a first class office building in Boston, creates a
fire hazard, or would in any way increase the rate of insurance coverage on the
Building and/or its contents. If Tenant does or permits anything to be done
which shall directly increase the cost of any insurance policy carried
hereunder, Landlord shall deliver to Tenant a written statement setting forth
the amount of and reason for any such insurance cost increase and showing in
reasonable detail the manner in which it has been computed, and Tenant shall,
within ten (10) days after receiving such statement, reimburse Landlord for any
such additional premiums. Landlord agrees that if any other tenant of the
Building does or permits anything to be done which directly increases the cost
of any insurance policy carried by Landlord hereunder, Tenant shall not be
required to pay for any portion of such increase and such increase shall not be
included in Operating Costs. Tenant shall comply with all laws, ordinances,
orders, rules and regulations (state, federal, municipal or promulgated by
other agencies or bodies having or claiming jurisdiction) related to the
occupancy, maintenance and repair (unless within Landlord’s obligation under
Section 3.01(a)(iii)) of the Leased Premises by Tenant, and, in pursuance
thereof, Tenant shall keep the Leased Premises equipped with all safety
appliances required by any law or ordinance or other regulation of any public
authority because of the manner of use made by Tenant of the Leased Premises
(as distinguished from those required because of the use of the Leased Premises
for the Permitted Use), and shall procure all licenses and permits required by
any law or ordinance or other regulation of any public authority because of
such manner of use, and, if required by Landlord, do any work required by any
law or ordinance or other regulation of any public authority because of such
manner of use, it being understood that the foregoing provisions shall not be
construed to broaden in any way the Permitted Use. Nothing done by Tenant in
the manner of its use or occupancy of the Leased Premises shall create, require
or cause imposition of any requirement by any public authority for structural
or other upgrading of or improvement to the Building, other than in the Leased
Premises provided that any such upgrading is done at Tenant’s sole expense and
otherwise in accordance with the provisions hereof, including Section 4.06.

 

4.08. Entry for Repairs and Leasing. After
reasonable notice (but not more than two (2) Business Days notice (excluding
the day such notice is given), except in emergencies, when no such notice shall
be required), Landlord, its agents and representatives, shall have the right to
enter the Leased Premises to inspect the same, to exercise such rights as may
be permitted hereunder, to

 

39

 

make repairs to the Building or alterations required for the Building
or other tenant spaces therein, to deal with emergencies, or to exhibit the
Leased Premises to prospective tenants (during the last two (2) years of the
Term), purchasers, encumbrancers or others, or for any other purpose as
Landlord may deem necessary or desirable; provided, however, that Landlord
shall use reasonable efforts not to unreasonably interfere with Tenant’s
business operations. Tenant shall not be entitled to any abatement of Rent by
reason of the exercise of any such right of entry.

 

4.09. No
Nuisance. Tenant shall conduct its business and control its agents,
employees, invitees and visitors in such manner as not to create any nuisance,
or unreasonably interfere with or disturb any other tenant or Landlord in its
operation of the Building.

 

4.10. Subordination. This Lease and the rights of Tenant
hereunder shall be subject and subordinate to any Mortgage, and to any and all
advances made thereunder, interest thereon or costs incurred in connection
therewith, so long as in connection therewith the holder of any such Mortgage
and Tenant shall have executed an agreement in commercially reasonable form and
substance (with due weight being given to the amount of space then being leased
by Tenant) which provides, inter alia, (i) that so long as this Lease is in
full force and effect and there exists no Event of Default hereunder, Tenant’s
rights under this Lease shall not be disturbed by reason of such subordination
or by reason of foreclosure of such Mortgage, or exercise of the statutory
power of sale, or receipt of a deed in lieu of foreclosure, and (ii) that
Tenant shall attorn to the holder or the purchaser at any such sale or
foreclosure or the grantee of any such deed. Until the holder of such Mortgage
shall enter into actual possession of the Leased Premises, such holder shall
not be liable to perform any of the obligations of Landlord hereunder. In the
event of attornment by Tenant pursuant to the provisions of this Section 4.10,
this Lease shall continue in full force and effect as a direct lease between
such mortgagee, purchaser or grantee, as a successor landlord, and Tenant, upon
all the terms, conditions and covenants set forth herein (including, without
limitation, the obligation of Landlord to provide Basic Services pursuant to
Section 3.01(a)), except that such mortgagee, purchaser or grantee (unless
formerly the Landlord under this Lease) shall not be (a) bound by any payment
of Rent for more than one month in advance; (b) bound by any amendment of
modification of this Lease made without the consent of the holder of the
Mortgage; (c) liable in any way to Tenant for any act or omission, neglect or
default on the part of Landlord under this Lease, (d) obligated to perform any
tenant improvements to be done by Landlord in the Leased Premises (other than
the Initial Tenant Improvements), or (e) subject to any counterclaim or set-off
which theretofore

 

40

 

accrued to Tenant against Landlord. Without the consent of Tenant, the
holder of any such Mortgage shall have the right to elect to be subject and
subordinate to this Lease, such subordination to be effective upon such terms
and conditions as such holder may direct which are consistent with the
provisions hereof.

 

4.11. Estoppel Certificate. At Landlord’s request,
Tenant shall execute, acknowledge and deliver (within ten (10) Business Days
after Tenant receives any such request) estoppel certificates on a form
specified by Landlord, addressed to (i) any mortgagee or prospective mortgagee
of Landlord or (ii) any purchaser or prospective purchaser of all or any
portion of, or interest in the Building, certifying as to such facts (if true)
and agreeing to such notice provisions and other matters as such mortgagee(s)
or purchaser(s) may reasonably require; provided, however, that in no event
shall any such estoppel certificate require an amendment of the provisions
hereof or otherwise affect or abridge Tenant’s rights hereunder. At Tenant’s
request, Landlord shall execute, acknowledge and deliver (within ten (10)
Business Days after Landlord receives any such request) an estoppel certificate
certifying (a) that this Lease is in full force and effect, or is in full force
and effect as modified and stating any modifications, (b) whether or not, to
the best of Landlord’s knowledge, Tenant is in default hereunder, and (c) such
other matters as Tenant may reasonably request. All requests for estoppel
certificates pursuant to this Section 4.11, whether by Landlord or Tenant,
shall specifically reference this Section 4.11 and the ten (10) Business Day
period set forth herein.

 

4.12. Tenant’s Remedies. Tenant shall look solely to
Landlord’s interest in the Building for recovery of any judgment from Landlord.
Notwithstanding the foregoing, in the event Landlord intends (whether or not
voluntarily) to transfer its interest in the Building, Landlord shall notify
Tenant of such intended transfer (“Landlord’s Transfer Notice”), exercising
reasonable efforts to do so on the date which is thirty (30) days prior to the
date of closing, but in any event no later than the date of closing. With
respect to any claim which Tenant knows it may then have against Landlord which
is set forth in a notice given to Landlord within thirty (30) days of
Landlord’s Transfer Notice (the “Initial Claim Period”), or, with respect to
claims Tenant becomes aware of after the date Landlord’s Transfer Notice is
given and which are set forth in a notice given to Landlord during the period
from the date upon which Landlord’s Transfer Notice is given to the date of
closing (the “Extra Claim Period”), Landlord’s liability for any such claim
shall not be limited to Landlord’s interest in the Building, but may also be
satisfied out of the proceeds of such transfer net of all reasonable costs

 

41

 

incurred in connection with such transfer (but not out of any other
assets of Landlord). In the event Tenant fails to give such notice to Landlord
within said Initial Claim Period or Extra Claim Period, as the case may be,
Tenant shall be deemed to have waived the rights granted with respect to such
claims under this Section 4.12. in the event of any transfer by Landlord of its
interest in the Building to an affiliate with the intent to hinder, delay or
defraud Tenant with respect to such claim, then notwithstanding such transfer
and the provisions of Section 8.03 to the contrary, Tenant shall be entitled to
look to the Building for recovery of such claim irrespective of the fact that
Landlord shall have no further interest therein. Landlord, its agents,
employees, and, if Landlord is a partnership, its partners, whether general or
limited, or if Landlord is a corporation, its directors, officers or
shareholders, shall never be personally liable for any such judgment. Any lien
obtained to enforce any such judgment and levy of execution thereon shall be
subject and subordinate to any Mortgage.

 

4.13. Rules and Regulations. Tenant shall comply with
the rules and regulations for the Building attached as Exhibit D and such reasonable
amendments thereto as Landlord may adopt from time to time with prior notice to
and consultation with Tenant. Nothing contained in the Rules and Regulations
shall preempt the rights expressly granted to Tenant under this Lease. All
rules and regulations shall be enforced Building-wide in a nondiscriminatory
manner.

 

4.14. Personal Property at Tenant’s Risk. All
of Tenant’s Personal Property 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, by the leakage or bursting of water pipes, steam pipes or
other pipes, or 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 Landlord shall in no
event be held harmless or exonerated for any liability to Tenant or to any
other person, for any injury, loss, damage or liability to the extent caused by
the negligence or willful misconduct of Landlord or any Landlord Responsible
Party.

 

4.15. Payment of Landlord’s Expenses. Tenant
shall pay, as Additional Rent, all reasonable costs, including without
limitation counsel and other fees incurred by Landlord in connection with all
requests by Tenant for consent or approval hereunder (to the extent such costs
are not ordinary and usual costs associated with the ownership or management of
the Building which are included as part of the Operating Cost), and/or the
successful enforcement by Landlord of any obligation of Tenant under this
Lease. Landlord agrees that any such costs incurred by

 

42

 

Landlord in connection with other tenants of the Building shall be paid
by such party and not by Tenant (except to the extent such costs are ordinary
and usual costs associated with the ownership management of the Building which
are included as part of the Operating Cost).

 

4.16. Window Coverings. Tenant shall not place or maintain
any window coverings, blinds or drapes (other than those supplied by Landlord)
on any exterior window of the Building or on any interior window facing the
“Winter Garden” without Landlord’s prior approval, which may be withheld in
Landlord’s absolute and sole discretion. Tenant shall not place any furniture
or equipment of any kind within two (2) feet of the interior surface of any
interior window facing the Winter Garden (other than chairs or similar moveable
furniture temporarily located within said two (2) foot area) and Tenant shall
at all times maintain such interior windows so as to preserve the visual aesthetics
of the Winter Garden. Landlord agrees to impose the requirements of this
Section 4.16 upon all other applicable tenants of the Building and to enforce
such provisions in a uniform manner.

 

 

ARTICLE 5

 

CASUALTY and EMINENT
DOMAIN

 

5.01. Casualty Insurance. Landlord shall maintain, or
cause to be maintained, a policy or policies of insurance with the premiums
thereon fully paid in advance, issued by and binding upon an insurance company
of good financial standing, insuring the Building and the Project Common Areas
against loss or damage by fire or other insurable hazards and contingencies as
are covered in the usual standard extended coverage endorsement or all-risks
endorsement, for one hundred percent (100%) of the replacement cost of the
Building and for ninety percent (90%) of the replacement cost of the Project
Common Areas (excluding, however, the foundation and footings of the Building
and a reasonable deductible); provided, that Landlord shall not be obligated to
insure any of Tenant’s Personal Property, or any Tenant Improvements in excess
of the Building Standard Improvements. If the annual premiums charged Landlord
for such casualty insurance exceed the standard premium rates because the
nature of Tenant’s operations results in extra-hazardous exposure, then Tenant
shall, upon receipt of appropriate premium invoices, reimburse Landlord for
such increases in premium as Additional Rent. Landlord agrees that any such
costs incurred by Landlord in connection with other tenants of the Building shall
not be included as an Operating Cost, and shall not be charged to Tenant. Upon
the request of

 

43

 

Tenant, Landlord shall provide Tenant with a certificate of such
insurance. Any such insurance may be maintained by Landlord under blanket
policy or policies; provided, however, that the minimum amount of the total
insurance afforded by such blanket policy Which shall be allocated to the
Building and the Project Common Areas and any sublimits of such policy allocable
to the Building and the Project Common Areas, shall be in amounts which shall
not be less than the amounts of insurance required hereunder and the protection
afforded Landlord under such policy shall be not less than that which would
have been afforded under a separate policy relating only to the Building and
the Project Common Areas and the certificate evidencing such insurance shall
contain provisions confirming the foregoing.

 

5.02. Liability Insurance. Landlord (with respect to the
Building) and Tenant (with respect to the Leased Premises and the Building)
shall maintain or cause to be maintained a policy or policies of comprehensive
general liability insurance with the premiums thereon fully paid in advance
issued by and binding upon an insurance company of good financial standing,
such insurance to afford minimum protection of not less than Three Million
Dollars ($3,000,000.00) for personal injury or death in any one occurrence and
of not less than Five Hundred Thousand Dollars ($500,000.00) for property
damage in any one occurrence. Such insurance shall be written on an occurrence
basis and the coverages required to be carried thereunder shall be extended to
include blanket contractual liability, personal injury liability (libel,
slander, false arrest and wrongful eviction), and broad form property damage
liability. The insurance carried by Tenant pursuant to this Section 5.02 shall
specifically recognize the liability assumed by Tenant under this Lease and
shall provide that where insurance coverage is provided under more than one
policy, Tenant’s insurance is primary, and any other insurance available to
Landlord or any other named insured is excess. Upon request of either party,
the other party shall provide reasonable evidence that the insurance required
to be maintained hereunder is in full force and effect (it being understood and
agreed that the foregoing obligation to provide evidence of insurance is in
addition to any obligation to provide certificates pursuant to Section 5.01 or
Section 5.03).

 

5.03. Tenant’s Insurance.

 

(a)               Tenant shall carry
the comprehensive general liability insurance required by Section 5.02 hereof
and shall also carry fire and extended coverage insurance on Tenant’s Personal
Property in the Leased Premises in the amount of their full replacement cost
(subject only to a reasonable deductible and co-insurance factor). In

 

44

 

addition, Tenant shall maintain workers’ compensation
insurance and all such other insurance relating to Tenant’s use and occupancy
of the Leased Premises and the Building as may be required by applicable law.
All such policies required to be carried by Tenant hereunder and all evidence
of insurance provided to Landlord shall be issued by responsible, financially
sound companies qualified to do business and in good standing in the
Commonwealth of Massachusetts and shall contain an endorsement showing that
Landlord and each holder of a Mortgage (disclosed in writing to Tenant) is
included as an additional insured (except as to workers’ compensation
insurance), as its interests may appear and an endorsement whereby the insurer
agrees not to cancel or alter the policy without at least thirty (30) days
prior written notice to Landlord, to the holder of such Mortgage and all other
named insureds. Tenant shall, on or prior to occupying any portion of the
Leased Premises, deposit with Landlord certificates of such insurance, and
thereafter, on or prior to fifteen (15) days before the expiration date of any
coverage thereunder, shall deposit with Landlord certificates evidencing the
renewal of such policies. Any such insurance may be maintained by Tenant under
a blanket policy or policies; provided, however, that the minimum amount of the
total insurance afforded by such blanket policy which shall be allocable to the
Leased Premises and any sublimits of such policy allocable to the Leased
Premises, shall be in amounts which shall not be less than the amounts of the
insurance required hereunder, and the protection afforded to Landlord and each
holder of a Mortgage under such policy shall be not less than that which would
have been afforded under a separate policy or policies relating only to the
Leased Premises, and the certificate evidencing such insurance shall contain
provisions confirming the foregoing.

 

(b)              In the event that
Tenant fails to timely furnish Landlord evidence of the insurance required to
be provided by Tenant pursuant to Subsection (a) above, and such failure shall
continue for five (5) Business Days after notice thereof from Landlord,
Landlord shall be authorized (but not required) to procure such coverage in the
amounts stated with all costs thereof to be chargeable to Tenant as Additional
Rent, and payable by Tenant upon receipt of written invoice therefor.

 

45

 

5.04. Indemnity and Exoneration. Except to the
extent such indemnity or exoneration is prohibited by law or as otherwise
expressly provided in this Lease,

 

(a)               Landlord shall not
be liable to Tenant for injury to any person or any loss or damage to any
property or any inconvenience caused by (i) theft, burglary or acts of
unauthorized persons in or about the Building, or (ii) any act of Force
Majeure, any repair or alteration of any part of the Building, or any failure
to make any such repair, except in each case to the extent the same is caused
by the negligence or willful misconduct of Landlord or any Landlord Responsible
Party;

 

(b)              Tenant shall
indemnify Landlord and hold Landlord harmless of and from any and all loss,
cost, damage, injury or expense arising out of or related to claims of injury
to or death of persons or damage to property occurring upon, or resulting from
the use or occupancy of, the Leased Premises or the Building by Tenant, or
resulting from activities of Tenant in or about the Leased Premises or the
Building, such indemnity to include, without limitation, the obligation to
provide all costs of defense against any such claims, except in each case to
the extent the same is caused by the negligence or willful misconduct of
Landlord or any Landlord Responsible Party;

 

(c)               Tenant shall hold
and save Landlord harmless and indemnify Landlord of and from any and all loss,
cost, damage, injury or expense arising out of or in any way related to claims
for work or labor performed, materials or supplies furnished to or at the
request of Tenant or in connection with performance of any work done for the
account of Tenant in the Leased Premises or the Building, excluding all Tenant
Initial Improvements, such indemnity to include, without limitation, the
obligation to provide all costs of defense against any such claim; and (d)
Landlord shall indemnify Tenant and hold Tenant harmless of and from any loss,
cost, damage, injury or expense incurred by Tenant in connection with injury to
or death of persons or damage to property occurring upon the Leased Premises or
the Building to the extent the same is caused by the negligence or willful
misconduct of Landlord or any Landlord Responsible Party, or as a result of any
claim asserted against Tenant by the City of Boston or any other governmental
authority based on

 

46

 

any alleged noncompliance of the Leased Premises or
the Building with any applicable building codes or regulations in effect on the
Completion Date, such indemnity to include, without limitation, the obligation
to provide all costs of defense against any such claim; provided that Landlord
shall not be responsible for any noncompliance of Tenant Alterations.

 

5.05. Waiver of Subrogation Rights. Anything in
this Lease to contrary notwithstanding, to the extent any claim is covered by
casualty insurance, or should be covered by any required casualty insurance,
Landlord and Tenant each waive all rights of recovery, claim, action or cause
of action against the other, its agents (including partners both general and
limited), officers, directors, shareholders or employees, for any loss or
damage that may occur to the Leased Premises, or any improvements thereto, to
the Building or to any personal property of such party therein, by reason of
fire, the elements, or any other cause which are required to be insured against
under the terms of such insurance policies, or any other peril which is in fact
insured, regardless of cause or origin, including negligence of the other party
hereto, its agents, officers or employees; and each party covenants that no
insurer shall hold any right of subrogation against such other party. Each
party shall advise insurers of the foregoing and such waiver shall be a part of
each applicable policy maintained by Landlord and/or Tenant which applies to
the Leased Premises, any part of the Building or Tenant’s use and occupancy of
any part thereof; provided that this waiver shall be null and void if the
affected insurer refuses to consent to such waiver, and provided further that
all costs (if any) associated with obtaining insurer consent shall be borne by
the party benefited by such waiver, unless such party elects to waive the
benefit of such provision.

 

5.06. Condemnation and Loss or Damage.

 

(a)               If all or any
portion of the Leased Premises or the Building shall be taken or condemned for
any public purpose to such an extent as to render the Leased Premises
untenantable as reasonably determined by either Landlord or Tenant, this Lease
shall, at the option of either party (provided such option shall be exercised
by the giving of notice by the exercising party to the other party within sixty
(60) days from the date the exercising party has been notified of such taking
or condemnation) forthwith cease and terminate as of the date of the taking. If
this Lease is not terminated in accordance with the provisions of this
subparagraph (a), the Rent due shall be abated in proportion to the

 

47

 

portion of the Leased Premises so taken, and Landlord
shall be obligated to repair and restore the Leased Premises and/or the
Building and shall proceed diligently to do so; provided, however, that
Landlord shall have no obligation to incur costs to repair and restore the
Leased Premises and/or the Building which exceeds the amount of condemnation
proceeds Landlord realizes or any insurance proceeds which, as a result of such
taking, Landlord realizes or would have realized had Landlord procured the
insurance required by Section 5.01, and provided further Landlord shall have no
obligation to repair and restore any Tenant Alterations, Excess Building
Standard Improvements or Premium Tenant Improvements to the extent the same
were paid for by Tenant. All proceeds from any taking or condemnation of the
Leased Premises shall belong to and be paid to Landlord, and Tenant hereby
assigns to Landlord its interest in said proceeds, subject to the rights of any
holder of any Mortgage; provided, however, Tenant shall be entitled to any
proceeds attributable to Tenant Alterations, Excess Building Standard
Improvements or Premium Tenant Improvements to the extent the same were paid
for by Tenant, and provided further Landlord shall cooperate with Tenant if
Tenant seeks to recover, at its cost and expense, compensation for its moving
expenses and personal property. In no event shall any such recovery by Tenant
have the effect of diminishing or delaying the award payable to Landlord on
account of any taking or condemnation.

 

(b)              In the event of a
temporary taking of all or any portion of the Leased Premises, the Rent due
shall be abated in proportion to the portion of the Leased Premises so taken.
In such event, Landlord shall be obligated to restore the Building and the
Leased Premises as may reasonably be required as a result of such taking and
shall proceed diligently to do so; provided, however, that Landlord shall have
no obligation to incur costs to repair and restore the Leased Premises and/or
the Building which exceeds the amount of condemnation proceeds Landlord
realizes or any insurance proceeds which Landlord realizes or would have
realized had Landlord procured the insurance required by Section 5.01, and provided
further Landlord shall have no obligation to repair and restore any Tenant
Alterations, Excess Building Standard Improvements or Premium Tenant
Improvements to the extent the same were paid for by Tenant.

 

48

 

5.07. Damage Due to Fire and Casualty. In the
event of a fire or other casualty in the Leased Premises, Tenant shall
immediately have notice thereof to Landlord. In the event of any fire or other
casualty in the Building, the following provisions shall apply:

 

(a)               Unless either
Landlord or Tenant is entitled to terminate this Lease pursuant to
subparagraphs (b), (c) or (d) below, and this Lease is so terminated, Landlord
shall be obligated to repair and restore the Leased Premises and/or the Building
and shall proceed diligently to do so; provided, however, that Landlord shall
have no obligation to incur costs to repair and restore the Leased Premises
and/or the Building which exceed the amount of insurance proceeds which
Landlord realizes (or would have realized had Landlord procured the insurance
required by Section 5.01) for such purpose plus an amount equal to (a) any
deductible for such insurance and (b) with respect to the Project Common Areas
only, if one hundred percent (100%) replacement cost coverage was not obtained
with respect thereto, the difference between the proceeds of the replacement
cost insurance actually obtained and the proceeds which would have been
obtained from one hundred percent (100%) replacement cost coverage.

 

(b)              If, at the time a
fire or other casualty occurs, there remains less than twenty-four (24) months
in the Term, and if Landlord reasonably estimates that upon completion of the
repairs and restoration with substantially all damage repaired less than six
(6) months will remain in the Term, Landlord shall, within forty-five (45) days
after the occurrence of the fire or other casualty give Tenant notice either
(i) setting forth the reasons for Landlord’s determination and eliminating from
the Leased Premises, those full floors, if any, which incurred substantial
damage, or (ii) offering Tenant the option of either (x) electing to eliminate
from the Leased Premises those full floors which incurred substantial damage,
or (y) terminating this entire Lease by notice to Landlord given during the
thirty (30) day period following the date Landlord’s notice is given.

 

(c)               Subject to the
provisions of paragraph (b) above, if the damage caused by such fire or other
casualty renders untenantable either (i) fifty percent (50%) or more of

 

49

 

the Net Rentable Area of the Leased Premises, or (ii)
twenty-eight percent (28%) or more of the Net Rentable Area of the Office
Section (including some portion of the Office Section outside of the Leased
Premises) then, if:

 

(x)               such untenantable
space cannot, in Landlord’s reasonable judgment, be made tenantable with
substantially all damage repaired within twelve (12) months of the occurrence
of the fire or other casualty, but can be so repaired or restored within
eighteen (18) months thereof, then

 

(I)                 if at least
twelve (12) months will remain in the Term after  completion of such repair, Landlord shall give Tenant notice  within forty-five (45) days after the date
of such fire or  other casualty,
following which Tenant shall, within thirty 
(30) days of the date Landlord’s notice is given, give  Landlord notice either (i) terminating this
Lease, or (ii)  electing not to
terminate this Lease; and

 

(II)             if less than twelve
(12) months will remain in the Term after 
completion of such repair, Landlord shall, within forty-five  (45) days after the date of such fire or
other casualty, give  Tenant notice (A)
setting forth the reasons for Landlord’s 
determination and, if all other leases in the Building are to  be terminated as a result thereof,
terminating this Lease, (B)  setting
forth the reasons for Landlord’s determination and, if  all other leases in the Building are not
going to be  terminated as a result
thereof, eliminating from the Leased  Premises those full floors, if any, which incurred
substantial  damage, or (C) offering
Tenant the option of (m) electing to 
eliminate from the Leased Premises those full floors which  incurred substantial damage, or (n)
terminating this entire  Lease by notice
to Landlord given during the thirty (30) day 
period following the date Landlord’s notice is given;

 

(y)             such untenantable
space cannot, in Landlord’s reasonable judgment, be made tenantable with
substantially all damage repaired within eighteen (18) months of the occurrence
of the fire or other

 

50

 

casualty, but at least seventy-five percent (75%) of
the Net Rentable Area of the Leased Premises is or can be made tenantable with
substantially all damage repaired within such eighteen (18) month period, and
at least twelve (12) months will remain in the Term after completion of such
repair, then Landlord shall notify Tenant within forty-five (45) days after the
date of such fire or other casualty, following which Tenant shall, within
thirty (30) days of the date Landlord’s notice is given, give Landlord notice
(i) electing to eliminate from the Leased Premises those full floors which
cannot be made tenantable within such eighteen (18) month period, (ii) terminating
this entire Lease, or (iii) electing not to terminate this Lease; and

 

(z)               notwithstanding the
foregoing, (I) at least seventy-five percent (75%) of the Net Rentable Area of
the Leased Premises cannot be made tenantable with substantially all damage
repaired within eighteen (18) months following the fire or other casualty or
(II) even if at least seventy-five percent (75%) of the Net Rentable Area of
the Leased Premises can be made tenantable with substantially all damage
repaired within such eighteen (18) month period but less than twelve (12)
months will remain in the Term after the completion of such repair, then
Landlord shall notify Tenant within forty-five (45) days after the date of the
fire or other casualty, and either Landlord or Tenant may terminate this Lease
within thirty (30) days of the date Landlord’s notice is given.

 

(d)              If Landlord is
obligated to restore the Leased Premises or the Building in accordance with
subparagraph (a) above, and Landlord has not commenced restoration within six
(6) months from the date of damage or destruction, Tenant may terminate this
Lease, such termination right to be exercised by notice to Landlord within
thirty (30) days after such right accrues.

 

(e)               During any period
when Tenant’s use of the Leased Premises is materially affected by damage or
destruction, Gross Rent shall abate proportionately until such time as the
Leased Premises are made tenantable as reasonably determined by Landlord and no
portion of the Rent so abated shall be subject to subsequent recapture, except
from the proceeds of

 

51

 

insurance policies maintained by Landlord covering
such lost Rent, if any.

 

(f)                 The proceeds from
any insurance paid by reason of damage to or destruction of the Building or any
part thereof, the Building Standard Improvements or any other element,
component or property insured by Landlord shall belong to and be paid to
Landlord, subject to the rights of the holder of any Mortgage, and Tenant
hereby assigns to Landlord any interest in said proceeds.

 

ARTICLE 6

 

DEFAULT

 

6.01. Events of Default. The occurrence of any of the
following shall constitute an “Event of Default” on the part of Tenant:

 

(a)               Nonpayment of Gross
Rent. Failure to pay any regularly scheduled payment of Gross Rent due and
payable hereunder, upon the date when payment is due, such failure continuing
for a period of five (5) Business Days after notice of such failure; provided,
however, that Landlord shall not be required to provide such notice more than
twice during any consecutive twenty-four (24) month period within the Term and
the third and any subsequent such non-payment occurring within the same
twenty-four (24) month period shall constitute an Event of Default without
requirement of notice;

 

(b)              Nonpayment of Other
Amounts. Failure to make any other payment due and payable hereunder, upon the
date when payment is due, such failure continuing for a period of ten (10)
Business Days after written notice of such failure;

 

(c)               Other Obligations.
Failure to perform any other obligation, agreement or covenant under this
Lease, other than those matters specified in Section 6.01(a) or (b), such
failure continuing for fifteen (15) Business Days after notice of such failure
(or such longer period as is reasonably necessary to remedy such default,
provided that Tenant shall within such fifteen (15) Business-Day period have
commenced such remedy and thereafter Tenant shall continuously and diligently
pursue such remedy at all times until such default is cured);

 

52

 

(d)              Abandonment.
Abandonment of more than 40,000 square feet of Net Rentable Area of the Leased
Premises during the Term, unless, within ten (10) days after such abandonment,
Tenant shall have indicated an intention to itself to reoccupy the entire
Leased Premises within one hundred and twenty (120) days (or if such
reoccupancy shall include occupancy by subtenants or assignees in accordance
with Section 4.05 hereof, within one hundred and eighty (180) days), or the
failure of Tenant to so reoccupy the entire Leased Premises within said one
hundred and twenty (120) day period (or, in the case of occupancy by subtenants
or assignees, within said one hundred and eighty (180) day period). Tenant shall
be deemed to have abandoned the Leased Premises if the Leased Premises remain
substantially vacant or unoccupied to an extent that might reasonably
jeopardize the validity of insurance coverage thereon;

 

(e)               General Assignment.
A general assignment by Tenant for the benefit of creditors;

 

(f)                 Bankruptcy. The
filing of any voluntary petition in bankruptcy by Tenant, or the filing of an
involuntary petition by Tenant’s creditors, which involuntary petition remains
undischarged or unstayed for a period of one hundred and eighty (180) days. In
the event that under applicable law the trustee in bankruptcy or Tenant has the
right to affirm this Lease and continue to perform the obligations of Tenant
hereunder, such trustee or Tenant shall, in such time period as may be
permitted by the bankruptcy court having jurisdiction, cure all defaults of
Tenant hereunder outstanding as of the date of the affirmance of this Lease and
provide to Landlord such adequate assurances as may reasonably be necessary to
ensure Landlord of the continued performance of Tenant’s obligations under this
Lease;

 

(g)              Receivership. The
employment of a receiver to take possession of substantially all of Tenant’s
assets or the Leased Premises, if such receivership remains undissolved for a
period of ninety (90) days after creation thereof;

 

(h)              Attachment. The
attachment, execution or other judicial seizure of all or substantially all of
Tenant’s assets or the Leased Premises, if such attachment or other seizure
remains undismissed or undischarged for a period of ninety (90) days after the
levy thereof;

 

53

 

(i)                  Insolvency. The
admission by Tenant in writing of its inability to pay its debts as they become
due, the filing by Tenant of a petition seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, the filing by
Tenant of an answer admitting or failing timely to contest a material allegation
of a petition filed against Tenant in any such proceeding or, if within one
hundred and eighty (180) days after the commencement of any proceeding against
Tenant seeking any reorganization, or arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future statute,
law or regulation, such proceeding shall not have been dismissed.

 

6.02. Remedies upon Default.

 

(a)               If an Event of
Default occurs, Landlord shall have the right, with or without notice or demand,
immediately to terminate this Lease, and at any time thereafter recover
possession of the Leased Premises or any part thereof and expel and remove
therefrom Tenant and any other person occupying the same, by any lawful means,
and again repossess and enjoy the Leased Premises without prejudice to any of
the remedies that Landlord may have under this Lease, or at law or equity by
reason of Tenant’s default or of such termination.

 

(b)              Even though an Event
of Default shall have occurred pursuant to Section 6.01, this Lease shall
continue in effect and Tenant shall have the right to cure any such Event of
Default for so long as Landlord does not terminate this Lease under Section
6.02(a) hereof, and Landlord may enforce all of its rights and remedies under this
Lease, including, without limitation, the right to recover Rent as it becomes
due. Acts of maintenance, preservation or efforts to lease the Leased Premises
or the appointment of a receiver upon application of Landlord to protect
Landlord’s interest under this Lease shall not constitute an election to
terminate the Lease.

 

6.03. Damages upon Termination. Should Landlord
terminate this Lease pursuant to the provisions of Section 6.02(a) hereof, in
addition to any other rights and remedies to which Landlord may be entitled
under applicable law, Landlord shall be entitled to recover from Tenant: (i)
the worth at the time of award of the

 

54

 

unpaid Rent and other amounts which had been earned at the time of termination;
(ii) the worth at the time of award of the amount by which the unpaid Rent
which would have been earned after termination until the time of award exceeds
the amount of such Rent loss that the Tenant proves could have been reasonably
avoided; (iii) the worth at the time of award of the amount by which the unpaid
Rent for the balance of the Term after the time of award exceeds the rental
value of the Premises for the balance of the Term; and (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s failure to perform its obligations under this Lease. Tenant further
covenants, as an additional cumulative obligation after any such termination,
to punctually pay to Landlord all sums and perform all obligations which Tenant
covenants in this Lease to pay and to perform, as if this Lease had not been
terminated, whether or not such obligations arose prior to, concurrent with or
after such termination. In calculating the amounts to be paid by Tenant pursuant
to the immediately preceding sentence, Tenant shall be credited with any amount
paid to Landlord pursuant to the first sentence of this Section 6.03, and also
with the net proceeds of any rent obtained by Landlord by reletting the Leased
Premises through the time of award, after deducting all Landlord’s expenses in
connection with such reletting, including without limitation, all repossession
costs, brokerage commissions, fees for legal services and expenses of preparing
the Leased Premises for reletting, it being agreed by Tenant that Landlord may
(x) relet the Leased Premises or any part thereof for a term or terms which may
at Landlord’s option be equal or less than or exceed the period which would
otherwise have constituted the balance of the Term and may grant such
concessions and free rent as Landlord in its exercise of business judgment
considers advisable or necessary to relet the same and (y) make such
alterations, repairs and decorations in the Leased Premises and the Building as
Landlord in its sole judgment considers advisable or necessary to relet the
same, and no action of Landlord in accordance with the foregoing or failure to
relet or collect rent under Landlord’s reletting of the Premises shall operate
or be construed to release or reduce Tenant’s liability as aforesaid unless and
to the extent Tenant proves such failure could reasonably have been avoided.
The “time of award” shall refer to such time as (I) Tenant shall, as a
settlement of the amounts due pursuant to this Section 6.03, pay to Landlord
such sums pursuant to a written agreement in form and substance satisfactory to
Landlord, or (II) the date on which a Judgment shall be entered in a court of
competent jurisdiction to the effect that Tenant shall pay Landlord the amounts
due and owing pursuant to this Section 6.03. The “worth at the time of award”
of the amounts referred to in (i) and (ii) shall mean such amounts together
with interest at the lesser of eighteen percent per annum or the maximum rate
allowed by law. The “worth at

 

55

 

the time of award” of the amount referred to in (iii) shall mean such
amounts as computed by reference to competent appraisal evidence or the formula
prescribed by and using the lowest discount rate utilized by commercial
appraisers in calculating such amounts for such purpose.

 

6.04. Computation of Rent for Purposes of
Default. For purposes of computing unpaid Rent which would have accrued and
become payable under this Lease for the balance of the Term pursuant to the
provisions of Section 6.03, unpaid Rent shall consist of the sum of:

 

(a)               the total Net Rent
for the balance of the Term, plus

 

(b)              a computation of the
Operating Cost and Impositions for the balance of the Term, the assumed
Operating Cost for the calendar year of the default and each future calendar
year in the Term to be equal to the Operating Cost for the calendar year prior
to the year in which the default occurs compounded at a per annum rate equal to
the mean average rate of inflation for the preceding five (5) calendar years as
determined by the United States Department of Labor, Bureau of Labor Statistics
Consumer Price Index (All Urban Consumers, All Items, 1982-1984 equals 100). If
such Index is discontinued or revised, the average rate of inflation shall be
determined by reference to the index designated as the successor or substitute
index by the government of the United States.

 

6.05. Rights of Landlord in Bankruptcy. 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 in this Article 6.

 

6.06. Interest on Late Payments. In addition to its
other remedies, Landlord shall have the right to add to the amount of any
payment required to be made by Tenant hereunder, and which is not paid on or
before the date the same is due, interest on all unpaid payments at the rate of
six percent (6%) per annum over the prime rate of the Bank of Boston, or any
successor institution thereto, for so long as the delinquency remains
outstanding, the parties agreeing that Landlord’s damage by virtue of such
delinquencies would be difficult to compute and the amount stated

 

56

 

herein represents a reasonable estimate thereof. All such interest
charges shall be due upon demand by Landlord. Tenant shall reimburse Landlord
for all costs and expenses (including reasonable attorneys’ fees) incurred by
Landlord to recover the interest charges due hereunder.

ARTICLE 7

 

APPRAISAL

 

7.01. Appraisal of Fair Market Net Rent. In the
event that Tenant disputes the amount claimed by Landlord as Fair Market Net
Rent, and such dispute cannot be resolved by mutual agreement, the dispute
shall be submitted to the appraisal process hereinafter set forth. The amount
of Fair Market Net Rent determined pursuant to such appraisal process shall be
final and binding between the parties. The appraisal process shall be conducted
as follows:

 

(a)               Tenant shall make
demand for appraisal in writing within thirty (30) days after service of
Landlord’s determination of Fair Market Net Rent given under Section 9.02 or
Section 10.04 or otherwise under this Lease, specifying therein the name and address
of the person to act as the appraiser on its behalf. The appraiser shall be a
real estate appraiser with at least ten (10) years’ experience in the leasing
or appraisal of first-class commercial office space (with at least five (5)
years experience in Boston) and a qualified member of the American Institute of
Real Estate Appraisers, or any successor of such Institute (or if such
organization or successor shall no longer be in existence, a recognized
national association or institute of land appraisers). Failure on the part of
the Tenant to make a timely and proper demand for such appraisal shall
constitute a waiver of the right thereto. Within ten (10) business days after
the service of the demand for appraisal, Landlord shall give notice to Tenant, specifying
the name and address of the person designated by Landlord to act as appraiser
on its behalf who shall be similarly qualified. If Landlord fails to notify
Tenant of the appointment of its appraiser, within or by the time above
specified then the Tenant may thereafter send a second notice to Landlord
indicating such failure and requesting Landlord to appoint such an appraiser.
If Landlord fails to

 

57

 

notify Tenant of the appointment of its appraiser
within ten (10) business days after the giving of such second notice by Tenant
then the appraiser appointed by Tenant shall be the sole appraiser to determine
the issue.

 

(b)              In the event that
two (2) appraisers are chosen pursuant to Section 7.01(a) above, the appraisers
so chosen shall meet within ten (10) business days after the second appraiser
is appointed and, if within ten (10) business days after such first meeting the
two appraisers shall be unable to agree upon a determination of Fair Market Net
Rent, they, themselves, shall appoint a third appraiser, who shall be a
competent and impartial person with qualifications similar to those required of
the first two appraisers. In the event they are unable to agree upon such
appointment within five (5) business days after expiration of said ten (10) day
period, the third appraiser shall be selected by the parties themselves, if
they can agree thereon, within a further period of ten (10) business days. If
the parties do not so agree, then either party, on behalf of both, may request
appointment of such a qualified person by an officer of the American
Arbitration Association in Boston. The three (3) appraisers shall decide the
dispute, if it has not previously been resolved, by following the procedure set
forth in Section 7.01(c) below.

 

(c)               Where the issue
cannot be resolved by agreement between the two appraisers selected by Landlord
and Tenant or settlement between the parties during the course of the appraisal
process, the issue shall be resolved by the three appraisers in accordance with
the following procedure. The appraiser selected by each of the parties shall
each state in writing his determination of the Fair Market Net Rent, supported
by the reasons therefor, with counterpart copies to each party. The appraisers
shall arrange for a simultaneous exchange of such proposed determinations. The
role of the third appraiser shall be to select which of the two proposed
determinations most closely approximates his own determination of Fair Market
Net Rent. The third appraiser shall have no right to propose a middle ground or
any modification of either of the two proposed determinations. The
determination he chooses as most closely approximating his determination shall
constitute the decision of the appraisers and be final and binding upon the
parties. This provision for determination by appraisal shall be specifically
enforceable to the

 

58

 

extent such remedies are available under applicable
law, and any determination hereunder shall be final and binding upon the
parties hereto, and either party shall have the right to enter judgement
thereon, unless otherwise provided by applicable law. If a determination of
Fair Market Net Rent is to be made pursuant to this Section 7.01, Landlord and
Tenant shall each pay for the fees and disbursements of any appraiser appointed
by it and shall share equally in the fees and expenses of any third appraiser.

 

(d)              In the event of a
failure, refusal or inability of any appraiser to act, his successor shall be
appointed by him, but in the case of the third appraiser, his successor shall
be appointed in the same manner as provided for appointment of the third
appraiser. 

 

ARTICLE 8

 

MISCELLANEOUS

 

8.01. Holding Over. In the event of holding over by Tenant after
expiration or termination of this Lease without the written consent of
Landlord, Tenant shall pay for each month or portion thereof of the holdover
tenancy holdover rent at the rate of twice the rate of Gross Rent which Tenant
was obligated to pay for the month or portion thereof immediately preceding the
end of the Term together with such other amounts as may become due hereunder.
No holding over by Tenant after the Term or Extended Term shall operate to
extend the Term. In the event of any unauthorized holding over, Landlord may
give notice to Tenant of such holdover, and, if Landlord gives such notice to
Tenant, Tenant shall indemnify Landlord (i) against all claims for damages by
any other tenant to whom Landlord may have leased all or any part of the Leased
Premises covered hereby effective upon the termination of this Lease, and (ii)
for all other losses, costs and expenses, including reasonable attorneys’ fees,
incurred by Landlord by reason of such holding over. Landlord shall include in
its notice to Tenant hereunder an estimate of the damages which Landlord
reasonably anticipates suffering in the six (6) months following such notice as
a result of Tenant’s holdover, but such indemnity shall be effective whether or
not any of the damages actually suffered by Landlord were set forth in
Landlord’s notice to Tenant and shall not in any manner be limited to
Landlord’s failure to list any such damage in its notice to Tenant so long as
Landlord

 

59

 

was reasonable in furnishing Tenant its estimate. Any holding over with
the consent of Landlord in writing shall thereafter constitute a lease from
month to month subject to the terms hereof.

 

8.02. Amendments and Modifications. This Lease
may not be altered, changed or amended, except by an instrument in writing
signed by both parties hereto. If in connection with obtaining financing for
the Building, a bank, insurance company, pension trust or other institutional
lender shall request modifications to this Lease as a condition to such
financing, Tenant shall promptly consider such requests, shall give serious
consideration to all reasonable requests, and, if Tenant shall not consent to
any such request, shall set forth in writing the reasons for its refusal to do
so. No modification which would increase the obligations of Tenant hereunder or
materially adversely affect the leasehold interest hereby created shall be
deemed a reasonable request.

 

8.03. Transfers by Landlord. Landlord shall have the
right to transfer and assign all of its rights and obligations hereunder in the
Building, and in such event and upon such transfer, no further liability or
obligations shall thereafter accrue for obligations arising after such transfer
or assignment against such party as Landlord hereunder. No owner of the Leased
Premises shall be liable under this Lease except for breaches of Landlord’s
obligations occurring while such person is the owner of the Leased Premises.

 

8.04. Severability. If any term or provision of this Lease, or
the application thereof to any person or circumstances, shall to any extent be
invalid or unenforceable, the remainder of this lease, or the application of
such provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each provision of
this Lease shall be valid and shall be enforceable to the fullest extent
permitted by law.

 

8.05. Notices.
All notices, demands, consents and approvals which may be or are required to be
given by either party to the other hereunder shall be in writing and shall be
deemed to have been fully given (a) in the case of Landlord, when personally
delivered to the Landlord at the address specified for Landlord on the Basic
Lease Information Sheet, and in the case of Tenant, when two (2) of the same
are personally delivered to the Tenant addressed “Attention: General Counsel”
and to the Tenant addressed “Attention: Treasurer”, both at the address
specified for Tenant on the Basic Lease Information Sheet (provided, however,
that in the case of any notice by Landlord to Tenant regarding a lien pursuant
to Section 4.06 or regarding an Event of

 

60

 

Default pursuant to Section 6.01, such notice shall state “NOTICE OF
LIEN” or “NOTICE OF DEFAULT”, respectively, in boldfaced capital letters), or
(b) when deposited with the United States mail, certified or registered,
postage prepaid, or with a recognized overnight delivery service which furnishes
receipts of delivery in the ordinary course of its business, in the case of
Landlord, at the address specified for Landlord on the Basic Lease Information
Sheet, and in the case of Tenant, addressed “Attention: General Counsel” and
“Attention: Treasurer”, both at the address specified for Tenant on the Basic
Lease Information Sheet (provided, however, that in the case of any notice by
Landlord to Tenant regarding a lien pursuant to Section 4.06 or regarding an
Event of Default pursuant to Section 6.01, such notice shall state “NOTICE OF
LIEN” or “NOTICE OF DEFAULT”, respectively, in boldfaced capital letters). Any
party may, from time to time, designate a new address for delivery, for
purposes of this notice provision, by notice given at least fifteen (15) days
in advance in accordance herewith of such new address.

 

8.06. No Joint Venture. This Lease shall not be deemed or
construed to create or establish any relationship of partnership or joint
venture or similar relationship or arrangement between Landlord and Tenant
hereunder.

 

8.07. Successors and Assigns. This Lease shall be
binding upon and inure to the benefit of Landlord, its successors and assigns
(subject to the provisions hereof, including, but without limitation, Section
8.03); and shall be binding upon and, subject to the provisions of Section 4.06
hereof, inure to the benefit of Tenant, its successors and assigns.

 

8.08. Applicable Law. All rights and remedies of Landlord and
Tenant under this Lease shall be construed and enforced according to the laws
of the Commonwealth of Massachusetts.

 

8.09. Time of the Essence. Time is of the essence of each
and every covenant herein contained.

 

8.10. Submission Not an Option. The submission of this
Lease for examination does not constitute a reservation of or option for the
Leased Premises or an offer to lease, it being understood and agreed that
neither Landlord nor Tenant shall be legally bound with respect to the leasing
of the Leased Premises unless and until this Lease has been executed and
delivered by both Landlord and Tenant.

 

8.11. Brokerage.
Tenant and Landlord each warrant to the other that it has had no dealings with
any broker or agent in connection with this Lease other than Meredith &
Grew and Leggat McCall/Grubb

 

61

 

and Ellis Inc., and each covenants to defend (with counsel reasonably
approved by the other party), hold harmless and indemnify the other party from
and against any and all costs, expense or liability for any compensation,
commission and charges claimed by any broker or agent arising out of the
warranting party’s dealings in connection with this Lease or the negotiation
thereof. The fee for the brokers referred to above shall be paid by Landlord.

 

8.12. Waiver of Jury Trial. Landlord and Tenant hereby
waive trial by jury in any action, proceeding or counterclaim brought by either
of the parties hereto against the other, on or in respect of any matter
whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant hereunder, Tenant’s use or occupancy of the
Leased Premises, and/ or any claim of injury or damages.

 

8.13. All Agreements Contained. This Lease contains
all of the agreements of the parties with respect to the subject matter hereof and
supersedes all prior dealings between them with respect to such subject matter.

 

8.14. Cumulative Remedies. 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 it
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 and Tenant shall each 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.

 

8.15. Failure to Enforce. The failure of Landlord or Tenant
to declare any default upon its occurrence or to seek redress for any default
of, or to insist upon strict performance of, any covenant or condition of this
Lease, shall not be deemed a waiver of such default, nor prevent a subsequent
act which would have originally constituted a default from having all the force
and effect of the original default. The failure of the Landlord to enforce any
of the rules and regulations applicable to the Building against any other
tenant in the Building shall not be deemed a waiver of any such rules or
regulations, provided, however, that Landlord shall not enforce such rules and
regulations in a discriminatory manner. The receipt by Landlord of Rent with
knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach. No provision of this Lease shall be deemed to have been
waived by Landlord, unless such waiver shall be in writing and

 

62

 

signed by Landlord. No consent or waiver, express or implied, by
Landlord or Tenant to any breach of any agreement or duty shall be construed as
a waiver or consent to or of any other breach of the same or any other
agreement or duty.

 

8.16. Notice of Lease; Other Notices and
Agreements. Tenant agrees not to record this Lease, but on the request of
either party hereto, both parties hereto shall execute and deliver (i) a notice
of this Lease in form appropriate for recording and registration, (ii) an
agreement setting forth the Term Commencement Date, (iii) a notice in form
appropriate for recording and registration of any amendment of this Lease, (iv)
as reasonably requested by any holder of a Mortgage, an agreement by Tenant to
make payments and give notices to whatever individual or entity shall be
designated by Landlord for receiving any such notice or payment and to comply
with the provisions of any assignment of rents granted to the holder of any
Mortgage, and (v) if this Lease is terminated before the expiration of the
Term, an instrument in form appropriate for recording and registration pursuant
to which Tenant acknowledges the date of termination.

 

8.17. Moving Expense Reimbursement. Landlord
agrees to reimburse Tenant for expenses incurred by Tenant in relocating to the
Leased Premises in an amount equal to One Dollar ($1.00) per square foot of Net
Rentable Area of the Leased Premises at the time of Tenant’s initial occupancy.
Such amount shall be payable by Landlord to Tenant in cash installments as such
expenses are incurred by Tenant in the ordinary course of such relocation in a
manner consistent with normal business practices during the second year of the
Term, with each installment due within thirty (30) days of Landlord’s receipt
of an invoice therefor from Tenant. Tenant agrees not to voluntarily prepay any
of such moving expenses.

 

8.18. Release of Existing Lease Obligations.
Tenant is expected to have continuing obligations under Tenant’s existing
leases at One Memorial Drive, Cambridge or One Beacon Street, Boston (the
“Existing Leases”) with respect to the period from the Completion Date to the
Rent Commencement Date. Any cost savings achieved by subletting or assigning
any portion of the premises under the Existing Leases, successfully negotiating
a release of Tenant from any of Tenant’s obligations to pay rent or escalations
under the Existing Leases, or reducing any identifiable operating costs payable
to the landlord under the Existing Leases or to a utility company providing
service to the premises demised under the Existing Leases (as determined in
comparison to the such costs for the full calendar year immediately preceding
the Completion Date), shall be shared equally by Landlord and Tenant, after
deducting any cost incurred by Tenant which is associated with achieving the

 

63

 

same. Nothing stated herein shall obligate Tenant to achieve any such
savings, but Tenant shall discuss with Landlord in good faith any attempts at
achieving such savings and pursue in good faith such efforts as Tenant shall
determine is appropriate to achieve such savings (it being understood that
Tenant may, in good faith, elect not to relocate all or any portion of its
operations for the first year after the Term Commencement Date).

 

8.19. Hiring Practices. Tenant covenants that Tenant shall
comply with all laws, ordinances, regulations and orders referenced in Section
12.01 of the Amended and Restated Sale and Construction Agreement by and among
the City of Boston, the Boston Redevelopment Authority, New England Mutual Life
Insurance Company and Gerald D. Hines Interests, Inc. dated April 15, 1986,
recorded with the Suffolk Registry of Deeds in Book 12515, Page 78.
Notwithstanding any other provision of this Lease, Landlord shall have no right
to terminate this Lease by reason of Tenant’s breach of this covenant, but
Tenant shall in good faith make reasonable efforts to cure any breach of this
covenant after notice to Tenant from any public agency, authority or other instrumentality
with Jurisdiction to enforce any such laws, ordinances, regulations or orders
that Tenant has failed to so comply, or after notice to Tenant from Landlord
that Landlord has received notice from any such public agency, authority or
other instrumentality that Tenant has failed to so comply, provided that Tenant
may in good faith challenge any assertion by a public agency, authority or
other instrumentality that Tenant has failed to so comply or the validity or
enforceability of any such laws, ordinances, regulations or orders.

 

ARTICLE 9

 

OPTIONS TO EXTEND THE
TERM

 

9.01. Grant and Exercise of Options to Extend.
So long as there shall exist, at the time of the giving of Tenant’s Two Year
Notice or Tenant’s Five Year Notice hereunder, as the case may be, no Event of
Default, or condition as to which Tenant has received notice, which, with the
passage of time, would constitute an Event of Default (unless Tenant commences
to cure such condition prior to the occurrence of an Event of Default as a result
thereof and thereafter continuously and diligently pursues such cure to
completion), Tenant shall have the right to extend the Term beyond the Term
Expiration Date (such extension being hereinafter referred to as an “Extended
Term”) for either (i) one additional two (2) year period by giving Landlord
notice of its election to extend (“Tenant’s Two Year Notice”) no less than
thirty-six (36) months

 

64

 

prior to the Term Expiration Date (the “Two Year Option”) or (ii) one
additional period of five (5) years by giving Landlord notice of its election
to extend (“Tenant’s Five Year Notice”) no less than twenty-four (24) months
prior to the Term Expiration Date (the “Five Year Option”). The giving of
Tenant’s Two Year Notice or Tenant’s Five Year Notice by Tenant, as the case
may be, shall automatically extend the term of the Lease for the applicable
Extended Term. In the event Tenant elects to exercise the Five Year Option, and
so long as there shall exist, at the time of the giving of Tenant’s Second
Notice hereunder, no Event of Default, or condition as to which Tenant has
received notice, which, with the passage of time, would constitute an Event of
Default (unless Tenant commences to cure such condition prior to the occurrence
of an Event of Default as a result thereof and thereafter continuously and
diligently pursues such cure to completion), Tenant shall also have the right
to an additional Extended Term (the “Additional Extended Term”) for one
additional period of five (5) years or ten (10) years (as determined by
Landlord in its sole discretion) (the “Extra Option”). In the event Tenant
desires to exercise the Extra Option, Tenant shall, no earlier than thirty-six
(36) months prior to the end of the existing Extended Term and no later than
twenty-six (26) months prior to the end of the existing Extended Term, provide
Landlord notice of such intention and request Landlord to determine whether the
length of the Additional Extended Term shall be five (5) years or ten (10)
years (“Tenant’s Notice of Intention”). Landlord shall, within thirty (30) days
of Tenant’s Notice of Intention, notify Tenant whether the length of the
Additional Extended Term stall be five (5) years or ten (10) years. Following
such determination by Landlord, Tenant may exercise the Extra Option by giving
Landlord notice of such election (“Tenant’s Second Notice”) no later than
twenty-four (24) months prior to the end of the existing Extended Term. The
giving of Tenant’s Second Notice by Tenant shall automatically extend the term
of the Lease for the Additional Extended Term. Failure by Tenant to give any
notice required hereunder in a timely manner shall constitute a waiver of such
Option to Extend and any subsequent Option to Extend. If Tenant does not
exercise either the Two Year Option or the Five Year Option, the Term shall
continue until the Term Expiration Date; if the Tenant exercises the Five Year
Option, but fails to exercise the Extra Option, the Term shall continue until
the last day of the first Extended Term.

 

9.02. Election to Reduce the Leased Premises.
The rights to extend shall apply only to all of the space included as a part of
the Leased Premises on the last day of the Term Expiration Date, or if Tenant
exercises the Extra Option, on the last day of the existing Extended Term;
provided, however, that (a) Tenant may elect in Tenant’s Five Year Notice (but
not in Tenant’s Two Year

 

65

 

Notice) to reduce the Leased Premises for the Extended Term by
eliminating from the Leased Premises the top floor or the top two floors then
included in the Leased Premises, specified in such notice; and (b) Tenant may
elect in Tenant’s Second Notice to reduce the Leased Premises for the
Additional Extended Term by eliminating from the Leased Premises the top floor
then included in the Leased Premises, as specified in Tenant’s Second Notice,
but only if Tenant did not elect to reduce the Leased Premises in Tenant’s Five
Year Notice or elected to reduce the Leased Premises by only one floor, or
Tenant may elect to reduce the Leased Premises for the Additional Extended Term
by eliminating from the Leased Premises the top two floors then included in the
Leased Premises, but only if Tenant did not elect to reduce the Leased Premises
at all in Tenant’s Five Year Notice. If Tenant exercises its election to reduce
the Leased Premises hereunder, Tenant and Landlord shall execute an amendment
to this Lease appropriately revising the Basic Lease Information Sheet: (i) to
delete the floor or floors removed from the Leased Premises and deleting the
floor or floors from Exhibit A, (ii) to restate the Net Rentable Area of the
Leased Premises, and (iii) to restate the Tenant’s Proportionate Share.

 

9.03. Rent During Extended Term. The Base Rent for
the Extended Term shall be (i) for the two year Extended Term, $16.00 plus
seventy-five (75%) of the amount by which Fair Market Net Rent exceeds $16.00
but in no event shall it be less than $16.00 or (ii) for any other Extended
Term, Fair Market Net Rent. Such Base Rent shall be in effect as of the first
day of such Extended Term. The Fair Market Net Rent shall be determined by
Landlord with notice given to Tenant no later than one hundred and twenty (120)
days prior to the commencement of the Extended Term subject to the Tenant’s
right to demand appraisal pursuant to the provisions of Section 7.01. Failure
on the part of the Landlord to give such notice in a timely manner shall not
vitiate the right to require an adjustment of the Base Rent but such delay
shall result in deferral of any increase or decrease in the Base Rent to a date
one hundred and twenty (120) days after the date of such notice. Failure on the
part of Tenant to demand appraisal within thirty (30) days after receipt of
notice from Landlord of Landlord’s determination of Fair Market Net Rent shall
constitute a waiver of Tenant’s right to demand appraisal, and shall bind
Tenant to the Fair Market Net Rent as determined by Landlord. Should Tenant
elect to exercise its right to demand appraisal and should the appraisal
process not have been concluded prior to the Extended Term, then the greater of
(i) the Base Rent which was previously in effect or (ii) Tenant’s estimate, if
any, of the Fair Market Net Rent, as applicable, shall be temporarily
applicable for purposes of determining Tenant’s obligation to pay the Base
Rent. However, once the new rate is in fact agreed upon or determined,

 

66

 

if it is higher than the rate paid by Tenant during the period such
rate should have been in effect, then Tenant shall pay to Landlord within ten
(10) days after agreement upon or determination of the new rate an amount
sufficient to result in Landlord’s having been paid rental at the new rate from
the commencement of the portion of the term during which such rate was to have
been in effect, together with interest at the then Bank of Boston Prime Rate
with respect to any portion of such rent not paid when due because of the
operation of this paragraph, from the date payment was due to the date paid.

 

9.04. Lease Continues in Effect. From and after
commencement of each Extended Term hereunder, all of the other terms, covenants
and conditions of this Lease shall apply, and reference to the Term shall
thereafter be deemed to include the Extended Term in question, except that the
Base Rent shall be revised by an amendment to the Lease to reflect any
adjustment in the Base Rent, and from and after the commencement of the two
year Extended Term or the Additional Extended Term, as the case may be, Tenant
shall have no right to extend the Term further.

 

ARTICLE 10

 

OPTIONS TO EXPAND THE
LEASED PREMISES

 

10.01. Grant of Initial Option to Expand. Tenant
may elect to Increase the Leased Premises by leasing between 5,000 and 8,000
square feet of space on the second or twelfth floor of the Building (the
specific amount and location of such space to be determined by Landlord at the
time of Tenant’s notice of its intention to exercise such option) by providing
notice to Landlord on or before December 31, 1991. If Tenant exercises its
option hereunder, Tenant and Landlord shall execute an amendment to this Lease
appropriately revising the Basic Lease Information Sheet: (i) to identify the
space added to the Leased Premises and adding the space to Exhibit A. (ii) to
restate the Net Rentable Area of the Leased Premises, and (iii) to restate the
Tenant’s Proportionate Share. All other terms, covenants and conditions of the
Lease shall remain unchanged and in full force and effect.

 

10.02. Grant of Options to Expand.

 

(a)               Provided that (i)
no Event of Default, or condition as to which Tenant has received notice,
which, with the passage of time would constitute an Event of Default, (unless
Tenant commences to cure such condition prior to the occurrence of an Event of
Default as a result

 

67

 

thereof and diligently pursues such cure to
completion), then exists, and (ii) Tenant and/or any Tenant Affiliates, shall
then be in occupancy of Net Rentable Area constituting not less than
seventy-five percent (75%) of the Net Rentable Area included in the Leased
Premises on the date of Tenant’s Expansion Notice, Tenant shall have the option
to expand the Leased Premises at the times set forth below, subject to the
other provisions set forth below, by adding the following space located on
floors eleven (11) through twenty-two (22) of the Building, as determined by
Landlord pursuant to this Section 10.02 (collectively, the “Expansion Space”):

 

(1)               One entire floor
located on floors eleven (11) through twenty-two (22) to be made available
between September 1995 and September 1997;

 

(2)               One entire floor
located on floors eleven (11) through twenty-two (22) to be made available between
September 1997 and September 1999;

 

(3)               One entire floor
located on floors eleven (11) through twenty-two (22) to be made available
between July 2000 and July 2002.

 

(b)              If Landlord shall be
unable to deliver any portion of the Expansion Space at the time required
hereunder, by reason of the holding over of any prior tenant or occupant or
otherwise due to no fault of Tenant, Landlord shall use reasonable efforts to
obtain possession of such Expansion Space and otherwise deliver possession
thereof to Tenant, but Landlord shall not be subject to any liability for
failure to give possession thereof to Tenant at the time required hereunder,
except that (i) until the date on which all such Expansion Space shall actually
be delivered to Tenant, Tenant shall not be required to pay to Landlord any
Rent with respect to the Net Rentable Area of such Expansion Space, unless and
to the extent Tenant has commenced occupancy of such portion of the Expansion
Space for the conduct of its business operations, (ii) if Landlord shall be
unable to deliver all of such Expansion Space within six (6) months after the
time required hereunder, Tenant shall have the option to terminate its election
to take such Expansion Space (or, if Landlord has delivered only a portion of
such Expansion Space, the remainder of such Expansion Space) by notice to
Landlord given within fifteen (15) days thereafter, and (iii) if

 

68

 

Landlord shall be unable to deliver all of such
Expansion Space within twelve (12) months after the time required hereunder,
Tenant shall have the option to terminate its election to take such Expansion
Space (or, if Landlord has delivered only a portion of such Expansion Space,
the remainder of such Expansion Space) by notice to Landlord given within
fifteen (15) days thereafter. In addition to the foregoing, if, as part of
Tenant’s Expansion Notice (as defined in Section 10.03(a)), Tenant shall notify
Landlord that such Expansion Space is to be utilized in conjunction with
existing space in the Leased Premises for the operation of a single division or
other business unit of Tenant, and if Landlord shall be unable to deliver the
Expansion Space under clause (iii) above, then Tenant may elect in its notice
to terminate its election to take such Expansion Space to reduce the Leased
Premises by eliminating from the Leased Premises the top floor then included in
the Leased Premises. If Tenant exercises its election to reduce the Leased
Premises hereunder, Tenant and Landlord shall execute an amendment to this
Lease appropriately revising the Basic Lease Information Sheet: (i) to delete
the floor removed from the Lease Premises and deleting the floor or floors from
Exhibit A, (ii) to restate the Net Rentable Area of the Leased Premises, and
(iii) to restate the Tenant’s Proportionate Share.

 

(c)               Landlord shall use
reasonable efforts to keep Tenant informed of the status, from time to time, of
the space which may constitute Expansion Space hereunder.

 

10.03. Exercise of Options to Expand.

 

(a)               Landlord shall
furnish Tenant not less than fifteen (15) months nor more than twenty-four (24)
months prior notice of the time when such Expansion Space is scheduled to
become available within the time periods set forth in Section 10.02(a) hereof.
Such notice shall set forth the floor of the Building constituting such space,
the date on which Landlord estimates that the Expansion Space will become
available, and the Landlord’s determination of Fair Market Net Rent. Tenant may
thereupon exercise its option to add Expansion Space to the Leased Premises by
giving notice (“Tenant’s Expansion Notice”) to Landlord not later than twelve
(12) months prior to the date on which such

 

69

 

Expansion Space is scheduled to become available.
Tenant’s exercise of its options shall be final and shall not depend upon the
determination of Fair Market Rent pursuant to Article 7.

 

(b)              Tenant’s failure to
give Landlord timely notice of the exercise of its option to expand shall
constitute a final waiver of its option to take Expansion Space during the
applicable time period set forth in Section 10.02(a) hereof, and Landlord shall
have no further obligation to make such Expansion Space available to Tenant
except during the next time period set forth in Section 10.02(a) hereof, if
any.

 

(c)               In the event that
any of the Expansion Space becomes available before the time indicated in
Section 10.02(a) for such space, Landlord shall so notify Tenant, and Tenant
shall thereupon have the right to accelerate its corresponding option to expand
with respect to such Expansion Space, by notice to Landlord not later than
thirty (30) days after the date of Landlord’s notice of availability. Such
notice by Tenant shall, for all purposes, be deemed to be the Tenant’s
Expansion Notice required by Section 10.03(a). Tenant’s exercise of such option
to expand shall constitute the option to expand which would have occurred
during the next time period set forth in Section 10.02(a), and Tenant shall not
thereafter have any additional option to expand during such time period, but
Tenant’s failure to exercise such option to expand shall not negate Tenant’s
option to expand during such time period.

 

10.04. Rent for Expansion Space. Tenant shall pay to Landlord
all of the Rent required hereunder with respect to the Expansion Space;
provided, however, that the Base Rent shall be adjusted to reflect the then
Fair Market Net Rent for the Expansion Space, such Fair Market Net Rent to be
determined by Landlord, subject to Tenant’s right to demand appraisal in
accordance with the provisions of Article 7. Notwithstanding anything in this
Lease to the contrary, it is agreed that for the purposes of this Section
10.04, neither the value of any demolition work performed by Landlord pursuant
to Section 10.05(b), nor the value of the sixty (60) day period referred to in
this Section 10.04 shall be considered in calculating the Fair Market Net Rent.
Payment of Rent with respect to Expansion Space shall commence on the earlier
of (i) occupancy by Tenant for the conduct of its business or (ii) sixty (60)
days after Landlord makes the Expansion Space available to Tenant in the
condition required by Section 10.05 hereof.

 

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10.05. Condition of Expansion Space. All Expansion
Space shall be leased by and delivered to Tenant on an “as is” basis, except as
follows:

 

(a)               If any portion of
the Expansion Space is unimproved at the time of the exercise of Tenant’s
option to expand, Landlord shall provide Building Standard Improvements in
accordance with Schedule I of the Work Letter, prior to the Expansion Space
being made available to Tenant.

 

(b)              If the Expansion
Space has been previously constructed, Landlord will repair all floor cuts and
will demolish walls, doors, millwork and other items in the occupiable space in
accordance with plans and written instructions prepared by Tenant and delivered
to Landlord no later than ninety (90) days prior to the date on which Landlord
estimates the Expansion Space will become available as set forth in Landlord’s
notice to Tenant in accordance with Section 10.03(a) hereof, prior to the
Expansion Space being made available to Tenant.

 

10.06. Expansion Space Part of Leased Premises.
Upon Tenant’s exercise of each option to expand, the particular Expansion Space
shall become a part of the Leased Premises on the date Landlord makes the
Expansion Space available to Tenant in the condition required by Section 10.05
hereof, and thereafter the Expansion Space shall be subject to all of the
terms, covenants and conditions of this Lease, as the same may be amended from
time to time, except that Rent shall not commence with respect to the Net
Rentable Area of the Expansion Space until the earlier of (a) occupancy by
Tenant for the conduct of its business, or (b) sixty (60) days after the date
the Expansion Space became part of the Premises. Tenant and Landlord shall
execute an amendment to this Lease appropriately revising the Lease to reflect
the addition of such Expansion Space, including the Basic Lease Information
Sheet: (i) to identify the floor or portion thereof added to the Leased
Premises and adding the same to Exhibit A, (ii) to restate the Net Rentable
Area of the Leased Premises, (iii) to restate the Tenant’s Proportionate Share,
and (iv) to add the Base Rent to be paid by Tenant with respect to the
Expansion Space.

 

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ARTICLE 11

 

FIRST RIGHT TO LEASE

 

11.01. Exercise of First Right to Lease. Provided
that no Event of Default, or condition as to which Tenant has received notice
which, with the passage of time would constitute an Event of Default (unless
Tenant commences to cure such condition prior to the occurrence of an Event of
Default as a result thereof and thereafter continuously and diligently pursues
such cure to completion) then exists and that Tenant and/or any Tenant
Affiliates occupy not less than seventy-five percent (75%) of the Net Rentable
Area included in the Leased Premises on the date of Tenant’s First Lease
Notice, and not greater than eighty-five percent (85%) of the total Net
Rentable Area of the Office Section of the Building, Landlord shall offer any
space that becomes Available Space on floor(s) eleven (11) through twenty-two (22)
to Tenant for such rent and upon such other terms as Landlord proposes to offer
such Available Space to third parties and otherwise substantially upon the
terms and conditions set forth herein. In addition to any obligation of
Landlord to inform Tenant of Available Space set forth below, Landlord agrees
to use reasonable efforts to periodically advise Tenant of space in the
Building which is scheduled to become Available Space. Tenant’s first right to
lease shall be exercised as follows:

 

(a)               Not later than
sixty (60) days prior to the expiration of the term then applicable to such
Available Space (except in cases where the term expires by reason of default or
other causes which cannot reasonably be foreseen by Landlord, in which case
Landlord shall give reasonable notice), Landlord shall give notice to Tenant of
the expected availability of such Available Space together with a summary of
the financial terms and other key provisions (to the extent different from the
terms of this Lease) on which Landlord proposes to offer such Available Space
to third parties for lease.

 

(b)              At any time within
fifteen (15) days after Landlord gives the notice described in subsection (a),
Tenant may, by notice to Landlord (“Tenant’s First Lease Notice”), elect to (i)
lease the Available Space described in Landlord’s summary for the consideration
and upon the business terms set forth in Landlord’s summary, or (ii) lease the
Available Space described in Landlord’s summary for Fair Market Net Rent and
upon

 

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such other of the business terms set forth in
Landlord’s summary as are consistent therewith, such Fair Market Net Rent to be
as agreed upon by Landlord and Tenant within thirty (30) days of Tenant’s First
Lease Notice or, if the parties cannot agree, as determined in accordance with
Article 7, or (iii) waive its first right to lease with respect to such
Available Space. Tenant’s failure to elect by notice to Landlord one of the
options set forth above within said fifteen (15) days shall be deemed an
election to waive the first right to lease such Available Space.

 

(c)               In the event Tenant
elects to lease such Available Space, Landlord and Tenant shall promptly (but
not later than forty-five (45) days prior to the expiration of the term then
applicable to such Available Space) enter into an amendment to this Lease
adding the Available Space to the Leased Premises for the consideration and
upon the terms set forth in Landlord’s summary (subject to Tenant’s right to
demand appraisal if option (ii) set forth in (b) above is elected), or, at
Landlord’s election, a new lease for the Available Space for the consideration
and upon the terms set forth in Landlord’s summary and such other terms and
conditions as are contained in this Lease, or as Landlord and Tenant may
mutually agree (subject to Tenant’s right to demand appraisal if option (ii)
set forth in (b) above is elected).

 

(d)              In the event Tenant
elects or is deemed to elect to waive its right to lease such Available Space,
Landlord shall be free to lease the Available Space to any other party;
provided, however, that if Landlord has not entered into a lease or commitment
to lease the Available Space within six (6) months after Landlord’s notice to
Tenant of the availability of the Available Space, Landlord shall reoffer the
Available Space to Tenant by notice to Tenant given within such six (6) month
period accompanied by a summary of the financial terms and other key provisions
(to the extent different from the summary provided in the previous notice) on
which Landlord proposes to offer to lease the Available Space to third parties.
Tenant’s first right to lease shall be a continuing right and Landlord shall
continue to provide such a notice within each subsequent six (6) month period
until Landlord has entered into a lease or commitment to lease such Available
Space.

 

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ARTICLE 12

 

ADDITIONAL OPTIONS

 

12.01. Parking.
Tenant shall have the right to park in the Parking Section a total of up to
fifty (50) automobiles, the precise number to be designated by Tenant by notice
to Landlord not later than December 31, 1991. Landlord agrees to designate, by
a sign or other reasonable means determined by Landlord, one of the spaces in
the Parking Section as a space for the exclusive use of Tenant, but Landlord
shall have no obligation to ensure compliance by third parties with such
designation or the availability of such space for use by Tenant. Landlord
agrees that if in excess of ten percent (10%) of the parking spaces in the
Parking Section become designated for particular tenants, Tenant shall be
entitled to the identical percentage of the parking spaces allocable to Tenant
similarly designated. If Tenant does not require all of the parking spaces
allocable to it, Tenant shall relinquish its right to such parking spaces to
Landlord, whereupon Tenant shall no longer have a right to such relinquished
parking spaces and shall obtain future additional parking solely on a
space-available basis; provided, however, that Tenant shall have the right to
two (2) additional parking spaces for each floor in the Building which it adds
to the Leased Premises after the Term Commencement Date or if greater, the
number of spaces which the immediately preceding tenant or tenants of such
floor had the right to use pursuant to leases with Landlord, provided Tenant
notifies Landlord no less than ninety (90) days prior to the date on which such
floor is scheduled to be added to the Leased Premises of the number of parking
spaces, if any, which Tenant requires. Landlord agrees to provide Tenant with
information regarding the availability of parking spaces upon the request of
Tenant during the Term of this Lease and shall within thirty (30) days of
notice from Tenant that it desires additional parking spaces and the number
which it desires, inform Tenant of whether such spaces are then available, or
how many are available, and the terms upon which such spaces are available.
Tenant shall execute a separate license agreement with the garage operator with
respect to the parking spaces allocable to the Tenant. The rates charged by the
garage operator for such parking shall be the prevailing market rates for
parking in the Building as established by the garage operator from time to
time, which shall not unreasonably exceed (as determined by Landlord in its
reasonable business judgment) the average parking rates in comparable first
class office buildings in Boston. Tenant’s right to use the parking spaces
shall be subject to (i) compliance with

 

74

 

the license agreement between Tenant and the garage operator, (ii) such
reasonable rules and regulations as Landlord or its operator may establish for
the Building from time to time, and (iii) all applicable laws, ordinances and
regulations.

 

12.02. Storage Area. Tenant shall have the option to lease the
Storage Area, located on floor P3 of the Building, and more specifically
described on Exhibit C attached to the Lease, by notice given to Landlord prior
to January 1, 1992. If Tenant exercises such option, the Storage Area shall be
used by Tenant upon the following terms, covenants and conditions:

 

(a)               Tenant shall pay as
part of Gross Rent an amount equal to Ten Dollars ($10.00) per square foot of
Net Rentable Area of the Storage Area for each year of the Term. During any
Extended Term, the Rent per square foot of Net Rentable Area of the Storage
Area for each year shall be increased by multiplying Ten Dollars ($10.00) by a
fraction, the numerator of which is the Base Rent payable during such Extended
Term and the denominator of which is Twelve and 27/100 Dollars ($12.27).

 

(b)              There shall not be a
separate Operating Cost or Impositions charge to Tenant with respect to the
Storage Area; rather, the cost of maintaining, repairing and operating the
Storage Area and Impositions thereon, shall be paid by Landlord as a part of
the cost of operating and maintaining the Building, and shall be included in
the total Operating Cost and Impositions allocated among the tenants in the
Building.

 

(c)               Tenant shall be
responsible for maintenance of the interior of the Storage Area and shall
assume all risk of loss or damage with respect to property stored therein,
except to the extent that such loss is caused by the negligence or willful
misconduct of Landlord. Maintenance of the exterior of the Storage Area, the
portion of the Building in which the Storage Area is located and access thereto
shall be the responsibility of Landlord, which Landlord shall perform in the
same manner as is provided with respect to other areas in the Building for
which Landlord has retained responsibility.

 

(d)              Landlord shall
deliver the Storage Area to Tenant hereunder on a “shell” basis, which shall
consist of space enclosed by a concrete or sheet rock wall and a

 

75

 

concrete floor, one lockable entry, lights provided by
strip lighting and one light switch (or additional entries or light switches as
may be required by the applicable building codes).

 

12.03. Antenna or Satellite Dish. Tenant shall have
the right to install an antenna, a satellite dish, or both, on the roof of the
Building, subject to (i) the availability of space for the installation of such
antenna or satellite dish, (ii) the obtaining of all permits and approvals from
governmental authorities required for such installation at Tenant’s expense,
and (iii) the approval of Landlord after submission to Landlord of plans and
specifications therefor describing in sufficient detail the nature of the
antenna or satellite dish which Tenant wishes to install and the manner of its
proposed installation, which approval shall not be unreasonably withheld or
delayed by Landlord. It shall not be unreasonable for Landlord to withhold its
consent to such installation if Landlord determines that the installation of
such antenna or satellite dish would damage the aesthetic appearance of the
Building from street level or any public open space, interfere with sight lines
from any portion of the Project, or interfere in any manner with antennas,
satellite dishes or other structures then existing on the roof of the Building.
The installation of any such antenna and/or satellite dish shall be done at
Tenant’s sole cost and expense, but, at the option of Landlord, the
installation shall be effected by Landlord at the reasonable cost and expense
of Tenant. To the extent that the installation will be undertaken directly by
Tenant, the method of installation, the materials to be used and the contractors
to be performing the work shall be subject to Landlord’s approval, which
approval shall not be unreasonably withheld or delayed, and the installation
shall be performed in accordance with the provisions of Section 4.06 hereof.
Tenant shall pay as a part of Gross Rent an amount equal to the fair market
rent, as determined by Landlord in its reasonable business judgement, for the
space utilized in connection with such antenna or satellite dish for any period
in which the same is maintained on the roof of the Building.

 

12.04. Security.
Tenant shall have the option to station one (1) security officer/receptionist
at the security desk located in the lobby of the Building. Such security
officer/receptionist shall not interfere with the security officers retained by
Landlord nor shall such security officer/receptionist interfere with the use of
the Building by Landlord, other tenants in the building and their guests. Such
security officer/receptionist shall also comply with reasonable rules and
requirements established by Landlord and Landlord’s security officers from time
to time. At the reasonable request of Landlord, Tenant shall replace any
security officer/receptionist which it places in the lobby of the Building with

 

76

 

another security officer/receptionist reasonably acceptable to
Landlord. Landlord agrees that any such request shall specify the nature of the
problem with the existing security officer/receptionist and specify the reason
why Landlord requests such security officer/receptionist be replaced. Landlord
agrees to take reasonable steps to cooperate with Tenant with respect to the
implementation of any security system installed by Tenant for the Leased
Premises, including, without limitation, a system which permits Tenant to use
the fire stairwells adjacent to the Leased Premises for interfloor access and
egress. The installation of any such system shall be subject to the provisions
of Section 4.06 hereof.

 

12.05 Exhibits.
The Exhibits listed in the Schedule of Exhibits are incorporated in this Lease
by reference and are to be construed as part hereof.

 

ARTICLE 13

 

DEFINITIONS

 

13.01. Definitions. Terms used herein shall have the following
meanings:  “Additional Rent” shall mean
all monetary obligations of Tenant hereunder, other than the obligation for
payment of Gross Rent.

 

“Available Space” shall mean space in the Office Section of the
Building (i) with respect to which a tenant’s lease has terminated, whether by
expiration or earlier termination of the term of such lease, and which is not
encumbered by any extension option, right of first refusal or agreement of
expansion, or otherwise, and (ii) which has not been relet to such tenant
immediately thereafter, whether as a result of renewal, extension, a new lease
or otherwise, or with respect to which any expansion or like right previously
granted to such tenant or to a third person has not been exercised.

 

“Base Rent” shall mean the amount set forth on the Basic Lease
Information sheet, as adjusted in accordance with the provisions of the Lease.

 

“Basic Services” shall mean the services described in Section 3.01
hereof.

 

77

 

“Building” shall mean the 22-story building (consisting of a 6-story
low-rise portion, a 16 story high-rise portion and 3 levels of parking space
below grade) located on the Land, and comprising the Office Section, the
Commercial Section, the Parking Section together with the Common Areas.

 

“Building Common Areas” shall mean all areas of the Building servicing
more than one floor of the Building as a whole, including, but not limited to
fire stairwells, central mechanical rooms, elevator machine rooms, pump rooms,
loading dock facilities, electrical and communication rooms, postal, security
and janitorial facilities and the ground floor lobby (and if any such area is
bordered by any demising wall which abuts any space that is leasable, such area
shall be measured from the midpoint of such demising wall), but excluding Floor
Common Areas, General Common Areas and the Parking Section.

 

“Building Standard Improvements” shall mean the improvements specified
in Schedule II to the Work Letter.

 

“Business Hours” shall mean 8 A.M. to 6 P.M. on Business Days.

 

“Business Days” shall mean Monday through Friday excluding federal
holidays.

 

“Commercial Section” shall mean that portion of the Building dedicated
to commercial and retail uses and not included in the Office Section.

 

“Common Areas” shall mean the Building Common Areas, the Floor Common
Areas and the General Common Areas.

 

“Completion Date” shall mean the later of (i) the Scheduled Completion
Date or (ii) the date on which the Leased Premises are Substantially Complete.

 

“Estimated Impositions” for any calendar year shall mean Landlord’s
estimate of Impositions for such calendar year.

 

“Estimated Operating Cost” for any calendar year shall mean Landlord’s
estimate of Operating Cost for such calendar year.

 

“Event of Default” shall have the meaning attributed to it in Section
6.01.

 

“Excess Building Standard Improvements” shall mean improvements of the
type specified in Schedule II to the Work Letter, in excess of the quantities
set forth in said Schedule II.

 

78

 

“Fair Market Net Rent” shall mean, subject to the last two sentences
herein, the annual rental value, net of Operating Cost and Impositions, of the
space in question, as determined by reference to comparable space being offered
for rent or recently rented in the Building or in comparable buildings in
Boston, Massachusetts, in each case taking into consideration the following
factors related to the Leased Premises: floor level, tenant improvements,
proposed term of lease, extent of service provided or to be provided, the lack
of a brokerage commission applicable to the transaction, the time the
particular rate under consideration became or is to become effective, the
location of the Building, the reputation of the Building, including its
ownership and management, and any other relevant terms or conditions (but
specifically excluding the fact that Tenant will not incur moving expenses).
With respect to the determination of Fair Market Net Rent for any Extended
Term, all inducements which would otherwise be offered excluding, however, the
residual value of any Tenant Alterations, Excess Building Standard Improvements
or Premium Tenant Improvements to the extent paid for by Tenant which are in
the nature of capital improvements rather than normal maintenance or repairs),
giving due regard to the factors cited above, shall be considered, but shall be
factored into an equation to arrive at a rental figure, net of such
inducements, unless otherwise agreed by Landlord and Tenant. With respect to
the determination of Fair Market Net Rent for any Expansion Space or Available
Space, all inducements which would otherwise be offered, giving due regard to
the factors cited above, shall be considered, and shall be included as part of
a Fair Market Net Rent package for such space, unless otherwise agreed by
Landlord and Tenant.

 

“Floor Common Areas” shall mean all areas on those floors of the
Building which are from time to time occupied by more than one tenant which are
devoted to non-exclusive uses, such as corridors, lobbies, fire vestibules,
elevator foyers, service elevator receiving areas, mailrooms, electric and
communication closets and other similar facilities for the benefit of all
tenants or invitees on that particular floor, but excluding Building Common
Areas, General Common Areas and the Parking Section.

 

“Force Majeure” shall mean any circumstance beyond the reasonable
control of Landlord, including, without limitation, acts of God, acts of the
public enemy, governmental interference, court orders, requisition or orders of
governmental bodies or authorities, requirements under any statute, law, rule,
regulation or similar requirements of a governmental authority which shall be
enacted or shall arise following the date of this Lease, inability to obtain
labor, insurrection, riot, civil commotion, lock-out or any other

 

79

 

unforeseeable event (other than the inability to obtain financing), the
occurrence of which would prevent or preclude Landlord from fully and
completely carrying out and performing its obligations under this Lease.

 

“General Common Areas” shall mean those areas forming part of the
Building and devoted to non-exclusive uses which are not measured, including,
but not limited to, the “Winter Garden”, walkways, courtyards and all landscaped
areas (including pools and fountains). General Common Areas shall not include
Floor Common Areas, Building Common Areas or the Parking Section.

 

“Gross Rent” shall mean, for each year of the Term, the sum of Base
Rent, Tenant’s Proportionate Share of Operating Cost and Impositions, charges
incurred by Tenant for Extra Services in accordance with Section 3.02, and Rent
for the Storage Area, if any.

 

“Impositions” shall have the meaning attributed to it in Section 2.05.

 

“Initial Tenant Improvements” shall mean all initial improvements to be
constructed in the Leased Premises in accordance with the Work Letter.

 

“Initial Tenant Improvement Plans” shall mean the plans for the Initial
Tenant Improvements, as set forth in the Work Letter.

 

“Land” shall mean the parcel of real property owned by the Landlord,
located in the City of Boston, Suffolk County, Massachusetts, and bounded in
part by Berkeley and Boylston Streets and St. James Avenue and more
specifically described in Exhibit A-1 attached hereto.

 

“Landlord Responsible Parties” shall mean all agents, servants,
employees, contractors and business invitees of Landlord (but excluding other
tenants of the Project and their agents, servants, employees, contractors,
licensees and business invitees).

 

“Leased Premises” shall mean the floor area more particularly shown on
Exhibit A attached hereto, containing the Net Rentable Area specified on the
Basic Lease Information sheet.

 

“Loading Docks” shall mean the loading dock facilities serving the
Project.

 

“Mortgage” shall mean any and all institutional mortgages securing
indebtedness for money borrowed by Landlord or indebtedness for the refinancing
of any such indebtedness, including all amendments

 

80

 

and modifications thereto, from time to time, provided any such
mortgage encumbers all or any portion of the Building, and provided further
that with respect to any Mortgage held by an affiliate of Landlord the
indebtedness secured thereby is actually debt financing for the Building (which
may, however, include an associated equity component), and the mortgage
instrument reflects terms consistent with an “arms length” transaction. Any
reference to “Mortgage” and “Mortgagee” herein shall include a sale and leaseback
and the grantee-lessor of a sale and leaseback used for financing purposes as
limited hereby.

 

“Net Rentable Area” shall mean the area or areas of the space within
the Building determined as follows:

 

(a)               Net Rentable Area
on a single tenancy floor in the Office Section shall consist of (i) the area
determined by measuring from the inside surface of the outer glass of each
exterior wall (and extensions of the plane thereof in non-glass areas) to the
inside surface of the outer glass on the opposite exterior wall (and extensions
of the plane thereof in non-glass areas), but shall exclude vertical
penetrations (including, without limitation, fire stairs, elevator shafts, and
areas for central heating, ventilation and air conditioning and mechanical and
electrical facilities), as set forth on Exhibit E attached hereto for each
corresponding floor; plus (ii) Tenant’s Allocation of Building Common Areas, as
set forth on Exhibit E attached hereto for each corresponding floor;

 

(b)              Net Rentable Area
for a multi-tenancy floor shall consist of:

 

(x)                all space within
the demising walls determined by measuring from the mid-point of the demising
walls of each interior wall and from the inside surface of the outer glass of
each exterior wall (and extensions of the plane thereof in non-glass areas);
plus

 

(y)              Tenant’s Allocation
of Building Common Areas, as set forth on Exhibit E attached hereto for the
corresponding floor; plus

 

(z)                Tenant’s Floor
Share of all Floor Common Areas.

 

81

 

No deductions from Net Rentable Area shall be made for
columns or projections necessary to the Building, or for vertical penetrations
which are for the exclusive use of Tenant (such as, but not limited to, special
elevators or stairs, mechanical and electrical facilities and air conditioning
equipment). The Net Rentable Area of the Leased Premises has been calculated on
the basis of the foregoing definition and is hereby stipulated for all purposes
hereof to the be amount, expressed in terms of square feet, stated on the Basic
Lease Information sheet.

 

“Office Section” shall mean that portion of the Building dedicated to
office uses. The square feet of Net Rentable Area included in the Office
Section on each floor of the Building is set forth in Exhibit E.

 

“Operating Cost” shall have the meaning given in Section 2.04.

 

“Outline Specifications” shall mean the improvements specified in
Schedule III to the Work Letter.

 

“Outside Completion Date” shall mean the Estimated Outside Completion
Date set forth on the Basic Lease Information sheet, as the same may be delayed
by reason of any Tenant’s Delay.

 

“Parking Section” shall mean the three (3) levels of below-grade
parking located in the Project, excluding however any Common Areas or Project
Common Areas.

 

“Permitted Use” shall mean with respect to the Leased Premises
corporate, executive and professional office use and all uses accessory thereto
as permitted by law in the Leased Premises of a kind appropriate in a building
of the type and quality of the Building; provided, however, that Permitted Use
shall not include (a) offices of any agency or bureau of the United States or
any state or political subdivision thereof; (b) offices or agencies of any
foreign government or political subdivision thereof; (c) offices of any health
care professionals or service organization which include patient or client
treatment or other on-premises services; (d) schools or other training
facilities which are not ancillary to corporate, executive or professional
office use (excluding, however, the executive offices of such schools or
training facilities which are otherwise consistent with the use of the Building
as a first class office building in Boston); (e) retail or restaurant uses
(except in the Commercial Section and except for facilities limited to the
exclusive use of Tenant’s employees and other Tenant Responsible Parties); (f)
radio, television and/or recording studios, or like uses; (g) employment
agencies (excluding, however, the executive offices of such employment agencies
which otherwise are consistent with the use of

 

82

 

the Building as a first class office building in Boston); or (h) any
use or activity which is inconsistent with the use of the Building as a first
class office building in Boston, creates a fire hazard or would cause
Landlord’s insurance rate to be increased.

 

“Premium Tenant Improvements” shall mean that portion of the Initial
Tenant Improvements which do not constitute “Building Standard Improvements” or
“Excess Building Standard Improvements”, as set forth in the Work Letter.

 

“Project” shall mean the Building together with the building commonly
known as 500 Boylston Street and located on the parcel of land described in
Exhibit A-2.

 

“Project Operational Common Areas” shall mean those areas of the
Project located outside of the Building which service, in whole or in part, the
Building, including, but not limited to central mechanical rooms and loading
dock facilities.

 

“Project Non-Operational Common Areas” shall mean those areas of the
Project devoted to non-exclusive uses which tenants of the Building have a
right to use in common with other tenants of the Project, including, but not
limited to, walkways, courtyards and landscaped areas.

 

“Project Common Areas” shall mean the “Project Operational Common
Areas” and the “Project Non-operational Common Areas”.

 

“Rent” shall mean Gross Rent and Additional Rent.

 

“Rent Commencement Date” shall mean the later of (i) the Scheduled Rent
Commencement Date, or (ii) sixty (60) days after the Completion Date.

 

“Storage Area” shall mean the approximately 5,032 square feet of
storage space located on floor P3 of the Building, more specifically described
on Exhibit C attached hereto.

 

“Sublease” shall include any sublease, underletting at any level,
tenancy, concession, license, franchise or other arrangement providing for the
use or occupancy of all or any portion of the Leased Premises.

 

“Substantial Completion” shall mean (and the Leased Premises or any Expansion
Space, as the case may be, shall be deemed 

 

“Substantially Complete”) when (i) installation of the Initial Tenant
Improvements or the Building Standard Improvements required to be provided by
Landlord for Expansion Space, as applicable, has

 

83

 

been substantially completed in accordance with the plans and
specifications therefor notwithstanding a requirement to complete “punchlist”
items or similar corrective work which can be completed without causing
material interference with Tenant’s use of the Leased Premises for the
Permitted Use; (ii) Tenant has direct access from the street to the elevator
lobby on the floor (or floors) where the Leased Premises are, or the Expansion
Space is, as applicable, located; (iii) Basic Services (as defined in Section
3.01 hereof) and any Extra Services (as defined in Section 3.02(a) hereof) are
available to the Leased Premises or the Expansion Space, as applicable; (iv)
Landlord’s architect shall have issued a certificate of Substantial Completion
with respect to the Leased Premises or the Expansion Space, as applicable; and
(v) a temporary or permanent certificate of occupancy has been issued by
appropriate governmental authorities, permitting use of the Leased Premises or
the Expansion Space, as applicable, and not subject to any conditions which
cannot be satisfied without material interference with Tenant’s use of the
Leased Premises or the Expansion Space for the Permitted Use.

 

“Tenant Affiliate” shall mean a person or entity which controls, is
controlled by or is under common control with Tenant, or an entity into or with
which Tenant is merged or consolidated or to which substantially all of
Tenant’s assets are transferred.

 

“Tenant’s Allocation” shall mean an area determined by multiplying the
total square footage of the Building Common Areas by the ratio of the Net
Rentable Area of the Leased Premises (excluding any allocation of Building
Common Areas) to the Net Rentable Area of the Office Section (excluding only
the Building Common Areas).

 

“Tenant Alterations” shall mean any alterations or physical additions
to the Leased Premises beyond the Initial Tenant Improvements, together with
any painting or decorating of the firestairwells pursuant to Section 4.06 hereof,
any antenna or satellite dish installed pursuant to Section 12.03 hereof, and
any security system installed pursuant to Section 12.04 hereof.

 

“Tenant’s Delay” shall have the meaning attributed to it in the Work
Letter.

 

“Tenant Extra Costs” shall mean the cost of the Excess Building
Standard Improvements and the Premium Tenant Improvements for which Tenant is
responsible pursuant to the Work Letter.

 

“Tenant Improvements” shall mean the Initial Tenant Improvements and
any Tenant Alterations.

 

84

 

“Tenant’s Floor Share” shall mean the ratio of Tenant’s Useable Area to
the aggregate Useable Area on Tenant’s floor.

 

“Tenant’s Personal Property” shall mean all of the furnishings,
fixtures, equipment, effects and personal property of every kind, nature and
description of Tenant and of all persons claiming by, through and under Tenant
which, during the continuance of this Lease or any occupancy of the Leased
Premises by Tenant or anyone claiming under Tenant may be on the Leased
Premises or else where in the Building.

 

“Tenant’s Proportionate Share” is specified on the Basic Lease
Information sheet.

 

“Tenant Responsible Parties” shall mean all agents, servants,
employees, contractors, licensees and business invitees of Tenant.

 

“Term” shall mean a period of calendar years, or fractions thereof,
commencing with the Term Commencement Date and ending on the Term Expiration
Date stated on the Basic Lease Information sheet.

 

“Term Commencement Date” shall mean the date when the Term commences as
set forth on the Basic Lease Information Sheet.

 

“Term Expiration Date” shall mean the date specified on the Basic Lease
Information sheet when the Term shall end, unless sooner terminated pursuant to
the terms of this Lease.

 

“Total Leased Net Rentable Area” shall mean the sum of the Net Rentable
Area leased to all Office Section tenants over the course of a year, determined
on the basis of a weighted averaging of the sum of the Net Rentable Area leased
to all Office Section tenants on each day of that year.

 

“Useable Area” shall mean the Net Rentable Area of the Leased Premises
in question, less the portion of such Net Rentable Area attributable to Floor
Common Areas and Building Common Areas.

 

85

 

“Work Letter” shall mean the instrument executed by Landlord and Tenant
of even date herewith attached hereto as Exhibit B governing construction of
the Initial Tenant Improvements.

 

Other terms used on the Basic Lease Information sheet which is a part
of this Lease, or elsewhere in this Lease, shall have the meaning given them
thereon and herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease as a
sealed instrument as of the day and year first above written.

 

	
   

  	
  “Landlord”

  
	
   

  	
   

  
	
   

  	
  TWO TWENTY TWO BERKELEY VENTURE

  a Joint Venture

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hines 222 Berkeley Limited

  
	
   

  	
   

  	
  Partnership, Venturer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald D. Hines

  
	
   

  	
   

  	
  Gerald D. Hines, a General Partner

  
	
   

  	
   

  
	
   

  	
  “Tenant”

  
	
   

  	
   

  
	
   

  	
  HOUGHTON MIFFLIN COMPANY, a

  Massachusetts corporation

  
	
   

  	
  By: 

  	
  /s/ Stephen O. Jaeger

  
	
   

  	
   

  	
  Stephen O. Jaeger

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
				

 

86<Page>

<Table>
<S>                                               <C>
[LOGO]                                                                                             EXHIBIT 4.8
</Table>

<Table>
<S>                  <C>                                                     <C>
                     KPMG LLP
                     Chartered Accountants
                     1200 205 - 5th Avenue SW                                Telephone (403) 691-8000
                     Calgary AB  T2P 4B9                                     Telefax (403) 691-8008
                                                                             www.kpmg.ca
</Table>

Alberta Securities Commission

May 30, 2003

Dear Sirs/Mesdames

TRANSCANADA PIPELINES LIMITED (THE "COMPANY")

We refer to the short form prospectus of the above Company dated May 30, 2003
relating to the sale and issue of US $1,000,000,000 Debt Securities of
the Company.

We consent to the use, through incorporation by reference in the short form
prospectus, of our report dated February 25, 2003 to the shareholders of the
Company on the following financial statements:

    - Consolidated balance sheets as at December 31, 2002 and 2001;

    - Consolidated statements of earnings, retained earnings and cash flows for
      each of the years in the three-year period ended December 31, 2002.

We report that we have read the short form prospectus and all information
specifically incorporated by reference therein and have no reason to believe
that there are any misrepresentations in the information contained therein that
are derived from the consolidated financial statements upon which we have
reported or that are within our knowledge as a result of our audit of such
consolidated financial statements.

This letter is provided solely for the purpose of assisting the securities
regulatory authority to which it is addressed in discharging its
responsibilities and should not be used for any other purpose. Any use that a
third party makes of this letter, or any reliance or decisions based on it, are
the responsibility of such third parties. We accept no responsibility for loss
or damages, if any, suffered by any third party as a result of decisions made or
actions taken based on this letter.

Yours very truly

/s/ KPMG LLP

Chartered Accountants

Calgary, Canada

[LOGO]

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