Document:

abmd-ex101_181.htm

 

Exhibit 10.1

LEASE

BY AND BETWEEN

BROOKWOOD CHERRY HILL I, LLC, a Delaware limited liability company, and 

BROOKWOOD CHERRY HILL II, LLC, a Delaware limited liability company,

(as tenants in common, “Landlord”)

and

ABIOMED, INC.,

a Delaware corporation

(“Tenant”)

 

 

 

 

 

 

TABLE  OF CONTENTS

 

	
 
	
 
	
 
	
Page

	
 
	
 
	
 
	
 

	
1.
	
TERMS
	
 
	
1

	
 
	
 
	
 
	
 

	
2.
	
THE PREMISES
	
 
	
3

	
 
	
 
	
 
	
 

	
3.
	
TERM
	
 
	
3

	
 
	
 
	
 
	
 

	
4.
	
CONDITION OF THE PREMISES
	
 
	
4

	
 
	
 
	
 
	
 

	
5.
	
MONTHLY RENT
	
 
	
4

	
 
	
 
	
 
	
 

	
6.
	
TAXES
	
 
	
5

	
 
	
 
	
 
	
 

	
7.
	
OPERATING EXPENSES
	
 
	
5

	
 
	
 
	
 
	
 

	
8.
	
RECONCILIATION; AUDIT RIGHT
	
 
	
6

	
 
	
 
	
 
	
 

	
9.
	
INSURANCE
	
 
	
7

	
 
	
 
	
 
	
 

	
10.
	
WAIVER OF SUBROGATION
	
 
	
8

	
 
	
 
	
 
	
 

	
11.
	
SECURITY DEPOSIT
	
 
	
8

	
 
	
 
	
 
	
 

	
12.
	
USE
	
 
	
9

	
 
	
 
	
 
	
 

	
13.
	
MAINTENANCE; SERVICES
	
 
	
9

	
 
	
 
	
 
	
 

	
14.
	
SUBLEASE;  ASSIGNMENT
	
 
	
10

	
 
	
 
	
 
	
 

	
15.
	
INDEMNITY; NON-LIABILITY OF LANDLORD
	
 
	
11

	
 
	
 
	
 
	
 

	
16.
	
UTILITIES
	
 
	
12

	
 
	
 
	
 
	
 

	
17.
	
HOLDING OVER
	
 
	
13

	
 
	
 
	
 
	
 

	
18.
	
NO RENT DEDUCTION OR SET OFF
	
 
	
13

	
 
	
 
	
 
	
 

	
19.
	
CASUALTY
	
 
	
13

	
 
	
 
	
 
	
 

	
20.
	
SUBORDINATION; ESTOPPEL LETTERS
	
 
	
14

	
 
	
 
	
 
	
 

	
21.
	
ALTERATIONS; RESTORATION
	
 
	
14

	
 
	
 
	
 
	
 

	
22.
	
DEFAULT; REMEDIES
	
 
	
15

	
 
	
 
	
 
	
 

	
23.
	
NOTICES
	
 
	
17

	
 
	
 
	
 
	
 

	
24.
	
EMINENT DOMAIN
	
 
	
18

	
 
	
 
	
 
	
 

	
25.
	
QUIET ENJOYMENT
	
 
	
18

	
 
	
 
	
 
	
 

	
26.
	
RULES AND REGULATIONS
	
 
	
18

- i -

 

	
 
	
 
	
 
	
Page

	
 
	
 
	
 
	
 

	
27.
	
ENVIRONMENTAL
	
 
	
18

	
 
	
 
	
 
	
 

	
28.
	
FINANCIAL STATEMENTS
	
 
	
20

	
 
	
 
	
 
	
 

	
29.
	
BROKERS
	
 
	
20

	
 
	
 
	
 
	
 

	
30.
	
MISCELLANEOUS
	
 
	
20

	
 
	
 
	
 
	
 

	
31.
	
PARKING
	
 
	
21

	
 
	
 
	
 
	
 

	
32.
	
SIGNAGE
	
 
	
22

	
 
	
 
	
 
	
 

	
33.
	
DELETED
	
 
	
22

	
 
	
 
	
 
	
 

	
34.
	
CERTAIN RIGHTS RESERVED TO LANDLORD
	
 
	
22

	
 
	
 
	
 
	
 

	
35.
	
LEASE COMMENCEMENT/ACCEPTANCE OF PREMISES
	
 
	
22

	
 
	
 
	
 
	
 

	
36.
	
WAIVER OF RIGHT TO JURY TRIAL
	
 
	
22

	
 
	
 
	
 
	
 

	
37.
	
RECORDING
	
 
	
23

 

 

 

 

- ii -

 

1.    TERMS. Each reference in this Lease to any of the following subjects shall be construed to incorporate the data stated for that subject in this Section 1.

 

	
Date of this Lease:
	
February 2, 2017

	
 
	
 

	
Name of Tenant:
	
ABIOMED, Inc.,

a Delaware corporation

	
 
	
 

	
Notice Address of Tenant:
	
 

	
(a)  Prior to possession:
	
22 Cherry Hill Drive

Danvers, MA 01923

Attn: General Counsel

	
 
	
 

	
(b)  Following  possession:
	
At the Premises

	
 
	
 

	
with a copy to:
	
Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199-3600

Attention: John M. Creedon, Esq.

	
 
	
 

	
Name of Landlord:
	
Brookwood Cherry Hill I, LLC, a Delaware limited liability company, and

Brookwood Cherry Hill II, LLC, a Delaware limited liability company, as tenants in common

	
 
	
 

	
Notice Address of Landlord:
	
Brookwood Cherry Hill I, LLC and

Brookwood Cherry Hill II, LLC

138 Conant Street

Beverly, Massachusetts 01915

Attn: Kurt Zernich, Director of Asset Management

	
 
	
 

	
Landlord's Remittance Address:
	
Brookwood Cherry Hill I, LLC and

Brookwood Cherry Hill II, LLC

138 Conant Street

Beverly  MA 01915

Attention: Accounts Receivable

	
 
	
 

	
Building:
	
The building located at 24-42 Cherry Hill Drive, Danvers, Massachusetts 01923.

	
 
	
 

	
Property:
	
The Building and the real property on which the Building is located and any other buildings and improvements located thereon.

	
 
	
 

	
Premises:
	
Approximately 12,258 rentable square feet of space at 28 Cherry  Hill Drive (the “28 Cherry Hill Premises”) and 9,345 rentable square feet of space at 24 Cherry Hill Drive (the “24 Cherry  Hill Premises”), for a total 21,603 rentable square feet of space in the Building, as shown by the floor plan attached hereto as Exhibit A.

	
 
	
 

	
Permitted Use:
	
General office and warehouse use, and no other use or purpose.

 

 

	
 
	
 

	
Term:
	
The period of time beginning on the Commencement Date and ending at 11:59 P.M. on the Expiration Date.

	
 
	
 

	
Commencement Date:
	
February 2, 2017; provided, however, the Term with respect to the 24 Cherry Hill Premises shall not commence until May 1, 2017 (the “24 Cherry Hill Commencement  Date”).

	
 
	
 

	
Expiration Date:
	
That certain date which is the last day of the sixty-sixth (66th) complete calendar month following the Commencement  Date, unless

sooner terminated or extended in accordance with the provisions of this Lease.

	
 
	
 

	
Tenant's Percentage:
	
21.47%, being the ratio of rentable square footage of the Premises to the total  rentable square footage of the Building as determined by Landlord, provided, however, that until the 24 Cherry Hill Commencement Date shall have occurred,  Tenant's  Percentage shall  be 12.18%.

Landlord represents and warrants that the Building contains approximately 100,619

 rentable square feet.

	
 
	
 

	
Security Deposit:
	
$39,727.53.

	
 
	
 

	
Exhibits:
	
Exhibit A     The Premises

	
 
	
 

	
 
	
Exhibit A-1  Parking Striping Plan

	
 
	
 

	
 
	
Exhibit B     Additional Stipulations

	
 
	
 

	
 
	
Exhibit C     Rules and Regulations

	
 
	
 

	
 
	
Exhibit D     Work Letter

	
 
	
 

	
 
	
Exhibit E     Commencement  Letter

	
 
	
 

	
 
	
Exhibit F     Initial HVAC Work 

	
 
	
 

	
 
	
Exhibit G     Transformer Work

	
 
	
 

	
 
	
Exhibit G1   Transformer Removal Work

	
 
	
 

	
 
	
Exhibit G2    Transfer Relocation Work

	
 
	
 

	
 
	
All of the Exhibits listed above are incorporated into and made part of this Lease.

	
 
	
 

	
Rent:
	
Base Rent and all Additional Rent.

	
 
	
 

	
Additional Rent:
	
All amounts required to be paid by Tenant to Landlord pursuant to this Lease other than Base Rent, including, without limitation, Operating Expenses and Taxes.

	
 
	
 

	
Base Rent:
	
 

2

 

Tenant shall pay Base Rent for the 28 Cherry Hill Premises in accordance with the following schedule:

 

	
Months of Term
	
Base Rent

(per annum)
	
Base Rent

(per month)
	
Base Rent

(per rentable

square foot, per annum)

	
*2/2/2017 - 1/31/2018
	
$128,709.00
	
$10,725.75
	
$10.50

	
2/1/2018 - 1/31/2019
	
$134,838.00
	
$11,236.50
	
$11.00

	
2/1/2019 - 1/31/2020
	
$140,967.00
	
$11,747.25
	
$11.50

	
2/ l/2020- 1/31/2021
	
$147,096.00
	
$12,258.00
	
$12 .00

	
2/1/2021 -   1/31/2022
	
$153,225.00
	
$12,768.75
	
$12.50

	
2/1/2022 - 7/31/2022
	
$159,354.00
	
$13,279.50
	
$13.00

 

Notwithstanding the foregoing, Base Rent with respect to the 28 Cherry Hill Premises only shall be abated for the period beginning February 2, 2017 and ending on April 30, 2017 (the “ 28 Cherry Hill Base Rent Abatement Period”). Tenant shall be credited $383.06 against Base Rent for the month of May 2017 to account for the Commencement Date occuring February 2, 2017. In no event shall the 28 Cherry Hill Base Rent Abatement Period be deemed to reduce or eliminate Tenant's obligation to pay Additional Rent or any other amounts due hereunder other than Base Rent for the 28 Cherry Hill Premises.

Tenant shall pay Base Rent for the 24 Cherry Hill Premises in accordance with the following schedule:

 

	
Months of Term
	
Base Rent

(per annum)
	
Base Rent

(per month)
	
Base Rent

(per rentable

square foot, per annum)

	
5/1/2017 -1/31/2018
	
$98,122.50
	
$8,176.88
	
$10.50

	
2/1/2018 -1/31/2019
	
$102,795.00
	
$8,566.25
	
$11.00

	
2/l/ 2019 - 1/31/2020
	
$107,467.50
	
$8,955.63
	
$11.50

	
2/1/2020 - 1/31/2021
	
$112,140.00
	
$9,345.00
	
$12.00

	
2/1/2021 - 1/31/2022
	
$116,812.50
	
$9,734.38
	
$12.50

	
2/1/2022 - 7/31/2022
	
$121,485.00
	
$10,123.75
	
$13.00

 

Notwithstanding the foregoing, Base Rent with respect to the 24 Cherry Hill Premises only shall be abated for the month of May 2017 (the “24 Cherry Hill Base Rent Abatement Period”). In no event shall the 24 Cherry Hill Base Rent Abatement Period be deemed to reduce or eliminate Tenant's obligation to pay Additional Rent or any other amounts due hereunder other than Base Rent for the 24 Cherry Hill Premises.

2.    THE PREMISES. Landlord leases to Tenant, and Tenant leases from Landlord, upon and subject to the terms and conditions of this Lease, the Premises. The Premises are leased with the right of Tenant to use for its customers, employees and visitors, in common with other parties entitled thereto, all common areas within the Building and Property and such other facilities within the Building and Property as Landlord may from time to time designate and provide.

3.    TERM. The Premises are leased for the Term. If for any reason Landlord is unable to deliver possession of, or access to, the 28 Cherry Hill Premises to Tenant on or prior to the Commencement Date, or the 24 Cherry Hill Premises to Tenant on or prior to the 24 Cherry Hill Commencement Date, then Landlord shall not be liable to Tenant for any resultant loss or damage and this Lease shall not be affected in any way except as herein provided. Tenant shall have the option to extend the Term subject to the terms and conditions of Exhibit B attached hereto.

3

 

3.1    EARLY ACCESS. So long as Landlord shall have first received payment of the first installment of Base Rent payable hereunder, evidence of the insurance coverage required pursuant to Section 9, and the Security Deposit required pursuant to Section 11, then Landlord shall provide Tenant early access (i) to the 28 Cherry Hill Premises as of the date of this Lease, and (ii) to the 24 Cherry Hill Premises on April 1, 2017. Such early access shall be to perform Tenant's Work as set forth in Exhibit D attached hereto. In connection with such access , Tenant agrees (a) to cease promptly upon notice from Landlord any Tenant's Work which is not set forth on Exhibit D, is not directly related to the Work described therein or is not otherwise in compliance with the provisions of this Lease, and (b) to comply promptly with all reasonable procedures and regulations prescribed by Landlord from time to time for coordinating the Tenant's Work with any other activity or work in the Building. Such access by Tenant shall be deemed to be subject to all of the applicable provisions of the Lease, except that there shall be no obligation on the part of Tenant solely because of such access to pay Base Rent, Taxes or Operating Expenses prior to the Commencement Date with respect to the 28 Cherry Hill Premises or prior to the 24 Cherry Hill Commencement Date with respect to the 24 Cherry Hill Premises. If Tenant fails to comply with the terms and conditions of this Lease applicable to such early access during the period of early access after one (1) business day prior notice from Landlord, Landlord shall have the right to immediately suspend Tenant's right to right to access the Premises early. Anything herein to the contrary notwithstanding, if early access to the 24 Cherry Hill Premises is not delivered to Tenant by April 15, 2017, or possession of the 24 Cherry Hill Premises is not delivered to Tenant by May 15, 2017, then for each day of delay thereafter, the 24 Cherry Hill Base Rent Abatement Period shall be extended by one day.

4.    CONDITION OF THE PREMISES. The Premises are leased in an “as is” and “ where is” condition without any warranty of fitness for use or occupation express or implied, it being agreed that Tenant has had an opportunity to examine the condition of the Premises, that Landlord has made no representations or warranties of any kind with respect to such condition, and that Landlord has no obligation to do or approve any work or make or approve any improvements to or with respect to the Premises to prepare the same for Tenant's occupancy except (A) Landlord shall perform the Initial HVAC Work described by Exhibit F for the 28 Cherry Hill Drive Premises, (B) Landlord shall perform the Transformer Work described by Exhibits G, G1 and G2, and (C) as may otherwise be expressly provided herein. Tenant acknowledges and agrees that the Transformer Relocation Work described by Exhibit G2 shall be performed by Landlord at Tenant's sole cost and expense and that Tenant shall reimburse Landlord for the cost thereof within ten (10) business days of Landlord's invoice therefor.

Notwithstanding the foregoing, Landlord represents and warrants that all structural elements of the Building, the windows, doors , all light fixtures, and all mechanical, life-safety, electrical and plumbing systems (including HVAC) serving the 28 Cherry Hill Premises will be in good working order on the Commencement Date and that all structural elements of the Building, and the windows, doors, all light fixtures, and all mechanical, life-safety, electrical and plumbing systems (including HVAC) serving the 24 Cherry Hill Premises will be in good working order on the 24 Cherry Hill Commencement Date. Tenant may, at its sole cost and expense, inspect the mechanical, electrical and plumbing (including HVAC) systems serving the 28 Cherry Hill Premises and 24 Cherry Hill Premises at any time up until the date that is within thirty (30) days after the respective Commencement Date. Landlord shall repair any defects in such systems, provided Landlord receives written notice of such defects within ten (10) business days after Tenant's inspection of such systems, at Landlord's sole cost and expense and with Landlord using commercially reasonable efforts in making such repairs to not interrupt Tenant's business in the Premises by more than a de minimis    extent.

Tenant may make improvements to the Premises as described in the Work Letter attached as Exhibit D.

5.    MONTHLY RENT. Commencing on the Commencement Date, Base Rent shall be paid monthly in advance on or before the first day of each calendar month in accordance with the schedule set forth in Section 1. Except in the event of a casualty or condemnation resulting in the loss of rentable square footage, the Base Rent shall not be adjusted or modified if the actual rentable square footage of the Premises varies from the rentable square footage set forth in Section 1. If the Commencement Date shall be on any day other than the first day of a calendar month, Base Rent for the partial month shall be prorated based on the number of days in that month. Unless otherwise provided herein, commencing on the Commencement Date, Additional Rent shall be paid monthly in advance on or before the first day of each calendar month. If the Commencement Date shall be on any day other than the first day of a calendar month, Additional Rent for the partial month shall 

4

 

be prorated based on the number of days in that month. Rent shall be paid to Landlord, without notice or demand, and without deduction or offset, in lawful money of the United States of America, at Landlord's Remittance Address as set forth in Section 1 or to such other address as Landlord may from time to time designate in writing. Tenant acknowledges that the late payment of Rent or other sums due hereunder shall cause Landlord to incur costs not contemplated by this Lease, the exact amount of which shall be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed covering the Property. Accordingly, if any installment of Rent or any other sums due from Tenant shall not be received by Landlord when due, Tenant shall pay to Landlord a late charge equal to five percent (5%) of such overdue amount. In addition, any amount due to Landlord, if not paid when due, shall bear interest from the date due until paid at the lesser of: (i) the Prime Rate (as hereinafter defined) plus five percent (5%) per annum, or (ii) the highest rate permitted by law (the “Default Rate”). The term “Prime Rate” shall mean the Prime Rate as published in The Wall Street Journal from time to time. The parties agree that such late charges represent a fair and reasonable estimate of the costs Landlord shall incur by reason of late payment by Tenant. The acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant's default with respect to the overdue amount or prevent Landlord from exercising any of the other rights and remedies granted hereunder. Notwithstanding anything to the contrary in this Lease, Tenant shall pay the first full monthly installment of Rent due hereunder (i.e. Rent for the first complete month of the Term, or, if applicable, for the first complete month following any initial abatement period) simultaneously with Tenant's execution and delivery of this Lease.

6.    TAXES. (a) Tenant shall pay monthly, as Additional Rent, one-twelfth (1/12) of Tenant's Percentage of annual Taxes based on estimates provided by Landlord from time to time and subject to reconciliation as provided in Section 8 below. “Taxes” means all taxes, assessments and fees levied upon the Property by any governmental entity based upon the ownership, leasing, renting or operation of the Property. Taxes shall not include any federal, state or local net income, capital stock, succession, transfer, replacement, gift, estate or inheritance taxes; provided, however, if at any time during the Term, a tax or excise on income is levied or assessed by any governmental entity in lieu of or as a substitute for, in whole or in part, real estate taxes or other ad valorem taxes, such tax shall constitute and be included in Taxes. In addition to the foregoing, Tenant shall pay Landlord, as Additional Rent, for any use, rent or sales tax, service tax, value added tax, franchise tax or any other tax on Rent however designated as well as for any taxes which are reasonably attributable to the cost or value of Tenant's equipment, furniture, fixtures and other personal property located in the Premises or the cost or value of any leasehold improvements made in or to the Premises by or for Tenant. All expenses, including reasonable attorneys fees and disbursements, experts' and other witnesses' fees, incurred in contesting the validity or amount of any Taxes or in obtaining a refund of Taxes shall, solely to the extent of the amount of any reduction in Taxes achieved by Landlord as a result of such contest, be considered as part of the Taxes for the year in which the expenses are incurred.

7.    OPERATING EXPENSES. Tenant shall pay monthly, as Additional Rent, one-twelfth (1/12) of Tenant's Percentage of annual Operating Expenses based on estimates provided by Landlord from time to time and subject to reconciliation as provided in Section 8 below. “Operating Expenses” means and includes all expenses, costs, fees and disbursements paid or incurred by or on behalf of Landlord for managing, operating, maintaining, improving, servicing or repairing the Building or Property and all associated plumbing, heating, ventilation, air conditioning, lighting, electrical, mechanical and other systems, including, without limitation, costs of: performing the Landlord's obligations described in Section 13; janitorial services, the repair, maintenance, repaving and re-striping of any parking and dock areas; providing any services or amenities for the benefit of all tenants of the Building such as conference rooms, parking garage, cafeteria, or gymnasium; exterior maintenance, repair and repainting; landscaping; snow removal; utilities; management fees; supplies and sundries; sales or us taxes on supplies or services; charges or assessments under any easement, license , declaration, restrictive covenant or association; legal and accounting expenses; Insurance Premiums; and compensation and insurance plans, tax qualified benefit plans, worker's compensation insurance premiums and payroll taxes paid to, for or with respect to all persons engaged in the operation, administration, maintenance and repair of the Property. Landlord may equitably allocate any item of Operating Expenses that benefits multiple buildings among such benefited buildings based on comparable lot size or rentable square footage of such buildings. If there is less than ninety five percent (95%) occupancy during any period, Landlord may adjust those Operating Expenses that are affected by variations in occupancy levels to the amount of Operating Expenses that would have been incurred had there been ninety five percent (95%) occupancy.

5

 

Notwithstanding the foregoing, Operating Expenses shall not include costs of alterations to the premises of other tenants of the Property, depreciation charges, interest and principal payments on mortgages, ground rental payments and real estate brokerage and leasing commissions; costs incurred for Landlord's general overhead and any other expenses not directly attributable to the operation and management of the Building or the Property; costs of selling or financing any of Landlord's interest in the Property; costs incurred by Landlord for the repair of damage to the Property to the extent that Landlord is reimbursed by insurance proceeds; the costs of services and utilities separately chargeable to individual tenants of the Building; wages, bonuses, and other compensation of employees above the grade of property manager; the cost of installing, operating and maintaining any specialty service, such as cafeteria, gym, child or day care facilities; the cost of any work or services performed for any facility other than the Building; and capital expenditures other than those which (i) actually reduce Operating Expenses (but only to the extent of Landlord' s reasonable projection of such reduction), or (ii) are required under any governmental laws, regulations, or ordinances enacted after the date of this Lease.

8.    RECONCILIATION; AUDIT RIGHT. Any failure by Landlord to deliver any estimate or statement of Additional Rent required under this Lease shall not operate as a waiver of Landlord's right to collect all or any portion of Additional Rent due hereunder. On an annual basis, Landlord shall provide Tenant with a statement of all actual Operating Expenses (each, an “Operating Statement”) and all actual Taxes (each, a “Tax Statement”) for the preceding year. Landlord shall endeavor to provide such statements to Tenant within one hundred twenty (120) days following the end of each year (and shall in all events provide such statements to Tenant within one hundred fifty (150) days following the end of each year). If Tenant has made estimated payments of Operating Expenses or Taxes in excess of the actual amount due as shown on the applicable Operating Statement or Tax Statement, Landlord shall credit Tenant with any overpayment against the next Rent otherwise due, provided, however, if such overpayment occurs within the final year of the Term, then Landlord shall reimburse Tenant in the amount of such overpayment in cash as part of Landlord's reconciliation procedure for the final year of the Term at or after the end of the Term (and not later than fifteen (15) business days after such reconciliation procedure has been completed), and such obligation shall survive the expiration or earlier termination of this Lease. If the actual amount due exceeds the estimated payments made by Tenant during the preceding year, Tenant shall pay the difference to Landlord within  fifteen (15) business days of being invoiced therefor and such obligation shall survive the expiration or earlier termination of this Lease.

Tenant shall have the right during the Term, by providing written notice to Landlord (the “Review Notice”) within ninety (90) days after receiving Landlord's statement of actual Operating Expenses for any year, to review Landlord's records relating to Operating Expenses for such year as well as for the immediately preceding year (provided, however, Tenant shall not be permitted  to review any year more than once). Within a reasonable period of time after receipt of a timely Review Notice, Landlord shall make such records available for Tenant's review at either Landlord's home office or at the office of the property manager for the Building.  If Tenant fails  to give Landlord written notice stating in reasonable detail any objection to Landlord's statement ofactual Operating Expenses within sixty (60) days after such records are made available to Tenant for review then Tenant shall be deemed to have approved Landlord's statement of Operating Expenses for such year and Tenant shall have no further right to object or contest such statement. Upon Landlord's receipt of a timely objection notice from Tenant, Landlord and Tenant shall work together in good faith to resolve the discrepancy between Landlord' s statement and Tenant's review. If Landlord and Tenant determine that Operating Expenses for the year in question are less than reported in Landlord's statement, Landlord shall provide Tenant with a credit against future Rent in the amount of any overpayment    by Tenant. Likewise, if Landlord  and Tenant determine that Operating Expenses for the year in question are greater than reported in Landlord's statement, Tenant shall forthwith pay to Landlord the amount of underpayment by Tenant. Any information obtained by Tenant pursuant to the provisions of this section shall be treated as confidential  and   Landlord   may   require   that   Tenant   execute a  commercially reasonable confidentiality agreement as a condition of Tenant's review. If Tenant retains an agent to review Landlord's books and records for any year, such agent must (i) be a CPA firm (ii) not be compensated on a contingency basis, and (iii) execute a commercially reasonable confidentiality agreement with respect to such review. Tenant shall be solely responsible for all costs incurred by Tenant in connection with such review, unless such review discloses an overcharge in excess of three percent (3%), in which case Landlord shall pay all costs of such review not to exceed $7,500. Notwithstanding anything herein to the contrary, Tenant shall not be permitted to review 

6

 

Landlord's records or to dispute any statement of Operating Expenses if Tenant is in default hereunder beyond all applicable notice and cure periods or if Tenant has not first paid to Landlord the amount due as shown on Landlord's statement of actual Operating Expenses.

If, after the completion of Tenant's review in compliance with the preceding paragraph, Landlord and Tenant fail to resolve any discrepancy between Landlord's statement and Tenant's review, then either party may submit such dispute to arbitration conducted in Boston, Massachusetts administered by the American Arbitration Association (the “AAA”) under its Commercial Arbitration Rules. Prior written notice of application by either party for arbitration shall be given to the other at least ten (10) days before submission of the application to the said AAA' s office, in the City of Boston. The arbitrator shall hear the parties and their evidence. The decision of the arbitrator shall be binding and conclusive, and judgment upon the award or decision of the arbitrator  may  be entered  in the applicable  Superior  Court  of  the Commonwealth of Massachusetts. Each party shall bear their respective costs incurred in connection with any such arbitration.

9.    INSURANCE.

(A)    Tenant shall maintain the following insurance in force from the date upon which Tenant first enters the Premises and throughout the Term and thereafter for so long as Tenant is in occupancy of any part of the Premises:

(i)    Commercial General Liability insurance with limits of at least $ 1,000,000 per occurrence, $2,000,000 general aggregate, and, if the Tenant manufacturers or produces a product in the Premises, $2,000,000 products completed operations aggregate or such larger amounts as Landlord may reasonably require from time to time, covering bodily injury and property damage arising out of the use of the Premises, as well as products/completed operations, blanket contractual liability, personal injury and advertising liability;

(ii)    Worker's Compensation insurance as required by the state in which the Premises is located covering occupational injuries or disease to all employees of Tenant and to any contractors, subcontractors or other agents used by Tenant for work or other activities on or about the Premises. Such policy shall include Employer's Liability limits of at least $500,000 each accident, $500,000 each employee, and $500,000 disease;

(iii)    Business Automobile Liability insurance for all owned (Symbol 1), non- owned (Symbol 9) and hired, rented and/or borrowed (Symbol 8) vehicles used by the Tenant, its employees or agents. Such policy shall include a combined  single limit of liability of at least $1,000,000 per claim for bodily injury and property damage and shall provide that employees are insureds;

(iv)    Excess or Umbrella Liability insurance with a limit of at least $5,000,000 providing additional limits of insurance over the primary per occurrence and aggregate limits of the Commercial General Liability (including bodily injury, property damage, products/completed operations, personal/advertising injury and blanket contractual liability), Employer's Liability, and Business Auto Liability insurance required in (i), (ii), and (iii) above; and

(v)    Property insurance covering “all risk” of physical damage to Tenant's personal property and any property in the care, custody, and control of the Tenant. In addition this policy shall cover any direct or indirect physical damage to all alterations, additions, improvements (including carpeting, floor coverings, paneling, decorations, fixtures and any improvements or betterments to the Premises made by Tenant or by Landlord at Tenant's request or for Tenant's benefit) situated in or about the Premises. Such coverage shall be for the full replacement value of the covered property.

(B)    Tenant's Commercial General Liability, Property, and Excess Liability/Umbrella Liability policies shall name Landlord, Landlord's managing agent, and Landlord' s mortgagee as Additional Insureds and shall be primary insurance as to any insurance carried by the parties designated as Additional Insureds. All policies purchased and maintained by Tenant to satisfy the requirements in this Lease must be purchased from an insurance company with a minimum rating of “A- X” or its equivalent from one of the major rating agencies (AM Best, Moody' s, Standard & Poor' s, Fitch) that is admitted or eligible to do business in the state where the Premises is located.

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(C)    Tenant shall provide Landlord with a certificate of insurance for each policy simultaneously with the delivery of an executed counterpart of this Lease and at least thirty  (30) days prior to each renewal of such insurance. Such certificates of insurance shall be on an ACORD Form 27 or ISO Form 2026 or their equivalent, shall certify that such policy has been or shall be issued and that it provides the coverage and limits required above, and shall provide that the insurance shall not be canceled or materially changed unless thirty (30) days prior written notice (or ten (10) days in the event of cancellation for non-payment) shall have been given to Tenant. Tenant shall provide Landlord a copy of any such notice within five (5) business days following Tenant' s receipt thereof. In addition to providing the certificates of insurance required herein, Tenant shall also promptly furnish any additional information as Landlord may reasonably request from time to time pertaining to Tenant's insurance coverage. Tenant shall notify Landlord in writing (i) at least thirty (30) days in advance if Tenant intends to cancel or non-renew such insurance for any reason, or (ii) within three (3) business days of receipt if Tenant receives a notice that its insurance company intends to cancel or non-renew such insurance for any reason or that the required coverage or limits are to be materially changed from the initial requirements in this Lease. In the event that Tenant fails to obtain or maintain the insurance required above or fails to provide the certificates of insurance required, Landlord may, at its option, obtain such insurance on behalf of Tenant. Tenant shall pay, as Additional Rent upon demand, the reasonable cost of such insurance. Landlord' s failure to obtain such coverage on behalf of Tenant shall not limit Tenant's liability in the event of an uncovered loss.

(D)    Landlord shall carry or cause to be carried such insurance in amounts and with deductibles as a reasonably prudent landlord would purchase and maintain with respect to the Property. Tenant shall pay Tenant's Percentage of Landlord' s insurance premiums (“Insurance Premiums”) during the Term of the Lease as a part of Operating Expenses. Tenant shall not knowingly do or permit to be done anything which shall contravene, invalidate, or increase the cost of the Landlord' s insurance and shall comply with all rules, orders, regulations, requirements and recommendations of Landlord or its insurance companies relating to or affecting the condition, use, or occupancy of the Premises. If Tenant does knowingly conduct any activity within or about the Premises that results in an increase to the cost of Landlord' s insurance Tenant shall reimburse Landlord for the entire amount of such additional premiums or surcharges on demand.

10.    WAIVER OF SUBROGATION. Notwithstanding any other language of this Lease to the contrary, Landlord and Tenant each waive their respective rights to recover from the other for any and all loss of or damage to their respective property if such loss or damage is covered, or required by this Lease to be covered, by insurance. Both Landlord and Tenant shall obtain an endorsement acknowledging such waiver from its insurance company(s) evidencing compliance with this section.

11.    SECURITY DEPOSIT. Upon execution of this Lease, Tenant shall deposit with Landlord the amount of the Security Deposit specified in Section 1 of this Lease. Provided that Tenant has paid all amounts due and has otherwise performed all obligations hereunder, the Security Deposit shall be returned to Tenant without interest within thirty (30) days after the expiration of the Term. If Tenant defaults under any provision of this Lease, Landlord may, but shall not be obligated to, apply all or any part of the Security Deposit to cure the default. In the event Landlord elects to apply the Security Deposit as provided for above, Tenant shall, within five (5) days after Landlord' s demand, restore the Security Deposit to the original amount. Upon any sale or other conveyance of the Building, Landlord shall transfer the Security Deposit (or any amount of the Security Deposit remaining) to a successor owner, and Tenant agrees to look solely to the successor owner for repayment of the same. The Security Deposit shall not operate as a limitation on any recovery to which Landlord may be entitled.

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12.    USE. The Premises shall be used for the Permitted Use and for no other purposes whatsoever. Tenant shall not do or knowingly permit to be done in or about the Premises, Building or Property anything which is prohibited by any ordinance, order, rule, regulation, certificate of occupancy, or other governmental requirement, now in force or which may hereafter be enacted, including, without limitation, the Americans with Disabilities Act of 1990, as amended (collectively, “Applicable Law”). Tenant shall comply with all Applicable Law in its use of the Premises and common areas of the Property. Tenant shall use commercially reasonable efforts to cause all contractors, agents, employees, invitees and visitors of Tenant to use the Premises and any common area of the Property in such a manner as to prevent waste, nuisance and any disruption of other occupants. Landlord represents and warrants to Tenant that the maximum live floor load per square foot of the Premises is 125 pounds per square foot. Tenant shall not place a load upon any floor in the Premises exceeding such floor load. The judgment of any court of competent jurisdiction or the admission by Tenant in any action or proceeding against Tenant, whether Landlord is a party thereto or not, that Tenant has violated any Applicable Law in the use or occupancy of the Premises, Building or Property shall be conclusive of that fact as between Landlord and Tenant.

13.    MAINTENANCE; SERVICES. Tenant will, throughout the Term and at its sole cost, keep and maintain the Premises and all fixtures and equipment located therein clean, safe and in good working order, repair and condition, and make all necessary repairs thereto,  including, without limitation, replacing all broken glass with glass of the same size and quality as that broken, replacing all burnt out light bulbs and ballasts, removing all garbage, and repairing all systems or portions of systems exclusively serving the Premises including, without limitation, electrical, mechanical, fire and life safety, plumbing and heating, ventilating and air conditioning systems. For the purposes of maintaining the heating, ventilating, and air conditioning system serving the Premises (but only if such system serves only the Premises and no other space in the Building), Tenant shall, at Tenant's expense, procure and maintain from a contractor approved by Landlord a service and maintenance contract (“Service Contract”) subject to Landlord's review and approval, not to be unreasonably withheld, conditioned or delayed. Tenant shall provide such Service Contract to Landlord within thirty (30) days following the Commencement Date and within ten (10) days of Landlord' s request Tenant shall provide Landlord with copies of all service and maintenance records pertaining to the service and maintenance of the heating, ventilating and air conditioning system. In the event Tenant fails to maintain such contract, Landlord shall have the right, but not the obligation, to procure and maintain the heating, ventilating and air conditioning system maintenance contract and if Landlord so elects, Tenant shall reimburse Landlord for the cost thereof as Additional Rent upon demand. All repairs required of Tenant in connection herewith shall be of a quality and class at least equal to the minimum building standards established by Landlord and shall be done in a good and workmanlike manner in compliance with all Applicable Law and the terms and conditions of this Lease. If Tenant fails to maintain the Premises in compliance with the terms hereof Landlord shall have the right to do such acts and expend such funds at the expense of Tenant as are reasonably required and Tenant shall reimburse Landlord  for the cost  thereof  as Additional  Rent  upon demand. Should  Tenant require any additional service not provided by Landlord pursuant to this Lease, including any services furnished outside the Building' s normal business hours, Landlord may, but shall not be obligated to, furnish such additional service and Tenant agrees to pay Landlord's then standard charges therefor, which may include a reasonable administrative fee, any taxes imposed thereon, and, where appropriate, a reasonable allowance for depreciation of any systems being used to provide such service, as Additional Rent within thirty (30) days of being invoiced therefor.

Landlord shall maintain and repair (and replace, as necessary) in good working order, condition and repair, and, subject to Section 21(A), cause the same to be kept in compliance with Applicable Law, the roof, foundation, exterior walls, parking lots, walkways and any common areas of the Building, and all Building systems or portions of systems located outside the Premises not exclusively serving the Premises, the cost of which shall be included as a part of Operating Expenses, provided that Landlord shall have no obligation to make any repairs unless Landlord has first received written notice of the need for such repairs from Tenant. Notwithstanding the foregoing, any damage occasioned by the negligence or willful act of Tenant or any person claiming under Tenant, or contractors, agents, employees, invitees or visitors of Tenant or any such person, shall be repaired by and at the sole expense of Tenant, except that Landlord shall have the right, at its sole option, to make such repairs and to charge Tenant for all costs and expenses incurred in connection therewith and Tenant shall pay the cost therefor as Additional Rent within thirty (30) days after being invoiced thereof together with reasonable supporting documentation therefor.

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Notwithstanding the foregoing, if any existing rooftop heating, ventilation and air conditioning unit (“RTU”) serving the Premises fails and requires replacement during the first two (2) years of the initial Term, as determined by a licensed and qualified HVAC contractor selected by Tenant and approved by Landlord in its commercially reasonable judgment, then Landlord shall be responsible for the removal and replacement of such RTU with a reasonably comparable unit and Landlord shall pay directly to the contractor undertaking the removal and replacement project the full cost of such removal and replacement project; provided, however, that Landlord shall not be responsible for any costs which are due to damages to such RTU caused by Tenant or any of Tenant' s employees, contractors, agents, subtenants, invitees, or similar parties. In furtherance of the foregoing, and as a condition to any Landlord obligation pursuant to this paragraph (i) Tenant shall provide prior written notice to Landlord of the failure or required replacement of the RTU in question, along with a detailed recommendation from a licensed and qualified HVAC contractor that the replacement is required, which recommendation Landlord shall have the option to verify and confirm with its preferred HVAC contractor, (ii) Landlord shall determine (in its commercially reasonable judgment) the brand, make, and model of the proposed replacement HVAC unit) and final budget for the removal and replacement project prior to the actual incurrence of any costs related thereto, subject to Tenant's approval (which approval shall not be unreasonably withheld), (iii) Tenant shall provide Landlord with all necessary access to the Premises, and shall reasonably cooperate with Landlord in all respects, to undertake and complete the removal and replacement project.

14.    SUBLEASE;  ASSIGNMENT.

(A)    Tenant shall not mortgage, pledge, hypothecate or otherwise encumber its interest in this Lease. Tenant shall not allow the Premises to be occupied, in whole or in part, by any other party and shall neither sublet the Premises, in whole or in part, nor assign this Lease, nor amend any sublease or assignment to which Landlord has consented, without in each case obtaining  the prior written consent of Landlord. Any sublease or assignment, or amendment to any sublease or assignment, made without Landlord's prior written consent (if such consent is required hereunder) shall, at Landlord's option, be null, void and of no effect, and shall, at Landlord's option, constitute an Event of Default. The provisions of this section 14(A) shall apply to a transfer, by one or more transfers, of all, or substantially all, of the business or assets of Tenant, of a majority of the stock, partnership or membership interests, or other evidences of ownership, of Tenant, and of any shares, voting rights or ownership interests of Tenant which results in a change in the identity of the entity or entities which exercise, or may exercise, effective control of Tenant as if such transfers were an assignment of this Lease.  Tenant must request Landlord's consent to any assignment or sublease at least sixty (60) days prior to the proposed effective date of the assignment or sublease. At the time of its request, Tenant shall provide Landlord in writing: (a) the name and address of the proposed assignee or subtenant, (b) a complete copy of the proposed assignment or sublease or a term sheet setting forth the material economic terms of the proposed assignment or sublease, (c) reasonably satisfactory information about the nature, business, and business history of the proposed assignee or subtenant and its proposed use of the Premises, and (d) banking, financial or other credit information about the proposed assignee or subtenant reasonably sufficient to enable Landlord to determine  its financial  condition and  operating performance. Landlord shall not unreasonably withhold, condition or delay its consent to Tenant's written request to sublease the Premises or assign this Lease which is made in compliance with the terms and conditions of this section. Without  limiting  the other instances  in  which  it  may  be reasonable for Landlord to withhold its consent to an assignment or sublease, Landlord's refusal to consent to any proposed assignment or sublease shall not be unreasonable if: (a) the financial condition or operating performance of the proposed subtenant or assignee, determined in Landlord's reasonable discretion, is less than the greater of the financial condition or operating performance of the Tenant on (i) the date of execution of this Lease or (ii) the date of Tenant's request for Landlord's consent to the proposed assignment or sublease, (b) Tenant is in default under any of the terms, covenants or conditions of this Lease beyond all applicable notice and cure periods, (c) Landlord reasonably determines that the proposed use of the Premises may result in: (i) increased wear and tear on the Premises, Building or Property or (ii) any materially adverse effect on other tenants in the Building or adjacent buildings owned by Landlord, (d) the proposed subtenant or assignee is a governmental agency, (e) Landlord has space available elsewhere in the Building which can accommodate the needs of the proposed subtenant or assignee or the proposed subtenant or assignee is a prospect to whom Landlord has made a proposal for the lease of space within the market area within the prior six (6) months, (f) the proposed assignee or subtenant is a tenant in any building owned by Landlord or any affiliate of Landlord including, without limitation, the Building, (g) the proposed subtenant or assignee would or its proposed use of the Premises would cause Landlord to be in violation of any covenant or restriction contained in another lease or other agreement, (h) Landlord's lender, if any, does not consent to the proposed sublease or assignment where such consent is required under the applicable loan documents.

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(B)    Notwithstanding the foregoing, Landlord's consent shall not be withheld, and Landlord shall have no right to recapture the Premises or share in Profits (defined below), when Tenant is transferring its interest in the Premises pursuant to transactions with an entity into or with which Tenant is merged or consolidated or to which all or substantially all of Tenant's business or assets are transferred or to any entity which controls or is controlled by Tenant or is under common control with Tenant (provided that such entity maintains such relationship to Tenant for a period of at least two (2) years after the date of such transfer, it being agreed that the subsequent sale or transfer of stock within such two (2) year period resulting in a change in voting control, or any other transaction(s) within such two (2) year period having the overall effect that such entity ceases to control, be controlled by, or be under common control with Tenant, shall be treated as an assignment of this Lease governed by the preceding paragraphs of this Section) (such transfer being a “Permitted Transfer”), provided that in any of such events (a) Tenant is not then in default under this Lease beyond applicable notice and cure periods, and (b) the successor to Tenant, in Landlord's reasonable opinion, possesses adequate financial capability to perform the Tenant obligations as and when due or required.

(C)    No subletting or assignment shall release Tenant from Tenant's obligations under this Lease or alter the primary liability of Tenant to pay the Rent and to perform all other obligations to be performed by Tenant hereunder. Any subtenant shall, at Landlord's election, attorn to Landlord following any early termination of this Lease and any assignee shall be jointly and severally liable for the full performance of all of Tenant' s obligations hereunder. Landlord may require, as a condition to granting Landlord's consent with respect to the provisions of this section, that the proposed subtenant or assignee enter into a written agreement with Landlord confirming the obligations of such subtenant or assignee under this Lease. Tenant shall pay, as Additional Rent within thirty (30) days after being invoiced therefor, all reasonable legal fees (not to exceed $2,500) incurred by Landlord in connection with each proposed assignment or sublease whether or not Landlord's consent is obtained. If Tenant receives rent or other payments under any assignment or sublease in excess of the payments made by Tenant to Landlord under this Lease (as such amounts are adjusted on a per square foot basis if less than all of the Premises is transferred), then Tenant shall pay Landlord one-half of such excess after deduction on an amortized basis of the cost of reasonable marketing expenses, brokerage fees and tenant improvements (such net amount “Profits”) paid for or incurred in connection with such sublease or assignment. Landlord's consent to one assignment or sublease shall not be deemed a waiver of the requirement of Landlord ' s consent to any subsequent assignment or sublease. In the event Tenant seeks to assign its interest in this Lease, and Landlord does not consent to such proposed assignment, Landlord may elect to terminate this Lease in its entirety, and the last day of the Term of this Lease shall be the thirtieth (30th) day after Landlord notifies Tenant of Landlord's election to terminate this Lease. In the event Tenant seeks to sublet all or any portion of the Premises and Landlord does not consent to such proposed sublease, Landlord may elect to terminate this Lease with respect to the portion of the Premises that would be subject to such sublease and the last day of the Term of this Lease for such space shall be the thirtieth (30th) day after Landlord notifies Tenant of Landlord' s election to terminate this Lease and, if less than the entire Premises is affected, Landlord shall have the right to perform any alterations to make such space a self contained rental unit.

15.    INDEMNITY; NON-LIABILITY OF LANDLORD. Except to the extent prohibited by law, as a material part of the consideration for Landlord' s execution of this Lease, Tenant shall not hold Landlord or its employees or Landlord's agents or contractors or their employees liable for, and Tenant covenants and agrees that it shall indemnify and defend Landlord for and against any and all penalties, damages, fines, causes of action, liabilities, judgments, expenses (including, without limitation, reasonable attorneys' fees) or charges incurred in connection with or arising from: (i) the use or occupancy of the Premises by Tenant or any person claiming under   Tenant; (ii) any acts, omissions or negligence of Tenant or any person claiming under Tenant, or contractors, agents, employees, invitees or visitors of Tenant or any such person; (iii) any breach, violation or nonperformance by Tenant or any person claiming under Tenant or the employees, agents , contractors , invitees or visitors of Tenant or any such person of any term, covenant or provision of this Lease or any Applicable Law; (iv) any injury or damage to the person, property or business of Tenant, its employees, agents, contractors, invitees, visitors or any other person entering upon the Property under the express or implied invitation of Tenant; or (v) any matter occurring in the Premises during the Term that is not caused by the negligence or willful misconduct of Landlord or the employees, agents, contractors, invitees or visitors of Landlord.

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Landlord shall indemnify, defend and hold harmless Tenant from and against any and all claims, demands, causes of action, judgments, costs and expenses, and all losses and damages caused to Tenant from any occurrence within the common areas of the Building or Property without any negligence on the part of Tenant and arising from Landlord' s negligence or willful misconduct in failing to maintain the common areas of the Building and Property in accordance with the provisions of this Lease. Upon notice from Tenant, Landlord shall defend any such  claim, demand, cause of action or suit at Landlord' s expense by counsel selected by Landlord and reasonably satisfactory to Tenant, provided, however, that any counsel selected by Landlord' s insurance carrier shall be deemed acceptable to Tenant.

Landlord, to the fullest extent not prohibited by law, shall not be liable for any damage occasioned by failure to keep the Premises, Building or Property in repair, nor for any damage done or occasioned by or from plumbing, gas, electricity, water, sprinkler, or other pipes or sewerage or the bursting, leaking or running of any pipes, tank or plumbing fixtures, in, above, upon or about the Premises or the Building nor from any damage occasioned by water, snow or ice being upon or coming through the roof, skylights, trap door or otherwise, nor for any damages arising from acts, or neglect of co-tenants or other occupants of the Building or of any owners or occupants of adjacent or contiguous property, nor for any loss of or injury to property or business occurring, through, in connection with or incidental to the failure to furnish any such services or the interruption of any services to the Premises. Further, Landlord shall not be liable or responsible to Tenant for any loss or damage to any property or person occasioned by theft or any other criminal act, fire, act of God, public enemy, injunction , riot, strike, insurrection, war, court order, law of requisition or order of any governmental authority.

Neither Landlord nor Tenant shall be liable in any event for incidental or consequential damages to the other party by reason of any default by such party hereunder, whether or not the other party is notified that such damages may occur. The term “Landlord” , as used in this Lease, so far as covenants or obligations to be performed by Landlord are concerned, means only the owner or owners at the time in question of the Landlord' s interest in the Building, and in the event of any transfer or transfers ohitle to the Landlord's interest in the Building, the Landlord herein named (and in case of any subsequent transfers or conveyances, the then grantor) shall be automatically freed and relieved from and after the date of such transfer or conveyance of all liability as respects the performance of any covenants or obligations on the part of the Landlord contained in this Lease thereafter to be performed. Tenant's sole recourse against Landlord, and any successor to the interest of Landlord in the Premises, is to the interest of Landlord, and any successor, in the Premises and the Building of which the Premises are a part. In no event whatsoever shall Landlord or any beneficiary of any trust of which Landlord is a trustee or any of Landlord's officers, directors, partners, managers, members, shareholders, agents, attorneys and employees ever be personally liable hereunder.

16.    UTILITIES. Tenant shall contract directly with public utility providers for gas and electricity which are separately metered to the Premises and shall pay such utility providers directly and promptly when due. Landlord represents and warrants that all meters for such gas and electric utilities are currently in the Premises and are operational. If any utility is not separately metered to the Premises, including water and sewer, the cost of such utility consumed on the Premises, as reasonably determined by Landlord, shall be paid by Tenant as Additional Rent as part of Operating Expenses. Tenant's obligation to pay for utilities provided to the Premises during the Term shall survive the expiration or earlier termination of the Lease. Tenant shall not utilize an alternative provider for a utility service other than the public utility provider servicing the Property unless Tenant shall first obtain the written consent of Landlord. Landlord shall in no way be liable or responsible for any loss, damage, or expense that Tenant may sustain or incur by reason of any change, failure, interruption, or defect in the supply or character of the electric energy furnished to the Premises or Building. To ensure the proper functioning and protection of all utilities, Tenant agrees to abide by all reasonable regulations and requirements which Landlord may prescribe and to allow Landlord and its utility providers access to all electric lines, feeders, risers, wiring, and any other machinery within the Premises (provided that reasonable prior written notice thereof shall be given to Tenant, and in connection therewith, Landlord shall take reasonable steps to minimize interference with Tenant's business in the Premises).

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17.    HOLDING OVER. If Tenant or any party claiming by or under Tenant remains in occupancy of the Premises or any part thereof beyond the expiration or earlier termination of this Lease, such holding over shall be without right and a tenancy at sufferance, and Tenant shall be liable to Landlord for any loss or damage incurred by Landlord as a result thereof, including consequential damages; provided, however, Landlord shall not be entitled to consequential damages on account of Tenant's holding over that are attributable to any period prior to the date that is forty five (45) days after Landlord has provided notice to Tenant that Landlord has entered into good faith negotiations with a prospective replacement tenant for any portion of the Premises. In addition, for each month or any part thereof that such holding over continues, Tenant shall pay to Landlord a monthly fee for the use and occupancy of the Premises equal to (a) for the first thirty days of such holdover, one hundred fifty percent (150%) of the Rent payable for the month immediately preceding such hold over, and (b) thereafter, two hundred percent (200%) of the Rent payable for the month immediately preceding such hold over, and there shall be no adjustment or abatement for any partial month. The provisions of this section shall not be deemed to limit or exclude any of Landlord's rights of re-entry or any other right granted to Landlord hereunder, at law or in equity.

18.    NO RENT DEDUCTION OR SET OFF. Tenant's covenant to pay Rent is and shall be independent of each and every other covenant of this Lease. Tenant agrees that any claim by Tenant against Landlord shall not be deducted from Rent nor set off against any claim for Rent in any action. No payment by Tenant or receipt by Landlord of a lesser amount than the Rent herein stipulated shall be deemed to be other than on account of the earliest stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such Rent or pursue any remedy provided in this Lease or at law. In connection with the foregoing, Landlord shall have the absolute right in its sole discretion to apply any payment received from Tenant to any account or other payment of Tenant then not current and due or delinquent.

Notwithstanding the foregoing, if, for more than three (3) consecutive business days following written notice from Tenant to Landlord, Landlord shall fail to restore of any utility or other service required to be provided by Landlord under this Lease following the interruption, curtailment or suspension of such utility or other service as a result of Landlord's negligence or willful misconduct, and as a result of such failure (i) Tenant shall not be reasonably able to use and occupy, or to have access to, the entire Premises or a material portion of the Premises, as the case may be, for the normal conduct of Tenant's business operations, and (ii) Tenant does not use or occupy the same during said period, then the obligation of Tenant to pay Rent hereunder shall be abated in proportion to the portion of the Premises that Tenant is unable to use as a result of such failure from the date of Tenant's notice until the date on which Landlord has restored any such utility or other service.

19.    CASUALTY. If the Premises or any part thereof are damaged by fire or other casualty, Tenant shall give prompt notice thereof to Landlord. If the Premises or the Building are totally or partially damaged or destroyed by fire or other casualty, thereby rendering the Premises totally or partially inaccessible or unusable, Landlord shall diligently restore and repair the Premises and the Building to substantially the same condition they were in prior to such damage. Provided that such damage was not caused by the act or omission of Tenant or any of its employees, agents, licensees, invitees or subtenants, until the repair and restoration of the Premises is completed Base Rent and Additional Rent shall be abated for that part of the Premises that Tenant is unable to use without substantial interference and is not occupied while repairs are being made, based on the ratio that the amount of unusable rentable area bears to the total rentable area of the Premises. Landlord shall bear the costs and expenses of repairing and restoring the Premises and the Building, provided, however, that Landlord shall not be obligated to spend more than the net proceeds of insurance made available for such repair and restoration nor shall Landlord be obligated to repair or restore, or to pay for the repair or restoration of, any furnishings, equipment or personal property belonging to Tenant or any alterations, additions, or improvements (including carpeting, floor coverings, paneling, decorations, fixtures) made to the Premises or Building by Tenant or by Landlord at Tenant's request or for Tenant's benefit. It shall be Tenant's sole responsibility to repair and restore all such items.

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Notwithstanding the foregoing, (a) if there is a destruction of the Building that exceeds twenty-five percent (25%) of the replacement value of the Building from any risk, whether or not the Premises are damaged or destroyed, or (b) if Landlord reasonably believes that the repairs and restoration cannot be completed despite reasonable efforts within ninety (90) days after the occurrence of such damage, or (c) if Landlord reasonably believes that there shall be less than two (2) years remaining in the Term (exclusive of any extension options) upon the substantial completion of such repairs and restoration, or (d) if any mortgagee or lender fails or refuses to make sufficient insurance proceeds available for repairs and restoration, or (e) if zoning or other Applicable Law does not permit such repairs and restoration, Landlord shall have the right, at its sole option, to terminate this Lease by giving written notice of termination to Tenant within one hundred eighty (180) days after the occurrence of such damage. If this Lease is terminated pursuant to the preceding sentence, all Rent payable hereunder shall be apportioned and paid to the date of termination.

All time periods provided in this Section for Landlord' s performance shall be subject to extension  on  account  of delays  in  effectuating  a  satisfactory  settlement  with  any insurance company involved and Force Majeure events. In the event of any damage or destruction to the Building or Premises, it shall be Tenant's responsibility to secure the Premises and, upon notice from Landlord, to remove forthwith, at its sole cost and expense, property belonging to Tenant or its licensees from such portion of the Premises as Landlord shall reasonably request.

20.    SUBORDINATION; ESTOPPEL LETTERS. This Lease is expressly subordinate to any current or future mortgage or mortgages placed on the Property and to all other documents executed in connection with any such mortgage.  Tenant agrees not to pay rent more than   thirty (30) days in advance and to attorn to any party acquiring rightful possession of the Premises by or through any such mortgage. Tenant agrees that from time to time it shall deliver to Landlord or Landlord's mortgagee or designee within ten (10) business days of the date of Landlord's or Landlord's mortgagees or such other designee's request, a statement, in writing, certifying (i) that this Lease is unmodified and in full force and effect, if this is so, or if there have been modifications, that the Lease, as modified, is in full force and effect; (ii) the dates to which Rent and other charges have been paid; (iii) that Landlord is not in default under any provisions of this Lease or, if in default, the nature thereof in detail; (iv) the subordination of this Lease to any current or future mortgage or mortgages placed on the Property by Landlord and Tenant's agreement to attorn to any party acquiring rightful possession of the Premises by or through any such mortgage; and (v) such other true statements as Landlord or Landlord's mortgagee or designee may reasonably require.

Landlord intends to refinance the Building in the first quarter of 2017. Landlord shall cause the mortgagee of such refinancing to enter into its usual subordination, non-disturbance and attomment agreement (“SNDA”) with Tenant, subject to Tenant's negotiation of commercially reasonable modifications to any such SNDA. Landlord shall thereafter use commercially reasonable to cause any future mortgagee of the Property to enter into such mortgagee's usual SNDA with Tenant, subject to Tenant's negotiation of commercially reasonable modifications to any such SNDA.

Landlord represents and warrants that no lease superior to this Lease (e.g., a ground lease) exists with respect to the Property.

21.    ALTERATIONS;   RESTORATION.

(A)    Tenant shall not make or permit to be made any alterations, additions, or improvements in or to the Premises (“Alterations”) without first obtaining the prior written consent of Landlord which consent shall not be unreasonably withheld, conditioned or delayed with respect to non-structural Alterations that do not cost more than Fifty Thousand Dollars ($50,000) in any one calendar year, are not visible from outside of the Premises and do not affect the operating or life safety systems of the Building, but which consent may otherwise be withheld in Landlord' s sole discretion. Notwithstanding the foregoing, Landlord's consent shall not be required for cosmetic Alterations, such as painting, hanging pictures, and installing carpeting so long as Tenant provides Landlord not less than five (5) business days prior written notice of any such Alteration for which Tenant has engaged a third party contractor. All Alterations (i) must comply with all Applicable Laws, (ii) must be compatible with the Building and its mechanical, electrical, heating, ventilating, air-conditioning and life safety systems; (iii) must not interfere with the use and occupancy of any other portion of the Building by any other tenant or their invitees; and (iv) must not affect the integrity of the structural portions of the Building. In 

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addition, Landlord may impose as a condition to such consent such additional requirements as Landlord in its commercially reasonable discretion deems necessary or desirable, including, without limitation: (a) Tenant's submission to Landlord, for Landlord's prior written approval (not to be unreasonably withheld, conditioned or delayed), of all plans and specifications relating to the Alterations; (b) Landlord's prior written approval (not to be unreasonably withheld, conditioned or delayed) of the time or times when the Alterations are to be performed; (c) Landlord's prior written approval (not to be unreasonably withheld, conditioned or delayed) of the contractors and subcontractors performing work in connection with the Alterations (provided, however, that Tenant shall be entitled to use its own architect and general contractor for the performance of Tenant's Work as set forth in Exhibit D attached hereto); (d) Tenant's receipt of all necessary permits and approvals from all governmental authorities having jurisdiction over the Premises prior to the construction of the Alterations; (e) Tenant's delivery to Landlord of such bonds and insurance as Landlord reasonably requires; (f) Tenant's payment to Landlord of a commercially reasonable fee for Landlord's supervision of any Alterations not to exceed 2% of the cost of the Alterations in question; (g) Tenant's and Tenant's contractor's compliance with such construction rules and regulations and building standards as Landlord promulgates from time to time; and (i) Tenant' s delivery to Landlord of “as built” drawings of the Alterations in such form or medium as Landlord may reasonably require.All direct  and  indirect costs relating to  any  modifications,  alterations or improvements of Building, whether outside or inside of the Premises, required by any governmental agency or by law as a condition or as the result of any Alteration requested or effected by Tenant shall be borne by Tenant. Tenant shall not permit any mechanic's lien or other liens to be placed upon the Premises or the Building as a result of any materials, services or labor ordered by or provided to Tenant or any of Tenant's agents, officers, or employees. Without waiving any other rights or remedies under this Lease, Landlord may bond or insure or otherwise discharge any such lien and Tenant shall reimburse Landlord for any amount paid by Landlord in connection therewith as Additional Rent within ten (10) days after being invoice therefor.

(B)    Upon the expiration or earlier termination of the Lease, Tenant shall surrender the Premises in good working order and condition. Tenant shall remove any and all Alterations, trade fixtures, equipment, data/telecommunications cabling and wiring installed by or on behalf of Tenant and furniture from the Premises and Tenant shall fully repair any damage, including any structural damage, occasioned by the removal of the same. Notwithstanding the foregoing, Tenant shall only be required to remove such Alterations, including those performed pursuant to Exhibit D, if Landlord shall at the time of giving consent to the making of such Alteration notify Tenant that removal of same and restoration of the Premises shall be required at the end of the term of the Lease. If Landlord notifies Tenant that Tenant not remove any or all such Alteration(s), such Alteration shall become a part of the realty and shall belong to Landlord without compensation, and title thereto shall pass to Landlord under this Lease as by a bill of sale. At Landlord's election, all Alterations, trade fixtures, equipment, wire and cable, furniture, fixtures, other personal property not removed shall conclusively be deemed to have been abandoned by Tenant and may be appropriated, sold, stored, destroyed or otherwise disposed of by Landlord without notice to Tenant or to any other person and without obligation to account for them. Tenant shall pay Landlord all reasonable expenses incurred in connection with Landlord's disposition of such property, including without limitation the cost of repairing any damage to the Building or the Premises caused by removal of such property, and shall hold Landlord harmless from loss, liability, or expense arising from the claims of third parties such as Tenant's lenders whose loans are secured by such property. Tenant's obligations under this section shall survive the end of this Lease.

22.    DEFAULT; REMEDIES.

(A)    In addition to any other acts or omissions designated in this Lease as Events of Default, each of the following shall constitute an Event of Default by Tenant hereunder: (i) the failure to make any payment of Rent or any installment thereof or to pay any other sum required to be paid by Tenant under this Lease within five (5) business days after Landlord shall have provided written notice to Tenant that the same is due, but such notice shall not be given more than twice in any twelve (12) month period such that any subsequent failure to make any such payment when due in said twelve month period shall constitute an Event of Default hereunder without the need for notice or grace period; (ii) the use or occupancy of the Premises for any purpose other than the Permitted Use without Landlord's prior written consent or the conduct of any activity in the Premises which constitutes a violation of law; (iii) if the interest of Tenant or any part thereof under this Lease shall be levied on under execution or other legal process and said interest shall not have been cleared by said levy or execution within fifteen (15) days from the date thereof; (iv) if any voluntary or involuntary petition in bankruptcy or for corporate reorganization or any similar relief shall be filed by or against Tenant or any 

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guarantor of the Lease or if a receiver shall be appointed for Tenant or any guarantor or any of the property of Tenant or guarantor and such involuntary petition or appointment of a receiver is not dismissed or stayed within sixty (60) days of such filing or appointment; (v) if Tenant or any guarantor of the Lease shall make an assignment for the benefit of creditors or if Tenant shall admit in writing its inability to meet Tenant's debts as they mature; (vi) if any insurance required to be maintained by Tenant pursuant to this Lease shall be cancelled or terminated or shall expire or shall be reduced or materially changed, except, in each case, as permitted in this Lease, or mutually agreed to in writing by the parties; (vii) if Tenant shall fail to discharge or bond over any lien placed upon the Premises in violation of this Lease within thirty (30) days after receiving written notice of the existence of such lien; (viii) if Tenant shall abandon or vacate the Premises during the Term; (ix) if Tenant shall fail to execute and deliver an estoppel certificate or subordination agreement as required hereunder; or (x) the failure to observe or perform any of the other covenants or conditions in this Lease which Tenant is required to observe and perform and which Tenant has not corrected within twenty (20) days after written notice thereof to Tenant; provided however, that if such failure is not susceptible to being cured within such period of time, Tenant shall be entitled to such additional time as may be reasonably necessary so long as Tenant is diligently curing such failure and completes such cure within one hundred twenty (120) days thereafter; further provided, however, if such failure creates a condition that, in Landlord's reasonable judgement, is dangerous or hazardous then Tenant shall be required to commence such cure within three (3) business days following written notice and, subject to extension for Force Majeure (as defined in Section 30(G)) complete such cure within ten (10) business days.

(B)    Upon the occurrence of an Event of Default by Tenant, Landlord may, at its option, with or without notice or demand of any kind to Tenant or any other person, exercise any one or more of the following described remedies, in addition to all other rights and remedies provided at law, in equity or elsewhere herein, and such rights and remedies shall be cumulative and none shall exclude any other right allowed by law:

(i)    Landlord may terminate this Lease, repossess and re-let the Premises, in which case Landlord shall be entitled to recover as damages (in addition to any other sums or damages for which Tenant may be liable to Landlord) a lump sum equal to the amount by which the present value of the excess Rent remaining to be paid by Tenant for the balance of the Term of the Lease exceeds the fair market rental value of the Premises, after deduction of all anticipated expenses of reletting. For the purpose of determining present value, Landlord and Tenant agree that the interest rate shall be the rate applicable to the then-current yield on obligations of the U.S. Treasury having a maturity date on or about the Expiration Date. Should the fair market rental value of the Premises for the balance of the Term (after deduction of all anticipated expenses of reletting) exceed the value of the Rent to be paid by Tenant for the balance of the Term, Landlord shall have no obligation to pay to or otherwise credit Tenant for any such excess amount;

(ii)    Landlord may, without terminating the Lease, terminate Tenant's right of possession, repossess the Premises including, without limitation, removing all or any part of Tenant's personal property in the Premises and to place such personal property in storage or a public warehouse at the expense and risk of Tenant, and relet the same for the account of Tenant for such rent and upon such terms as shall be satisfactory to Landlord in its commercially reasonable judgment. For the purpose of such reletting, Landlord is authori zed to decorate, repair, remodel or alter the Premises. Tenant shall pay to Landlord as damages a sum equal to all Rent under this Lease for the balance of the Term unless and until the Premises are relet. If the Premises are relet, Tenant shall be responsible for payment upon demand to Landlord of any deficiency between the Rent as relet and the Rent for the balance of this Lease, and all actual costs and expenses of reletting. Tenant shall not be entitled to any rents received by Landlord in excess of the rent provided for in this Lease. No re-entry or taking possession of the Lease Premises by Landlord shall be construed as an election to terminate this Lease unless a written notice of such intention be given to Tenant or unless the termination thereof be decreed by a court of competent jurisdiction. Notwithstanding any reletting without  termination,  Landlord  may  at any time thereafter elect to terminate this Lease for any breach, and in addition to the other remedies it may have, recover as damages (in addition to any other sums or damages for which Tenant may be liable to Landlord) a lump sum equal to the amount by which the present value of the excess Rent remaining to be paid by Tenant for the balance of the Term of the Lease exceeds the fair market rental value of the Premises, after deduction of all anticipated expenses of reletting. In the event Landlord repossesses the Premises as provided above, Landlord may remove all persons and property from the Premises and store any such property at the cost of Tenant, without liability for damage; and

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(iii)    Landlord may, but shall not be obligated to, and without waivmg or releasing Tenant from any obligations of Tenant hereunder, make any payment or perform such other act on Tenant' s part to be made or performed as provided in this Lease. All sums so paid by Landlord and all necessary incidental costs shall be payable to Landlord as Additional Rent on demand and Tenant covenants to pay such  sums.

(C)    If Tenant (i) fails to pay Rent timely and such failure continues for five (5) days after written notice thereof (the payment of Rent in monthly installments being for the sole benefit and convenience of Tenant), (ii) fails to maintain the Security Deposit as required hereunder, and such failure continues for five (5) business days after written notice thereof, (iii) uses or permits or suffers the use of the Premises for any purpose other than the Permitted Use and such   failure continues for five (5) business days after written notice thereof, or (iv) assigns or subleases the Premises in violation of the provisions of Section 14 hereof (Assignment/Subletting), then, because both parties agree that each of the foregoing defaults is a substantial and material breach of the Tenant's obligations hereunder, at the option of Landlord the entire balance of Rent due under this Lease shall become due and payable immediately as liquidated damages. Landlord and Tenant specifically acknowledge and agree that accelerating the Rent as liquidated damages is fair and reasonable because, among other reasons, each of the foregoing defaults is significant and material and the parties cannot foresee when in the Term any such default may occur , what the commercial rental market for the Premises may be at the time of such default, what the cost of finding a substitute tenant may be at such time, or how long the Premises may remain vacant following any such default.

(D)    Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this section from time to time and that no suit or recovery of any portion due Landlord hereunder shall be any defense to any subsequent action brought for any amount not theretofore reduced to judgment in favor of Landlord.

(E)    Tenant shall promptly pay upon notice, as Additional Rent, all reasonable costs, charges and expenses incurred by Landlord (including, without limitation , reasonable fees and out­ of-pocket expenses of legal counsel, collection agents, and other third parties retained by Landlord) together with interest thereon at the Default Rate, in collecting any amount due from Tenant, enforcing any obligation of Tenant hereunder, or preserving any rights or remedies of Landlord; and Tenant shall pay all reasonable attorneys ' fees and expenses arising out of any litigation, negotiation or transaction in which Tenant causes Landlord, without Landlord's fault, to become involved or concerned.

(F)    No waiver of any provision of this Lease shall be implied by any failure of Landlord to enforce any remedy on account of the violation of such provision, even if such violation be continued or repeated subsequently, and no express waiver by Landlord shall be valid unless in writing and shall not affect any provision other than the one specified in such written waiver and that provision only for the time and in the manner specifically stated in the waiver. No receipt of monies by Landlord from Tenant after the termination of this Lease shall in any way alter the length of the Term or Tenant's right of possession hereunder or after the giving of any notice shall reinstate, continue or extend the Term or affect any notice given Tenant prior to the receipt of such monies, it being agreed that after the service of notice or the commencement of a suit or after final judgment for possession of the Premises, Landlord may receive and collect any Rent due, and the payment of Rent shall not waive or affect said notice, suit or judgment.

23.    NOTICES. All notices permitted or required hereunder shall be in writing and (i) delivered personally, (ii) sent by U.S. certified mail, postage prepaid, with return receipt requested, or (iii) sent overnight by nationally recognized overnight courier and sent to the respective parties at the Notice Addresses provided in Section 1 of this Lease. If sent by U.S. certified mail, such notice shall be considered received by the addressee on thesecond (2nd) business day after posting. If sent by nationally recognized overnight courier, such notice shall be considered received by the addressee on the first (1st) business day after deposit with the courier. Notices may be given by an agent on behalf of Landlord or Tenant. Any notice from Landlord to Tenant shall also be deemed to have been given if delivered to the Premises, addressed to Tenant.

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24.    EMINENT DOMAIN. If during the Term (a) the whole of the Premises or the Building shall be taken by any governmental or other authority having powers of eminent domain or conveyed to such entity under threat of the exercise of such power or (b) any part of the Premises or the Building shall be so taken or conveyed and as a result, the remainder of the Premises or the Building has been rendered impractical, in Landlord's commercially reasonable judgment, for the operation of Landlord's rental activities on the Property, this Lease shall terminate on the date of the taking or conveyance, and rent shall be apportioned to the date thereof. Tenant shall have no right to any apportionment of or any share in any condemnation award or judgment for damages made for the taking or conveyance of any part of the Premises or the Building but may prosecute a separate claim for the value of all Alterations, and tenant improvements provided such claim does not reduce any award to Landlord.

25.    QUIET ENJOYMENT. Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the rental and performing its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord subject to the terms and provisions of this Lease. Landlord shall not be liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance. Nevertheless, Landlord agrees to use reasonable efforts to enforce the terms and conditions and rules and regulations of any third party's lease at the Building in order to minimize any interference or disturbance caused by such third party to Tenant' s use and enjoyment of the Premises.

26.    RULES AND REGULATIONS. Tenant agrees to comply with (and cause its agents, contractors, employees and invitees to comply with) the rules and regulations attached hereto as Exhibit B and with such reasonable modifications thereof and additions thereto as Landlord may from time to time make. Landlord agrees to enforce the rules and regulations uniformly against all tenants of the Property. Landlord shall not be liable, however, for any violation of said rules and regulations by other tenants or occupants of the Building or Property.

27.    ENVIRONMENTAL. (A) “Environment” shall mean all indoor and outdoor air, surface water, groundwater, surface or subsurface land , including, without limitation, all fish, wildlife, biota and all other natural resources. “ Environmental Laws” shall mean all federal, state and local laws (including, without limitation, case and common law), statutes, regulations, rules, ordinances, binding guidance, permits, licenses, grants, orders, decrees and judgments relating to the Environment, human health and safety (as it relates to exposure to Hazardous Substances, defined below), preservation or reclamation of natural resources, or to the management, handling, use, generation, treatment, storage, transportation, disposal, manufacture, distribution, formulation, packaging, labeling, Release or threatened Release of or exposure to Hazardous Substances, whether now existing or subsequently amended or enacted, including, without limitation: the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq. (“CERCLA”); the Federal Water Pollution Control Act, 33 U.S.C. Section 1251 et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et seq.; the Toxic Substances Control Act, 15 Section 2601 et seq.; the Occupational Safety and Health Act (to the extent it relates to exposure to Hazardous Substances), 29 U.S.C. Section 651 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 1100 I et seq .; the Safe Drinking Water Act,  42 U.S.C. Section  300(f) et  seq.;  the Hazardous  Materials Transportation Act, 49  U.S.C. Section 1801 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act 7 U.S.C. Section 136 et seq.; the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. Section 6901 et seq.; and the Oil Pollution Act of 1990, 33 U.S.C. Section 2701 et seq. “Hazardous Substances” shall mean all explosive materials, radioactive materials, hazardous or toxic materials, wastes, chemicals or substances, petroleum, petroleum by-products and petroleum products (including, without limitation, crude oil or any fraction thereof), asbestos and asbestos-containing materials, radon, lead, polychlorinated biphenyls, and all materials, wastes, chemicals and substances that are regulated as hazardous by any Environmental Law, including, without limitation, hazardous materials listed in 49 C.F.R. Section 172.101 and materials defined as hazardous substances pursuant to Section 101(14) of CERCLA. “Release” shall mean any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing of Hazardous Substances into the Environment.

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(B)    Upon Landlord’s information and belief, as of the Commencement Date, the Premises are in compliance with all Environmental Laws and Landlord has not received any notice from a governmental authority to the contrary. Tenant shall not suffer or permit to occur any violation of Environmental Laws by Tenant, its employees or contractors with respect to the Premises or Property. Tenant shall not Release any Hazardous Substance at, in, under, from, or on the Premises or Property. Other than in compliance with all Environmental Laws and only to the extent reasonable and customary in the ordinary course of Tenant’s business and the Permitted Use, Tenant shall not manufacture, generate, treat or process any Hazardous Substances, on the Premises or Property. Tenant shall not utilize, store or handle any Hazardous Substances, on the Premises or Property except those which are reasonably necessary and customary in the ordinary course of Tenant’s business and the Permitted Use, and provided that in doing so Tenant complies with all Environmental Laws. Tenant shall not install any underground storage tanks for any Hazardous Substances. Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord and at Tenant’s sole cost) and hold harmless Landlord and its partners, managers, members, officers, directors, employees, agents, successors, grantees, assigns and mortgagees from any and all claims, demands, liabilities, damages, expenses, fees, costs, fines, penalties, suits, proceedings, actions, causes of action and losses of any and every kind and nature, including, without limitation, diminution in value of the Property, damages for the loss or restriction on use of the rentable or usable space or of any amenity, natural resource damages, damages arising from any adverse impact on leasing space on the Premises or Property, and reasonable sums paid in settlement of claims and for attorney’s fees, consultant’s fees and expert’s fees that may arise during or after the Term or any extension of the Term in connection with any breach by Tenant of the covenants contained in this section, the presence, Release or threatened Release of Hazardous Substances caused by Tenant, its employees or contractors at, in, under, from, to or on the Premises or Property, or any violation or alleged violation caused by Tenant, its employees or contractors of any Environmental Laws. For purposes of this section, the term “costs” includes, without limitation, costs, expenses and consultant’s fees, expert’s fees and reasonable attorney’s  fees incurred in connection with any investigation of site conditions or any cleanup, remedial, removal, restoration, monitoring or maintenance work. This covenant of indemnity shall survive the termination of this Lease.

(C)    Tenant shall immediately notify Landlord of any Release or threatened Release at, in, under, from, to or on the Premises or Property caused by Tenant or of which Tenant has knowledge.   Tenant shall immediately  notify Landlord and provide copies  upon receipt of   all written complaints, claims, citations, demands, inquiries, reports, notices or requests for information relating to the condition of the Premises or compliance with Environmental Laws. Tenant shall immediately supply Landlord with copies of all notices, reports, correspondence, and submissions exchanged between Tenant and the United States Environmental Protection Agency, the United States Occupational Safety and Health Administration, and any other local, state, or federal authority which requires submission of any information pursuant to Environmental Laws. Tenant shall immediately notify Landlord of any actions brought against Tenant of which Tenant has knowledge and which pertains to Environmental Laws and Tenant’s activity at the Premises or Property and provide Landlord, from time to time upon Landlord’s request, with periodic updates as to the status of the same. Tenant shall keep the Premises free of any lien imposed pursuant to any Environmental Law and shall immediately notify Landlord of any such lien.

(D)    Landlord and Landlord’s agents, servants, and employees including, without limitation, legal counsel and environmental consultants and engineers retained by Landlord, may (but without the obligation or duty so to do), upon reasonable notice (except in case of emergency when no notice shall be required) and from time to time, inspect the Premises and any documentation which Tenant is required by law to maintain with respect to any Hazardous Substance (including, without limitation, “ Material Safety Data Sheets”) to determine whether Tenant is complying with Tenant’s obligations set forth in this section, and to perform environmental inspections and samplings. If Tenant is not in compliance with Tenant’s obligations set forth in this section or is otherwise in violation of any Environmental Laws then such shall constitute an Event of Default under the Lease and Landlord may (but without the obligation or duty to do so), in addition to Landlord’ s other remedies available under this Lease, at law or in equity, enter upon the Premises immediately and take such action as Landlord in its sole judgment deems appropriate and Landlord shall not be liable for any interference caused by Landlord’s entry and remediation efforts. The costs of any remediation performed by Landlord pursuant to this section (including, without limitation, transportation and storage costs) shall be paid by Tenant as Additional Rent on demand.

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28.    FINANCIAL STATEMENTS. From time to time, but not more often than once each year, Tenant shall furnish Landlord within ten (10) business days of such request copies of financial statements showing Tenant's current financial condition and the results of the previous year's operations which shall be certified as true and correct by the chief financial officer, or other responsible officer, of Tenant. This Section 28 shall not apply to the Tenant originally named in this Lease so long as it remains a publicly traded company with current financial statements readily accessible by Landlord online.

29.    BROKERS. Landlord utilized the services of Colliers International (the “Listing Broker”) and Tenant utilized the services of Jones Lang LaSalle (the “Non-Listing Broker”) in connection with this Lease. Landlord and Tenant each represent to the other that they did not involve any other brokers in procuring this Lease. Landlord shall pay a commission to the Non-Listing Broker and the Listing Broker as is agreed to by the parties per a separate agreement. Tenant agrees to forever indemnify, defend and hold Landlord harmless from and against any commissions, liability, loss, cost, damage or expense (including reasonable attorneys' fees) that may be asserted against or incurred by Landlord by any broker other than the Listing Broker and Non-Listing Broker as a result of any misrepresentation by Tenant hereunder. Landlord agrees to forever indemnify, defend and hold Tenant harmless from and against any commissions, liability,   loss, cost, damage or expense (including reasonable attorneys' fees) that may be asserted against or incurred by Tenant by any broker as a result of any misrepresentation by Landlord hereunder.

30.    MISCELLANEOUS.

(A)    Time is of the essence of this Lease and each of its provisions.

(B)    This Lease and all covenants and agreements herein contained shall be binding upon, apply, and inure to the respective heirs, executors , successors, administrators and assigns of all parties to this Lease; provided, however, that this Lease shall not inure to the benefit of any assignee, heir, administrator, devisee, legal representative, successor, transferee or successor of Tenant except upon the prior written consent of Landlord.

(C)    This Lease contains the entire agreement of the parties, all other and prior representations, negotiations and agreements having been merged herein and extinguished hereby. No modification, waiver or amendment of this Lease or of any of its conditions or provisions shall be binding upon either party hereto unless in writing signed by both parties.

(D)    The captions of sections and subsections of this Lease are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such sections or subsections.

(E)    Interpretation of this Lease shall be governed by the laws of the state or commonwealth in which the Premises is located, without regard to conflict of laws. Tenant irrevocably submits to the nonexclusive jurisdiction of the courts of said state or commonwealth and agrees that all suits, actions, claims or proceedings may be heard and determined in such courts. Tenant waives any objection which it may have at any time to the laying of venue of any suit, action, claim or proceeding arising out of or relating to this Lease. The foregoing shall not be deemed to preclude Landlord from bringing any suit, action, claim or proceeding in connection with this Lease in any other jurisdiction.

(F)    This Lease is and shall be deemed and construed to be the joint and collective work product of Landlord and Tenant and, as such, this Lease shall not be construed against either party, as the otherwise purported drafter of same, by any court of competent jurisdiction in order to resolve any inconsistency, ambiguity , vagueness or conflict, if any, in the terms or provisions contained herein.

(G)    In the event that either party thereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lock-outs , labor troubles, inability to procure labor, inability to procure materials or equipment or reasonable substitutes therefore, failure of power, fire or other casualty, restrictive government laws or regulations, judicial orders, enemy or hostile government actions, riots, insurrection or other civil commotions, war or other reason of a like nature not at the fault of the party delayed in performing any act as required under the terms of this Lease (“Force Majeure”), then performance of such act shall be excused for the period of delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay. Force Majeure shall not operate to excuse Tenant from the prompt payment of Rent or any other payments required under the terms of this Lease.

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(H)    Tenant shall reimburse Landlord as Additional Rent within thirty (30) days after being invoiced therefor, together with copies of reasonable supporting documentation for all reasonable out-of-pocket expenses, including without limitation reasonable legal, engineering or other professional services or expenses incurred by Landlord in connection with any requests by Tenant for consents or approvals hereunder.

(I)    A final determination by a court of competent jurisdiction that any provision of this Lease is invalid shall not affect the validity of any other provision, and any provision so determined to be invalid shall, to the extent possible, be construed to accomplish its intended effect.

(J)    If more than one person or entity shall ever be Tenant, the liability of each such person and entity shall be joint and several.

(K)    If Tenant is a corporation, a limited liability company, an association or a partnership, it shall, concurrently with the signing of this Lease, at Landlord's option, furnish to Landlord certified copies of the resolutions of its board of directors (or of the executive committee of its board of directors) or consent of its members or partners authorizing Tenant to enter into this Lease. Moreover, each individual executing this Lease on behalf of Tenant represents and warrants that he or she is duly authorized to execute and deliver this Lease and that Tenant is a duly organized corporation, limited liability company, association or partnership under the laws of the state of its incorporation or formation, is qualified to do business in the jurisdiction in which the Building is located, is in good standing under the laws of the state of its incorporation or formation and the laws of the jurisdiction in which the Building is located, has the power and authority to enter into this Lease, and that all corporate or partnership action requisite to authorize Tenant to enter into this Lease has been duly taken.

(L)    The submission of this Lease to Tenant is not an offer to lease the Premises, or an agreement by Landlord to reserve the Premises for Tenant. Landlord shall not be bound to Tenant until Tenant has duly executed and delivered an original Lease to Landlord and Landlord has duly executed and delivered an original Lease to Tenant.Notwithstanding the Commencement Date or 24 Cherry Hill Commencement Date contemplated in Section 1 hereof, this Lease shall take effect and be binding upon the parties hereto as of its execution and delivery.

(M)    This Lease may be executed in any number of counterparts, and by different parties hereto on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any signature to this Lease transmitted via facsimile (or other electronic means) shall be deemed an original signature and be binding upon the parties hereto.

(N)    Tenant represents and warrants to Landlord that neither Tenant nor any of Tenant's members, shareholders or other equity owners, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including those named on OFAC's Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action. Landlord represents and warrants to Tenant that neither Landlord nor any of Landlord' s members, shareholders or other equity owners, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of OFAC (including those named on OFAC' s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001 , Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action.

31.    PARKING. Tenant shall be entitled to the non-exclusive use, on a first come-first serve basis, of no more than 2.6 parking spaces per 1,000 rentable square feet of the Premises in parking areas designated by Landlord. Landlord shall not be obligated to enforce parking limits. Tenant shall not use any parking space designated by Landlord as visitor parking or as exclusive to other parties. If Tenant uses parking in excess of that provided for herein, and if such excess use occurs on a regular basis, and if Tenant fails, after more than one (1) written notice from Landlord of any one violation, to reduce its excess use of the parking areas, then such excess use shall constitute an Event of Default under this Lease without further notice or opportunity to cure such Event of Default. Subject to the approval of the Town of Danvers, if such approval is required, prior to the Commencement Date Landlord shall re-stripe the loading area adjacent to the Building to provide additional parking spaces to be used on a non-exclusive, first come-first serve basis as shown on the plan attached hereto as Exhibit A-1.

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32.    SIGNAGE. Landlord, at Landlord' s expense, shall provide Tenant building standard monument signage. In addition, Tenant, at Tenant's expense, shall be entitled to install one (1) identification sign in front and back of the Premises, the design, dimension and location of which shall be subject to Landlord's prior approval, not to be unreasonably withheld, conditioned or delayed. Such signage shall be subject to all Applicable Law and Tenant shall be solely responsible for obtaining all necessary permits for such signage. Tenant shall maintain such signage in good condition and repair during the Term. Upon termination of this Lease, Tenant shall remove such signage and repair any damage caused thereby.

33.    DELETED.

34.    CERTAIN RIGHTS RESERVED TO LANDLORD. Landlord reserves the following rights, each of which Landlord may exercise without notice or liability to Tenant, and the exercise of any such rights in accordance with the provisions hereof shall not be deemed to constitute an eviction or disturbance of Tenant's use or possession of the Premises and shall not give rise to any claim for set-off or abatement of Rent or any other claim: (a) to enter the Premises with reasonable advance prior notice, except in the case of emergency when no notice shall be required, for the purposes of examining the same or to make repairs or alterations or to provide any service; (b) to change the arrangement and/or locations of entrances, or passageways, doors and doorways, and corridors, windows, elevators, stairs, parking areas and any other common areas, (c) to change the name or street address of the Building or the suite number of the Premises (provided that in such event due solely to Landlord's election and such change is not made by any other governmental or applicable authority, Landlord shall reimburse Tenant for all costs of changes in signage, company letterhead, and reasonable related costs) ; (d) to install, affix and maintain any and all signs on the exterior or interior of the Building; (e) to make repairs, decorations, alterations, additions or improvements, whether structural or otherwise, in, about and to the Building or common areas and for such purposes temporarily close doors, corridors and other areas of the Building and interrupt or temporarily suspend services or use of common areas; (f) to retain at all times, and to use in appropriate instances, keys to all doors within and into the Premises (except that Tenant may designate proprietary areas within the Premises to which Landlord will not be permitted entrance unless accompanied by a representative of Tenant, unless in the case of emergency when no such accompaniment shall be required); (g) to grant to any person or to reserve unto itself the exclusive right to conduct any business or render any service in the Building; (h) to show the Premises at reasonable times during the last six (6) months of the term of this Lease, and, if vacated or abandoned, to prepare the Premises for reoccupancy; (i) to install, use and maintain in and through the Premises pipes, conduits, wires and ducts serving the Building; (j) to reasonably approve the weight, size and location of safes or other heavy equipment or other articles which may be located in the Premises and to determine the time and manner in which such articles may be moved in, about or out of the Building or Premises; and (k) to take any other reasonable action which Landlord deems necessary in connection with the operation, maintenance, marketing or preservation of the Premises or Building. The temporary reduction or elimination of Tenant' s light, air or view for a period of ten business days or less shall not affect Tenant ' s liability under this Lease, nor shall it create any liability of Landlord to Tenant. In all actions taken by Landlord under this Section 34, Landlord shall use commercially reasonable efforts not to materially and adversely affect Tenant's use and occupancy of, and access to, the Premises.

35.    LEASE COMMENCEMENT/ACCEPTANCE OF PREMISES. At  Landlord's request, Landlord and Tenant shall enter into a commencement letter agreement (the  “Commencement Letter”) in form substantially similar to  that  attached  hereto  as  Exhibit  E. Tenant's failure to execute  and  return  the Commencement  Letter,  or to provide  written  objection to the statements contained in the Commencement Letter, within fifteen (15) days shall  be deemed  an approval  by Tenant  of the statements contained  therein.

36.    WAIVER OF RIGHT TO JURY TRIAL. LANDLORD AND TENANT WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER PARTY AGAINST THE OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, AND/OR TENANT'S USE OR OCCUPANCY OF THE PREMISES OR BUILDING (INCLUDING ANY CLAIM OF INJURY OR DAMAGE OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY CURRENT OR FUTURE LAWS, STATUTES, REGULATIONS, CODES OR ORDINANCES).

22

 

37.    RECORDING. Tenant shall not record this Lease without the prior written consent of Landlord. Upon Tenant' s request, Landlord and Tenant shall execute and acknowledge a short form memorandum of this Lease for recording purposes provided Tenant also provides a recordable discharge or termination of such memorandum of lease to be filed upon the termination or expiration of this Lease.

[Signatures on following page]

23

 

IN WITNESS WHEREOF, the parties hereto have executed this Lease.

 

	
LANDLORD:
	
 
	
TENANT:

	
 
	
 
	
 
	
 
	
 

	
BROOKWOOD CHERRY HILL I, LLC,
	
 
	
ABIOMED, Inc.

	
a Delaware limited liability company
	
 
	
a Delaware corporation

	
 
	
 
	
 
	
 
	
 

	
By:
	
Brookwood Real Estate Partners, LLC,
	
 
	
By:
	
/s/ Michael Tomsicek 

	
 
	
its sole member
	
 
	
Name:
	
MICHAEL TOMSICEK

	
 
	
 
	
Its:
	
VP – CFO ABIOMED

	
By:
	
Brookwood Real Estate Co., LLC,
	
 
	
 
	
 

	
 
	
its managing member
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Kurt M. Zernich
	
 
	
 
	
 

	
 
	
Kurt M. Zernich
	
 
	
 
	
 

	
 
	
Authorized Signor
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
LANDLORD:
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
BROOKWOOD CHERRY HILL II, LLC,
	
 
	
 
	
 

	
a Delaware limited liability company
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
Brookwood Real Estate Partners II , LLC, 
	
 
	
 
	
 

	
 
	
its sole member
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
Brookwood Real Estate Co. II , LLC,
	
 
	
 
	
 

	
 
	
its managing member
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
By:
	
/s/ Kurt M. Zernich
	
 
	
 
	
 

	
 
	
Kurt M. Zernich
	
 
	
 
	
 

	
 
	
Authorized Signor
	
 
	
 
	
 

 

 

 

24

 

EXHIBIT A

THE PREMISES

28 Cherry Hill Premises

 

 

 

 

Exhibit A

 

24 Cherry Hill Premises

 

 

 

 

Exhibit A

 

EXHIBIT A-1

 

 

 

 

Exhibit A - 1

 

EXHIBIT B 

ADDITIONAL STIPULATIONS

This extension option is a part of the Lease dated February 2, 2017 by and between BROOKWOOD CHERRY HILL I, LLC and BROOKWOOD CHERRY HILL II, LLC (as tenants in common, “Landlord”) and ABIOMED, Inc. (“Tenant”) for the Premises located at 24-42 Cherry Hill Drive, Danvers, Massachusetts.

EXTENSION OPTION. So long as there exists no default beyond any applicable notice and cure periods, either at the time of exercise or on the first day of the Extension Term (as hereinafter defined) and Tenant has not assigned this Lease nor sublet the Premises in whole or in part, Tenant shall have the option to extend the Term for one (1) additional five (5) year period (the “Extension Term”) upon written notice to Landlord given not less than twelve (12) months and not more than fifteen (15) months prior to the expiration of the Term. If Tenant fails to exercise its option to extend the Term strictly within the time period set forth in this section, then Tenant's option to extend the Term shall automatically lapse and be of no further force or effect. In the event that Tenant exercises the option granted hereunder, the Extension Term shall be upon the same terms and conditions as are in effect under this Lease immediately preceding the commencement of such Extension Term except that the Base Rent due from the Tenant shall be increased to Landlord's determination of Base Rent as provided herein, and Tenant shall have no further right or option to extend the Term or to any abatements, improvement allowance or other inducements. If Tenant timely exercises its option to extend the Term, then no later than thirty (30) days following receipt of Tenant's notice, Landlord shall notify Tenant in writing of Landlord's determination of the Base Rent for the Extension Term (“Landlord's Rental Notice”). If Tenant does not object to Landlord's determination of the Base Rent by written notice to Landlord within twenty (20) days after the date of Landlord's Rental Notice, then Tenant shall be deemed to have accepted the Base Rent set forth in Landlord's Rental Notice.

If Tenant timely objects to Landlord's Rental Notice, and the parties cannot agree on Base Rent for the Extension Term within thirty (30) days after Landlord receives Tenant's notice of objection, then the Term shall automatically be extended and Base Rent for the Extension Term shall be submitted to arbitration as follows: Base Rent shall be determined by impartial arbitrators (who shall be qualified real estate appraisers or brokers with at least ten (10) years of experience dealing with like types of properties in the market area), one to be chosen by the Landlord, one to be chosen by Tenant, and a third to be selected, if necessary, as below provided, and shall reflect the greater of (i) the rate that would be agreed upon between a landlord and a tenant on or about the date on which the Extension Term is to begin for a comparable term and for space comparable to the Premises in the Building and buildings comparable to the Building in the market area, taking into account any material economic differences between the terms of this Lease and any comparison lease, such as the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes and (ii) the Base Rent payable during the last month of the current Term. The unanimous written decision of the two first chosen (without selection and participation of a third arbitrator), or otherwise the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall each notify the other of its chosen arbitrator within ten (10) days  following  the call for arbitration  and,  unless  such  two arbitrators  shall  have  reached a unanimous decision within thirty (30) days after their designation, they shall select an impartial third arbitrator to determine the market value as herein defined. Such third arbitrator and the first two chosen shall render their decision within thirty (30) days following the date of appointment of the third arbitrator and shall notify Landlord and Tenant thereof, which decision shall be final and binding on the parties. Landlord and Tenant shall each pay the expenses of its own arbitrator and shall share the payment of expenses of the third arbitrator equally, regardless of the outcome of arbitration. If the dispute between the parties as to the Base Rent for the Extension Term has not been resolved before the commencement of the Extension Term, Tenant shall pay Base Rent for the Extension Term based upon the Base Rent designated by Landlord in the Landlord's Rental Notice until either (i) agreement of the parties as to the fair market rent, or (ii) decision of the arbitrators, as the case may be, at which time Tenant shall promptly pay any underpayment of Base Rent to Landlord, or Landlord shall credit the overpayment of Base Rent against the next installment of rental or other charges due to Landlord.

 

 

 

Exhibit B

 

EXHIBIT C

RULES AND REGULATIONS

1.    The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish, rags or other substances (including, without limitation, coffee grounds) shall be thrown therein. All damages resulting from misuse of the fixtures shall be borne by Tenant if Tenant or its servants, employees, agents, visitors or licensees shall have caused the same.

2.    No cooking (except for hot-plate and microwave cooking by Tenants' employees for their own consumption, the location and equipment of which is first approved by Landlord), sleeping or lodging shall be permitted by any tenant on the Premises. No tenant shall cause or permit any unusual or objectionable odors to be produced upon or permeate from the Premises.

3.    Except as otherwise provided in the Lease, no inflammable, combustible, or explosive fluid, material, chemical or substance shall be brought or kept upon, in or about the Premises. Fire protection devices, in and about the Building, shall not be obstructed or encumbered in any way.

4.    Canvassing, soliciting and peddling at the Property is prohibited and each tenant shall cooperate to prevent the same.

5.    There shall not be used in any space, or in the public halls of the Building, either by any tenant or by its agents, contractors, jobbers or others, in the delivery or receipt of merchandise, freight, or other matters, any hand trucks or other means of conveyance except those equipped with rubber tires, rubber side guards, and such other safeguards as Landlord may require, and Tenant shall be responsible to Landlord for any loss or damage resulting from any deliveries to Tenant in the Building. Deliveries of mail, freight or bulky packages shall be made through the freight entrance or through doors specified by Landlord for such purpose.

6.    Mats, trash or other objects shall not be placed in the public corridors. The sidewalks, entries, passages, elevators, public corridors and staircases and other parts of the Building which are not occupied by Tenant shall not be obstructed or used for any other purpose than ingress or egress.

7.    Tenant shall not install or permit the installation of any awnings, shades, draperies and/or other similar window coverings, treatments or like items visible from the exterior of the Premises other than those approved by the Landlord in writing.

8.    No vehicles or materials shall be permitted to block any sidewalks, driveways, loading docks or any other common area nor shall any vehicle be parked in the parking lot for longer than is necessary for the customary business purposes of Tenant. Landlord shall have the right, but not the obligation, to remove any vehicles and dispose of any materials, debris, or other items in violation of this section and such removal or disposal shall be at the sole risk of Tenant and Tenant shall pay the cost therefor to Landlord as Additional Rent upon demand.

9.    Tenant shall not allow any signs, cards or placards to be posted, or placed within the Premises such that they are visible outside of the Premises except as specifically provided for in this Lease.

10.    Tenant shall not construct, maintain, use or operate within said Premises or elsewhere in the Building or on the outside of the Building, any equipment or machinery which produces music, sound or noise which is audible beyond the Premises.

11.    Bicycles, motor scooters or any other type of vehicle shall not be brought into the lobby or elevators of the Building or into the Premises except for those vehicles which are used by a physically disabled person in the Premises.

Exhibit C

 

12.    All blinds for exterior windows shall be building standard and shall be maintained by Tenant.

13.    No additional locks shall be placed upon doors to or within the Premises except as shall be necessary adequately to safeguard United States Government security classified documents stored with the Premises. The doors leading to the corridors or main hall shall be kept closed during business hours, except as the same may be used for ingress or egress. If Landlord provides a proximity card or key for the entry doors, Landlord may make a reasonable charge for such proximity cards or keys, and replacements. Tenant, upon termination of it tenancy, shall deliver to the Landlord all keys of offices, rooms and toilet rooms which have been furnished Tenant or which the Tenant shall have had made, and in the event of loss of any keys so furnished shall pay Landlord  therefore.

14.    Provided reasonable advance written notice is given to Tenant (except in an emergency, when notice may be given after the fact), Landlord reserves the right to temporarily shut down the air conditioning, electrical systems, heating, plumbing and/or elevators when necessary by reason of accident or emergency, or for repair, alterations, replacements or improvement, subject to the provisions of the Lease.

15.    No carpet, rug or other article shall be hung or shaken out of any window of the Building and Tenant shall not sweep or throw or permit to be swept or thrown from the Premises any dirt or other substances into any of the corridors or halls, elevator, or out of the doors or windows or stairways of the Building. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors and/or vibrations, or interfere in any way with other tenants or those having business therein, nor shall any animals or birds be kept in or about the Building. Smoking or carrying lighted cigars or cigarettes in the elevators of the Building is prohibited.

16.    Landlord reserves the right to restrict access to the Building on weekdays outside of normal hours for the Building and at all hours on weekends and legal holidays; provided, however, that reasonable access for Tenant's employees and customers shall be accorded. Tenant shall be responsible for all persons for whom it requests access and shall be liable to Landlord for all acts of such persons.

17.    Tenant agrees to keep all windows closed at all times and to abide by all rules and regulations issued by Landlord with respect to the Building's air conditioning and ventilation systems.

18.    Tenant shall not conduct or give notice of any auction, liquidation, or going out of business sale in the Premises.

19.    In the event it becomes necessary for the Landlord to gain access to the underfloor electric and telephone distribution system for purposes of adding or removing wiring, then upon request by Landlord, Tenant agrees to temporarily remove the carpet over the access covers to the underfloor ducts for such period of time until work to be performed has been completed. The cost of such work shall be borne by Landlord except to the extent such work was requested by or is intended to benefit Tenant or the Premises, in which case the cost shall be borne by Tenant.

 

 

 

Exhibit C

 

EXHIBIT D 

WORK LETTER

1.    Preparation of Plans. Tenant shall perform all work (“Tenant's Work”) necessary to prepare the Premises for Tenant's occupancy in accordance with plans and specifications prepared by a licensed architect and reasonably approved by Landlord. Tenant shall submit to Landlord a detailed floor plan layout together with working drawings (collectively, the “Plans”) for all Tenant's Work and all Tenant's Work and the Plans therefor shall be subject to Landlord's prior written approval, not to be unreasonably withheld, conditioned or delayed. All of Tenant's Work shall be deemed Alterations under the Lease.

Landlord will not unreasonably withhold, condition or delay its consent to a supported structure over the wetland portion of Property between the 28 Cherry Hill Premises and the 24 Cherry Hill Premises.

2.    Tenant's  Performance of Tenant's  Work.   Once the Plans have been approved by Landlord, Tenant shall promptly, and with all due diligence, perform Tenant's Work as set forth on the Plans, and, in connection therewith, the Tenant shall obtain all necessary governmental permits and approvals for Tenant's Work. Tenant shall have Tenant's Work performed by contractors approved by Landlord, which contractors shall maintain such insurance as the Landlord may reasonably require. Landlord approves Cianbro and Stantec as contractors for the Tenant's Work. Landlord shall have the right to prescribe such reasonable rules and regulations relative to the performance of Tenant's Work and any other work which the Tenant may perform under this Lease and Tenant shall abide  by  all  such  rules  and  regulations  and shall use commercially reasonable efforts to cause all of its contractors to so abide. All of Tenant's Work shall be done strictly in accordance  with the Plans and in a good and  workmanlike manner and in compliance with all Applicable Law, court decisions, and orders and requirements of all public authorities and all insurance requirements set forth in the Lease. Except as may be otherwise shown on the Plans, Tenant  shall  perform Landlord's Work  using building standard materials, quantities and procedures then in use by Landlord. It shall be Tenant's obligation to obtain a certificate of occupancy or other like governmental approval for the use and occupancy of the Premises to the extent required by Applicable Law and upon substantial completion of Tenant's Work and Tenant shall submit to Landlord a copy of the same together with waivers of lien from all of Tenant's contractors in form adequate for recording purposes. Tenant shall also prepare and submit to Landlord promptly after Tenant's Work is substantially complete a set of as-built plans in both print and electronic  forms   showing the work performed  by Tenant to the Premises  including, without limitation, any wiring or cabling installed by Tenant or Tenant's contractor for Tenant's computer, telephone  and other communication  systems.

3.    Tenant Allowance. Subject to the terms and conditions hereof, Landlord agrees to provide to Tenant an allowance equal to $432,060.00 (the “Tenant Allowance”). The Tenant Allowance shall be used and applied by Tenant solely on account of the cost of Tenant's Work. Provided that the Tenant (i) has opened for business in the Premises, (ii) has completed all of such Tenant's Work in accordance with the terms of this Work Letter, has paid for all of such Tenant's Work in full and has delivered to Landlord lien waivers from all persons who might have a lien as a result of such work in recordable form, (iii) has delivered to Landlord its certificate specifying the total cost of such Tenant's Work and all contractors, subcontractors and suppliers involved with Tenant's Work, together with evidence of such cost in the form of paid invoices, receipts and the like, (iv) has made written request for such payment on or before February 2, 2019, (v) is not otherwise in default under this Lease beyond the expiration of all applicable notice and cure periods, and (vi) there are no liens against Tenant's interest in the Lease or against the Building or arising out of Tenant's Work or any litigation in which Tenant is a party relating to the Premises, then within thirty (30) days after the satisfaction of the foregoing conditions, the Landlord shall pay to the Tenant the lesser of the amount of such costs so certified or the amount of the Tenant Allowance. Notwithstanding the foregoing, Tenant may elect to request installments of the Tenant Allowance be paid upon completion of phases of the Tenant's Work. Each installment paid by Landlord will be in the amount of Landlord's pro-rata share based on the ratio of the Tenant Allowance to the total cost of Tenant's Work (as evidenced by reasonably detailed documentation delivered to Landlord with the requisition first submitted by Tenant), less a retainage equal to the greater of the retainage set forth in the construction contract or ten percent (10%) of amount due under the construction contract, but in no event shall Landlord be required to pay more than the Tenant Allowance. Any final retainage amounts shall be paid by Landlord following substantial completion of Tenant's Work and satisfaction of the foregoing requirements with respect to a final installment.

Exhibit D

 

For the purposes hereof, the cost to be so reimbursed by Landlord shall include the hard costs of Tenant's Work and up to $64,809.00 of the Tenant Allowance may be used for Tenant's actual out-of-pocket engineering, architectural and permitting costs, cabling and wiring, but not the cost of any of Tenant's personal property, trade fixtures, or trade equipment. Landlord shall be under no obligation to apply any portion of the Tenant Allowance for any purposes other than as provided herein, nor shall Landlord be deemed to have assumed any obligations, in whole or in part, of Tenant to any contractors, subcontractors, suppliers, workers or materialmen. Further, in no event shall Landlord be required to pay any portion of the Tenant Allowance on account of any supervisory fees, overhead, management fees or other payments to Tenant, or any partner or affiliate of Tenant. Any portion of the Allowance which not requested or applied in compliance with the terms and conditions hereof on or before the second (2nd) anniversary of the 24 Cherry Hill Drive Commencement Date shall be retained by Landlord and forfeited by Tenant. Landlord shall be entitled to deduct from the Tenant Allowance an amount equal to the sum of: (i) one percent (1%) of the total cost of Tenant's Work for Landlord's out-of-pocket costs for supervision of Tenant's Work by Landlord's property management company, plus (ii) actual and reasonable third party expenses incurred by Landlord to review Tenant's Plans and Tenant's Work.

4.    Hold Harmless. Tenant shall indemnify and hold Landlord harmless from and against any and all liability and claims of any kind for loss or damage to any person or property arising out of or occurring during construction of Tenant's Work. In addition, Landlord shall not be liable for injury or damage which may be sustained by the person or property of Tenant, its employees, agents, invitees or contractors, or any other person in or about the Premises, arising out of or during performance of Tenant's Work.

 

 

 

Exhibit D

 

EXHIBIT E

COMMENCEMENT LETTER

 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

RE: Lease dated                , between Brookwood Cherry Hill I, LLC  and Brookwood Cherry Hill II, LLC (as tenants in common, “Landlord”) and ABIOMED, Inc. (“Tenant”) concerning the premises located at 24-42 Cherry Hill Drive, Danvers, Massachusetts.

In accordance with the above-referenced Lease, we request that you and/or the proper authority, please confirm the following statements:

1.     The Commencement  Date is deemed  to be                              and the Expiration Date is                           , subject to extension as provided in this Lease.

2.    Tenant acknowledges and agrees that as of the date of this letter (i) all improvements required by the Lease to be performed by Landlord to the Premises have been completed; and (ii) Tenant has accepted the Premises in its current condition.

Please confirm your agreement with the above terms of this letter by signing below and returning a copy to Landlord. Failure to execute this letter and deliver the same to Landlord shall be conclusive evidence against Tenant that the above statements are accurate and true.

 

	
 
	
Sincerely,

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Its:
	
 

 

	
AGREED TO & ACCEPTED BY:
	
 

	
 
	
 
	
 

	
ABIOMED, INC.
	
 

	
a Delaware corporation
	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Its:
	
 
	
 

 

 

Exhibit E

 

EXHIBIT F

INITIAL HVAC WORK

28 Cherry Hill Drive HVAC Units

Landlord will address the following deficiencies: 

	
 
	
1.
	
Serial: 3206G50272

	
 
	
a.
	
Heat exchanger, safety switches, ignition module, draft motor and cap. 

	
 
	
2.
	
Serial: 1606G20265

	
 
	
a.
	
Heat exchanger, safety switches, ignition module, draft motor and cap, economizer motor and control, heavy vibration on economizer fan, loose mount on spider bracket.

	
 
	
3.
	
Serial: 1094G1622

	
 
	
a.
	
Condenser fan motor and capacitor 

	
 
	
4.
	
Serial: 1506G30127

	
 
	
a.
	
Condenser fan motor, cap, blade and gas valve, economizer motor and controls. 

	
 
	
5.
	
Serial: 2806G0334

	
 
	
a.
	
Draft motor assembly and cap, economizer motor and controls.

 

 

 

Exhibit F

 

EXHIBIT G

TRANSFORMER WORK

 

 

 

 

Exhibit G

 

EXHIBIT G1

TRANSFORMER REMOVAL WORK

(Landlord's Cost)

 

 

 

Exhibit G1

 

EXHIBIT G2

TRANSFORMER RELOCATION WORK

(Tenant’s Cost)

 

 

		
	
64623234v.6
	
Exhibit G2abmd-ex102_180.htm

 

Exhibit 10.2

FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE (this "First Amendment"), dated as of December 14, 2017 (the "Effective Date"), is made and entered into by and between CHERRY HILL DRIVE OWNER, LLC, a Delaware limited liability company ("Landlord") and ABIOMED, INC., a Delaware corporation ("Tenant").

R E C I T A L S

ALandlord and Tenant are parties to that certain Lease dated as of February 2, 2017 "Lease") for that portion of the office building located at 24-42 Cherry Hill Drive, Danvers, Massachusetts (the "Building") consisting of 21,603 rentable square feet as more particularly described in the Lease (the "Existing Premises").

BThe Term of the Lease is scheduled to expire on August 31, 2022 (the "Expiration Date") and Landlord and Tenant wish to extend the Lease Term for an additional period of thirty-six (36) full calendar months beyond the Expiration Date to expire on August 31, 2025 (the "New Expiration Date").

CTenant wishes to expand the Existing Premises to include the addition of the space consisting of approximately 6,607 rentable square feet in the Building commonly known as Suite 26 and identified on the plan attached hereto as Exhibit A (the "Expansion Premises").

DLandlord and Tenant wish to make certain amendments and modifications to the terms and provisions of the Lease consistent with the foregoing as hereinafter set forth. The Lease, as modified by this First Amendment, is hereinafter referred to as the "Lease." Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Lease.

AGREEMENT:

NOW, THEREFORE, in consideration of the premises, the sum of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and confessed, Landlord and Tenant hereby agree as follows:

	
 
	
1.
	
Term of the Lease; Extension Option.

(a)The Term of the Lease is hereby extended for an additional period of thirty-six (36) full calendar months beyond the Expiration Date to expire on the New Expiration Date (the "Extended Term"). Therefore, notwithstanding anything to the contrary contained in the Lease, the Term of Lease shall include the Extended Term and shall expire and terminate on the New Expiration Date (August 31, 2025) and all references in the Lease to the "Expiration Date" or the "expiration of the Term" or similar language shall be deemed to refer to the New Expiration Date, subject to the Extension Options set forth in Exhibit B of the Lease.

(b)The Extension Option set forth in Exhibit B of the Lease shall remain in full force and effect throughout the Extended Term and apply to the entire Premises (as  expanded by this First Amendment), including any Offer Right Space (as defined in Exhibit B of this First Amendment) that may be added to the Premises, provided however, that:

	
 
	
a.
	
The second paragraph of Exhibit B of the Lease shall be modified in its entirety to read as follows: “EXTENSION OPTIONS So long as there exists no default beyond any applicable notice and cure periods, either at the time of exercise or on the first day of the Extension Term (as hereinafter defined) and Tenant has not assigned this Lease nor sublet the Premises in whole or in part, Tenant shall have the option to extend the Term for up to two (2) consecutive periods of five (5) years each (each, an “Extension Term”) upon written notice to Landlord given not less than twelve (12) 

		
	
{W6393204.9}
	
1

 

 

	
 
		
months and not more than fifteen ( 15) months prior to the expiration of the Term or first Extension Term, as applicable.  If Tenant fails to exercise its first option to extend the Term strictly within the time period set forth in this section, then Tenant's first and second option to extend the Term shall both automatically lapse and be of no further force or effect. If Tenant exercises its first option to extend the Term but fails to exercise its second option to extend the Term strictly within the time period set forth in this section, then Tenant's  second option to extend the Term shall automatically lapse and be of no further force or effect. In the event that Tenant exercises the option(s) granted hereunder, the applicable Extension Term shall be upon the same terms and conditions as are in effect under this Lease immediately preceding the commencement of such Extension Term except that the Base Rent due from the Tenant shall be increased to Landlord's determination of Base Rent as provided herein, and, other than the second extension option provided herein, Tenant shall have no further right or option to extend the Term or to any abatements, improvement allowance or other  inducements. If Tenant timely exercises its option(s) to extend the Term, then no later than thirty (30) days following receipt of Tenant's notice, Landlord shall notify Tenant in writing of Landlord's determination of the Base Rent for such Extension Term ("Landlord's Rental Notice"). If Tenant does not object to Landlord's determination of the Base Rent by written notice to Landlord within twenty (20) days after the date of Landlord's Rental Notice, then Tenant shall be deemed to have accepted the Base Rent set forth in Landlord's Rental Notice”

	
 
	
b.
	
All references in the third and fourth paragraphs of Exhibit B of the Lease to “the Extension Term” shall be modified to read “the applicable Extension Term”.

2.Premises; Tenant’s Percentage.  Effective as of the later of (a) June 1, 2018, and (b) the date the Landlord delivers the Expansion Premises to Tenant in broom clean condition, free of all other tenants, occupants and their possessions (the “First Amendment Commencement Date”): (i) the definition of Premises as set forth in the Lease shall be  amended by adding the Expansion Premises thereto,  (ii) the term “Premises” shall be deemed  the Existing Premises and the Expansion Premises, (iii) the Premises shall be deemed to consist of 28,210 rentable square feet, consisting of the Existing Premises (21,603 rentable square feet) and the Expansion Premises (6,607 rentable square feet), and (iv) Tenant’s Percentage shall be deemed to be 28.04%.

3.Base Rent. Effective as of the First Amendment Commencement Date, the Base Rent Tables appearing in Section 1 of the Lease shall be deleted in their entireties and shall have no further force or effect, and Tenant shall pay Base Rent for the entire Premises (the Existing Premises and the Expansion Premises) in accordance with the terms and conditions of the Lease in the following amounts applicable to the following periods:

 

	
Period
	
Base Rent

(per annum)
	
Base Rent

(per month)
	
Base Rent 

(per rentable

square foot, per

annum)

	
First Amendment Commencement Date –

January 31, 2019
	
$362,780.60
	
$30,231.72*
	
$12.86

	
February 1, 2019 – January 31, 2020
	
$377,449.80
	
$31,454.15
	
$13.38

	
February 1, 2020 – January 31, 2021
	
$392,119.00
	
$32,676.58
	
$13.90

	
February 1, 2021 – January 31, 2022
	
$406,788.20
	
$33,899.02
	
$14.42

	
February 1, 2022 – August 31, 2022
	
$421,739.50
	
$35,144.96
	
$14.95

	
September 1, 2022 – August 31, 2023
	
$436,690.80
	
$36,390.90
	
$15.48

	
September 1, 2023 – August 31, 2024
	
$451,924.20
	
$37,660.35
	
$16.02

	
September 1, 2024 – August 31, 2025
	
$467,157.60
	
$38,929.80
	
$16.56

 

 

		
	
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*In the event the First Amendment Commencement Date occurs on a day other than the first day of a calendar month, the monthly Base Rent payment for such month shall be pro-rated based on the number of days occurring in such month from and after the First Amendment Commencement Date in relation to the total number of days in such month.

4.Condition of the Expansion Premises; Improvement Allowance.

(a)Condition of the Expansion Premises. Tenant hereby acknowledges and agrees that it hereby accepts the Expansion Premises in such “AS IS, WHERE IS” condition as exists on the date hereof. Further, Tenant specifically acknowledges and agrees that no provision of the Lease concerning (i) improvements, alterations and/or additions to be performed or provided by Landlord or at Landlord’s expense, (ii) tenant improvement allowances, (iii) reimbursement allowance, or (iv) free rent or other rent concession shall have any application whatsoever to the Expansion Premises or this First Amendment, except as specifically set forth  in this First Amendment. Notwithstanding the foregoing, the Expansion Premises shall be delivered to Tenant with all Building systems serving the Expansion Premises in good working order, provided however, Tenant hereby acknowledges and agrees that the Expansion Premises are not served by any uninterrupted power supply systems or generators and Landlord shall have no obligation with respect to same.

(b)Improvement Allowance. In the event, after the First Amendment Commencement Date, Tenant makes any alterations, additions or improvements to the Existing Premises or the Expansion Premises (which alterations and improvements shall be subject to the terms  and  conditions  of  Section  21  of  the  Lease),  Landlord  shall  reimburse  Tenant  up to $108,015.00 (the “Improvement Allowance”) for the costs incurred by Tenant in connection with such alterations, additions or improvements, including all so-called hard and soft costs, cabling, telecommunications/data wiring, moving costs and the like. Such reimbursement shall occur within thirty (30) days after Landlord has received (i) a written certificate from Tenant specifying the work performed, (ii) written documentation reasonably satisfactory to Landlord that such work was completed and paid for by Tenant (it being agreed that copies of paid  invoices shall be sufficient evidence of such payment), and (iii) duly executed unconditional lien waivers from all general contractors, subcontractors and materialmen performing work on the Existing Premises or the Expansion Premises. Any portion of the Improvement  Allowance which has not been requested or applied in compliance with the terms and conditions of this Section 4(b) by December 1, 2020 shall be retained by Landlord and forfeited by Tenant.

5.Right of First Offer. From and after the Effective Date, Tenant shall have the right to be offered the opportunity to lease additional space in the Building pursuant to the terms and conditions of the Right of First Offer attached hereto as Exhibit B.

6.Right of First Offer to Purchase the Property; Right to Purchase the Property.

(a)Right of First Offer to Purchase the Property.

(1)Tenant shall have a right of first offer to purchase the Property throughout the Term of the Lease, as it may be extended, in strict accordance with this Section 6(a). If, after the Effective Date and provided the Lease is in full force and effect, there exists no Event of Default by Tenant, Landlord determines to offer the Property for sale, in Landlord’s sole and absolute discretion, without any obligation to do so, Landlord shall, in accordance with this Section 6(a), offer to sell the Property to Tenant by sending to Tenant a written notice (the “Proposed Sale Notice”) which shall (i) state Seller’s intent to offer the Property for sale, (ii) state the Sale Price, as hereinafter defined in Section 6(c) in effect at such time, and basis for the determination of such Sale Price and (iii) include a Purchase and Sale Agreement in the form attached hereto as Exhibit C with the Sale Price and other applicable terms inserted (the “Purchase and Sale Agreement”), prior to offering to sell the Property to any other party except as provided in the following sentence. The provisions of this Section 6(a) shall not apply to the following: (a) any sale or transfer of the Property to any entity which controls, is controlled by,  or under common control with Landlord or with R.J. Kelly Co., Inc. or their respective affiliates (“Landlord Affiliates”); (b) the grant of a mortgage of the Property to any mortgagee; or (c) a foreclosure of any mortgage encumbering, or the execution and delivery by Landlord of a deed  in lieu or contemplation of foreclosure in regard to, Landlord’s interest in the Property.

 

		
	
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(2)Tenant shall have ten (10) days after receipt of the Proposed Sale Notice to (i) give Landlord written notice (“Tenant’s Acceptance Notice”) accepting the terms set forth in the Proposed Sale Notice (which terms must conform to the computation of the Sale Price as set forth in Section 6(c)), (ii) deliver the Purchase and Sale Agreement executed by Tenant, and (iii) deliver a deposit in the amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the “Deposit”) to the escrow agent designated in the Purchase and Sale Agreement, which Deposit shall be refundable to Tenant solely upon the terms and conditions set forth in the Purchase and Sale Agreement. If Tenant has not delivered the Tenant’s Acceptance Notice, the executed Purchase and Sale Agreement and the Deposit as provided in the immediately preceding sentence within such ten (10) day period, then such failures shall be treated as if Tenant did not give a timely Tenant’s Acceptance Notice, and Landlord shall be free to sell the Property unencumbered by the provisions of this Section 6 upon terms and conditions acceptable to Landlord in its sole and absolute discretion, and Tenant shall have no further right to purchase the Property under this Lease, except as provided in Section 6(a)(3) below to the extent applicable. For purposes of clarification, in the event Landlord is entitled to offer to sell the Property to any third party, Landlord shall not be limited to any particular sale price and Landlord may accept any price or other terms and conditions in Landlord’s sole and absolute discretion.

(3)Notwithstanding anything to the contrary herein contained, for so long as Cherry Hill Drive Owner, LLC, or any Landlord Affiliates, is the Landlord hereunder, Tenant shall again have the right of first offer to purchase the Property and Landlord shall provide Tenant with an additional Proposed Sale Notice and shall otherwise comply with the procedures set forth in this Section 6(a) if (a) Landlord does not accept an offer to sell the Property on or before the date six (6) months days after Tenant receives the Proposed Sale Notice, or (b) Landlord does not close the sale of the Property within nine (9) months after Tenant receives the Proposed Sale Notice (a “Re-Offer Event”). Upon the occurrence of a Re- Offer Event, Landlord shall re-offer the Property to Tenant in accordance with the procedures set forth in this Section 6(a).

(b)Right to Purchase the Property.

(1)At any time throughout the Term of this Lease, as it may be extended, Tenant shall have the right to purchase the Property for the Sale Price, in strict accordance with this Section 6(b). If, after the Effective Date and provided the Lease is in full force and effect, and there exists no Event of Default by Tenant, Tenant shall have the right to purchase the Property by providing Landlord with a written notice stating Tenant’s intention to Purchase the Property pursuant to this Section 6(b) and requesting a determination of Sale Price from Landlord (“Tenant’s Purchase Notice”). Within five (5) days  following  Landlord’s receipt of Tenant’s Purchase Notice, Landlord shall provide Tenant a written response (the “Landlord’s Purchase Notice Response”) which shall (i) state the Sale Price in effect at such time, and basis for the determination of such Sale Price, which must comply with the provisions for such determination set forth in Section 6(c) below, and (ii) include the Purchase and Sale Agreement (as defined in Section 6(a) above) with the Sale Price and other applicable terms inserted.

(2)Tenant shall have ten (10) days after receipt of Landlord’s Purchase Notice Response to (i) deliver the Purchase and Sale Agreement executed by Tenant, and (ii) deliver a deposit in the amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the “Deposit”) to the escrow agent designated in the Purchase and Sale Agreement. If Tenant has not delivered the executed Purchase and Sale Agreement and the Deposit as provided in the immediately preceding sentence within such ten (10) day period, then such failures shall be treated as if Tenant has rescinded the Tenant’s Purchase Notice, and this Section 6(b) shall be null and void and terminated in all respects, and Landlord shall have no further obligation to sell the Property to Tenant pursuant to this Section 6(b).

 

		
	
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(3)Notwithstanding the foregoing, Tenant hereby acknowledges and agrees that, so long as Landlord has fully and timely complied with all of the terms, covenants and conditions of Sections 6(a) above, if Landlord has entered into a written agreement with a third party to purchase and sell the Property (a “Third Party Purchase and Sale Agreement”), Tenant shall not have the right to purchase the Property pursuant to this Section 6(b) (and any exercise thereof shall be null and void in all respects) so long as such Third Party Purchase and Sale Agreement remains in effect and a Re-Offer Event has not occurred. If such Third Party Purchase and Sale Agreement is terminated for any reason or a Re-Offer Event (as described in Section 6(a) above) occurs, Tenant’s right to purchase the Property pursuant to this Section 6(b) shall be restored and have full force and effect. Landlord hereby agrees to give written notice to Tenant if Landlord enters into a Third Party Purchase and Sale Agreement and, upon request, shall keep Tenant reasonably informed of the status of such Third Party Purchase and Sale Agreement.

(c)Sale Price.  For purposes of this Section 6, the “Sale Price” shall mean  the sum of (1) the Base Price in effect on the date the Proposed Sale Notice or the Tenant’s Purchase Notice, as applicable, is given, (2) the Total Unamortized Tenant Improvements in effect at such time, (3) the Total Unamortized Leasing Commissions in effect at such time, and (z) the Total Unamortized Capital Investments in effect at such time. Within thirty (30) days following written request by Tenant, Landlord agrees to provide Tenant a schedule (certified as true and accurate by Landlord) setting forth in reasonable detail the Total Unamortized Tenant Improvements, the Total Unamortized Leasing Commissions, and the Total Unamortized Capital Investments in effect at the time of such request, provided however, Landlord shall not be obligated to respond to more than two (2) such requests in any twelve (12) month period.

	
 
	
(i)
	
The “Base Price” (the “Base Price”) in effect for a particular period in the Lease Term (and any extensions thereof, as the case may be) shall mean the amount set forth in the table below applicable to such period:

 

	
Period
	
PSF Price
	
Base Price

	
January 1, 2018 – December 31, 2018
	
$150.00
	
$15,092,850.00

	
January 1, 2019 – December 31, 2019
	
$154.50
	
$15,545,635.50

	
January 1, 2020 – December 31, 2020
	
$159.14
	
$16,012,507.66

	
January 1, 2021 – December 31, 2021
	
$163.91
	
$16,492,460.29

	
January 1, 2022 – December 31, 2022
	
$168.83
	
$16,987,505.77

	
January 1, 2023 – December 31, 2023
	
$173.89
	
$17,496,637.91

	
January 1, 2024 – December 31, 2024
	
$179.11
	
$18,021,869.09

	
January 1, 2025 – December 31, 2025
	
$184.48
	
$18,562,193.12

	
January 1, 2026 – December 31, 2026
	
$190.01
	
$19,118,616.19

	
January 1, 2027 – December 31, 2027
	
$195.71
	
$19,692,144.49

	
January 1, 2028 – December 31, 2028
	
$201.58
	
$20,282,778.02

	
January 1, 2029 – December 31, 2029
	
$207.63
	
$20,891,522.97

	
January 1, 2030 – December 31,2030
	
$213.86
	
$21,518,379.34

	
January 1, 2031 – December 31, 2031
	
$220.28
	
$22,164,353.32

	
January 1, 2032 – December 31, 2032
	
$226.88
	
$22,828,438.72

	
January 1, 2033 – December 31, 2033
	
$233.69
	
$23,513,654.11

	
January 1, 2034 – December 31, 2034
	
$240.70
	
$24,218,993.30

	
January 1, 2035 – August 31, 2035
	
$247.92
	
$24,945,462.48

 

 

		
	
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(ii)
	
The “Total Unamortized Tenant Improvements” (the “Total Unamortized Tenant Improvements”) means the sum of all Unamortized Tenant Improvements (as calculated below) for each lease in connection with additions, improvements or alterations made to tenant spaces in the Building from and after the Effective Date (the “Tenant Improvement Costs”). The calculation of the Unamortized Tenant Improvements for each lease (the “Unamortized Tenant Improvements”) shall be made by (a) taking the total of all Tenant Improvement Costs for such lease, (b) fully amortizing such amount on a so-called straight line basis, using an annual rate of interest of nine percent (9%), over the applicable term of such lease to establish a monthly payment therefor, and (c) calculating the remaining principal balance of such Tenant Improvement Costs as of the applicable date. Such remaining principal balance shall be the Unamortized Tenant Improvements for such lease.

	
 
	
(iii)
	
The “Total Unamortized Leasing Commissions” (the “Total Unamortized Leasing Commissions”) means the sum of all Unamortized Leasing Commissions (as calculated below) for each lease in connection with brokerage commissions paid by Landlord for leases of space in the Building from and after the Effective Date (the “Leasing Commissions”). The calculation of the Unamortized Leasing Commissions for each lease (the “Unamortized Leasing Commissions”) shall be made by (a) taking the total of all Leasing Commissions for such lease, (b) fully amortizing such amount on a so-called straight line basis, using an annual rate of interest of nine percent (9%), over the applicable term of such lease to establish a monthly payment therefor, and (c) calculating the remaining principal balance of such Leasing Commissions as of the applicable date. Such remaining principal balance shall be the Unamortized Leasing Commission for such lease.

	
 
	
(iv)
	
The “Total Unamortized Capital Investments” (the “Total Unamortized Capital Investments”) means the sum of all Unamortized Capital Investments (as calculated below) in connection with capital improvements and/or investments made to the Building from an after the Effective Date (the “Capital Costs”). The calculation of the Unamortized Capital Investment (the “Unamortized Capital Investment”) for each Capital Cost shall be made by (a) taking the particular Capital Cost, (b) fully amortizing such Capital Cost on a so-called straight line basis, using an annual rate of interest of nine percent (9%), over the useful life of such item (as determined by generally accepted accounting principles) to establish a monthly payment therefor, and (c) calculating the remaining principal balance of such Capital Costs as of the applicable date. Such remaining principal balance shall be the Unamortized Capital Investment for such particular Capital Cost.

(d)Landlord and Tenant hereby acknowledge and agrees that if Tenant delivers the Purchase and Sale Agreement pursuant to Sections 6(a) and 6(b) above and then defaults in the performance of its obligations under such Purchase and Sale Agreement beyond the expiration of all applicable notice and cure periods, or otherwise terminates such Purchase and Sale Agreement (other than a termination by reason of a default of Landlord thereunder), this Section 6 shall be deemed to be null and void and terminated in all respects and Landlord shall have no further obligation to offer or sell the Property to Tenant.

(e)Landlord and Tenant hereby acknowledge and agree that, so long as Landlord has fully and timely complied with all of the terms, covenants and conditions of Sections 6(a) and (b) above, upon the sale or transfer of the Property to any third party, including without limitation, the sale or transfer to a mortgagee or a buyer pursuant to a foreclosure of any mortgage encumbering the Property, or the execution and delivery by Landlord of a deed in lieu or contemplation of foreclosure in regard to, Landlord’s interest in the Property, this Section 6 shall be deemed to be terminated in its entirety and shall have no further force and effect and any subsequent owner of the Property shall own the Property unencumbered by the terms and conditions of this Section 6. Notwithstanding the foregoing, this Section 6(e) shall not apply to sales or transfers to Landlord Affiliates.

 

		
	
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(f)If Landlord shall record an affidavit in the Essex South Registry of Deeds stating that: (A)(i) Landlord has sent the Proposed Sale Notice to Tenant in accordance with the requirements of Section 6(a) above, and (ii) Landlord has not received Tenant’s Acceptance Notice within the time period specified herein (or that Tenant has given Tenant’s Acceptance Notice but defaulted in the performance of its obligations under Section 6(a), defaulted in the performance of its obligations under the Purchase and Sale Agreement or otherwise terminated the Purchase and Sale Agreement), or (B)(i) Landlord has sent the Landlord’s Determination of Sale Price to Tenant in accordance with the requirements of Section 6(b) above, and (ii)  Landlord has not received the executed Purchase and Sale Agreement from Tenant within the time period specified herein (or that Tenant has given the executed Purchase and Sale Agreement but defaulted in the performance of its obligations under Section 6(b), defaulted in the performance of its obligations under the Purchase and Sale Agreement or otherwise terminated the Purchase and Sale Agreement), then, with respect solely to any third party relying on such affidavit, such affidavit shall be conclusive as to (1) compliance of Landlord with the requirements of this Section 6, and (2) termination of Tenant’s rights under this Section 6, and such third  party shall be entitled to rely on same.

(g)The rights under this Section 6 are personal to Abiomed, Inc. (the Tenant named herein) and any assignee of Tenant’s interest under the Lease pursuant to a Permitted Transfer, and may not be exercised by another person or entity.

(h)Time is of the essence with respect to all terms and conditions of this Section 6, including without limitation, the exercise of any rights and the performance of obligations hereunder.

7.Condition Precedent to Expansion; Delay in First Amendment Commencement Date. Landlord shall use commercially reasonable efforts to cause the First Amendment Commencement Date to occur by June 1, 2018 (the “Target Commencement Date”). However, Tenant hereby acknowledges and agrees that to accommodate  Tenant’s desired expansion of the Premises contemplated by this First Amendment, it will be necessary  for Landlord to move the tenant presently occupying the Expansion Premises, North of Boston Library Exchange, Inc. (“NOBLE”), to alternate space in the Building presently occupied by another tenant (the “NOBLE Relocation Premises”), Bioceutica, LLC (“Bioceutica”), and to move NOBLE into the NOBLE Relocation Premises it will be necessary for Bioceutica to agree to terminate its lease of the NOBLE Relocation Premises. Tenant hereby acknowledges and agrees that, despite Landlord’s commercially reasonable efforts, Landlord cannot assure the Tenant nor guaranty that the First Amendment Commencement Date will occur by the Target Commencement Date. Accordingly, notwithstanding any terms or conditions of  this First Amendment to the contrary, in the event Landlord is unable to deliver the Expansion Premises to Tenant by the Target Commencement Date for any reason whatsoever, the Lease (including this First Amendment) remains in full force and effect and Landlord shall not be liable to Tenant for any resulting loss or damage. For purposed of this Section 7, the First Amendment Commencement Date shall be referred to as the “Rent Commencement Date”. Anything in this Lease to the contrary notwithstanding, if the First Amendment Commencement Date has not occurred by August 1, 2017, then for each day of delay thereafter, the Rent Commencement Date shall be extended by one-half of one day as to the Expansion Premises only, and if the First Amendment Commencement Date has not occurred by September 1, 2017, then for each day of delay thereafter, the Rent Commencement Date shall be extended by one day as to the Expansion Premises only. For purposes of clarity, the parties agree that the annual Base Rent for the Expansion Premises to be used in calculating such abatement is One Hundred Twenty Five Thousand Two Hundred Two and 65/100 Dollars ($125,202.65).

8.Condition Precedent. Notwithstanding any term or condition of this First Amendment to the contrary, Tenant hereby acknowledges and agrees that the effectiveness of this First Amendment is conditioned upon Landlord (a) entering into a written agreement with NOBLE , the tenant presently occupying the Expansion Premises, wherein NOBLE agrees to relocate from the Expansion Premises to the NOBLE Relocation Premises (the “NOBLE Relocation Agreement”), and (b) entering into a written agreement with Bioceutica, wherein Bioceutica agrees to terminate its lease early (the “Bioceutica Early Termination  Agreement”). If, for any reason the Landlord does not enter into the NOBLE Relocation Agreement or the Bioceutica Early Termination Agreement, Landlord may rescind its execution of this First Amendment by written notice thereof to Tenant, whereupon the Lease shall remain  in full force and effect as if this First Amendment was never executed. Landlord agrees to use commercially reasonable efforts to enter into the NOBLE Relocation Agreement and the Bioceutica Early Termination Agreement prior to February 28, 2018.

 

		
	
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9.Notices. From and after the Effective Date, all notices to Landlord and remittances of payments shall be sent as follows:

Notice Address of Landlord:

Cherry Hill Drive Owner LLC 

c/o RJ Kelly Company

55 Cambridge Street

Burlington, MA 01803

Landlord’s Remittance Address:

Mailing Instructions:

Cherry Hill Drive Owner LLC

c/o RJ Kelly Company

55 Cambridge Street

Burlington, MA 01803 Attn:  Accounts Receivable

Wire/ACH Instructions:

Cambridge Savings Bank 1374 Massachusetts Ave.

Cambridge, MA 02138

ABA #2113-7112-0

Account Title: Cherry Hill Drive Owner LLC

Account Address: 55 Cambridge Street, Burlington, MA 01803 Account Number: 10835075

10.Broker. Landlord and Tenant each represents and warrants to the other that, except for Jones Lang LaSalle (the “Broker”), it has had no dealing with any other broker or agent in connection with the negotiation or execution of this First Amendment, and  Tenant agrees to indemnify and hold Landlord harmless from and against any claims by any broker, agent or other person claiming a commission or other form of compensation by virtue of having dealt with Tenant with regards to this leasing transaction, except for the Broker.  Any  commission owed to the Broker shall be paid by Landlord pursuant to separate agreement.

11.Counterparts; PDF Signatures. This First Amendment may be executed in two (2) or more counterparts, each of which shall be an original but such counterparts together shall constitute one and the same instrument notwithstanding that both Landlord and Tenant are not signatories to the same counterpart.  PDF signatures shall be binding as originals.

12.Ratification. Except as amended by this First Amendment, all other terms, conditions, covenants and provisions as appear in the Lease are hereby ratified and confirmed and shall remain unchanged.

13.Successors and Assigns. This First Amendment shall be binding upon and inure to the benefit of the parties hereto and their heirs, successors and permitted assigns.

14.SNDA. Concurrently with execution of this First Amendment by Landlord, Landlord shall, at Landlord’s sole cost and expense, have the existing mortgagee of the Property enter into a subordination, attornment and non-disturbance agreement (“SNDA”) with Tenant, on such mortgagee’s customary form thereof subject to Tenant’s commercially reasonable modifications to such form, provided however, Landlord and Tenant hereby acknowledge and agree that the form of SNDA dated July 25, 2017 by and among Landlord, Tenant and Cambridge Savings Bank shall be deemed to be an acceptable form of SNDA. Section 20 of the Lease shall remain in full force and effect with respect to any future mortgages which may encumber the Property.

 

		
	
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15.Tenant Estoppel Certificate. Landlord and Tenant hereby acknowledge and agree that notwithstanding Section 2 of that certain Tenant Estoppel Certificate dated as of July 12, 2017 executed by Tenant and provided to Brookwood Cherry Hill I, LLC, Brookwood  Cherry Hill Owner II, LLC, Landlord, and Cambridge Savings Bank, the Expiration Date of the Lease, prior to this First Amendment having force and effect, is August 31, 2022.

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IN WITNESS WHEREOF, the parties have caused this First Amendment to be duly executed under seal as of the date first written above.

 

	
LANDLORD:

	
CHERRY HILL DRIVE OWNER LLC,

	
a Delaware limited liability company

	
By
	
 
	
/s/ Brandon D Kelly

	
Name
	
 
	
Brandon D Kelly

	
Title
	
 
	
Authorized Signatory

 

	
TENANT:

	
ABIOMED, INC., a Delaware corporation

	
 

 

	
By:
	
 
	
 

	
Name
	
 
	
 

	
Title:
	
 
	
 

 

 

		
	
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IN WITNESS WHEREOF, the parties have caused this First Amendment to be duly executed  under seal as of the date first written  above.

 

	
LANDLORD:

	
CHERRY HILL DRIVE OWNER LLC,

	
a Delaware limited liability company

	
By
	
 
	
 

	
Name
	
 
	
Brandon D Kelly

	
Title
	
 
	
Authorized Signatory

 

	
TENANT:

	
ABIOMED, INC., a Delaware corporation

	

	
 
	
 

 

 

 

 

		
	
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EXHIBIT A

PLAN OF EXPANSION PREMISES

(Attached)

 

 

 

 

		
	
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Plan may not be to scale or depict the exact configuration 

of walls within the space.

 

 

 

 

EXHIBIT B 

RIGHT OF FIRST OFFER

So long as no Event of Default then exists under the Lease, Tenant will have the right during the Term (“Offer Right”) to be offered by Landlord the opportunity to lease that certain space in the Building consisting of (a) 11,269 rentable square feet (the “Right of First Offer Space”) identified and shown on the plan attached hereto as Schedule B-1, (b) 24,070 rentable square feet (the “Subordinate Right of First Offer Space”) identified and shown on the plan attached hereto as Schedule B-1, and (c) any other space in the Building (“Other Right of First Offer Space”) which becomes vacant or is available to lease (the Right of First Offer Space, the Subordinate Right of First Offer Space, and the Other Right of First Offer Space, collectively,  the “Offer Right Space”). The Offer Right is subject to the terms and conditions set forth in this Exhibit B, provided however, Tenant hereby acknowledges and agrees that the Offer Right (a) solely with respect to the Subordinate Right of First Offer Space is subject and subordinate to Landlord’s right to first offer and lease such space to another tenant occupying, as of the Effective Date, no less than 35,000 rentable square feet space within a building owned by Landlord within the business park in which the Building is located (the “Other Tenant”), (b) and solely with respect to the Other Right of First Offer Space is subject and subordinate to any presently existing rights of existing tenants of the Building (individually, an “Existing Tenant” and, collectively, “Existing Tenants”). If at any time after the Effective Date Landlord receives a request for proposal to lease all or any portion of the Offer Right Space from a third party or wishes to offer the Offer Right Space to a third party, Landlord shall notify Tenant that such Offer Right Space is available for lease (the “Available Space”), such notice shall include the material terms and condition under which Landlord would be willing to lease such space to Tenant (including, without limitation, the rent per square foot), in Landlord’s sole and absolute discretion. Tenant must notify Landlord in writing within ten (10) business days of receiving Landlord’s notice whether Tenant desires to lease all (and not a portion) of the Available Space from Landlord. If Tenant notifies Landlord that Tenant does not desire to lease all (and not a portion) of the Available Space, or if Tenant does not respond in writing to Landlord’s notice within such ten (10) Business Day period, then Landlord may proceed with negotiating a lease with such third party from whom a request for proposal was received or any other party to whom Landlord wishes to extend an offer to lease such space and freely lease the Available Space without restriction and no further obligation to offer such Available Space to Tenant. If Tenant notifies Landlord in writing within such ten (10) Business Day period that Tenant desires to lease all of the Available Space (and not a portion), and Landlord accepts Tenant’s offer, the parties will thereafter negotiate Tenant’s lease of the Available Space from Landlord based upon the material terms and conditions set forth in Landlord’s notice, provided however, in the event any portion of the Available Space consists of the Subordinate Right of First Offer Space or the  Other Right of First Offer Space and if the Other Tenant (with respect to the Subordinate Right  of First Offer Space) or any Existing Tenant (with respect to the Other Right of First Offer Space) elects to lease such space, Landlord shall not be obligated to lease such space to Tenant and Tenant’s election to lease such space shall be null and void and have no force or effect. Landlord agrees that it will use commercially reasonable efforts to keep Tenant reasonably informed of the status of leasing the Subordinate Right of First Offer Space to the Other Tenant and the Other Right of First Offer Space to any Existing Tenant. Tenant acknowledges and  agrees that Landlord may contemporaneously provide Tenant, the Other Tenant (solely with respect to the Subordinate Right of First Offer Space) and any Existing Tenants (solely with respect to the Other Right of First Offer Space) with a notice of Available Space (as described above) and, regardless of whether Tenant notifies Landlord of its desire to lease such Available Space, Landlord shall not be obligated to lease any portion of the Available Space which consists of the Subordinate Right of First Offer Space or the Other Right of First Offer Space to Tenant unless or until Landlord has determined, in Landlord’s commercially reasonable judgment, that the Other Tenant or any Existing Tenant does not wish to lease such space on terms and conditions which Landlord would accept.

If Landlord and Tenant fail to mutually agree upon the terms of Tenant’s lease of the Available Space and to execute a written amendment to this Lease within five (5) business days after the date that Landlord accepts Tenant’s offer notice, then Landlord shall be free to lease the Available Space without restriction after such five (5)  business day period.

		
	
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Tenant's rights under this Exhibit B are exclusive to Tenant and any assignee of Tenant’s position under this Lease, whether through a Permitted Transfer or otherwise, and shall terminate if (i) the Lease or Tenant's right to possession of the Premises is terminated in accordance with the terms of this Lease or by mutual written agreement, or (ii) Tenant fails to timely exercise its option under this Exhibit B, time being of the essence with respect to Tenant's exercise thereof.

Notwithstanding any term or condition of the Lease or this Exhibit B to the contrary, Tenant hereby acknowledges and agrees that Landlord shall have no obligation under this Exhibit B to offer Tenant the right to lease any portion of the Offer Right Space in instances where a then existing tenant of the Building is occupying such space and Landlord offers such tenant the opportunity to renew its lease thereof or such tenant exercises a right to renew its lease for such space. Further, Landlord shall have no obligation under this Exhibit B to offer Tenant the opportunity to lease any portion of the Subordinate Right of First Offer Space or the Other First Offer Space unless or until Landlord has determined, in Landlord’s commercially reasonable judgement, that the Other Tenant (solely with respect to the Subordinate Right of  First Offer Space) or any Existing Tenant (solely with respect to the Other Right of First Offer Space), as the case may be, does not wish to lease such space on terms and conditions which Landlord would accept.

		
	
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SCHEDULE B-1

Plan of Offer Right Space

(Identifying the Right of First Offer Space and the Subordinate Right of First Offer Space)

 

 

 

 

		
	
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EXHIBIT C

FORM OF PURCHASE AND SALE AGREEMENT

(Attached)

 

 

 

		
	
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PURCHASE AND SALE AGREEMENT

between

CHERRY HILL DRIVE OWNER, LLC, a Delaware limited liability company,

(as Seller) 

and

ABIOMED, INC., a Delaware corporation 

(as Buyer)

24-42 Cherry Hill Drive, Danvers, MA 

as of                  ,                   

 

 

 

 

 

		
	
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Table of Contents

	
ARTICLE 1.
	
Description of Property

	
ARTICLE 2.
	
Sale Subject to Leases

	
ARTICLE 3.
	
Purchase Price and Payment

	
ARTICLE 4.
	
Conveyance of Title

	
ARTICLE 5.
	
Closing

	
ARTICLE 6.
	
Approvals and Conditions to Buyer's Obligations

	
ARTICLE 7.
	
Conditions to Closing

	
ARTICLE 8.
	
Default

	
ARTICLE 9.
	
Entire Agreement Herein

	
ARTICLE 10.
	
Damage or Destruction: Condemnation

	
ARTICLE 11.
	
Representations, Warranties and Covenants of Seller

	
ARTICLE 12.
	
Operations

	
ARTICLE 13.
	
Apportionment of Taxes and Other Charges

	
ARTICLE 14.
	
Broker

	
ARTICLE 15.
	
Recording

	
ARTICLE 16.
	
Notices

	
ARTICLE 17.
	
Captions

	
ARTICLE 18.
	
Successors and Assigns

	
ARTICLE 19.
	
Closing Costs

	
ARTICLE 20.
	
Governing Law

	
ARTICLE 21.
	
Multiple Counterparts

	
ARTICLE 22.
	
Representations and Warranties of Buyer

	
ARTICLE 23.
	
Post-Closing Obligations

	
ARTICLE 24.
	
Duties and Responsibilities of Escrow Agent

	
ARTICLE 25.
	
Waiver of Jury Trial

	
ARTICLE 26.
	
Like Kind Exchange

	
ARTICLE 27.
	
Business Days

	
ARTICLE 28.
	
Confidentiality

	
ARTICLE 29.
	
IRS Real Estate Sales Reporting

	
ARTICLE 30.
	
Limitations on Liability

	
ARTICLE 31.
	
Press Releases

	
ARTICLE 32.
	
Time of the Essence

	
ARTICLE 33.
	
Costs and Attorneys’ Fees

	
ARTICLE 34.
	
Waivers

	
ARTICLE 35
	
Severability

		
	
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Exhibits

	
Exhibit A
	
Legal Description of Real Property

	
Exhibit B
	
List of Personal Property

	
Exhibit C
	
List of Leases

	
Exhibit D
	
Form of Deed

	
Exhibit E
	
Form of Bill of Sale

	
Exhibit F
	
Form of Assignment and Assumption Agreement (re: Leases)

	
Exhibit G
	
Form of Assignment and Assumption Agreement (re: Contracts)

	
Exhibit H
	
Form of FIRPTA Affidavit

	
Exhibit I
	
List of Operating Contracts

	
Exhibit K
	
Form of Estoppel Certificate

 

 

 

		
	
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PURCHASE AND SALE AGREEMENT

THIS AGREEMENT (the “Agreement”) made as of this ____ day of ___________,

(the “Effective Date”) by and between CHERRY HILL DRIVE OWNER, LLC, a

Delaware limited liability company (“Seller”) and ABIOMED, INC., a Delaware corporation

(“Buyer”).

WITNESSETH THAT, Seller owns the land described on Exhibit A hereto together with the buildings and improvements thereon, commonly known as 24-42 Cherry Hill Drive, Danvers, MA (the “Improved Property”).

WITNESSETH FURTHER THAT, Seller desires to sell and Buyer desires to purchase the Property (as hereinafter defined) on the terms and subject to the conditions set forth herein.

WITNESSETH FURTHER THAT, for the consideration hereinafter named, and for other good and valuable consideration, receipt of which is acknowledged hereby, the parties do hereby agree as follows:

ARTICLE 1. Description of Property: Seller agrees to sell and Buyer agrees to buy upon the terms and conditions hereinafter set forth:

The Improved Property, as more particularly described in Exhibit A attached hereto and incorporated herein by reference, (i) together with all right, title and interest of Seller in and to any land lying in the bed of any street (opened or proposed) adjacent to or abutting or adjoining each such premises, together with all rights, privileges, rights of way and easements appurtenant to each such premises, including, without limitation, any easements, rights of way or other interests in, on, or under any land, highway, alley, street or right of way abutting or adjoining the Improved Property (the "Real Property"), (ii) all buildings, structures and other improvements located thereon, together with all of the fixtures and other property affixed thereto (the "Improvements", and, together with the Real Property, the "Premises"), (iii) all items of personal property owned by Seller and located on the Premises described in Exhibit B attached hereto and incorporated herein by reference (to the extent of Seller’s interest therein and to the extent assignable, collectively, the “Personal Property”) and (iv) any intangible and other property now or hereafter owned by Seller and used in the ownership or operation of the Premises, to the extent of Seller’s ownership interest therein and assignable without cost to Seller, including, without limitation, any plans and specifications, permits, licenses, approvals, authorizations, certificates of occupancy, guaranties, warranties, contracts, lease agreements, utility contracts, development rights, the non-exclusive rights to use any trade name or trademark associated with the Property (so long as Landlord has the right to convey such trade name or trademark) or other rights relating to the ownership, use or operation of the Premises (but excluding attorney and accountant work product) (collectively, the "Intangible Property"). The Improved Property, together with all items referred to in clauses (i), (ii) (iii) and (iv) are herein sometimes referred to as the "Property."

ARTICLE 2. Sale Subject to Leases: Subject to the provisions of Article 4 hereof, the Premises will be conveyed subject to certain leases (hereinafter called the "Leases") described in Exhibit C attached hereto and incorporated herein by reference, or as hereafter added pursuant to the provisions of Article 12 hereof.

ARTICLE 3. Purchase Price and Payment: (a) The total purchase price (the "Purchase Price") for the Property is [TO BE INSERTED]. The Purchase Price shall be payable at the Closing, as hereinafter defined, in lawful currency of the United States of America in immediately available funds by wire transfer to an account or accounts designated by Seller.

		
	
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(b)As security for Buyer's performance hereunder, Buyer shall, within one (1) business day of the Effective Date, deposit Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the “Deposit”) into escrow with [TO BE INSERTED - TITLE COMPANY SELECTED BY BUYER] ("Escrow Agent") by wire transfer of immediately available federal funds into an account or accounts held by Escrow Agent.  Escrow Agent shall hold the Deposit in an FDIC-insured interest-bearing money market account. Escrow Agent shall not commingle the Deposit with any other funds of Escrow Agent. All interest earned on the Deposit will be the property of Buyer and will be reported to the Internal Revenue Service as income of Buyer unless Seller retains the Deposit pursuant to the provisions hereof whereupon all interest earned on the Deposit shall be the property of Seller and will be reported to the Internal Revenue Service as income of Seller. Buyer and Seller will provide Escrow Agent with their respective taxpayer identification numbers and the party receiving such interest will pay all income taxes due by reason of interest accruing on the Deposit. If Buyer fails to deliver such Deposit to Escrow Agent within the time period required by the provisions hereof, then this Agreement shall, at Seller’s election in its sole discretion, terminate, Seller and Buyer shall have no further obligations or liabilities to each other hereunder. If the Closing does not occur, Escrow Agent shall disburse the Deposit to the party entitled thereto in accordance with the terms and conditions of this Agreement. If the Closing does occur, the Deposit shall be credited against the Purchase Price and disbursed to Seller as part of the Purchase Price. Escrow Agent's duties and responsibilities are governed by the terms of Article 24 hereof.

(c)The payment required at the Closing shall be increased or decreased, as the case may be, to account for all items to be apportioned or prorated pursuant to this Agreement.

ARTICLE 4.  Conveyance of Title:

(a)At Closing, Buyer shall obtain from [TO BE INSERTED – TITLE COMPANY SELECTED BY BUYER] (the “Title Company”) an ALTA 2006 Owner’s Title Insurance Policy (the “Title Policy”) insuring that fee simple title to the Premises is vested in Buyer, in the full amount of the Purchase Price, with all standard and general printed exceptions deleted (subject only to the Permitted Exceptions) so as to afford full “extended form coverage”, together with such endorsements as Buyer shall reasonably request, and otherwise in a form and substance consistent with the Title Commitment (as defined herein). Notwithstanding anything contained herein to the contrary, the Premises shall be conveyed subject to the following matters, which shall be deemed to be “Permitted Exceptions:”

	
 
	
(i)
	
the rights of tenants, as tenants only, under the Leases and any new Leases entered into between the date hereof and Closing in accordance with the terms of this Agreement;

	
 
	
(ii)
	
the lien of all ad valorem real estate taxes and assessments not yet due and payable as of the date of Closing, subject to adjustment as herein provided;

	
 
	
(iii)
	
local, state and federal laws, ordinances or governmental regulations, including but not limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect relating to the Property;

	
 
	
(iv)
	
all matters, whether or not of record, that arise out of the actions of Buyer or its agents, representatives or contractors;

	
 
	
(v)
	
such state of facts as may be shown on the Survey (as defined herein), the Title Policy and/or the Title Commitment, or which would be disclosed by a physical inspection of the Property; and

	
 
	
(vi)
	
those matters which Seller is not obligated to remove as provided below.

(b)Notwithstanding the foregoing, all Voluntary Liens (defined below) will be satisfied by Seller on or prior to the Closing Date. For the purposes of this Agreement, a “Voluntary Lien” shall mean (i) any mortgage or deed of trust granted or assumed by Seller and encumbering the Property, (ii) any other monetary lien or monetary encumbrance, including mortgages, judgments and federal, state and municipal tax liens, first appearing on record during Seller’s ownership of the Property created or caused by Seller or that Seller has suffered to exist (such as a tenant’s mechanics’ lien attached to the fee estate of the Property (rightfully or wrongfully) that Seller could have required such tenant to remove but failed to do so) and (iii) all non-monetary liens and encumbrances which Seller has allowed to be placed on the Property without Buyer’s written consent from and after the Effective Date.

		
	
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ARTICLE 5. Closing: (a) Unless extended pursuant to the terms of this Agreement or earlier terminated, the closing of the transactions contemplated hereunder (the "Closing") shall be conducted by Escrow Agent on the date which is fifteen (15) days after the Due Diligence Expiration Date (as defined herein) (the "Closing Date").

(b)At the Closing, Seller shall deliver the following documents to the Title Company in the forms attached hereto properly executed and acknowledged as required with respect to each of the Improved Property:

	
 
	
(i)
	
Quitclaim deed (the “Deed”) in the form of Exhibit D, which Deed shall include customary Massachusetts quitclaim covenants;

	
 
	
(ii)
	
Bill of Sale in the form of Exhibit E;

	
 
	
(iii)
	
Original Assignment and Assumption Agreement relating to the Leases and security deposits and accrued interest thereon to the extent required by the Leases or applicable law (collectively, the “Security Deposits”) in the form attached hereto as Exhibit F (the "Lease Assignment"), which will include provisions that the Buyer will indemnify the Seller for all claims, suits, obligations, liabilities, damages, losses, costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements, based upon or arising out of, or resulting from Buyer’s breach of the terms and provisions of such Leases occurring on or after the Closing Date, and subject to the limitations set forth in Section 11(c) of this Agreement, Seller will indemnify the Buyer for all claims, suits, obligations, liabilities, damages, losses, costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements, based upon or arising out of, or resulting from Seller’s breach of the terms and provisions of such Leases occurring prior to the Closing Date, except to the extent any of the foregoing relate to the condition of the Property, including without limitation, the interior, exterior and structure of all Improvements, and the condition of soils and subsoils;

	
 
	
(iv)
	
Originals (or copies, if originals are not in Seller’s possession) of all Leases, any renewals thereof and all amendments thereto to the extent in Seller’s possession or control will be delivered at the Premises;

	
 
	
(v)
	
Original Assignment and Assumption Agreement in the form attached hereto as Exhibit G relating to the Operating Contracts (as hereinafter defined) (the "Contract Assignment"), which will include provisions that the Buyer will indemnify the Seller for all claims, suits, obligations, liabilities, damages, losses, costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements, based upon or arising out of, or resulting from Buyer’s breach of the terms and provisions of such Operating Contracts occurring on or after the Closing Date, and subject to the limitations set forth in Section 11(c) of this Agreement, Seller will indemnify the Buyer for all claims, suits, obligations, liabilities, damages, losses, costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements, based upon or arising out of, or resulting from Seller’s breach of the terms and provisions of such Operating Contracts occurring prior to the Closing Date, except to the extent any of the foregoing relate to the condition of the Property, including without limitation, the interior, exterior and structure of all Improvements, and the condition of soils and subsoils;

	
 
	
(vi)
	
Certification of non-foreign status in the form attached hereto as Exhibit H and incorporated herein by reference;

	
 
	
(vii)
	
Evidence satisfactory to the Title Company that all necessary approvals and/or consents have been delivered and such other evidence reasonably satisfactory to the Title Company of Seller’s authority to convey the Premises pursuant to this Agreement;

	
 
	
(viii)
	
All Security Deposits, together with accrued interest thereon if payable under the Leases or pursuant to applicable law;

	
 
	
(ix)
	
Affidavits (including a gap indemnity) sufficient for the Title Company to delete any exceptions for parties in possession (other than tenants under the Leases, as tenants only) and mechanics' or materialmen's liens from the Title Policy;

		
	
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(x)
	
A copy of a closing statement setting forth the Purchase Price, the closing adjustments and prorations and the application thereof at the Closing (the "Closing Statement");

	
 
	
(xii)
	
The estoppel certificates to the extent obtained by Seller in accordance with the provisions of Article 7 below and not previously delivered;

	
 
	
(xiii)
	
Copy of standard tenant notification letter in a form to be drafted by Buyer and satisfactory to Seller; and

	
 
	
(xiv)
	
Such other instruments and documents as may be reasonably necessary in order to complete the Closing and to carry out the intent and purposes of this Agreement.

(c)At the Closing, Buyer shall deliver, or cause to be delivered, the following payment and documents, properly executed and acknowledged as required:

	
 
	
(i)
	
The Purchase Price as adjusted in accordance with the terms hereof shall be deposit with the Title Company in good funds by 3:00 p.m. local time at the Property. If the proceeds due from Buyer are not received by Seller in good funds by 3:00 p.m. local time at the Property on the Closing Date, and Seller elects to proceed to close the transaction notwithstanding Buyer’s late delivery of the Purchase Price, then Buyer shall be responsible for any additional interest or other costs imposed by Seller’s lender in connection with the payoff of any existing mortgage loan on the Property;

	
 
	
(ii)
	
An original of the Lease Assignment;

	
 
	
(iii)
	
An original of the Contract Assignment;

	
 
	
(iv)
	
A copy of the Closing Statement; and

	
 
	
(v)
	
Such other instruments and documents as may be reasonably necessary in order to complete the Closing and to carry out the intent and purposes of this Agreement.

ARTICLE 6.  Approvals and Conditions to Buyer's Obligations:

(a)Property Diligence.

(i)From and after the Effective Date until the Closing or the earlier termination of this Agreement, Seller shall permit Buyer and its representatives, agents and contractors to inspect the Property (including, without limitation, inspections of all roofs, electrical, mechanical and structural elements, HVAC systems and other building systems located on or within the Improvements), to perform appraisals and due diligence (including, without limitation, any non-invasive water and air sampling analysis or other non-invasive environmental investigations of the Land and zoning investigations), to examine the books and records of Seller, Operating Contracts, governmental approvals, insurance policies, tax, utility and other bills, operating statements, and all other general records with respect to the Property (and to make copies thereof), and to perform such other inspections and investigations with respect to the Property as Buyer shall deem necessary or appropriate (the “Due Diligence Items”).  Notwithstanding the foregoing, the Due Diligence Items shall not include the Excluded Items, as such term is defined below. Buyer acknowledges and agrees that any Due Diligence Items to be delivered or made available to Buyer or its agents are or shall be provided without representation or warranty of any kind, express or implied, as to the completeness or accuracy of the facts, presumptions, conclusions or other matters contained therein and that Buyer shall rely solely on its own investigations, reports and materials prepared by Buyer or any consultants engaged by Buyer and not on any Due Diligence Items provided to Buyer by Seller or its agents, provided however, Seller hereby agrees that such Due Diligence Items shall be true copies of what they purport to be. During the forty-five (45) days after the Effective Date (the “Due Diligence Period”), Buyer may perform surveys, architectural, engineering, non-invasive geotechnical, and property condition and environmental inspections and tests. To the extent that Buyer damages or disturbs the Property in connection with any such inspections or investigations, Buyer shall return the Property to substantially the same condition that it was in immediately prior to such damage or disturbance. Buyer shall indemnify, defend and hold harmless Seller from and against any and all expense, loss or damage which Seller incurs as a result of any entry onto the Property by Buyer or its representatives, agents or contractors, except to the extent that such expense, loss or damage arises out of any act or omission 

		
	
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of Seller or the mere discovery of any pre-existing condition at the Property. For the purposes of this Agreement, the term “Excluded Items” shall mean: (i) materials relating to Seller’s marketing efforts for the sale of the Property, including communications and agreements with other potential purchasers, (ii) projections and other internal memoranda or materials, (iii) appraisals, budgets, Seller’s strategic plans for the Property, internal analyses (including Seller’s analyses with respect to its leasing of space in the Property), computer software, and submissions relating to Seller’s obtaining of internal authorizations, and property condition and engineering reports, and (iv) attorney and accountant work product, and all other materials subject to any legal privilege in favor of Seller.

(ii)Within five (5) business days after the Effective Date, Seller shall deliver to Buyer copies of the following items and materials to the extent such items and materials are in Seller’s possession or control and are not Excluded Items: the Leases, the Operating Contracts, Seller’s most recent title insurance policy for the Property, Seller’s most recent survey of the Property, all existing zoning reports or other zoning information with respect to the Property, all existing environmental reports with respect to the Property, and all governmental approvals. In addition, except for Excluded Items, Seller shall deliver to Buyer copies of any other items reasonably requested by Buyer to the extent the same are in Seller’s possession or control.

(iii)If the results of the inspections performed by or on behalf of Buyer pursuant to this Article 6(a) shall be unsatisfactory to Buyer in any respect, or if Buyer otherwise determines not to proceed to Closing, in each case as determined by Buyer in its sole and absolute discretion, Buyer shall have the right to terminate this Agreement at any time on or before 5:00 p.m. local time at the Property on the forty-fifth (45th) day of the Due Diligence Period (the “Due Diligence Expiration Date”) by giving written notice thereof to Seller, whereupon the Deposit shall be refunded to Buyer and neither party shall have any further obligations to the other hereunder, except for those obligations and liabilities of Buyer or Seller which expressly survive the Closing or the earlier termination of this Agreement. In the event Buyer fails to terminate this Agreement by the Due Diligence Expiration Date, Buyer shall be deemed to have waived any objection to the Due Diligence Items and the condition of the Property.

(b)Title and Survey Matters

(i)Promptly following the Effective Date, Buyer shall order (i) a commitment by the Title Company to issue an ALTA 2006 Owner’s Policy with respect to the fee simple interest in the Property in the full amount of the Purchase Price (the “Title Commitment”), together with complete and legible copies of all instruments and documents referred to therein as exceptions to title, and (ii) an ALTA survey (or an update to the Seller’s existing survey) with respect to the Property from a licensed surveyor in the jurisdiction in which the Property is located (the “Survey”). Buyer shall have the right from time to time to order such updates or supplements to the Title Commitment and the Survey as Buyer deems necessary. Buyer shall instruct each of the Title Company and the Surveyor to deliver copies of the Title Commitment and the Survey, and any supplements or updates thereto, to Seller.

(ii)At least five (5) business days prior to the Due Diligence Expiration Date, Buyer shall notify Seller of any matters identified in the Title Commitment or shown on the Survey (or any supplements or updates thereto) which Buyer finds objectionable in its sole and absolute discretion. Seller shall have two (2) business days from its receipt of a title objection notice from Buyer to notify Buyer in writing whether Seller commits to cause such objections to be removed from the land records or insured against (and with any matters proposed to be insured against by Seller or Title Company, in a manner satisfactory to Buyer in its sole discretion) at Closing, provided, however that Seller shall be obligated to remove or cause the removal from the land records of all Voluntary Liens at or prior to Closing. To enable Seller to make conveyance as herein provided, Seller may, at the time of delivery of the Deed, cause Escrow Agent to use the Purchase Price or any portion thereof to clear the title of any or all monetary liens and encumbrances, provided that all instruments so procured are recorded simultaneously with the delivery of said Deed or arrangements have been made for the subsequent recordation in accordance with usual conveyancing practices and the Title Company is ready, willing and able to issue the Title Policy to Buyer without any exceptions for such monetary liens and encumbrances. Except for Voluntary Liens, Seller shall have no obligation whatsoever to cure any title objections raised by Buyer.  If, for any reason, Seller is unable or unwilling to take such actions as may be required to remedy or remove from the land records any title objections (other than Voluntary Liens) raised by Buyer, Seller shall give Buyer notice thereof, it being understood and agreed that the failure of Seller to give such notice within two (2) business days after receipt of Buyer’s notice of objection shall be deemed an election by Seller not to remedy any such matters. If Seller shall be unable or unwilling (or has been deemed to be unwilling) to remedy any matters (other than Voluntary Liens which Seller shall be obligated to cure 

		
	
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or remove as provided herein) as to which Buyer has objected, Buyer may elect either (i) to terminate this Agreement by notice given to Seller by written notice on or before 5:00 p.m. local time at the Property on the Due Diligence Expiration Date, whereupon the Deposit shall be refunded to Buyer and neither party shall have any further obligations to the other hereunder, except for those obligations of Seller and Buyer which expressly survive the termination of this Agreement (the “Surviving Obligations”) or (ii) to proceed to Closing in accordance with the terms and conditions of this Agreement, notwithstanding such matter and without any abatement or reduction in the Purchase Price on account thereof.  If Buyer fails to terminate this Agreement by written notice given to Seller by the Due Diligence Expiration Date in accordance with the immediately preceding sentence, Buyer shall be deemed to have elected to proceed to Closing, such title objections which Seller is unable or unwilling (or has been deemed to be unwilling) to cure shall be deemed to be waived by Buyer and shall be deemed to be Permitted Exceptions.

(iii)At the Closing, Seller shall execute and deliver such affidavits and indemnities as the Title Company may reasonably require, including, without limitation, a so-called owner’s affidavit in such reasonable form as will permit the Title Company to issue the Title Policy without exceptions for parties-in-possession or mechanic’s liens and a so-called gap indemnity in such reasonable form as will permit the Title Company to release the Purchase Price to Seller prior to recording the Deed and the other applicable closing documents.

(c)Seller shall make the Property available at all reasonable times (but in no event during weekends, holidays and after 5:00 p.m. local time at the Property on weekdays) to Buyer and its agents, consultants and engineers for such inspections as Buyer deems appropriate, including for Buyer's engineering inspection(s), site evaluations, preparation of a Phase I Environmental Site Assessment (“Buyer’s Phase I Report”) and such other inspections and investigations as Buyer deems appropriate, subject to the following limitations: (i) Buyer hereby agrees to indemnify, defend, protect and hold all Seller Parties (defined in Article 6(d) below) harmless from and defend Seller Parties against, all loss, liability, claims, costs (including reasonable attorneys’ fees), liens and damages resulting from or relating to the activities of Buyer or its agents (excepting losses and liabilities arising from the mere discovery on the Property of conditions not caused by Buyer or its agents), (ii) Buyer shall provide Seller with evidence of at least $2,000,000 per occurrence for property damage, bodily or personal injury or death and naming Seller as an additional insured prior to entering the Premises, (iii) Buyer shall give Seller at least forty-eight (48) hours prior notice of any visit or investigation describing who will visit and the nature of such visit and/or investigation, (iv) Seller shall be entitled to have a representative present during any visits or investigations. Seller’s prior written consent shall be required prior to any tenant interview or other interaction with any tenants or licensees of the Property by Buyer or its agents, employees, consultants, and representatives, and Seller shall have the right to have a representative present during all tenant or licensee interviews or interactions.  Notwithstanding anything set forth in this Agreement to the contrary, no invasive or destructive tests (including, without limitation, air, soils, water samples and soils borings) or environmental samplings shall be conducted on or around the Property without Seller’s written consent, which may be granted or withheld by Seller in its sole and absolute discretion, and all investigations shall be subject to the rights of tenants and shall be done on an expeditious and efficient basis and in a manner which minimizes disruption to tenants. In the event this Agreement is terminated for any reason, Buyer shall either destroy or, at Seller’s request (and not otherwise) shall furnish Seller with copies of all environmental and engineering reports prepared by or for Buyer with respect to the Property.

(d)Except as set forth in this Agreement, the Property is being acquired by Buyer in “AS IS” condition and “WITH ALL FAULTS” existing as of the Closing Date. Buyer acknowledges that it will be acquiring the Property on the basis of its own investigations. Except as expressly set forth in this Agreement, no representations or warranties have been made or are made and no responsibility has been or is assumed by Seller or by any officer, director, member, manager, person, firm, agent, advisor, trustee or representative acting or purporting to act on behalf of Seller (collectively, the “Seller Parties”) as to condition or repair of the Property or the value, expense of operation, or income potential thereof, the reliability of any information furnished to Buyer or as to any other fact or condition which has or might affect the Property or the condition, repair, value, expense of operation or income potential of the Property or any portion thereof. Except with respect to a breach by Seller of any representation or warranty expressly contained herein, Buyer hereby waives, releases and forever discharges all Seller Parties and any affiliate of the Seller Parties of and from any and all claims, actions, causes of action, demands, rights, damages, liabilities and costs whatsoever, direct or indirect, known or unknown, which Buyer now has or which may arise in the future, against Seller or any such other parties related in any way to the Property. Except with respect to a breach by Seller of any representation or warranty expressly contained herein, Buyer hereby agrees not to assert any 

		
	
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claim for contribution, cost recovery or otherwise against Seller or any such affiliate relating directly or indirectly to the physical or environmental condition of the Property, whether known or unknown, including, without limitation, the existence of “Oil” or “Hazardous Materials” on or under the Property as such terms are defined in M.G.L. Chapter 21E (“Chapter 21E”) and the Massachusetts Contingency Plan, 310 CMR 40.0000 (the “MCP”).  The parties agree that all understandings and agreements heretofore made between them or their respective agents or representatives are merged in this Agreement and the Exhibits hereto annexed, which alone fully and completely express their agreement, and that this Agreement has been entered into after full investigation, or with the parties satisfied with the opportunity afforded for investigation, neither party relying upon any statement or representation by the other unless such statement or representation is specifically embodied in this Agreement or the Exhibits annexed hereto. Buyer acknowledges that Seller has required Buyer to inspect fully the Property and investigate all matters relevant thereto, and, except with respect to information provided and certified to by Seller to Buyer, to rely solely upon the results of Buyer’s own inspections or other information obtained or otherwise available to Buyer, provided that the foregoing shall not diminish Buyer’s rights with respect to any representations or warranties expressly made by Seller in this Agreement.

(e)In the event that Buyer’s due diligence reveals any condition of the Property that in Buyer’s judgment requires disclosure to any governmental agency or authority, Buyer shall immediately notify Seller thereof. In such event, Seller, and not Buyer or anyone acting on Buyer’s behalf, shall make such disclosures as required by Law, as determined by Seller in its sole and absolute discretion.

The indemnification obligations set forth in this Article 6 shall survive the Closing or earlier termination of this Agreement.

ARTICLE 7. Additional Conditions to Closing: Without limiting any other conditions to Buyer's obligations to close set forth in this Agreement, the obligations of Buyer under this Agreement are subject to the satisfaction at the time of Closing of each of the following conditions (any of which may be waived in whole or in part by Buyer at or prior to Closing):

	
 
	
(i)
	
It shall be a condition precedent to Buyer’s obligation to close the transaction contemplated by this Agreement that Buyer shall have received, on or before Closing, estoppel certificates dated no earlier than thirty (30) days prior to the originally-scheduled Closing, complying with the requirements of this Article 7 (each a “Tenant Estoppel Certificate”) from all of the tenants who, together with the Buyer, lease at least eighty percent (80%) of the Building as of the Effective Date (“Tenant Estoppel Requirement”), provided however, Seller shall not be required to deliver a Tenant Estoppel Certificate from the Buyer. Notwithstanding the foregoing, Seller shall use commercially reasonable efforts to have all tenants provide Tenant Estoppel Certificates even if the Tenant Estoppel Certificate Requirement is satisfied. Each Tenant Estoppel Certificate shall be substantially in the form of Exhibit K attached hereto (provided that any Tenant Estoppel Certificate shall be acceptable if in the form or containing the information required by the applicable Lease) and shall not disclose (x) any matters which are inconsistent in any material respect with the terms and provisions of the Leases or the representations and warranties of Seller made in Article 11 hereof, or (y) any uncured default(s) by the tenants or the Seller under the Lease(s). In the event any Tenant Estoppel Certificate does not meet the requirements of (x) and (y) above based on a monetary obligation of Seller, Seller

may, but shall not be obligated to, elect to provide to Buyer, at Closing, a credit against the Purchase Price in an amount equal to the amount required to cure such monetary obligation.  In no event shall Seller be obligated to deliver updates to any Tenant Estoppel Certificate. Buyer agrees not to unreasonably object to or withhold Buyer’s consent to any alternate estoppel form or changes made by any tenant to the form attached hereto so long as such estoppel  does not disclose (a) any matters which are inconsistent in any material respect with the terms and provisions of the Leases or the representations and warranties of Seller made in Article 11 hereof, or (b) any uncured default(s) by the tenant or the Seller under such lease and Buyer shall not object to any provision in a Tenant Estoppel Certificate which (x) is qualified to tenant’s knowledge, or (y) was disclosed to Buyer prior to the Due Diligence Expiration Date. Seller shall prepare the Tenant Estoppel Certificates subject to Buyer’s review and approval (provided that if Buyer has not provided any comments to the Tenant Estoppel Certificates or approved same in writing within three (3) business days after its receipt of same from 

		
	
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Seller, Buyer shall be deemed to have approved the Tenant Estoppel Certificates), and promptly after the Due Diligence Expiration Date (if Buyer has not elected to terminate this Agreement), distribute the estoppel certificates to each of the tenants under the Leases. Seller shall promptly provide Buyer with copies of all comments to the Tenant Estoppel Certificates received from tenants. If any Tenant Estoppel Certificate provided to Buyer prior to Closing contains any information that is materially inconsistent with any Seller representation and is accepted by Buyer, in Buyer’s sole discretion, such Seller representation shall be deemed modified by the information contained in such Tenant Estoppel Certificate. If Buyer fails to furnish Seller with a written notice of disapproval (which notice, in order to be effective, must include Buyer’s specific objections), within three (3) business days from the date of Seller’s delivery thereof, such Tenant Estoppel Certificate will be deemed approved by Buyer. Seller’s failure to fulfill the Estoppel Certificate Requirement shall constitute a failure of a condition precedent hereunder but shall not constitute a default by Seller under this Agreement.

	
 
	
(ii)
	
All of the representations and warranties made by Seller set forth in this Agreement or any Exhibit attached hereto shall be true and correct in all material respects as of the Closing Date, with the same force and effect as if made on and as of such date, subject to changes that: (y) are caused by the acts or omissions of Buyer or its agents or affiliates; or (z) are a result of the operation of the Property in the normal course of business since the Effective Date and in accordance with the terms of this Agreement and do not, individually or in the aggregate, have a material adverse effect on the value or operation of the Property, provided that any such changes are disclosed by Seller to Buyer in writing prior to the Closing Date; and

	
 
	
(iii)
	
Seller shall have performed, observed, and complied in all material respects with all covenants and agreements required by this Agreement to be performed by Seller at or prior to Closing.

If any condition set forth herein is not fully satisfied on or before the Closing Date, Seller may elect to attempt to satisfy any such unsatisfied condition, and if Seller so elects, Seller shall have until the date occurring thirty (30) days after the Closing Date in which to satisfy such condition, and the Closing Date shall be extended for such period.

ARTICLE 8. Default: (a) If Buyer discovers prior to Closing that Seller shall have made any representation or warranty herein that is untrue, incorrect or misleading in any material respect, or if Seller fails to fulfill or perform any of its obligations hereunder to be performed by Seller at or prior to the Closing, subect to Seller’s right to extend the closing as set forth in Article 7 above, Buyer shall have any one of the following rights and remedies:

	
 
	
(i)
	
Buyer shall have the right to terminate this Agreement by written notice to Seller, in which event the Deposit shall be paid to Buyer, and all obligations of the parties under this Agreement shall terminate except for the Surviving Obligations; or

	
 
	
(ii)
	
Buyer shall have the right to waive the breach or default and proceed to Closing in accordance with the provisions of this Agreement without reduction of the Purchase Price.

In the event that Buyer fails to terminate the Agreement pursuant to clause 8(a)(i) above, Buyer shall automatically be deemed to have waived the breach or default pursuant to clause 8(a)(ii) above and shall be required to proceed to Closing. If Buyer discovers following the Closing but prior to the expiration of the Survival Period (as defined below) that Seller made any representation or warranty herein which is untrue or misleading in any material respect, or if Seller shall fail to perform any of its Surviving Obligations, then Buyer shall have all rights and remedies available to it, at law or in equity, provided however, Seller’s liability therefor shall be limited to the Claim Cap (as defined below) and no claim may be made against Seller after the expiration of the Survival Period.

		
	
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(b)IN THE EVENT THE SALE OF THE PROPERTY IS NOT CONSUMMATED BECAUSE OF A BREACH OR UNCURED DEFAULT UNDER THIS AGREEMENT ON THE PART OF BUYER, BUYER AND SELLER AGREE THAT IT WOULD BE EXTREMELY DIFFICULT AND IMPRACTICAL TO DETERMINE THE AMOUNT AND EXTENT OF DETRIMENT TO SELLER. BUYER AND SELLER THEREFORE AGREE THAT, IF BUYER DEFAULTS HEREUNDER, BUYER’S DEPOSIT IS A REASONABLE ESTIMATE OF SELLER’S DAMAGES AND THAT SELLER SHALL BE ENTITLED TO SAID SUM AS LIQUIDATED DAMAGES AND NOT AS A PENALTY, WHICH SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY, EITHER AT LAW OR IN EQUITY, AS A RESULT OF SUCH DEFAULT. IN SUCH EVENT, ESCROW AGENT SHALL UPON WRITTEN DEMAND BY SELLER WITHOUT JOINDER OF BUYER, IMMEDIATELY DELIVER THE DEPOSIT TO SELLER. TO SIGNIFY THEIR AWARENESS AND AGREEMENT TO BE BOUND BY THE TERMS AND PROVISIONS OF THIS SECTION, BUYER AND SELLER HAVE SEPARATELY INITIALED THIS SECTION.

ARTICLE 9. Entire Agreement Herein:  The parties understand and agree that their entire agreement is contained herein and that no warranties, guarantees, statements, or representations shall be valid or binding on a party unless set forth in this Agreement. It is further understood and agreed that all prior understandings and agreements heretofore had between the parties are merged in this Agreement which alone fully and completely expresses their agreement and that the same is entered into after full investigation, neither party relying on any statement or representation not embodied in this Agreement. This Agreement may be changed, modified, altered or terminated only by a written agreement signed by the parties hereto.

ARTICLE 10. Damage or Destruction: Condemnation: (a) If after the expiration of the Due Diligence Expiration Date, the Improved Property shall have been damaged by fire or other casualty prior to the Closing, such that Seller’s reasonable estimate of the cost to repair the same exceeds ten percent (10%) of the Purchase Price (a “Material Casualty”), then unless Seller has previously repaired or restored such Improved Property to its former condition prior to the Closing Date, then, at Buyer’s sole option, Seller shall either (i) pay over or assign to Buyer, on delivery of the Deed all physical damage proceeds of any insurance policies payable to Seller, less any amounts reasonably expended by Seller for partial restoration, with a credit to Buyer for the amount of any deductible, or (ii) direct Escrow Agent to return the Deposit and accrued interest thereon to Buyer in which case, except for the Surviving Obligations, all other obligations of the parties hereto shall cease and this Agreement shall terminate and be without further recourse or remedy to the parties hereto.

(b)If after the expiration of the Due Diligence Expiration Date, all or a material part of the Improved Property is taken by condemnation, eminent domain or by agreement in lieu thereof prior to the Closing such that Seller’s reasonable estimate of the loss of value of the remaining applicable Improved Property exceeds an amount equal to ten percent (10%) of the Purchase Price (a “Material Taking”), Buyer may, at Buyers’ sole option, either (i) terminate this Agreement (in which event Buyer shall be entitled to a return of the Deposit, and, except for the Surviving Obligations, all other obligations of the parties hereto shall cease and this Agreement shall terminate and be without further recourse or remedy to the parties hereto) or (ii) close title to the Property in accordance with the terms hereof, without reduction in the Purchase Price, together with an assignment of Seller's rights to any award paid or payable by or on behalf of the condemning authority.  If Seller has received payments from the condemning authority and if Buyer elects to close title to the Property, Seller shall credit the amount of said payments against the Purchase Price at the Closing.

(c)With respect to any Material Casualty or Material Taking, Buyer shall be deemed to have elected to proceed under Article 10(a)(i) and 10(b)(ii) above respectively and as applicable, unless, within ten (10) days from the date of Seller’s delivery of written notice of such Material Casualty or Material Taking to Buyer, Buyer provides Seller with written notice that Buyer has elected to terminate this Agreement as provided for in this Article 10.

ARTICLE 11. Representations, Warranties and Covenants of Seller: (a) In order to induce Buyer to enter into this Agreement and to consummate the purchase of the Property,

Seller hereby represents and warrants to Buyer as of the Effective Date and as of the Closing Date (updated to reflect the then state of facts) as follows:

		
	
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(i)
	
Seller is, and on the Closing Date shall be, duly and validly formed and existing and governed by the laws of the State of its organization and, if necessary, registered to do business in the jurisdiction where the Property is located. Seller has all requisite power and authority under the laws of such State and its organizational and/or charter documents to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.

	
 
	
(ii)
	
Seller has taken all necessary action to authorize the execution, delivery and performance of this Agreement and each document to be delivered by Seller hereunder, and upon the execution and delivery of this Agreement and any such document, this Agreement and each such document shall constitute the valid and binding obligations and agreements of Seller, enforceable against Seller in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors.

	
 
	
(iii)
	
None of the execution, delivery or performance of this Agreement or any other document to be executed, delivered or performed by Seller hereunder, nor compliance with the terms and provisions hereof or thereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon the Property pursuant to the terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Seller or the Property is bound.

	
 
	
(iv)
	
There are no proceedings pending or, to Seller’s knowledge, threatened against it in any court or before any governmental authority or any tribunal which, if adversely determined, would have a material adverse effect on its ability to purchase the Property or to carry out its obligations under this Agreement.

	
 
	
(v)
	
Exhibit C attached hereto (the "List of Leases") is, in all material respects, a correct listing of all Leases at the Property in effect as of a date not earlier than five (5) business days preceding the Effective Date.  Other than the Leases, Seller has not entered into, and the Property is not subject to, any contract or agreement with respect to the occupancy of the Property (or any portion thereof). To Seller’s knowledge, there are no defaults currently existing under the Lease and there are no facts or circumstances which with the giving of notice, the passage of time or both would constitute a default by Buyer under the Lease.

	
 
	
(vi)
	
Exhibit I attached hereto is a complete list of all service, supply and maintenance agreements with respect to or affecting the Property as of the Effective Date (herein collectively referred to as the "Operating Contracts"). Other than the Operating Contracts, Seller has not entered into, and the Property is not subject to, any contract or agreement with respect to the management, operation or maintenance of the Property (or any portion thereof) or otherwise affecting the Property (or any portion thereof). The copies of the Operating Contracts heretofore delivered (or to be delivered) by Seller to Buyer are (or will be) true, correct and complete copies thereof; the Operating Contracts have not been amended except as evidenced by amendments similarly delivered. Each of the Operating Contracts is in full force and effect on the terms set forth therein, and, to Seller’s knowledge, except as disclosed to Buyer in writing, there are no defaults under the Operating Contracts, or circumstances which with the giving of notice, the passage of time or both, would constitute a default by any party thereunder.

	
 
	
(vii)
	
Other than the Leases, the Operating Contracts and any Permitted Exceptions which are approved (or deemed to have been approved) by Buyer, Seller has not entered into any contract or agreement with respect to the Property which will be binding on Buyer or the Property after the Closing.

	
 
	
(viii)
	
Seller has not received any written notice alleging that the Property violates any Law, and, to Seller’s knowledge, the Property does not violate any Law in any material respect.  To Seller’s knowledge, there are presently in effect all material licenses, permits and other authorizations necessary for the current use, occupancy and operation thereof.

		
	
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(ix)
	
No investigation, action or proceeding is pending and, to Seller’s knowledge, no action or proceeding is threatened and no investigation looking toward any action or proceeding has begun, which involves any condemnation or eminent domain proceeding against any part of the Property, or which involves any modification or realignment of any intersection, street or highway adjacent to the Property or which could affect the present use or zoning of the Property.

	
 
	
(x)
	
To Seller’s knowledge, no taxes or special assessments of any kind (special, bond or otherwise) are or have been levied with respect to the Property, or any portion thereof, which are outstanding or unpaid, other than amounts not yet due and payable, and no such assessments or levies are pending or threatened. Seller has not received any written notice of, and has no knowledge of, any proposed or pending increase in the assessed valuation or rate of taxation of any or all of the Property from that reflected on such real estate tax bills.  To Seller’s knowledge, no Tax Proceedings are currently pending or subject to appeal or will be currently pending or subject to appeal as of the Closing Date.

	
 
	
(xi)
	
No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, or other proceedings are pending or, to Seller’s knowledge, threatened against Seller, nor are any such proceedings contemplated by Seller, nor to Seller’s knowledge do any grounds exist for any such proceedings to be instituted against Seller. Seller has not made a general assignment for the benefit of creditors, filed any voluntary petition in bankruptcy, or admitted in writing its inability to pay its debts as they come due or made an offer of settlement, extension or composition to its creditors generally, and Seller has received no written notice of and has no knowledge of (i) the filing of any involuntary petition by Seller’s creditors, (ii) the appointment of a receiver to take possession of all, or substantially all, of Seller’s assets, or (iii) the attachment or other judicial seizure of all, or substantially all, of Seller’s assets.

	
 
	
(xii)
	
To Seller’s knowledge, all due diligence information and other items and documents delivered by or on behalf of Seller to Buyer pursuant to this Agreement, are true copies of what they purport to be, without any representation or warranty with respect to the accuracy of same.

	
 
	
(xiii)
	
Seller has no employees, and there are no employment agreements, union agreements, benefit agreements, pension plans, or collective bargaining agreements, at or otherwise affecting the Property to which Seller is bound which will survive the Closing or for which Buyer will be responsible for or have any liability for after the Closing.

	
 
	
(xiv)
	
There are no capital improvement projects at the Property presently being performed by or at the direction of Seller, or any of its agents or sub-contractors, other than budgeted maintenance required in the ordinary course of business, and no material structural portion of the Property has been damaged or destroyed by fire, storm or other casualty that remains unrepaired.

	
 
	
(xv)
	
Seller is not a “foreign person” within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

	
 
	
(xvi)
	
Neither Buyer nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and to their knowledge none of their respective employees, officers, directors, representatives or agents, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action.

		
	
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(b)Any representations and warranties made to the knowledge of Seller, shall be based solely on the current, actual (as opposed to constructive or imputed) knowledge of Brandon D. Kelly and shall not be construed to refer to the knowledge of any other partner, beneficial owner, officer, employee or agent of Seller, nor shall such term impose any duty to investigate the matters to which such knowledge, or absence thereof, pertain. There shall be no personal liability on the part of such person arising out of any representations or warranties made herein or otherwise. If after the Due Diligence Expiration Date but prior to the Closing, Buyer first obtains knowledge (through disclosure by Seller or otherwise) that any of the representations or warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, Buyer shall give Seller written notice thereof within five (5) business days of obtaining such knowledge (but, in any event, prior to the Closing). In such event, Seller shall have the right (but not the obligation) to attempt to cure such misrepresentation or breach and shall, at its option, be entitled to a reasonable adjournment of the Closing (not to exceed thirty (30) days) for the purpose of such cure. If Seller elects to attempt to so cure but is unable to so cure any misrepresentation or breach of warranty, then Buyer, as its sole remedy for any and all such materially untrue, inaccurate or incorrect representations or warranties, shall elect either (i) to waive such misrepresentations or breaches of representations and warranties and consummate the transaction contemplated hereby without any reduction of or credit against the Purchase Price, or (ii) if Buyer first obtained knowledge of such material misrepresentation or breach of warranty after the expiration of the Due Diligence Expiration Date, to terminate this Agreement in its entirety by written notice given to Seller on the Closing Date, in which event this Agreement shall be terminated, the Deposit shall be returned to Buyer and, thereafter, neither party shall have any further rights or obligations hereunder except for the Surviving Obligations.

(c)Seller agrees that, following the Closing, it shall be liable for the direct, but not consequential or punitive, damages resulting from any breach of its representations and warranties expressly set forth in this Article 11 of this Agreement and shall indemnify Buyer for any direct, but not consequential or punitive, damages suffered by Buyer resulting from any breach of its representations and warranties expressly set forth in this Article 11 of this Agreement; provided, however, that: (i) the total liability of Seller for all such breaches, indemnity obligations and any matters relating thereto or under any law applicable to the Property or this transaction shall not, in the aggregate, exceed Three Hundred Thousand and 00/100 Dollars ($300,000.00) (the “Claim Cap”); (ii) such representations and warranties are personal to Buyer and may not be assigned to or enforced by any other Person, other than to an assignee of Buyer in accordance with this Agreement; and (iii) the representations, warranties and other obligations of Seller set forth in this Agreement or in any document or certificate delivered by Seller in connection herewith shall survive the Closing for a period of nine (9) months (the “Survival Period”), and no action or proceeding thereon shall be valid or enforceable, at law or in equity, if a legal proceeding is not commenced within that time. Notwithstanding the foregoing, however, if the Closing occurs, Buyer hereby expressly waives, relinquishes and releases any right or remedy available to it at law or in equity, under this

Agreement or otherwise to make a claim against Seller for damages that Buyer may incur, or to rescind this Agreement and the transactions contemplated hereby, as the result of any of Seller’s representations or warranties in this Agreement or any document executed by Seller in connection herewith being untrue, inaccurate or incorrect if Buyer knew or is deemed to know that such representation or warranty was untrue, inaccurate or incorrect at the time of the Closing. Buyer agrees that, following the Closing, no claim may or shall be made for any alleged breach of any representations or warranties made by Seller under or relating to this Agreement unless the amount of such claim or claims, individually or in the aggregate, exceeds Ten Thousand and 00/100 Dollars ($10,000.00) (in which event the full amount of such valid claims against Seller shall be actionable up to, but not in excess of, the Claim Cap) (the “Floor Amount”).

(d)From and after the Effective Date until the Closing or the earlier termination of this Agreement, Seller hereby covenants with Buyer as follows:

 

(i)To use commercially reasonable efforts to comply in all material respects with all federal, state, county, municipal and other governmental statutes, ordinances, by-laws, rules, regulations or any other legal requirements applicable to the Property, including, without limitation, those relating to the environment, zoning, construction, occupancy, occupational health and safety or fire safety, but specifically excluding the Americans With Disabilities Act, 42 U.S.C. §12101 (et seq.), the regulations and guidelines issued pursuant thereto; provided, however, in no event shall Seller be obligated to perform any capital improvements in connection with this provision.

		
	
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(ii)To comply with all of the terms, covenants and conditions contained in the Leases, the Operating Contracts and any other agreement affecting the Property and to monitor compliance thereunder in a manner consistent with Seller’s current practices.

(iii)To promptly notify Buyer of any material change in the condition of the Property or of any event or circumstance which makes any representation or warranty of Seller to Buyer under this Agreement untrue or misleading in any material respect.

(iv)To not market the Property or otherwise solicit or accept any offers or inquiries regarding the Property, or entertain offers or take or enter into back-up offers or back-up sale contracts.

(v)To not commence any tax abatement, tax certiorari or similar tax proceedings for the reduction of the assessed valuation of the Property for any tax year or challenging the tax rates or other components used in determining real estate taxes.

(vi)To reasonably cooperate with Buyer, at no out-of-pocket cost or expense to Seller, with respect to all matters related to this Agreement.

ARTICLE 12. Operations:  (a) Between the date hereof and the Closing, Seller agrees that it will operate the Property in a good and businesslike fashion consistent with Seller’s current practices and to continue to maintain the Property in good working order and condition and in a manner consistent with Seller’s current practices, reasonable wear and tear and casualty excepted. Until the Closing Date, Seller shall maintain insurance on the Premises as currently insured, provided that Seller may make adjustments in Seller’s insurance coverage for the Property which are consistent with Seller’s general insurance program.

(b)Seller shall not remove any material item of the Personal Property from the Property unless the same is obsolete and is replaced by tangible personal property of equal or greater utility and value.

(c)Seller shall not, between the date hereof and the Closing, (i) grant any consent or waive any material rights under the Leases, (ii) terminate any Lease, or (iii) enter into a new lease, modify an existing Lease or renew, extend or expand an existing Lease (collectively and individually a “Lease Proposal”) in each case without the prior written approval of Buyer (which, once so approved, whether expressly or by non-response as set forth below, shall be deemed an “Approved New Lease,” and once executed, shall be included in the term “Lease” for all purposes under this Agreement), which may be withheld in Buyer’s sole discretion, but which shall be deemed granted if Buyer fails to respond to a request for approval within five (5) business days after receipt of the request therefor together with a copy of each Lease Proposal. Seller shall provide copies of all Lease Proposals to Buyer after the Effective Date but Buyer has no right to approve any Lease Proposal or any Lease prior to the Due Diligence Expiration Date. Seller agrees to furnish Buyer copies of any Approved New Lease signed prior to the Due Diligence Expiration Date promptly following receipt thereof. Notwithstanding the foregoing, Seller shall not be required to obtain Buyer’s consent or approval to (i) enter into any modification, renewal, extension or expansion of any Lease, or to grant any consent under any Lease, to the extent that the same is required pursuant to the applicable terms of the Lease; and

(ii) exercise any recapture or termination rights expressly provided for in any Lease.

(d)Seller shall not without the prior written consent of Buyer, which consent shall not be unreasonably withheld, enter into any contract (other than leases as provided above) which could bind Buyer or the Property after the Closing unless the same may be canceled on thirty (30) days’ notice without payment of any penalty or termination fee. Failure of Buyer to respond within five (5) business days of written request from Seller for consent shall be deemed consent by Buyer.

		
	
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(f)By not later than 5:00 p.m. local time at the Property on the Due Diligence Expiration Date, Buyer shall provide written notice to Seller identifying the Operating Contracts, if any, Buyer elects to assume at Closing (to the extent the same are assumable). At Closing, Seller shall send notices of termination of all Operating Contracts which Buyer has not elected to assume which by its terms may be terminated by notice without cost to Seller or the payment of any penalty or possible damages or liability for early termination. Any Operating Contract for which notice of termination has been given, as requested by Buyer, but which will not terminate until the expiration of any notice period, shall be assigned to Buyer, and, except as set forth below, all other Operating Contracts shall be assigned to Buyer. Any Operating Contracts requiring the consent of the vendor to assign such contract shall not be assigned to Buyer (unless the vendor has consented to the assignment and Buyer has paid, or credited to Seller, any fee related to such consent and assignment, if any), but shall be terminated by Seller as of Closing. Buyer shall pay any termination fee (or credit such amount to Seller at Closing) which is due upon the termination of any Operating Contract that Buyer may request pursuant to this paragraph.

ARTICLE 13.  Apportionment of Taxes and Other Charges:

(a)All normal and customarily proratable items, including without limitation, personal property taxes, utility bills (except as hereinafter provided), collected rents and other income, Operating Contract payments (under Operating Contracts assumed by Buyer including those for which notice of termination has been given pursuant to Article 12(f) but have not yet expired), and license and permit fees shall be prorated as of the Apportionment Time (defined in the succeeding sentence), Seller being charged and credited for all of the same relating to the period up to the Closing Date and Buyer being charged and credited for all of the same relating to the period on and after the Closing Date. As used herein, the term “Apportionment Time” shall mean 11:59 p.m. local time at the Property on the date immediately prior to the Closing Date.

(b)Real estate, personal property and ad valorem taxes for the year in which the Closing occurs will be prorated between Seller and Buyer as of the Apportionment Time on the basis of actual bills therefor, if available.  If such bills are not available, then such taxes and other charges shall be prorated on the basis of the most current available tax bills and, thereafter, promptly re-prorated upon the availability of actual bills for the period. If any proceeding to determine the assessed value of the Real Property or the real estate taxes payable with respect to the Real Property has been commenced before the Due Diligence Expiration Date and shall be continuing as of the Closing Date, Seller shall be authorized to continue to prosecute such proceeding. Any costs or expenses payable to any tax consultant or tax appeal attorney and any tax savings from abatement or reduced assessment shall be allocated and apportioned between Buyer and Seller in accordance with their share of ownership during such tax period. Buyer agrees to cooperate as reasonably requested with Seller and to execute any and all documents reasonably requested by Seller in furtherance of the foregoing.

(c)No proration shall be made in relation to delinquent rents existing, if any, as of the Closing Date.  In adjusting for uncollected rents, no adjustment shall be made in Seller's favor for rents which have accrued and are unpaid as of Closing, but Buyer shall pay Seller such accrued and unpaid rents, as and when collected by Buyer, it being agreed that Buyer shall not be deemed to have collected any such arrearages attributable to the period prior to Closing until such time as the tenant is current in the payment of all rents accruing after the Closing. Buyer agrees to bill tenants of the Property for all past due rents and to take any additional reasonable actions requested by Seller to collect rents that are accrued but unpaid as of the Closing, provided that Buyer shall not be obligated to incur any out-of-pocket third party expenses in connection with such actions and Buyer shall not be obligated to take any action to terminate a tenancy. Seller reserves the right to bring suit against tenants of the Property to collect for accrued but unpaid rents owed Seller as of the Closing Date, but Seller may not, subsequent to Closing, bring suit for possession of the premises occupied by such tenants.

(d)Final readings and final billings for utilities will be made if possible as of the Closing Date, in which event no proration shall be made at the Closing with respect to utility bills. Otherwise, a proration shall be made based upon the parties' reasonable good faith estimate and a re-adjustment made within sixty (60) days after Closing.

(e)No proration will be made in relation to insurance premiums and the insurance policies will not be assigned to Buyer. Seller shall be entitled to receive a return of all deposits presently in effect with the utility providers, and Buyer shall be obligated to make its own arrangements for deposits with the utility providers.

		
	
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(f)Buyer shall receive a credit for all cash Security Deposits, and if required by law, with interest thereon. With respect to any Security Deposits which are other than cash, Seller shall deliver to Buyer at the Closing the original documentation related thereto with such transfer and assignment documentation as may be necessary, including without limitation, the original letter of credit, if applicable. Buyer will indemnify, defend, and hold Seller harmless from and against all demands and claims made by tenants arising out of the transfer or disposition of any Security Deposits to the extent credited to Buyer as provided above and will reimburse Seller for all reasonable attorneys’ fees incurred or that may be incurred as a result of any such claims or demands as well as for all loss, expenses, verdicts, judgments, settlements, interest, costs and other expenses incurred or that may be incurred by Seller as a result of any such claims or demands by tenants.

(g)CAM Charges. Notwithstanding the foregoing, if any portion of the Rent, such as operating cost pass-throughs, common area expenses or additional rent and charges are paid on an estimated basis ("Estimated Rent Payment"), then the Estimated Rent Payment shall be prorated at Closing based on such estimates. At such time as Buyer is required to provide to the tenant a final reconciliation of the Estimated Rent Payment for the year of the Closing (but no later than March 31, [TO BE INSERTED]), Buyer will provide a copy of same to Seller.  If such final reconciliation shows that Seller owes Buyer additional sums, Seller shall deliver such amount to Buyer within ten (10) days after Seller's receipt of such final reconciliation, and if the final reconciliation shows that Buyer owes Seller additional sums, Buyer shall pay such amount to Seller within ten (10) days after Buyer's receipt of such payments from the tenants.  Buyer shall be responsible for and conduct any audit of the Estimated Rent Payments that a tenant may request with respect to all years prior to the Closing, and responsible for the payment of any amounts to which a tenant may be entitled as a result of such audit.

(h)Leasing Costs. Seller shall pay (or provide Buyer a credit at Closing for) all leasing commissions and tenant improvement costs (“Lease Costs”) that are due and payable for the current lease term of any Lease.  Buyer shall assume and be responsible to pay all Lease Costs that first arise or accrue on or after the expiration of the current term of any Lease, including as a result of (X) new Leases executed after the Effective Date in accordance with this Agreement, (Y) Lease extensions, renewals and expansions pursuant to existing Leases exercised by the tenants thereunder after the Effective Date, and (Z) amendments or modifications to, or renewals of, existing Leases entered into after the Effective Date in accordance with this Agreement.

(i)A detailed statement shall be prepared at the Closing setting forth the manner of computation of the aforesaid pro-ration adjustments.

(j)The provisions of this Article 13 shall survive the Closing for a period of ninety

(90) days at which time there will be a one-time readjustment, if necessary; provided, however, with respect to ad valorem taxes, readjustments shall be made during the thirty (30) day period following the date final tax bills for the year of Closing are received by Buyer and with respect to Estimated Rent Payments, Article 13(g) shall control.

ARTICLE 14. Broker: Each party represents hereby to the other that it dealt with no broker in the consummation of this Agreement and each party indemnifies the other from any claim arising from the failure of such representation by the indemnifying party, except for the broker fee to be paid by Seller to Jones Lang LaSalle pursuant to a separate agreement.

ARTICLE 15. Recording: It is agreed hereby that this Agreement shall not be filed for recording with any other governmental body.

ARTICLE 16. Notices. Any notice, consent or approval required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given upon (i) hand delivery, (ii) one business day after being deposited with Federal Express or another reliable overnight courier service for next day delivery, (iii) upon electronic signature (it being agreed that PDF email shall have the same force and effect as an original signature for all purposes), or, (iv) two (2) business days after being deposited in the United States mail, registered or certified mail, postage prepaid, return receipt required, and addressed as follows:

		
	
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To Seller:
	
Cherry Hill Drive Owner LLC c/o RJ Kelly Company
	
 

55 Cambridge Street

Burlington, MA 01803 Attn: [TO BE INSERTED]

Phone: [TO BE INSERTED] Email: [TO BE INSERTED]

 

 

with a copy to:

 

[TO BE INSERTED]

 

To Buyer: 

Abiomed, Inc.

22 Cherry Hill Drive

Danvers, MA 01923 

Attention: Steve McEvoy 

Phone: 978-777-5410

Email: smcevoy@abiomed.com

 

with a copy to:

 

Ropes & Gray LLP

Prudential Tower, 800 Boylston Street 

Boston, MA 02199-3600

Attention: John M. Creedon 

Phone: 617-951-7981

Email: john.creedon@ropesgray.com

	
Title Company:
	
[ TO BE INSERTED]

or such other address as either party may from time to time specify in writing to the other. Either party’s respective legal counsel may provide notices on behalf of such party. Unless otherwise specifically provided for herein, notices required to be delivered pursuant to the terms and provisions of this Agreement must be delivered by 5:00 p.m. local time at the Property to whichever party is the intended recipient to be considered timely delivered pursuant to such term or provision of this Agreement.

ARTICLE 17. Captions: The captions in this Agreement are inserted only for the purpose of convenient reference and in no way define, limit or prescribe the scope or intent of this Agreement or any part hereof.

ARTICLE 18. Successors and Assigns: (a) This Agreement shall be binding upon the parties hereto and their respective successors and assigns.

(b)Subject to Buyer's right to designate a nominee, in which Buyer holds all of the beneficial interest, to take title to the Premises, in which case Buyer shall remain fully liable hereunder, Buyer may not assign this Agreement nor any of the rights or benefits thereof including, without limitation, the benefit of the representations and warranties contained in Article 11 hereof, to any third party either before or after the Closing without the written consent of Seller which may be given or withheld in Seller’s sole discretion, and any such unauthorized attempted assignment shall be null and void. In accordance with the terms of this paragraph, Buyer shall send written notice to Seller of its designated nominee, if any, no later than five (5) business days prior to Closing.

		
	
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ARTICLE 19. Closing Costs: Except as hereinafter specifically provided, Seller and Buyer shall allocate all closing costs between them in accordance with standard practice in the jurisdiction where the Property is located. Seller and Buyer shall be responsible for preparing such documents as it is obligated to deliver pursuant to Article 5 hereof and for its own legal, consultant and agent expenses.  Seller and Buyer agree to allocate closing costs as follows:

	
 
	
(a)
	
The transfer tax shall be paid by Seller.

	
 
	
(b)
	
All title examination costs and the cost of the base premium for the Title Policy in the amount of the Purchase Price and additional title premiums, costs or charges for extended coverage or endorsements to the Title Policy shall be paid by Buyer.

	
 
	
(c)
	
The cost of the Survey, and any update, revision or re-certification of the Survey, shall be paid by Buyer.

	
 
	
(d)
	
The cost of preparation and recordation of any releases and termination statements required to clear Voluntary Liens from title to the Property shall be paid by Seller.

	
 
	
(e)
	
The cost of recordation of the Deed and all other recording costs other than those described in Article 19(d) above shall be paid by Buyer.

	
 
	
(f)
	
Escrow charges, if any, shall be split equally between Seller and Buyer.

ARTICLE 20. Governing Law: The laws of the State where the Property is located shall govern the validity, construction, enforcement and interpretation of this Agreement.

ARTICLE 21. Multiple Counterparts: This Agreement may be executed in any number of identical counterparts. If so executed, each of such counterparts shall constitute this Agreement. In proving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. Execution and delivery of this Agreement by .pdf or other electronic format shall constitute valid execution and delivery and shall be effective for all purposes.

ARTICLE 22. Representations and Warranties of Buyer: Buyer hereby represents and warrants to Seller as of the date hereof and as of the Closing Date as follows:

(a)This Agreement and all documents executed by Buyer that are to be delivered to Seller at the Closing are, or at the time of Closing will be, duly authorized, executed and delivered by Buyer. This Agreement and such documents are, or at the Closing will be, legal, valid, and binding obligations of Buyer, and do not, and, at the time of Closing will not, violate any provisions of any agreement or judicial order to which Buyer is a party or to which it is subject.

(b)There are no proceedings pending or, to Buyer's knowledge, threatened against it in any court or before any governmental authority or any tribunal which, if adversely determined, would have a material adverse effect on its ability to purchase the Property or to carry out its obligations under this Agreement.

(c)Buyer acknowledges that it is experienced and sophisticated in the acquisition, development, management, leasing, ownership and operation of commercial real estate projects such as the Property and that, prior to the Due Diligence Expiration Date, it will have a full and complete opportunity to conduct such investigations, examinations, inspections and analyses of the Property as Buyer, in its absolute discretion, may deem appropriate.  Buyer further acknowledges that, except for Seller representations set forth in Article 11 of this Agreement, Buyer has not relied upon any statements, representations or warranties by Seller or any agent of Seller. Without limiting the foregoing, Buyer acknowledges and agrees that: (1) any environmental, physical condition or other reports provided to Buyer by Seller or its agents are provided without any representation or warranty of any kind, express or implied, as to the completeness or accuracy of the facts, presumptions, conclusions or other matters contained therein; (2) Buyer shall rely solely on its own investigations and on reports prepared by any consultants engaged by Buyer and not on any environmental, physical condition or other reports provided to Buyer by Seller or its agents.

		
	
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(d)Neither Buyer nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners, and to their knowledge none of their respective employees, officers, directors, representatives or agents, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action.

(e)Buyer is not, and is not acquiring the Property on behalf of or with the assets of,

(i) an “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, and its applicable regulations as issued by the Department of Labor and the Internal Revenue Service (collectively, “ERISA”), which is subject to Title I of ERISA, (ii) a “plan” as defined in and subject to Section 4975 of the IRC, or (iii) an entity deemed to hold “plan assets” (within the meaning of 29 C.F.R. 2510.3-101, as modified by Section 3(42) of ERISA) of either of the foregoing.

(f)Buyer shall indemnify and defend Seller against and hold Seller harmless from any and all losses, costs, damages, liabilities and expenses (including, without limitation, reasonable counsel fees) arising out of any breach by Buyer of its representations and warranties hereunder, provided that no action based on a breach of any such representations or warranties shall be commenced after the first anniversary of the Closing Date.

ARTICLE 23. Post-Closing Obligations: After the Closing, Seller and Buyer shall cooperate with one another at reasonable times and on reasonable conditions and shall execute and deliver such instruments and documents as may be necessary in order fully to carry out the intent and purposes of the transactions contemplated hereby. Except for such instruments and documents as the parties were originally obligated to deliver by the terms of this Agreement, such cooperation shall be without additional cost or liability.

ARTICLE 24. Duties and Responsibilities of Escrow Agent: Escrow Agent shall deliver the Deposit to Seller or Buyer promptly after receiving a joint written notice (which notice may be by e-mail) from Seller and Buyer directing the disbursement of the same, such disbursement to be made in accordance with such direction. If Escrow Agent receives written notice from Buyer or Seller that the party giving such notice is entitled to the Deposit, which notice shall describe with reasonable specificity the reasons for such entitlement, then Escrow Agent shall (i) promptly give notice to the other party of Escrow Agent's receipt of such notice and enclosing a copy of such notice and (ii) subject to the provisions of the following paragraph which shall apply if a conflict arises, on the fifth (5th) business day after the giving of the notice referred to in clause (i) above, deliver the Deposit to the party claiming the right to receive it.

In the event that Escrow Agent shall be uncertain as to its duties or actions hereunder or shall receive instructions or a notice from Buyer or Seller which are in conflict with instructions or a notice from the other party or which, in the reasonable opinion of Escrow Agent, are in conflict with any of the provisions of this Agreement, it shall be entitled to take any of the following courses of action:

	
 
	
(a)
	
Hold the Deposit as provided in this Agreement and decline to take any further action until Escrow Agent receives a joint written direction (which direction may be by e-mail) from Buyer and Seller or any order of a court of competent jurisdiction directing the disbursement of the Deposit, in which case Escrow Agent shall then disburse the Deposit in accordance with such direction;

	
 
	
(b)
	
In the event of litigation between Buyer and Seller, Escrow Agent may deliver the Deposit to the clerk of any court in which such litigation is pending; or

	
 
	
(c)
	
Escrow Agent may deliver the Deposit to a court of competent jurisdiction and therein commence an action for interpleader, the cost thereof to Escrow Agent to be borne by whichever of Buyer or Seller does not prevail in the litigation.

		
	
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Notwithstanding the foregoing, Escrow Agent shall comply with the unilateral instructions of Buyer regarding the disposition of the Deposit prior to the Due Diligence Expiration Date.

Escrow Agent acts hereunder as a depositary only, and except as expressly set forth herein is not responsible or liable in any manner for the sufficiency of any amounts deposited with it. Escrow Agent shall not be liable for any action taken or omitted in good faith and believed by it to be authorized or within the rights or powers conferred upon it by this Agreement and it may rely upon, and shall be protected in acting or refraining from acting in reliance upon, an opinion of counsel and upon any directions, instructions, notice, certificate, instrument, request, paper or other documents believed by it to be genuine and to have been made, sent, signed or presented by the proper party or parties. Escrow Agent shall not be liable for any error in judgment, or for any act done or step taken or omitted by it in good faith, or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, except its own bad faith, negligence or misconduct. In no event shall Escrow Agent's liability hereunder exceed the aggregate amount of the Deposit. Escrow Agent shall be under no obligation to take any legal action in connection with the Deposit or this Agreement or to appear in, prosecute or defend any action or legal proceedings which would or might, in its sole opinion, involve it in cost, expense, loss or liability unless, in advance, and as often as reasonably required by it, Escrow Agent shall be furnished with such security and indemnity as it finds reasonably satisfactory against all such cost, expense, loss or liability. Escrow Agent hereby agrees to indemnify, protect and hold Buyer and Seller harmless from and against any losses, costs, damages or expenses (including reasonable attorneys’ fees) resulting from Escrow Agent’s fraud, negligence or willful misconduct.  Subject to the preceding sentence, Seller and Buyer each hereby release Escrow Agent from any act done or omitted to be done by Escrow Agent in good faith in the performance of its duties hereunder.

Escrow Agent shall not be bound by any modification of this Agreement affecting Escrow Agent’s duties hereunder unless the same is in writing and signed by Buyer, Seller and Escrow Agent. From time to time on or after the date hereof, Buyer and Seller shall deliver or cause to be delivered to Escrow Agent such further documents and instruments that fall due, or cause to be done such further acts as Escrow Agent may reasonably request (it being understood that Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance with this Agreement or to assure itself that it is protected in acting hereunder.

Buyer may remove Escrow Agent at any time upon not less than five (5) business days’ prior notice to Escrow Agent and Seller; in such case, Buyer, by notice to Seller, shall appoint a successor Escrow Agent reasonably satisfactory to Seller who shall accept such appointment and agree in writing to be bound by the terms and conditions of this Agreement. If no such successor Escrow Agent is appointed and acting hereunder within five (5) business days after the removal of Escrow Agent, Escrow Agent shall deliver the Deposit into a court of competent jurisdiction as provided pursuant the terms hereof.  Upon delivery of the Deposit to a successor Escrow Agent or a court of competent jurisdiction as aforesaid, the applicable Escrow Agent shall be released and discharged from all further obligations hereunder first arising after the date of such delivery.

Escrow Agent shall serve hereunder for the compensation described in Article 19 above; provided, however, any expenses of Escrow Agent that are associated with litigation between Buyer and Seller shall be borne by the party that does not prevail in the litigation. Escrow Agent agrees that it will not seek reimbursement for the services of its employees or partners, but only for its actual and reasonably incurred out-of-pocket expenses. Escrow Agent executes this Agreement solely for the purpose of consent to, and agreeing to be bound by the provisions of this Article 24, and to the extent applicable to Escrow Agent, Article 3.

ARTICLE 25. Waiver Of Jury Trial: EACH OF SELLER AND BUYER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT EITHER OR BOTH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.

		
	
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ARTICLE 26. Like Kind Exchange: Buyer agrees to cooperate reasonably with Seller and Seller agrees to cooperate reasonably with Buyer, in effecting an exchange transaction which includes any or all of the Property pursuant to Section 1031 of the United States Internal Revenue Code if Seller and/or Buyer, as applicable, elects to complete such an exchange, provided that any exchange initiated by Seller or Buyer shall be at the sole cost and expense of the initiating party, not cause Buyer to actually take title to any property other than the Property and not delay the Closing. In addition, each of Seller and Buyer shall indemnify and hold the other harmless from any and all cost, expense or liability incurred solely as a result of Buyer or Seller, as applicable, accommodating such tax deferred exchange. The provisions of this paragraph shall survive the Closing indefinitely.

ARTICLE 27. Business Days. As used in this Agreement, the term “business day” shall mean any day other than a Saturday, Sunday or recognized federal holiday or a recognized state holiday of the state where the Property is located. If the last date for performance by either party under this Agreement occurs on a day which is not a business day, then the last date for such performance shall be extended to the next occurring business day.

ARTICLE 28. Confidentiality. (a)  Each of Seller and Buyer agrees to hold all materials and information related to the Property and this transaction, including the existence and terms of this Agreement, whether received from Seller, Buyer, third parties, or generated by Buyer or Seller, in the strictest confidence and not disclose the same to any third parties; provided, however, each of Seller and Buyer may disclose such information for use only in connection with evaluating this transaction to its officers, directors, employees, consultants, attorneys, advisors and agents so long as such persons are informed by Seller or Buyer, as applicable of the confidential nature of such information and are directed by Seller or Buyer, as applicable, to treat such information confidentially. If this Agreement is terminated prior to the Closing Date, all such confidences shall continue to be maintained. In the event this Agreement is terminated, whether before or after the Due Diligence Expiration Date, each of Seller and Buyer and their respective officers, directors, employees, consultants, advisors, attorneys, and agents shall deliver to Seller or Buyer, as applicable, upon request, all documents and other materials, and all copies thereof, obtained from Seller, Buyer or their respective agents in connection with this Agreement. By execution of this Agreement, Escrow Agent hereby agrees to maintain the existence of this Agreement and the nature and details of the transaction contemplated hereby in confidence, unless Escrow Agent is required by law to disclose some or all of such information.

(b) Notwithstanding the above provisions of this Article 28, and in accordance with Section 1.6011-4(b)(3)(iii) of the Treasury Regulations, each party to this Agreement (and each employee, representative, or other agent of each party) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure, for federal tax purposes, of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment and tax structure; provided, however, that, pursuant to Section 1.6011-4(b)(3)(ii) of the Treasury Regulations, such disclosure shall not be permitted to the extent, but only to the extent, such disclosure would reasonably be considered to result in noncompliance with the securities laws of any applicable jurisdiction.

ARTICLE 29. IRS Real Estate Sales Reporting. Buyer and Seller hereby agree that Escrow Agent shall act as “the person responsible for closing” the transaction which is the subject of this Agreement pursuant to Section 6045(e) of the Code and shall prepare and file all informational returns, including IRS Form 1099-S, and shall otherwise comply with the provisions of Section 6045(e) of the Code. The provisions of this Article 29 shall survive the Closing.

ARTICLE 30. Limitations on Liability. Notwithstanding anything to the contrary in this Agreement, and subject to any additional limitations on Seller’s liability set forth elsewhere in this Agreement: (a) Buyer’s recourse against Seller under this Agreement or any agreement, document, certificate or instrument delivered by Seller hereunder, or under any law, rule or regulation relating to the Property, shall be limited to Seller’s interest in the Property (or, following the Closing, to the net proceeds of the sale of the Property actually received by Seller); and (b) in no event shall any of Seller Parties have any personal liability hereunder or otherwise. The acceptance of the Deed shall constitute full performance of all of Seller’s obligations hereunder other than those obligations of Seller, if any, that by the express terms hereof are to survive the Closing. For purposes of this Article 30, no negative capital account or any contribution or payment obligation of any partner or member of Seller shall constitute an asset of Seller. The provisions of this Article 30 shall survive the Closing or termination of this Agreement.

		
	
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ARTICLE 31. Press Releases. Each of Seller and Buyer agrees that, without the prior written approval of the other party, neither Seller nor Buyer shall issue any press release, advertisement, internet posting or other similar announcement, statement or disclosure of this Agreement, the transactions contemplated hereby, or the parties hereto (or their respective affiliates and advisors), whether before or after the Closing, except to the extent otherwise required by law. The provisions of this Article 31 shall survive the Closing or termination of this Agreement.

ARTICLE 32. Time of the Essence. Time is of the essence in the performance of each and every one of the parties' respective obligations contained in Articles 3, 5, 6, 7, 11(solely with respect to the expiration of any survival periods set forth therein) and 22 (solely with respect to the expiration of any survival periods set forth therein) of this Agreement.

ARTICLE 33. Costs and Attorneys’ Fees. In the event of any arbitration, litigation or dispute between the parties arising out of or in any way connected with this Agreement, including actions maintained by the parties subsequent to the Closing Date, resulting in any litigation, then the prevailing party in such litigation shall be entitled to recover its costs of prosecuting and/or defending same, including, without limitation, reasonable attorneys’ fees at trial and all appellate levels. Regardless of whether Closing occurs hereunder, and except as otherwise expressly provided herein, each party hereto shall be responsible for its own costs in connection with this Agreement and the transactions contemplated hereby, including, without limitation, fees of attorneys, engineers and accountants. The provisions of this Article 33 shall survive the Closing of the transaction contemplated hereby.

ARTICLE 34. Waivers.        Any waiver of any term or condition of this Agreement, or of the breach of any covenant, representation or warranty contained herein, in any one instance, shall not operate as or be deemed to be or construed as a further or continuing waiver of any other breach of such term, condition, covenant, representation or warranty or any other term, condition, covenant, representation or warranty, nor shall any failure at any time or times to enforce or require performance of any provision hereof operate as a waiver of or affect in any manner such party’s right at a later time to enforce or require performance of such provision or any other provision hereof.

ARTICLE 35. Severability.         If any provision of this Agreement shall be held or deemed to be, or shall in fact be, invalid, inoperative or unenforceable as applied to any particular case in any jurisdiction or jurisdictions, or in all jurisdictions or in all cases, because of the conflict of any provision with any constitution or statute or rule of public policy or for any other reason, such circumstance shall not have the effect of rendering the provision or provisions in question invalid, inoperative or unenforceable in any other jurisdiction or in any other case or circumstance or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to the extent that such other provisions are not themselves actually in conflict with such constitution, statute or rule of public policy, but this Agreement shall be reformed and construed in any such jurisdiction or case as if such invalid, inoperative or unenforceable provision had never been contained herein and such provision reformed so that it would be valid, operative and enforceable to the maximum extent permitted in such jurisdiction or in such case.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as an instrument under seal as of the day and date first written above.

 

	
SELLER:

	
 

	
 

	
CHERRY HILL DRIVE OWNER, LLC,

	
a Delaware limited liability company

 

 

	
By:
	
 

	
Name:  Brandon D. Kelly

	
Title: Authorized Signatory

 

	
BUYER:

	
 

	
 

	
ABIOMED, INC.,

	
a Delaware corporation

 

 

	
By: 
	
 

	
Name:

	
Title:

 

THE UNDERSIGNED HEREBY JOINS IN THIS AGREEMENT AS ESCROW AGENT AND ACKNOWLEDGES AND AGREES TO BE BOUND BY THE PROVISIONS OF ARTICLES 3, 24 AND 29 OF THIS AGREEMENT:

 

[TO BE INSERTED]

 

 

	
By:
	
 

	
Name:

	
Title:

 

 

 

		
	
{W6394298.7}
	
-22-

 

 

EXHIBIT A

LEGAL DESCRIPTION OF REAL PROPERTY

24-42 Cherry Hill Drive, Danvers, Massachusetts

That certain parcel of land with any improvements thereon situate in Danvers, County of Essex, Commonwealth of Massachusetts, being shown as Lots 3, 4, 5 and 6 on a plan entitled "Plan of Land in Danvers, Mass., owned by Thomas J. Flatley, Scale: 1 in. = 100 ft., dated May 13, 1983, by The Russell A Wheatley Co., Inc., Land Surveyors and Engineers, 700 Bedford Street, Abington, Massachusetts" recorded with Essex South District Registry of Deeds in Plan Book 183 as Plan 94, and further bounded and described as follows:

 

	
NORTHERLY:
	
by land now or formerly of the Beverly Airport as shown on said plan by 4 bounds measuring respectively, 739.06 ft., 41.69 ft., 189.28 ft. and 105.00 ft.;

	
 
	
 

	
NORTHEASTERLY:
	
by land now or formerly of Terra-Light Inc. as shown onsaid plan 2 bounds measuring respectively, 369.69 ft. and 178.66 ft.

	
 
	
 

	
EASTERLY:
	
by Cherry Hill Drive as shown on said plan 2 bounds measuring respectively 87.60 ft. and 205.65 ft. 

	
 
	
 

	
SOUTHERLY:
	
by land now or formerly of The Pacific Lumber Company as shown on said plan 1093.66 ft., and

	
 
	
 

	
WESTERLY:
	
by land now or formerly of Sawyer as shown on said plan by 2 bounds measuring respectively 231.87 ft. and 339.78 ft.

 

The above-described land is also referred to as Lots 3, 4, 5 and 6 on a Plan dated January 8, 1980 by Frank C. Gelinas and Associates, recorded with said Deeds in Plan Book 160 as Plan 1.

[Note: Remaining Exhibits to be agreed upon by Seller and Buyer in advance of Purchase and Sale Agreement being executed]

		
	
{W6394298.7}

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