Document:

Exhibit 10.12

 

AMENDED AND RESTATED OFFICE LEASE

 

	
CONTENTS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SUMMARY   OF BASIC LEASE TERMS
    	
 
    	
PAGE   2
    
	
PREMISES
    	
 
    	
SECTION 1
    
	
TERMS
    	
 
    	
SECTION 2
    
	
RENT
    	
 
    	
SECTION 3
    
	
SECURITY   DEPOSIT
    	
 
    	
SECTION 4
    
	
USE
    	
 
    	
SECTION 5
    
	
OPERATING   EXPENSES
    	
 
    	
SECTION 6
    
	
UTILITIES   AND SERVICES
    	
 
    	
SECTION 7
    
	
MAINTENANCE,   REPAIRS AND ALTERATIONS
    	
 
    	
SECTION 8
    
	
ALTERATIONS   AND ADDITIONS
    	
 
    	
SECTION 9
    
	
INSURANCE
    	
 
    	
SECTION 10
    
	
INDEMNITY
    	
 
    	
SECTION 11
    
	
SUBROGATION
    	
 
    	
SECTION 11.A
    
	
DAMAGE,   DESTRUCTION AND BUSINESS INTERRUPTION
    	
 
    	
SECTION 12
    
	
TENANT   TAXES
    	
 
    	
SECTION 13
    
	
EXTERIOR   AREAS
    	
 
    	
SECTION 14
    
	
SUBLETTING   AND ASSIGNMENT
    	
 
    	
SECTION 15
    
	
TENANT’S   DEFAULT
    	
 
    	
SECTION 16
    
	
LANDLORD’S   DEFAULT
    	
 
    	
SECTION 17
    
	
CONDEMNATION
    	
 
    	
SECTION 18
    
	
SUBORDINATION   AND ATTORNMENT
    	
 
    	
SECTION 19
    
	
QUIET   ENJOYMENT
    	
 
    	
SECTION 20
    
	
DELAYS
    	
 
    	
SECTION 21
    
	
FUTURE   EXPANSION
    	
 
    	
SECTION 22
    
	
RENEWAL   OPTION
    	
 
    	
SECTION 23
    
	
GENERAL   PROVISIONS
    	
 
    	
SECTION 24
    
	
RIGHT   OF FIRST OFFER TO PURCHASE
    	
 
    	
SECTION 25
    
	
 
    	
 
    	
 
    
	
EXHIBIT A
    	
 
    	
LEGAL   DESCRIPTION
    
	
EXHIBIT B
    	
 
    	
PREMISES
    
	
EXHIBIT C
    	
 
    	
RULES   AND REGULATIONS
    
	
EXHIBIT D
    	
 
    	
ACCEPTANCE   LETTER
    
	
EXHIBIT E
    	
 
    	
PARKING   AREAS
    
	
EXHIBIT F
    	
 
    	
CURRENT   PREMISES WORK LETTER
    
	
EXHIBIT G
    	
 
    	
BASE   BUILDING IMPROVEMENTS
    
	
EXHIBIT H-1
    	
 
    	
TENANT—MANAGED   WORK LETTER
    
	
EXHIBIT H-2
    	
 
    	
LANDLORD-MANAGED   WORK
    
	
 
    	
 
    	
LETTER
    

 

1

 

AMENDED AND RESTATED OFFICE LEASE

 

THIS AMENDED AND RESTATED OFFICE LEASE (this “Lease”) is made and entered into this 10th day of June, 2013, by and between, 3333 WALNUT, LLC, a Colorado limited liability company (hereinafter referred to as “Landlord”) and RALLY SOFTWARE DEVELOPMENT CORP., a Delaware corporation (hereinafter referred to as “Tenant”).

 

W I T N E S S E T H:

 

For and in consideration of the rental and of the covenants and agreements hereinafter set forth to be kept and performed by the Tenant, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises herein described for the Term herein set forth, at the rental and subject to and upon all of the terms, covenants and agreements hereinafter set forth.

 

SUMMARY OF BASIC LEASE TERMS

 

	
A.
    	
 
    	
LANDLORD:
    	
 
    	
3333   WALNUT, LLC,
    
	
 
    	
 
    	
 
    	
 
    	
a   Colorado limited liability company
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
TENANT:
    	
 
    	
RALLY   SOFTWARE DEVELOPMENT CORP.,
    
	
 
    	
 
    	
 
    	
 
    	
a   Delaware corporation, or its Permitted Assignee.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
BUILDING:
    	
 
    	
3333   Walnut Street, Boulder, Colorado, consisting of an existing structure   containing approximately 65,545 square feet of Rentable Area (the “Current   Building”) and a to-be-constructed addition to the Current Building   consisting of approximately 89,079 square feet of Rentable Area (the “Additional   Premises”) (until the completion of construction of the Additional Premises   the term “Building” will refer only to the Current Building; after the   completion of construction of the Additional Premises, the term “Building”   will refer to both the Current Building and Additional Premises and will be   deemed to consist of approximately 154,624 square feet of Rentable Area,   subject to adjustment as set forth in Section 1.3(b)(i).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.
    	
 
    	
PREMISES:
    	
 
    	
Approximately   154,624 square feet of Rentable Area, subject to adjustment as set forth in   Section 1.3(b)(i), of which approximately 65,545 square feet of Rentable   Area comprises the entire Current Building (the “Current Premises”) and   approximately 89,079 square feet of Rentable Area comprises the entire Additional   Premises.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
E.
    	
 
    	
LEASE   TERM/ AMENDMENT AND RESTATEMENT OF 
    	
 
    	
 
    
	
 
    	
 
    	
CURRENT   LEASE:
    	
 
    	
Commencing   on the date of mutual execution of this Lease (the “Commencement Date”) and   ending ten (10) years after the Additional Premises Rent Commencement   Date (hereinafter defined) (the “Term”). The Additional Premises Rent   Commencement Date is estimated to be November 1, 2014 (the “Estimated   Additional Premises Rent Commencement Date”). The actual Additional Premises   Rent Commencement Date shall be determined as provided in   Section 1.3(b)(ii). If the Additional Premises Rent Commencement Date   occurs on other than the first day of the month, Tenant shall pay   proportionate rent at the same monthly rate set forth herein for the partial   month in which the Additional Premises Rent Commencement Date falls, and the   Term of the Lease shall be extended for a like period such that it shall   expire on the last day of the month in which the Term would otherwise have   expired (e.g., if the Additional
    

 

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Premises   Rent Commencement Date falls on November 1, 2014, the Term will expire   on October 31, 2024; if the Additional Premises Rent Commencement Date   falls between November 2 and November 30, 2014, Tenant shall pay   pro-rated Rent for the Additional Premises for the month of November, 2014   based on the number of days on and after the Additional Premises Rent   Commencement Date, and the Term will expire on November 30, 2024, and so   on). Tenant agrees to complete the Acceptance Letter attached hereto as Exhibit D,   upon determination of the Additional Premises Rent Commencement Date,   signifying the Additional Premises Rent Commencement Date and the actual   Termination Date (herein so called) of the Lease. Landlord and Tenant   acknowledge and agree, in the event of any conflict between this Lease and   the Acceptance Letter, such fully executed Acceptance Letter shall control   and prevail with respect to such dates. Landlord and Tenant acknowledge and   agree that Tenant is currently in occupancy of the Current Premises pursuant   to that certain Office Lease between Landlord and Tenant dated March 30,   2012 (the “Current Lease”), and that this Lease amends and restates the   Current Lease in its entirety. Effective as of the Commencement Date, but   subject to the provisions set forth in Section 19.1, this Lease shall   supersede and replace the Current Lease as of the date hereof, which shall   thereafter be of no further force or effect, except with respect to the   period prior to the date hereof.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
F.
    	
 
    	
SECURITY   DEPOSIT:
    	
 
    	
$4,200,000.00,   deliverable and held as set forth in Section 4 of this Lease.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
G.
    	
 
    	
BASE   RENT:
    	
 
    	
Current   Premises:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Commencement   Date - 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
3/31/14
    	
 
    	
$107,876.15   / Month ($19.75/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/14   - 3/31/16
    	
 
    	
$109,241.67   / Month ($20.00/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/16   - 3/31/17
    	
 
    	
$110,607.19   / Month ($20.25/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/17   - 3/31/18
    	
 
    	
$113,338.23   / Month ($20.75/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/18   - 3/31/19
    	
 
    	
$116,069.27   / Month ($21.25/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/19   - 3/31/20
    	
 
    	
$118,800.31   / Month ($21.75/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/20   - 3/31/21
    	
 
    	
$121,531.35   / Month ($22.25/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
4/1/21   - 3/31/22
    	
 
    	
$124,262.40   / Month ($22.75/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
3/1/22   - Termination
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Date
    	
 
    	
Tenant   shall pay Base Rent for the Current Premises in the same rate per square foot   of Rentable Area as Tenant is required to pay for the Additional Premises as   set forth below, with all escalations in Base Rent to occur at the same time,   and subject to the CPI Adjustment (hereinafter defined) as escalations occur for   the Additional Premises.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Additional   Premises:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Additional   Premises
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Rent   Commencement
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Date   through Month 24
    	
 
    	
$173,704.05   / Month ($23.40/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
Months   25 - 48
    	
 
    	
$179,271.48   / Month ($24.15/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
Months   49 - 60
    	
 
    	
$184,838.92   / Month ($24.90/RSF/ANNUM)
    
	
 
    	
 
    	
 
    	
 
    	
Month   61 -
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Termination   Date:
    	
 
    	
To   be determined based on CPI Adjustment, and
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
adjusted   annually (i.e., at Months 61, 73, 85, 97 and
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
109),   as more fully set forth below.
    

 

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Commencing at the beginning of Month 61, and annually thereafter (each, an “Adjustment Date”), the Base Rent for the Additional Premises will be subject to adjustment equal to the greater of either:  (a) the percentage of increase in the “Consumer Price Index for All Urban Consumers, CPI-U” (all items, 1982-84 = 100) published by the United States Department of Labor, Bureau of Labor Statistics, or any successor to such agency for the Denver/Boulder/Greeley Metropolitan Statistical Area (“Index”); or (b) three percent (3%), compounded annually (the “CPI Adjustment”).  If publication of the Index is discontinued, Landlord will substitute comparable statistics with respect to the cost of living for urban consumers published by any agency of the United States government or by a nationally recognized financial periodical or institution.  The CPI Adjustment will be determined by taking the Base Rent effective on the day preceding that Adjustment Date, multiplied by a fraction the numerator of which is the Index figure published most recently prior to the month in which the Adjustment Date occurs and the denominator of which is the Index figure published most recently prior to the month in which the previous Adjustment Date (or with respect to the initial CPI Adjustment, the Index figure published most recently prior to the last adjustment in Base Rent under the Lease) occurred; provided, however, that the Base Rent shall be increased on each Adjustment Date by at least three percent (3%) of the Base Rent then in effect, which increase shall be compounded annually.

 

Tenant shall keep in strict confidence and shall not divulge the specific contents or provisions of this Lease to anyone other than an officer, agent, employee, director, shareholder, lawyer, consultant, accountant or auditor of Tenant or its Permitted Assignee without the prior written consent of Landlord, unless ordered by a court of competent jurisdiction or required by applicable law.  Tenant may disclose this Lease to a Permitted Assignee (hereinafter defined) or any bona fide potential investor, underwriter or acquirer of Tenant with Landlord’s consent, which shall not be unreasonably withheld, conditioned or delayed. A breach of the foregoing covenant of confidentiality shall be deemed a material breach and Event of Default under this Lease, subjecting Tenant to any and all of Landlord’s rights and remedies available in the event of nonpayment of rent.  This covenant of confidentiality shall survive the expiration of the Lease and any amendment thereto.

 

	
H.
    	
 
    	
RENTABLE   AREA OF 
    	
 
    	
 
    
	
 
    	
 
    	
THE   PREMISES:
    	
 
    	
65,545   rentable square feet until completion of the Additional Premises, after which   it shall contain 154,624 rentable square feet, subject to adjustment as set   forth in Section 1.3(b)(i).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
I.
    	
 
    	
RENTABLE   AREA OF 
    	
 
    	
 
    
	
 
    	
 
    	
THE   BUILDING:
    	
 
    	
65,545   rentable square feet until completion of the Additional Premises, after which   it shall contain 154,624 rentable square feet, subject to adjustment as set   forth in Section 1.3(b)(i).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
J.
    	
 
    	
(INTENTIONALLY   OMITTED)
    
	
 
    	
 
    	
 
    
	
K.
    	
 
    	
(INTENTIONALLY   OMITTED).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
L.
    	
 
    	
LIABILITY   INSURANCE REQUIRED OF 
    	
 
    	
 
    
	
 
    	
 
    	
TENANT:
    	
 
    	
Total   coverage not less than Five Million and No/100 Dollars ($5,000,000.00) as   provided in Section 10 hereof.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
M.
    	
 
    	
ADDRESSES   FOR NOTICES AND PAYMENT OF RENT 
    	
 
    	
 
    
	
 
    	
 
    	
AND   CHARGES:
    	
 
    	
All   notices under this Lease shall be sent by registered or certified, return   receipt requested, or overnight mail or delivered in person with a written   receipt provided.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TO   LANDLORD:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3333   Walnut, LLC
    
	
 
    	
 
    	
c/o   MAVDevelopment
    
	
 
    	
 
    	
2727   South State Street, Suite 100
    
	
 
    	
 
    	
Ann   Arbor, Michigan 48104
    
	
 
    	
 
    	
Attn:   Rob Aldrich
    

 

4

 

	
 
    	
 
    	
with   a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3333   Walnut, LLC
    
	
 
    	
 
    	
c/o   MAVDevelopment West
    
	
 
    	
 
    	
1860   Blake Street, Suite 610
    
	
 
    	
 
    	
Denver,   Colorado 80202
    
	
 
    	
 
    	
Attn:  Property Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TO  TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
At   the Premises
    
	
 
    	
 
    	
Contact Name: Associate General Counsel
    
	
 
    	
 
    	
Contact Phone: 303-565-2800
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
N.
    	
 
    	
USE   OF PREMISES:
    	
 
    	
General   office and administrative, including software development and other legal use   incidental thereto.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
O.
    	
 
    	
BROKER:
    	
 
    	
Acquire, Inc.,   Boulder, CO is the sole real estate broker involved in this transaction.  Landlord shall pay Broker’s commission   pursuant to a separate agreement between Landlord and Broker.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
P.
    	
 
    	
PARKING:
    	
 
    	
Tenant   shall be allocated the use of all of the Parking Areas (herein so called) as   detailed in Exhibit E attached hereto and made a part hereof, at   no charge to Tenant during the Term hereof.    Notwithstanding anything contained in the foregoing: during   construction of the Additional Premises, Landlord may use part of the   existing Parking Areas for construction purposes, provided that during any   such use, Landlord shall provide Tenant an equivalent number of on-site or   adjacent substitute parking spaces, free of charge, as more fully depicted in   Exhibit E. Tenant currently has the right to use all on-site   spaces (the “Existing Parking Areas”).    Prior to constructing the Additional Premises, Landlord shall at its expense   complete the paving, striping, and other improvements to the Parking Areas   identified in Exhibit E-2, such that during construction Tenant shall   have the use of no fewer than 211 on-site spaces (the “Construction Parking   Areas”). Upon completion of construction, Landlord shall deliver the Parking   Areas identified in Exhibit E-1, such that Tenant shall have the right   to use all on-site spaces, estimated to be 461 on-site spaces (the “Permanent   Parking Areas”).
    

 

1.                                      PREMISES

 

1.1                               Grant of Premises.  Landlord hereby leases to Tenant and Tenant leases from Landlord those certain Premises situated in the City of Boulder, County of Boulder, State of Colorado, described in Paragraph D of the Summary of Basic Lease Terms.

 

1.2                               Office Building.  The Premises, together with and including certain other property owned by Landlord, comprise a multi-story office building as more fully described in Paragraph D of the Summary of Basic Lease Terms (hereinafter referred to as the “Building”) and the appurtenant land on which it is located, as more fully described in Exhibit A.  The parties acknowledge and agree that Tenant is leasing the entirety of the Building and property and so unless expressly set forth to the contrary herein, all references to the “Premises” shall be deemed to include all of the Building and property.  Tenant’s use and occupancy of the Premises shall include the use of the Exterior Areas described in Section 14, but excepting therefrom and reserving unto Landlord the exterior faces of all exterior walls, the roof and the right to install, and maintain where necessary in the Building and Premises all pipes, ductwork, conduits and utility lines through hung ceiling space, partitions, beneath the floor or through other parts of the Building and Premises.

 

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1.3                               Construction by Landlord.

 

(a)                                 Current Premises.  Tenant acknowledges that it is in occupancy of the Current Premises pursuant to the terms of the Current Lease, has accepted the Current Premises in their as-is and current condition, and that as of the Commencement Date Landlord has no obligation to perform any work or to supply any materials to the Current Premises, except as provided in that certain Work Letter attached to this Lease as Exhibit F (the “Current Premises Work Letter”).  Except for Landlord’s obligation to perform certain work in the Current Premises after the Commencement Date as more fully provided in the Current Premises Work Letter, Tenant acknowledges and agrees that the Current Premises are fully complete as of the Commencement Date, including Tenant’s existing signage.

 

(b)                                 Additional Premises.

 

(i)                                     Construction of Additional Premises.  Landlord and Tenant agree that Tenant’s leasehold interest in and right to occupy the Additional Premises is subject to Landlord’s construction of the Additional Premises, as more fully provided herein.  Landlord will construct the Additional Premises at its cost and expense, in a good and workmanlike manner and in accordance with the plans and specifications set forth in Exhibit G and all applicable building codes (the “Base Building Improvements”).  Landlord anticipates that the Base Building Improvements should be substantially completed by no later than sixteen (16) months after the date of mutual execution of this Lease (the “Estimated Base Building Improvements Completion Date”).  The actual date of substantial completion of the Base Building Improvements, whether occurring before or after the Estimated Base Building Improvements Completion Date, is referred to herein as the “Base Building Improvements Completion Date,” and shall be evidenced by a Certificate of Occupancy or other appropriate approvals issued by the City of Boulder, allowing occupancy for purposes of completing the Tenant Improvement Work.  It is understood that the Estimated Base Building Improvements Completion Date is merely a good faith estimate, and that Landlord shall use reasonable and diligent efforts to complete the Base Building Improvements on or before the Estimated Base Building Improvements Completion Date.  Notwithstanding the foregoing, in the event that Landlord is unable to complete the Base Building Improvements by the Estimated Base Building Improvements Completion Date using reasonable diligence, Landlord shall not (except in the absence of reasonable diligence) be liable for any claims, damages or liabilities by reason thereof, nor shall such circumstances make this Lease void or voidable and Tenant’s sole and exclusive remedy for such delay shall be a postponement of the Base Building Improvements Completion Date, and corresponding postponement of the Additional Premises Rent Commencement Date as provided below, subject to the provisions of the following sentences.  Notwithstanding the foregoing, if the Base Building Improvements Completion Date has not occurred within one hundred twenty (120) days after the Estimated Base Building Improvements Date (such date, the “First Outside Base Building Improvements Completion Date”), subject to Tenant Delay (hereinafter defined) and events of force majeure (“Force Majeure Delay”), then Tenant shall be entitled to one (1) day of abatement of Base Rent for the Additional Premises following the Additional Premises Rent Commencement Date for each such day of delay occurring after the First Outside Base Building Improvements Completion Date (the “Additional Premises Rent Abatement”).  In addition, if the Base Building Improvements Completion Date has not occurred within sixty (60) days after the First Completion  Date (such date, the “Second Outside Base Building Improvements Completion Date”), subject to Tenant Delay and Force Majeure Delay, then Tenant shall have the right, in lieu of continuing with any Additional Premises Rent Abatement, exercisable at any time after the Second Outside Base Building Improvements Completion Date but prior to the Base Building Improvements Completion Date, to terminate this Lease as to the Additional Premises by giving written notice thereof to Landlord (the “Additional Premises Termination Right”), and upon such termination, this Lease shall terminate with respect to the Additional Premises, but will remain in effect as to the Current Premises, and Tenant shall be entitled to receive return of the Additional Deposit defined below.  The foregoing provisions are intended to be self-operative, but upon the request of Landlord, Tenant shall execute a lease amendment evidencing the exercise of the Additional Premises Termination Right and removing the Additional Premises from this Lease.  Each documented day of Tenant Delay and/or Force Majeure Delay shall postpone the First Outside Base Building Improvements Completion Date and the Second Outside Base Building Improvements Completion Date day-for-day, as applicable.  In any case, if Landlord is unable to substantially complete the Base Building Improvements on or before the Estimated Base Building Improvements Completion Date due to a delay caused by Tenant, its employees, agents, contractors or other representatives (“Tenant Delay”), then the Base Building Improvements Completion Date shall be deemed to have occurred on the date that Landlord would have completed the Base Building Improvements absent such Tenant Delay.  Promptly after the completion of the Additional Premises, Landlord shall cause the Rentable Area of the Additional Premises to be verified by the architect of record for the Base Building Improvements, using BOMA measurement standards pursuant to BOMA ANSI Z65-2010.  If such

 

6

 

measurement results in a change in the Rentable Area of the Additional Premises from that set forth in this Lease, then the Base Rent, Construction Allowance and any other concessions based on the Rentable Area of the Premises shall be adjusted accordingly.  Tenant acknowledges and agrees that the foregoing re-measurement provisions shall apply to the Additional Premises only, and that the Current Premises shall not be subject to re-measurement.  Tenant shall, within fifteen (15) days after Landlord’s written request, execute and return a lease amendment effective as of the Additional Premises Rent Commencement Date, confirming the necessary adjustments.

 

(ii)                                  Construction of Tenant Improvement Work in Additional Premises; Determination of Additional Premises Rent Commencement Date.  After the Base Building Improvements Completion Date, Tenant will have a period of one hundred ninety-five (195) days in which to complete any further improvements in the Premises for the benefit of Tenant (the “Tenant Improvement Work”).  If Tenant elects to manage construction of the Tenant Improvement Work, Landlord will deliver the Additional Premises to Tenant immediately following the Base Building Improvements Completion Date for the purposes of performing the Tenant Improvement Work (such date, the “Additional Premises Delivery Date”), the Tenant Improvement Work will be performed as provided in Exhibit H-1 (the “Tenant-Managed Work Letter”), and Tenant will commence payment of Rent for the Additional Premises on the date that is one hundred ninety-five (195) days following the Additional Premises Delivery Date (such date, the “Additional Premises Rent Commencement Date”).  Tenant’s contractor shall have the right to access the Base Building Improvements prior to the Additional Premises Delivery Date for purposes of facilitating and coordinating the planning, staging, and commencement of the Tenant Improvement Work, subject to and in accordance with the provisions of the Tenant-Managed Work Letter (the “Early Access”); provided, however, that such Early Access by and activities of Tenant’s contractor (1) do not interfere with Landlord’s completion of the Base Building Improvements and all of Landlord’s other obligations hereunder, (2) abide by Landlord’s security measures, and (3) are done at Tenant’s sole risk and expense.  In addition, if such Early Access interferes with Landlord’s completion of the Base Building Improvements Landlord shall have the right at any time to terminate such Early Access, any delay in the completion of the Base Building Improvements as a result of such Early Access shall be deemed a Tenant Delay, and if there is any increased cost in the Base Building Improvements as a result of such Early Access, then Tenant shall pay any increased costs upon written demand therefor by Landlord.  If Tenant elects to have Landlord manage the construction of the Tenant Improvement Work, Landlord will deliver the Additional Premises to Tenant upon substantial completion of the Tenant Improvement Work, the Tenant Improvement Work will be performed as provided in Exhibit H-2 (the “Landlord-Managed Work Letter’), and the Additional Premises Rent Commencement Date shall occur on the date that Landlord delivers the Additional Premises to Tenant with the Tenant Improvement Work substantially complete, as more fully described in the Landlord-Managed Work Letter (or the date that such Tenant Improvement Work would have been substantially complete, but for Tenant Delay).  If Tenant elects to manage the Tenant Improvement Work, Tenant’s occupancy of the Additional Premises between the Additional Premises Delivery Date and the Additional Premises Rent Commencement Date shall be subject to all of the terms and conditions of this Lease, except that Tenant will not be obligated to pay Base Rent or Operating Expenses for the Additional Premises until the Additional Premises Rent Commencement Date and the foregoing shall also apply to any Early Access by Tenant or its contractor.

 

(iii)                               Determination of Management of Tenant Improvement Work.

 

(A)                               Tenant’s Construction Documents.  No later than one hundred and eighty (180) days following the Commencement Date, Tenant shall submit to Landlord complete, finished and detailed architectural, mechanical, electrical and plumbing drawings and specifications for the Tenant Improvement Work to include Tenant’s partition and furniture layout, reflected ceiling, telephone and electrical outlets and equipment rooms, doors (including hardware and keying schedule), glass partitions, windows (if any), critical dimensions, structural loading requirements, millwork, finish schedules, air conditioning and heating systems, ductwork and electrical facilities, together with all supporting information and delivery schedules (the “Construction Documents”).  The Construction Documents shall be prepared by architects and/or engineers approved by Landlord in writing in advance.  For purposes of preparing and reviewing the Construction Documents, Landlord hereby approves DLR Group as Tenant’s Additional Premises architect, Landlord’s engineer as Additional Premises engineer, and, at Tenant’s election, Group 14 Engineering as reviewing engineer for the DDC control system improvements in the Current Premises set forth in Exhibits F and F-1.  The Construction Documents shall comply with all applicable laws and shall be presented in Landlord’s format satisfactory for filing with the appropriate governmental authorities for required permits and licenses.  Following receipt of Tenant’s Construction Documents, Landlord (or its designated architectural and/or engineering firm) shall approve or disapprove such documents in writing.  If Landlord

 

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disapproves, Landlord shall provide Tenant in writing specific reasons for such disapproval, but approval shall not be unreasonably withheld, conditioned or delayed.  Tenant shall submit corrected Construction Documents within ten (10) days of receipt of Landlord’s disapproval notice.  Landlord shall approve or disapprove the corrected Construction Documents within five (5) additional days from receipt thereof.  Upon Landlord’s approval, the Construction Documents shall become the “Approved Construction Documents.”

 

(B)                               Bidding of Work; Tenant’s Determination of Management of Work.  Within five (5) days after the designation of the Approved Construction Documents, Tenant shall advise Landlord in writing as to whether or not it wants Landlord to bid the Tenant Improvement Work to the contractor that is constructing the Base Building Improvements (“Landlord’s Contractor”).  If Tenant does not elect to have Landlord bid the Tenant Improvement Work to the Landlord’s Contractor, then Tenant will be deemed to have elected to utilize its own contractors and subcontractors (collectively, “Tenant’s Contractors”) to perform the Tenant Improvement Work, and the Tenant Improvement Work will be performed in accordance with the Tenant-Managed Work Letter.  If Tenant elects to have Landlord bid the Tenant Improvement Work to Landlord’s Contractor, Landlord will promptly bid the Tenant Improvement Work to the Landlord’s Contractor based on the Approved Construction Documents and will present the bid to Tenant upon receipt thereof.  Tenant shall have a period of five (5) business days after receipt of Landlord’s Contractor’s bid to decide if it will accept the bid and have Landlord’s Contractor perform the Tenant Improvement Work.  If Tenant elects to have Landlord’s Contractor perform the Tenant Improvement Work, then Landlord will manage construction of the Tenant Improvement Work in accordance with the Landlord-Managed Work Letter.  If Tenant does not timely either (i) request that Landlord bid the Tenant Improvement Work with the Landlord’s Contractor, or (ii) accept the bid from Landlord’s Contractor, then Tenant will be deemed to have decided to manage the Tenant Improvement Work and such work shall be performed in accordance with the Tenant-Managed Work Letter.

 

(C)                               Additional Provisions regarding Landlord’s Work.  Tenant acknowledges that Landlord will be constructing the Base Building Improvements, the Current Premises Work Letter Improvements (and potentially the Tenant Improvement Work) (collectively, the “Expansion”) while Tenant is in possession of the Current Premises, and agrees that Landlord, its agents, employees and contractors shall have the right to enter certain portions of the Current Premises as reasonably necessary during normal business hours, to design and construct the Expansion.  Tenant understands that the work to be performed may result in noise, vibration, dirt, dust, odors, and other circumstances commonly attendant to construction.  Except as provided herein, Tenant hereby waives any claim of injury or inconvenience to Tenant’s business, interference with Tenant’s business, loss of occupancy or quiet enjoyment of the Current Premises, or any other loss occasioned by such entry or the performance of the Expansion, and the same shall not relieve Tenant of any obligations under the Lease; provided that Landlord shall cause its contractors to undertake affirmative measures to minimize, to the extent reasonably possible, any disruption to Tenant’s business in the Current Premises during its performance of the Expansion, and such contractors shall abide by Tenant’s established security measures.  No entry into the Current Premises by Landlord to perform any Expansion work shall be deemed a forcible or unlawful entry into the Current Premises or a detainer of the Current Premises, or an eviction, actual or constructive, of Tenant from the Current Premises, or any part thereof, nor shall such entry entitle Tenant to damages or an abatement of Rent with respect to the Current Premises, unless Landlord fails to minimize disruption in the Current Premises to the extent reasonably possible.  Tenant shall fully cooperate with Landlord and its contractors and shall not in any way impede, inhibit or hinder any of the Expansion.

 

2.                                      TERM

 

2.1                               Basic Term. The Term of this Lease shall be for the period commencing and ending on the dates set forth in Paragraph E of the Summary of Basic Lease Terms.

 

3.                                      RENT

 

3.1                               Base Rent.  Tenant agrees to pay to Landlord, promptly when due, without notice or demand, and without deduction or set off for any reason whatsoever, as rent for the Premises, the Base Rent set forth in Paragraph G of the Summary of Basic Lease Terms for each and every month during the Term hereof.

 

3.2                               Operating Expenses.  In addition to Base Rent, Tenant agrees to pay additional rent equal to Operating Expenses as provided in Section 6 hereof.

 

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The Base Rent and estimated Operating Expenses shall be payable in advance on the first day of each calendar month during the Term.  The Base Rent, Operating Expenses, and any other amounts that are payable by Tenant to Landlord or otherwise due under the terms of this Lease are sometimes referred to collectively herein as “rent.”

 

3.3                               Place of Payment.  All rent payable hereunder shall be paid at the Ann Arbor, Michigan offices of Landlord set forth in Paragraph M of the Summary of Basic Lease Terms, or at such other place as Landlord may from time to time designate, in lawful money of the United States; provided, however, that certain of the Operating Expenses may be paid directly to the applicable vendors as outlined herein.  Landlord reserves the right to request that rent payments be made via electronic funds transfer (or “EFT”) payments, provided that any bank charge(s) for such EFT payments are commercially reasonable.

 

3.4                               Interest on Unpaid Sums.  If rent, or any other monetary sum required to be paid hereunder by Tenant to Landlord, is not paid when due, such sum shall accrue interest at the rate of eighteen percent (18%) per annum.  Said interest shall be charged from the date the amount in question was due until received by Landlord.

 

4.                                      SECURITY DEPOSIT

 

4.1                               Deposit Letter of Credit; Additional Deposit.  Landlord is currently holding a Current Letter of Credit (herein so called) in the amount of $2,500,000.00 pursuant to the Current Lease.  Tenant shall cause the Current Letter of Credit to be converted to cash and thereafter such amount increased by an additional $1,700,000.00 (the “Additional Deposit,” for a total of $4,200,000.00) as provided in Section 4.3 below, to be held by Landlord as security for Tenant’s faithful performance of every provision of this Lease, including but not limited to the provisions relating to the payment of rent (the “Security Deposit”), it being expressly understood that the Security Deposit is not an advance payment of rent or a measure of Landlord’s damages in case of default by Tenant.  Landlord shall be entitled to draw on the Security Deposit at any time during the Term of this Lease if, pursuant to the terms of this Lease, Landlord is entitled to utilize all or any part of the Security Deposit.  Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of rent or any other sum in default, or for the payment of amounts authorized hereunder which Landlord may spend or become obligated to spend hereunder by reason of Tenant’s default, or to compensate Landlord for other loss or damage authorized hereunder which Landlord may suffer hereunder by reason of Tenant’s default.  If any portion of the Security Deposit is to be so used or applied, Tenant shall, within ten (10) business days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the amount set forth in Paragraph F of the Summary of Basic Lease Terms, and Tenant’s failure to do so shall be deemed an Event of Default by Tenant under this Lease.  If Tenant shall fully and faithfully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof, shall be returned to Tenant (or Tenant’s assignee including a Permitted Assignee) within sixty (60) days after the expiration of the Term and after Tenant has vacated the Premises; however, in no event shall Landlord be under any obligation to return the Security Deposit earlier than thirty (30) calendar days after the expiration of the Term.  Tenant hereby agrees that in the event any mortgagee of the Building succeeds to Landlord’s interest in the Building by reason of foreclosure or deed in lieu thereof, unless the funds representing the Security Deposit are transferred and/or delivered by Landlord to such mortgagee, Tenant shall have no claim against such mortgagee for any deposit.  In addition, Tenant acknowledges and agrees that following an Event of Default by Tenant which remains uncured after the expiration of any applicable notice and cure period, and notwithstanding anything to the contrary herein, Landlord shall be entitled to hold the Security Deposit and apply said Security Deposit in payment of rent owed by Tenant.

 

4.2                               Reduction in Security Deposit.  Provided that between the Commencement Date and the fifth anniversary date of the Additional Premises Rent Commencement Date (the “Security Deposit Adjustment Date”): (a) no Event of Default shall have occurred hereunder; and (b) provided that, as of the Security Deposit Adjustment Date and quarterly thereafter during the Term:  (i) Tenant’s current financial statements, balance sheets and income statements shall demonstrate a positive liquidity ratio of at least 1.50 to 1.00; based on the ratio between Tenant’s unrestricted cash and cash equivalents, current and long-term marketable investments, and accounts receivable younger than 120 days, as compared to Tenant’s current liabilities excluding deferred revenue; (ii) Tenant shall have a market capitalization minimum of $150,000,000.00; and (iii) Tenant shall have an adjusted EBITDA (adjusted for non-cash charges) minimum of $3,000,000.00 (collectively, the “Financial Criteria”), then Tenant shall have the right, after the Security Deposit Adjustment Date, and subject to the satisfaction of the foregoing Financial Criteria,

 

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to reduce the amount of the Security Deposit to $2,100,000.00, which amount shall be subject to all of the terms and conditions set forth in Section 4.1 above as pertains to the Security Deposit. After any reduction hereunder, should any of the Financial Criteria cease to remain satisfied for two (2) successive calendar quarters, according to Tenant’s quarterly published reports, then Tenant shall within thirty (30) calendar days thereafter, re-deposit in cash the full amount of any previous reduction.

 

4.3                               Tenant to Convert Letter of Credit to Cash Deposit; Additional Deposit Amount.  Within thirty (30) days after the Commencement Date (the “Conversion Date”), Tenant shall convert the Deposit Letter of Credit to a cash security deposit (the “Cash Deposit”), on the terms contained in Sections 4.1 and 4.3.  When Tenant so converts the Security Deposit to a Cash Deposit, then Landlord shall promptly return the Deposit Letter of Credit as directed by Tenant or the issuer thereof, either at the same time as the Cash Deposit or within five (5) business days thereafter.  On or before the Conversion Date, Tenant will deposit the entire amount of the Cash Deposit ($2,500,000.00, plus the Additional Deposit of $1.700,000.00) in an escrow account (the “Escrow Account”), with such bank, title company or other escrow company as designated by Landlord and its mortgagee to act as escrow agent (“Escrow Agent”), subject to the following terms and conditions:  (a) the Escrow Account shall be opened for the benefit of both Landlord and Tenant, and Landlord shall have full rights thereto, subject to the conditions set forth in this Lease and any escrow instructions mutually agreed to by Landlord, Tenant and the Escrow Agent; (b) the Landlord shall cause the Escrow Account to be fully insured by the FDIC (up to any limitations on deposits set forth by the FDIC); (c) no other funds shall be deposited in the Escrow Account by either Landlord or Tenant; (d) any interest earned on the Escrow Account shall inure to the benefit of Tenant; (e) any costs incurred with respect to the Escrow Account shall be paid by Tenant (provided that each party shall be responsible for payment of its own attorneys’ fees); and (f) Landlord, Tenant and Escrow Agent shall enter into an escrow agreement in a form reasonably acceptable to all parties, but consistent with the terms of this Lease.  To the extent that the full amount of any Deposit Letter of Credit is converted to a Cash Deposit as set forth herein, Landlord shall return such Deposit Letter of Credit to Tenant either at the time of such Cash Deposit or within five (5) business days after the Cash Deposit is received.

 

4.4                               Replacement Guaranty.  Notwithstanding the foregoing, Landlord agrees that Tenant may substitute an Acceptable Guaranty, as hereafter defined, for the Security Deposit.  If Tenant provides an Acceptable Guaranty in accordance with the provisions of this paragraph, the Security Deposit shall be released and returned to Tenant, and shall not be required to be held under this Lease.  An “Acceptable Guaranty” is defined as an absolute guaranty of this Lease that (a) is from a guarantor that, at a minimum, is rated as a third party investment grade (i.e., a Standard and Poor’s rating of BBB) or better, and is acceptable to Landlord, in its reasonable discretion, and (b) is in a form acceptable to Landlord, in its sole discretion, and (c) is acceptable to Landlord’s mortgagee (the “Acceptable Guaranty Conditions”).  Without limiting the generality of the foregoing, if Tenant or its Permitted Assignee meets the Acceptable Guaranty Conditions, Landlord will consider Tenant or its Permitted Assignee as a stand-alone entity for purposes of determining a substitute Acceptable Guaranty, without the necessity of a third-party giving the Acceptable Guaranty.  Notwithstanding the foregoing, if at any time after Landlord accepts an Acceptable Guaranty hereunder Landlord or its mortgagee thereafter determine, using, in the case of Landlord only, commercially reasonable standards and discretion, that the Acceptable Guaranty Conditions are no longer satisfied, Landlord reserves the right to require Tenant to provide a Security Deposit in the amount set forth above in Section 4.1 or Section 4.2 above, as may be applicable.  Tenant’s failure to provide the foregoing within thirty (30) days after Landlord’s written request therefor shall constitute an Event of Default hereunder; provided, however, that if Tenant is diligently working toward obtaining the Security Deposit, and Tenant notifies Landlord thereof within the initial thirty (30) day period, which notification shall contain reasonable documentation evidencing Tenant’s efforts, Tenant shall have an additional period of time, not to exceed an additional thirty (30) days, in which to obtain such Security Deposit.

 

5.                                      USE

 

5.1                               Permitted Use.  Tenant shall use the Premises solely for general office and administrative use including the related uses set forth in Paragraph N of the Summary of Basic Lease Terms, and shall not use or permit the Premises to be used for any other purpose.

 

5.2                               Compliance with Laws.  Tenant shall, at its sole cost and expense, promptly comply with all applicable laws, statutes, ordinances, rules, regulations, orders and requirements in effect during the Term regulating

 

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the use or occupancy of the Premises, including the requirements of any board of fire underwriters or other similar body now or hereafter constituted.  Tenant will not use or permit the use of the Premises in any manner which may tend to create waste or a nuisance.  Tenant will at all times comply with all federal, state or local laws, ordinances and regulations (“Hazardous Materials Laws”) relating to the environment, health and safety, or to any materials constructed within the definition of hazardous substances, hazardous wastes, hazardous materials, toxic substances, or words of similar import under any applicable federal, state or local law, regulation, ordinance or policy (all, collectively, “Hazardous Materials”). The parties acknowledge that a pre-existing environmental condition exists in the groundwater table below 3333 Walnut Street, 1950 33rd Street and 3625 Walnut Street, and that Tenant has no liability whatsoever for such condition, unless during the Term Tenant, its affiliates, subsidiaries, members, principals, beneficiaries, partners, officers, directors, shareholders, employees, agents, contractors, invitees or licensees (each, a “Tenant Party” and collectively “Tenant Parties”) causes or permits to be caused any action that exacerbates the same.

 

5.3                               Insurance Cancellation.  Tenant shall not do or permit anything to be done on or about the Premises which in any way causes cancellation or increases the existing rate of any insurance policy covering the Building or any of its contents.  If any such action shall increase the rate of any such policy, Tenant shall pay the amount of such increase as additional rent.

 

5.4                               Landlord’s Rules and Regulations.  Tenant shall observe and comply with the Building rules and regulations attached hereto as Exhibit C or other rules and regulations which may be promulgated from time to time and such reasonable amendments and additions thereto as Landlord may from time to time promulgate on a non-discriminatory basis.  Landlord shall not be responsible to Tenant for the non-performance of said rules and regulations by any other tenants of the Building unless it interferes with Tenant’s quiet enjoyment of the Premises.

 

6.                                      OPERATING EXPENSES

 

6.1                               Tenant’s Obligations.  In addition to the Base Rent provided for herein above, Tenant shall pay to Landlord all Operating Expenses during the Term hereof.  It is the intention of Landlord and Tenant that Tenant continue to pay Operating Expenses in the same estimated amounts as Tenant was paying under the Current Lease, until the same are either (a) adjusted by including the Temporary OE Exclusion (hereinafter defined), which adjustment is to occur as of the Additional Premises Rent Commencement Date, or (b) otherwise re-estimated by Landlord as provided in Section 6.4.

 

6.2                               Definition.  Operating Expenses are intended to be inclusive of all costs of operating and maintaining the Building and the real property on which it is situated, except franchise, estate, inheritance, net income and excess profits taxes of Landlord, depreciation on the Building, interest on and principal retirement of Landlord’s mortgage loans, and leasing commissions.  In addition, from the Commencement Date through the day immediately preceding the Additional Premises Rent Commencement Date, Operating Expenses will also exclude any insurance, tax, maintenance or utility cost attributable to the building at 1950 33rd Street and/or the land at 3625 Walnut Street (the “Temporary OE Exclusion”).  On and after the Additional Premises Rent Commencement Date, Operating Expenses will thereafter include all costs and expenses previously excluded from Operating Expenses by the Temporary OE Exclusion. Landlord agrees to make reasonable efforts to minimize Operating Expenses insofar as such efforts are not inconsistent with Landlord’s intent to operate and maintain the Building in a first class manner.  Operating Expenses include but shall not be limited to the following:

 

6.2.1                     All ad valorem real property taxes, assessments, water and sewer rents, and other governmental impositions and charges whatsoever which may create a statutory lien upon the Building, the real property on which it is located or the Parking Areas as detailed on Exhibit E (including those Parking Areas related to prior 1950 building which is located on the same parcel as the Building but exclusive of the taxes attributable to the prior 1950 33rd Street Building and the 3625 Walnut Street land during such time as the Temporary OE Exclusion is in effect; on and after the Additional Premises Rent Commencement Date, Tenant will be responsible for real property taxes on all Parking Areas), which are assessed, levied or imposed during the Term of this Lease, surcharges levied upon or assessed against parking spaces or Exterior Areas, and any tax levy or license fee measured by the rent payable by Tenant under this Lease which may be in lieu of or in addition to current taxes (except Landlord’s net income taxes) or any obligation to any governmental entity assessed upon Landlord as a result of its ownership,

 

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operation or use of the Building and all reasonable costs and expenses incurred by Landlord in contesting or negotiating the same with the applicable governmental authority if Landlord, in its reasonable discretion, shall in good faith successfully contest or negotiate the same.

 

6.2.2                     All insurance costs and expenses incurred by Landlord for policies of insurance, insurance brokerage fee, reasonable loss control costs and self insured retentions covering the insurance described in Section 10.2 hereof.

 

6.2.3                     All costs and expenses of repairing, operating and maintaining the heating, ventilating and air conditioning system for the Building, including maintenance contracts therefor and the cost of all utilities required in the operation of such systems, except those required to be paid directly by Tenant.

 

6.2.4                     All costs and expenses to Landlord in providing standard services and utilities to the Building, including office janitorial services, window washing and utilities not separately metered; together with the cost of replacement of electric light bulbs and fluorescent tubes and ballasts and lighting fixtures.

 

6.2.5                     The reasonable cost incurred by Landlord’s accountants, and the reasonable costs of experts or other consultants necessary to assist the accountants, in making the computations as required hereunder.

 

6.2.6                     All costs and expenses incurred by Landlord in operating, managing, maintaining and repairing the Building, including but not limited to all sums expended in connection with the Exterior Areas for general maintenance and repairs, resurfacing, painting, re-striping, cleaning, sweeping and janitorial services, window washing, maintenance and repair of elevators, stairways, curbs and Building signs, sprinkler systems, planting and landscaping, Common Area lighting and other utilities, maintenance and repair of any fire protection systems, automatic sprinkler systems, lighting systems, storm drainage systems and other utility systems serving the Building and Exterior Areas, costs of supplies, personnel to implement such services and to police the Exterior Areas, rental and/or depreciation of machinery and equipment used in such maintenance and services, security and fire protection services, trash removal services, all costs and expenses pertaining to snow and ice removal, security systems, utilities, insurance premiums, and Landlord’s direct costs, if any, for workmen’s compensation insurance, wages, employment withholding and social security taxes, personal property taxes, fees for required licenses and permits, supplies, and reasonable and customary charges for professional management of the Building and Exterior Areas.  Costs and expenses incurred by Landlord in operating, managing and maintaining the Building which are incurred exclusively for the benefit of specific tenants of the Building will be billed accordingly and will not be included within the Operating Expenses.  Landlord, however, may cause any or all of said services to be provided by an independent contractor or contractors.

 

6.2.7                     Cost of capital improvements, structural repairs or replacements made to the Building in order to conform to or comply with applicable laws, ordinances, rules, regulations or orders of any governmental or quasi-governmental authority having jurisdiction over the Building or any such capital improvements, structural repairs or replacements designed primarily to reduce Operating Expenses.  Expenditures for the foregoing shall be amortized at a reasonable market rate of return over the useful life of such capital improvement or structural repair or replacement, as determined by Landlord’s accountants using generally accepted accounting principles; provided that the amortized amount of any cost-saving improvement shall be limited in any year to the corresponding reduction in Operating Expenses as a result thereof.

 

6.3                               Time of Payment.  Tenant shall pay to Landlord in advance, on the first day of each calendar month during the Term and any extensions hereof, one-twelfth (l/12) of the estimated annual Operating Expenses.  If the Term of this Lease commences on a day other than the first day of the month, Tenant shall pay to Landlord on the first day of the Term a sum determined by multiplying one three hundred sixty-fifth (1/365) of the estimated annual Operating Expenses by the number of days remaining in the first calendar month of the Term.

 

6.4                               Re-Estimation.  At any time and from time to time during the Term hereof, Landlord may furnish Tenant with written notice of a re-estimation of Annual Operating Expenses to reflect more accurately, in

 

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Landlord’s reasonable opinion, the current Operating Expenses.  Commencing on the first day of the calendar month next succeeding delivery of such notice to Tenant, and continuing on the first day of each subsequent calendar month during the Term (until subsequently re-estimated), Tenant shall pay to Landlord one-twelfth (1/12th) of the estimated Annual Operating Expenses, as re-estimated.

 

6.5                               Annual Adjustments; Reconciliation Statement.  Within ninety (90) calendar days after the commencement of each calendar year during the Term hereof or as soon as reasonably practicable thereafter Landlord shall furnish to Tenant an itemized statement (the “Reconciliation Statement”), setting forth the total Operating Expenses for the preceding calendar year, and the amount of estimated Operating Expenses paid by Tenant with respect to such calendar year.  If the amount of the Operating Expenses for such year exceeds the amount of estimated Operating Expenses paid by Tenant for such year, Tenant shall pay Landlord the deficiency within twenty (20) business days after receipt of the Reconciliation Statement.  If the amount of estimated Operating Expenses paid by Tenant with respect to such calendar year exceeds the amount of Operating Expenses, Tenant shall be entitled to a credit in the amount of such excess against the next payment(s) due to Landlord on account of Operating Expenses.  Until Tenant receives a Reconciliation Statement pursuant to this Section 6.5 setting forth a new amount of estimated Operating Expenses for the new calendar year, Tenant shall continue to pay such estimated Operating Expenses at the rate being paid for the year just completed.  Moreover, Tenant shall pay to Landlord, or deduct from the rent, as the case may be, on the date required for payment of estimated Operating Expenses as adjusted, the difference, if any, between the monthly installments of estimated Operating Expenses so adjusted for the new calendar year and the monthly installments of estimated Operating Expenses actually paid during each year since January 1.

 

6.6                               Tenant’s Audit Rights.  Within forty-five (45) days after Landlord furnishes its Reconciliation Statement to Tenant for any applicable calendar year (the “Audit Election Period”), Tenant may, at its expense, elect to audit Landlord’s Operating Expenses for such calendar year only, subject to the following conditions:  (a) there is no uncured Event of Default under this Lease; (b) the audit shall be prepared by an independent certified public accounting firm of recognized local, regional or national standing; (c) in no event shall any audit be performed by a firm retained on a “contingency fee” basis; (d) the audit shall commence within 30 days after Landlord makes Landlord’s books and records available to Tenant’s auditor and shall conclude within 60 days after commencement; (e) the audit shall be conducted during Landlord’s normal business hours at the location where Landlord maintains its books and records and shall not unreasonably interfere with the conduct of Landlord’s business; (f) Tenant and its accounting firm shall treat any audit in a confidential manner and shall each execute a mutually agreeable, commercially reasonable confidentiality agreement for Landlord’s benefit prior to commencing the audit; and (g) the accounting firm’s audit report shall, at no charge to Landlord, be submitted in draft form for Landlord’s review and comment before the final audit report is delivered to Tenant and Landlord, and Landlord shall have the right to point out claimed discrepancies or make suggestions with respect to such audit report, and any appropriate comments by Landlord which are accepted by Tenant’s auditor shall be incorporated into the final audit report, it being the intention of the parties that Landlord’s right to review is intended to prevent errors and not to unduly influence Tenant’s auditor in the preparation of the final audit report.  Landlord shall credit any overpayment determined by the final approved audit report against the next rent due and owing by Tenant or, if no further rent is due, refund such overpayment directly to Tenant within thirty (30) days of determination.  Likewise, Tenant shall pay Landlord any underpayment determined by the final approved audit report within thirty (30) days of determination.  The foregoing obligations shall survive the expiration or termination of this Lease.

 

6.6.1.                  If Tenant does not give written notice of its election to audit Operating Expenses during the Audit Election Period, Tenant acknowledges and agrees that the information contained on the Reconciliation Statement shall be deemed correct, and, Tenant waives the right to any further contest of the Operating Expenses for that year or prior years.  In the event Tenant timely exercises the aforementioned right to question or contest Landlord’s Reconciliation Statement, and Landlord and Tenant agree upon any such adjustment to the Reconciliation Statement, said adjustment shall be deemed the final settlement for the Operating Expense year in question and Tenant waives the right to any further contest of the Operating Expenses for that year or any prior years.

 

6.6.2                     This paragraph 6.6 shall not be construed to limit, suspend, or abate Tenant’s obligation to pay rent when due, including Operating Expenses.

 

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7.                                      UTILITIES AND SERVICES

 

7.1                               Tenant shall be responsible for arranging and paying for all utilities that will be used in the Building and Premises, including the Parking Areas and all other Exterior Areas.  Landlord shall have no responsibility for any costs of utilities serving the Building and Premises, including the Parking Areas and all other Exterior Areas, and Tenant hereby agrees to indemnify Landlord from and against any and all claims for such utilities.  If any electric, gas, water or other utility service becomes unavailable to the Building for any period of time, such unavailability shall not affect Tenant’s obligations under this Lease to pay Rent or otherwise.  Notwithstanding the foregoing, if such utility interruption or unavailability is caused by Landlord, then Landlord will use reasonable efforts to restore the interruption as soon as is reasonably practicable.  The parties acknowledge and agree that any electricity generated as a result of the new roof-top solar array (as more particularly described in Item E.3.j of the Base Building Improvements) will be used solely to benefit the Building, and shall not be used, sold or otherwise transferred by either Landlord or Tenant for the benefit of any other party or property.

 

8.                                      MAINTENANCE, REPAIRS AND ALTERATIONS

 

8.1                               Landlord’s Obligations.  Landlord, as an Operating Expense (unless excluded from Operating Expenses as provided in Article 6), shall maintain the structural integrity of the foundations, exterior roof and exterior walls (excluding the interior surface of exterior walls and all windows, doors and plate glass) of the Building, except that Tenant shall bear the cost of all repairs to the Building (including the Premises and the apparatus contained therein) which become necessary by reason of negligence or misuse by any Tenant Party and cost thereof shall be paid to Landlord on demand as additional rent.  Except for Tenant’s obligations or as agreed between Tenant and Landlord as provided in the following section, Landlord shall make all other repairs, provide general maintenance as Landlord deems reasonably necessary, and the cost thereof shall be included in the Operating Expenses.  Landlord shall have no obligation to commence any repair until a reasonable time not to exceed five (5) business days after the receipt by Landlord of written notice of the need for repairs or Landlord’s actual knowledge that such repair is required.

 

8.2                               Tenant’s Obligations.  Throughout the Term of this Lease, Tenant shall exercise due care in the use and occupancy of the Premises and the Building and shall, at its expense, repair all damage thereto caused by Tenant’s use thereof, as well as other maintenance and repair items that Landlord and Tenant agree in good faith shall be directly contracted, supervised and paid for by Tenant, including, but not limited to recycling programs, janitorial service, changing light-bulbs and light fixtures, interior window washing, carpet cleaning, etc.  Tenant, at Tenant’s expense, shall provide for all special or additional maintenance services required by Tenant’s special uses of the Premises, if any.  If Tenant fails to perform Tenant’s obligations under this section, Landlord may, without terminating this Lease, enter upon the Premises after three (3) calendar days prior written notice to Tenant (except in the event of an emergency, in which case Landlord shall not be required to give any prior notice), and put the same in good order, condition and repair, and the cost thereof shall be immediately due and payable upon demand as additional rent to Landlord.  Landlord shall have no liability to Tenant for any damage, inconvenience or interference with the use of the Premises by Tenant as a result of performing any such repair and maintenance, except for damage caused by the gross negligence or willful misconduct of Landlord.  Tenant will not bring into the Premises or permit the placing within the Premises of equipment or property exceeding the floor loads of the Building.

 

8.3                               Notification to Landlord.  Tenant agrees to promptly notify the Landlord or its representative of any accidents or defects in the Building of which Tenant becomes aware, including defects in pipes, electric wiring and heating, ventilation and air conditioning equipment or any other known condition which may cause injury or damage to the Building or any person therein.

 

8.4                               Surrender of Premises.  Upon the expiration or sooner termination of the Term, Tenant agrees to quit and surrender the Premises, broom-clean, in good condition and repair, ordinary wear and tear excepted, together with all keys and combinations to locks, safes and vaults and all improvements, alterations, additions, lighting fixtures and equipment at any time made or installed in, upon or to the interior or exterior of the Premises (except personal property, signs and trade fixtures put in at Tenant’s expense) all of which shall thereupon become the property of Landlord without any claim by Tenant therefor, but the surrender of such property to Landlord shall not be deemed to be a payment of rent or in lieu of any rent reserved hereunder.  Before surrendering the Premises,

 

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Tenant shall remove all of Tenant’s personal property, signs, trade fixtures, any computer, telecommunications or other cabling (collectively, “Cabling”) installed by or for the benefit of Tenant in the Premises or elsewhere in the Building, any above-building-standard leasehold improvements the removal of which would require in excess of standard demolition costs (e.g., raised flooring, interior stairwells) (collectively, “Special Removable Leasehold Improvements”) and, at Landlord’s option, Tenant shall also remove any alterations, additions, fixtures, equipment and decorations at any time made or installed by Tenant in, upon or to the interior or exterior of the Premises, and Tenant further agrees to repair any damage caused thereby.  Notwithstanding the foregoing, Landlord may, by notice to Tenant given at least sixty (60) days prior to the expiration of this Lease (or in the case of earlier termination, within ten (10) business days after such earlier termination) require Tenant to leave any Cabling and/or Special Removable Leasehold Improvements at the Premises.  If Tenant shall fail to remove any of Tenant’s personal property and trade fixtures, then at the option of Landlord, either the same shall be deemed abandoned and become the exclusive property of Landlord, or Landlord shall have the right to remove and store said property, at the expense of Tenant, without further notice to or demand upon Tenant and hold Tenant responsible for any and all reasonable charges and expenses incurred by Landlord therefor.  If the Premises are not surrendered upon termination of this Lease, Tenant shall indemnify Landlord against all loss or liability resulting from the delay by Tenant in so surrendering the same, including, without limitation, any claims made by any succeeding occupant disclosed to Tenant and founded on such delay. Tenant’s obligations under this section shall survive the expiration or sooner termination of the Term.

 

8.5                               Condition as of Commencement Date.  Tenant accepts the Current Premises in their present, “as is” condition as of the Commencement Date, and acknowledges and agrees that Landlord has no obligation to repair or otherwise improve the same, except as provided in the Current Premises Work Letter.  Landlord acknowledges that there are no Special Removable Leasehold Improvements existing in the Current Premises as of the Commencement Date.  Tenant’s acceptance of the Additional Premises shall be governed by the provisions of Section 1.3 hereof.

 

8.6                               Notwithstanding the foregoing, Landlord and Tenant acknowledge and agree that as of the date of this Lease, Tenant has in-house maintenance personnel (the “In-House Maintenance Personnel”) who currently attend to all ordinary maintenance and repair obligations in and around the Building, including certain maintenance and repair obligations that would ordinarily be Landlord’s responsibility hereunder, consisting of all non-capital maintenance, repair and replacement to the interior and exterior of the Building, with the exception of snow removal and landscaping (collectively, the “Tenant-Managed Maintenance/Repairs”).  Landlord agrees that, so long as: (a) Tenant is the sole tenant in the Building; (b) the In-House Maintenance Personnel continue to conduct the Tenant-Managed Maintenance/Repairs in a good and workmanlike manner, in compliance with all laws, and otherwise in a manner so as to maintain the Building consistent with the manner in which it is being maintained as of the date of this Lease; (c) the Tenant-Managed Maintenance/Repairs are conducted at Tenant’s sole cost, and Tenant timely pays any amounts owing to any outside vendors or others retained by Tenant so that at no time will the Building or property be subject to any claim for a lien; (d) Tenant provides Landlord with reasonable records or other documentation regarding Tenant-Managed Maintenance/Repairs from time-to-time as may be requested by Landlord; (e) Tenant continues to conduct the Tenant-Managed Maintenance/Repairs using In-House Personnel, and does not outsource the same to one or more third-party contractors; and (f) Tenant provides Landlord with notice of any Major Repair (hereinafter defined) and permits Landlord to supervise any Major Repair as provided below (the “Tenant-Managed Maintenance/Repairs Conditions”), then Tenant will be permitted to continue to use its In-House Maintenance Personnel for the Tenant-Managed Maintenance/Repairs and Landlord will not include the costs of such Tenant-Managed Maintenance/Repairs as Operating Expenses hereunder.

 

Prior to conducting any repair or replacement that (a) is estimated to cost more than $5,000.00; and (b) affects the structure of the Building, the elevators of the Building or the Building mechanical systems (HVAC, electrical, plumbing, life safety or other similar systems) (a “Major Repair”), Tenant shall notify Landlord in writing of the proposed Major Repair, and Landlord shall have the right, at its option, to either manage such Major Repair using its own personnel and pass the costs through to Tenant as an Operating Expense, or permit Tenant to continue with such Major Repair, but with supervision by Landlord as Landlord deems reasonably appropriate in the circumstances, in which case any reasonable and necessary costs associated with such supervision by Landlord, not to exceed five percent (5%) of the cost of the Major Repair, shall be passed through to Tenant as an Operating Expense.

 

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If at any time Tenant fails to satisfy any of the Tenant-Managed Maintenance/Repairs Conditions, Landlord shall have the right, upon thirty (30) days’ prior written notice to Tenant, to elect to have Landlord take over the Tenant-Managed Maintenance/Repairs for the Building (or any portion thereof), in which case the reasonable costs of such Tenant-Managed Maintenance/Repairs shall become Operating Expenses hereunder (unless excluded from Operating Expenses as provided in Article 6).

 

9.                                      ALTERATIONS AND ADDITIONS

 

9.1                               Landlord’s Consent Required.  Except for alterations which are cosmetic in nature and do not require the issuance of a building permit (e.g., painting), Tenant shall not make any alterations or additions to the Premises without first obtaining Landlord’s written consent.  Tenant shall cause any such repair or alteration approved by Landlord to be done promptly and in a good and workmanlike manner in accordance with the plans and specifications submitted to Landlord and such rules and regulations as may be established by Landlord.  With respect to cosmetic alterations which do not require Landlord’s approval, Tenant shall give Landlord at least ten (10) business days’ prior written notice of its intent to perform such alterations.  All work, whether or not Landlord’s consent is required, shall be performed in a good and workmanlike manner and in accordance with applicable building codes and governmental regulations.  Except for minor alterations that do not require Landlord’s consent hereunder, all work done and material supplied shall be done or supplied only by contractors approved by Landlord, and Landlord shall have the right to grant such approval conditionally or to withdraw the same at any time; provided that Landlord’s election does not increase the cost to Tenant.  Tenant shall, at Tenant’s sole cost and expense, be responsible for any and all maintenance, repair, malfunction and/or replacement of any and all additions, alterations, and modifications made to, and/or installed in the Premises during the performance of any tenant improvement work, whether or not Landlord’s consent is required.  Prior to commencement of any and/or all tenant improvement work, whether or not Landlord’s consent is required, Tenant shall provide Landlord with all Proof of Insurance certificates.  Landlord shall not be responsible for any equipment loss due to problems beyond the Landlord’s control (i.e. power outages).

 

9.2                               Payment for Work.  All costs of any work performed by or at the instance of Tenant shall be paid promptly by Tenant so as to avoid the assertion of any mechanic’s and/or materialmen’s liens. Within thirty (30) calendar days after receipt of notice thereof, Tenant shall discharge, by bonding, payment or other means acceptable to Landlord, any mechanic’s lien filed against the Premises or the Building resulting from material or labor furnished or performed at the instance or request of Tenant.  If the lien is not discharged within said thirty (30) day period, Landlord shall have the right, but not the obligation, to discharge said lien by payment, bonding or otherwise, and the costs and expenses to Landlord of obtaining such discharge shall be paid to Landlord by Tenant on demand as additional rent.  Landlord shall have the right at any time and from time to time to post and maintain on the Premises and Building such notices as Landlord deems necessary to protect the Premises against mechanic’s liens. Tenant shall provide Landlord with copies of all lien releases and all such lien releases shall be notarized.

 

10.                               INSURANCE

 

10.1                        Tenant’s Insurance.  Tenant shall, at all times during the Term hereof and at its own cost and expense, procure and maintain in force worker’s compensation insurance and bodily injury liability and property damage and contractual liability insurance naming Landlord, and any interested persons, related firms or corporations expressly designated by Landlord, and any mortgagee of the Building of whose identity Tenant is notified, as additional insureds, against liability for injury or death of any person in connection with the use, operation or condition of the Premises.  Liability insurance shall at all times be in an amount not less than the amount set forth in Paragraph L of the Summary of Basic Lease Terms for bodily injury and property damage, and may be provided by one or more policies of insurance.  The limits of any such insurance shall not limit any excess liability of Tenant.  Tenant shall, at all times during the Term hereof, at its cost and expense, maintain in effect policies of insurance covering its fixtures, equipment, and leasehold improvements installed by Tenant (in excess of any cost thereof paid by Landlord) located on the Premises, in the amount of their full replacement value, providing protection against any peril included in the classification of all risk coverage, including vandalism and malicious mischief.

 

10.2                        Landlord’s Insurance.  Landlord shall procure and maintain (as an Operating Expense reimbursed by Tenant), during the Term of this Lease, the following types of insurance covering the following:

 

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(a) the real property of which the Premises is a part, in an amount not less than one hundred percent (100%) of the replacement value of the Building and other improvements located within such real property, as such replacement value may change from time to time, providing protection against any peril generally included within the designation “all risk” (which may include earthquake and flood insurance among other things) and coverage for vandalism and malicious mischief;

 

(b) the rents payable under this Lease; and

 

(c) any general liability coverage, premises liability coverage or other type of insurance in commercially reasonable amounts relating to claims arising under negligence, intentional tort, or strict liability theories brought by any party in connection with the Premises or any condition or use thereof.

 

Tenant shall pay the cost of such insurance as part of the Operating Expenses.  The Landlord will also, throughout the Term hereof carry public liability and property damage insurance with respect to the use and operation of the Building.  Tenant shall have no right to any portion of the proceeds of any insurance carried by Landlord.

 

10.3                        Form or Policies.  All insurance required to be carried by Tenant hereunder shall be with companies licensed to underwrite insurance within Colorado, naming Landlord, its management company, the holder of any mortgage on the Premises, any ground lessor, and any other interested persons, related firms or corporations expressly designated by Landlord, as an additional insured with respect to the operations and activities of Tenant in, or in connection with Tenant’s occupancy of, the Premises.  Copies of all such policies or certificates issued by the insurance company evidencing the existence and amounts of such policies shall be delivered to Landlord upon written request.  No such policy shall be cancelable or subject to modification except after thirty (30) calendar days prior written notice to Landlord and any mortgagee required to be named thereunder.  Tenant shall, within thirty (30) calendar days prior to the expiration of such policies furnish Landlord with renewals thereof, or Landlord may order such insurance and charge the cost thereof to Tenant, which amount shall be payable by Tenant upon demand as additional rent.  All policies of insurance required to be obtained by Tenant and by Landlord shall contain a waiver by the insurer of any rights of subrogation.

 

11.                               INDEMNITY

 

11.1                        Indemnification of Landlord.  Tenant shall indemnify and hold Landlord and its designated trustees, affiliates, subsidiaries, members, principals, beneficiaries, partners, officers, directors, shareholders, employees, mortgagee(s) and agents (including the manager of the Building) (collectively, “Landlord Parties”) harmless from and against any and all losses, claims and damages arising from Tenant’s use of the Premises or the conduct of its business or from any act or omission to act, activity, work or thing done, permitted or suffered by Tenant in or about the Premises.  Tenant shall further indemnify and hold the Landlord Parties harmless from and against any and all claims arising from any breach or default in the performance of any obligation of Tenant to be performed under the terms of this Lease, or arising from any act or negligence of Tenant or any other Tenant Parties, and from and against all costs, reasonable attorney’s fees, expenses and liabilities incurred in connection therewith.  In case any action or proceeding is brought against Landlord, Tenant shall defend the same at Tenant’s expense by counsel satisfactory to Landlord.  Tenant, as a material part of the consideration to Landlord, hereby assumes all risks of damages to property or injury to person in, upon or about the Premises during the Term caused by Tenant or a Tenant Party including their guests or invitees.  The indemnity shall also apply during Tenant’s occupancy of the Additional Premises prior to the Additional Premises Rent Commencement Date.  The indemnities of this Section 11 shall not apply, however, in respect of any notice, claim, demand, loss, damage or other proceeding arising from or related to the pre-existing environmental condition mentioned in Section 5.2 hereof unless a Tenant Party causes or permits to be caused any action that exacerbates the same.

 

11.2                        Indemnification of Other Tenants.  In the event that Tenant assigns its interest hereunder or sublets the Premises, in whole or in part, or if Tenant otherwise relinquishes its right to any portion of the Premises such that other tenants occupy the Building to any extent, then Tenant shall indemnify and hold harmless such other

 

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tenants of the Building, if any, from any loss or damage caused to the Building owing to the leakage or escape of water, gas or other substances from any pipes, machinery or equipment installed by Tenant or any other Tenant Parties within the Building.  Landlord shall secure similar indemnities from any tenants other than Tenant, Tenant’s assignees, and Tenant’s subtenants.

 

11.3                        Landlord’s Liability.  Landlord, except in the case of its gross negligence or willful misconduct, or that of its agents, shall not be liable for injury or damage which may be sustained by the person, goods, wares, merchandise or property of Tenant, its employees, invitees or customers, or any other person in or about the Premises caused by or resulting from theft, or fire, or from steam, electricity, gas or water, which may leak, or flow from or into any part of the Premises, or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the same.  All of Tenant’s property shall be kept stored and maintained at the sole risk of Tenant.  Landlord shall not be liable for any damages arising from any act or neglect of any tenant of the Building except those acts for which the Landlord was grossly negligent or participated in willful misconduct.

 

11.A                      SUBROGATION

 

Landlord and Tenant hereby waive any and all rights of recovery against the other, their officers, agents, and employees (whether or not such rights are caused by negligence of the other party, and notwithstanding any provisions contained in this Lease to the contrary) occurring out of the use and occupancy of the Premises for loss or damage to their respective real and/or personal property arising as a result of a casualty or condemnation contemplated by Sections 12 or 18.  Each of the parties shall, upon obtaining the policies of insurance required by this Lease, notify the insurance carrier that the foregoing waiver is contained in this Lease and shall require such carrier to include an appropriate waiver of subrogation provision in the policies.

 

12.                               DAMAGE, DESTRUCTION AND BUSINESS INTERRUPTION

 

12.1 Repair of Damage to Premises.  In the event the Premises or the Building are damaged by fire or other insured casualty and insurance proceeds have been made available therefor by the holder or holders of any mortgages or deeds of trust encumbering the Building, the damage shall be repaired by and at the expense of Landlord to the extent of such insurance proceeds available therefor (except that Landlord shall have no obligation to rebuild, replace or repair any leasehold improvements installed by Tenant in excess of any cost thereof paid by Landlord), provided such repairs can, in Landlord’s sole opinion, be completed within one hundred twenty (120) calendar days after the occurrence of such damage without the payment of overtime or other premiums.  Until such repairs are completed, rent shall be abated in proportion to the part of the Premises which is unusable by Tenant in the conduct of its business (but there shall be no abatement of rent by reason of any portion of the Premises being unusable for a period equal to one day or less).  If the damage is due to the fault or neglect of any Tenant Party, there shall be no abatement of rent.  If Landlord determines that such repairs cannot, in Landlord’s sole opinion, be completed within such one hundred twenty (120) calendar days, Landlord shall notify Tenant of the same, and Landlord may at its option make such repairs within a reasonable time and in such event, this Lease shall continue in effect and rent shall be abated in the manner provided above; however, if Landlord elects not to make such repairs, then either party may, by written notice to the other within thirty (30) calendar days after such election, terminate this Lease as of the date of the occurrence of such damage, and both parties hereto shall be freed and discharged of all further obligations hereunder.

 

12.2                        Building Damage.  If the Building throughout shall be injured or damaged, whether by fire or otherwise (though the Premises may not be affected, or if affected, can be repaired within one hundred fifty (150) calendar days) to the extent of more than thirty-three and a third percent (33 1/3%) of the replacement value, and within sixty (60) calendar days after the happening of such injury Landlord shall decide not to reconstruct or rebuild said Building, then, notwithstanding anything contained herein to the contrary, upon notice in writing to that effect given by Landlord to Tenant within said sixty (60) calendar days, Tenant shall pay the rent, properly apportioned up to the date of such damage, this Lease shall terminate as of such date, and both parties hereto shall be freed and discharged of all further obligations hereunder, except for any obligations that expressly survive the termination of this Lease.

 

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13.                               TENANT TAXES

 

13.1                        Personal Property.  Tenant shall pay, prior to delinquency, all taxes, assessments, license fees and public charges levied, assessed or imposed upon or measured by the value of its business operation, including but not limited to the furniture, fixtures, leasehold improvements, equipment and other property of Tenant at any time situated upon or installed in the Premises by Tenant.  Tenant shall cause all such personal property to be assessed and billed separately from the real property of Landlord.

 

13.2                        Increase in Taxes.  If at any time during the Term of this Lease any of Tenant’s property is assessed as a part of the Premises, or if the assessed value of the Landlord’s property is increased by the inclusion therein of a value placed on Tenant’s property, Tenant shall pay to Landlord upon demand, as additional rent, the amount of any such additional taxes as may be levied against the Building by reason thereof.

 

14.                               EXTERIOR AREAS

 

14.1                        Definition.  The term “Exterior Areas” means all areas and facilities located on the property but not within the Building itself.  Exterior Areas include, but are not limited to, pedestrian sidewalks, stairways, landscaped areas, Parking Areas (as defined in Exhibit E), private streets and lighting or utilities.

 

14.2                        Maintenance.  Landlord will maintain, operate and repair (or cause others to do so) all of the Exterior Areas and keep the same in clean and sightly condition during the Term of this Lease; the cost for which is included within Operating Expenses.  Landlord shall have the right to adopt and promulgate reasonable rules and regulations from time to time concerning the Exterior Areas.  For the purpose of maintenance and repair, or to avoid an involuntary taking or to prevent the public from obtaining prescriptive rights, Landlord may temporarily close portions of the Exterior Areas, and such actions shall not be deemed an eviction of Tenant or a disturbance of Tenant’s use of the Premises.

 

14.3                        Tenant’s Rights and Obligations.  Landlord grants to Tenant, during the Term of this Lease, the non-exclusive right and license to use, for the benefit of Tenant and its officers, agents, employees, customers and invitees, in common with others entitled to such use, the Exterior Areas as they from time to time exist, subject to the rights and privileges of Landlord reserved herein.  Tenant shall not at any time interfere with the rights of Landlord and others entitled to use any part of the Exterior Areas, and shall not store, permanently or temporarily, any materials, supplies or equipment in the Exterior Areas.

 

14.4                        Changes to Exterior Areas.  Landlord shall have the right at any time during the Term to change the location of entrances to the Building and change, alter, remodel, reduce or improve the Exterior Areas without compensation to Tenant.  For such purposes, Landlord may, if necessary, enter, pass through and work upon the Premises; provided that Landlord shall carry out such work diligently and reasonably, without unreasonable noise, interference or disruption, and in such a manner as shall not unreasonably interfere with Tenant’s access, use or occupancy of the Premises for its business.

 

15.                               SUBLETTING AND ASSIGNMENT

 

15.1                        No Subletting or Assignment.  Except as provided in the following sentence, Tenant shall not sublet all or any part of the Premises, nor assign this Lease or any interest herein, nor mortgage, pledge, encumber or otherwise transfer this Lease or any part hereof, without the prior written consent of Landlord which consent, if required, shall not be unreasonably withheld, conditioned or delayed.  Notwithstanding the foregoing, Tenant shall be allowed to freely assign this Lease, in whole or in part, to any entity which controls, is controlled by or is under common control with Tenant, or which acquires a controlling interest in the assets, business, and/or capital stock of Tenant, including any successor entity that results from merger, acquisition, or related transaction (a “Permitted Assignee”), without the consent of Landlord.  No assignment or subletting by Tenant shall relieve Tenant of its obligations under this Lease unless the parties expressly agree otherwise.

 

In the event Tenant should desire to assign this Lease or sublet the Premises or any part thereof, to any party other than its Permitted Assignee, Tenant shall give Landlord written notice that shall specify (a) the name and business of the proposed assignee or sublessee, (b) the amount and location of the space affected, (c) the proposed

 

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effective date and duration of the subletting or assignment, and (d) the proposed rental to be paid to Tenant by such sublessee or assignee.

 

If the proposed assignment or sublease is not to a Permitted Assignee, the provisions of this paragraph shall apply, and Landlord shall then have a period of thirty (30) calendar days following receipt of such notice within which to notify Tenant in writing that Landlord elects either (1) to terminate this Lease as to the space so affected as of the date so specified by Tenant and reclaim that portion of the Premises, in which event Tenant shall be released from any further Lease obligations associated with such reclaimed portion arising on or after the date of such termination (except for such obligations that expressly survive the termination of this Lease), (2) to permit Tenant to assign or sublet such space, in which event Tenant may accept rent up to the amount that will equal, but not exceed the current rent contracted-for with Landlord.  Tenant is hereby prohibited from making a profit in any way on the specified Premises, or (3) to not consent to such assignment or sublease, in which case Landlord shall provide Tenant with reasonably detailed documentation as to why it is withholding consent and why it believes that such withholding of consent is reasonable in the circumstances.  By way of example, Landlord would be deemed to be reasonably withholding consent if (a) any portion of the Building or Premises would likely become subject to additional or different laws as a consequence of the proposed transfer; (b) the proposed transferee’s use of the Premises conflicts with the permitted use allowable hereunder; (c) the use, nature, business, activities or reputation in the business community of the proposed transferee (or its principals, employees or invitees) does not meet Landlord’s reasonable and uniformly enforced standards for Building tenants (such as, by way of example, but not limitation, collection agencies, governmental agencies, massage parlors, medical marijuana dispensaries); or (d) the proposed transferee is or has been involved in litigation with Landlord or any of its affiliates within the past two (2) years.  If the proposed rental rate between Tenant and any sublessee is greater than the rental rate of this Lease, then such excess rental is to be deemed additional rent owed by Tenant to Landlord under this Lease, and the amount of such excess, including any subsequent increases due to escalation or otherwise, shall be paid by Tenant to Landlord in the same manner that Tenant pays the rental hereunder and in addition thereto.

 

15.2                        Documentation.  All documents utilized by Tenant to evidence any subletting or assignment to which Landlord has consented shall be subject to prior written approval by Landlord or its counsel.  Tenant shall submit all financial statements and relevant information for the proposed subtenant or assignee as is reasonably requested by Landlord.  Tenant shall pay, as additional rent, a reasonable fee not to exceed One Thousand Five Hundred Dollars ($1,500.00) for all Landlord’s costs and expenses, including reasonable attorneys’ fees, incurred in determining whether or not to consent to any requested subletting or assignment and in reviewing and approving such documentation.

 

15.3                        Subletting Rents.  Acceptance of Rent by Landlord from anyone other than Tenant shall not be construed as a waiver by Landlord of any provision of this Lease, nor as a release of Tenant, but the same shall be taken to be a payment on account of Tenant.

 

15.4                        Special Provisions Regarding Permitted Office Sharing.  Notwithstanding anything to the contrary contained in this Article 15, Tenant, without obtaining Landlord’s prior consent but upon prior notice as more fully set forth below, and provided that Tenant has taken possession of the Additional Premises and commenced paying Rent, may sublease or license up to twenty five percent (25%) of the Premises in the aggregate at any time during the Lease Term to one (1) or more persons or entities engaged in a similar profession to Tenant (each such individual or entity, a “Permitted Office Share User”, and such transaction, a “Permitted Office Share”), provided that:  (a) Tenant shall require each Permitted Office Share User to comply with the terms and provisions of this Lease, (b) Tenant shall at all times remain liable for all of the obligations of Tenant under this Lease, including without limitation, the indemnity provisions contained in this Lease, and shall be responsible for each Permitted Office Share User in the same manner, and subject to the same terms and conditions, as if such Permitted Office Share User were part of the “Tenant” under this Lease; and (c) Tenant shall not make any profit by reason of entering into any Permitted Office Share and to the extent that there is any excess rent paid to Tenant in connection with any such Permitted Office Share, such excess shall be paid over to Landlord as provided in Section 15.1 above.  Tenant shall provide Landlord at least thirty (30) days’ prior written notice of any Permitted Office Share, and shall include with such notice a copy of the sublease, license, or use or other occupancy agreement between Tenant and such Permitted Office Share User.

 

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16.                               TENANT’S DEFAULT

 

16.1                        Default.  If (a) Tenant shall fail to make the payment of any sum required to be paid by Tenant under this Lease within five (5) calendar days after the same is due; or (b) Tenant shall fail to perform any of the other covenants or conditions which Tenant is required to observe and to perform, and such default shall continue for twenty (20) calendar days after written notice thereof form Landlord to Tenant (or, if such default is not capable of being cured within 20 days, if Tenant does not commence to cure such default within such 20 day period, or thereafter does not diligently prosecute such cure to completion), or (c) the interest of Tenant under this Lease shall be levied upon under execution or other legal process, or (d) any petition shall be filed by or against Tenant to declare Tenant a debtor under the Federal Bankruptcy Code, for the reorganization or rehabilitation of Tenant or to delay, reduce or modify Tenant’s debts or obligations (and, if such petition is an involuntary petition, such petition is not dismissed within 90 days after the same is filed), or (e) other than by merger, acquisition or initial public offering, any petition shall be filed or other action taken to otherwise reorganize or modify Tenant’s capital structure if Tenant is a corporation or other entity; or (f) Tenant is declared insolvent according to law by a court having jurisdiction; or (g) any assignment of Tenant’s property shall be made for the benefit of creditors; or (h) if a receiver or trustee is appointed by a court for Tenant or Tenant’s property as part of foreclosure or insolvency proceedings; or (i) Tenant fails to take possession of the Premises on the Commencement Date of the Term of this Lease or thereafter fails to occupy and conduct its business on the Premises on a substantially continuous basis, then Landlord may treat the occurrence of any one or more of the foregoing events as a default under this Lease (“Event(s) of Default”).

 

16.2                        Remedies.  Upon the occurrence of an Event of Default under this Lease by Tenant, Landlord shall have all of the following remedies, which remedies shall be cumulative, and which remedies shall be in addition to all rights and remedies provided at law or in equity:

 

16.2.1              Landlord may terminate this Lease and forthwith repossess the Premises and be entitled to recover as damages a sum of money equal to the total of (i) the cost of recovering the Premises, including Landlord’s reasonable attorneys’ fees; (ii) any unpaid Base Rent and additional rent earned at the time of termination, plus interest thereon at the rate of eighteen percent (18%) per annum from the due date; (iii) the balance of the Base Rent for the remainder of the Term less the reasonable rental value received by Landlord if the Premises are subleased for all or any remaining part of such Term; (iv) all Operating Expenses accruing during the remainder of the Term (which may either be the actual Operating Expenses, or a reasonable estimation thereof based on past use and custom), less the value received by Landlord if the Premises are subleased for all or any remaining part of such Term; (v) damages for any wrongful withholding of the Premises by Tenant; and (vi) any other sum of money owed by Tenant to Landlord hereunder.

 

16.2.2              Landlord may retake possession of the Premises and in that event shall have the obligation to the extent required by applicable law, but without being deemed to have accepted a surrender thereof and without terminating this Lease, to undertake commercially reasonable efforts to re-let the Premises for the remainder of the Term provided for herein, upon commercially reasonable terms and conditions satisfactory to Landlord; and if the rent received through such re-letting does not at least equal the Base Rent and additional rent provided for herein, Tenant shall pay and satisfy any deficiency between the amount of the rent contracted-for herein and that received through re-letting; and, in addition, Tenant shall pay all reasonable expenses incurred in connection with such re-letting, including, but not limited to, the reasonable cost of necessary repairs, renovations or alterations for an occupant, leasing commissions paid to any real estate broker or agent, and reasonable attorneys’ fees incurred.

 

16.3                        Late Charges.  Tenant hereby acknowledges that the timely payment of rent is of the essence and that late payment by Tenant to Landlord of rent and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will 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 Premises.  Accordingly, if any rent or other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) business days after the said amount is due, Tenant shall pay to Landlord a late charge, equal to five percent (5%) of such overdue amount.  The parties hereby agree that such late charge represents a fair and reasonable estimate of the cost Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of

 

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Tenant’s default with respect to such overdue amount nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

 

16.4                        Cumulative Remedies.  Suit or suits for the recovery of the rents and other amounts and damages set forth herein above may be brought by Landlord, from time to time, at Landlord’s election and nothing herein shall be deemed to require Landlord to await the date on which this Lease or the Term hereof would have expired by limitation had there been no such Event of Default by Tenant, or no such termination, as the case may be.  Each right and remedy provided for in this Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease or hereafter existing at law or in equity or by statute or otherwise including, but not limited to, suits for injunctive relief and specific performance.  The exercise or beginning of the exercise by Landlord of any one or more of the rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by Landlord of any or all other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise.  All such rights and remedies shall be considered cumulative and nonexclusive.  All costs incurred by Landlord in connection with collecting any rent or other amounts owing by Tenant pursuant to the provisions of this Lease, or to enforce any provision of this Lease, including reasonable attorneys’ fees from the date such matter is turned over to any attorney, whether or not one or more actions are commenced by Landlord, shall also be recoverable as damages by Landlord from Tenant.

 

16.5                        No Waiver.  No failure by Landlord to insist upon the strict performance of any agreement, term, covenant or condition hereof or to exercise any right or remedy consequent upon a breach thereof, and no acceptance of full or partial rent during the continuance of any such breach, shall constitute a waiver of any such breach or of such agreement, term, covenant or condition.  No agreement, term, covenant or condition hereof to be performed or complied with by Tenant, and no breach thereof, shall be waived, altered or modified except by written instrument executed by Landlord.  No waiver of any breach shall affect or alter this Lease, but each and every agreement, term, covenant and condition hereof shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. Notwithstanding any termination of this Lease, the same shall continue in force and effect as to any provisions which require observance or performance by Landlord or Tenant subsequent to such termination.

 

16.6                        Bankruptcy.  Nothing contained in this Section 16 shall limit or prejudice the right of Landlord to prove and obtain as liquidated damages in any bankruptcy, insolvency, receivership, reorganization or dissolution proceeding, an amount equal to the maximum allowed by any statute or rule of law governing such a proceeding and in effect at the time when such damages are to be proved, whether or not such amount be greater, equal to or less than the amounts recoverable, either as damages or rent, referred to in any of the preceding provisions of this section.

 

16.7                        Landlord’s acceptance of such partial payment of rent after Landlord files a written complaint pursuant to Section 16.2, in no event constitutes a waiver of any rights, remedies or defense granted to Landlord hereunder. Landlord shall be entitled to amend the complaint to reflect said partial payment without creating the necessity for the filing of an additional answer or other responsive pleading by the Tenant, and without prior leave of the court unless required by law, and such an amendment shall not delay the matter from proceeding.

 

16.8                        If a Tenant’s check for payment of any kind is returned for any reason, all future payments including late fees, attorney fees, monthly rent, and any other unpaid balances that are outstanding, must be made by EFT according to Section 3.3 above and/or with certified funds.

 

17.                               LANDLORD’S DEFAULT

 

17.1                        Notice of Landlord.  Landlord shall in no event be charged with default in the performance of any of its obligations hereunder unless and until Landlord shall have failed to perform such obligation within thirty (30) days (or within such additional time as is reasonably required to correct any such default if, within such thirty (30) day period Landlord begins to perform and diligently prosecutes its performance continuously thereafter) after receipt of written notice to Landlord by Tenant properly specifying wherein Landlord has failed to perform any such obligations.

 

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17.2                        Notice to Mortgagee.  If the holder of record of any mortgage covering the Premises shall have given prior notice to Tenant that it is the holder of a mortgage and such notice includes the address at which notices to such mortgagee are to be sent, then Tenant shall give notice to the holder of record of such mortgages simultaneously with any notice given to Landlord to correct any default of Landlord as herein above provided.  The holder of record of any such mortgage shall have the right, within thirty (30) calendar days after the expiration of Landlord’s cure period in which to correct or remedy such default before Tenant may take any additional action under this Lease by reason of such default.  Any notice of default given Landlord shall be null and void unless such notice has also been given to all mortgagees whose addresses have theretofore been given to Tenant.

 

17.3                        Landlord’s Liability.  Anything in this Lease to the contrary notwithstanding, Tenant agrees that it will look solely to the estate and property of Landlord in the Building and underlying land, including applicable insurance policies, for the collection of any judgment requiring the payment of money by Landlord in the event of any default or breach by Landlord with respect to the terms of this Lease; and no other assets of Landlord or any partner of Landlord shall be subject to levy, execution or other procedures for the satisfaction of Tenant’s remedies.

 

18.                               CONDEMNATION

 

18.1                        Effect of Taking.  If the Premises or any portion thereof are taken under the power of eminent domain, or sold by Landlord under the threat of the exercise of said power (all of which is herein referred to as “Condemnation”), Landlord shall promptly notify Tenant upon receiving written notification from a condemning authority, and this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever occurs first.  If more than twenty-five percent (25%) of the floor area of the Premises is taken by Condemnation, either party may, at its option, terminate this Lease as of the date the condemning authority takes possession, by providing notice, in writing, of its intent to terminate not later than twenty (20) calendar days after Landlord shall have notified Tenant of the taking.  If all of the Premises or so much of the Building is taken by Condemnation (even though no part or only a small part of the Premises be taken) that Landlord elects not to repair or reconstruct the remaining portion, the provisions of Section 12.2 shall apply.  Failure of Landlord or Tenant to notify the other party of its election to terminate the Lease shall constitute agreement of said party to continue the Lease in full force and effect as to the balance of the Premises.

 

18.2                        Rent Reduction.  If the Lease is not fully terminated after any taking, then it shall remain in full force and effect as to the portion of the Premises remaining; provided the rent payable hereunder shall be reduced in proportion to the area taken.

 

18.3                        Awards.  All awards for the taking of any part of the Premises under the power of eminent domain shall be the property of Landlord, whether made as compensation for diminution of value of the leasehold or for the taking of the fee; except that Tenant to the extend provided by applicable law, may bring its own claim against the condemning authority, at its sole cost and expense, for loss of Tenant’s personal property and reasonable relocation expenses, provided the filing of such claim does not diminish the award which would otherwise be receivable by Landlord.

 

19.                               SUBORDINATION AND ATTORNMENT

 

19.1                         Subordination.  Landlord and Tenant agree that this Lease be and the same hereby is made subject and subordinate at all times to any mortgage constituting a lien against the Property or any other method of financing or refinancing in any amounts, and all advances thereon, which may now or hereafter be placed against or affect any or all of the land and/or the Premises and/or any or all of the buildings and improvements now or at any time hereafter constituting a part of or adjoining the Building, and to all renewals, modifications, consolidations, participations, replacements and extensions thereof.  The term “mortgages” as used herein shall mean and refer to any mortgage or deed of trust constituting a lien on the Property.  The aforesaid provisions shall be self-operative and no further instrument or subordination shall be necessary unless required by any such mortgagee.  Should Landlord or any mortgagee desire confirmation of such subordination, the Tenant, within ten (10) business days following Landlord’s written request therefor, agrees to execute and deliver, without any charge, any and all documents (in form reasonably acceptable to such mortgagee)  reasonably acknowledging such priority.  Without limiting the foregoing, Tenant acknowledges that Landlord will refinance the Property as part of the Expansion and the mortgagee will require a subordination, non-disturbance and attornment agreement (“SNDA”) as a condition of

 

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such financing.  Tenant will execute and acknowledge the SNDA form required by the mortgagee so long as it is on the mortgagee’s standard form and within the range of SNDA’s typically required by similar lenders.  In addition, Tenant acknowledges and agrees that the effectiveness of this Lease is conditioned on Landlord obtaining the financing for the Expansion (the “Financing Contingency”).  If Landlord is unable to satisfy the Financing Contingency within ninety (90) days after the date of mutual execution of this Lease (the “Outside Financing Contingency Satisfaction Date”), Landlord and Tenant shall each have the right to terminate this Lease at any time thereafter but prior to the date that the Financing Contingency is satisfied, in which case the Current Lease shall remain in full force and effect and the Parties’ rights and obligations shall be governed in all respects by the Current Lease.  Notwithstanding the foregoing, if Landlord’s inability to satisfy the Financing Contingency by the Outside Financing Contingency Satisfaction Date is in any way due to Tenant Delay, such Outside Financing Contingency Date shall be postponed day-for-day for each day of Tenant Delay, and Tenant’s right to terminate hereunder shall be postponed for each day of Tenant Delay.

 

19.2                        Attornment.  Tenant agrees that in the event of a sale, transfer, or assignment of the Landlord’s interest in the Building or any part thereof, including the Premises, Tenant shall attorn to and to recognize such sale, transfer or assignment, or underlying lessor or mortgagee, as Landlord under the Lease; provided that in connection with such transfer, Landlord shall also have transferred the Security Deposit and all rent to such successor or assignee.

 

20.                               QUIET ENJOYMENT

 

20.1                        Covenant of Quiet Enjoyment.  Landlord agrees that Tenant, upon paying rent and any other monetary sums due under this Lease, may quietly have, hold and enjoy the Premises during the Term hereof without hindrance from Landlord or any person claiming through Landlord, subject, however, to the terms of this Lease, all mortgages, insurance requirements and applicable laws.  This covenant and all other covenants of Landlord shall be binding upon Landlord and its successors only during its or their respective periods of ownership of the Building, and shall not be a personal covenant of any Landlord Parties.

 

21.                               DELAYS

 

21.1                        Extended Time Due to Delay.  Whenever Landlord shall be delayed or restricted in the performance of any obligation of Landlord herein with respect to the performance of work or repairs by reason of Landlord’s inability to obtain materials, services or labor required for such performance or by reason of any statute, law or regulation of a government entity, or by reason of any other cause beyond Landlord’s control, Landlord shall be entitled to extend the time for such performance by a time equal to the extent of the delay or restriction, and Tenant’s time for performance under this Lease shall likewise be extended (provided, however, in no event shall Tenant’s time for performance in the payment of Rent or any other monetary obligation hereunder be extended for such reasons), Tenant shall not be entitled to compensation for any inconvenience, nuisance or discomfort occasioned thereby, except for rent abatement where expressly provided by this Lease.

 

22.                               Intentionally omitted.

 

23.                               RENEWAL OPTION

 

23.1  Provided no Event of Default hereunder exists and Tenant has performed all of its covenants and obligations hereunder, Tenant shall have the option to extend the Term of this Lease, including the provisions of Section 22 hereof (hereinafter, the “Option”) for two periods of five years each (the “Option Periods”), upon the same terms and conditions, at the then current market rate (as determined as set forth below), but not less than the previous year’s rent, and upon the following further terms and conditions.

 

23.2   Tenant shall exercise said Option only by giving written notice to Landlord no earlier than three hundred thirty (330) calendar days nor later than two hundred seventy (270) calendar days before the expiration of the Lease or the applicable Option Period (the “Notice Period”).  As soon as reasonably practicable after receipt of Tenant’s notice, Landlord shall advise Tenant of the Base Rent for the applicable Option Period (“Landlord’s Notice”).  For a period not to exceed thirty (30) calendar days after the date of Landlord’s Notice (the “Negotiation

 

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Period”), both parties shall negotiate on a diligent, good-faith basis to arrive at an agreement concerning the Base Rent for the Option Period.  If at the end of the Negotiation Period Landlord and Tenant are unable to agree on the Base Rent for the Option Period, Landlord shall deliver to Tenant Landlord’s proposal for such terms (“Landlord’s Proposal”) and Tenant shall deliver to Landlord Tenant’s proposal for such terms (“Tenant’s Proposal”).  Tenant shall have a period of fifteen (15) business days after the end of the Negotiation Period (“Tenant’s Decision Period”) to elect to (i) accept Landlord’s Proposal by written notice (the “Acceptance Notice”) to Landlord, (ii) withdraw its renewal request by written notice (“Withdrawal Notice”) to Landlord, or (iii) notify Landlord that it has elected to renew the term of this lease and elected to proceed to arbitration in accordance with the provisions set forth below (“Arbitration Notice”).  If Tenant timely delivers its Acceptance Notice, Landlord and Tenant shall, within ten (10) business days after receipt thereof from Landlord, execute a lease amendment extending the Term for the applicable Option Period on the terms set forth in Landlord’s Proposal.  If Tenant delivers a Withdrawal Notice, then Tenant’s option to extend shall automatically expire and be of no further force or effect.  If Tenant fails timely to deliver its Acceptance Notice or its Arbitration Notice (as applicable), then Tenant shall be deemed to have elected to accept Landlord’s Proposal.  If the Option is not exercised within the Notice Period, or if thereafter Tenant either timely revokes the Option or fails to timely accept the terms set forth in Landlord’s Notice, or if Tenant timely accepts the terms of Landlord’s Notice or Landlord’s Proposal, as applicable, but thereafter fails to timely execute and return the lease amendment, the Option shall be considered null and void.

 

If Tenant delivers an Arbitration Notice to Landlord prior to the expiration of Tenant’s Decision Period, then the term of this Lease shall be renewed and Landlord and Tenant shall proceed to arbitration in accordance with the procedure set forth below.  Landlord and Tenant shall commence arbitration proceedings in accordance with the Commercial Arbitration Rules of the American Arbitration Association and, at least 6 months prior to the expiration of the initial term or the preceding Renewal Period, as applicable, Landlord shall submit Landlord’s Proposal in writing and Tenant shall submit Tenant’s Proposal in writing, together with the supporting data that was used to calculate such proposals, to a qualified independent licensed commercial real estate broker or real estate appraiser who (i) is licensed under the laws of the State of Colorado, (ii) has been active over the ten (10) year period ending on the date of appointment in the leasing or appraising of similarly situated office buildings in the Boulder, Colorado area, (iii) is recognized as a market expert in office leasing or appraisal of office buildings, (iv) has not represented either Landlord, Tenant or their respective lenders during the preceding five (5) years or in connection with this Lease, and (v) has general experience and competence in determining market rates for office space in Boulder, Colorado comparable to the Premises, and being familiar with the Commercial Arbitration Rules of the American Arbitration Association (a “Qualified Arbitrator”).  The Qualified Arbitrator shall be selected as follows:  AAA shall provide a list of Qualified Arbitrators and the parties shall first attempt to jointly select one Qualified Arbitrator.  If the parties cannot agree on one Qualified Arbitrator, then Tenant shall select one (1) candidate from the AAA list and Landlord shall select one (1) candidate from the AAA list, and the two (2) individuals so selected shall select a third candidate from the AAA list within thirty (30) days after Tenant delivers the Arbitration Notice, and the third shall serve as the Qualified Arbitrator.  If either Landlord or Tenant fails to select its panel member within such thirty (30) day period, then the panel member selected by the other party shall select the Qualified Arbitrator.  Within twenty (20) days after the proposals are submitted, the Qualified Arbitrator shall hold a hearing during which Landlord and Tenant may present evidence in support of their respective proposals.  Within 3 days after the date of the hearing, the Qualified Arbitrator will determine the Base Rent provided the Qualified Arbitrator may select only Landlord’s Proposal or Tenant’s Proposal (and no other amount) as the Base Rent, which proposal so selected shall be the Base Rent for the applicable Option Period.  The Qualified Arbitrator’s determination shall be binding on Landlord and Tenant and may be enforced by a court of competent jurisdiction.  The cost of such arbitration shall be split equally by the parties.  Within thirty (30) days after the Qualified Arbitrator’s determination of the Market Rental Rate, Landlord and Tenant shall execute a mutually acceptable amendment to this Lease specifying that this Lease has been extended at a rate equal to the determined Base Rent.  If the foregoing arbitration process is not completed prior to the commencement of the applicable Option Period, Tenant shall continue to pay Base Rent at the rates in effect prior to such Option Period until such time as the arbitration process is complete, at which time Tenant will pay Landlord, the amounts necessary to adjust the payments made prior to such date to be equal to the Base Rent determined by such arbitration process.

 

23.3  It is understood and agreed that this Option is personal to the Tenant named in this Lease and is not transferable (except to a Permitted Assignee); in the event of any assignment or subleasing of any or all of the Premises (except to a Permitted Assignee) said Option shall be null and void.

 

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24.                               GENERAL PROVISIONS

 

24.1              Estoppel Certificates.  Tenant shall at any time, upon reasonable advance notice from Landlord, execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or if modified, stating the nature of the modifications) and the dates to which the rent and other charges are paid in advance, (b) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder or specifying such defaults if any exist, (c) acknowledging to any mortgagee expressly designated by Landlord that Tenant will not modify or amend this Lease without the consent of such mortgagee and (d) certifying to other relevant matters about which Landlord may reasonably request information.  Tenant shall have ten (10) calendar days to execute and return to Landlord such Estoppel Certificate.  If after reasonable advance notice from Landlord the Tenant fails to execute and return to Landlord the Estoppel Certificate within ten (10) calendar days after its delivery, then Landlord shall be appointed attorney in fact to accurately execute the Estoppel on Tenant’s behalf. Tenant’s failure to provide this statement within the time period specified shall, without further notice by Landlord, constitute an Event of Default under this Lease.

 

24.2                        Transfer of Landlord’s Interest.  In the event of a sale or conveyance by Landlord of Landlord’s interest in the Premises, then Landlord, on consummation of the transfer, shall be released and discharged from any liability thereafter accruing under this Lease with respect to the interest so transferred, provided that the funds or deposits in the hands of Landlord at the time of transfer in which Tenant has an interest shall be delivered to the successor of Landlord.  This Lease shall not be affected by any such sale.

 

24.3                        Captions.  Sections and paragraph captions are for convenience only and are not a part of this lease and shall not be used for interpretation or construction of this Lease.

 

24.4                        Time of Essence.  Time is of the essence with respect to the parties’ performance of obligations hereunder.

 

24.5                        Severability.  The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof.

 

24.6                        Modifications for Mortgage.  In the event any lending institution with whom Landlord has negotiated or shall hereafter negotiate for interim, standby or permanent financing for the Building shall require a modification of this Lease as a condition to providing such financing, Landlord shall provide written notice of the requirement to Tenant and Tenant agrees within fifteen (15) calendar days to make any such modification so long as it is commercially reasonable and does not materially alter any of Tenant’s rights, or its monetary or performance obligations hereunder.  If Tenant fails or refuses to make such reasonable modification within said fifteen (15) day period this Lease may, at Landlord’s sole option, be terminated by Landlord as of the date set forth in a written notice from Landlord to Tenant, which date shall in no event be less than thirty (30) calendar days following such notice.

 

24.7                        Entire Agreement.  This Lease, along with any exhibits or attachments hereto, constitutes the entire agreement between the parties relative to the Premises and there are no oral agreements or representations between the parties with respect to the subject matter hereof.  This Lease supersedes and cancels all prior agreements and understandings with respect to the subject matter hereof.  This Lease may be modified only in writing, signed by the parties in interest at the time of modification.

 

24.8                        Recording. This Lease shall not be recorded by Tenant and any recordation by Tenant shall be a breach under this Lease.  Tenant may record a memorandum evidencing the Option as provided in Exhibit G.

 

24.9                        Binding Effect; Choice of Law.  Subject to any provisions hereof restricting assigning or subletting by Tenant and subject to the provisions for the transfer of Landlord’s interest, this Lease shall bind the parties, their successors and assigns.  This Lease shall be governed by the laws of the State of Colorado.

 

24.10                 Holding Over:  Payments After Termination.  If Tenant remains in possession of all or any part of the Premises after the expiration of the Term hereof, without the execution of a new Lease, such tenancy shall be

 

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deemed to have created and be construed to be a month to month tenancy only terminable on thirty (30) calendar days written notice by either party to the other on the same terms and conditions as provided herein, except not only as to the Term of this Lease, but also except the Base Rent to be paid by Tenant shall be equal to one hundred twenty five percent (125%) of the sum of:  (i) Adjusted Base Rent paid by Tenant immediately prior to the beginning of the holdover period, (ii) one-twelfth (1/12) of the then-applicable Operating Expenses, and (iii) one-twelfth (1/12) of any annual additional rent due.  No payments of money by Tenant to Landlord after the termination of this Lease, in any manner, or after giving of any notice (other than a demand for payment of money) by Landlord to Tenant, shall reinstate, continue or extend the Term of this Lease or affect any notice given to Tenant prior to the payment of such money.  It is agreed that after the service of notice or the commencement of a suit or after final judgment granting Landlord possession of the Premises, or after any other exercise of Landlord’s rights and remedies hereunder, then the payment of such sums of money, whether as rent or otherwise, shall not waive said notice, or in any manner affect any pending suit or judgment, except to the extent that such payment satisfies any judgment in whole or in part.

 

24.11                 Entry by Landlord.  Subject to the provisions of Sections 14 and 20 hereof and this Lease, Tenant shall permit Landlord or its agents or representatives to enter into and upon any part of the Premises at all reasonable times (and, in the event of an emergency, at any time) to inspect the same, or to show the Premises to prospective purchasers, mortgagees, tenants or insurers, or to clean, provide routine maintenance or provide any other service to be provided by Landlord or Tenant hereunder or make repairs, alterations, or additions thereto, including, but not limited to, any work that Landlord deems necessary for the safety, protection or preservation of the Building or any occupants thereof, or to facilitate repairs, alterations or additions to the Building or any other tenant’s premises.  Except for any entry by Landlord in an emergency situation or to provide normal maintenance, cleaning and janitorial service, Landlord shall provide Tenant with reasonable prior notice of any entry into the Premises, which notice may be given verbally.  Landlord may use its master key for entry into the Premises.  Landlord shall have the right to temporarily close the Premises or the Building to perform repairs, alterations or additions in the Premises or the Building, provided that Landlord shall use reasonable efforts to perform all such work on weekends and after normal business hours.  Entry by Landlord hereunder shall not, in and of itself, constitute a constructive eviction or entitle Tenant to any abatement or reduction of rent by reason thereof.

 

24.12                 Authority.  If Tenant is a corporation, each individual executing this Lease on behalf of the corporation represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of the corporation in accordance with a duly adopted resolution of the Board of Directors of the corporation or in accordance with the Bylaws of said corporation and that this Lease is binding upon the corporation in accordance with its terms.

 

24.13                 Notices.  All notice or demands of every kind required or desired to be given by Landlord or Tenant hereunder shall be in writing and shall be deemed delivered forty-eight (48) hours after depositing the notice or demand in the United States mail, certified or registered, postage prepaid, addressed to the Landlord or Tenant at the addresses set forth in Paragraph M of the Summary of Basic Lease Terms.

 

24.14                 Brokerage Clause.  Landlord and Tenant hereby warrant and represent that neither has dealt with any real estate broker or finder in connection with the transaction evidenced hereby except for the broker named in Paragraph O of the Summary of Basic Lease Terms, for whose commission Landlord shall be responsible, and each party hereby agrees to indemnify, defend, and hold the other harmless, as the case may be, from and against any and all claims which may be made by any other broker or finder in connection with the transaction evidenced hereby.

 

24.15                 Bankruptcy.  Landlord and Tenant understand that notwithstanding certain provisions to the contrary contained herein, a trustee or debtor in possession under the Bankruptcy Code of the United States may have certain rights to assume or assign this Lease.  Landlord and Tenant further understand that in any event Landlord is entitled under the Bankruptcy Code to adequate assurances of future performance of the terms and provisions of this Lease.  For purpose of any such assumption or assignment, and subject to the Bankruptcy Code, the parties hereto agree that the term “adequate assurance” shall include at least the following:

 

24.15.1       In order to assure Landlord that the proposed assignee will have the resources with which to pay the rent called for herein, any proposed assignee must have demonstrated to Landlord’s satisfaction a

 

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net worth reasonably acceptable to Landlord.  The financial condition and resources of Tenant were a material inducement to Landlord in entering into this Lease.

 

24.15.2       Any proposed assignee of this Lease must assume and agree to be personally bound by the terms, provisions and covenants of this Lease.

 

24.15.3       Notwithstanding anything to the contrary contained in this Lease, if a Trustee in Bankruptcy assumes control over Tenant’s rights under this Lease, the Trustee shall provide the Landlord with adequate assurance of future performance under this Lease, cure or give adequate assurance that he will cure the Event of Default and shall compensate Landlord for actual loss resulting from the Tenant’s bankruptcy.  If the Trustee elects to assign such rights to any third party, “adequate assurance of future performance” shall be deemed to be the Base Rent paid hereunder increased to the then current Base Rate which Landlord would charge for comparable space in the Building as of the date of the Tenant filing its petition for Bankruptcy.

 

24.16                 Tenant shall be entitled to the use of the Parking Areas set forth in Paragraph P of the Summary of Basic Lease Terms without payment of additional Base Rent under this Lease, it being understood that all costs associated with the parking, including but not limited to repairing and maintaining such parking lot and paying ad valorem real property taxes for the parcels on which the Parking Areas are located shall be considered a part of the Operating Expenses.  Landlord shall not be liable for and Tenant hereby releases and covenants not to bring any action against Landlord for any loss or damage to any vehicle of Tenant, its guests, employees or agent for damage to or theft of or from a motor vehicle while in the parking areas.

 

24.17                 Counterparts. This Lease may be executed in several counterparts, each of which shall be deemed an original, and all such counterparts shall together constitute one and the same instrument.

 

24.18                 Document Review.  In the event Tenant makes any request upon Landlord causing or requiring Landlord to process, review, negotiate and/or prepare (or cause to be processed, reviewed, negotiated and/or prepared) any document or documents in connection with or arising out of or as a result of this Lease, except as may be expressly stated elsewhere herein, Tenant agrees to reimburse Landlord or its designee promptly upon demand the fee of $1,500.00 referenced in Section 15.2 hereof, inclusive of reasonable attorneys fees, in conjunction with each such request.

 

24.19                 Attorney’s Fees.  In the event a suit, action, arbitration, or other proceeding of any nature what-so-ever, including without limitation any proceeding under the US Bankruptcy Code, is instituted, or the services of an attorney are retained to interpret or enforce any provision of this Lease or with respect to any dispute relating to this Lease, the prevailing or non-defaulting party shall be entitled to recover from the losing or defaulting party its reasonable attorneys’, paralegals’, accountants’, and other experts’ fees and all other reasonable fees, costs, and expenses actually incurred and reasonably necessary in connection therewith.  In the event of suit, action, arbitration or other proceeding, the amount thereof shall be determined by the judge or arbitrator, shall include fees and expenses incurred on any appeal or review, and shall be in addition to all other amounts provided by law.

 

24.20       No Accord and Satisfaction.  Landlord’s acceptance of full or partial payment of Base Rent following Tenant’s failure to pay Base Rent when due, regardless of whether Landlord notifies Tenant in writing of Tenant’s failure to pay Base Rent when due, shall in no event constitute a waiver of any rights, remedies or defense granted to Landlord hereunder, including, but not limited to, Landlord’s right to pursue an action for unlawful detainer. Tenant hereby agrees that Landlord shall be entitled to amend its complaint or other filing in any legal proceeding to reflect said partial payment without creating the necessity for the filing of an additional answer or other responsive pleading by the Tenant, and without prior leave of the court unless required by the court, and such an amendment shall not delay the matter from proceeding.

 

24.21       Joint and Several Liability.  If there is more than one Tenant, or if Tenant is comprised of more than one party or entity, the obligations imposed upon Tenant shall be joint and several obligations of all the parties and entities.  Notices, payments and agreements given or made by, with or to any one person or entity shall be deemed to have been given or made by, with and to all of them.

 

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24.22                  Hazardous Materials.  No Hazardous Material, except for de minimis quantities of household cleaning products and office supplies used in the ordinary course of Tenant’s business at the Premises and that are used, kept and disposed of in compliance with all laws, including without limitation, all Hazardous Materials Laws, shall be brought upon, used, kept or disposed of in or about the Premises or the Property by any Tenant Parties without Landlord’s prior written consent, which consent may be withheld in Landlord’s sole and absolute discretion.  Without limiting the generality of Tenant’s indemnities set forth in Article 11 hereof, Tenant shall indemnify, defend and hold the Landlord Parties harmless from (a) any violation by Tenant of this subsection during the Term; and/or (b) any contamination caused by any Hazardous Materials brought onto the Premises, Building or property by Tenant or any other Tenant Parties during the Term.  Neither this Section 24.22 nor the indemnities in Article 11 shall apply to the pre-existing environmental condition mentioned in Section 5.2 hereof unless a Tenant Party causes or permits to be caused any action that exacerbates the same.

 

25.                     RIGHT OF FIRST OFFER TO PURCHASE.

 

25.1                         During the Term (or any Renewal Term provided under Section 23 of this Lease), and provided that Tenant is not in default under the Lease, Tenant shall have a one-time right of first offer to purchase the Option Property (hereinafter defined) (the “Right of First Offer”) upon and subject to the terms contained in this Section 25.  If at any time during the Term (or any Renewal Term), and subject to the provisions of the preceding sentence, should Landlord decide to place the real property comprised of the Building(s) and Premises, or any portion thereof (such property, the “Option Property”) on the open market for sale, Landlord shall first offer Tenant the right to purchase the Option Property by giving Tenant written notice (the “Offer Notice”).  Landlord and Tenant shall then have a period of thirty (30) days after Tenant’s receipt of the Offer Notice (the “Negotiation Period”) in which to reach mutually acceptable business terms regarding the purchase and sale of the Option Property, including without limitation, the purchase price for the Option Property.  During the Negotiation Period, Landlord will negotiate exclusively with Tenant with respect to the Option Property, and Landlord will not advertise the Option Property for sale or otherwise place it on the market.  If, at the end of the Negotiation Period, Landlord and Tenant have not reached agreement on all pertinent business terms regarding the purchase and sale of the Option Property, which shall include, without limitation, the purchase price, earnest money, inspection, financing or other contingencies, and/or the closing date, then Tenant’s Right of First Offer shall automatically terminate, and Landlord will be relieved of any further obligation with respect to the Right of First Offer contained herein.  If Landlord and Tenant are able to reach agreement as to the pertinent business terms during the Negotiation Period, then Landlord and Tenant will proceed to enter into a mutually agreement Purchase and Sale Contract consistent with the terms agreed upon during the Negotiation Period (the “PSA”).  If the parties are unable to reach mutual agreement on the PSA, or if either party thereafter does not proceed to close on the purchase and sale of the Option Property in accordance with the PSA, such failure shall not serve to reinstate the Right of First Offer as provided herein, it being acknowledged and agrees that the Right of First Offer contained herein is a one-time right.

 

SIGNATURES ON FOLLOWING PAGE

 

29

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the dates set forth below.

 

	
LANDLORD:
    	
 
    
	
 
    	
 
    
	
3333   WALNUT, LLC, a Colorado limited liability company
    	
 
    
	
 
    	
 
    
	
By:
    	
MAVDevelopment   Company, a Michigan
    	
 
    
	
 
    	
corporation,   its Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A Aldrich
    	
 
    	
 
    
	
 
    	
Name:
    	
Robert   A. Aldrich
    	
 
    	
 
    
	
 
    	
Title:
    	
President
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated this 10th day of June, 2013
    	
 
    

 

 

	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RALLY   SOFTWARE DEVELOPMENT CORP., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
Timothy   A. Miller
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
CEO
    
	
 
    	
 
    	
 
    
	
 
    	
Signature:
    	
/s/   Timothy A. Miller
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Dated   this 10th day of June, 2013
    
				

 

30

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

The Premises is comprised of three parcels, labeled Parcel One, Parcel Two and Parcel Three, respectively. Each Parcel is described below.

 

Parcel One:

 

Lot 1.

Russell Brown Minor Subdivision Replat A,

EXCEPT that portion thereof conveyed to the City of Boulder by Warranty Deed recorded May 19, 1997 at Reception No. 1699531,

County of Boulder,

State of Colorado.

 

Parcel Two:

 

The West half (1/2) of a 40.00 foot wide strip of land in Section 29, Township 1 North, Range 70 West of the 6th Principal Meridian, described as follows:

 

Commencing at the East Quarter corner of said Section 29;

 

Thence South 89 degrees 46 minutes 10 seconds West, a distance of 75 feet to a point on the West right-of-way line of Pleasant View Road as described in instrument recorded in Book 1122 at Page 64 of the records of the Office of Clerk and Recorder of Boulder County, Colorado;

 

Thence South 00 degrees 02 minutes 20 seconds West along said Pleasant View Road, a distance of 909.40 feet to a point on the North right-of-way line of Walnut Street as described in instrument recorded in Book 1122 at Page 61 of said records;

 

Thence Northwesterly along said Walnut Street, a distance of 977.62 feet to a point on the Southwest corner of that parcel of land described in instrument recorded in Book 1214 at Page 215 of said records, the True Point of Beginning.

 

Thence North 00 degrees 04 minutes 40 seconds West, a distance of 482.45 feet along the West property line of said parcel to a point on the Southerly right-of-way line of Colorado and Southern Railway;

 

Thence Northwesterly along said railroad right-of-way a distance of 41.50 feet more or less to the Northeast corner of that parcel of land as described in instrument recorded in Book 1179 at Page 132 of said records;

 

Thence Southerly along the West line of said tract, a distance of 195.00 feet to the Northeast corner of that parcel of land described in instrument recorded in Book 1161 at Page 176 of said records;

 

Thence continuing Southerly a distance of 300.00 feet along the East border of said parcel of land to a point on the Northerly right-of-way line of Walnut Street;

 

Thence South 75 degrees 45 minutes 40 seconds East, a distance of 41.28 feet to the True Point of Beginning;

 

EXCEPT that portion thereof conveyed to the City of Boulder by Warranty Deed recorded May 19, 1997 at Reception No. 1699531,

County of Boulder,

State of Colorado.

 

***Parcel Three on next page***

 

 

Parcel Three:

 

A tract of land in the Northeast Quarter of the Southeast Quarter of Section 29, Township 1 North, Range 70 West of the 6th Principal Meridian, Boulder County, Colorado, described as follows:

 

Commencing at the East Quarter corner of said Section 29,

 

Thence South 00 degrees 02 minutes 20 seconds West, 949.40 feet along the East line of said Section 29;

 

Then North 89 degrees 57 minutes 40 seconds West, 485.00 feet at right angles to the East line of said Section 29, along the centerline of Walnut Street to a point of curve to the right;

 

Thence Northwesterly 249.62 feel along the arc of said curve to the right to a point of tangent, said arc having a radius of 1006.00 feet and a delta angle of 14 degrees 13 minutes right;

 

Thence North 75 degrees 44 minutes 40 seconds West 358.99 feet;

 

Thence North 00 degrees 04 minutes 40 seconds West 41.29 feet parallel with the West line of the East half of the Northwest Quarter of the Southeast Quarter of said section 29 to the Northerly line of Walnut Street which point is the Southeast corner of that tract of land described in Deed recorded in Book 1161 at Page 176 of the records of the Office of Clerk and Recorder of Boulder County, Colorado said point being the True Point of Beginning;

 

Thence South 75 degrees 44 minutes 40 seconds East, 247.71 feet along the Northerly line of Walnut Street;

 

Thence North 00 degrees 04 minutes 40 seconds West, 440.00 feet more or less, and parallel with the West line of the East half of the Northwest Quarter of the Southeast Quarter of said Section 29 to a point on the Southerly line of the Colorado and Southern Railway Company right-of-way;

 

Thence Northwesterly 267.00 feet, more or less, along said Southerly line of the Colorado and Southern Railway Company right-of-way to the Northeast corner of that tract of land described in Deed recorded in Book 1179 at Page 132 of said records;

 

Thence South 00 degrees 04 minutes 40 seconds East, 495.00 feet parallel with the West line of the East half of the Northwest Quarter of the Southwest Quarter of said Section 29 to the Southeast corner of said tract of land described in instrument recorded in Book 1161 at Page 176 and the True Point of Beginning,

 

EXCEPT a strip of land 40 feet in width off the West side of the above described parcel,

 

TOGETHER WITH the East half of a 40.00 foot wide strip of land in Section 29, Township 1 North, Range 70 West of the 6th Principal Meridian, described as follows:

 

Commencing at the East Quarter corner of said Section 29;

 

Thence South 89 degrees 46 minutes 10 seconds West, a distance of 75 feet to a point on the West right-of-way line of Pleasant View Road as described in instrument recorded in Book 1122 at Page 64 of the records of the Office of Clerk and Recorder of Boulder County, Colorado;

 

Thence South 00 degrees 02 minutes 20 seconds West along said Pleasant View Road, a distance of 909.40 feet to a point on the North right-of-way line of Walnut Street as described in instrument recorded in Book 1122 at Page 61 of said records;

 

Thence Northwesterly along said Walnut Street, a distance of 977.62 feet to a point on the Southwest corner of that parcel of land described in instrument recorded in Book 1214 at Page 215 of said records, the True Point of Beginning,

 

Thence North 00 degrees 04 minutes 40 second West, a distance of 482.45 feet along the West property line of said parcel to a point on the Southerly right-of-way line of the Colorado and Southern Railway;

 

Thence Northwesterly along said railroad right-of-way a distance of 41.50 feet more or less to the Northeast corner of that parcel of land as described in instrument recorded in Book 1179 at Page 132 of said records;

 

Thence Southerly along the West line of said tract, a distance of 195.00 feet to the Northeast corner of that parcel of land described in instrument recorded in Book 1161 at Page 176 of said records;

 

 

EXHIBIT B

 

PREMISES

 

3333 Walnut Street, Boulder, Colorado

 

B-1

 

EXHIBIT C

 

BUILDING RULES AND REGULATIONS

 

Landlord and Tenant agree that the following rules and Regulations shall be and hereby are made a part of this Lease, and Tenant agrees that Tenant’s employees, agents, contractors and invitees or any others permitted by Tenant to occupy or enter the Premises, will at all times abide by said Rules and Regulations:

 

1.             The sidewalks, entries, passages, corridors, stairways, and elevators of the Building shall not be obstructed by Tenant, or Tenant’s agents, employees, contractors or invitees or used for any purpose other than ingress to and egress from the Premises.

 

A.            (1)           Furniture, equipment or supplies will be moved in or out of the Building only upon the elevator designated by Landlord and then only during such hours and in such manner as may be prescribed by Landlord.  Tenant’s movers must provide Landlord with proof of insurance coverage naming Landlord, its manager, and any other parties so designated by Landlord as additional insureds.  Tenant shall cause its movers to use only the loading facilities and elevator designated by Landlord.  In the event Tenant’s movers damage the elevator or any part of the building, Tenant shall forthwith pay to Landlord the amount required to repair said damage.

 

(2)           No safe or articles, the weight of which may in the opinion of Landlord constitute a hazard or damage to the Building or Building’s equipment shall be moved into the Premises.

 

(3)           Safes and other equipment, the weight of which is not excessive, shall be moved into, from and about the Building only during such hours and in such manner as shall be prescribed by Landlord; and Landlord shall have the right to designate the location of such articles in the Premises.

 

B.            During the entire Term of the Lease, Tenant shall at Tenant’s expense install and maintain under each and every caster chair a chair pad to protect the carpeting.

 

2.             No new or additional sign, advertisement or notice shall be inscribed, painted or affixed on any part of the inside or outside of the Building unless of such color, size and style and in such place upon or in the Building as shall be first designated by Landlord; but there shall be no obligation or duty on the part of Landlord to allow any sign, advertisement or notice to be inscribed, painted or affixed on any part of the inside or outside of the Building.  A Directory in a conspicuous place, with the name(s) of Tenant(s), not to exceed one name, will be provided by Landlord; any necessary revision to this Directory will be made by Landlord at Tenant’s expense, within a reasonable time after notice for Tenant of the change making the revisions necessary.  No furniture shall be placed in front of the Building or in any lobby or corridor, without the prior written consent of Landlord.  Landlord shall have the right to remove all non-permitted signs and furniture, except Tenant’s existing signage, at the expense of Tenant.

 

3.             Tenant shall not do or permit anything to be done in the Premises or bring or keep anything therein which would in any way increase the rate of fire insurance on the Building or on property kept therein, constitute a nuisance or waste, or obstruct or interfere with the rights of other tenants or in any way injure or annoy them, or conflict with the laws relating to fire or with any regulations of the fire department or with any insurance policy upon the Building or any part thereof or conflict with any of the rules or ordinances of the Department of Health of the City and County where the Building is located.

 

4.             Tenant shall not employ any new or additional persons, other than the janitor or cleaning contractor of Landlord, for the purpose of cleaning or taking care of the Premises, without the prior written consent of Landlord.  Landlord shall be in no way responsible to Tenant for any loss of property from the Premises, however occurring, or for any damage done to Tenant’s furniture or equipment by the janitor or any of the janitor’s staff, or by any other person or person whomsoever.  The janitor of the Building may at all times keep a pass key, and other agents of Landlord shall at all times be allowed admittance to the Premises.

 

C-1

 

5.             Water closets and other water fixtures shall not be used for any purpose other than that for which the same are intended; and any damage resulting to the same from misuse on the part of Tenant or Tenant’s agents or employees shall be paid for by Tenant.  No person shall waste water by tying back or wedging the faucets or in any other manner.

 

6.             Except for seeing eye dogs for the blind and hearing ear dogs for the deaf, no animals shall be allowed in the offices, halls, corridors and elevators of the Building.  No persons shall disturb the occupants of this or adjoining buildings or premises by the use of any radio sound equipment or musical instrument or by the making of loud or improper noises.

 

7.             Intentionally omitted.

 

8.             Tenant shall  not allow anything to be placed on the outside of the Building, nor shall anything be thrown by Tenant or Tenant’s agents, employees, contractors, or invitees out of the windows or doors, or down the corridors, elevator shafts, or ventilating ducts or shafts of the Building.  Tenant, except in case of fire or other emergency, shall not open any outside window that is not designed to be opened.

 

9.             No additional lock or locks shall be placed by Tenant on any door in the Building unless written consent of Landlord shall first have been obtained.  A reasonable number of keys to the Premises and the toilet rooms, if locked by Landlord, will be furnished by Landlord; and neither Tenant nor Tenant’s agents or employees shall have any duplicate keys made.  At the termination of this tenancy, Tenant shall promptly return to Landlord all keys to offices, toilet rooms or vaults.

 

10.          No window shades, blinds, screens, draperies or other window coverings will be attached or detached by Tenant without Landlord’s prior written consent.  Tenant agrees to abide by Landlord’s rules with respect to maintaining uniform curtains, draperies and linings at all windows and hallways.

 

11.          No awnings shall be placed over any window.

 

12.          If any Tenant desires any new or additional telegraphic, telephonic or other electric connections, Landlord or Landlord’s agents will direct the electricians as to where and how the wire may be introduced; and without such directions, no boring or cutting for wire will be permitted.  Any such installation and connection shall be made at Tenant’s expense.

 

13.          Tenant shall not install or operate any steam or gas engine or boiler in the Premises.  The use of oil, gas or inflammable liquids for eating, lighting or any other purpose is expressly prohibited.  Explosive or other articles deemed extra hazardous shall not be brought into the Building or the property.

 

14.          Any painting or decorating, as may be agreed to be done by and at the expense of Landlord, shall be done during regular working hours.  Should Tenant desire such work on Saturdays, Sundays, holidays or outside of regular working hours, Tenant shall pay for the extra cost thereof.

 

15.          Except as permitted by Landlord, Tenant shall not mark upon, paint signs upon, cut, drill into, drive nails or screws into, or in any way deface the walls, ceilings, partitions or floors of the Premises or of the Building; and any defacement, damage or injury caused by Tenant or Tenant’s agents or employees shall be paid for by the Tenant.

 

16.          Subject to the Lease provisions, Landlord shall at all times have the right, by and through Landlord’s officers or agents, to enter the Premises and show the same to persons wishing to lease them and may, at any time within sixty (60) days preceding the termination of the Term of Tenant’s Lease, place upon the doors and windows of the Premises the notice “For Rent” which notice shall not be removed by Tenant.

 

17.          Personal Use of Premises.  The Premises shall not be used or permitted to be used for residential, lodging or sleeping purposes, or for the storage of personal effects or property not required for business purposes.

 

18.          Storage of vehicles in the parking lot is not permitted.  Any vehicles appearing to be stored or abandoned will be ticketed and towed at the vehicle owner’s expense.

 

C-2

 

19.          All areas in the Building have been designated as “No Smoking” areas and Tenant, and its employees agents and invitees agree to abide by this designation.

 

20.          Tenant shall not place anything or allow anything to be placed near the glass of any window, door, partition or wall which may in Landlord’s sole judgment appear unsightly from outside the Building.

 

21.          The toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purposes other than that for which they were constructed, and no foreign substances of any kind whatsoever shall be thrown therein, and to the extent caused by Tenant or its employees or invitees, the expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by Tenant.

 

22.          Tenant shall cause all doors to the Premises to be closed and securely locked before leaving the Building at the end of the day.

 

23.          Without the prior written consent of Landlord, not to be unreasonably withheld, Tenant shall not use the name of the Building or any depiction of the Building in connection with, or in promoting or advertising the business of Tenant, except Tenant may use the address of the Building as the address of its business.

 

24.          Tenant shall cooperate fully with Landlord to assure the most effective operation of the Premises’ or the Building’s heating and air conditioning, and shall refrain from attempting to adjust any controls.  Tenant shall keep corridor doors closed.

 

25.          Tenant agrees that Landlord may reasonably amend, modify, delete or add new and additional rules and regulations for the use and care of the Premises and the Building of which the Premises are a part.  Tenant agrees to comply with all such rules and regulations upon notice to Tenant from Landlord.  In the event of any breach of the rules and regulations herein set forth, or any reasonable amendments, modifications or additions thereto, Tenant shall promptly cure such breach upon notice from Landlord.  If Tenant fails to promptly cure the same then Landlord shall have all remedies set forth in this Lease in the Event of Default by Tenant.

 

26.          Tenant recognizes and agrees to enforce with all employees and guests, a policy of no smoking in the Premises and Exterior Areas of the building Complex, except in areas specified by the Landlord or its management personnel.

 

C-3

 

EXHIBIT D

 

ACCEPTANCE LETTER

 

	
Landlord:
    	
3333   WALNUT, LLC
    
	
 
    	
c/o   MAVDevelopment
    
	
 
    	
2727   South State Street, Suite 100
    
	
 
    	
Ann   Arbor, Michigan 48104
    
	
 
    	
Attn:   Rob Aldrich
    
	
 
    	
 
    
	
Tenant:
    	
RALLY   SOFTWARE DEVELOPMENT CORP.,
    
	
 
    	
Attn:   Associate General Counsel
    
	
 
    	
 
    
	
Premises:
    	
3333   Walnut, Boulder, Colorado
    
	
 
    	
 
    
	
Re:
    	
Lease,   dated for reference purposes only as                                 ,   2013, by and between Landlord and Tenant on the Premises.
    

 

This is to advise that the undersigned, as Tenant, has inspected the improvements at the above-referenced Premises and hereby confirms the following:

 

1.              Tenant has accepted possession of the Premises pursuant to the terms of the Lease.

 

2.              That the improvements and space required to be furnished according to the aforesaid Lease have been completed and supplied by Landlord in all respects, pursuant to a Certificate of Occupancy or other appropriate governmental approvals evidencing compliance with all applicable codes, and there are no Special Removable Leasehold Improvements contained therein.

 

3.             That the Landlord has fulfilled all of its obligations under the Lease.

 

4.              That no Rent has been prepaid except as provided by the Lease.

 

5.              That there are no existing defenses or offsets which the undersigned Tenant has against the enforcement of said Lease by the Landlord.

 

6.              That the aforesaid Lease has not been modified or altered, except as set forth herein.

 

7.              The Commencement Date of the Lease is the        day of                                , 20    .

 

8.              The Additional Premises Rent Commencement Date is the              day of                   , 20      .

 

9.              The Termination Date of the Lease is the          day of                           , 20    .

 

10.       That the Lease is now in full force and effect.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURES APPEAR ON THE FOLLOWING PAGE

 

D-1

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
3333   WALNUT, LLC,
    	
 
    	
RALLY   SOFTWARE DEVELOPMENT CORP.,
    
	
a   Colorado limited liability company
    	
 
    	
a   Delaware corporation
    
	
 
    	
 
    	
 
    
	
By:   MAVDevelopment Company, a Michigan
    	
 
    	
By:
    	
 
    
	
corporation,   its Manager
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
Name:   
    	
Robert A. Aldrich
    	
 
    	
Title:
    	
 
    
	
Title:   
    	
President
    	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
Dated:
    	
 
    

 

D-2

 

EXHIBIT E

 

PARKING AREAS

 

 

Permanent Parking Area

 

Upon completion of the Additional Premises, the parking will be in the area cross hatched on the plan.

 

E-1

 

 

Construction Parking Areas

 

During construction of the Additional Premises, the parking will be in the area cross hatched on the plan.

 

E-2

 

EXHIBIT F

 

WORK LETTER - CURRENT PREMISES

 

Within one hundred eighty (180) days following the Commencement Date, Landlord shall perform the following work within the Current Premises, at a time or times mutually agreed to by Tenant and Landlord, on a turnkey basis at Landlord’s expense (collectively, the “Landlord’s Work”):

 

·              Upgrade and expand the DDC control system in the Current Premises per the specifications of Group 14 Engineering (if selected by Tenant) and Landlord’s consultants, as agreed upon by Landlord and Tenant in good faith, upon which the specifications will be fully reflected on Exhibit F-1 attached hereto.  Promptly after the Commencement Date, Landlord shall at its expense design the DDC system upgrade and expansion, and thereafter, upon Tenant’s election, shall allow Tenant’s engineer, Group 14 Engineering to review and confirm such design at Tenant’s expense.  Once such design is confirmed and agreed upon, the design specifications may be reviewed and approved by Landlord and Tenant, and/or their respective consultants, within the 180-day period and shall be incorporated into appropriate construction drawings.  Once such specifications are approved, they will be attached hereto as Exhibit F-1.  Any design review and approval services performed by Group 14 Engineering shall be at Tenant’s cost.

 

Tenant acknowledges that Landlord will be conducting the Landlord’s Work while Tenant is in possession of the Current Premises, and agrees that Landlord, its agents, employees and contractors shall have the right to enter the Current Premises to conduct the Landlord’s Work.  Tenant understands that the work to be performed may result in noise, vibration, dirt, dust, odors, and other circumstances commonly attendant to construction.  Tenant hereby waives any claim of injury or inconvenience to Tenant’s business, interference with Tenant’s business, loss of occupancy or quiet enjoyment of the Current Premises, or any other loss occasioned by such entry or the performance of the Landlord’s Work, and the same shall not relieve Tenant of any obligations under the Lease; provided that Landlord shall minimize to the extent reasonably possible any disruption to Tenant’s business in the Current Premises during its performance of the Landlord’s Work, and shall cause its contractors to abide by Tenant’s established security measures.  No entry into the Current Premises by Landlord to perform any Landlord’s Work shall be deemed a forcible or unlawful entry into the Current Premises or a detainer of the Current Premises, or an eviction, actual or constructive, of Tenant from the Current Premises, or any part thereof, nor shall such entry entitle Tenant to damages or an abatement of Rent with respect to the Current Premises, unless Landlord fails to minimize disruption in the Current Premises to the extent reasonably possible.  Tenant shall fully cooperate with Landlord and its contractors and shall not in any way impede, inhibit or hinder any of the Landlord’s Work.

 

F-1

 

EXHIBIT F-1

 

DDC DESIGN SPECIFICATIONS

 

[to be attached post-Lease execution when agreed upon]

 

F-2

 

Exhibit G

 

BASE BUILDING IMPROVEMENT WORK

 

3333 Walnut, Boulder, CO

Building Expansion Base Building Specifications

Date:  June 4, 2013

 

Landlord shall complete the following Base Building Improvements, at Landlord’s cost:

 

A.            Utilities

 

1.  Electricity — 480/277 volt service to be provided to the building from the local utility company.

 

2.  Water — City of Boulder water service to be provided to the building and extended to each floor via vertical risers.  Suitable capacities will be provided for domestic and fire suppression systems.

 

3.  Sanitary Sewer — sanitary sewer to be provided by municipality and be extended to each floor via vertical risers.

 

4.  Storm Sewer — a suitably sized storm sewer system for parking and roof drainage will be provided and connected to municipal storm system.

 

5.  Telecommunications — two 4” conduits will be extended into the buildings Telecommunications closet for distribution to Tenant spaces.  Low voltage cabling to be provided at Tenants expense.

 

B.            Site work and Pavements

 

1.  All mass grading, cut and fills and excavations.

 

2.  Landscaping and irrigation per local requirements.

 

3.  Parking lot paving and sidewalks as noted on approved site plans, including parking lot lighting.

 

4.  Complete removal and disposal of the 1950 33rd Street structure.

 

C.            Foundations and Superstructure

 

1.  The foundation system shall be designed to accommodate building loads per local building codes and include spread footings, column piers and formed walls where required.

 

2.   A free standing steel structure designed to accommodate structural loads of a typical commercial office building.  The structure will be clad with a combination of precast concrete and cast stone and metal panel to complement the existing building.  High performance insulated glass in aluminum frames will be provided at perimeter walls.    A fully adhered insulated EPDM roof system will be provided.   Perimeter doors will be provided at lobby and emergency exits.  The building envelope will be used as a component to meet the requirements of the City of Boulder Energy Code.

 

3.  Floors will be poured concrete with a smooth trowel finish.

 

D.            Interior Construction

 

1.  The Landlord will provide the following interior finishes as part of the core and shell:

 

a.  First floor lobby to be decorated with first class finishes including hard tile floors, painted drywall and lay-in ceilings, upgraded lighting.

 

MAVDevelopment Company· South State Commons III· 2727 South State Street, Suite 100·Ann Arbor, MI 48104·734.930.6700·734.930.6701 fax·www.mavd.com

 

 

b.   Each floor shall have finished restrooms including painted drywall walls, lay-in ceilings, hard surface countertops and flooring.  Toilet fixtures will be provided to exceed minimum code requirements.  Toilet partitions and accessories complete.

 

c.   One new three story stair tower for emergency egress will be constructed.   The existing north stair shall be modified by extending it vertically to the third floor of the new addition.

 

d.   Each floor will have one “house” electrical closet and one “house” telecommunications room, vertically stacked, for future tenant distribution.  Conduit stubs will be provided between floors for future vertical access.  The electrical closet will have one 200 amp, 480/277 volt distribution panel for future Tenant Improvement work.  One 4’x8’ plywood backboard will be provided in each telecommunications room.

 

f.   Two passenger elevators with upscale finishes will be provided.

 

g.   One elevator machine room will be constructed complete.

 

i.    Metal studs and finished drywall at all perimeter walls.

 

J.   Window sills and window treatments to be Tenant Improvement cost.

 

E.            Building Systems

 

1.  Fire Protection

 

a.   A complete wet pipe fire suppression system will be provided including upright sprinkler heads, piping and vertical risers.  Work will conform to NFPA and City of Boulder codes.

 

2.  Heating Ventilation and Air Conditioning

 

The core and shell Heating Ventilating and Air Conditioning system will be used as a component to meet the requirements of City of Boulder Energy Code.  The system will include:

 

a.   Two (2) new 50,000 cfm roof top mounted air handling units using indirect gas fired heat and DX cooling.  The DX cooling will include an evaporator coil with electrically controlled expansion valve and air cooled condensing coils.

 

b.   Two new condensing boilers, 750 MBH each, including hydronic supply and return piping to eight (8) VAV boxes at each floor.

 

c.   Circulation pumps and pipe insulation.  Duct insulation.

 

d.   Medium pressure ductwork installed the entire length at each floor.

 

e.   Eight variable air volume (VAV) boxes per floor.  Temperature controls to each VAV box.

 

f.   DDC control system for the new addition including hardware, software and programming.

 

g.   Toilet room exhaust system including ductwork and controls.

 

3.   Electrical

 

The core and shell electrical system shall include:

 

2

 

a.   Sufficient power will be provided by the utility company for the buildings electrical service.

 

b.   All required medium voltage switch gear, disconnects and distribution for the addition.

 

c.   Electrical distribution including the necessary transformers to all core and shell provided work noted above.

 

d.   Final connections to all core and shell HVAC equipment.

 

e.   One 200 amp 480/277 volt distribution panel per floor located in “house” electrical rooms for future Tenant Improvement Work.  Tenant suites to be individually metered.

 

f.   Fire alarm system complete for core and shell work.  Capacity for future Tenant Improvement work to be provided.

 

g.   Exit and egress lighting for core and shell work.

 

h.  Card access system for perimeter doors.

 

i.  It is assumed that Tenant lighting system shall be designed efficiently and be used as a component to meet the requirements of City of Boulder Energy Code.

 

j.  A 135 kilowatt solar photovoltaic system complete with roof mounted solar panels, power inverters and all required cabling.  The system will be connected to the buildings electrical distribution system.

 

3

 

Group 14 and DLR Group Design Recommendations

February 5, 2013

 

Group 14 Sustainable Design Recommendations per letter dated September 5, 2012 (as attached to Lease Proposal date September 21, 2012).

 

1.                                      Reduced Window Area — The original design has been modified to replace vision glass with insulated metal spandrel on the uppermost glazing panel on the 1st level.  This creates an overall glazing area of 39.19%. (East façade for calculations)

 

2.                                      R-20 roof insulation.  Base Building Specification:  R-30.

 

3.                                      R-21 batts in walls.  Base Building Specification: R19 batts with 4” metal studs, along with 2” R10 (R5/in.) XPS continuous rigid insulation.

 

4.                                      Exterior shading on the west.  Not included in Base Building Specification.  Cost option provided per Exhibit D.

 

5.                                      Windows.  Base Building Specification:  U Value of .3 Winter and .27 Summer, a SHGC less than 0.22 and a VT greater than 0.34.

 

6.                                      Five tubular skylights.  Included in Base Building Design.

 

7.                                      Lighting.  The Base Building will incorporate code required lighting controls, including occupancy sensors and time clock.  It is understood that the tenant improvement will achieve the code required lighting power density, as well as other controls as required by code.  The tenant improvement lighting will be used as component in achieving the goals of the Boulder Energy Code, along with the building envelope and mechanical systems.

 

8.                                      HVAC.  Options above Base Building Specification outlined in Exhibit D.

 

DLR Group Concepts and Recommendations per Lease Proposal dated September 21, 2012.

 

1.                                      Monumental Stair.  Eliminated at Tenant’s request.

 

2.                                      Reconfigure north restroom core.  Included in the Base Building Design.

 

3.                                      Trellis structure on the west facing decks.  Included in the Base Building Design.

 

4.                                      Trellis on existing west patio.  Included in the Base Building Design.

 

5.                                      Upgrade entrance to north stairwell.  Base Building Design will include the following:  The north stairwell will be extended to serve the third floor, and the east wall entry to the stair will include two doors on the second and third floors to improve circulation in the stair.

 

6.                                      Double door for deliveries.  Included in the Base Building Design.

 

 

 

EXHIBIT H -1

 

TENANT-MANAGED WORK LETTER

 

1.             Construction Generally.  Tenant agrees to construct the Tenant Improvement Work in a good and workmanlike manner in and upon the Additional Premises, at Tenant’s sole cost and expense, in accordance with the Approved Construction Drawings and otherwise in accordance with the terms and conditions contained in this Tenant-Managed Work Letter (as used herein, the “Work Letter”).  Capitalized terms used in this Work Letter but not defined herein shall have the meanings given to such terms in the Lease.  In the case of a conflict between the terms of this Work Letter and the Lease, the latter shall control.  Except as otherwise provided herein, Tenant will employ experienced, union-affiliated licensed contractors, architects, engineers and other consultants, reasonably approved by Landlord, to construct the Tenant Improvement Work and will require in the applicable contracts that such parties (a) carry insurance in such amounts and types of coverages as are reasonably required by Landlord, and (b) design and construct the Tenant Improvement Work in a good and workmanlike manner and in compliance with all applicable laws.  Landlord hereby approves Sand Construction as Tenant’s general contractor for the Tenant Improvement Work, and shall cause Landlord’s general contractor, within thirty (30) calendar days after the Commencement Date, to meet and consult with Sand Construction, for the purpose of coordinating the staging and commencement of the Tenant Improvement Work, prior to and in connection with construction and completion of the Base Building Improvements, including reasonable Building access by Sand Construction.  If Tenant elects to use any other general contractor, it must be union-affiliated and shall be subject to Landlord’s reasonable approval as set forth above.  Unless otherwise agreed to in writing by Landlord and Tenant, all work involved in the construction and installation of the Tenant Improvement Work shall be carried out by Tenant’s Contractors (hereinafter defined) under the sole direction of Tenant’s general contractor, in compliance with all Building rules and regulations insofar as they do not inhibit or delay normal construction activity, and in such a manner so as not to unreasonably interfere with or disturb any other operations, business, use and enjoyment of the Building or the structural calculations for imposed loads.  Tenant shall obtain from its general contractor and provide to Landlord a list of all subcontractors providing labor or materials in connection with any portion of the Tenant Improvement Work prior to commencement of the Tenant Improvement Work and Landlord shall have the right to reasonably approve all subcontractors, which shall also be union-affiliated, which approval shall not be unreasonably withheld, conditioned or delayed.  Tenant’s general contractor shall warrant to the Landlord that the design, construction and installation of the Tenant Improvement Work shall conform to the requirements of all applicable laws, including building, plumbing and electrical codes and the requirements of any authority having jurisdiction over, or with respect to, such Tenant Improvement Work.  Without limiting the foregoing, Tenant’s general contractor shall, at Tenant’s expense, be responsible for Americans with Disabilities Act (“ADA”) (and any comparable state accessibility standards) compliance in the Premises, including restrooms on any floor now or hereafter leased or occupied in its entirety by Tenant, its affiliates or transferees.  Landlord shall not be responsible for determining whether Tenant is a public accommodation under ADA or whether the Approved Construction Documents comply with ADA requirements; except that Landlord shall be responsible, at Landlord’s expense, to ensure that the Base Building Improvements are designed, constructed, and delivered to Tenant in compliance with the ADA and any comparable state or local standards, and local building codes.  Such similar determinations for the Tenant Improvement Work, if desired by Tenant, shall be the sole responsibility of Tenant’s general contractor.  Landlord’s approval of the Approved Construction Documents shall not be deemed a statement of compliance with applicable laws, nor of the accuracy, adequacy, appropriateness, functionality or quality of the improvements to be made according to the Approved Construction Documents.  No later than thirty (30) days after completion of the Tenant Improvement Work, Tenant’s general contractor shall provide Landlord and Tenant with copies of “as built” drawings for the Tenant Improvement Work.

 

2.             Landlord’s Contribution; DLR Group Advance.  Subject to the terms and conditions of this Paragraph 2, Landlord will provide Tenant with an allowance (the “Construction Allowance”) to be applied towards the cost of constructing the Tenant Improvement Work; except that, within ten (10) business days after the Commencement Date, the Landlord shall advance the sum of $0.15 / RSF or $13,361.85 from the Construction Allowance directly to DLR Group, for the purpose of preparing the initial Construction Documents, and shall pay any balance due to DLR Group upon completion of the Approved Construction Documents.

 

(A)          Landlord’s obligation to reimburse Tenant for Tenant’s construction of the Tenant Improvement Work shall be: (i) limited to actual costs incurred by Tenant in its construction of the Tenant

 

H1-1

 

Improvement Work; (ii) limited to an amount up to, but not exceeding, $52.00 multiplied by the Rentable Area of the Additional Premises (which, based on an estimated Rentable Area of 89,079, shall be $4,632,108.00, and which shall be subject to change based on any re-measurement of the Additional Premises as set forth in Section 1.3(b)(i) of the Lease); and (iii) conditioned upon Landlord’s receipt of (X) written notice (which notice shall be accompanied by invoices and documentation set forth below) from Tenant’s general contractor that the Tenant Improvement Work has been completed and accepted by Tenant and (Y) if required by Landlord, any additional documentation that may reasonably be required by Landlord’s mortgagee in connection with permitting draws on the Construction Allowance.  The cost of (a) all space planning, design, consulting or review services obtained by Tenant in obtaining the Approved Construction Drawings, (b) purchasing and installing all building equipment for the Additional Premises (including any submeters and other above building standard electrical equipment approved by Landlord), (c) required metering, re-circuiting or re-wiring for metering, equipment rental, engineering design services, consulting services, studies, construction services, cost of billing and collections, (d) all costs associated with obtaining any required building permits and other governmental approvals (which shall be procured by Tenant’s general contractor as part of the Tenant Improvement Work); and (e) materials and labor, shall all be included in the cost of the Tenant Improvement Work and may be paid out of the Construction Allowance, to the extent sufficient funds are available for such purpose.  In addition, Tenant may elect to use a portion of the Construction Allowance, not to exceed $5.00 multiplied by the Rentable Area of the Additional Premises, toward the costs of leasehold improvements in the Current Premises that may be part of the Approved Construction Documents, provided that there are sufficient funds available in the Construction Allowance for such purposes.  Any reimbursement obligation of Landlord under this Work Letter shall be applied solely to the purposes specified above, as allocated, within one hundred eighty (180) days after the Additional Premises Rent Commencement Date or be forfeited with no further obligation on the part of Landlord.

 

(B)          The Construction Allowance (less a ten percent (10%) retainage to be held by Landlord, or if required by Landlord’s mortgagee, Landlord’s mortgagee, herein the “Retainage”) shall be funded in installments (no more frequently than once per month on the last business day of each month) directly to Tenant’s general contractor (unless otherwise directed by Tenant) within thirty (30) days following Landlord’s receipt of Tenant’s written draw request (including the final draw request by Sand Construction) accompanied by the following documents: (i) conditional progress lien waivers from Tenant’s general contractor and all subcontractors (collectively, “Tenant’s Contractors”) whose work is the subject of such draw request (subject only to the receipt of payment therefor), (ii) unconditional progress lien waivers from Tenant’s Contractors with respect to any amounts funded by Landlord more than 30 days prior to the date of the current draw request, (iii) reasonable supporting detail in AIA G702 format including, but not limited to, work orders, invoices, sales receipts, bills of lading, time sheets and material purchase orders reasonably acceptable to Landlord, for the costs incurred by Tenant, (iv) a copy of the certificate of Tenant’s construction manager or architect certifying to Tenant and Landlord that the Tenant Improvement Work has been completed to the extent represented by the draw request; and (v) any other documentation reasonably required by Landlord’s mortgagee. Landlord shall promptly release all Retainage in connection with paying Sand Construction’s the final draw request, within thirty (30) days following Landlord’s receipt of such request, provided that all Close-Out Items (hereinafter defined) are contained with such request.  If the final draw request does not contain all Close-Out Items, then Landlord shall not be required to release the Retainage until all Close-Out Items are received.  When used herein, the term “Close-Out Items” means the following items:  (1) a certificate of occupancy for the Premises related to the Tenant Improvement Work; (2) copies of all warranties and guarantees from Tenant’s Contractors; (3) final “as built” drawings with respect to the Tenant Improvement Work; (4) final lien waivers from all of Tenant’s Contractors or others providing goods or services relating to the Tenant Improvement Work; (5) copies of all operational and maintenance manuals related to the Tenant Improvement Work; (6) an air balancing report with respect to the Premises; (7) proof of, or a sufficient plan for, completion of all “punch list” items related to the Tenant Improvement Work; and (8) to the extent not included in items (1) through (7) any other items that might also be required pursuant to items (i) through (iv) above related to requests for interim draws.  If the total cost of the Tenant Improvement Work exceeds the Construction Allowance, then Tenant shall pay all such excess costs and Tenant agrees to keep the Premises and the Building free from any liens arising out of the non-payment of such costs.  Except as otherwise expressly provided in this Work Letter, any costs of the Tenant Improvement Work in excess of the Construction Allowance including changes requested by Tenant and approved by Landlord which increase the cost of the Tenant Improvement Work (collectively, “Actual Cost Overruns”) shall be paid by Tenant directly to Tenant’s Contractors as and when the same are due.  Landlord may stop or decline to commence payment of any of the Construction Allowance until such payment of any Actual Cost Overruns is made by Tenant and evidence of such payment is delivered to Landlord.  On or before the

 

H1-2

 

Additional Premises Rent Commencement Date, and as a condition to Tenant’s right to commence its business operations in the Additional Premises, Tenant shall provide Landlord with evidence that the entire amount of any Actual Cost Overruns has been paid or adequate provision for full and prompt payment has been made by Tenant.  Tenant’s failure to pay, when due, any Actual Cost Overruns shall constitute an Event of Default under the Lease.  If there are any projected Cost Overruns, Tenant shall with each draw request provide Landlord with an itemized description of any such projected Cost Overruns, and evidence that adequate provision has been made by Tenant for full and prompt payment of same to Tenant’s Contractors (it being the intent of the parties that the payments by Tenant and Landlord hereunder be made on a pari passu basis when due), unless otherwise directed by Landlord’s mortgagee.  At the request of Landlord or Landlord’s mortgagee, Tenant shall provide reasonable assurances, in such form as may be reasonably requested by Landlord or Landlord’s mortgagee, that it has the ability to pay any projected Cost Overruns.

 

(C)          All installations and improvements now or hereafter placed in the Premises other than building standard improvements shall be for Tenant’s account and at Tenant’s cost.  Tenant shall pay any ad valorem taxes and increased insurance thereon or attributable thereto, which cost, if any, shall be payable by Tenant to Landlord as additional Rent within thirty (30) days after receipt of an invoice therefor.  Tenant’s failure to pay such cost shall constitute an Event of Default under the Lease.

 

3.             Landlord’s Oversight and Coordination.  Construction of the Tenant Improvement Work shall be subject to reasonable oversight and coordination by Landlord, but such oversight and coordination shall not unreasonably interfere with or distract the work of Tenant’s Contractors.  Landlord has the right to inspect construction of the Tenant Improvement Work from time to time.  With each draw request, Tenant shall include as a line item for Landlord’s oversight and coordination of the construction of the Tenant Improvement Work, an oversight fee equal to Landlord’s out-of-pocket costs associated with such oversight, not to exceed a total of two percent (2%) of the aggregate contract price for the Tenant Improvement Work.  Landlord shall submit detailed monthly invoices to Tenant for Landlord’s out-of-pocket oversight costs, on or before the 20th calendar day of each month, for inclusion in Tenant’s next written draw request. Tenant’s failure to pay such oversight fee when due shall constitute an Event of Default under the Lease.

 

4.             Assumption of Risk and Waiver.  TENANT HEREBY ASSUMES ANY AND ALL RISKS INVOLVED WITH RESPECT TO THE TENANT IMPROVEMENT WORK AND HEREBY RELEASES AND DISCHARGES ALL LANDLORD PARTIES FROM ANY AND ALL LIABILITY OR LOSS, DAMAGE OR INJURY SUFFERED OR INCURRED BY TENANT OR THIRD PARTIES IN ANY WAY ARISING OUT OF OR IN CONNECTION WITH THE TENANT IMPROVEMENT WORK.

 

H1-3

 

EXHIBIT H-2

 

LANDLORD-MANAGED WORK LETTER

 

1.             Construction Generally.  Subject to the terms of this Landlord-Managed Work Letter (as used herein, the “Work Letter”), Landlord agrees to cause the Tenant Improvement Work to be performed in a good and workmanlike manner in accordance with the Approved Construction Documents.  Capitalized terms used in this Work Letter but not defined herein shall have the meanings given to such terms in the Lease.  In the case of a conflict between the terms of this Work Letter and the Lease, the latter shall control.  Tenant acknowledges that Landlord is not an architect or engineer, and that the Tenant Improvement Work will be designed and performed by independent architects, engineers and contractors (“Landlord’s Contractors”).  Accordingly, Landlord does not guarantee or warrant that the Approved Construction Documents will comply with laws or be free from errors or omissions, nor that the Tenant Improvement Work will be free from defects, and Landlord will have no liability therefor; except that, in the event of such errors, omissions or defects, and upon Tenant’s written request, Landlord will use commercially reasonable efforts to enforce any applicable warranties, and shall cause Landlord’s Contractors to remedy such defect(s) within a commercially reasonable time.  In addition, Landlord’s approval of the Construction Documents or the Tenant Improvement Work shall not be interpreted to waive or otherwise modify the terms and provisions of the Lease.  Landlord’s Contractors shall, at Landlord’s expense, be responsible for Americans with Disabilities Act (“ADA”) (and any comparable state accessibility standards) compliance in the Premises, including restrooms on any floor now or hereafter leased or occupied in its entirety by Tenant, its affiliates or transferees.  Landlord shall not be responsible for determining whether Tenant is a public accommodation under ADA or whether the Approved Construction Documents comply with ADA requirements; but Landlord shall cause Landlord’s Contractors to construct the Tenant Improvement Work in compliance with all applicable building codes.  Landlord’s approval of the Approved Construction Documents shall not be deemed a statement of compliance with applicable laws, nor of the accuracy, adequacy, appropriateness, functionality or quality of the improvements to be made according to the Approved Construction Documents.

 

2.             Landlord’s Contributions.  Landlord will provide a construction allowance not to exceed $52.00 multiplied by the Rentable Area of the Additional Premises (the “Construction Allowance”), toward the cost of constructing the Tenant Improvement Work (which, based on an estimated Rentable Area of 89,079, shall be $4,632,108.00, and which shall be subject to change based on any re-measurement of the Additional Premises as set forth in Section 1.3(b)(i) of the Lease).  Payments shall be made directly to Landlord’s Contractors performing the Tenant Improvement Work.     The cost of (a) all space planning, design, consulting or review services obtained by Tenant in obtaining the Approved Construction Drawings, (b) purchasing and installing all building equipment for the Additional Premises (including any submeters and other above building standard electrical equipment approved by Landlord), (c) required metering, re-circuiting or re-wiring for metering, equipment rental, engineering design services, consulting services, studies, construction services, cost of billing and collections, (d) all costs associated with obtaining any required building permits and other governmental approvals (which shall be procured by Landlord as part of the Tenant Improvement Work); and (e) materials and labor, shall all be included in the cost of the Tenant Improvement Work and may be paid out of the Construction Allowance, to the extent sufficient funds are available for such purpose.  In addition, Tenant may elect to use a portion of the Construction Allowance, not to exceed $5.00 multiplied by the Rentable Area of the Additional Premises, toward the costs of leasehold improvements in the Current Premises that may be part of the Approved Construction Documents, provided that there are sufficient funds available in the Construction Allowance for such purposes.  The Construction Allowance made available to Tenant under this Work Letter must be utilized for its intended purpose within one hundred eight (180) days after the Additional Premises Rent Commencement Date or be forfeited with no further obligation on the part of Landlord.

 

3.             Substantial Completion.  The Tenant Improvement Work shall be deemed to be “Substantially Complete” on the date that all Tenant Improvement Work (other than any details of construction, mechanical adjustment or any other similar matter, the noncompletion of which does not materially interfere with Tenant’s use or occupancy of the Additional Premises) has been performed, and the City of Boulder has completed all final inspections and approvals, and issued a Certificate of Occupancy or other appropriate governmental approvals permitting Tenant to occupy the Additional Premises for its business.  If there is any dispute as to when Substantial Completion has occurred, the date of the Certificate of Occupancy shall control.  Time is of the essence in connection with the obligations of Landlord and Tenant under this Work Letter.  Landlord shall not be liable or responsible for any claims incurred (or

 

H2-1

 

alleged) by Tenant due to any delay in achieving Substantial Completion, for any reason beyond the reasonable control of Landlord and/or Landlord’s Contractors.  Tenant’s sole and exclusive remedy for any delay in achieving Substantial Completion for any reason other than Tenant Delay (defined below) shall be the resulting postponement (if any) of the Additional Premises Rent Commencement Date.  “Tenant Delay” means any act or omission of Tenant or its agents, employees, vendors or contractors that actually delays the Substantial Completion of the Tenant Improvement Work, including:  (i) Tenant’s failure to furnish information or approvals within any time period specified in this Lease, including the failure to prepare or approve preliminary or final plans by any applicable due date; (ii) Tenant’s selection of non-building standard equipment or materials; (iii) changes requested or made by Tenant to previously approved plans and specifications; or (iv) performance of work in the Premises by Tenant or Tenant’s contractor(s) during the performance of the Tenant Improvement Work.

 

4.             Costs.

 

(A)          Change Orders and Cost Overruns.  Landlord’s approval is required in advance of all changes to, and deviations from, the Approved Construction Documents (each, a “Change Order”), including any (i) omission, removal, alteration or other modification of any portion of the Tenant Improvement Work, (ii) additional architectural or engineering services, (iii) changes to materials, whether building standard materials, specially ordered materials, or specially fabricated materials, or (iv) cancellation or modification of supply or fabrication orders.  Landlord’s approval of a Change Order shall not be unreasonably withheld, conditioned or delayed, and, so long as the cost of the Change Order does not create an Actual Cost Overrun (defined below), or to the extent that Tenant pre-pays such cost, Change Order approval shall be promptly granted. Except as otherwise expressly provided in this Work Letter, any costs of the Tenant Improvement Work in excess of the Construction Allowance including Change Orders requested by Tenant and approved by Landlord which increase the cost of the Tenant Improvement Work (collectively, “Actual Cost Overruns”) shall be paid by Tenant to Landlord within ten (10) days of receipt of Landlord’s invoice.  Landlord may stop or decline to commence all or any portion of the Tenant Improvement Work until such payment of Actual Cost Overruns is received.  On or before the Additional Premises Rent Commencement Date, and as a condition to Tenant’s right to take possession of the Additional Premises, Tenant shall pay Landlord the entire amount of any and all Actual Cost Overruns, less any prepaid amounts.  Tenant’s failure to pay, when due, any Actual Cost Overruns or the cost of any Change Order that produces an Actual Cost Overrun shall constitute an Event of Default under the Lease.

 

5.             Acceptance.  In connection with the issuance of a final Certificate of Occupancy by the City of Boulder, permitting Tenant to occupy the Additional Premises for its business, Landlord and Tenant (and/or their respective general contractors) shall jointly walk-through and inspect the Tenant Improvement Work, and generate a written punchlist of any items requiring finish-work, repair and/or correction by Landlord’s Contractors.  By taking possession of the Additional Premises, Tenant agrees and acknowledges that (i) the Additional Premises are usable by Tenant as intended; (ii) Landlord has no further obligation to perform any Tenant Improvement Work or other construction (except punchlist items, if any, agreed upon by Landlord and Tenant in writing or required by the Approved Construction Documents or local building codes): and (iii) both the Building and the Premises (including both the Current Premises and the Additional Premises) are satisfactory in all respects.  Landlord shall complete any punchlist items within a commercially reasonable time not to exceed thirty (30) calendar days.

 

H2-2Exhibit 10.1

 

BAY COLONY CORPORATE CENTER

1100 WINTER STREET

WALTHAM, MASSACHUSETTS

 

Lease dated June 10, 2013

 

THIS INSTRUMENT IS AN INDENTURE OF LEASE in which the Landlord and the Tenant are the parties hereinafter named, and which relates to space in a certain building (the “Building”) known as, and with an address at, 1100 Winter Street, Waltham, Massachusetts 02451.

 

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

 

ARTICLE I

 

Reference Data

 

1.1                               Subjects Referred To

 

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

 

	
Landlord:
    	
 
    	
BP   BAY COLONY LLC,

a   Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Landlord’s Original Address
    	
 
    	
c/o   Boston Properties Limited Partnership

Prudential   Center

800   Boylston Street, Suite 1900

Boston,   Massachusetts 02199-8103
    
	
 
    	
 
    	
 
    
	
Landlord’s Construction Representative:
    	
 
    	
Michael   Schumacher
   mschumacher@bostonproperties.com
    
	
 
    	
 
    	
 
    
	
Tenant:
    	
 
    	
AMAG   Pharmaceuticals, Inc., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
Tenant’s Original Address:
    	
 
    	
100   Hayden Avenue
   Lexington, MA 02451
    
	
 
    	
 
    	
 
    
	
Tenant’s Email Address for Information Regarding   Billings and 
    	
 
    	
ap@amagpharma.com
    

 

 

	
Statements:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Tenant’s Construction Representative:
    	
 
    	
Scott   Holmes

sholmes@amagpharma.com
    
	
 
    	
 
    	
 
    
	
Commencement Date:
    	
 
    	
As   defined in Section 2.4 of this Lease.
    
	
 
    	
 
    	
 
    
	
Rent Commencement Date:
    	
 
    	
That   date which is sixty (60) days following the Commencement Date. 
    
	
 
    	
 
    	
 
    
	
Estimated Commencement Date:
    	
 
    	
September 20,   2013.
    
	
 
    	
 
    	
 
    
	
Outside Completion Date: 
    	
 
    	
October 31,   2013.
    
	
 
    	
 
    	
 
    
	
Late Delivery Rent Abatement Commencement Date:
    	
 
    	
October 8,   2013.
    
	
 
    	
 
    	
 
    
	
Term (Sometimes Called the “Original Term”):
    	
 
    	
Sixty-two   (62) calendar months (plus the partial month, if any, immediately following   the Commencement Date), unless extended or sooner terminated as provided in   this Lease.
    
	
 
    	
 
    	
 
    
	
Extension Option:
    	
 
    	
One   (1) period of five (5) years as provided in and on the terms set   forth in Section 9.18 hereof.
    
	
 
    	
 
    	
 
    
	
The Site:
    	
 
    	
That   certain parcel of land known as and numbered 1100 Winter Street, Waltham,   Middlesex County, Massachusetts.
    
	
 
    	
 
    	
 
    
	
The Building:
    	
 
    	
The   Building known as and numbered 1100 Winter Street, Waltham, Massachusetts.
    
	
 
    	
 
    	
 
    
	
The Property:
    	
 
    	
The   Building together with all common areas, parking areas, decks and the Site.
    

 

2

 

	
Office Park:
    	
 
    	
That   certain office park known as Bay Colony Corporate Center, containing the   Building and the additional buildings known as and numbered 950, 1050 and   1000 Winter Street, Waltham, Massachusetts, located on the property more   particularly described in Exhibit A   attached hereto.
    
	
 
    	
 
    	
 
    
	
Tenant’s Premises:
    	
 
    	
A   portion of the third (3rd) floor of the Building in   accordance with the floor plan annexed hereto as Exhibit D   and incorporated herein by reference.
    
	
 
    	
 
    	
 
    
	
Number of Parking Spaces:
    	
 
    	
Ninety-six   (96) (being three (3) spaces per 1,000 square feet of the Rentable Floor   Area of the Premises).
    
	
 
    	
 
    	
 
    
	
Annual Fixed Rent:
    	
 
    	
(a) During   the Original Term of this Lease at the annual rate of $1,127,595.00 (being   the product of (i) $35.00 and (ii) the “Rentable Floor Area of the   Premises” (hereinafter defined in this Section 1.1), provided, however,   that Annual Fixed Rent shall not commence until the Rent Commencement Date   (hereinabove defined in this Section 1.1).

 

(b) During   the extension option period (if exercised), as determined pursuant to   Section 9.18.
    
	
 
    	
 
    	
 
    
	
Base Operating Expenses:
    	
 
    	
Landlord’s   Operating Expenses (as hereinafter defined in Section 2.6) for calendar   year 2014, being January 1, 2014 through December 31, 2014.
    
	
 
    	
 
    	
 
    
	
Base Taxes:
    	
 
    	
Landlord’s   Tax Expenses (as hereinafter defined in Section 2.7) for fiscal tax year   2014, being July 1, 2013 through June 30, 2014.
    
	
 
    	
 
    	
 
    
	
Tenant Electricity:
    	
 
    	
As   provided in Section 2.8.
    
	
 
    	
 
    	
 
    
	
Additional Rent:
    	
 
    	
All   charges and other sums payable by Tenant as set forth in this Lease, in   addition
    

 

3

 

	
 
    	
 
    	
to   Annual Fixed Rent.
    
	
 
    	
 
    	
 
    
	
Rentable Floor Area of the Premises:
    	
 
    	
32,217   square feet.
    
	
 

 
    	
 
    	
 
    
	
Total Rentable Floor Area of the Building:
    	
 
    	
281,380   square feet.
    
	
 
    	
 
    	
 
    
	
Permitted Use:
    	
 
    	
General   office purposes, and as ancillary thereto (but not as primary uses) other   uses customarily accessory to and consistent with general office purposes as   from time to time permitted as of right by the Zoning Code of the City of   Waltham.
    
	
 
    	
 
    	
 
    
	
Broker:
    	
 
    	
Colliers   International
    
	
 
    	
 
    	
 
    
	
Security Deposit:
    	
 
    	
$400,000.00
    

 

1.2                               Exhibits

 

There are incorporated as part of this Lease:

 

	
Exhibit A
    	
—
    	
Description   of Office Park
    
	
 
    	
 
    	
 
    
	
Exhibit B-1
    	
—
    	
Work   Agreement
    
	
 
    	
 
    	
 
    
	
Exhibit B-2
    	
—
    	
Plans
    
	
 
    	
 
    	
 
    
	
Exhibit C
    	
—
    	
Landlord’s   Services
    
	
 
    	
 
    	
 
    
	
Exhibit D
    	
—
    	
Floor   Plan
    
	
 
    	
 
    	
 
    
	
Exhibit E
    	
—
    	
Declaration   Affixing the Commencement Date of Lease
    
	
 
    	
 
    	
 
    
	
Exhibit F
    	
—
    	
[Intentionally Omitted]
    
	
 
    	
 
    	
 
    
	
Exhibit G
    	
—
    	
Form of   Letter of Credit
    
	
 
    	
 
    	
 
    
	
Exhibit H
    	
—
    	
Memorandum   Re: Procedure for Allocation of Electricity Costs
    
	
 
    	
 
    	
 
    
	
Exhibit I
    	
—
    	
Form of   Certificate of Insurance
    

 

4

 

	
Exhibit J
    	
—
    	
List   of Mortgages
    
	
 
    	
 
    	
 
    
	
Exhibit K
    	
—
    	
Broker   Determination
    
	
 
    	
 
    	
 
    
	
Exhibit L
    	
—
    	
Potential   ROFO Space
    

 

1.3                               Table of Articles and Sections

 

	
9.19
    	
Security Deposit
    	
59
    
	
9.20
    	
Late Payment
    	
61
    
	
9.21
    	
Tenant’s Payments
    	
62
    
	
9.22
    	
Waiver of Trial By Jury
    	
63
    
	
9.23
    	
Governing Law
    	
63
    
	
9.24
    	
Light and Air
    	
63
    
	
9.25
    	
Name of Building
    	
63
    

 

ARTICLE II

 

Building, Premises, Term and Rent

 

2.1                               The Premises

 

Landlord hereby demises and leases to Tenant, and Tenant hereby hires and accepts from Landlord, Tenant’s Premises in the Building excluding exterior faces of exterior walls, the common stairways and stairwells, elevators and elevator wells, fan rooms, electric and telephone closets, janitor closets, freight elevator vestibules, and pipes, ducts, conduits, wires and appurtenant fixtures serving exclusively or in common other parts of the Building and if Tenant’s Premises includes less than the entire rentable area of any floor, excluding the common corridors, elevator lobbies and toilets located on such floor. Tenant’s Premises with such exclusions is hereinafter referred to as the “Premises.”

 

2.2                               Rights to Use Common Facilities

 

Subject to Landlord’s right to change or alter any of the following in Landlord’s discretion as herein provided (provided that no such changes or alterations shall materially adversely affect Tenant’s access to or use of the Premises for the normal conduct of business or reduce the Number of Parking Spaces allotted to Tenant), Tenant shall have, as appurtenant to the Premises, the non-exclusive right to use in common with others, subject to reasonable rules of general applicability to tenants of the Building from time to time made by Landlord of which Tenant is given notice (a) the common lobbies, corridors, stairways, elevators and loading platform of the Building, and the pipes, ducts, conduits, wires and appurtenant meters and equipment serving the Premises in common

 

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with others, (b) common walkways and driveways necessary for access to the Building, and (c) if the Premises include less than the entire rentable floor area of any floor, the common toilets, corridors and elevator lobby of such floor.

 

Landlord shall use commercially reasonable efforts to complete the following amenities prior to the Commencement Date; provided, however, that the completion of any or all of the following shall not be a condition precedent to the occurrence of Substantial Completion or the Commencement Date:

 

·                                          Sebastian’s café

·                                          Starbucks kiosk

·                                          New Outdoor patios - South, Center, North

·                                          Outdoor fire-pit (Center)

·                                          Refurbished Conference Center

·                                          New furniture in south, center, and north, and café dining room.

·                                          Outdoor bocce court

·                                          Televisions in the South, Center, and North lobbies

·                                          New building entrances and signage matching 1000 at the North, Center, and South

·                                          Outdoor walking path connecting North, center, and south patios.

 

Provided the named Tenant herein has not sublet more than 50% of the Premises (other than to a Permitted Transferee), and continues to use and occupy the Premises (or that portion of the Premises not subleased), Landlord shall continue to operate during the Term of this Lease (i) the café or an alternative food-service establishment in the Building; and (ii) a fitness center in the building at 1000 Winter Street or in the Building.

 

Notwithstanding anything to the contrary herein, Landlord has no obligation to allow any particular telecommunication service provider to have access to the Building or to the Premises except as may be required by applicable law. If Landlord permits such access, Landlord may condition such access upon the payment to Landlord by the service provider of fees assessed by Landlord in its sole discretion.

 

2.2.1                     Tenant’s Parking

 

In addition, Tenant shall have the right to use in the parking area the Number of Parking Spaces (referred to in Section 1.1) for the parking of automobiles, in common with use by other tenants from time to time of the Property, provided, however, that Landlord shall not be obligated to furnish stalls or spaces on the Site specifically designated for Tenant’s use.  Notwithstanding the foregoing, and provided (i) no Event of Default has occurred hereunder, and (ii) Tenant has not assigned this Lease or sublet all or any portion of the Premises, if Landlord grants reserved parking rights to another tenant in the Building, Landlord shall grant similar reserved parking rights, on a proportionate basis, to Tenant.  In the event that the Rentable Floor Area of the Premises is changed at any time during the Lease Term due to a physical change in the footprint of the Premises, the Number of Parking Spaces provided to Tenant hereunder shall be adjusted proportionately.

 

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Tenant covenants and agrees that it and all persons claiming by, through and under it, shall at all times abide by all reasonable rules and regulations promulgated by Landlord with respect to the use of the parking areas on the Site. The parking privileges granted herein are non-transferable except to a permitted assignee or subtenant as provided in Section 5.6. Further, Landlord assumes no responsibility whatsoever for loss or damage due to fire, theft or otherwise to any automobile(s) parked on the Site or to any personal property therein, however caused, and Tenant covenants and agrees, upon request from Landlord from time to time, to notify its officers, employees, agents and invitees of such limitation of liability. Tenant acknowledges and agrees that a license only is hereby granted, and no bailment is intended or shall be created.

 

2.3                               Landlord’s Reservations

 

Landlord reserves the right from time to time, without unreasonable interference with Tenant’s use, and provided the Number of Parking Spaces allotted to Tenant shall not be reduced: (a) to install, use, maintain, repair, replace and relocate for service to the Premises and other parts of the Building, or either, pipes, ducts, conduits, wires and appurtenant fixtures, wherever located in the Premises or Building, (b) to perform, or cause to be performed, construction in the common areas and facilities or other leased areas on the Property or in the Office Park and (c) to reduce, increase, enclose or otherwise change at any time and from time to time the size, number, location, lay-out and nature of the common areas and facilities and other tenancies and premises on the Property or in the Office Park, to create additional rentable areas through use or enclosure of common areas, and to dedicate roads within the Office Park for public use. Installations, replacements and relocations referred to in clause (a) above shall be located so far as practicable in the central core area of the Building, above ceiling surfaces, below floor surfaces or within perimeter walls of the Premises. Any non-emergency work performed pursuant to this Section 2.3 shall be performed at such times and in such a manner so as to minimize interference with Tenant’s operations in the Premises and only after reasonable advance notice to Tenant.

 

2.4                               Habendum

 

Tenant shall have and hold the Premises for a period commencing on the earlier of (a) that date on which Landlord’s Work is Substantially Completed (or deemed Substantially Completed due to Tenant Delays) and the Premises are ready for occupancy as defined in Section 3.1 and Exhibit B-1 hereof, or (b) that date on which Tenant commences occupancy of any portion of the Premises for the Permitted Uses, and continuing for the Term unless sooner terminated as provided in Article VI or Article VII, or unless extended as provided in Section 9.18.

 

As soon as may be convenient after the date has been determined on which the Term commences as aforesaid, Landlord and Tenant agree to join with each other in the execution of a written Declaration, in the form of Exhibit E, in which the date on which the Term commences as aforesaid and the Term of this Lease shall be stated. If Tenant fails to execute such Declaration, the Commencement Date and Lease Term shall be as

 

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reasonably determined by Landlord in accordance with the terms of this Lease.

 

2.5                               Fixed Rent Payments

 

Tenant agrees to pay to Landlord, (1) (a) on the Rent Commencement Date (defined in Section 1.1 hereof) and thereafter monthly, in advance, on the first day of each and every calendar month during the Original Term, a sum equal to one twelfth (1/12th) of the Annual Fixed Rent (sometimes hereinafter referred to as “fixed rent”) and (b) on the Commencement Date and thereafter monthly, in advance, on the first day of each and every calendar month during the Original Lease Term, an amount estimated by Landlord from time to time to cover Tenant’s monthly payments for electricity under Section 2.8 and (2) on the first day of each and every calendar month during the extension option period (if exercised), a sum equal to (a) one twelfth (1/12th) of the annual fixed rent as determined in Section 9.18 for the extension option period plus (b) then applicable monthly electricity charges under Section 2.8.  Until notice of some other designation is given, fixed rent and all other charges for which provision is herein made shall be paid by remittance to or for the order of Landlord either (i) by mail to P.O. Box 3557, Boston, Massachusetts 02241-3557, (ii) by wire transfer to Bank of America in Dallas, Texas, Bank Routing Number 0260-0959-3 or (iii) by ACH transfer to Bank of America in Dallas, Texas, Bank Routing Number 111 000 012, and in the case of (ii) or (iii) referencing Account Number 3756454460, Account Name of Boston Properties, LP, Tenant’s name and the Property address. All remittances received by Boston Properties Limited Partnership as aforesaid, or by any subsequently designated recipient, shall be treated as payment to Landlord.

 

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

 

Additional Rent payable by Tenant on a monthly basis, as hereinafter provided, likewise shall be prorated, and the first payment on account thereof shall be determined in similar fashion but shall commence on the Commencement Date (excluding Additional Rent under Section 2.6 (which shall commence on January 1, 2015) and 2.7 (which shall commence on July 1, 2014)); and other provisions of this Lease calling for monthly payments shall be read as incorporating this undertaking by Tenant.

 

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

 

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

 

8

 

2.6                               Operating Expenses

 

“Landlord’s Operating Expenses” means the cost of operation of the Building and the Site (including, without limitation, costs associated with the operation of other portions of the Office Park benefitting and providing services to the Property as part of the Office Park as a whole, to the extent allocable to the Property) which shall exclude costs of special services rendered to tenants (including Tenant) for which a separate charge is made, but shall include, without limitation, the following: premiums for insurance carried with respect to the Building and the Site (including, without limitation, liability insurance, insurance against loss in case of fire or casualty and insurance of monthly installments of fixed rent and any Additional Rent which may be due under this Lease and other leases of space in the Building for not more than twelve (12) months in the case of both fixed rent and Additional Rent and if there be any first mortgage of the Property, including such insurance as may be required by the holder of such first mortgage); compensation and all fringe benefits, worker’s compensation insurance premiums and payroll taxes paid to, for or with respect to all persons engaged in the operating, maintaining or cleaning of the Building or Site; water, sewer, electric, gas, oil and telephone charges associated with the common areas of the Building and the Site (excluding utility charges separately chargeable to tenants); cost of building and cleaning supplies and equipment; cost of maintenance, cleaning and repairs (other than repairs not properly chargeable against income or reimbursed from contractors under guarantees); cost of snow removal and care of landscaping; cost of operating, maintaining and cleaning the cafeteria, fitness center and any shared conference facilities serving the Building; payments under service contracts with independent contractors; management fees at reasonable rates for self-managed buildings consistent with the type of occupancy and the service rendered, but in no event in excess of 3.0% of gross revenue from the Property; costs of maintaining a regional property management office in connection with the operation, management and maintenance of the Building; all costs of applying and reporting for the Building or any part thereof to seek or maintain certification under the U.S. EPA’s Energy Star® rating system, the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system or a similar system or standard; and all other reasonable and necessary expenses paid in connection with the operation, cleaning and maintenance of the Building and the Site and properly chargeable against income. Landlord’s Operating Expenses shall include depreciation for capital expenditures made by Landlord during the Lease Term (i) to reduce Landlord’s Operating Expenses if Landlord shall have reasonably determined that the annual reduction in Landlord’s Operating Expenses shall exceed depreciation therefor or (ii) to comply with applicable laws, rules, regulations, requirements, statutes, ordinances, by-laws and court decisions of all public authorities which are now or hereafter in force (the capital expenditures described in subsections (i) and (ii) being hereinafter referred to as “Permitted Capital Expenditures”), plus in the case of both (i) and (ii) an interest factor, reasonably determined by Landlord, as being the interest rate then charged for long term mortgages by institutional lenders on like properties within the locality in which the Building is located, and depreciation in the case of both (i) and (ii) shall be determined by dividing the original cost of such capital expenditure by the number of years of useful life of the capital item acquired and the useful life shall be reasonably

 

9

 

determined by Landlord in accordance with generally accepted accounting principles and practices in effect at the time of acquisition of the capital item; provided, however, if Landlord reasonably concludes on the basis of engineering estimates that a particular capital expenditure will effect savings in other Landlord’s Operating Expenses, including, without limitation, energy related costs, and that such projected savings will, on an annual basis (“Projected Annual Savings”), exceed the annual depreciation therefor, then and in such event the amount of depreciation for such capital expenditure shall be increased to an amount equal to the Projected Annual Savings; and in such circumstance, the increased depreciation (in the amount of the Projected Annual Savings) shall be made for such period of time as it would take to fully amortize the cost of the item in question, together with interest thereon at the interest rate as aforesaid in equal monthly payments, each in the amount of 1/12th of the Projected Annual Savings, with such payment to be applied first to interest and the balance to principal.

 

Notwithstanding the foregoing provisions, the following shall be excluded from Landlord’s Operating Expenses:

 

(1)                                 Leasing fees or commissions, advertising and promotional expenses, legal fees, the cost of tenant improvements, build out allowances, moving expenses, and other concessions and expenses incurred in connection with leasing spacing in the Building;

 

(2)                                 Interest on indebtedness, debt amortization, ground rent, and refinancing costs for any mortgage or ground lease of the Building, the Office Park, or any portion of either of them;

 

(3)                                 Costs incurred in performing work or furnishing services for any tenant (including Tenant), to the extent that such work or services is in excess of any work or service Landlord is obligated to provide Tenant under this Lease without additional charge.  However, as between Landlord and Tenant, the provisions of Section 4.1.2 shall apply in the case of additional services requested by Tenant to be performed by Landlord;

 

(4)                                 The cost of any item or service to the extent to which Landlord is reimbursed or compensated by insurance, any tenant, or any third party;

 

(5)                                 The cost of repairs or replacements incurred by reason of fire or other casualty or condemnation other than costs not in excess of the deductible on any insurance maintained by Landlord which provides a recovery for such repair or replacement, which deductible shall be as reasonably determined by Landlord;

 

(6)                                 Any advertising, promotional or marketing expenses for the Building;

 

(7)                                 With the exception of the management fee described in the first paragraph of this Section 2.6 and an allocable portion of the property management office costs and expenses of Landlord or Boston Properties, the cost of any service or materials provided by any party related to Landlord, to the extent such costs exceed the reasonable cost for such service or materials absent such relationship in buildings similar to the Buildings in

 

10

 

the vicinity of the Buildings;

 

(8)                                 Penalties and interest for late payment of any obligations of Landlord, including, without limitation, taxes, insurance, equipment leases and other past due amounts, provided that Tenant pays Operating Costs and real estate taxes timely as and when due;

 

(9)                                 Salaries or other compensation paid to employees above the grade of Regional Property Manager except that if any such employee performs a service which would have been performed by an outside consultant, the compensation paid to such employee for performing such service shall be included in Operating Expenses for the Building to the extent only that the cost of such service does not exceed the costs of such service had such service been performed by an outside consultant.  Further, if and to the extent an employee performs services at the Building and other properties, such employee’s labor costs shall be reasonably allocated and only the portion reasonably allocable to the Building shall be included in Landlord’s Operating Expenses (nothing contained herein shall affect Landlord’s right to collect the management fee specifically provided for above);

 

(10)                          Cost of purchasing or installing sculpture, paintings or other objects of art;

 

(11)                          Cost of repairs, replacements, alterations or improvements necessary to make the Building comply with applicable law in effect as of the date of this Lease;

 

(12)                          Legal fees or other expenses incurred in connection with negotiating and enforcing leases with tenants in the Building;

 

(13)                          Depreciation, except that “Permitted Capital Expenditures” (as hereinbefore defined) and interest and amortization thereon, which shall include payments for rented equipment to the extent that such rented equipment would, if purchased, constitute a Permitted Capital Expenditure or would be used in performing the work which constitutes a Permitted Capital Expenditure, shall be included in Operating Expenses;

 

(14)                          All costs and expenses of any special events (e.g. receptions, concerts); provided, however, that Tenant shall pay the entire costs and expenses of any special events run by Tenant;

 

(15)                          All legal, architectural, engineering, accounting and other professional fees; provided, however, that, subject to the provisions of item (1) above and (19) below, legal, architectural, engineering, accounting and other professional fees and costs incurred in connection with the management, operation, maintenance and repair of the Office Park shall be included in Operating Expenses;

 

(16)                          All costs and expenses attributable to any hazardous wastes, substances, or materials existing as of the date of this Lease (but not any which subsequently arise, other than by reason of the acts or omissions of Landlord, its agents, contractors, or employees or other tenants of the Office Park) and/or any testing, investigation, reporting,

 

11

 

management, maintenance, remediation or removal thereof. However, there shall be included in Operating Expenses the cost of Landlord’s routine annual or other periodic hazardous material or similar inspection of the buildings, the cost of which incurred during the Base Year shall also be included in Base Operating Expenses;

 

(17)                          All charitable or political contributions;

 

(18)                          Reserves, provided, however, amounts actually expended in maintaining, repairing and operating the Property shall be included in Operating Expenses;

 

(19)                          All costs and expenses arising out of (i) any violation of law or legal requirement by Landlord, (ii) any violation or breach of any lease of space in the Building, or (iii) any other breach of contract by Landlord;

 

(20)                          Any management fee other than the management fee set forth in the first paragraph of this Section 2.6; provided, however, that if Tenant requests Landlord or its managing agent to perform work for Tenant beyond that which is covered by this Section 2.6, the same shall be done on a work order basis for which Landlord shall have the right to charge Tenant for Landlord’s performing same; and

 

(21) All general corporate overhead of Landlord or any of its agents or affiliates.

 

To the extent that Landlord owns other buildings in the Office Park, Landlord’s Operating Expenses that relate to the common areas of the Office Park (and not exclusively to the Building or exclusively to any other buildings within the Office Park) shall be reasonably allocated by Landlord among all such buildings in the Office Park.

 

In addition to the foregoing, if in any calendar year after 2014 Landlord shall provide a service that was not provided in 2014 and the service in question is consistent with the then prevailing standards for operating and maintaining a first-class office complex, then Base Operating Expenses shall be adjusted to include 50% of the reasonable estimate of the cost of providing such service in calendar year 2014.  Further, if in any calendar year after 2014, Landlord shall cease to provide a service that was provided in 2014, then, unless the service in question is consistent with the then-prevailing standards for operating and maintaining a first-class office complex, Base Operating Expense shall be adjusted to exclude the cost of providing such services in calendar year 2014.

 

“Operating Expenses Allocable to the Premises” shall mean the same proportion of Landlord’s Operating Expenses for and pertaining to the Building and the Site as the Rentable Floor Area of the Premises bears to 95% of the Total Rentable Floor Area of the Building.

 

“Base Operating Expenses” is hereinbefore defined in Section 1.1. Base Operating Expenses shall not include (i) market-wide cost increases due to extraordinary circumstances, including but not limited to Force Majeure (as defined in Section 6.1), conservation surcharges, security concerns, boycotts, strikes, embargoes or shortages

 

12

 

(“Temporary Cost Increase”); provided, however, that if any item(s) of Temporary Cost Increases shall continue uninterrupted beyond calendar year 2014, then the amount of such Temporary Cost Increase excluded from Base Operating Expenses with respect to such item(s) shall also be excluded from Landlord’s Operating Expenses for and with respect to any such calendar year during which such Temporary Cost Increase continues and (ii) the cost of any Permitted Capital Expenditures; provided, however, that any Permitted Capital Expenditures excluded from Base Operating Expenses shall not be included in Landlord’s Operating Expenses in any subsequent year.

 

“Base Operating Expenses Allocable to the Premises” means the same proportion of Base Operating Expenses for and pertaining to the Building and the Site as the Rentable Floor Area of the Premises bears to 95% of the Total Rentable Floor Area of the Building.

 

If with respect to any calendar year falling within the Term, or fraction of a calendar year falling within the Term at the beginning or end thereof, the Operating Expenses Allocable to the Premises for a full calendar year exceed Base Operating Expenses Allocable to the Premises, or for any such fraction of a calendar year exceed the corresponding fraction of Base Operating Expenses Allocable to the Premises then, Tenant shall pay to Landlord, as Additional Rent, the amount of such excess. Such payments shall be made at the times and in the manner hereinafter provided in this Section 2.6.

 

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

 

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

 

13

 

operating expenses for each calendar year during the Term.

 

Notwithstanding the foregoing, in determining the amount of Landlord’s Operating Expenses for any calendar year or portion thereof falling within the Lease Term, if less than ninety-five percent (95%) of the Total Rentable Floor Area of the Building shall have been occupied by tenants at any time during the period in question, then those components of Landlord’s Operating Expenses that vary based on occupancy for such period shall be adjusted to equal the amount such components of Landlord’s Operating Expenses would have been for such period had occupancy been ninety-five percent (95%) throughout such period.

 

Subject to the provisions of this Section and provided that no Event of Default of Tenant exists, Tenant shall have the right to examine the correctness of the Landlord’s Operating Expense statement or any item contained therein:

 

1.                                      Any request for examination in respect of any “Operating Year” (as defined hereinbelow) may be made by notice from Tenant to Landlord no more than one hundred eighty (180) days after the date (the “Operating Expense Statement Date”) Landlord provides Tenant an Annual Statement for such Operating Year and only if Tenant shall have fully paid such amount.  Such notice shall set forth in reasonable detail the matters questioned.  Any examination must be completed and the results communicated to Landlord no more than ninety (90) days after Landlord delivers to Tenant all books and records reasonably required to perform such examination. “Operating Year” shall mean a period of twelve (12) consecutive calendar months, commencing on the first day of January in each year, except that the first Operating Year of the Lease Term hereof shall be the period commencing on the Commencement Date and ending on the succeeding December 31, and the last Operating Year of the Lease Term hereof shall be the period commencing on January 1 of the calendar year in which the Lease Term ends, and ending with the date on which the Lease Term ends.

 

2.                                      Tenant hereby acknowledges and agrees that Tenant’s sole right to contest the Annual Statement shall be as expressly set forth in this Section.  Tenant hereby waives any and all other rights provided pursuant to applicable laws to inspect Landlord’s books and records and/or to contest the Annual Statement.  If Tenant shall fail to timely exercise Tenant’s right to inspect Landlord’s books and records as provided in this Section, or if Tenant shall fail to timely communicate to Landlord the results of Tenant’s examination as provided in this Section, with respect to any Operating Year, Landlord’s Annual Statement shall be conclusive and binding on Tenant.

 

3.                                      Landlord’s books and records pertaining to the Landlord’s Operating Expenses for the Operating Year included in the Annual Statement shall be made available to Tenant within a reasonable time after Landlord timely receives the notice from Tenant to make such examination pursuant to this Section, either electronically or during normal business hours at the offices in Massachusetts where Landlord keeps such books and records or at another location in Massachusetts, as determined by Landlord.

 

14

 

4.                                      Tenant shall have the right to make such examination no more than once in respect of any Operating Year for which Landlord has given Tenant an Annual Statement.

 

5.                                      Such examination may be made only by a qualified employee of Tenant or a qualified independent certified public accounting firm or a qualified real estate professional or firm approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. No examination shall be conducted by an examiner who is to be compensated, in whole or in part, on a contingent fee basis.

 

6.                                      As a condition to performing any such examination, Tenant and its examiners shall be required to execute and deliver to Landlord a commercially reasonable form of agreement, agreeing to keep confidential any information which it discovers about Landlord or the Building in connection with such examination.

 

7.                                      No subtenant shall have any right to conduct any such examination and no assignee may conduct any such examination with respect to any period during which the assignee was not in possession of the Premises.

 

8.                                      All costs and expenses of any such examination shall be paid by Tenant, provided that if such examination indicates that Landlord has overcharged Tenant for Operating Expenses for such Operating Year by more than 5%, Landlord shall reimburse Tenant for the actual, reasonable out-of-pocket costs to perform such audit.

 

9.                                      If as a result of such examination Landlord and Tenant agree that the amounts paid by Tenant to Landlord on account of the Landlord’s Operating Expenses exceeded the amounts to which Landlord was entitled hereunder, or that Tenant is entitled to a credit with respect to the Landlord’s Operating Expenses, Landlord, at its option, shall refund to Tenant the amount of such excess or apply the amount of such credit, as the case may be, within thirty (30) days after the date of such agreement. Similarly, if Landlord and Tenant agree that the amounts paid by Tenant to Landlord on account of Landlord’s Operating Expenses were less than the amounts to which Landlord was entitled hereunder, then Tenant shall pay to Landlord, as additional rent hereunder, the amount of such deficiency within thirty (30) days after the date of such agreement.

 

2.7                               Real Estate Taxes

 

If with respect to any full Tax Year or fraction of a Tax Year falling within the Term, Landlord’s Tax Expenses Allocable to the Premises as hereinafter defined for a full Tax Year exceed Base Taxes Allocable to the Premises, or for any such fraction of a Tax Year exceed the corresponding fraction of Base Taxes Allocable to the Premises then, on or before the thirtieth (30th) day following receipt by Tenant of the certified statement referred to below in this Section 2.7, then Tenant shall pay to Landlord, as Additional Rent, the amount of such excess. Such payments shall be made at the times and in the manner hereinafter provided in this Section 2.7.  Not later than ninety (90) days after Landlord’s Tax Expenses Allocable to the Premises are determined for the first such Tax Year or fraction thereof and for each succeeding Tax Year or fraction thereof during the

 

15

 

Term, Landlord shall render Tenant a statement in reasonable detail certified by a representative of Landlord showing for the preceding year or fraction thereof, as the case may be, real estate taxes on the Building and the Site and abatements and refunds of any taxes and assessments. Expenditures for legal fees and for other expenses incurred in seeking the tax refund or abatement may be charged against the tax refund or abatement before the adjustments are made for the Tax Year. Said statement to be rendered to Tenant shall also show for the preceding Tax Year or fraction thereof as the case may be the amounts of real estate taxes already paid by Tenant as Additional Rent, and the amount of real estate taxes remaining due from, or overpaid by, Tenant for the year or other period covered by the statement. Within thirty (30) days after the date of delivery of the foregoing statement, Tenant shall pay to Landlord the balance of the amounts, if any, required to be paid pursuant to the above provisions of this Section 2.7 with respect to the preceding Tax Year or fraction thereof, or Landlord shall credit any amounts due from it to Tenant pursuant to the provisions of this Section 2.7 against (i) monthly installments of fixed rent next thereafter coming due or (ii) any sums then due from Tenant to Landlord under this Lease (or refund such portion of the over-payment as aforesaid if the Term has ended net of any sums then due from Tenant to Landlord).

 

In addition, payments by Tenant on account of increases in real estate taxes anticipated for the then current year shall be made monthly at the time and in the fashion herein provided for the payment of fixed rent. The amount so to be paid to Landlord shall be an amount reasonably estimated by Landlord to be sufficient to provide Landlord, in the aggregate, a sum equal to Tenant’s share of such increases, at least ten (10) days before the day on which such payments by Landlord would become delinquent.

 

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

 

Terms used herein are defined as follows:

 

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

 

(ii)                                  “Landlord’s Tax Expenses Allocable to the Premises” shall mean the same proportion of Landlord’s Tax Expenses for and pertaining to the Building and the Site as the Rentable Floor Area of the Premises bears to 95% of the Total Rentable Floor Area of the Building.

 

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

 

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

 

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(v)                                 “Base Taxes Allocable to the Premises” means the same proportion of Base Taxes for and pertaining to the Building and the Site as the Rentable Floor Area of the Premises bears to 95% of the Total Rentable Floor Area of the Building.

 

(vi)                              “Real estate taxes” means all taxes and special assessments of every kind and nature and user fees and other like fees assessed by any governmental authority on the Building or Site which the Landlord shall become obligated to pay because of or in connection with the ownership, leasing and operation of the Site, the Building and the Property, and reasonable expenses of and fees for any formal or informal proceedings for negotiation or abatement of taxes (collectively, “Abatement Expenses”), which Abatement Expenses shall be excluded from Base Taxes. The amount of special taxes or special assessments to be included shall be limited to the amount of the installment (plus any interest, other than penalty interest, payable thereon) of such special tax or special assessment required to be paid during the year in respect of which such taxes are being determined, calculated as if Landlord had elected to pay such special taxes or assessments over the longest period allowed by law (whether or not Landlord so elects). There shall be excluded from such taxes all income, estate, succession, inheritance, franchise and transfer taxes; and any fees, penalties, or interest payable on account of the late payment of any real estate taxes. If at any time during the Term the present system of ad valorem taxation of real property shall be changed so that in lieu of the whole or any part of the ad valorem tax on real property there shall be assessed on Landlord a capital levy or other tax on the gross rents received with respect to the Site or Building or Property, or a federal, state, county, municipal, or other local income, franchise, excise or similar tax, assessment, levy or charge (distinct from any now in effect in the jurisdiction in which the Property is located) measured by or based, in whole or in part, upon any such gross rents, then any and all of such taxes, assessments, levies or charges, to the extent so measured or based, shall be deemed to be included within the term “real estate taxes” but only to the extent that the same would be payable if the Site and Buildings were the only property of Landlord.

 

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

 

2.8                               Tenant Electricity

 

Landlord shall allocate the costs of furnishing electricity for lights and plugs and the distribution components of the heating, ventilating and air conditioning system to Tenant in accordance with the procedure contained in Exhibit H, and Tenant shall pay for such

 

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costs as provided in said Exhibit H.

 

ARTICLE III

 

Condition of Premises; Alterations

 

3.1                               Preparation of Premises

 

The condition of the Premises upon Landlord’s delivery along with any work to be performed by either Landlord or Tenant shall be as set forth in the Work Agreement attached hereto as Exhibit B-1 and made a part hereof.

 

ARTICLE IV

 

Landlord’s Covenants; Interruptions and Delays

 

4.1                               Landlord Covenants

 

                                                4.1.1                     Services Furnished by Landlord

 

To furnish services, utilities, facilities and supplies set forth in Exhibit C equal to those customarily provided by landlords in high quality buildings in the Boston West Suburban Market subject to escalation reimbursement in accordance with Section 2.6.

 

4.1.2                     Additional Services Available to Tenant

 

To furnish, at Tenant’s expense, reasonable additional Building operation services which are usual and customary in similar office buildings in the Boston West Suburban Market upon reasonable advance request of Tenant at reasonable and equitable rates from time to time established by Landlord. Tenant agrees to pay to Landlord, as Additional Rent, at the rates described above in this Section, the charges of Landlord providing any such additional Building services requested by Tenant and for the cost of any additions, alterations, improvements or other work performed by Landlord in the Premises at the express, written request of Tenant within thirty (30) days after being billed therefor.

 

4.1.3                     Roof, Exterior Wall, Floor Slab and Common Facility Repairs

 

Except for (a) normal and reasonable wear and use and (b) damage caused by fire and casualty and by eminent domain, and except as otherwise provided in Article VI and subject to the escalation provisions of Section 2.6, (i) to make such repairs to the roof, exterior walls, floor slabs and common areas and facilities as may be necessary to keep them in serviceable condition and (ii) to maintain the Building (exclusive of Tenant’s responsibilities under this Lease) in a first class manner comparable to the maintenance of similar high-quality properties in the Boston

 

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West Suburban Market.

 

4.1.4                     Signage

 

To provide and install, at Landlord’s expense, building standard signage to identify Tenant’s official name and Building address (i) on all Building directories, (ii) at the exterior doors in the Premises, and (iii) on the non-exclusive monument signage at the Building entrance; all such letters and numerals shall be in the building standard graphics and no others shall be used or permitted on the Premises, the Building or the Property, unless Landlord shall permit other tenants to use their own graphics and logos, in which case Tenant shall also have such right.

 

4.2                               Interruptions and Delays in Services and Repairs, Etc.

 

A.                                    Landlord shall not be liable to Tenant for any compensation or reduction of rent by reason of inconvenience or annoyance or for loss of business arising from the necessity of Landlord or its agents entering the Premises for any of the purposes in this Lease authorized, or for repairing the Premises or any portion of the Building however the necessity may occur, except if due to the negligence or willful misconduct of Landlord or its agents, contractors or employees. In case Landlord is prevented or delayed from making any repairs, alterations or improvements, or furnishing any services or performing any other covenant or duty to be performed on Landlord’s part, by reason of any cause reasonably beyond Landlord’s control, including without limitation by reason of Force Majeure (as defined in Section 6.1 hereof), Landlord shall not be liable to Tenant therefor, nor, except as expressly otherwise provided in Article VI, shall Tenant be entitled to any abatement or reduction of rent by reason thereof, or right to terminate this Lease, nor shall the same give rise to a claim in Tenant’s favor that such failure constitutes actual or constructive, total or partial, eviction from the Premises.

 

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

 

B.                                    Notwithstanding the foregoing, upon the occurrence of any event or circumstance resulting from or caused by (x) any failure of Landlord to provide electrical, heating, ventilating, air conditioning, all elevator service to the Premises or access to the Premises, or any other service required to be provided by Landlord pursuant to the terms of this Lease that prevents Tenant from using the Premises or any portion thereof or (y) any alterations, replacements, or improvements made by Landlord to other tenant premises within the Building (any such event or circumstance described in clauses (x) or (y) above being hereinafter referred to as an “Abatement Event”), Tenant shall give Landlord notice (“Abatement Notice”) of any such Abatement Event and if such Abatement Event continues beyond the Eligibility Period (as hereinafter defined), then

 

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the Annual Fixed Rent and Tenant’s payments with respect to Operating Expenses and Taxes shall be abated entirely or reduced, as the case may be, after the expiration of the Eligibility Period for such time that Tenant continues both to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from using, and does not use, bears to the total Rentable Floor Area of the Premises. The term “Eligibility Period” shall mean (i) in connection with a failure by Landlord to provide required services or access to the Premises due to an event or circumstance within Landlord’s reasonable control or in connection with any alterations, replacements, or improvements made by Landlord to other tenant premises within the Building, a period of five (5) consecutive business days after Landlord’s receipt of any Abatement Notice(s) and (ii) in connection with a failure by Landlord to provide required services or access to the Premises due to an event or circumstance not within Landlord’s reasonable control, a period of  fourteen (14) consecutive business days after Landlord’s receipt of any Abatement Notice(s).

 

 4.3                            Hazardous Materials

 

Subject to the limitations of Section 9.3 hereof, Landlord shall remove or abate as required by applicable Hazardous Materials Laws (as that term is defined in Section 5.3 below) Hazardous Materials (as that term is defined in Section 5.3 below) on, at, beneath, or migrating from the Site or in the Building, provided that the foregoing removal and/or abatement requirements shall not apply to Hazardous Materials (including mold) which first become present in the Building or on the Site after the Commencement Date (x) because of the use, action or (where action is required hereunder or under Hazardous Materials Laws) inaction of any tenant or occupant in the Site, including Tenant, or any employee, agent or contractor of Tenant or (y) because of any use, alterations or other construction by or for Tenant or any occupant (other than any Landlord Party) of the Building (items (x) and (y) being herein collectively called the “Exclusions”).  Subject to the limitations of Section 9.3 hereof, Landlord agrees to defend, indemnify, and save Tenant harmless from liability, loss and damage to persons or property and from any claims (including, without limitation, bodily injury, property damage, and environmental clean-up claims and notices of responsibility), actions, proceedings and expenses in connection therewith resulting from (1) the presence of Hazardous Materials on, at, beneath, or migrating from the Site or in the Building, except to the extent present as a result of the action of Tenant, or any employee, agent or contractor of Tenant; or (2) the failure of Landlord to fulfill its obligations under the this Section 4.3; provided, however, that in no event shall the foregoing indemnity (i) cover or in any way include the Exclusions and (ii) render Landlord liable for any loss or damage to Tenant’s Property and Landlord shall in no event be liable for indirect, consequential or punitive damages.  This indemnity and hold harmless agreement shall survive the expiration or earlier termination of this Lease.

 

4.6                               Compliance with Law

 

To comply with all applicable Legal Requirements now or hereafter in force that impose a duty on Landlord with respect to the common areas of the Site.  Landlord hereby

 

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warrants and represents to Tenant that, to the best of Landlord’s knowledge, as of the Date of this Lease, Landlord has received no written notices from governmental authorities alleging that the Building or any portion thereof is in violation of any applicable Legal Requirements, including without limitation, (i) Title III of the Americans with Disabilities Act of 1990, or any regulations promulgated thereunder, or (ii) the regulations of the Massachusetts Architectural Access Board set forth in 521 CMR 1.00.

 

ARTICLE V

 

Tenant’s Covenants

 

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

 

5.1                               Payments

 

To pay when due all fixed rent and Additional Rent and all charges for utility services rendered to the Premises (except as otherwise provided in Exhibit C) and, as further Additional Rent, all charges for additional services rendered pursuant to Section 4.1.2. In the event Tenant pays any utilities for the Premises directly to the utility company or provider, Tenant shall grant Landlord access to Tenant’s account with such utility company or provider so that Landlord can review the utility bills relating to the Premises.

 

5.2                               Repair and Yield Up

 

Except as otherwise provided in Article VI and Section 4.1.3 to keep the Premises in good order, repair and condition, and all glass in the Premises (except glass in exterior walls unless the damage thereto is attributable to Tenant’s negligence or misuse, subject to Section 8.13) and doors of the Premises whole and in good condition with glass of the same type and quality as that injured or broken, in each case reasonable wear and tear, damage by fire or other casualty or taking under the power of eminent domain and damage resulting from the negligence of any of the Landlord Parties, their agents, contractors or employees or from the failure of Landlord to perform its obligations under this Lease only excepted, and at the expiration or termination of this Lease peaceably to yield up the Premises including all construction, work, improvements, and all alterations and additions thereto in such condition, first removing all furniture, fixtures, equipment, goods and effects of Tenant and, to the extent specified by Landlord by notice to Tenant at the time Landlord approved such installations, the wiring for Tenant’s computer, telephone and other communication systems and equipment whether located in the Premises or in any other portion of the Building, including all risers and all alterations and additions made by Tenant (but specifically excluding all cabling and wiring existing in the Premises as of the date of this Lease) and all partitions, and repairing any damage caused by such removal and restoring the Premises and leaving them clean and neat. Tenant shall not permit or commit any waste, and subject to Section 8.13, Tenant shall be

 

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responsible for the cost of repairs which may be made necessary by reason of damage to common areas in the Building, to the Site or to the Office Park caused by Tenant, Tenant’s agents, contractors, employees, sublessees, licensees, concessionaires or invitees.  Notwithstanding the foregoing, in no event shall Tenant be required to remove any element of Landlord’s Work or any alterations other than non-standard office alterations that would require unusual and excessive cost to remove and restore to general office use.

 

5.3                               Use

 

To use the Premises for no other purpose other than the Permitted Use, and not to injure or deface the Premises, Building, the Additional Building, the Site or any other part of the Site nor to permit by Tenant or any party claiming by, through or under Tenant in the Premises or on the Site any auction sale, vending machine (other than those used exclusively by Tenant’s personnel), or inflammable fluids or chemicals (except as set forth in the last grammatical paragraph of this Section 5.3), or nuisance, or the emission from the Premises of any objectionable noise or odor, nor to permit in the Premises anything which would  in any way result in the leakage of fluid or the growth of mold, and not to use or devote the Premises or any part thereof for any purpose other than the Permitted Uses, nor any use thereof which is inconsistent with the maintenance of the Building as an office building of the first class in the quality of its maintenance, use and occupancy, or which is likely to disturb the quiet enjoyment of other occupants of the Building or the Additional Building, contrary to law or ordinance or liable to invalidate or increase the premiums for any insurance on the Building or its contents or liable to render necessary any alteration or addition to the Building. Further, (i) Tenant shall not, nor shall Tenant permit its employees, invitees, agents, independent contractors, contractors, assignees or subtenants to, keep, maintain, store or dispose of (into the sewage or waste disposal system or otherwise) or engage in any activity which might produce or generate asbestos, petroleum (and any breakdown product thereof), lead containing paint, PCBs, and any other substance which is or may hereafter be classified as a hazardous material, waste or substance (collectively “Hazardous Materials”), under federal, state or local laws, rules and regulations, including, without limitation, 42 U.S.C. Section 6901 et seq., 42 U.S.C. Section 9601 et seq., 42 U.S.C. Section 2601 et seq., 49 U.S.C. Section 1802 et seq. and Massachusetts General Laws, Chapter 21E and the rules and regulations promulgated under any of the foregoing, as such laws, rules and regulations may be amended from time to time (collectively “Hazardous Materials Laws”), (ii) Tenant shall promptly after becoming aware of same notify Landlord of any incident in, on or about the Premises, the Building or the Site that would require the filing of a notice under any Hazardous Materials Laws, (iii) Tenant shall comply and shall cause its employees, invitees, agents, independent contractors, contractors, assignees and subtenants to comply with each of the foregoing and (iv) Landlord shall have the right to make such inspections (including testing) as Landlord shall elect from time to time to determine that Tenant is complying with the foregoing.

 

Notwithstanding the foregoing, Tenant may use normal amounts and types of substances typically used for office uses, provided that Tenant uses such substances in the manner which they are normally used for office uses, and in compliance with all Hazardous

 

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Materials Laws and other applicable laws, ordinances, bylaws, rules and regulations, and Tenant obtains and complies with all permits required by Hazardous Materials Laws or any other laws, ordinances, bylaws, rules or regulations prior to the use or presence of any such substances in the Premises.

 

5.4                               Obstructions; Items Visible From Exterior; Rules and Regulations

 

Not to obstruct in any manner any portion of the Building not hereby leased or any portion thereof or of the other buildings or of the Site used by Tenant in common with others; not without prior consent of Landlord (which shall be in Landlord’s sole discretion) to permit the painting or placing of any signs (other than Tenant’s standard signage, logos and graphics in the entrance lobby to the Premises), curtains, blinds, shades, awnings, aerials or flagpoles, or the like, visible from outside the Premises (including, without limitation, from common lobbies within the Building); and to comply with all reasonable rules and regulations now or hereafter made by Landlord, of which Tenant has been given notice, for the care and use of the Building and Site and their facilities and approaches; Landlord shall not be liable to Tenant for the failure of other occupants of the Buildings to conform to such rules and regulations, provided that Landlord agrees to use reasonable efforts to enforce such rules and regulations in a uniform and non-discriminatory manner.

 

5.5                               Safety Appliances

 

To keep the Premises equipped with all safety appliances required by any public authority (it being agreed that Landlord’s Work shall include safety appliances required for Tenant to lawfully occupy the Premises) because of (i) any use made by Tenant other than normal office use, (ii) Tenant’s particular configuration of furniture within the Premises,  (iii) any alterations, additions or improvements made by or on behalf of Tenant in the Premises, or (iv) any subletting of any portion of the Premises, and to procure all licenses and permits so required because of any of the foregoing items described in clauses (i), (ii), (iii), or (iv) above, it being understood that the foregoing provisions shall not be construed to broaden in any way Tenant’s Permitted Use.  Landlord agrees to provide any other safety appliances so required by law (i.e., except to the extent the same are required by reason of clauses (i), (ii), (iii), or (iv) above), the cost of which shall be included in Landlord’s Operating Expenses to the extent provided in Section 2.6 above.

 

5.6                               Assignment; Sublease

 

Except as otherwise expressly provided herein, Tenant covenants and agrees that it shall not assign, mortgage, pledge, hypothecate or otherwise transfer this Lease and/or Tenant’s interest in this Lease or sublet (which term, without limitation, shall include granting of concessions, licenses or the like) the whole or any part of the Premises. In addition, the merger or consolidation of Tenant into or with any other entity, or the sale of all or substantially all of its assets, shall be deemed to be an assignment within the meaning of this Section 5.6. Any assignment, mortgage, pledge, hypothecation, transfer or subletting not expressly permitted in or consented to by Landlord under Sections 5.6.1-

 

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5.6.6 shall, at Landlord’s election, be void; shall be of no force and effect; and shall confer no rights on or in favor of third parties. In addition, Landlord shall be entitled to seek specific performance of or other equitable relief with respect to the provisions hereof. The limitations of this Section 5.6 shall be deemed to apply to any guarantor(s) of this Lease.

 

5.6.1                     Notwithstanding the provisions of Section 5.6 above, in the event Tenant desires to assign this Lease or to sublet the whole or any part of the Premises, Tenant shall give Landlord notice (the “Proposed Transfer Notice”) of any proposed sublease or assignment, and said notice shall specify the provisions of the proposed assignment or subletting, including (a) the name and address of the proposed assignee or subtenant, (b) in the case of a proposed assignment or subletting pursuant to Section 5.6.3 below, such information as to the proposed assignee’s or proposed subtenant’s net worth and financial capability and standing as may reasonably be required for Landlord to make the determination referred to in said Section 5.6.3 (provided, however, that Landlord shall hold such information confidential having the right to release same to its officers, accountants, attorneys and mortgage lenders on a confidential basis), (c) all of the terms and provisions upon which the proposed assignment or subletting is to be made, (d) in the case of a proposed assignment or subletting pursuant to Section 5.6.3 below, all other information necessary to make the determination referred to in said Section 5.6.3 and (e) in the case of a proposed assignment or subletting pursuant to Section 5.6.4 below, such information as may be reasonably required by Landlord to determine that such proposed assignment or subletting complies with the requirements of said Section 5.6.4; provided, however, that in the case of a merger or acquisition, if required by law or by the terms of any confidentiality agreement to which Tenant is a party, such information may be provided forthwith after the effective date of such assignment.  Within thirteen (13) business days following Landlord’s receipt of Tenant’s Proposed Transfer Notice given as aforesaid (including notice given by Tenant after the effective date of such assignment pursuant to the immediately preceding provision), Landlord shall make and submit to Tenant Landlord’s consent, or refusal to consent accompanied by Landlord’s reasons therefor pursuant to Section 5.6.3, or advise Tenant in reasonable detail of the particular respects in which Tenant’s notice and/or submission is insufficient (failing which, such notice and submission shall be deemed adequate) in which case Tenant shall re-submit such notice with all required information and thereupon the thirteen (13) business day period shall again be applicable.

 

5.6.2                     Landlord shall have the right at its sole option, to be exercised within thirteen (13) business days after receipt of Tenant’s Proposed Transfer Notice (the “Acceptance Period”) for an assignment of this Lease or a sublease which itself, or in combination with all other existing subleases would result in the subleasing of more than 50% of the Premises, to terminate this Lease as of a date specified in a notice to Tenant, which date shall not be earlier than sixty (60) days nor later than one hundred and twenty (120) days after Landlord’s notice to Tenant;

 

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provided, however, that upon the termination date as set forth in Landlord’s notice, all obligations relating to the period after such termination date (but not those relating to the period before such termination date) shall cease and promptly upon being billed therefor by Landlord, Tenant shall make final payment of all Annual Fixed Rent and Additional Rent due from Tenant through the termination date.  Notwithstanding the foregoing, in the event that Tenant shall only propose to sublease a portion of the Premises, which sublease itself, or in combination with all other existing subleases would result in the subleasing of more than 50% of the Premises, Landlord shall only have the right to so terminate this Lease with respect to those portions of the Premises which Tenant has previously subleased and proposes to sublease (the “Terminated Portion of the Premises”), and from and after the termination date the Rentable Floor Area of the Premises shall be reduced to the rentable floor area of the remainder of the Premises and the definition of Rentable Floor Area of the Premises shall be so amended and after such termination all references in this Lease to the “Premises” or the “Rentable Floor Area of the Premises” shall be deemed to be references to the remainder of the Premises and accordingly Tenant’s payments for Annual Fixed Rent, operating costs, real estate taxes and electricity shall be reduced on a pro rata basis to reflect the size of the remainder of the Premises.  In the case of a partial subletting where Landlord has exercised its termination right pursuant to this Section 5.6.2, Tenant shall pay to Landlord, as Additional Rent, within thirty (30) days after demand therefor, the reasonable cost to separately physically demise that portion of the Premises which are being terminated from the remainder of the Premises.  In the event that Landlord shall not exercise its termination rights as aforesaid, or shall fail to give any or timely notice pursuant to this Section the provisions of Sections 5.6.3, 5.6.5 and 5.6.6 shall be applicable. This Section 5.6.2 shall not be applicable to an assignment or sublease pursuant to Section 5.6.4.

 

5.6.3                     Notwithstanding the provisions of Section 5.6 above, but subject to the provisions of this Section 5.6.3 and the provisions of Sections 5.6.5 and 5.6.6 below, in the event that Landlord has the right to terminate this Lease in whole or in part pursuant to Section 5.6.2 and shall not have exercised such termination right, or shall have failed to give any or timely notice under Section 5.6.2, then for a period of ninety (90) days (i) after the receipt of Landlord’s notice stating that Landlord does not elect the termination right, or (ii) after the expiration of the Acceptance Period, in the event Landlord shall not give any or timely notice under Section 5.6.2 as the case may be, Tenant shall have the right to assign this Lease or sublet all or any portion of the Premises in accordance with the Proposed Transfer Notice provided that, in each instance, Tenant first obtains the express prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed.

 

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

 

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(a)                                 the proposed assignee or subtenant is (i) a tenant in the Building or elsewhere within the Office Park and Landlord then has available for lease space within the Office Park comparable in size to the space proposed to be subleased to such subtenant, (ii) is in active negotiation with Landlord or an affiliate of Landlord for premises in the Building or elsewhere within the Office Park, or (iii) is not of a character consistent with the operation of a first class office building (by way of example Landlord shall not be deemed to be unreasonably withholding its consent to an assignment or subleasing to any governmental or quasi-governmental agency that regularly deals with the public at large in such agency’s office, e.g., the Social Security Administration or Registry of Motor Vehicles), or

 

(b)                                 the proposed assignee or subtenant is not of good character and reputation, or

 

(c)                                  the proposed assignee does not possess adequate financial capability to perform the obligations of the Tenant under this Lease (in the case of an assignment) as and when due or required, or

 

(d)                                 the assignee or subtenant proposes to use the Premises (or part thereof) for a purpose other than the Permitted Use as stated in Section 1.1 hereof, or

 

(e)                                  the character of the business to be conducted or the proposed use of the Premises by the proposed subtenant or assignee shall (i) be reasonably likely to materially increase Landlord’s Operating Expenses beyond that which Landlord would reasonably anticipate incurring for the permitted use without this Lease (i.e., normal and customary office usage); (ii) be reasonably likely to materially increase the burden on elevators or other Building systems or equipment over the burden generated by normal and customary office usage; or (iii) violate or be reasonably likely to violate any provisions or restrictions contained herein relating to the use or occupancy of the Premises, or

 

(f)                                   there shall be existing an Event of Default (defined in Section 7.1), or

 

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

 

(h)                                 the holder of any mortgage or ground lease on property which includes the Premises does not approve of the proposed assignment or sublease, to the extent that such holder has consent rights under the terms of their ground lease or mortgage, or

 

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(i)                                     due to the identity or business of a proposed assignee or subtenant, such approval would cause Landlord to be in violation of any covenant or restriction contained in another lease or other agreement affecting space in the Building or elsewhere in the Property.

 

If Landlord shall consent to the proposed assignment or subletting, as the case may be, then, in such event, Tenant may thereafter sublease or assign pursuant to Tenant’s notice, as given hereunder; provided, however, that if such assignment or sublease shall not be executed and delivered to Landlord within ninety (90) days after the date of Landlord’s consent, the consent shall be deemed null and void and the provisions of Section 5.6.1 shall be applicable.

 

5.6.4                     Notwithstanding the foregoing provisions of Sections 5.6, 5.6.2, 5.6.3 and 5.6.5, but subject to the provisions of Sections 5.6.1 and 5.6.6, Tenant shall have the right to assign this Lease or to sublet the Premises (in whole or in part) to any other entity (the “Successor Entity”) (i) which controls or is controlled by Tenant or Tenant’s parent corporation, or (ii) which is under common control with Tenant, or (iii) which purchases all or substantially all of the assets of Tenant, or (iv) which purchases all or substantially all of the stock of (or other Ownership or membership interests in) Tenant or (v) which merges or combines with Tenant, provided that the entity to which this Lease is so assigned or which so sublets the Premises has a credit worthiness (e.g. net assets on a pro forma basis using generally accepted accounting principles consistently applied and using the most recent financial statements) greater than or equal to $68,000,000 in revenue and $140,000,000 in net assets as of the effective date of the proposed assignment or sublease, each as determined by generally accepted accounting principles and as shown in such entity’s most recent financial statements, as the case may be, based on such financial statements and other documentation reasonably requested by Landlord (the foregoing transferees referred to, individually or collectively, as a “Permitted Transferee”). Except in cases of statutory merger, in which case the surviving entity in the merger shall be liable as the Tenant under this Lease, Tenant shall continue to remain fully liable under this Lease, on a joint and several basis with the Permitted Transferee. If any parent, affiliate or subsidiary of Tenant to which this Lease is assigned or the Premises sublet (in whole or in part) shall cease to be such a parent, affiliate or subsidiary, such cessation shall be considered an assignment or subletting requiring Landlord’s consent.

 

5.6.5                     In the case of any assignment or subleasing as to which Landlord may consent (other than an assignment or subletting permitted under Section 5.6.4 above) such consent shall be upon the express and further condition, covenant and agreement, and Tenant hereby covenants and agrees that, in addition to the Annual Fixed Rent, Additional Rent and other charges to be paid pursuant to this Lease, fifty percent (50%) of the “Assignment/Sublease Profits” (hereinafter defined), if any, shall be paid to Landlord. The “Assignment/Sublease Profits” shall be the excess, if any, of (a) the “Assignment/Sublease Net Revenues” as hereinafter defined over (b) the Annual Fixed Rent and Additional Rent and other charges

 

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provided in this Lease (provided, however, that for the purpose of calculating the Assignment/Sublease Profits in the case of a sublease, appropriate prorations in the applicable Annual Fixed Rent, Additional Rent and other charges under this Lease shall be made based on the percentage of the Premises subleased and on the terms of the sublease). The “Assignment/Sublease Net Revenues” shall be the fixed rent, additional rent and all other charges and sums payable either initially or over the term of the sublease or assignment (exclusive of the rental or purchase price received by Tenant for the transfer of business assets other than Tenant’s leasehold interest under this Lease), less the actual out-of-pocket costs of Tenant incurred in such subleasing or assignment (the definition of which consists of rent concessions, brokerage commissions, legal fees of outside counsel engaged by Tenant in connection with such assignment or subleasing, alteration allowances and other costs of any leasehold improvements made by Tenant in connection with such subletting or assignment), as set forth in a statement certified by an appropriate officer of Tenant and delivered to Landlord within thirty (30) days of the full execution of the sublease or assignment document, amortized over the term of the sublease or assignment.

 

All payments of the Assignment/Sublease Profits due Landlord shall be made within fifteen (15) business days of receipt of same by Tenant.

 

5.6.6                     (A)                               It shall be a condition of the validity of any assignment or subletting consented to under Section 5.6.3 above, or any assignment or subletting of right under Section 5.6.4 above, that both Tenant (except in the event Tenant ceases to exist through a merger) and the assignee or sublessee enter into a separate written instrument directly with Landlord in a form and containing terms and provisions reasonably required by Landlord, including, without limitation, the agreement of the assignee or sublessee to be bound directly to Landlord for all the obligations of the Tenant under this Lease (including any amendments or extensions thereof), including, without limitation, the obligation (a) to pay the rent and other amounts provided for under this Lease (but in the case of a partial subletting pursuant to Section 5.6.4, such subtenant shall agree on a pro rata basis to be so bound), (b) to comply with the provisions of Sections 5.6 through 5.6.6 hereof and (c) to indemnify the “Landlord Parties” (as defined in Section 8.13) as provided in Section 8.1 hereof. Such assignment or subletting shall not relieve the Tenant named herein of any of the obligations of the Tenant hereunder and Tenant shall remain fully and primarily liable therefor and the liability of Tenant and such assignee (or subtenant, as the case may be) shall be joint and several. Further, and notwithstanding the foregoing, the provisions hereof shall not constitute a recognition of the sublease or the subtenant thereunder, as the case may be, and at Landlord’s option, upon the termination or expiration of the Lease (whether such termination is based upon a cause beyond Tenant’s control, a default of Tenant, the agreement of Tenant and Landlord or any other reason), the sublease shall be terminated.

 

(B)                               As Additional Rent, Tenant shall pay to Landlord as a fee for Landlord’s

 

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review of any proposed assignment or sublease requested by Tenant and the preparation of any associated documentation in connection therewith, within thirty (30) days after receipt of an invoice from Landlord, an amount equal to the reasonable out of pocket legal fees and other expenses incurred by Landlord in connection with any request by Tenant for consent to assignment or subletting, not to exceed $3,000 for any one transaction.  Section 5.14 hereof shall apply to any request for plan review made in connection with any transfer.

 

(C)                               If this Lease be assigned, or if the Premises or any part thereof be sublet or occupied by anyone other than Tenant, Landlord may upon prior notice to Tenant, at any time and from time to time after the occurrence of an Event of Default by Tenant, collect rent and other charges from the assignee, sublessee or occupant and apply the net amount collected to the rent and other charges herein reserved, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of this covenant, or a waiver of the provisions of Sections 5.6 through 5.6.6 hereof, or the acceptance of the assignee, sublessee or occupant as a tenant or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant herein contained, the Tenant herein named to remain primarily liable under this Lease.

 

(D)                               The consent by Landlord to an assignment or subletting under Section 5.6.3 above, or the consummation of an assignment or subletting of right under Section 5.6.4 above, shall in no way be construed to relieve Tenant from obtaining the express consent in writing of Landlord to any further assignment or subletting, where such consent is required hereunder.

 

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

 

(F)                                 Without limiting Tenant’s obligations under Section 5.12, Tenant shall be responsible, at Tenant’s sole cost and expense, for performing all work necessary to comply with Legal Requirements and Insurance Requirements in connection with any assignment or subletting hereunder including, without limitation, any work in connection with such assignment or subletting.

 

(G)                               In addition to the other requirements set forth in this Lease and notwithstanding any other provision of this Lease, partial sublettings of the Premises shall only be permitted under the following terms and conditions: (i) the layout of both the subleased premises and the remainder of the Premises must comply with applicable laws, ordinances, rules and/or regulations and be approved by Landlord, including, without limitation, all requirements concerning access and egress; (ii) in the event the subleased premises are separately physically demised from the remainder of the Premises, Tenant shall pay all costs of separately physically demising the subleased premises; and (iii) there shall be no more than two (2) subleases in effect in the Premises at any given time.

 

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5.6.7                     Notwithstanding the other provisions of this Lease, Tenant may from time to time and without Landlord’s consent  permit one or more portions of the Premises to be occupied by Tenant’s contractors, subcontractors of Tenant’s contractors, and/or employees of any of Tenant’s affiliates on a temporary basis pursuant to an oral or written revocable license, which contractors and/or subcontractors are using any such space in connection with the performance of their contract obligations to Tenant in connection with the Permitted Use and without payment of consideration therefor to Tenant other than the performance of such contract obligations, provided, however, that incidental use of such space by any such subcontractor or contractor on behalf of another entity shall not be deemed a violation of this paragraph. Any space used for the purposes of this paragraph shall be unified with (e.g. not separately demised), and indistinguishable from, portions of the Premises not used for such purposes. Without limiting the generality of Section 8.1 below, Tenant shall indemnify, defend and save Landlord harmless from and against any liability, loss, cost or damage resulting from the failure of any such contractors or subcontractors to comply with the terms and conditions of this Lease, and any such failure of such contractors or subcontractors to comply with the terms and conditions of this Lease shall be deemed a failure by Tenant to comply.  From time to time upon the written request of Landlord, Tenant shall identify in writing any such contractor or subcontractor occupying portions of the Premises pursuant to this Section 5.6.7.

 

5.7                               Right of Entry

 

To permit Landlord and its agents to examine the Premises at reasonable times and (except in the event of an emergency) upon reasonable prior notice and subject to Tenant’s reasonable security requirements of which Landlord has been given prior notice, if Landlord shall so elect, to make any alterations, additions or improvements contemplated by this Lease or any repairs or replacements Landlord may deem necessary in accordance with the terms and provisions of this Lease; to remove, at Tenant’s expense, any alterations, addition, signs, curtains, blinds, shades, awnings, aerials, flagpoles, or the like not consented to in writing; and to show the Premises to prospective tenants during the eleven (11) months preceding expiration of the Term and to prospective purchasers and mortgagees at all reasonable times. Landlord agrees that except in the case of an emergency, it will conduct any such entry contemplated by this Section 5.9 in such a manner so as to minimize any interference with the conduct of Tenant’s business operations in the Premises (consistent with the nature of the reason for such entry).

 

5.8                               Floor Load; Prevention of Vibration and Noise

 

Not to place a load upon the Premises exceeding an average rate of 70 pounds of live load per square foot of floor area (partitions shall be considered as part of the live load); and not to move any safe, vault or other heavy equipment in, about or out of the Premises except in such manner and at such time as Landlord shall in each instance authorize; Tenant’s business machines and mechanical equipment which cause vibration or noise

 

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that may be transmitted to the Building structure or to any other space in the Building shall be so installed, maintained and used by Tenant so as to eliminate such vibration or noise.

 

5.9                               Personal Property Taxes

 

To pay promptly when due all taxes which may be imposed upon “Tenant’s Property” (as defined in Section 8.4 hereof) in the Premises to whomever assessed.

 

5.10                        Compliance with Laws

 

Except as otherwise expressly provided in Section 4.6 above, to comply with all applicable Legal Requirements now or hereafter in force which shall impose a duty on Landlord or Tenant relating to or as a result of the particular manner of use or occupancy of the Premises by Tenant or any alterations or improvements performed by Tenant; provided that Tenant shall not be required to make any alterations or additions to the structure, roof, exterior and load bearing walls, foundation, structural floor slabs and other structural elements of the Building unless the same are required by such Legal Requirements as a result of or in connection with Tenant’s use or occupancy of the Premises beyond normal use of space of this kind. Tenant shall promptly pay all fines, penalties and damages that may arise out of or be imposed because of its failure to comply with the provisions of this Section 5.10.

 

5.11                        Payment of Litigation Expenses

 

As Additional Rent, to pay all reasonable costs, counsel and other fees incurred by Landlord in connection with the successful enforcement by Landlord of any obligations of Tenant under this Lease or in connection with any bankruptcy case involving Tenant (Landlord hereby similarly agreeing to pay all reasonable third party costs, counsel or other fees incurred by Tenant in connection with the successful enforcement by Tenant of any obligations of Landlord under this Lease or in connection with any bankruptcy case involving Landlord).

 

5.12                        Alterations

 

A.                                    Tenant shall not make alterations and additions to Tenant’s Premises except in accordance with plans and specifications therefor first approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. Landlord’s determination of matters relating to aesthetic issues relating to alterations, additions or improvements which are visible outside the Premises (including, without limitation, from common lobbies within the Building) shall be in Landlord’s reasonable discretion. Without limiting such standard Landlord shall not be deemed unreasonable for withholding approval of any alterations or additions (including, without limitation, any alterations or additions to be performed by Tenant under Article III) which (a) in Landlord’s reasonable opinion will materially adversely affect any structural or exterior element of the Building, any area or element outside of the Premises, or any facility or base building mechanical system serving any area of the Building outside of the

 

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Premises, or (b) involve or affect the exterior design, size, height, or other exterior dimensions of the Building or (c) will require unusual expense to readapt the Premises to normal office use on Lease termination or expiration or increase the cost of construction or of insurance or taxes on the Building or of the services called for by Section 4.1 unless Tenant first gives assurance acceptable to Landlord for payment of such increased cost and that such readaptation will be made prior to such termination or expiration without expense to Landlord, (d) enlarge the Rentable Floor Area of the Premises, or (e) are inconsistent, in Landlord’s reasonable judgment, with alterations satisfying Landlord’s standards for new alterations in the Building. Landlord’s review and approval of any such plans and specifications and consent to perform work described therein shall not be deemed an agreement by Landlord that such plans, specifications and work conform with applicable Legal Requirements and requirements of insurers of the Building and the other requirements of this Lease with respect to Tenant’s insurance obligations (herein called “Insurance Requirements”) nor deemed a waiver of Tenant’s obligations under this Lease with respect to applicable Legal Requirements and Insurance Requirements nor impose any liability or obligation upon Landlord with respect to the completeness, design sufficiency or compliance of such plans, specifications and work with applicable Legal Requirements and Insurance Requirements nor give right to any other parties. Further, Tenant acknowledges that Tenant is acting for its own benefit and account, and that Tenant shall not be acting as Landlord’s agent in performing any work in the Premises, accordingly, no contractor, subcontractor or supplier shall have a right to lien Landlord’s interest in the Property in connection with any such work. Within thirty (30) days after receipt of an invoice from Landlord, Tenant shall pay to Landlord as a fee for Landlord’s review of any work or plans (excluding any review respecting initial improvements performed pursuant to Article III hereof for which a fee has previously been paid but including any review of plans or work relating to any assignment or subletting), as Additional Rent, an amount equal to the sum of: (i) $150.00 per hour for time spent by Landlord’s in-house personnel (not to exceed $1,000 per project), and (ii) all reasonable third party expenses incurred by Landlord to review Tenant’s plans and Tenant’s work (Landlord hereby agreeing to cap any plan review costs (i.e., inclusive of items (i) and (ii) above) relating to interior, non-structural alterations, addition or improvements that do not impact Building systems at $6,000.00 in connection with any single request for approval). All alterations and additions shall be part of the Building unless and until Landlord shall specify the same for removal pursuant to Section 5.2. All of Tenant’s alterations and additions and installation of furnishings shall be coordinated with any work being performed by Landlord and in such manner as to maintain harmonious labor relations and not to damage the Buildings or Site or interfere with construction or operation of the Buildings and other improvements to the Site and, except for installation of furnishings, shall be performed by Landlord’s general contractor or by contractors or workers first approved by Landlord, which approval shall not be unreasonably withheld. Except for work by Landlord’s general contractor, Tenant, before its work is started, shall secure all licenses and permits necessary therefor; deliver to Landlord a statement of the names of all its contractors and subcontractors and the estimated cost of all labor and material to be furnished by them and security reasonably satisfactory to Landlord protecting Landlord against liens arising out of the furnishing of such labor and material; and cause each contractor to carry insurance in accordance with Section 8.14 herein and

 

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to deliver to Landlord certificates of all such insurance. Except with respect to purely cosmetic work, such as floor and wall coverings, Tenant shall also prepare and submit to Landlord a set of as-built plans, in both print and electronic forms, showing such work performed by Tenant to the Premises promptly after any such alterations, improvements or installations are substantially complete and promptly after any wiring or cabling for Tenant’s computer, telephone and other communications systems is installed by Tenant or Tenant’s contractor. Without limiting any of Tenant’s obligations hereunder, Tenant shall be responsible, as Additional Rent, for the costs of any alterations, additions or improvements in or to the Building that are required in order to comply with Legal Requirements directly as a result of any work performed by Tenant. Landlord shall have the right to provide such rules and regulations relative to the performance of any alterations, additions, improvements and installations by Tenant hereunder and Tenant shall abide by all such reasonable rules and regulations of which Tenant has received advance written notice and shall cause all of its contractors to so abide including, without limitation, payment for the costs of using Building services. Tenant agrees to pay promptly when due the entire cost of any work done on the Premises by Tenant, its agents, employees, or independent contractors, and not to cause or permit any liens for labor or materials performed or furnished in connection therewith to attach to the Premises or the Buildings or the Site and immediately to discharge any such liens which may so attach. Tenant shall pay, as Additional Rent, 100% of any real estate taxes on the Property which shall, at any time after commencement of the Term, be expressly assessed by the taxing authority upon any alteration, addition or improvement to the Premises made by Tenant. Tenant acknowledges and agrees that Landlord shall be the owner of any additions, alterations and improvements in the Premises or the Building to the extent paid for by Landlord.

 

B.                                    Notwithstanding the terms of Section 5.12(A), Tenant shall have the right, without obtaining the prior consent of Landlord, to make alterations, additions or improvements to the Premises where:

 

(i)                               the same are within the interior of the Premises within the Building, and do not affect the exterior of the Premises and the Building (including no signs on windows);

 

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

 

(iii)                         the cost of any individual alteration, addition or improvement shall not exceed $20,000.00; and

 

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

 

provided, however, that Tenant shall, within ten (10) days prior to the making of such

 

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changes, send to Landlord plans and specifications describing the same in reasonable detail.  Tenant shall not be required to remove any alterations, additions or improvements for which Landlord consent is not required under this Section 5.16.B.

 

5.13                        Vendors

 

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

 

5.14                        Patriot Act

 

As an inducement to Landlord to enter into this Lease, Tenant hereby represents and warrants that: (i) Tenant is not, nor is it owned or controlled directly or indirectly by, any person, group, entity or nation named on any list issued by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”) pursuant to Executive Order 13224 or any similar list or any law, order, rule or regulation or any Executive Order of the President of the United States as a terrorist, “Specially Designated National and Blocked Person” or other banned or blocked person (any such person, group, entity or nation being hereinafter referred to as a “Prohibited Person”); (ii) Tenant is not (nor is it owned, controlled, directly or indirectly, by any person, group, entity or nation which is) acting directly or indirectly for or on behalf of any Prohibited Person; and (iii) from and after the effective date of the above-referenced Executive Order, Tenant (and any person, group, or entity which Tenant controls, directly or indirectly) has not conducted nor will conduct business nor has engaged nor will engage in any transaction or dealing with any Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation, including without limitation any assignment of this Lease or any subletting of all or any portion of the Premises or the making or receiving of any contribution of funds, goods or services to or for the benefit of a Prohibited Person in violation of the U.S. Patriot Act or any OFAC rule or regulation. In connection with the foregoing, it is expressly understood and agreed that (x) any breach by Tenant of the foregoing representations and warranties shall be deemed an immediate Event of Default by Tenant under Section 7.1 of this Lease (without the benefit of notice or grace) and shall be covered by the indemnity provisions of Section 8.1 below, and (y) the representations and warranties contained in this subsection shall be continuing in nature and shall survive the expiration or earlier termination of this Lease.

 

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ARTICLE VI

 

Casualty and Taking

 

6.1                               Damage Resulting from Casualty

 

In case during the Lease Term the Building or the Site are damaged by fire or casualty and such fire or casualty damage cannot, in the ordinary course, reasonably be expected to be repaired within two hundred ten (210) days from the time that repair work would commence, Landlord may, at its election, terminate this Lease by notice given to Tenant within thirty (30) days after Landlord’s delivery to Tenant of Landlord’s estimate of restoration, specifying the effective date of termination. The effective date of termination specified by Landlord shall not be less than thirty (30) days nor more than forty-five (45) days after the date of notice of such termination.

 

In case during the Term, the Premises are damaged by fire or casualty and such fire or casualty damage cannot, in the ordinary course, reasonably be expected to be repaired within two hundred ten (210) days (and/or as to special work or work which requires long lead time then if such work cannot reasonably be expected to be repaired within such additional time as is reasonable under the circumstances given the nature of the work) from the time that repair work would commence, Tenant may, at its election, terminate this Lease by notice given to Landlord within thirty (30) days after receipt of Landlord’s estimate of restoration, specifying the effective date of termination. The effective date of termination specified by Tenant shall be not less than thirty (30) days nor more than forty-five (45) days after the date of notice of such termination.

 

Not later than thirty (30) days after the occurrence of any casualty damage to the Building, Landlord shall cause a reputable, independent contractor, engineer, insurance adjuster or other qualified professional to prepare an estimate of the time that would be required to restore the Building as required by this Article VI, which estimate shall be delivered to Landlord and Tenant within such 30-day period.  Such estimate shall provide the basis for the termination rights, if any, of Landlord and Tenant under the preceding two paragraphs.

 

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

 

If the Building or the Site or any part thereof are damaged by fire or other casualty and this Lease is not so terminated, or Landlord or Tenant have no right to terminate this Lease, and in any such case the holder of any mortgage which includes the Building as a part of the mortgaged premises or any ground lessor of any ground lease which includes the Site as part of the demised premises allows the net insurance proceeds to be applied to the restoration of the Building (and/or the Site), Landlord promptly after such damage and the determination of the net amount of insurance proceeds available shall use due diligence to restore the Premises and the Building in the event of damage thereto (excluding “Tenant’s Property” (as defined in Section 8.4 hereof), except as expressly

 

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provided in the immediately following paragraph of this Section 6.1) into proper condition for use and occupation and a just proportion of the Annual Fixed Rent, Tenant’s share of Operating Costs and Tenant’s share of real estate taxes and other Additional Rent according to the nature and extent of the injury to the Premises shall be abated until the Premises shall have been put by Landlord substantially into such condition except for punch list items and long lead items. Notwithstanding anything herein contained to the contrary, Landlord shall not be obligated to expend for such repair and restoration any amount in excess of the net insurance proceeds.

 

Notwithstanding the foregoing, if Landlord is proceeding with the restoration of the Building and the Premises in accordance with the previous paragraph, Landlord shall also restore Landlord’s Work and also any alterations, additions or improvements within the Premises that are part of Tenant’s Property (x) which have previously been approved by Landlord in accordance with the terms and provisions of this Lease and (y) with respect to which Tenant has carried “all risk” insurance covering the loss or damage in accordance with Section 8.4 below and pays the proceeds of such insurance (or an amount equivalent thereto) to Landlord within five (5) business days following Landlord’s written request); provided, however, that in no event shall Landlord be required to fund any insufficiency in the insurance proceeds (or equivalent amount) provided by Tenant with respect to such loss or damage (or to fund any of the costs of restoration in the absence of any payment by Tenant).

 

If  neither party has previously terminated this Lease and such restoration is not completed within ten (10) months from the date of the casualty or taking, such period to be subject, however, to extension where the delay in completion of such work is due to Force Majeure, as defined hereinbelow (but in no event beyond twelve (12) months from the date of the casualty or taking), Tenant, as its sole and exclusive remedy, shall have the right to terminate this Lease at any time after the expiration of such 10-month (as extended) period until the restoration is substantially completed, such termination to take effect as of the thirtieth (30th) day after the date of receipt by Landlord of Tenant’s notice, with the same force and effect as if such date were the date originally established as the expiration date hereof unless, within thirty (30) days after Landlord’s receipt of Tenant’s notice, such restoration is substantially completed, in which case Tenant’s notice of termination shall be of no force and effect and this Lease and the Lease Term shall continue in full force and effect. When used herein, “Force Majeure” shall mean any prevention, delay or stoppage due to governmental regulation, strikes, lockouts, acts of God, acts of war, terrorists acts, civil commotions, unusual scarcity of or inability to obtain labor or materials, labor difficulties, casualty or other causes reasonably beyond Landlord’s control or attributable to Tenant’s action or inaction.

 

6.2                              Uninsured Casualty

 

Notwithstanding anything to the contrary contained in this Lease, if the Building or the Premises shall be substantially damaged by fire or casualty as the result of a risk not covered by the forms of casualty insurance at the time maintained by Landlord or required to be maintained by Landlord hereunder and such fire or casualty damage cannot, in the ordinary course, reasonably be expected to be repaired within ninety (90)

 

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days from the time that repair work would commence, Landlord may, at its election, terminate the Term of this Lease by notice to the Tenant given within sixty (60) days after such loss. If Landlord shall give such notice, then this Lease shall terminate as of the date of such notice with the same force and effect as if such date were the date originally established as the expiration date hereof.

 

6.3                               Rights of Termination for Taking

 

If the entire Building, or such portion of the Premises as to render the balance (if reconstructed to the maximum extent practicable in the circumstances) unsuitable for Tenant’s purposes in Tenant’s reasonable business judgment, shall be taken by condemnation or right of eminent domain, Landlord or Tenant shall have the right to terminate this Lease by notice to the other of its desire to do so, provided that such notice is given not later than thirty (30) days after Tenant has been deprived of possession. If either party shall give such notice, then this Lease shall terminate as of the date that Tenant is deprived of possession with the same force and effect as if such date were the date originally established as the expiration date hereof.

 

Further, if (x) the entire Building shall be taken or (y) so much of the Building shall be so taken that continued operation of the Building would be uneconomic as a result of the taking, Landlord shall have the right to terminate this Lease by giving notice to Tenant of Landlord’s desire to do so not later than thirty (30) days after Tenant has been deprived of possession of the Premises (or such portion thereof as may be taken). If Landlord shall give such notice, then this Lease shall terminate as of the date that Tenant is deprived of possession with the same force and effect as if such date were the date originally established as the expiration date hereof.

 

Should any part of the Premises be so taken or condemned during the Lease Term hereof, and should this Lease not be terminated in accordance with the foregoing provisions, and the holder of any mortgage which includes the Premises as part of the mortgaged premises or any ground lessor of any ground lease which includes the Site as part of the demised premises allows the net condemnation proceeds to be applied to the restoration of the Building, Landlord agrees that after the determination of the net amount of condemnation proceeds available to Landlord, Landlord shall use due diligence to put what may remain of the Premises into proper condition for use and occupation as nearly like the condition of the Premises prior to such taking as shall be practicable (excluding Tenant’s Property). Notwithstanding the foregoing, Landlord shall not be obligated to expend for such repair and restoration any amount in excess of the net condemnation proceeds made available to it.

 

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

 

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6.4                                 Award

 

Landlord shall have and hereby reserves to itself any and all rights to receive awards made for damages to the Premises, the Buildings, the Property and the Site and the leasehold hereby created, or any one or more of them, accruing by reason of exercise of eminent domain or by reason of anything lawfully done in pursuance of public or other authority. Tenant hereby grants, releases and assigns to Landlord all Tenant’s rights to such awards, and covenants to execute and deliver such further assignments and assurances thereof as Landlord may from time to time request.

 

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

 

ARTICLE VII

 

Default

 

7.1                                 Tenant’s Default

 

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

 

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

 

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

 

(iii)          Tenant shall assign its interest in this Lease or sublet any portion of the Premises in violation of the requirements of Sections 5.6 through 5.6.5 of this Lease; or

 

(iv)          Tenant shall fail to maintain the general liability insurance required under this Lease, or Tenant shall employ labor or contractors within the Premises which interfere with Landlord’s Work, in 

 

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violation of Exhibit B-1, and the same continues for five (5) business days after notice from Landlord to Tenant thereof; or

 

(v)           Tenant shall neglect or fail to perform or observe any other covenant herein contained on Tenant’s part to be performed or observed and Tenant shall fail to remedy the same within thirty (30) days after notice to Tenant specifying such neglect or failure, or if such failure is of such a nature that Tenant cannot reasonably remedy the same within such thirty (30) day period, Tenant shall fail to commence promptly to remedy the same and to prosecute such remedy to completion with diligence and continuity; or

 

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

 

(vii)         Tenant shall make an assignment for the benefit of creditors or shall file a voluntary petition in bankruptcy or shall be adjudicated bankrupt or insolvent, or shall file any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future federal, state or other statute, law or regulation for the relief of debtors, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of Tenant or of all or any substantial part of its properties, or shall admit in writing its inability to pay its debts generally as they become due; or

 

(viii)        A petition shall be filed against Tenant in bankruptcy or under any other law seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any present or future Federal, State or other statute, law or regulation and shall remain undismissed or unstayed for an aggregate of sixty (60) days (whether or not consecutive), or if any debtor in possession (whether or not Tenant) trustee, receiver or liquidator of Tenant or of all or any substantial part of its properties or of the Premises shall be appointed without the consent or acquiescence of Tenant and such appointment shall remain unvacated or unstayed for an aggregate of sixty (60) days (whether or not consecutive) then, and in any of said cases (notwithstanding any license of a former breach of covenant or waiver of the benefit hereof or consent in a former instance).

 

Landlord lawfully may, immediately or at any time thereafter, and without demand or further notice terminate this Lease by notice to Tenant, specifying a date not less than ten (10) days after the giving of such notice on which this Lease shall terminate, and this Lease shall come to an end on the date specified therein as fully and completely as if such date were the date herein originally fixed for the 

 

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expiration of the Lease Term (Tenant hereby waiving any rights of redemption), and Tenant will then quit and surrender the Premises to Landlord, but Tenant shall remain liable as hereinafter provided.

 

(b)                                 If this Lease shall have been terminated as provided in this Article, then Landlord may, without notice, re-enter the Premises, either by force, summary proceedings, ejectment or otherwise, and remove and dispossess Tenant and all other persons and any and all property from the same, as if this Lease had not been made, and Tenant hereby waives the service of notice of intention to re-enter or to institute legal proceedings to that end.

 

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

 

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

 

Landlord agrees to use reasonable efforts to relet the Premises after Tenant 

 

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vacates the same in the event this Lease is terminated based upon an Event of Default by Tenant hereunder. The marketing of the Premises in a manner similar to the manner in which Landlord markets other premises within Landlord’s control within the Building shall be deemed to have satisfied Landlord’s obligation to use “reasonable efforts” hereunder. In no event shall Landlord be required to (i) solicit or entertain negotiations with any other prospective tenant for the Premises until Landlord obtains full and complete possession of the Premises (including, without limitation, the final and unappealable legal right to relet the Premises free of any claim of Tenant), (ii) relet the Premises before leasing other vacant space in the Building, or (iii) lease the Premises for a rental less than the current fair market rent then prevailing for similar office space in the Building.

 

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

 

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

 

(e)                                  In case of any Event of Default and re-entry, dispossession by summary proceedings or otherwise, Landlord may (i) re-let the Premises or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may at Landlord’s option be equal to or less than or exceed the period which would otherwise have constituted the balance of the Term of this Lease and may grant concessions, abatements or free rent to the extent that Landlord reasonably considers advisable or necessary to re-let the same and (ii) may make such alterations, repairs and decorations in the Premises as Landlord in its sole but reasonable judgment considers advisable or necessary for the purpose of reletting the Premises; and the making of such alterations, repairs and decorations shall not 

 

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operate or be construed to release Tenant from liability hereunder as aforesaid. Landlord shall in no event be liable in any way whatsoever for failure to re-let the Premises, or, in the event that the Premises are re-let, for failure to collect the rent under re-letting. Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event of Tenant being evicted or dispossessed, or in the event of Landlord obtaining possession of the Premises, by reason of the violation by Tenant of any of the covenants and conditions of this Lease.

 

(f)                                    The specified remedies to which Landlord may resort hereunder are not intended to be exclusive of any remedies or means of redress to which Landlord may at any time be entitled lawfully, and Landlord may invoke any remedy (including the remedy of specific performance) allowed at law or in equity as if specific remedies were not herein provided for. Further, nothing contained in this Lease shall limit or prejudice the right of Landlord to prove for and obtain in proceedings for bankruptcy or insolvency by reason of the termination of this Lease, an amount equal to the maximum allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, the damages are to be proved, whether or not the amount be greater, equal to, or less than the amount of the loss or damages referred to above.

 

7.2                                 Landlord’s Default

 

Landlord shall in no event be in default in the performance of any of Landlord’s obligations hereunder unless and until Landlord shall have failed to perform such obligations within thirty (30) days, after notice by Tenant to Landlord specifying wherein Landlord has failed to perform any such obligation, or, if such failure is of a nature that Landlord cannot reasonably remedy the same within such thirty (30) day period, Landlord shall fail to commence promptly to remedy the same within such thirty-day period and to prosecute such remedy to completion with diligence. The Tenant shall not assert any right to deduct the cost of repairs or any monetary claim against the Landlord from rent thereafter due and payable, but shall look solely to the Landlord for satisfaction of such claim.

 

ARTICLE VIII

 

Insurance and Indemnity

 

8.1                                 Tenant’s Indemnity

 

(a)                                  Indemnity. To the fullest extent permitted by law, Tenant waives any right to contribution against the Landlord Parties (as hereinafter defined) and agrees to indemnify and save harmless the Landlord Parties from and against all claims of whatever nature arising from or claimed to have arisen from (i) any act, omission or negligence of the Tenant Parties (as hereinafter defined); (ii) any accident, injury or damage whatsoever caused to any person, or to the property of any person, occurring in or about the Premises 

 

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from the earlier of (A) the date on which any Tenant Party first enters the Premises for any reason or (B) the Commencement Date, and thereafter throughout and until the end of the Lease Term, and after the end of the Lease Term for so long after the end of the Lease Term as Tenant or anyone acting by, through or under Tenant is in occupancy of the Premises or any portion thereof; (iii) any accident, injury or damage whatsoever occurring outside the Premises but within the Building, or on common areas within the Office Park, where such accident, injury or damage results, or is claimed to have resulted, from the negligence or willful misconduct on the part of any of the Tenant Parties; or (iv) any breach of this Lease by Tenant. Tenant shall pay such indemnified amounts as they are incurred by the Landlord Parties. This indemnification shall not be construed to deny or reduce any other rights or obligations of indemnity that any of the Landlord Parties may have under this Lease or the common law. Notwithstanding anything contained herein to the contrary, Tenant shall not be obligated to indemnify a Landlord Party for any claims to the extent that such Landlord Party’s damages in fact result from such Landlord Party negligence or willful misconduct.

 

(b)                                 Breach. In the event that Tenant breaches any of its indemnity obligations hereunder or under any other contractual or common law indemnity: (i) Tenant shall pay to the Landlord Parties all liabilities, loss, cost, or expense (including attorney’s fees) incurred as a result of said breach; and (ii) the Landlord Parties may deduct and offset from any amounts due to Tenant under this Lease any amounts owed by Tenant pursuant to this Section 8.1(b).

 

(c)                                  No limitation. The indemnification obligations under this Section 8.1 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for Tenant or any subtenant or other occupant of the Premises under workers’ compensation acts, disability benefit acts, or other employee benefit acts. Tenant waives any immunity from or limitation on its indemnity or contribution liability to the Landlord Parties based upon such acts.

 

(d)                                 Subtenants and other occupants. Tenant shall require its subtenants and other occupants of the Premises to provide similar indemnities to the Landlord Parties in a form acceptable to Landlord.

 

(e)                                  Survival. The terms of this Section 8.1 shall survive any termination or expiration of this Lease.

 

(f)                                    Costs. The foregoing indemnity and hold harmless agreement shall include indemnity for all costs, expenses and liabilities (including, without limitation, attorneys’ fees and disbursements) incurred by the Landlord Parties in connection with any such claim or any action or proceeding brought thereon, and the defense thereof. In addition, in the event that any action or proceeding shall be brought against one or more Landlord Parties by reason of any such claim, Tenant, upon request from the Landlord Party, shall resist and defend such action or proceeding on behalf of the Landlord Party by counsel appointed by Tenant’s insurer (if such claim is covered by insurance without reservation) or otherwise by counsel reasonably satisfactory to the Landlord Party. The Landlord 

 

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Parties shall not be bound by any compromise or settlement of any such claim, action or proceeding without the prior written consent of such Landlord Parties, which consent shall not be unreasonably withheld.

 

8.1.1                        Subject to the limitations in Section 9.3 and in Section 8.2 and Section 8.13 of this Article, and to the extent not resulting from any act, omission, fault, negligence or misconduct of Tenant or its contractors, licensees, invitees, agents, servants or employees, Landlord agrees to indemnify and save harmless Tenant from and against any claim by a third party arising from any injury to any person occurring in the Premises or in the Complex after the date that possession of the Premises is first delivered to Tenant and until the expiration or earlier termination of the Lease Term, to the extent such injury results from the negligence or willful misconduct of Landlord or Landlord Parties, or from any breach or default by Landlord in the performance or observance of its covenants or obligations under this Lease; provided, however, that in no event shall the aforesaid indemnity render Landlord responsible or liable for any loss or damage to fixtures, personal property or other property of Tenant, and Landlord shall in no event be liable for any indirect or consequential damages. Tenant shall provide notice of any such third party claim to Landlord as soon as practicable. Landlord shall have the right, but not the duty, to defend the claim. The provisions of this Section shall not be applicable to the holder of any mortgage now or hereafter on the Property or Building (whether or not such holder shall be a mortgagee in possession of or shall have exercised any rights under a conditional, collateral or other assignment of leases and/or rents respecting the Property or Building), except to the extent of liability insurance maintained by such holder.

 

8.2                                 Tenant’s Risk

 

Tenant agrees to use and occupy the Premises, and to use such other portions of the Building, the Site and the Office Park as Tenant is given the right to use by this Lease at Tenant’s own risk. The Landlord Parties shall not be liable to the Tenant Parties for any damage, injury, loss, compensation, or claim (including, but not limited to, claims for the interruption of or loss to a Tenant Party’s business) based on, arising out of or resulting from any cause whatsoever, including, but not limited to, repairs to any portion of the Premises, the Building, the Property or the Office Park, any fire, robbery, theft, mysterious disappearance, or any other crime or casualty, the actions of any other tenants of the Office Park or of any other person or persons, or any leakage in any part or portion of the Premises or the Building or the Property, or from water, rain or snow that may leak into, or flow from any part of the Premises or the Building or the Property, or from drains, pipes or plumbing fixtures in the Building or the Property. Any goods, property or personal effects stored or placed in or about the Premises shall be at the sole risk of the Tenant Party, and neither the Landlord Parties nor their insurers shall in any manner be held responsible therefor. The Landlord Parties shall not be responsible or liable to a Tenant Party, or to those claiming by, through or under a Tenant Party, for any loss or damage that may be occasioned by or through the acts or omissions of persons occupying adjoining premises or any part of the premises adjacent to or connecting with the Premises or any part of the Building or otherwise. The provisions of this section shall be applicable to the fullest extent permitted by law, and until the expiration or earlier termination of the Lease Term, and during such further period as Tenant may use or be in 

 

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occupancy of any part of the Premises or of the Building. Notwithstanding anything contained herein to the contrary, the provisions of this Section 8.2 shall not apply to the extent of Landlord’s negligence.

 

8.3                                 Tenant’s Commercial General Liability Insurance

 

Tenant agrees to maintain in full force on or before the earlier of (i) the date on which any Tenant Party first enters the Premises for any reason or (ii) the Commencement Date, and thereafter throughout and until the end of the Lease Term, and after the end of the Lease Term for so long as Tenant or anyone acting by, through or under Tenant is in occupancy of the Premises or any portion thereafter, a policy of commercial general liability insurance, on an occurrence basis, issued on a form at least as broad as Insurance Services Office (“ISO”) Commercial General Liability Coverage “occurrence” form CG 00 01 10 01 or another Commercial General Liability “occurrence” form providing equivalent coverage. Such insurance shall include broad form contractual liability coverage, specifically covering this Lease as an insured contract. The minimum limits of liability of such insurance shall be $5,000,000 per occurrence. In addition, in the event Tenant hosts a function in the Premises, Tenant agrees to obtain, and cause any persons or parties providing services for such function to obtain, the appropriate insurance coverages as determined by Landlord (including liquor liability coverage, if applicable) and provide Landlord with evidence of the same.

 

8.4                                 Tenant’s Property Insurance

 

Tenant shall maintain at all times during the Term of the Lease, and during such earlier time as Tenant may be performing work in or to the Premises or have property, fixtures, furniture, equipment, machinery, goods, supplies, wares or merchandise on the Premises, and containing thereafter so long as Tenant is in occupancy of any part of the Premises, business interruption insurance and insurance against loss or damage covered by the so-called “all risk” type insurance coverage with respect to Tenant’s property, fixtures, furniture, equipment, machinery, goods, supplies, wares and merchandise, and all alterations, improvements and other modifications made by or on behalf of the Tenant in the Premises (other than Landlord’s Work), and other property of Tenant located at the Premises, which are permitted to be removed by Tenant at the expiration or earlier termination of the Lease Term except to the extent paid for by Landlord (collectively “Tenant’s Property”). The business interruption insurance required by this Section 8.4 shall be in minimum amounts typically carried by prudent tenants engaged in similar operations, but in no event shall be in an amount less than the Annual Fixed Rent then in effect during any year during the Term, plus any Additional Rent due and payable for the immediately preceding year during the Term. The “all risk” insurance required by this section shall be in an amount at least equal to the full replacement cost of Tenant’s Property. In addition, during such time as Tenant is performing work in or to the Premises, Tenant, at Tenant’s expense, shall also maintain, or shall cause its contractor(s) to maintain, builder’s risk insurance for the full insurable value of such work. Landlord and such additional persons or entities as Landlord may reasonably request shall be named as loss payees, as their interests may appear, on the property insurance policy or policies required by this Lease with respect to Tenant improvements which are paid for 

 

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by Tenant and which Landlord is required to restore pursuant to the provisions of this Lease. In the event of loss or damage covered by the “all risk” insurance required by this Lease, the responsibilities for repairing or restoring the loss or damage shall be determined in accordance with Article VI. To the extent that Landlord is obligated to pay for the repair or restoration of the loss or damage covered by the policy, Landlord shall be paid the proceeds of the “all risk” insurance covering the loss or damage. To the extent Tenant is obligated to pay for the repair or restoration of the loss or damage, covered by the policy, Tenant shall be paid the proceeds of the “all risk” insurance covering the loss or damage. If both Landlord and Tenant are obligated to pay for the repair or restoration of the loss or damage covered by the policy, the insurance proceeds shall be paid to each of them in the pro rata proportion of their obligations to repair or restore the loss or damage. If the loss or damage is not repaired or restored (for example, if the Lease is terminated pursuant to Article VI), the insurance proceeds shall be paid to Landlord and Tenant in the pro rata proportion of their relative contributions to the cost of the leasehold improvements covered by the policy.

 

8.5                                 Tenant’s Other Insurance

 

Tenant agrees to maintain in full force on or before the earlier of (i) the date on which any Tenant Party first enters the Premises for any reason or (ii) the Commencement Date, and thereafter throughout the end of the Term, and after the end of the Term for so long after the end of the Term as Tenant or anyone acting by, through or under Tenant is in occupancy of the Premises or any portion thereafter, (1) comprehensive automobile liability insurance (covering any automobiles owned or operated by Tenant at the Site) issued on a form at least as broad as ISO Business Auto Coverage form CA 00 01 07 97 or other form providing equivalent coverage; (2) worker’s compensation insurance; and (3) employer’s liability insurance. Such automobile liability insurance shall be in an amount not less than One Million Dollars ($1,000,000) for each accident. Such worker’s compensation insurance shall carry minimum limits as defined by the law of the jurisdiction in which the Premises are located (as the same may be amended from time to time). Such employer’s liability insurance shall be in an amount not less than One Million Dollars ($1,000,000) for each accident, One Million Dollars ($1,000,000) disease-policy limit, and One Million Dollars ($1,000,000) disease-each employee.

 

8.6                                 Requirements for Tenant’s Insurance

 

All insurance required to be maintained by Tenant pursuant to this Lease shall be maintained with responsible companies that are admitted to do business, and are in good standing in the Commonwealth of Massachusetts and that have a rating of at least “A” and are within a financial size category of not less than “Class X” in the most current Best’s Key Rating Guide or such similar rating as may be reasonably selected by Landlord. All such insurance shall: (1) be in form and content acceptable to Landlord in its reasonable discretion; (2) be primary and noncontributory; and (3) contain an endorsement prohibiting cancellation, failure to renew, reduction of amount of insurance, or change in coverage without the insurer first giving Landlord thirty (30) days’ prior written notice (by certified or registered mail, return receipt requested, or by fax or email) of such proposed action. No such policy shall contain any deductible or self-insured 

 

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retention greater than $25,000 for liability insurance and $100,000 for property insurance. Such deductibles and self-insured retentions and any deductibles shall be deemed to be “insurance” for purposes of the waiver in Section 8.13 below. Landlord reserves the right from time to time to require Tenant to obtain higher minimum amounts of insurance based on such limits as are customarily carried with respect to similar properties in the area in which the Premises are located. The minimum amounts of insurance required by this Lease shall not be reduced by the payment of claims or for any other reason. In the event Tenant shall fail to obtain or maintain any insurance meeting the requirements of this Article, or to deliver such policies or certificates as required by this Article, Landlord may, at its option, on five (5) days’ notice to Tenant, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord within five (5) days after delivery to Tenant of bills therefor.

 

8.7                                 Additional Insureds

 

To the fullest extent permitted by law, the commercial general liability and auto insurance carried by Tenant pursuant to this Lease, and any additional liability insurance carried by Tenant pursuant to Section 8.3 of this Lease, shall name Landlord, Landlord’s managing agent, and such other persons as Landlord may reasonably request from time to time as additional insureds with respect to liability arising out of or related to this Lease or the operations of Tenant (collectively “Additional Insureds”). Such insurance shall provide primary coverage without contribution from any other insurance carried by or for the benefit of Landlord, Landlord’s managing agent, or other Additional Insureds. Such insurance shall also waive any right of subrogation against each Additional Insured.

 

8.8                                 Certificates of Insurance

 

On or before the earlier of (i) the date on which any Tenant Party first enters the Premises for any reason or (ii) the Commencement Date, Tenant shall furnish Landlord with certificates evidencing the insurance coverage required by this Lease, and renewal certificates shall be furnished to Landlord at least annually thereafter, at least ten (10) days prior to the renewal date of each policy for which a certificate was furnished (acceptable forms of such certificates as of the date hereof for liability and property insurance, respectively, are attached as Exhibit I, however, other forms may be acceptable). Failure by the Tenant to provide the certificates or letters required by this Section 8.8 shall not be deemed to be a waiver of the requirements in this Section 8.8. Upon request by Landlord, a true and complete copy of any insurance policy required by this Lease shall be delivered to Landlord within ten (10) days following Landlord’s request.

 

8.9                                 Subtenants and Other Occupants

 

Tenant shall require its subtenants and other occupants of the Premises to provide written documentation evidencing the obligation of such subtenant or other occupant to indemnify the Landlord Parties to the same extent that Tenant is required to indemnify the Landlord Parties pursuant to Section 8.1 above, and to maintain insurance that meets the requirements of this Article, and otherwise to comply with the requirements of this Article. Tenant shall require all such subtenants and occupants to supply certificates of

 

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insurance evidencing that the insurance requirements of this Article have been met and shall forward such certificates to Landlord on or before the earlier of (i) the date on which the subtenant or other occupant or any of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, servants, employees, principals, contractors, licensees, agents, invitees or representatives first enters the Premises or (ii) the commencement of the sublease. Tenant shall be responsible for identifying and remedying any deficiencies in such certificates or policy provisions.

 

8.10                           No Violation of Building Policies

 

Tenant shall not commit or permit any violation of the policies of fire, boiler, sprinkler, water damage or other insurance covering the Property and/or the fixtures, equipment and property therein carried by Landlord, or do or permit anything to be done, or keep or permit anything to be kept, in the Premises, which in case of any of the foregoing (i) would result in termination of any such policies, (ii) would adversely affect Landlord’s right of recovery under any of such policies, or (iii) would result in reputable and independent insurance companies refusing to insure the Property or the property of Landlord in amounts reasonably satisfactory to Landlord.

 

8.11                           Tenant to Pay Premium Increases

 

If, because of anything done, caused or permitted to be done, or omitted by Tenant (or its subtenant or other occupants of the Premises), the rates for liability, fire, boiler, sprinkler, water damage or other insurance on the Property and equipment of Landlord or any other tenant or subtenant in the Building shall be higher than they otherwise would be, Tenant shall reimburse Landlord and/or the other tenants and subtenants in the Building for the additional insurance premiums thereafter paid by Landlord or by any of the other tenants and subtenants in the Building which shall have been charged because of the aforesaid reasons, such reimbursement to be made from time to time on Landlord’s demand.

 

8.12                           Landlord’s Insurance

 

(a)           Required insurance. Landlord shall maintain insurance against loss or damage with respect to the Building on an “all risk” type insurance form, with customary exceptions, subject to such deductibles as Landlord may determine, in an amount equal to at least the replacement value of the Building. Landlord shall also maintain such insurance with respect to any improvements, alterations, and fixtures of Tenant located at the Premises to the extent paid for by Landlord. The cost of such insurance shall be treated as a part of Landlord’s Operating Expenses. Such insurance shall be maintained with an insurance company selected by Landlord. Payment for losses thereunder shall be made solely to Landlord.

 

(b)           Optional insurance. Landlord may maintain such additional insurance with respect to the Building and the Property, including, without limitation, earthquake insurance, terrorism insurance, flood insurance, liability insurance and/or rent insurance, as Landlord may in its sole discretion elect. Landlord may also maintain such other insurance as may from time to time be required by the holder of any mortgage on the 

 

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Building or Property. The cost of all such additional insurance shall also be part of the Landlord’s Operating Expenses.

 

(c)           Blanket and self-insurance. Any or all of Landlord’s insurance may be provided by blanket coverage maintained by Landlord or any affiliate of Landlord under its insurance program for its portfolio of properties, or by Landlord or any affiliate of Landlord under a program of self-insurance, and in such event Landlord’s Operating Expenses shall include the portion of the reasonable cost of blanket insurance or self-insurance that is allocated to the Building.

 

(d)           No obligation. Landlord shall not be obligated to insure, and shall not assume any liability of risk of loss for, Tenant’s Property, including any such property or work of Tenant’s subtenants or occupants, except to the extent caused solely by Landlord’s negligence or willful misconduct. Landlord will also have no obligation to carry insurance against, nor be responsible for, any loss suffered by Tenant, subtenants or other occupants due to interruption of Tenant’s or any subtenant’s or occupant’s business.

 

8.13                           Waiver of Subrogation

 

To the fullest extent permitted by law, the parties hereto waive and release any and all rights of recovery against the other, and agree not to seek to recover from the other or to make any claim against the other, and in the case of Landlord, against all “Tenant Parties” (hereinafter defined), and in the case of Tenant, against all “Landlord Parties” (hereinafter defined), for any loss or damage incurred by the waiving/releasing party to the extent such loss or damage is insured under any insurance policy required by this Lease or which would have been so insured had the party carried the insurance it was required to carry hereunder or to the extent of any greater amounts or types of insurance actually carried by such party. Tenant shall obtain from its subtenants and other occupants of the Premises a similar waiver and release of claims against any or all of Tenant or Landlord. In addition, the parties hereto (and in the case of Tenant, its subtenants and other occupants of the Premises) shall procure an appropriate clause in, or endorsement on, any insurance policy required by this Lease pursuant to which the insurance company waives subrogation. The insurance policies required by this Lease shall contain no provision that would invalidate or restrict the parties’ waiver and release of the rights of recovery in this section. The parties hereto covenant that no insurer shall hold any right of subrogation against the parties hereto by virtue of such insurance policy.

 

The term “Landlord Party” or “Landlord Parties” shall mean Landlord, any affiliate of Landlord, Landlord’s managing agents for the Building, each mortgagee (if any), each ground lessor (if any), and each of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, servants, employees, principals, contractors, licensees, agents or representatives. For the purposes of this Lease, the term “Tenant Party” or “Tenant Parties” shall mean Tenant, any affiliate of Tenant, any permitted subtenant or any other permitted occupant of the Premises, and each of their respective direct or indirect partners, officers, shareholders, directors, members, trustees, beneficiaries, servants, employees, principals, contractors, licensees, agents, invitees or representatives.

 

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8.14                           Tenant’s Work

 

During such times as Tenant is performing work or having work or services performed in or to the Premises, Tenant shall require its contractors, and their subcontractors of all tiers, to obtain and maintain commercial general liability, automobile, workers compensation, employer’s liability, builder’s risk, and equipment/property insurance in such amounts and on such terms as are customarily required of such contractors and subcontractors on similar projects. The amounts and terms of all such insurance are subject to Landlord’s written approval, which approval shall not be unreasonably withheld. The commercial general liability and auto insurance carried by Tenant’s contractors and their subcontractors of all tiers pursuant to this section shall name Landlord, Landlord’s managing agent, and such other persons as Landlord may reasonably request from time to time as additional insureds with respect to liability arising out of or related to their work or services (collectively “Additional Insureds”). Such insurance shall provide primary coverage without contribution from any other insurance carried by or for the benefit of Landlord, Landlord’s managing agent, or other Additional Insureds. Such insurance shall also waive any right of subrogation against each Additional Insured. Tenant shall obtain and submit to Landlord, prior to the earlier of (i) the entry onto the Premises by such contractors or subcontractors or (ii) commencement of the work or services, certificates of insurance evidencing compliance with the requirements of this section.

 

ARTICLE IX

 

Miscellaneous Provisions

 

9.1                                 Waiver

 

Failure on the part of Landlord or Tenant to complain of any action or non-action on the part of the other, no matter how long the same may continue, shall never be a waiver by Tenant or Landlord, respectively, of any of its rights hereunder. Further, no waiver at any time of any of the provisions hereof by Landlord or Tenant shall be construed as a waiver of any of the other provisions hereof, and a waiver at any time of any of the provisions hereof shall not be construed as a waiver at any subsequent time of the same provisions. The consent or approval of Landlord or Tenant to or of any action by the other requiring such consent or approval shall not be construed to waive or render unnecessary Landlord’s or Tenant’s consent or approval to or of subsequent similar act by the other.

 

No payment by Tenant, or acceptance by Landlord, of a lesser amount than shall be due from Tenant to Landlord shall be treated otherwise than as a payment on account. The acceptance by Landlord of a check for a lesser amount with an endorsement or statement thereon, or upon any letter accompanying such check, that such lesser amount is payment in full, shall be given no effect, and Landlord may accept such check without prejudice to any other rights or remedies which Landlord may have against Tenant.

 

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9.2                                 Cumulative Remedies

 

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

 

9.3                                 Quiet Enjoyment

 

This Lease is subject and subordinate to all matters of record.  Provided no Event of Default then exists, Tenant shall lawfully, peaceably and quietly have, hold, occupy and enjoy the Premises during the Term (exclusive of any period during which Tenant is holding over after the termination or expiration of this Lease without the consent of Landlord), without hindrance or ejection by any persons claiming by, through, or under Landlord or claiming to have title to the Premises superior to Tenant, subject, however, to the terms of this Lease; the foregoing covenant of quiet enjoyment is in lieu of any other covenant, express or implied; and it is understood and agreed that this covenant and any and all other covenants of Landlord contained in this Lease shall be binding upon Landlord and Landlord’s successors, including ground or master lessees, only with respect to breaches occurring during Landlord’s or Landlord’s successors’ respective ownership of Landlord’s interest hereunder, as the case may be.

 

Further, Tenant specifically agrees to look solely to Landlord’s then equity interest in the Office Park at the time owned, or in which Landlord holds an interest as ground lessee, and Landlord’s interest in the proceeds of any fire or casualty insurance policy, or any  liability insurance policy including, without limitation, any self-insurance (but in the case of liability insurance and self-insurance only to the extent of an unsatisfied loss event covered by Landlord’s indemnification obligation under Section 8.1.1 hereof), or condemnation award attributable thereto, for recovery of any judgment from Landlord; it being specifically agreed that neither Landlord (original or successor), nor any beneficiary of any trust of which any person holding Landlord’s interest is trustee, nor any member, manager, partner, director or stockholder, nor Landlord’s managing agent, shall ever be personally liable for any such judgment, or for the payment of any monetary obligation to Tenant. The provision contained in the foregoing sentence is not intended to, and shall not, limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or Landlord’s successors in interest, or any action not involving the personal liability of Landlord (original or successor), any successor trustee to the persons named herein as Landlord, or any beneficiary of any trust of which any person holding Landlord’s interest is trustee, or of any manager, member, partner, director or stockholder of Landlord or of Landlord’s managing agent to respond in monetary damages from Landlord’s assets other than Landlord’s equity interest aforesaid in the Office Park, but in no event shall Tenant have the right to terminate or cancel this Lease 

 

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or to withhold rent or to set-off any claim or damages against rent as a result of any default by Landlord or breach by Landlord of its covenants or any warranties or promises hereunder, except in the case of a wrongful eviction of Tenant from the Premises (constructive or actual) by Landlord continuing after notice to Landlord thereof and a reasonable opportunity for Landlord to cure the same. In the event that Landlord shall be determined to have acted unreasonably in withholding any consent or approval under this Lease, the sole recourse and remedy of Tenant in respect thereof shall be to specifically enforce Landlord’s obligation to grant such consent or approval, and in no event shall the Landlord be responsible for any damages of whatever nature in respect of its failure to give such consent or approval nor shall the same otherwise affect the obligations of Tenant under this Lease or act as any termination of this Lease.

 

In no event shall Landlord or Tenant ever be liable to the other party for any indirect or consequential damages suffered from whatever cause; provided that the foregoing shall not limit or alter any procedural right or remedy of either party under this Lease nor shall the same apply to the obligations of Tenant with respect to any hold over by Tenant for more than thirty (30) days after the expiration or earlier termination of this Lease.

 

9.4                                 Notice to Mortgagee and Ground Lessor

 

After receiving notice from any person, firm or other entity that it holds a mortgage which includes the Premises as part of the mortgaged premises, or that it is the ground lessor under a lease with Landlord, as ground lessee, which includes the Premises as a part of the demised premises, no notice from Tenant to Landlord shall be effective as to such holder or ground lessor unless and until such notice is given to such holder or ground lessor, and the curing of any of Landlord’s defaults by such holder or ground lessor within a reasonable time thereafter (including a reasonable time to obtain possession of the premises if the mortgagee or ground lessor elects to do so) shall be treated as performance by Landlord. For the purposes of this Section 9.4 or Section 9.14, the term “mortgage” includes a mortgage on a leasehold interest of Landlord (but not one on Tenant’s leasehold interest). If any mortgage is listed on Exhibit J then the same shall constitute notice from the holder of such mortgage for the purposes of this Section 9.4. Further no Annual Fixed Rent or Additional Rent may be paid by Tenant more than thirty (30) days in advance except with the prior written consent of all holder(s) of such mortgages and ground leases, and any such payment without such consent shall not be binding on such holder(s).

 

9.5                                 Assignment of Rents

 

With reference to any assignment by Landlord of Landlord’s interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment is made to the holder of a mortgage or ground lease on property which includes the Premises, Tenant agrees:

 

(a)                                  That the execution thereof by Landlord, and the acceptance thereof by the holder of such mortgage or the ground lessor, shall never be treated as an assumption by such holder or ground lessor of any of the obligations of 

 

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Landlord hereunder, unless such holder, or ground lessor, shall, by notice sent to Tenant, specifically otherwise elect; and

 

(b)                                 That, except as aforesaid, such holder or ground lessor shall be treated as having assumed Landlord’s obligations hereunder only upon foreclosure of such holder’s mortgage and the taking of possession of the Premises, or, in the case of a ground lessor, the assumption of Landlord’s position hereunder by such ground lessor.

 

In no event shall the acquisition of title to the Building and the land on which the same is located by a purchaser which, simultaneously therewith, leases the entire Building or such land back to the seller thereof be treated as an assumption by such purchaser-lessor, by operation of law or otherwise, of Landlord’s obligations hereunder, but Tenant shall look solely to such seller-lessee, and its successors from time to time in title, for performance of Landlord’s obligations hereunder subject to the provisions of Section 9.3 hereof. In any such event, this Lease shall be subject and subordinate to the lease to such purchaser provided that such purchaser agrees to recognize the right of Tenant to use and occupy the Premises upon the payment of rent and other charges payable by Tenant under this Lease and the performance by Tenant of Tenant’s obligations hereunder and provided that Tenant agrees to attorn to such purchaser. For all purposes, such seller-lessee, and its successors in title, shall be the landlord hereunder unless and until Landlord’s position shall have been assumed by such purchaser-lessor.

 

9.6                                 Surrender

 

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

 

9.7                                 Brokerage

 

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

 

(B)           Landlord warrants and represents that Landlord has not dealt with any broker in connection with the consummation of this Lease other than the Broker; and in the event any claim is made against the Tenant relative to dealings by Landlord with brokers other than the Broker, Landlord shall defend the claim against Tenant with counsel of Landlord’s selection first approved by Tenant (which approval will not be unreasonably 

 

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withheld) and save harmless and indemnify Tenant on account of loss, cost or damage which may arise by reason of such claim. Landlord agrees that it shall be solely responsible for the payment of brokerage commissions to the Broker for the Original Term of this Lease.

 

9.8                                 Invalidity of Particular Provisions

 

If any term or provision of this Lease, including but not limited to any waiver of contribution or claims, indemnity, obligation, or limitation of liability or of damages, or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

 

9.9                                 Provisions Binding, Etc.

 

The obligations of this Lease shall run with the land, and except as herein otherwise provided, the terms hereof shall be binding upon and shall inure to the benefit of the successors and assigns, respectively, of Landlord and Tenant and, if Tenant shall be an individual, upon and to his heirs, executors, administrators, successors and assigns. The reference contained to successors and assigns of Tenant is not intended to constitute a consent to subletting or assignment by Tenant.

 

9.10                           Recording; Confidentiality

 

Tenant agrees not to record the within Lease, but each party hereto agrees, on the request of the other, to execute a so-called Notice of Lease or short form lease in form recordable and complying with applicable law and reasonably satisfactory to both Landlord’s and Tenant’s attorneys. In no event shall such document set forth rent or other charges payable by Tenant under this Lease; and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease.

 

Notwithstanding that Tenant is a public company, Tenant agrees that this Lease and the terms contained herein will be treated as strictly confidential and except as required by law, including, without limitation, as required to satisfy filing requirements of a public company (or except with the written consent of Landlord) Tenant shall not disclose the same to any third party except for Tenant’s partners, lenders, accountants and attorneys who have been advised of the confidentiality provisions contained herein and agree to be bound by the same. In the event Tenant is required by law to provide this Lease or disclose any of its terms, Tenant shall give Landlord prompt notice of such requirement prior to making disclosure so that Landlord may seek an appropriate protective order; provided, however that the requirements set forth in this sentence shall not apply in connection with any disclosure to the extent required to satisfy filing requirements of a public company. If failing the entry of a protective order Tenant is compelled to make disclosure, Tenant shall only disclose portions of the Lease which Tenant is required to 

 

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disclose and will exercise reasonable efforts to obtain assurance that confidential treatment will be accorded to the information so disclosed.

 

9.11                       Notices

 

Whenever, by the terms of this Lease, notice shall or may be given either to Landlord or to Tenant, such notice shall be in writing (and no inference shall be drawn from the fact that certain provisions of this Lease require “written notice” where others simply require “notice”) and shall be sent by overnight commercial courier (which obtains a signature upon delivery) or by registered or certified mail postage or delivery charges prepaid, as the case may be:

 

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

 

If intended for Tenant, addressed to Tenant at the address set forth in Article I of this Lease except that from and after the Commencement Date the address of Tenant shall be the Premises (or to such other address or addresses as may from time to time hereafter be designated by Tenant by like notice) with a copy to Tenant, Attention: General Counsel, and a copy to Goodwin Procter LLP, Exchange Place, 53 State Street, Boston, MA 02109 Attention:  Eric M. Labbe, Esquire.

 

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

 

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

 

Any notice given by an attorney on behalf of Landlord or by Landlord’s managing agent shall be considered as given by Landlord and shall be fully effective.  Any notice given by an attorney on behalf of Tenant shall be considered as given by Tenant and shall be fully effective.

 

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

 

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9.12                           When Lease Becomes Binding

 

Employees or agents of Landlord have no authority to make or agree to make a lease or any other agreement or undertaking in connection herewith. The submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for, the Premises, and this document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant. All negotiations, considerations, representations and understandings between Landlord and Tenant are incorporated herein and may be modified or altered only by written agreement between Landlord and Tenant, and no act or omission of any employee or agent of Landlord or Tenant shall alter, change or modify any of the provisions hereof. Landlord and Tenant hereby represents and warrants to the other that all necessary action has been taken to enter this Lease and that the person signing this Lease on behalf of Landlord and Tenant has been duly authorized to do so.

 

9.13                           Section Headings

 

The titles of the Articles throughout this Lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Lease. Wherever in this Lease it is stated that any approval, consent, or the like shall not be unreasonably withheld, such statement shall be read as meaning that the same shall not be unreasonably withheld, delayed, or conditioned.

 

9.14                           Rights of Mortgagee

 

This Lease shall be subject and subordinate to any mortgage now or hereafter on the Site or the Building, or both, and to each advance made or hereafter to be made under any mortgage, and to all renewals, modifications, consolidations, replacements and extensions thereof and all substitutions therefor provided that the holder of such mortgage agrees to recognize the rights of Tenant under this Lease (including, without limitation, the right to use and occupy the Premises) upon the payment of rent and other charges payable by Tenant under this Lease and the performance by Tenant of Tenant’s obligations hereunder as provided in a commercially reasonable form of subordination, non-disturbance and attornment agreement provided to Tenant and executed and delivered by such mortgagee. In the event that any mortgagee or its respective successor in title shall succeed to the interest of Landlord, then, this Lease shall nevertheless continue in full force and effect and Tenant shall and does hereby agree to attorn to such mortgagee or successor and to recognize such mortgagee or successor as its landlord. If any holder of a mortgage which includes the Premises, executed and recorded prior to the date of this Lease, shall so elect, this Lease and the rights of Tenant hereunder, shall be superior in right to the rights of such holder, with the same force and effect as if this Lease had been executed, delivered and recorded, or a statutory notice hereof recorded, prior to the execution, delivery and recording of any such mortgage. The election of any such holder shall become effective upon either notice from such holder to Tenant in the same fashion as notices from Landlord to Tenant are to be given hereunder or by the recording in the appropriate registry or recorder’s office of an instrument in which such 

 

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holder subordinates its rights under such mortgage to this Lease.

 

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

 

9.15                       Status Reports and Financial Statements

 

(A)          Recognizing that either party may find it necessary to establish to third parties, such as accountants, banks, potential or existing mortgagees, potential purchasers or the like, the then current status of performance hereunder, each party, on the request of the other made from time to time, will promptly furnish to the other, or any existing or potential holder of any mortgage encumbering the Premises, the Building, the Site and/or the Property or any potential purchaser of the Premises, the Building, the Site and/or the Property (each an “Interested Party”), a statement of the status of any matter pertaining to this Lease, including, without limitation, acknowledgments that (or the extent to which) each party is in compliance with its obligations under the terms of this Lease.  Any such status statement delivered by Tenant pursuant to this Section 9.15(A) may be relied upon by any Interested Party.

 

(B)           For so long as Tenant is a publicly-traded entity and timely files its financial statements with the Securities and Exchange Commission under and with Forms 10Q and 10K, Tenant shall have no obligation to deliver financial statements to Landlord.  In the event that Tenant ceases to be a publicly-traded entity for reporting purposes, Tenant shall deliver to Landlord, or any Interested Party designated by Landlord, upon Landlord’s written request given not more than once in any 12-month period, Tenant’s most recent audited financial statements of Tenant, or if Tenant does not have its financials audited, Tenant shall provide financial statements certified by the appropriate accounting or finance officer of Tenant, including, but not limited to, a balance sheet, income statement and cash flow statements which financial statements shall include sufficient detail and information for Landlord to assess Tenant’s financial condition.  Such financial statements may, as requested by Landlord, include financial statements for the past three (3) years (if available), and any such status statement and/or financial statement delivered by Tenant pursuant to this Section 8.16(B) may be relied upon by any Interested Party.  Landlord and any Interested Party to whom Tenant directly provides such information shall keep any non-public information provided by Tenant pursuant to this Section 9.15(B) confidential, and shall not disclose the same other than (i) on a need to know basis to Landlord’s officers, employees and consultants (or to any of the Interested Parties), all of whom shall be instructed to keep such information confidential, or (ii) to the extent required by applicable law or by any administrative, governmental or judicial proceeding.

 

9.16                       Self-Help

 

If Tenant shall at any time default in the performance of any obligation under this Lease, after notice to Tenant thereof and expiration of any applicable cure period, Landlord shall have the right, but shall not be obligated, to enter upon the Premises and to perform such obligation notwithstanding the fact that no specific provision for such substituted

 

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performance by Landlord is made in this Lease with respect to such default. In performing such obligation, Landlord may make any payment of money or perform any other act. All sums so paid by Landlord (together with interest at the rate of two and one-half percentage points over the then prevailing prime rate in Boston as set by Bank of America, N.A., or its successor (but in no event greater than the maximum rate permitted by applicable law) and all costs and expenses in connection with the performance of any such act by Landlord, shall be deemed to be Additional Rent under this Lease and shall be payable to Landlord immediately on demand. Landlord may exercise the foregoing rights without waiving any other of its rights or releasing Tenant from any of its obligations under this Lease.

 

9.17                        Holding Over

 

Any holding over by Tenant after the expiration of the term of this Lease shall be treated as a tenancy at sufferance and shall be on the terms and conditions as set forth in this Lease, as far as applicable except that, for the first thirty (30) days of any such holdover Tenant shall pay as a use and occupancy charge an amount equal to the greater of (x) 150% of the Annual Fixed Rent and Additional Rent calculated (on a daily basis) at the highest rate payable under the terms of this Lease, or (y) the fair market rental value of the Premises; and thereafter, Tenant shall pay as a use and occupancy charge an amount equal to the greater of (x) 200% of the Annual Fixed Rent and Additional Rent calculated (on a daily basis) at the highest rate payable under the terms of this Lease, or (y) the fair market rental value of the Premises, terminating on the day on which Tenant vacates the Premises in accordance with the requirements of this Lease.  In addition, Tenant shall save Landlord, its agents and employees harmless and will exonerate, defend and indemnify Landlord, its agents and employees from and against any and all damages which Landlord may suffer on account of Tenant’s hold-over in the Premises after the expiration or prior termination of the term of this Lease; provided, however, that Tenant shall not be liable for indirect or consequential damages suffered or incurred by Landlord as a result of such hold-over for the first 30 days of such hold-over.  Nothing in the foregoing nor any other term or provision of this Lease shall be deemed to permit Tenant to retain possession of the Premises or hold over in the Premises after the expiration or earlier termination of the Lease Term. All property which remains in the Building or the Premises after the expiration or termination of this Lease shall be conclusively deemed to be abandoned and may either be retained by Landlord as its property or sold or otherwise disposed of in such manner as Landlord may see fit. If any part thereof shall be sold, then Landlord may receive the proceeds of such sale and apply the same, at its option against the expenses of the sale, the cost of moving and storage, any arrears of rent or other charges payable hereunder by Tenant to Landlord and any damages to which Landlord may be entitled under this Lease and at law and in equity.

 

9.18                        Extension Option

 

(A)          On the conditions (which conditions Landlord may waive by written notice to Tenant) that both at the time of exercise of the option to extend and as of the commencement of the Extended Term in question (i) there exists no Event of Default (defined in Section 7.1), (ii) this Lease is still in full force and effect, and (iii) Tenant has 

 

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neither assigned this Lease nor sublet more than thirty percent (30%) the Premises (except for an assignment or subletting permitted without Landlord’s consent under Section 5.6.4 hereof), Tenant shall have the right to extend the Term hereof upon all the same terms, conditions, covenants and agreements herein contained (except for the Annual Fixed Rent which shall be adjusted during the option period as hereinbelow set forth) for one (1) period of five (5) years as hereinafter set forth.  The option period is sometimes herein referred to as the “Extended Term.” Notwithstanding any implication to the contrary Landlord has no obligation to make any additional payment to Tenant in respect of any construction allowance or the like or to perform any work to the Premises as a result of the exercise by Tenant of such option.

 

(B)          If Tenant desires to exercise said option to extend the Term, then Tenant shall give notice (the “Exercise Notice”) to Landlord, not earlier than fifteen (15) months nor later than twelve (12) months prior to the expiration of the Term of this Lease exercising such option to extend.  Within ten (10) business days after Landlord’s receipt of the Exercise Notice, Landlord shall provide Landlord’s quotation to Tenant of a proposed annual rent for the Extended Term (“Landlord’s Rent Quotation”).  If at the expiration of thirty (30) days after the date when Landlord provides such quotation to Tenant (the “Negotiation Period”), Landlord and Tenant have not reached agreement on a determination of an annual rental for the Extended Term and executed a written instrument extending the Term of this Lease pursuant to such agreement, then Tenant shall have the right, for thirty (30) days following the expiration of the Negotiation Period, to make a request to Landlord for a broker determination (the “Broker Determination”) of the Prevailing Market Rent (as defined in Exhibit K) for the Extended Term, which Broker Determination shall be made in the manner set forth in Exhibit K.  If Tenant timely shall have requested the Broker Determination, then the Annual Fixed Rent for the Extended Term shall be the Prevailing Market Rent as determined by the Broker Determination.  If Tenant does not timely request the Broker Determination, then Annual Fixed Rent during the Extended Term shall be equal to Landlord’s Rent Quotation.

 

(C)          Upon the giving of the Exercise Notice by Tenant to Landlord exercising Tenant’s option to extend the Lease Term in accordance with the provisions of Section B above, then this Lease and the Lease Term hereof shall automatically be deemed extended for the Extended Term without the necessity for the execution of any additional documents, except that Landlord and Tenant agree to enter into an instrument in writing setting forth the Annual Fixed Rent for the Extended Term as determined in the relevant manner set forth in this Section 9.18; and in such event all references herein to the Lease Term or the term of this Lease shall be construed as referring to the Lease Term, as so extended, unless the context clearly otherwise requires, and except that there shall be no further option to extend the Lease Term.

 

9.19        Security Deposit

 

Tenant agrees that the Security Deposit shall be paid upon execution and delivery of this Lease, and that Landlord shall hold the same, throughout the term of this Lease (including any extension thereof), as security for the performance by Tenant of all 

 

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obligations on the part of Tenant to be kept and performed.  Landlord shall have the right from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or any part thereof, to Landlord’s damages arising from any Event of Default.  If Landlord so applies all or any portion of such deposit, Tenant shall within seven (7) days after notice from Landlord deliver cash to Landlord in an amount sufficient to restore such deposit to the full amount stated in Section 1.1. While Landlord holds such deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the deposit, or any part thereof not previously applied, may be turned over by Landlord to Landlord’s grantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the deposit in accordance with the terms of this Section 9.19, and the return thereof in accordance herewith.

 

Tenant shall have the right, upon not less than ten (10) days prior written notice to Landlord, to provide such security deposit in the form of an irrevocable, unconditional, negotiable letter of credit (the “Letter of Credit”). The Letter of Credit shall (i) be issued by and drawn on a bank reasonably approved by Landlord and at a minimum having a long term issuer credit rating from Standard and Poor’s Professional Rating Service of A or a comparable rating from Moody’s Professional Rating Service, (ii) be substantially in the form attached hereto as Exhibit G, (iii) permit one or more draws thereunder to be made accompanied only by certification by Landlord or Landlord’s managing agent that pursuant to the terms of this Lease, Landlord is entitled to draw upon such Letter of Credit, (iv) permit transfers at any time without charge, and (v) provide that any notices to Landlord be sent to the notice address provided for Landlord in this Lease. If the credit rating for the issuer of such Letter of Credit falls below the standard set forth in (i) above or if the financial condition of such issuer changes in any other material adverse way, Landlord shall have the right to require that Tenant provide a substitute letter of credit that complies in all respects with the requirements of this Section, and Tenant’s failure to provide the same within thirty (30) days following Landlord’s written demand therefor shall entitle Landlord to immediately draw upon the Letter of Credit. Any such Letter of Credit shall be for a term of two (2) years (or for one (1) year if the issuer thereof regularly and customarily only issues letters of credit for a maximum term of one (1) year) and shall in either case provide for automatic renewals through the date which is ninety (90) days subsequent to the scheduled expiration of this Lease (as the same may be extended) or if the issuer will not grant automatic renewals, the Letter of Credit shall be renewed by Tenant each year and each such renewal shall be delivered to and received by Landlord not later than sixty (60) days before the expiration of the then current Letter of Credit (herein called a “Renewal Presentation Date”). In the event of a failure to so deliver any such renewal Letter of Credit on or before the applicable Renewal Presentation Date, Landlord shall be entitled to present the then existing Letter of Credit for payment and to receive the proceeds thereof, which proceeds shall be held as Tenant’s security deposit, subject to the terms of this Section 9.19. Any failure or refusal to honor the Letter of Credit shall be at Tenant’s sole risk and shall not relieve Tenant of its obligation hereunder with regard to the security deposit. Upon the receipt by Landlord of a Letter of Credit meeting the requirements set forth herein, Landlord shall return to 

 

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Tenant any cash security deposit then being held by Landlord, and thereafter such Letter of Credit shall be held by Landlord in accordance with the terms and conditions of this Section 9.19 as security for Tenant’s obligations hereunder.

 

Landlord shall return $100,000.00 of the Security Deposit to Tenant so that the remainder of such Security Deposit shall be $300,000.00 (or if such deposit is in the form of a Letter of Credit, as provided below, Landlord shall either exchange the Letter of Credit for a Letter of Credit delivered by Tenant or accept an amendment to such Letter of Credit, in either case which reduces the amount secured by the Letter of Credit by $100,000.00 and otherwise in strict conformity with the requirements herein) on the second anniversary of the Commencement Date; provided that (i) no Event of Default has occurred under this Lease and remains uncured as of such second anniversary, and (ii) Landlord has not applied the Security Deposit, or any portion thereof, to Landlord’s damages arising from any Event of Default, whether or not Tenant has restored the amount so applied by Landlord.

 

If Tenant believes that it has satisfied all the conditions precedent to a reduction in the amount of the Security Deposit, then it shall request such reduction in writing to Landlord, which request shall certify to Landlord that all such conditions have been satisfied. If Landlord determines that all of the aforesaid conditions are met, the Security Deposit shall be so reduced in accordance with this Section 9.19. No Letter of Credit shall automatically reduce, but any reduction in the amount thereof shall require Landlord’s prior written notice to the issuer of the Letter of Credit of the reduced amount. Promptly after Landlord’s receipt of Tenant’s request for a reduction as described above, Landlord shall determine whether such a reduction is permitted in accordance with this Section 9.19, and if it is, Landlord shall notify the issuer of the Letter of Credit of the amount to which the Letter of Credit shall be reduced.

 

Tenant not then being in default and having performed all of its obligations under this Lease, including the payment of all Annual Fixed Rent, Landlord shall return the deposit, or so much thereof as shall not have theretofore been applied in accordance with the terms of this Section 9.19, to Tenant on the expiration or earlier termination of the term of this Lease (as the same may have been extended) and surrender possession of the Premises by Tenant to Landlord in the condition required in the Lease at such time.

 

Neither the holder of any mortgage nor the lessor in any ground lease on property which includes the Premises shall ever be responsible to Tenant for the return or application of any such deposit, whether or not it succeeds to the position of Landlord hereunder, unless such deposit shall have been received in hand by such holder or ground lessor.

 

9.20                        Late Payment

 

If Landlord shall not have received any payment or installment of Annual Fixed Rent or Additional Rent (the “Outstanding Amount”) on or before the date on which the same first becomes payable under this Lease (the “Due Date”), the amount of such payment or installment shall incur a late charge equal to the sum of: (a) five percent (5%) of the Outstanding Amount for administration and bookkeeping costs associated with the late 

 

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payment and (b) interest on the Outstanding Amount from the Due Date through and including the date such payment or installment is received by Landlord, at a rate equal to the lesser of (i) the rate announced by Bank of America, N.A. (or its successor) from time to time as its prime or base rate (or if such rate is no longer available, a comparable rate reasonably selected by Landlord), plus two percent (2%), or (ii) the maximum applicable legal rate, if any. Such interest shall be deemed Additional Rent and shall be paid by Tenant to Landlord upon demand.

 

Landlord agrees to waive the late charge due hereunder for the first late payment by Tenant under this Lease, provided that Landlord receives such payment from Tenant within five (5) business days after notice to Tenant of such nonpayment.

 

9.21                        Tenant’s Payments

 

Each and every payment and expenditure, other than Annual Fixed Rent, shall be deemed to be Additional Rent or additional rent hereunder, whether or not the provisions requiring payment of such amounts specifically so state, and shall be payable, unless otherwise provided in this Lease, within thirty (30) days after written demand by Landlord, and in the case of the non-payment of any such amount, Landlord shall have, in addition to all of its other rights and remedies, all the rights and remedies available to Landlord hereunder or by law in the case of non-payment of Annual Fixed Rent. Unless expressly otherwise provided in this Lease, the performance and observance by Tenant of all the terms, covenants and conditions of this Lease to be performed and observed by Tenant shall be at Tenant’s sole cost and expense. Except as otherwise provided in Section 2.6 in connection with Tenant’s exercise of its audit rights, if Tenant has not objected to any statement of Additional Rent which is rendered by Landlord to Tenant within one (1) year after Landlord has rendered the same to Tenant, then the same shall be deemed to be a final account between Landlord and Tenant not subject to any further dispute. In the event that Tenant shall seek Landlord’s consent or approval under this Lease, then Tenant shall reimburse Landlord, upon demand, as Additional Rent, for all reasonable out of pocket costs and expenses, including legal and architectural costs and expenses, incurred by Landlord in processing such request, whether or not such consent or approval shall be given. Notwithstanding anything in this Lease to the contrary, if Landlord or any affiliate of Landlord has elected to qualify as a real estate investment trust (“REIT”), any service required or permitted to be performed by Landlord pursuant to this Lease, the charge or cost of which may be treated as impermissible tenant service income under the laws governing a REIT, may be performed by a taxable REIT subsidiary that is affiliated with either Landlord or Landlord’s property manager, an independent contractor of Landlord or Landlord’s property manager (the “Service Provider”). If Tenant is subject to a charge under this Lease for any such service, then, at Landlord’s direction, Tenant will pay such charge either to Landlord for further payment to the Service Provider or directly to the Service Provider, and, in either case, (i) Landlord will credit such payment against Additional Rent due from Tenant under this Lease for such service, and (ii) such payment to the Service Provider will not relieve Landlord from any obligation under the Lease concerning the provisions of such service.

 

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9.22                        Waiver of Trial By Jury

 

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

 

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

 

9.23                        Governing Law

 

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

 

9.24                        Light and Air

 

Tenant agrees that no diminution of light, air or view by any structure (inside or outside the Building) which may hereafter be erected or modified (whether or not by Landlord) shall entitle Tenant to any reduction of rent hereunder, result in any liability of Landlord to Tenant, or in any other way affect this Lease.

 

9.25                        Name of Building

 

Tenant shall not use the name of the Building or Office Park for any purpose other than as the address of the business conducted by Tenant in the Premises without the written consent of Landlord. Landlord reserves the right to change the name of the Building and/or the Office Park at any time in its sole discretion by written notice to Tenant and Landlord shall not be liable to Tenant for any loss, cost or expense on account of any such change of name.

 

9.26                        Right of First Offer

 

Subject to the provisions of this Section 9.26, and subject to (i) any and all rights of tenants in the Office Park to lease the Available Space (as hereinafter defined) pursuant to the express expansion or extension provisions in their respective leases and (ii) Landlord’s right to renew or extend the lease of an existing tenant (whether or not they have renewal or extension options in their lease), if Landlord determines that at any time during this Lease any space on the third (3rd) floor south wing of the Building contiguous to the Premises (“Potential ROFO Space” and shown on Exhibit L attached hereto and incorporated herein by reference) becomes available for reletting (“Available Space”), 

 

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and provided that (i) no Event of Default has occurred and remains uncured under this Lease, (ii) Tenant has not assigned this Lease or sublet all or any portion of the Premises, except as permitted under Section 5.6.4, and (iii) this Lease is still in full force and effect, Landlord agrees not to enter into a lease or leases to lease the Available Space without delivering to Tenant a notice (“Landlord’s ROFO Notice”) containing the date, as reasonably determined by Landlord, on which Landlord anticipates that the Available Space in question shall be available for delivery to Tenant, a plan showing the Available Space (and indicating the rentable square footage thereof), the Annual Fixed Rent, Base Operating Expenses and Base Taxes for the Available Space in question, and any work allowance, free rent period or other material business terms upon which Landlord is willing to lease such Available Space.  If Tenant wishes to exercise Tenant’s right of first offer, Tenant shall have the right to do so by delivering notice to Landlord of Tenant’s desire to lease the entire space described in Landlord’s ROFO Notice (it being agreed that Tenant has no right to lease less than such entire space) on the terms provided herein (“Tenant’s Acceptance Notice”), provided Landlord receives Tenant’s Acceptance Notice not later than that date which is ten (10) days after the date of Landlord’s ROFO Notice, time being of the essence.  If Tenant shall deliver a timely Tenant’s Acceptance Notice, then this Lease shall automatically be deemed amended to incorporate the Available Space into the Premises on such terms and conditions, without the necessity for the execution of any additional documents; however, Landlord and Tenant agree within fifteen (15) days of Landlord’s receipt of Tenant’s Acceptance Notice (or fifteen (15) days from the Broker Determination of Annual Fixed Rent, if Tenant requests the same pursuant to the terms hereof) to execute and deliver an amendment to this Lease prepared by Landlord incorporating the Available Space into the Premises upon all of the same terms and conditions in this Lease, except that: (i) the Annual Fixed Rent, which shall be as set forth in Landlord’s ROFO Notice (or as determined by Broker Determination, if so requested by Tenant pursuant to the terms hereof); (ii) all other terms and conditions set forth in Landlord’s ROFO Notice shall be applicable to the Available Space; (iii) the lease term as to the Available Space shall be coterminous with the Term (as it may be extended pursuant to Section 9.18 of this Lease or as it may be earlier terminated under this Lease); and (iv) those provisions of this Lease which conflict with the specific terms set forth in Landlord’s ROFO Notice shall be not applicable to the Available Space.  If for any reason Tenant shall not so exercise such right within such period, time being of the essence in respect to such exercise, Landlord shall be free to lease such Available Space to a third party.

 

In the event Tenant desires to exercise its right of first offer, but Tenant disagrees with Landlord’s determination of the Annual Fixed Rent for the Available Space, Tenant shall provide Landlord with Tenant’s Acceptance Notice meeting the requirements set forth above within the time period specified above, but Tenant’s Acceptance Notice shall also request a Broker Determination of the Prevailing Market Rent (as defined in Exhibit K) for the Available Space, which Broker Determination shall be made in the manner set forth in Exhibit K.   In any event, Tenant’s delivery of Tenant’s Acceptance Notice shall be deemed to be the irrevocable exercise by Tenant of its right of first offer subject to and in accordance with the provisions of this Section 9.26.

 

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Notwithstanding anything contained in this Section 9.26 to the contrary, in no event shall Landlord be obligated to offer the Available Space in question for lease to Tenant, or to deliver a Landlord’s ROFO Notice to Tenant with respect thereto, nor shall Tenant have the right to lease the Available Space in question under the terms set forth herein or otherwise, or to receive a Landlord’s ROFO Notice with respect thereto, if Landlord determines that possession of the Available Space will not be available for delivery to Tenant until on or after that date which is twelve (12) months prior to the end of the original Term hereof, unless Tenant, having the right to do so, has theretofore properly exercised its right to extend the original Term of this Lease pursuant to the provisions of Section 9.18 above.

 

Landlord hereby confirms that Private Healthcare Systems is the only current tenant whose leases contain expansion rights with respect to all or a portion of the Potential ROFO Space.

 

(signatures on next page)

 

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

 

	
WITNESS:
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
Jason Fivek
    	
 
    	
BP BAY   COLONY LLC,
    
	
 
    	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
BP Bay   Colony Holdings LLC,
    
	
 
    	
 
    	
 
    	
its   manager
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Boston   Properties Limited
    
	
 
    	
 
    	
 
    	
 
    	
Partnership,   its manager
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
Boston   Properties, Inc.,
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
By:
    	
/s/   David C. Provost
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Name:
    	
David   C. Provost
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Title:
    	
SVP
    
								

 

 

	
 
    	
 
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
AMAG   Pharmaceuticals, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Scott B. Townsend
    	
 
    	
By:
    	
/s/   William K. Heiden
    
	
Name:
    	
Scott   B. Townsend
    	
 
    	
Name:
    	
William   K. Heiden
    
	
Title:
    	
Secretary   or Assistant Secretary
    	
 
    	
Title:
    	
President   or Vice President
    
	
 
    	
 
    	
 
    	
 
    	
Hereto   duly authorized
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Scott H. Holmes
    
	
 
    	
 
    	
 
    	
Name:
    	
Scott   H. Holmes
    
	
 
    	
 
    	
 
    	
Title:
    	
Treasurer   or Assistant Treasurer
    
	
 
    	
 
    	
 
    	
 
    	
Hereto   duly authorized
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(CORPORATE SEAL)
    

 

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EXHIBIT A

 

DESCRIPTION OF OFFICE PARK

 

Parcel I:

 

That certain parcel of land situate in Waltham in the County of Middlesex, Commonwealth of Massachusetts, described as follows:

 

Northeasterly by Winter Street, eight hundred sixty-six and 87/100 feet;

 

Easterly by land now or formerly of City of Cambridge, four hundred forty-two and 93/100 feet;

 

Southwesterly by land now or formerly of Waltham Resources Corp., ten hundred and fifty feet; and

 

Northerly, by three lines measuring together, four hundred fourteen and 19/100 feet,

 

Northwesterly, by three lines measuring together, seven hundred forty-three and 28/100 feet,

 

Southwesterly, being a curving line, three hundred sixty-four and 63/100 feet,

 

Northwesterly, one hundred forty and 15/100 feet,

 

Northeasterly, ninety-two and 37/100 feet,

 

Northwesterly, twenty feet,

 

Northeasterly, three hundred and eighty-three feet, and

 

Northwesterly, twenty feet, all by Lot 6 as shown on plan hereinafter mentioned.

 

Said parcel is shown as Lot 5, Sheet 4, on said plan. (Plan No. 41218C).

 

All of said boundaries are determined by the Land Court to be located as shown on a subdivision plan, as approved by the Land Court, filed in the Land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 1051, Page 79, with Certificate 184229.

 

Parcel II:

 

That certain parcel of land situate in Waltham in the County of Middlesex, Commonwealth of Massachusetts, described as follows:

 

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Northeasterly, by Winter Street, four hundred and one feet,

 

Southeasterly, twenty feet,

 

Southwesterly, three hundred and eighty-three feet,

 

Southeasterly, twenty feet,

 

Southwesterly, ninety-two and 37/100 feet,

 

Southeasterly, one hundred forty and 19/100 feet,

 

Northeasterly, being a curving line, three hundred sixty-four and 63/100 feet,

 

Southeasterly, by three lines measuring together, seven hundred forty-three and 28/100 feet, and

 

Southerly, by three lines measuring together, four hundred fourteen and 19/100 feet, all by Lot 5 as shown on plan hereinafter mentioned;

 

Southwesterly by land now or formerly of Waltham Resources Corp., four hundred eighty-nine and 18/100 feet,

 

Northerly, four hundred twelve and 10/100 feet, and

 

Northwesterly, three hundred twenty-six and 44/100 feet, by Lot 7 on said plan; and

 

Northeasterly, thirteen and 10/100 feet,

 

Northwesterly, three hundred seventy-nine and 63/100 feet,

 

Northwesterly, again, four hundred forty-seven and 33/100 feet,

 

Northeasterly, two hundred five and 91/100 feet, and

 

Northwesterly, twenty feet, all by Lot 8 on said plan.

 

Said parcel is shown as Lot 6, Sheet 3, on said plan, (Plan No. 41218C).

 

All of said boundaries are determined by the Land Court to be located as shown on a subdivision plan, as approved by the Land Court, filed in the Land Registration Office, a copy of which is filed in the Registry of Deeds for the South Registry District of Middlesex County in Registration Book 1051, Page 79, with Certificate 184229.

 

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Parcel III:

 

Those certain parcels of land situate in Waltham in the County of Middlesex, Commonwealth of Massachusetts, being shown as Lots 10 and 11 on a plan entitled “Land Court Plan of Land in Waltham, Mass., Prepared for: London & Leeds Development Corp., scale: 1”-80’, dated May 2, 1995, prepared by Schofield Brothers of New England, Inc., 1071 Worcester Road, Framingham, Mass. 01701, filed in the Land Registration Office as Land Court Plan No. 41218E.

 

Parcel IV (Appurtenant Rights):

 

TOGETHER WITH the rights, easements, benefits and appurtenances in the following instruments:

 

A.                                    Declaration of Easement dated April 30, 1984 and filed with the Middlesex South Registry District of the Land Court as Document Number 661086.

 

B.                                    Declaration of Restrictions dated October 20, 1983 and recorded with the Middlesex South Registry of Deeds at Book 15274, Page 590.

 

C.                                    Grant of Utility Easements dated October 20, 1983 and recorded with the Middlesex South Registry of Deeds at Book 15274, Page 577 and filed with the Middlesex South Registry District of the Land Court as Document Number 649824.

 

D.                                    License Agreement dated June 8, 1984 and recorded with the Middlesex South Registry of Deeds at Book 15651, Page 171.

 

E.                                     Declaration of Easements and Covenants dated October 30, 1986 and filed with the Land Court as Document number 726257; as amended by First Amendment of Declaration of Easements and Covenants dated December 15, 1997 and filed with the Land Court as Document Number 1049953.

 

F.                                      Grant of Drainage Easements dated October 20, 1983 and recorded with the Registry of Deeds at Book 15274, Page 597.

 

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EXHIBIT B-1

 

WORK AGREEMENT

 

1.1                               Substantial Completion

 

(A)                               Plans and Construction Process.

 

(1)         Landlord’s Work.  Attached hereto as Exhibit B-2 are a floor plan of the Premises approved by Landlord and Tenant entitled “Fit Plan June 5, 2013 AMAG Pharmaceuticals” (“Floor Plan”) and a Turn-Key Matrix entitled “AMAG Pharmaceuticals 1100 Winter Street, Waltham, MA  Delineation of Turnkey Work vs. Tenant Work” dated June 6, 2013 (“Turn-Key Matrix”). Landlord shall promptly prepare and deliver to Tenant for review working drawings based on the Floor Plan and Turn-Key Matrix (“Proposed Plans”).  Tenant shall either approve the Proposed Plans or deliver any requested changes to the Proposed Plans to Landlord not later than three (3) business days following Tenant’s receipt of the Proposed Plans. Any changes or items of work requested by Tenant and not shown on the Floor Plan or referenced in Turn-Key Matrix shall be deemed to be Change Proposal(s) (as defined below) and shall be subject to the terms and provisions of subsection (2) below.  If for any reason Landlord does not receive Tenant’s requested changes to the Proposed Plans within such 3-business day period, each day thereafter that Landlord does not receive Tenant’s approval of the Proposed Plans or Tenant’s requested changes thereto shall constitute one day of Tenant Delay.  To the extent Landlord approves Tenant’s requested changes (such approval by Landlord not to be unreasonably withheld; however, Landlord’s determination of matters relating to structural matters and aesthetic issues relating to alterations or changes which are visible outside the Premises shall be in Landlord’s sole discretion), Landlord shall prepare and deliver a Landlord’s Change Order Response (as defined in subsection (2) below) in accordance with the provisions of subsection (2) below and Tenant shall either approve or disapprove the Landlord’s Change Order Response not later than three (3) business days following Tenant’s receipt of the same. If for any reason Landlord does not receive Tenant’s approval or disapproval of the Landlord’s Change Order Request within such 3-business day period, each day thereafter that Landlord does not receive Tenant’s approval or disapproval of the Landlord’s Change Order Request shall constitute one day of Tenant Delay.  If Tenant approves Landlord’s Change Order Response, Landlord shall revise the Proposed Plans accordingly and resubmit the same to Tenant for approval, which approval shall not be unreasonably withheld, conditioned or delayed and given or withheld not later than three (3) business days following Tenant’s receipt of the revised Proposed Plans. If for any reason Landlord does not receive such approval or disapproval of the revised Proposed Plans shall constitute one day of Tenant Delay. Such process shall be followed until the Proposed Plans shall have been approved by Landlord and Tenant.  The Proposed Plans, so approved by Landlord and Tenant, shall

 

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be referred to herein as the “Plans” and deemed incorporated herein by reference.

 

Landlord shall perform the work shown on the Plans (“Landlord’s Work”); provided, however, that Landlord shall have no responsibility for the installation or connection of Tenant’s computer, telephone, other communication equipment, systems or wiring. Subject to Force Majeure and Tenant Delays, Landlord shall diligently perform Landlord’s Work in a good and workmanlike manner in compliance with the final approved Plans and all applicable Legal Requirements, at Landlord’s sole cost and expense, except for Tenant Plan Excess Costs.

 

(2)                                 Change Orders.  Tenant shall have the right, in accordance herewith, to submit for Landlord’s approval change proposals with respect to items of work not shown on the Floor Plan or referenced in the Turnkey Matrix (each, a “Change Proposal”). Landlord agrees to respond to any such Change Proposal within such time as is reasonably necessary (taking into consideration the information contained in such Change Proposal) after the submission thereof by Tenant, advising Tenant of any incremental anticipated increase in costs associated with such Change Proposal, taking into account any savings accruing as a result of such Change Proposal, which increased costs shall include a construction management fee equal to three (3%) percent of the Change Proposal (“Change Order Costs”), as well as an estimate of any delay which would likely result in the completion of the Landlord’s Work if a Change Proposal is made pursuant thereto (“Landlord’s Change Order Response”). Tenant shall have the right to then approve or withdraw such Change Proposal within three (3) business days after receipt of Landlord’s Change Order Response. If Tenant fails to respond to Landlord’s Change Order Response within such three (3) business day period, each day of such delay shall constitute one day of Tenant Delay.  If Tenant approves Landlord’s Change Order Response, then such Change Proposal shall be deemed a “Change Order” hereunder and if the Change Order is made, then the Change Order Costs associated with the Change Order shall be deemed additions to the Tenant Plan Excess Costs and shall be paid in the same manner as Tenant Plan Excess Costs are paid as set forth in Section 1.5 of this Work Agreement.

 

(3)                                 Tenant and Landlord Responses to Requests for Information and Approvals. Except to the extent that another time period is expressly herein set forth, Tenant shall respond to any request from Landlord, Landlord’s architect, Landlord’s contractor and/or Landlord’s Construction Representative for approvals or information in connection with Landlord’s Work, within three (3) business days of Tenant’s receipt of such request. In addition, Tenant shall, within three (3) business days after receipt thereof from Landlord, execute and deliver to Landlord any affidavits and documentation required in order to obtain all permits and

 

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approvals necessary for Landlord to commence and complete Landlord’s Work on a timely basis (“Permit Documentation”). Landlord shall respond to any request from Tenant for information in connection with Landlord’s Work within three (3) business days of Landlord’s receipt of such request.

 

(4)                                 Time of the Essence. Time is of the essence in connection with Landlord’s and Tenant’s obligations under this Exhibit B-1.

 

(B)                               Substantial Completion; Tenant Delay.

 

(1)                                 Landlord’s Obligations. Subject to delays due to Tenant Delays (as hereinafter defined) and delays due to Force Majeure, as defined in Section 6.1 of the Lease, Landlord shall use reasonable speed and diligence to have the Landlord’s Work Substantially Completed on or before the Estimated Commencement Date, but Tenant shall have no claim against Landlord for failure so to complete construction of Landlord’s Work in the Premises, except for (i) the right to receive Late Delivery Rent Abatement (as hereinafter defined), and (ii) the right to terminate the Lease, without further liability to either party, in accordance with the provisions hereinafter specified in this Work Agreement.

 

(2)                                 Definition of Substantial Completion. The Premises shall be treated as having been “Substantially Completed” (and ready for occupancy for the purposes of Section 2.4 of the Lease) on the later of:

 

(a)                                 The date on which Landlord’s Work, together with common facilities for access and services to the Premises, has been completed (or would have been completed except for Tenant Delays) except for items of work and adjustment of equipment and fixtures which can be completed after occupancy has been taken without causing substantial interference with Tenant’s use of the Premises (i.e. so-called “punch list” items), or

 

(b)                                 The date when permission has been obtained from the applicable governmental authority, to the extent required by law, for occupancy by Tenant of the Premises for the Permitted Use, unless the failure to obtain such permission is due to a Tenant Delay.

 

In the event of any dispute as to the date on which Landlord’s Work has been completed, the reasonable determination of Landlord’s architect as to such date shall be deemed conclusive and binding on both Landlord and Tenant.

 

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(3)                                 Incomplete Work. Landlord shall complete as soon as conditions practically permit any incomplete items of Landlord’s Work, and Tenant shall cooperate with Landlord in providing access as may be required to complete such work in a normal manner.

 

(4)                                 Early Access by Tenant. Landlord shall permit Tenant access for installing Tenant’s trade fixtures in portions of the Premises fifteen (15) days prior to the anticipated date of Substantial Completion. Any such access by Tenant shall be (i) on the condition that Tenant and its agents, employees and contractors do not materially interference with remaining Landlord’s Work or with the maintenance of harmonious labor relations, (ii) upon all of the terms and conditions of the Lease (other than the payment of Annual Fixed Rent and Additional Rent) and (iii) at Tenant’s sole risk; and Landlord shall not be responsible for any injury to persons or damage to property resulting from such early access by Tenant.

 

(5)                                 Prohibition on Access by Tenant Prior to Actual Substantial Completion. If, prior to the date that the Premises are in fact actually Substantially Complete, the Premises are deemed to be Substantially Complete as a result of  Tenant Delays (as defined below) (i.e. and the Commencement Date has therefore occurred), Tenant shall not (except with Landlord’s consent) be entitled to take possession of the Premises for the Permitted Use until the Premises are in fact actually Substantially Complete.

 

(C)                               Tenant Delay.

 

(1)                                 A “Tenant Delay” shall be defined as the following:

 

(a)                                 Tenant’s failure timely to respond to any request from Landlord, Landlord’s architect, Landlord’s contractor and/or Landlord’s Construction Representative or to timely provide all required Permit Documentation to Landlord within the applicable time periods set forth in this Work Agreement;

 

(b)                                 Tenant’s failure to pay the Tenant Plan Excess Costs in accordance with Section 1.5 hereinbelow;

 

(c)                                  Any delay due to items of work set forth in a Tenant Change Proposal for which there is long lead time in obtaining the materials therefor or which are specially or specifically manufactured, produced or milled for the work in or to the Premises and require additional time for receipt or installation as provided in Landlord’s Change Order Response;

 

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(d)                                 Any delay due to Change Orders requested by Tenant;

 

(e)                                  Any other delays caused by Tenant, Tenant’s contractors, architects, engineers, or anyone else engaged by Tenant in connection with the preparation of the Premises for Tenant’s occupancy, including, without limitation, utility companies and other entities furnishing communications, data processing or other service, equipment, or furniture which continues for more than two (2) business days after notice from Landlord; or

 

(f)                                   Any period deemed to constitute a Tenant Delay pursuant to the provisions of this Section 1.1.

 

(2)                                 Tenant Obligations with Respect to Tenant Delays.

 

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

 

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

 

(c)                                  Any amounts due from Tenant to Landlord under this Section 1.1(C)(2) shall be due and payable within thirty (30) days of billing therefore (except that amounts due in connection with Change Orders shall be paid as provided in Section 1.5), and shall be considered to be Additional Rent. Nothing contained in this Section 1.1(C)(2) shall limit or qualify or prejudice any other covenants, agreements, terms, provisions and conditions contained in the Lease.

 

1.2                               Late Delivery Penalties and Outside Completion Date

 

If Landlord’s Work is not Substantially Complete (or deemed Substantially Complete due to Tenant Delays) on or before the Late Delivery Rent Abatement Commencement Date as defined in Section 1.1 of the Lease (which date shall be extended automatically for such periods of time as Landlord is prevented from proceeding with or completing the same by reason of  Force Majeure as defined in Section 6.1 of the Lease (provided,

 

5

 

however, that in no event shall such date be extended for more than 120 days due to Force Majeure, and provided further that Landlord shall notify Tenant (Attention: Scott Holmes) and such other parties as are entitled to notice pursuant to the provisions of Section 9.11 of the Lease of any such Force Majeure event within three (3) business days after Landlord has actual knowledge of the same) or any Tenant Delay, without limiting Landlord’s other rights on account thereof), the Annual Fixed Rent shall be abated by the amount of $5,653.69 for each day in the period beginning on the Late Delivery Rent Abatement Commencement Date (as so extended) and ending on the date of Substantial Completion of Landlord’s Work (“Late Delivery Rent Abatement”); provided, however that Tenant shall be entitled to receive the Late Delivery Rent Abatement only if and to the extent Tenant confirms to Landlord’s reasonable satisfaction that Tenant has paid a corresponding amount to  Shire Human Genetic Therapies, Inc. (“Shire”) pursuant to the terms of that certain Assignment and Assumption of Lease dated of even date with this Lease by and between Tenant, as assignor, and Shire, as assignee.

 

In addition, if Landlord Landlord’s Work is not Substantially Complete (or deemed Substantially Complete due to Tenant Delays) on or before the Outside Completion Date as defined in Section 1.1 of the Lease (which date shall be extended automatically for such periods of time as Landlord is prevented from proceeding with or completing the same by reason of  Force Majeure (provided, however, that in no event shall such date be extended for more than 120 days due to Force Majeure, and provided further that Landlord shall notify Tenant (Attention: Scott Holmes) and such other parties as are entitled to notice pursuant to the provisions of Section 9.11 of the Lease of any such Force Majeure event within three (3) business days after Landlord has actual knowledge of the same) or any Tenant Delay, without limiting Landlord’s other rights on account thereof), Tenant shall have the right to terminate the Lease by giving notice to Landlord of Tenant’s desire to do so before Substantial Completion and within the time period from the Outside Completion Date (as so extended) until the date which is thirty (30) days subsequent to the Outside Completion Date (as so extended); and, upon the giving of such notice, the term of the Lease shall cease and come to an end without further liability or obligation on the part of either party unless Landlord Substantially Completes Landlord’s Work on or prior to the date Landlord receives such notice.  Each day of Tenant Delay shall be deemed conclusively to cause an equivalent day of delay by Landlord in Substantially Completing Landlord’s Work pursuant to Section 1.1 of this Work Agreement, and thereby automatically extend for each such equivalent day of delay the date of the Outside Completion Date.

 

The foregoing Late Delivery Rent Abatement and right of termination shall be Tenant’s sole and exclusive remedies at law or in equity or otherwise for Landlord’s failure to Substantially Complete Landlord’s Work within the time periods set forth above.

 

1.3                               Quality and Performance of Work

 

All construction work required or permitted by the Lease shall be done in a good and workmanlike manner and in compliance with all applicable laws, ordinances, rules, regulations, statutes, by-laws, court decisions, and orders and requirements of all public authorities (“Legal Requirements”) and all Insurance Requirements (as defined in

 

6

 

Section 5.12 of the Lease). All of Tenant’s work shall be coordinated with any work being performed by or for Landlord and in such manner as to maintain harmonious labor relations. Each party may inspect the work of the other at reasonable times and shall promptly give notice of observed defects. Each party authorizes the other to rely in connection with design and construction upon approval and other actions on the party’s behalf by any Construction Representative of the party named in Section 1.1 of the Lease or any person hereafter designated in substitution or addition by notice to the party relying.

 

Except to the extent to which Tenant shall have given Landlord notice of any defects or any errors or omissions in Landlord’s Work (i) not later than the end of the eleventh (11th) full calendar month next beginning after the Commencement Date, Tenant shall be deemed conclusively to have approved Landlord’s Work and shall have no claim that Landlord has failed to perform any of Landlord’s Work.  Landlord agrees to correct or repair at its expense items which are then incomplete or do not conform to the requirements for Landlord’s Work and as to which, in either case, Tenant shall have given notice to Landlord, as aforesaid.

 

1.4                               Intentionally Omitted

 

1.5                               Tenant Plan Excess Costs

 

Notwithstanding anything contained in this Work Agreement to the contrary, it is understood and agreed that Tenant shall be fully responsible for the costs of any items of work not shown on Exhibit B-2 attached to the Lease (unless such items are shown as a “Landlord Cost” on Exhibit B-2 (by virtue of an “X” being noted in the Landlord Cost column) and the costs of any items of work shown as a “Tenant Cost” on Exhibit B-2 (by virtue of an “X” being noted in the Tenant Cost column) (the “Tenant Plan Excess Costs”).

 

To the extent that there are Tenant Plan Excess Costs, Tenant shall pay Landlord, as Additional Rent, 50% of the Tenant Plan Excess Costs prior to the commencement of the Landlord’s Work, and the balance of the Tenant Plan Excess Costs shall be paid to Landlord, as Additional Rent, within thirty (30) days of billing therefore, from time to time during the performance of the Landlord’s Work, in the proportion that such balance of the Tenant Plan Excess Costs bears to the total cost of the Landlord’s Work; provided, however, that in the event that the Tenant Plan Excess Costs exceed $100,000.00 (the “Maximum Amount”), then Tenant shall pay to Landlord, as Additional Rent, at the time that Tenant approves any Change Order that causes the Tenant Plan Excess Costs to exceed the Maximum Amount, all such Tenant Plan Excess Costs in excess of the Maximum Amount, provided, however, that if the Tenant Plan Excess Costs exceed the Maximum Amount as a result of a Change Order, then Tenant shall pay to Landlord, as Additional Rent, at the time Tenant approves such Change Order in accordance with Section 1.1(A)(2), all such Tenant Plan Excess Costs in excess of the Maximum Amount.

 

7

 

EXHIBIT B-2

 

Floor Plan

 

[see attached]

 

8

 

 

9

 

Turnkey Matrix

 

[see attached]

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT C

 

LANDLORD SERVICES

 

I.                                        CLEANING

 

Cleaning and janitorial services shall be provided as needed Monday through Friday, exclusive of holidays observed by the cleaning company and Saturdays and Sundays.

 

A.                                    OFFICE AREAS

 

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

 

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

 

2.                                      Dusting of horizontal surfaces within normal reach (tenant equipment to remain in place).

 

3.                                      High dusting and dusting of vertical blinds to be rendered as needed.

 

B.                                    LAVATORIES

 

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

 

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

 

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

 

3.                                      High dusting to be rendered as needed.

 

C.                                    MAIN LOBBIES, ELEVATORS, STAIRWELLS AND COMMON CORRIDORS

 

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

 

1.                                      Trash removal, vacuuming, dusting and damp mopping of resilient floors and cleaning and sanitizing of water fountains.

 

2

 

2.                                      High dusting to be rendered as needed.

 

D.                                    WINDOW CLEANING

 

All exterior windows shall be washed on the inside and outside surfaces at frequency necessary to maintain a first class appearance.

 

II.                                   HVAC

 

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

 

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

 

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

 

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

 

B.                                    Landlord shall provide heating, ventilating and air conditioning as normal seasonal changes may require during the hours of 8:00 a.m. to 6:00 p.m. Monday through Friday (legal holidays in all cases excepted).

 

If Tenant shall require air conditioning (during the air conditioning season) or heating or ventilating during any other time period, Landlord shall use landlord’s best efforts to furnish such services for the area or areas specified by written request of Tenant delivered to the Building Superintendent or the Landlord before 3:00 p.m. of the business day preceding the extra usage. Landlord shall charge Tenant for such extra-hours usage at reasonable rates customary for first-class office buildings in the Boston Suburban market, and Tenant shall pay Landlord, as Additional Rent, upon receipt of billing therefor.

 

3

 

III.                              ELECTRICAL SERVICES

 

A.                                    Landlord shall provide electric power for a combined load of 3.0 watts per square foot of useable area for lighting and for office machines through standard receptacles for the typical office space.

 

B.                                    In the event that Tenant has special equipment (such as computers and reproduction equipment) that requires either 3-phase electric power or any voltage other than 120 volts, or for any other usage in excess of 3.0 watts per square foot, Landlord may at its option require the installation of separate metering (Tenant being solely responsible for the costs of any such separate meter and the installation thereof) and direct billing to Tenant for the electric power required for any such special equipment.

 

C.                                    Landlord will furnish and install, at Tenant’s expense, all replacement lighting tubes, lamps and ballasts required by Tenant. Landlord will clean lighting fixtures on a regularly scheduled basis at Tenant’s expense.

 

IV.                               ELEVATORS

 

Provide passenger elevator service.

 

V.                                    WATER

 

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

 

VI.                               CARD ACCESS SYSTEM

 

Landlord will provide a card access system at one entry door of the building.

 

4

 

EXHIBIT D

 

FLOOR PLAN

 

1

 

 

 

EXHIBIT E

 

DECLARATION AFFIXING THE COMMENCEMENT DATE OF LEASE

 

THIS AGREEMENT made this           day of                                         , 200      , by and between [LANDLORD] (hereinafter “Landlord”) and [TENANT] (hereinafter “Tenant”).

 

W I T N E S S E T H T H A T:

 

1.                                      This Agreement is made pursuant to Section [2.4] of that certain Lease dated [date], between Landlord and Tenant (the “Lease”).

 

2.                                      It is hereby stipulated that the Lease Term commenced on [commencement date], (being the “Commencement Date” under the Lease), and shall end and expire on [expiration date], unless sooner terminated or extended, as provided for in the Lease.

 

WITNESS the execution hereof under seal by persons hereunto duly authorized, the date first above written.

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[INSERT   LL SIGNATURE BLOCK] 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
[TENANT]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
Hereunto   duly authorized
    
								

 

1

 

EXHIBIT F

 

[Intentionally Omitted]

 

1

 

EXHIBIT G

 

FORM OF LETTER OF CREDIT

 

[Letterhead of a money center bank acceptable to the Owner]

 

[Please note the tenant on this Letter of Credit must match the exact tenant entity in the Lease]

 

[date]

 

[Landlord]

c/o Boston Properties LP

800 Boylston Street, Suite 1900

Boston, Massachusetts 02199-8103

Attn: Lease Admin., Legal Dept.

 

Gentlemen:

 

We hereby establish our Irrevocable Letter of Credit and authorize you to draw on us at sight for the account of [Tenant] (“Applicant”), the aggregate amount of [spell out dollar amount] and [    ]/100 Dollars [($                         )].  You shall have the right to make partial draws against this Letter of Credit from time to time.

 

Funds under this Letter of Credit are available to the beneficiary hereof as follows:

 

Any or all of the sums hereunder may be drawn down at any time and from time to time from and after the date hereof by [Landlord] (“Beneficiary”) when accompanied by this Letter of Credit and a written statement signed by an individual purporting to be an authorized agent of Beneficiary, certifying that such moneys are due and owing to Beneficiary, and a sight draft executed and endorsed by such individual.

 

This Letter of Credit is transferable in its entirety to any successor in interest to Beneficiary as owner of [Property, Address, City/Town, State].  Should a transfer be desired, such transfer will be subject to the return to us of this advice, together with written instructions.  Any fees related to such transfer shall be for the account of the Applicant.

 

The amount of each draft must be endorsed on the reverse hereof by the negotiating bank.  We hereby agree that this Letter of Credit shall be duly honored upon presentation and delivery of the certification specified above.

 

This Letter of Credit shall expire on [Final Expiration Date].

 

Notwithstanding the above expiration date of this Letter of Credit, the term of this Letter of Credit shall be automatically renewed for successive, additional one (1) year periods unless, at least sixty (60) days prior to any such date of expiration, the undersigned shall give written notice to Beneficiary, by certified mail, return receipt requested and at the address set forth 

 

2

 

above or at such other address as may be given to the undersigned by Beneficiary, that this Letter of Credit will not be renewed.

 

This Letter of Credit is governed by the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce Publication 500.

 

Very truly yours,

 

[Name of Issuing Bank]

 

 

By:

Name:

Title:

 

3

 

EXHIBIT H

 

PROCEDURE FOR ALLOCATION OF COSTS OF

ELECTRIC POWER USAGE BY TENANTS

 

This memo outlines the procedure for allocating charges for electric power for lights, plugs, heating, air conditioning and ventilation to the individual tenant premises within the Building.

 

1.                                      Main electric service will be provided by the local utility company to a central utility metering center. All charges by the utility will be read from these meters and billed to and paid by Landlord at rates established by the utility company.

 

2.                                      In order to assure that charges for electric service are allocated among tenants in relation to the relative amounts of electricity used by each tenant, meters (known as “check meters”) may be used to monitor tenant electric usage. On each floor there may be one or more check meter(s) serving all of the floor, and on multi-tenant floors Landlord may require that the tenants (at their sole cost and expense) install check meters relating to their premises (to the extent there are no check meters already serving such premises).

 

3.                                      Landlord will cause the check meters to be read periodically and will perform an analysis of such information for the purpose of determining whether any adjustments are required to achieve an allocation of the costs of electric service among the tenants in relation to the respective amounts of usage of electricity for those tenants. For this purpose, Landlord shall, as far as possible in each case, cause the check meters to be read to determine usage for periods that include one or more entire periods used by the utility company for the reading of the meters located within the central utility metering center (so that the Landlord may, in its discretion, choose periods that are longer than those used by the utility company — for example, quarterly, semi-annual or annual periods).

 

4.                                      Tenant’s share of electricity shall be determined by Landlord on the following basis:

 

a.                                      The cost of the total amount of electricity supplied for usage by tenants during the period being measured shall be determined by dividing the total cost of electricity through the central utility metering center as invoiced by the utility company for the same period by the total amount of kilowatt hour usage as measured by the meters located within the central utility metering center (herein called “Cost Per Kilowatt Hour”).

 

b.                                      Tenant’s allocable share of electricity costs for the period (“Tenant 

1

 

Electricity”) shall be determined by multiplying the Cost Per Kilowatt Hour by the number of kilowatt hours utilized by Tenant for such period as indicated by the check meter(s) for Tenant’s Premises.

 

c.                                       Where a floor is occupied by more than one tenant, and where some but not all of the tenant spaces on such floor are not separately check-metered, the cost of Tenant Electricity for tenant spaces that are not separately check-metered shall first be determined by the same procedure as set forth in paragraph (b) above (after subtracting out the usage shown on any check meter that runs off such floor meter), and then the allocable share of each tenant on that floor whose space is not separately check-metered shall be determined by multiplying the total costs of Tenant Electricity for that floor by a fraction, the numerator of which is the rentable area leased to such tenant and the denominator of which is the total rentable area under lease from time to time to tenants on said floor (other than those who are separately check metered); provided, however, that if Landlord shall reasonably determine that the cost of electricity furnished to the Tenant at the Premises exceeds the amount being paid under this Subsection (c), then Landlord shall charge Tenant for such excess and Tenant shall promptly pay the same upon billing therefor as Additional Rent under the Lease.

 

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

 

e.                                       Tenant shall make estimated payments on account of Tenant Electricity, as reasonably estimated by Landlord, on a monthly basis at the same time and in the same manner as Tenant’s monthly installments of Annual Fixed Rent.

 

5.                                      a.                                      Tenant shall pay to Landlord Tenant’s allocable share of Tenant Electricity costs for the period within thirty (30) days after billing therefor.

 

b.                                      In lieu of making payments as provided in subsection (a) above, at Landlord’s option, Tenant shall pay to Landlord an amount from time to time reasonably estimated by Landlord to be sufficient to cover, in the aggregate, a sum equal to the Tenant’s allocable share of Tenant Electricity costs for each 

 

2

 

calendar year during the Lease Term. No later than one hundred twenty (120) days after the end of the first calendar year or fraction thereof ending December 31 and of each succeeding calendar year during the Lease Term or fraction thereof at the end of the Lease Term, Landlord shall render Tenant a statement in reasonable detail certified by an officer of Landlord, showing for the preceding calendar year or fraction thereof, as the case may be, the Tenant’s allocable share of Tenant Electricity costs. Said statement to be rendered to Tenant also shall show for the preceding year or fraction thereof, as the case may be, the amounts already paid by Tenant on account of Tenant’s allocable share of Tenant Electricity costs and the amount of Tenant’s allocable share of Tenant Electricity costs remaining due from, or overpaid by, Tenant for the year or other period covered by the statement. If such statement shows a balance remaining due to Landlord, Tenant shall pay same to Landlord on or before the thirtieth (30th) day following receipt by Tenant of said statement. Any balance shown as due to Tenant shall be credited against Annual Fixed Rent next due, or refunded to Tenant if the Lease Term has then expired and Tenant has no further obligation to Landlord. Payments by Tenant on account of Tenant’s allocable share of Tenant Electricity costs shall be deemed Additional Rent and shall be made monthly at the time and in the fashion herein provided for the payment of Annual Fixed Rent.

 

Landlord shall maintain all electrical meters. Further, Tenant agrees that it will not make any material alteration or material addition to the electrical equipment and/or appliances in the Premises without the prior written consent of Landlord in each instance first obtained, which consent will not be unreasonably withheld, and will promptly advise Landlord of any other alteration or addition to such electrical equipment and/or appliances.

 

3

 

EXHIBIT I

 

FORM OF CERTIFICATE OF INSURANCE

 

 

1

 

 

 

2

 

EXHIBIT J

 

LIST OF MORTGAGES

 

None.

 

1

 

EXHIBIT K

 

BROKER DETERMINATION OF PREVAILING MARKET RENT

 

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

 

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

 

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

 

3.                                      Selection of Third Broker.  Within ten (10) days thereafter the two (2) brokers so selected shall select a third such broker also having at least the affiliation and experience referred to above.

 

4.                                      Rental Value Determination.  Within thirty (30) days after the selection of the third broker, the three (3) brokers so selected, by majority opinion, shall make a determination of the annual fair market rental value of the Premises or the Available Space, as applicable, for the period referred to in the Lease.  Such annual fair market rental value determination shall take into account all applicable factors and (x) may include provision for annual increases in rent during said term if so determined, (y) shall take into account the as-is condition of the Premises or the Available Space, as applicable, and (z) shall take account of, and be expressed in relation to, the tax and operating cost bases and provisions for paying for so-called tenant electricity as contained in the Lease.  The brokers shall advise Landlord and Tenant in writing by the expiration of said thirty (30) day period of the annual fair market rental value which as so determined shall be referred to as the Prevailing Market Rent.

 

5.                                      Resolution of Broker Deadlock.  If the Brokers are unable to agree at least by majority on a determination of annual fair market rental value, then the brokers shall send a notice to Landlord and Tenant by the end of the thirty (30) day period for making said determination setting forth their individual determinations of annual fair market rental value, and the highest such determination and the lowest such determination shall be disregarded and the remaining determination shall be deemed to be the determination of annual fair market rental value and shall be referred to as the Prevailing Market Rent.

 

2

 

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

 

7.                                      Failure to Select Broker or Failure of Broker to Serve.  If Tenant shall have requested a Broker Determination and Landlord shall not have designated a broker within the time period provided therefor above, then Tenant’s Broker shall alone make the determination of Prevailing Market Rent in writing to Landlord and Tenant within thirty (30) days after the expiration of Landlord’s right to designate a broker hereunder.  If Tenant and Landlord have both designated brokers but the two brokers so designated do not, within a period of fifteen (15) days after the appointment of the second broker, agree upon and designate the Third Broker willing so to act, the Tenant, the Landlord or either broker previously designated may request the Boston Bar Association (or such organization as may succeed to the Boston Bar Association) to designate the Third Broker willing so to act and a broker so appointed shall, for all purposes, have the same standing and powers as though he had been seasonably appointed by the brokers first appointed.  In case of the inability or refusal to serve of any person designated as a broker, or in case any broker for any reason ceases to be such, a broker to fill such vacancy shall be appointed by the Tenant, the Landlord, the brokers first appointed or the Boston Bar Association as the case may be, whichever made the original appointment, or if the person who made the original appointment fails to fill such vacancy, upon application of any broker who continues to act or by the Landlord or Tenant such vacancy may be filled by the Boston Bar Association and any broker so appointed to fill such vacancy shall have the same standing and powers as though originally appointed.

 

3

 

EXHIBIT L

 

Potential ROFO Space

 

[See attached plan]

 

4

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